<PAGE>
[LOGO]
DLJ WINTHROP FUNDS
SEMI-ANNUAL REPORT
[PHOTO]
LEADERSHIP THROUGH EXPERIENCE
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DLJ Winthrop Growth Fund
DLJ Winthrop Growth and Income Fund
DLJ Winthrop Small Company Value Fund
DLJ Winthrop International Equity Fund
DLJ Winthrop Developing Markets Fund
DLJ Winthrop Fixed Income Fund
DLJ Winthrop Municipal Trust Fund
DLJ Winthrop High Income Fund
APRIL 30, 2000
<PAGE>
Dear Shareholders:
While returns for the major asset classes were positive during the Funds' fiscal
year ending October 1999, the road has gotten rockier more recently. Continued
increases in interest rates by the Federal Reserve have cooled investor
enthusiasm for the equity market, particularly for "new economy" issues.
Conflicting signs of a strong, though perhaps weakening, U.S. economy, combined
with a mild, but less benign inflationary outlook have provided substantial
fodder for both bulls and bears, and pressure for value and growth pundits to
"be right" on a day-to-day basis. All these factors combine to contribute to the
mind-numbing volatility of the NASDAQ market.
We expect this volatility to continue, as investors over-react to every tidbit
of "information" reported by media obsessed with the stock market. The recent
rally in smaller capitalization value issues may continue, as these stocks
remain undervalued relative to their larger cap peers. As investors discount or
dismiss an end to Federal Reserve tightenings, the high real rates of return
available in the bond market, including the battered high yield sector, become
more appealing. We expect non-U.S. equity markets to reflect the global economic
rebound, even though most central banks (except Japan's) are likely to remain in
a tightening mode.
DLJ WINTHROP GROWTH FUND
For the six months ending April 30, 2000, the DLJ Winthrop Growth Fund "A"
shares returned 13.73% and the S&P 500 returned 7.20%. The Fund's holdings
proved successful across many industries. Although the Fund's technology and
communications holdings which represents 37% of the Fund's net assets as of
April 30, 2000, included many outstanding performers, some of the Fund's health
care stocks also did very well. Stocks that performed particularly well included
Amgen, EMC, Medtronic, and Scientific Atlanta.
DLJ WINTHROP GROWTH AND INCOME FUND
The Class A shares of the DLJ Winthrop Growth and Income Fund returned 3.09% for
the six-month period ending April 30, 2000, versus 7.20% for the S&P 500 Index.
During this period, the Fund's value bias hurt relative performance in an
environment that favored large growth issues. Within the sectors, financial
services performed poorly against a backdrop of rising interest rates, and the
Fund's best performers were in the technology area.
We have been very active in the portfolio, implementing changes designed to
raise the yield of the portfolio, while reducing the number of smaller holdings.
The total number of names in the portfolio has dropped from 73 as of our last
report to 66 at the end of May, 2000. In the technology sector, we have
eliminated or reduced several holdings that became unattractive from a near-term
valuation perspective, including Cisco, NTL, Inc., Oracle, and Texas
Instruments.
Relative performance of the Fund has improved recently with the move to more
"value" flavored equities. By modestly increasing the yield of the portfolio, we
think we will improve its defensive qualities, while still providing
appreciation potential in a positive environment for value equities.
DLJ WINTHROP SMALL COMPANY VALUE FUND
The Class A shares of the DLJ Winthrop Small Company Value Fund returned 10.51%
for the six-month period ending April 30, 2000 versus 18.72% for the Russell
2000 Index. During the last several months, however, investors have returned to
more value-oriented issues, and consequently the Fund's performance relative to
the Russell 2000 has improved dramatically. The Fund's strongest performers have
been in the energy and technology sectors. Until recently, the Fund's holding in
financial services have been poor performers, reflecting the rising interest
rate environment.
We have been active buyers and sellers in the technology area, trimming some of
our large holdings after huge gains and replacing them with new assets at more
palatable prices. After an unusually large number of takeovers in the Fund
during the last fiscal year, we had a slow start in the acquisition arena thus
far this year. We remain convinced, however, that the portfolio offers
substantial unrealized value, and are optimistic that the second half of this
fiscal year will see more corporate activity that recognizes this value.
DLJ WINTHROP INTERNATIONAL EQUITY FUND
The total return of the Class A shares of the DLJ Winthrop International Equity
Fund for the six months ending April 30, 2000, amounted to 8.39% vs. 6.84% for
the Fund's benchmark, the MSCI EAFE Free Index.
International developed markets have enjoyed a favorable environment over the
past six months, fueled by a strong non-inflationary economic momentum,
structural reforms, and a weak currency. Corporate results, mergers and
acquisitions and cash inflows were also strong, resulting in a positive
performance from all the EAFE markets (Europe, Japan and developed Asia). In
general, European markets outperformed the US market until mid-March when
volatility, caused by interest rates and technology stocks, increased
dramatically.
<PAGE>
During the period, the Fund maintained an overweighted position in Asia, its
position remained neutral in Japan, and it was slightly underweighted in the
European markets. Although we have recently reinforced our holdings in the
energy sector, our portfolio sector strategy has remained relatively unchanged.
DLJ WINTHROP DEVELOPING MARKETS FUND
The total return of the Class A shares of the DLJ Winthrop Developing Markets
Fund for the six months ending April 30, 2000, was 11.56% vs.13.87% for the
Fund's benchmark, the MSCI Emerging Markets Free Index.
This time period can be characterized by three distinct phases. The first began
in October as investors realized the importance of the Technology and the
Media & Telecom sectors in Emerging Markets. This led to a strong surge in all
the Emerging Market Indices that lasted until the end of 1999. The markets began
to slow in January due to concerns regarding the valuation of these technology
stocks. This trend continued through March when a final decline began, led by
both the technology and banking sectors.
In all countries, Information/Technology oriented stocks were the top performers
and therefore, the Fund maintained a strong weighting in this area. As
technology declined, these holdings were replaced with utility and retail. Since
the beginning of the year, the Fund has built a strong position in Asia to
capture the anticipated GDP growth and to coincide with the re-weighting of the
MSCI index.
DLJ WINTHROP FIXED INCOME FUND
An extremely inverted yield curve has developed over the last six months as a
result of the Federal Reserve's tightenings, on one hand, and the Treasury's
decision to retire long-term debt with budget surplus. The net effect of this
activity has been reduced long-term interest rates and higher short-term rates,
as demand for longer term Treasury debt far exceeded supply. Non-Treasury fixed
income markets had difficulty adjusting to this rate shift, causing a widening
of the spreads in domestic taxable fixed income securities.
By adhering to its focus on government securities of intermediate duration, the
Fixed Income Fund was able to withstand much of the deterioration that occurred
in the high-grade corporate sector of the U.S. taxable bond market. For the six
months ending April 30, 2000, the Class A shares total return was .70% versus
1.07% for the Lehman Brothers Government Corporate Intermediate Bond Index.
DLJ WINTHROP MUNICIPAL TRUST FUND
Consistent with trends in taxable fixed income markets, rates have risen in the
front end of the municipal yield curve due to a tighter monetary policy pursued
by the Federal Reserve as a result of an overheated economy. However, rates on
the long end of the municipal curve have fallen in stride with those of the
treasuries due to the U.S. Treasury's debt buyback. Additionally, municipals
have benefited from a 40% reduction in new issuance this year as state and local
coffers are full from increased tax collections. The Fund returned a positive
1.08% fiscal year-to-date and 0.90% calendar year-to-date, lagging the index
returns of 1.67% and 1.30%, respectively. We had avoided purchasing very
long-term securities during this period, given the restrictive Fed environment,
and preferred, instead, to maintain liquidity and a shorter average maturity
during this period. We hope to narrow the performance gap and exceed the index
as the year progresses.
DLJ WINTHROP HIGH INCOME FUND
The DLJ Winthrop High Income Fund outperformed the DLJ High Yield Bond Index and
the Lipper High Open-End Yield Bond Fund Average for both the fiscal
year-to-date and calendar year-to-date ended April 30, 2000. The fund's total
return for the fiscal and calendar year-to-date periods noted above were +1.92%
and -1.00%, respectively, on the Class A shares. In comparison, the DLJ Index
had total returns of +1.21% and -1.47%, and the Lipper Average had total returns
of +1.03% and -1.74% for the time periods noted above. The high yield bond
market was under heavy downward pressure for much of the first half of the
fiscal year, so our emphasis on higher quality and more defensive credits
enabled us to outperform the overall market. The pressure on high yield bond
prices came from investors having a smaller appetite for fixed income assets in
the wake of the Fed's raising of interest rates. The selling pressure in the
high yield market sharpened and the declines expanded to include the high growth
sectors of the equity markets starting in April, 2000. As a result, for the time
being we will continue our relatively defensive posture in the Fund. The
portfolio is market weighted by sector with an emphasis on larger issuers and
more liquid bonds. However, we believe that high yield bonds represent excellent
fundamental value and are waiting for a turning point in the technicals, such as
when positive funds flow into the market for an extended period of time, to
reassess the positioning of the Fund.
We thank you for your continued support and wish you a most enjoyable summer.
Sincerely,
/s/ G. Moffett Cochran
G. Moffett Cochran
President June, 2000
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP GROWTH FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
MAJOR PURCHASES MAJOR SALES
<S> <C>
Apple Computer, Inc.(1) Amgen, Inc.
Baxter International, Inc.(1) Cisco Systems, Inc.
Chevron Corp.(1) Compaq Computer Corp.(2)
Citigroup, Inc.(1) Freddie Mac(2)
Colgate-Palmolive Co. Pharmacia & Upjohn, Inc.(2)
EMC Corp.(1) Phillips Petroleum Co.(2)
Fleet Boston Corp.(1) Pitney Bowes, Inc.(2)
Johnson & Johnson(1) Sprint Corp. (PCS Group)
MCI Worldcom, Inc. U.S. Bancorp.(2)
Merck & Co., Inc. Wachovia Corp.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
Cisco Systems, Inc................. $ 9,705,938 4.4%
General Electric Co................ 9,151,950 4.1
Oracle Corp........................ 7,194,375 3.2
Intel Corp......................... 7,164,906 3.2
Microsoft Corp..................... 6,437,925 2.9
MCI WorldCom, Inc.................. 6,256,744 2.8
Nortel Networks Corp............... 5,753,100 2.6
EMC Corp........................... 5,738,119 2.6
Ciena Corp......................... 5,686,750 2.6
Texas Instruments, Inc............. 5,374,875 2.4
----------- ------
$68,464,682 30.8%
=========== ======
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------
DLJ WINTHROP
GROWTH FUND
-----------------
WITHOUT WITH
LOAD LOAD S&P 500
-------- ------- --------
<S> <C> <C> <C>
Class A:
1 year......................... 21.19% 14.21% 10.12%
5 years........................ 24.65 23.18 25.26
10 years....................... 16.18 15.50 18.78
Class B:
1 year......................... 20.27 16.27 10.12
From inception 2/96............ 22.91 22.91 23.47
Class D:
From inception 5/99............ 18.96 N/A 7.47
</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. THE FUND COMMENCED OFFERING CLASS C SHARES ON
FEBRUARY 28, 2000. THEREFORE, THE FUND DOES NOT YET HAVE A FULL YEAR OF
PERFORMANCE INFORMATION FOR THIS CLASS. CLASS D SHARES ARE OFFERED ONLY TO
EMPLOYEES OF DLJ AND ITS SUBSIDIARIES WHO ARE ELIGIBLE TO PARTICIPATE IN THE
DLJ 401(K) RETIREMENT SAVINGS PLAN FOR EMPLOYEES. CLASS D SHARES ARE NOT
SUBJECT TO ANY SALES CHARGES OR DISTRIBUTION FEES.
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.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE IS CONTAINED IN THE
FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP GROWTH AND INCOME FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
MAJOR PURCHASES MAJOR SALES
<S> <C>
Avon Products, Inc.(1) Cisco Systems, Inc.(2)
Bell Atlantic Corp.(1) Gartner Group, Inc.(2)
Dallas Semiconductor Corp.(1) IMS Health, Inc.(2)
Exxon Mobil Corp.(1) Intel Corp.
General Mills, Inc.(1) Newell Rubbermaid, Inc.(2)
Johnson & Johnson(1) NTL, Inc.
National Fuel Gas Co.(1) Oracle Corp.(2)
Rohm & Haas Co.(1) Republic NY Corp.(2)
Safeway, Inc.(1) Sysco Corp.
Unisys Corp.(1) Texas Instruments, Inc.
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
Tyco International Ltd............. $ 9,095,625 3.6%
United Technologies Corp........... 7,549,563 3.0
Merck & Co., Inc................... 7,408,700 2.9
Enron Corp......................... 7,400,913 2.9
American International Group,
Inc.............................. 7,345,553 2.9
Hewlett Packard Co................. 6,777,000 2.7
Freddie Mac........................ 6,771,188 2.7
Burlington Northern Santa Fe....... 6,395,538 2.5
Automatic Data Processing, Inc..... 6,253,013 2.5
BP Amoco PLC....................... 5,638,866 2.2
----------- ------
$70,635,959 27.9%
=========== ======
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<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......................... 2.20% -3.68% 10.12%
5 years........................ 20.22 18.81 25.26
10 years....................... 15.26 14.58 18.78
Class B:
1 year......................... 1.55 -2.39 10.12
From inception 2/96............ 17.04 17.04 23.47
Class D:
1 year......................... 2.54 N/A 10.12
</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. THE FUND COMMENCED OFFERING CLASS C SHARES ON
FEBRUARY 28, 2000. THEREFORE, THE FUND DOES NOT YET HAVE A FULL YEAR OF
PERFORMANCE INFORMATION FOR THIS CLASS. CLASS D SHARES ARE OFFERED ONLY TO
EMPLOYEES OF DLJ AND ITS SUBSIDIARIES WHO ARE ELIGIBLE TO PARTICIPATE IN THE
DLJ 401(K) RETIREMENT SAVINGS PLAN FOR EMPLOYEES. CLASS D SHARES ARE NOT
SUBJECT TO ANY ANY SALES CHARGES OR DISTRIBUTION FEES.
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.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE IS CONTAINED IN THE
FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP SMALL COMPANY VALUE FUND
PORTFOLIO CHANGES FOR THE SIX MONTHS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
MAJOR PURCHASES MAJOR SALES
<S> <C>
Benchmark Electronics, Inc.(1) Artesyn Technologies, Inc.(2)
Bisys Group, Inc.(1) Dallas Semiconductor Corp.
CCB Financial Corp.(1) DII Group, Inc.(2)
CFW Communications Co.(1) Helmerich & Payne, Inc.(2)
Equitable Resources, Inc.(1) IGATE Capital Corp.
Mastech Corp. Jones Pharma, Inc.
Modine Manufacturing Co. Lee Enterprises, Inc.(2)
Neiman Marcus Group, Inc.(1) Modine Electronics, Inc.
Oceaneering International, Inc.(1) Premark International, Inc.(2)
Performance Food Group, Inc.(1) WICOR, Inc.(2)
(1) New Holdings (2) Deletions
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
----------- -------
<S> <C> <C>
Electro Scientific Industries,
Inc.............................. $ 5,322,475 2.1%
Technitrol, Inc.................... 4,460,800 1.8
Invacare Corp...................... 4,459,225 1.8
Carlisle Companies, Inc............ 4,456,488 1.8
Dallas Semiconductor Corp.......... 4,396,800 1.7
Cambrex Corp....................... 4,296,800 1.7
National Fuel Gas Co............... 4,250,400 1.7
AptarGroup, Inc.................... 4,178,100 1.7
Beckman Coulter, Inc............... 4,122,075 1.6
Arrow International, Inc........... 3,958,500 1.6
----------- ------
$43,901,663 17.5%
=========== ======
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-----------------------------
DLJ WINTHROP
SMALL COMPANY
VALUE FUND
---------------
WITHOUT WITH
LOAD LOAD RUSSELL 2000
------- ------ ------------
<S> <C> <C> <C>
Class A:
1 year......................... 11.11% 4.69% 18.42%
5 years........................ 10.56 9.25 15.28
10 years....................... 13.62 12.95 14.10
Class B:
1 year......................... 10.34 6.36 18.42
From inception 2/96............ 8.52 8.52 12.66
</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. THE FUND COMMENCED OFFERING CLASS C SHARES ON
FEBRUARY 28, 2000. THEREFORE, THE FUND DOES NOT YET HAVE A FULL YEAR OF
PERFORMANCE INFORMATION FOR THIS CLASS.
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.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE IS CONTAINED IN THE
FINANCIAL HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP INTERNATIONAL EQUITY FUND
ASSET ALLOCATION BY COUNTRY APRIL 30, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Japan 23.8
United Kingdom 20.1
France 10.3
Hong Kong 7.6
Italy 7.4
Germany 5.8
Cash & Other Assets/Liabilities 4.8
Switzerland 4.7
Netherlands 4.3
Spain 2.9
Sweden 2.6
Finland 2.6
Portugal 0.8
Australia 0.8
Denmark 0.5
Ireland 0.4
Belgium 0.4
Singapore 0.2
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US $VALUE NET ASSETS
-------------- ----------- ----------
<S> <C> <C> <C>
Vodafone Group Plc........................... United Kingdom $ 2,031,925 3.1%
Oy Nokia (Ab) Ser 'A'........................ Finland 1,743,872 2.6
Telefonaktiebolaget LM Ericsson AB........... Sweden 1,395,395 2.1
Shell Transport & Trading Co................. United Kingdom 1,389,533 2.1
Total Fina SA................................ France 1,371,628 2.1
NTT Mobile Communication Network, Inc........ Japan 1,336,975 2.0
San Paolo--IMI SPA........................... Italy 1,285,213 2.0
China Telecom (Hong Kong) Ltd................ Hong Kong 1,242,104 1.9
Nippon Telegraph & Telephone Corp. Ltd....... Japan 1,029,767 1.6
Invensys Plc................................. United Kingdom 968,239 1.5
----------- -------
$13,794,651 21.0%
=========== =======
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-----------------------------
DLJ WINTHROP
INTERNATIONAL
EQUITY FUND
-----------------
WITHOUT WITH MSCI EAFE
LOAD LOAD INDEX
-------- ------- ----------
<S> <C> <C> <C>
Class A:
1 year......................... 15.57% 8.94% 14.17%
From inception 9/95............ 11.14 9.73 11.59
Class B:
1 year......................... 14.72 10.72 14.17
From inception 9/95............ 10.32 10.32 11.59
Class D:
From inception 5/99............ 19.92 N/A 19.08
</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. CLASS A RETURNS
SHOWN ABOVE ARE COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM
5.75% FRONT-END SALES LOAD. 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 FUND COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000. THEREFORE,
THE FUND DOES NOT YET HAVE A FULL YEAR OF PERFORMANCE INFORMATION FOR THIS
CLASS.CLASS D SHARES ARE OFFERED ONLY TO EMPLOYEES OF DLJ AND ITS
SUBSIDIARIES WHO ARE ELIGIBLE TO PARTICIPATE IN THE DLJ 401(K) RETIREMENT
SAVINGS PLAN FOR EMPLOYEES. CLASS D SHARES ARE NOT SUBJECT TO ANY SALES
CHARGES OR DISTRIBUTION FEES.
THE MSCI EAFE INDEX IS AN UNMANAGED INDEX COMPOSED OF A SAMPLE OF COMPANIES
REPRESENTATIVE OF THE MARKET STRUCTURE OF EUROPEAN AND PACIFIC BASIN
COUNTRIES. THE INDEX IS THE PROPERTY OF MORGAN STANLEY & CO. INCORPORATED.
THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER EXPENSES.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE
PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP DEVELOPING MARKETS FUND
ASSET ALLOCATION BY COUNTRY APRIL 30, 2000
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
South Korea 14.2
Taiwan 13.5
Brazil 12.5
Mexico 11.9
China 7.5
South Africa 6.5
Malaysia 6.1
Thailand 3.7
India 3.4
Turkey 2.7
Israel 2.7
Czech Republic 2.7
Argentina 2.6
Venezuela 2.0
Greece 1.8
Chile 1.7
Philippines 1.5
Hungary 1.4
Cash & Other Assets/Liabilities 0.7
Poland 0.5
Indonesia 0.4
</TABLE>
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US $VALUE NET ASSETS
-------------- ---------- ----------
<S> <C> <C> <C>
Samsung Electronics GDR...................... South Korea $1,450,575 7.0%
China Telecom (Hong Kong) Ltd................ China 1,003,794 4.8
Telefonos de Mexico SA Cl.'L' ADR............ Mexico 846,900 4.1
Hon Hai Precision Industry................... Taiwan 709,909 3.4
Taiwan Semiconductor Manufacturing Co.
Ltd........................................ Taiwan 661,753 3.2
United Microelectronics Corp................. Taiwan 473,607 2.3
Compania Anonima Nacional Telefonos de
Venezuela.................................. Venezuela 406,000 2.0
Cifra SA de CV Ser.'V'....................... Mexico 397,084 1.9
SPT Telecom AS............................... Czech Republic 387,663 1.9
SK Telecom Co. Ltd........................... South Korea 384,750 1.9
---------- -------
$6,722,035 32.5%
========== =======
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
------------------------------
DLJ WINTHROP
DEVELOPING
MARKETS FUND MSCI
--------------- EMERGING
WITHOUT WITH MARKETS
LOAD LOAD FREE INDEX
------- ------ -------------
<S> <C> <C> <C>
Class A:
1 year......................... 15.26% 8.61% 22.11%
From inception 9/95............ 2.41 1.11 1.04
Class B:
1 year......................... 14.38 10.38 22.11
From inception 9/95............ 1.61 1.61 1.04
</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. CLASS A RETURNS
SHOWN ABOVE ARE COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM
5.75% FRONT-END SALES LOAD. 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 FUND COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000. THEREFORE,
THE FUND DOES NOT YET HAVE A FULL YEAR OF PERFORMANCE INFORMATION FOR THIS
CLASS.
