Semi-Annual Report
[LOGO] DLJ WINTHROP FUNDS
[GRAPHIC OMITTED]
Leadership through
Experience
DLJ Winthrop
International Equity Fund
DLJ Winthrop
Developing Markets Fund
April 30, 1999
<PAGE>
Dear Shareholders:
The returns of the foreign markets have improved over the past six months as
there has been a significant change in the environment since October of last
year. At that time recession was affecting Japan, Asia was deteriorating and
commodity prices were very low. The Long Term Capital Management problem had
just broken and the Russian economy was about to collapse. Fears of global
deflation were influencing investor decisions. Since then optimism has returned,
Central bankers have managed to avoid the continued decline by cutting interest
rates, raw material prices have stabilized, and leading economic indicators seem
to be reflecting a turnaround. We strongly believe that the Opportunity Funds
are well placed to take advantage of this recovery.
DLJ WINTHROP DEVELOPING MARKETS FUND
The total return of the DLJ Winthrop Developing Markets Fund for the six month
period ending April 30, 1999 amounted to +35.33% (Class A shares) and +34.91%
(Class B shares) vs. +34.87% for the Fund's benchmark, the MSCI Emerging Markets
Free Index.
After a tough summer in 1998 with the collapse of the Russian economy following
the financial crisis in Asia, the developing countries began to stabilize during
the last quarter of 1998. The first countries to enter the crisis (Thailand and
South Korea) were the first to recover sharply. During the first quarter of
1999, the Latin American economies declined leading to the devaluation of the
Brazilian currency which surprised many investors, and weighed heavily on the
rest of the region. However, during the month of March, markets seemed to calm
down. The recovery in Asia was confirmed by good company earning forecasts,
moreover, the Brazilian devaluation did not cause hyperinflation as many had
feared and Eastern European countries experienced less impact than anticipated
following the Russian collapse. Despite concerns related to events in Kosovo,
with the rise of the market index, it appears that the developing markets global
crisis has come to an end.
Today, we are decreasing our overweight position in Latin America and
re-weighting selected countries in Asia. We have reinvested in Thai financial
stocks and are reducing our Argentinian holdings.
WINTHROP INTERNATIONAL EQUITY FUND
The total return of the DLJ Winthrop International Equity Fund for the six
months ending April 30, 1999 amounted to +14.19% (Class A shares) and +13.76%
(Class B shares) vs. +15.44 for the Fund's benchmark, the MSCI EAFE Index.
The world wide rate cuts by central banks during the final quarter of 1998
triggered a sharp recovery of equity markets. In addition, the launch of the
Euro currency in January pushed European markets even higher during the first
week of the year. Overall, the economic picture has greatly improved.
The Japanese market has performed well over the period, gaining almost 30% in
local currency and 26.5% in dollars. After a long haul, it appears that Japan is
crawling out of recession and implementing profound changes which we believe
should lead to a more efficient economy and favorably impact international stock
markets. We currently overweight technology, telecoms and services.
Asia has shown some surprising improvements as well. The region is undergoing a
rapid recovery supported by intelligent fiscal and monetary policy decisions on
the part of most governments. Trade and travel within Asia is recovering and
many economies are now running current account surpluses, which means that risk
premiums and local interest rates should fall.
The Fund remained slightly overweighted in European stocks during most of the
period. During the past two months we have increased our position in Japanese
stocks from an underweight to a neutral position. Asia remains underweighted as
a region. Within Asia we maintain heavier weightings in Hong Kong and Singapore
versus Australia and New Zealand.
Thank you for your continued support and have an enjoyable summer.
Sincerely,
/s/ G. Moffett Cochran
G. Moffett Cochran
President June, 1999
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS (unaudited)
- --------------------------------------------------------------------------------
DLJ Winthrop International Equity Fund
Asset Allocation by Country April 30, 1999
[The following table was depicted as a pie chart in the printed material.]
Finland 1.0
Singapore 0.6
Portugal 0.6
Denmark 0.5
Belgium 0.3
Japan 24.2
United Kindom 22.2
France 9.4
Germany 8.3
Netherlands 7.8
Switzerland 7.7
Italy 5.6
Cash & Other Assets/Liabilities 3.6
Sweden 1.9
Spain 2.6
Hong Kong 2.6
Australia 1.1
Ten Largest Holdings April 30, 1999
<TABLE>
<CAPTION>
Percent of
Country US $ Value Net Assets
-------------- ---------- ----------
<S> <C> <C> <C>
Nippon Telegraph & Telephone Co. Ltd. ... Japan $1,502,999 2.9%
BP Amoco Plc ............................ United Kingdom 994,628 2.0
Royal Dutch Petroleum Co. ............... Netherlands 957,758 1.9
NTT Mobile Communication Network, Inc. .. Japan 938,327 1.8
Bank of Tokyo-Mitsubishi Ltd. ........... Japan 900,476 1.8
Mannesmann AG ........................... Germany 790,415 1.6
Roche Holding AG-Genusscheine
(PC) Shares .......................... Switzerland 777,719 1.5
Smithkline Beecham Plc .................. United Kingdom 681,233 1.3
British Telecommunications Plc .......... United Kingdom 680,903 1.3
Sumitomo Bank Ltd. ...................... Japan 676,936 1.3
---------- ----
$8,901,394 17.4%
========== ====
</TABLE>
Investment Results For the Periods Ended April 30, 1999
Average Annual Total Return
----------------------------------------
DLJ Winthrop International
Equity Fund
--------------------------
Without With MSCI EAFE
Load Load INDEX
------- ---- ---------
Class A:
Six Months ................... 14.19% 7.62% 15.44%
1 year ....................... 6.92 0.77 9.81
From inception 9/13/95 ....... 9.96 8.18 10.90
Class B:
Six Months ................... 13.76 9.76 15.44
1 year ....................... 6.15 2.15 9.81
From inception 9/13/95 ....... 9.15 8.93 10.90
The performance data quoted represents past performance, which is no indication
of future performance. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. No adjustment has been made for any income taxes payable by
shareholders on dividends or capital gains. Class A returns shown above are
computed with and without the imposition of the maximum 5.75% front-end sales
load. Class B shares which, instead of a front-end sales load, are subject to a
contingent deferred sales charge (CDSC) ranging from 4% during the first year to
0% after 4 years. Accordingly, returns on Class B shares will differ from those
of Class A shares and are referenced in the table above with and without the
imposition of the applicable CDSC. Prior to April 30, 1999, Class D shares were
not offered. Accordingly, no performance data is available.
The MSCI EAFE Index is an unmanaged index composed of a sample of companies
representative of the market structure of European and Pacific Basin countries.
