<PAGE>
VALUE+GROWTH
ROBERTSON STEPHENS MUTUAL FUNDS
The Value+Growth Fund
Semi-Annual Report
September 30, 1995
[GRAPHIC]
2
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
FUND PHILOSOPHY
The Robertson Stephens Value+Growth Fund seeks long-term capital appreciation
by investing in mid-cap growth companies with favorable relationships between
price/earnings ratios and growth rates, in sectors offering above average
growth potential. The Fund's strategy is to identify specific business
sectors poised to benefit from major changes in the marketplace and societal
trends. Within these sectors, the Fund conducts bottom-up research, looking
for well-managed companies that have low-multiple valuations relative to
their peers, and are positioned to leverage growth opportunities. In
searching for reasonably priced growth companies, the Fund may discover
poorly managed, overpriced businesses and make "short" investments.
The Value+Growth Fund Semi-Annual Results
CONTENTS
1 Fund Highlights
2 Report to Shareholders
8 Fund Performance
9 Portfolio Summary
10 Schedule of Net Assets
13 Statement of Net Assets
14 Statement of Operations
15 Statement of Changes in Net Assets
16 Financial Highlights
17 Notes to Financial Statements
20 Administration
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
OUTSTANDING PERFORMANCE
The Robertson Stephens Value+Growth Fund continued to produce remarkable
returns this quarter, and was up 76.97% for one year ended September 30,
1995.
BULLISH ON TECHNOLOGY
Despite market volatility this summer, we still believe that technology
fundamentals are strong and have not dramatically reduced our position in
tech stocks which represent approximately 73% of the portfolio. As the
worldwide push for increased productivity continues, technology remains a
prime beneficiary.
POISED FOR GROWTH
As baby boomers age, the demand for medical services increases. Both private
sector and Medicare spending are growing, and managed care companies are
poised to benefit as the U.S. health care market changes. U.S. health care
spending is projected to be $1.1 trillion in 1995 and is expected to grow
5-6% for the foreseeable future. We look to have greater involvement within
the health care sector over the next 12 months.
EXPECT MARKET CORRECTIONS
Market corrections of 5% to 20% are not uncommon, and are a natural part of
the investment cycle. We do not try to trade around these swings. We are
committed to the long-term investment opportunities of the companies within
our portfolio. We focus on the investment merits of our portfolio's
positions, which we believe should reward us over time.
1
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
FUND MANAGER
[PHOTO]
DEAR SHAREHOLDER:
The Robertson Stephens Value+Growth Fund is pleased to report a 76.97% total
return for the one year period ended September 30, 1995, and a 19.27% return
for the September quarter. We are particularly pleased that not only were we
able to provide our shareholders with good absolute returns, but also that
the Fund outperformed its two benchmark indices, surpassing the Russell 2000
Index's return of 21.19% for the one year ended September 30, 1995, and its
9.43% gain during the September quarter as well as exceeding the S&P 500
Index's respective returns of 29.74% and 8.06%.
Entering the last quarter of calendar 1995, we believe the market in general
will do well. Our current read on business is that earnings prospects remain
bright for the companies in our portfolio. Although the market
"We continue to favor GROWTH STOCKS, and
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
was somewhat volatile this summer, it has become apparent to the equity and
bond markets that the Federal Reserve's attempts at slowing the economy
(through interest rate hikes earlier in the year) are working, abating
inflation worries and fear of further interest rate hikes. With moderate
inflation, low interest rates and a modest growth rate for the U.S. economy,
we believe equities will do well for the rest of 1995 and into 1996. We
continue to favor growth stocks over value stocks, and we see earnings gains
for technology stocks to continue to be particularly strong for the final
quarter of 1995 and into 1996.
A SUMMER OF VOLATILITY
We have just finished a summer where the Fund experienced some significant
volatility, which we see lessening as we progress into the fall. However, as
always, we remind investors that market corrections are a natural part of the
investment cycle. They tend to occur with some regularity, but they do not
last forever. While we remain upbeat about the companies within our
portfolio, market corrections of 5% to 20% are not uncommon. After being
relatively flat this summer, we expect the overall market to begin to move up
again sometime in the fourth quarter as it begins to recognize our economy is
in a non-inflationary, modest growth state which should continue into 1996.
TECHNOLOGY -- THE WORLD GOING DIGITAL
For some time we have been bullish regarding the prospects for the technology
sector. Technology is, we believe, still the best place for investors. The
technology industry's fundamentals continue to be very strong and are some of
the best fundamentals we have seen in years.
