WINTHROP OPPORTUNITY FUNDS, N-30D, 1997-06-26

WINTHROP OPPORTUNITY FUNDS
N-30D, 1997-06-26

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<PAGE>
PRESIDENT'S LETTER
Dear Shareholder:

During the first half of the Funds' fiscal year, the International stock markets
delivered very different returns (in U.S. dollars)--positive in Europe and
negative in Asia-- leading to a neutral global return. In addition, strong
performance of Latin American stock markets drove the composite emerging
countries index close to the U.S. market's return. The general economic
environment remains good as accelerating worldwide economic growth coupled with
lower levels of inflation have allowed for interest rate cuts and looser
monetary policies in many countries. The picture looks attractive for
international stock markets and investors may soon see the benefits of global
diversification.

WINTHROP INTERNATIONAL EQUITY FUND

Fiscal year-to-date through April 30, 1997, the Winthrop International Equity
Fund's Class A shares returned 4.53%, versus +0.77% for the MSCI EAFE Index, a
380-basis-point overperformance. The total return of the Fund's Class B shares
over this period was 4.27%. Our underweight to neutral position in Asia,
including Japan, as well as good stockpicking in Japan, Italy and Germany,
helped to beat the benchmark.

One of the crucial factors in performance during the first half of the year was
the powerful rise of the dollar versus the yen and European currencies.
Consequently, among the blue chips, the performance of exporters in Japan and
Europe has been tremendous. Companies like Sony, Matsushita Kotobuki, Toyota
Motors, L.V.M.H. and Bayer rose more than 20% in local terms.

As for the markets as a whole, the European markets performed well in the wake
of Wall Street, buoyed by the expected economic recovery, increasing corporate
profits and the perspective of accelerated restructuring, both in the public and
private sector. But the fall of the European currencies versus the dollar
unfortunately offset a large part of our gains. The Asian markets were less
buoyant. Singapore and Malaysia, affected by economic problems, performed badly,
while Japan continued to suffer once again from the consequences of its
financial crisis. We believe, nonetheless, that this frantic behavior is
characteristic of the last phase of a bear market and that Japanese stocks may
recover largely in the coming months.

WINTHROP DEVELOPING MARKETS FUND

The total return of the Winthrop Developing Markets Fund for the six months
ending April 30, 1997, amounted to +11.72% (Class A shares) and +11.33% (Class B
shares), versus +9.90% for the MSCI Emerging Markets Free Index (in U.S.
dollars). Latin American and European countries contributed strongly to the
performance of the benchmark.

ASIA

With the exception of China (+43.8%), which showed strong and healthy economic
growth figures, and Taiwan (+25.0%), which was boosted by strong electronic
exports to the U.S., Asian countries had poor returns for the period. Thailand
(-27.2%), for example, has suffered from monetary troubles. A weak Thai baht,
resulting from sluggish exports in the summer of 1996, political instability and
a tight monetary policy, forced the Bank of Thailand to use its foreign
reserves. In South Korea, poor economic growth figures and financial scandals
involving well-known executives and politicians contributed greatly to stock
market underperformance (-14.2%). The Philippines (-8.6%) is seen by some as the
next Thailand: real estate speculation linked to an overvalued peso has brought
a lot of uncertainty to the Manila stock market. In Indonesia (+7.5%), the last
months before the general election were difficult, as demonstrations and riots
brought political turmoil. Malaysia (-6.9%) started taking credit limitation
measures in order to reduce the country's significant deficit. India (+16.0%)
has gone through a tough political period, but if the new leading coalition
stabilizes, its liberal budget project could lead to recovery of the Bombay
stock market.

LATIN AMERICA

All Latin American countries had good returns over the period. The economic
liberalization of Brazil (+35.8%) continues to be supported by a comfortable
majority. Constitutional reforms are going through and privatization programs
have started with Telebras, the giant telecommunications company. All the large
state-owned companies rallied during the period in expectation of privatization.
Argentina (+26.2%) has benefited from foreign investment inflows, while the
reduction of inflation and recovering growth also fueled market performance.
Mexico (+17.5%) is looking now to 4% GDP growth, a solid recovery after the 1994
crisis. Only, Chile (+3.3%) has seen its economic growth forecasts reduced for
1997, but the inflation figures are improving as a result of the tight monetary
policy over the last six months.

EMERGING EUROPE

After three years of weak performance, Greece (+31.0%) has rocketed since the
start of the calendar year. The clean-up of the economy has begun and the
financial markets are becoming more efficient. Portugal (+20.8%), which is
expected to join the developed market index, has benefited from inflows from
foreign portfolio managers. Hungary (+52.1%) was mainly driven by the strength
of the country's most important company, MOL. Poland (+7.6%) suffered during the
period from decreasing economic growth forecasts for 1997, while the Czech
Republic (-6.2%) was hurt by bad economic figures and political uncertainties.

SOUTH AFRICA

The South African market (+8.25%) started to recover after a bad 1996. The South
African Rand appears to have stabilized after its huge drop against the dollar.
Industrial stocks have performed well since the beginning of the year.

During the third quarter of 1996, we switched from from an overweight in Asia to
an overweight in Latin America, and still believe it is too early to get back
into Asia as most of the Asian countries are having growth problems. China's
export market share is improving at the expense of its neighbors, making
international competition more difficult in the region. In order to maintain
good opportunities in the portfolio, we are looking forward to developing the
Fund's exposure to Mediterranean basin countries.

We continue to look forward to the future and the benefits global
diversification will offer our shareholders.