THE MSCI EMERGING MARKETS FREE INDEX IS AN UNMANAGED INDEX COMPOSED OF A
SAMPLE OF COMPANIES REPRESENTATIVE OF THE MARKET STRUCTURE OF DEVELOPING
COUNTRIES WORLDWIDE. THE INDEX IS THE PROPERTY OF MORGAN STANLEY & CO.
INCORPORATED. THE INDEX DOES NOT TAKE INTO ACCOUNT CHARGES, FEES AND OTHER
EXPENSES. FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING
EXPENSE REIMBURSEMENTS, IF APPLICABLE, IS CONTAINED IN THE FINANCIAL
HIGHLIGHTS SECTION OF THE PROSPECTUS AND ELSEWHERE IN THIS REPORT.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE
PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP FIXED INCOME FUND
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Federal National Mortgage Association
5.625%, 05/14/04........................... $9,083,016 6.6%
United States Treasury Notes
7.000%, 07/15/06........................... 7,424,290 5.4
United States Treasury Notes
6.250%, 02/15/03........................... 6,191,125 4.5
Federal Home Loan Bank
7.360%, 07/01/04........................... 6,021,900 4.4
United States Treasury Notes
6.125%, 12/31/01........................... 5,303,295 3.9
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Tyco International Group, Inc.
7.000%, 09/01/05........................... $4,931,250 3.6%
MCI Communications Corp.
6.125%, 04/15,02........................... 4,868,750 3.6
Ford Motor Credit Co.
7.375%, 10/28/09........................... 4,843,750 3.5
Associates Corp.
5.875%, 07/15/02........................... 4,831,250 3.5
MBNA Master Credit Card Trust
6.450%, 02/15/08........................... 4,826,600 3.5
</TABLE>
PORTFOLIO CHARACTERISTICS APRIL 30, 2000
<TABLE>
<S> <C> <C> <C>
30 DAY YIELD, CLASS A: 5.87% AVERAGE RATING: AA*
30 DAY YIELD, CLASS B: 5.46% AVERAGE YEARS TO MATURITY: 7.0 years*
30 DAY YIELD, CLASS C: 5.21% AVERAGE COUPON: 6.33%+*
30 DAY YIELD, CLASS D: 6.48% AVERAGE DURATION: 3.5 years*
* Weighted Averages
+ Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------
DLJ WINTHROP
FIXED INCOME
FUND LEHMAN BROS.
---------------------------- GOV'T CORP.
WITHOUT WITH INTERMEDIATE
LOAD LOAD BOND INDEX
------------- ------------- -------------
<S> <C> <C> <C>
Class A:
1 year......................... 0.60% -4.15% 1.54%
5 years........................ 5.25 4.24 6.19
10 years....................... 6.95 6.43 7.45
Class B:
1 year......................... -0.12 -3.94 1.54
From inception 2/96............ 3.64 3.64 5.31
Class D:
1 year......................... 0.89 N/A 1.54
</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. 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 FUND
COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000. THEREFORE, THE FUND
DOES NOT YET HAVE A FULL YEAR OF PERFORMANCE INFORMATION FOR THIS CLASS.
CLASS D SHARES ARE OFFERED ONLY TO EMPLOYEES OF DLJ AND ITS SUBSIDIARIES WHO
ARE ELIGIBLE TO PARTICIPATE IN THE DLJ 401(K) RETIREMENT SAVINGS PLAN FOR
EMPLOYEES. CLASS D SHARES ARE NOT SUBJECT TO ANY SALES CHARGES OR
DISTRIBUTION FEES.
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, WHICH DO NOT TAKE INTO
ACCOUNT CHARGES, FEES AND OTHER EXPENSES.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE
PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP MUNICIPAL TRUST FUND
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Plano, Texas Independent School District
6.000%, 02/15/05........................... $2,080,000 8.2%
Wisconsin State Clean Water Revenue
5.000%, 06/01/03........................... 2,007,500 7.9
Houston, Texas Revenue
5.000%, 03/01/05........................... 2,000,000 7.9
Grand River Dam Authority, Oklahoma
6.250%, 06/01/11........................... 1,620,000 6.4
Denver, Colorado City & County Airport
6.750%, 11/15/22........................... 1,593,825 6.3
<CAPTION>
PERCENT
VALUE OF FUND
---------- -------
<S> <C> <C>
Denver, Colorado City & County Airport
6.750%, 11/15/22........................... $1,593,825 6.3%
Chicago, Illinois Metropolitan Water
Reclamation District
5.750%, 12/01/01........................... 1,126,250 4.4
Puerto Rico Electric Power Authority
6.000%, 07/01/11........................... 1,067,500 4.2
Indiana University Revenue Student Fee Ser. K
6.500%, 08/01/05........................... 1,062,500 4.2
New York State Dormitory Authority Revenue
6.500%, 05/15/06........................... 1,061,250 4.2
</TABLE>
PORTFOLIO CHARACTERISTICS APRIL 30, 2000
<TABLE>
<S> <C> <C> <C>
30 DAY YIELD, CLASS A: 3.90% AVERAGE RATING: AA*
30 DAY YIELD, CLASS B: 3.39% AVERAGE YEARS TO MATURITY: 7.1 Years*
30 DAY YIELD, CLASS C: 3.14% AVERAGE COUPON: 5.79%*
AVERAGE DURATION: 4.5 years*
* Weighted Averages
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------
DLJ WINTHROP
MUNICIPAL
TRUST FUND LIPPER
---------------------------- INTERMEDIATE
WITHOUT WITH MUNICIPAL
LOAD LOAD FUND AVERAGE
------------- ------------- -------------
<S> <C> <C> <C>
Class A:
1 year......................... -1.04% -5.73% -1.18%
5 years........................ 4.59 3.59 4.72
From inception 7/93............ 3.94 3.20 4.49
Class B:
1 year......................... -1.73 -5.51 -1.18
From inception 2/96............ 2.97 2.97 3.73
</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. 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 FUND
COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000. THEREFORE, THE FUND
DOES NOT YET HAVE A FULL YEAR OF PERFORMANCE INFORMATION FOR THIS CLASS.
THE LIPPER INTERMEDIATE MUNICIPAL FUND AVERAGE IS AN EQUALLY WEIGHTED
PERFORMANCE AVERAGE OF THE FUNDS IN THE LIPPER ANALYTICAL GROUPING OF
INTERMEDIATE MUNICIPAL DEBT FUNDS, ADJUSTED FOR CAPITAL GAINS AND INCOME
DIVIDENDS.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE
PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
FUND HIGHLIGHTS (UNAUDITED)
DLJ WINTHROP HIGH INCOME FUND
TEN LARGEST HOLDINGS APRIL 30, 2000
<TABLE>
<CAPTION>
PERCENT
VALUE OF FUND
-------- -------
<S> <C> <C>
Esat Telecom Group PLC Ser. B
11.875%, 12/01/08.......................... $293,750 2.11%
Dobson/Sygnet Communications, Inc.
13.000%, 05/01/09.......................... 279,961 2.01
Argosy Gaming Co.
10.750%, 06/01/09.......................... 261,250 1.87
King Pharmaceutical, Inc.
10.750%, 02/15/09.......................... 256,250 1.84
Station Casinos, Inc.
10.125%, 03/15/06.......................... 256,250 1.84
<CAPTION>
PERCENT
VALUE OF FUND
-------- -------
<S> <C> <C>
Avecia Group, Inc
11.000%, 07/01/09.......................... $255,000 1.83%
Gentek, Inc.
11.000%, 08/01/09.......................... 254,375 1.82
Packaging Corp. of America
9.625%, 04/01/09........................... 253,125 1.81
Williams Communications Group, Inc.
10.875%, 10/01/09.......................... 252,500 1.81
Fairchild Semiconductor Corp.
10.375%, 10/01/07.......................... 251,875 1.81
</TABLE>
PORTFOLIO CHARACTERISTICS APRIL 30, 2000
<TABLE>
<S> <C> <C> <C>
30 DAY YIELD, CLASS A: 9.93% AVERAGE RATING: B*
30 DAY YIELD, CLASS B: 9.67% AVERAGE YEARS TO MATURITY: 7.5 years*
30 DAY YIELD, CLASS C: 9.37% AVERAGE COUPON: 9.40%+*
30 DAY YIELD, CLASS D: 10.71% AVERAGE DURATION: 4.73 years*
* Weighted Average
+ Exclusive of Commercial Paper
</TABLE>
INVESTMENT RESULTS FOR THE PERIODS ENDED APRIL 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------
DLJ WINTHROP LIPPER
HIGH INCOME FUND OPEN-END
---------------------------- HIGH YIELD
WITHOUT WITH BOND FUND
LOAD LOAD AVERAGE
------------- ------------- -------------
<S> <C> <C> <C>
Class A:
1 year......................... -0.35% -5.13% -2.56%
From inception 3/99............ 3.63 -0.71 0.98
Class B:
1 year......................... -1.11 -4.72 -2.56
From inception 3/99............ 2.77 0.32 0.98
Class D:
From inception 5/99............ 0.48 N/A -2.08
</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. CLASS A RETURNS
SHOWN ABOVE ARE COMPUTED WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM
4.75% FRONT-END SALES LOAD. INSTEAD OF A FRONT-END SALES LOAD, CLASS B
SHARES 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 FUND
COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000. THEREFORE, THE FUND
DOES NOT YET HAVE A FULL YEAR OF PERFORMANCE INFORMATION FOR THIS CLASS.
CLASS D SHARES ARE OFFERED ONLY TO EMPLOYEES OF DLJ AND ITS SUBSIDIARIES WHO
ARE ELIGIBLE TO PARTICIPATE IN THE DLJ 401(K) RETIREMENT SAVINGS PLAN FOR
EMPLOYEES. CLASS D SHARES ARE NOT SUBJECT TO ANY SALES CHARGE OR
DISTRIBUTION FEES.
THE LIPPER OPEN-END HIGH YIELD BOND FUND AVERAGE IS AN EQUALLY WEIGHTED
PERFORMANCE AVERAGE OF THE FUNDS IN THE LIPPER ANALYTICAL GROUPING OF
OPEN-END HIGH YIELD BOND FUNDS, ADJUSTED FOR CAPITAL GAINS AND INCOME
DIVIDENDS.
FURTHER INFORMATION RELATING TO FUND PERFORMANCE, INCLUDING EXPENSE
REIMBURSEMENTS, IS CONTAINED IN THE FINANCIAL HIGHLIGHTS SECTION OF THE
PROSPECTUS AND ELSEWHERE IN THIS REPORT.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP GROWTH FUND
COMMON STOCKS--96.1%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS--2.7% ---------- ------------
<S> <C> <C>
CHEMICALS-0.8%
Praxair, Inc........................................... 42,500 $ 1,888,594
------------
METALS & MINING-1.1%
Alcoa, Inc............................................. 38,000 2,465,250
------------
PAPER & PAPER PRODUCTS-0.8%
International Paper Co................................. 47,000 1,727,250
------------
6,081,094
------------
CAPITAL GOODS--7.5%
AEROSPACE & DEFENSE-1.1%
General Dynamics Corp.................................. 43,400 2,538,900
------------
CONGLOMORATES-5.5%
General Electric Co.................................... 58,200 9,151,950
Tyco International Ltd................................. 68,800 3,160,500
------------
12,312,450
------------
ELECTRICAL EQUIPMENT-0.9%
Emerson Electric Co.................................... 34,800 1,909,650
------------
16,761,000
------------
CONSUMER CYCLICAL--12.2%
BROADCASTING & CABLE TV-2.6%
Comcast Corp.*......................................... 30,000 1,201,875
MediaOne Group, Inc.*.................................. 59,700 4,514,813
------------
5,716,688
------------
LEISURE RELATED-1.5%
Disney (Walt) Co....................................... 75,900 3,287,419
------------
PERSONAL & HOUSEHOLD PRODUCTS-0.6%
Estee Lauder Companies, Inc. Cl. A..................... 31,000 1,367,875
------------
PRINTING & PUBLISHING-1.3%
Time Warner, Inc....................................... 31,700 2,851,019
------------
RETAIL-GENERAL-6.2%
CVS Corp............................................... 65,200 2,836,200
Home Depot, Inc........................................ 54,300 3,044,194
Target Corp............................................ 53,500 3,561,094
Wal-Mart Stores, Inc................................... 80,000 4,430,000
------------
13,871,488
------------
27,094,489
------------
CONSUMER STAPLES--15.3%
BEVERAGE & TOBACCO-1.0%
Coca-Cola Company...................................... 45,000 2,117,812
------------
DRUGS-6.7%
Amgen, Inc.*........................................... 67,500 3,780,000
Bristol-Myers Squibb Co................................ 13,000 681,687
Edwards Lifesciences Corp.*............................ 6,200 93,000
Johnson & Johnson...................................... 23,600 1,947,000
Merck & Co., Inc....................................... 67,500 4,691,250
Pharmacia Corp......................................... 26,500 1,323,344
Schering-Plough Corp................................... 58,000 2,338,125
------------
14,854,406
------------
FOOD & FOOD RETAILERS-2.2%
General Mills, Inc..................................... 54,700 1,989,713
SYSCO Corp............................................. 80,000 3,010,000
------------
4,999,713
------------
HOSPITAL SUPPLIES & SERVICES-1.8%
Bard (C.R.), Inc....................................... 33,000 1,437,562
Medtronic, Inc......................................... 48,800 2,534,550
------------
3,972,112
------------
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
MEDICAL EQUIPMENT & SUPPLIES-0.9%
Baxter International, Inc.............................. 31,000 $ 2,018,875
------------
SOAPS & TOILETRIES-2.7%
Colgate-Palmolive Co................................... 55,500 3,170,437
Procter & Gamble Co.................................... 46,600 2,778,525
------------
5,948,962
------------
33,911,880
------------
ENERGY--5.9%
OIL-INTERNATIONAL-5.2%
Chevron Corp........................................... 48,200 4,103,025
Exxon Mobil Corp....................................... 57,000 4,428,187
Royal Dutch Petroleum Co............................... 16,000 918,000
Texaco, Inc............................................ 42,200 2,088,900
------------
11,538,112
------------
OIL-SERVICES-0.7%
Schlumberger Ltd....................................... 22,000 1,684,375
------------
13,222,487
------------
FINANCIAL--13.3%
BANKING-6.2%
Chase Manhattan Corp................................... 37,500 2,702,344
Citigroup, Inc......................................... 59,700 3,548,419
Fleet Boston Financial Corp............................ 65,000 2,303,438
Northern Trust Corp.................................... 36,000 2,308,500
Wells Fargo & Co....................................... 70,000 2,874,375
------------
13,737,076
------------
FINANCIAL SERVICES-3.8%
American Express Co.................................... 26,827 4,025,727
Lehman Brothers Holdings, Inc.......................... 37,300 3,060,931
Providian Financial Corp............................... 14,500 1,276,906
------------
8,363,564
------------
INSURANCE-3.3%
American General Corp.................................. 27,800 1,556,800
American International Group, Inc...................... 24,000 2,632,500
Hartford Financial Services, Inc....................... 58,400 3,047,750
------------
7,237,050
------------
29,337,690
------------
TECHNOLOGY--37.0%
COMMUNICATIONS EQUIPMENT-5.1%
Ciena Corp.*........................................... 46,000 5,686,750
Nortel Networks Corp................................... 50,800 5,753,100
------------
11,439,850
------------
COMPUTERS-15.6%
Apple Computer, Inc.*.................................. 20,000 2,481,250
Cisco Systems, Inc.*................................... 140,000 9,705,937
Computer Associates International, Inc................. 9,000 502,312
EMC Corp.*............................................. 41,300 5,738,119
International Business Machines Corp................... 24,800 2,768,300
Microsoft Corp.*....................................... 92,300 6,437,925
Oracle Corp.*.......................................... 90,000 7,194,375
------------
34,828,218
------------
ELECTRONICS-9.5%
Intel Corp............................................. 56,500 7,164,906
Scientific-Atlanta, Inc................................ 80,000 5,205,000
Solectron Corp.*....................................... 72,000 3,370,500
Texas Instruments, Inc................................. 33,000 5,374,875
------------
21,115,281
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP GROWTH FUND
<TABLE>
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
OFFICE SUPPLIES-0.8%
Avery Dennison Corp.................................... 28,000 $ 1,837,500
------------
TELECOMMUNICATIONS-6.0%
AT&T Corp.............................................. 14,000 653,625
MCI WorldCom, Inc.*.................................... 137,700 6,256,745
Nextel Communications, Inc.*........................... 10,000 1,094,375
Sprint Corp. (FON Group)............................... 58,000 3,567,000
Sprint Corp. (PCS Group)*.............................. 32,000 1,760,000
------------
13,331,745
------------
82,552,594
------------
TRANSPORT & SERVICE--2.2%
ADVERTISING-1.7%
Omnicom Group, Inc. ................................... 41,500 3,779,094
------------
AIRLINES-0.1%
AMR Corp.*............................................. 8,500 289,531
------------
PERSONAL SERVICES-0.1%
Sabre Holdings Corp.................................... 6,142 214,586
------------
<CAPTION>
SHARES VALUE
---------- ------------
<S> <C> <C>
RAILROADS-0.3%
Burlington Northern Santa Fe Corp...................... 31,500 $ 759,937
------------
5,043,148
------------
TOTAL COMMON STOCKS
(cost $128,748,587)................................... 214,004,382
------------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
COMMERCIAL PAPER--4.0% (amortized cost $8,888,000)
UBS Finance LLC 6.040%, 05/01/00**..................... $8,888,000 8,888,000
------------
TOTAL INVESTMENTS--100.1%
(cost $137,636,587)................................... 222,892,382
------------
LIABILITIES NET OF CASH AND OTHER ASSETS--(0.1)%....... (245,827)
------------
NET ASSETS--100.0%..................................... $222,646,555
============
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP GROWTH AND INCOME FUND
COMMON STOCKS--99.9%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS--8.8% ---------- -------------
<S> <C> <C>
CHEMICALS-1.9%
Hannah (M.A.) Co....................................... 148,100 $ 1,703,150
Rohm & Haas Co......................................... 87,000 3,099,375
------------
4,802,525
------------
OIL & GAS-6.9%
BP Amoco PLC........................................... 110,566 5,638,866
Burlington Resources, Inc.............................. 49,000 1,926,313
Exxon Mobil Corp....................................... 41,000 3,185,187
Schlumberger Ltd....................................... 62,500 4,785,156
Texaco, Inc............................................ 40,000 1,980,000
------------
17,515,522
------------
22,318,047
------------
CAPITAL GOODS/ CONSTRUCTION--6.2%
AEROSPACE & DEFENSE-6.2%
General Dynamics Corp.................................. 78,700 4,603,950
Martin Marietta Materials, Inc......................... 65,000 3,445,000
United Technologies Corp............................... 121,400 7,549,563
------------
15,598,513
------------
CONSUMER PRODUCTS & SERVICES--30.4%
APPAREL & ACCESSORIES-0.6%
Jones Apparel Group, Inc............................... 50,000 1,484,375
------------
AUTO & TRUCK PARTS-1.0%
Modine Manufacturing Co................................ 120,000 2,647,500
------------
BEVERAGES & TOBACCO-1.3%
Philip Morris Cos., Inc................................ 154,000 3,368,750
------------
CONTAINERS-1.3%
Bemis, Inc............................................. 88,200 3,246,862
------------
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C>
DRUGS-4.4%
Merck & Co., Inc....................................... 106,600 $ 7,408,700
Pharmacia Corp......................................... 72,352 3,613,078
------------
11,021,778
------------
FOODS-4.2%
General Mills, Inc..................................... 154,200 5,609,025
SYSCO Corp............................................. 134,000 5,041,750
------------
10,650,775
------------
HOSPITAL SUPPLIES & SERVICES-3.3%
Abbott Laboratories.................................... 110,000 4,228,125
Cardinal Health, Inc................................... 75,000 4,129,687
------------
8,357,812
------------
HOUSEHOLD FURNITURE-1.1%
Leggett & Platt, Inc................................... 127,600 2,727,450
------------
LEISURE-0.9%
Cedar Fair LP.......................................... 116,400 2,233,425
------------
MEDICAL & ENTERTAINMENT-1.4%
Time Warner, Inc....................................... 6,000 539,625
Viacom, Inc............................................ 57,000 3,099,375
------------
3,639,000
------------
PRINTING & PUBLISHING-2.7%
New York Times Co. Cl. A............................... 80,000 3,295,000
Tribune Co............................................. 89,200 3,467,650
------------
6,762,650
------------
RETAIL-FOOD & DRUGS-3.5%
Safeway, Inc........................................... 111,500 4,919,938
Walgreen Co............................................ 141,500 3,979,688
------------
8,899,626
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP GROWTH AND INCOME FUND
<TABLE>
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C>
RETAIL-GENERAL-1.0%
Federated Department Stores, Inc....................... 78,300 $ 2,662,200
------------
SOAPS & TOILETRIES-3.7%
Avon Products, Inc..................................... 134,500 5,581,750
Johnson and Johnson.................................... 45,000 3,712,500
------------
9,294,250
------------
76,996,453
------------
ENERGY--6.9%
OIL-DOMESTIC-1.5%
National Fuel Gas Co................................... 82,000 3,889,875
------------
OIL-SUPPLIES & CONSTRUCTION-5.4%
Enron Corp............................................. 106,200 7,400,812
Halliburton Co......................................... 75,600 3,340,575
New Jersey Resources Corp.............................. 28,000 1,127,000
San Juan Basin Royalty Trust........................... 180,000 1,676,250
------------
13,544,637
------------
17,434,512
------------
FINANCIAL SERVICES--15.1%
BANKING-6.5%
Bank of America Corp................................... 61,221 2,999,829
Citigroup, Inc......................................... 45,000 2,674,687
Firstar Corp........................................... 89,000 2,213,875
Household International, Inc........................... 50,000 2,087,500
U.S. Bancorp........................................... 175,296 3,560,700
Washington Mutual, Inc................................. 116,200 2,970,363
------------
16,506,954
------------
INSURANCE-5.1%
American International Group, Inc...................... 66,968 7,345,553
Hartford Financial Services Group...................... 25,000 1,304,687
HSB Group, Inc......................................... 90,000 2,610,000
Progressive Corp....................................... 25,000 1,635,938
------------
12,896,178
------------
OTHER-3.5%
Block (H&R), Inc....................................... 50,000 2,090,625
Freddie Mac............................................ 147,400 6,771,187
------------
8,861,812
------------
38,264,944
------------
PUBLIC UTILITIES--2.1%
ELECTRIC-0.5%
Ameren Corp............................................ 30,000 1,100,625
------------
OIL & GAS-1.1%
Washington Gas Light Co................................ 109,990 2,818,494
------------
TELEPHONE-0.5%
GTE Corp............................................... 20,000 1,355,000
------------
5,274,119
------------
SCIENCE &
TECHNOLOGY--21.3%
COMPUTERS-10.1%
Automatic Data Processing, Inc......................... 116,200 6,253,012
Computer Associates International, Inc................. 42,700 2,383,194
Gateway 2000, Inc.*.................................... 71,000 3,922,750
Hewlett-Packard Co..................................... 50,200 6,777,000
Texas Instruments, Inc................................. 9,000 1,465,875
Unisys Corp............................................ 209,000 4,846,188
------------
25,648,019
------------
<CAPTION>
SHARES VALUE
---------- -------------
<S> <C> <C>
ELECTRONICS-1.4%
Electro Scientific Industries, Inc..................... 55,000 $ 3,468,437
------------
SEMICONDUCTORS-2.0%
Dallas Semiconductor Corp.............................. 84,000 3,606,750
Intel Corp............................................. 10,600 1,344,212
------------
4,950,962
------------
TELECOMMUNICATIONS-7.8%
Alltel Corp............................................ 64,800 4,317,300
