<PAGE>
Dear Shareholders:
A positive investment environment has been extended for U.S. investors as the
United States economy has continued to expand with few signs of inflation.
During the most recent quarter, GDP grew at a 4.8% annual rate versus a
current inflation rate of 1%. We believe that business activity will begin to
slow over the balance of the year. Corporate profits declined by 2.2%,
signifying that rising employment costs are diminishing profit margins. With
the prospect of slowing corporate profitability, we believe interest rates on
bonds are more likely to fall than rise. Stock prices reflect much of the
current good news, and with pressure on profits mounting, stock selection will
continue to be of paramount importance.
Winthrop Small Company Value Fund
The Class A shares of the Winthrop Small Company Value Fund returned 10.79%
for the six-month period ended April 30, 1998, versus 11.86% for the Russell
2000 Index. Prior to the market decline in May, the market had been favoring
smaller growth companies over value oriented names. As typically happens in
down market trading, value has done better than growth thus far in a weak
second quarter of 1998.
Smaller cap stocks continue to languish against the S&P 500 although at some
point continuing record levels of mergers and acquisitions may fuel a
reversal. We expect to see continuing takeover activity, as larger cap
companies use their generously valued stock as currency to facilitate
acquisitions of smaller companies. Since last October, fund holdings Arbor
Drugs, First Commerce, MAPCO, R.P. Scherer, and The Sports Authority have all
been the subject of takeover bids from larger companies.
Some of the fund's strongest performers in 1998 have been in the home
furnishings area, including: Chromcraft Revington, Interface, and La-Z-Boy.
Other strong performers include: Banta, Beckman Coulter, Department 56, Jacobs
Engineering, LeaRonal, Myers Industries, Poe & Brown, Sunstrand, Unova, and
Werner Enterprises. Most of our weakest performers have been in the energy and
technology sectors.
Winthrop Growth and Income Fund
For the six months ended April 30, 1998, the Growth and Income Fund Class A
shares returned 19.31% versus 22.50% for the S&P 500. Strong performances from
financial services and pharmaceutical companies have continued to benefit the
Fund. As these stocks have advanced, we have sold some issues that have
reached our price objectives. It will continue to be our policy to sell stocks
when we believe their potential has been realized, and to redeploy the
proceeds into stock we think will represent greater opportunity.
A recent example of our swapping full value for fair value involves our swap
from Pfizer into Merck. Over the course of our holding period, Pfizer's shares
rose nearly five-fold, as opposed to a two-and-one-half fold increase for
Merck during this period. At today's valuations, Pfizer trades at 51 times
earnings and Merck trades at 26 times earnings. Although we believe that
Pfizer will grow at 18% annually versus our 15% estimate for Merck, at today's
prices we believe that Merck has nearly as much potential upside as Pfizer,
with much less potential risk of loss.
During the period, we purchased shares in International Flavors and Fragrances
(IFF), the leading maker of fragrances used in perfumes and household
products. In 1997, the Company earned 22% on capital, carried no debt, held
over $200 million in cash and paid a dividend of 3%. We believe IFF has the
potential to grow earnings and dividends in excess of 10% per year and should
provide long-term returns to shareholders equal to its growth rate plus its
dividend yield. We believe IFF represents an attractive trade-off between risk
and potential reward and typifies the type of stock we look to hold in the
Winthrop Growth and Income Fund.
Winthrop Growth Fund
For the six months ended April 30, 1998, the Winthrop Growth Fund Class A
shares returned 21.70% and the S&P 500 returned 22.50%. Careful stock
selection provided successful investments in many sectors. Drugs and
industrial stocks were among the best performers. Stocks that performed
particularly well included Becton Dickinson, Federal Mogul, Schering-Plough
and Tyco International.
Winthrop Fixed Income Fund
Performance of the Winthrop Fixed Income Fund for the six months ended April
30, 1998 was comparable to that of the Lehman Government Corporate
Intermediate Index, as the Class A shares of the Fund returned 2.89% vs 3.10%
for the Index. The Fund's intermediate, high quality, domestic orientation
enabled it to perform well through a volatile period for the world's bond
markets. The period saw a fair amount of interest rate volatility, as domestic
long-term Treasury interest rates fell and then rose 50 basis points.
Likewise, credit risk spreads widened dramatically and then contracted, as
events in Asia worsened in the fall of 1997 and then improved in February
1998. As of this writing, domestic interest rates are fairly stable but
conditions in Asia are deteriorating once again.
Strategies recently pursued by the Fund were focused on capitalizing on the
flattening of the yield curve, and increasing the Fund's exposure to high
grade corporate and government agency spread product in an effort to boost
yield. Having been more than 20% long the Lehman Index for much of the last 6
months, we elected to realize some gains and reduced the Fund's duration to
approximately 112% that of the Index at the end of April. Proceeds from these
sales were reinvested into shorter term Treasuries, government agency debt and
corporate securities. New corporate credits added include Commercial Credit,
Sears Roebuck Acceptance Corp. and MCI Communications Corp. All these
securities mature within 5 years and offer additional yield of at least 50
basis points to like maturity Treasuries.
Winthrop Municipal Trust Fund
The dominant theme of the municipal marketplace in the first quarter of 1998
was a 68% increase in supply. The low interest rate environment caused
refundings to run twice last year's levels, and new capital issuance for
infrastructure improvements was up just shy of 50%. The shape of the yield
curve remained relatively stable, unlike the changes in the taxable markets.
Volatility at the close of the quarter resulted in better performance in the
short end of the curve. Consequently, given supply and interest rate
volatility, municipals underperformed taxables with comparable duration. Our
performance for the six months ended April 30, 1998 of 1.75% for the Class A
shares lagged the index's return of 2.03% since we were slightly longer in
maturity than the index. We continued to emphasize the highest quality
credits, while looking to take on slightly increased credit risk upon any
credit spread widening.
We appreciate your continued support and wish you a most enjoyable summer.
Sincerely,
/s/ G. Moffett Cochran
- ----------------------
G. Moffett Cochran
President June, 1998
FOCUS FUND HIGHLIGHTS (unaudited)
Winthrop Growth Fund
Portfolio Changes for the Six Months Ended April 30, 1998
Major Purchases Major Sales
Amgen, Inc.(1) Anheuser-Busch Cos., Inc.(2)
Associates First Capital Corp.(1) CPC International, Inc.(2)
Avery Dennison Corp.(1) Hewlett-Packard Co.(2)
Dayton Hudson Corp.(1) Mead Corp.(2)
EVI, Inc.(1) Morton International, Inc.(2)
Hartford Financial Services Group(1) Penncorp Financial Group(2)
International Business Machines Corp.(1) Sears Roebuck & Co.(2)
Nabisco Holdings Corp.(1) Western Atlas, Inc.(2)
Tosco Corp.(1)
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1998
Percent
Value of Fund
------------ --------
BankAmerica Corp. .......................... $ 4,012,000 3.5%
Proctor & Gamble Co. ....................... 3,829,938 3.3
American International Group, Inc. ......... 3,749,531 3.3
Freddie Mac ................................ 3,742,050 3.3
Exxon Corp. ................................ 3,646,875 3.2
Microsoft Corp. ............................ 3,605,000 3.1
WorldCom, Inc. ............................. 3,422,496 3.0
Dayton Hudson Corp. ........................ 3,230,562 2.8
Disney (Walt) Co. .......................... 3,145,106 2.7
Schering-Plough Corp. ...................... 3,044,750 2.7
------------ ----
$35,428,308 30.9%
============ ====
Investment Results For the Periods Ended April 30, 1998
Average Annual Total Return
----------------------------
Winthrop
Growth Fund
-----------------
Without With
Load Load S&P 500
-------- ----- --------
Class A:
1 year ................................ 35.68% 29.23% 41.07%
5 years ............................... 18.52 17.37 23.25
10 years .............................. 14.57 14.02 18.93
Class B:
1 year ................................ 34.82 30.82 41.07
From inception 2/96 ................... 24.99 24.27 31.01
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 applicable CDSC.
The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged
index of overall stock market performance, which does not take into account
charges, fees and other expenses.
<PAGE>
FOCUS FUND HIGHLIGHTS (unaudited)
Winthrop Growth and Income Fund
Portfolio Changes for the Six Months Ended April 30, 1998
Major Purchases Major Sales
Ameren Corp.(1) Cipsco, Inc.(2)
Amgen, Inc.(1) Guinness PLC ADRs(2)
Cabot Corp.(1) Hercules, Inc.(2)
Diageo PLC Sponsored ADRs(1) Mellon Bank Corp.(2)
Hanna (M.A.) Co.(1) Pfizer, Inc.(2)
Helmerich & Payne, Inc.(1) United Healthcare Corp.(2)
International Flavors & Fragrances, Inc.(1)
Merck & Co., Inc.(1)
Nucor Corp.(1)
Seagram Co. Ltd.(1)
Unova, Inc.(1)
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1998
Percent
Value of Fund
------------ --------
U.S. Bancorp ............................... $ 7,052,564 3.5%
Freddie Mac ................................ 6,483,750 3.2
Burlington Northern Santa Fe ............... 5,890,500 2.9
American International Group, Inc. ......... 5,801,906 2.9
Tyco International Ltd. .................... 4,861,400 2.4
United Technologies Corp. .................. 4,823,438 2.4
Raytheon Co. ............................... 4,464,669 2.2
Sysco Corp. ................................ 4,333,875 2.2
Automatic Data Processing .................. 4,324,162 2.2
Cognizant Corp. ............................ 3,981,262 2.0
------------- ----
$52,017,526 25.9%
============= ====
Investment Results For the Periods Ended April 30, 1998
Average Annual Total Return
----------------------------
Winthrop
Growth and
Income Fund
-----------------
Without With
Load Load S&P 500
-------- ----- --------
Class A:
1 year ................................ 39.04% 32.43% 41.07%
5 years ............................... 20.41 19.24 23.25
10 years .............................. 15.96 15.39 18.93
Class B:
1 year ................................ 38.06 34.06 41.07
From inception 2/96 ................... 26.27 25.57 31.01
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 applicable CDSC.
The S&P 500 Composite Stock Price Index is a widely accepted, unmanaged
index of overall stock market performance, which does not take into account
charges, fees and other expenses.
