PRESIDENT'S LETTER
Dear Shareholder:
The last six months were characterized by economic slowdown in Continental
Europe and a still fragile economy in Japan. In fact, activity in the European
markets was greatly affected by the anticipation of the European Monetary Union
(E.M.U.) which is being established in accordance with the Maastrich Treaty. To
that end, some European governments employed restrictive monetary policies to
reduce their public deficits and accumulated debts. Nevertheless, the good news
is that loose monetary policies have been implemented to somewhat counterbalance
the recessionary effect of tight budgetary policies. The German Bundesbank has
cut its short-term interest rates to the historically low level of 3%, and the
other main European central banks have followed suit.
In Japan, the signs of an economic recovery are multiplying. However, at this
point, the magnitude of the positive rebound is questionable. The banking system
remains fragile in Japan, but this has at least one positive consequence: the
Bank of Japan has no real reason to raise key rates in the near future. The
discount rate is currently at 0.5% which enhances the banks' ability to improve
their results. In the meantime, corporate efforts to improve productivity, in
the industrial sectors, have already led to increased profit margins, which has
in turn favored the Japanese equity market. The profit figures released at the
end of March have basically been in line with expectations, showing an average
yearly increase of 15%.
WINTHROP INTERNATIONAL EQUITY FUND
For the six months ended April 30, 1996, the International Equity Fund produced
a positive return of 12.94% on its Class A shares and 12.64% on its Class B
shares, outperforming the MSCI Europe Australia, Far East ("EAFE") Index, which
returned 12.19% over the same period. Among the larger markets in which we are
invested, the Japanese Index went up a healthy 17.74% (in U.S. $ terms) and our
overweighted position there versus the EAFE Index during the first three months
of the period has been rewarding. At the end of April, the breakdown of the
Fund's assets was 53.1% in Europe, 42.6% in Asia, and 4.3% in cash.
WINTHROP DEVELOPING MARKETS FUND
For the six months ended April 30, 1996, the Developing Markets Fund returned
10.91% for its Class A shares and 10.50% for its Class B shares compared to the
return of the MSCI Emerging Markets Free Index of 12.13%. The substantial
economic growth of developing countries has driven sizable investment flows
towards their stock markets. The best performers during the period were:
Argentina (+35.9% in US$) and Poland (+32.5% in US$). The worst performers were:
South Korea (-3.7% in US$) and Chile (-2.3% in US$).
The allocation of the Fund remained close to the index, with the exception of
two main markets: an important underweighting of South Africa holdings and an
overweighting in Thailand. At the end of April the breakdown of the Fund's
assets were:
. 53.3% invested in Asia
. 26.6% invested in Latin America
. 11.8% invested in Europe/Middle East/Africa
. 8.3% in cash
We continue to be very optimistic concerning the long-term potential from
investment in the foreign markets.
Sincerely,
/s/ G. Moffett Cochran
G. Moffett Cochran
President June, 1996
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS
WINTHROP INTERNATIONAL EQUITY FUND
ASSET ALLOCATION BY COUNTRY April 30, 1996 (unaudited)
JAPAN 33.2
FINLAND 0.7
PHILIPPINES 0.9
INDONESIA 0.9
DENMARK 1.1
THAILAND 1.5
SPAIN 1.5
SINGAPORE 1.8
AUSTRIA 2.4 [PIE CHART]
SWITZERLAND 3.1
HONG KONG 4.3
CASH & OTHER
ASSETS/LIABILITIES 4.3
NETHERLANDS 5.1
UNITED KINGDOM 6.8
ITALY 8.1
FRANCE 11.5
GERMANY 12.8
TEN LARGEST HOLDINGS April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US$ VALUE NET ASSETS
--------------- ---------- -------------
<S> <C> <C> <C>
Capcom Company Ltd. ......... Japan $ 784,715 1.8%
Royal Dutch Petroleum Co..... Netherlands 682,917 1.6%
Bayer AG..................... Germany 664,938 1.6%
Veba AG...................... Germany 651,176 1.5%
Siemens AG................... Germany 616,397 1.5%
Sumitomo Heavy Industries
Ltd. ........................ Japan 605,433 1.4%
Telecom Italia Mobile SPA.... Italy 573,323 1.4%
Instituto Mobilaire
Italiano..................... Italy 570,639 1.3%
Allianz AG Holding........... Germany 562,517 1.3%
Mannesmann AG................ Germany 546,515 1.3%
---------- ---
$6,258,570 14.7%
---------- ---
---------- ---
</TABLE>
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
WINTHROP
INTERNATIONAL
EQUITY FUND
-------------------- MSCI EAFE
CLASS A CLASS B GDP WEIGHTED INDEX*
------- ------- --------------------
<S> <C> <C> <C>
Fiscal Year to Date
(from 11/1/95)................... 12.94% 12.64% 12.19%
From Inception
9/13/95.......................... 8.20% 7.80% 9.55%
</TABLE>
The performance data quoted represents past performance, which is no
indication of future performance. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost. No adjustment has been made for any income
taxes payable by shareholders on dividends or capital gains, but the returns
calculated above have been computed after deduction of all fund expenses
including advisory fees. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 5.75% and when redeeming Class B
shares a contingent deferred sales charge may apply as follows: 4% in year
1, 3% in year 2, 2% in year 3 and 1% in year 4. Initial sales charge or
contingent deferred sales charge is not reflected in the calculation of
total return shown above. Total return calculated for a period of less than
one year is not annualized.
* Morgan Stanley Capital International ("MSCI") Europe, Australia, Far East
Index.