Sincerely,

[/S/ G. MOFFETT COCHRAN]

G. Moffett Cochran
President June 1997
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS (UNAUDITED)
WINTHROP INTERNATIONAL EQUITY FUND

ASSET ALLOCATION BY COUNTRY APRIL 30, 1997

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
Japan 29.1
France 14.9
Germany 12.7
United Kingdom 12.2
Italy 7.4
Spain 5.4
Netherlands 5.2
Switzerland 4.5
Sweden 2.1
Cash & Other
Assets/Liabilities 1.8
Hong Kong 1.6
Finland 1.1
Singapore 0.9
Belgium 0.6
Austria 0.5
</TABLE>

TEN LARGEST HOLDINGS APRIL 30, 1997

<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US$ VALUE NET ASSETS
------------ ---------- ----------
<S> <C> <C> <C>
Royal Dutch Petroleum Co................. Netherlands $1,385,222 3.1%
Marui Co. Ltd............................ Japan 839,887 1.9
Telecom Italia Mobil SPA................. Italy 789,564 1.8
Mitsui Re Fudosan Ltd.................... Japan 776,929 1.8
Omron Corp............................... Japan 775,353 1.7
Sumitomo Heavy Industries Ltd............ Japan 701,458 1.6
Banco Santander SA....................... Spain 673,969 1.5
Telecom Italia SPA....................... Italy 671,062 1.5
Shin - Etsu Chemical Co. Ltd............. Japan 665,669 1.5
Adidas AG................................ Germany 648,920 1.5
---------- ---
$7,928,033 17.9%
---------- ---
---------- ---
</TABLE>

INVESTMENT RESULTS FOR PERIODS ENDED APRIL 30, 1997

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-------------------------------
WINTHROP
INTERNATIONAL
EQUITY FUND
---------------- MSCI EAFE
WITHOUT WITH GDP WEIGHTED
LOAD LOAD INDEX*
------- ------ ------------
<S> <C> <C> <C>
Class A:
1 Year........................................ 0.28% -5.49% -2.45%
From Inception 9/13/95........................ 5.14 1.38 4.82
Class B:
1 Year........................................ -0.46 -4.45 -2.45
From Inception 9/13/95........................ 4.42 2.62 4.82
</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. 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. CLASS B SHARES
WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE SUBJECT TO A CONTINGENT
DEFERRED SALES CHARGE (CDSC) RANGING FROM 4% DURING THE FIRST YEAR TO 0%
AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B SHARES WILL DIFFER FROM
THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE TABLE ABOVE WITH AND
WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.

* A Morgan Stanley Capital International ("MSCI") Europe, Australia, Far
East Index.
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS (UNAUDITED)
WINTHROP DEVELOPING MARKETS FUND

ASSET ALLOCATION BY COUNTRY APRIL 30, 1997

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<S> <C>
Brazil 20.9
Argentina 8.6
Taiwan 8.3
Malaysia 7.6
South Africa 7.4
Portugal 7.0
Mexico 6.9
Chile 6.2
India 4.6
South Korea 4.3
Greece 4.0
Hong Kong 3.2
Indonesia 3.0
Czech Republic 2.6
Cash & Other
Assets/Liabilities 2.2
Philippines 2.1
Thailand 1.0
China 0.1
</TABLE>

TEN LARGEST HOLDINGS APRIL 30, 1997

<TABLE>
<CAPTION>
PERCENT OF
COUNTRY US$ VALUE NET ASSETS
----------- ---------- ----------
<S> <C> <C> <C>
Telecomunicacoes do Rio Janeiro SA Prf.... Brazil $1,349,858 3.4%
Centrais Electricas Brasileira SA Prf Cl.
'B'..................................... Brazil 1,326,496 3.3
Portugal Telecom SA....................... Portugal 1,053,768 2.6
YPF Sociedad Anonima SA ADR............... Argentina 954,444 2.4
Telefonica de Argentina SA ADR............ Argentina 765,681 1.9
Petroleo Brasileiro SA Prf................ Brazil 753,406 1.9
Companhia Vale do Rio Doce Prf............ Brazil 749,907 1.9
Perez Compane SA.......................... Argentina 697,797 1.7
Cathay Construction Corp.................. Taiwan 622,472 1.6
Korea Electrical Power ADR................ South Korea 578,000 1.4
---------- ---
$8,851,829 22.1%
---------- ---
---------- ---
</TABLE>

INVESTMENT RESULTS FOR PERIODS ENDED APRIL 30, 1997

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
--------------------------------------
WINTHROP
DEVELOPING
MARKETS FUND
----------------
WITHOUT WITH MSCI EMERGING
LOAD LOAD MARKETS FREE INDEX*
------- ------ -------------------
<S> <C> <C> <C>
Class A:
1 Year...................................... 5.27% -0.78% 2.24%
From Inception 9/13/95...................... 6.79 2.97 5.12
Class B:
1 Year...................................... 4.35 0.35 2.24
From Inception 9/13/95...................... 5.90 4.11 5.12
</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. CLASS B SHARES WHICH, INSTEAD OF A FRONT-END SALES LOAD, ARE
SUBJECT TO A CONTINGENT DEFERRED SALES CHARGE (CDSC) RANGING FROM 4%
DURING THE FIRST YEAR TO 0% AFTER 4 YEARS. ACCORDINGLY, RETURNS ON CLASS B
SHARES WILL DIFFER FROM THOSE OF CLASS A SHARES AND ARE REFERENCED IN THE
TABLE ABOVE WITH AND WITHOUT THE IMPOSITION OF THE MAXIMUM 4% CDSC.