<PAGE>
FOCUS FUND HIGHLIGHTS (unaudited)
Winthrop Small Company Value Fund
Portfolio Changes for the Six Months Ended April 30, 1998
Major Purchases Major Sales
AMETEK, Inc.(1) Arbor Drugs, Inc.(2)
Berkeley (W.R.) Corp.(1) Bergen Brunswig Corp. Cl. A(2)
BJ Services Co.(1) First Commerce Corp.(2)
The Colonial Bancgroup, Inc.(1) Input/Output, Inc.(2)
Executive Risk, Inc.(1) Mapco, Inc.(2)
Federal Signal Corp.(1) MICROS Systems, Inc.(2)
Horace Mann Educators Corp.(1) Wiser Oil Co.(2)
Sonosight, Inc.(1)
Sundstrand Corp.(1)
Unova, Inc.(1)
Vesta Insurance Group, Inc.(1)
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1998
Percent
Value of Fund
------------ --------
Carlisle Companies, Inc. .............. $ 7,719,075 2.3%
Teleflex, Inc. ........................ 7,267,500 2.1
Banta Corp. ........................... 6,952,000 2.1
Applied Power, Inc. Cl. A ............. 6,854,575 2.0
FirstMerit Corp. ...................... 6,242,500 1.8
Hanna (M.A.) Co. ...................... 6,144,956 1.8
Belden, Inc. .......................... 5,705,944 1.7
HSB Group, Inc. ....................... 5,497,800 1.6
Modine Manufacturing Co. .............. 5,477,719 1.6
Protective Life Corp. ................. 5,279,175 1.6
------------- ----
$63,141,244 18.6%
============= ====
Investment Results For the Periods Ended April 30, 1998
Average Annual Total Return
----------------------------
Winthrop
Small Company
Value Fund
-----------------
Without With Russell
Load Load 2000
-------- ----- -----
Class A:
1 year ........................... 39.10% 32.50% 42.40%
5 years .......................... 17.71 16.57 18.46
10 years ......................... 16.06 15.50 14.65
Class B:
1 year ........................... 38.12 34.12 42.40
From inception 2/96 .............. 21.62 20.88 21.65
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 applicable CDSC.
The Russell 2000 Index is an unmanaged index and is composed of the 2,000
smallest companies in the Russell 3000 Index. The Russell 3000 Index is
composed of 3,000 of the largest U.S. companies by market capitalization. The
Index does not take into account charges, fees and other expenses.
<PAGE>
FOCUS FUND HIGHLIGHTS (unaudited)
Winthrop Fixed Income Fund
Portfolio Changes for the Six Months Ended April 30, 1998
Major Purchases Major Sales
Federal Home Loan Bank(1) United States Treasury Notes(2)
7.440%, 08/10/01 7.500%, 10/31/99
Commercial Credit(1) United States Treasury Notes(2)
8.250%, 11/01/01 7.750%, 02/15/01
MCI Communications Corp.(1) United States Treasury Notes(2)
6.125%, 04/15/02 6.250%, 02/28/02
United States Treasury Notes(1) United States Treasury Notes(2)
6.250%, 08/31/02 7.250%, 08/15/04
Sears Roebuck Acceptance Corp.(1) Associates Corp. N.A.(2)
6.000%, 03/20/03 6.875%, 11/15/08
(1) New Holdings (2) Deletions
Portfolio Characteristics April 30, 1998*
30 Day Yield, Class A: 4.96% Average Years to Maturity: 6.3 years
30 Day Yield, Class B: 4.50% Average Coupon: 7.20%
Average Rating: AA Average Duration: 4.1 years
* Weighted Averages
Investment Results For the Periods Ended April 30, 1998
Average Annual Total Return
------------------------------
Winthrop Fixed
Income Fund Lehman Bros.
--------------- Gov't. Corp.
Without With Intermediate
Load Load Bond Index
-------- ----- -------------
Class A:
1 year ....................... 8.61% 3.45% 8.93%
5 years ...................... 5.31 4.29 6.10
10 years ..................... 8.00 7.48 8.22
Class B:
1 year ....................... 7.85 3.85 8.93
From inception 2/96 .......... 5.01 4.14 6.63
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. 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 applicable CDSC.
The Lehman Brothers Government/Corporate Intermediate Bond Index is
comprised of securities in the Lehman Brothers Government/Corporate Bond
Index that have maturities of 5-10 years. The Lehman Brothers
Government/Corporate Bond Index includes the Lehman Brothers Government
Bond Index and the Lehman Brothers Corporate Bond Index.
<PAGE>
FOCUS FUND HIGHLIGHTS (unaudited)
Winthrop Municipal Trust Fund
Portfolio Changes for the Six Months Ended April 30, 1998
<TABLE>
<S> <C>
Major Purchases Major Sales
Texas A&M University Revenue(1) Arlington County, Virginia(2)
5.250%, 05/15/01 5.250%, 08/01/98
Frederick County, Maryland(1) University of Texas, Permanent University Funding(2)
5.200%, 07/01/03 4.600%, 07/01/08
New York State Dormitory Authority Revenue(1) Missouri State Health & Education Facility(2)
5.000%, 07/01/06 5.100%, 05/15/09
Metropolitan Water District South(1) Denver, Colorado City & County Airport(2)
5.500%, 07/01/10 6.750%, 11/15/22 (prerefunded)
Fort Worth, Texas Higher Education(1)
5.000%, 03/15/11
(1) New Holdings (2) Deletions
</TABLE>
Portfolio Characteristics April 30, 1998*
30 Day Yield, Class A: 3.39% Average Years to Maturity: 7.9 years
30 Day Yield, Class B: 2.84% Average Coupon: 5.95%
Average Rating: AA Average Duration: 5.9 years
* Weighted Averages
Investment Results For the Periods Ended April 30, 1998
Average Annual Total Return
----------------------------
Winthrop Municipal
Trust Fund Lipper
----------------- Intermediate
Without With Municipal
Load Load Fund Index
-------- ----- ------------
Class A:
1 year 7.20% 2.11% 7.06%
From inception 7/93 4.67 3.61 5.09
Class B:
1 year 6.44 2.44 7.06
From inception 2/96 4.33 3.45 4.80
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. 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 applicable CDSC.
The Lipper Intermediate Municipal Fund Index is an equally weighted
performance index of the 30 largest funds in the Lipper Analytical grouping
of intermediate municipal debt funds, adjusted for capital gains and income
dividends.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
Winthrop Growth Fund
COMMON STOCKS--96.9%
BASIC MATERIALS--4.4% Shares Value
------ -----
Chemicals-1.8%
Praxair, Inc. ..................... 41,400 $2,082,938
----------
Industrial gases/special coatings
Metals & Mining-0.6%
Steel Dynamics, Inc.* ............. 29,000 663,375
----------
Manufacturer of steel
Paper Products-2.0%
Avery Dennison Corp. .............. 43,000 2,252,125
----------
Adhesives, labels, office products
4,998,438
----------
CAPITAL GOODS--9.0%
Aerospace & Defense-2.7%
General Dynamics Corp. ............ 37,000 1,563,250
Builds & designs nuclear
submarines
Raytheon Co.-Cl. B ................ 26,000 1,473,875
----------
Defense & commercial electronics:
construction
3,037,125
----------
Electrical Equipment-1.1%
Emerson Electric Co. .............. 20,400 1,297,950
----------
Manufacturer of electric/electronic
products
Environmental Control-0.4%
U.S.A. Waste Services, Inc.* ...... 10,105 495,777
----------
Nonhazardous solid waste management
Machinery-2.2%
Deere & Co. ....................... 42,900 2,506,969
----------
Largest manufacturer of farm
equipment: construction machinery
Building & Construction-2.6%
Tyco International Ltd. ........... 54,000 2,943,000
----------
Fire protection systems: cable: solar
10,280,821
----------
CONSUMER CYCLICAL--10.6%
Auto Related-1.9%
Federal-Mogul Corp. ............... 20,000 1,293,750
Manufacturer of bearings:
transmission products
Lear Seating Corp.* ............... 17,000 910,562
----------
Automobile and light truck seating
systems
2,204,312
----------
Leisure Related-3.3%
Disney (Walt) Co. ................. 25,300 3,145,106
Diversified international
entertainment company
Hasbro, Inc. ...................... 18,500 681,031
----------
Manufacturer of toys & games
3,826,137
----------
Printing & Publishing-1.0%
Hollinger International, Inc. ..... 70,000 1,085,000
----------
Newspaper publishing
Retail-General-4.4%
CVS Corp. ......................... 24,600 1,814,250
Retail: health stores, drugs
Dayton Hudson Corp. ............... 37,000 3,230,562
----------
Department stores
5,044,812
----------
12,160,261
----------
CONSUMER STAPLES--24.0% Shares Value
------ -----
Beverage & Tobacco-4.6%
PepsiCo, Inc. ..................... 55,000 $2,182,812
Provides soft drinks/food
services
Philip Morris Cos., Inc. .......... 37,500 1,399,219
Tobacco, brewing, soft drinks
Nabisco Holdings Corp. ............ 35,000 1,673,438
----------
Manufactures food products
5,255,469
----------
Drugs-8.0%
American Home Products Corp. ...... 20,000 1,862,500
Drugs, food, household/ware
Amgen, Inc. ....................... 39,000 2,325,375
Research/development of biotech
products & pharmaceuticals
Merck & Co., Inc. ................. 16,500 1,988,250
Human & animal pharmaceuticals
Schering-Plough Corp. ............. 38,000 3,044,750
----------
Pharmaceutical/consumer products
9,220,875
----------
Hospital Supplies & Services-3.4%
Baxter International, Inc. ........ 26,000 1,441,375
Manufacturer & distributor
hospital/lab products
Becton Dickinson & Co. ............ 24,000 1,671,000
Healthcare products
Columbia Healthcare Corp. ......... 25,000 823,438
----------
Healthcare facilities/services
3,935,813
----------
Retail-Food-3.9%
Safeway, Inc. ..................... 24,000 918,000
Food supermarket chain
Sara Lee Corp. .................... 28,000 1,667,750
Processed foods: consumer
products
Sysco Corp. ....................... 80,000 1,905,000
----------
Food distributor & service systems
4,490,750
----------
Soaps & Toiletries-4.1%
Colgate-Palmolive Co. ............. 10,200 914,812
Household and personal care
Proctor & Gamble Co. .............. 46,600 3,829,938
----------
Household, personal care, food
products
4,744,750
----------
27,647,657
----------
ENERGY--8.6%
Oil-Domestic-3.4%
Burlington Resources, Inc. ........ 25,000 1,175,000
Oil & gas exploration,
development
Texaco, Inc. ...................... 30,000 1,845,000
Explore, produce, transport,
refine and market crude oil,
natural gas, etc.
Tosco Corp. ....................... 24,000 855,000
----------
Refining & distribution of
Petroleum products
3,875,000
----------
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (continued)
- --------------------------------------------------------------------------------
Winthrop Growth Fund
Shares Value
------ -----
Oil-International-5.2%
EVI, Inc. ......................... 19,000 $1,011,750
Provider of oilfield services
Exxon Corp. ....................... 50,000 3,646,875
World's leading oil company
Unocal Corp. ...................... 32,000 1,310,000
----------
Oil & gas exploration, development
5,968,625
----------
9,843,625
----------
FINANCIAL--20.3%
Banking-9.8%
BankAmerica Corp. ................. 47,200 4,012,000
Diverse financial products
& services
Firstar Corp. ..................... 74,400 2,776,050
Commercial banking: WI, IL,
MN, AZ
U.S. Bancorp ...................... 18,000 2,286,000
Commercial banking: midwest
& northwest U.S.
