<PAGE>
Dear Shareholders:
The current economic expansion continues, as parts of Asia
are beginning to rebound and U.S. consumer spending remains robust. After
experiencing compression during the second half of 1998, corporate earnings
have begun to expand in 1999. Going forward, we believe that the great
disparity in valuation between shares in very large growth companies and the
rest of the U.S. equity universe will begin to narrow. As a result, smaller
companies should begin to receive more favorable treatment in the market.
Within the large company universe, we believe that companies that offer
reasonable valuations relative to growth prospects can be identified and will
be increasingly rewarded. With respect to fixed income, we believe that rates
may continue to rise over the course of the summer, but that a significant
increase in inflation over the long-term is not likely. As a result, we believe
that rising yields will present opportunities for purchases of long-term bonds
as we move through the summer.
DLJ WINTHROP SMALL COMPANY VALUE FUND
The Class A shares of the Small Company Value Fund returned 4.90% for the
six-month period ended April 30, 1999, versus 15.17% for the Russell 2000
Index. The market rebound off the lows of October 1998 has been more focused on
growth-oriented issues, hampering the Fund's relative performance. This trend
has been magnified early in 1999 by the performance of internet-related issues.
Several of these stocks carry market capitalizations in the multiple billions
and thus have a disproportionate impact on the performance of the index. Given
our value orientations, we have been unwilling to accept the stratospheric
valuations being accorded many of these issues, and consequently have no direct
exposure to the group.
Smaller cap stocks have recently begun to show some signs of life relative to
their larger cap brethren. With relative valuations still at or near historic
lows, we maintain that the small cap market is very attractive with a strong
potential for favorable long-term returns.
The Fund's best performers in 1999 have been in the oil service and technology
sectors. Recently we have increased our exposure to the retailing sector to
benefit from greater consumer spending. We have also trimmed some of our more
economically exposed issues to increase exposure to somewhat faster growing
companies available at reasonable prices.
DLJ WINTHROP GROWTH AND INCOME FUND
For the six months ended April 30, 1999, the Growth and Income Fund Class A
shares returned 15.37% versus a 22.31% return for the S&P 500. During this
period the market favored very large companies with exciting growth prospects
and high valuations. The approach of the Fund continues to focus on
high-quality companies that sell at reasonable valuations relative to growth
prospects. This approach has historically provided good rewards for
shareholders in the DLJ Winthrop Growth and Income Fund. During the past six
months the absolute returns have been respectable, but relative returns lagged
as a result of limited exposure to glamorous technology and internet stocks. It
is our expectation that the stock market will rotate towards better valued
shares and that the performance of the Fund relative to the S&P 500 should
benefit accordingly.
DLJ WINTHROP GROWTH FUND
For the six months ended April 30, 1999, the Growth Fund A shares returned
22.72% and the S&P 500 returned 22.31%. The Fund's holdings across a wide
variety of industries performed well. Although the Fund's technology, media, and
communications holdings included many stellar performers, some of our retailing
and advertising stocks also did extremely well. Stocks that performed
particularly well included Dayton Hudson, Media One, Northern Telecom, and
Solectron.
DLJ WINTHROP FIXED INCOME FUND
The domestic fixed income markets experienced a marked transition in the
six-month period ending April 30, 1999. Treasury yields reached multi-decade
lows during the fall of 1998, but interest rates have risen one half to one
full point in yield since the beginning of the year. Most of the increase in
yield is attributed to the recovery in foreign markets and the continued
strength of the U.S. economy.
In anticipation of stronger economic growth and in response to a friendlier Fed,
we actively shifted to a more defensive structure for the Fixed Income Fund
during these past six months by shortening duration and increasing our
weightings in higher yielding government agency and investment grade corporate
debt securities at the expense of Treasuries. Treasuries, by far the outstanding
performing fixed income sector in 1998, have been surpassed by higher yielding
and less risk-averse market sectors thus far in 1999. The Fed's recent decision
to pursue a tightening bias, in an effort to restrain growth and limit
inflationary pressures, reinforces our views on emphasizing shorter duration,
investment grade or better, liquid securities. Performance of the Class A shares
for fiscal year to date through April 30, 1999 trailed that of the index, -0.16%
versus 0.51%.
DLJ WINTHROP MUNICIPAL TRUST FUND
The interest rate environment has shifted dramatically over the Fund's current
fiscal year. Market expectations for Federal Reserve policy rotated from
friendly or neutral to a bias toward tightening. Interest rates responded in an
upwards direction in every sector of the fixed income markets. Tax-exempt rates
increased on average 10-15 basis points in the intermediate sector of the
curve. Supply in municipals has fallen off dramatically in contrast with the
increased supply in the taxable market, which contributed to municipals
out-performing taxable fixed income. For the six months ended April 30, 1999,
the Fund's Class A shares returned 1.10% versus the Lipper Intermediate
Municipal Index of 1.37% as the Fund's heavy concentration in ten-year
maturities adversely impacted relative performance. Ten-year municipals were
the worst performing maturity sector as hedge funds that had heavily purchased
this maturity range last October sold in massive quantities to lock in gains
relative to the taxable markets. This anomaly should abate going forward. We
have shortened our average maturity slightly, and are currently looking to lock
in tax losses to carry forward against future gains.
Thank you for your continued support and have an enjoyable summer.
Sincerely,
/s/ G. Moffett Cochran
- -------------------------------------
G. Moffett Cochran
President June, 1999
<PAGE>
FOCUS FUND HIGHLIGHTS (unaudited)
DLJ Winthrop Growth Fund
Portfolio Changes for the Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
Major Purchases Major Sales
American Express Co.(1) American Home Products Corp.(2)
Chase Manhattan Corp.(1) American International Group, Inc.
ConAgra, Inc.(1) BankAmerica Corp.
General Electric Co.(1) Becton Dickinson &Co.(2)
MediaOne Group,Inc.(1) Dayton Hudson Corp.
Medtronic, Inc.(1) Freddie Mac
Phillips Petroleum Co.(1) Hollinger International, Inc.(2)
Texas Instruments, Inc.(1) Raytheon Co.(2)
Time Warner, Inc.(1) Sara Lee Corp.(2)
Wal-Mart Stores, Inc.(1) Whitman Corp.(2)
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1999
<CAPTION>
Percent
Value of Fund
----------- --------
<S> <C> <C>
Microsoft Corp. .............................................. $ 6,505,000 4.3%
MCI WorldCom, Inc. ........................................... 5,740,000 3.8
General Electric Co. ......................................... 5,380,500 3.5
MediaOne Group, Inc. ......................................... 4,869,281 3.2
Cisco Systems, Inc. ......................................... 4,619,531 3.0
Exxon Corp. .................................................. 4,485,375 2.9
Proctor & Gamble Co. ......................................... 4,371,663 2.9
Amgen, Inc. .................................................. 4,362,063 2.9
Dayton Hudson Corp. .......................................... 3,601,219 2.4
Bell South Corp. ............................................. 3,553,150 2.3
----------- ----
$47,487,782 31.2%
=========== ====
Investment Results For the Periods Ended April 30, 1999
<CAPTION>
Average Annual Total Return
----------------------------
DLJ Winthrop
Growth Fund
-----------------
Without With
Load Load S&P 500
-------- ----- --------
<S> <C> <C> <C>
Class A:
1 year ........................................................... 22.01% 15.00% 21.83%
5 years .......................................................... 20.59 19.17 26.89
10 years ......................................................... 15.01 14.33 18.83
Class B:
1 year ........................................................... 21.13 17.13 21.83
From inception 2/96 .............................................. 23.76 23.56 28.03
</TABLE>
The performance data quoted represents past performance, which is no indication
of future performance. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. No adjustment has been made for any income taxes payable by
shareholders on dividends or capital gains, but the returns calculated above
have been computed after deduction of all fund expenses including advisory
fees. Class A returns shown above are computed with and without the imposition
of the maximum 5.75% 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. Prior to April 30, 1999,
Class D shares were not offered. Accordingly, no performance data is available.
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)
DLJ Winthrop Growth and Income Fund
Portfolio Changes for the Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
<S> <C>
Major Purchases Major Sales
Alltel Corp.(1) American International Group, Inc.
BankAmerica Corp. Consolidated Natural Gas Co.(2)
Berkshire Hathaway, Inc. Cl. A(1) Financial Security Assurance Holdings Ltd.(2)
Computer Associates International, Inc.(1) Loews Corp.
ConAgra, Inc.(1) Merrill Lynch & Co. 6.000%, 02/12/03(2)
MediaOne Group, Inc.(1) Monsanto Co.(2)
Sprint Corp.(1) Nielsen Media Research, Inc.(2)
Texas Instrument Corp.(1) Procter &Gamble Co. 5.250%, 09/15/03(2)
Tribune Co.(1) Unova, Inc.(2)
3COM Corp. 3COM Corp.
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1999
<CAPTION>
Percent
Value of Fund
----------- --------
<S> <C> <C>
Freddie Mac .................................................... $10,818,100 4.0%
United Technologies Corp. ...................................... 8,793,913 3.2
Tyco International Ltd. ........................................ 8,766,875 3.2
BP Amoco PLC Sponsored ADRs .................................... 8,023,070 2.9
Merck & Co., Inc. .............................................. 7,488,650 2.7
Burlington Northern Santa Fe Corp. ............................. 7,218,787 2.6
Raytheon Co. ................................................... 6,842,644 2.5
U.S. Bancorp. .................................................. 6,496,908 2.4
SYSCO Corp. .................................................... 6,486,719 2.4
American International Group, Inc. ............................. 6,291,714 2.3
----------- ----
$77,227,380 28.2%
=========== ====
Investment Results For the Periods Ended April 30, 1999
<CAPTION>
Average Annual Total Return
----------------------------
DLJ Winthrop
Growth and
Income Fund
-----------------
Without With
Load Load S&P 500
-------- ----- --------
<S> <C> <C> <C>
Class A:
1 year ............................................................ 15.20% 8.57% 21.83%
5 years ........................................................... 20.86 19.44 26.89
10 years .......................................................... 15.81 15.13 18.83
Class B:
1 year ............................................................ 14.40 10.40 21.83
From inception 2/96 ............................................... 22.40 22.19 28.03
</TABLE>
The performance data quoted represents past performance, which is no indication
of future performance. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. No adjustment has been made for any income taxes payable by
shareholders on dividends or capital gains, but the returns calculated above
have been computed after deduction of all fund expenses including advisory
fees. Class A returns shown above are computed with and without the imposition
of the maximum 5.75% 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. Prior to April 30, 1999,
Class D shares were not offered. Accordingly, no performance data is available.
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)
DLJ Winthrop Small Company Value Fund
Portfolio Changes for the Six Months Ended April 30, 1999
Major Purchases Major Sales
AAR Corp. Bard (C.R.), Inc.
Dallas Semiconductor Corp. Electro Scientific Industries, Inc.
DII Group,Inc.(1) Jabil Circuit, Inc.(2)
Highwoods Properties, Inc.(1) KNEnergy, Inc.
Horace Mann Educators Corp. Learonal, Inc.(2)
Jones Pharma, Inc.(1) Old Republic International Corp.(2)
Keane, Inc.(1) Regal-Beloit Corp.(2)
Liberty Property Trust(1) Sierra Health Services, Inc.(2)
Longview Fibre Co.(1) Teradyne, Inc.