* A Morgan Stanley Capital International ("MSCI") Index.
<PAGE>
Winthrop Opportunity Funds--Statement of Investments APRIL 30, 1997 (UNAUDITED)

- --------------------------------------------------------------------------------
WINTHROP INTERNATIONAL EQUITY FUND

COMMON STOCKS--98.2%
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
---------- ------------
<S> <C> <C>
AUSTRIA--0.5%
VA Technologie AG.................................. 1,400 $ 217,464
------------
BELGIUM--0.6%
Credit Communal Holding/
Dexia............................................ 2,850 283,245
------------
FINLAND--1.1%
Oy Nokia (Ab) Ser 'A'.............................. 7,900 492,498
------------
FRANCE--14.9%
Alcatel Alsthom.................................... 2,000 222,401
BIC Societe SA..................................... 1,611 255,329
Carrefour SA....................................... 703 438,931
Cetelem............................................ 3,515 409,540
Compagnie de Saint Gobain.......................... 1,584 212,239
Danone Groupe...................................... 2,528 368,178
Elf Aquitaine SA................................... 5,477 531,155
Imetal............................................. 2,453 336,661
Legrand SA......................................... 768 129,616
L'Oreal............................................ 1,169 414,817
LVMH (Moet-Hennessy Louis Vuitton)................. 2,150 524,947
Promodes........................................... 1,308 441,282
Rexel SA........................................... 760 202,491
Rhone-Poulenc Co................................... 14,307 481,206
Societe Generale De Paris.......................... 3,668 411,026
Saint Louis........................................ 973 229,902
SEB SA............................................. 1,480 260,939
Sodexho SA......................................... 785 360,468
Total SA........................................... 4,887 405,275
------------
6,636,403
------------
GERMANY--12.7%
Adidas AG.......................................... 6,260 648,920
Bayer AG........................................... 15,100 600,651
Bayerische Motoren Werke AG........................ 570 463,479
Commerzbank AG..................................... 16,800 453,084
Daimler Benz AG.................................... 6,900 510,646
Dresdner Bank AG................................... 13,600 435,505
Linde AG........................................... 670 489,461
Mannesmann AG...................................... 1,100 432,733
Siemens AG......................................... 11,500 623,282
SGL Carbon AG...................................... 3,000 552,495
Veba AG............................................ 8,000 415,107
------------
5,625,363
------------
HONG KONG--1.6%
Cathay Pacific Airways Ltd......................... 117,000 181,998
Hang Seng Bank Ltd................................. 14,500 163,316
Hong Kong Telecomunications Ltd.................... 103,000 176,841
New World Development Company Ltd.................. 30,500 175,996
------------
698,151
------------
ITALY--7.4%
Ente Nazionale Idrocarburi SPA..................... 120,600 612,202
Fiat SPA........................................... 78,000 257,437
Instituto Mobilaire Italiano....................... 69,000 587,873

<CAPTION>
SHARES U.S. $ VALUE
---------- ------------
<S> <C> <C>
Seat SPA........................................... 132,600 $ 26,259
Stet Societa Finanziaria Telefonica SPA............ 99,000 367,229
Telecom Italia Mobile SPA.......................... 251,000 789,564
Telecom Italia SPA................................. 255,000 671,062
------------
3,311,626
------------
JAPAN--29.1%
Asahi Glass Co. Ltd................................ 45,000 407,769
Bank of Tokyo-Mitsubishi Ltd....................... 35,000 554,330
Bridgestone Corp. Ltd.............................. 25,000 531,873
Capcom Company Ltd................................. 18,800 330,344
Daiwa Securities Co. Ltd........................... 35,000 233,039
Fuji Photo Film Co. Ltd............................ 13,000 496,809
Jusco Co. Ltd...................................... 10,000 307,304
Marubeni Corp...................................... 118,000 437,932
Marui Co. Ltd...................................... 51,000 839,887
Matsushita - Electric Industry Ltd................. 25,000 399,890
Matsushita - Kotobuki Electron Ltd................. 12,000 382,949
Mitsubishi Estate Co. Ltd.......................... 50,000 630,368
Mitsui Re Fudosan Ltd.............................. 68,000 776,929
Mori Seiki Ltd..................................... 35,000 507,446
New OJI Paper...................................... 66,000 333,354
Nomura Securities Co. Ltd.......................... 26,000 290,915
Oki Electric Industry Co. Ltd...................... 82,000 402,537
Omron Corp......................................... 41,000 775,353
Shin - Etsu Chemical Co. Ltd....................... 33,000 665,669
Sony Music Entertainment Inc....................... 6,000 436,845
Sumitomo Electric Industries Ltd................... 47,000 636,987
Sumitomo Heavy Industries Ltd...................... 222,000 701,458
Taisei Corp........................................ 78,000 285,793
TDK Corp. Ltd...................................... 6,000 432,590
Toshiba Corp....................................... 93,000 521,756
Toyota Motor Corp. Ltd............................. 21,000 608,935
------------
12,929,061
------------
NETHERLANDS--5.2%
Elsevier NV........................................ 22,430 359,230
Koninklijke Ahold NV............................... 4,141 282,713
Royal Dutch Petroleum Co........................... 7,750 1,385,222
Unilever NV-CVA.................................... 1,545 300,498
------------
2,327,663
------------
SINGAPORE--0.9%
City Developments Ltd.............................. 19,000 153,703
Oversea - Chinese Banking Co. Ltd.................. 13,000 151,905
Singapore Telecommunications Ltd................... 66,000 111,346
------------
416,954
------------
SPAIN--5.4%
Banco Santander SA................................. 8,950 673,969
Catalana Occidente SA*............................. 3,000 169,434
Gas Natural SDG SA................................. 1,900 403,868
Repsol SA.......................................... 13,960 585,828
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)

- --------------------------------------------------------------------------------
WINTHROP INTERNATIONAL EQUITY FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
---------- ------------
<S> <C> <C>
Telefonica de Espana SA............................ 22,100 $ 566,589
------------
2,399,688
------------
SWITZERLAND--4.5%
ABB AG - Bearer.................................... 290 351,330
Credit Suisse Holding AG........................... 5,040 567,830
Roche Holding AG................................... 32 270,395
Nestle SA.......................................... 335 406,984
Novartis AG........................................ 300 395,412
------------
1,991,951
------------
SWEDEN--2.1%
Astra AB-A SA...................................... 10,270 420,204
Nordbanken SA...................................... 15,930 489,348
------------
909,552
------------
UNITED KINGDOM--12.2%
British Aerospace Plc.............................. 10,000 212,756
British Petroleum Co Plc........................... 21,491 246,927
British Telecommunications Plc..................... 70,000 514,038
CMG Plc............................................ 30,000 530,672
CRH Plc............................................ 117 1,146
Glaxo Wellcome Plc................................. 30,500 600,645
<CAPTION>
SHARES U.S. $ VALUE
---------- ------------
<S> <C> <C>
Lloyds TSB Group Plc............................... 20,840 $ 190,746
Marks & Spencer Plc................................ 59,017 469,301
Pearson Plc........................................ 32,698 375,958
Prudential Corporation Plc......................... 55,376 539,651
Smiths Industries Plc.............................. 40,000 490,425
Standard Chartered Plc............................. 40,000 605,972
TI Group Plc....................................... 39,000 333,861
Zeneca Group Plc................................... 10,850 327,414
------------
5,439,512
------------