Wells Fargo & Co. ................. 5,900 2,174,150
----------
Commercial banking: CA
11,248,200
----------
Financial Services-5.4%
Associates First Capital Corp. .... 10,000 747,500
Consumer/commercial finance
Freddie Mac ....................... 80,800 3,742,050
Provides residential mortgage
funds
Franklin Resources, Inc. .......... 33,000 1,765,500
----------
Mutual fund investment advisor
& servicing
6,255,050
----------
Insurance-5.1%
American International Group, Inc. 28,500 3,749,531
International processing
& related services
Hartford Financial Services Group 19,500 2,159,625
----------
Insurance provider
5,909,156
----------
23,412,406
----------
TECHNOLOGY--18.7%
Computers-1.5%
International Business Machines
Corp. 15,000 1,738,125
----------
Largest manufacturer of business
machines
Electronics-2.8%
First Data Corp. .................. 35,000 1,185,625
Information processing & related
services
Intel Corp. ....................... 18,000 1,454,625
Semiconductor processing chips
Molex, Inc. 21,875 626,172
----------
Terminals, connectors, switches
3,266,422
----------
Shares Value
------ -----
Office Equipment-8.4%
Cisco Systems, Inc. ............... 27,000 $1,977,750
Manufacturer of computer network
products
Microsoft Corp. ................... 40,000 3,605,000
Computer software
Peoplesoft, Inc. .................. 30,000 1,395,000
Manufacturer human resource
management software
Pitney-Bowes, Inc. ................ 56,000 2,688,000
----------
Postage and related mailing
equipment
9,665,750
----------
Telecommunications-6.0%
BellSouth Corp. ................... 31,400 2,015,487
Telephone service: south/south
central U.S.
Northern Telecom Ltd. ............. 23,000 1,400,125
Telecommunications equipment
WorldCom, Inc.* ................... 80,000 3,422,496
----------
Long distance telephone services
6,838,108
----------
21,508,405
----------
TRANSPORT & SERVICE--1.3%
Airlines-0.5%
AMR Corp. ......................... 4,000 609,500
----------
Holding co.: American Airlines
Railroads-0.8%
Burlington Northern Santa Fe ...... 9,000 891,000
----------
Railroad systems operations
in U.S.
1,500,500
----------
Total Common Stocks
(cost $66,149,457) .............. 111,352,113
-----------
Principal
Amount
---------
COMMERCIAL PAPER--2.9%
Ford Motor Credit Corp.
5.50%, 05/06/98 ................ ,340,000 1,338,976
5.51%, 05/07/98 ................1,000,000 999,082
General Electric Capital Corp.
5.50%, 05/04/98 ................ 520,000 519,762
5.52%, 05/05/98 ................ 460,000 459,718
----------
Total Commercial Paper
(amortized cost $3,317,538) .... 3,317,538
----------
TOTAL INVESTMENTS--99.8%
(cost $69,466,995) ............. 114,669,651
-----------
Cash and Other Assets
Net of Liabilities--0.2% ........ 173,569
----------
NET ASSETS--100.0% ................ $114,843,220
============
* Non-income producing
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
Winthrop Growth and Income Fund
COMMON STOCKS--93.9%
BASIC MATERIALS--7.1% Shares Value
------ -----
Chemicals-2.4%
Dupont (E.I.) de Nemours & Co. .... 39,600 $2,883,375
Large chemical co.: oil & gas
Hanna (M.A.) Co. .................. 85,000 1,949,688
----------
Specialty chemicals, polymers
4,833,063
----------
Oil & Gas-4.4%
Amoco Corp. ....................... 80,000 3,540,000
Integrated domestic oil
Cabot Corp. ....................... 10,000 359,375
Oil & gas drilling supplies
Enron Corp. ....................... 64,100 3,152,919
Major natural gas pipeline
system
San Juan Basin Royalty Trust ...... 185,000 1,480,000
Royalty gas interest in New
Mexico
Union Texas Petroleum Holdings,
Inc. 15,000 302,813
----------
Oil & gas exploration & production
8,835,107
----------
Steel-0.3%
Nucor Corp. ....................... 10,000 599,375
----------
Steel joists, angles, rounds
14,267,545
----------
CAPITAL GOODS/
CONSTRUCTION--6.9%
Aerospace & Defense-5.9%
General Dynamics Corp. ............ 61,200 2,585,700
Builds & designs nuclear
submarines
Raytheon Co. ...................... 80,900 4,464,669
Defense & commercial electronics:
construction
United Technologies Corp. ......... 49,000 4,823,438
----------
Aerospace, climate control systems
11,873,807
----------
Building & Construction-0.4%
Martin Marietta Materials, Inc. ... 10,000 469,375
Aggregates/building materials
RPM, Inc. Ohio .................... 18,750 323,437
----------
Protective coatings
792,812
----------
Industrial Equipment-0.6%
Unova, Inc. ....................... 54,000 1,255,500
----------
Design & integration of
manufacturing systems and
industrial machinery
13,922,119
----------
CONSUMER PRODUCTS
& SERVICES--30.3%
Beverages & Tobacco-4.6%
Diageo PLC Sponsored ADRs ......... 26,028 1,250,971
Manufactures food and beverage
products
Philip Morris Cos., Inc. .......... 90,000 3,358,125
Tobacco, brewing, soft drinks
RJR Nabisco Holdings Corp. ........ 90,000 2,503,125
Manufactures tobacco and food
products
Seagram Co. Ltd. .................. 15,000 640,312
Beverages, film & music
entertainment
Shares Value
------ -----
UST, Inc. ......................... 50,000 $1,378,125
----------
Snuff, tobacco, wine, spirits
9,130,658
----------
Containers-1.0%
Bemis, Inc. ....................... 44,000 1,958,000
----------
Packaging/adhesive products
Drugs-5.3%
Amgen, Inc. ....................... 22,000 1,311,750
Research/development of
biological products
Merck & Co., Inc. ................. 29,000 3,494,500
Human & animal pharmaceuticals
Pharmacia & Upjohn, Inc. .......... 48,900 2,056,856
International pharmaceutical &
biotechnological group of
companies
Schering-Plough Corp. ............. 45,900 3,677,738
----------
Pharmaceutical/consumer products
10,540,844
----------
Foods-2.5%
IBP, Inc. ......................... 30,000 618,750
Produces beef/pork products
Sysco Corp. ....................... 182,000 4,333,875
----------
Food distributor & service systems
4,952,625
----------
Hospital Supplies & Services-1.8%
Abbott Laboratories ............... 44,500 3,254,062
Diversified line of human
healthcare products & services
Sun Healthcare Group, Inc. ........ 25,000 418,750
----------
Operates long-term care facilities
3,672,812
----------
Household Furniture-1.1%
Leggett & Platt, Inc. ............. 44,000 2,285,250
----------
Manufacture springs, etc. for
furniture, bedding
Leisure-2.8%
Cedar Fair LP ..................... 111,400 2,952,100
Owns and operates amusement
parks
Disney (Walt) Co. ................. 20,739 2,579,413
----------
Diversified international
entertainment company
5,531,513
----------
Printing & Publishing-1.4%
New York Times Co. Cl. A .......... 40,000 2,837,500
----------
Publishes newspapers & magazines
Retail-Food & Drugs-1.9%
Walgreen Co. ...................... 109,600 3,781,200
----------
Major retail drug chain
Retail-General-3.2%
Federated Department Stores, Inc. 54,000 2,656,125
Operates department stores
in U.S.
Newell Co. ....................... 77,500 3,744,219
----------
Manufacturer of high volume
staple consumer products
6,400,344
----------
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (continued)
- --------------------------------------------------------------------------------
Winthrop Growth and Income Fund
Shares Value
------ -----
Soaps & Toiletries-4.7%
Gillette Co. ...................... 26,800 $3,093,725
Shaving, personal care products
International Flavors &
Fragrances, Inc. ................ 62,500 3,058,594
Develops & manufactures flavor &
fragrance products
Procter & Gamble Co. .............. 40,400 3,320,375
----------
Household, personal care, food
products
9,472,694
----------
60,563,440
----------
ENERGY--4.7%
Oil-Domestic-0.8%
Helmerich & Payne, Inc. ........... 49,000 1,494,500
----------
Contract driller: oil & gas
production
Oil-Supplies & Construction-3.9%
Halliburton Co. ................... 36,000 1,980,000
Oil well services: engineering &
construction
Union Pacific Resources Group ..... 101,500 2,423,313
Oil & gas exploration,
development, production
Western Atlas, Inc. ............... 44,000 3,476,000
----------
Oilfield information service/
automation systems
7,879,313
----------
9,373,813
----------
FINANCIAL SERVICES--22.0%
Banking-9.1%
BankAmerica Corp. ................. 43,600 3,706,000
Diverse financial products
& services
Household International, Inc. ..... 5,000 657,187
Finance & banking services
Republic NY Corp. ................. 26,100 3,490,875
Commercial banking: NY &
worldwide
U.S. Bancorp ...................... 55,532 7,052,564
Commercial banking: OR & WA
Wells Fargo & Co. ................. 9,000 3,316,500
----------
Commercial banking: CA
18,223,126
----------
Insurance-8.4%
Allmerica Financial Corp. ......... 38,136 2,388,267
Insurance and financial services
& products
American International Group, Inc. 44,100 5,801,906
International insurance holding
company
Amerin Corp.* ..................... 40,000 1,272,500
Mortgage insurance
Financial Security Assurance
Holding ......................... 30,000 1,796,250
Insure asset-backed securities
Hartford Financial Services Group 26,900 2,979,175
Insurance provider
HSB Group, Inc. ................... 20,000 1,320,000
Insurance/engineering services
Progressive Corp. ................. 10,100 1,367,919
----------
Insurance holding company
16,926,017
----------
Shares Value
------ -----
Other-4.5%
Block (H&R), Inc. ................. 55,000 $2,475,000
Tax, computer & personal services
Freddie Mac ....................... 140,000 6,483,750
----------
Provides residential mortgage
funds
8,958,750
----------
44,107,893
----------
PUBLIC UTILITIES--3.3%
Electric-1.0%
Ameren Corp. ...................... 38,110 1,510,109
Holding co.: Central IL Public
Service
Edison International .............. 20,000 596,250
----------
Holding co.: Southern CA Edison
2,106,359
----------
Gas-1.0%
Consolidated Natural Gas Co. ...... 15,000 862,500
Integrated natural gas systems
New Jersey Resources Corp. ........ 28,000 1,057,000
----------
Supplies gas in New Jersey
1,919,500
----------
Telephone-1.3%
GTE Corp. ......................... 45,000 2,629,687
----------
Telephone holding company;
manufacturing
6,655,546
----------
SCIENCE & TECHNOLOGY--11.2%
Computers-6.7%
Automatic Data Processing ......... 64,600 4,324,162
Computer services
Cisco Systems, Inc. ............... 30,000 2,197,500
Manufacture computer network
products
Cognizant Corp. ................... 77,400 3,981,262
Medical/technical industrial
information systems
First Data Corp. .................. 87,000 2,947,125
----------
Information processing & related
services
13,450,049
----------
Electronics-1.3%
Arrow Electronics, Inc.* .......... 47,000 1,283,687
Distributes electronic
components
Motorola, Inc. .................... 22,300 1,240,437
----------
Semiconductors: communications
equipment
2,524,124
----------
Telecommunications-3.2%
Comcast Corp.-Special Cl. A ....... 67,450 2,415,553
Cable TV/sound communications
systems
Cox Communication, Inc. Cl. A* .... 20,000 892,500
Cable TV/communications services
NTL, Inc.* ........................ 37,333 1,455,987
Telecommunications services
Vodaphone Group ADRs .............. 15,626 1,717,883
----------
British cellular operator
6,481,923
----------
22,456,096
----------
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (continued)
- --------------------------------------------------------------------------------
Winthrop Growth and Income Fund
TRANSPORT &
SERVICE--2.9% Shares Value
------ -----
Railroads-2.9%
Burlington Northern Santa Fe ...... 59,500 $5,890,500
----------
Railroad systems operations in
U.S.