Demand for technology products and services continues to grow. The pervasive
and expanding use of technology offers outstanding investment opportunities.
New applications are being developed and imbedded in an ever-expanding list
of products. Product cycles have speeded up. Microsoft's Windows 95, which
began
we see earnings gains for TECHNOLOGY stocks for the remainder of 1995."
3
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
TECHNOLOGY
shipping in August, is a prime example of how a technology upgrade of one
product pushes the entire PC industry's capabilities forward. Customer
upgrades are occurring every two to four years. Thus the industry doesn't
need to find 65 million new buyers each year to maintain its growth rate
because approximately 40 million new buyers are coming from upgrades.
The greater software power of Windows 95 alone will consume the existing
power of the installed base of PCs and force an upgrade migration of
installed PCs through 1996.
With the whole world now a potential market for PC manufacturers, industry
growth of 20% for the next five years appears reasonably supported.
As the worldwide push for increased productivity continues, technology
remains a prime beneficiary. Demand is skyrocketing all over the world as
companies restructure, retool, re-engineer and reinvent themselves. The fall
of communism and the growth of emerging
[PHOTO]
INVESTMENT MANAGEMENT
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
markets have created new markets and phenomenal opportunities for U.S.
technology firms. Every emerging country is in need of communications and
computer power. This is providing tremendous world market opportunities for
U.S. technology companies.
Emerging countries are selecting wireless technology to provide telephone
service as wireless telephone networks can be installed more easily and
quickly than traditional hardwire. China alone has been a consumer of over $1
billion worth of cellular phones, pagers and equipment from Motorola in the
past.
In addition to the opportunities presented by emerging markets, we are also
excited about the growth of the Internet and related products and services.
Consensus estimates are that over 35 million users are connected to over
50,000 networks in over 80 countries with the numbers of users growing at
over one million per month. As always, we continually search for promising
investment opportunities in the ever-expanding technology sector.
AGING BABY BOOMERS POSITIVE FOR STOCKS
As we have discussed in prior letters, the U.S. demographic shift is very
positive for our financial theme as the bulk of baby boomers are entering
their peak earning years. In five years, it is projected that the 50+ age
group will control over 75% of this nation's wealth. In concert with this
shift, the recent media blitz warning Americans that Social Security and
Medicare may not be there to support them in their old age is bringing
retirement realities to baby boomers. We believe baby boomers and Americans
of all ages are taking charge of their long-term financial goals and
investing in mutual funds. Additionally, the growth of defined contribution
and 401(k) retirement plans are forcing Americans to become more aware about
investments. We believe these trends bode well for the equity markets,
especially in a low inflationary environment.
5
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
MANAGED CARE POSITIONED WELL FOR CHANGING U.S. HEALTH CARE MARKET
We are very positive about the potential of managed care for the following
reasons:
- -The U.S. population is aging.
- -Demands for medical services increase with age.
- -U.S. health care spending is projected to be $1.1 trillion in 1995 and is
projected to grow 5-6%.
- -Medicare is expected to be $170 billion in 1995 and projected to grow at
5.4%.
The U.S. health care industry should be a growth industry for the next two
decades due to the aging of the U.S. population. However, due to the need to
gain
"In five years, it is projected that the 50+ age
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
control of excessive growth in medical expenses, we believe the entire
medical system will move toward managed care over the next 10 years. Managed
care has had a significant impact on private health care in the 1990s. We now
look for managed care to have a major impact in the public sector, i.e.,
Medicare and Medicaid, over the next 10 years.
LOOKING FORWARD
Many issues continue to weigh on the equity markets as we enter 1996. Over
the last 18 months, the markets have encountered and dealt with many changing
issues and challenges -- currency market turmoil, rising interest rates,
rising inflationary expectations, a fast and then a slowing economy.
We believe the final quarter of 1995 as well as 1996 should continue to be
good equity investment periods. Our valuation work on the market continues to
show excellent value today relative to inflation and interest rates. Our
valuation work on the technology sector reveals especially excellent values
based on 1996 earnings estimates, particularly in the semiconductor area. The
U.S. equity market continues to perform in the best of two worlds, moderate
growth and low inflation. We look for the easing of inflation throughout 1996.
We appreciate your continued support and look forward to reporting to you
again early next year.