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS
WINTHROP DEVELOPING MARKETS FUND
ASSET ALLOCATION BY COUNTRY April 30, 1996 (unaudited)
CHINA 1.0
POLAND 2.0
TAIWAN 2.1
PORTUGAL 2.1
PHILIPPINES 3.4
HONG KONG 3.7
CHILE 4.5
INDONESIA 4.5
KOREA 4.9
ARGENTINA 5.0
INDIA 5.1
MEXICO 6.8
SOUTH AFRICA 6.8
CASH & OTHER
ASSETS/LIABILITIES 8.3
BRAZIL 10.3
THAILAND 12.4
MALAYSIA 16.2
TEN LARGEST EQUITY HOLDINGS April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US$ VALUE NET ASSETS
---------- ---------- ----------
<S> <C> <C> <C>
Korea Fund, Inc. ........................... Korea $1,267,416 3.6%
Telecom Malaysia Bhd........................ Malaysia 753,900 1.5%
ROC Taiwan Fund............................. Taiwan 725,625 1.5%
Telecommunicacoes Brasileiras SA-Telebras
Prf......................................... Brazil 533,950 1.1%
Telefonos de Mexico SA Cl.'A' ADR........... Mexico 528,360 1.5%
Centrais Electricas Brasileiras SA Prf Cl.'B' Brazil 528,175 2.1%
Korea Equity Fund........................... Korea 427,500 1.2%
Renong Bhd.................................. Malaysia 402,029 1.0%
Technology Resources Industries Bhd......... Malaysia 371,536 1.2%
Tenaga Nasional Bhd......................... Malaysia 348,558 2.2%
---------- ---
$5,887,049 16.9%
---------- ---
---------- ---
</TABLE>
INVESTMENT RESULTS For Periods Ended April 30, 1996 (unaudited)
<TABLE>
<CAPTION>
WINTROP DEVELOPING
MARKETS FUND
-------------------- MSCI EMERGING
CLASS A CLASS B MARKETS FREE INDEX*
------- ------- -------------------
<S> <C> <C> <C>
Fiscal Year to Date
(from 11/1/95)...................... 10.91% 10.50% 12.13%
From Inception
9/13/95............................. 5.70% 5.20% 6.09%
</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. Investors may be subject to an initial sales charge
when purchasing Class A shares of up to 5.75% and when redeeming Class B
shares a contingent deferred sales charge may apply as follows: 4% in year
1, 3% in year 2, 2% in year 3 and 1% in year 4. Initial sales charge or
contingent deferred sales charge is not reflected in the calculation of
total return shown above. Total return calculated for a period of less than
one year is not annualized.
* A Morgan Stanley Capital International ("MSCI") Index.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP INTERNATIONAL EQUITY FUND
COMMON STOCKS--95.7%
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE SHARES U.S. $ VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
AUSTRIA--2.4% Allianz AG Holding...... 330 $ 562,517
Boehler--Uddeholm AG.... 1,500 $ 122,211 Bayer AG................ 2,070 664,938
EVN Energie--Versorgung Bayerische Motoren Werke
Niederoesterreich AG..... 1,680 245,257 AG..................... 270 145,168
Flughafen Wien AG....... 2,600 181,950 Bifinger & Berger Bau AG 300 112,292
Oesterreichisch Daimler Benz AG......... 820 446,495
Elektrizitatswirtschafts Deutsch Bank AG......... 9,000 430,192
AG Cl.'A'............. 1,750 123,439 Dresdner Bank AG........ 16,000 399,609
OMV AG.................. 1,700 168,602 Linde AG................ 255 155,644
VA Technologie AG....... 1,400 185,694 Mannesmann AG........... 1,600 546,515
------------ Schering AG............. 2,100 153,238
1,027,153 Siemens AG.............. 1,130 616,397
------------ SGL Carbon AG........... 1,000 93,251
DENMARK--1.1% Veba AG................. 13,200 651,176
Tele Danmark A/S Ser ------------
'B'...................... 3,300 165,773 5,459,884
Unidanmark A/S Ser ------------
'A'...................... 6,400 284,695 HONG KONG--4.3%
------------ Amoy Properties Ltd..... 300,000 337,419
450,468 China Light & Power
------------ Company Ltd............ 60,000 283,121
FINLAND--0.7% Hong Kong
Oy Nokia (Ab) Ser 'A'... 7,900 281,521 Telecommunications Ltd. 140,000 266,961
------------ Hong Kong Shanghai Bank
Ltd.................... 20,000 298,636
FRANCE--11.5% New World Development
Accor SA................ 650 90,147 Company Ltd............ 60,000 269,159
Air Liquide............. 1,250 226,720 Sun Hung Kai Properties
Alcatel Alsthom......... 1,820 170,852 Ltd.................... 40,000 381,373
Beghin Say.............. 920 149,806 ------------
BIC Societe SA.......... 1,210 133,221 1,836,669
Carrefour SA............ 300 233,992 ------------
Club Mediterranee SA.... 1,280 121,149 ITALY--8.1%
Compagnie Bancaire SA... 1,050 115,808 Brembo SPA.............. 22,700 281,472
Compagnie de Saint Edison SPA.............. 40,000 229,329
Gobain................... 950 113,587 Ente Nazionale
Compagnie Francaise Idrocarburi SPA....... 125,000 539,288
d'Etudes et de Instituto Mobilaire
Construction Italiano............... 72,000 570,639
Technip.................. 1,280 114,943 Instituto Nazionale
Danone Groupe........... 690 104,091 delle Assicurazioni
Dock de France SA....... 810 153,329 SPA.................... 284,000 435,649
Ecco SA................. 900 201,831 Stet Societa Finanziaria
Elf Aquitaine SA........ 2,800 207,846 Telefonica SPA......... 77,500 261,543
Essilor International... 418 105,608 Telecom Italia Mobile
Groupe Saint Louis...... 390 113,374 SPA.................... 260,000 573,323
Havas SA................ 1,600 132,646 Telecom Italia SPA...... 265,000 539,463
Imetal.................. 1,340 209,395 ------------
Legrand SA.............. 940 182,477 3,430,706
L'Oreal................. 1,300 401,016 ------------