MISCELLANEOUS--5.5%
Diversified-4.2%
Loews Corp. ....................... 35,000 3,502,188
Tobacco; hotel; insurance
subsidiary
Tyco International Ltd. ........... 89,200 4,861,400
----------
Fire protection systems: cable,
solar
8,363,588
----------
Limited Partnership-Timber-0.8%
Plum Creek Timber Co. LP .......... 50,000 1,600,000
----------
Lumber and wood products
Real Estate Investment Trust-0.5%
General Growth Properties ......... 30,000 1,076,250
----------
Real estate investment trust
11,039,838
----------
Total Common Stocks
(cost $109,017,752) ............. 188,276,790
-----------
CONVERTIBLE
PREFERRED STOCK--0.9%
(cost $1,108,393)
Airtouch Communications, Inc. Cl. B
Cv. Pfd. 6.000% ................. 40,728 1,807,305
----------
Wireless communications services
U.S. GOVERNMENT
AGENCIES--0.5%
(amortized cost $979,076)
Federal National Mortgage
Association 7.400%, 07/01/04 $1,000,000 1,076,480
----------
U.S. GOVERNMENT Principal
OBLIGATIONS--3.9% Amount Value
--------- -----
United States Treasury Strips
0.000%, 05/15/11 ............. ,425,000 $ 659,233
0.000%, 11/15/11 ............. 3,000,000 1,345,680
0.000%, 02/15/12 ............. 3,100,000 1,368,278
0.000%, 11/15/14 ............. 4,000,000 1,485,440
0.000%, 11/15/18 ............. 10,294,000 2,990,406
----------
Total U.S. Government Obligations
(amortized cost $6,821,997) 7,849,037
----------
COMMERCIAL PAPER--0.4%
Ford Motor Credit Corp.
5.500%, 05/06/98 ............. 140,000 139,893
5.510%, 05/07/98 ............. 480,000 479,559
General Electric Capital Corp.
5.500%, 05/04/98 ............. 210,000 209,904
----------
Total Commercial Paper
(amortized cost $829,356) .... 829,356
----------
TOTAL INVESTMENTS--99.6%
(cost $118,756,575) .......... 199,838,968
-----------
Cash and Other Assets
Net of Liabilities--0.4% ..... 744,186
----------
NET ASSETS--100.0% ............. $200,583,154
============
* Non-income producing
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
Winthrop Small Company Value Fund
COMMON STOCKS--99.5%
BASIC MATERIALS--6.3% Shares Value
------ -----
Chemicals-4.5%
Cambrex Corp. ..................... 75,000 $4,162,500
Producer of specialty chemicals
Hanna (M.A.) Co. .................. 267,900 6,144,956
Specialty chemicals, polymers
LeaRonol, Inc. .................... 168,400 4,799,400
----------
Electroplating process
15,106,856
----------
Paper-1.8%
Carauster Industries, Inc. ........ 59,400 2,034,450
Manufactures low-cost recycled
paperboard
Wausau-Mosinee Paper Corp. ........ 186,000 3,940,875
----------
Printing, writing, specialty
paper
5,975,325
----------
21,082,181
----------
CAPITAL GOODS/
CONSTRUCTION--23.3%
Aerospace-3.4%
Sunstrand Corp. ................... 60,000 4,143,750
Aerospace parts: power
transmissions
Teleflex, Inc. .................... 171,000 7,267,500
----------
Aerospace controls; medical
products
11,411,250
----------
Building & Construction-11.5%
Applied Industrial
Technology, Inc. ................ 128,475 3,260,053
Independent distributor of
industrial parts & products
Applied Power, Inc. Cl. A ......... 183,400 6,854,575
Manufactures hydraulic
industrial/construction
equipment materials
Carlisle Companies, Inc. .......... 152,100 7,719,075
Manufactures rubber, plastic,
metal products
CLARCOR, Inc. ..................... 109,575 2,458,589
Manufactures filtration/consumer
products
Lydall, Inc. ...................... 212,100 3,937,106
Engineered fiber materials
Osmonics, Inc.* ................... 174,900 2,634,431
Reverse osmosis/ultrafiltration
Regal Beloit Corp. ................ 121,000 3,720,750
Manufactures tools and power
transmissions
RPM, Inc. Ohio .................... 205,937 3,552,413
Manufactures tools and power
transmissions
Unova, Inc.* ...................... 208,600 4,849,950
----------
Design & integration of
manufacturing systems and
industrial machinery
38,986,942
----------
Shares Value
------ -----
Electrical Equipment-7.2%
AMETEK, Inc. ...................... 88,000 $2,678,500
Manufactures instruments/electric
motors
AptarGroup, Inc. .................. 84,300 5,268,750
Manufacturer of packaging
components: pumps, valves
Belden, Inc. ...................... 137,700 5,705,944
Manufacturer of electrical wire,
cable
Dallas Semiconductor Corp. ........ 98,000 3,779,125
Manufactures high-performance
circuits
Hadco Corp.* ...................... 85,500 3,270,375
Manufactures printed circuits
Woodhead Industries, Inc. ......... 197,800 3,708,750
----------
Electrical specialty products
24,411,444
----------
Environment Control-1.2%
Donaldson, Inc. ................... 166,800 4,232,550
----------
Engine air cleaners, mufflers
79,042,186
----------
CONSUMER CYCLICAL--25.0%
Apparel/Textile-3.7%
Interface, Inc. Cl. A ............. 81,300 3,450,169
Manufacturer of carpet/tile
Unifi, Inc. ....................... 135,500 5,191,344
Texturizing polyester yarns
Unitog Co. ........................ 152,500 3,774,375
----------
Rent/sell industrial uniforms
12,415,888
----------
Auto Related-5.6%
Amcast Industrial Corp. ........... 134,700 2,904,469
Technology-intensive metal
products
Donnelly Corp. Cl. A .............. 113,250 2,265,000
Manufactures auto glass products
Modine Manufacturing Co. .......... 147,300 5,477,719
Auto parts: heating,
air-conditioning
Myers Industries, Inc. ............ 192,924 4,798,984
Tire service/plastic products
Smith (A.O.) Corp. ................ 77,000 3,474,625
----------
Automotive products, electric
motors, piping systems
18,920,797
----------
Food Service/Lodging-3.8%
Marcus Corp. ...................... 207,975 3,678,558
Hotels, restaurants, theaters
Rare Hospitality
International, Inc.* ............ 62,300 809,900
Operates franchise restaurants
Sbarro, Inc. ...................... 111,800 3,298,100
Italian fast food restaurant
Universal Foods Corp. ............. 103,400 5,228,163
----------
Specialty products: yeast, cheese
13,014,721
----------
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (continued)
- --------------------------------------------------------------------------------
Winthrop Small Company Value Fund
Shares Value
------ -----
Household Furniture/
Appliances-4.2%
Chromcraft Revington, Inc.* ....... 110,800 $4,293,500
Designs/manufactures furniture
HON Industries, Inc. .............. 132,000 4,224,000
Manufacturer of office furniture/
home building products
La-Z-Boy, Inc. .................... 82,400 4,310,550
Manufacturer of reclining chairs
Rival Co. ......................... 82,000 1,317,125
----------
Small household appliances and
personal care products
14,145,175
----------
Leisure Related-1.4%
K2, Inc. .......................... 163,200 3,702,600
Snow skis, fish tackle, industrial
products
The Sports Authority, Inc.* ....... 66,000 1,159,125
----------
Sporting goods superstores
4,861,725
----------
Printing & Publishing-5.2%
American Business Products,
Inc. ............................ 111,600 2,580,750
Business forms and supplies
Banta Corp. ....................... 217,250 6,952,000
Printing/graphic/video services
Lee Enterprises, Inc. ............. 136,200 4,264,762
Newspaper publishing: radio, TV
Meredith Corp. .................... 88,000 3,784,000
----------
Publishing, broadcasting, real estate
& cable TV
17,581,512
----------
Retail-General-1.1%
Department 56, Inc. ............... 100,800 3,622,500
----------
Distributor of collectibles & gifts
84,562,318
----------
CONSUMER STAPLES--9.4%
Drugs-1.4%
Scherer (R.P.) Corp.* ............. 38,300 2,795,900
Manufacturer of drug delivery
systems
West Co., Inc. .................... 64,100 1,979,088
----------
Pharmaceutical packaging
4,774,988
----------
Foods-1.0%
Flowers Industries, Inc. .......... 164,325 3,512,447
----------
Baked, convenience, snack food
Hospital Supplies & Services-5.5%
ATL Ultrasound, Inc. .............. 30,000 1,451,250
Medical ultrasound systems
Bard (C.R.), Inc. ................. 93,000 3,330,562
Hospital, surgical specialties
Beckman Instruments, Inc. ......... 87,600 4,878,225
Manufactures laboratory instruments
Morrison Health Care, Inc. ........ 10,100 207,050
Health care, food/nutrition
services
Quorum Health Group, Inc. ......... 127,500 4,095,938
Owns, operates acute care
hospitals
Shares Value
------ -----
Sierra Health Services* ........... 90,600 $3,482,438
Healthcare provider
Sonosight, Inc.* .................. 10,000 81,875
Develops ultrasound equipment
SpaceLabs Medical, Inc.* .......... 59,400 1,061,775
----------
Manufactures patient monitoring
products
18,589,113
----------
Retail-Food & Drugs-1.5%
Hannaford Brothers Co. ............ 74,600 3,315,037
Distributor: food/supermarkets
Luby's Cafeterias, Inc. ........... 95,300 1,828,569
----------
Cafeteria style restaurants
5,143,606
----------
32,020,154
----------
ENERGY--4.2%
Oil-Domestic-2.5%
Helmerich & Payne ................. 149,900 4,571,950
Contract driller: oil & gas
production
KN Energy, Inc. ................... 67,600 3,967,275
----------
Natural gas, mineral resources
8,539,225
----------
Oil-Supplies & Construction-1.7%
BJ Services Co. ................... 90,000 3,375,000
Oil & gas well pressure pumping
service
Tidewater, Inc. ................... 59,100 2,341,838
----------
Offshore service vessels
5,716,838
----------
14,256,063
----------
FINANCIAL--15.6%
Banks-4.6%
The Colonial BancGroup, Inc. ...... 55,000 1,973,125