Bell Atlantic Corp..................................... 61,000 3,614,250
Comcast Corp.-Special Cl. A............................ 137,600 5,512,600
Cox Communication, Inc. Cl. A*......................... 30,000 1,284,375
NTL, Inc.*............................................. 15,833 1,211,210
Sprint Corp............................................ 63,800 3,923,700
------------
19,863,435
------------
53,930,853
------------
TRANSPORT & SERVICE--2.5%
RAILROADS-2.5%
Burlington Northern Santa Fe........................... 265,100 6,395,538
------------
MISCELLANEOUS--6.6%
DIVERSIFIED-5.7%
Berkshire Hathaway, Inc................................ 70 4,151,000
Loews Corp............................................. 23,000 1,267,875
Tyco International Ltd................................. 198,000 9,095,625
------------
14,514,500
------------
LIMITED PARTNERSHIP-TIMBER-0.5%
Plum Creek Timber Co. LP............................... 50,000 1,218,750
------------
REAL ESTATE INVESTMENT TRUST-0.4%
General Growth Properties.............................. 30,000 986,250
------------
16,719,500
------------
TOTAL COMMON STOCKS
(cost $186,833,695)................................... 252,932,479
------------
<CAPTION>
PRINCIPAL
AMOUNT
----------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES--0.4% (cost $997,614)
Federal Home Loan Bank 6.700%, 06/25/14................ $1,000,000 934,270
------------
COMMERCIAL PAPER--0.4% (amortized cost $903,000)
UBS Finance LLC, 6.040%, 05/01/00**.................... 903,000 903,000
------------
TOTAL INVESTMENTS--100.7%
(cost $188,734,309)................................... 254,769,749
------------
LIABILITIES NET OF CASH AND OTHER ASSETS--(0.7%)....... (1,981,147)
------------
NET ASSETS--100.0%..................................... $252,788,602
============
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP SMALL COMPANY VALUE FUND
COMMON STOCKS--100.2%
<TABLE>
<CAPTION>
SHARES VALUE
BASIC MATERIALS--9.3% -------- ------------
<S> <C> <C>
CHEMICALS-6.1%
Cambrex Corp........................................... 104,800 $ 4,296,800
Dexter Corp............................................ 35,900 1,970,012
Hanna (M.A.) Co........................................ 138,800 1,596,200
Minerals Technologies, Inc............................. 35,000 1,618,750
Rogers Corp.*.......................................... 36,300 2,445,712
------------
11,927,474
------------
PACKAGING-2.1%
AptarGroup, Inc........................................ 146,600 4,178,100
------------
PAPER-1.1%
Longview Fibre Co...................................... 166,000 2,116,500
------------
18,222,074
------------
CAPITAL GOODS/ CONSTRUCTION--11.6%
AEROSPACE-2.7%
Esco Electronics Corp.*................................ 119,000 1,941,187
Teleflex, Inc.......................................... 99,900 3,452,793
------------
5,393,980
------------
BUILDING & CONSTRUCTION-5.4%
Applied Power, Inc. Cl. A.............................. 63,900 1,829,137
Carlisle Companies, Inc................................ 108,200 4,456,487
Lydall, Inc.*.......................................... 174,500 1,548,688
RPM, Inc. Ohio......................................... 267,187 2,705,268
------------
10,539,580
------------
ELECTRICAL EQUIPMENT-3.5%
AMETEK, Inc............................................ 172,000 3,536,750
Woodhead Industries, Inc............................... 197,800 3,313,150
------------
6,849,900
------------
22,783,460
------------
CONSUMER CYCLICAL--18.3%
AUTO RELATED-2.5%
Modine Manufacturing Co................................ 120,400 2,656,325
Myers Industries, Inc.................................. 162,427 2,273,978
------------
4,930,303
------------
FOOD SERVICE/LODGING-4.2%
Marcus Corp............................................ 149,975 1,602,858
Performance Food Group, Inc.*.......................... 133,000 3,507,875
Universal Foods Corp................................... 191,800 3,152,712
------------
8,263,445
------------
HOUSEHOLD FURNITURE/APPLIANCES-2.4%
Chromcraft Revington, Inc.*............................ 206,600 2,505,025
HON Industries, Inc.................................... 92,000 2,294,250
------------
4,799,275
------------
LEISURE & RECREATIONAL PRODUCTS-0.6%
Handleman Co........................................... 100,000 1,200,000
------------
PRINTING & PUBLISHING-3.9%
Banta Corp............................................. 168,250 3,291,391
Harte Hanks, Inc....................................... 90,000 2,227,500
Lee Enterprises, Inc................................... 20,200 458,288
Meredith Corp.......................................... 62,000 1,724,375
------------
7,701,554
------------
<CAPTION>
SHARES VALUE
-------- ------------
<S> <C> <C>
RETAIL-GENERAL-4.7%
Lands' End, Inc.*...................................... 40,000 $ 1,692,500
Michael's Stores, Inc.*................................ 72,000 2,839,500
Neiman Marcus Group, Inc.*............................. 90,000 2,278,125
Ruddick Corp........................................... 217,700 2,489,944
------------
9,300,069
------------
36,194,646
------------
CONSUMER STAPLES--8.4%
DRUGS-2.0%
Jones Pharma, Inc...................................... 70,500 2,031,281
Pharmaceutical Product Development, Inc.*.............. 115,000 1,933,438
------------
3,964,719
------------
HOSPITAL SUPPLIES & SERVICES-6.4%
Arrow International, Inc............................... 116,000 3,958,500
Beckman Coulter, Inc................................... 63,600 4,122,075
Invacare Corp.......................................... 166,700 4,459,225
------------
12,539,800
------------
16,504,519
------------
ENERGY--3.2%
OIL-SUPPLIES & CONSTRUCTION-3.2%
Oceaneering International, Inc.*....................... 122,000 2,104,500
Tidewater, Inc......................................... 54,100 1,609,475
Varco International, Inc.*............................. 210,200 2,627,500
------------
6,341,475
------------
FINANCIAL--16.3%
BANKS-8.9%
AmSouth Bancorporation................................. 164,022 2,388,570
Associated Banc-Corp................................... 64,000 1,636,000
CCB Financial Corp..................................... 64,000 2,532,000
Centura Banks, Inc..................................... 58,000 2,396,125
Cullen/Frost Bankers, Inc.............................. 122,000 3,011,875
FirstMerit Corp........................................ 180,000 2,947,500
Peoples' Bank, Inc..................................... 125,000 2,546,875
------------
17,458,945
------------
INSURANCE-7.4%
Brown & Brown, Inc..................................... 76,900 3,085,612
Horace Mann Educators Corp............................. 164,400 2,394,075
HSB Group, Inc......................................... 114,950 3,333,550
Protective Life Corp................................... 126,200 3,005,138
ReliaStar Financial Corp............................... 65,000 2,799,062
------------
14,617,437
------------
32,076,382
------------
PUBLIC UTILITIES--5.6%
ELECTRIC-1.8%
Equitable Resources, Inc............................... 76,000 3,524,500
------------
GAS-3.8%
National Fuel Gas Co................................... 89,600 4,250,400
------------
Washington Gas Light Co................................ 128,500 3,292,813
------------
7,543,213
------------
11,067,713
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP SMALL COMPANY VALUE FUND
<TABLE>
<CAPTION>
SHARES VALUE
TECHNOLOGY--20.3% -------- ------------
<S> <C> <C>
COMPUTER SERVICES-1.2%
Bisys Group, Inc.*..................................... 38,000 $ 2,377,375
------------
ELECTRONICS-14.6%
Benchmark Electronics, Inc.*........................... 76,400 3,070,325
Dallas Semiconductor Corp.............................. 102,400 4,396,800
Electro Scientific Industries, Inc.*................... 84,400 5,322,475
Gerber Scientific, Inc................................. 80,000 1,110,000
Methode Electronics, Inc. Cl. A........................ 79,150 3,298,329
Pericom Semiconductor Corp.*........................... 55,000 2,416,563
Pioneer Standard Electronics, Inc...................... 239,450 3,666,578
Technitrol, Inc........................................ 65,600 4,460,800
Teradyne, Inc.*........................................ 10,000 1,100,000
------------
28,841,870
------------
SOFTWARE & PROGRAMMING-3.0%
IGATE Capital Corp.*................................... 51,900 1,557,000
Mentor Graphics Corp.*................................. 111,100 1,458,188
Progress Software Corp.*............................... 148,800 2,976,000
------------
5,991,188
------------
TELECOMMUNICATIONS-1.5%
CFW Communications Co.................................. 75,000 2,887,500
------------
40,097,933
------------
TRANSPORT & SERVICE--5.2%
PROFESSIONAL SERVICES-3.2%
RemedyTemp, Inc.*...................................... 120,000 2,377,500
Tetra Tech, Inc........................................ 165,875 3,908,430
------------
6,285,930
------------
TRUCKING & SHIPPING-2.0%
Werner Enterprises, Inc................................ 206,750 3,876,563
------------
10,162,493
------------
<CAPTION>
SHARES VALUE
MISCELLANEOUS--2.0% -------- ------------
<S> <C> <C>
DIVERSIFIED-1.5%
Brady (W.H.) Cl. A..................................... 102,700 $ 3,016,813
------------
REAL ESTATE INVESTMENT TRUST-0.5%
Liberty Property Trust................................. 42,000 1,039,500
------------
4,056,313
------------
TOTAL COMMON STOCKS
(cost $149,117,130)................................... 197,507,008
------------
<CAPTION>
PRINCIPAL
AMOUNT
---------
<S> <C> <C>
COMMERCIAL PAPER--0.3% (amortized cost $601,000)
UBS Finance LLC 6.040%, 05/01/00**..................... $601,000 601,000
------------
TOTAL INVESTMENTS--100.5%
(cost $149,718,130)................................... 198,108,008
------------
LIABILITIES NET OF CASH AND OTHER ASSETS--(0.5%)....... (1,081,504)
------------
NET ASSETS--100.0%..................................... $197,026,504
============
</TABLE>
* Non-income producing
** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES VALUE
COMMON STOCKS--95.2% -------- -----------
<S> <C> <C>
AUSTRALIA-0.8%
National Australia Bank Ltd............................ 4,410 $ 60,420
Normandy Mining Ltd.................................... 39,440 23,033
Qantas Airways Ltd..................................... 42,100 90,232
Telstra Corporation Ltd................................ 36,150 154,959
The News Corporation Ltd............................... 9,810 124,584
Woodside Petroleum Ltd................................. 8,100 50,095
-----------
503,323
-----------
BELGIUM-0.4%
Fortis Cl. 'B'......................................... 10,970 276,945
-----------
DENMARK-0.5%
Tele Danmark AS........................................ 4,510 330,266
-----------
FINLAND-2.6%
Oy Nokia (Ab) Ser 'A'.................................. 30,400 1,743,872
-----------
FRANCE-10.3%
Accor SA............................................... 8,000 297,094
Air Liquide SA......................................... 2,137 278,201
Alcatel Alsthom........................................ 1,943 450,427
Aventis SA............................................. 4,700 258,503
CAP Gemini SA.......................................... 1,000 196,366
Carrefour SA........................................... 3,646 237,324
Danone Groupe.......................................... 1,310 286,417
Hachette Filipacchi Medias............................. 2,674 199,215
Lafarge SA............................................. 4,750 393,390
LVMH (Moet-Hennessy Luois Vuitton)..................... 860 360,891
Pinault-Printemps-Redoute SA........................... 1,500 302,594
PSA Peugeot Citroen SA................................. 1,000 206,911
Publicis SA............................................ 325 157,774
Rhodia SA.............................................. 10,365 192,226
Suez Lyonnaise des Eaux SA............................. 2,350 368,526
Television Francaise................................... 618 423,053
Total Fina SA.......................................... 9,040 1,371,628
Vivendi................................................ 8,140 805,128
-----------
6,785,668
-----------
GERMANY-5.8%
Allianz AG............................................. 1,904 714,873
Bayerische Vereinsbank AG.............................. 5,450 338,894
BASF AG................................................ 10,700 462,536
Celanese AG*........................................... 338 6,653
Deutsche Bank AG....................................... 3,200 214,984
Deutsche Lufthansa AG.................................. 10,690 224,492
Deutsche Telecom AG.................................... 13,220 847,290
Hoechst AG............................................. 7,490 203,594
SAP AG................................................. 1,380 815,463
-----------
3,828,779
-----------
HONG KONG-7.6%
Cheung Kong (Holdings) Ltd............................. 60,000 716,377
China Resources Enterprises Ltd........................ 110,000 138,397
China Telecom (Hong Kong) Ltd.......................... 172,000 1,242,104
Citic Pacific Ltd...................................... 170,000 779,156
Hong Kong & China Gas Company Ltd...................... 309,100 339,291
Hong Kong Electric Holdings............................ 55,000 171,584
Hutchison Whampoa Ltd.................................. 45,000 655,716
I-Cable Communications Ltd.*........................... 235 103
New World China Land Ltd............................... 190 49
New World Development Company Ltd...................... 125,000 168,503
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
Shanghai Industrial Holdings Ltd....................... 156,000 $ 281,390
SmarTone Telecommunications Holdings Ltd............... 61,000 191,085
Total Access Communication Public Company Ltd.......... 44,000 115,720
Wharf (Holdings) Ltd................................... 94,000 194,898
-----------
4,994,373
-----------
IRELAND-0.4%
Bank of Ireland Plc (London)........................... 19,960 134,278
Bank of Ireland Plc (Dublin)........................... 15,760 106,309
CRH Plc................................................ 1,493 23,875
-----------
264,462
-----------
ITALY-7.4%
Autogrill SPA.......................................... 29,412 280,754
Banca Nazionale del Lavoro SPA......................... 80,000 261,821
ENI SPA................................................ 60,782 302,255
Italcementi SPA........................................ 31,683 278,813
Mediolanum SPA......................................... 44,929 745,420
Saipem SPA............................................. 141,700 700,778
San Paolo-IMI SPA...................................... 91,800 1,285,213
Seat Pagine Gialle SPA................................. 210,000 628,097
Telecom Italia SPA..................................... 91,824 361,456
-----------
4,844,607
-----------
JAPAN-23.8%
Bank of Tokyo-Mitsubishi Ltd........................... 36,000 464,645
Bridgestone Corp. Ltd.................................. 16,000 347,391
Canon, Inc............................................. 12,000 548,863
Daiwa Securities Group, Inc............................ 15,000 229,156
Fujitsu Ltd............................................ 10,000 283,320
Fujitsu Support and Service, Inc....................... 3,000 444,424
Fujitsu Support and Service, Inc.--New*................ 3,000 348,317
Hitachi Ltd............................................ 40,000 477,756
Honda Motor Co. Ltd.................................... 11,000 491,922
Ito-Yokado Co. Ltd..................................... 5,000 365,261
Japan Tobacco Inc...................................... 39 287,070
Minebea Co. Ltd........................................ 24,000 293,320
Mitsubishi Chemical Corp. Ltd.......................... 130,000 521,180
Mitsui Fudosan Co. Ltd................................. 34,000 345,651
NEC Corp. Ltd.......................................... 25,000 680,524
Nintendo Co. Ltd....................................... 3,000 499,977
Nippon Express Co. Ltd................................. 55,000 347,299
Nippon Telegraph & Telephone Corp. Ltd................. 83 1,029,767
NTT Data Corporation Ltd............................... 36 479,978
NTT Mobile Communication Network, Inc.................. 40 1,336,975
Oji Paper Co. Ltd...................................... 60,000 376,649
Shiseido Co. Ltd....................................... 21,000 265,599
Sony Corp. Ltd......................................... 7,000 804,315
Sony Corporation New Ltd*.............................. 7,000 810,148
Sumitomo Bakelite Co. Ltd.............................. 40,000 440,350
Takeda Chemical Industries Ltd......................... 12,000 789,963
TDK Corp. Ltd.......................................... 4,000 535,901
The Asahi Bank Ltd..................................... 100,000 481,459
Toshiba Corp. Ltd...................................... 55,000 533,679
Toyota Motor Corp. Ltd................................. 12,000 596,639
World Co. Ltd.......................................... 2,000 148,141
World Co. Ltd--New*.................................... 1,000 75,182
-----------
15,680,821
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
NETHERLANDS-4.3%
Heineken NV............................................ 6,020 $ 333,840
ING Groep NV........................................... 13,260 723,521
Koninklijke (Royal) Philips Electronics NV............. 16,236 724,280
Lycos Europe NV*....................................... 1,630 24,895
VNU NV................................................. 6,000 321,003
StMicroelectronics NV.................................. 3,750 715,575
-----------
2,843,114
-----------
PORTUGAL-0.8%
Banco Pinto & Sotto Mayor SA........................... 11,931 250,445
Portugal Telecom SA.................................... 26,695 297,774
-----------
548,219
-----------
SINGAPORE-0.2%
Fraser & Neave Ltd..................................... 15,100 48,667
Singapore Airlines Ltd................................. 10,900 113,695
-----------
162,362
-----------
SPAIN-2.9%
Banco Santander SA..................................... 50,000 521,369
Endesa SA.............................................. 19,820 429,918
Grupo Dragados SA...................................... 50,445 385,220
Telefonica SA.......................................... 24,859 553,231
-----------
1,889,738
-----------
SWEDEN-2.6%
Nordbanken Holding AB.................................. 44,650 281,397
Telefonaktiebolaget LM Ericsson AB..................... 15,696 1,395,395
Tele1 Europe Holding AB*............................... 4,080 64,170
-----------
1,740,962
-----------
SWITZERLAND-4.7%
Nestle SA.............................................. 360 634,177
Novartis AG-Reg. Shares................................ 523 730,085
Roche Holding AG....................................... 40 417,454
Schindler Holding AG................................... 200 284,986
UBS-Union Bank of Switzerland Ltd...................... 2,135 522,708
Zurich Allied AG....................................... 1,215 516,078
-----------
3,105,488
-----------
<CAPTION>
SHARES VALUE
-------- -----------
<S> <C> <C>
UNITED KINGDOM-20.1%
AstraZeneca Group Plc.................................. 6,500 $ 272,325
Bank of Scotland Plc................................... 24,440 217,458
Barclays Plc........................................... 26,532 681,162
BG Group Plc........................................... 100,000 604,076
BP Amoco Plc........................................... 97,011 837,496
British Aerospace Plc.................................. 58,642 363,601
British Telecommunications Plc......................... 46,607 832,291
Cable & Wireless Plc................................... 27,440 454,982
Carlton Communications Plc............................. 10 121
CGU Plc................................................ 15,000 214,969
EMAP Plc............................................... 12,000 232,601
Energis Plc*........................................... 4,900 241,833
Glaxo Wellcome Plc..................................... 27,808 859,824
Hanson Plc............................................. 52,900 388,327
Invensys Plc........................................... 201,100 968,239
Kingfisher Plc......................................... 43,439 357,765
Prudential Corporation Plc............................. 40,690 630,018
Reed International Plc................................. 67,700 470,621
Royal Bank of Scotland Group Plc....................... 45,252 704,895
Smithkline Beecham Plc................................. 18,788 257,263
Shell Transport & Trading Co. Plc...................... 170,000 1,389,533
Tesco Plc.............................................. 61,860 210,437
Vodafone Group Plc..................................... 444,671 2,031,925
-----------
13,221,762
-----------
TOTAL INVESTMENTS--95.2%
(cost $50,590,166).................................... 62,764,761
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES--4.8%......... 3,139,747
-----------
NET ASSETS--100%....................................... $65,904,508
===========
</TABLE>
* Non-income producing
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES VALUE
COMMON STOCKS--86.8% ---------- -----------
<S> <C> <C>
ARGENTINA-2.6%
Banco de Galicia y Buenos Aires SA..................... 8,739 $ 37,953
IRSA Inversiones y Representaciones SA................. 13,500 39,852
PC Holdings SA......................................... 94,536 143,793
Siderca SA Cl. 'A'..................................... 44,150 93,662
Telefonica de Argentina SA ADR......................... 8,100 226,294
-----------
541,554
-----------
CHILE-1.7%
Cia Cervecerias Unidas SA ADR.......................... 3,760 83,895
Cia de Telecomunicaciones de Chile SA ADR.............. 7,963 147,315
Enersis SA ADR......................................... 2,273 42,335
Quimica Minera Chile SA ADR............................ 3,099 76,700
-----------
350,245
-----------
CHINA-7.5%
China Telecom (Hong Kong) Ltd.......................... 139,000 1,003,794
Citic Pacific Ltd...................................... 65,000 297,912
Legend Holdings Ltd.................................... 112,000 130,129
Pacific Century CyberWorks Ltd*........................ 70,000 130,309
-----------
1,562,144
-----------
CZECH REPUBLIC-2.7%
Ceske Energeticke Zavody AS*........................... 34,331 100,342
SPT Telecom AS*........................................ 20,840 387,663
Tabak AS............................................... 469 75,306
-----------
563,311
-----------
GREECE-1.8%
Bank of Piraeus........................................ 5,700 101,128
Panafon Hellenic Telecom SA............................ 16,400 197,670
Titan Cement Company SA................................ 1,800 72,456
-----------
371,254
-----------
HUNGARY-1.4%
Gedeon Richter Rt...................................... 460 25,530
Magyar Tavkozlesi Rt.*................................. 3,900 135,769
Mol Magyar Olaj GDR.................................... 7,000 123,375
-----------
284,674
-----------
INDIA-3.4%
ICICI Bank Ltd.*....................................... 7,000 120,750