LVMH (Moet-Hennessy INDONESIA--0.9%
Louis Vuitton)........... 1,580 403,461 Indocement Tunggal Perkasa 52,000 200,908
Michelin (CGDE)......... 1,330 65,792 PT Telekomunikasi Indonesia 122,000 202,947
Pernod Ricard........... 2,490 162,181 ------------
Poliet-EX Lambert 403,855
Frepes................... 1,410 144,347 ------------
Primagaz Cie............ 1,100 117,711 JAPAN--33.2%
Roussel-Uclaf........... 253 59,522 Autobacs Seven Co. Ltd.. 4,000 379,947
Societe Generale de Paris 2,500 289,738 Bank of Tokyo-Mitsubishi
Sodexho SA.............. 230 91,030 Ltd................... 19,950 458,987
Total SA................ 2,490 168,675 Capcom Company Ltd...... 30,000 784,715
Valeo SA................ 1,740 96,392 Casio Computer Co
------------ Ltd................... 35,000 370,878
4,880,687 Daiei Inc............... 40,000 542,236
------------ Daiichi Pharmaceutical
GERMANY--12.8% Co. Ltd............... 30,000 504,051
Adidas AG............... 6,400 482,452 Daiwa Securities Co. Ltd 27,000 414,983
</TABLE>
See notes to financial statements.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE SHARES U.S. $ VALUE
---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
Hitachi Maxell Ltd...... 25,000 $ 539,372 SPAIN--1.5%
Furukawa Electric Co.... 80,000 484,194 Acerinox SA............. 600 $ 67,742
Kajima Corp............. 40,000 450,591 Banco Sanrander SA...... 2,000 92,804
Izumiya Co. Ltd......... 25,000 472,547 Empresa Nacional de
Marui Co. Ltd........... 13,000 286,679 Electridad SA.......... 2,200 138,012
Matsushita--Kotobuki Repsol SA............... 5,000 183,134
Electron Ltd........... 20,000 534,599 Telefonica de Espana SA 10,000 177,834
Mitsibushi Estate Co. Ltd 20,000 280,664 ------------
Nichii Co. Ltd.......... 15,000 240,570 659,526
Nippon Expressv Co. Ltd. 50,000 520,279 ------------
Nissan Motor Co. Ltd.... 60,000 506,342 SWITZERLAND--3.1%
NKK Corporation......... 160,000 500,996 Credit Suisse Holding AG 3,400 308,011
Nomura Securities Co. Ltd 20,000 435,316 Nestle SA............... 280 310,685
Promise Co. Ltd......... 8,000 339,852 Roche Holding AG........ 40 313,836
Sharp Corp.............. 16,000 277,992 Sandoz AG............... 375 407,360
Sony Music Entertainment ------------
Inc...................... 10,000 541,282 1,339,892
Sumitomo Heavy ------------
Industries Ltd........ 140,000 605,433 THAILAND--1.5%
Sumitomo Osaka Cement Bangkok Bank Public Co.
Co. Ltd............... 100,000 528,871 Ltd.................... 30,000 292,288
Sumitomo Bank Ltd....... 24,000 513,215 Finance One Public Co. Ltd 18,000 102,657
Taisei Corp............. 60,000 463,956 Tipco Asphalt Public Co.
Tokyo Electric Power Ltd 15,000 408,109 Ltd.................... 30,000 167,531
Toray Industries Inc.... 50,000 339,852 United Communication
Toshiba Corp............ 60,000 466,247 Industry Public Co. Ltd 7,000 95,924
Tosoh Corp.............. 100,000 468,728 ------------
Toyo Trust & Banking Ltd 45,000 489,731 658,400
------------ ------------
14,151,214 UNITED KINGDOM--6.8%
------------ B.A.T. Industries Plc... 18,000 135,729
NETHERLANDS--5.1% BPB Industries Plc...... 40,000 199,280
Elsevier NV............. 22,430 337,293 British Petroleum Co. Plc 21,300 191,617
Gucci Group NV.......... 4,200 227,173 Carlton Communications Plc 25,750 180,065
Koninklijke Ahold NV.... 4,020 197,989 CRH Plc................. 22,800 204,940
PolyGram NV............. 4,700 279,419 Glaxo Wellcome Plc...... 11,120 134,495
Royal Dutch Petroleum Co 4,800 682,917 Grand Metropolitan Plc.. 73,000 478,706
Unilever NV--CVA........ 1,545 210,539 Lloyds TSB Group Plc.... 30,000 143,382
Ver Ned Uitgeversbedr... 13,000 218,220 Marks & Spencer Plc..... 21,500 143,086
------------ Pearson Plc............. 16,000 169,508
2,153,550 Prudential Corporation Plc 7,380 50,666
------------ Reuters Holdings Plc.... 32,000 361,104
PHILIPPINES--0.9% RTZ Corporation Plc..... 20,175 316,370
Metropolitan Bank & Siebe Plc............... 15,000 193,577
Trust Co.............. 5,600 150,923 ------------
San Miguel Corporation 2,902,525
Cl.'B'................... 36,000 112,848 ------------
SM Prime Holdings Inc... 436,000 126,671
------------ TOTAL INVESTMENTS--95.7%
390,442 (COST $36,945,488)............... 40,771,410
------------ ------------
SINGAPORE--1.8%
DBS Land Ltd............ 54,000 218,935 CASH AND OTHER ASSETS
Fraser Neave Ltd........ 16,800 186,414 NET OF LIABILITIES--4.3%......... 1,843,838
Jurong Shipyard Ltd..... 24,000 137,421 ------------
Straits Steamship Land Ltd 58,000 202,148
------------ NET ASSETS--100%................... $ 42,615,248
744,918 ------------
------------ ------------
* Non-income producing
</TABLE>
See notes to financial statements.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP DEVELOPING MARKETS FUND
COMMON STOCKS--81.4%
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE SHARES U.S. $ VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
ARGENTINA--5.0% Tata Engineering and
Astra Cia Argentina de Locomotive Co. Ltd. GDR 16,000 $ 288,000
Petroeo SA............ 73,000 $ 151,732 ------------
Banco Frances del Rio 1,757,130
de Plata SA........... 16,500 154,579 ------------
Buenos Aires INDONESIA--4.5%
Embotelladora SA ADR.. 3,000 47,625 Hero Supermarket Foreign 152,000 176,181
Cia Interamericana de Indocement Tunggal Perkasa 24,000 92,727
Automo SA*............ 11,500 64,665 Indocement Tunggal Ord