The index is the property of Morgan Stanley & Co. Incorporated. The index does
not take into account charges, fees and other expenses. Further information
relating to Fund performance, including expense reimbursements, if applicable,
is contained in the Financial Highlights section of the Prospectus and elsewhere
in this report.
- --------------------------------------------------------------------------------
<PAGE>
OPPORTUNITY FUND HIGHLIGHTS (unaudited)
- --------------------------------------------------------------------------------
DLJ Winthrop Developing Markets Fund
Asset Allocation by Country April 30, 1999
[The following table was depicted as a pie chart in the printed material.]
Philippines 1.1
China 1.0
Poland 0.5
Mexico 16.9
Brazil 14.4
Argentina 12.6
South Africa 8.9
South Korea 8.7
Greece 6.8
Taiwan 6.4
Thailand 5.8
India 3.9
Chile 3.0
Czech Republic 2.8
Malaysia 2.5
Hong Kong 1.9
Hungary 1.6
Cash & Other Assets/Liabilities 1.4
Ten Largest Holdings April 30, 1999
<TABLE>
<CAPTION>
Percent of
Country US $ Value Net Assets
-------------- ---------- ----------
<S> <C> <C> <C>
YPF Sociedad Anonima SA ADR ............. Argentina $ 893,340 5.2%
Telefonos de Mexico SA Cl. 'L' ADR ...... Mexico 771,893 4.5
Cifra SA de CV Ser. 'V' ................. Mexico 622,170 3.6
Telefonica de Argentina SA ADR .......... Argentina 562,419 3.3
De Beers Centenary AG ................... South Africa 465,013 2.7
Grupo Mexico SA de CV Ser. 'B' .......... Mexico 453,477 2.6
Samsung Electronics GDR ................. South Korea 448,600 2.6
Pohang Iron ADR ......................... South Korea 402,885 2.3
Kimberly-Clark de Mexico
SA de CV Cl. 'A' ..................... Mexico 400,260 2.3
Korea Electrical Power ADR .............. South Korea 370,557 2.2
---------- ----
$5,390,614 31.3%
========== ====
</TABLE>
Investment Results For the Periods Ended April 30, 1999
Average Annual Total Return
---------------------------------------
DLJ Winthrop Developing
Markets Fund MSCI
----------------------- EMERGING
Without With MARKETS
Load Load FREE INDEX
------- ---- ----------
Class A:
Six Months ................. 35.33% 27.55% 34.87%
1 year ..................... (4.14) (9.66) (10.19)
From inception 9/13/95 ..... (0.87) (2.48) (4.10)
Class B:
Six Months ................. 34.91 30.91 34.87
1 year ..................... (4.86) (8.67) (10.19)
From inception 9/13/95 ..... (1.65) (1.92) (4.10)
The performance data quoted represents past performance, which is no indication
of future performance. Investment return and principal value will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost. No adjustment has been made for any income taxes payable by
shareholders on dividends or capital gains. Class A returns shown above are
computed with and without the imposition of the maximum 5.75% front-end sales
load. Class B shares which, instead of a front-end sales load, are subject to a
contingent deferred sales charge (CDSC) ranging from 4% during the first year to
0% after 4 years. Accordingly, returns on Class B shares will differ from those
of Class A shares and are referenced in the table above with and without the
imposition of the applicable CDSC.
The MSCI Emerging Markets Free Index is an unmanaged index composed of a sample
of companies representative of the market structure of developing countries
worldwide. The index is the property of Morgan Stanley & Co. Incorporated. The
index does not take into account charges, fees and other expenses. Further
information relating to Fund performance, including expense reimbursements, if
applicable, is contained in the Financial Highlights section of the Prospectus
and elsewhere in this report.
- --------------------------------------------------------------------------------
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Investments April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
DLJ Winthrop International Equity Fund
COMMON STOCKS--96.4%
Shares U.S. $ Value
---------- ------------
AUSTRALIA--1. 1%
National Australia Bank Ltd. ............. 4,410 $ 85,987
Normandy Mining Ltd. ..................... 46,400 40,285
Qantas Airways Ltd. ...................... 42,100 115,793
Telstra Corporation Ltd. ................. 36,150 196,461
The News Corporation Ltd. ................ 9,810 82,337
Woodside Petroleum Ltd. .................. 8,100 55,294
-----------
576,157
-----------
BELGIUM--0.3%
Belgiqium Dexia .......................... 1,130 174,063
-----------
DENMARK--0.5%
ISS International Service System A/S ..... 4,230 248,907
-----------
FINLAND--1.0%
Oy Nokia (Ab) Ser 'A' .................... 6,530 503,971
-----------
FRANCE--9.4%
Accor SA ................................. 860 227,005
Air Liquide SA ........................... 1,960 302,744
Alcatel Asthom SA ........................ 1,690 207,759
Carrefour SA ............................. 270 214,236
Castorama Dubois Investisse .............. 920 220,456
Danone Groupe ............................ 1,567 419,427
France Telecom SA* ....................... 4,762 385,153
Generale Des Eaux ........................ 1,570 367,244
Groupe GTM ............................... 1,830 174,729
Lafarge SA ............................... 2,550 248,196
Legrand SA ............................... 878 209,928
L'Oreal .................................. 280 179,514
Pernod Ricard ............................ 3,480 235,075
Pinault - Printemps - Redoute SA ......... 1,550 257,453
PSA Peugeot Citroen SA ................... 1,530 254,131
Suez Lyonnaise des Eaux .................. 2,190 373,024
Total SA ................................. 3,770 516,908
-----------
4,792,982
-----------
GERMANY--8.3%
Allianz AG ............................... 1,379 440,156
BASF AG .................................. 6,170 269,589
Bayerische Motoren Werke AG .............. 110 78,088
Bayerische Motoren Werke AG - New* ....... 186 129,776
Bayerische Vereinsbank AG ................ 6,070 401,361
DaimlerChrysler AG ....................... 2,950 288,845
Dresdner Bank AG ......................... 6,990 301,720
Henkel KGaA AG ........................... 2,380 189,852
Hoechst AG ............................... 4,420 202,478
Mannesmann AG ............................ 6,030 790,415
SAP AG ................................... 820 303,633
Veba AG .................................. 9,680 529,971
Viag AG .................................. 620 313,207
-----------
4,239,091
-----------
HONG KONG--2.6%
Cheung Kong (Holdings) Ltd. .............. 24,000 218,317
China Telecom (Hong Kong) Ltd. ........... 42,000 95,920
Hang Seng Bank Ltd. ...................... 15,530 183,850
Hong Kong & China Gas
Company Ltd. ........................... 1,350 225
Hong Kong & China Gas Company
Ltd. Warrants 09/30/99* ................ 35,926 50,527
Hutchison Whampoa Ltd. ................... 8,300 74,431
New World Development Co. Ltd. ........... 38,000 94,139
Sun Hung Kai Properties Ltd. ............. 33,000 289,541
Swire Pacific Ltd. ....................... 40,000 224,510
Wharf (Holdings) Ltd. .................... 40,320 98,847
Wharf (Holdings) Ltd.
