<PAGE>
GROWTH & INCOME
ROBERTSON STEPHENS MUTUAL FUNDS
The Growth & Income Fund
Third Quarter Report
September 30, 1995
[Graphic]
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
FUND PHILOSOPHY
The Growth & Income Fund seeks to achieve long-term total return by investing
primarily in small- and mid-cap stocks and convertible bonds and preferreds.
Our flexible bottom-up approach is based on value recognition and trend
analysis. We look for well-managed companies with improving fundamentals that
are positioned for growth. Our formula for long-term success also includes a
disciplined approach to risk: losses are eliminated quickly and we are
constantly looking for new opportunities.
CONTENTS
1 Fund Highlights
2 Report to Shareholders
8 Fund Performance
9 Portfolio Summary
10 Schedule of Net Assets
17 Statement of Net Assets
18 Statement of Operations
19 Statement of Changes in Net Assets
20 Financial Highlights
21 Notes to Financial Statements
24 Administration
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
OFF TO A GOOD START
The Robertson Stephens Growth & Income Fund, launched
July 12, 1995, was up 7.6% for the period ending September 30, 1995. The Fund
outpaced its benchmark indices (S&P 500, Lipper Growth & Income) during this
period.
BARBELL APPROACH -- REDUCES RISK
Most of the Fund's assets are invested in
small-mid size growth companies, but we look for opportunities in all market
sectors. We may also invest in convertibles and corporate or U.S. government
bonds to provide income and reduce risk.
TECHNOLOGY/TELECOMMUNICATIONS
The high-tech revolution is real. This area
will continue to be a core holding. Near term, we will focus on shifting
assets to more value-added companies. These sectors will remain volatile --
we are opportunistic and will try to take advantage of market swings.
SMALL-MID CAPS OUTPERFORM
Over the last few months smaller cap stocks have
resumed market leadership. In a low inflation, slower growth environment,
these stocks should do well. We intend to capitalize on this opportunity.
CAUTIOUS ON EARNINGS
We anticipate slower earnings growth over the next several quarters. Stock
picking becomes even more important during this phase of the bull market. We
have always had a bottom-up focus.
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
FUND MANAGER
[Photo]
DEAR SHAREHOLDER:
The Robertson Stephens Growth & Income Fund accomplished several milestones
this quarter. The Fund, launched July 12, 1995, was up 7.6% for the period
ending September 30, 1995. We are also happy to report that assets under
management surpassed the $100 million mark. On behalf of the entire Growth &
Income team I want to thank you for your strong support.
We are pleased to have started off so well, both in terms of absolute and
relative performance. We surpassed our two benchmark indices: the S&P 500 and
Lipper Growth & Income Index, both up 4.2% during the July 12 to September
30, 1995 period.
We bring a unique style to Growth & Income investing, which we would like to
review for you this quarter. Our bottoms-up, "barbell" approach utilizes both
equities and bonds to achieve our goal of high total return.
One end of the barbell (usually 65-85% of assets) consists of equities. Our
emphasis is on small to medium size companies offering above average (greater
than the S&P 500) growth potential. The other end of the
"Our bottom-up, BARBELL APPROACH
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
barbell (10-25% of assets) may consist of convertible bonds and preferreds,
corporate or U.S. government bonds. These investments enhance the yield
profile of the Fund and are usually less volatile then stocks.
We have a very flexible approach to picking stocks. We will search for a
"growth" catalyst that may help drive a company's earnings and value higher.
That might be a new product introduction, a new management team, expansion
into new markets or realization of undervalued assets. Although our emphasis
is on smaller capitalization companies, we remain open-minded and will look
at all companies across all industries. We will attempt to keep the Fund
broadly diversified.
Our selling disciplines are also very strict. We cut our losses quickly,
especially if business fundamentals deteriorate. We are not afraid to change
our minds or admit that we are wrong if the environment goes against us. We
do not manage the Fund for short-term performance, but do try to take
advantage of short-term swings to enhance returns.
CURRENT OUTLOOK
We remain cautiously optimistic for the balance of 1995. Investor perceptions
about the state of the economy have been very volatile of late. Sentiment has
shifted from strong growth (Autumn 1994), to recession (Spring 1995), to soft
landing and reacceleration (present).