Sovereign Bancorp, Inc.(1) Unitog Co.(2)
(1) New Holdings (2) Deletions
Ten Largest Holdings April 30, 1999
Percent
Value of Fund
------------ -------
Protective Life Corp. ................. $ 5,180,587 2.3%
Teleflex, Inc. ........................ 5,053,250 2.3
FirstMerit Corp. ...................... 5,006,250 2.3
Wicor, Inc. ........................... 4,932,900 2.2
People's Bank ......................... 4,882,500 2.2
Carlisle Companies, Inc. .............. 4,841,200 2.2
Hanna (M.A.) Co. ...................... 4,812,544 2.2
Ruddick Corp. ......................... 4,381,194 2.0
Helmerich &Payne, Inc. ................ 4,377,500 2.0
NAC Re Corp. .......................... 4,376,350 2.0
----------- ----
$47,844,275 21.7%
=========== ====
Investment Results For the Periods Ended April 30, 1999
Average Annual Total Return
---------------------------
DLJ Winthrop
Small Company
Value Fund
-----------------
Without With Russell
Load Load 2000
------- ----- -------
Class A:
1 year................................... (15.92)% (20.76)% (9.26)%
5 years.................................. 9.45 8.16 13.01
10 years................................. 11.63 10.97 11.94
Class B:
1 year.................................. (16.65) (19.98) (9.26)
From inception 2/96..................... 7.95 7.68 10.91
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 5.75% 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)
DLJ Winthrop Fixed Income Fund
Portfolio Changes for the Six Months Ended April 30, 1999
Major Purchases Major Sales
AT&T Corp.(1) Federal Home Loan Bank(2)
6.000%, 03/15/09 5.470%, 08/17/00
Federal Home Loan Bank(1) Federal Home Loan Mortgage Corp.(2)
5.625%, 03/28/02 5.605%, 03/12/99
Federal National Mortgage Association(1) Merrill Lynch & Co.(2)
5.375%, 03/15/02 6.000%, 11/15/04
Merrill Lynch & Co., Inc.(1) U.S. Treasury Notes(2)
6.000%, 11/15/04 6.250%, 02/28/02
U.S Treasury Notes(1) U.S. Treasury Note(2)
6.125%, 08/15/07 6.125%, 08/15/07
(1) New Holdings (2) Deletions
Portfolio Characteristics April 30, 1999
30 Day Yield, Class A: 4.66% Average Years to Maturity: 5.3 years*
30 Day Yield, Class B: 4.18% Average Coupon: 5.91%+*
Average Rating: AA* Average Duration: 3.9 years*
* Weighted Averages
+ Exclusive of Commercial Paper
Investment Results For the Periods Ended April 30, 1999
Average Annual Total Return
------------------------------
DLJ Winthrop
Fixed Income Fund Lehman Bros.
------------------ Gov't. Corp.
Without With Intermediate
Load Load Bond Index
----------- ----- ------------
Class A:
1 year.................................. 5.25% 0.25% 6.36%
5 years................................. 6.29 5.26 7.20
10 years................................ 7.80 7.28 8.20
Class B:
1 year.................................. 4.50 0.50 6.36
From inception 2/96..................... 4.86 4.57 6.54
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. Prior to April
30, 1999, Class D shares were not offered. Accordingly, no performance data
is available.
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)
DLJ Winthrop Municipal Trust Fund
Portfolio Changes for the Six Months Ended April 30, 1999
<TABLE>
<CAPTION>
Major Purchases Major Sales
<S> <C>
Dallas, Texas Refunding & Improvement(1) Florida State Board of
4.000%, 02/15/04 5.000%, 06/01/06
Florida State Board of Education(1) Lakeland Florida, Electric & Water Revenue(2)
5.000%, 06/01/06 5.900%, 10/01/08
Madison, Illinois Environmental Madison, Illinois Environmental
Improvement Revenue(1) Improvement Revenue(2)
4.300%, 03/01/33 4.300%, 03/01/33
Massachusetts Bay Transportation Authority(1) Port Authority NY & NJ Consolidated 113th(2)
5.500%, 03/01/09 3.900%, 12/01/00
Michigan State Municipal Bond Authority(1) Texas A&M University(2)
5.000%, 10/01/06 5.250%, 05/15/01
(1) New Holdings (2) Deletions
</TABLE>
Portfolio Characteristics April 30, 1999
30 Day Yield, Class A: 3.04% Average Years to Maturity: 6.5 years*
30 Day Yield, Class B: 2.50% Average Coupon: 5.65%*
Average Rating: AA* Average Duration: 5.2 years*
* Weighted Averages
Investment Results For the Periods Ended April 30, 1999
Average Annual Total Return
---------------------------------
DLJ Winthrop
Municipal
Trust Fund Lipper
------------------- Intermedate
Without With Municipal
Load Load Fund Index
-------- ------ -----------
Class A:
1 year.................................. 5.60% 0.58% 5.98%
5 years................................. 5.69 4.67 6.05
From inception 7/93..................... 4.83 3.95 5.35
Class B:
1 year.................................. 4.86 0.86 5.98
From inception 2/96..................... 4.50 4.21 5.39
The performance data quoted represents past performance, which is no indication
of future performance. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. No adjustment has been made for any income taxes payable by
shareholders on dividends or capital gains. 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>
DLJ Winthrop Focus Funds -- Statement of Investments April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
DLJ Winthrop Growth Fund
Common Stocks--98.1%
Basic Materials--3.7% Shares Value
---------- ------------
Chemicals-2.2%
Monsanto Co. ............................ 26,500 $ 1,199,125
Manufacturer of chemicals
Praxair, Inc. ........................... 41,400 2,142,450
-----------
Industrial gases/special coatings ..... 3,341,575
-----------
Metals & Mining-1.5%
Alcoa, Inc. ............................. 38,000 2,365,500
-----------
Manufacturer of aluminum
5,707,075
-----------
Capital Goods--8.4%
Aerospace & Defense-1.7%
General Dynamics Corp. .................. 37,000 2,599,250
-----------
Suppliers of weapon systems and
services
Conglomerates-5.3%
General Electric Co. .................... 51,000 5,380,500
Diversified industrial
Tyco International Ltd. ................. 33,800 2,746,250
-----------
Diversified manufacturing and services
8,126,750
-----------
Electrical Equipment-1.4%
Emerson Electric Co. .................... 33,300 2,147,850
-----------
Manufacturer of electric/electronic
products
12,873,850
-----------
Consumer Cyclical--14.7%
Auto Related-0.8%
Federal-Mogul Corp. ..................... 28,800 1,263,600
-----------
Manufacturer of bearings: transmission
products
Broadcasting & Cable TV-3.2%
MediaOne Group, Inc.* ................... 59,700 4,869,281
-----------
Cable & telecom operations
Leisure Related-1.6%
Disney (Walt) Co. ....................... 75,900 2,409,825
-----------
Diversified international entertainment
company
Personal & Household Products-1.0%
Estee Lauder Companies,
Inc. Cl. A .............................. 15,500 1,551,938
-----------
Manufacturer of skin care, makeup and
fragrances
Printing & Publishing-1.4%
Time Warner, Inc. ....................... 31,700 2,219,000
-----------
Media and entertainment company
Retail-General-6.7%
CVS Corp. ............................... 49,200 2,343,150
Retail: health stores, drugs
Dayton Hudson Corp. ..................... 53,500 3,601,219
Department stores
Home Depot, Inc. ........................ 26,100 1,564,369
Retail: home improvement products
Wal-Mart Stores, Inc. ................... 58,800 2,704,800
-----------
Discount department stores
10,213,538
-----------
22,527,182
-----------
Consumer Staples--17.8% ..................... Shares Value
----------- -----------
Beverage & Tobacco-0.9%
Philip Morris Cos., Inc. .................... 37,500 $ 1,314,844
-----------
Tobacco, brewing, soft drinks
Drugs-7.2%
Amgen, Inc. ................................. 71,000 4,362,063
Research/development of biotech
products & pharmaceuticals
Merck & Co., Inc. ........................... 38,000 2,669,500
Human & animal pharmaceuticals
Pharmacia & Upjohn, Inc. .................... 28,400 1,590,400
Pharmaceutical/consumer products
Schering-Plough Corp......................... 48,000 2,319,000
-----------
Pharmaceutical/consumer products
10,940,963
-----------
Hospital Supplies & Services-2.2%
Bard (C. R.), Inc............... 33,000 1,617,000
Manufacturer & distributor healthcare
products
Medtronic, Inc.................... 24,400 1,755,275
-----------
Medical technology company
3,372,275
-----------
Retail-Food-4.0%
Campbell Soup Co................... 26,000 1,066,000
Food distributor & service systems
ConAgra, Inc....................... 54,800 1,363,150
Diversified food processor
Safeway, Inc.*..................... 24,000 1,294,500
Food supermarket chain
SYSCO Corp......................... 80,000 2,375,000
Food distributor & service systems
6,098,650
-----------
Soaps & Toiletries-3.5%
Colgate-Palmolive Co................... 10,200 1,044,862
Household and personal care
Procter &GambleCo...................... 46,600 4,371,663
-----------
Household, personal care, food
products 5,416,525
-----------
27,143,257
-----------
Energy--6.7%
Oil-Domestic-1.7%
Texaco, Inc........................... 42,200 2,648,050
-----------
Explore, produce, transport, refine
and market crude oil, natural gas, etc ......
Oil-International-5.0%
Exxon Corp............................ 54,000 4,485,375
World's leading oil company
Phillips Petroleum Co................. 43,300 2,192,063
Explore & produce crude oil, natural
gas, and other petroleum products
Schlumberger Ltd...................... 15,000 958,125
-----------
Oil & gas exploration, development
7,635,563
-----------
10,283,613
-----------
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds -- Statement of Investments April 30, 1999 (continued)
- --------------------------------------------------------------------------------
DLJ Winthrop Growth Fund
Financial--17.9% ........................ Shares Value
----------- -----------
Banking-7.6%
Banc One Corp. .......................... 40,000 $ 2,360,000
Bank holding company
Chase Manhattan Corp. ................... 37,500 3,103,125
Diverse financial products & services
U.S. Bancorp ............................ 54,000 2,001,375
Commercial banking: midwest
& northwest U.S. ......................
Wachovia Corp. .......................... 18,400 1,616,900
Regional bank
Wells Fargo & Co. ....................... 59,000 2,548,062
-----------
Commercial banking: CA
11,629,462
-----------
Financial Services-6.1%
American Express Co. .................... 26,827 3,505,953
Diversified financial services provider
Associates First Capital Corp. .......... 36,000 1,595,250
Consumer/commercial finance
Freddie Mac ............................. 45,300 2,842,575
Provides residential mortgage funds
Lehman Brothers Holdings, Inc. .......... 25,200 1,400,175
-----------
Global investment banking
9,343,953
-----------
Insurance-4.2%
Allstate Corp. .......................... 29,000 1,054,875
Insurance provider
American International Group, Inc. ...... 26,600 3,123,837
International processing & related
services
Hartford Financial Services, Inc. ....... 39,000 2,298,562
-----------
Insurance provider
6,477,274
-----------
27,450,689
-----------
Technology--26.2%
Computers-10.6%
Cisco Systems, Inc.* .................... 40,500 4,619,531
Manufacturer of computer network
products
Compaq Computer Corp. ................... 30,600 682,762
Manufacturer of business machines
International Business
Machines Corp. .......................... 15,000 3,137,813
Largest manufacturer of business
machines
Microsoft Corp. ......................... 80,000 6,505,000
Computer software
Oracle Corp.* ........................... 45,000 1,217,812
-----------
Design & develop computer software
16,162,918
-----------
Electronics-4.2%
Intel Corp. ............................. 48,000 2,937,000
Semiconductor processing chips
Solectron Corp.* ........................ 36,000 1,746,000
Provider of customized electronic
manufacturing services
Texas Instruments, Inc. ................. 16,500 1,685,062
-----------
Global semiconductor company
6,368,062
-----------
Shares Value
------------ ------------
Office Equipment-2.9%
AveryDennison Corp. ....................... 27,500 $ 1,876,875
Manufacturer of office products
Pitney-Bowes,Inc .......................... 36,000 2,517,750
------------
Postage and related mailing equipment
4,394,625
------------
Telecommunications-8.5%
BellSouthCorp ............................. 79,400 3,553,150
Telecommunication services
MCI Worldcom, Inc.* ....................... 70,000 5,740,000
Telecommunication services
Northern Telecom Corp. .................... 25,400 1,731,963
Provides digital communication systems
Sprint Corp. (FON Group) ................. 16,400 1,682,025
Telecommunication services
Sprint Corp. (PCS Group) .................. 8,200 347,475
------------
Wireless mobile telephone operations
13,054,613
------------
39,980,218
------------
Transport & Service--2.7%
Advertising-1.5%
Omnicom Group, Inc. ....................... 31,500 2,283,750
------------
Produce and place advertising in
various media
Airlines-0.4%
AMR Corp.* ................................ 8,000 558,500
------------
Holding co.: American Airlines
Railroads-0.8%
Burlington Northern Santa Fe Corp. ........ 31,500 1,153,688
------------
Railroad systems operations in U.S. .....
