<PAGE>
Dear Shareholder:
The economy continues to grow and inflation remains under control. Despite the
age of this expansion, which is now in its sixth year, there are few signs of
excesses or rising inflation. Nearly ideal conditions have led to rising
corporate earnings and high levels of valuation for stocks in general. Bond
prices, on the other hand, have not risen over the past 12 months and have
delivered returns that approximate the coupons paid. Going forward, we believe
that economic growth will continue at a decelerating pace and that inflation
will remain modest. We continue to find values in the stock market, and the past
year's gap in performance between the largest companies and their smaller
counterparts have led to many interesting opportunities in the smaller- to
medium-sized companies represented in the Winthrop Small Company Value Fund.
Bond prices should increase over the coming 12 months and we will use
significant pull-backs in bonds to lengthen the duration of our bond portfolios.
WINTHROP GROWTH AND INCOME FUND
For the six months ended April 30, 1997, the Winthrop Growth and Income Fund
Class A shares returned 12.01%, versus 14.72% for the S&P 500. Financial
services and consumer staple stocks continued to lead the way for the Fund. The
commitment of five percent of the Fund to bonds increased the quarterly income
during this period, but dampened the returns during the first half of the fiscal
year. We have been finding increasingly good value in mid-sized companies. One
notable example is Hasbro, which is one of two companies that dominate the toy
industry, with brands that include G.I. Joe, Nerf, Tonka and Playskool. Hasbro
occupies a unique position in board games, possessing such titles as Monopoly,
Battleship, Scrabble, Life, Trivial Pursuit and Clue. These games represent a
steady source of income, and new electronic versions will allow the company to
resell these games in the computer CD-ROM format. Last year's unsuccessful
takeover attempt by Mattel has made Hasbro's management more attuned to the need
to enhance shareholder value, and it is cutting costs and repurchasing shares to
boost earnings growth. Trading at 13 times this year's expected earnings with
forecasted growth of 15%, Hasbro should prove to be an attractive investment for
the Fund.
WINTHROP SMALL COMPANY VALUE FUND
The Class A shares of the Winthrop Small Company Value Fund returned 5.52% for
the six-month period ended April 30, 1997, outperforming the Russell 2000 Index
return of 1.60%. The Fund held its value well during the market decline of late
January to late April, losing only about 4%, during a period in which the
Russell 2000 Index declined over 9%.
The Fund would have performed even better were it not for a large loss realized
in our holding of Mercury Finance. In late January, the stock lost over 80% of
its value after management divulged that due to accounting irregularities, they
needed to restate earnings dramatically lower for the 1993 through 1996 periods.
With the fate of Mercury in the hands of its creditors, we liquidated our
position. Aside from Mercury, the Fund's financial stocks have contributed
strongly to performance this year.
After underperforming the large-cap S&P 500 index by over 13% in the six months
ending April 30, small-cap stocks have begun to show some signs of life. The
valuation disparity between the two is so great that we expect to see increased
acquisition activity as large-cap companies take advantage of their richly
valued currency to acquire smaller firms. Two of the Fund's holdings, Fort
Howard Paper and Verifone, were sold recently at substantial profit following
takeover offers from larger firms.
WINTHROP GROWTH FUND
For the six months ended April 30, 1997, the Winthrop Growth Fund Class A shares
returned 13.45%, while the S&P 500 earned 14.72%. Again, technology stocks like
Intel and Microsoft and bank stocks like Barnett Banks and BankAmerica boosted
the Fund's performance. The favorable performance of stocks like CVS, Exxon and
Delta Airlines can be attributed to leadership by strong management teams.
WINTHROP FIXED INCOME FUND
During the first six months of the 1997 fiscal year, Winthrop Fixed Income Fund
Class A shares returned 1.21%, versus 1.74% for the Lehman Government Corporate
Intermediate Bond Index. It was a transitional period for the fixed-income
markets, as long Treasury yields dropped toward 6.40% in the fall before
resuming their ascent toward 7.20% in the early spring of 1997.
As rates eventually pushed north of 7% and inflation continued to be a
non-event, we explored potential opportunities to lock in attractive real rates
of return. Two credits and structures offered handsome risk/reward
characteristics, Coca Cola Enterprises 6.70% of 2036 and Xerox 6.25% of 2026;
both were selling under par when we bought them. The ability to put both of
these bonds at par in 2003 and Xerox again in 2008 entitles us to lock in a gain
at the future put dates, representing an attractive defensive feature. If,
however, long-term interest rates fall from their 7% levels as we expect, these
securities will extend their durations and appreciate in price accordingly,
taking on characteristics of longer-term bonds and boosting the Fund's
performance.
WINTHROP MUNICIPAL TRUST FUND
During the first six months of the 1997 fiscal year, the Winthrop Municipal
Trust Fund Class A returned 1.92%, versus 1.55% for the Lipper Intermediate
Municipal Index. The Fund's longer duration relative to the benchmark assisted
performance in the early part of the year, while security selection helped
performance in the latter half of the period even as we maintained a longer
average maturity.
Lower-rated credits performed well over the last six months as investors
sacrificed credit quality in their search for higher yield. While the Fund has
taken advantage of the relative outperformance of this sector through exposure
to names such as NYC General Obligations and NY Dorm Authorities, we have also
sold into the credit compression and booked profits accordingly. At this point,
we have begun to upgrade credit quality since credit spreads are richer than
historical averages and the yield giveup is modest. Also, we have eliminated
securities with short calls, which will allow the portfolio to perform better in
a declining rate environment. Should interest rates rise, the non-callable
securities we added generally are premium securities, which will help temper
declines in bond prices.
We thank you for your continued support and wish you a most enjoyable summer.
Sincerely,
[/S/ G. MOFFETT COCHRAN]
G. Moffett Cochran
President June 1997
<PAGE>
FOCUS FUND HIGHLIGHTS (UNAUDITED)
WINTHROP GROWTH FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Archer-Daniels-Midland Co.(1) ALLTEL Corp.(2)
Bellsouth Corp.(1) AON Corp.(2)
Burlington Northern Santa Fe(1) Belo (A.H.) Corp.(2)
Burlington Resources, Inc.(1) Century Telephone Enterprises(2)
CVS Corp.(1) CPC International, Inc.(2)
Hollinger International, Inc.(1) Dow Chemical Co.(2)
PennCorp Financial Group(1) Federated Department Stores, Inc.(2)
Praxair, Inc.(1) Kerr-McGee Corp. Cl. A(2)
Sara Lee Corp.(1) Oracle Systems Corp.(2)
Western Atlas, Inc.(1) Union Pacific Corp.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 1997
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
------------ -----------
<S> <C> <C>
MCI Communications Corp. ............................... $ 3,553,250 4.3%
Procter & Gamble Co..................................... 2,929,975 3.6
Exxon Corp.............................................. 2,831,250 3.5
Merck & Co.............................................. 2,805,500 3.4
BankAmerica Corp........................................ 2,758,250 3.4
Federal Home Loan Mortgage Corp......................... 2,575,500 3.1
American International Group, Inc....................... 2,441,500 3.0
Schering-Plough Corp.................................... 2,440,000 3.0
Microsoft Corp.......................................... 2,430,000 3.0
Barnett Banks, Inc...................................... 2,189,600 2.7
------------ ---
$ 26,954,825 33.0%
------------ ---
------------ ---
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------
WINTHROP GROWTH
FUND
---------------------------------
WITHOUT WITH S&P
LOAD LOAD 500
--------------- --------------- ------
<S> <C> <C> <C>
Class A:
1 year..................... 19.58% 13.90% 25.14%
5 years.................... 12.78 11.68 17.10
10 years.................... 9.97 9.43 14.14
Class B:
1 year...................... 18.74 14.74 25.14
From inception 2/96......... 17.11 14.61 15.49
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO
INDICATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. NO ADJUSTMENT HAS BEEN MADE FOR ANY
INCOME TAXES PAYABLE BY SHAREHOLDERS ON DIVIDENDS OR CAPITAL GAINS, BUT
THE RETURNS CALCULATED ABOVE HAVE BEEN COMPUTED AFTER DEDUCTION OF ALL
FUND EXPENSES INCLUDING ADVISORY FEES. CLASS A RETURNS SHOWN ABOVE ARE
COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4.75% FRONT-END
SALES LOAD. EFFECTIVE FEBRUARY 28, 1996, THE FUND BEGAN OFFERING CLASS B
SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST
YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL
DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE
WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.
<PAGE>
FOCUS FUND HIGHLIGHTS (UNAUDITED)
WINTHROP GROWTH AND INCOME FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Amerin Corp.(1) Airtouch Communications, Inc. Cl. C,
Cisco Systems, Inc.(1) Cv. Pfd. 4.250%(2)
Cognizant Corp.(1) American Brands, Inc.(2)
Cox Communications, Inc. Cl. A(1) Archer-Daniels-Midland Co.(2)
Electronic Data Systems Corp.(1) Corning, Inc. Mips, Cv. Pfd. 6.00%(2)
Enron Corp.(1) Dun & Bradstreet Corp.(2)
Financial Security Assurance Holding(1) Federal Home Loan Bank 7.460%,
Hercules, Inc.(1) 09/09/04(2)
Leggett & Platt, Inc.(1) Mobil Corp.(2)
Sun Healthcare Group, Inc.(1) Regions Financial Corp.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 1997
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
------------ -------
<S> <C> <C>
Federal Home Loan Mortgage Corp. ....... $ 4,462,500 3.2%
First Bank Systems, Inc. ............... 4,262,081 3.1
American International Group............ 4,086,300 3.0
Amoco Corp. ............................ 3,345,000 2.4
Procter & Gamble Co. ................... 3,244,350 2.3
Loews Corp. ............................ 3,215,625 2.3
Philip Morris Cos., Inc. ............... 2,953,125 2.1
United Technologies Corp. .............. 2,949,375 2.1
Union Pacific Resources Group........... 2,753,188 2.0
Tyco International Ltd. ................ 2,720,600 2.0
------------ -------
$ 33,992,144 24.5%
------------ -------
------------ -------
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------
WINTHROP GROWTH
AND INCOME FUND
--------------------------------- S&P
WITHOUT LOAD WITH LOAD 500
--------------- --------------- ------
<S> <C> <C> <C>
Class A:
1 year..................... 20.57% 14.84% 25.14%
5 years.................... 15.26 14.14 17.10
10 years.................... 11.02 10.48 14.14
Class B:
1 year...................... 19.75 15.75 25.14
From inception 2/96......... 16.96 14.46 15.49
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO
INDICATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. NO ADJUSTMENT HAS BEEN MADE FOR ANY
INCOME TAXES PAYABLE BY SHAREHOLDERS ON DIVIDENDS OR CAPITAL GAINS, BUT
THE RETURNS CALCULATED ABOVE HAVE BEEN COMPUTED AFTER DEDUCTION OF ALL
FUND EXPENSES INCLUDING ADVISORY FEES. CLASS A RETURNS SHOWN ABOVE ARE
COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4.75% FRONT-END
SALES LOAD. EFFECTIVE FEBRUARY 28, 1996, THE FUND BEGAN OFFERING CLASS B
SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST
YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL
DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE
WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.