Our sense is that it is not impossible, but very difficult to restart the
U.S. economy. Consumers continue to boost borrowings, employment growth has
slowed, along with household incomes and retail sales. Year over year profit
growth for the S&P 500 peaked at 29% in the first quarter of 1995. Going
forward, we are looking at 9% to 10% growth for the remainder of 1995, and
flatter growth for 1996. The slowing of corporate profits creates a more
difficult environment for equities. Nevertheless, there are several long-term
positives, all of which are a plus for stocks: low inflation, a stable U.S.
dollar, U.S. equity fund inflows, and progress on the budget deficit.
utilizes both EQUITIES AND BONDS to achieve our goal of high total return."
3
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SMALL-MID CAP FOCUS
The Fund intends to focus on small- to mid-size companies. After 18 months of
underperformance, smaller cap shares have begun to lead the U.S. equity
markets. Slower economic growth favors growth companies. The advantage of
focusing investments in this growth sector is clear to us. Many of these
companies, run by entrepreneurial management teams, are exploiting market
niches and introducing new products and services. Historically, they have
produced greater returns over the long-term than larger companies. We are
well positioned to take advantage of this trend; the median market cap of the
Fund is $1.3 billion.
CONVERTIBLES PROVIDE OPPORTUNITIES
The Fund has invested 10% of its assets in convertible issues; we are always
looking for high total return opportunities.
SMALL STOCKS OUTPERFORM ALTERNATIVES LONG-TERM
Investments in the U.S. Capital Markets Small Stocks Performance (1926-1994)
Source: Ibbotson Associates, 1995 Yearbook
[Graphic]
[Photo]
INVESTMENT MANAGEMENT
G. Randy Hecht
President
Robertson Stephens
Investment Trust
INVESTMENT TEAM
Research
John Seabern
ADMINISTRATION
Sarah Clark
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Investing in shorter maturity bonds (10 years or less) gives us a downside
cushion against disappointing earnings or declining stock prices. An
inadequate supply of new issues, along with a larger number of redemptions
and forced conversions, has created a strong new issue market for converts.
Overwhelming demand has created an environment where we see more near-term
opportunity and value in new issues versus secondaries.
An example is the VLSI Technology, Inc., 8.25% of 2005, recently purchased by
the Fund. This bond was issued with a 60% premium which minimizes the upside
potential, but the high coupon (225 basis points over 10 year treasuries)
maximizes income and downside protection. VLSI designs and manufactures
application-specific semiconductor chips (ASIC's) for the computer, military
and communication markets. We believe that the longer-term potential of the
company is very positive and by owning the convert we get paid to participate
in their value-added strategy.
WHERE DO WE GO FROM HERE?
It is important to remember that we are still in a small-cap bull market that
started in late 1990. The last two cycles (1965-73, 1977-83) lasted six to
seven years and resulted in price/earnings ratios of twice that of the S&P
500. Today, we are well below that.
(SEE CHART BELOW.)
Undervalued small stocks can be found in capital goods and industrial
sectors, while higher growth is still in technology and telecommunications.
Current holdings include:
- -ECC INTERNATIONAL -- a $90 million defense electronics company diversifying
into commercial applications.
- -STRATTEC SECURITY -- a recent spin-off from Briggs & Stratton; designs,
develops and manufactures electromechanical locks for North American auto
producers.
T. Rowe Price New Horizons Fund, Inc.
Price/Earnings Relative to the S&P 500 Price/Earnings
Source: T. Rowe Price Associates, Inc.
[Graphic]
5
<PAGE>
HIGH-TECH GLOBAL
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
- -DSP COMMUNICATIONS -- applies its software expertise to develop chip sets
for wireless handphones.
- -DATA TRANSLATION -- designs hardware and software for high performance
multimedia and video editing applications.
TECHNOLOGY
The high-tech, global revolution is real. Information processing and
communication continue to grow at real rates much higher than those of the
market. Companies worldwide are investing a greater percentage of capital on
technology after a long period of underinvestment. New technologies enhance
productivity, lower costs and create high barriers to entry for the
competition. (See chart below.)