TOTAL INVESTMENTS--98.2%
(COST $40,263,844)........................................... 43,679,131
------------

CASH AND OTHER ASSETS
NET OF LIABILITIES--1.8%..................................... 780,477
------------

NET ASSETS--100%............................................... $ 44,459,608
------------
------------
</TABLE>

* NON-INCOME PRODUCING

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
Winthrop Opportunity Funds--Statement of Investments APRIL 30, 1997 (UNAUDITED)

- --------------------------------------------------------------------------------
WINTHROP DEVELOPING MARKETS FUND
COMMON STOCKS--76.9%
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
----------- ------------

<S> <C> <C>
ARGENTINA--8.6%
Alpargatas SA*.................................... 384,400 $ 324,915
Banco de Galicia y Buenos Aires SA................ 54,077 329,969
Perez Compane SA.................................. 87,417 697,797
Siderca SA Cl.'A'................................. 171,570 357,831
Telefonica de Argentina SA ADR.................... 23,028 765,681
YPF Sociedad Anonima SA ADR....................... 34,550 954,444
------------
3,430,637
------------
CHILE--6.2%
Banco Santander- Chile ADR........................ 19,470 311,520
Chilgener SA ADR.................................. 10,070 286,995
Cia Cervecerias Unidas SA ADR..................... 8,010 178,223
Cia de Telecomunicaciones de Chile SA ADR......... 12,495 404,526
Empresa Nacional Electricidad SA ADR.............. 11,270 216,948
Enersis SA ADR.................................... 10,290 324,135
Madeco GDR........................................ 4,600 125,925
Tata Engineering and Loco......................... 25,400 309,880
Quimica Minera Chile SA ADR....................... 5,700 337,725
------------
2,495,877
------------
CHINA--0.1%
Ek Chor China Motorcycle Company Ltd.............. 10,500 52,500
------------
CZECH REPUBLIC--2.6%
Ceske Energeticke Zavody AS*...................... 5,721 178,192
Inzenyrske Prumyslove Stavby*..................... 2,850 21,640
Komercni Banka AS................................. 1,240 87,581
Skoda Plzen AS*................................... 3,851 123,058
SPT Telecom AS*................................... 3,834 405,079
Tabak AS.......................................... 869 225,491
------------
1,041,041
------------
GREECE--4.0%
Alpha Credit Bank SA.............................. 6,300 380,671
Aktor SA.......................................... 1,800 25,194
Attica Enterprises................................ 16,300 118,812
Elais SA.......................................... 1,700 51,296
Ergo Bank SA...................................... 1,798 118,526
Hellas Can Packaging SA........................... 1,000 15,960
Hellenic Bottling Company SA...................... 8,900 289,096
Hellenic Telecommunication Organization SA........ 2,000 45,407
National Bank of Greece........................... 3,080 326,957
Silver & Baryte Ores Mining SA.................... 1,100 16,756
Titan Cement Company SA........................... 2,900 232,468
------------
1,621,143
------------
HONG KONG--3.2%
China Eastern Airlines Ltd.*...................... 429,000 134,296