3,995,938
------------
Total Common Stocks
(cost $89,851,167) ...................... 149,961,822
------------
Principal
Amount
------------
Commercial Paper--1.8%
Ford Motor Credit Corp. ...................
4.83%, 05/06/99 ......................... $ 2,390,000 2,388,397
Merrill Lynch Co. .........................
4.93%,05/03/99 .......................... 375,000 374,897
------------
Total Commercial Paper
(amortized cost $2,763,294) ............. 2,763,294
Total Investments--99.9%
(cost $92,614,461) ...................... 152,725,116
------------
Cash and Other Assets
Net of Liabilities--0.1% ................ 146,656
------------
Net Assets--100.0% ........................ $152,871,772
============
* Non-income producing
See notes to financial statements.
<PAGE>
Basic Materials--1.2% Shares Value
-------- -----------
Chemicals-1.2%
Hannah (M.A.) Co. 203,100 $3,287,681
Specialty chemicals, polymers -----------
Capital Goods/
Construction--7.8%
Aerospace & Defense-7.8%
General Dynamics Corp. 78,700 5,528,675
Builds & designs nuclear submarines
Raytheon Co. 98,900 6,842,644
Defense & commercial electronics:
construction
United Technologies Corp. 60,700 8,793,913
Aerospace, climate control systems -----------
21,165,232
-----------
Consumer Products
& Services--28.6%
Beverages & Tobacco-2.5%
Diageo PLC Sponsored ADRs 26,028 1,200,541
Manufactures food and beverage
products
Philip Morris Cos., Inc. 115,000 4,032,187
Tobacco, brewing, soft drinks
UST, Inc. 55,000 1,533,125
Snuff, tobacco, wine, spirits -----------
6,765,853
-----------
Containers-0.8%
Bemis, Inc. 60,200 2,107,000
Packaging/adhesive products -----------
Drugs-5.3%
Amgen, Inc.* 56,600 3,477,362
Research/development of biological
products
Merck & Co., Inc. 106,600 7,488,650
Human & animal pharmaceuticals
Pharmacia & Upjohn, Inc. 60,800 3,404,800
International pharmaceutical & ---------
biotechnological group of companies
14,370,812
Foods-3.1%
ConAgra, Inc. 53,100 1,320,862
Diversified food processor
IBP, Inc. 35,000 708,750
Produces beef/pork products
SYSCO Corp. 218,500 6,486,719
Food distributor & service systems
8,516,331
Hospital Supplies & Services-4.0%
Abbott Laboratories . 110,000 5,328,125
Diversified line of human healthcare
products & services
IMS Health, Inc. 185,400 5,562,000
Global provider of information services
for the pharmaceutical & healthcare
industries
10,890,125
Shares Value
-------- -----------
Household Furniture-1.0%
Leggett & Platt, Inc. 115,600 $2,666,025
Manufacture springs, etc. for furniture, -----------
bedding
Leisure-2.0%
Cedar Fair LP 116,400 2,793,600
Owns and operates amusement parks
Disney (Walt) Co. 87,222 2,769,299
Diversified international -----------
entertainment company
5,562,899
-----------
Printing & Publishing-1.7%
New York Times Co. Cl. A 80,000 2,760,000
Publishes newspapers & magazines -----------
Tribune Co. 20,600 1,718,812
Publishes newspapers & magazines -----------
4,478,812
-----------
Retail-Food & Drugs-1.6%
Walgreen Co. 164,500 4,420,938
Major retail drug chain ---------
Retail-General-3.7%
Federated Department Stores, Inc. 73,300 3,422,194
Operates department stores in U.S.
General Nutrition Companies, Inc.* 30,000 496,875
Retail: Drugs
Newell Co. 132,100 6,266,494
Manufacturer of high volume staple ---------
consumer products
10,185,563
----------
Soaps & Toiletries-2.9%
International Flavors & Fragrances, Inc. 85,500 3,377,250
Develops & manufactures flavor &
fragrance products
Procter & Gamble Co. 49,500 4,643,719
Household, personal care, food products -----------
8,020,969
-----------
77,985,327
-----------
Energy--10.2%
Oil &Gas-7.6%
BP Amoco PLC Sponsored ADRs 70,883 8,023,070
Integrated international oil
Enron Corp. 79,300 5,967,325
Major natural gas pipeline system
Helmerich & Payne, Inc. 170,400 4,387,800
Contract driller: oil & gas production
New Jersey Resources Corp. 28,000 1,032,500
Major natural gas pipeline system
San Juan Basin Royalty Trust 185,000 1,410,625
Royalty gas interest in New Mexico -----------
20,821,320
Oil-Supplies & Construction-2.6%
Halliburton Co. 70,600 3,009,325
Oil well services: engineering &
construction
Schlumberger Ltd. 62,500 3,992,188
Oil and gas exploration and production -----------
7,001,513
-----------
$27,822,833
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
DLJ Winthrop Growth and Income Fund
FINANCIAL SERVICES--20.0% Shares Value
------ -----
Banking-9.1%
BankAmerica Corp. ............................... 61,221 $ 4,407,912
Diverse financial products & services
Banc One Corp. .................................. 66,200 3,905,800
National bank holding company
Household International, Inc. .................... 50,000 2,515,625
Finance & banking services
Republic NY Corp. ............................... 73,200 4,300,500
Commercial banking: NY & worldwide
U.S. Bancorp .................................... 175,296 6,496,908
National bank holding company
Washington Mutual, Inc. .......................... 76,200 3,133,725
Regional financial services company -------------
24,760,470
-------------
Insurance-6.1%
Allmerica Financial Corp. ........................ 43,900 2,516,018
Insurance and financial services &
products
American International Group, Inc. ............... 53,575 6,291,714
International insurance holding
company
Amerin Corp.* ................................... 40,000 937,500
Mortgage insurance
Berkley, W.R. Corp. ............................. 10,000 275,000
Insurance holding company
Hartford Financial Services Group ................ 65,900 3,883,981
Insurance provider
HSB Group, Inc. .................................. 30,000 1,136,250
Insurance/engineering services
Progressive Corp. ............................... 8,000 1,148,000
Insurance holding company
Travelers Property Casualty Corp. Cl. A .......... 10,000 345,000
Property casualty insurance -------------
holding co.
16,533,463
-------------
Other-4.8%
Block (H&R), Inc. ............................... 50,000 2,406,250
Tax, computer & personal services
Freddie Mac ...................................... 172,400 10,818,100
Provides residential mortgage funds -------------
13,224,350
-------------
54,518,283
-------------
PUBLIC UTILITIES--3.0%
Electric-2.5%
Ameren Corp. ..................................... 38,110 1,474,381
Holding co.: Central IL Public Service
MidAmerican Energy Holdings, Inc. ................ 163,700 5,269,094
National electricity supplier -------------
6,743,475
-------------
Telephone-0.5%
GTE Corp. ........................................ 20,000 1,338,750
Telephone holding company; -------------
manufacturing
8,082,225
-------------
SCIENCE & TECHNOLOGY--13.8%
Computers-6.7%
3COM Corp.* ...................................... 35,000 914,375
Supplier of local area networks, wide
area networks and other network products
Shares Value
------ -----
Automatic Data Processing, Inc. .................. 116,200 $ 5,170,900
Computer services
Cisco Systems, Inc.* ............................. 50,200 5,725,938
Manufacture computer network products
Computer Associates International, Inc. .......... 39,700 1,694,694
Software programming and developing
information systems
Gateway 2000, Inc.* .............................. 42,600 2,819,587
Personal computer manufacturer
Texas Instruments, Inc. .......................... 19,900 2,032,287
Diversified computer and electronics -------------
manufacturer
18,357,781
-------------
Electronics-0.4%
Arrow Electronics, Inc.* ......................... 58,900 1,071,243
Distributes electronic components -------------
Telecommunications-6.7%
Alltel Corp. ..................................... 13,400 903,662
Producer of wireline and wireless
telecommunication services
Comcast Corp.-Special Cl. A ...................... 81,300 5,340,394
Cable TV/sound communications
systems
Cox Communications, Inc. Cl. A* .................. 20,000 1,587,500
Cable TV/communications services
MediaOne Group, Inc.* ............................ 59,800 4,877,438
Cable TV/communications services
NTL, Inc.* ....................................... 45,333 3,456,641
Telecommunications services
Sprint Corp. (FON Group) ......................... 21,400 2,194,838
Producer of telecommunication services -------------
18,360,473
-------------
37,789,497
-------------
TRANSPORT &
SERVICE--2.6%
Railroads-2.6%
Burlington Northern Santa Fe Corp. ................ 197,100 7,218,787
Railroad systems operations in U.S. -------------
MISCELLANEOUS--6.8%
Diversified-5.9%
Berkshire Hathaway, Inc. Cl. A .................... 76 5,806,400
Insurance, cleaning, dairy products, etc.
Loews Corp. ....................................... 20,000 1,463,750
Tobacco; hotel; insurance subsidiary
Tyco International, Ltd. .......................... 107,900 8,766,875
Fire protection systems: cable, solar -------------
16,037,025
-------------
Limited Partnership-Timber-0.5%
Plum Creek Timber Co. LP .......................... 50,000 1,446,875
Lumber and wood products -------------
Real Estate Investment Trust-0.4%
General Growth Properties, Inc. ................... 30,000 1,104,375
Real estate investment trust -------------
18,588,275
-------------
Total Common Stocks
(cost $168,030,521) ............................. 256,458,140
-------------
See notes to financial statements.
<PAGE>
Shares Value
------ -----
CONVERTIBLE
PREFERRED STOCK--1.1%
(cost $1,108,393)
Airtouch Communications, Inc. Cl. B
Cv. Pfd. 6.000% .............................. 40,728 $ 3,085,146
Wireless communications services -------------
Principal
Amount
------
U.S. GOVERNMENT
AGENCIES--0.4%
(amortized cost $982,466)
Federal National Mortgage Association
7.400%, 07/01/04 .............................. $ 1,000,000 1,075,443
Principal
Amount Value
------ -----
CORPORATE BONDS--0.9%
BankAmerica Corp.