Mahindra & Mahindra Ltd. GDR*.......................... 25,000 168,750
Mahanagar Telephone Nigam Ltd.......................... 17,000 222,062
Ranbaxy Laboratories GDR............................... 6,000 114,450
Videsh Sanchar GDR*.................................... 4,000 80,001
-----------
706,013
-----------
INDONESIA-0.4%
PT Telekomunikasi Indonesia ADR........................ 10,000 86,250
-----------
ISRAEL-2.7%
Check Point Software Technologies Ltd.*................ 1,000 173,000
ECI Telecom Ltd........................................ 3,000 83,438
Elbit Medical Imaging Ltd.............................. 2,000 20,750
Scitex Corporation Ltd.*............................... 6,000 71,250
Teva Pharmaceutical Industries Ltd..................... 5,000 220,000
-----------
568,438
-----------
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C>
MALAYSIA-6.1%
Berjaya Sports Toto Bhd................................ 38,600 $ 80,755
Gamuda Bhd............................................. 28,000 37,210
Genting Bhd............................................ 22,000 88,579
Malayan Banking Bhd.................................... 57,100 237,416
Public Bank Bhd........................................ 54,000 75,316
Rothmans of Pall Mall Bhd.............................. 12,500 97,039
Tanjong Plc............................................ 25,000 69,079
Telecom Malaysia Bhd................................... 65,500 227,526
Tenaga Nasional Bhd.................................... 62,400 206,905
Unisem (M) Bhd......................................... 8,000 71,053
YTL Corporation Bhd.................................... 48,000 78,316
YTL Corporation Bhd Warrants*.......................... 3,650 2,113
-----------
1,271,307
-----------
MEXICO-11.9%
Cemex SA de CV......................................... 34,300 149,447
Cifra SA de CV Ser. 'V'................................ 171,402 397,084
Fomento Economico Mexicano SA de CV.................... 66,000 271,435
Grupo Carso SA de CV Ser. 'A'*......................... 51,810 176,187
Grupo Financiero Banamex Accival SA de CV.............. 25,200 91,320
Grupo Financiero Banorte SA de CV...................... 51,700 72,523
Grupo Industrial Bimbo SA de CV........................ 58,436 76,383
Grupo Iusacell SA de CV ADR*........................... 7,000 111,563
Grupo Televisa SA GDR*................................. 4,200 266,437
Telefonos de Mexico SA Cl. 'L' ADR..................... 14,400 846,900
-----------
2,459,279
-----------
PHILIPPINES-1.5%
Manila Electric Company Cl. 'B'........................ 80,000 143,393
Philippine Long Distance Telephone Co.................. 9,000 165,938
-----------
309,331
-----------
POLAND-0.5%
Telekomukacja Polska SA................................ 15,190 111,461
-----------
SOUTH AFRICA-6.5%
Anglo American Corp.................................... 2,900 122,920
AngloGold Ltd.......................................... 600 22,830
Barlow Ltd............................................. 9,500 59,896
De Beers Centenary AG.................................. 18,675 382,837
Liberty Life Association of Africa Ltd................. 4,900 45,889
Metro Cash & Carry Ltd................................. 162,300 122,314
Nedcor Ltd............................................. 5,500 104,314
Pick' N Pay Stores Ltd................................. 40,800 64,385
Rembrandt Group Ltd.................................... 17,700 137,308
Sasol Ltd.............................................. 20,000 117,395
South African Breweries Ltd............................ 20,540 151,464
Standard Bank Investment Corp. Ltd..................... 5,746 21,186
-----------
1,352,738
-----------
SOUTH KOREA-14.2%
Korea Electrical Power ADR............................. 19,000 311,125
L.G. Chemical Ltd...................................... 7,000 160,847
Samsung Electronics GDR................................ 9,000 1,450,575
Samsung Electro-Mechanics Co. Ltd...................... 5,000 340,167
Shinhan Bank Ltd....................................... 30,000 287,902
SK Telecom Co. Ltd..................................... 12,000 384,750
-----------
2,935,366
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES VALUE
---------- -----------
<S> <C> <C>
TAIWAN-13.5%
Acer, Inc.*............................................ 18,200 $ 193,375
Cathay Construction Corp............................... 152,050 51,685
Cathay Life Insurance Co. Ltd.......................... 26,611 64,364
Evergreen Marine Corp.................................. 63,914 50,137
Far Eastern Textile Ltd................................ 153,299 235,498
Formosa Chemicals & Fibre Corp......................... 52,179 71,630
Hon Hai Precision Industry*............................ 73,626 709,909
Hua Nan Commercial Bank................................ 31,315 28,864
International Commercial Bank of China................. 63,701 50,594
Microtek International, Inc.*.......................... 72,980 45,322
Pacific Electrical Wire & Cable Corp.*................. 122,792 121,207
Taiwan Semiconductor
Manufacturing Co. Ltd*............................... 12,650 661,753
U-Ming Marine Transport Corp........................... 102,206 37,582
United Microelectronics Corp........................... 140,000 473,607
Yang Ming Marine Transport............................. 4,801 2,793
-----------
2,798,320
-----------
THAILAND-3.7%
Bangkok Bank Public Co. Ltd............................ 95,100 161,144
PTT Exploration and Production Public Co. Ltd*......... 13,100 66,421
Siam Cement Public Co. Ltd............................. 4,700 108,656
TelecomAsia Corporation Public Co. Ltd*................ 165,900 222,275
Thai Farmers Bank Public Co. Ltd....................... 195,200 205,123
-----------
763,619
-----------
TURKEY-2.7%
Akcansa Cimento AS..................................... 2,896,000 63,944
Aygar AS............................................... 894,000 102,349
Tupras-Turkiye Petrol Rafinerileri AS.................. 1,399,000 96,098
Turkiye Garanti Bankasi AS*............................ 6,255,000 105,368
Yapi ve Kredi Bankasi AS............................... 6,078,000 193,839
-----------
561,598
-----------
VENEZUELA-2.0%
Compania Anonima Nacional Telefonos de Venezuela....... 14,000 406,000
-----------
TOTAL COMMON STOCKS
(cost $16,536,330).................................... 18,002,902
-----------
<CAPTION>
PREFERRED SHARES VALUE
STOCKS--12.5% ---------- -----------
<S> <C> <C>
BRAZIL-12.5%
Banco Itau SA Prf...................................... 1,600,000 $ 119,634
Centrais Electricas Brasileiras SA Prf Cl. 'B'......... 14,651,000 241,817
Companhia Cervejaria Brahma SA Prf..................... 224,000 162,526
Companhia Brasileira de Distribuicao Grupo Pao de
Acucar Prf........................................... 3,000,000 85,572
Companhia Paranaense de Energia-Copel ADR Prf.......... 13,000 95,875
Companhia Energetica de Minas Gerais SA Prf............ 5,757,000 87,686
Companhia Siderurgica Nacional SA Prf.................. 3,055,000 86,278
Companhia Vale do Rio Doce SA Prf...................... 15,000 371,365
Globo Cabo SA Prf*..................................... 81,000 136,832
Embratel Participacoes SA Prf.......................... 14,498,000 325,211
Petroleo Brasileiro SA Prf............................. 1,334,000 317,782
Tele Celular Sul Participacoes SA Prf.................. 26,257,000 75,622
Tele Centro Sul Participacoes SA Prf................... 8,787,000 114,856
Tele Norte Leste Participacoes SA Prf*................. 7,485,000 153,431
Telesp Celular Participacoes SA Prf*................... 8,842,000 158,670
Unibanco-Uniao de Bancos Brasileiros SA................ 2,654,730 58,814
-----------
TOTAL PREFERRED STOCKS
(cost $2,587,506)..................................... 2,591,971
-----------
TOTAL INVESTMENTS--99.3%
(cost $19,123,836).................................... 20,594,873
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES--0.7%......... 145,449
-----------
NET ASSETS--100%....................................... $20,740,322
===========
</TABLE>
* Non-income producing
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP FIXED INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
U.S. GOVERNMENT AMOUNT VALUE
OBLIGATIONS--30.6% ---------- ------------
<S> <C> <C>
United States Treasury Bills
5.621% 05/04/00.................................... $2,775,000 $ 2,773,725
5.708% 07/06/00.................................... 2,775,000 2,746,445
United States Treasury Bonds
7.500%, 11/15/16................................... 4,000,000 4,488,600
United States Treasury Notes
6.125%, 12/31/01................................... 5,350,000 5,303,295
6.500%, 03/31/02................................... 4,400,000 4,384,864
6.250%, 08/31/02................................... 4,750,000 4,709,007
6.250%, 02/15/03................................... 6,250,000 6,191,125
7.000%, 07/15/06................................... 7,250,000 7,424,290
6.125%, 08/15/07................................... 4,000,000 3,922,560
------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(cost $42,203,829).................................. 41,943,911
------------
U.S. GOVERNMENT AGENCIES--27.8%
Federal Home Loan Bank
7.360%, 07/01/04................................... 6,000,000 6,021,900
Federal Home Loan Mortgage Corp.
Pool #220016 8.750%, 10/01/01...................... 1,988 2,016
6.300%, 06/01/04................................... 5,000,000 4,810,550
6.000%, 07/19/04................................... 2,000,000 1,903,120
6.875%, 11/22/06................................... 500,000 480,110
7.625%, 09/09/09................................... 3,000,000 2,928,390
Pool #260499 10.000%, 04/01/16..................... 14,155 15,177
Pool #292065 8.500%, 04/01/17...................... 1,651,998 1,694,835
Pool #606523 7.008%, 10/01/19...................... 840,263 856,018
Federal National Mortgage Association
Pool #312088 7.000%, 06/01/02...................... 537,427 528,021
Pool #76368 9.250%, 09/01/03....................... 30,794 32,160
Pool #76378 9.250%, 09/01/03....................... 55,619 58,087
5.625%, 05/14/04................................... 9,625,000 9,083,016
5.750%, 06/15/05................................... 3,000,000 2,811,030
6.950%, 11/13/06................................... 1,000,000 963,130
Pool #125136 8.000%, 07/01/07...................... 669,344 676,660
Pool # 035574 8.750%, 10/01/08..................... 123,758 126,388
Pool #004542 12.000%, 12/01/08..................... 214,641 241,538
Pool #243876 9.000%, 01/01/09...................... 167,522 172,181
6.375%, 06/15/09................................... 2,404,000 2,254,327
Pool #270674 9.000%, 09/01/17...................... 380,867 391,459
Pool #224635 9.000%, 09/01/20...................... 102,682 105,537
Pool #124211 7.410%, 12/01/21...................... 1,209,522 1,221,617
Pool #124790 9.000%, 02/01/23...................... 446,491 458,908
Government National Mortgage Association
Pool #93401 9.500%, 01/15/10....................... 116,480 121,539
Pool #058985 11.000%, 07/15/13..................... 13,435 14,783
Pool #068764 12.000%, 09/15/13..................... 17,472 19,754
Pool #296254 9.500%, 09/15/20...................... 4,667 4,896
------------
TOTAL U.S. GOVERNMENT AGENCIES
(cost $39,513,037).................................. 37,997,147
------------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
CORPORATE BONDS--40.2% ---------- ------------
<S> <C> <C>
CONSUMER PRODUCTS & SERVICES-7.6%
Anheuser Busch Cos.
7.000%, 09/01/05................................... $1,500,000 $ 1,479,375
Coca-Cola Company
6.700%, 10/15/36................................... 4,100,000 3,982,125
Tyco International Group, Inc.
6.125%, 06/15/01................................... 5,000,000 4,931,250
------------
10,392,750
------------
FINANCIAL-20.9%
Associates Corp.
5.875%, 07/15/02................................... 5,000,000 4,831,250
Barclays Bank PLC
7.400%, 12/15/09................................... 2,500,000 2,403,125
Ford Motor Credit Co.
7.375%, 10/28/09................................... 5,000,000 4,843,750
J.P. Morgan & Co.
5.750%, 02/25/04................................... 3,000,000 2,812,500
Household Finance Co.
6.000%, 05/01/04................................... 4,550,000 4,271,313
MBNA Master Credit Card Trust
6.450%, 02/15/08................................... 5,000,000 4,826,600
Sears Credit Account Master Trust
Series 1995-2
8.100%, 06/15/04................................... 562,500 565,520
Standard Credit Card Master Trust
8.250%, 11/07/03................................... 4,000,000 4,076,880
------------
28,630,938
------------
PUBLIC UTILITIES-4.9%
Consolidated Natural Gas Co.
6.875%, 10/15/26................................... 2,000,000 1,867,500
National Rural Utilities Cooperative
Finance Corp.
6.125%, 05/15/05................................... 1,000,000 941,250
Oklahoma Gas & Electric Co.
6.500%, 07/15/17................................... 4,000,000 3,835,000
------------
6,643,750
------------
TELECOMMUNICATIONS-6.8%
AT&T Corp.
6.000%, 03/15/09................................... 5,000,000 4,468,750
MCI Communications Corp.
6.125%, 04/15/02................................... 5,000,000 4,868,750
------------
9,337,500
------------
TOTAL CORPORATE BONDS
(cost $57,740,824).................................... 55,004,938
------------
TOTAL INVESTMENTS--98.6%
(cost $139,457,690)................................... 134,945,996
------------
CASH AND OTHER ASSETS NET OF LIABILITIES--1.4%......... 1,948,057
------------
NET ASSETS--100.0%..................................... $136,894,053
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP MUNICIPAL TRUST FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
MUNICIPAL BONDS--100.0% ---------- -----------
<S> <C> <C>
COLORADO-6.3%
Denver, Colorado City & County Airport 6.750%,
11/15/22............................................. $1,580,000 $ 1,593,825
-----------
ILLINOIS-8.4%
Chicago, Illinois Metropolitan Water Reclamation
District
5.750%, 12/01/01..................................... 1,000,000 1,015,000
Chicago, Illinois Metropolitan Water Reclamation
District
7.000%, 01/01/11..................................... 1,000,000 1,126,250
-----------
2,141,250
-----------
INDIANA-5.8%
Indiana University Revenue
Student Fee Ser. K
6.500%, 08/01/05..................................... 1,000,000 1,062,500
Whiting Industrial Sewage and Solid Waste Disposal
6.200%, 01/02/26..................................... 400,000 400,000
-----------
1,462,500
-----------
IOWA-4.1%
Iowa Student Loan Liquidation Corp.
6.800%, 03/01/05..................................... 1,000,000 1,038,750
-----------
NEW YORK-8.2%
New York City, New York Ser. G
5.750%, 02/01/08..................................... 1,000,000 1,025,000
New York State Dormitory
Authority Revenue
6.500%, 05/15/06..................................... 1,000,000 1,061,250
-----------
2,086,250
-----------
OKLAHOMA-6.4%
Grand River Dam Authority, Oklahoma 6.250%, 06/01/11... 1,500,000 1,620,000
-----------
PUERTO RICO-8.1%
Puerto Rico Commonwealth Refunding 5.100%, 07/01/02.... 1,000,000 1,005,000
Puerto Rico Electric Power Authority
6.000%, 07/01/11..................................... 1,000,000 1,067,500
-----------
2,072,500
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<S> <C> <C>
TENNESSEE-4.1%
Memphis, Tennessee Electric System 6.000%, 01/01/05.... $1,000,000 $ 1,041,250
-----------
TEXAS-36.8%
Dallas, Texas Improvement
4.000%, 02/15/04..................................... 1,000,000 951,250
Houston, Texas Revenue
5.000%, 03/01/05..................................... 2,000,000 2,000,000
Lewisville, Texas Independent School District
6.000%, 08/15/01..................................... 1,000,000 1,017,500
Plano, Texas Independent School District
6.000%, 02/15/05..................................... 2,000,000 2,080,000
Port Authority of Houston, Texas
5.375%, 10/01/05..................................... 1,275,000 1,297,313
San Antonio, Texas Electric & Gas
5.000%, 02/01/12..................................... 1,000,000 961,281
Texas State Refunding Ser. A
6.000%, 10/01/08..................................... 1,000,000 1,057,500
-----------
9,364,844
-----------
WASHINGTON-3.9%
Washington State General Obligation 5.000%, 01/01/05... 1,000,000 998,750
-----------
WISCONSIN-7.9%
Wisconsin State Clean Water Revenue 5.000%, 06/01/03... 2,000,000 2,007,500
-----------
TOTAL INVESTMENTS--100.0%
(cost $25,615,413).................................... 25,427,419
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES--0.0%......... 5,077
-----------
NET ASSETS--100.0%..................................... $25,432,496
===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP HIGH INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
CORPORATE BONDS--92.8% --------- -----------
<S> <C> <C>
AEROSPACE-1.5%
BE Aerospace, Inc. Ser. B 8.000%, 03/01/08**........... $250,000 $ 202,500
-----------
CHEMICALS-5.4%
Avecia Group, Inc 11.000%, 07/01/09**.................. 250,000 255,000
Huntsman ICI Chemicals LLC 10.125%, 07/01/09**......... 250,000 251,250
Lyondell Chemical Co. 10.875%, 05/01/09**.............. 250,000 248,125
-----------
754,375
-----------
CONSUMER NON-DURABLE-1.8%
Consolidated Container Co. LLC, 10.125%, 07/15/09**.... 250,000 248,125
-----------
ENERGY-1.8%
R&B Falcon Corp. 9.500%, 12/15/08**.................... 250,000 247,500
-----------
FINANCIAL SERVICES-3.5%
AmeriCredit Corp. 9.875%, 04/15/06**................... 250,000 246,875
Metris Companies, Inc. 10.125%, 07/15/06**............. 250,000 241,250
-----------
488,125
-----------
FOOD & TOBACCO-6.3%
Advantica Restaurant Group, Inc. 11.250%, 01/15/08**... 250,000 166,250
Canandaigua Brands, Inc. 8.500%, 03/01/09**............ 250,000 239,200
National Wine & Spirits Holdings Corp. 10.125%,
01/15/09**........................................... 250,000 240,000
Triarc Consumer Group, Inc. 10.250%, 02/15/09**........ 250,000 236,250
-----------
881,700
-----------
FOREST PRODUCTS/CONTAINERS-3.4%
Packaging Corp. of America 9.625%, 04/01/09**.......... 250,000 253,125
Phoenix Color Corp. 10.375%, 02/01/09**................ 250,000 223,750
-----------
476,875
-----------
GAMING/LEISURE-5.4%
Argosy Gaming Co. 10.750%, 06/01/09**.................. 250,000 261,250
Mohegan Tribal Gaming 8.750%, 01/01/09**............... 250,000 237,500
Station Casinos, Inc. 10.125%, 03/15/06**.............. 250,000 256,250
-----------
755,000
-----------
HEALTHCARE-5.2%
Express Scripts, Inc. 9.625%, 06/15/09**............... 250,000 238,750
ICN Pharmaceutical, Inc. 8.750%, 11/15/08*,**.......... 250,000 233,750
King Pharmaceutical, Inc. 10.750%, 02/15/09**.......... 250,000 256,250
-----------
728,750
-----------
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
HOUSING-1.6%
HMH Properties 7.875%, 08/01/08**...................... $250,000 $ 217,500
-----------
INFORMATION TECHNOLOGY-1.8%
Fairchild Semiconductor Corp. 10.375%, 10/01/07**...... 250,000 251,875
-----------
MANUFACTURING-MISC.-5.1%
BGF Industries, Inc. 10.250%, 01/15/09**............... 250,000 222,562
Gentek, Inc. 11.000%, 08/01/09**....................... 250,000 254,375
Riverwood International Corp. 10.875%, 04/01/08**...... 250,000 241,250
-----------
718,187
-----------
MEDIA/ENTERTAINMENT-13.4%
Adelphia Communications Corp. 7.875%, 05/01/09......... 250,000 214,688
American Media Operations 10.250%, 05/01/09**.......... 250,000 237,500
Carmike Cinemas, Inc. Ser. B 9.375%, 02/01/09**........ 250,000 168,750
Charter Communications Holdings LLC 8.625%,
04/01/09**........................................... 250,000 219,688
Echostar DBS Corp. 9.375%, 02/01/09**.................. 250,000 243,750
Liberty Group, Inc. 9.375%, 02/01/08**................. 250,000 216,250
Premier Parks, Inc. 9.250%, 04/01/06**................. 250,000 235,625
Regal Cinemas, Inc. 9.500%, 06/01/08**................. 250,000 103,750
United Pan-Europe Communications NV 10.875%,
08/01/09**........................................... 250,000 227,500
-----------
1,867,501
-----------
METAL & MINERALS-3.2%
Kaiser Aluminum & Chemical Corp. 12.750%, 02/01/03**... 250,000 237,500
LTV Corp. 8.200%, 09/15/07**........................... 250,000 212,500
-----------
450,000
-----------
RETAIL-4.9%
MusicLand Group, Inc. 9.000%, 06/15/03**............... 250,000 226,250
Rent-A-Center, Inc. 11.000%, 08/15/08**................ 250,000 248,750
Simmons Co. Ser. B 10.250%, 03/15/09**................. 250,000 212,500
-----------
687,500
-----------
SERVICE-1.2%
Allied Waste North America, Inc. 10.000%, 08/01/09**... 250,000 170,625
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
DLJ WINTHROP HIGH INCOME FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
TELECOMMUNICATIONS-20.7%
Covad Communications Group, Inc. 12.000%,
02/15/10*,**......................................... $250,000 $ 236,250
Crown Castle International Corp. 9.000%, 05/15/11**.... 250,000 233,750
Dobson/Sygnet Communications, Inc. 13.000%,
05/01/09**........................................... 257,000 279,961
Esat Telecom Group PLC Ser. B 11.875%, 12/01/08**...... 250,000 293,750
Hermes Europe Railtel BV 11.500%, 08/15/07**........... 250,000 226,250
Nextlink Communications, Inc. 9.750%, 08/15/04**....... 250,000 246,875
NTL, Inc. Ser. B 12.375%, 10/01/08**,***............... 250,000 164,375
Pegasus Communications Corp. 9.750%, 12/01/06**........ 250,000 246,250
Primus Telecommunications Group, Inc. 11.750%,
08/01/04**........................................... 250,000 235,000
PSI Net, Inc. Ser. B 10.000%, 02/15/05**............... 250,000 225,000
Time Warner Telecom, Inc. 9.750%, 07/15/08**........... 250,000 246,250
Williams Communications Group, Inc. 10.875%,
10/01/09**........................................... 250,000 252,500
-----------
2,886,211
-----------
TRANSPORTATION AUTOMOTIVE-6.6%
American Axle & Manufacturing Holdings, Inc. 9.750%,
03/01/09**........................................... 250,000 240,000
Atlas Air, Inc. 9.375%, 11/15/06**..................... 250,000 238,750
<CAPTION>
PRINCIPAL
AMOUNT VALUE
--------- -----------
<S> <C> <C>
Roller Bearing Company of America Ser. B 9.625%,
06/15/07**........................................... $250,000 $ 231,500
Venture Holdings Trust 11.000%, 06/01/07**............. 250,000 211,250
-----------
921,500
-----------
TOTAL BONDS
(cost $13,931,297).................................... 12,953,849
-----------
COMMERCIAL PAPER--5.1% (amortized cost $711,000)
UBS Finance LLC 6.040%, 05/01/00****................... 711,000 711,000
-----------
TOTAL INVESTMENTS--97.9%
(cost $14,642,297).................................... 13,664,849
-----------
CASH AND OTHER ASSETS NET OF LIABILITIES--2.1%......... 287,909
-----------
NET ASSETS--100.0%..................................... $13,952,758
===========
</TABLE>
* Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from the
registration, normally to qualified institutional buyers. As of April 30,
2000, the value of these securities amounted to $470,000 or 3.4% of net
assets.