Sincerely,
/s/ Ronald E. Elijah
RONALD E. ELIJAH
Portfolio Manager
group will CONTROL OVER 75% of this nation's wealth"
7
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
FUND PERFORMANCE
Results of a hypothetical $10,000 investment
in The Robertson Stephens Value+Growth Fund and the S&P 500 Index(1)
If invested on May 12, 1992(2)
<TABLE>
<CAPTION>
Value + Growth
-------------------------
VPF S&P
VALUE VALUE
-------------------------
<S> <C> <C>
5/92
5/12/92 $10,000 $10,000
6/92 $9,801 $9,846
9/92 $10,099 $10,157
12/92 $11,004 $10,669
3/93 $11,933 $11,140
6/93 $11,943 $11,186
9/93 $12,843 $11,478
12/93 $13,378 $11,746
3/94 $13,890 $11,297
6/94 $13,276 $11,335
9/94 $15,560 $11,900
12/94 $16,469 $11,895
3/95 $18,927 $13,058
6/95 $23,086 $14,285
9/95 $27,536 $15,436
</TABLE>
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
VALUE+GROWTH S&P 500 RUSSELL
FOR THE PERIODS ENDED 9/30/95 FUND INDEX(1) 2000(3)
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Three Months 19.27% 8.06% 9.43%
- -----------------------------------------------------------------------------
Six Months 45.48% 18.21% 19.02%
- -----------------------------------------------------------------------------
Nine Months 67.19% 29.76% 23.97%
- -----------------------------------------------------------------------------
One Year 76.97% 29.74% 21.19%
- -----------------------------------------------------------------------------
Since Inception (5/12/92) 175.36% 54.36% 55.79%
- -----------------------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
VALUE+GROWTH S&P 500 RUSSELL
FOR THE PERIODS ENDED 9/30/95 FUND INDEX(1) 2000(3)
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Three years 39.70% 14.97% 17.18%
- -----------------------------------------------------------------------------
Since inception (5/12/92) 34.87% 13.68% 13.99%
- -----------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500 Index) is
an unmanaged index of a selected portfolio of publicly traded stocks. It
is widely recognized as representative of the stock market in general.
Investment results assume the reinvestment of dividends paid on the stocks
constituting the index.
(2) Date that the Fund's shares were first offered to the public.
(3) The Russell 2000 Index is a market capitalization weighted index
composed of 2,000 U.S. companies with market capitalization ranging from
$40 to $450 million.
Investors should realize that all performance data presented is based
upon past performance during limited periods of time, and past
performance is not predictive of future performance. Investors should
also realize that both investment return and principal value will
fluctuate so that shares, when redeemed, may be worth more or less than
their original cost.
8
<PAGE>
ROBERTSON, STEPHENS & COMPANY
PORTFOLIO SUMMARY
AS OF SEPTEMBER 30, 1995
[PIE CHART]
TOP TEN HOLDINGS
1.
MICRON TECHNOLOGY, INC.
Manufactures and markets semiconductor memory and enhancement products for
workstation and personal computers.
2.
TEXAS INSTRUMENTS, INC.
Texas Instruments, Inc. manufactures and sells electronic products. The
company's products include semiconductors, control devices, radar, missile
guidance systems, printers and calculators. Texas Instruments sells to
governmental, industrial and consumer markets.
3.
LSI LOGIC CORPORATION
Designs, produces, markets and services application -- specific integrated
circuits, microprocessors and application-specific standard products.
4.
APPLIED MATERIALS, INC.
Develops, manufactures, sells and services semiconductor wafer fabrication
equipment worldwide. The company's products include deposition, etching and
ion implantation systems.
5.
CISCO SYSTEMS, INC.
Develops, manufactures, markets and supports multi-protocol internet working
systems that enable customers to build large-scale computer networks.
6.
AMGEN, INC.
Develops, manufactures and markets drugs based on advanced cellular and
molecular biology. The company's two principal drugs are Epogen and Neupogen.
7.
OXFORD HEALTH PLANS
A managed care company providing health benefit plans, including HMOs,
point-of-service plans and third party administration of employer funded
benefit plans.
8.
3COM CORPORATION
3Com Corporation designs, produces and markets a broad range of ISO 9000
compliant global data networking solutions. The company's products include
routers, hubs, switches and adapters for Ethernet, Token Ring, FDDI and ATM
networks.
9.
COMPAQ COMPUTER CORPORATION
Designs, develops, manufactures and markets personal computers for
professional users and consumers.