<PAGE>
FOCUS FUND HIGHLIGHTS (UNAUDITED)
WINTHROP SMALL COMPANY VALUE FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Fort Howard Corp.(1) AGCO Corp.(2)
Black Box Corp.(1) Armor All Products Corp.(2)
Heilig-Meyers Co.(1) Augat, Inc.(2)
Helmerich & Payne(1) Dean Foods Co.(2)
KN Energy, Inc.(1) General Nutrition Cos.(2)
La-Z-Boy, Inc.(1) Jostens, Inc.(2)
NAC Re Corp.(1) Loctite Corp.(2)
Precision Castparts Corp.(1) Mercury Finance Co.(2)
Quorum Health Group, Inc.(1) Washington Mutual, Inc.(2)
Wyle Electronics(1) Whittaker Corp.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 1997
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
------------ -----------
<S> <C> <C>
Teleflex, Inc........................................... $ 4,937,625 2.1%
First American Corp. of Tennessee....................... 4,755,300 2.1
FirstMerit Corp......................................... 4,702,500 2.0
Hanna (M.A.) Co......................................... 4,456,812 1.9
Carlisle Companies, Inc................................. 4,418,437 1.9
First Commerce Corp..................................... 4,377,712 1.9
Applied Power, Inc. Cl. A............................... 4,318,012 1.9
Lydall, Inc............................................. 4,295,025 1.9
K2, Inc................................................. 4,263,600 1.9
ReliaStar Financial Corp................................ 3,811,500 1.7
------------ ---
$ 44,336,523 19.3%
------------ ---
------------ ---
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------
WINTHROP SMALL COMPANY VALUE FUND
--------------------------------- RUSSELL
WITHOUT LOAD WITH LOAD 2000
--------------- --------------- ------
<S> <C> <C> <C>
Class A:
1 year..................... 8.04% 2.91% 0.05%
5 years.................... 14.24 13.13 13.65
10 years.................... 11.07 10.53 9.75
Class B:
1 year...................... 7.38 3.38 0.05
From inception 2/96......... 9.06 6.53 6.31
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO
INDICATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. NO ADJUSTMENT HAS BEEN MADE FOR ANY
INCOME TAXES PAYABLE BY SHAREHOLDERS ON DIVIDENDS OR CAPITAL GAINS, BUT
THE RETURNS CALCULATED ABOVE HAVE BEEN COMPUTED AFTER DEDUCTION OF ALL
FUND EXPENSES INCLUDING ADVISORY FEES. CLASS A RETURNS SHOWN ABOVE ARE
COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4.75% FRONT-END
SALES LOAD. EFFECTIVE FEBRUARY 28, 1996, THE FUND BEGAN OFFERING CLASS B
SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST
YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL
DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE
WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.
<PAGE>
FOCUS FUND HIGHLIGHTS (UNAUDITED)
WINTHROP FIXED INCOME FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
Associates Corp. N.A.(1) Federal National Mortgage Assn.(2)
6.875%, 11/15/08 7.600%, 04/14/04
Coca-Cola Enterprises(1) Federal National Mortgage Assn.(2)
6.700%, 11/15/36 8.550%, 12/10/04
Federal National Mortgage Assn.(1) Santander Financial Issuances(2)
6.950%, 11/13/06 7.875%, 04/15/05
Student Loan Marketing Assn.(1) Tennessee Valley Power Authority(2)
Ser. 1997-1, 5.730%, 10/25/05 7.450%, 10/15/01
United States Treasury Notes(1) United States Treasury Notes(2)
6.500%, 05/31/01 8.000%, 05/15/01
United States Treasury Notes(1) United States Treasury Notes(2)
7.000%, 07/15/06 6.500%, 08/15/05
Xerox Corp.(1) United States Treasury Strips(2)
6.250%, 11/15/26 0.000%, 11/15/07
(1) New Holdings (2) Deletions
</TABLE>
PORTFOLIO CHARACTERISTICS APRIL 30, 1997*
<TABLE>
<S> <C>
30 DAY YIELD, CLASS A: 5.66% AVERAGE YEARS TO MATURITY: 8.7 YEARS
30 DAY YIELD, CLASS B: 5.24% AVERAGE COUPON: 7.41%+
AVERAGE RATING: AA AVERAGE DURATION: 3.5 YEARS
* Weighted Averages
+ Exclusive of U.S. Treasury Bills and Commercial Paper
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------
LEHMAN
BROS.
GOV'T
WINTHROP FIXED INCOME FUND CORP.
INTERMEDIATE
--------------------------------- BOND
WITHOUT LOAD WITH LOAD INDEX
------- ----- ------
<S> <C> <C> <C>
Class A:
1 year..................... 5.48% 0.47% 6.41%
5 years.................... 6.21 5.18 6.76
10 years.................... 7.79 7.27 8.08
Class B:
1 year...................... 4.73 0.73 6.41
From inception 2/96......... 2.65 0.10 4.67
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO
INDICATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. NO ADJUSTMENT HAS BEEN MADE FOR ANY
INCOME TAXES PAYABLE BY SHAREHOLDERS ON DIVIDENDS OR CAPITAL GAINS, BUT
THE RETURNS CALCULATED ABOVE HAVE BEEN COMPUTED AFTER DEDUCTION OF ALL
FUND EXPENSES INCLUDING ADVISORY FEES. CLASS A RETURNS SHOWN ABOVE ARE
COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4.75% FRONT-END
SALES LOAD. EFFECTIVE FEBRUARY 28, 1996, THE FUND BEGAN OFFERING CLASS B
SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST
YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL
DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE
WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.
<PAGE>
FOCUS FUND HIGHLIGHTS (UNAUDITED)
WINTHROP MUNICIPAL TRUST FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 1997
<TABLE>
<S> <C>
MAJOR PURCHASES MAJOR SALES
California Department of Water Allegheny County, Pennsylvania
Systems(1) Sanitation Auth. Sewer Rev.(2)
6.000%, 12/01/07 5.200%, 12/01/00
Cook County, Illinois Ser. B(1) Chicago, Illinois(2)
5.750%, 11/15/04 5.800%, 01/01/08
Chicago, Illinois Metropolitan Water Chicago, Illinois Metropolitan Water
Recl. Reclamation District(2)
Dist.(1) 6.300%, 12/01/09
7.000%, 01/01/11 Dallas, Texas(2)
Grand River Dam Authority, Oklahoma(1) 5.500%, 02/15/08
6.250%, 06/01/11 Indiana Highway Transportation Finance
Lewisville, Texas Independent School Authority Ser. A(2)
District(1) 5.250%, 06/01/09
6.000%, 08/15/01 New York State Urban Development
Memphis, Tennessee Electric System(1) Corp.(2)
6.000%, 01/01/05 5.300%, 01/01/05
Philadelphia, Pennsylvania Authority for Texas Water Development Board
Ind'l. Revenue(2)
Dev.(1) 5.000%, 07/15/07
6.000%, 02/15/07 (2) Deletions
(1) New Holdings
</TABLE>
PORTFOLIO CHARACTERISTICS APRIL 30, 1997*
<TABLE>
<S> <C>
30 DAY YIELD, CLASS A: 4.49% AVERAGE YEARS TO MATURITY: 8.3 YEARS
30 DAY YIELD, CLASS B: 4.02% AVERAGE COUPON: 5.98%
AVERAGE RATING: AA AVERAGE DURATION: 6.4 YEARS
* Weighted Averages
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------------------
WINTHROP MUNICIPAL LIPPER
INTERMEDIATE
TRUST FUND MUNICIPAL
--------------------------------- FUND
WITHOUT LOAD WITH LOAD INDEX
------- ----- ------
<S> <C> <C> <C>
Class A:
1 year...................... 5.66% 0.64% 4.89%
From inception 7/93......... 4.01 2.68 4.56
Class B:
1 year...................... 5.02 1.02 4.89
From inception 2/96......... 2.56 0.01 2.87
</TABLE>
THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO
INDICATION OF FUTURE PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE
WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH
MORE OR LESS THAN THEIR ORIGINAL COST. NO ADJUSTMENT HAS BEEN MADE FOR ANY
INCOME TAXES PAYABLE BY SHAREHOLDERS ON DIVIDENDS OR CAPITAL GAINS, BUT
THE RETURNS CALCULATED ABOVE HAVE BEEN COMPUTED AFTER DEDUCTION OF ALL
FUND EXPENSES INCLUDING ADVISORY FEES. CLASS A RETURNS SHOWN ABOVE ARE
COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4.75% FRONT-END
SALES LOAD. EFFECTIVE FEBRUARY 28, 1996, THE FUND BEGAN OFFERING CLASS B
SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A
CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST
YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL
DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE
WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
COMMON STOCKS--97.5%
<TABLE>
<CAPTION>
BASIC MATERIALS--4.9% SHARES VALUE
--------- ----------
<S> <C> <C>
CHEMICALS-3.4%
Morton International, Inc......... 22,000 $ 921,250
Specialty chemicals, salt,
airbags
Praxair, Inc...................... 35,600 1,837,850
----------
Industrial gases/special
coatings
2,759,100
----------
METALS & MINING-0.4%
Nucor Corp........................ 7,500 373,125
----------
Manufacturer of steel & steel
products
PAPER-1.1%
Mead Corp......................... 16,000 898,000
----------
Manufacturer of paper, lumber &
wood products
4,030,225
----------
CAPITAL GOODS--9.1%
AEROSPACE & DEFENSE-3.0%
General Dynamics Corp............. 18,500 1,318,125
Builds & designs nuclear
submarines
Raytheon Co....................... 26,000 1,134,250
----------
Defense & commercial
electronics:
construction
2,452,375
----------
BUILDING & CONSTRUCTION-2.0%
Tyco International Ltd............ 27,000 1,647,000
----------
Fire protection systems: cable:
solar
ELECTRICAL EQUIPMENT-1.3%
Emerson Electric Co............... 20,400 1,035,300
----------
Manufacturer of
electric/electronic
products
ENVIRONMENTAL CONTROL-0.4%
United Waste Systems, Inc.*....... 9,400 317,250
----------
Nonhazardous solid waste
management
MACHINERY-2.4%
Deere & Co........................ 42,900 1,973,400
----------
Largest manufacturer of farm
equipment: construction
machinery
7,425,325
----------
CONSUMER CYCLICAL--8.7%
AUTO & TRUCKS-1.3%
General Motors Corp............... 19,000 1,099,625
----------
Largest manufacturer of
automotive
products
AUTO RELATED-0.7%
Lear Seating Corp.*............... 15,000 536,250
----------
Automobile and light truck
seating
systems
LEISURE RELATED-2.8%
Disney (Walt) Co.................. 25,300 2,074,600
Diversified international
entertainment company
Hasbro, Inc....................... 7,500 187,500
----------
Manufacturer of toys & games
2,262,100
----------
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
PHOTO & OPTICAL-0.6%
Eastman Kodak Co.................. 6,200 $ 517,700
----------
Photograph apparatus, chemicals
PRINTING & PUBLISHING-0.9%
Hollinger International, Inc...... 70,000 700,000
----------
Newspaper publishing
RETAIL-GENERAL-2.4%
CVS Corp.......................... 24,600 1,220,775
Retail: health stores, drugs
Sears Roebuck & Co................ 41,000 1,968,000
----------
Large retailer of general
merchandise
3,188,775
----------
8,304,450
----------
CONSUMER STAPLES--26.1%
BEVERAGE & TOBACCO-6.2%
Anheuser-Busch Cos., Inc.......... 39,600 1,697,850
Largest U.S. brewer: baking
PepsiCo, Inc...................... 55,000 1,918,125
Provides soft drinks/food
services
Philip Morris Cos., Inc........... 37,500 1,476,562
----------
Tobacco, brewing, soft drinks
5,092,537
----------
DRUGS-7.3%
American Home Products Corp....... 10,600 702,250
Drugs, food, household/ware
Merck & Co., Inc.................. 31,000 2,805,500
Human & animal pharmaceuticals
Schering-Plough Corp.............. 30,500 2,440,000
----------
Pharmaceutical/consumer products
5,947,750
----------
HOSPITAL SUPPLIES & SERVICES-2.4%
Columbia/HCA Healthcare Corp...... 36,800 1,288,000
Healthcare facilities/services
Health Management Associates, Inc.
Cl. A*.......................... 26,400 706,200
----------
Operates acute care hospitals
1,994,200
----------
RETAIL-FOOD-4.4%
Archer-Daniels-Midland Co......... 60,000 1,102,500
Process soybeans: flour mills
Safeway, Inc.*.................... 12,000 535,500
Food supermarket chain
Sara Lee Corp.*................... 47,000 1,974,000
----------
Processed foods: consumer
products
3,612,000
----------
SOAPS & TOILETRIES-5.8%
Colgate-Palmolive Co.............. 5,100 566,100
Household and personal care
Procter & Gamble Co............... 23,300 2,929,975
----------
Household, personal care, food
products
3,496,075
----------
20,142,562
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
ENERGY--9.0%
OIL-DOMESTIC-4.0%
Burlington Resources, Inc......... 25,000 $1,059,375
Oil & gas exploration,
development
Texaco, Inc....................... 15,000 1,582,500
Explore, produce, transport,
refine
and market crude oil, natural
gas,
etc.