However, this observation has not gone unnoticed. Increased media coverage
and investor enthusiasm have created very high expectations for technology
stocks. Earnings momentum remains strong for many tech sectors: computers,
semiconductors, and semi-equipment manufacturing, but there is little room
for error.
[Graphic]
Capital Goods Spending Cycle
Real Producers Durable Equipment
Source: Bureau of Economic Analysis
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Currently representing 28% of the Fund, technology and telecom issues will
remain core holdings. But over time, we will be shifting assets away from
commodity products (semiconductors, computers) to more value-added and less
exploited areas (software, data services and networking(1). No matter how
great the secular prospects are, we must stay focused in order to take
advantage of short-term market excesses.
SPIN-OFFS -- "GETTING SMALLER TO GET BIGGER"
Corporate spin-offs are accelerating and have added opportunities for
investment. New companies spun off in 1995 have already approached $30
billion in value(2). Many managements of larger companies are focusing on core
businesses. In order to better compete on a global scale, they are spinning
off profitable, non-core businesses.
This plays into our belief that downsizing and restructuring will be
longer-term investment themes for the rest of the decade. The Fund owns:
AT&T, W.R. Grace, Union Pacific Railroad and U.S. West, all of which have
announced major spin-offs within the last six months.
IN CONCLUSION
As we approach the end of 1995, we remain bullish about the Fund's long-term
prospects. We have diversified the Fund to reduce risk -- yet concentrate our
efforts in finding those companies with above average business fundamentals
and growth potential. Flexibility and discipline are key to successful,
long-term investing.
Sincerely,
/s/ John L. Wallace
JOHN L. WALLACE
Portfolio Manager
(1) Examples include Comdial Corporation, Cisco Systems, and Affiliated
Computer Services.
(2) Source: J. P. Morgan & Co.
7
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
FUND PERFORMANCE
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
GROWTH & INCOME S&P 500 LIPPER GROWTH & INCOME
FOR THE PERIOD ENDED 9/30/95 FUND INDEX(1) FUNDS INDEX(2)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Since inception (7/12/95)(3) 7.60% 4.88% 4.24%
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500 Index) is a
widely recognized, unmanaged index of a selected portfolio of market
activity based on the aggregate performance 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) The Lipper Growth & Income Fund Index is composed of 30 funds which
combine a growth of earnings orientation and an income requirement for
level and/or rising dividends. Lipper Mutual Funds indices are equally
weighted, composed of the largest mutual funds within their respective
investment objectives, and adjusted for the reinvestment of capital gains
distributions and income dividends.
(3) Date that the Fund commenced operations. The Fund's registration statement
became effective 7/12/95.
Investors should realize that all performance data presented is based
upon past performance during limited periods of time, and that past
performance is no guarantee 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]
Technology 29.6%
Cash/Other 21.9%
Consumer/Retail 14.2%
Financial Service 8.5%
Communication 6.2%
Industrial 5.3%
Health Care 4.4%
Transportation 3.8%
Copper/Mining 2.5%
R.E.I.T.s 2.3%
Manufacturing 1.3%
TOP TEN HOLDINGS
1.
CYPRESS SEMICONDUCTOR CORPORATION
Designs and manufactures digital integrated circuits that are used in
applications of proprietary sub-micron, complementary metal oxide silicon
technologies.
2.
W.R. GRACE & COMPANY
Manufactures and sells specialty chemicals and medical products and offers
healthcare services.
3.
GUIDANT CORPORATION
Designs, develops and manufactures products used in cardiac rhythm
management, coronary artery disease intervention and other minimally invasive
surgery.
4.
U.S. WEST, INC.
Provides local telephone and exchange access services to states in the Great
Plains, Rocky Mountain and Pacific Northwest areas of the United States.
5.
REYNOLDS & REYNOLDS COMPANY
Supplies information processing systems, including standard and custom
business forms and computer systems, to automotive, professional, medical and
general business markets.
6.
VOLVO AB
Manufactures passenger cars, trucks, buses, marine and industrial engines and
aerospace equipment. More than 85% of the company's sales are outside of
Sweden, with the largest markets in Western Europe and North America.