10.
MERRILL LYNCH & COMPANY, INC.
Merrill Lynch & Company, Inc. is a diversified financial services institution
which provides investment, financing, real estate, insurance and other
services. The company's largest subsidiary, Merrill Lynch, Pierce, Fenner &
Smith, is a large securities firm which acts as a broker/dealer for various
financial instruments, as well as an investment banker.
9
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 20, 1995 (UNAUDITED) SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- --------------------------------------------------------------------------------------
BIOTECHNOLOGY - 3.1%
Amgen, Inc. 860,000 $42,892,500
- --------------------------------------------------------------------------------------
42,892,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.9%
3Com Corporation 900,000 40,950,000
- --------------------------------------------------------------------------------------
40,950,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 12.1%
Compaq Computer Corporation 831,000 40,199,625
Dell Computer 255,000 21,675,000
Hewlett-Packard Company(1) 290,000 24,178,750
Intel Corporation(1) 468,900 28,192,613
Komag, Inc. 145,000 9,479,375
Seagate Technology, Inc. 585,000 24,643,125
Sun Microsystems, Inc. 300,000 18,900,000
- --------------------------------------------------------------------------------------
167,268,488
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.5%
Cadence Design Systems, Inc. 460,000 18,055,000
Microsoft Corporation 100,000 9,050,000
Parametric Technology Corporation 340,000 20,910,000
- --------------------------------------------------------------------------------------
48,015,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 5.9%
Circuit City Stores, Inc.(1) 400,000 12,650,000
CompUSA, Inc. 400,000 17,200,000
General Nutrition Co., Inc. 400,000 18,200,000
Nike, Inc.(1) 300,000 33,337,500
- --------------------------------------------------------------------------------------
81,387,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CONSUMER ELECTRONICS - 4.1%
Kemet Corporation 510,000 17,467,500
Philips Electronics(1) 400,000 19,500,000
Vishay Intertechnology, Inc. 482,400 20,260,800
- --------------------------------------------------------------------------------------
57,228,300
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
DATA TELECOMMUNICATIONS - 8.9%
Cabletron Systems, Inc.(1) 545,000 $35,901,875
Cisco Systems, Inc. 670,000 46,230,000
DSC Communications Corporation 300,000 17,775,000
Motorola, Inc.(1) 300,000 22,912,500
- --------------------------------------------------------------------------------------
122,819,375
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
FINANCIAL SERVICES - 6.2%
Charles Schwab Corporation(1) 1,315,000 36,820,000
First USA, Inc.(1) 134,000 7,269,500
Green Tree Financial Corporation(1) 355,000 21,655,000
Household International, Inc.(1) 185,000 11,470,000
MBNA Corporation(1) 200,000 8,325,000
- --------------------------------------------------------------------------------------
85,539,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
HEALTH MAINTENANCE ORGANIZATIONS - 5.0%
Healthsource, Inc.(1) 581,000 27,960,625
Oxford Health Plans(1) 565,000 41,103,750
- --------------------------------------------------------------------------------------
69,064,375
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
INVESTMENT BANKS - 3.1%
Alex. Brown & Sons(1) 100,000 5,837,500
Merrill Lynch 600,000 37,500,000
- --------------------------------------------------------------------------------------
43,337,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
LODGING/RECREATION - 2.1%
Hospitality Franchise Systems, Inc. 215,000 11,260,625
La Quinta Inns, Inc.(1) 235,000 6,580,000
Mirage Resorts, Inc. 350,000 11,506,250
- --------------------------------------------------------------------------------------
29,346,875
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 10.9%
ASM Lithography 270,000 11,846,250
Applied Materials, Inc.(1) 480,000 49,080,000
KLA Instruments Corporation 180,000 14,445,000
Kulicke & Soffa(1) 540,000 19,710,000
Lam Research Corporation 270,000 16,132,500
Novellus Systems, Inc. 240,000 16,800,000
Teradyne, Inc.(1) 640,000 23,040,000
- --------------------------------------------------------------------------------------
151,053,750
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - 24.0%
Alliance Semiconductor Corporation 62,000 $ 2,464,500
Altera Corporation 310,000 19,336,250
Atmel Corporation 365,000 12,318,750
Cypress Semiconductor Corporation 685,000 26,458,125
Integrated Device Technology Inc. 555,000 13,875,000
LSI Logic Corporation 999,700 57,732,675
Microchip Technology, Inc. 349,200 13,225,950
Micron Technology, Inc.(1) 1,150,300 91,448,850
Texas Instruments(1) 727,500 58,109,062
VLSI Technology, Inc. 385,000 13,186,250
Xilinx, Inc. 495,000 23,821,875
- --------------------------------------------------------------------------------------
331,977,287
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 7.1%
Allen Group(1) 354,000 12,832,500
Ericsson (L.M.) Telephone Company(1), ADR(2) with Rights(3) 1,130,000 27,685,000
Frontier Corp.(1) 500,000 13,312,500
LCI International, Inc. 250,000 9,812,500
Nokia Corporation(1) 500,000 34,875,000
- --------------------------------------------------------------------------------------
98,517,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.9% (Cost $1,002,640,057) 1,369,397,950
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
Cash 464
Repurchase Agreement
State Street Bank and Trust Company, 5.25%, dated 9/29/95, due 10/2/95,
maturity value $9,145,667 (collateralized by $8,310,000 par value