Warrants 12/31/99* ..................... 1,900 962
-----------
1,331,269
-----------
ITALY--5.6%
Alleanza Assicurazioni SPA ............... 20,392 244,863
Autogrill SPA ............................ 27,740 254,738
Banca Di Roma SPA ........................ 131,310 216,715
Ente Nazionale Idrocarburi SPA ........... 49,730 327,773
Instituto Bancario San Paolo
di Torino SPA .......................... 27,690 415,985
Seat Pagine Gialle SPA ................... 400,720 330,252
Telecom Italia SPA ....................... 101,340 545,714
Telecom Italia Mobile SPA ................ 69,290 232,379
Unicredito Italiano SPA .................. 55,570 282,194
-----------
2,850,613
-----------
JAPAN--24.2%
Bank of Tokyo-Mitsubishi Ltd. ............ 61,000 900,476
Bridgestone Corp. Ltd. ................... 16,000 428,950
Fuji Photo Film Co. Ltd. ................. 11,000 415,629
Fujitsu Ltd. ............................. 20,000 342,657
Fujitsu Support and Service Inc. Ltd. .... 4,000 489,271
Hitachi Ltd. ............................. 40,000 292,222
Ito - Yokado Co. Ltd. .................... 5,000 307,051
Japan Airlines Co. Ltd. .................. 85,000 267,758
Mitsubishi Chemical
Corporation Ltd. ....................... 130,000 401,889
Mitsui Re Fudosan Ltd. ................... 69,000 635,884
Nippon Express Co. Ltd. .................. 55,000 359,413
Nippon Telegraph & Telephone Co. Ltd. .... 138 1,502,999
NTT Data Corp. Ltd. ...................... 36 285,017
NTT Mobile Communication
Network, Inc. .......................... 16 938,327
Oji Paper Co. Ltd. ....................... 60,000 359,413
Shin-Etsu Chemical Co. Ltd. .............. 11,000 350,197
Shiseido Co. Ltd. ........................ 21,000 330,760
Sony Corp. ............................... 4,900 457,728
Sumitomo Bank Ltd. ....................... 50,000 676,936
Sumitomo Chemical Co. Ltd. ............... 67,000 299,184
Sumitomo Metal Industries Ltd. ........... 150,000 199,813
Takeda Chemical Industries Ltd. .......... 8,000 347,851
TDK Corp. Ltd. ........................... 4,000 302,611
Tokyo Electron Ltd. ...................... 5,000 284,849
Tokyo Seimitsu Co. Ltd. .................. 8,000 443,025
Toshiba Corp. ............................ 55,000 368,628
Toyota Motor Corp. Ltd. .................. 12,000 340,814
-----------
12,329,352
-----------
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Investments April 30, 1999 (continued)
- --------------------------------------------------------------------------------
DLJ Winthrop International Equity Fund
Shares U.S. $ Value
---------- ------------
NETHERLANDS--7.8%
Ahold NV ................................. 13,770 $ 512,066
Akzo Nobel NV ............................ 6,250 282,672
Heineken Prov NV ......................... 8,200 412,073
ING Groep NV ............................. 7,411 457,101
Philips Electronics NV ................... 2,790 240,563
Royal Dutch Petroleum Co. ................ 16,430 957,758
STMicroelectronics NV -
NY Shares* ............................. 2,500 255,000
Unilever NV-CVA .......................... 7,140 489,486
Wolters Kluwer NV ........................ 8,480 369,624
-----------
3,976,343
-----------
PORTUGAL--0.6%
Portugal Telecom SA ...................... 7,010 292,571
-----------
SINGAPORE--0.6%
Fraser & Neave Ltd. ...................... 15,100 66,873
Singapore Airlines Ltd. .................. 10,900 100,408
Total Acces Communication
Public Co. Ltd. ........................ 44,000 149,600
-----------
316,881
-----------
SPAIN--2.6%
Agroman Empresa Constuctora SA ........... 22,070 231,156
Banco Santander Central Hispano SA ....... 19,248 418,673
Endesa SA ................................ 16,420 365,499
Telefonica de Espana SA .................. 6,599 315,770
-----------
1,331,098
-----------
SWEDEN--1.9%
Electrolux AB - B ........................ 11,610 236,043
Nordbanken Holding AB .................... 37,920 238,951
Telefonaktiebolaget LM Ericsson SA ....... 13,230 348,415
Volvo AB - B ............................. 6,050 160,048
-----------
983,457
-----------
SWITZERLAND--7.7%
Alusuisse Lonza Group AG 210 251,732
Credit Suisse Group - Reg. Shares 1,380 274,196
Holderbank Financiere Glarus AG 150 181,188
Nestle SA - Reg. Shares .................. 350 648,986
Novartis A - Reg. Shares ................. 380 557,351
Roche Holding AG - Genusscheine
(PC) Shares ............................ 66 777,719
Schindler Holding AG ..................... 120 176,951
UBS AG - Reg. Shares ..................... 1,818 618,557
Zurich Allied AG ......................... 690 445,512
-----------
3,932,192
-----------
UNITED KINGDOM--22.2%
AstraZeneca Group Plc .................... 14,745 576,175
BAA PLC .................................. 24,650 257,978
Bank of Ireland Plc ...................... 9,290 186,001
Bank of Scotland Plc ..................... 31,100 465,188
Barclays Plc ............................. 16,340 517,236
Boots Company Plc ........................ 24,940 330,081
BP Amoco Plc ............................. 52,440 994,628
British Aerospace Plc .................... 45,980 344,436
British Telecommunications Plc ........... 40,546 680,903
Cable and Wireless
Communications Plc* .................... 19,070 217,696
CMG Plc .................................. 6,840 185,240
Compass Group Plc ........................ 37,674 380,635
CRH Plc .................................. 16,390 321,820
Glaxo Wellcome Plc ....................... 21,385 631,483
HSBC Holdings Plc ........................ 13,100 498,411
Irish Life Plc ........................... 23,860 218,977
Lloyds TSB Group Plc ..................... 23,962 386,005
Misys Plc ................................ 52,470 492,952
PowerGen Plc ............................. 17,460 191,726
Prudential Corporation Plc ............... 40,972 585,475
Railtrack Group Plc ...................... 12,180 254,355
Reed International Plc ................... 38,080 346,110
Scottish and Southern Energy Plc ......... 27,340 255,757
Smithkline Beecham Plc ................... 51,472 681,233
Tesco Plc ................................ 131,490 391,138
Unilever Plc ............................. 25,790 228,800
Vodafone Group Plc ....................... 36,935 676,758
-----------
11,297,197
-----------
TOTAL INVESTMENTS--96.4%
(cost $39,541,815) ..................... 49,176,144
-----------
Cash and Other Assets
Net of Liabilities--3.6% ............... 1,807,536
-----------
NET ASSETS--100% ......................... $50,983,680
===========
* Non-income producing
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Investments April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
DLJ Winthrop Developing Markets Fund
COMMON STOCKS--84.2%
Shares U.S. $ Value
---------- ------------
ARGENTINA--12.6%
Banco Frances SA ......................... 4,600 $ 35,663
Banco de Galicia y Buenos Aires SA ....... 13,911 73,756
IRSA Inversiones ......................... 61,987 198,431
Perez Companc SA ......................... 53,311 293,320
Siderca SA ............................... 69,098 110,598
Telefonica de Argentina SA ADR ........... 15,048 562,419
YPF Sociedad Anonima SA ADR .............. 21,270 893,340
-----------
2,167,527
-----------
CHILE--3.0%
Cia Cervecerias Unidas SA ADR ............ 3,760 92,355
Cia de Telecomunicaciones ................