Commercial banking: AL
First American Corp. of Tennessee 84,700 4,176,769
Commercial banking: TN
FirstMerit Corp. .................. 220,000 6,242,500
Commercial banking: OH
First Virginia Banks, Inc. ........ 57,300 3,201,637
----------
Commercial banking: VA
15,594,031
----------
Insurance-11.0%
Berkley (W.R.) Corp. .............. 35,000 1,631,875
Regional insurance companies
Executive Risk, Inc. .............. 38,000 2,534,125
Underwrites liability insurance
HSB Group, Inc. ................... 83,300 5,497,800
Insurance/engineering
Horace Mann Educators Corp. ....... 73,000 2,509,375
Insurance holding: property,
casualty, life
NAC Re Corp. ...................... 85,300 4,265,000
Holding co.: reinsurance
Old Republic International Corp. 105,200 4,760,300
Insurance: life, disability,
property, casualty
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (continued)
- --------------------------------------------------------------------------------
Winthrop Small Company Value Fund
Shares Value
------ -----
Poe & Brown, Inc. ................. 110,400 $4,347,000
General insurance agency
Protective Life Corp. ............. 142,200 5,279,175
Financial service provider
ReliaStar Financial Corp. ......... 90,000 4,106,250
Insurance/financial services
Vesta Insurance Group, Inc. ....... 40,000 2,265,000
----------
Property & casualty insurance
37,195,900
----------
52,789,931
----------
PUBLIC UTILITIES--2.3%
Gas-2.3%
National Fuel Gas Co. ............. 81,000 3,726,000
Natural gas utility holding
company
WICOR, Inc. ....................... 85,450 4,096,259
----------
Utility holding: Wisconsin gas
7,822,259
----------
TECHNOLOGY--5.5%
Electronics-3.8%
Black Box Corp.* .................. 30,000 997,500
Market/provide technical service
for communications/networking
equipment & systems
Mark IV Industries, Inc. .......... 170,250 3,585,891
Power transfer equipment/audio
transfer equipment
Methode Electronics, Inc. Cl. A ... 251,650 4,026,400
Electronic component devices
Pioneer Standard Electronics, Inc. 350,450 4,402,528
----------
Distributor: electronic components
13,012,319
----------
Office Equipment-1.7%
Hunt Manufacturing Corp. .......... 158,500 3,922,875
Manufactures & distributes
office and art products
Miller (Herman), Inc. ............. 55,000 1,660,312
----------
Manufacturer of office furniture
5,583,187
----------
18,595,506
----------
TRANSPORT & SERVICE--3.6%
Professional Services-2.1%
CDI Corp.* ........................ 78,000 3,017,625
Engineering & technical services
Jacobs Engineering Group, Inc.* ... 121,650 4,060,069
----------
Temporary help services
7,077,694
----------
Shares Value
------ -----
Trucking & Shipping-1.5%
Werner Enterprises, Inc. .......... 207,000 $4,993,875
----------
Motor carrier: general freight
12,071,569
----------
MISCELLANEOUS--4.3%
Diversified-3.3%
Brady (W.H.) Cl. A ................ 107,700 3,284,850
Manufactures adhesives & coatings
Federal Signal Corp. .............. 80,000 1,715,000
Special trucks, tools, signals
Precision Castparts Corp. ......... 35,000 2,174,375
Castings for aircraft engines
Ruddick Corp. ..................... 220,700 3,958,806
----------
Food supermarkets; thread/yarn
11,133,031
----------
Real Estate Investment Trust-1.0%
Merry Land & Investment Co., Inc. 167,000 3,517,437
----------
Acquisition, development &
operation of income producing
properties
14,650,468
----------
Total Common Stocks
(cost $224,675,246) 336,892,635
-----------
COMMERCIAL PAPER--0.2%
Principal
Amount
---------
Ford Motor Credit Corp.
5.50%, 05/06/98 ............... $ 625,000 624,523
5.51%, 05/07/98 ............... 160,000 159,853
----------
Total Commercial Paper
(amortized cost $784,376) ..... 784,376
----------
TOTAL INVESTMENTS--99.7%
(cost $225,459,622) ........... 337,677,011
-----------
Cash and Other Assets
Net of Liabilities--0.3% ...... 1,032,922
----------
NET ASSETS--100.0% .............. $338,709,933
============
* Non-income producing
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (unaudited)
- -------------------------------------------------------------------------
Winthrop Fixed Income Fund
Principal
Amount Value
----------- --------
U.S. GOVERNMENT
OBLIGATIONS--40.0%
United States Treasury Bonds
9.375%, 02/15/06..................... $1,500,000 $1,836,255
7.250%, 05/15/16..................... 2,000,000 2,273,140
United States Treasury Notes
7.750%, 01/31/00..................... 2,000,000 2,071,140
5.375%, 02/15/01..................... 1,500,000 1,491,240
8.000%, 05/15/01..................... 1,400,000 1,492,246
7.500%, 11/15/01..................... 2,700,000 2,858,976
6.250%, 08/31/02..................... 4,400,000 4,496,404
5.750%, 04/30/03..................... 5,700,000 5,726,904
---------
Total U.S. Government Obligations
(cost $21,997,204)..................... 22,246,305
----------
U.S. GOVERNMENT
AGENCIES--29.9%
Federal Home Loan Bank
7.440%, 08/10/01..................... 2,300,000 2,410,032
7.360%, 07/01/04..................... 3,385,000 3,636,979
Federal Home Loan Mortgage Corp.
Pool #90350 7.000%, 07/01/99......... 764,010 775,231
Pool #220016 8.750%, 10/01/01........ 3,854 3,957
6.875%, 11/22/06..................... 500,000 510,120
Pool #260499 10.000%, 04/01/16....... 35,356 38,493
Pool #292065 8.500%, 04/01/17........ 1,546,632 1,628,797
Pool #606523 7.721%, 10/01/19........ 776,776 802,021
Federal National Mortgage Assn.
8.550%, 08/30/99..................... 400,000 414,200
Pool #312088 7.000%, 06/01/02........ 1,860,122 1,886,861
Pool #76368 9.250%, 09/01/03......... 68,709 72,144
Pool #76378 9.250%, 09/01/03......... 174,473 183,197
8.250%, 10/12/04..................... 600,000 620,346
8.400%, 10/25/04..................... 650,000 674,050
6.950%, 11/13/06..................... 1,000,000 1,022,800
Pool #270674 9.000%, 09/01/17........ 542,526 574,061
Pool #224635 9.000%, 09/01/20........ 190,982 202,083
Pool #124211 7.410%, 12/01/21........ 870,186 890,309
Government National Mortgage Assn.
Pool #93401 9.500%, 01/15/10......... 245,514 264,694
Pool #296254 9.500%, 09/15/20........ 10,355 11,222
----------
Total U.S. Government Agencies
(cost $16,418,236)................... 16,621,597
----------
Principal
Amount Value
----------- --------
CORPORATE
BONDS--28.3%
Foreign-2.3%
Santander Financial Issuances
7.250%, 05/30/06..................... $1,250,000 $ 1,301,562
----------
Consumer Products & Services-2.8%
Anheuser Busch Cos.
7.000%, 09/01/05..................... 1,000,000 1,028,750
Coca-Cola Enterprises
7.000%, 10/01/26..................... 500,000 531,875
----------
1,560,625
----------
Financial-9.9%
Commercial Credit
8.250%, 11/01/01..................... 2,000,000 2,137,500
Sears Credit Account Master Trust
Series
1995-2 8.100%, 06/15/04.............. 1,500,000 1,555,064
Sears Roebuck Acceptance Corp.
6.000%, 03/20/03..................... 1,850,000 1,831,500
----------
5,524,064
----------
Industrial-2.9%
Dupont (E.I.) de Nemours & Co.
8.500%, 02/15/03..................... 1,500,000 1,591,875
----------
Public Utilities-8.6%
MCI Communications Corp.
6.125%, 04/15/02..................... 1,000,000 996,250
Oklahoma Gas & Electric
6.500%, 07/15/17..................... 3,000,000 3,086,250
Union Oil of California
8.900%, 06/12/98..................... 700,000 701,834
----------
4,784,334
----------
Technology-1.8%
Xerox Corp.
6.250%, 11/15/26..................... 1,000,000 1,016,250
----------
Total Corporate Bonds
(cost $15,459,600)................... 15,778,710
----------
TOTAL INVESTMENTS--98.2%
(cost $53,875,040)................... 54,646,612
----------
Cash and Other Assets
Net of Liabilities--1.8%............. 998,699
----------
ASSETS--100.0%........................ $55,645,311
----------
----------
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Investments April 30, 1998 (unaudited)
- -------------------------------------------------------------------------
Winthrop Municipal Trust Fund
Principal
Amount Value
----------- --------
MUNICIPAL
BONDS--101.6%
Arizona-5.9%
Chandler, Arizona Street & Highway
Revenue
6.900%, 07/01/14..................... $1,000,000 $1,138,750
Phoenix, Arizona Civic Improvement Corp.
6.130%, 07/01/14..................... 1,000,000 1,092,500
----------
2,231,250
----------
California-6.4%
California State
6.500%, 09/01/10..................... 1,000,000 1,161,250
Metropolitan Water District South
5.500%, 07/01/10..................... 1,200,000 1,275,000
----------
2,436,250
----------
Colorado-4.5%
Denver, Colorado City &
County Airport
6.750%, 11/15/22..................... 1,580,000 1,704,425
----------
Florida-3.5%
Lakeland, Florida Electric & Water Revenue
5.900%, 10/01/08..................... 1,200,000 1,317,000
----------
Illinois-12.1%
Chicago, Illinois Metropolitan Water
Reclamation District
5.750%, 12/01/01..................... 1,000,000 1,053,750
Chicago, Illinois Metropolitan Water
Reclamation District
7.000%, 01/01/11..................... 1,000,000 1,192,500
Chicago, Illinois O'Hare International
Airport
5.500%, 01/01/08..................... 1,000,000 1,051,250
Cook County, Illinois Ser. B
5.750%, 11/15/04..................... 1,215,000 1,301,569
----------
4,599,069
----------
Indiana-2.9%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05..................... 1,000,000 1,115,000
----------
Iowa-2.8%
Iowa Student Loan Liquidation Corp.