U.S. Treasury Notes, 7.625%, due 11/15/22) 9,143,000
- --------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 0.7% 9,143,464
- --------------------------------------------------------------------------------------
OTHER ASSETS, NET - 0.4% 7,086,903
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100% $1,385,628,317
- --------------------------------------------------------------------------------------
</TABLE>
(1)Income producing security.
(2)ADR - American Depository Receipts.
(3)See Note 4.e.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------
Investments, at value (Cost: $1,002,640,057) $1,369,397,950
Cash and cash equivalents 9,143,464
Receivable for investments sold 20,068,574
Receivable for fund shares subscribed 15,711,574
Receivable, other 279,687
- --------------------------------------------------------------------------------------
TOTAL ASSETS 1,414,601,249
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------
Payable for investments purchased 24,063,500
Payable for fund shares redeemed 3,940,937
Accrued expenses 968,495
- --------------------------------------------------------------------------------------
TOTAL LIABILITIES 28,972,932
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS $1,385,628,317
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------
Paid in capital 1,023,632,107
Accumulated net realized (loss) from investments (4,761,683)
Net unrealized appreciation on investments 366,757,893
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS $1,385,628,317
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
PRICING OF SHARES: $ 26.55
Net Asset Value, offering and redemption price
per share (Net assets of $1,385,628,317 applicable
to 52,188,039 shares of beneficial interest
outstanding with no par value)
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------------
Interest $ 869,983
Dividends (net of foreign tax of $21,089) 1,049,962
Other Income 690
- --------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,920,635
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------
Investment advisory fees 5,746,087
Custodian and transfer agent fees 263,756
Registration and filing fees 100,346
Shareholder reports 83,610
Professional fees 67,565
Interest expense 56,470
Trustees' fees and expenses 11,250
Other 10,698
- --------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 6,339,782
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
NET INVESTMENT (LOSS) (4,419,147)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS
- --------------------------------------------------------------------------------------
Net realized (loss) from investments (3,234,356)
Net change in unrealized appreciation on investments 326,092,668
- --------------------------------------------------------------------------------------
Total Net Realized (Loss) and Unrealized Appreciation on Investments 322,858,312
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $318,439,165
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED 9/30/95 YEAR ENDED
(UNAUDITED) 3/31/95
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- ---------------------------------------------------------------------------------------------------
Net investment (loss) $(4,419,147) $(1,115,225)
Net realized (loss) from investments (3,234,356) (1,344,592)
Net realized gain from options 0 455,848
Net realized gain from securities sold short 0 73,750
Net change in unrealized appreciation on investments 326,092,668 39,217,602
Net change in unrealized (depreciation) on securities sold short 0 (103,750)
- ---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 318,439,165 37,183,633
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------
Realized gains on investments 0 (1,566,892)
- ---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0 (1,566,892)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions 638.286.145 348,785,903
- ---------------------------------------------------------------------------------------------------
Total Capital Share Transactions 638,286,145 348,785,903
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 956,725,310 384,402,644
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------
Beginning of year 428,903,007 44,500,363
End of year $1,385,628,317 $428,903,007
- ---------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
FOR A SHARE OUTSTANDING 9/30/95 YEAR ENDED YEAR ENDED PERIOD(1) ENDED
THROUGHOUT THE PERIOD: (UNAUDITED) 3/31/95 3/31/94 3/31/93
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.25 $ 13.56 $ 11.94 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Net investment (loss) income (0.11) (0.18) (0.04) 0.12
Net realized gain and unrealized appreciation on investments 8.41 5.07 1.99 1.88
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets resulting from operations 8.30 4.89 1.95 2.00
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income - - (0.03) (0.06)
Distributions from realized gain on investments - (0.20) (0.30) -
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions - (0.20) (0.33) (0.06)
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 26.55 $ 18.25 $ 13.56 $ 11.94
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Total Return 45.48% 36.27% 16.32% 20.05%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $1,385,628,317 $428,903,007 $44,500,363 $17,833,350
Ratio of Expenses to Average Net Assets 1.37% 1.68% 1.55%(2) 1.33%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (0.96)% (1.09)% 0.51%(2) 1.26%(2)
Portfolio Turnover Rate 40% 232% 250% 210%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) From April 21, 1992 (Commencement of Operations) to 3/31/93.