5.875%, 02/15/09 .............................. $ 1,000,000 $ 962,500
National Rural Utilities Cooperative
Financial Corp. 5.000%, 10/01/02 .............. 1,500,000 1,466,250
-------------
Total Corporate Bonds
(amortized cost $2,465,784) ................... 2,428,750
-------------
TOTAL INVESTMENTS--96.4%
(cost $172,587,164) ........................... 263,047,479
-------------
Cash And Other Assets
Net of Liabilities--3.6% ...................... 9,770,610
-------------
NET ASSETS--100.0% $272,818,089
-------------
-------------
* Non-income producing
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
DLJ Winthrop Growth and Income Fund
Shares Value
------ -----
COMMON STOCKS--99.9%
BASIC MATERIALS--5.6%
Chemicals-4.8%
Cambrex Corp. ................................... 145,800 $3,736,125
Producer of specialty chemicals
Dexter Corp. .................................... 50,000 2,053,125
Specialty materials producer
Hanna (M.A.) Co. ................................ 297,300 4,812,544
Specialty chemicals, polymers -------------
10,601,794
-------------
Paper-0.8%
Longview Fibre Co. .............................. 135,000 1,755,000
Manufacturer of timber and paper -------------
products
12,356,794
-------------
CAPITAL GOODS/
CONSTRUCTION--12.2%
Aerospace-3.3%
AAR Corp. ....................................... 125,000 2,375,000
Manufacturer of various aerospace parts
Teleflex, Inc. .................................. 116,000 5,053,250
Aerospace controls; medical products -------------
7,428,250
-------------
Building & Construction-6.2%
Applied Power, Inc. Cl. A. ...................... 125,900 3,973,719
Manufactures hydraulic industrial/
construction equipment materials
Carlisle Companies, Inc. ........................ 98,800 4,841,200
Manufactures rubber, plastic, metal
products
Lydall, Inc. .................................... 190,400 1,713,600
Engineered fiber materials
Osmonics, Inc.* ................................. 4,150 39,166
Reverse osmosis/ultrafiltration
RPM, Inc., Ohio ................................. 230,937 3,247,552
Manufactures protective coatings used -------------
in waterproofing and corrosion control
13,815,237
-------------
Electrical Equipment-2.7%
Ametek, Inc. .................................... 139,000 3,170,937
Manufactures instruments/electric
motors
Woodhead Industries, Inc. ....................... 197,800 2,769,200
Electrical specialty products -------------
5,940,137
-------------
27,183,624
-------------
CONSUMER CYCLICAL--18.7%
Auto Related-3.8%
Modine Manufacturing Co. ......................... 132,300 4,134,375
Auto parts: heating, air-conditioning
Myers Industries, Inc. ........................... 191,124 4,324,180
Tire service/plastic products -------------
8,458,555
-------------
Food Service/Lodging-4.2%
Marcus Corp. ..................................... 269,975 3,357,814
Hotels, restaurants, theaters
Sbarro, Inc. ..................................... 71,800 1,880,263
Italian fast food restaurant
Universal Foods Corp. ............................ 191,800 4,027,800
Specialty products: yeast, cheese -------------
9,265,877
-------------
Household Furniture/Appliances-2.5%
Chromcraft Revington, Inc.* ..................... 221,600 3,393,250
Designs/manufactures furniture
HON Industries, Inc. ............................ 82,000 2,214,000
Manufacturer of office furniture/ -------------
home building products
5,607,250
-------------
Shares Value
------ -----
Printing & Publishing-6.2%
American Business Products, Inc. ................ 116,600 $ 1,785,437
Business forms and supplies
Banta Corp. ..................................... 132,250 2,818,578
Printing/graphic/video services
Harte Hanks, Inc. ............................... 50,000 1,262,500
Media company specializing in
direct marketing and advertising
Lee Enterprises, Inc. ........................... 141,200 4,041,850
Newspaper publishing: radio, TV
Meredith Corp. .................................. 108,000 3,962,250
Publishing, broadcasting, real estate -------------
& cable TV
13,870,615
-------------
Retail-General-2.0%
General Nutrition Companies, Inc.* .............. 70,000 1,159,375
Nationwide specialty retailer of
vitamins, minerals and nutritional
supplements
Lands' End, Inc. ................................ 30,000 1,147,500
Direct merchant of clothing
accessories, domestics, and luggage
Michael's Stores, Inc. .......................... 49,000 1,108,625
Direct merchant of creative art
products and home decor items
Zale Corp. ...................................... 29,000 1,096,563
Retail-fine jewelry -------------
4,512,063
-------------
41,714,360
-------------
CONSUMER STAPLES--9.9%
Drugs-1.7%
Jones Pharma, Inc. .............................. 50,000 1,606,250
Manufacturer of specialty
pharmaceutical products
West Co., Inc. .................................. 64,100 2,119,306
Pharmaceutical packaging -------------
3,725,556
-------------
Hospital Supplies & Services-5.3%
Arrow International, Inc. ....................... 126,000 2,835,000
Manufacturer of medical products
Bard (C.R.), Inc. ............................... 44,000 2,156,000
Hospital, surgical specialties
Beckman Instruments, Inc. ....................... 67,600 3,257,475
Manufactures laboratory instruments
Invacare Corp. .................................. 156,700 3,623,687
Medical equipment for home -------------
health-care products
11,872,162
-------------
Retail-food & Drugs-2.9%
Hannaford Brothers Co. .......................... 45,600 1,989,300
Retail: food/supermarkets
Ruddick Corp. ................................... 247,700 4,381,194
Food supermarkets; thread/yarn -------------
6,370,494
-------------
21,968,212
-------------
ENERGY--5.3%
Oil-Domestic-2.2%
Helmerich & Payne, Inc. ......................... 170,000 4,377,500
Contract driller: oil & gas production
KN Energy, Inc. ................................. 26,700 550,688
Natural gas, mineral resources -------------
4,928,188
-------------
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (continued)
- -----------------------------------------------------------------------------
DLJ Winthrop Small Company Value Fund
Shares Value
---------- ------------
Oil-Supplies &Construction-3.1%
BJ Services Co. ................................. 30,000 $ 802,500
Oil & gas well pressure pumping
service
Newpark Resources, Inc.* ........................ 250,000 2,296,875
Provider of integrated oil and gas
field services
Tidewater, Inc. ................................. 49,100 1,301,150
Offshore service vessels
Varco International, Inc.* ...................... 220,000 2,488,750
Provider of natural resources ------------
exploration equipment
6,889,275
------------
11,817,463
------------
Financial--22.1%
Banks-11.4%
CCB Financial Corp. ............................. 64,000 3,696,000
Commercial banking: NC, SC
Cullen/Frost Bankers, Inc. ...................... 66,000 3,559,875
Commercial banking: TX
First American Corp. of Tennessee ............... 103,700 4,024,856
Commercial banking: TN
FirstMerit Corp. ................................ 180,000 5,006,250
Commercial banking: OH
First Virginia Banks, Inc. ...................... 42,300 2,112,356
Commercial banking: VA
People's Bank, Inc. ............................. 155,000 4,882,500
Commercial banking: CT
Sovereign Bancorp, Inc. ......................... 157,000 2,139,125
Commercial banking: PA, DE, NJ, NY ------------
& MD
25,420,962
------------
Insurance-10.7%
Executive Risk, Inc. ............................ 20,000 1,435,000
Underwrites liability insurance
HSB Group, Inc. ................................. 114,950 4,353,731
Insurance/engineering
Horace Mann Educators Corp. ..................... 122,000 2,775,500
Insurance holding: property, casualty,
life
NAC Re Corp. .................................... 80,300 4,376,350
Holding co.: reinsurance
Poe & Brown, Inc. ............................... 96,900 3,167,419
General insurance agency
Protective Life Corp. ........................... 132,200 5,180,587
Financial service provider
ReliaStar Financial Corp. ....................... 70,000 2,572,500
Insurance/financial services ------------
23,861,087
------------
49,282,049
------------
Public Utilities--6.4%
Electricity-2.2%
MidAmerican Energy Holdings, Inc.* .............. 110,000 3,540,625
Electric power supplier
Niagara Mohawk Holdings, Inc. ................... 110,000 1,471,250
Electric power supplier ------------
5,011,875
------------
Gas-4.2%
National Fuel Gas Co. ........................... 99,600 4,357,500
Natural gas utility holding company
WICOR, Inc. ..................................... 208,800 4,932,900
Utility holding: Wisconsin gas ------------
9,290,400
------------
14,302,275
------------
<PAGE>
Shares Value
---------- ------------
Technology--9.4%
Electronics-9.4%
Artesyn Technologies, Inc.* ..................... 127,000 $2,286,000
Manufactures computer components
Dallas Semiconductor Corp. ...................... 98,000 4,165,000
Manufactures high-performance
circuits
DII Group, Inc.* ................................ 58,000 1,798,000
Manufacturer of electronic components
Electro Scientific Industries, Inc. ............. 78,000 2,973,750
Manufactures electronic components
Methode Electronics, Inc. Cl. A ................. 251,650 3,743,294
Electronic component devices
Pioneer Standard Electronics, Inc. .............. 274,450 2,298,519
Distributor: electronic components
Technitrol, Inc. ................................ 90,600 2,650,050
Manufactures electronic and
metallurgical components
Teradyne, Inc. .................................. 22,000 1,038,125
Manufacturer of automatic test ------------
equipment for electronic and
computer industries
20,952,738
------------
Transport & Service--4.8%
Professional Services-2.3%
Jacobs Engineering Group, Inc.* ................. 71,650 2,825,697
Provides engineering and consulting
services, construction management and
process plant maintenance services
Keane, Inc.* .................................... 83,900 2,081,769
Provides management and information ------------
technology consulting
4,907,466
------------
Trucking & Shipping-1.8%
Werner Enterprises, Inc. ........................ 206,750 3,979,938
Motor carrier: general freight ------------
Waste Management Services-0.7%
Tetra Tech, Inc.* ............................... 63,100 1,526,231
Waste management ------------
10,413,635
------------
Miscellaneous--5.5%
Diversified-4.3%
AptarGroup, Inc. ................................ 146,600 4,104,800
Manufacturer of packaging
components: pumps, valves
Brady (W.H.) Cl. A .............................. 112,700 2,916,112
Manufactures adhesives & coatings
Federal Signal Corp. ............................ 100,000 2,475,000
Special trucks, tools, signals ------------
9,495,912
------------
Real Estate Investment Trust-1.2%
Highwoods Properties, Inc. ...................... 50,000 1,287,500
Real Estate Investment Trust
Liberty Property Trust ......................... 57,000 1,375,125
Real Estate Investment Trust ------------
2,662,625
------------
12,158,537
------------
Total Common Stocks
(cost $168,309,830) ........................... 222,149,687
------------
TOTAL INVESTMENTS--99.9%
(cost $168,309,830) ........................... 222,149,687
------------
Cash and Other Assets
Net of Liabilities--0.1% ...................... 219,073
------------
Net Assets--100.0% .............................. 222,368,760
------------
* Non-income producing
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (continued)
- -----------------------------------------------------------------------------
DLJ Winthrop Fixed Income Fund
Principal
Amount Value
---------- ------------
U.S. TREASURY
SECURITIES--18.3%
United States Treasury Bonds
9.375%, 02/15/06 .............................. $1,500,000 $1,833,904
United States Treasury Notes
7.750%, 01/31/00 .............................. 1,000,000 1,021,100
8.000%, 05/15/01 .............................. 1,150,000 1,213,606
7.500%, 11/15/01 .............................. 3,200,000 3,377,155
6.130%, 12/01/01 .............................. 8,000,000 8,192,935
6.250%, 08/31/02 .............................. 2,000,000 2,060,133
6.250%, 02/15/03 .............................. 1,000,000 1,034,539
5.875%, 11/15/05 .............................. 4,500,000 4,626,221
5.625%, 02/15/06 .............................. 2,500,000 2,532,800
6.125%, 08/15/07 .............................. 500,000 522,556
United States Treasury Strip
11/15/2008 .................................... 10,500,000 6,178,943
------------
Total U.S. Treasury Securities
(cost $32,395,363) ............................ 32,593,892
------------
U.S. GOVERNMENT
AGENCY SECURITIES--21.5%
Federal Farm Credit Bank
5.720%, 04/13/05 .............................. 5,000,000 5,004,785
Federal Home Loan Bank
5.625%, 03/19/01 .............................. 2,400,000 2,412,755
8.750%, 10/01/01 .............................. 2,491 2,560
5.625%, 03/28/02 .............................. 5,000,000 4,973,986
5.125%, 09/15/03 .............................. 4,250,000 4,172,455
7.360%, 07/01/04 .............................. 6,000,000 6,442,056
6.000%, 06/11/08 .............................. 5,000,000 4,999,630
Federal Home Loan Mortgage Corp.