6.800%, 03/01/05..................... 1,000,000 1,080,000
----------
Maryland-5.4%
Frederick County, Maryland
5.200%, 07/01/03..................... 1,000,000 1,038,750
Maryland State & Local Facilities
5.000%, 08/01/08..................... 1,000,000 1,031,250
----------
2,070,000
----------
Massachusetts-5.6%
Massachusetts State
Refunding Ser. B
5.500%, 11/01/07..................... 1,000,000 1,062,500
Massachusetts State Water
Resources Ser. B
5.700%, 11/01/02..................... 1,000,000 1,058,750
----------
2,121,250
----------
Mississippi-2.7%
Mississippi State Ser. E
5.300%, 09/01/08..................... 1,000,000 1,040,000
----------
Principal
Amount Value
----------- --------
New York-8.4%
New York City, New York Ser. G
5.750%, 02/01/08..................... $1,000,000 $1,052,500
New York State Dormitory Authority
Revenue
6.500%, 05/15/06..................... 1,000,000 1,117,500
New York State Dormitory Authority
Revenue
5.000%, 07/01/06..................... 1,000,000 1,025,000
----------
3,195,000
----------
Ohio-2.8%
Ohio State Water Development
Authority Revenue
5.750%, 06/01/04..................... 1,000,000 1,066,250
----------
Oklahoma-4.5%
Grand River Dam Authority, Oklahoma
6.250%, 06/01/11..................... 1,500,000 1,702,500
----------
Puerto Rico-5.6%
Puerto Rico Commonwealth Refunding
5.100%, 07/01/02..................... 1,000,000 1,030,000
Puerto Rico Electric Power Authority
Revenue
6.000%, 07/01/11..................... 1,000,000 1,115,000
----------
2,145,000
----------
Tennessee-2.9%
Memphis, Tennessee Electric System
6.000%, 01/01/05..................... 1,000,000 1,087,500
----------
Texas-20.1%
Fort Worth, Texas Higher Education
5.000%, 03/15/11..................... 1,000,000 1,002,500
Gulf Coast Waste Disposal Authority,
Texas
4.35%, 06/01/24..................... 800,000 800,000
Lewisville, Texas Independent School
District
6.000%, 08/15/01..................... 1,000,000 1,053,750
Port Authority of Houston, Texas
5.380%, 10/01/05..................... 1,275,000 1,345,125
San Antonio, Texas Electric & Gas
5.000%, 02/01/12..................... 1,000,000 1,006,250
Texas A & M University
5.250%, 05/15/01..................... 1,300,000 1,329,250
Texas State Refunding Ser. A
6.000%, 10/01/08..................... 1,000,000 1,107,500
----------
7,644,375
----------
Washington-5.5%
Washington State Public Power Supply
7.100%, 07/01/00..................... 1,000,000 1,058,750
Washington State Public Power Supply
5.500%, 07/01/10..................... 1,000,000 1,041,250
----------
2,100,000
----------
TOTAL INVESTMENTS--101.6%
(cost $37,660,253)................... 38,654,869
----------
Liabilities Net of Cash
and Other Assets--(1.6%)............. (608,641)
----------
NET ASSETS--100.0%..................... $38,046,228
-----------
-----------
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Winthrop Focus Funds--Statement of Assets and Liabilities April 30, 1998 (unaudited)
- ------------------------------------------------------------------------------------
Small Fixed
Growth Growth and Company Income Municipal
Fund Income Fund Value Fund Fund Trust Fund
------------ ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Investments in securities, at value
(cost $69,466,995, $118,756,575,
$225,459,622, $53,875,040, and
$37,660,253, respectively)........... $114,669,651 $199,838,968 $337,677,011 $54,646,612 $38,654,869
Cash.................................. 22,555 3,815 100,923 -- --
Receivable for investment
securities sold...................... -- -- 1,081,884 7,385,574 --
Receivable for capital stock sold..... 272,935 884,675 477,988 80,521 303,300
Dividends and interest receivable..... 86,234 199,988 192,050 864,293 613,472
Reimbursement due from advisor........ -- -- -- 109,910 51,894
Deferred organization costs (Note A).. -- -- -- -- 5,160
------------ ------------ ------------ ----------- -----------
Total assets 115,051,375 200,927,446 339,529,856 63,086,910 39,628,695
------------ ------------ ------------ ----------- -----------
Liabilities:
Payable to investment advisor........ 67,832 97,975 205,083 -- --
Payable to distributor............... 37,389 66,569 98,732 16,173 10,053
Payable for investment securities
purchased........................... -- -- 106,377 7,221,063 1,336,855
Payable for capital stock redeemed... 17,080 16,544 233,651 89,689 156,573
Dividend payable..................... -- -- -- 51,095 22,297
Accrued expenses and other
liabilities......................... 85,854 163,204 176,080 63,579 56,689
------------ ------------ ------------ ----------- -----------
Total liabilities................. 208,155 344,292 819,923 7,441,599 1,582,467
------------ ------------ ------------ ----------- -----------
Net Assets................................ $114,843,220 $200,583,154 $338,709,933 $55,645,311 $38,046,228
============ ============ ============ =========== ===========
Net Assets Consist of:
Capital paid-in...................... $66,775,335 $114,506,884 $225,241,540 $54,912,322 $37,261,805
Undistributed (distributions in
excess of) net investment income.... (47,430) 406,032 458,067 -- --
Accumulated net realized gain
(loss) on investments............... 2,912,659 4,587,845 792,937 (38,583) (210,193)
Net unrealized appreciation
on investments...................... 45,202,656 81,082,393 112,217,389 771,572 994,616
------------ ------------ ------------ ----------- -----------
$114,843,220 $200,583,154 $338,709,933 $55,645,311 $38,046,228
============ ============ ============ =========== ===========
Class A Shares:
Net assets........................... $ 98,819,521 $170,116,108 $311,805,978 $51,568,112 $37,007,436
============ ============ ============ =========== ===========
Shares outstanding................... 5,917,651 7,413,494 12,789,339 5,065,096 3,601,842
============ ============ ============ =========== ===========
Net asset value and redemption
value per share..................... $16.70 $22.95 $24.38 $10.18 $10.27
====== ====== ====== ====== ======
Maximum offering price per share
(net asset value plus sales charge of
4.75% of offering price)............ $17.53 $24.09 $25.60 $10.69 $10.78
====== ====== ====== ====== ======
Class B Shares:
Net assets........................... $ 16,023,699 $ 30,467,046 $ 26,903,955 $ 4,077,199 $ 1,038,792
============ ============ ============ =========== ===========
Shares outstanding................... 971,998 1,330,282 1,115,421 400,435 101,117
============ ============ ============ =========== ===========
Net asset value and offering price
per share........................... $16.49 $22.90 $24.12 $10.18 $10.27
====== ====== ====== ====== ======
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Winthrop Focus Funds--Statement of Operations for the period ended April 30, 1998 (unaudited)
- ---------------------------------------------------------------------------------------------
Small Fixed
Growth Growth and Company Income Municipal
Fund Income Fund Value Fund Fund Trust Fund
---------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends................................ $ 611,994 $1,635,799 $1,980,161 $ -- $ --
Interest................................. 73,541 335,852 547,751 1,784,641 904,600
---------- ---------- ---------- ---------- ----------
Total investment income.............. 685,535 1,971,651 2,527,912 1,784,641 904,600
---------- ---------- ---------- ---------- ----------
Expenses:
Investment advisory fees (Note B)........ 379,940 550,918 1,167,758 175,629 115,354
Distribution fees--Class A (Note B)...... 135,276 238,360 438,229 78,630 54,271
Distribution fees--Class B (Note B)...... 64,580 121,344 110,117 18,908 3,661
Transfer agent fees...................... 53,600 69,500 120,700 29,500 26,130
Custodian fees........................... 40,900 55,000 85,700 34,500 25,700
Legal fees............................... 5,000 13,000 15,500 4,000 2,500
Auditing fees............................ 5,000 11,500 26,000 3,500 3,500
Printing fees............................ 11,000 25,000 40,500 6,000 3,000
Trustees' fees........................... 4,500 10,000 14,500 3,500 2,500
Registration fees........................ 18,000 36,000 46,000 16,000 15,000
Miscellaneous............................ 6,360 15,300 28,650 3,687 3,208
Amortization of organization costs
(Note A)................................ -- -- -- -- 10,505
---------- ---------- ---------- ---------- ----------
Total expenses........................ 724,156 1,145,922 2,093,654 373,854 265,329
Less expenses reimbursed by
investment advisor (Note B).......... -- -- -- (79,612) (78,201)
---------- ---------- ---------- ---------- ----------
Net expenses.......................... 724,156 1,145,922 2,093,654 294,242 187,128
---------- ---------- ---------- ---------- ----------
Net Investment Income (Loss).................. (38,621) 825,729 434,258 1,490,399 717,472
---------- ---------- ---------- ---------- ----------
Realized and Unrealized Gain on
Investments--Note C:
Net realized gain on investments......... 2,914,055 4,610,651 16,050,779 624,884 236,863
Net change in unrealized appreciation
on investments.......................... 17,355,258 26,584,177 16,359,288 (523,054) (304,337)
---------- ---------- ---------- ---------- ----------
Net realized and unrealized gain (loss)
on investments.......................... 20,269,313 31,194,828 32,410,067 101,830 (67,474)
---------- ---------- ---------- ---------- ----------
Increase in Net Assets from Operations........ $20,230,692 $32,020,557 $32,844,325 $ 1,592,229 $ 649,998
========== ========== ========== ========== ==========
</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 04/30/98+ 10/31/97 Ended 04/30/98+ 10/31/97
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income (loss)................. $ (38,621) $ 133,527 $ 825,729 $ 1,575,782
Net realized gain on investments............. 2,914,055 5,220,436 4,610,651 6,767,295
Net change in unrealized appreciation on
investments................................ 17,355,258 13,577,222 26,584,177 28,947,100
------------ ------------ ------------ ------------
Increase in net assets from operations....... 20,230,692 18,931,185 32,020,557 37,290,177
------------ ------------ ------------ ------------
Dividends and Distributions to Shareholders from:
Investment income:
Class A..................................... (101,689) (280,254) (674,596) (1,549,544)
Class B..................................... -- (10,276) (27,525) (43,477)
Realized gains on investments:
Class A..................................... (4,620,622) (6,295,539) (5,671,791) (11,011,422)
Class B..................................... (589,148) (298,769) (780,788) (683,252)
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders............................... (5,311,459) (6,884,838) (7,154,700) (13,287,695)
------------ ------------ ------------ ------------
Capital Stock Transactions--(Net) Note D ,619,616 9,985,223 10,466,836 20,899,863
------------ ------------ ------------ ------------
Total increase in net assets................. 21,538,849 22,031,570 35,332,693 44,902,345
Net Assets:
Beginning of year............................ 93,304,371 71,272,801 165,250,461 120,348,116
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $92,880 for the Growth
Fund at 10/31/97, and $406,032 and $282,424
for the Growth and Income Fund at 04/30/98
and 10/31/97, respectively)................. $114,843,220 $ 93,304,371 $200,583,154 $165,250,461
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Small Company Value Fund Fixed Income Fund
---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended
Ended 04/30/98+ 10/31/97 Ended 04/30/98+ 10/31/97
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Operations:
Net investment income........................ $ 434,258 $ 890,373 $ 1,490,399 $ 3,245,250
Net realized gain on investments............. 16,050,779 16,196,036 624,884 314,714
Net change in unrealized appreciation
on investments.............................. 16,359,288 55,151,733 (523,054) 168,816
------------ ------------ ------------ ------------
Increase in net assets from operations....... 32,844,325 72,238,142 1,592,229 3,728,780
------------ ------------ ------------ ------------
Dividends and Distributions to Shareholders from:
Investment income:
Class A..................................... (808,971) (1,023,009) (1,402,892) (3,122,839)
Class B..................................... -- (22,095) (87,507) (122,411)
Realized gains on investments:
Class A..................................... (15,177,402) (8,883,595) -- --
Class B..................................... (1,010,450) (251,999) -- --
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders............................... (16,996,823) (10,180,698) (1,490,399) (3,245,250)
------------ ------------ ------------ ------------
Capital Stock Transactions--(Net) Note D 21,466,673 5,317,133 (2,586,451) (370,950)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets...... 37,314,175 67,374,577 (2,484,621) 112,580
Net Assets:
Beginning of year............................ 301,395,758 234,021,181 58,129,932 58,017,352
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $458,067 and $832,780
for the Small Company Value Fund at 04/30/98
and 10/31/97, respectively)................. $338,709,933 $301,395,758 $ 55,645,311 $ 58,129,932
============ ============ ============ ============
+ Unaudited.