Molinos Rio de la Plata SA 6,600 68,260 Foreign............... 21,500 83,068
Perez Companc SA....... 60,728 381,109 PT Astra International Co 120,000 177,726
Siderca SA Cl.'A'...... 118,200 136,846 PT Bank International
Telecom Argentina SA ADR 1,860 84,165 Indonesia............. 20,000 98,522
Telefonica de Argentina PT Bank Dagang
SA ADR................ 11,220 328,185 Nasional, Inc........ 78,000 77,852
YPF Sociedad Anonima SA PT Gudang Garam Co..... 32,000 230,100
ADR................... 14,800 323,750 PT Mulia Industrindo
------------ Foreign............... 149,000 287,840
1,740,916 PT Telekomunikasi
------------ Indonesia Foreign..... 214,500 356,821
CHILE--4.5% ------------
Banco Osorno y La Union 1,580,837
ADR................... 14,600 220,825 ------------
Chilgener SA ADR....... 7,610 170,274 KOREA--4.9%
Cia Cervecerias Unidas Korea Equity Fund...... 45,600 427,500
SA ADR............... 6,040 128,350 Korea Fund, Inc........ 52,809 1,267,416
Cia de ------------
Telecomunicaciones de 1,694,916
Chile SA ADR.......... 2,200 200,750 ------------
Empresa Nacional MALAYSIA--16.2%
Electricidad SA ADR... 8,440 164,580 AMMB Holdings Berhad... 21,000 317,901
Enersis SA ADR......... 7,720 229,670 Commerce Asset Holding
Madeco SA ADR.......... 3,500 87,500 Berhad................ 31,000 211,333
Maderas y Sinteticos Edaran Otomobil NSNL
Sociedad Anonima SA Berhad................ 32,000 273,329
ADR................... 8,690 137,954 Hong Leong Properties
Quimica Minera Chile SA Berhad................ 220,000 284,076
ADR................... 4,230 226,305 Hume Industries
------------ Malaysia Berhad...... 60,000 341,661
1,566,208 Industrial Oxygen
------------ Incorporated Berhad... 200,000 299,956
CHINA--1.0% Land and General Berhad 48,000 128,003
China Yuchai Malayan Banking Berhad. 38,000 370,293
International Ltd.... 20,000 192,500 Petronas Gas Berhad.... 55,000 242,611
Ek Chor China Renong Berhad.......... 231,000 402,029
Motorcycle Company Resorts World Berhad... 50,000 302,763
Ltd. ................ 10,500 154,875 Rothmans of Pall Mall
------------ Berhad................ 22,000 224,967
347,375 Sungei Way Holdings
------------ Berhad................ 56,000 258,251
HONG KONG--3.7% Technology Resources
Amoy Properties Ltd.... 220,000 247,440 Industries Berhad*.... 109,000 371,536
Bank of East Asia Ltd.. 66,320 222,919 Telecom Malaysia Berhad 80,000 753,900
Chengdu Telecom Cable Tenaga Nasional Berhad. 82,000 348,558
Co. Cl. 'H'.......... 910,000 129,408 United Engineers
China Light & Power Co. Malaysia Ltd.......... 37,000 253,719
Ltd................... 30,000 141,561 YTL Corporation Berhad 50,000 250,632
Qingling Motors Co. Ltd 552,000 180,189 ------------
Shangri-La Asia Ltd.... 166,000 228,553 5,635,518
Shanghai Petrochemicals ------------
Co. Ltd............... 418,000 124,289 MEXICO--6.8%
------------ Apasco SA de CV........ 44,000 231,386
1,274,359 Cifra SA de CV
------------ Ser.'C'*.............. 240,000 322,610
INDIA--5.1% Empresa ICA Sociedad
Grasim Industries Ltd. GDR 6,000 122,280 Controladora SA de CV
Indian Aluminium Co. ADR*.................. 18,400 255,300
Ltd. GDR............. 33,000 259,710 Empresa La Moderna SA
Indian Hotels GDR*..... 10,000 292,500 de CV ADR............. 12,000 223,500
Indo Gulf Fertilisers Fomento Economico
and Chemicals Corp. Mexicano SA de CV
Ltd. GDR*............ 78,000 141,180 Cl.'B'................ 52,000 161,144
Larsen & Toubro Ltd. GDR 12,000 226,440
Mahindra & Mahindra
Ltd. GDR*............. 21,000 212,520
Reliance Industries GDS
Ltd*.................. 13,000 214,500
</TABLE>
See notes to financial statements.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP DEVELOPING MARKETS FUND
<TABLE><CAPTION>
SHARES U.S. $ VALUE SHARES U.S. $ VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
Grupo Carso SA de CV De Beers Centenary AG.. 11,675 $ 370,052
Ser.'A1'*............. 17,600 $ 134,582 Driefontein
Grupo Financiero Consolidated Ltd..... 7,400 120,700
Bancomer SA de CV Cl. Iscor Ltd.............. 135,900 123,251
'B'................... 265,000 119,449 JCI Co. Ltd............ 16,100 137,820
Grupo Televisa SA Kinross Mines Ltd.*.... 9,400 97,865
GDR*.................. 3,850 119,350 Liberty Life Association
Hylsamex SA--BCP....... 40,000 161,520 of Africa Ltd......... 11,354 336,236
Kimberly-Clark de Murray and Roberts
Mexico SA de CV Holdings Ltd.......... 48,400 218,356
Cl.'A'................ 5,700 104,301 Nedcor Ltd............. 8,000 112,440
Telefonos de Mexico SA Pick 'N Pay Stores Ltd. 51,900 165,103
Cl.'L' ADR............ 15,540 528,360 Rembrandt Group Ltd.... 26,300 220,571
------------ Sasol Ltd.............. 31,600 333,378
2,361,502 South African Breweries
------------ Ltd................... 10,700 309,442
PHILIPPINES--3.4% ------------
Metro Pacific Corp..... 1,137,000 269,482 2,683,335
Metropolotan Bank & ------------
Trust Co............. 7,100 191,348 TAIWAN--2.1%
Petron Corp............ 269,000 115,686 ROC Taiwan Fund*....... 67,500 725,625
Philippine Long Distance ------------
Telephone Co. ADR..... 2,150 108,038 THAILAND--12.4%
San Miguel Corp. Advanced Information
Cl.'B'................ 37,200 116,610 Service Pcl............ 14,200 240,706
SM Prime Holdings, Inc. 443,000 128,705 Bangkok Bank Public Co.
Southeast Asia Cement Ltd................... 31,000 302,031
Holdings, Inc. *...... 1,600,000 235,482 Finance One Public Co.