<CAPTION>
SHARES U.S. $ VALUE
----------- ------------
<S> <C> <C>
Guangshen Railway Co. Ltd......................... 698,000 $ 333,389
Maanshan Iron & Steel Co. Ltd..................... 950,000 208,481
Qingling Motors Co. Ltd........................... 524,000 287,485
Shanghai Petrochemicals Co. Ltd................... 916,000 227,034
Tsingtao Brewery Co. Ltd.*........................ 204,000 86,245
------------
1,276,930
------------
INDIA--4.6%
Crompton Greaves Ltd. GDR......................... 34,200 102,600
Grasim Industries Ltd. GDR........................ 9,400 104,575
Eih Limited GDR................................... 9,300 148,103
Huaneng Power International ADR................... 13,000 315,250
Indian Aluminum Co. Ltd. GDR...................... 35,000 115,500
Maderas ADR....................................... 11,540 184,640
Mahindra & Mahindra Ltd. GDR*..................... 11,800 147,500
Videsh Sanchar GDR................................ 6,700 131,320
State Bank of India GDR........................... 15,900 376,433
Ranbaxy Laboratories GDR.......................... 8,100 201,488
------------
1,827,409
------------
INDONESIA--3.0%
PT Bank International Indonesia................... 110,985 76,293
PT Gudang Garam Co................................ 34,000 142,716
PT Hanjaya Mandala Sampoerna LCL.................. 56,000 225,267
PT Indah Kiat Pulp & Paper Co..................... 197,000 160,113
PT Semen Gresik LCL............................... 45,000 109,722
PT Telekomunikasi Indonesia Foreign............... 338,500 491,034
------------
1,205,145
------------
MALAYSIA--7.6%
Arab Malaysian Merchant Bhd....................... 19,000 126,419
AMMB Holdings Bhd................................. 27,000 16,674
Berjaya Group Bhd................................. 131,500 79,113
Ekran Bhd......................................... 128,000 132,292
Hong Leong Properties Bhd......................... 40,000 54,504
Kedah Cement Bhd.................................. 22,000 341,846
Leader Universal Holdings Bhd..................... 43,000 85,661
Malayan Banking Bhd............................... 57,000 567,752
Perusahaan Otomobil Bhd........................... 50,000 298,817
Petronas Gas Bhd.................................. 43,000 149,050
Resorts World Bhd................................. 37,000 136,360
Technology Resources Industries Bhd*.............. 25,000 45,819
Telecom Malaysia Bhd.............................. 63,000 441,771
Tenaga Nasional Bhd............................... 40,000 184,868
United Engineers Malaysia Ltd..................... 57,000 404,239
------------
3,065,185
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF INVESTMENTS APRIL 30, 1997 (CONTINUED)
- --------------------------------------------------------------------------------
WINTHROP DEVELOPING MARKETS FUND
<TABLE>
<CAPTION>
SHARES U.S. $ VALUE
----------- ------------
<S> <C> <C>
MEXICO--6.9%
Carso Global Telecom Cl.'A1'*..................... 1,147 $ 3,498
Cifra SA de CV Ser.'C'*........................... 244,663 371,044
Cydsa SA Ser.'A'.................................. 171,000 408,551
Empresa La Moderna SA de CV ADR................... 10,820 224,515
Femsa 'B'......................................... 88,700 423,842
Grupo Carso SA de CV Ser.'A1'*.................... 23,890 141,042
Grupo Financiero Bancomer SA de CV Cl.'B'......... 257,750 90,751
Grupo Televisa SA GDR*............................ 5,140 118,863
Kimberly-Clark de Mexico SA de CV Cl.'A'.......... 50,350 189,624
Telefonos de Mexico SA Cl.'L' ADR................. 11,310 466,538
Tubos de Acero de Mexico SA*...................... 19,500 319,258
------------
2,757,526
------------
PHILIPPINES--2.1%
DMCI Holdings, Inc.*.............................. 183,000 93,686
Metro Pacific Corp................................ 999,310 231,164
Petron Corporation Corp........................... 345,250 126,998
Philippine Commercial International Bank.......... 18,950 233,551
SM Prime Holdings, Inc............................ 463,980 121,405
Southeast Asia Cement Holdings, Inc.*............. 1,132,000 52,372
------------
859,176
------------
PORTUGAL--7.0%
Banco Espirito Santo e Comercial de Lisbon SA*.... 23,437 462,009
Banco Totta & Acores SA........................... 15,032 210,238
Cimpor Cimentos De Portugal SA.................... 20,739 446,424
Corticeira Amorim SA.............................. 2,293 22,370
Engil-Sociedade Gestora De Participacoes Sociais
SA.............................................. 7,252 81,600
Estabelecimentos Jeronimo Martins & Filho SGPS
SA.............................................. 2,609 156,169
Portucel Industrial Empresa Produtora De Celulosa
SA.............................................. 20,197 132,403
Portugal Telecom SA*.............................. 28,585 1,053,768
Sonae Investimentos - SGPS SA..................... 7,862 258,605
------------
2,823,586
------------
SOUTH AFRICA--7.4%
Anglo American Corp............................... 4,800 306,578
Barlow Ltd........................................ 14,200 156,483
De Beers Centenary AG............................. 13,375 481,277
Free State Consolidated Gold Mines Ltd............ 8,400 56,674
Liberty Life Association of Africa Ltd............ 8,193 228,940

<CAPTION>
SHARES U.S. $ VALUE
----------- ------------
<S> <C> <C>
Metro Cash & Carry Ltd............................ 240,500 $ 232,576
Nedcor Ltd........................................ 9,757 198,585
Pick' N Pay Stores Ltd............................ 72,100 98,912
Rembrandt Group Ltd............................... 31,700 333,647
Sasol Ltd......................................... 36,078 462,486
South African Breweries Ltd....................... 14,395 424,096
------------
2,980,254
------------
SOUTH KOREA--4.3%
Hyudai Motors GDR................................. 8,000 67,200
Korea Electrical Power ADR........................ 34,000 578,000
Pohang Iron ADR................................... 20,000 482,500
Samsung Electronics GDR........................... 19,000 446,500
South Korea Telecom Co. ADR....................... 16,480 156,560
------------
1,730,760
------------
TAIWAN--8.3%
Cathay Construction Corp.......................... 355,000 622,472
Cathay Life Insurance Co. Ltd..................... 35,000 208,786
Far Eastern Textile Ltd........................... 210,000 349,242
Formosa Chemicals & Fibre Corp.................... 145,000 209,690
Hon Hai Precision Industry*....................... 75,000 439,264
Hua Nan Commercial Bank........................... 60,000 254,882
International Commercial Bank of China............ 75,000 188,450
Microtek International, Inc.*..................... 140,000 437,818
Pacific Electrical Wire & Cable Corp.*............ 270,000 400,218
U-Ming Marine Transport Corp...................... 250,000 232,286
------------
3,343,108
------------
THAILAND--1.0%
Bangkok Bank Public Co. Ltd....................... 11,800 109,305
Banpu Public Co. Ltd.............................. 3,200 51,935
PTT Exploration and Production Public Co. Ltd..... 4,100 49,278
Shinawatra Computer Company Plc................... 1,400 9,539
Siam Cement Public Co. Ltd........................ 2,200 58,940
Siam City Cement Public Co. Ltd................... 4,800 22,415
Siam Commercial Bank Public Co. Ltd............... 8,400 49,194
Thai Telephone & Communication Public Co. Ltd.*... 41,500 25,416
United Communication Industry Public Co. Ltd...... 3,700 21,244
------------
397,266
------------

TOTAL COMMON STOCKS
(COST $27,828,576)........................................... 30,907,543
------------
</TABLE>

<CAPTION>
SHARES U.S. $ VALUE
----------- ------------
<S> <C> <C>
Unipar Unaio de Industrias Petroquimicas SA Prf... 879,000 $ 338,872
Usinas Siderurgicas de Minas Gerais SA Prf........ 337,038,000 396,154
------------
8,390,473
------------