Western Atlas, Inc.*.............. 11,000 682,000
----------
Oilfield information service/
automation systems
3,323,875
----------
OIL-INTERNATIONAL-5.0%
Exxon Corp........................ 50,000 2,831,250
World's leading oil company
Unocal Corp....................... 32,000 1,220,000
----------
Oil & gas exploration,
development
4,051,250
----------
7,375,125
----------
FINANCIAL--19.0%
BANKING-9.7%
BankAmerica Corp.................. 23,600 2,758,250
Diverse financial products &
services
Barnett Banks, Inc................ 44,800 2,189,600
Commercial banking: Florida,
Georgia
First Bank Systems, Inc........... 18,000 1,381,500
Commercial banking: MN and Upper
Midwest
Wells Fargo & Co.................. 5,900 1,573,825
----------
Commercial banking: CA
7,903,175
----------
FINANCIAL SERVICES-5.1%
Capital One Financial Corp........ 45,000 1,625,625
Bank card issuer/services
Federal Home Loan Mortgage
Corp............................ 80,800 2,575,500
----------
Provides residential mortgage
funds
4,201,125
----------
INSURANCE-4.2%
American International Group,
Inc............................. 19,000 2,441,500
International insurance holding
company
PennCorp Financial Group.......... 30,000 1,031,250
----------
Accident, sickness, life
insurance
3,472,750
----------
15,577,050
----------
TECHNOLOGY--19.4%
ELECTRONICS-3.1%
First Data Corp................... 18,000 621,000
Information processing & related
services
Intel Corp........................ 9,000 1,378,125
Semiconductor memory circuits
Molex, Inc........................ 17,500 542,500
----------
Terminals, connectors, switches
2,541,625
----------
<CAPTION>
SHARES VALUE
--------- ----------
<S> <C> <C>
OFFICE EQUIPMENT/SERVICE-9.0%
Cisco Systems, Inc.*.............. 18,000 $ 931,500
Manufacturer of computer network
products
Hewlett-Packard Co................ 31,000 1,627,500
Electronic measurement, analysis
&
computation instruments
Microsoft Corp.................... 20,000 2,430,000
Software for microcomputers
Peoplesoft, Inc.*................. 15,000 622,500
Manufacturer human resource
management software
Pitney Bowes, Inc................. 28,000 1,792,000
----------
Postage equipment and related
mailing equipment
7,403,500
----------
TELECOMMUNICATIONS-7.3%
Bellsouth Corp.................... 31,400 1,397,300
Telephone service: south/south
central
U.S.
Glenayre Technologies, Inc.*...... 17,900 176,763
Manufacturer of
telecommunications
equipment
MCI Communications Corp........... 93,200 3,553,250
Telecommunications network,
services
Northern Telecom Ltd.............. 11,500 835,188
----------
Telecommunications equipment
5,962,501
----------
15,907,626
----------
TRANSPORT & SERVICE--1.3%
AIRLINES-0.4%
Delta Air Lines, Inc.............. 3,600 331,650
----------
Domestic & international air
service
RAILROADS-0.9%
Burlington Northern Santa Fe...... 9,000 708,750
----------
Railroad Systems operations in
U.S.
1,040,400
----------
TOTAL COMMON STOCKS
(cost $58,411,864).............. 79,802,763
----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
COMMERCIAL PAPER--3.1%
Ford Motor Credit Corp.
5.42%, 05/01/97............... $1,600,000 1,600,000
5.48%, 05/06/97............... 290,000 289,824
General Electric Corp.
5.47%, 05/05/97............... 250,000 249,809
----------
TOTAL COMMERCIAL PAPER
(amortized cost $2,139,633)..... 2,139,633
----------
TOTAL INVESTMENTS--100.1%
(cost $60,551,497).............. 81,942,396
----------
CASH AND OTHER ASSETS
NET OF LIABILITIES--(0.1)%...... 24,793
----------
NET ASSETS--100.0%................ $81,967,189
----------
----------
</TABLE>
* Non-income producing
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
COMMON STOCKS--92.0%
<TABLE>
<CAPTION>
BASIC MATERIALS--7.8% SHARES VALUE
----------- ------------
<S> <C> <C>
CHEMICALS-2.6%
DuPont (E.I.) de Nemours & Co............................... 19,800 $ 2,101,275
Large chemical co.: oil & gas
Hercules, Inc............................................... 38,600 1,519,875
-----------
Special chemicals/food products
3,621,150
-----------
OIL & GAS-5.2%
Amoco Corp.................................................. 40,000 3,345,000
Integrated domestic oil
Enron Corp.................................................. 64,100 2,411,762
Major natural gas pipeline system
San Juan Basin Royalty Trust................................ 185,000 1,410,625
-----------
Royalty gas interest in New Mexico
7,167,387
------------
10,788,537
------------
CAPITAL GOODS/
CONSTRUCTION--5.2%
AEROSPACE & DEFENSE-5.0%
General Dynamics Corp....................................... 30,600 2,180,250
Builds & designs nuclear submarines
Raytheon Co................................................. 39,900 1,740,638
Defense: commercial electronics:
construction
United Technologies Corp.................................... 39,000 2,949,375
-----------
Aerospace, climate control systems
6,870,263
-----------
BUILDING & CONSTRUCTION-0.2%
RPM, Inc. Ohio.............................................. 15,000 251,250
-----------
Protective coatings
7,121,513
-----------
CONSUMER PRODUCTS
& SERVICES--29.9%
BEVERAGES & TOBACCO-4.5%
Guinness PLC ADRs........................................... 24,100 997,169
Distiller, brewer and distributor of
distilled spirits and malt beverages
Philip Morris Cos., Inc..................................... 75,000 2,953,125
Tobacco, brewing, soft drinks
RJR Nabisco Holdings Corp................................... 33,000 981,750
Manufactures tobacco and food
products
UST, Inc.................................................... 50,000 1,306,250
-----------
Snuff, tobacco, wine, spirits
6,238,294
-----------
CONTAINERS-0.7%
Bemis Co.................................................... 24,000 915,000
-----------
Packaging/adhesive products
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
DRUGS-4.2%
Pfizer, Inc................................................. 25,700 $ 2,467,200
Healthcare consumer products,
special chemicals
Pharmacia & Upjohn, Inc..................................... 48,900 1,448,662
Int'l pharmaceutical &
biotechnological group of companies
Schering-Plough Corp........................................ 24,100 1,928,000
-----------
Pharmaceutical/consumer products
5,843,862
-----------
FOODS-1.5%
Heinz (H.J.) Co............................................. 49,700 2,062,550
-----------
Manufactures and markets food
products
HOSPITAL SUPPLIES & SERVICES-3.1%
Abbott Laboratories......................................... 44,500 2,714,500
Diversified line of human healthcare
products & services
Columbia/HCA Healthcare Corp................................ 37,000 1,295,000
Healthcare facilities/services
Sun Healthcare Group, Inc.*................................. 20,000 282,500
-----------
Operates long-term care facilities
4,292,000
-----------
HOUSEHOLD FURNITURE-1.1%
Leggett & Platt, Inc........................................ 44,000 1,529,000
-----------
Manufacture springs, etc. for furniture, bedding
LEISURE-4.5%
Cedar Fair L.P.............................................. 55,700 2,214,075
Owns and operates amusement parks
Disney (Walt) Co............................................ 20,739 1,699,302
Diversified international
entertainment company
Hasbro, Inc................................................. 92,300 2,307,500
-----------
Manufacturer of toys & games
6,220,877
-----------
PRINTING & PUBLISHING-1.2%
New York Times Co. Cl. A.................................... 40,000 1,730,000
-----------
Publishes newspapers & magazines
RETAIL-FOOD & DRUGS-1.8%
Walgreen Co................................................. 54,800 2,520,800
-----------
Major retail drug chain
RETAIL-GENERAL-3.3%
Federated Department Stores, Inc............................ 54,000 1,836,000
Operates department stores in U.S.
Newell Co................................................... 77,500 2,712,500
-----------
Manufacturer of high volume staple
consumer products
4,548,500
-----------
SOAPS & TOILETRIES-4.0%
Gillette Co................................................. 26,800 2,278,000
Shaving, personal care products
Procter & Gamble Co......................................... 25,800 3,244,350
-----------
Household, personal care, food
products
5,522,350
------------
41,423,233
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
ENERGY--4.4%
OIL-SUPPLIES & CONSTRUCTION-4.4%
Halliburton Co.............................................. 18,000 $ 1,271,250
Oil well services: engineering &
construction
Union Pacific Resources Group............................... 101,500 2,753,188
Oil & gas exploration, development,
production
Western Atlas, Inc.*........................................ 34,000 2,108,000
-----------
Oilfield information service/
automation systems
6,132,438
-----------
FINANCIAL SERVICES--22.6%
BANKING-9.7%
BankAmerica Corp............................................ 21,800 2,547,875
Diverse financial products & services
First Bank System, Inc...................................... 55,532 4,262,081
Commercial banking: MN and
Upper Midwest
Household International, Inc.*.............................. 4,000 352,000
Finance & banking services
Mellon Bank Corp............................................ 20,000 1,662,500
Commercial banking: PA
Republic New York Corp...................................... 26,100 2,391,413
Commercial banking: NY &
worldwide
Wells Fargo & Co............................................ 8,500 2,267,375
-----------
Commercial banking: CA
13,483,244
-----------
INSURANCE-8.4%
Allmerica Financial Corp.................................... 34,000 1,224,000
Insurance and financial services &
products
Allmerica Property & Casualty Cos., Inc..................... 10,000 316,250
Property-liability insurance
American International Group, Inc........................... 31,800 4,086,300
International insurance holding
company
Amerin Corp.*............................................... 40,000 780,000
Mortgage insurance
Financial Security Assurance Holding........................ 30,000 971,250
Insure asset-backed securities
Hartford Steam Boiler
Inspection & Insurance Co................................. 20,000 962,500
Insurance/engineering services
ITT Hartford Group, Inc.*................................... 26,900 2,004,050
Insurance provider
Progressive Corp............................................ 16,100 1,225,613
-----------
Insurance holding company
11,569,963
-----------
OTHER-4.5%
Block (H&R), Inc............................................ 55,000 1,773,750
Tax, computer & personal services
Federal Home Loan Mortgage Corp............................. 140,000 4,462,500
-----------
Provides residential mortgage funds
6,236,250
------------
31,289,457
------------
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
PUBLIC UTILITIES--3.6%
ELECTRIC-0.8%
CIPSCO, Inc................................................. 32,000 $ 1,104,000
-----------
Holding co.: central IL public
service
GAS-1.3%
Consolidated Natural Gas Co................................. 21,000 1,057,875
Integrated natural gas systems
New Jersey Resources Corp................................... 28,000 808,500
-----------
Supplies gas in New Jersey
1,866,375
-----------
TELEPHONE-1.5%
GTE Corp.................................................... 45,000 2,064,375
-----------
Telephone holding company;
manufacturing
5,034,750
-----------
SCIENCE & TECHNOLOGY--8.9%
COMPUTERS-3.8%
Automatic Data Processing................................... 24,800 1,122,200
Computer services
Cisco Systems, Inc.*........................................ 20,000 1,035,000
Manufacture computer network
products
Cognizant Corp.............................................. 72,400 2,362,050
Medical/technical industrial
informational systems
Electronic Data Systems Corp................................ 23,700 790,987
-----------
Computer systems/services
5,310,237
-----------
ELECTRONICS-3.8%
Arrow Electronics, Inc.*.................................... 23,500 1,307,187
Distributes electronic components
General Instruments Corp.*.................................. 112,500 2,629,687
Supplies CATV/communications
equipment
Motorola, Inc............................................... 22,300 1,276,675
-----------
Semiconductors: communications
equipment
5,213,549
-----------
TELECOMMUNICATIONS-1.3%
Cox Communications, Inc. Cl. A*............................. 20,000 390,000
Cable TV/communications services
NTL, Inc.*.................................................. 28,333 552,493
Telecommunications services
Vodafone Group ADRs......................................... 20,326 899,426
-----------
British cellular operator
1,841,919
------------
12,365,705
------------
TRANSPORT & SERVICE--3.3%
PROFESSIONAL SERVICE-1.6%
United Healthcare Corp.*.................................... 46,000 2,236,750
-----------
Manages health maintenance
services
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
SHARES VALUE
----------- ------------
<S> <C> <C>
RAILROADS-1.7%
Burlington Northern Santa Fe................................ 29,500 $ 2,323,125
-----------
Railroad systems operations in U.S.