** Security has an effective maturity date less than the stated maturity date
due to a call feature.
*** Zero coupon until a specified date at which time the stated coupon rate
becomes effective until maturity.
**** Commercial paper is traded on a discount basis; the interest rate shown
reflects the discount rate paid at the time of purchase by the Fund.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF ASSETS AND LIABILITIES APRIL 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP EQUITY FUNDS
<TABLE>
<CAPTION>
SMALL
GROWTH GROWTH AND COMPANY INTERNATIONAL DEVELOPING
FUND INCOME FUND VALUE FUND EQUITY FUND MARKETS FUND
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$137,636,587, $188,734,309, $149,718,130,
$50,590,166, and $19,123,836,
respectively).................................... $222,892,382 $254,769,749 $198,108,008 $62,764,761 $20,594,873
Cash--foreign, at value (cost $2,810,400).......... -- -- -- 2,700,149 --
Cash--domestic..................................... 4,819 313 641 -- --
Receivable for investment securities sold.......... -- 1,219,359 327,927 1,411,005 641,798
Receivable for capital stock sold.................. 310,241 16,757 19,261 82,619 25,000
Dividends and interest receivable.................. 103,244 267,697 118,533 248,895 120,243
Reimbursement due from advisor..................... -- -- -- -- 41,422
Deferred organization costs (Note A)............... -- -- -- 2,489 2,489
Other assets....................................... -- 169 1,778 -- --
------------ ------------ ------------ ----------- -----------
Total assets................................... 223,310,686 256,274,044 198,576,148 67,209,918 21,425,825
------------ ------------ ------------ ----------- -----------
LIABILITIES:
Payable to advisor................................. 111,006 119,517 130,787 69,599 --
Payable to distributor............................. 74,056 75,235 58,130 34,247 14,261
Payable for investment securities purchased........ -- 2,239,548 720,000 883,510 151,624
Payable for capital stock redeemed................. 323,314 833,491 323,857 120,000 243
Cash overdraft due to custodian.................... -- -- -- 13,624 366,752
Accrued expenses and other liabilities............. 155,755 217,651 316,870 184,430 152,623
------------ ------------ ------------ ----------- -----------
Total liabilities.............................. 664,131 3,485,442 1,549,644 1,305,410 685,503
------------ ------------ ------------ ----------- -----------
NET ASSETS............................................. $222,646,555 $252,788,602 $197,026,504 $65,904,508 $20,740,322
============ ============ ============ =========== ===========
NET ASSETS CONSIST OF:
Capital paid-in.................................... $128,721,377 $161,974,229 $125,527,732 $51,031,482 $21,959,276
Undistributed (Distributions in excess of) net
investment income................................ -- 926,930 127,738 -- 399,061
Accumulated net investment loss.................... (309,996) -- -- (200,781) --
Accumulated net realized gain (loss) on
investments...................................... 8,979,379 23,852,003 22,981,156 3,011,347 (3,082,977)
Net unrealized appreciation on investments......... 85,255,795 66,035,440 48,389,878 12,062,460 1,464,962
------------ ------------ ------------ ----------- -----------
$222,646,555 $252,788,602 $197,026,504 $65,904,508 $20,740,322
============ ============ ============ =========== ===========
CLASS A SHARES:
Net assets......................................... $158,422,606 $166,701,296 $179,741,213 $55,153,620 $17,570,963
============ ============ ============ =========== ===========
Shares outstanding................................. 7,068,654 7,102,587 8,779,598 4,142,289 1,582,588
============ ============ ============ =========== ===========
Net asset value and redemption value per share..... $ 22.41 $ 23.47 $ 20.47 $ 13.31 $ 11.10
============ ============ ============ =========== ===========
Maximum offering price per share (net asset value
plus maximum sales charge)....................... $ 23.78 $ 24.90 $ 21.72 $ 14.12 $ 11.78
============ ============ ============ =========== ===========
CLASS B SHARES:
Net assets......................................... $ 43,455,684 $ 41,367,934 $ 17,285,013 $ 5,934,481 $ 3,169,141
============ ============ ============ =========== ===========
Shares outstanding................................. 1,998,010 1,774,271 863,780 461,407 294,981
============ ============ ============ =========== ===========
Net asset value and offering price per share....... $ 21.75 $ 23.32 $ 20.01 $ 12.86 $ 10.74
============ ============ ============ =========== ===========
CLASS C SHARES:
Net assets......................................... $ 230,396 $ 51,266 $ 278 $ 241 $ 218
============ ============ ============ =========== ===========
Shares outstanding................................. 10,594 2,201 14 19 20
============ ============ ============ =========== ===========
Net asset value and offering price per share....... $ 21.75 $ 23.30 $ 20.00 $ 12.86 $ 10.75
============ ============ ============ =========== ===========
CLASS D SHARES:
Net assets......................................... $ 20,537,869 $ 44,668,106 $ 4,816,166
============ ============ ===========
Shares outstanding................................. 915,030 1,901,870 360,805
============ ============ ===========
Net asset value and offering price per share....... $ 22.45 $ 23.49 $ 13.35
============ ============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF ASSETS AND LIABILITIES APRIL 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FIXED
INCOME MUNICIPAL HIGH INCOME
FUND TRUST FUND FUND
------------ ----------- -----------
<S> <C> <C> <C>
ASSETS:
Investments in securities, at value (cost
$139,457,690, $25,615,413, and $14,642,297,
respectively).................................... $134,945,996 $25,427,419 $13,664,849
Cash............................................... 33,979 -- 628
Receivable for capital stock sold.................. -- -- 43,000
Dividends and interest receivable.................. 2,504,639 408,508 389,652
Reimbursement due from advisor..................... -- 11,570 26,747
Other assets....................................... 36,306 -- --
------------ ----------- -----------
Total assets................................... 137,520,920 25,847,497 14,124,876
------------ ----------- -----------
LIABILITIES:
Payable to advisor................................. 36,832 -- --
Payable to distributor............................. 12,184 6,948 3,501
Payable for investment securities purchased........ -- -- --
Payable for capital stock redeemed................. 529,602 152,600 28,636
Cash overdraft due to custodian.................... -- 224,314 --
Dividend payable................................... 47,722 27,854 26,733
Accrued expenses and other liabilities............. 527 3,285 113,248
------------ ----------- -----------
Total liabilities.............................. 626,867 415,001 172,118
------------ ----------- -----------
NET ASSETS............................................. $136,894,053 $25,432,496 $13,952,758
============ =========== ===========
NET ASSETS CONSIST OF:
Capital paid-in.................................... $144,043,394 $25,734,919 $14,912,568
Distributions in excess of net investment income... (48,592) -- --
Accumulated net realized gain (loss) on
investments...................................... (2,589,055) (114,429) 17,638
Net unrealized depreciation on investments......... (4,511,694) (187,994) (977,448)
------------ ----------- -----------
$136,894,053 $25,432,496 $13,952,758
============ =========== ===========
CLASS A SHARES:
Net assets......................................... $ 37,011,043 $24,476,536 $10,918,118
============ =========== ===========
Shares outstanding................................. 3,841,171 2,474,885 1,168,761
============ =========== ===========
Net asset value and redemption value per share..... $ 9.64 $ 9.89 $ 9.34
============ =========== ===========
Maximum offering price per share (net asset value
plus maximum sales charge)....................... $ 10.12 $ 10.38 $ 9.81
============ =========== ===========
CLASS B SHARES:
Net assets......................................... $ 3,369,649 $ 955,709 $ 1,611,352
============ =========== ===========
Shares outstanding................................. 349,728 96,678 172,475
============ =========== ===========
Net asset value and offering price per share....... $ 9.64 $ 9.89 $ 9.34
============ =========== ===========
CLASS C SHARES:
Net assets......................................... $ 250 $ 251 $ 248
============ =========== ===========
Shares outstanding................................. 26 25 27
============ =========== ===========
Net asset value and offering price per share....... $ 9.63 $ 9.87 $ 9.34
============ =========== ===========
CLASS D SHARES:
Net assets......................................... $ 96,513,111 $ 1,423,040
============ ===========
Shares outstanding................................. 10,016,134 152,377
============ ===========
Net asset value and offering price per share....... $ 9.64 $ 9.34
============ ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP EQUITY FUNDS
<TABLE>
<CAPTION>
SMALL
GROWTH GROWTH AND COMPANY INTERNATIONAL DEVELOPING
FUND INCOME FUND VALUE FUND EQUITY FUND MARKETS FUND
----------- ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.......................................... $ 802,303 $ 1,982,042 $ 1,581,159 $ 459,128 $ 190,309
Interest........................................... 168,308 182,298 55,081 64,266 19,049
----------- ------------ ----------- ---------- ----------
970,611 2,164,340 1,636,240 523,394 209,358
Less withholding tax on foreign source
dividends...................................... -- -- -- (37,263) (13,090)
----------- ------------ ----------- ---------- ----------
Total investment income.......................... 970,611 2,164,340 1,636,240 486,131 196,268
----------- ------------ ----------- ---------- ----------
EXPENSES:
Investment advisory fees (Note B).................. 624,348 730,336 802,445 398,011 142,852
Distribution fees--Class A (Note B)................ 221,899 252,807 269,964 67,717 24,436
Distribution fees--Class B (Note B)................ 193,012 205,237 89,544 29,593 16,537
Distribution fees--Class C (Note B)................ 98 23 1 1 1
Transfer agent fees................................ 99,000 111,000 148,000 38,000 33,000
Custodian fees..................................... 47,000 60,000 50,000 52,000 47,000
Registration fees.................................. 22,000 30,000 27,000 29,000 15,000
Printing fees...................................... 12,000 13,000 15,000 15,000 7,000
Legal fees......................................... 18,000 21,000 20,000 17,000 12,000
Auditing fees...................................... 9,000 11,000 12,000 16,000 7,000
Trustees' fees (Note B)............................ 9,000 16,000 14,000 7,000 4,000
Amortization of organization costs (Note A)........ -- -- -- 11,329 11,329
Miscellaneous...................................... 25,250 18,109 10,495 6,261 2,040
----------- ------------ ----------- ---------- ----------
Total expenses................................... 1,280,607 1,468,512 1,458,449 686,912 322,195
Less expenses reimbursed by advisor and/ or
subadvisor (Note B)............................ -- -- -- -- (64,087)
----------- ------------ ----------- ---------- ----------
Net expenses..................................... 1,280,607 1,468,512 1,458,449 686,912 258,108
----------- ------------ ----------- ---------- ----------
NET INVESTMENT INCOME (LOSS)........................... (309,996) 695,828 177,791 (200,781) (61,840)
----------- ------------ ----------- ---------- ----------
REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS--NOTE C:
Net realized gain on investments................... 8,997,418 24,350,092 23,004,466 3,102,112 1,479,297
Net realized loss on foreign currency
transactions..................................... -- -- -- (25,696) (18,811)
Net change in unrealized appreciation on
investments...................................... 16,366,804 (17,523,524) (3,649,795) 1,919,710 736,298
Net change in unrealized appreciation on
translation of foreign currency denominated
assets and liabilities........................... -- -- -- (128,256) (29,411)
----------- ------------ ----------- ---------- ----------
Net realized and unrealized gain on investments and
foreign currency transactions.................... 25,364,222 6,826,568 19,354,671 4,867,870 2,167,373
----------- ------------ ----------- ---------- ----------
INCREASE IN NET ASSETS FROM OPERATIONS................. $25,054,226 $ 7,522,396 $19,532,462 $4,667,089 $2,105,533
=========== ============ =========== ========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL 30,
2000 (UNAUDITED)
--------------------------------------------------------------------------------
DLJ WINTHROP FIXED INCOME FUNDS
<TABLE>
<CAPTION>
FIXED
INCOME MUNICIPAL HIGH INCOME
FUND TRUST FUND FUND
----------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest........................................... $ 4,732,859 $ 667,311 $ 728,514
----------- --------- ---------
EXPENSES:
Investment advisory fees (Note B).................. 437,083 85,388 49,332
Distribution fees--Class A (Note B)................ 60,055 39,480 13,984
Distribution fees--Class B (Note B)................ 19,378 5,021 8,536
Distribution fees--Class C (Note B)................ 1 1 1
Transfer agent fees................................ 30,000 24,000 25,000
Custodian fees..................................... 53,000 22,500 23,000
Registration fees.................................. 30,000 14,000 42,000
Printing fees...................................... 11,000 4,000 13,000
Legal fees......................................... 15,000 5,000 28,000
Auditing fees...................................... 9,000 3,000 14,000
Trustees' fees (Note B)............................ 7,000 3,000 10,000
Miscellaneous...................................... 31,227 1,785 12,426
----------- --------- ---------
Total expenses................................... 702,744 207,175 239,279
Less expenses reimbursed by advisor (Note B)..... (98,509) (66,364) (156,855)
----------- --------- ---------
Net expenses..................................... 604,235 140,811 82,424
----------- --------- ---------
NET INVESTMENT INCOME.................................. 4,128,624 526,500 646,090
----------- --------- ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS--NOTE C:
Net realized gain (loss) on investments............ (2,047,098) (111,937) 20,875
Net change in unrealized depreciation on
investments...................................... (1,041,461) (109,829) (417,780)
----------- --------- ---------
Net realized and unrealized gain (loss) on
investments...................................... (3,088,559) (221,766) (396,905)
----------- --------- ---------
INCREASE IN NET ASSETS FROM OPERATIONS................. $ 1,040,065 $ 304,734 $ 249,185
=========== ========= =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH FUND GROWTH AND INCOME FUND
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/00+ 10/31/99 ENDED 04/30/00+ 10/31/99
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....................... $ (309,996) $ (407,517) $ 695,828 $ 1,038,244
Net realized gain on investments................... 8,997,418 13,398,533 24,350,092 7,532,501
Net change in unrealized appreciation on
investments...................................... 16,366,804 23,871,282 (17,523,524) 18,898,886
------------ ------------ ------------ ------------
Increase in net assets from operations............. 25,054,226 36,862,298 7,522,396 27,469,631
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A.......................................... -- -- (413,934) (694,625)
Class B.......................................... -- -- -- (16,859)
Class D.......................................... -- -- (157,785) (141,754)
Realized gains on investments:
Class A.......................................... (10,289,301) (1,523,410) (5,060,543) (14,556,598)
Class B.......................................... (2,597,317) (279,678) (1,204,786) (3,003,060)
Class D.......................................... (475,552) -- (1,367,047) --
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders..................................... (13,362,170) (1,803,088) (8,204,095) (18,412,896)
------------ ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D............... 37,655,292 23,723,233 (10,037,883) 57,190,869
------------ ------------ ------------ ------------
Total increase (decrease) in net assets............ 49,347,348 58,782,443 (10,719,582) 66,247,604
NET ASSETS:
Beginning of period................................ 173,299,208 114,516,765 263,508,184 197,260,580
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $926,930 and $802,821 for
the Growth and Income Fund at 04/30/00 and
10/31/99, respectively).......................... $222,646,556 $173,299,208 $252,788,602 $263,508,184
============ ============ ============ ============
<CAPTION>
SMALL COMPANY VALUE FUND INTERNATIONAL EQUITY FUND
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/00+ 10/31/99 ENDED 04/30/00+ 10/31/99
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....................... $ 177,791 $ 543,857 $ (200,781) $ (267,097)
Net realized gain on investments and foreign
currency transactions............................ 23,004,466 20,499,594 3,076,416 7,275,061
Net change in unrealized appreciation on
investments and foreign currency denominated
assets and liabilities........................... (3,649,795) (9,202,368) 1,791,454 3,065,685
------------ ------------ ------------ ------------
Increase in net assets from operations............. 19,532,462 11,841,083 4,667,089 10,073,649
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A.......................................... (399,259) (852,298) -- --
Realized gains on investments:
Class A.......................................... (18,572,633) (168,838) (6,041,311) (2,412,264)
Class B.......................................... (1,938,854) (16,223) (713,739) (358,183)
Class D.......................................... -- -- (266,755) --
------------ ------------ ------------ ------------
Total dividends and distributions to
shareholders..................................... (20,910,746) (1,037,359) (7,021,805) (2,770,447)
------------ ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D............... (9,044,401) (63,511,227) 12,965,211 (2,428,179)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets............ (10,422,685) (52,707,503) 10,610,495 4,875,023
NET ASSETS:
Beginning of period................................ 207,449,189 260,156,692 55,294,013 50,418,990
------------ ------------ ------------ ------------
End of period (including undistributed net
investment income of $127,738 and $197,811 for
the Small Company Value Fund at 04/30/00 and
10/31/99, respectively).......................... $197,026,504 $207,449,189 $ 65,904,508 $ 55,294,013
============ ============ ============ ============
</TABLE>
+ Unaudited.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEVELOPING MARKETS FUND FIXED INCOME FUND
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 04/30/00+ 10/31/99 ENDED 04/30/00+ 10/31/99
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss)....................... $ (61,840) $ 37,837 $ 4,128,624 $ 5,607,375
Net realized gain (loss) on investments and foreign
currency transactions............................ 1,460,486 (470,533) (2,047,098) (554,334)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency denominated assets and liabilities...... 706,887 5,298,723 (1,041,461) (5,249,092)
Contribution from subadvisor....................... -- 460,289 -- --
----------- ------------ ------------ ------------
Increase (decrease) in net assets from
operations....................................... 2,105,533 5,326,316 1,040,065 (196,051)
----------- ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A.......................................... -- (7,744) (1,066,157) (2,198,867)
Class B.......................................... -- -- (89,532) (228,041)
Class C.......................................... -- -- (2) --
Class D.......................................... -- -- (2,972,933) (3,180,467)
Realized gains on investments:
Class A.......................................... -- -- -- (477,719)
Class B.......................................... -- -- -- (58,661)
Tax return of capital:
Class A.......................................... -- (34,031) -- --
----------- ------------ ------------ ------------
Total dividends and distributions to
shareholders..................................... -- (41,775) (4,128,624) (6,143,755)
----------- ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D............... (72,850) (5,440,079) (23,971,844) 116,610,870
----------- ------------ ------------ ------------
Total increase (decrease) in net assets............ 2,032,683 (155,538) (27,060,403) 110,271,064
NET ASSETS:
Beginning of period................................ 18,707,639 18,863,177 163,954,456 53,683,392
----------- ------------ ------------ ------------
End of period...................................... $20,740,322 $ 18,707,639 $136,894,053 $163,954,456
=========== ============ ============ ============
<CAPTION>
MUNICIPAL TRUST FUND HIGH INCOME FUND
------------------------------ ------------------------------
SIX MONTHS YEAR ENDED SIX MONTHS PERIOD ENDED
ENDED 04/30/00+ 10/31/99 ENDED 04/30/00+ 10/31/99*
--------------- ------------- --------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income.............................. $ 526,500 $ 1,429,752 $ 646,090 $ 547,160
Net realized gain (loss) on investments............ (111,937) 216,865 20,875 88,352
Net change in unrealized appreciation
(depreciation) on investments.................... (109,829) (1,926,952) (417,780) (559,668)
----------- ------------ ------------ ------------
Increase (decrease) in net assets from
operations....................................... 304,734 (280,335) 249,185 75,844
----------- ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income:
Class A.......................................... (510,525) (1,389,791) (516,569) (481,082)
Class B.......................................... (15,974) (39,961) (72,223) (40,859)
Class C.......................................... (1) -- (4) --
Class D.......................................... -- -- (57,294) (25,219)
Realized gains on investments:
Class A.......................................... (218,980) -- (6,589) --
Class B.......................................... (7,797) -- (73,884) --
Class D.......................................... -- -- (11,116) --
----------- ------------ ------------ ------------
Total dividends and distributions to
shareholders..................................... (753,277) (1,429,752) (737,679) (547,160)
----------- ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET) Note D............... (5,074,788) (13,070,060) 1,580,522 13,332,046
----------- ------------ ------------ ------------
Total increase (decrease) in net assets............ (5,523,331) (14,780,147) 1,092,028 12,860,730
NET ASSETS:
Beginning of period................................ 30,955,827 45,735,974 12,860,730 --
----------- ------------ ------------ ------------
End of period...................................... $25,432,496 $ 30,955,827 $ 13,952,758 $ 12,860,730
=========== ============ ============ ============
</TABLE>
+ Unaudited.
