<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF INVESTMENTS April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
MUNICIPAL PRINCIPAL
OBLIGATIONS -- 97.3% AMOUNT VALUE
---------- -----------
<S> <C> <C>
ALABAMA -- 3.1%
Decatur, AL IDR SWDR (Amoco
Chemical Co. Project) (LOC:
Amoco Corp.) VRDN
4.350%'D'DD'.................. $2,000,000 $ 2,000,000
-----------
ALASKA -- 4.6%
City of Valdez, Alaska Marine
Terminal CP (ARCO Project)
3.650%, 05/21/98.............. 2,000,000 2,000,000
City of Valdez, Alaska CP
3.550%, 09/11/98.............. 1,000,000 1,000,000
-----------
3,000,000
-----------
CALIFORNIA -- 1.5%
Los Angeles County, CA TRANS GO
Ser. A (LOC: Bayerische
Landesbank) 4.250%,
06/30/98...................... 1,000,000 1,001,029
-----------
COLORADO -- 1.5%
City & County of Denver, CO
Airport System CP (LOC:
Bayerische Landesbank) 3.65%,
05/19/98...................... 1,000,000 1,000,000
-----------
CONNECTICUT -- 1.2%
Shelton, CT GO (Insured: MBIA)
4.750%, 09/01/98.............. 800,000 805,250
-----------
FLORIDA -- 6.4%
Florida Local Government
Assistance CP (LOC: First
Union National Bank of
Florida) 3.500%, 09/08/98..... 2,000,000 2,000,000
Orange County, FL School
District TANS 4.250%,
09/15/98...................... 1,250,000 1,253,078
University of North Florida
Foundation, Inc. Revenue (LOC:
First Union National Bank of
North Carolina) VRDN
4.150%'D'..................... 900,000 900,000
-----------
4,153,078
-----------
GEORGIA -- 1.5%
Municipal Gas Authority of
Georgia Revenue Ser. C (LOC:
Wachovia Bank, Bank of
America, Morgan Guaranty Trust
Co., Bayerische Landesbank)
VRDN 4.100%'D'DD'............. 1,000,000 1,000,000
-----------
INDIANA -- 3.4%
Mount Vernon, IN PCR CP (LOC:
General Electric Company)
3.600%, 05/22/98.............. 1,200,000 1,200,000
Mount Vernon, IN PCR CP (LOC:
General Electric Company)
3.500%, 06/11/98.............. 1,000,000 1,000,000
-----------
2,200,000
-----------
KANSAS -- 0.9%
Butler County, KS SWDR (Texaco
Refining & Marketing) Ser. B
(LOC: Texaco, Inc.) VRDN
4.400%'D'DD'.................. 600,000 600,000
-----------
<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<S> <C> <C>
KENTUCKY -- 3.5%
Pendelton County, KY CP (LOC:
Bank of Australia) 3.650%,
09/10/98...................... $2,250,000 $ 2,250,000
-----------
LOUISIANA -- 6.5%
Lake Charles Harbor & Terminal
Distribution Port Revenue
(LOC: National Westminster
Bank) VRDN 4.200%'D'.......... 1,000,000 1,000,000
Plaquemines Parish, LA
Environmental Revenue (British
Petroleum Exploration & Oil,
Inc.) (LOC: British Petroleum)
VRDN 4.400%'D'DD'............. 2,100,000 2,100,000
St. Charles Parish, LA PCR
(Shell Oil Co. Norco Project)
(LOC: Shell Oil Co.) VRDN
4.350%'D'DD'.................. 1,100,000 1,100,000
-----------
4,200,000
-----------
MARYLAND -- 1.5%
Baltimore County, MD PCR CP
(LOC: Baltimore Gas & Electric
Co.) 3.500%, 08/12/98......... 1,000,000 1,000,000
-----------
MASSACHUSETTS -- 3.1%
Massachusetts Water Resource CP
(LOC: Morgan Guaranty Trust
Co.) 3.600%, 05/22/98......... 2,000,000 2,000,000
-----------
MICHIGAN -- 4.8%
Detroit, MI Water Supply System
(LIQ: FGIC) VRDN 4.200%'D'.... 800,000 800,000
Michigan State HDA (Pine Ridge)
(LOC: Wachovia Bank) VRDN
4.050%'D'..................... 1,300,000 1,300,000
Michigan State HDA (Harbortown,
Ltd.) (LOC: Bankers Trust Co.)