de Chile SA ADR ........................ 7,963 210,522
Enersis SA ADR ........................... 2,273 43,613
Gener SA ................................. 2,075 41,500
Madeco GDR ............................... 2,308 21,349
Sociedad Quimica y Minera
De Chile SA ADR ........................ 3,099 114,276
-----------
523,615
-----------
CHINA--1.0%
Beijing Yanhua Petrochemical
Company Ltd.* .......................... 12,460 92,671
Huaneng Power International, Inc.* ....... 5,960 80,088
-----------
172,759
-----------
CZECH REPUBLIC--2.8%
CEZ AS ................................... 34,331 48,519
Inzenyrske Prumyslove Stavby* ............ 2,850 6,411
Komercni Banka AS ........................ 1,240 15,235
Skoda Plzen AS* .......................... 3,851 15,172
SPT Telecom AS* .......................... 20,840 303,144
Tabak AS ................................. 469 97,667
-----------
486,148
-----------
GREECE--6.8%
Aktor SA ................................. 1,170 22,815
Alpha Credit Bank SA ..................... 2,160 154,592
Attica Enterprises ....................... 8,010 67,751
Elais SA ................................. 1,000 20,853
Ergo Bank SA ............................. 517 45,287
Hellenic Bottling Company SA ............. 3,660 108,589
Hellas Can Packaging SA .................. 730 21,088
National Bank of Greece .................. 1,593 37,048
Hellenic Telecommunication
Organization SA ........................ 3,944 281,310
Panafon Hellenic Telecom SA* ............. 11,290 301,541
Silver & Baryte Ores Mining SA ........... 620 19,292
Titan Cement Company SA .................. 1,210 93,685
-----------
1,173,851
-----------
HONG KONG--1.9%
Beijing Datang Power Generation
Co. Ltd.* .............................. 243,560 73,066
China Eastern Airlines Ltd.* ............. 1,012,240 82,283
Guangdong Kelon Electric Holdings
Co. Ltd. ............................... 128,690 116,233
Tsingtao, Brewery Co Ltd.* ............... 360,000 52,489
-----------
324,071
-----------
HUNGARY--1.6%
Gedeon Richter Rt. ....................... 460 17,193
Matav Rt. ADR ............................ 3,900 109,687
Mol Magyar Olaj GDR ...................... 7,000 157,325
-----------
284,205
-----------
INDIA--3.9%
Crompton Greaves Ltd. GDR ................ 34,200 29,070
Eih Limited GDR* ......................... 8,400 40,320
Grasim Industries Ltd. GDR ............... 6,900 23,460
Indian Aluminum Co. Ltd. GDR* ............ 32,500 47,125
Mahindra & Mahindra Ltd. GDR* ............ 9,100 49,140
Ranbaxy Laboratories GDR ................. 13,200 201,300
State Bank of India GDR .................. 14,200 126,735
Tata Engineering and Locomotive Co.
Ltd. GDR ............................... 21,500 70,412
Videsh Sanchar GDR* ...................... 6,300 75,443
-----------
663,005
-----------
MALAYSIA--2.5%
Ekran Bhd Warrants* ...................... 15,000 1,563
Malayan Banking Bhd ...................... 27,100 57,625
Petronas Gas Bhd ......................... 37,000 68,938
Rothmans of Pall Mall Bhd ................ 8,000 46,317
Telecom Malaysia Bhd ..................... 61,500 145,014
Tenaga Nasional Bhd ...................... 30,400 51,521
YTL Corporation Bhd ...................... 40,000 54,738
-----------
425,716
-----------
MEXICO--16.9%
Cifra SA de CV Ser. 'V' .................. 309,402 622,170
Grupo Carso SA de CV Ser. 'A1'* .......... 51,810 262,422
Grupo Elektra SA de CV ................... 54,180 39,874
Grupo Industrial Bimbo SA de CV .......... 75,636 162,900
Grupo Mexico SA de CV Ser. 'B' ........... 115,110 453,477
Grupo Modelo SA de CV C1 'C' ............. 30,190 81,684
Kimberly-Clark de Mexico SA
de CV C1 'A' ........................... 99,150 400,260
Savia SA de CV* .......................... 1,000 23,062
Telefonos de Mexico SA C1 'L' ADR ........ 10,190 771,893
Tubos de Acero de Mexico SA* ............. 6,500 69,645
Vitro SA C1 'A' .......................... 9,750 21,685
-----------
2,909,072
-----------
PHILIPPINES--1.1%
Manila Electric Company C1 'B' ........... 27,680 105,556
SM Prime Holdings ........................ 7,790 88,417
-----------
193,973
-----------
POLAND--0.5%
Telekomunikacja Polska SA ................ 15,190 93,402
-----------
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Investments April 30, 1999 (continued)
- --------------------------------------------------------------------------------
DLJ Winthrop Developing Markets Fund
Shares U.S. $ Value
---------- ------------
SOUTH AFRICA--8.9%
Anglo American Corp. ..................... 2,900 $ 149,363
Anglogold Ltd. ........................... 601 28,177
Barlow Ltd. .............................. 9,500 56,804
De Beers Centenary AG .................... 18,675 465,013
Edgars Stores Ltd. ....................... 903 4,584
Liberty Life Association of
Africa Ltd. ............................ 4,900 70,397
Metro Cash & Carry Ltd. .................. 162,300 135,597
Nedcor Ltd. .............................. 5,500 119,833
Pick 'N Pay Stores Ltd. .................. 40,800 61,023
Rembrandt Group Ltd. ..................... 17,700 134,105
Sasol Ltd. ............................... 20,000 140,883
South African Breweries Ltd. ............. 20,540 169,250
-----------
1,535,029
-----------
SOUTH KOREA--8.7%
Korea Electrical Power ADR ............... 22,458 370,557
Pohang Iron ADR .......................... 15,646 402,885
Samsung Electronics GDR .................. 10,512 448,600
SK Telecom Co. Ltd.* ..................... 19,446 269,818
-----------
1,491,860
-----------
TAIWAN--6.4%
Cathay Construction Corp. ................ 144,810 89,014
Cathay Life Insurance Co. Ltd. ........... 23,140 82,797
Evergreen Marine Corp. ................... 59,180 76,556
Far Eastern Textile Ltd. ................. 143,272 192,349
Formosa Chemicals & Fibre Corp. .......... 50,174 59,535
Hon Hai Precision Industry* .............. 52,590 286,278
Hua Nan Commercial Bank .................. 31,315 52,672
International Commercial Bank
of China ............................... 57,910 72,611
Microtek International, Inc.* ............ 72,980 50,887
Pacific Electrical Wire
& Cable Corp.* ........................ 122,792 84,868
U-Ming Marine Transport Corp. ............ 98,275 50,191
Yang Ming Marine Transport ............... 4,801 3,407
-----------
1,101,165
-----------
THAILAND--5.6%
Bangkok Bank Public Company Ltd. ......... 95,100 284,424
PTT Exploration & Production
Public Co. Ltd.* ....................... 13,100 120,716
Siam Cement Public Company Ltd. .......... 7,500 138,794
TelecomAsia Corporation
Public Co. Ltd. ........................ 165,900 143,041
Thai Farmers Bank Public
Company Ltd. ........................... 97,600 270,863
-----------
957,838
-----------
Total Common Stocks
(cost $13,357,851) ..................... 14,503,236
-----------
PREFERRED STOCKS--14.4%
BRAZIL--14.4%
Banco Bredesco SA Prf .................... 17,386,080 42,188