4,559,875
-----------
MISCELLANEOUS--6.3%
DIVERSIFIED-4.3%
Loews Corp.................................................. 35,000 3,215,625
Tobacco; hotel; insurance subsidiary
Tyco International Ltd...................................... 44,600 2,720,600
-----------
Fire protection systems: cable, solar
5,936,225
-----------
LIMITED PARTNERSHIP-TIMBER-1.2%
Plum Creek Timber Co. L.P................................... 55,000 1,595,000
-----------
Lumber and wood products
REAL ESTATE INVESTMENT TRUST-0.8%
General Growth Properties, Inc.............................. 35,000 1,115,625
-----------
Real estate investment trust
8,646,850
-----------
TOTAL COMMON STOCKS
(cost $90,862,411)........................................ 127,362,358
-----------
CONVERTIBLE
PREFERRED STOCK--1.8%
Airtouch Communications, Inc. Cl. B
Cv. Pfd. 6.000%........................................... 40,728 1,135,293
Wireless communications services
RJR Nabisco Holdings Corp.,
Cv. Pfd................................................... 230,000 1,351,250
-----------
Manufactures tobacco and food
products
TOTAL PREFERRED STOCKS
(cost $2,603,393)......................................... 2,486,543
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- ------------
<S> <C> <C>
U.S. GOVERNMENT
AGENCIES--0.8%
(cost $975,687)...........................................
Federal National Mortgage Assn.............................. $ 1,000,000 $ 1,031,170
-----------
7.400%, 07/01/04..........................................
U.S. GOVERNMENT
OBLIGATIONS--4.4%
United States Treasury Strips
0.000%, 05/15/11.......................................... 1,425,000 539,462
0.000%, 11/15/11.......................................... 3,000,000 1,095,540
0.000%, 02/15/12.......................................... 3,100,000 1,111,040
0.000%, 11/14/15.......................................... 4,000,000 1,162,720
0.000%, 11/15/18.......................................... 10,294,000 2,243,371
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(cost $6,370,784)......................................... 6,152,133
-----------
COMMERCIAL PAPER--0.8%
(amortized cost $1,098,990)...............................
Ford Motor Credit Corp.
5.5100%, 05/07/97......................................... 1,100,000 1,098,990
-----------
TOTAL INVESTMENTS--99.8%
(cost $101,911,265)....................................... 138,131,194
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES-0.2%................................... 242,201
------------
NET ASSETS--100.0%.......................................... $138,373,395
-----------
-----------
* Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
Winthrop Small Company Value Fund
COMMON STOCKS--98.0%
<TABLE>
<CAPTION>
BASIC MATERIALS--4.4% SHARES VALUE
--------- -----------
<S> <C> <C>
CHEMICALS-3.0%
Furon Co......................... 7,400 $ 154,475
Manufactures non-metallic
industrial products
Hanna (M.A.) Co.................. 213,500 4,456,812
Special chemicals, polymers
LeaRonal, Inc.................... 105,600 2,310,000
-----------
Electroplating process
6,921,287
-----------
PAPER-1.4%
Caraustar Industries, Inc........ 59,400 1,499,850
Manufactures low-cost recycled
paperboard
Fort Howard Corp.*............... 50,000 1,721,875
-----------
Manufactures sanitary tissue
products
3,221,725
-----------
10,143,012
-----------
CAPITAL GOODS/
CONSTRUCTION--19.2%
AEROSPACE-2.1%
Teleflex, Inc.................... 85,500 4,937,625
-----------
Aerospace controls; medical
products
BUILDING & CONSTRUCTION-10.7%
Applied Industrial Technology,
Inc............................ 77,650 2,455,681
Independent distributor of
industrial parts & products
Applied Power, Inc. Cl. A........ 101,900 4,318,012
Manufactures hydraulic
industrial/ construction
equipment materials
Carlisle Companies, Inc.......... 157,100 4,418,437
Manufactures rubber, plastic,
metal products
CLARCOR, Inc..................... 73,050 1,616,231
Manufactures
filtration/consumer products
Lydall, Inc.*.................... 212,100 4,295,025
Engineered fiber materials
Osmonics, Inc.*.................. 174,900 2,754,675
Reverse osmosis/ultrafiltration
RPM, Inc., Ohio.................. 149,750 2,508,313
Protective coatings
Regal Beloit Corp................ 93,000 2,208,750
-----------
Manufactures tools and power
transmissions
24,575,124
-----------
ELECTRICAL EQUIPMENT-4.2%
AptarGroup, Inc.................. 77,300 3,092,000
Manufacturer of packaging
components: pumps, valves
Belden, Inc...................... 115,700 3,557,775
Manufacturer of electrical
wire, cable
Woodhead Industries, Inc......... 197,800 2,967,000
-----------
Electrical specialty products
9,616,775
-----------
<CAPTION>
SHARES VALUE
--------- -----------
<S> <C> <C>
ENVIRONMENTAL CONTROL-1.4%
Donaldson, Inc................... 90,900 $ 3,113,325
-----------
Engine air cleaners, mufflers
MACHINERY-0.9%
Core Industries, Inc............. 136,700 2,016,325
-----------
Manufacturer of specialty
products
44,259,174
-----------
CONSUMER CYCLICAL--27.1%
APPAREL/TEXTILE-3.0%
Interface, Inc. Cl. A............ 60,300 1,349,212
Manufacturer of carpet/tile
Unifi, Inc....................... 82,500 2,557,500
Texturizing polyester yarns
Unitog Co........................ 152,500 3,088,125
-----------
Rent/sell industrial uniforms
6,994,837
-----------
AUTO RELATED-5.4%
Amcast Industrial Corp........... 134,700 3,064,425
Technology-intensive metal
products
Donnelly Corp. Cl. A............. 113,250 1,684,594
Manufactures auto glass
products
Modine Manufacturing Co.......... 106,000 2,835,500
Auto parts: heating,
air-conditioning
Myers Industries, Inc............ 137,295 2,402,663
Tire service/plastic products
Smith (A.O.) Corp................ 72,000 2,502,000
-----------
Automotive products, electric
motors, piping systems
12,489,182
-----------
FOOD SERVICE/LODGING-4.4%
Marcus Corp...................... 115,650 2,573,213
Hotels, restaurants, theaters
Rare Hospitality International,
Inc.*.......................... 68,600 797,475
Operates franchise restaurants
Sbarro, Inc...................... 126,800 3,582,100
Italian fast food restaurant
Universal Foods Corp............. 93,400 3,292,350
-----------
Specialty products: yeast,
cheese
10,245,138
-----------
HOUSEHOLD
FURNITURE/APPLIANCES-4.9%
Chromcraft Revington, Inc.*...... 110,800 3,060,850
Designs/manufactures furniture
Heilig-Meyers Co................. 100,000 1,500,000
Retail furniture stores
HON Industries, Inc.............. 84,600 3,574,350
Manufacturer of office
furniture/ home building
products
La-Z-Boy, Inc.................... 38,900 1,269,113
Manufacturer of reclining
chairs
Rival Co......................... 82,000 1,117,250
Small household appliances and
personal care products
Stanhome, Inc.................... 28,100 850,025
-----------
Consumer products/household
items
11,371,588
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- -----------
<S> <C> <C>
LEISURE RELATED-2.4%
K2, Inc.......................... 163,200 $ 4,263,600
Snow skis, fish tackle,
industrial products
The Sports Authority, Inc.*...... 66,000 1,171,500
-----------
Sporting goods superstores
5,435,100
-----------
PRINTING & PUBLISHING-4.9%
American Business Products,
Inc............................ 111,600 2,678,400
Business forms and supplies
Banta Corp....................... 139,250 3,516,062
Printing/graphic/video services
Lee Enterprises, Inc............. 131,200 3,230,800
Newspaper publishing: radio, TV
Meredith Corp.................... 78,000 1,833,000
-----------
Publishing, broadcasting, real
estate & cable TV
11,258,262
-----------
RETAIL-GENERAL-2.1%
Arbor Drugs, Inc................. 150,225 2,760,384
Operates drugstores in Michigan
Department 56, Inc.*............. 107,800 2,021,250
-----------
Distributor of collectibles &
gifts
4,781,634
-----------
62,575,741
-----------
CONSUMER STAPLES--10.8%
DRUGS-2.8%
Bergen Brunswig Corp. Cl. A...... 86,700 2,958,637
Pharmaceutical suppliers
Scherer (R.P.) Corp.*............ 42,600 1,959,600
Manufacturer of drug delivery
systems
West Co., Inc.................... 59,100 1,647,413
-----------
Pharmaceutical packaging
6,565,650
-----------
FOODS-1.4%
Flowers Industries, Inc.......... 129,550 3,157,781
-----------
Baked, convenience, snack food
HOSPITAL SUPPLIES & SERVICES-4.9%
Beckman Instruments, Inc......... 87,600 3,679,200
Manufactures laboratory
instruments
Morrison Health Care, Inc.*...... 10,100 150,238
Health care, food/nutrition
services
Nellcor Puritan Bennett*......... 90,000 1,530,000
Electronic patient monitoring
systems
Quorum Health Group, Inc.*....... 75,000 2,334,375
Owns, operates acute care
hospitals
Sierra Health Services*.......... 90,600 2,332,950
Healthcare provider
SpaceLabs Medical, Inc.*......... 59,400 1,247,400
-----------
Manufactures patient monitoring
products
11,274,163
-----------
<CAPTION>
SHARES VALUE
--------- -----------
<S> <C> <C>
RETAIL-FOOD & DRUGS-1.7%
Hannaford Brothers Co............ 69,600 $ 2,218,500
Distributor: food/supermarkets
Luby's Cafeterias, Inc........... 95,300 1,739,225
-----------
Cafeteria style restaurants
3,957,725
-----------
24,955,319
-----------
ENERGY--3.7%
OIL-DOMESTIC-2.8%
Helmerich & Payne................ 43,000 2,053,250
Contract driller: oil & gas
production
KN Energy, Inc................... 55,000 2,048,750
Natural gas, mineral resources
MAPCO, Inc....................... 51,900 1,537,538
Coal, gas pipeline: crude oil
Wiser Oil Co..................... 45,000 748,125
-----------
Exploration and production of
oil and gas in fifteen states
6,387,663
-----------
OIL-SUPPLIES & CONSTRUCTION-0.9%
Tidewater, Inc................... 54,100 2,170,763
-----------
Offshore service vessels
8,558,426
-----------
FINANCIAL--15.2%
BANKS-7.3%
First American Corp. of
Tennessee...................... 72,600 4,755,300
Commercial banking: TN
First Commerce Corp.............. 107,100 4,377,712
Commercial banking: LA, MS
FirstMerit Corp.................. 110,000 4,702,500
Commercial banking: OH
First Virginia Banks, Inc........ 58,200 3,011,850
-----------
Commercial banking: VA
16,847,362
-----------
INSURANCE-7.9%
Hartford Steam Boiler Insp. &
Ins. Co........................ 65,700 3,161,812
Insurance/engineering
NAC Re Corp...................... 63,300 2,452,875
Holding co.: reinsurance
Old Republic International
Corp........................... 115,200 3,254,400
Insurance: life, disability,
property, casual
Poe & Brown, Inc................. 87,700 2,302,125
General insurance agency
Protective Life Corp............. 71,100 3,146,175
Financial service provider
ReliaStar Financial Corp......... 63,000 3,811,500
-----------
Insurance/financial services
18,128,887
-----------
34,976,249
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SHARES VALUE
--------- -----------
<S> <C> <C>
PUBLIC UTILITIES--1.0%
GAS-1.0%
WICOR, Inc....................... 67,450 $ 2,369,181
-----------
Utility holding: Wisconsin gas
TECHNOLOGY--8.4%
ELECTRONICS-5.9%
Black Box Corp.*................. 50,000 1,181,250
Market/provide technical
service for
communications/networking
equipment & systems
DH Technology, Inc.*............. 53,700 738,375
Manufactures dot matrix
printheads
Input/Output, Inc.*.............. 25,000 350,000
Manufacturer seismic data
acquisition systems
Mark IV Industries, Inc.......... 68,250 1,586,813
Power transfer equipment/audio
transfer equipment
Methode Electronics, Inc. Cl.