VRDN 4.225%'D'................ 1,000,000 1,000,000
-----------
3,100,000
-----------
MINNESOTA -- 1.5%
Minnesota State GO 4.500%,
05/01/98...................... 940,000 940,000
-----------
NEBRASKA -- 1.9%
Nebraska Higher Education Loan
Program Ser. C (LOC: SLMA)
VRDN 4.200%'D'................ 1,200,000 1,200,000
-----------
NEVADA -- 3.1%
Clark County, NV IDR (LOC: ABN
Amro Bank N.V.) VRDN
4.400%'D'DD'.................. 1,000,000 1,000,000
Washoe County, NV Water Facility
Revenue (Sierra Pacific Power
Co. Project) (LOC: Union Bank
of Switzerland) VRDN
4.400%'D'..................... 1,000,000 1,000,000
-----------
2,000,000
-----------
NEW MEXICO -- 4.2%
Farmington, NM PCR (LOC:
Barclays Bank PLC) VRDN
4.200%'D'DD'.................. 2,700,000 2,700,000
-----------
</TABLE>
See notes to financial statements.
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF INVESTMENTS April 30, 1998 (continued)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
OHIO -- 3.1%
<S> <C> <C>
Ohio State Air Quality
Development Authority (LOC:
Societe Generale) VRDN
4.150%'D'..................... $1,000,000 $ 1,000,000
Toledo-Lucas County, OH Port
Authority CP (LOC: Bank of
Nova Scotia) 3.250%,
05/12/98...................... 1,000,000 1,000,000
-----------
2,000,000
-----------
PENNSYLVANIA -- 10.6%
Allegheny County, PA IDA PCR CP
(LOC: Commerzbank) 3.600%,
06/04/98...................... 2,000,000 2,000,000
Allegheny County, PA IDA PCR CP
(LOC: Commerzbank) 3.450%,
06/09/98...................... 2,000,000 2,000,000
Indiana County, PA IDA PCR (LOC:
Union Bank of Switzerland)
VRDN 4.150%'D'................ 1,400,000 1,400,000
Philadelphia, PA School District
TRANS (LOC: Commerzbank A.G.)
4.500%, 06/30/98.............. 1,500,000 1,501,304
-----------
6,901,304
-----------
SOUTH CAROLINA -- 11.0%
Berkeley County, SC IDR (LOC:
Nucor Corp.) VRDN 4.250%'D'... 1,000,000 1,000,000
Berkeley County, SC IDR (LOC:
Nucor Corp.) VRDN 4.250%'D'... 1,000,000 1,000,000
Charleston County, SC IDR (LOC:
Bank of America) VRDN
3.600%'D'DD'.................. 1,100,000 1,100,000
Florence County, SC SWDR (LOC:
Swiss Bank Corp.) VRDN
4.400%'D'DD'.................. 1,000,000 1,000,000
South Carolina Public Power CP
3.550%, 09/24/98.............. 3,000,000 3,000,000
-----------
7,100,000
-----------
TEXAS -- 13.0%
Brazos River Authority PCR
(Texas Utilities Electric Co.)