Banco Itau SA Prf ........................ 313,000 166,029
Centrais Electricas Brasileiras SA
Prf Cl 'B' (Electobras) ................ 17,853,000 362,664
Centrais Geradoras do Sul do Brasil
SA Prf (Gerasul)* ...................... 24,871,000 20,389
Companhia Brasiliera de Petroleo
Ipiranga SA Prf ........................ 25,123,000 168,095
Companhia Siderurgica Nacional
SA Prf ................................. 6,350,000 136,266
Companhia Vale do Rio Doce SA
Prf Cvrt ............................... 17,238 331,467
Embratel Participacoes SA Prf ............ 10,582,000 172,288
Lojas Americanas SA Prf .................. 54,364,00 242,496
Petroleo Brasileiro SA Prf (Petrobras) ... 683,000 97,578
Telecomunicacoes Brasileiras SA
Prf (Telebras) ......................... 13,744,000 28,168
Tele Centro Sul Participacoes SA Prf ..... 10,582,000 109,713
Tele Norte Leste Participacoes SA Prf .... 10,582,000 178,603
Tele Sudeste Celular Participacoes
SA Prf ................................. 10,582,000 57,727
Telesp Celular Participacoes SA Prf* ..... 10,582,000 107,162
Telesp Participacoes SA PrP* ............. 10,582,000 263,439
-----------
Total Preferred Stocks
(cost $2,991,639) ...................... 2,484,272
-----------
TOTAL INVESTMENTS--98.6%
(cost $16,349,490) ..................... 16,987,508
-----------
Cash and Other Assets
Net of Liabilities--1.4% ............... 233,319
-----------
NET ASSETS--100% ......................... $17,220,827
===========
* Non-income producing
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Assets and Liabilities April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Developing
Equity Fund Markets Fund
------------- ------------
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $39,541,815 and $16,349,490, respectively) ........ $ 49,176,144 $ 16,987,508
Cash, at value (cost $1,762,111 and $214,197, respectively) 1,754,275 214,342
Receivable for investment securities sold ................. 468,249 --
Receivable for capital stock sold ......................... 31,975 121,168
Dividends and interest receivable ......................... 193,584 51,905
Deferred organization costs (Note A) ...................... 25,273 25,273
------------ ------------
Total assets .............................................. 51,649,500 17,400,196
------------ ------------
LIABILITIES:
Payable to investment advisor ............................. 70,494 20,777
Payable to distributor .................................... 14,331 4,799
Payable for investment securities purchased ............... 286,922 --
Payable for capital stock redeemed ........................ 148,776 97,806
Accrued expenses and other liabilities .................... 145,297 55,987
------------ ------------
Total liabilities ......................................... 665,820 179,369
------------ ------------
NET ASSETS .................................................... $ 50,983,680 $ 17,220,827
============ ============
NET ASSETS CONSIST OF:
Capital paid-in ........................................... $ 37,322,571 $ 22,179,978
Accumulated undistributed net investment income (loss) .... (187,604) 29,839
Accumulated net realized gain (loss) on investments and
foreign currency transactions ........................... 4,225,679 (5,632,638)
Net unrealized appreciation of investments and foreign
currency denominated assets and liabilities ............. 9,623,034 643,648
------------ ------------
$ 50,983,680 $ 17,220,827
============ ============
CLASS A SHARES:
Net assets ................................................ $ 44,963,991 $ 14,616,619
------------ ------------
Shares outstanding ........................................ 3,425,844 1,517,555
------------ ------------
Net asset value and redemption value per share ............ $13.12 $ 9.63
====== ======
Maximum offering price per share (net asset value plus
sales charge of 5.75% of offering price) ................ $13.93 $10.22
====== ======
CLASS B SHARES:
Net assets ................................................ $ 6,019,689 $ 2,604,208
------------ ------------
Shares outstanding ........................................ 469,410 277,436
------------ ------------
Net asset value and offering price per share .............. $12.82 $9.39
====== =====
</TABLE>
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Statement of Operations for the period ended April 30, 1999*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Developing
Equity Fund Markets Fund
------------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividend income ........................................................ $ 407,399 $ 266,240
Interest income ........................................................ 26,906 9,102
----------- -----------
434,305 275,342
Less withholding tax on foreign source dividends ................... (52,797) (23,672)
----------- -----------
Total investment income ............................................ 381,508 251,670
----------- -----------
EXPENSES:
Investment advisory fees (Note B) ...................................... 317,213 99,548
Distribution fees--Class A (Note B) .................................... 55,607 16,965
Distribution fees--Class B (Note B) .................................... 31,342 11,778
Custodian fees ......................................................... 49,000 39,000
Transfer agent fees .................................................... 33,000 26,000
Registration fees ...................................................... 27,000 7,100
Legal fees ............................................................. 20,000 8,000
Auditing fees .......................................................... 17,000 6,000
Printing fees .......................................................... 15,000 6,000
Trustees' fees ......................................................... 8,000 1,600
Miscellaneous .......................................................... 3,525 1,648
Amortization of organization costs (Note A) ............................ 11,267 11,267
----------- -----------
587,954 234,906
Less fees waived/reimbursed by investment advisor
and subadvisor (Note B) ......................................... (18,842) (54,850)
----------- -----------
Net expenses ....................................................... 569,112 180,056
----------- -----------
NET INVESTMENT INCOME (LOSS) ............................................... (187,604) 71,614
----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS--Note C:
Net realized gain (loss) on investments ................................ 4,488,412 (915,777)
Net realized loss on foreign currency transactions ..................... (88,890) (13,186)
Net change in unrealized appreciation on investments ................... 2,437,486 5,176,914
Net change in unrealized appreciation on translation of
foreign currency denominated assets and liabilities .................. (19,773) 7,383