A.............................. 241,650 3,413,306
Electronic component devices
MICROS Systems, Inc.*............ 22,900 770,013
Manufactures point-of-sales
computer systems
Pioneer Standard Electronics,
Inc............................ 219,450 2,688,263
Distributor: electronic
components
VeriFone, Inc.*.................. 25,000 1,268,750
Manufactures transaction
automation systems
Wyle Electronics*................ 50,000 1,693,750
-----------
Markets hi-tech electronic
products
13,690,520
-----------
OFFICE EQUIPMENT-2.3%
Hunt Manufacturing Corp.......... 158,500 2,932,250
Manufactures & distributes
office and art products
Miller (Herman), Inc............. 71,000 2,298,625
-----------
Manufacturer of office
furniture
5,230,875
-----------
TELECOMMUNICATIONS-0.2%
Glenayre Technologies, Inc.*..... 55,000 543,125
-----------
Manufacturer of
telecommunications equipment
19,464,520
-----------
TRANSPORT & SERVICE--4.2%
PROFESSIONAL SERVICES-2.6%
CDI Corp.*....................... 48,000 1,818,000
Engineering & technical
services
Interim Services, Inc.*.......... 40,000 1,550,000
Temporary help services
Jacobs Engineering Group,
Inc.*.......................... 101,650 2,592,075
-----------
Full service engineering
organization
5,960,075
-----------
<CAPTION>
SHARES VALUE
--------- -----------
<S> <C> <C>
TRUCKING & SHIPPING-1.6%
Werner Enterprises, Inc.......... 197,000 $ 3,767,625
-----------
Motor carrier: general freight
9,727,700
-----------
MISCELLANEOUS--3.8%
DIVERSIFIED-2.9%
Brady (W.H.) Cl. A............... 102,700 2,580,337
Manufactures adhesives &
coatings
Precision Castparts Corp......... 25,000 1,337,500
Castings for aircraft engines
Ruddick Corp..................... 181,500 2,722,500
-----------
Food supermarkets; thread/yarn
6,640,337
-----------
REAL ESTATE INVESTMENT TRUST-0.9%
Merry Land & Investment Co.,
Inc............................ 110,000 2,255,000
-----------
Acquisition, development &
operation of income producing
properties
8,895,337
-----------
TOTAL COMMON STOCKS
(cost $178,080,300)............ 225,924,659
-----------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
COMMERCIAL PAPER--1.7%
Ford Motor Credit Corp.
5.420%, 05/02/97............... $ 190,000 189,971
5.480%, 05/06/97............... 200,000 199,848
5.510%, 05/07/97............... 1,800,000 1,798,347
General Electric Capital Corp.
5.470%, 05/05/97............... 1,700,000 1,698,967
-----------
TOTAL COMMERCIAL PAPER
(amortized cost $3,887,133).... 3,887,133
-----------
TOTAL INVESTMENTS--99.7%
(cost $181,967,433)............ 229,811,792
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES--0.3%....... 616,181
------------
NET ASSETS--100.0%............... $230,427,973
-----------
-----------
* Non-income producing
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
WINTHROP FIXED INCOME FUND
<TABLE>
<CAPTION>
U.S. GOVERNMENT PRINCIPAL
OBLIGATIONS--50.6% AMOUNT VALUE
----------- -----------
<S> <C> <C>
United States Treasury
Notes
6.125%, 05/15/98....... $ 1,400,000 $ 1,402,240
8.250%, 07/15/98....... 7,900,000 8,100,738
7.500%, 10/31/99....... 4,000,000 4,103,879
7.750%, 01/31/00....... 2,500,000 2,583,500
8.500%, 02/15/00....... 500,000 526,350
7.750%, 02/15/01....... 2,000,000 2,083,820
6.500%, 05/31/01....... 1,500,000 1,498,830
7.500%, 11/15/01....... 2,500,000 2,591,850
5.875%, 02/15/04....... 524,000 501,484
7.250%, 08/15/04....... 3,250,000 3,356,925
7.000%, 07/15/06....... 1,250,000 1,270,987
----------
TOTAL U.S. GOVERNMENT
OBLIGATIONS
(cost $27,853,990)..... 28,020,603
----------
U.S. GOVERNMENT
AGENCIES--25.9%
Federal Home Loan
Mortgage Corp.
Pool #90350 7.000%,
07/01/99............... 1,040,187 1,042,462
Pool #220016 8.750%,
10/01/01............... 26,037 26,598
6.875%, 11/22/06....... 500,000 488,205
5.000%, 12/15/12....... 705,206 701,507
Pool #260499 10.000%,
04/01/16............... 70,895 77,076
Pool #292065 8.500%,
04/01/17............... 1,914,620 1,980,435
Pool #606523 7.086%,
10/01/19............... 930,327 960,563
Federal National Mortgage
Assn.
8.550%, 08/30/99....... 400,000 419,344
Pool #312088 7.000%,
06/01/02............... 2,337,130 2,333,477
Pool #76368 9.250%,
09/01/03............... 101,339 105,931
Pool #76378 9.250%,
09/01/03............... 224,555 234,730
8.250%, 10/12/04....... 600,000 614,688
8.400%, 10/25/04....... 650,000 672,061
6.950%, 11/13/06....... 1,000,000 980,910
Pool #270674 9.000%,
09/01/17............... 690,618 723,638
Pool #224635 9.000%,
09/01/20............... 229,652 240,632
Pool #124211 7.389%,
12/01/21............... 1,126,125 1,152,871
Government National
Mortgage Assn.
Pool #93401 9.500%,
01/15/10............... 312,536 334,804
Pool #296254 9.500%,
09/15/20............... 15,514 16,707
Student Loan Marketing
Assn.
Ser. 1997-1, 5.730%,
10/25/05............... 1,200,000 1,200,000
----------
TOTAL U.S. GOVERNMENT
AGENCIES
(cost $14,245,477)..... 14,306,639
----------
<CAPTION>
CORPORATE PRINCIPAL
BONDS--22.2% AMOUNT VALUE
----------- -----------
<S> <C> <C>
FOREIGN-4.5%
Santander Financial
Issuances
7.250%, 05/30/06....... $ 2,500,000 $ 2,481,250
----------
CONSUMER PRODUCTS &
SERVICES-3.6%
Anheuser Busch Cos.
7.000%, 09/01/05....... 1,000,000 986,250
Coca-Cola Enterprises
6.700%, 10/15/36....... 1,000,000 988,750
-----------
1,975,000
-----------
FINANCIAL-8.1%
Associates Corp. N.A.
6.875%, 11/15/08....... 1,000,000 967,500
First National Bank of
Boston
7.375%, 09/15/06....... 1,000,000 998,750
Ford Motor Credit Co.
7.750%, 11/15/02....... 350,000 362,688
Norwest Financial Corp.
6.550%, 12/01/06....... 600,000 573,750
Sears Credit Account
Master Trust
8.100%, 06/15/04....... 1,500,000 1,557,075
-----------
4,459,763
-----------
INDUSTRIAL-1.7%
DuPont (E.I.) de Nemours
& Co.
8.500%, 02/15/03....... 900,000 947,250
----------
PUBLIC UTILITIES-2.6%
Duke Power Co.
6.375%, 03/01/08....... 1,550,000 1,445,375
----------
TECHNOLOGY-1.7%
Xerox Corp.
6.250%, 11/15/26....... 1,000,000 962,500
----------
TOTAL CORPORATE BONDS
(cost $12,228,855)..... 12,271,138
----------
TOTAL INVESTMENTS--98.7%
(cost $54,328,322)..... 54,598,380
----------
CASH AND OTHER ASSETS
NET OF
LIABILITIES--1.3%...... 742,479
----------
NET ASSETS--100.0%....... $55,340,859
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL TRUST FUND
<TABLE>
<CAPTION>
PRINCIPAL
MUNICIPAL BONDS--98.7% AMOUNT VALUE
----------- -------------
<S> <C> <C>
ARIZONA-2.1%
Arizona State University
Refunding Ser. A 6.500%, 07/01/01.......... $ 750,000 $ 802,500
-----------
CALIFORNIA-5.8%
California Department of Water Systems
6.000%, 12/01/07........................... 1,000,000 1,076,250
California State
6.500%, 09/01/10........................... 1,000,000 1,108,750
-----------
2,185,000
-----------
COLORADO-5.6%
Denver, Colorado City & County Airport
6.750%, 11/15/22........................... 2,000,000 2,087,500
-----------
FLORIDA-2.8%
Lakeland, Florida Electric & Water Revenue
5.900%, 10/01/08........................... 1,000,000 1,063,750
-----------
ILLINOIS-11.9%
Cook County, Illinois Ser. B
5.750%, 11/15/04........................... 1,215,000 1,283,344
Chicago, Illinois Metropolitan Water
Reclamation District
5.750%, 12/01/01........................... 1,000,000 1,038,750
Chicago, Illinois Metropolitan Water
Reclamation District
7.000%, 01/01/11........................... 1,000,000 1,147,500
Chicago, Illinois O'Hare International
Airport 5.500%, 01/01/08................... 1,000,000 1,016,250
-----------
4,485,844
-----------
INDIANA-2.9%
Indiana University Revenue Student Fee Ser. K
6.500%, 08/01/05........................... 1,000,000 1,093,750
-----------
IOWA-2.8%
Iowa Student Loan Liquidation Corp.