7.740%, 06/01/04 .............................. 1,000,000 1,001,884
6.000%, 07/19/04 .............................. 2,000,000 1,980,445
6.875%, 11/22/06 .............................. 500,000 513,157
Federal National Mortgage Assn.
5.375%, 03/15/02 .............................. 1,000,000 1,000,062
8.250%, 10/12/04 .............................. 600,000 607,599
8.400%, 10/25/04 .............................. 650,000 659,390
8.500%, 02/01/05 .............................. 1,000,000 1,016,687
6.950%, 11/13/06 .............................. 1,000,000 1,028,072
6.700%, 06/19/07 .............................. 2,355,000 2,462,680
------------
Total U.S. Government Agency Securities
(cost $38,349,823) ............................ 38,278,203
------------
U.S. GOVERNMENT AGENCY MORTGAGE
BACKED SECURITIES--5.6%
Federal National Mortgage Assn.
Pool #312088 7.000%, 06/01/02 ................. 696,541 701,329
Pool #76368 9.250%, 09/01/03 .................. 42,588 44,784
Pool #76378 9.250%, 09/01/03 .................. 102,942 108,251
8.000%, 07/01/07 .............................. 889,010 919,848
Pool #035574 8.750%, 10/01/08 ................. 167,767 178,828
12.000%, 12/01/08 ............................. 292,619 333,583
Pool #243876 9.000%, 01/01/09 ................. 220,269 235,963
Pool #270674 9.000%, 09/01/17 ................. 530,167 562,640
Pool #224635 9.000%, 09/01/20 ................. 154,040 163,475
9.500%, 02/01/21 .............................. 76,025 81,609
Pool #124211 7.410%, 12/01/21 ................. 1,355,221 1,376,396
9.000%, 02/01/23 .............................. 598,203 634,843
<PAGE>
Principal
Amount Value
---------- ------------
Federal Home Loan Mortgage Corp
Pool #90350 7.000%, 07/01/99 .................. $ 985,523 $ 988,289
Pool #260499 10.000%, 04/01/16 ................ 14,540 15,798
Pool #292065 8.500%, 04/01/17 ................. 2,264,331 2,404,437
Pool #606523 7.721%, 10/01/19 ................. 1,040,028 1,067,329
Government National Mortgage Assn.
Pool #93401 9.500%, 01/15/10 .................. 139,948 150,094
Pool #058985 11.000%, 07/15/13 ................ 17,868 19,828
Pool #068764 12.000%, 09/15/13 ................ 25,663 29,175
Pool #296254 9.500%, 09/15/20 ................. 4,770 5,144
------------
Total U.S. Government Agency Mortgage
Backed Securities
(cost $9,940,035) ............................. 10,021,643
------------
Total U.S. Government Obligations
(cost $80,685,221) ............................ 80,893,738
------------
CORPORATE BONDS--33.0%
Consumer Products & Services-3.6%
Anheuser Busch Cos.
7.000%, 09/01/05 .............................. 1,500,000 1,530,000
Coca-Cola Enterprises Co.
7.000%, 10/01/26 .............................. 500,000 526,250
6.700%, 10/15/36 .............................. 4,100,000 4,289,625
------------
6,345,875
------------
Diversified Finance-10.3%
American General Finance Corp.
7.250%, 04/15/00 .............................. 4,300,000 4,373,681
Associates Corp.
6.000%, 06/15/01 .............................. 3,400,000 3,400,000
5.875%, 07/15/02 .............................. 1,000,000 1,000,000
CIT Group, Inc.
5.550%, 10/15/01 .............................. 4,000,000 3,980,000
Commercial Credit Co.
7.875%, 07/15/04 .............................. 1,000,000 1,073,750
General Motors Acceptance Corp.
6.625%, 10/01/02 .............................. 500,000 510,625
Household Finance Co.
6.000%, 05/01/04 .............................. 2,000,000 1,992,500
Norwest Financial, Inc.
6.550%, 12/01/06 .............................. 2,000,000 2,022,500
------------
18,353,056
------------
Bank & Brokerage-5.3%
J.P. Morgan & Co.
5.750%, 02/25/04 .............................. 5,500,000 5,438,125
Merrill Lynch & Co.
6.550%, 08/01/04 .............................. 2,500,000 2,543,750
Morgan Stanley Corp.
6.875%, 03/01/07 .............................. 500,000 513,125
Salomon Smith Barney Holdings Corp.
6.250%, 05/15/03 .............................. 1,000,000 1,007,500
------------
9,502,500
------------
Telephone-6.3%
AT&T Corp.
6.000%, 03/15/09 .............................. 8,500,000 8,308,750
BellSouth Corp.
6.000%, 06/15/02 .............................. 1,000,000 1,006,250
MCI Communications Corp.
6.125%, 04/15/02 .............................. 2,000,000 2,010,000
------------
11,325,000
------------
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (continued)
- --------------------------------------------------------------------------------
DLJ Winthrop Fixed Income Fund
Principal
Amount Value
--------- -----
Utilities-3.5%
National Rural Utilities Cooperative
Finance Corp.
6.130%, 05/15/05 .............................. $ 1,000,000 $ 1,006,250
7.300%, 09/15/06 .............................. 1,000,000 1,077,500
Oklahoma Gas & Electric Co.
6.500%, 07/15/17 .............................. 4,000,000 4,140,000
------------
6,223,750
------------
Oil & Gas Drilling-1.2%
Consolidated Natural Gas Co.
6.875%, 10/15/26 .............................. 2,000,000 2,102,500
------------
Office Equipment-2.8%
Xerox Corp.
6.250%, 11/15/26 .............................. 5,000,000 5,056,250
------------
Total Corporate Bonds
(cost $58,729,557) ............................ 58,908,931
------------
ASSET BACKED
SECURITIES--13.3%
Chemical Master Credit Card Trust
5.550%, 09/15/03 .............................. 4,000,000 3,996,668
Fleet Credit Card Master Trust
6.050%, 08/01/03 .............................. 5,000,000 5,014,579
Ford Credit Auto Owner Trust
5.650%, 10/15/01 .............................. 4,000,000 4,006,416
Principal
Amount Value
--------- -----
MBNA Master Credit Card Trust
6.450%, 02/15/08 .............................. $ 5,000,000 $ 5,133,349
Sears Credit Account Master Trust
Series 1995-2
8.100%, 06/15/04 .............................. 1,312,500 1,341,835
Standard Credit Card Master Trust
8.250%, 11/07/03 .............................. 4,000,000 4,242,967
------------
Total Asset Backed Securities
(cost $23,737,426) ............................ 23,735,814
------------
COMMERCIAL PAPER--5.7%
Daimler Chrysler AG
4.490%, 05/05/99 .............................. 9,096,000 9,091,118
Merrill Lynch & Co.
4.820%, 05/05/99 .............................. 1,085,000 1,084,419
------------
Total Commercial Paper
(amortized cost $10,175,537) .................. 10,175,537
------------
TOTAL INVESTMENTS--97.4
(cost $173,327,741) ........................... 173,714,020
------------
Cash and Other Assets
Net of Liabilities--2.6% ...................... 4,559,987
------------
NET ASSETS--100.0% .............................. $178,274,007
============
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Statement of Investments April 30, 1999 (unaudited)
- -------------------------------------------------------------------------------
DLJ Winthrop Municipal Trust Fund
Principal
Amount Value
--------- -----
MUNICIPAL
BONDS--99.5%
Arizona-2.8%
Chandler, Arizona Street & Highway
Revenue
6.900%, 07/01/14 .............................. $ 1,000,000 $ 1,147,500
------------
Colorado-4.2%
Denver, Colorado City &
County Airport
6.750%, 11/15/22 .............................. 1,580,000 1,704,425
------------
Georgia-2.7%
Georgia State Ser. B
5.500%, 07/01/10 .............................. 1,000,000 1,095,000
------------
Illinois-5.6%
Chicago, Illinois Metropolitan Water
Reclamation District
5.750%, 12/01/01 .............................. 1,000,000 1,052,500
7.000%, 01/01/11 .............................. 1,000,000 1,207,530
------------
2,260,030
------------
Indiana-2.8%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05 .............................. 1,000,000 1,121,250
------------
Iowa-2.6%
Iowa Student Loan Liquidation Corp.
6.800%, 03/01/05 .............................. 1,000,000 1,066,250
------------
Massachusetts-4.0%
Massachusetts Bay Transportation Authority
Ser. C
5.500%, 03/01/09 .............................. 1,500,000 1,631,250
------------
Michigan-5.8%
Michigan State Municipal Bond Authority
5.000%, 10/01/06 .............................. 2,265,000 2,378,250
------------
New York-8.0%
New York City, New York Ser. G
5.750%, 02/01/08 .............................. 1,000,000 1,090,000
New York State Dormitory Authority
Revenue
6.500%, 05/15/06 .............................. 1,000,000 1,133,750
5.000%, 07/01/06 .............................. 1,000,000 1,051,250
------------
3,275,000
------------
Ohio-2.6%
Ohio State Water Development
Authority Revenue
5.750%, 06/01/04 .............................. 1,000,000 1,076,250
------------
Oklahoma-4.3%
Grand River Dam Authority, Oklahoma
6.250%, 06/01/11 .............................. 1,500,000 1,745,625
------------
Pennsylvania-2.6%
Pennsylvania Intergovernmental Cooperative
Authority
5.000%, 06/15/09 .............................. 1,000,000 1,043,750
------------
Principal
Amount Value
--------- -----
Puerto Rico-5.4%
Puerto Rico Commonwealth Refunding
5.100%, 07/01/02 .............................. $ 1,000,000 $ 1,041,250
Puerto Rico Electric Power Authority
Revenue
6.000%, 07/01/11 .............................. 1,000,000 1,142,500
------------
2,183,750
------------
Tennessee-2.7%
Memphis, Tennessee Electric System
6.000%, 01/01/05 .............................. 1,000,000 1,095,000
------------
Texas-33.1%
Dallas, Texas Refunding & Improvement
4.000%, 02/15/04 .............................. 2,000,000 2,005,000
Fort Worth, Texas Higher Education
5.000%, 03/15/11 .............................. 1,000,000 1,022,500
Houston, Texas Revenue
5.000%, 03/01/05 .............................. 2,000,000 2,090,000
Lewisville, Texas Independent
School District
6.000%, 08/15/01 .............................. 1,000,000 1,051,250
Plano, Texas Independent
School District
6.000%, 02/15/05 .............................. 2,000,000 2,192,500
Port Authority of Houston, Texas
5.380%, 10/01/05 .............................. 1,275,000 1,364,250
San Antonio, Texas Electric & Gas
5.000%, 02/01/12 .............................. 1,000,000 1,033,750
Texas State Ser. B
5.000%, 10/01/01 .............................. 1,500,000 1,548,750
Texas State Refunding Ser. A
6.000%, 10/01/08 .............................. 1,000,000 1,127,500
------------
13,435,500
------------
Utah-2.6%
Utah State Ser. A
5.000%, 07/01/05 .............................. 1,000,000 1,056,250
------------
Washington-2.6%
Washington State Public Power Supply
7.100%, 07/01/00 .............................. 1,000,000 1,040,000
------------
Wisconsin-5.1%
Wisconsin State Public Power Supply
5.000%, 06/01/06 .............................. 2,000,000 2,090,000
------------
TOTAL INVESTMENTS--99.5%
(cost $39,294,128) ............................ 40,445,080
------------
Cash and Other Assets
Net of Liabilities--0.5% ...................... 192,403
------------
NET ASSETS--100.0% .............................. $ 40,637,483
============
See notes to financial statements.