7.
DURACRAFT CORPORATION
Manufactures and markets consumer household products. The company's product
line consists of over 60 different humidifiers, heaters and fans.
8.
ITT CORPORATION
A diversified conglomerate with a wide range of subsidiaries. The company
maintains life, property and casualty insurance interests, conducts consumer
and commercial lending operations, compiles telephone directories, operates
hotels, supplies automotive manufacturers, manufactures electronic products,
and builds defense products.
9.
ROCK BOTTOM RESTAURANTS, INC.
Operates Rock Bottom Brewery and Old Chicago restaurants. These restaurants
provide casual dining that features micro-brewed and specialty beers.
10.
MONSANTO COMPANY
Manufactures and sells worldwide a diversified line of chemical and
agricultural products, pharmaceuticals, low-calorie sweeteners, plastics and
man-made fibers.
9
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- -------------------------------------------------------------------------------
AEROSPACE -- 1.1%
ECC International Corporation 60,000 $ 727,500
Tracor, Inc. 25,000 412,500
- -------------------------------------------------------------------------------
1,140,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ALUMINUM -- 0.9%
MAXXAM, Inc. 908,812
- -------------------------------------------------------------------------------
908,812
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BANKS -- 7.4%
Banc One Corporation(1) 32,000 1,168,000
Bank of New York - Warrants Exp. 11/29/98 22,500 722,813
Commercial Federal Corporation 30,000 1,072,500
Corestates Financial Corporation(1) 17,500 640,938
First Interstate Bancorp(1) 7,500 755,625
Keystone Financial, Inc.(1) 17,500 560,000
Marshall & Ilsley Corporation(1) 18,000 452,250
Mellon Bank Corporation(1) 25,000 1,115,625
Norwest Corporation(1) 25,000 818,750
Premier Bancorp, Inc.(1) 10,000 222.500
- -------------------------------------------------------------------------------
7,529,001
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BIOTECHNOLOGY -- 1.5%
Bio-Vascular, Inc. 25,000 450,000
Genentech, Inc. 12,000 583,500
Molecular Dynamics, Inc. 60,000 480,000
- -------------------------------------------------------------------------------
1,513,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BUSINESS SERVICES -- 0.9%
Moore Corporation Ltd.(1) 30,000 603,750
US Office Products Company 20,000 302,500
- -------------------------------------------------------------------------------
906,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CHEMICALS -- 1.9%
Applied Extrusion Technologies, Inc. 25,000 459,375
W.R. Grace & Company(1) 30,000 1,468,500
- -------------------------------------------------------------------------------
1,927,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CLOTHING/RETAIL -- 2.3%
Sport-Haley, Inc. 50,000 475,000
Vans, Inc. 126,000 913,500
Warnaco Group, Inc., Class A(1) 40,000 960,000
- -------------------------------------------------------------------------------
2,348,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL SERVICES -- 4.7%
America Online, Inc. 8,500 $ 584,375
Educational Alternatives, Inc. 65,000 991,250
Manpower, Inc.(1) 30,000 870,000
National Education Corporation 125,000 1,000,000
Personnel Group of America, Inc. 50,300 704,200
Prepaid Legal Services, Inc. 85,000 658,750
- -------------------------------------------------------------------------------
4,808,575
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMMUNICATIONS -- 3.2%
AT&T Corporation(1) 18,000 1,183,500
Data Translation, Inc. 55,000 976,250
DSP Communications, Inc. 32,000 1,056,000
- -------------------------------------------------------------------------------
3,215,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS -- 5.6%
Cirrus Logic, Inc. 17,000 973,250
Cyrix Corporation 22,000 838,750
Pinnacle Systems, Inc. 15,000 461,250
PixTech, Inc. 35,000 323,750
Rasterops 65,000 511,875
Seagate Technology, Inc. 25,000 1,053,125
Sequent Computer Systems, Inc. 40,000 795,000
Western Digital Corporation 45,000 714,375
- -------------------------------------------------------------------------------
5,671,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 2.4%
Accom, Inc. 50,000 437,500
Adobe Systems, Inc.(1) 16,000 828,000
Computer Management Sciences, Inc. 10,400 145,600
Oracle Corporation 27,000 1,036,125
- -------------------------------------------------------------------------------
2,447,225