----------- -----------
Net realized and unrealized gain on investments and foreign currency
transactions ......................................................... 6,817,235 4,255,334
----------- -----------
Contribution from subadvisor - Note B: ................................. -- 461,495
----------- -----------
INCREASE IN NET ASSETS FROM OPERATIONS ..................................... $ 6,629,631 $ 4,788,443
=========== ===========
</TABLE>
*Unaudited
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund Developing Markets Fund
---------------------------- ----------------------------
Six Months Year Ended Six Months Year Ended
Ended 04/30/99* 10/31/98 Ended 04/30/99* 10/31/98
--------------- ----------- ---------------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss) .................... $ (187,604) $ (320,362) $ 71,614 $ 28,815
Net realized gain (loss) on investments and
foreign currency transactions ................. 4,399,522 2,822,979 (928,963) (1,411,734)
Net change in unrealized appreciation/
depreciation on investments and foreign
currency denominated assets and liabilities ... 2,417,713 1,614,194 5,184,297 (5,517,894)
Contribution from subadvisor .................... -- -- 461,495 --
------------ ------------ ------------ ------------
Increase (decrease) in net assets resulting
from operations ............................... 6,629,631 4,116,811 4,788,443 (6,900,813)
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Investment income:
Class A ....................................... -- (212,893) (41,775) --
Class B ....................................... -- -- -- --
Realized gains on investments:
Class A ....................................... (2,412,264) (333,161) -- --
Class B ....................................... (358,183) (51,942) -- --
------------ ------------ ------------ ------------
Total dividends and distributions to shareholders (2,770,447) (597,996) (41,775) --
------------ ------------ ------------ ------------
CAPITAL STOCK TRANSACTIONS--(NET)
Note D .......................................... (3,294,494) (4,236,399) (6,389,018) (8,578,625)
------------ ------------ ------------ ------------
Total increase (decrease) in net assets ........ 564,690 (717,584) (1,642,350) (15,479,438)
NET ASSETS:
Beginning of year ............................... 50,418,990 51,136,574 18,863,177 34,342,615
------------ ------------ ------------ ------------
End of period (including undistributed
net investment income of $29,839 for the
Developing Markets Fund at April 30, 1999) .... $ 50,983,680 $ 50,418,990 $ 17,220,827 $ 18,863,177
============ ============ ============ ============
</TABLE>
* Unaudited
See notes to financial statements.
<PAGE>
DLJ Winthrop Opportunity Funds--
Notes to Financial Statements April 30, 1999 (unaudited)
- --------------------------------------------------------------------------------
Note (A) Significant Accounting Policies. DLJ Winthrop International Funds
("Fund" or "Funds") consists of two portfolios (the "Portfolios"), the DLJ
Winthrop International Equity Fund and the DLJ Winthrop Developing Markets Fund
(together the "International Funds"), each a separate diversified series of the
DLJ Winthrop Opportunity Funds (the "Trust"). In addition, the Trust consists of
the DLJ Winthrop Municipal Money Fund, the DLJ Winthrop U.S. Government Money
Fund and the DLJ Winthrop High Income 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.
The investment objective of the Developing Markets Fund is long-term growth of
capital by investing primarily in common stocks and other equity securities from
developing countries. The International Equity Fund seeks long-term growth of
capital by investing primarily in common stocks and other equity securities from
established markets outside the United States.
Each Portfolio offers multiple 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. In addition, effective May 17, 1999, the DLJ Winthrop
International Equity Fund also offers Class D shares exclusively to employees of
DLJ and its subsidiaries who are eligible to participate in the DLJ 401(k)
Retirement Savings Plan. Each class is identical in all respects except that
Class A and Class B shares bear different distribution service fees and Class D
shares are not subject to any distribution service fees. Each class has
different exchange privileges and only Class B shares have a conversion feature.
Class A and Class B have exclusive voting rights with respect to each class's
distribution plan.
The Funds account separately for the assets, liabilities and operations of each
Portfolio. Expenses directly attributable to each Portfolio are charges to that
Portfolio's operations: expenses which are applicable to all portfolios are
allocated among them on a pro rata basis. 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 asked prices. Securities that are traded over-the-counter, if bid and
asked quotations are available, are valued at the mean between the current
bid and asked prices, or, if quotations are not available, are valued as
determined in good faith by the Board of Trustees of the Fund. Short-term
investments having a maturity of 60 days or less are valued at amortized
cost. Securities and assets for which current market quotations are not
readily available are valued at fair value as determined in good faith by
the Board of Trustees of the Fund.
(2) Foreign Currency Translations: Investment securities and other assets
and liabilities denominated in foreign currencies are translated into U.S.
dollars at the bid prices of such currencies against the U.S. dollar as of
the date of valuation. Purchases and sales of portfolio securities,
commitments under forward foreign currency contracts, income receipts and
expense accruals are translated at the prevailing exchange rate on the
date of each transaction.
The Fund does not isolate that portion of the results of operations
resulting from changes in foreign exchange rates on investments from the
fluctuations arising from changes in market prices of securities held.
Such fluctuations are included with the net realized and unrealized gain
or loss from investments.
<PAGE>
DLJ Winthrop Opportunity Funds--
Notes to Financial Statements April 30, 1999 (continued)
- --------------------------------------------------------------------------------
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, and the difference between
the amounts of dividends, interest, and foreign withholding taxes recorded
on the Fund's books and the U.S. dollar equivalent of the amounts actually
received or paid. Net change in unrealized appreciation on translation of
foreign currency denominated assets and liabilities arises from changes in
the value of assets and liabilities other than investments in securities
at fiscal year end, resulting from changes in exchange rates.