6.800%, 03/01/05........................... 1,000,000 1,068,750
-----------
LOUISIANA-2.8%
Louisiana Public Facility Authority Revenue
Student Loan Ser. A
6.750%, 09/01/06........................... 1,000,000 1,050,000
-----------
MASSACHUSETTS-5.5%
Massachusetts State Water Resources Ser. B
5.700%, 11/01/02........................... 1,000,000 1,046,250
Massachusetts State Refunding Ser. B
5.500%, 11/01/07........................... 1,000,000 1,030,000
-----------
2,076,250
-----------
MISSISSIPPI-2.7%
Mississippi State Ser. E
5.300%, 09/01/08........................... 1,000,000 1,012,500
-----------
MISSOURI-5.4%
Missouri State Health & Education Facility
5.100%, 05/15/09........................... 1,000,000 977,500
Missouri State Environment Import & Energy
Resource Authority Pollution Control
Revenue 5.800%, 09/01/09................... 1,000,000 1,038,750
-----------
2,016,250
-----------
NEBRASKA-0.3%
Nebraska Higher Education Loan Program
4.800%, 12/01/16........................... 100,000 100,000
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
----------- -------------
<S> <C> <C>
NEW JERSEY-2.9%
University of Medicine & Dentistry New Jersey
Ser. E 6.400%, 12/01/07.................... $ 1,000,000 $ 1,081,250
-----------
NEW YORK-5.5%
New York State Dormitory Authority Revenue
6.500%, 05/15/06........................... 1,000,000 1,068,750
New York City, New York Ser. G 5.750%,
02/01/08................................... 1,000,000 988,750
-----------
2,057,500
-----------
NORTH CAROLINA-2.7%
North Carolina State Ser. A
5.100%, 03/01/05........................... 1,000,000 1,016,250
-----------
OHIO-2.8%
Ohio State Water Development Authority
Revenue 5.750%, 06/01/04................... 1,000,000 1,045,000
-----------
OKLAHOMA-4.3%
Grand River Dam Authority, Oklahoma
6.250%, 06/01/11........................... 1,500,000 1,627,500
-----------
PENNSYLVANIA-3.9%
Philadelphia, Pennsylvania Authority for
Industrial Development
6.000%, 02/15/07........................... 1,365,000 1,453,725
-----------
PUERTO RICO-2.7%
Puerto Rico Commonwealth Refunding
5.100%, 07/01/02........................... 1,000,000 1,006,250
-----------
TENNESSEE-4.6%
Memphis, Tennessee Electric System
6.000%, 01/01/05........................... 1,600,000 1,714,000
-----------
TEXAS-9.7%
Lewisville, Texas Independent School District
6.000%, 08/15/01........................... 1,350,000 1,420,875
University of Texas, Permanent University
Funding 4.600%, 07/01/08................... 1,200,000 1,137,000
Texas State Refunding Ser. A
6.000%, 10/01/08........................... 1,000,000 1,072,500
-----------
3,630,375
-----------
VIRGINIA-2.7%
Arlington County, Virginia
5.250%, 08/01/98........................... 1,000,000 1,017,500
-----------
WASHINGTON-5.4%
Washington Public Power Supply Ser. 1B
7.100%, 07/01/00........................... 1,000,000 1,061,250
Washington State Public Power Supply
5.500%, 07/01/10........................... 1,000,000 985,000
-----------
2,046,250
-----------
TOTAL INVESTMENTS--97.8%
(cost $36,602,273)......................... 36,737,694
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES--2.2%................... 820,223
-----------
NET ASSETS--100.0%........................... $ 37,557,917
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL FIXED
GROWTH AND COMPANY INCOME MUNICIPAL
GROWTH FUND INCOME FUND VALUE FUND FUND TRUST FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value
(cost $60,551,497, $101,911,265,
$181,967,433, $54,328,322, and
$36,602,273, respectively)........... $81,942,396 $138,131,194 $229,811,792 $ 54,598,380 $ 36,737,694
Cash.................................... -- 1,911 60,850 -- --
Receivable for investment securities
sold.................................. -- 399,599 910,571 -- 229,788
Receivable for capital stock sold....... 222,053 564,664 211,565 952 --
Dividends and interest receivable....... 76,503 277,912 138,309 1,053,871 689,650
Reimbursement due from advisor.......... -- -- -- 43,638 36,613
Deferred organization costs (Note A).... -- -- -- -- 26,344
------------ ------------ ------------ ------------ ------------
Total assets........................ 82,240,952 139,375,280 231,133,087 55,696,841 37,720,089
------------ ------------ ------------ ------------ ------------
LIABILITIES:
Payable to investment advisor........... 48,000 70,088 148,031 -- --
Payable for investment securities
purchased............................. -- 674,275 140,712 -- --
Payable for capital stock redeemed...... 26,196 60,576 83,051 47,432 5,706
Dividend payable........................ -- -- -- 77,685 39,400
Accrued expenses and other
liabilities........................... 199,567 196,946 333,320 230,865 117,066
------------ ------------ ------------ ------------ ------------
Total liabilities................... 273,763 1,001,885 705,114 355,982 162,172
------------ ------------ ------------ ------------ ------------
NET ASSETS.................................. $81,967,189 $138,373,395 $230,427,973 $ 55,340,859 $ 37,557,917
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
NET ASSETS CONSIST OF:
Capital paid-in......................... $58,205,341 $ 99,124,363 $192,107,793 $ 56,199,748 $ 37,874,997
Undistributed net investment income..... 30,799 334,917 295,818 -- --
Accumulated net realized gain (loss) on
investments........................... 2,340,150 2,694,186 (9,819,997) (1,128,947) (452,501)
Net unrealized appreciation on
investments........................... 21,390,899 36,219,929 47,844,359 270,058 135,421
------------ ------------ ------------ ------------ ------------
$81,967,189 $138,373,395 $230,427,973 $ 55,340,859 $ 37,557,917
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
CLASS A SHARES:
Net assets.............................. $75,801,825 $125,947,385 $220,863,716 $ 52,792,999 $ 36,990,977
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Shares outstanding...................... 5,806,129 7,253,634 11,882,619 5,334,359 3,710,091
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Net asset value and redemption value per
share................................. $13.06 $17.36 $18.59 $9.90 $9.97
------ ----- ----- ----- -----
------ ----- ----- ----- -----
Maximum offering price per share (net
asset value plus sales charge of 4.75%
of offering price).................... $13.71 $18.23 $19.52 $10.39 $10.47
------ ----- ----- ----- -----
------ ----- ----- ----- -----
CLASS B SHARES:
Net assets.............................. $ 6,165,364 $ 12,426,010 $ 9,564,257 $ 2,547,860 $ 566,940
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Shares outstanding...................... 475,383 717,268 517,516 257,445 56,893
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Net asset value and offering price per
share................................. $12.97 $17.32 $18.48 $9.90 $9.97
------ ----- ----- ----- -----
------ ----- ----- ----- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL FIXED
GROWTH AND COMPANY INCOME MUNICIPAL
GROWTH FUND INCOME FUND VALUE FUND FUND TRUST FUND
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends................................ $ 576,484 $ 1,427,712 $ 1,962,517 $ -- $ --
Interest................................. 52,158 309,380 61,651 1,954,701 983,544
------------ ------------ ------------ ------------ ------------
Total investment income.............. 628,642 1,737,092 2,024,168 1,954,701 983,544
------------ ------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees (Note B)........ 289,499 418,640 925,324 177,665 119,228
Distribution fees--Class A (Note B)...... 108,879 181,406 342,791 82,217 56,432
Distribution fees--Class B (Note B)...... 23,068 46,811 40,632 10,208 2,660
Legal fees............................... 7,000 9,000 22,000 5,000 4,000
Transfer agent fees...................... 54,000 73,700 146,600 35,200 33,900
Custodian fees........................... 36,700 47,800 72,500 34,600 26,300
Auditing fees............................ 6,000 8,000 18,000 5,000 4,000
Printing fees............................ 8,000 10,000 23,000 7,000 6,000
Trustees' fees........................... 4,000 6,000 11,000 4,000 4,000
Registration fees........................ 11,000 13,800 26,000 10,000 10,000
Miscellaneous............................ 9,050 12,700 42,900 8,324 6,241
Amortization of organization costs (Note
A)..................................... -- -- -- -- 10,505
------------ ------------ ------------ ------------ ------------
Total expenses....................... 557,196 827,857 1,670,747 379,214 283,266
Less expenses reimbursed by
investment advisor................. -- -- -- (87,804) (186,022)
------------ ------------ ------------ ------------ ------------
Net expenses......................... 557,196 827,857 1,670,747 291,410 97,244
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME........................ 71,446 909,235 353,421 1,663,291 886,300
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS--NOTE C:
Net realized gain (loss) on
investments............................ 2,352,212 2,701,811 5,446,107 (150,766) 273,770
Net change in unrealized appreciation on
investments............................ 7,120,723 10,668,813 7,137,991 (855,752) (416,684)
------------ ------------ ------------ ------------ ------------
Net realized and unrealized gain (loss)
on investments......................... 9,472,935 13,370,624 12,584,098 (1,006,518) (142,914)
------------ ------------ ------------ ------------ ------------
INCREASE IN NET ASSETS FROM OPERATIONS....... $ 9,544,381 $14,279,859 $ 12,937,519 $ 656,773 $ 743,386
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND GROWTH AND INCOME FUND
----------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/97+ 10/31/96 ENDED 04/30/97+ 10/31/96
--------------- ----------- --------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................... $ 71,446 $ 290,019 $ 909,235 $ 1,759,734
Net realized gain on investments........................ 2,352,212 6,591,571 2,701,811 11,355,940
Net change in unrealized appreciation on investments.... 7,120,723 4,528,416 10,668,813 7,715,321
--------------- ----------- --------------- ------------
Increase in net assets from operations.................. 9,544,381 11,410,006 14,279,859 20,830,995
--------------- ----------- --------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A............................................... (280,254) (199,179 ) (840,761) (1,560,079 )
Class B............................................... (10,276) -- (33,220) (26,691 )
Realized gains on investments:
Class A............................................... (6,295,539) (3,854,607 ) (10,719,151) (2,114,222 )
Class B............................................... (298,769) -- (645,626) --
--------------- ----------- --------------- ------------
Total Dividends and Distributions to Shareholders....... (6,884,838) (4,053,786 ) (12,238,758) (3,700,992 )
--------------- ----------- --------------- ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D.................... 8,034,845 7,970,431 15,984,178 15,243,210
--------------- ----------- --------------- ------------
Total increase in net assets............................ 10,694,388 15,326,651 18,025,279 32,373,213
NET ASSETS:
Beginning of year....................................... 71,272,801 55,946,150 120,348,116 87,974,903
--------------- ----------- --------------- ------------
End of period (including undistributed net investment
income of $30,799 and $249,883 for the Growth Fund at
4/30/97 and 10/31/96, respectively, and $334,917 and
$299,663 for the Growth and Income Fund at 4/30/97 and
10/31/96, respectively)............................... $81,967,189 $71,272,801 $138,373,395 $120,348,116
--------------- ----------- --------------- ------------
--------------- ----------- --------------- ------------
</TABLE>
- ------------------------
+ Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY VALUE FUND* FIXED INCOME FUND
----------------------------- ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/97+ 10/31/96 ENDED 04/30/97+ 10/31/96
--------------- ----------- --------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income................................... $ 353,421 $1,046,264 $ 1,663,291 $ 3,296,699
Net realized gain (loss) on investments................. 5,446,107 9,125,357 (150,766) (765,991 )
Net change in unrealized appreciation on
investments........................................... 7,137,991 18,057,004 (855,752) (148,726 )
--------------- ----------- --------------- ------------
Increase in net assets from operations.................. 12,937,519 28,228,625 656,773 2,381,982
--------------- ----------- --------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A............................................... (1,023,018) (463,915 ) (1,610,888) (3,263,578 )
Class B............................................... (22,096) -- (52,403) (33,121 )
Realized gains on investments:
Class A............................................... (8,883,673) (4,882,667 ) -- --
Class B............................................... (251,999) -- -- --
--------------- ----------- --------------- ------------
Total Dividends and Distributions to
Shareholders.......................................... (10,180,786) (5,346,582 ) (1,663,291) (3,296,699 )
--------------- ----------- --------------- ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D.................... (6,349,941) 8,409,509 (1,669,975) 5,047,283
--------------- ----------- --------------- ------------
Total increase (decrease) in net assets................. (3,593,208) 31,291,552 (2,676,493) 4,132,566
NET ASSETS:
Beginning of year....................................... 234,021,181 202,729,629 58,017,352 53,884,786
--------------- ----------- --------------- ------------
End of period (including undistributed net investment
income of $295,818 and $987,511 for the Small Company
Value Fund at 4/30/97 and 10/31/96, respectively)..... $230,427,973 $234,021,181 $ 55,340,859 $58,017,352
--------------- ----------- --------------- ------------
--------------- ----------- --------------- ------------
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
-------------------------------
SIX MONTHS YEAR ENDED
ENDED 04/30/97+ 10/31/96
----------------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income........................................................... $ 886,300 $1,649,320
Net realized gain on investments................................................ 273,770 172,684
Net change in unrealized appreciation on investments............................ (416,684) (352,918)
----------------- ------------
Increase in net assets from operations.......................................... 743,386 1,469,086
----------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM :
Investment income:
Class A....................................................................... (875,784) (1,642,490)
Class B....................................................................... (10,516) (6,830)
----------------- ------------
Total Dividends and Distributions to Shareholders............................... (886,300) (1,649,320)
----------------- ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D............................................ (1,581,752) 404,039
----------------- ------------
Total increase (decrease) in net assets......................................... (1,724,666) 223,805
NET ASSETS:
Beginning of year............................................................... 39,282,583 39,058,778
----------------- ------------
End of period................................................................... $37,557,917 $39,282,583
----------------- ------------
----------------- ------------
</TABLE>
- --------------------------
+ Unaudited.
* Effective February 20, 1997, the Winthrop Small Company Value Fund's name
was changed from the Winthrop Aggressive Growth Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30,1997 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. Winthrop Focus Funds ("Winthrop" or
"Funds") operates as a series company currently consisting of five portfolios
(the "Portfolios"): Winthrop Growth Fund, Winthrop Growth and Income Fund,
Winthrop Small Company Value 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").
Effective February 20, 1997, the Winthrop Small Company Value Fund's name was
changed from the Winthrop Aggressive Growth Fund.
The Funds account separately for the assets, liabilities and operations of each
Portfolio. Expenses directly attributable to each Portfolio are charged to that
Portfolio's operations; expenses which are applicable to all Portfolios are
allocated among them on a pro rata basis.
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 are 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 Funds' financial
statements are prepared in accordance with generally accepted accounting
principles which may require the use of management estimates and assumptions.
Actual results could differ from those estimates. 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.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
(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. The Fixed Income Fund has an unused capital loss
carryover of approximately $892,000 available for federal income tax purposes
to be applied against future net securities profits, if any, realized
subsequent to October 31, 1996. If not applied, $155,000 of the carryover
expires in fiscal 2002 and $737,000 expires in fiscal 2004. The Municipal
Trust Fund has an unused capital loss carryover of approximately $726,000
available for federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to October 31, 1996. If not
applied, $167,000 of the carryover expires in fiscal 2002 and $559,000 expires
in fiscal 2003.
(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.
Discounts and premiums on securities purchased are amortized in accordance
with income tax regulations which approximate generally accepted accounting
principles.
(5) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date.
(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
sixty months 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; Small Company Value 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 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.