* The DLJ Winthrop High Income Fund commenced operations on March 8, 1999.
SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
DLJ WINTHROP FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. DLJ Winthrop Funds ("DLJ Winthrop" or
"Funds") consists of two trusts, DLJ Winthrop Focus Funds (the "Focus Funds"),
organized as a Massachusetts business trust on November 26, 1985, and DLJ
Winthrop Opportunity Funds (the "Opportunity Funds"), organized as a Delaware
business trust under the laws of Delaware on May 31, 1995. Each Trust consists
of five portfolios (the "Portfolios") and constitutes a diversified, open-end
investment company registered under the Investment Company Act of 1940, as
amended ("Act"). The Focus Funds consist of: 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. The
Opportunity Funds consist of: DLJ Winthrop International Equity Fund, DLJ
Winthrop Developing Markets Fund, DLJ Winthrop Municipal Money Fund, DLJ
Winthrop U.S. Government Money Fund and DLJ Winthrop High Income Fund. The DLJ
Winthrop Municipal Money Fund and the DLJ Winthrop U.S. Government Money Fund
are included in a separate report.
The investment objective of the Growth Fund and the Growth and Income Fund is
long-term capital appreciation. The Growth and Income Fund also seeks continuity
of income. The investment objective of the Small Company Value Fund is a high
level of growth of capital. The 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 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. The investment objective of the
International Equity Fund is to seek long-term growth of capital by investing
primarily in common stocks and other equity securities from established markets
outside the United States. The Developing Markets Fund seeks long-term growth of
capital by investing primarily in common stocks and other equity securities from
developing countries.
Each portfolio offers Class A, Class B and Class C shares. The Growth Fund,
Growth and Income Fund, Fixed Income Fund, International Equity Fund and High
Income Fund each offer Class D shares. Class A shares of the Growth Fund, the
Growth and Income Fund, the Small Company Value Fund, the International Equity
Fund and the Developing Markets Fund are sold with a front-end sales charge of
up to 5.75%. Class A shares of the Fixed Income Fund, the Municipal Trust Fund
and the High Income 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 C
shares are sold with a contingent deferred sales charge of 1% if redeemed within
the first year of purchase. 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 bears different distribution service fees than Class B and Class C; and
Class D shares are not subject to any distribution service fees. Class A,
Class B and Class C have exclusive voting rights with respect to each class's
distribution plan. Each class has different exchange privileges and only
Class B shares have a conversion feature.
At April 30, 2000, the DLJ Winthrop Municipal Trust Fund had approximately 37%
of its net assets invested in municipal obligations 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 of 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.
(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
<PAGE>
DLJ WINTHROP FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
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) FOREIGN CURRENCY TRANSACTIONS: Investment securities and other assets and
liabilities denominated in foreign currencies are translated into U.S. dollars
at the bid prices of such currencies against the U.S. dollar as of the date of
valuation. Purchases and sales of portfolio securities, commitments under
forward foreign currency contracts, income receipts and expense accruals are
translated at the prevailing exchange rate on the date of each transaction.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Such fluctuations
are included with the net realized and unrealized gain or loss from
investments. Reported net realized gain (loss) on foreign currency
transactions arises from sales and maturities of short-term securities, sales
of foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest, and foreign withholding taxes recorded on the
fund's books and the U.S. dollar equivalent of the amounts actually received
or paid. Net change in unrealized appreciation on translation of foreign
currency denominated assets and liabilities arises from changes in the value
of assets and liabilities other than investments in securities at fiscal year
end, resulting from changes in exchange rates.
(4) FEDERAL INCOME TAXES: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable income. Accordingly, no
provisions for Federal income taxes have been made in the accompanying
financial statements.
The Fixed Income Fund and the Developing Markets Fund have unused capital loss
carryovers of approximately $542,000 and $4,543,000, respectively, available
for Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to October 31, 1999. If not applied, the
carryover for the Fixed Income Fund expires in fiscal 2007 and, for the
Developing Markets Fund, approximately $3,185,000, $587,000 and $771,000 of
the carryover expires in fiscal 2005, 2006 and 2007, respectively.
(5) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Dividend income is recorded
on the ex-dividend date or as soon as the Fund is informed of the dividend.
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.
(6) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date.
(7) DEFERRED ORGANIZATION COSTS: Costs incurred in connection with the
International Equity Fund's and the Developing Markets Fund's organization are
being amortized on a straight-line basis over five years commencing with the
Fund's operation.
NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: DLJ Asset Management
Group, Inc. (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 AXA Financial, Inc., a holding company controlled by AXA,
a member of a large French insurance group. AXA is indirectly controlled by a
group of four French insurance companies. The Advisor has retained AXA
Investment Managers GM Ltd. as subadvisor to the International Equity Fund and
the Developing Markets Fund (the "Subadvisor"). 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; Municipal Trust Fund, .625 of 1% of the
first $100,000,000, .500 of 1% of the balance; International Equity Fund and
Developing Markets Fund, 1.25% of the first $100,000,000, 1.15% of the next
$100,000,000 and 1% of the balance; and High Income Fund, .70 of 1% of the first
$500,000,000 and .625 of 1% of the balance. Such fees will be accrued daily and
paid monthly.
Under a Subadvisory Agreement between the Advisor and Subadvisor, the Advisor
pays the Subadvisor for its services, out of the Advisor's own resources, at the
following annual percentage rates of the average daily net assets of each of the
International Equity Fund and Developing Markets Fund: .625 of 1% of each
Portfolio's first $100,000,000, .575 of 1% of the next $100,000,000 and .50 of
1% of the balance.
Through October 31, 2000, the Advisor has agreed to a contractual expense
limitation to reduce its management fees and reimburse operating expenses by the
amount that total fund operating expenses exceed 1.00% of the average daily net
assets of the Class A
<PAGE>
DLJ WINTHROP FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
shares of the Fixed Income Fund and Municipal Trust Fund, 1.70% of the average
daily net assets of the Class B and Class C shares of the Fixed Income Fund and
Municipal Trust Fund, 0.70% of the average daily net assets of the Class D
shares of the Fixed Income Fund, 1.10% of the average daily net assets of
Class A shares of the High Income Fund, 1.85% of the average daily net assets of
Class B and Class C shares of the High Income Fund, and 0.85% of the average
daily net assets of Class D shares of the High Income Fund. For the Developing
Markets Fund, the Advisor and Subadvisor have agreed to such contractual expense
limitation by the amount that total fund operating expenses exceed 2.15%, 2.90%,
and 2.90% of the average daily net assets of Class A, Class B, and Class C
shares, respectively. After October 31, 2000, the Advisor and Subadvisor may, in
their sole discretion, determine to discontinue this practice with respect to
all or any of such Funds. As a result of the assumption of expenses, the Advisor
reimbursed the Fixed Income Fund, Municipal Trust Fund and High Income Fund
$98,509, $66,364, and $156,855, respectively, during the six months ended April
30, 2000. The Advisor and Subadvisor waived fees amounting to $64,087 for the
Developing Markets Fund during the six months ended April 30, 2000.
Pursuant to Rule 12b-1 under the Act, the Focus Funds have entered into a
Distribution Services Agreement (the "Focus Fund Agreement") with Donaldson,
Lufkin & Jenrette Securities Corporation, DLJ Winthrop's Distributor. Under the
Focus Fund Agreement, each Focus Fund portfolio will pay 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 and Class C shares. 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.
The Opportunity Funds have also entered into a Distributions Services Agreement
(the "Opportunity Fund Agreement") with Donaldson, Lufkin & Jenrette Securities
Corporation. Under the Opportunity Fund Agreement, each portfolio will pay a
distribution services fee to the Distributor at an annual rate of up to .25 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 and Class C shares. The fees
are accrued daily and paid monthly. The Opportunity Fund Agreement provides that
the Distributor will use such payments in their entirety for distribution
assistance and promotional activities. In addition, it provides that the Advisor
may use its own resources to finance the distribution of the Funds' shares.
Effective May 16, 2000, each Focus Fund Trustee who is not an affiliated person
will be paid a fee of $2,500 for each board meeting attended, a $500 fee for
each special meeting attended, a $250 fee for each audit committee meeting and
an annual retainer of $500. Each Opportunity Fund Trustee who is not an
affiliated person will be paid a fee of $1,500 for each board meeting attended,
a $500 fee for each special meeting attended, a $250 fee for each audit
committee meeting and an annual retainer of $500. Prior to May 16, 2000, each
Focus Fund Trustee who is not an affiliated person received an attendance fee of
$2,000 per meeting and $500 per audit committee meeting and an annual retainer
of $2,000. Each Opportunity Fund Trustee who is not an affiliated person
received attendance fees of $2,000 per meeting and $1,000 per audit committee
meeting. Trustees' fees are charged to all series of the appropriate Trust and
are allocated on a pro rata basis.
NOTE (C) INVESTMENT TRANSACTIONS: For federal income tax purposes, the cost of
securities owned at April 30, 2000 was substantially the same as the cost of
securities for financial statement purposes. At April 30, 2000, the components
of the net unrealized appreciation (depreciation) on investments were as
follows:
<TABLE>
<CAPTION>
GROWTH AND SMALL COMPANY INTERNATIONAL DEVELOPING
GROWTH FUND INCOME FUND VALUE FUND EQUITY FUND MARKETS FUND
----------- ----------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Gross appreciation (investments having an
excess of value over cost)................. $ 89,749,688 $ 72,446,035 $ 55,446,460 $ 15,155,898 $ 4,741,843
Gross depreciation (investments having an
excess of cost over value)................. (4,493,893) (6,410,595) (7,056,582) (2,981,303) (3,270,806)
------------- ------------- ------------- ------------- -------------
Net unrealized appreciation (depreciation) of
investments................................ $ 85,255,795 $ 66,035,440 $ 48,389,878 $ 12,174,595 $ 1,471,037
============= ============= ============= ============= =============
<CAPTION>
FIXED MUNICIPAL HIGH
INCOME FUND TRUST FUND INCOME FUND
----------- ---------- -----------
<S> <C> <C> <C>
Gross appreciation (investments having an
excess of value over cost)................. $ 50,568 $ 150,348 $ 93,617
Gross depreciation (investments having an
excess of cost over value)................. (4,562,262) (338,342) (1,071,065)
------------- ------------- -------------
Net unrealized appreciation (depreciation) of
investments................................ $ (4,511,694) $ (187,994) $ (977,448)
============= ============= =============
</TABLE>
For the period ended April 30, 2000, total aggregate purchases and sales of
portfolio securities, excluding short-term securities, were as follows:
<TABLE>
<CAPTION>
GROWTH AND SMALL COMPANY INTERNATIONAL DEVELOPING FIXED
GROWTH FUND INCOME FUND VALUE FUND EQUITY FUND MARKETS FUND INCOME FUND
----------- ----------- ---------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Purchases.......................... $ 44,369,212 $ 82,354,489 $ 51,173,352 $ 24,870,212 $ 10,364,940 $ 58,920,570
Sales.............................. 22,643,145 98,822,498 74,042,801 21,087,484 10,044,618 83,577,338
<CAPTION>
MUNICIPAL HIGH
TRUST FUND INCOME FUND
---------- -----------
<S> <C> <C>
Purchases......................... $ 3,400,000 $ 5,930,705
Sales............................. 8,133,307 4,756,225
</TABLE>
<PAGE>
DLJ WINTHROP FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.01 par value for the Focus Funds; $0.001 for the Opportunity Funds)
authorized. Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
GROWTH FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................. 744,415 $ 15,908,008 439,378 $ 9,164,987
Shares issued through
reinvestment of dividends
and distributions......... 444,967 9,019,526 126,449 2,494,838
---------- ------------ -------- -----------
1,189,382 24,927,534 565,827 11,659,825
---------- ------------ -------- -----------
Shares redeemed............. (500,424) (10,760,613) (147,803) (3,105,331)
---------- ------------ -------- -----------
Net increase................ 688,958 $ 14,166,921 418,024 $ 8,554,494
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................. 1,065,641 $ 20,539,658 667,503 $12,806,960
Shares issued through
reinvestment of dividends
and distributions......... 79,584 1,318,711 16,719 272,358
---------- ------------ -------- -----------
1,145,225 21,858,369 684,222 13,079,318
---------- ------------ -------- -----------
Shares redeemed............. (640,696) (12,397,268) (177,148) (3,396,569)
---------- ------------ -------- -----------
Net increase................ 504,529 $ 9,461,101 507,074 $ 9,682,749
========== ============ ======== ===========
GROWTH AND INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................. 493,512 $ 11,205,868 223,701 $ 3,951,895
Shares issued through
reinvestment of dividends
and distributions......... 198,098 4,631,167 50,221 1,168,147
---------- ------------ -------- -----------
691,610 15,837,035 273,922 5,120,042
---------- ------------ -------- -----------
Shares redeemed............. (1,004,645) (22,871,550) (260,416) (4,741,801)
---------- ------------ -------- -----------
Net increase (decrease)..... (313,035) $ (7,034,515) 13,506 $ 378,241
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................. 678,846 $ 15,276,701 397,678 $ 9,035,772
Shares issued through
reinvestment of dividends
and distributions......... 614,712 12,914,181 139,759 2,921,650
---------- ------------ -------- -----------
1,293,558 28,190,882 537,437 11,957,422
---------- ------------ -------- -----------
Shares redeemed............. (1,133,237) (25,802,845) (254,577) (5,820,349)
---------- ------------ -------- -----------
Net increase................ 160,321 $ 2,388,037 282,860 $ 6,137,073
========== ============ ======== ===========
SMALL COMPANY VALUE FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................. 122,484 $ 2,529,536 39,025 $ 572,163
Shares issued through
reinvestment of dividends
and distributions......... 911,259 17,657,103 99,388 1,884,395
---------- ------------ -------- -----------
1,033,743 20,186,639 138,413 2,456,558
---------- ------------ -------- -----------
Shares redeemed............. (1,424,542) (27,359,413) (231,275) (4,328,435)
---------- ------------ -------- -----------
Net increase (decrease)..... (390,799) $ (7,172,774) (92,862) $(1,871,877)
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................. 531,219 $ 10,797,132 164,059 $ 3,282,346
Shares issued through
reinvestment of dividends
and distributions......... 46,275 936,650 790 15,587
---------- ------------ -------- -----------
577,494 11,733,782 164,849 3,297,933
---------- ------------ -------- -----------
Shares redeemed............. (3,582,104) (71,324,894) (366,848) (7,218,047)
---------- ------------ -------- -----------
Net decrease................ (3,004,610) $(59,591,112) (201,999) $(3,920,114)
========== ============ ======== ===========
DEVELOPING MARKETS FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................. 163,973 $ 2,037,569 49,978 $ 567,666
Shares issued through
reinvestment of dividends
and distributions......... -- -- -- --
---------- ------------ -------- -----------
163,973 2,037,569 49,978 567,666
---------- ------------ -------- -----------
Shares redeemed............. (192,416) (2,323,017) (32,932) (355,318)
---------- ------------ -------- -----------
Net increase (decrease)..... (28,443) $ (285,448) 17,046 $ 212,348
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................. 295,113 $ 2,812,440 25,395 $ 232,158
Shares issued through
reinvestment of dividends
and distributions......... 5,473 40,773 -- --
---------- ------------ -------- -----------
300,586 2,853,213 25,395 232,158
---------- ------------ -------- -----------
Shares redeemed............. (980,986) (7,682,356) (108,041) (843,094)
---------- ------------ -------- -----------
Net decrease................ (680,400) $ (4,829,143) (82,646) $ (610,936)
========== ============ ======== ===========
<CAPTION>
CLASS C+ CLASS D++
------------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
GROWTH FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................ 10,594 $225,056 693,252 $14,858,778
Shares issued through
reinvestment of dividends
and distributions........ -- -- 23,461 475,552
------ -------- --------- -----------
10,594 225,056 716,713 15,334,330
------ -------- --------- -----------
Shares redeemed............ -- -- (29,211) (625,509)
------ -------- --------- -----------
Net increase............... 10,594 $225,056 687,502 $14,708,821
====== ======== ========= ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................ 231,750 $ 4,666,053
Shares issued through
reinvestment of dividends
and distributions........ -- --
--------- -----------
231,750 4,666,053
--------- -----------
Shares redeemed............ (4,222) (86,670)
--------- -----------
Net increase............... 227,528 $ 4,579,383
========= ===========
GROWTH AND INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................ 2,201 $ 51,157 99,329 $ 2,279,416
Shares issued through
reinvestment of dividends
and distributions........ -- -- 65,208 1,524,832
------ -------- --------- -----------
2,201 51,157 164,537 3,804,248
------ -------- --------- -----------
Shares redeemed............ -- -- (311,833) (7,237,014)
------ -------- --------- -----------
Net increase (decrease).... 2,201 $ 51,157 (147,296) $(3,432,766)
====== ======== ========= ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold................ 2,283,021 $54,169,244
Shares issued through
reinvestment of dividends
and distributions........ 6,193 141,754
--------- -----------
2,289,214 54,310,998
--------- -----------
Shares redeemed............ (240,048) (5,645,239)
--------- -----------
Net increase............... 2,049,166 $48,665,759
========= ===========
SMALL COMPANY VALUE FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................ 14 $ 250
Shares issued through
reinvestment of dividends
and distributions........ -- --
------ --------
14 250
------ --------
Shares redeemed............ -- --
------ --------
Net increase (decrease).... 14 $ 250
====== ========
YEAR ENDED OCTOBER 31, 1999
Shares sold................
Shares issued through
reinvestment of dividends
and distributions........
Shares redeemed............
Net decrease...............
DEVELOPING MARKETS FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold................ 20 $ 250
Shares issued through
reinvestment of dividends
and distributions........ -- --
------ --------
20 250
------ --------
Shares redeemed............ -- --
------ --------
Net increase (decrease).... 20 $ 250
====== ========
YEAR ENDED OCTOBER 31, 1999
Shares sold................
Shares issued through
reinvestment of dividends
and distributions........
Shares redeemed............
Net decrease...............
</TABLE>
------------------------------
+ The Funds commenced offering Class C shares on February 28, 2000.
++ The Growth Fund commenced offering Class D shares on May 13, 1999. The
Growth and Income Fund commenced offering Class D shares on April 30, 1999.