</TABLE>
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Statement of Changes in Net Assets (continued)
- --------------------------------------------------------------------
<TABLE>
<CAPTION>
Municipal Trust Fund
----------------------------
Six Months Year Ended
Ended 04/30/98+ 10/31/97
-------------- -----------
<S> <C> <C>
Operations:
Net investment income........................... $ 717,472 $ 1,642,523
Net realized gain on investments................ 236,863 279,215
Net change in unrealized appreciation
on investments................................. (304,337) 746,848
----------- -----------
Increase in net assets from operations.......... 649,998 2,668,586
----------- -----------
Dividends and Distributions to Shareholders from:
Investment income:
Class A........................................ (705,890) (1,623,296)
Class B........................................ (11,582) (19,227)
----------- -----------
Total dividends and distributions to shareholders (717,472) (1,642,523)
----------- -----------
Capital Stock Transactions--(Net) Note D 1,689,768 (3,884,712)
----------- -----------
Total increase (decrease) in net assets......... 1,622,294 (2,858,649)
Net Assets:
Beginning of year............................... 36,423,934 39,282,583
----------- ----------
End of period................................... $38,046,228 $36,423,934
=========== ==========
</TABLE>
+ Unaudited.
See notes to financial statements.
<PAGE>
Winthrop Focus Funds--Notes to Financial Statements April 30, 1998 (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 investment objective of the Winthrop Growth Fund and the Winthrop Growth
and Income Fund is long-term capital appreciation. The Winthrop Growth and
Income Fund also seeks continuity of income. The investment objective of the
Winthrop Small Company Value Fund is a high level of growth of capital. The
Winthrop Fixed Income Fund aims to provide as high a level of total return as
is consistent with capital preservation by investing principally in debt
securities, including, without limitation, convertible and nonconvertible debt
securities of foreign and domestic companies, including both well-known and
established and new and lesser-known companies. The Winthrop Municipal Trust
Fund's investment objective is to provide as high a level of total return as
is consistent with capital preservation by investing principally in high grade
tax-exempt municipal securities.
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, a
holding company controlled by AXA-UAP ("AXA"), a member of a large French
insurance group. AXA is indirectly controlled by a group of four French
insurance companies.
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. 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.
<PAGE>
Winthrop Focus Funds--Notes to Financial Statements April 30, 1998 (continued)
- ------------------------------------------------------------------------------
(2) Repurchase Agreements: The Funds may enter into repurchase agreements
with financial institutions, deemed to be credit worthy by the Funds'
Advisor, subject to the seller's agreement to repurchase and the Funds'
agreement to resell such securities at a mutually agreed-upon price.
Securities purchased subject to repurchase agreements are deposited with
the Funds' custodian and, pursuant to the terms of the repurchase
agreement, must have an aggregate market value greater than or equal to the
repurchase price plus accrued interest at all times. If the value of the
underlying securities falls below the value of the repurchase price plus
accrued interest, the Funds will require the seller to deposit additional
collateral by the next business day. If the request for additional
collateral is not met, or the seller defaults on its repurchase obligation,
the Funds maintain the right to sell the underlying securities at market
value and may claim any resulting loss against the seller.
(3) Federal Income Taxes: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and
to distribute substantially all of their net taxable income. Accordingly,
no provisions for federal income taxes have been made in the accompanying
financial statements. The Fixed Income Fund has an unused capital loss
carryover of approximately $556,000 available for federal income tax
purposes to be applied against future net securities profits, if any,
realized subsequent to October 31, 1997. If not applied, the carryover
expires in fiscal 2004. The Municipal Trust Fund has an unused capital loss
carryover of approximately $447,000 available for federal income tax
purposes to be applied against future net securities profits, if any,
realized subsequent to October 31, 1997. If not applied, the carryover
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.
<PAGE>
Winthrop Focus Funds--Notes to Financial Statements April 30, 1998 (continued)
- ------------------------------------------------------------------------------
For the six months ended April 30, 1998, 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 and Municipal Trust Fund. For the period May 1, 1998 through
October 31, 1998, the Advisor has agreed, with respect to both Funds, to
continue 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 each Fund's Class A shares and 1.70% of the average daily net
assets of each Fund's Class B shares. After October 31, 1998, the Advisor may,
in its sole discretion, determine to discontinue this practice with respect to
both or either of such Funds. As a result of the voluntary assumption of
expenses, the Advisor reimbursed the Fixed Income Fund and Municipal Trust
Fund $79,612 and $78,201, respectively, during the six months ended April 30,
1998.
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 .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, 1998, was substantially the same as the cost of
securities for financial statement purposes. At April 30, 1998, the components
of the net unrealized appreciation (depreciation) on investments were as
follows:
<TABLE>
<CAPTION>
Growth Growth and Income Small CompanyFixed 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)......... $45,299,499 $ 82,498,334 $ 114,943,509 $ 795,991 $ 1,042,289
Gross depreciation (investments having
an excess of cost over value)........ (96,843) (1,415,941) (2,726,120) (24,419) (47,673)
---------- ---------- ----------- ---------- -----------
Net unrealized appreciation of
investments........................... $45,202,656 $ 81,082,393 $ 112,217,389 $ 771,572 $ 994,616
========== =========== =========== ========== ===========
</TABLE>
For the period ended April 30, 1998, total aggregate purchases and sales
of portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
Growth Growth and Income Small CompanyFixed Income Municipal Trust
Fund Fund Value Fund Fund Fund
---------- --------------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
Purchases $13,968,238 $21,571,544 $56,573,393 $33,743,388 $7,137,921
Sales 13,112,237 16,122,374 30,043,536 34,483,596 4,109,861
</TABLE>
<PAGE>
Winthrop Focus Funds--Notes to Financial Statements April 30, 1998 (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, 1998 Year Ended October 31, April 30, 1998 Year Ended October 31,
(unaudited) 1997 (unaudited) 1997
------------------- ------------------- ------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Class A
Shares sold................ 206,784 $3,173,650 437,629 $5,865,281 363,173 $7,869,641 893,473 $16,234,868
Shares issued through
reinvestment of dividends
and distributions........ 302,097 4,107,992 473,727 5,681,333 274,016 5,399,625 645,324 10,634,266
-------- ---------- -------- ---------- -------- ---------- -------- ----------
508,881 7,281,642 911,356 11,546,614 637,189 13,269,266 1,538,797 26,869,134
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Shares redeemed............ (286,283) (4,413,937) (582,439) (7,873,990) (471,137)(10,335,693) (915,088) (16,802,597)
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Net increase............... 222,598 $2,867,705 328,917 $3,672,624 166,052 $ 2,933,573 623,709 $10,066,537
======== ========== ======== ========== ======== ========== ======== ==========
Class B
Shares sold................ 229,948 $3,504,328 474,191 $6,445,214 356,459 $7,754,099 614,345 $11,255,686
Shares issued through
reinvestment of dividends
and distributions........ 43,383 583,063 25,191 300,539 40,111 783,084 42,360 694,854
-------- ---------- -------- ---------- -------- ---------- -------- ----------
273,331 4,087,391 499,382 6,745,753 396,570 8,537,183 656,705 11,950,540
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Shares redeemed............ (21,338) (335,480) (30,834) (433,154) (46,636) (1,003,920) (58,047) (1,117,214)
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Net increase............... 251,993 $ 3,751,911 468,548 $ 6,312,599 349,934 $ 7,533,263 598,658 $10,833,326
======== ========== ======== ========== ======== ========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
SMALL COMPANY VALUE FUND FIXED INCOME FUND
--------------------------------------- ---------------------------------------
Period Ended Period Ended
April 30, 1998 Year Ended October 31, April 30, 1998 Year Ended October 31,
(unaudited) 1997 (unaudited) 1997
------------------- ------------------- ------------------- -------------------
Shares Amount Shares Amount Shares Amount Shares Amount
----- ------ ----- ------ ----- ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A
Shares sold............... 760,910 $17,352,860 1,563,609 $32,372,641 393,531 $ 4,018,507 1,007,188 $ 10,106,275
Shares issued through
reinvestment of dividends
and distributions........ 687,065 14,965,287 520,341 9,336,451 106,514 1,086,039 227,876 2,280,614