TOTAL PREFERRED STOCKS
(COST $5,618,034)............................................ 8,390,473
------------

TOTAL INVESTMENTS--97.8%
(COST $33,446,610)........................................... 39,298,016
------------

CASH AND OTHER ASSETS
NET OF LIABILITIES--2.2%..................................... 832,366
------------

NET ASSETS--100%............................................... $ 40,130,382
------------
------------
</TABLE>

* NON-INCOME PRODUCING

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS -- STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPING
EQUITY FUND MARKETS FUND
------------- ------------
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $40,263,844 and $33,446,610,
respectively)................................ $43,679,131 $39,298,016
Cash, at value (cost $332,000 and $572,185,
respectively)................................ 331,137 571,788
Receivable for investments sold................ 328,661 --
Receivable for capital stock sold.............. 41,023 88,296
Dividends and interest receivable.............. 158,140 219,477
Deferred organization costs (Note A)........... 76,443 76,443
------------- ------------
Total assets................................... 44,614,535 40,254,020
------------- ------------

LIABILITIES:
Payable to investment advisor.................. 89,001 83,056
Payable for capital stock redeemed............. 36,117 128
Accrued expenses and other liabilities......... 29,809 40,454
------------- ------------
Total liabilities.............................. 154,927 123,638
------------- ------------
NET ASSETS....................................... $44,459,608 $40,130,382
------------- ------------
------------- ------------

NET ASSETS CONSIST OF:
Capital paid-in................................ $41,199,755 $36,820,130
Accumulated net investment loss................ (440,472) (90,715)
Accumulated net realized gain (loss) on
investments and foreign currency
transactions................................. 293,214 (2,449,126)
Net unrealized appreciation of investments and
foreign currency denominated assets and
liabilities.................................. 3,407,111 5,850,093
------------- ------------
$44,459,608 $40,130,382
------------- ------------
------------- ------------

CLASS A SHARES:
Net assets..................................... $38,499,254 $35,508,771
------------- ------------
Shares outstanding............................. 3,546,765 3,198,881
------------- ------------
Net asset value and redemption value per
share........................................ $ 10.85 $ 11.10
------ ------
------ ------
Maximum offering price per share (net asset
value plus sales charge of 5.75% of offering
price)....................................... $11.51 $11.78
------ ------
------ ------

CLASS B SHARES:
Net assets..................................... $ 5,960,354 $ 4,621,611
------------- ------------
Shares outstanding............................. 555,591 421,874
------------- ------------
Net asset value and offering price per share... $ 10.73 $ 10.95
------ ------
------ ------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF OPERATIONS FOR THE PERIOD ENDED APRIL
30, 1997*
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
INTERNATIONAL DEVELOPING
EQUITY FUND MARKETS FUND
------------ -------------
<S> <C> <C>
INVESTMENT INCOME:
Interest.......................................................................... $ 25,469 $ 17,641
Dividends......................................................................... 259,992 401,178
------------ -------------
285,461 418,819
Less withholding tax on foreign source dividends................................ (30,599) (21,471)
------------ -------------
Total investment income......................................................... 254,862 397,348
------------ -------------
EXPENSES:
Investment advisory fees (Note B)................................................. $ 277,309 $ 240,890
Distribution fees--Class A (Note B)............................................... 48,635 43,012
Distribution fees--Class B (Note B)............................................... 27,308 20,664
Legal fees........................................................................ 14,000 12,000
Transfer agent fees............................................................... 42,000 38,000
Custodian fees.................................................................... 60,000 85,000
Auditing fees..................................................................... 16,500 14,500
Printing fees..................................................................... 13,500 11,000
Trustees' fees.................................................................... 7,000 5,500
Registration fees................................................................. 24,000 23,000
Miscellaneous..................................................................... 6,376 5,006
Amortization of organization costs (Note A)....................................... 11,267 11,267
------------ -------------
547,895 509,839
Less fees waived/reimbursed by investment advisor and subadvisor................ (50,442) (80,009)
------------ -------------
Net expenses.................................................................... 497,453 429,830
------------ -------------
NET INVESTMENT LOSS................................................................. (242,591) (32,482)
------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS--NOTE C:
Net realized gain (loss) on investments........................................... 582,677 (2,371,284)
Net realized gain (loss) on foreign currency transactions......................... 328,560 (24,652)
Net change in unrealized appreciation on investments.............................. 1,382,118 6,751,104
Net change in unrealized appreciation on translation of foreign currency
denominated assets and liabilities.............................................. (6,783) 6,707
------------ -------------
Net realized and unrealized gain on investments and foreign currency
transactions.................................................................... 2,286,572 4,361,875
------------ -------------
INCREASE IN NET ASSETS FROM OPERATIONS.............................................. $2,043,981 $ 4,329,393
------------ -------------
------------ -------------
</TABLE>

* Unaudited

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND DEVELOPING MARKETS FUND
--------------------------- ----------------------------
<S> <C> <C> <C> <C>
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
04/30/97* 10/31/96 04/30/97* 10/31/96
------------- ------------ -------------- ------------

<CAPTION>
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment loss.......................... $ (242,591) $ (195,448) $ (32,482) $ (63,622)
Net realized gain (loss) on investments and
foreign currency transactions.............. 911,237 53,740 (2,395,936) 62,090
Net change in unrealized appreciation/
depreciation on investments and foreign
currency denominated assets and
liabilities................................ 1,375,335 2,622,139 6,757,811 (229,102)
------------- ------------ -------------- ------------
Increase (decrease) in net assets resulting
from operations............................ 2,043,981 2,480,431 4,329,393 (230,634)
------------- ------------ -------------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Realized gains on investments:
Class A.................................... -- -- (87,147) --
Class B.................................... -- -- (9,498) --
------------- ------------ -------------- ------------
Total dividends and distributions to
shareholders............................... -- -- (96,645) --
------------- ------------ -------------- ------------
CAPITAL STOCK TRANSACTIONS--(NET) NOTE D....... (4,709,071) 14,022,355 (4,662,035) 25,163,617
------------- ------------ -------------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS...... (2,665,090) 16,502,786 (429,287) 24,932,983
NET ASSETS:
Beginning of year............................ 47,124,698 30,621,912 40,559,669 15,626,686
------------- ------------ -------------- ------------
End of period................................ $44,459,608 $ 47,124,698 $ 40,130,382 $ 40,559,669
------------- ------------ -------------- ------------
------------- ------------ -------------- ------------
</TABLE>