(Insured: AMBAC) VRDN
4.400%'D'..................... 1,000,000 1,000,000
Gulf Coast, TX IDA Marine
Terminal Revenue (Amoco Oil
Company Project) VRDN
4.350%'D'DD'.................. 1,000,000 1,000,000
Gulf Coast Waste Disposal
Authority of Texas PCR CP
(LOC: Exxon) 3.750%,
06/05/98...................... 1,000,000 1,000,000
Gulf Coast Waste Disposal
Authority of Texas PCR & SWDR
(Amoco Oil Co. Project) (LOC:
Amoco Corp.) VRDN
4.350%'D'DD'.................. 1,400,000 1,400,000
Sabine River Authority, TX PCR
(Insured: MBIA) VRDN
4.350%'D'DD'.................. 1,000,000 1,000,000
Texas State TRANS Ser. A 4.750%,
08/31/98...................... 3,000,000 3,010,072
-----------
8,410,072
-----------
<PAGE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
---------- -----------
<S> <C> <C>
UTAH -- 2.3%
Carbon County, UT IDA CP (LOC:
National Westminster Bank)
3.600%, 05/15/98.............. $1,000,000 $ 1,000,000
Salt Lake City, UT Airport
Revenue Ser. A (LOC: Union
Bank of Switzerland) VRDN
4.100%'D'..................... 500,000 500,000
-----------
1,500,000
-----------
VIRGINIA -- 0.9%
King George County, VA IDA (LOC:
Credit Suisse First Boston
Corp.) VRDN
4.400%'D'DD'.................. 600,000 600,000
-----------
WASHINGTON -- 2.2%
Washington State Public Power
Supply System (Nuclear Project
No. 1) Ser. C 4.500%,
07/01/98...................... 515,000 515,451
Washington State Public Power
Supply System (Nuclear Project
No. 3) Ser. 1993-3A2 (LOC:
Bank of America) VRDN
4.250%'D'..................... 900,000 900,000
-----------
1,415,451
-----------
TOTAL MUNICIPAL OBLIGATIONS
(amortized cost $63,076,184).............. 63,076,184
-----------
<CAPTION>
REGISTERED INVESTMENT COMPANIES -- 2.0%
(cost $1,269,129)
SHARES
----------
<S> <C> <C>
Federated Tax-Free Obligations
Fund.......................... 1,269,129 1,269,129
-----------
TOTAL INVESTMENTS -- 99.3%
(cost $64,345,313)........................ 64,345,313
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 0.7%.................. 475,904
-----------
NET ASSETS -- 100.0%.......................... $64,821,217
-----------
-----------
</TABLE>
'DD' Subject to Alternative Minimum Tax.
'D' Securities payable on demand. Rate shown is rate in effect at April 30,
1998. This rate is subject to change and is based on bank prime rates or an
index of market interest rates.
See notes to financial statements.
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF INVESTMENTS April 30, 1998 (continued)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL MONEY FUND
ABBREVIATIONS USED IN THE PORTFOLIO
<TABLE>
<S> <C>
AMBAC American Municipal Bond Assurance
Corporation
CP Commercial Paper
FGIC Financial Guaranty Insurance Corporation
GO General Obligation
HDA Housing Development Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue Bond
LIQ Liquidity Agreement
</TABLE>
<TABLE>
<S> <C>
LOC Letter of Credit
MBIA Municipal Bond Investors Assurance Insurance
Corporation
PCR Pollution Control Revenue Bond
SLMA Student Loan Marketing Association
SWDR Solid Waste Disposal Revenue
TANS Tax Anticipation Notes
TRANS Tax and Revenue Anticipation Notes
VRDN Variable Rate Demand Note
</TABLE>
STATEMENT OF INVESTMENTS April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
WINTHROP U.S. GOVERNMENT MONEY FUND
<TABLE>
PRINCIPAL
U.S. GOVERNMENT AGENCIES -- 59.8% AMOUNT VALUE
---------- -----------
<S> <C> <C>
Federal Farm Credit Bank
5.900%, 06/02/98............... $3,000,000 $ 3,000,813
5.700%, 11/03/98............... 2,000,000 2,000,522
Federal Home Loan Mortgage Corp.