-------- ---------- -------- ---------- -------- ---------- -------- ----------
1,447,975 32,318,147 2,083,950 41,709,092 500,045 5,104,546 1,235,064 2,386,889
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Shares redeemed........... (785,167)(18,094,808)(2,325,116)(45,822,643) (822,568) (8,386,906) (1,447,949) (14,465,843)
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Net increase (decrease).. 662,808 $14,223,339 (241,166)$(4,113,551) (322,523)$(3,282,360) (212,885) $ (2,078,954)
======== ========== ======== ========== ======== ========== ======== ==========
Class B*
Shares sold.............. 309,982 $ 7,079,010 488,038 $10,257,289 136,988 $ 1,396,356 234,034 $ 2,345,418
Shares issued through
reinvestment of dividends
and distributions...... 45,727 985,428 14,941 266,712 6,394 65,208 9,475 94,809
-------- ---------- -------- ---------- -------- ---------- -------- ----------
355,709 8,064,438 502,979 10,524,001 143,382 1,461,564 243,509 2,440,227
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Shares redeemed........... (36,046) (821,104) (50,994) (1,093,317) (74,977) (765,655) (73,268) (732,223)
-------- ---------- -------- ---------- -------- ---------- -------- ----------
Net increase.............. 319,663 $7,243,334 451,985 $ 9,430,684 68,405 $ 695,909 170,241 $1,708,004
======== ========== ======== ========== ======== ========== ======== ==========
</TABLE>
<PAGE>
Winthrop Focus Funds--Notes to Financial Statements April 30, 1998 (continued)
- ------------------------------------------------------------------------------
MUNICIPAL TRUST FUND
---------------------------------------
Period Ended
April 30, 1998 Year Ended October 31,
(unaudited) 1997
------------------- -------------------
Shares Amount Shares Amount
----- ------ ----- ------
Class A
Shares sold.............. 475,912 $4,931,053 620,191 $ 6,261,100
Shares issued through
reinvestment of dividends
and distributions....... 55,365 574,041 124,371 1,258,384
-------- ---------- -------- ----------
531,277 5,505,094 744,562 7,519,484
-------- ---------- -------- ----------
Shares redeemed........... (414,545) (4,315,672)(1,134,519)(11,447,099)
-------- ---------- -------- ----------
Net increase (decrease) 115,732 $ 1,189,422 (389,957)$(3,927,615)
======== ========== ======== ==========
Class B
Shares sold............... 48,057 $ 500,101 36,704 $ 373,121
Shares issued through
reinvestment of
dividends............... 553 5,731 1,332 13,451
-------- ---------- -------- ----------
48,610 505,832 38,036 386,572
-------- ---------- -------- ----------
Shares redeemed........... (527) (5,486) (33,844) (343,669)
-------- ---------- -------- ----------
Net increase.............. 48,083 $ 500,346 4,192 $ 42,903
======== ========== ======== ==========
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 Ratio of
Realized and Net Ratio of Net
Net Asset Unrealized Dividends Distribut- Asset Net Assets Expenses Investment
Value, Net Gains or from Net ions from Value, End of to Average Income (Loss) Portfolio
Beginning Investment (Losses) on Investment Capital End Total Period Net to Average Turnover
of Period Income Securities Income Gains of Period Return+ (000 omitted) Assets Net Assets Rate
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Growth Fund
Class A
Six Months Ended April 30, (unaudited)
1998 $14.56 $0.018 $2.951 ($0.017) ($0.812) $16.70 21.70% $98,820 1.32%(1) 0.02% (1) 13.0%
Years Ended October 31,
1997 12.69 0.028 3.065 (0.048) (1.175) 14.56 26.48 82,926 1.36 0.21 41.1
1996 11.35 0.053 2.107 (0.038) (0.782) 12.69 20.32 68,096 1.48 0.47 60.6
1995 10.82 0.037 1.190 (0.012) (0.685) 11.35 12.21 55,946 1.63 0.35 101.7
1994 10.97 0.014 0.435 -- (0.599) 10.82 4.15 52,455 1.65 0.06 28.2
1993 11.10 0.061 1.386 (0.077) (1.500) 10.97 14.36 49,446 1.36 0.56 61.7
Class B (2)
Six Months Ended April 30, (unaudited)
1998 14.41 (0.047) 2.939 -- (0.812) 16.49 21.35 16,024 2.02 (1) (0.72) (1) 13.0
Years Ended October 31,
1997 12.63 (0.030) 3.016 (0.031) (1.175) 14.41 25.66 10,378 2.06 (0.51) 41.1
1996 11.88 (0.013) 0.763 -- -- 12.63 6.40 3,177 2.17 (1) (0.34) (1) 60.6
Growth and Income Fund
Class A
Six Months Ended April 30, (unaudited)
1998 $20.09 $0.197 $3.534 ($0.090) ($0.781) $22.95 19.31% $170,116 1.16%(1) 1.00% (1) 8.9%
Years Ended October 31,
1997 17.18 0.211 4.588 (0.214) (1.675) 20.09 30.53 145,586 1.22 1.15 19.8
1996 14.57 0.266 2.935 (0.241) (0.350) 17.18 22.60 113,803 1.36 1.68 44.0
1995 13.38 0.254 1.769 (0.266) (0.567) 14.57 16.10 87,975 1.58 1.94 31.8
1994 13.42 0.244 0.358 (0.223) (0.419) 13.38 4.58 67,020 1.64 1.88 25.9
1993 12.35 0.270 1.720 (0.271) (0.649) 13.42 16.93 52,166 1.33 2.12 36.4
Class B (2)
Six Months Ended April 30, (unaudited)
1998 20.06 0.050 3.595 (0.024) (0.781) 22.90 18.89 30,467 1.86 (1) 0.30 (1) 8.9
Years Ended October 31,
1997 17.15 0.079 4.577 (0.071) (1.675) 20.06 29.59 19,664 1.92 0.39 19.8
1996 16.05 0.136 1.109 (0.145) -- 17.15 7.67 6,545 1.99 (1) 1.06 (1) 44.0
Small Company Value Fund
Class A
Six Months Ended April 30, (unaudited)
1998 $23.34 $0.100 $2.258 ($0.063) ($1.255) $24.38 10.79% $311,806 1.28%(1) 0.33% (1) 9.8%
Years Ended October 31,
1997 18.41 0.073 5.661 (0.081) (0.723) 23.34 32.48 283,001 1.35 0.37 21.1
1996 16.61 0.084 2.162 (0.037) (0.409) 18.41 13.80 227,716 1.47 0.48 35.1
1995 15.65 0.035 1.621 -- (0.696) 16.61 11.10 202,730 1.64 0.23 25.1
1994 16.11 0.105 0.603 (0.026) (1.142) 15.65 4.67 144,624 1.70 (0.04) 31.6
1993 14.00 0.123 3.195 (0.011) (1.197) 16.11 25.34 77,903 1.44 0.32 134.3
Class B (2)
Six Months Ended April 30, (unaudited)
1998 23.12 (0.038) 2.293 -- (1.255) 24.12 10.40 26,904 1.98 (1) (0.37) (1) 9.8
Years Ended October 31,
1997 18.34 (0.021) 5.576 (0.052) (0.723) 23.12 31.55 18,395 2.05 (0.32) 21.1
1996 17.41 (0.023) 0.953 -- -- 18.34 5.28 6,305 2.15 (1) (0.34) (1) 35.1
</TABLE>
- -------------------
+ 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) Winthrop commenced offering Class B shares on February 28, 1996.
<PAGE>
<TABLE>
<CAPTION>
Net Ratio of
Realized and Net Ratio of Net
Net Asset Unrealized Dividends Distribut- Asset Net Assets Expenses Investment
Value, Net Gains or from Net ions from Value, End of to Average Income (Loss) Portfolio
Beginning Investment (Losses) on Investment Capital End Total Period Net to Average Turnover
of Period Income Securities Income Gains of Period Return+ (000 omitted) Assets Net Assets Rate
-------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fixed Income Fund
Class A
Six Months Ended April 30, (unaudited)
1998 $10.16 $0.271 $0.020 ($0.271) $ -- $10.18 2.89% $51,568 1.00%(1) 5.34%(1) 62.1%
Years Ended October 31,
1997 10.07 0.575 0.090 (0.575) -- 10.16 6.84 54,755 1.00 5.74 119.3
1996 10.22 0.577 (0.150) (0.577) -- 10.07 4.34 56,388 1.00 5.72 90.2
1995 9.66 0.588 0.560 (0.588) -- 10.22 12.23 53,885 1.00 5.90 66.1
1994 10.93 0.567 (1.027) (0.567) (0.243) 9.66 (4.37) 39,150 0.93 5.58 55.9
1993 10.40 0.622 0.567 (0.622) (0.037) 10.93 11.79 40,881 0.83 5.79 95.6
Class B (3)
Six Months Ended April 30, (unaudited)
1998 10.16 0.235 0.020 (0.235) -- 10.18 2.53 4,077 1.70 (1) 4.64 (1) 62.1
Years Ended October 31,
1997 10.07 0.504 0.090 (0.504) -- 10.16 6.10 3,375 1.70 4.99 119.3
1996 10.22 0.339 (0.150) (0.339) -- 10.07 2.23 1,629 1.70 (1) 5.03 (1) 90.2
Municipal Trust Fund
Class A
Six Months Ended April 30, (unaudited)
1998 $10.29 $0.201 ($0.020) ($0.201) $ -- $10.27 1.75% $37,007 1.00%(1) 3.89%(1) 11.2%
Years Ended October 31,
1997 10.01 0.445 0.280 (0.445) -- 10.29 7.37 35,878 0.70 4.38 84.3
1996 10.06 0.425 (0.050) (0.425) -- 10.01 3.83 38,794 0.80 4.26 79.3
1995 9.51 0.389 0.550 (0.389) -- 10.06 10.06 39,059 1.00 3.97 49.3
1994 10.10 0.365 (0.590) (0.365) -- 9.51 (2.27) 34,470 0.83 3.71 42.5
1993+ 10.00 0.085 0.100 (0.085) -- 10.10 7.15 (1) 33,794 0.75 (1) 3.28 (1) --
Class B (3)
Six Months Ended April 30, (unaudited)
1998 10.29 0.164 (0.020) (0.164) -- 10.27 1.40 1,039 1.70 (1) 3.19 (1) 11.2
Years Ended October 31,
1997 10.01 0.370 0.280 (0.370) -- 10.29 6.62 ,546 1.40 3.66 84.3
1996 10.12 0.248 (0.110) (0.248) -- 10.01 1.42 ,489 1.23 (1) 3.81 (1) 79.3
</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, .28% (annualized) for the six months ended 04/30/98, .30%, .34%,
.51%, .67%, and .58% for the years ended 10/31/97, 96, 95, 94, and 93,
respectively; Fixed Income Fund Class B shares, .28% (annualized) for the
six months ended 04/30/98, .30% for the year ended 10/31/97, and .34%
(annualized) for the period 2/28/96 through 10/31/96; Municipal Trust Fund
Class A shares, .42% (annualized) for the six months ended 04/30/98, .74%,
.64%, .58%, .77% and 1.15% (annualized) for the years ended 10/31/97, 96,
95, 94 and 93, respectively, and Municipal Trust Fund Class B shares, .42%
(annualized) for the six months ended 04/30/98, .74% for the year ended
10/31/97, and .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 Carl B. Menges William C. Simpson
Robert L. Bast John J. Sheehan Peter F. Krogh
James A. Engle Dennis G. Little Stephen K. West
Stig Host William H. Mathers
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
Richard J. Hanlon, Vice President
Cathy A. Jameson, Vice President
Brian A. Kammerer, Vice President
Marybeth B. Leithead, Vice President
Hugh M. Neuburger, Vice President
Roger W. Vogel, Vice President
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
First Data Investor Services Group, 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.
WOOD, STRUTHERS & WINTHROP
ESTABLISHED 1871
[LOGO]
INVESTMENT MANAGEMENT SUBSIDIARY OF
DONALDSON, LUFKIN & JENRETTE
SECURITIES CORPORATION
(THE FUND DISTRIBUTOR)
WFF-2 6/98
WINTHROP
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, 1998
SEMI-ANNUAL
REPORT