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Consumer Electronics -- 3.4%
Duracraft Corporation 27,500 1,240,938
Mackie Designs, Inc. 55,000 797,500
Philips Electronics(1) 15,000 731,250
Scientific Games Holdings Corporation 17,000 635,375
- -------------------------------------------------------------------------------
3,405,063
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DATA PROCESSING SERVICES -- 1.6%
Affiliated Computer Services, Inc., Class A 21,000 614,250
First Data Corporation(1) 16,000 992,000
- -------------------------------------------------------------------------------
1,606,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DATA TELECOMMUNICATIONS -- 1.2%
Comdial Corporation 55,000 687,500
Davox Corporation 45,000 523,125
- -------------------------------------------------------------------------------
1,210,625
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS -- 3.1%
Advance Circuits, Inc. 18,000 $398,250
Flextronics International, Ltd. 45,000 1,158,750
Identix, Inc. 30,300 393,900
ITI Technologies, Inc. 45,000 1,220,625
- -------------------------------------------------------------------------------
3,171,525
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ENERGY SERVICES -- 5.8%
Falcon Drilling Company, Inc. 70,000 892,500
Kerr-McGee Corporation(1) 16,500 915,750
Noble Drilling Corporation(1) 70,000 542,500
Petroleum Geo-Services, Sponsored ADR(2) 33,000 808,500
Ranger Oil, Ltd.(1) 60,000 360,000
Schlumberger, Ltd.(1) 18,500 1,207,125
Sonat Offshore Drilling Company(1) 12,500 407,813
Weatherford Enterra, Inc. 55,000 715,000
- -------------------------------------------------------------------------------
5,849,188
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.9%
Sirrom Capital Corporation(1) 50,000 906,250
- -------------------------------------------------------------------------------
906,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
GAMING/ENTERTAINMENT -- 0.8%
WMS Industries, Inc. 40,000 845,000
- -------------------------------------------------------------------------------
845,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
HEALTHCARE/HMO -- 3.2%
HealthCare COMPARE Corporation 20,000 775,000
Healthsource, Inc. 13,000 625,625
Oxford Health Plans, Inc. 15,000 1,091,250
Surgical Care Affiliates, Inc.(1) 32,500 755,625
- -------------------------------------------------------------------------------
3,247,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS/WARES -- 0.1%
USA Detergents, Inc. 6,500 134,875
- -------------------------------------------------------------------------------
134,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSURANCE -- 2.6%
John Alden Financial Corporation(1) 25,000 565,625
Lincoln National Corporation 21,500 1,013,187
U.S. Facilities Corporation(1) 50,000 1,006,250
- -------------------------------------------------------------------------------
2,585,062
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MANUFACTURING -- 1.0%
Chase Brass Industries, Inc. 8,100 103,275
Percon, Inc. 20,000 230,000
The Carbide/Graphite Group, Inc. 45,000 635,625
- -------------------------------------------------------------------------------
968,900
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
MEDIA -- 1.2%
Emmis Broadcasting Corporation 22,000 $ 690,250
United International Holdings, Inc., Class A 30,000 555,000
- -------------------------------------------------------------------------------
1,245,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & DEVICES -- 3.5%
Guidant Corporation(1) 55,000 1,608,750
Medtronic, Inc.(1) 15,000 806,250
Ventritex, Inc. 55,000 1,182,500
- -------------------------------------------------------------------------------
3,597,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MOTOR VEHICLES AND PARTS SUPPLIERS -- 3.8%
General Motors Corporation(1) 13,500 632,812
Harley-Davidson, Inc.(1) 40,000 975,000
Strattec Security Corporation 65,000 926,250
Volvo AB -- Sponsored ADR(1)(2) 52,000 1,274,000
- -------------------------------------------------------------------------------
3,808,062
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NETWORK SYSTEMS -- 1.7%
3Com Corporation 17,500 796,250
Cisco Systems, Inc. 10,000 690,000
NetStar, Inc. 20,000 210,000
- -------------------------------------------------------------------------------
1,696,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PHARMACEUTICALS -- 1.2%
Matrix Pharmaceutical, Inc. 50,000 700,000
Univax Biologics, Inc. 80,000 540,000