<PAGE>
DLJ WINTHROP FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (CONTINUED)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS A CLASS B
------------------------ ---------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 2,294,420 $ 31,110,740 70,698 $ 954,559
Shares issued through reinvestment
of dividends and distributions... 472,799 5,990,357 57,330 704,010
---------- ------------ -------- -----------
2,767,219 37,101,097 128,028 1,658,569
---------- ------------ -------- -----------
Shares redeemed.................... (2,065,961) (28,236,269) (72,134) (960,386)
---------- ------------ -------- -----------
Net increase....................... 701,258 $ 8,864,828 55,894 $ 698,183
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold........................ 860,513 $ 11,381,549 68,854 $ 881,626
Shares issued through reinvestment
of dividends and distributions... 208,666 2,393,398 31,390 352,824
---------- ------------ -------- -----------
1,069,179 13,774,947 100,244 1,234,450
---------- ------------ -------- -----------
Shares redeemed.................... (1,256,969) (16,356,572) (206,542) (2,568,893)
---------- ------------ -------- -----------
Net increase (decrease)............ (187,790) $ (2,581,625) (106,298) $(1,334,443)
========== ============ ======== ===========
FIXED INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 242,044 $ 2,341,505 13,562 $ 131,876
Shares issued through reinvestment
of dividends and distributions... 83,035 805,142 7,736 74,993
---------- ------------ -------- -----------
325,079 3,146,647 21,298 206,869
---------- ------------ -------- -----------
Shares redeemed.................... (863,145) (8,367,421) (126,272) (1,229,009)
---------- ------------ -------- -----------
Net increase (decrease)............ (538,066) $ (5,220,774) (104,974) $(1,022,140)
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold........................ 441,735 $ 4,439,974 96,962 $ 984,089
Shares issued through reinvestment
of dividends and distributions... 207,086 2,087,393 26,021 262,583
---------- ------------ -------- -----------
648,821 6,527,367 122,983 1,246,672
---------- ------------ -------- -----------
Shares redeemed.................... (841,917) (8,495,678) (227,336) (2,280,058)
---------- ------------ -------- -----------
Net increase (decrease)............ (193,096) $ (1,968,311) (104,353) $(1,033,386)
========== ============ ======== ===========
HIGH INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 184,146 $ 1,787,880 82,811 $ 800,449
Shares issued through reinvestment
of dividends and distributions... 42,050 402,828 5,785 55,514
---------- ------------ -------- -----------
226,196 2,190,708 88,596 855,963
---------- ------------ -------- -----------
Shares redeemed.................... (143,379) (1,371,722) (65,973) (633,913)
---------- ------------ -------- -----------
Net increase....................... 82,817 $ 818,986 22,623 $ 222,050
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999*
Shares sold........................ 1,147,988 $ 11,482,944 146,586 $ 1,472,897
Shares issued through reinvestment
of dividends and distributions... 29,206 289,072 3,485 34,378
---------- ------------ -------- -----------
1,177,194 11,772,016 150,071 1,507,275
---------- ------------ -------- -----------
Shares redeemed.................... (91,250) (901,341) (219) (2,146)
---------- ------------ -------- -----------
Net increase....................... 1,085,944 $ 10,870,675 149,852 $ 1,505,129
========== ============ ======== ===========
MUNICIPAL TRUST FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 389,280 $ 3,502,006 121 $ 1,200
Shares issued through reinvestment
of dividends and distributions... 54,857 546,602 1,004 10,002
---------- ------------ -------- -----------
444,137 4,048,608 1,125 11,202
---------- ------------ -------- -----------
Shares redeemed.................... (945,222) (9,051,881) (8,394) (82,968)
---------- ------------ -------- -----------
Net increase (decrease)............ (501,085) $ (5,003,273) (7,269) $ (71,766)
========== ============ ======== ===========
YEAR ENDED OCTOBER 31, 1999
Shares sold........................ 1,193,944 $ 12,204,296 19,981 $ 208,455
Shares issued through reinvestment
of dividends and distributions... 110,367 1,144,940 1,941 20,128
---------- ------------ -------- -----------
1,304,311 13,349,236 21,922 228,583
---------- ------------ -------- -----------
Shares redeemed.................... (2,534,110) (26,096,460) (53,743) (551,419)
---------- ------------ -------- -----------
Net decrease....................... (1,229,799) $(12,747,224) (31,821) $ (322,836)
========== ============ ======== ===========
<CAPTION>
CLASS C+ CLASS D++
------------------------- -------------------------
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
<S> <C> <C> <C> <C>
INTERNATIONAL EQUITY FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 19 $250 313,592 $ 4,311,432
Shares issued through reinvestment
of dividends and distributions... -- -- 21,021 266,755
--- ---- ---------- ------------
19 250 334,613 4,578,187
--- ---- ---------- ------------
Shares redeemed.................... -- -- (86,961) (1,176,237)
--- ---- ---------- ------------
Net increase....................... 19 $250 247,652 $ 3,401,950
=== ==== ========== ============
YEAR ENDED OCTOBER 31, 1999
Shares sold........................ 122,267 $ 1,606,921
Shares issued through reinvestment
of dividends and distributions... -- --
---------- ------------
122,267 1,606,921
---------- ------------
Shares redeemed.................... (9,114) (119,032)
---------- ------------
Net increase (decrease)............ 113,153 $ 1,487,889
========== ============
FIXED INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 25 $250 129,866 $ 1,257,823
Shares issued through reinvestment
of dividends and distributions... 1 2 306,597 2,972,933
--- ---- ---------- ------------
26 252 436,463 4,230,756
--- ---- ---------- ------------
Shares redeemed.................... -- -- (2,260,763) (21,959,938)
--- ---- ---------- ------------
Net increase (decrease)............ 26 $252 (1,824,300) $(17,729,182)
=== ==== ========== ============
YEAR ENDED OCTOBER 31, 1999
Shares sold........................ 12,857,121 $129,704,316
Shares issued through reinvestment
of dividends and distributions... 321,819 3,176,577
---------- ------------
13,178,940 132,880,893
---------- ------------
Shares redeemed.................... (1,338,506) (13,268,326)
---------- ------------
Net increase (decrease)............ 11,840,434 $119,612,567
========== ============
HIGH INCOME FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 26 $250 92,703 $ 892,111
Shares issued through reinvestment
of dividends and distributions... 1 4 6,691 63,882
--- ---- ---------- ------------
27 254 99,394 955,993
--- ---- ---------- ------------
Shares redeemed.................... -- -- (42,901) (416,761)
--- ---- ---------- ------------
Net increase....................... 27 $254 56,493 $ 539,232
=== ==== ========== ============
YEAR ENDED OCTOBER 31, 1999*
Shares sold........................ 95,325 $ 951,003
Shares issued through reinvestment
of dividends and distributions... 2,578 25,219
---------- ------------
97,903 976,222
---------- ------------
Shares redeemed.................... (2,019) (19,980)
---------- ------------
Net increase....................... 95,884 $ 956,242
========== ============
MUNICIPAL TRUST FUND
PERIOD ENDED APRIL 30, 2000
(UNAUDITED)
Shares sold........................ 25 $250
Shares issued through reinvestment
of dividends and distributions... -- 1
--- ----
25 251
--- ----
Shares redeemed.................... -- --
--- ----
Net increase (decrease)............ 25 $251
=== ====
YEAR ENDED OCTOBER 31, 1999
Shares sold........................
Shares issued through reinvestment
of dividends and distributions...
Shares redeemed....................
Net decrease.......................
</TABLE>
------------------------------
+ The Funds commenced offering Class C shares on February 28, 2000.
++ The Fixed Income Fund commenced offering Class D shares on April 30, 1999.
The International Equity Fund and the High Income Fund commenced offering
Class D shares on May 13, 1999.
* The High Income Fund commenced operations on March 8, 1999.
<PAGE>
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
GROWTH FUND
----------------------------------------------------------------------------------------------
CLASS A CLASS B
----------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, ------------------------------------------------------------ ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995 2000**
--------------- ----------- ---------- -------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 11.35 $ 10.82 $ 20.75
Net investment income
(loss)................. (0.02)* (0.03)* --*(5) 0.03 0.05 0.04 (0.09)*
Net realized and
unrealized gain (loss)
on investments......... 2.77 5.04 2.88 3.07 2.11 1.19 2.70
-------- -------- ------- ------- ------- ------- -------
Net increase in net asset
value from
operations............. 2.75 5.01 2.88 3.10 2.16 1.23 2.61
-------- -------- ------- ------- ------- ------- -------
Dividends from net
investment income...... -- -- (0.02) (0.05) (0.04) (0.01) --
Distributions from
capital gains.......... (1.61) (0.26) (0.90) (1.18) (0.78) (0.69) (1.61)
-------- -------- ------- ------- ------- ------- -------
Total distributions...... (1.61) (0.26) (0.92) (1.23) (0.82) (0.70) (1.61)
-------- -------- ------- ------- ------- ------- -------
Net asset value, end of
period................. $ 22.41 $ 21.27 $ 16.52 $ 14.56 $ 12.69 $ 11.35 $ 21.75
======== ======== ======= ======= ======= ======= =======
Total return++........... 13.73% 30.77% 21.00% 26.48% 20.32% 12.21% 13.37%
Ratio of expenses to
average net assets..... 1.16%+ 1.23% 1.29% 0.21% 1.48% 1.63% 1.86%+
Ratio of net investment
income (loss) to
average net assets..... (0.20)%+ (0.16)% (0.02)% 0.21% 0.47% 0.35% (0.90)%+
Portfolio turnover
rate................... 11.6% 34.7% 21.0% 41.1% 0.0% 60.6% 11.6%
Net assets, end of period
(000 omitted).......... $158,422 $135,677 $97,078 $82,926 $68,096 $55,946 $43,456
<CAPTION>
GROWTH FUND
----------------------------------------------------------------------------------------
CLASS B CLASS C CLASS D
------------------------------------------- ------------ -----------------------------
YEAR ENDED OCTOBER 31, PERIOD ENDED SIX MONTHS PERIOD ENDED
------------------------------------------- APRIL 30, ENDED APRIL 30, OCTOBER 31,
1999 1998 1997 1996(1) 2000**(2) 2000** 1999(3)
---------- ---------- ---------- ------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 16.25 $ 14.41 $ 12.63 $11.88 $20.01 $ 21.27 $20.29
Net investment income
(loss)................. (0.17)* (0.12)* (0.03) (0.01) (0.03)* 0.01* 0.01*
Net realized and
unrealized gain (loss)
on investments......... 4.93 2.86 3.02 0.76 1.77 2.78 0.97
------- ------- ------- ------ ------ ------- ------
Net increase in net asset
value from
operations............. 4.76 2.74 2.99 0.75 1.74 2.79 0.98
------- ------- ------- ------ ------ ------- ------
Dividends from net
investment income...... -- -- (0.03) -- -- -- --
Distributions from
capital gains.......... (0.26) (0.90) (1.18) -- -- (1.61) --
------- ------- ------- ------ ------ ------- ------
Total distributions...... (0.26) (0.90) (1.21) -- -- (1.61) --
------- ------- ------- ------ ------ ------- ------
Net asset value, end of
period................. $ 20.75 $ 16.25 $ 14.41 $12.63 $21.75 $ 22.45 $21.27
======= ======= ======= ====== ====== ======= ======
Total return++........... 29.73% 20.20% 25.66% 6.40% 7.57% 13.93% 4.83%
Ratio of expenses to
average net assets..... 1.93% 1.99% 2.06% 2.17%+ 1.86%+ 0.86%+ 1.17%+
Ratio of net investment
income (loss) to
average net assets..... (0.86)% (0.72)% (0.51)% (0.34)%+ (0.92)%+ 0.10%+ 0.07%+
Portfolio turnover
rate................... 34.7% 21.0% 41.1% 0.0% 11.6% 11.6% 34.7%
Net assets, end of period
(000 omitted).......... $32,783 $17,438 $10,378 $3,177 $ --(6) $20,538 $4,839
</TABLE>
<TABLE>
<CAPTION>
GROWTH AND INCOME FUND
------------------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, -------------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995 2000**
--------------- ----------- ----------- ----------- ----------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 14.57 $ 13.38 $ 23.37
Net investment income
(loss)................. 0.07* 0.12* 0.20* 0.21 0.27 0.26 (0.01)*
Net realized and
unrealized gain (loss)
on investments......... 0.66 2.87 3.51 4.59 2.93 1.77 0.65
-------- -------- -------- -------- -------- ------- -------
Net increase (decrease)
in net asset value from
operations............. 0.73 2.99 3.71 4.80 3.20 2.03 0.64
-------- -------- -------- -------- -------- ------- -------
Dividends from net
investment income...... (0.06) (0.09) (0.17) (0.21) (0.24) (0.27) --
Distributions from
capital gains.......... (0.69) (2.01) (1.03) (1.68) (0.35) (0.57) (0.69)
-------- -------- -------- -------- -------- ------- -------
Total distributions...... (0.75) (2.10) (1.20) (1.89) (0.59) (0.84) (0.69)
-------- -------- -------- -------- -------- ------- -------
Net asset value, end of
period................. $ 23.47 $ 23.49 $ 22.60 $ 20.09 $ 17.18 $ 14.57 $ 23.32
======== ======== ======== ======== ======== ======= =======
Total return++........... 3.09% 14.37% 19.14% 30.53% 22.60% 16.10% 2.72%
Ratio of expenses to
average net assets..... 1.09%+ 1.11% 1.13% 1.22% 1.36% 1.58% 1.79%+
Ratio of net investment
income (loss) to
average net assets..... 0.61%+ 0.52% 0.92% 1.15% 1.68% 1.94% (0.09)%+
Portfolio turnover
rate................... 32.2% 24.5% 32.7% 19.8% 44.0% 31.8% 32.2%
Net assets, end of period
(000 omitted).......... $166,701 $174,213 $163,936 $145,586 $113,803 $87,975 $41,368
<CAPTION>
GROWTH AND INCOME FUND
----------------------------------------------------------------------------------------
CLASS B CLASS C CLASS D
------------------------------------------- ------------ -----------------------------
YEAR ENDED OCTOBER 31, PERIOD ENDED SIX MONTHS PERIOD ENDED
------------------------------------------- APRIL 30, ENDED APRIL 30, OCTOBER 31,
1999 1998 1997 1996(1) 2000**(2) 2000** 1999(4)
---------- ---------- ---------- ------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 22.55 $ 20.06 $ 17.15 $16.05 $20.87 $ 23.50 $ 23.73
Net investment income
(loss)................. (0.04)* 0.04* 0.08 0.14 (0.03)* 0.10* 0.10*
Net realized and
unrealized gain (loss)
on investments......... 2.88 3.50 4.58 1.11 2.46 0.66 (0.26)
------- ------- ------- ------ ------ ------- -------
Net increase (decrease)
in net asset value from
operations............. 2.84 3.54 4.66 1.25 2.43 0.76 (0.16)
------- ------- ------- ------ ------ ------- -------
Dividends from net
investment income...... (0.01) (0.02) (0.07) (0.15) -- (0.08) (0.07)
Distributions from
capital gains.......... (2.01) (1.03) (1.68) -- -- (0.69) --
------- ------- ------- ------ ------ ------- -------
Total distributions...... (2.02) (1.05) (1.75) (0.15) -- (0.77) (0.07)
------- ------- ------- ------ ------ ------- -------
Net asset value, end of
period................. $ 23.37 $ 22.55 $ 20.06 $17.15 $23.30 $ 23.49 $ 23.50
======= ======= ======= ====== ====== ======= =======
Total return++........... 13.66% 18.29% 29.59% 7.67% 9.91% 3.24% (0.67)%
Ratio of expenses to
average net assets..... 1.81% 1.83% 1.92% 1.99%+ 1.79%+ 0.79%+ 0.97%+
Ratio of net investment
income (loss) to
average net assets..... 0.00% 0.00% 0.00% 0.00%+ (0.23)%+ 0.91%+ 0.99%+
Portfolio turnover
rate................... 24.5% 32.7% 19.8% 44.0% 32.2% 32.2% 24.5%
Net assets, end of period
(000 omitted).......... $41,144 $33,325 $19,664 $6,545 $ 51 $44,668 $48,152
</TABLE>
----------------------------------
** UNAUDITED.
+ ANNUALIZED.
++ 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) THE FUNDS COMMENCED OFFERING CLASS B SHARES ON FEBRUARY 28, 1996.
(2) THE FUNDS COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000.
(3) THE GROWTH FUND COMMENCED OFFERING CLASS D SHARES ON MAY 13, 1999.
(4) THE GROWTH AND INCOME FUND COMMENCED OFFERING CLASS D SHARES ON APRIL 30,
1999.
(5) AMOUNT ROUNDS TO LESS THAN $0.01.
(6) AMOUNT ROUNDS TO LESS THAN $1,000.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
SMALL COMPANY VALUE FUND
-------------------------------------------------------------------------------------------------
CLASS A CLASS B
-------------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, --------------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995 2000**
--------------- ----------- ----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 20.52 $ 19.54 $ 23.34 $ 18.41 $ 16.61 $ 15.65 $ 20.13
Net investment income
(loss)................. 0.02* 0.06* 0.07* 0.07 0.09 0.04 (0.04)*
Net realized and
unrealized gain (loss)
on investments......... 2.02 1.01 (2.55) 5.66 2.16 1.62 1.97
-------- -------- -------- -------- -------- -------- -------
Net increase (decrease)
in net asset value from
operations............. 2.04 1.07 (2.48) 5.73 2.25 1.66 1.93
-------- -------- -------- -------- -------- -------- -------
Dividends from net
investment income...... (0.04) (0.07) (0.06) (0.08) (0.04) -- --
Distributions from
capital gains.......... (2.05) (0.02) (1.26) (0.72) (0.41) (0.70) (2.05)
-------- -------- -------- -------- -------- -------- -------
Total distributions...... (2.09) (0.09) (1.32) (0.80) (0.45) (0.70) (2.05)
-------- -------- -------- -------- -------- -------- -------
Net asset value, end of
period................. $ 20.47 $ 20.52 $ 19.54 $ 23.34 $ 18.41 $ 16.61 $ 20.01
======== ======== ======== ======== ======== ======== =======
Total return++........... 10.51% 5.47% (11.20)% 32.48% 13.80% 11.10% 10.13%
Ratio of expenses to
average net assets..... 1.41%+ 1.37% 1.29% 1.35% 1.47% 1.64% 2.11%+
Ratio of net investment
income (loss) to
average net assets..... 0.24%+ 0.33% 0.30% 0.37% 0.48% 0.23% (0.46)%+
Portfolio turnover
rate................... 25.7% 29.6% 41.5% 21.1% 35.1% 25.1% 25.7%
Net assets, end of period
(000 omitted).......... $179,741 $188,192 $237,873 $283,001 $227,716 $202,730 $17,285
<CAPTION>
SMALL COMPANY VALUE FUND
---------------------------------------------------------
CLASS B CLASS C
------------------------------------------- ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED
------------------------------------------- APRIL 30,
1999 1998 1997 1996(1) 2000**(2)
---------- ---------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 19.23 $ 23.12 $ 18.34 $17.41 $17.96
Net investment income
(loss)................. (0.14)* (0.09)* (0.02) (0.02) --*(6)
Net realized and
unrealized gain (loss)
on investments......... 1.06 (2.55) 5.57 0.95 2.04
------- ------- ------- ------ ------
Net increase (decrease)
in net asset value from
operations............. 0.92 (2.64) 5.55 0.93 2.04
------- ------- ------- ------ ------
Dividends from net
investment income...... -- -- (0.05) -- --
Distributions from
capital gains.......... (0.02) (1.25) (0.72) -- --
------- ------- ------- ------ ------
Total distributions...... (0.02) (1.25) (0.77) -- --
------- ------- ------- ------ ------
Net asset value, end of
period................. $ 20.13 $ 19.23 $ 23.12 $18.34 $20.00
======= ======= ======= ====== ======
Total return++........... 4.75% (11.98)% 31.55% 5.28% 10.19%
Ratio of expenses to
average net assets..... 2.07% 1.99% 2.05% 2.15%+ 2.11%+
Ratio of net investment
income (loss) to
average net assets..... (0.71)% (0.40)% (0.32)% (0.34)%+ 0.00%+(7)
Portfolio turnover
rate................... 29.6% 41.5% 21.1% 35.1% 25.7%
Net assets, end of period
(000 omitted).......... $19,257 $22,284 $18,395 $6,305 $ --(8)
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, ---------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995(3) 2000**
--------------- ---------- ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 14.00 $ 12.20 $ 11.42 $ 10.38 $ 9.58 $ 10.00 $13.63
Net investment income
(loss)................. (0.04)* (0.06)* (0.06)* (0.07)* (0.04)* --* (0.09)*
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 1.13 2.56 0.99 1.11 0.84 (0.42) 1.10
------- ------- ------- ------- ------- ------- ------
Net increase (decrease)
in net asset value from
operations............. 1.09 2.50 0.93 1.04 0.80 (0.42) 1.01
------- ------- ------- ------- ------- ------- ------
Dividends from net
investment income...... -- -- (0.06) -- -- -- --
Distributions from
capital gains.......... (1.78) (0.70) (0.09) -- -- -- (1.78)
------- ------- ------- ------- ------- ------- ------
Total distributions...... (1.78) (0.70) (0.15) -- -- -- (1.78)
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period................. $ 13.31 $ 14.00 $ 12.20 $ 11.42 $ 10.38 $ 9.58 $12.86
======= ======= ======= ======= ======= ======= ======
Total return++........... 8.39% 21.76% 8.20% 10.02% 8.35% (0.04)% 7.99%
Ratio of expenses to
average net assets(5).. 2.10%+ 2.15% 2.15% 2.15% 2.15% 2.15%+ 2.85%+
Ratio of net investment
income (loss) to
average net
assets(5).............. (0.57)%+ (0.44)% (0.49)% (0.59)% (0.39)% (0.02)%+ (1.32)%+
Portfolio turnover
rate................... 35.3% 82.0% 69.7% 73.9% 94.1% 0.0% 35.3%
Net assets, end of period
(000 omitted).......... $55,154 $16,023 $16,355 $29,402 $36,918 $14,622 $5,934
<CAPTION>
INTERNATIONAL EQUITY FUND
----------------------------------------------------------------------------------------------------
CLASS B CLASS C CLASS D
------------------------------------------------------- ------------ -----------------------------
YEAR ENDED OCTOBER 31, PERIOD ENDED SIX MONTHS PERIOD ENDED
------------------------------------------------------- APRIL 30, ENDED APRIL 30, OCTOBER 31,
1999 1998 1997 1996 1995(3) 2000**(2) 2000** 1999(4)
---------- ---------- ---------- ---------- ------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $11.98 $11.24 $10.29 $ 9.57 $10.00 $ 13.35 $14.02 $12.69
Net investment income
(loss)................. (0.15)* (0.15)* (0.15)* (0.13)* (0.02)* (0.11)* (0.02)* (0.14)*
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 2.50 0.98 1.10 0.85 (0.41) (0.38) 1.13 1.47
------ ------ ------ ------ ------ ------- ------ ------
Net increase (decrease)
in net asset value from
operations............. 2.35 0.83 0.95 0.72 (0.43) (0.49) 1.11 1.33
------ ------ ------ ------ ------ ------- ------ ------
Dividends from net
investment income...... -- -- -- -- -- -- -- --
Distributions from
capital gains.......... (0.70) (0.09) -- -- -- -- (1.78) --
------ ------ ------ ------ ------ ------- ------ ------
Total distributions...... (0.70) (0.09) -- -- -- -- (1.78) --
------ ------ ------ ------ ------ ------- ------ ------
Net asset value, end of
period................. $13.63 $11.98 $11.24 $10.29 $ 9.57 $ 12.86 $13.35 $14.02
====== ====== ====== ====== ====== ======= ====== ======
Total return++........... 20.86% 7.43% 9.23% 7.52% (4.30)% (3.16)% 8.54% 10.48%
Ratio of expenses to
average net assets(5).. 2.90% 2.90% 2.90% 2.90%+ 2.90%+ 2.85%+ 1.85%+ 1.90%+
Ratio of net investment
income (loss) to
average net
assets(5).............. (1.18)% (1.24)% (1.32)% (1.25)%+ (1.77)%+ (13.15)%+ (0.32)%+ (1.14)%+
Portfolio turnover
rate................... 82.0% 69.7% 73.9% 94.1% 35.3% 35.3% 35.3% 82.0%
Net assets, end of period
(000 omitted).......... $5,527 $6,133 $6,821 $4,955 $1,803 $ --(8) $4,816 $1,586
</TABLE>
----------------------------------
** UNAUDITED.
+ ANNUALIZED.
++ 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) THE SMALL COMPANY VALUE FUND COMMENCED OFFERING CLASS B SHARES ON FEBRUARY
28, 1996.
(2) THE FUNDS COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000.
(3) THE INTERNATIONAL EQUITY FUND COMMENCED OPERATIONS ON SEPTEMBER 8, 1995.