<PAGE>
DLJ WINTHROP FOCUS FUNDS--STATEMENT OF ASSETS AND LIABILITIES April 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 $92,614,461, $172,587,164,
$168,309,830, $173,327,741, and
$39,294,128, respectively) ......................... $152,725,116 $263,047,479 $222,149,687 $173,714,020 $40,445,080
Cash ................................................ 1,307 10,013,967 -- 2,475,121 5,785
Receivable for investment
securities sold .................................... -- -- 1,121,991 -- --
Receivable for capital stock sold ................... 375,874 79,444 262,058 -- --
Dividends and interest receivable ................... 97,476 235,069 108,757 2,148,082 559,364
Reimbursement due from advisor ...................... -- -- -- 93,269 --
Other assets ........................................ -- -- -- -- 17,079
------------ ------------ ------------ ----------- -----------
Total assets ........................................ 153,199,773 273,375,959 223,642,493 178,430,492 41,027,308
------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable to investment advisor ....................... 82,737 103,740 141,647 -- 6,359
Payable to distributor .............................. 52,121 75,585 64,778 15,634 11,155
Payable for capital stock redeemed .................. 89,982 213,663 502,586 99,010 348,600
Cash overdraft due to custodian ..................... -- -- 358,775 -- --
Dividends payable ................................... -- -- -- 41,314 23,711
Accrued expenses and other liabilities .............. 103,161 164,882 205,947 527 --
------------ ------------ ------------ ------------ -----------
Total liabilities ................................... 328,001 557,870 1,273,733 156,485 389,825
------------ ------------ ------------ ------------ -----------
NET ASSETS ............................................... $152,871,772 $272,818,089 $222,368,760 $178,274,007 $40,637,483
============ ============ ============ ============ ===========
NET ASSETS CONSIST OF:
Capital paid-in ..................................... $81,485,783 $178,436,656 $150,991,576 $177,997,149 $39,074,819
Accumulated undistributed net investment
income (loss) ...................................... (147,822) 499,274 197,811 218 --
Accumulated (distributions in excess of) net
realized gain on investments ....................... 11,423,156 3,421,844 17,339,516 (109,639) 411,712
Net unrealized appreciation
on investments .................................... 60,110,655 90,460,315 53,839,857 386,279 1,150,952
------------ ------------ ------------ ------------ -----------
$152,871,772 $272,818,089 $222,368,760 $178,274,007 $40,637,483
============ ============ ============ ============ ===========
CLASS A SHARES:
Net assets .......................................... $126,005,881 $179,847,761 $201,834,840 $ 44,165,770 $39,274,470
============ ============ ============ ============ ===========
Shares outstanding .................................. 6,312,944 7,579,832 9,889,140 4,377,294 3,754,872
============ ============ ============ ============ ===========
Net asset value and redemption
value per share ................................... $19.96 $23.73 $20.41 $10.09 $10.46
====== ====== ====== ====== ======
Maximum offering price per share
(net asset value plus sales charge--Note A) ....... $20.96 $24.91 $21.43 $10.59 $10.98
====== ====== ====== ====== ======
CLASS B SHARES:
Net assets .......................................... $ 26,865,891 $ 40,617,816 $ 20,533,920 $ 5,490,245 $ 1,363,013
============ ============ ============ ============ ===========
Shares outstanding .................................. 1,373,366 1,718,215 1,021,998 544,088 130,333
============ ============ ============ ============ ===========
Net asset value and offering price
per share ......................................... $19.56 $23.64 $20.09 $10.09 $10.46
====== ====== ====== ====== ======
CLASS D SHARES:
Net assets .......................................... $ 52,352,512 $128,617,992
============ ============
Shares outstanding .................................. 2,206,174 12,747,076
============ ============
Net asset value and offering price
per share ........................................ $23.73 $10.09
====== ======
</TABLE>
See notes to financial statements.
<PAGE>
DLJ WINTHROP FOCUS FUNDS--STATEMENT OF OPERATIONS for the period ended
April 30, 1999+
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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 .......................................... $ 685,830 $ 1,564,476 $ 1,969,585 $ -- $ --
Interest ........................................... 68,006 131,527 98,490 1,521,864 994,403
------------ ------------ ------------ ----------- ----------
Total investment income ........................... 753,836 1,696,003 2,068,075 1,521,864 994,403
------------ ------------ ------------ ----------- ----------
EXPENSES:
Investment advisory fees (Note B) .................. 455,826 609,446 940,383 161,579 136,040
Distribution fees - Class A (Note B) ............... 167,168 254,958 329,271 69,097 68,119
Distribution fees - Class B (Note B) ............... 106,481 183,074 109,508 28,204 7,193
Transfer agent fees ................................ 62,000 93,000 135,000 29,000 25,000
Custodian fees ..................................... 36,000 54,000 65,000 29,000 28,000
Registration fees .................................. 23,000 28,000 26,000 15,000 18,000
Printing fees ...................................... 12,000 19,000 20,000 5,000 5,000
Legal fees ......................................... 8,000 18,000 13,000 4,000 4,000
Auditing fees ...................................... 9,000 11,000 13,000 4,000 5,000
Trustees' fees ..................................... 7,000 9,000 9,000 4,000 5,000
Miscellaneous ...................................... 15,183 11,984 15,373 4,397 3,407
------------ ------------ ------------ ----------- -----------
Total expenses .................................... 901,658 1,291,463 1,675,535 353,277 303,759
Less expenses reimbursed by
investment advisor (Note B) ..................... -- -- -- (75,007) (81,060)
------------ ------------ ------------ ----------- -----------
Net expenses ...................................... 901,658 1,291,463 1,675,535 278,270 222,699
------------ ------------ ------------ ----------- -----------
NET INVESTMENT INCOME (LOSS) ............................ (147,822) 404,540 392,540 1,243,594 771,704
------------ ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAIN ON
INVESTMENTS--NOTE C:
Net realized gain on investments ................... 11,477,557 3,583,247 17,350,933 33,288 404,292
Net change in unrealized appreciation
on investments ................................... 15,092,946 25,800,237 (7,402,184) (1,392,580) (697,835)
------------ ------------ ------------ ----------- -----------
Net realized and unrealized gain (loss)
on investments .................................. 26,570,503 29,383,484 9,948,749 (1,359,292) (293,543)
------------ ------------ ------------ ----------- -----------
NET INCREASE IN NET ASSETS FROM OPERATIONS .............. $ 26,422,681 $ 29,788,024 $ 10,341,289 $ (115,698) $ 478,161
============ ============ ============ =========== ===========
</TABLE>
+ Unaudited.
See notes to financial statements.
<PAGE>
DLJ 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 04/30/99+ 10/31/98 ENDED 04/30/99+ 10/31/98
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) $ (147,822) $ (124,593) $ 404,540 $ 1,551,995
Net realized gain on investments 11,477,557 2,384,117 3,583,247 19,617,176
Net change in unrealized appreciation on investments 15,092,946 17,170,311 25,800,237 10,161,862
------------ ------------ ------------ ------------
Net increase in net assets from operations 26,422,681 19,429,835 29,788,024 31,331,033
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A -- (101,689) (432,823) (1,262,477)
Class B -- -- (16,860) (27,525)
Realized gains on investments:
Class A (1,523,410) (5,154,757) (14,556,598) (7,513,780)
Class B (279,678) (680,240) (3,003,060) (1,134,914)
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders (1,803,088) (5,936,686) (18,009,341) (9,938,696)
------------ ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D 13,735,414 7,719,245 63,778,826 10,617,782
------------ ------------ ------------ ------------
Total increase in net assets 38,355,007 21,212,394 75,557,509 32,010,119
NET ASSETS:
Beginning of period 114,516,765 93,304,371 197,260,580 165,250,461
------------ ------------ ------------ ------------
End of period (including undistributed net investment
income of $499,274 and $544,417 for the Growth and
Income Fund at 04/30/99 and 10/31/98, respectively) $152,871,772 $114,516,765 $272,818,089 $197,260,580
============ ============ ============ ============
<CAPTION>
SMALL COMPANY VALUE FUND FIXED INCOME FUND
---------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/99+ 10/31/98 ENDED 04/30/99+ 10/31/98
-------------- ------------ -------------- ------------
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income $ 392,540 $ 738,561 $ 1,243,594 $ 2,878,129
Net realized gain on investments 17,350,933 112,417 33,288 1,056,920
Net change in unrealized appreciation
on investments (7,402,184) (34,616,060) (1,392,580) 484,233
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from operations 10,341,289 (33,765,082) (115,698) 4,419,282
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A (852,376) (808,971) (1,125,818) (2,691,416)
Class B -- -- (117,776) (186,495)
Realized gains on investments:
Class A (168,838) (15,177,402) (477,720) --
Class B (16,223) (1,010,450) (58,660) --
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders (1,037,437) (16,996,823) (1,779,974) (2,877,911)
------------ ------------ ----------- ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D (47,091,784) 9,522,839 126,486,287 (5,987,911)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets (37,787,932) (41,239,066) 124,590,615 (4,446,540)
NET ASSETS:
Beginning of period 260,156,692 301,395,758 53,683,392 58,129,932
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $197,811 and $657,647
for the Small Company Value Fund at 04/30/99
and 10/31/98, respectively and $218 for the
Fixed Income Fund at 04/30/99 and 10/31/98) $222,368,760 $260,156,692 $178,274,007 $ 53,683,392
============ ============ ============ ============
</TABLE>
+ Unaudited.
See notes to financial statements.
<PAGE>
DLJ WINTHROP FOCUS FUNDS--STATEMENT OF CHANGES IN NET ASSETS (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
----------------------------
SIX MONTHS YEAR ENDED
ENDED 04/30/99+ 10/31/98
-------------- -----------
<S> <C> <C>
OPERATIONS:
Net investment income .............................. $ 771,704 $ 1,519,223
Net realized gain on investments ................... 404,292 454,476
Net change in unrealized appreciation on investments (697,835) 549,834
------------ ------------
Net increase in net assets from operations ......... 478,161 2,523,533
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FFROM:
Investment income:
Class A ........................................... (751,074) (1,489,223)
Class B ........................................... (20,630) (30,000)
------------ ------------
Total dividends and distributions to shareholders .. (771,704) (1,519,223)
------------ ------------
Capital Stock Transactions--(Net) Note D ................ (4,804,948) 8,307,730
------------ ------------
Total increase (decrease) in net assets ............ (5,098,491) 9,312,040
NET ASSETS:
Beginning of period ................................ 45,735,974 36,423,934
------------ ------------
End of period ...................................... $ 40,637,483 $ 45,735,974
============ ============
</TABLE>
+ Unaudited.
See notes to financial statements.
<PAGE>
DLJ Winthrop Focus Funds--Notes to Financial Statements April 30, 1999
(unaudited)
- --------------------------------------------------------------------------------
Note (A) Significant Accounting Policies. DLJ Winthrop Focus Funds ("DLJ
Winthrop" or "Funds") operates as a series company currently consisting of five
portfolios (the "Portfolios"): DLJ Winthrop Growth Fund, DLJ Winthrop Growth
and Income Fund, DLJ Winthrop Small Company Value Fund, DLJ Winthrop Fixed
Income Fund, and DLJ Winthrop Municipal Trust Fund. DLJ 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").
The investment objective of the DLJ Winthrop Growth Fund and the DLJ Winthrop
Growth and Income Fund is long-term capital appreciation. The DLJ Winthrop
Growth and Income Fund also seeks continuity of income. The investment objective
of the DLJ Winthrop Small Company Value Fund is a high level of growth of
capital. The DLJ 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 DLJ 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.