(3) Federal Income Taxes: The Funds intend to be treated as "regulated
investment companies" under Sub-chapter M of the Internal Revenue Code and
to distribute substantially all of their net taxable income. Accordingly,
no provisions for Federal income or excise taxes have been made in the
accompanying financial statements. The Developing Markets Fund has an
unused capital loss carryover of approximately $3,772,000 available for
Federal income tax purposes to be applied against future net securities
profits, if any, realized subsequent to October 31, 1998. If not applied,
approximately $3,185,000 and $587,000 of the carryover expires in fiscal
2005 and 2006, respectively.
(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: Costs incurred with the Fund's
organization are being amortized on a straight-line basis over five years
commencing with the Fund's operation.
Note (B) Advisory and Distribution Services Agreements: Wood, Struthers &
Winthrop Management Corp. (the "Advisor") is a wholly-owned subsidiary of
Donaldson, Lufkin and Jenrette Securities Corporation, which is 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. The Advisor has retained AXA Asset Management
Partenaires as subadvisor to the Funds (the "Subadvisor"). 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.
Through October 31, 1999, the Advisor has agreed to a contractual expense
limitation to reduce 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. In addition, the Subadvisor has
agreed to reimburse the Advisor so that any such reduction will be borne equally
between the Advisor and Subadvisor. After October 31, 1999, the Advisor and
Subadvisor may, in their sole discretion, determine
<PAGE>
DLJ Winthrop Opportunity Funds--
Notes to Financial Statements April 30, 1999 (continued)
- --------------------------------------------------------------------------------
to discontinue this practice with respect to either Fund. As a result of the
waiver, the waived fees amounted to $18,842 and $54,850 for the International
Equity Fund and Developing Markets Fund, respectively, during the six month
period ended April 30, 1999.
The Fund has entered into a Distribution Services Agreement (the "Agreement")
pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class A and
Class B shares with Donaldson, Lufkin & Jenrette Securities Corporation, the
Fund's Distributor. Under the Agreement, each Portfolio will pay a distribution
services fee to the Distributor at an annual rate of up to .25 of 1% of the
average daily net assets attributable to Class A shares and 1% of the average
daily net assets attributable to Class B shares. The fees are accrued daily and
paid monthly. The Agreement provides that the Distributor will use such payments
in their entirety for distribution assistance and promotional activities. The
Agreement also provides that the 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 receives an
attendance fee of $1,000 per audit committee meeting. Attendance fees are
charged to all series of the Trust and are allocated on a pro rata basis.
During the six month period ended April 30, 1999, the Subadvisor reimbursed the
Developing Markets Fund $461,495 for realized and unrealized losses on certain
securities transactions.
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, 1999, aggregated $20,696,264 and
$29,217,311 for the International Equity Fund; and $2,619,516 and $8,484,558 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, 1999, the cost of investments for federal income tax purposes was
substantially the same as the cost for financial reporting purposes. At April
30, 1999, the components of net unrealized appreciation of investments were as
follows:
International Developing
Equity Fund Markets Fund
------------ ------------
Gross appreciation (investments having
an excess of value over cost) .............. $ 10,601,762 $ 3,916,923
Gross depreciation (investments having
an excess of cost over value) .............. (967,433) (3,278,905)
------------ ------------
Net unrealized appreciation of investments ... $ 9,634,329 $ 638,018
============ ============
<PAGE>
DLJ Winthrop Opportunity Funds--
Notes to Financial Statements April 30, 1999 (continued)
- --------------------------------------------------------------------------------
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, 1999* October 31, 1998 April 30, 1999* October 31, 1998
------------------- -------------------- ------------------ --------------------
Shares Amount Shares Amount Shares Amount Shares Amount
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Class A
Shares sold ............... 129,658 $ 1,580,908 139,783 $ 1,702,041 89,723 $ 759,257 192,165 $ 1,656,541
Shares issued through
reinvestment of dividends
and distributions ....... 208,666 2,393,397 48,974 540,052 5,473 40,773 -- --
-------- ----------- -------- ----------- -------- ----------- -------- -----------
338,324 3,974,305 188,757 2,242,093 95,196 800,030 192,165 1,656,541
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares redeemed ........... (541,301) (6,729,989) (440,781) (5,400,186) (869,071) (6,571,634) (987,774) (8,873,605)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net decrease .............. (202,977) ($2,755,684) (252,024) ($3,158,093) (773,875) ($5,771,604) (795,609) ($7,217,064)
======== =========== ======== =========== ======== =========== ======== ===========
Class B
Shares sold ............... 27,435 $ 342,494 139,435 $ 1,763,811 7,236 $ 54,969 66,054 $ 582,468
Shares issued through
reinvestment of dividends
and distributions ....... 31,390 352,824 4,788 51,706 -- -- -- --
-------- ----------- -------- ----------- -------- ----------- -------- -----------
58,825 695,318 144,223 1,815,517 7,236 54,969 66,054 582,468
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Shares redeemed ........... (101,226) (1,234,128) (239,102) (2,893,823) (90,381) (672,383) (233,191) (1,944,029)
-------- ----------- -------- ----------- -------- ----------- -------- -----------
Net decrease .............. (42,401) ($ 538,810) (94,879) ($1,078,306) (83,145) ($ 617,414) (167,137) ($1,361,561)
======== =========== ======== =========== ======== =========== ======== ===========
</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
-----------------------------------------------------------------------
Six Months
Ended April 30, Year Ended October 31,
--------------- -------------------------------------------------------
1999** 1998 1997 1996 1995*
--------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 12.20 $ 11.42 $ 10.38 $ 9.58 $ 10.00
---------- ---------- ---------- ---------- ----------
Net investment loss(1) ................... (0.08) (0.06) (0.07) (0.04) --
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .................. 1.70 0.99 1.11 0.84 (0.42)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
asset value from operations ............ 1.62 0.93 1.04 0.80 (0.42)
---------- ---------- ---------- ---------- ----------
Dividends from net investment income ..... -- (0.06) -- -- --