(4) THE INTERNATIONAL EQUITY FUND COMMENCED OFFERING CLASS D SHARES ON MAY 13,
1999.
(5) NET OF VOLUNTARY ASSUMPTION BY ADVISOR AND SUBADVISOR OF EXPENSES,
EXPRESSED AS A PERCENTAGE OF AVERAGE NET ASSETS, AS FOLLOWS: INTERNATIONAL
EQUITY FUND CLASS A AND CLASS B SHARES, .04%, .10%, .18% AND .27% FOR THE
YEARS ENDED 10/31/99, 98, 97 AND 96, RESPECTIVELY, AND .60% (ANNUALIZED)
FOR THE PERIOD 09/08/95 THROUGH 10/31/95; AND INTERNATIONAL EQUITY CLASS D
SHARES, .04% (ANNUALIZED) FOR THE PERIOD 05/13/99 THROUGH 10/31/99.
(6) AMOUNT ROUNDS TO LESS THAN $0.01.
(7) AMOUNT ROUNDS TO LESS THAN 0.01%.
(8) AMOUNT ROUNDS TO LESS THAN $1,000.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
DEVELOPING MARKETS FUND
--------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, ---------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995(1) 2000**
--------------- ---------- ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 9.53 $ 10.00 $ 9.66
Net investment income
(loss)................. (0.03)* 0.03* 0.02* (0.02)* (0.01)* --*(6) (0.07)*
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 1.18 2.58 (2.40) (0.40) 0.44 (0.47) 1.15
Contribution from
subadvisor............. -- 0.23 -- -- -- -- --
------- ------- ------- ------- ------- ------- ------
Net increase (decrease)
in net asset value from
operations............. 1.15 2.84 (2.38) (0.42) 0.43 (0.47) 1.08
------- ------- ------- ------- ------- ------- ------
Dividends from net
investment income...... -- (0.01) -- -- -- -- --
Distributions from
capital gains.......... -- -- -- (0.02) -- -- --
Tax return of capital.... -- (0.02) -- -- -- -- --
------- ------- ------- ------- ------- ------- ------
Total distributions...... -- (0.03) -- (0.02) -- -- --
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period................. $ 11.10 $ 9.95 $ 7.14 $ 9.52 $ 9.96 $ 9.53 $10.74
======= ======= ======= ======= ======= ======= ======
Total return++........... 11.56% 39.82% (25.00)% (4.18)% 4.51% (4.70)% 11.18%
Ratio of expenses to
average net
assets(5).............. 2.15%+ 2.15% 2.15% 2.15% 2.15% 2.15%+ 2.90%+
Ratio of net investment
income (loss) to
average net
assets(5).............. (0.43)%+ 0.32% 0.22% (0.17)% (0.14)% 0.32%+ (1.18)%+
Portfolio turnover
rate................... 46.3% 36.9% 43.6% 52.8% 26.8% 0.0% 46.3%
Net assets, end of period
(000 omitted).......... $17,571 $16,023 $16,355 $29,402 $36,918 $14,622 $3,169
<CAPTION>
DEVELOPING MARKETS FUND
----------------------------------------------------------------------
CLASS B CLASS C
-------------------------------------------------------- ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED
-------------------------------------------------------- APRIL 30,
1999 1998 1997 1996 1995(1) 2000**(3)
---------- ----------- ---------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 6.96 $ 9.36 $ 9.86 $ 9.52 $10.00 $ 12.35
Net investment income
(loss)................. (0.03)* (0.04)* (0.19)* (0.08)* (0.01)* --*(6)
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 2.50 (2.36) (0.29) 0.42 (0.47) (1.60)
Contribution from
subadvisor............. 0.23 -- -- -- -- --
------ ------- ------ ------ ------ -------
Net increase (decrease)
in net asset value from
operations............. 2.70 (2.40) (0.48) 0.34 (0.48) (1.60)
------ ------- ------ ------ ------ -------
Dividends from net
investment income...... -- -- -- -- -- --
Distributions from
capital gains.......... -- -- (0.02) -- -- --
Tax return of capital.... -- -- -- -- -- --
------ ------- ------ ------ ------ -------
Total distributions...... -- -- (0.02) -- -- --
------ ------- ------ ------ ------ -------
Net asset value, end of
period................. $ 9.66 $ 6.96 $ 9.36 $ 9.86 $ 9.52 $ 10.75
====== ======= ====== ====== ====== =======
Total return++........... 38.79% (25.64)% (4.83)% 3.57% (4.80)% (11.23)%
Ratio of expenses to
average net
assets(5).............. 2.90% 2.90% 2.90% 2.90% 2.90%+ 2.90%+
Ratio of net investment
income (loss) to
average net
assets(5).............. (0.36)% (0.50)% (1.74)% (0.83)% (1.00)%+ 0.00%+(7)
Portfolio turnover
rate................... 36.9% 43.6% 52.8% 26.8% 46.3% 46.3%
Net assets, end of period
(000 omitted).......... $2,685 $ 2,509 $4,941 $3,641 $1,004 $ --(8)
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
--------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, ---------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995 2000**
--------------- ---------- ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 10.22 $ 9.66 $ 9.83
Net investment income.... 0.26 0.50 0.53 0.58 0.58 0.59 0.22
Net realized and
unrealized gain (loss)
on investments......... (0.19) (0.53) 0.30 0.09 (0.15) 0.56 (0.19)
------- ------- ------- ------- ------- ------- ------
Net increase (decrease)
in net asset value from
operations............. 0.07 (0.03) 0.83 0.67 0.43 1.15 0.03
------- ------- ------- ------- ------- ------- ------
Dividends from net
investment income...... (0.26) (0.50) (0.53) (0.58) (0.58) (0.59) (0.22)
Distributions from
capital gains.......... -- (0.10) -- -- -- -- --
------- ------- ------- ------- ------- ------- ------
Total distributions...... (0.26) (0.60) (0.53) (0.58) (0.58) (0.59) (0.22)
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period................. $ 9.64 $ 9.83 $ 10.46 $ 10.16 $ 10.07 $ 10.22 $ 9.64
======= ======= ======= ======= ======= ======= ======
Total return++........... 0.70% (0.26)% 8.46% 6.84% 4.34% 12.23% 0.35%
Ratio of expenses to
average net
assets(5).............. 1.00%+ 1.00% 1.00% 1.00% 1.00% 1.00% 1.70%+
Ratio of net investment
income to average net
assets(5).............. 5.33%+ 4.91% 5.24% 5.74% 5.72% 5.90% 4.63%+
Portfolio turnover
rate................... 40.3% 84.3% 114.0% 119.3% 90.2% 66.1% 40.3%
Net assets, end of period
(000 omitted).......... $37,011 $43,060 $47,834 $54,755 $56,388 $53,885 $3,370
<CAPTION>
FIXED INCOME FUND
----------------------------------------------------------------------------------------
CLASS B CLASS C CLASS D
------------------------------------------- ------------ -----------------------------
YEAR ENDED OCTOBER 31, PERIOD ENDED SIX MONTHS PERIOD ENDED
------------------------------------------- APRIL 30, ENDED APRIL 30, OCTOBER 31,
1999 1998 1997 1996(2) 2000**(3) 2000** 1999(4)
---------- ---------- ---------- ------- ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $10.46 $10.16 $10.07 $10.22 $ 9.69 $ 9.83 $ 10.09
Net investment income.... 0.43 0.46 0.50 0.34 0.06 0.27 0.26
Net realized and
unrealized gain (loss)
on investments......... (0.53) 0.30 0.09 (0.15) (0.06) (0.19) (0.26)
------ ------ ------ ------ ------ ------- --------
Net increase (decrease)
in net asset value from
operations............. (0.10) 0.76 0.59 0.19 -- 0.08 --
------ ------ ------ ------ ------ ------- --------
Dividends from net
investment income...... (0.43) (0.46) (0.50) (0.34) (0.06) (0.27) (0.26)
Distributions from
capital gains.......... (0.10) -- -- -- -- -- --
------ ------ ------ ------ ------ ------- --------
Total distributions...... (0.53) (0.46) (0.50) (0.34) (0.06) (0.27) (0.26)
------ ------ ------ ------ ------ ------- --------
Net asset value, end of
period................. $ 9.83 $10.46 $10.16 $10.07 $ 9.63 $ 9.64 $ 9.83
====== ====== ====== ====== ====== ======= ========
Total return++........... (0.97)% 7.71% 6.10% 2.23% 0.01% 0.85% 0.04%
Ratio of expenses to
average net
assets(5).............. 1.70% 1.70% 1.70% 1.70%+ 1.70%+ 0.70%+ 0.70%+
Ratio of net investment
income to average net
assets(5).............. 4.21% 4.50% 4.99% 5.03%+ 4.58%+ 5.63%+ 6.30%+
Portfolio turnover
rate................... 84.3% 114.0% 119.3% 90.2% 40.3% 40.3% 84.3%
Net assets, end of period
(000 omitted).......... $4,471 $5,849 $3,375 $1,629 $ --(8) $96,513 $116,424
</TABLE>
----------------------------------
** UNAUDITED.
+ ANNUALIZED.
++ 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) THE DEVELOPING MARKETS FUND COMMENCED OPERATIONS ON SEPTEMBER 8, 1995.
(2) THE FIXED INCOME FUND COMMENCED OFFERING CLASS B SHARES ON FEBRUARY 28,
1996.
(3) THE FUNDS COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000.
(4) THE FIXED INCOME FUND COMMENCED OFFERING CLASS D SHARES ON APRIL 30, 1999.
(5) NET OF VOLUNTARY ASSUMPTION BY ADVISOR AND SUBADVISOR OF EXPENSES,
EXPRESSED AS A PERCENTAGE OF AVERAGE NET ASSETS, AS FOLLOWS: DEVELOPING
MARKETS FUND CLASS A AND CLASS B SHARES, .56% (ANNUALIZED) FOR THE SIX
MONTHS ENDED 04/30/00, .76%, .61%, .34% AND .54% FOR THE YEARS ENDED
10/31/99, 98, 97 AND 96, RESPECTIVELY, AND .60% (ANNUALIZED) FOR THE PERIOD
09/08/95 THROUGH 10/31/95; DEVELOPING MARKETS FUND CLASS C SHARES, .56%
(ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00; FIXED INCOME FUND CLASS A
SHARES, .13% (ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00, .14%, .30%,
.34%, .51% AND .67% FOR THE YEARS ENDED 10/31/99, 98, 97, 96 AND 95,
RESPECTIVELY; FIXED INCOME FUND CLASS B SHARES, .13% (ANNUALIZED) FOR THE
SIX MONTHS ENDED 04/30/00, .14%, .30%, AND .30% FOR THE YEARS ENDED
10/31/99, 98 AND 97, RESPECTIVELY, AND .34% (ANNUALIZED) FOR THE PERIOD
02/28/96 THROUGH 10/31/96; FIXED INCOME CLASS C SHARES, .13% (ANNUALIZED)
FOR THE PERIOD 02/28/00 THROUGH 04/30/00; AND FIXED INCOME CLASS D SHARES,
.13% (ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00 AND .14% (ANNUALIZED)
FOR THE PERIOD 04/30/99 THROUGH 10/31/99.
(6) AMOUNT ROUNDS TO LESS THAN $0.01.
(7) AMOUNT ROUNDS TO LESS THAN 0.01%.
(8) AMOUNT ROUNDS TO LESS THAN $1,000.
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
--------------------------------------------------------------------------------
The table below sets forth financial data for a share of beneficial interest
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
MUNICIPAL TRUST FUND
--------------------------------------------------------------------------------------------
CLASS A CLASS B
--------------------------------------------------------------------------- ---------------
SIX MONTHS YEAR ENDED OCTOBER 31, SIX MONTHS
ENDED APRIL 30, ---------------------------------------------------------- ENDED APRIL 30,
2000** 1999 1998 1997 1996 1995 2000**
--------------- ---------- ---------- ---------- ---------- ---------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 10.05 $ 10.53 $ 10.29 $ 10.01 $ 10.06 $ 9.51 $10.05
Net investment income.... 0.16 0.38 0.38 0.45 0.43 0.39 0.16
Net realized and
unrealized gain (loss)
on investments......... (0.08) (0.48) 0.24 0.28 (0.05) 0.55 (0.08)
------- ------- ------- ------- ------- ------- ------
Net increase (decrease)
in net asset value from
operations............. 0.08 (0.10) 0.62 0.73 0.38 0.94 0.08
------- ------- ------- ------- ------- ------- ------
Dividends from net
investment income...... (0.16) (0.38) (0.38) (0.45) (0.43) (0.39) (0.16)
Distributions from
capital gains.......... (0.08) -- -- -- -- -- (0.08)
------- ------- ------- ------- ------- ------- ------
Total distributions...... (0.24) (0.38) (0.38) (0.45) (0.43) (0.39) (0.24)
------- ------- ------- ------- ------- ------- ------
Net asset value, end of
period................. $ 9.89 $ 10.05 $ 10.53 $ 10.29 $ 10.01 $ 10.06 $ 9.89
======= ======= ======= ======= ======= ======= ======
Total return++........... 1.08% (1.02)% 6.28% 7.37% 3.83% 10.06% 0.73%
Ratio of expenses to
average net
assets(5).............. 1.00%+ 1.00% 1.00% 0.70% 0.80% 1.00% 1.70%+
Ratio of net investment
income to average net
assets(5).............. 3.88%+ 3.65% 3.78% 4.38% 4.26% 3.97% 3.18%+
Portfolio turnover
rate................... 12.4% 76.5% 51.5% 84.3% 79.3% 49.3% 12.4%
Net assets, end of period
(000 omitted).......... $24,477 $29,912 $44,306 $35,878 $38,794 $39,059 $ 956
<CAPTION>
MUNICIPAL TRUST FUND
---------------------------------------------------------
CLASS B CLASS C
------------------------------------------- ------------
YEAR ENDED OCTOBER 31, PERIOD ENDED
------------------------------------------- APRIL 30,
1999 1998 1997 1996(1) 2000**(3)
---------- ---------- ---------- ------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $10.53 $10.29 $10.01 $10.12 $ 9.88
Net investment income.... 0.31 0.32 0.37 0.25 0.05
Net realized and
unrealized gain (loss)
on investments......... (0.48) 0.24 0.28 (0.11) (0.01)
------ ------ ------ ------ ------
Net increase (decrease)
in net asset value from
operations............. (0.17) 0.56 0.65 0.14 0.04
------ ------ ------ ------ ------
Dividends from net
investment income...... (0.31) (0.32) (0.37) (0.25) (0.05)
Distributions from
capital gains.......... -- -- -- -- --
------ ------ ------ ------ ------
Total distributions...... (0.31) (0.32) (0.37) (0.25) (0.05)
------ ------ ------ ------ ------
Net asset value, end of
period................. $10.05 $10.53 $10.29 $10.01 $ 9.87
====== ====== ====== ====== ======
Total return++........... (1.71)% 5.54% 6.62% 1.42% 0.42%
Ratio of expenses to
average net
assets(5).............. 1.70% 1.70% 1.40% 1.23%+ 1.70%+
Ratio of net investment
income to average net
assets(5).............. 2.94% 3.04% 3.66% 3.81%+ 2.28%+
Portfolio turnover
rate................... 76.5% 51.5% 84.3% 79.3% 12.4%
Net assets, end of period
(000 omitted).......... $1,044 $1,430 $ 546 $ 489 $ --(6)
</TABLE>
<TABLE>
<CAPTION>
HIGH INCOME FUND
---------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C CLASS D
----------------------------- ----------------------------- ------------ -----------------------------
SIX MONTHS PERIOD ENDED SIX MONTHS PERIOD ENDED PERIOD ENDED SIX MONTHS PERIOD ENDED
ENDED APRIL 30, OCTOBER 31, ENDED APRIL 30, OCTOBER 31, APRIL 30, ENDED APRIL 30, OCTOBER 31,
2000** 1999(2) 2000** 1999(2) 2000**(3) 2000** 1999(4)
--------------- ------------ --------------- ------------ ------------ --------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.... $ 9.66 $ 10.00 $ 9.66 $10.00 $ 9.57 $ 9.65 $10.23
Net investment income.... 0.44 0.56 0.41 0.50 0.14 0.45 0.41
Net realized and
unrealized gain (loss)
on investments......... (0.25) (0.34) (0.25) (0.34) (0.23) (0.24) (0.58)
------- ------- ------ ------ ------ ------ ------
Net increase (decrease)
in net asset value from
operations............. 0.19 0.22 0.16 0.16 (0.09) 0.21 (0.17)
------- ------- ------ ------ ------ ------ ------
Dividends from net
investment income...... (0.44) (0.56) (0.41) (0.50) (0.14) (0.45) (0.41)
Distributions from
capital gains.......... (0.07) -- (0.07) -- -- (0.07) --
------- ------- ------ ------ ------ ------ ------
Total distributions...... (0.51) (0.56) (0.48) (0.50) (0.14) (0.52) (0.41)
------- ------- ------ ------ ------ ------ ------
Net asset value, end of
period................. $ 9.34 $ 9.66 $ 9.34 $ 9.66 $ 9.34 $ 9.34 $ 9.65
======= ======= ====== ====== ====== ====== ======
Total return++........... 1.92% 2.19% 1.54% 1.60% (0.91)% 2.15% (1.63)%
Ratio of expenses to
average net
assets(5).............. 1.10%+ 1.10%+ 1.85%+ 1.85%+ 1.85%+ 0.85%+ 0.85%+
Ratio of net investment
income to average net
assets(5).............. 9.24%+ 8.61%+ 8.49%+ 7.83%+ 9.26%+ 9.49%+ 9.36%+
Portfolio turnover
rate................... 36.1% 188.4% 36.1% 188.4% 36.1% 36.1% 188.4%
Net assets, end of period
(000 omitted).......... $10,918 $10,488 $1,611 $1,447 $ --(6) $1,423 $ 926
</TABLE>
----------------------------------
** UNAUDITED.
+ ANNUALIZED.
++ 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) THE MUNICIPAL TRUST FUND COMMENCED OFFERING CLASS B SHARES ON FEBRUARY 28,
1996.
(2) THE HIGH INCOME FUND COMMENCED OPERATIONS ON MARCH 8, 1999.
(3) THE FUNDS COMMENCED OFFERING CLASS C SHARES ON FEBRUARY 28, 2000.
(4) THE HIGH INCOME FUND COMMENCED OFFERING CLASS D SHARES ON MAY 13, 1999.
(5) NET OF VOLUNTARY ASSUMPTION BY ADVISOR OF EXPENSES, EXPRESSED AS A
PERCENTAGE OF AVERAGE NET ASSETS, AS FOLLOWS: MUNICIPAL TRUST FUND
CLASS A, .49% (ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00, .42%, .41%,
.74%, .64% AND .58% FOR THE YEARS ENDED 10/31/99, 98, 97, 96 AND 95,
RESPECTIVELY; MUNICIPAL TRUST FUND CLASS B, .49% (ANNUALIZED) FOR THE SIX
MONTHS ENDED 04/30/00, .42%, .41% AND .74% FOR THE YEARS ENDED 10/31/99, 98
AND 97, RESPECTIVELY, AND .64% (ANNUALIZED) FOR THE PERIOD 02/28/96 THROUGH
10/31/96; MUNICIPAL TRUST FUND CLASS C SHARES, .49% (ANNUALIZED) FOR THE
PERIOD 02/28/00 THROUGH 04/30/00; HIGH INCOME FUND CLASS A SHARES, 2.23%
(ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00 AND 1.43% (ANNUALIZED) FOR
THE PERIOD 03/08/99 THROUGH 10/31/99; HIGH INCOME FUND CLASS B SHARES,
2.23% (ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00 AND 1.43% (ANNUALIZED)
FOR THE PERIOD 03/08/99 THROUGH 10/31/99; HIGH INCOME FUND CLASS C SHARES,
2.23% (ANNUALIZED) FOR THE PERIOD 02/28/00 THROUGH 04/30/00; AND HIGH
INCOME CLASS D SHARES, 2.23% (ANNUALIZED) FOR THE SIX MONTHS ENDED 04/30/00
AND 1.43% (ANNUALIZED) FOR THE PERIOD 05/13/99 THROUGH 10/31/99.
(6) AMOUNT ROUNDS TO LESS THAN $1,000.
<PAGE>
TRUSTEES
FOCUS FUNDS OPPORTUNITY FUNDS
G. Moffett Cochran G. Moffett Cochran
Stig Host Robert E. Fischer
Peter F. Krogh Martin Jaffe
John J. Sheehan Wilmot H. Kidd, III
OFFICERS
G. Moffett Cochran, CHAIRMAN AND PRESIDENT
Martin Jaffe, VICE PRESIDENT, TREASURER AND SECRETARY
Richard J. Hanlon, VICE PRESIDENT
Cathy A. Jameson, VICE PRESIDENT
Brian A. Kammerer, VICE PRESIDENT
Marybeth B. Leithead, VICE PRESIDENT
Hugh M. Neuburger, VICE PRESIDENT
Roger W. Vogel, VICE PRESIDENT
INVESTMENT ADVISOR
DLJ Asset Management Group, Inc.
An Investment Management Subsidiary of
Donaldson, Lufkin & Jenrette
277 Park Avenue, New York, NY 10172
SUBADVISOR
AXA Investment Managers GS Ltd.
60 Gracechurch Street
London EC3VOHR, England
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
PFPC, Inc.
P.O. Box 61787 (211 South Gulph Road)
King of Prussia, PA 19406-0903
DISTRIBUTOR
Donaldson, Lufkin & Jenrette Securities Corporation
277 Park Avenue, New York, NY 10172
INDEPENDENT AUDITORS
Ernst & Young LLP
787 Seventh Avenue, New York, NY 10019
LEGAL COUNSEL
Sullivan & Cromwell
125 Broad Street, New York, NY 10004
SEMI-COMBINED 4/00
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for distribution to prospective investors in the Fund
unless preceded or accompanied by an effective prospectus, which should be read
carefully before investing.
[LOGO]
DLJ WINTHROP FUNDS
277 PARK AVENUE, NEW YORK, NY 10172