------------ Ltd................... 35,000 199,611
1,165,351 Land and House Public
------------ Co. Ltd.............. 24,200 329,707
POLAND--2.0% Loxley Public Co.
Bank Rozwoju Eksportu SA 3,370 80,347 Ltd.................. 8,700 123,355
Bank Slaski SA w Nava Finance and
Katowicach.............. 2,560 191,274 Securities Public Co. Ltd 87,000 263,594
Debica SA*............. 2,698 63,818 Phatra Thanakit Co. Ltd 36,000 266,623
Elektrim Spolka Akcyjna PTT Exploration and
SA.................... 15,820 100,976 Production Public Co.
Gorazdze SA*........... 2,180 69,982 Ltd................... 27,000 372,132
Fabryka Kotlow Rafako Shinawatra Computer
SA*................... 2,680 29,382 Company Plc........... 6,000 143,530
Stomil Olsztyn SA*..... 4,540 66,479 Shinawatra Computer Co.
Zaklady Piwowarskie w Plc Foreign........... 5,000 119,608
Zywcu SA.............. 1,100 90,862 Siam Cement Public Co.
------------ Ltd................... 5,000 234,860
693,120 Siam Commercial Bank
------------ Public Co. Ltd........ 26,000 292,446
PORTUGAL--2.1% Siam City Cement Public
Banco Espirito Santo e Co. Ltd............... 11,400 155,316
Comercial de Lisboa SA* 8,760 133,411 Thai Farmers Bank
Banco Totta & Acores SA 5,230 100,312 Public Co. Lt.d....... 41,600 317,984
Cimpor Cimentos De Tipco Asphalt Public
Portugal SA........... 5,550 103,625 Co. Ltd............... 45,000 251,296
Corticeira Amorim SA... 760 8,654 TPI Polene Public Co. Ltd 44,100 242,777
Engil-Sociedade Gestora Union Asia Finance Co.
De Participacoes Sociais SA 2,400 20,748 Ltd................... 52,500 214,166
Estabelecimentos United Communication
Jeronimo Martins & Industry Public Co. Ltd 18,700 256,255
Filho SGPS SA........ 860 68,551 ------------
Portucel Industrial 4,325,997
Empresa Produtora De ------------
Celulosa SA.......... 7,415 44,906 TOTAL COMMON STOCKS
Portugal Telecom SA*... 8,340 180,388 (COST $26,913,225)..... 28,271,976
Sonae Investimentos--SGPS ------------
SA................... 2,610 59,192
------------
719,787
------------
SOUTH AFRICA--7.7%
Barlow Ltd............. 12,000 138,121
</TABLE>
See notes to financial statements.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS April 30, 1996 (continued)
- --------------------------------------------------------------------------------
WINTHROP DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE SHARES U.S. $ VALUE
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
PREFERRED STOCKS--10.3% Telecomunicacoes de Sao
Paulo SA Prf.......... 745,000 $ 132,902
BRAZIL--10.3% Usinas Siderurgicas de
Aracruz Celulose SA Prf Minas Gerais SA Prf... 294,660,000 338,564
Cl.'B'................ 77,800 $ 141,141 ------------
Banco Bradesco SA Prf.. 24,953,360 271,615 3,591,681
Banco Itau SA Prf...... 700,000 263,858 ------------
Companhia Energetica de TOTAL PREFERRED STOCKS
Minas Gerais Prf...... 8,590,000 222,931 (COST $3,381,450)...... 3,591,681
Ceval Alimentos SA Prf 16,800,000 194,719 ------------
Companhia Vale do Rio
Doce Prf.............. 20,498 378,062 TOTAL INVESTMENTS--91.7%
Companhia Cervejaria (COST $30,294,675)................. 31,863,657
Brahma Prf............ 440,000 211,530
Centrais Electricas CASH AND OTHER ASSETS
Brasileiras SA Prf Cl.'B' 2,139,000 528,175 NET OF LIABILITIES--8.3%........... 2,876,504
Lojas Americanas SA Prf 5,950,000 137,926 ------------
Petroleo Brasileiro SA Prf 2,030,000 236,308
Telecomunicacoes Brasileiras NET ASSETS--100%.................... $ 34,740,161
SA--Telebras Prf...... 9,650,000 533,950 ------------
------------
</TABLE>
* Non-income producing
See notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES April 30, 1996 (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEVELOPING
INTERNATIONAL MARKETS
EQUITY FUND
----------- -----------
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $36,945,488 and $30,294,675, respectively)................. $40,771,410 $31,863,657
Cash, at value (cost $1,699,784 and $2,451,130, respectively)...... 1,698,091 2,451,079
Receivable for investment securities sold.......................... -- 346,599
Receivable for capital stock sold.................................. 259,432 439,880
Dividends and interest receivable.................................. 142,769 102,907
Deferred organization costs (Note A)............................... 99,165 99,165
Reimbursement due from advisor..................................... 19,362 58,191
----------- -----------
Total assets....................................................... 42,990,229 35,361,478
----------- -----------
LIABILITIES:
Payable for investment securities purchased........................ 130,274 389,255
Payable for capital stock redeemed................................. 82,135 83,247
Payable to investment advisor...................................... 140,625 132,597
Accrued expenses and other liabilities............................. 21,947 16,218
----------- -----------
Total liabilities.................................................. 374,981 621,317
----------- -----------
NET ASSETS.......................................................... $42,615,248 $34,740,161
----------- -----------
----------- -----------
NET ASSETS CONSIST OF:
Capital paid-in.................................................... $39,362,154 $33,037,380
Accumulated net investment loss.................................... (139,208) (45,825)
Accumulated net realized gain on investments and foreign currency
transactions..................................................... (431,648) 176,345
Net unrealized appreciation of investments and foreign currency
denominated assets and liabilities............................... 3,823,950 1,572,261
----------- -----------
$42,615,248 $34,740,161
----------- -----------
----------- -----------
CLASS A SHARES:
Net assets......................................................... $38,514,042 $31,996,296
----------- -----------
Shares outstanding................................................. 3,558,221 3,025,725
----------- -----------
Net asset value and redemption value per share..................... $10.82 $10.57
------ ------
------ ------
Maximum offering price per share (net asset value plus sales charge
of 5.75% of offering price)...................................... $11.48 $11.21
------ ------
------ ------
CLASS B SHARES:
Net assets......................................................... $ 4,101,206 $ 2,743,865
----------- -----------
Shares outstanding................................................. 380,545 260,946
----------- -----------
Net asset value and offering price per share....................... $10.78 $10.52
------ ------
------ ------
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF OPERATIONS for the Six Months Ended April 30, 1996 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEVELOPING
INTERNATIONAL MARKETS
EQUITY FUND
----------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Interest income.................................................... $45,687 $63,275
Dividends income................................................... 253,655 184,868
----------- -----------
299,342 248,143
Less withholding tax on foreign source dividends................. (30,122) (17,251)
----------- -----------