* Unaudited

SEE NOTES TO FINANCIAL STATEMENTS.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997
(UNAUDITED)
- --------------------------------------------------------------------------------

NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. Winthrop International Funds ("Fund"
or "Funds") consist of two portfolios (the "Portfolios"), the Winthrop
International Equity Fund and the Winthrop Developing Markets Fund (together the
"International Funds"), each a separate diversified series of the Winthrop
Opportunity Funds (the "Trust"). In addition, the Trust also consists of the
Winthrop Municipal Money Fund and the Winthrop U.S. Government Money Fund. The
Trust was organized as a Delaware business trust under the laws of Delaware on
May 31, 1995 and is registered under the Investment Company Act of 1940 (the
"Act"), as amended, as an open-end investment company.

Prior to commencing operations on September 8, 1995, the International Funds 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 Advisor 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 Fund's 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 the Funds.

(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 ask
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 gain (loss) on foreign currency transactions 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 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.
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997
(continued)
- --------------------------------------------------------------------------------

(3) FEDERAL INCOME TAXES: The Funds intend to be treated as "regulated
investment companies" under Subchapter 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. The International Equity Fund has an unused
capital loss carryover of approximately $207,000 available for federal income
tax purposes to be applied against future net securities profits, if any,
realized subsequent to October 31, 1996. If not applied, the carryover expires
in fiscal 2004.

(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 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 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 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 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.

Commencing at the inception of each Fund through April 30, 1997, the Advisor and
Subadvisor voluntarily reduced their management fees by the amount that total
fund operating expenses exceeded 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. For the
period May 1, 1997 through October 31, 1997, the Advisor and Subadvisor have
agreed to continue to 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. After
October 31, 1997, 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
$50,442 and $80,009 for the International Equity Fund and Developing Markets
Fund, respectively, during the six month period ended April 30, 1997.

The Fund has entered into a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Act 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 Advisor 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
<PAGE>
WINTHROP OPPORTUNITY FUNDS--NOTES TO FINANCIAL STATEMENTS APRIL 30, 1997
(continued)
- --------------------------------------------------------------------------------
fee of $1,000 per meeting. Attendance fees are charged to all series of the
Trust and are allocated on a pro rata basis.

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, 1997, aggregated $22,269,551 and
$23,811,802 for the International Equity Fund; and $16,525,572 and $25,722,083
for the Developing Markets Fund, respectively.

The Funds 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 U.S. dollar.

At April 30, 1997, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes. At April
30, 1997, the components of net unrealized appreciation (depreciation) 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)............................ $ 5,638,179 $ 7,744,637
Gross depreciation (investments having an excess
of cost over value)............................ (2,222,892) (1,893,231)
------------- ------------
Net unrealized appreciation of investments....... $ 3,415,287 $ 5,851,406
------------- ------------
------------- ------------
</TABLE>

NOTE (D) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.001 par value) 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 YEAR ENDED SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1997* OCTOBER 31, 1996 APRIL 30, 1997* OCTOBER 31, 1996
--------------------- ---------------------- --------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-------- ----------- --------- ----------- -------- ----------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CLASS A
Shares sold.............. 196,472 $ 2,096,934 1,762,635 $18,326,646 199,327 $ 2,124,629 2,674,932 $27,515,135
Shares issued through
reinvestment of
dividends.............. -- -- -- -- 8,374 84,414 -- --
Shares redeemed.......... (713,535) (7,589,832) (707,635) (7,314,187) (717,159) (7,421,273) (500,614) (5,065,351)
-------- ----------- --------- ----------- -------- ----------- --------- -----------
Net increase
(decrease)............. (517,063) ($5,492,898) 1,055,000 $11,012,459 (509,458) ($5,212,230) 2,174,318 $22,449,784
-------- ----------- --------- ----------- -------- ----------- --------- -----------
-------- ----------- --------- ----------- -------- ----------- --------- -----------
CLASS B
Shares sold.............. 101,958 $ 1,075,291 318,343 $ 3,273,880 78,940 $ 825,730 285,158 $ 2,933,036
Shares issued through
reinvestment of
dividends.............. -- -- -- -- 950 9,486 -- --
Shares redeemed.......... (27,755) (291,464) (25,335) (263,984) (27,277) (285,021) (21,340) (219,203)
-------- ----------- --------- ----------- -------- ----------- --------- -----------
Net increase............. 74,203 $ 783,827 293,008 $ 3,009,896 52,613 $ 550,195 263,818 $ 2,713,833
-------- ----------- --------- ----------- -------- ----------- --------- -----------
-------- ----------- --------- ----------- -------- ----------- --------- -----------
</TABLE>