Discount Notes
5.450%, 05/08/98............... 4,800,000 4,794,913
5.450%, 05/13/98............... 750,000 748,637
5.480%, 05/13/98............... 1,250,000 1,247,717
Federal National Mortgage
Association
9.400%, 08/10/98............... 2,525,000 2,550,089
7.850%, 09/10/98............... 1,260,000 1,269,450
5.600%, 04/22/99............... 1,000,000 999,352
Federal National Mortgage
Association Discount Notes
5.400%, 06/05/98............... 2,000,000 1,989,500
5.320%, 06/22/98............... 1,000,000 992,316
Student Loan Marketing
Association Discount Note
5.400%, 02/10/99............... 2,000,000 1,999,133
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $21,592,442)............... 21,592,442
-----------
</TABLE>
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF INVESTMENTS April 30, 1998 (continued)
- --------------------------------------------------------------------------------
WINTHROP MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENTS -- 39.9% AMOUNT VALUE
---------- -----------
<S> <C> <C>
Goldman, Sachs & Co. 5.480%,
dated 04/29/98 due 05/06/98 in
the amount of $8,909,483 (fully
collateralized by $9,027,474
Federal Home Loan Mortgage
Corporation 7.000%, 10/01/27,
value $9,078,000).............. $8,900,000 $ 8,900,000
JP Morgan 5.550%, dated 04/30/98
due 05/01/98 in the amount of
$3,718,573 (fully
collateralized by $3,679,000
U.S. Treasury Notes 6.125%,
12/31/01 value $3,793,361)..... 3,718,000 3,718,000
Salomon Brothers 5.530%, dated
04/22/98 due 05/06/98 in the
amount of $1,803,829 (fully
collateralized by $1,794,556
Federal Home Loan Mortgage
Corporation 4.500% - 15.000%,
06/01/98 - 08/01/27, value
$1,817,770 and $20,588 Federal
National Mortgage Association
6.500% - 10.250%, value
$28,110)....................... 1,800,000 1,800,000
-----------
TOTAL REPURCHASE AGREEMENTS
(cost $14,418,000)......................... 14,418,000
-----------
TOTAL INVESTMENTS -- 99.7%
(cost $36,010,442)......................... 36,010,442
-----------
CASH AND OTHER ASSETS
NET OF LIABILITIES -- 0.3%................. 106,574
-----------
NET ASSETS -- 100.0%......................... $36,117,016
-----------
-----------
</TABLE>
See notes to financial statements.
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF ASSETS AND LIABILITIES April 30, 1998
(unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL U.S. GOVERNMENT
MONEY FUND MONEY FUND
----------- ---------------
<S> <C> <C>
ASSETS:
Investments in securities, at value (cost $64,345,313 and $36,010,442, respectively)
(including repurchase agreements of $14,418,000 for the U.S. Government Money
Fund)............................................................................ $64,345,313 $36,010,442
Cash................................................................................ -- 304
Receivable for capital stock sold................................................... 121,705 13,202
Interest receivable................................................................. 532,650 226,648
Deferred organization costs (Note A)................................................ 53,996 53,997
----------- ---------------
Total assets........................................................................ 65,053,664 36,304,593
----------- ---------------
LIABILITIES:
Payable to investment advisor....................................................... 61,145 53,918
Payable to distributor.............................................................. 14,165 7,559
Dividends payable................................................................... 82,615 69,610
Accrued expenses and other liabilities.............................................. 74,522 56,490
----------- ---------------
Total liabilities................................................................... 232,447 187,577
----------- ---------------
NET ASSETS............................................................................ $64,821,217 $36,117,016
----------- ---------------
----------- ---------------
NET ASSETS CONSIST OF:
Capital paid-in..................................................................... $64,821,217 $36,117,026
Accumulated net realized loss on investments........................................ -- (10)
----------- ---------------
$64,821,217 $36,117,016
----------- ---------------
----------- ---------------
Shares outstanding.................................................................. 64,821,217 36,117,026
----------- ---------------
----------- ---------------
Net asset value and redemption value per share...................................... $1.00 $1.00
</TABLE>
STATEMENT OF OPERATIONS for the Period ended April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL U.S. GOVERNMENT
MONEY FUND MONEY FUND
---------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Interest............................................................................. $1,009,454 $ 1,057,259
---------- ---------------
EXPENSES:
Investment advisory fees (Note B).................................................... 112,751 75,251
Distribution fees (Note B)........................................................... 70,470 47,032
Registration fees.................................................................... 33,200 26,000
Transfer agent fees.................................................................. 25,100 25,300
Custodian fees....................................................................... 32,000 33,000
Auditing fees........................................................................ 12,500 9,500
Printing fees........................................................................ 12,500 8,000
Trustees' fees (Note B).............................................................. 7,500 5,000
Legal fees........................................................................... 12,000 7,000
Miscellaneous........................................................................ 23,777 21,648
Amortization of organization costs (Note A).......................................... 7,006 7,006
---------- ---------------
Total expenses.................................................................... 348,804 264,737
Less expenses reimbursed by investment advisor (Note B)........................... (95,113 ) (95,422)
---------- ---------------
Net expenses...................................................................... 253,691 169,315
---------- ---------------
NET INVESTMENT INCOME.................................................................. 755,763 887,944
---------- ---------------
INCREASE IN NET ASSETS FROM OPERATIONS................................................. $ 755,763 $ 887,944
---------- ---------------
---------- ---------------
</TABLE>
See notes to financial statements.