Total investment income.......................................... 269,220 230,892
----------- -----------
EXPENSES:
Investment advisory fees (Note B).................................. $229,772 $157,575
Distribution fees--Class A (Note A)................................ 42,359 29,325
Distribution fees--Class B (Note B)................................ 14,382 8,760
Legal fees......................................................... 17,000 13,000
Transfer agent fees................................................ 35,000 34,000
Custodian fees..................................................... 52,000 57,000
Auditing fees...................................................... 17,000 13,000
Printing fees...................................................... 16,500 13,500
Trustees' fees..................................................... 7,000 5,000
Miscellaneous...................................................... 22,000 19,000
Amortization of organization expenses (Note A)..................... 11,330 11,330
----------- -----------
464,343 361,490
Less fees waived/reimbursed by investment advisor and
subadvisor..................................................... (58,348) (83,891)
----------- -----------
Net expenses..................................................... 405,995 277,599
----------- -----------
NET INVESTMENT INCOME (LOSS)........................................ (136,775) (46,707)
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS--NOTE C:
Net realized gain/loss on investments.............................. (58,891) 184,654
Net realized gain/(loss) on foreign currency transactions.......... 299,006 10,326
Net change in unrealized appreciation on investments............... 4,594,971 2,247,596
Net change in unrealized appreciation on translations of foreign
currency denominated assets and liabilities...................... (180,658) (1,226)
----------- -----------
Net realized and unrealized gain on investments and foreign
currency transactions............................................... 4,654,428 2,441,350
----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS.............................. $4,517,653 $2,394,643
----------- -----------
----------- -----------
</TABLE>
See notes to financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND DEVELOPING MARKETS FUND
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED
04/30/96 PERIOD ENDED 04/30/96 PERIOD ENDED
(UNAUDITED) 10/31/95* (UNAUDITED) 10/31/95*
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss)................ $ (136,775) $ (2,433) $ (46,707) $ 5,389
Net realized gain/(loss) on investments and
foreign currency transactions............. 240,115 (671,763) 194,980 (18,635)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency denominated assets and
liabilities............................. 4,414,313 (590,363) 2,246,370 (678,616)
----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations................. 4,517,653 (1,264,559) 2,394,643 (691,862)
CAPITAL STOCK TRANSACTIONS--(NET) NOTE D..... 7,475,683 31,836,471 16,718,832 16,268,548
----------- ------------ ----------- ------------
Total increase (decrease) in net assets..... 11,993,336 30,571,912 19,113,475 15,576,686
NET ASSETS:
Beginning of period......................... 30,621,912 50,000 15,626,686 50,000
----------- ------------ ----------- ------------
End of period (including undistributed net
investment income of $5,389 for the
Developing Markets Fund at 10/31/95)...... $42,615,248 $ 30,621,912 $34,740,161 $ 15,626,686
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
*Commencement of operations was September 8, 1995.
See notes to financial statements.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996
(unaudited)
- --------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. Winthrop Opportunity Funds (the "Fund"
or "Funds") operates as a series company currently consisting of two portfolios
(the "Portfolios"): Winthrop International Equity Fund and Winthrop Developing
Markets Fund. The Fund constitutes a diversified, open-end investment company
which is registered under the Investment Company Act of 1940, as amended.
The Fund was organized as a Delaware business trust under the laws of Delaware
on May 31, 1995. Prior to commencing operations on September 8, 1995, the Fund
had no operations other than the sale and issuance to each of Wood, Struthers &
Winthrop Management Corp. (the "Advisor") and AXA Asset Management Europe, an
affiliate of AXA Asset Management Partenaires (the "Subadvisor"), of 1,250 Class
A shares and 1,250 Class B shares of beneficial interest in each of the two
Portfolios.
Each Portfolio offers two classes of shares, Class A shares are sold with a
front-end sales charge of up to 5.75%. Class B shares are sold with a contingent
deferred sales charge which declines from 4% to zero depending on the period of
time the shares are held. Both classes have identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. The Adviser is a wholly-owned subsidiary of Donaldson, Lufkin
and Jenrette, Inc. which is an indirect subsidiary of the Equitable Life
Assurance Society of the United States, (the "Equitable"). The following is a
summary of significant accounting policies consistently followed by Winthrop.
(1) SECURITY VALUATION: All securities for which current market quotations are
readily available are valued at the last sale price prior to the time of
determination, or, if there is no sales price on such date, and if bid and ask
quotations are available, at the mean between the last current bid and asked
prices. Securities that are traded over-the-counter, if bid and asked
quotations are available, are valued at the mean between the current bid and
asked prices, or, if quotations are not available, are valued as determined in
good faith by the Board of Trustees of the Fund. Short-term investments having
a maturity of 60 days or less are valued at amortized cost. Securities and
assets for which current market quotations are not readily available are
valued at fair value as determined in good faith by the Board of Trustees of
the Fund.
(2) FOREIGN CURRENCY TRANSLATIONS: 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 Fund does 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 foreign exchange gains or losses arise 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, 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 unrealized foreign
exchange gains and losses arise from changes in the value of assets and
liabilities other than investments in securities at fiscal year end, resulting
from changes in the exchange rate.
(3) FEDERAL INCOME TAXES: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable income. Accordingly, no
provisions for Federal income or excise taxes have been made in the
accompanying financial statements.
(4) 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
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996
(continued)
- --------------------------------------------------------------------------------
daily. Security transactions are accounted for on the date securities are
purchased or sold. Security gains and losses are determined on the identified
cost basis.