* Unaudited
<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
-----------------------------------------------------------------------------------------
CLASS A CLASS B
------------------------------------------ ------------------------------------------
SEPTEMBER 8, SEPTEMBER 8,
SIX MONTHS 1995* SIX MONTHS 1995*
ENDED YEAR ENDED THROUGH ENDED YEAR ENDED THROUGH
APRIL 30,1997 OCTOBER 31, OCTOBER 31, APRIL 30,1997 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 (UNAUDITED) 1996 1995
------------- ----------- ------------ ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 10.38 $ 9.58 $ 10.00 $10.29 $ 9.57 $ 10.00
------------- ----------- ------------ ------ ----------- ------------
Net investment income
(loss)(1)................. (0.05) (0.04) -- (0.09) (0.13) (0.02)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions.............. 0.52 0.84 (0.42) 0.53 0.85 (0.41)
------------- ----------- ------------ ------ ----------- ------------
Net increase (decrease) in
net asset value from
operations................ 0.47 0.80 (0.42) 0.44 0.72 (0.43)
Distributions from capital
gains..................... -- -- -- -- -- --
------------- ----------- ------------ ------ ----------- ------------
Net asset value, end of
period.................... $ 10.85 $ 10.38 $ 9.58 $10.73 $ 10.29 $ 9.57
------------- ----------- ------------ ------ ----------- ------------
------------- ----------- ------------ ------ ----------- ------------
Total Return(2)............. 0.28% 8.35% (4.20)% (0.46)% 7.52% 4.30%
Ratio of expenses to average
net assets(4)............. 2.15%(3) 2.15% 2.15%(3) 2.90%(3) 2.90% 2.90%(3)
Ratio of net investment
income (loss) to average
net assets................ (0.25)%(3) (0.39)% (0.02)%(3) (0.42)%(3) (1.25)% (1.77)%(3)
Portfolio turnover rate..... 51.13% 94.12% -- 51.13% 94.12% --
Average commission rate
paid...................... $ 0.046 $ 0.041 -- $0.046 $ 0.041 --
Net assets, end of period
(000 omitted)............. $38,499 $42,170 $28,819 $5,960 $ 4,955 $ 1,803

<CAPTION>
DEVELOPING MARKETS FUND
----------------------------------------------------------------------------------------

CLASS A
------------------------------------------ CLASS B
SEPTEMBER 8, -------------------------------------------
SIX MONTHS 1995* SIX MONTHS SEPTEMBER 8,
ENDED YEAR ENDED THROUGH ENDED YEAR ENDED 1995* THROUGH
APRIL 30,1997 OCTOBER 31, OCTOBER 31, APRIL 30,1997 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1996 1995 (UNAUDITED) 1996 1995
------------- ----------- ------------ ------------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 9.96 $ 9.53 $ 10.00 $ 9.86 $ 9.52 $10.00
------------- ----------- ------------ ------ ----------- ------
Net investment income
(loss)(1)................. -- (0.01) -- (0.04) (0.08) (0.01)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions.............. 1.16 0.44 (0.47) 1.15 0.42 (0.47)
------------- ----------- ------------ ------ ----------- ------
Net increase (decrease) in
net asset value from
operations................ 1.16 0.43 (0.47) 1.11 0.34 (0.47)
Distributions from capital
gains..................... (0.02) -- -- (0.02) -- --
------------- ----------- ------------ ------ ----------- ------
Net asset value, end of
period.................... $ 11.10 $ 9.96 $ 9.53 $10.95 $ 9.86 $ 9.52
------------- ----------- ------------ ------ ----------- ------
------------- ----------- ------------ ------ ----------- ------
Total Return(2)............. 5.28% 4.51% (4.70)% 4.35% 3.57% (4.80)%
Ratio of expenses to average
net assets(4)............. 2.15%(3) 2.15% 2.15%(3) 2.90%(3) 2.90% 2.90%(3)
Ratio of net investment
income (loss) to average
net assets................ (0.05)%(3) (0.14)% 0.32%(3) (0.73)%(3) (0.83)% 1.00%(3)
Portfolio turnover rate..... 48.58% 26.76% -- 48.58% 26.76% --
Average commission rate
paid...................... $ 0.016 $ 0.028 -- $0.016 $0.028 --
Net assets, end of period
(000 omitted)............. $35,509 $36,918 $14,622 $4,622 $3,641 $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

(4) Net of voluntary reduction of management fees by Adviser and Subadviser
expressed as a percentage of average daily net assets of both Class A and
Class B of each Fund as follows: International Equity Fund .23% (annualized)
for the six months ended April 30, 1997, and .27% and .60% for the years
ended 10/31/96 and 10/31/95 (inception 9/8/95), respectively, and Developing
Markets Fund .42% (annualized) for six months ended April 30, 1997, and .54%
and .60% for the years ended 10/31/96 and 10/31/95 (inception 9/8/95),
respectively.

<PAGE>

WINTHROP OPPORTUNITY FUNDS
(800) 225-8011

TRUSTEES

G. MOFFETT COCHRAN ROBERT E. FISCHER
WILMOT H. KIDD, III MARTIN JAFFE
JOHN H. WALLER, III

OFFICERS

G. MOFFETT COCHRAN, CHAIRMAN AND PRESIDENT
JAMES A. ENGLE, VICE PRESIDENT
RICHARD L. GLESSMAN, VICE PRESIDENT
MARTIN JAFFE, VICE PRESIDENT, SECRETARY AND TREASURER
MARYBETH B. LEITHEAD, VICE PRESIDENT
BRIAN A. KAMMERER, ASSISTANT TREASURER

INVESTMENT ADVISER

WOOD STRUTHERS & WINTHROP MANAGEMENT CORPORATION
AN INVESTMENT MANAGEMENT SUBSIDIARY OF
DONALDSON, LUFKIN & JENRETTE
277 PARK AVENUE, NEW YORK, NY 10172

SUBADVISER

AXA ASSET MANAGEMENT
PARTENAIRES
40 RUE DU COLISEE
PARIS, FRANCE 75008

CUSTODIAN

CITIBANK, N.A.
111 WALL STREET, NEW YORK, NY 10043

TRANSFER AGENT

FPS SERVICES, INC.
P.O. BOX 61503 (3200 HORIZON DRIVE)
KING OF PRUSSIA, PA 19406

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

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

[LOGO]

INVESTMENT MANAGEMENT SUBSIDIARY OF

DONALDSON, LUFKIN & JENRETTE
SECURITIES CORPORATION

(THE FUND DISTRIBUTOR)

WOF-2 6/97

[LOGO] W I N T H R O P [LOGO]
---------------
MUTUAL FUNDS

-------------------------------------------

WINTHROP DEVELOPING MARKETS FUND

WINTHROP INTERNATIONAL EQUITY FUND

APRIL 30, 1997

SEMI-ANNUAL
REPORT