(2) If the Fund had paid all of its expenses and had received no reimbursement
from the Advisor, the ratio of expenses to average net assets for the
periods ended March 31, 1994 and March 31, 1993 would have been 2.35% and
2.71%, respectively, and the ratio of net investment income/(loss) to
average net assets would have been (1.31)% and (0.12)%, respectively.
Per share data for each of the periods has been determined by using the
average number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Value+Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Fund became effective to offer shares to
the public on May 12, 1992. Prior to the public offering, shares were offered
in a private placement offering on April 21, 1992, at $10 per share, to
sophisticated investors under Section 4(2) of the Securities Act of 1933. The
Trust offers nine series of shares -- The Robertson Stephens Emerging Growth
Fund, The Robertson Stephens Value+Growth Fund, The Robertson Stephens
Contrarian Fund, The Robertson Stephens Developing Countries Fund, The
Robertson Stephens Growth & Income Fund, The Robertson Stephens Partners
Fund, The Robertson Stephens Information Age Fund (effective November 15,
1995), The Robertson Stephens Global Natural Resources Fund (effective
November 15, 1995), and The Robertson Stephens Global Low-Priced Stock Fund
(effective November 15, 1995). The assets for each series are segregated and
accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities including options are valued at the last sale
price on the principal exchange or market on which they are traded; or, if
there were no sales that day, at the mean between the closing bid and asked
prices. At September 30, 1995, 100% of the Fund's portfolio was valued in
this manner.
Securities for which market quotations are not readily available are valued
at their fair value as determined in accordance with the guidelines and
procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes in
the issuer's financial position, and any other event which could have a
significant impact on the value of the security. At September 30, 1995, no
security of the Fund was valued using these guidelines and procedures.
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to
ensure that the collateral's market value equals at least 100% of the
repurchase price under the agreement. However, in the event of default or
bankruptcy by the counterparty to the agreement, realization and/or retention
of the collateral may be subject to legal proceedings. The Fund's policy is
to limit repurchase agreement transactions to those parties deemed by the
Fund's Investment Advisor to have satisfactory creditworthiness.
C. FEDERAL INCOME TAXES:
The Fund has made no provisions for federal income taxes for the six months
ended September 30, 1995, as it does not expect to incur any federal income
tax for the year. The Fund expects to comply with requirements of the
Internal Revenue Code for qualifying as a regulated investment company so as
not to be subject to federal income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, sold, or sold short (trade date). Realized gains and losses on
securities transactions are determined on the basis of specific
identification.
17
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
E. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is
accrued and recorded daily.