(5) DIVIDENDS AND DISTRIBUTIONS: Dividends and distributions to shareholders
are recorded on the ex-dividend date. Income dividends and capital gain
distributions are determined in accordance with income tax regulations, which
may differ from generally accepted accounting principles.
(6) DEFERRED ORGANIZATION COSTS: The Funds will reimburse the Advisor and
Subadvisor for costs incurred in connection with the Fund's organization. The
costs are being amortized on a straight-line basis over five years commencing
with the Fund's operation.
NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: Under the terms of an
Advisory Agreement with the Advisor, for the investment management services
furnished to each Portfolio, such portfolio will pay the Advisor an advisory
fee, on a graduated basis at an annual rate of 1.25% of the first $100 million
of average daily net assets, 1.15% of the next $100 million and 1% of average
daily net assets over $200 million. Such fee will be accrued daily and paid
monthly. Under a Subadvisory Agreement between the Advisory 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 Portfolio: .625 of 1% of each Portfolio's first $100 million,
.575 of 1% of the next $100 million and .50 of 1% of the balance.
The Advisory Agreement provides that the Advisor will reimburse the Funds for
its expenses (exclusive of interest, taxes, brokerage, distribution services
fees and extraordinary expenses, all to the extent permitted by applicable state
securities law and regulations) which in any year exceed the limits prescribed
by any state in which shares of the Fund are qualified for sale. The Fund
believes that presently the most restrictive applicable expense ratio limitation
imposed on the Fund by any state is 2 1/2% of average net assets of the first
$30 million, 2% of average net assets of the next $70 million and 1 1/2% of
average net assets in excess of $100 million.
Commencing at the inception of each Fund and through October 31, 1996, the
Adviser and Subadviser may voluntarily reduce their management fees by the
amount that total fund operating expenses exceed 2.15% and 2.90% of the average
daily net assets of the Class A and Class B shares, respectively, of each Fund.
Any such reduction will be borne equally between the Advisor and Subadvisor.
After October 31, 1996, the Advisor and Subadvisor may, in their sole
discretion, determine to discontinue this practice with respect to either Fund.
As a result of the voluntary waiver, the Advisor and Subadvisor waived fees
amounting to $58,348 and $83,891 for the International Equity Fund and
Developing Markets Fund, respectively, during the six month period ended April
30, 1996.
The Fund has entered into a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class A and
Class B shares with Donaldson, Lufkin & Jenrette Securities Corporation, the
Fund's Distributor. Under the 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 shares. The fees are accrued daily and
paid monthly. The Agreement provides that the Distributor will use such payments
in their entirety for distribution assistance and promotional activities. The
Agreement also provides that the Adviser may use its own resources to finance
the distribution of the Fund's shares.
Each Trustee who is not an affiliated person receives an attendance fee of
$2,000 per meeting. In addition, each unaffiliated Trustee who is a member of
the audit committee receives an attendance fee of $1,000 per meeting.
NOTE (C) INVESTMENT TRANSACTIONS: Purchases and sales of investment securities
(excluding short-term securities and forward currency exchange contracts) during
the six month period ended April 30, 1996, aggregated $23,078,619 and
$16,599,323 for the International Equity Fund; and $24,341,808 and $4,382,431
for the Developing Markets Fund, respectively.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS April 30, 1996
(continued)
- --------------------------------------------------------------------------------
The Fund's may enter into forward exchange currency contracts in order to hedge
exposure to changes in foreign currency exchange rates on their foreign
portfolio holdings. A forward exchange currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The gain or loss arising from the difference between the original
contracts and the closing of such contracts is included in net realized gain or
loss from foreign currency transactions.
Fluctuations in the value of forward exchange currency contracts are recorded
for financial reporting purposes as net change in unrealized appreciation
(depreciation) of foreign currency denominated assets and liabilities.
Risks may arise from the potential inability of a counterparty to meet the terms
of a contract and from unanticipated movements in the value of a foreign
currency relative to the US. dollar. The contract amount in the following table
reflects the exposure the International Equity Fund had in that particular
currency contract.
At April 30, 1996, the cost of investments for federal income tax purposes was
the same as the cost for financial reporting purposes. At April 30, 1996, the
components of net unrealized appreciation of investments were as follows:
<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPING
EQUITY FUND MARKETS FUND
------------- ------------
<S> <C> <C>
Gross appreciation (investments having an excess of value over
cost)............................................................. $ 4,530,532 $ 2,836,991
Gross depreciation (investments having an excess of cost over
value)............................................................ (704,610) (1,268,009)
------------- ------------
Net unrealized depreciation of investments........................ $ 3,825,922 $ 1,568,982
------------- ------------
------------- ------------
</TABLE>
NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
of beneficial interest authorized, divided into two classes, designated Class A
and Class B Shares. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND DEVELOPING MARKETS FUND
----------------------------------------------- -------------------------------------------------
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED PERIOD ENDED
APRIL 30, 1996 OCTOBER 31, 1995* APRIL 30, 1996 OCTOBER 31, 1995*
--------------------- ----------------------- ----------------------- -----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ---------- --------- ----------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold......... 892,099 $9,032,545 3,006,328 $30,025,797 1,639,363 $16,642,422 1,531,521 $15,261,869
Shares redeemed..... (342,706) (3,504,877) -- -- (147,659) (1,517,160) -- --
-------- ---------- --------- ----------- --------- ----------- --------- -----------
Net increase........ 549,393 $5,527,668 3,006,328 $30,025,797 1,491,704 $15,125,262 1,531,521 $15,261,869
-------- ---------- --------- ----------- --------- ----------- --------- -----------
-------- ---------- --------- ----------- --------- ----------- --------- -----------
CLASS B
Shares sold......... 211,432 $2,148,050 185,880 $ 1,810,674 172,038 $ 1,763,777 102,943 $ 1,006,679
Shares redeemed..... (19,267) (200,035) -- -- (16,535) (170,207) -- --
-------- ---------- --------- ----------- --------- ----------- --------- -----------
Net increase........ 192,165 $1,948,015 185,880 $ 1,810,674 155,503 $ 1,593,570 102,943 $ 1,006,679
-------- ---------- --------- ----------- --------- ----------- --------- -----------
-------- ---------- --------- ----------- --------- ----------- --------- -----------
</TABLE>
* Commencement of operations was September 8, 1995.