Distributions from capital gains ......... (0.70) (0.09 -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions ...................... (0.70) (0.15) -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $ 13.12 $ 12.20 $ 11.42 $ 10.38 $ 9.58
========== ========== ========== ========== ==========
Total return(2) .......................... 14.19% 8.20% 10.02% 8.35% (4.20)%
Ratio of expenses to average net assets(4) 2.15% 2.15% 2.15% 2.15% 2.15%(3)
Ratio of net investment
loss to average net assets(4) .......... (0.64)% (0.49)% (0.59)% (0.39)% (0.02)%(3)
Portfolio turnover rate .................. 75.33% 69.66% 73.92% 94.12% 0.00%
Net assets, end of period (000 omitted) .. $ 44,964 $ 44,286 $ 44,316 $ 42,170 $ 28,819
<CAPTION>
International Equity Fund
-----------------------------------------------------------------------
Class B
-----------------------------------------------------------------------
Six Months
Ended April 30, Year Ended October 31,
--------------- -------------------------------------------------------
1999** 1998 1997 1996 1995*
--------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 11.98 $ 11.24 $ 10.29 $ 9.57 $ 10.00
---------- ---------- ---------- ---------- ----------
Net investment loss(1) ................... (0.17) (0.15) (0.15) (0.13) (0.02)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .................. 1.71 0.98 1.10 0.85 (0.41)
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
asset value from operations ............ 1.54 0.83 0.95 0.72 (0.43)
---------- ---------- ---------- ---------- ----------
Dividends from net investment income ..... -- -- -- -- --
Distributions from capital gains ......... (0.70) (0.09) -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions ...................... (0.70) (0.09) -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $ 12.82 $ 11.98 $ 11.24 $ 10.29 $ 9.57
========== ========== ========== ========== ==========
Total return(2) .......................... 13.76% 7.43% 9.23% 7.52% (4.30)%
Ratio of expenses to average net assets(4) 2.90% 2.90% 2.90% 2.90% 2.90%(3)
Ratio of net investment
loss to average net assets(4) .......... (1.41)% (1.24)% (1.32)% (1.25)% (1.77)%(3)
Portfolio turnover rate .................. 75.33% 69.66% 73.92% 94.12% 0.00%
Net assets, end of period (000 omitted) .. $ 6,020 $ 6,133 $ 6,821 $ 4,955 $ 1,803
</TABLE>
<TABLE>
<CAPTION>
Developing Markets Fund
------------------------------------------------------------------------
Class A
------------------------------------------------------------------------
Six Months
Ended April 30, Year Ended October 31,
--------------- -------------------------------------------------------
1999** 1998 1997 1996 1995*
--------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 7.14 $ 9.52 $ 9.96 $ 9.53 $ 10.00
---------- ---------- ---------- ---------- ----------
Net investment income (loss)(1) .......... 0.04 0.02 (0.02) (0.01) --
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .................. 2.25 (2.40) (0.40) 0.44 (0.47)
Contribution from subadvisor ............. 0.23 -- -- -- --
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
asset value from operations ............ 2.52 (2.38) (0.42) 0.43 (0.47)
---------- ---------- ---------- ---------- ----------
Dividends from net investment income ..... (0.03) -- -- -- --
Distributions from capital gains ......... -- -- (0.02) -- --
Total Distributions ...................... (0.03) -- -- (0.02) --
---------- ---------- ---------- ---------- ----------
Net asset value, end of period ........... $ 9.63 $ 7.14 $ 9.52 $ 9.96 $ 9.53
========== ========== ========== ========== ==========
Total return(2) .......................... 35.33% (25.00)% (4.18)% 4.51% (4.70)%
Ratio of expenses to average net assets(4) 2.15% 2.15% 2.15% 2.15% 2.15%(3)
Ratio of net investment income
(loss) to average net assets(4) ........ 1.00% 0.22% (0.17)% (0.14)% 0.32%(3)
Portfolio turnover rate .................. 30.53% 43.56% 52.79% 26.76% 0.00%
Net assets, end of period (000 omitted) .. $ 14,617 $ 16,355 $ 29,402 $ 36,918 $ 14,622
<CAPTION>
Developing Markets Fund
-----------------------------------------------------------------------
Class B
-----------------------------------------------------------------------
Six Months
Ended April 30, Year Ended October 31,
--------------- -------------------------------------------------------
1999** 1998 1997 1996 1995*
--------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 6.96 $ 9.36 $ 9.86 $ 9.52 $ 10.00
---------- ---------- ---------- ---------- ----------
Net investment income (loss)(1) .......... 0.01 (0.04) (0.19) (0.08) (0.01)
Net realized and unrealized gain
(loss) on investments and foreign
currency transactions .................. 2.19 (2.36) (0.29) 0.42 (0.47)
Contribution from subadvisor ............. 0.23 -- -- -- --
---------- ---------- ---------- ---------- ----------
Net increase (decrease) in net
asset value from operations ............ 2.43 (2.40) (0.48) 0.34 (0.48)
Dividends from net investment income ..... -- -- -- -- --
Distributions from capital gains ......... -- -- (0.02) -- --
---------- ---------- ---------- ---------- ----------
Total Distributions ...................... -- -- -- (0.02) --
Net asset value, end of period ........... $ 9.39 $ 6.96 $ 9.36 $ 9.86 $ 9.52
========== ========== ========== ========== ==========
Total return(2) .......................... 34.91% (25.64)% (4.83)% 3.57% (4.80)%
Ratio of expenses to average net assets(4) 2.90% 2.90% 2.90% 2.90% 2.90%(3)
Ratio of net investment income
(loss) to average net assets(4) ........ 0.19% (0.50)% (1.74)% (0.83)% (1.00)%(3)
Portfolio turnover rate .................. 30.53% 43.56% 52.79% 26.76% 0.00%
Net assets, end of period (000 omitted) .. $ 2,604 $ 2,509 $ 4,941 $ 3,641 $ 1,004
</TABLE>
* Commencement of operations was September 8, 1995
** Unaudited
(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.
Total return for the six months ended April 30, 1999 excluding the effect
of the contribution from the Subadvisor for realized and unrealized
securities losses was 32.09% and 31.61% for the Developing Markets Fund
Class A and B shares, respectively.
(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 shares of each Fund as follows: International Equity Fund .07%
(annualized) for the six months ended April 30, 1999 and .10%, .18%, .27%
and .60% for the years ended 10/31/98, 97, 96 and 95, respectively, and
Developing Markets Fund .69% (annualized) for the six months ended April
30, 1999, and .61%, .34%, .54% and .60% for the years ended 10/31/98, 97,
96 and 95, respectively.
<PAGE>
TRUSTEES
G. Moffett Cochran Robert E. Fischer John W. Waller, III
Wilmot H. Kidd, III Martin Jaffe
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
Wood, Struthers & Winthrop Management Corp.
An Investment Management Subsidiary of
Donaldson, Lufkin & Jenrette
277 Park Avenue, New York, NY 10172
SUBADVISER
AXA Asset Management Partenaires
46, avenue de la Grande Armee
Paris, France 75017
CUSTODIAN
Citibank, N.A.
111 Wall Street, New York, NY 10043
TRANSFER AGENT
First Data Investor Services Group, Inc.
P.O. Box 61787 (211 South Gulph Road)
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.
[LOGO] DLJ WINTHROP FUNDS
277 Park Avenue, New York, NY 10172
800-225-8011
SEMI-INTL99