F. CAPITAL ACCOUNTS:
The Fund follows the provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies"
("SOP"). The purpose of this SOP is to report undistributed net investment
income and accumulated net realized gain (loss) accounts in such a manner as
to approximate amounts available for future distributions to shareholders, if
any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the six months ended
September 30, 1995 and for the year ended March 31, 1995 were as follows:
<TABLE>
<CAPTION>
4/1/95 - 9/30/95 SHARES AMOUNT
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Shares sold 53,259,269 $1,200,268,873
Shares reinvested 1,396 35,667
- ---------------------------------------------------
53,260,665 $1,200,304,540
- ---------------------------------------------------
Shares redeemed (24,574,655) (562,018,394)
- ---------------------------------------------------
- ---------------------------------------------------
- ---------------------------------------------------
Net increase 28,686,010 $ 638,286,145
- ---------------------------------------------------
4/1/94 - 3/31/95 SHARES AMOUNT
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Shares sold 34,759,244 $574,001,458
Shares reinvested 79,555 1,276,754
- ---------------------------------------------------
34,838,799 575,278,212
- ---------------------------------------------------
Shares redeemed (14,619,427) (226,492,309)
- ---------------------------------------------------
- ---------------------------------------------------
- ---------------------------------------------------
Net increase 20,219,372 $348,785,903
- ---------------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, L.P. ("RSIM"), of which Robertson Stephens & Company,
L.P. ("RS & Co."), the Fund's Distributor, is the sole Limited Partner, an
investment advisory fee calculated at an annual rate of 1.25% of the average
daily net assets of the Fund. For the six months ended September 30, 1995,
the Fund incurred investment advisory fees of $5,746,087. RSIM has agreed to
reimburse the Fund for any annual operating expenses, including investment
advisory fees, but excluding dividend expense for short sales, which exceed
the most stringent limits prescribed by any state in which the Fund's shares
are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of RS &
Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a
Director of RSIM, a Member of RS Group, and Chief Operating Officer of RS &
Co. Terry R. Otton, Chief Financial Officer of the Fund, is a Member of RS
Group and Chief Financial Officer of RS & Co. John P. Rohal, a Trustee of the
Fund, is a Member of RS Group and Director of Research for RS & Co. Ronald E.
Elijah, Portfolio Manager, is a Member of RS Group. All affiliated and access
persons, as defined in the 1940 Act, follow strict guidelines and policies on
personal trading as outlined in the Fund's Code of Ethics.
C. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested
persons of the Trust, as defined in the 1940 Act, collectively received
compensation and reimbursement of expenses of $11,250 for the six months
ended September 30, 1995.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
D. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as
broker-dealer, subject to Fund policies as stated in the prospectus,
regulatory constraints, and the ability of RS & Co. to provide competitive
prices and commission rates. All investment transactions in which RS & Co.
acts as a broker may only be executed on an agency basis. Subject to certain
constraints, the Fund may make purchases of securities from offerings or
underwritings in which RS & Co. has been retained by the issuer. For the six
months ended September 30, 1995, the Fund paid brokerage commissions of
$156,115 to RS & Co. which represented 16.1% of total commissions paid for
the period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the
cost of investments purchased or the proceeds from investments sold
(excluding options, securities sold short and short-term investments)
measured as a percentage of the Fund's average monthly investment portfolio
for the six months ended September 30, 1995, was 40%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $1,003,152,009. Accumulated net unrealized appreciation on
investments was $366,245,951 consisting of gross unrealized appreciation and
depreciation of $371,292,357 and $5,046,406, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the six months ended September 30, 1995, the cost of investments
purchased and the proceeds from investments sold (excluding options,
securities sold short and short-term investments) were $973,207,456 and
$357,040,602, respectively.
D. SHORT SALES:
Short sales are transactions in which the Fund sells a security it does not
own, in anticipation of a decline in the market value of that security. To
complete such a transaction, the Fund must borrow the security to deliver to
the buyer upon the short sale; the Fund then is obligated to replace the
security borrowed by purchasing it in the open market at some later date. The
Fund will incur a loss if the market price of the security increases between
the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund will realize a gain if the security declines in
value between those dates. All short sales must be fully collateralized. The
Fund maintains the collateral in a segregated account consisting of cash
and/or U.S. government securities sufficient to collateralize the greater of
the sales proceed or market value of its short positions. The Fund may also
sell short "against the box" (i.e. the Fund enters into a short sale as
described above, while holding an offsetting long position in the security
which is sold short). If the Fund enters into a short sale against the box,
it will segregate an equivalent amount of securities owned by the Fund as
collateral while the short sale is outstanding. The Fund limits the value of
short sell positions (excluding short sales "against the box") to 25% of the
Fund's total assets. At September 30, 1995, the Fund did not sell any
securities short.
E. RIGHTS:
A right is a privilege offered by a corporation to its shareholders pro rata
to subscribe to a certain security of that corporation at a specified price.
At September 30, 1995, the fund held 1,130,000 rights to subscribe to 113,000
ADR shares of Ericsson (L.M.) Telephone company at US$13.47 per share.