<PAGE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for a share of capital stock
outstanding throughout the periods presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND DEVELOPING MARKETS FUND
---------------------------------------------------- -------------------------------------
CLASS A CLASS B CLASS A CLASS B
------------------------- ------------------------- ------------------------- ----------
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED SEPTEMBER 8, ENDED SEPTEMBER 8, ENDED SEPTEMBER 8, ENDED
APRIL 30, 1995* THROUGH APRIL 30, 1995* THROUGH APRIL 30, 1995* THROUGH APRIL 30,
1996 OCTOBER 31, 1996 OCTOBER 31, 1996 OCTOBER 31, 1996
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED)
---------- ------------- ---------- ------------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.......................... $ 9.58 $ 10.00 $ 9.57 $ 10.00 $ 9.53 $ 10.00 $ 9.52
---------- ------ ----- ----- ---------- ------ -----
Net investment income
(loss)(1)....................... (0.03) 0.00 (0.08) (0.02) (0.02) 0.00 (0.06)
Net realized and unrealized
gain(loss) on investments and
foreign currency
transactions.................... 1.27 (0.42) 1.29 (0.41) 1.06 (0.47) 1.06
---------- ------ ----- ----- ---------- ------ -----
Net decrease in net asset value
from operations................ 1.24 (0.42) 1.21 (0.43) 1.04 (0.47) 1.00
---------- ------ ----- ----- ---------- ------ -----
Net asset value, end of
period.......................... $ 10.82 $ 9.58 $10.78 $ 9.57 $ 10.57 $ 9.53 $10.52
---------- ------ ----- ----- ---------- ------ -----
---------- ------ ----- ----- ---------- ------ -----
Total Return(2)................. 12.94% (4.20)% 12.64% (4.30)% 10.91% (4.70)% 10.50%
Ratio of expenses to average net
assets(3)....................... 2.15% 2.15% 2.90% 2.90% 2.15% 2.15% 2.90%
Ratio of net investment
income(loss) to average net
assets.......................... (.67)% (.02)% (1.59)% (1.77)% (.31)% 0.32% (1.25)%
Portfolio turnover rate......... 48.26% 0.00% 48.26% 0.00% 19.20% 0.00% 19.20%
Average commission rate paid.... $ 0.047 -- $0.047 -- $ 0.026 -- $0.026
Net assets, end of period (000
omitted)........................ $ 38,514 $28,819 $4,101 $ 1,803 $ 31,996 $14,622 $2,744
<CAPTION>
SEPTEMBER 8,
1995* THROUGH
OCTOBER 31,
1995
-------------
<S> <C>
Net asset value, beginning of
period.......................... $ 10.00
-----
Net investment income
(loss)(1)....................... (0.01)
Net realized and unrealized
gain(loss) on investments and
foreign currency
transactions.................... (0.47)
-----
Net decrease in net asset value
from operations................ (0.48)
-----
Net asset value, end of
period.......................... $ 9.52
-----
-----
Total Return(2)................. (4.80)%
Ratio of expenses to average net
assets(3)....................... 2.90%
Ratio of net investment
income(loss) to average net
assets.......................... (1.00)%
Portfolio turnover rate......... 0.00%
Average commission rate paid.... --
Net assets, end of period (000
omitted)........................ $ 1,004
</TABLE>
* Commencement of Operations.
(1) Based on average shares outstanding
(2) 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.
(3) Annualized
+ Net of voluntary reduction of management fees by Adviser and Subadviser
expressed as a percentage of average daily net assets, as follows: during
the six month period ended April 30, 1996, .32% of both Class A and Class B
shares of the International Equity Fund and .67% of both Class A and Class B
shares of the Developing Markets Fund; and .60% during the period from
inception through October 31, 1995 of both Class A and Class B shares of
each of the International Equity Fund and Developing Markets Fund.
<PAGE>
WINTHROP OPPORTUNITY FUNDS
(800) 225-8011
TRUSTEES
G. MOFFETT COCHRAN, V ROBERT E. FISCHER
WILMOT H. KIDD, III MARTIN JAFFE
JOHN W. WALLER, III
OFFICERS
G. MOFFETT COCHRAN, V, Chairman and President
JAMES A. ENGLE, Vice President
MARTIN JAFFE, Vice President, Secretary
and Treasurer
CHARLES E. HUGHES, Assistant Secretary
BRIAN A. KAMMERER, Assistant Treasurer [L
INVESTMENT ADVISER SEMI-ANNUAL REPORT
WOOD STRUTHERS & WINTHROP MANAGEMENT --------------------
CORPORATION O APRIL 30, 1996
An Investment Management Subsidiary
of Donaldson, Lufkin & Jenrette
277 Park Avenue, New York, NY 10172
G
SUB-ADVISER
AXA ASSET MANAGEMENT
Partenaires
40 rue du Colisee O]
Paris, France 75008
CUSTODIAN
CITIBANK, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
FUND/PLAN SERVICES, INC.
P.O. Box 874 (#2 Elm Street),
Conshohocken, PA 19428
DISTRIBUTOR
DONALDSON, LUFKIN & JENRETTE SECURITIES
CORPORATION
277 Park Avenue, New York, NY 10172
AUDITORS
ERNST & YOUNG
787 Seventh Avenue, New York, NY 10019
LEGAL COUNSEL
SKADDEN, ARPS, SLATE, MEAGHER & FLOM
919 Third Avenue, New York, NY 10022
This report is submitted for the general
information of the stockholders of the
Fund. It is not authorized for
distribution to prospective investors in
the Fund unless preceded or accompanied
by an effective prospectus, which
should be read carefully before
investing.
WOOD, STRUTHERS & WINTHROP
ESTABLISHED 1871
[WOOD, STRUTHERS & WINTHROP LOGO] [WINTHROP LOGO]
INVESTMENT MANAGEMENT SUBSIDIARY OF WINTHROP
DONALDSON, LUFKIN & JENRETTE OPPORTUNITY
SECURITIES CORPORATION FUNDS
(THE FUND DISTRIBUTOR)
I32I6 6/96