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MUNICIPAL U.S. GOVERNMENT
MONEY FUND MONEY FUND
--------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED PERIOD ENDED ENDED PERIOD ENDED
04/30/98'D' 10/31/97* 04/30/98'D' 10/31/97*
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income..................................... $ 755,763 $ 575,232 $ 887,944 $ 795,296
Net realized loss on investments.......................... -- -- -- (10)
----------- ------------ ----------- ------------
Increase in net assets from operations.................... 755,763 575,232 887,944 795,286
----------- ------------ ----------- ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income......................................... (755,763) (575,232) (887,944) (795,296)
----------- ------------ ----------- ------------
CAPITAL STOCK TRANSACTIONS -- (NET) Note C.................. 26,139,862 38,681,355 942,942 35,174,084
----------- ------------ ----------- ------------
Total increase in net assets.............................. 26,139,862 38,681,355 942,942 35,174,074
NET ASSETS:
Beginning of period....................................... 38,681,355 -- 35,174,074 --
----------- ------------ ----------- ------------
End of period............................................. $64,821,217 $38,681,355 $36,117,016 $35,174,074
----------- ------------ ----------- ------------
----------- ------------ ----------- ------------
</TABLE>
*Commencement of operations was February 24, 1997.
'D' Unaudited
See notes to financial statements.
NOTES TO FINANCIAL STATEMENTS April 30, 1998 (unaudited)
- --------------------------------------------------------------------------------
NOTE (A) SIGNIFICANT ACCOUNTING POLICIES. Winthrop Money Funds ('Fund' or
'Funds') consists of two portfolios (the 'Portfolios'), the Winthrop Municipal
Money Fund and the Winthrop U.S. Government Money Fund (together the 'Money
Funds'), each a separate diversified series of the Winthrop Opportunity Funds
(the 'Trust'). In addition, the Trust consists of the Winthrop International
Equity Fund and the Winthrop Developing Markets 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 management investment company. The Money Funds commenced operations
on February 24, 1997.
The Municipal Money Fund seeks maximum current income, consistent with liquidity
and safety of principal, that is exempt from Federal income taxes by investing
principally in a diversified portfolio of municipal securities. The investment
objective of the U.S. Government Money Fund is maximum current income,
consistent with liquidity and safety of principal, by investing in a portfolio
of U.S. Government securities.
Each Portfolio is considered to be a separate entity for financial reporting and
tax purposes. It is the Funds' policy to maintain a continuous net asset value
of $1.00 per share for each Portfolio. The Fund has adopted certain investment,
portfolio valuation and dividend and distribution policies to enable it to do
so. There is no assurance, however, that each Portfolio will be able to maintain
a stable net asset value of $1.00 per share.
The Funds account separately for the assets, liabilities and operations of each
Portfolio. Expenses directly attributable to each Portfolio are charged to that
Portfolio's operations; expenses which are applicable to all portfolios are
allocated among them on a pro rata basis. The Funds' financial statements are
prepared in accordance with generally accepted accounting principles which may
require the use of management estimates and assumptions. Actual results could
differ from those estimates. The following is a summary of significant
accounting policies consistently followed by the Funds.
(1) SECURITY VALUATION: Securities are valued at amortized cost, which has
been determined by the Funds' Board of Trustees to represent the fair value of
the Funds' investments. This involves initially valuing a security at its
original cost and thereafter assuming a constant amortization to maturity of
any discount or premium.
(2) REPURCHASE AGREEMENTS: The Funds may enter into repurchase agreements with
financial institutions, deemed to be creditworthy by the Funds' Advisor,
subject to the seller's agreement to repurchase and the Funds' agreement to
resell such securities at a mutually agreed-upon price. Securities purchased
subject to repurchase agreements are deposited with the Funds' custodian or
custodians authorized in accordance
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- NOTES TO FINANCIAL STATEMENTS April 30, 1998 (continued)
- --------------------------------------------------------------------------------
with guidelines approved by the Funds' Trustees. Pursuant to the terms of the
repurchase agreement, such securities must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Funds will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Funds maintain the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(3) FEDERAL INCOME TAXES: The Funds intend to be treated as 'regulated
investment companies' under Sub-chapter M of the Internal Revenue Code and to
distribute substantially all of their net taxable income. Accordingly, no
provisions for federal income taxes have been made in the accompanying
financial statements. For federal income tax purposes, the cost of securities
owned at April 30, 1998 was substantially the same as the cost of securities
for financial statement purposes.