19
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
ADMINISTRATION
OFFICERS AND TRUSTEES
G. Randy Hecht
President, Chief Executive Officer
Terry R. Otton
Chief Financial Officer
Leonard B. Auerbach, Trustee
Daniel R. Cooney, Trustee
James K. Peterson, Trustee
John P. Rohal, Trustee
Robert A. Zidar, Secretary
INVESTMENT ADVISER
Robertson, Stephens Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
1-800-766-3863
TRANSFER AGENT AND DISBURSING AGENT
State Street Bank & Trust Company
c/o National Financial Data Services
P.O. Box 419717
Kansas City, MO 64141
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA 02105
AUDITORS
Price Waterhouse, L.L.P.
San Francisco, CA 94104
LEGAL COUNSEL
Ropes & Gray
Boston, MA 02110-2624
This report is submitted for the information of shareholders of The Robertson
Stephens Value+Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
Published November 21, 1995
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
THE ROBERTSON STEPHENS MUTUAL FUNDS
In addition to THE VALUE+GROWTH FUND, Robertson Stephens offers the following
mutual funds:
THE CONTRARIAN FUND
A DEFENSIVE POSITION IN TODAY'S VOLATILE MARKET -- Invests in attractively
priced, growing companies worldwide that are out of favor or have never been
discovered by institutional investors. Adheres to an independent, aggressive,
and flexible investment strategy. The Fund may engage in short sales and
invests in companies of all sizes. Managed by Paul Stephens.
THE DEVELOPING COUNTRIES FUND
A PORTFOLIO OF GROWING COMPANIES IN EMERGING MARKETS -- Invests in publicly
traded equities of developing countries. The no-load Fund may engage in short
sales and/or invest in private placement emerging market equity securities.
Managed by Michael Hoffman.
THE EMERGING GROWTH FUND
SEEKING TO INVEST IN AMERICA'S MOST DYNAMIC, GROWTH-ORIENTED INDUSTRIES --
Invests primarily in common stocks of emerging growth companies
(predominantly technology, specialty retailing and health care) with above
average growth potential. No load. Managed by Bob Czepiel.
THE GLOBAL LOW-PRICED STOCK FUND
SEEKING OVERLOOKED AND UNDERVALUED COMPANIES -- Invests in companies
worldwide that are low-priced (stock prices no greater than $10 per share),
have future growth potential, but are under appreciated by other investors.
No load. Managed by Hannah Sullivan.
THE GLOBAL NATURAL RESOURCES FUND
PRIMARILY FOCUSING ON ATTRACTIVE HARD ASSET COMPANIES -- Invests in equities
of companies engaged in the discovery, development, production, or
distribution of natural resources, such as energy, metals and forest
products. No load. Managed by Andy Pilara, Jr.
THE GROWTH & INCOME FUND
SEEKING HIGH GROWTH WHILE MODERATING RISK -- Invests in equity and debt
securities, with an emphasis on small and mid-cap companies with growth
potential and/or current income. No load. Managed by John Wallace.
THE INFORMATION AGE FUND
FOCUSING ON INVESTMENTS IN THE INFORMATION TECHNOLOGY SECTOR -- Invests in a
wide-range of technology companies with strong fundamentals, market advantage
and growth potential, including computer hardware and software,
telecommunications, multimedia, and financial services. No load. Managed by
Ron Elijah.
THE PARTNERS FUND
SMALL-CAP VALUE FUND WITH A CONTRARIAN DISCIPLINE -- Invests with a value
methodology combining traditional Graham & Dodd balance sheet analysis and
cash flow analysis. No load. Managed by Andy Pilara, Jr.
For more information, including management fees, expenses and special risks
associated with short selling or with international investing, call
Robertson, Stephens & Company, L.P., distributor, for a prospectus. Read it
carefully before you invest.
<PAGE>
ROBERTSON STEPHENS & COMPANY MUTUAL FUNDS
555 California Street, Suite 2600
San Francisco, California 94104
FUND INFORMATION
ROBERTSON STEPHENS INVESTOR SERVICES
- - Knowledgeable mutual fund representatives ready to answer
your investment questions.
- - Automated access to daily net asset values and the portfolio managers' hotline
24 hours a day.
1-800-766-3863
ROBERTSON STEPHENS ACCOUNTLINK
Automated account information is available 24 hours a day through Robertson
Stephens AccountLink.
1-800-624-8025
FUND LISTINGS
The Fund is listed in the WALL STREET JOURNAL, USA TODAY, INVESTOR'S
BUSINESS DAILY, and most local newspapers as Val Pl under the heading
Robertson Stephens. Its computer quotation symbol is RSVPX.