Each portfolio offers Class A and Class B shares. Effective April 30, 1999, the
Growth and Income Fund and the Fixed Income Fund commenced offering Class D
shares. Effective May 17, 1999, the Growth Fund commenced offering Class D
shares. Class A shares of the Growth Fund, the Growth and Income Fund and the
Small Company Value Fund are sold with a front-end sales charge of up to 5.75%.
Class A shares of the Fixed Income Fund and the Municipal Trust Fund 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. Class D shares are offered exclusively
to employees of DLJ and its subsidiaries who are eligible to participate in the
DLJ 401(k) Retirement Savings Plan. Each class is identical in all respects
except that Class A and Class B bear different distribution service fees and
Class D shares are not subject to any distribution service fees. Class A and
Class B have exclusive voting rights with respect to each class's distribution
plan.
At April 30, 1999, the Municipal Trust Fund had approximately 33% of its net
assets invested in municipal obligations of issuers within the state of Texas.
Economic changes affecting the state and certain of its public bodies and
municipalities may affect the ability of issuers within the state to pay
interest on, or repay principal of, municipal obligations held by the Fund.
The Funds account separately for the assets, liabilities and operations of each
Portfolio. Expenses directly attributable to each Portfolio are charged to that
Portfolio's operations; expenses which are applicable to all Portfolios are
allocated among them on a pro rata basis. 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 DLJ 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>
DLJ Winthrop Focus Funds--Notes to Financial Statements April 30, 1999
(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.
(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.
Note (B) Advisory and Distribution Services Agreement: 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. Under its Advisory Agreement with DLJ Winthrop, the
Advisor will provide investment advisory services and order placement
facilities for DLJ Winthrop and pay all compensation of Trustees of DLJ
Winthrop who are affiliated persons of the Advisor. The Advisor or its
affiliates will also furnish DLJ Winthrop, without charge, management
supervision and assistance and office facilities. DLJ Winthrop will pay the
Advisor at the following annual percentage rates of the average daily net
assets of each Fund: Growth Fund, .750 of 1% of the first $100,000,000, .500 of
1% of the balance; Growth and Income Fund, .750 of 1% of the first $75,000,000,
.500 of 1% of the balance; Small Company Value Fund, .875 of 1% of the first
$100,000,000, .750 of 1% of the next $100,000,000 and .625 of 1% of net assets
in excess of $200,000,000; Fixed Income Fund, .625 of 1% of the first
$100,000,000, .500 of 1% of the balance; and Municipal Trust Fund, .625 of 1%
of the first $100,000,000, .500 of 1% of the balance. Such fees will be accrued
daily and paid monthly.
For the six months ended April 30, 1999, 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. With respect to both Funds, through
October 31, 1999, the Advisor has agreed to a contractual expense limitation to
reduce its management fees or reimburse operating expenses by the amount that
total fund operating expenses exceed .70% of the average daily net assets of
the Class D shares of the Fixed Income Fund, 1.00% of the average daily net
assets of each
<PAGE>
DLJ Winthrop Focus Funds--Notes to Financial Statements April 30, 1999
(continued)
- --------------------------------------------------------------------------------
Fund's Class A shares and 1.70% of the average daily net assets
of each Fund's Class B shares. After October 31, 1999, 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 assumption of expenses, the Advisor
reimbursed the Fixed Income Fund and Municipal Trust Fund $75,007 and $81,060,
respectively, during the six months ended April 30, 1999.
Pursuant to Rule 12b-1 under the Act, DLJ Winthrop has entered into a
Distribution Services Agreement (the "Agreement") with Donaldson, Lufkin &
Jenrette Securities Corporation, DLJ Winthrop's Distributor, under which DLJ
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 DLJ
Winthrop) to finance the distribution of DLJ Winthrop's shares.
Note (C) Investment Transactions: For federal income tax purposes, the cost of
securities owned at April 30, 1999, was substantially the same as the cost of
securities for financial statement purposes. At April 30, 1999, the components
of the net unrealized appreciation on investments were as follows:
<TABLE>
<CAPTION>
Growth Growth and Income Small Company Fixed Income Municipal Trust
Fund Fund Value Fund Fund Fund
----------- ----------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Gross appreciation (investments having an
excess of value over cost)........................... $ 61,341,533 $92,729,649 $57,231,163 $ 581,657 $ 1,167,644
Gross depreciation (investments having an
excess of cost over value)........................... (1,230,878) (2,269,334) (3,391,306) (195,378) (16,692)
------------ ----------- ----------- ------------ ------------
Net unrealized appreciation of
investments.......................................... $ 60,110,655 $90,460,315 $53,839,857 $ 386,279 $ 1,150,952
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
</TABLE>
For the period ended April 30, 1999, total aggregate purchases and sales of
portfolio securities;, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
Growth Growth and Income Small Company Fixed Income Municipal Trust
Fund Fund Value Fund Fund Fund
----------- ----------------- ------------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
Purchases............................................. $46,777,519 $59,825,145 $43,426,963 $138,813,389 $15,110,774
Sales................................................. 34,649,678 22,934,566 72,386,932 26,572,742 21,195,231
------------ ----------- ----------- ------------ -----------
------------ ----------- ----------- ------------ -----------
</TABLE>
<PAGE>
DLJ Winthrop Focus Funds--Notes to Financial Statements
April 30, 1999 (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 AND INCOME FUND
--------------------------------------------------------------
Period Ended
April 30, 1999 Year Ended October 31,
(unaudited) 1998
------------------------------- -----------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Shares sold ............... 423,964 $ 9,362,893 c 644,179 $ 14,182,363
Shares issued through
reinvestment of dividends
and distributions ....... 605,424 12,701,744 360,571 7,446,447
------------ ------------- ------------- ------------
1,029,388 22,064,637 1,004,750 21,628,810
------------ ------------- ------------- ------------
Shares redeemed ........... (704,857) (15,762,172) (996,891) (21,924,317)
------------ ------------- ------------- ------------
Net increase (decrease) ... 324,531 $ 6,302,465 7,859 $ (295,507)
============ ============= ============= ============
Class B
Shares sold ............... 211,583 $ 4,666,342 597,420 $ 13,125,998
Shares issued through
reinvestment of dividends
and distributions ....... 139,760 2,921,665 54,492 1,126,775
------------ ------------- ------------- ------------
351,343 7,588,007 651,912 14,252,773
------------ ------------- ------------- ------------
Shares redeemed ........... (111,033) (2,464,158) (154,355) (3,339,484)
------------ ------------- ------------- ------------
Net increase .............. 240,310 $ 5,123,849 497,557 $ 10,913,289
============ ============= ============= ============
Class D
Shares sold ............... 2,206,174 $ 52,352,512
------------ -------------
Net increase .............. 2,206,174 $ 52,352,512
============ =============
<CAPTION>
GROWTH FUND
----------------------------------------------------------
Period Ended
April 30, 1999 Year Ended October 31,
(unaudited) 1998
----------------------------- --------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Shares sold ............... 670,932 $ 12,635,234 422,109 $ 6,775,100
Shares issued through
reinvestment of dividends
and distributions ....... 79,584 1,318,711 328,321 4,571,899
------------ ------------ ------------ ------------
750,516 13,953,945 750,430 11,346,999
------------ ------------ ------------ ------------
Shares redeemed ........... (312,738) (5,799,915) (570,317) (9,018,140)
------------ ------------ ------------ ------------
Net increase (decrease) ... 437,778 $ 8,154,030 180,113 $ 2,328,859
============ ============ ============ ============
Class B
Shares sold ............... 365,225 $ 6,807,957 405,245 $ 6,311,194
Shares issued through
reinvestment of dividends
and distributions ....... 16,719 272,358 48,496 672,194
------------ ------------ ------------ ------------
381,944 7,080,315 453,741 6,983,388
------------ ------------ ------------ ------------
Shares redeemed ........... (81,490) (1,498,931) (100,834) (1,593,002)
------------ ------------ ------------ ------------
Net increase .............. 300,454 $ 5,581,384 352,907 $ 5,390,386
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
-----------------------------------------------------------------
Period Ended
April 30, 1999 Year Ended October 31,
(unaudited) 1998
------------------------------- -------------------------------
Shares Amount Shares Amount
------ ------ ----- ------
<S> <C> <C> <C> <C>
Class A
Shares sold ............... 219,472 $ 2,246,654 864,157 $ 8,849,660
Shares issued through
reinvestment of dividends
and distributions ....... 122,935 1,256,806 203,755 2,089,567
------------- ------------- ------------- -------------
342,407 3,503,460 1,067,912 10,939,227
------------- ------------- ------------- -------------
Shares redeemed ........... (537,446) (5,481,871) (1,883,198) (19,273,927)
------------- ------------- ------------- -------------
Net increase (decrease) ... (195,039) $ (1,978,411) (815,286) $ (8,334,700)
============= ============= ============= =============
Class B
Shares sold ............... 64,161 $ 658,927 343,505 $ 3,539,007
Shares issued through
reinvestment of dividends
and distributions ....... 16,070 164,349 14,055 144,410
------------- ------------- ------------- -------------
80,231 823,276 357,560 3,683,417
------------- ------------- ------------- -------------
Shares redeemed ........... (95,198) (976,570) (130,535) (1,336,628)
------------- ------------- ------------- -------------
Net increase (decrease) ... (14,967) $ (153,294) 227,025 $ 2,346,789
============= ============= ============= =============
Class D
Shares sold ............... 12,747,076 $ 128,617,992
------------- -------------
Net increase .............. 12,747,076 $ 128,617,992
============= =============
<CAPTION>
SMALL COMPANY VALUE FUND
-----------------------------------------------------------------
Period Ended
April 30, 1999 Year Ended October 31,
(unaudited) 1998
------------------------------- -------------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Shares sold ............... 322,461 $ 6,379,981 1,284,225 $ 27,801,004
Shares issued through
reinvestment of dividends
and distributions ....... 46,274 936,634 687,065 14,965,287
------------- ------------- ------------- -------------
368,735 7,316,615 1,971,290 42,766,291
------------- ------------- ------------- -------------
Shares redeemed ........... (2,654,602) (51,834,029) (1,922,814) (41,663,984)
------------- ------------- ------------- -------------
Net increase (decrease) ... (2,285,867) $ (44,517,414) 48,476 $ 1,102,307
============= ============= ============= =============
Class B
Shares sold ............... 99,452 $ 1,923,714 518,740 $ 11,401,502
Shares issued through
reinvestment of dividends
and distributions ....... 791 15,586 45,728 985,428