For the six months ended April 30, 1997, 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 of the Fixed
Income Fund. For the Municipal Trust Fund, during the period November 1, 1996
through June 2, 1997, the Advisor reduced its management fees and reimbursed
operating expenses by the amount that Total Fund Operating Expenses exceeded
.50% of the average daily net assets of the Class A shares and 1.20% of the
average daily net assets of the Class B shares. For the period May 1, 1997
through October 31, 1997 for the Fixed Income Fund and for the period June 3,
1997 through October 31, 1997 for the Municipal Trust Fund, the Advisor has
agreed, with respect to both Funds, 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 Class A shares and 1.70% of the average daily
net assets of Class B shares. After October 31, 1997, the Advisor may, in its
sole discretion, determine to discontinue this practice with respect to both or
either of such Funds. As a result of the voluntary assumption of expenses,
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
the Advisor reimbursed the Fixed Income Fund and Municipal Trust Fund $87,804
and $186,022, respectively, during the period ended April 30, 1997.
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
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.
NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of
securities owned at April 30, 1997, was substantially the same as the cost of
securities for financial statement purposes. At April 30, 1997, the components
of the net unrealized appreciation (depreciation) on investments were as
follows:
<TABLE>
<CAPTION>
GROWTH AND
GROWTH INCOME SMALL COMPANY FIXED INCOME MUNICIPAL TRUST
FUND FUND VALUE FUND FUND FUND
---------- ---------------- -------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Gross appreciation (investments
having an excess of value over
cost)........................... $23,312,971 $ 39,265,883 $ 51,864,404 $ 433,752 $ 378,500
Gross depreciation (investments
having an excess of cost over
value).......................... (1,922,072) (3,045,954) (4,020,045) (163,694) (243,079)
---------- ---------------- -------------- ------------ ---------------
Net unrealized appreciation of
investments..................... $21,390,899 $ 36,219,929 $ 47,844,359 $ 270,058 $ 135,421
---------- ---------------- -------------- ------------ ---------------
---------- ---------------- -------------- ------------ ---------------
</TABLE>
For the period ended April 30, 1997, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
GROWTH AND
GROWTH INCOME SMALL COMPANY FIXED INCOME MUNICIPAL TRUST
FUND FUND VALUE FUND FUND FUND
---------- ---------------- ----------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Purchases...................... $20,173,542 $ 19,051,457 $26,628,359 $31,257,303 $19,687,382
Sales.......................... 16,598,969 9,009,417 40,388,520 32,422,871 21,029,156
</TABLE>
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
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 AND INCOME FUND
-------------------------------------------- -----------------------------------------------
PERIOD ENDED PERIOD ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
--------------------- --------------------- ---------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- ----------- --------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold................... 253,766 $ 3,181,655 659,662 $ 7,791,827 508,720 $ 8,734,019 1,164,764 $ 18,470,066
Shares issued through
reinvestment of dividends... 473,727 5,681,333 323,919 3,499,542 603,850 9,812,834 197,158 2,969,907
-------- ----------- -------- ----------- --------- ----------- --------- ------------
727,493 8,862,988 983,581 11,291,369 1,112,570 18,546,853 1,361,922 21,439,973
-------- ----------- -------- ----------- --------- ----------- --------- ------------
Shares redeemed............... (287,500) (3,623,036) (544,548) (6,369,265) (482,669) (8,241,121) (775,120) (12,425,324)
-------- ----------- -------- ----------- --------- ----------- --------- ------------
Net increase.................. 439,993 $ 5,239,952 439,033 $ 4,922,104 629,901 $10,305,732 586,802 $ 9,014,649
-------- ----------- -------- ----------- --------- ----------- --------- ------------
-------- ----------- -------- ----------- --------- ----------- --------- ------------
CLASS B*
Shares sold................... 204,434 $ 2,566,379 257,899 $ 3,126,900 307,620 $ 5,233,194 397,069 $ 6,478,685
Shares issued through
reinvestment of dividends... 25,191 300,539 -- -- 40,060 648,745 1,551 25,566
-------- ----------- -------- ----------- --------- ----------- --------- ------------
229,625 2,866,918 257,899 3,126,900 347,680 5,881,939 398,620 6,504,251
-------- ----------- -------- ----------- --------- ----------- --------- ------------
Shares redeemed............... (5,699) (72,025) (6,442) (78,573) (12,102) (203,493) (16,930) (275,690)
-------- ----------- -------- ----------- --------- ----------- --------- ------------
Net increase.................. 223,926 $ 2,794,893 251,457 $ 3,048,327 335,578 $ 5,678,446 381,690 $ 6,228,561
-------- ----------- -------- ----------- --------- ----------- --------- ------------
-------- ----------- -------- ----------- --------- ----------- --------- ------------
</TABLE>
<TABLE>
<CAPTION>
SMALL COMPANY VALUE FUND+ FIXED INCOME FUND
-------------------------------------------------- -----------------------------------------------
PERIOD ENDED PERIOD ENDED
APRIL 30, 1997 YEAR ENDED APRIL 30, 1997 YEAR ENDED
(UNAUDITED) OCTOBER 31, 1996 (UNAUDITED) OCTOBER 31, 1996
------------------------ ------------------------ --------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold................... 614,945 $ 11,407,536 2,166,779 $ 37,617,929 482,408 $ 4,833,843 1,462,054 $ 14,868,063
Shares issued through
reinvestment of dividends... 520,346 9,336,538 299,334 4,999,339 115,415 1,151,491 228,562 2,298,998
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
1,135,291 20,744,074 2,466,113 42,617,268 597,823 5,985,334 1,690,616 17,167,061
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares redeemed............... (1,620,369) (30,301,843) (2,302,746) (40,353,318) (863,968) (8,612,048) (1,365,005) (13,732,889)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase (decrease)....... (485,078) $ (9,557,769) 163,367 $ 2,263,950 (266,145) $(2,626,714) 325,611 $ 3,434,172
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
CLASS B*
Shares sold................... 173,089 $ 3,208,488 349,790 $ 6,251,446 122,087 $ 1,219,453 167,890 $ 1,673,750
Shares issued through
reinvestment of dividends... 14,940 266,712 -- -- 4,418 44,031 3,016 29,872
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
188,029 3,475,200 349,790 6,251,446 126,505 1,263,484 170,906 1,703,622
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Shares redeemed............... (14,286) (267,372) (6,017) (105,887) (30,849) (306,745) (9,117) (90,511)
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
Net increase.................. 173,743 $ 3,207,828 343,773 $ 6,145,559 95,656 $ 956,739 161,789 $ 1,613,111
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
---------- ------------ ---------- ------------ -------- ----------- ---------- ------------
</TABLE>
- ------------------------
+ Effective February 20, 1997, the Winthrop Small Company Value Fund's name
was changed from the Winthrop Aggressive Growth Fund.
* Winthrop commenced offering Class B shares on February 28, 1996.
<PAGE>
WINTHROP FOCUS FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
--------------------------------------------
PERIOD ENDED
APRIL 30, 1997
(UNAUDITED) YEAR ENDED
OCTOBER 31, 1996
--------------------------------------------
---------------------
SHARES AMOUNT SHARES AMOUNT
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
CLASS A
Shares sold................................................................ 417,706 $ 4,191,563 778,590 $ 7,762,187
Shares issued through reinvestment of dividends............................ 68,973 693,224 130,153 1,298,598
-------- ----------- -------- -----------
486,679 4,884,787 908,743 9,060,785
-------- ----------- -------- -----------
Shares redeemed............................................................ (652,655) (6,547,171) (916,513) (9,136,736)
-------- ----------- -------- -----------
Net decrease............................................................... (165,976) $(1,662,384) (7,770) $ (75,951)
-------- ----------- -------- -----------
-------- ----------- -------- -----------
CLASS B*
Shares sold................................................................ 14,189 $ 141,508 48,213 $ 473,753
Shares issued through reinvestment of dividends............................ 763 7,662 629 6,237
-------- ----------- -------- -----------
14,952 149,170 48,842 479,990
-------- ----------- -------- -----------
Shares redeemed............................................................ (6,901) (68,538) -- --
-------- ----------- -------- -----------
Net increase............................................................... 8,051 $ 80,632 48,842 $ 479,990
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
- ------------------------
* Winthrop commenced offering Class B shares on February 28, 1996.
<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
VALUE, NET GAINS OR
BEGINNING INVESTMENT (LOSSES) ON
OF PERIOD INCOME SECURITIES
--------- ---------- ------------
<S> <C> <C> <C>
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 $12.69 $ 0.014 $1.583
YEARS ENDED OCTOBER 31,
1996 11.35 0.053 2.107
1995 10.82 0.037 1.190
1994 10.97 0.014 0.435
1993 11.10 0.061 1.386
1992 11.45 0.123 0.418
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 12.63 (0.015) 1.562
YEAR ENDED OCTOBER 31,
1996 11.88 (0.013) 0.763
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 $17.18 $ 0.122 $1.807
YEARS ENDED OCTOBER 31,
1996 14.57 0.266 2.935
1995 13.38 0.254 1.769
1994 13.42 0.244 0.358
1993 12.35 0.270 1.720
1992 * 12.03 0.083 0.572
YEAR ENDED JUNE 30,
Class A
1992 11.70 0.320 0.916
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 17.15 0.061 1.800
YEAR ENDED OCTOBER 31,
1996 16.05 0.136 1.109
SMALL COMPANY VALUE FUND(4)--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 $18.41 $ 0.026 $0.960
YEARS ENDED OCTOBER 31,
1996 16.61 0.084 2.162
1995 15.65 0.035 1.621
1994 16.11 0.105 0.603
1993 14.00 0.123 3.195
1992 ** 14.16 0.011 1.482
YEAR ENDED DECEMBER 31,
Class A
1991 10.16 0.023 5.090
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 18.34 (0.022) 0.941
YEAR ENDED OCTOBER 31,
1996 17.41 (0.023) 0.953
<CAPTION>
DIVIDENDS DISTRIBUTIONS NET
FROM NET FROM ASSET VALUE,
INVESTMENT CAPITAL END
INCOME GAINS OF PERIOD
---------- ------------- ------------
<S> <C> <C> <C>
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 ($0.048) ($1.175) $13.06
YEARS ENDED OCTOBER 31,
1996 (0.038) (0.782) 12.69
1995 (0.012) (0.685) 11.35
1994 -- (0.599) 10.82
1993 (0.077) (1.500) 10.97
1992 (0.163) (0.728) 11.10
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 (0.031) (1.175) 12.97
YEAR ENDED OCTOBER 31,
1996 -- -- 12.63
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 ($0.117) ($1.635) $17.36
YEARS ENDED OCTOBER 31,
1996 (0.241) (0.350) 17.18
1995 (0.266) (0.567) 14.57
1994 (0.223) (0.419) 13.38
1993 (0.271) (0.649) 13.42
1992 (0.165) (0.170) 12.35
YEAR ENDED JUNE 30,
Class A
1992 (0.234) (0.672) 12.03
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 (0.058) (1.635) 17.32
YEAR ENDED OCTOBER 31,
1996 (0.145) -- 17.15
SMALL COMPANY VALUE FUND(4)--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 ($0.081) ($0.723) $18.59
YEARS ENDED OCTOBER 31,
1996 (0.037) (0.409) 18.41
1995 -- (0.696) 16.61
1994 (0.026) (1.142) 15.65
1993 (0.011) (1.197) 16.11
1992 (0.027) (1.626) 14.00
YEAR ENDED DECEMBER 31,
Class A
1991 (0.024) (1.089) 14.16
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 (0.052) (0.723) 18.48
YEAR ENDED OCTOBER 31,
1996 -- -- 18.34
<CAPTION>
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
TOTAL END OF PERIOD NET
RETURN++ (000 OMITTED) ASSETS(2)
-------- ------------- -------------
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 13.45% $ 75,802 1.40%(1)
YEARS ENDED OCTOBER 31,
1996 20.32 68,096 1.48
1995 12.21 55,946 1.63
1994 4.15 52,455 1.65
1993 14.36 49,446 1.36
1992 4.66 48,678 1.26
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 13.10 6,165 2.10(1)
YEAR ENDED OCTOBER 31,
1996 6.40 3,177 2.17(1)
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 12.01% $125,947 1.22%(1)
YEARS ENDED OCTOBER 31,
1996 22.60 113,803 1.36
1995 16.10 87,975 1.58
1994 4.58 67,020 1.64
1993 16.93 52,166 1.33
1992 16.39(1) 46,457 1.32(1)
YEAR ENDED JUNE 30,
Class A
1992 10.45 45,342 1.35
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 11.59 12,426 1.92(1)
YEAR ENDED OCTOBER 31,
1996 7.67 6,545 1.99(1)
SMALL COMPANY VALUE FUND(4)--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 5.52% $220,864 1.39%(1)
YEARS ENDED OCTOBER 31,
1996 13.80 227,716 1.47
1995 11.10 202,730 1.64
1994 4.67 144,624 1.70
1993 25.34 77,903 1.44
1992 13.95(1) 39,683 1.74(1)
YEAR ENDED DECEMBER 31,
Class A
1991 50.55 33,340 1.89
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 5.15 9,564 2.09(1)
YEAR ENDED OCTOBER 31,
1996 5.28 6,305 2.15(1)
<CAPTION>
RATIO OF
NET INVESTMENT
INCOME (LOSS) PORTFOLIO AVERAGE
TO AVERAGE TURNOVER COMMISSION
NET ASSETS(2) RATE RATE PAID
-------------- -------- ----------
GROWTH FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 0.77%(1) 46.5% $0.07
YEARS ENDED OCTOBER 31,
1996 0.47 60.6 0.06
1995 0.35 101.7 N/A
1994 0.06 28.2 N/A
1993 0.56 61.7 N/A
1992 1.11 65.7 N/A
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 0.45(1) 46.5 0.07
YEAR ENDED OCTOBER 31,
1996 (0.34) (1) 60.6 0.06
GROWTH AND INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 1.39%(1) 16.9% $0.07
YEARS ENDED OCTOBER 31,
1996 1.68 44.0 0.06
1995 1.94 31.8 N/A
1994 1.88 25.9 N/A
1993 2.12 36.4 N/A
1992 1.99(1) 14.4 N/A
YEAR ENDED JUNE 30,
Class A
1992 2.62 29.0 N/A
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 0.71(1) 16.9 0.07
YEAR ENDED OCTOBER 31,
1996 1.06(1) 44.0 0.06
SMALL COMPANY VALUE FUND(4)--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 0.89%(1) 21.0% $0.06
YEARS ENDED OCTOBER 31,
1996 0.48 35.1 0.06
1995 0.23 25.1 N/A
1994 (0.04) 31.6 N/A
1993 0.32 134.3 N/A
1992 0.10(1) 164.1 N/A
YEAR ENDED DECEMBER 31,
Class A
1991 0.18 91.3 N/A
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 0.54(1) 21.0 0.06
YEAR ENDED OCTOBER 31,
1996 (0.34) (1) 35.1 0.06
</TABLE>
- ------------------------
* FOR THE PERIOD 7/1/92 TO 10/31/92.