(4) INVESTMENT INCOME AND SECURITIES TRANSACTIONS: Interest income is accrued
daily. Security transactions are accounted for on the date securities are
purchased or sold. Discounts and premiums on securities purchased are
amortized in accordance with income tax regulations which approximate
generally accepted accounting principles. Security gains and losses are
determined on the identified cost basis.
(5) DIVIDENDS AND DISTRIBUTIONS: It is the policy of the Funds to declare
dividends daily from net investment income. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, are normally declared and
paid annually, but the Funds may make distributions on a more frequent basis
to comply with the distribution requirements of the Internal Revenue Code. To
the extent that net realized capital gain can be offset by capital loss
carryovers, it is the policy of the Funds not to distribute such gain.
(6) DEFERRED ORGANIZATION COSTS: The Funds will reimburse the Advisor for
costs incurred in connection with their organization. The costs are being
amortized on a straight-line basis over sixty months commencing February 24,
1997.
NOTE (B) ADVISORY AND DISTRIBUTION SERVICES AGREEMENT: DLJ Investment Management
Corp. (the 'Advisor') is a wholly-owned subsidiary of Donaldson, Lufkin &
Jenrette Securities Corporation, which is a wholly-owned subsidiary of
Donaldson, Lufkin and Jenrette, Inc. ('DLJ'). DLJ is an independently operated,
indirect subsidiary of The Equitable Companies, Incorporated, a holding company
controlled by AXA-UAP ('AXA'), a member of a large French insurance group. AXA
is indirectly controlled by a group of four French mutual insurance companies.
Under its Advisory Agreement with the Funds, the Advisor will provide investment
advisory services and order placement facilities for the Funds and pay all
compensation of Trustees of the Funds who are affiliated persons of the Advisor.
The Advisor or its affiliates will also furnish the Funds, without charge,
management supervision and assistance and office facilities. The Funds will pay
the Advisor at the following annual percentage rates of the average daily net
assets of each Portfolio: .40 of 1% of each Portfolio's first $1 billion and .35
of 1% of the balance. Such fees will be accrued daily and paid monthly.
For the period November 1, 1997 through October 31, 1998, the Advisor has agreed
to voluntarily reduce its management fees and the Advisor or its affiliates have
agreed to reimburse operating expenses by the amount that total fund operating
expenses exceed 0.90% of the average daily net assets of each Fund. After
October 31, 1998, the Advisor or its affiliates may, in their sole discretion,
determine to discontinue this practice with respect to either Fund. As a result
of the voluntary assumption of expenses, the Municipal Money Fund and U.S.
Government Money Fund were reimbursed $95,113 and $95,422, respectively, during
the six months ended April 30, 1998.
Pursuant to Rule 12b-1 under the Act, the Fund has entered into a Distribution
Services Agreement (the 'Agreement') with Donaldson, Lufkin & Jenrette
Securities Corporation, the Fund's Distributor, under which the Fund pays a
distribution services fee to the Distributor at an annual rate of up to .25 of
1% of its average daily net assets. Under the Agreement, each Fund is obligated
to pay distribution and/or service fees to the Distributor for its distribution
and service activities as reimbursement for specific expenses incurred. In
addition, the Agreement provides that the Advisor may use its own resources
including fees from investment companies (including the Fund) 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 receives an
attendance fee of $1,000 per audit committee meeting.