------------- ------------- ------------- -------------
100,343 1,939,300 564,468 12,386,930
------------- ------------- ------------- -------------
Shares redeemed ........... (236,886) (4,513,670) (201,585) (3,966,398)
------------- ------------- ------------- -------------
Net increase (decrease) ... (136,643) $ (2,574,370) 362,883 $ 8,420,532
============= ============= ============= =============
==========
</TABLE>
<PAGE>
DLJ Winthrop Focus Funds--Notes to Financial Statements
April 30, 1999 (continued)
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
--------------------------------------------------------------------
Period Ended
April 30, 1999 Year Ended October 31,
(unaudited) 1998
---------------------------------- ----------------------------
Shares Amount Shares Amount
------ ------ ------ ------
<S> <C> <C> <C> <C>
Class A
Shares sold ............... 230,697 $ 2,428,129 1,397,039 $ 14,495,430
Shares issued through
reinvestment of dividends
and distributions ....... 60,145 633,050 118,197 1,231,297
------------ ------------ ------------ ------------
290,842 3,061,179 1,515,236 15,726,727
------------ ------------ ------------ ------------
Shares redeemed ........... (741,739) (7,809.883) (795,577) (8,279,965)
------------ ------------ ------------ ------------
Net increase (decrease) ... (450,897) $ (4,748,704) 719,659 $ 7,446,762
============ ============ ============ ============
Class B
Shares sold ............... 8,003 $ 84,580 82,622 $ 859,779
Shares issued through
reinvestment of dividends
and distributions ....... 1,038 10,923 1,368 14,267
------------ ------------ ------------ ------------
9,041 95,503 83,990 874,046
------------ ------------ ------------ ------------
Shares redeemed ........... (14,476) (151,747) (1,256) (13,078)
------------ ------------ ------------ ------------
Net increase (decrease) ... (5,435) $ (56,244) 82,734 $ 860,968
============ ============ ============ ============
</TABLE>
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for a share of capital stock
outstanding throughout each period presented. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
NET
REALIZED AND NET
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE, NET GAINS OR FROM NET FROM VALUE,
BEGINNING INVESTMENT (LOSSES)ON INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME(LOSS) SECURITIES INCOME GAINS OF PERIOD RETURN++
-------- ------------ ------------ ---------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
<CAPTION>
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $ 16.52 $ (0.010)* $ 3.710 $ 0.000 $ (0.260) $ 19.96 22.72%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 14.56 (0.003)* 2.882 (0.017) (0.902) 16.52 21.00
1997 12.69 0.028 3.065 (0.048) (1.175) 14.56 26.48
1996 11.35 0.053 2.107 (0.038) (0.782) 12.69 20.32
1995 10.82 0.037 1.190 (0.012) (0.685) 11.35 12.21
1994 10.97 0.014 0.435 -- (0.599) 10.82 4.15
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 16.25 (0.074)* 3.644 -- (0.260) 19.56 22.29
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 14.41 (0.115)* 2.857 -- (0.902) 16.25 20.20
1997 12.63 (0.030) 3.016 (0.031) (1.175) 14.41 25.66
1996 11.88 (0.013) 0.763 -- -- 12.63 6.40
<CAPTION>
GROWTH AND INCOME FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $ 22.60 $ 0.113* $ 3.083 $ (0.056) $ (2.010) $ 23.73 15.37%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 20.09 0.202* 3.509 (0.170) (1.031) 22.60 19.14
1997 17.18 0.211 4.588 (0.214) (1.675) 20.09 30.53
1996 14.57 0.266 2.935 (0.241) (0.350) 17.18 22.60
1995 13.38 0.254 1.769 (0.266) (0.567) 14.57 16.10
1994 13.42 0.244 0.358 (0.223) (0.419) 13.38 4.58
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 22.55 (0.010)* 3.120 (0.010) (2.010) 23.64 14.97
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 20.06 0.045* 3.500 (0.024) (1.031) 22.55 18.29
1997 17.15 0.079 4.577 (0.071) (1.675) 20.06 29.59
1996 16.05 0.136 1.109 (0.145) -- 17.15 7.67
<CAPTION>
Class D (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 23.73 -- -- -- -- 23.73 --
<CAPTION>
SMALL COMPANY VALUE FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $ 19.54 $ 0.111* $ 0.846 $ (0.073) $ (0.014) $ 20.41 4.90%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 23.34 0.066* (2.548) (0.063) (1.255) 19.54 (11.20)
1997 18.41 0.073 5.661 (0.081) (0.723) 23.34 32.48
1996 16.61 0.084 2.162 (0.037) (0.409) 18.41 13.80
1995 15.65 0.035 1.621 -- (0.696) 16.61 11.10
1994 16.11 0.105 0.603 (0.026) (1.142) 15.65 4.67
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 19.23 (0.030)* 0.904 -- (0.014) 20.09 4.55
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 23.12 (0.089)* (2.546) -- (1.255) 19.23 (11.98)
1997 18.34 (0.021) 5.576 (0.052) (0.723) 23.12 31.55
1996 17.41 (0.023) 0.953 -- -- 18.34 5.28
<CAPTION>
RATIO OF
RATIO OF NET
NET ASSETS EXPENSES INVESTMENT
END OF TO AVERAGE INCOME (LOSS) PORTFOLIO
PERIOD NET TO AVERAGE TURNOVER
(000 OMITTED) ASSETS NET ASSETS RATE
------------ ----------- ------------- -----------
GROWTH FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $126,006 1.24%(1) (0.11)%(1) 26.4%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 97,078 1.29 (0.02) 21.0
1997 82,926 1.36 0.21 41.1
1996 68,096 1.48 0.47 60.6
1995 55,946 1.63 0.35 101.7
1994 52,455 1.65 0.06 28.2
<CAPTION>
CLASS B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 26,866 1.94(1) (0.81)(1) 26.4
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 17,438 1.99 (0.72) 21.0
1997 10,378 2.06 (0.51) 41.1
1996 3,177 2.17(1) (0.34)(1) 60.6
<CAPTION>
GROWTH AND INCOME FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $179,848 1.12%(1) 1.02% 11.0%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 163,936 1.13 0.92 32.7
1997 145,586 1.22 1.15 19.8
1996 113,803 1.36 1.68 44.0
1995 87,975 1.58 1.94 31.8
1994 67,020 1.64 1.88 25.9
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 40,618 1.82(1) (0.09)(1) 11.0
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 33,325 1.83 0.22 32.7
1997 19,664 1.92 0.39 19.8
1996 6,545 1.99(1) 1.06(1) 44.0
<CAPTION>
Class D (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 52,353 -- -- 11.0
<CAPTION>
SMALL COMPANY VALUE FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $201,835 1.32%(1) 1.17% 18.1%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 237,873 1.29 0.30 41.5
1997 283,001 1.35 0.37 21.1
1996 227,716 1.47 0.48 35.1
1995 202,730 1.64 0.23 25.1
1994 144,624 1.70 (0.04) 31.6
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 20,534 2.02(1) (0.32)(1) 18.1
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 22,284 1.99 (0.40) 41.5
1997 18,395 2.05 (0.32) 21.1
1996 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.
* Based on average shares outstanding.
(1) Annualized
(2) The Funds commenced offering Class B shares on February 28, 1996.
(3) The Growth and Income Fund commenced offering Class D shares on April 30,
1999.
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for a share of capital stock
outstanding throughout each period presented. This information has been
derived from information provided in the financial statements.
<TABLE>
<CAPTION>
NET
REALIZED AND NET
NET ASSET UNREALIZED DIVIDENDS DISTRIBUTIONS ASSET
VALUE, NET GAINS OR FROM NET FROM VALUE,
BEGINNING INVESTMENT (LOSSES)ON INVESTMENT CAPITAL END TOTAL
OF PERIOD INCOME SECURITIES INCOME GAINS OF PERIOD RETURN++
-------- ------------ ------------ ---------- ------------- ---------- --------
FIXED INCOME FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $ 10.46 $ 0.248 $ (0.265) $ (0.248) $ (0.105) $ 10.09 (0.16)%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 10.16 0.531 0.300 (0.531) -- 10.46 8.46
1997 10.07 0.575 0.090 (0.575) -- 10.16 6.84
1996 10.22 0.577 (0.150) (0.577) -- 10.07 4.34
1995 9.66 0.588 0.560 (0.588) -- 10.22 12.23
1994 10.93 0.567 (1.027) (0.567) (0.243) 9.66 (4.37)
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 10.46 0.212 (0.265) (0.212) (0.105) 10.09 (0.52)
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 10.16 0.456 0.300 (0.456) -- 10.46 7.71
1997 10.07 0.504 0.090 (0.504) -- 10.16 6.10
1996 10.22 0.339 (0.150) (0.339) -- 10.07 2.23
<CAPTION>
Class D (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 10.09 -- -- -- -- 10.09 --
<CAPTION>
MUNICIPAL TRUST FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 $ 10.53 $ 0.186 $ (0.070) $ (0.186) $ -- $ 10.46 1.10%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 10.29 0.383 0.240 (0.383) -- 10.53 6.28
1997 10.01 0.445 0.280 (0.445) -- 10.29 7.37
1996 10.06 0.425 (0.050) (0.425) -- 10.01 3.83
1995 9.51 0.389 0.550 (0.389) -- 10.06 10.06
1994 10.10 0.365 (0.590) (0.365) -- 9.51 (2.27)
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C>
1999 10.53 0.150 (0.070) (0.150) -- 10.46 0.75
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C> <C> <C> <C>
1998 10.29 0.318 0.240 (0.318) -- 10.53 5.54
1997 10.01 0.370 0.280 (0.370) -- 10.29 6.62
1996 10.12 0.248 (0.110) (0.248) -- 10.01 1.42
<CAPTION>
RATIO OF
RATIO OF NET
NET ASSETS EXPENSES INVESTMENT
END OF TO AVERAGE INCOME (LOSS) PORTFOLIO
PERIOD NET TO AVERAGE TURNOVER
(000 OMITTED) ASSETS (4) NET ASSETS (4) RATE
------------ ----------- --------------- -----------
FIXED INCOME FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $ 44,166 1.00%(1) 4.88%(1) 52.9%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 47,834 1.00 5.24 114.0
1997 54,755 1.00 5.74 119.3
1996 56,388 1.00 5.72 90.2
1995 53,885 1.00 5.90 66.1
1994 39,150 0.93 5.58 55.9
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 5,490 1.70(1) 4.20(1) 52.9
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 5,849 1.70 4.50 114.0
1997 3,375 1.70 4.99 119.3
1996 1,629 1.70(1) 5.03(1) 90.2
<CAPTION>
Class D (3)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $128,618 -- -- 52.9
<CAPTION>
MUNICIPAL TRUST FUND
Class A
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 $ 39,274 1.00%(1) 3.56%(1) 34.5%
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 44,306 1.00 3.78 51.5
1997 35,878 0.70 4.38 84.3
1996 38,794 0.80 4.26 79.3
1995 39,059 1.00 3.97 49.3
1994 34,470 0.83 3.71 42.5
<CAPTION>
Class B (2)
SIX MONTHS ENDED APRIL 30, (UNAUDITED)
<S> <C> <C> <C> <C>
1999 1,363 1.70(1) 2.90(1) 34.5
<CAPTION>
YEARS ENDED OCTOBER 31,
<S> <C> <C> <C> <C>
1998 1,430 1.70 3.04 51.5
1997 546 1.40 3.66 84.3
1996 489 1.23(1) 3.81(1) 79.3
</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) The Funds commenced offering Class B shares on February 28, 1996. (3) The
Fixed Income Fund commenced offering Class D shares on April 30, 1999.
(4) Net of voluntary assumption by Advisor of expenses, expressed as a
percentage of average net assets, as follows: Fixed Income Fund Class A
shares, .29% (annualized) for the six months ended 04/30/99, .30%, .30%,
.34%, .51% and .67% for the years ended 10/31/98, 97, 96, 95, and 94,
respectively; Fixed Income Fund Class B shares, .29% (annualized) for the
six months ended 04/30/99, .30% and .30% for the years ended 10/31/98 and
97, respectively, and .34% (annualized) for the period 2/28/96 through
10/31/96; Municipal Trust Fund Class A shares, .37% (annualized) for the
six months ended 04/30/99, .41%, .74%, .64%, .58% and .77% for the years
ended 10/31/98, 97, 96, 95 and 94, respectively, and Municipal Trust Fund
Class B shares, .37% (annualized) for the six months ended 04/30/99, .41%
and .74% for the years ended 10/31/98, and 97, respectively and .64%
(annualized ) for the period 2/28/96 through 10/31/96.
<PAGE>
TRUSTEES
OFFICERS
INVESTMENT ADVISOR
CUSTODIAN
TRANSFER AGENT
DISTRIBUTOR
INDEPENDENT AUDITORS
LEGAL COUNSEL
DLJ WINTHROP FUNDS
SEMI-ANNUAL REPORT
DLJ WINTHROP FUNDS
[PHOTOGRAPH]
through
DLJ Winthrop
Fixed Income Fund
DLJ Winthrop
Growth Fund
DLJ Winthrop
Growth and Income Fund
DLJ Winthrop
Municipal Trust Fund
DLJ Winthrop
Small Company Value Fund