** FOR THE PERIOD 1/1/92 TO 10/31/92.
++ TOTAL RETURN IS CALCULATED ASSUMING AN INITIAL INVESTMENT MADE AT THE NET
ASSET VALUE AT THE BEGINNING OF THE PERIOD, REINVESTMENT OF ALL DIVIDENDS
AND DISTRIBUTIONS AT NET ASSET VALUE DURING THE PERIOD, AND REDEMPTION ON
THE LAST DAY OF THE PERIOD. INITIAL SALES CHARGE OR CONTINGENT DEFERRED
SALES CHARGE IS NOT REFLECTED IN THE CALCULATION OF TOTAL RETURN. TOTAL
RETURN CALCULATED FOR A PERIOD OF LESS THAN ONE YEAR IS NOT ANNUALIZED.
(1) ANNUALIZED
(2) NET OF VOLUNTARY ASSUMPTION BY ADVISOR OF EXPENSES, EXPRESSED AS A
PERCENTAGE OF AVERAGE NET ASSETS, AS FOLLOWS: GROWTH AND INCOME FUND, .01%
FOR THE YEAR ENDED 6/30/92 AND SMALL COMPANY VALUE FUND, .01% FOR THE YEAR
ENDED 12/31/91.
(3) WINTHROP COMMENCED OFFERING CLASS B SHARES ON FEBRUARY 28, 1996.
(4) EFFECTIVE FEBRUARY 20, 1997, THE WINTHROP SMALL COMPANY VALUE FUND'S NAME
WAS CHANGED FROM THE WINTHROP AGGRESSIVE GROWTH FUND.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
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
VALUE, NET GAINS OR
BEGINNING INVESTMENT (LOSSES) ON
OF PERIOD INCOME SECURITIES
---------- ---------- ------------
<S> <C> <C> <C>
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 $10.07 $ 0.291 ($0.171)
YEARS ENDED OCTOBER 31,
1996 10.22 0.577 (0.150)
1995 9.66 0.588 0.560
1994 10.93 0.567 (1.027)
1993 10.40 0.622 0.567
1992 10.08 0.695 0.320
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 10.07 0.256 (0.167)
YEAR ENDED OCTOBER 31,
1996 10.22 0.339 (0.150)
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 $10.01 $ 0.232 ($0.038)
YEARS ENDED OCTOBER 31,
1996 10.06 0.425 (0.050)
1995 9.51 0.389 0.550
1994 10.10 0.365 (0.590)
1993+ 10.00 0.085 0.100
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 10.01 0.197 (0.039)
YEAR ENDED OCTOBER 31,
1996 10.12 0.248 (0.110)
<CAPTION>
DIVIDENDS DISTRIBUTIONS NET
FROM NET FROM ASSET VALUE,
INVESTMENT CAPITAL END
INCOME GAINS OF PERIOD
---------- ------------- ------------
<S> <C> <C> <C>
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 ($0.291) $-- $ 9.90
YEARS ENDED OCTOBER 31,
1996 (0.577) -- 10.07
1995 (0.588) -- 10.22
1994 (0.567) (0.243) 9.66
1993 (0.622) (0.037) 10.93
1992 (0.695) -- 10.40
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 (0.256) -- 9.90
YEAR ENDED OCTOBER 31,
1996 (0.339) -- 10.07
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 ($0.232) $-- $ 9.97
YEARS ENDED OCTOBER 31,
1996 (0.425) -- 10.01
1995 (0.389) -- 10.06
1994 (0.365) -- 9.51
1993+ (0.085) -- 10.10
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 (0.197) -- 9.97
YEAR ENDED OCTOBER 31,
1996 (0.248) -- 10.01
<CAPTION>
RATIO OF
EXPENSES
NET ASSETS TO AVERAGE
TOTAL END OF PERIOD NET
RETURN++ (000 OMITTED) ASSETS(2)
-------- ------------- -------------
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 1.21% $ 52,793 1.00%(1)
YEARS ENDED OCTOBER 31,
1996 4.34 56,388 1.00
1995 12.23 53,885 1.00
1994 (4.37) 39,150 0.93
1993 11.79 40,881 0.83
1992 10.37 32,358 0.51
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 0.86 2,548 1.70(1)
YEAR ENDED OCTOBER 31,
1996 2.23 1,629 1.70(1)
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 1.92% $ 36,991 0.50%(1)
YEARS ENDED OCTOBER 31,
1996 3.83 38,794 0.80
1995 10.06 39,059 1.00
1994 (2.27) 34,470 0.83
1993+ 7.15(1) 33,794 0.75(1)
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 1.57 567 1.20(1)
YEAR ENDED OCTOBER 31,
1996 1.42 489 1.23(1)
<CAPTION>
RATIO OF
NET INVESTMENT
INCOME (LOSS) PORTFOLIO AVERAGE
TO AVERAGE TURNOVER COMMISSION
NET ASSETS(2) RATE RATE PAID
-------------- -------- ----------
FIXED INCOME FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 5.87%(1) 104.0% N/A
YEARS ENDED OCTOBER 31,
1996 5.72 90.2 N/A
1995 5.90 66.1 N/A
1994 5.58 55.9 N/A
1993 5.79 95.6 N/A
1992 6.71 62.8 N/A
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 5.12(1) 104.0 N/A
YEAR ENDED OCTOBER 31,
1996 5.03(1) 90.2 N/A
MUNICIPAL TRUST FUND--SIX MONTHS ENDED APRIL 30, (UNAUDITED)
Class A
1997 4.65%(1) 95.9% N/A
YEARS ENDED OCTOBER 31,
1996 4.26 79.3 N/A
1995 3.97 49.3 N/A
1994 3.71 42.5 N/A
1993+ 3.28(1) -- N/A
Class B (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
1997 3.95(1) 95.9 N/A
YEAR ENDED OCTOBER 31,
1996 3.81(1) 79.3 N/A
</TABLE>
- ------------------------
+ COMMENCEMENT OF OPERATIONS FOR THE MUNICIPAL TRUST FUND WAS JULY 28, 1993.
++ TOTAL RETURN IS CALCULATED ASSUMING AN INITIAL INVESTMENT MADE AT THE NET
ASSET VALUE AT THE BEGINNING OF THE PERIOD, REINVESTMENT OF ALL DIVIDENDS
AND DISTRIBUTIONS AT NET ASSET VALUE DURING THE PERIOD, AND REDEMPTION ON
THE LAST DAY OF THE PERIOD. INITIAL SALES CHARGE OR CONTINGENT DEFERRED
SALES CHARGE IS NOT REFLECTED IN THE CALCULATION OF TOTAL RETURN. TOTAL
RETURN CALCULATED FOR A PERIOD OF LESS THAN ONE YEAR IS NOT ANNUALIZED.
(1) ANNUALIZED
(2) NET OF VOLUNTARY ASSUMPTION BY ADVISOR OF EXPENSES, EXPRESSED AS A
PERCENTAGE OF AVERAGE NET ASSETS, AS FOLLOWS: FIXED INCOME FUND CLASS A
SHARES, .31% (ANNUALIZED) FOR THE SIX MONTHS ENDED 4/30/97, .34%, .51%,
.67%, .58%, AND .98% FOR THE YEARS ENDED 10/31/96, 95, 94, 93, AND 92,
RESPECTIVELY; FIXED INCOME CLASS B SHARES, .30% (ANNUALIZED) FOR THE SIX
MONTHS ENDED 4/30/97, .34% (ANNUALIZED) FOR THE PERIOD 2/28/96 THROUGH
10/31/96; MUNICIPAL TRUST FUND CLASS A SHARES, .97% (ANNUALIZED) FOR THE SIX
MONTHS ENDED 4/30/97, .64%, .58%, .77% AND 1.15% (ANNUALIZED) FOR THE YEARS
ENDED 10/31/96, 95, 94 AND 93, RESPECTIVELY, AND MUNICIPAL TRUST FUND CLASS
B SHARES, .98% (ANNUALIZED) FOR THE SIX MONTHS ENDED 4/30/97, .64%
(ANNUALIZED) FOR THE PERIOD 2/28/96 THROUGH 10/31/96.
(3) WINTHROP COMMENCED OFFERING CLASS B SHARES ON FEBRUARY 28, 1996.
<PAGE>
WINTHROP FOCUS FUNDS
(800) 225-8011
TRUSTEES
G. Moffett Cochran Stig Host William H. Mathers
James L. McCabe William C. Simpson
Robert L. Bast
Carl B. Menges Peter F. Krogh
James A. Engle
John J. Sheehan Stephen K. West
John J. Halsey
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
Roger W. Vogel, VICE PRESIDENT
Brian A. Kammerer, ASSISTANT TREASURER
INVESTMENT ADVISOR
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
TRANSFER AGENT
FPS Services, Inc.
P.O. BOX 61503 (3200 HORIZON DRIVE)
KING OF PRUSSIA, PA 19406-0903
DISTRIBUTOR
Donaldson, Lufkin & Jenrette Securities Corporation
277 PARK AVENUE, NEW YORK, NY 10172
INDEPENDENT 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.
W O O D, S T R U T H E R S & W I N T H R O P
ESTABLISHED 1871
[LOGO]
WFF-2 6/97
[PANEL]
<PAGE>
[LOGO] WINTHROP [LOGO]
MUTUAL FUNDS
WINTHROP FIXED INCOME FUND
WINTHROP GROWTH FUND
WINTHROP GROWTH AND INCOME FUND
WINTHROP MUNICIPAL TRUST FUND
WINTHROP SMALL COMPANY VALUE FUND
APRIL 30, 1997
SEMI-ANNUAL REPORT