<PAGE>
<PAGE>
WINTHROP MONEY FUNDS -- NOTES TO FINANCIAL STATEMENTS April 30, 1998 (continued)
- --------------------------------------------------------------------------------
NOTE (C) SHARES OF BENEFICIAL INTEREST: There is an unlimited number of shares
($0.001 par value) authorized. Transactions in shares of beneficial interest
were as follows ($1.00 per share):
<TABLE>
<CAPTION>
MUNICIPAL MONEY FUND U.S. GOVERNMENT MONEY FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED SIX MONTHS ENDED
APRIL 30, PERIOD ENDED APRIL 30, PERIOD ENDED
1998'D' OCTOBER 31, 1997* 1998'D' OCTOBER 31, 1997*
---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Shares sold............................. $ 165,203,822 $ 152,516,396 $ 94,487,011 $ 155,268,954
Shares issued through reinvestment of
dividends............................. 718,240 522,240 878,066 689,953
---------------- ----------------- ---------------- -----------------
165,922,062 153,038,636 95,365,077 155,958,907
---------------- ----------------- ---------------- -----------------
Shares redeemed......................... (139,782,200) (114,357,281) (94,422,135) (120,784,823)
---------------- ----------------- ---------------- -----------------
Net increase............................ $ 26,139,862 $ 38,681,355 $ 942,942 $ 35,174,084
---------------- ----------------- ---------------- -----------------
---------------- ----------------- ---------------- -----------------
</TABLE>
'D' Unaudited
* Commencement of operations was February 24, 1997.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
The table below sets forth financial data for a share of capital stock
outstanding throughout each period presented. This information has been derived
from information provided in the financial statements.
<TABLE>
<CAPTION>
U.S. GOVERNMENT
MUNICIPAL MONEY FUND MONEY FUND
------------------------------------------- ----------------
SIX MONTHS ENDED PERIOD ENDED OCTOBER 31, SIX MONTHS ENDED
APRIL 30, 1998* 1997'D' APRIL 30, 1998*
---------------- ------------------------ ----------------
<S> <C> <C> <C>
Net asset value, beginning of period............. $ 1.00 $ 1.00 $ 1.00
Net investment income............................ 0.013 0.020 0.023
Dividends from net investment income............. (0.013) (0.020) (0.023)
-------- -------- --------
Net asset value, end of period................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
-------- -------- --------
Total return'D'D'(1)............................. 1.96% 2.90% 3.42%
Ratio of expenses to average net assets(1)(2).... 0.90% 0.90% 0.90%
Ratio of net investment income to average net
assets(1)(2)................................... 2.68% 2.87% 4.72%
Net assets, end of period (000's omitted)........ $ 64,821 $ 38,681 $ 36,117
<CAPTION>
PERIOD ENDED OCTOBER 31,
1997'D'
------------------------
<S> <<C>
Net asset value, beginning of period............. $ 1.00
Net investment income............................ 0.031
Dividends from net investment income............. (0.031)
--------
Net asset value, end of period................... $ 1.00
--------
--------
Total return'D'D'(1)............................. 4.68%
Ratio of expenses to average net assets(1)(2).... 0.90%
Ratio of net investment income to average net
assets(1)(2)................................... 4.65%
Net assets, end of period (000's omitted)........ $ 35,174
</TABLE>
* Unaudited
'D' Commencement of operations was February 24, 1997.
'D'D' 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.
(1) Annualized
(2) Net of voluntary assumption by Advisor of expenses, expressed as a
percentage of average net assets as follows: Municipal Money Fund, .34%
(annualized) for the six months ended 04/30/98 and .40% (annualized) for
the period ended 10/31/97; and U.S. Government Money Fund, .51%
(annualized) for the six months ended 04/30/98 and .45% (annualized) for
the period ended 10/31/97.
<PAGE>
WINTHROP MONEY FUNDS
(800) 225-8011
TRUSTEES
G. MOFFETT COCHRAN ROBERT E. FISCHER
WILMOT H. KIDD, III MARTIN JAFFE
JOHN W. WALLER, III
OFFICERS
G. MOFFETT COCHRAN, Chairman and President
JAMES A. ENGLE, Vice President
MARTIN JAFFE, Vice President, Secretary and Treasurer
BRIAN A. KAMMERER, Vice President
INVESTMENT ADVISER
DLJ INVESTMENT MANAGEMENT CORP.
277 Park Avenue, New York, NY 10172
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
FIRST DATA INVESTOR SERVICES GROUP, INC.
P.O. Box 61503 (3200 Horizon Drive)
King of Prussia, PA 19406
DISTRIBUTION
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.
WMF-2 6/98
[LOGO]
WINTHROP MUNICIPAL MONEY FUND
WINTHROP U.S. GOVERNMENT MONEY FUND
APRIL 30, 1998
SEMI-ANNUAL
REPORT
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as............................... 'D'
The double dagger symbol shall be expressed as........................ 'DD'