- -------------------------------------------------------------------------------
1,240,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PUBLISHING -- 1.4%
Desktop Data, Inc. 2,000 69,500
Reynolds & Reynolds Company(1) 40,000 1,375,000
- -------------------------------------------------------------------------------
1,444,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
R.E.I.T. -- 2.3%
Bay Apartment Communities, Inc.(1) 50,000 1,075,000
Duke Realty Investments, Inc.(1) 15,000 466,875
Hospitality Properties Trust(1) 30,000 787,500
- -------------------------------------------------------------------------------
2,329,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RAILROADS -- 1.5%
Kansas City Southern Industries, Inc.(1) 15,000 682,500
Union Pacific Corporation(1) 12,000 795,000
- -------------------------------------------------------------------------------
1,477,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
RESTAURANTS -- 3.4%
Applebee's International, Inc.(1) 15,000 $ 408,750
Main Street & Main Inc. 225,000 984,375
Rainforest Cafe, Inc. 35,000 813,750
Rock Bottom Restaurants, Inc. 75,000 1,218,750
- -------------------------------------------------------------------------------
3,425,625
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SEMICONDUCTORS -- 5.0%
Cypress Semiconductor Corporation 40,000 1,545,000
Micron Technology, Inc.(1) 15,000 1,192,500
Texas Instruments, Inc.(1) 15,000 1,198,125
VLSI Technology, Inc. 33,000 1,130,250
- -------------------------------------------------------------------------------
5,065,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SPECIALTY CHEMICALS -- 2.8%
Arcadian Corporation 40,000 815,000
Mississippi Chemical Corporation(1) 40,000 840,000
Monsanto Company(1) 12,000 1,209,000
- -------------------------------------------------------------------------------
2,864,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 1.4%
A+ Communications, Inc. 25,000 381,250
MFS Communications Company, Inc. 117 5,119
Octel Communications Corporation 7,500 261,562
VSI Enterprises, Inc. 125,000 734,375
- -------------------------------------------------------------------------------
1,382,306
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TRANSPORTATION -- 1.8%
Airborne Freight Corporation(1) 35,000 857,500
Atlantic Southeast Airlines, Inc.(1) 40,000 935,000
- -------------------------------------------------------------------------------
1,792,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
UTILITIES -- 2.2%
BCE, Inc.(1) 25,000 840,125
US West, Inc.(1) 30,000 1,413,750
- -------------------------------------------------------------------------------
2,253,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- 88.6% (Cost: $85,618,474) 89,969,719
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS
COPPER MINING -- 0.6%
Freeport McMoRan, Pfd. A 23,000 592,250
- -------------------------------------------------------------------------------
592,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL COMPONENTS -- 1.1%
Atlantic Richfield Company, 9%, 9/15/97 Series(1) 22,500 $ 573,750
Noble Drilling, $1.5 Series 22,000 528,000
- -------------------------------------------------------------------------------
1,101,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Catellus Development Corporation, $3.625 Class B 22,000 891,000
- -------------------------------------------------------------------------------
891,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 0.4%
MFS Communications, 8%, 5/31/99 Series 10,000 416,250
- -------------------------------------------------------------------------------
416,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS -- 3.0% (Cost: $2,975,492) 3,001,250
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- -------------------------------------------------------------------------------
ENERGY -- 1.2%
Box Energy Corporation, 8.25%, Due 12/01/02 600,000 624,000
Cross Timbers Oil Company, 5.25%, Due 11/01/03 750,000 637,500
- -------------------------------------------------------------------------------
1,261,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ELECTRONIC COMPONENTS -- 1.0%
Emerson Radio Corporation 144A, 8.50%, Due 08/15/02 500,000 485,000
Sanmina Corporation 144A, 5.50%, Due 08/15/02 500,000 525,000
- -------------------------------------------------------------------------------
1,010,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.8%
VLSI Technology, Inc., 8.25%, Due 10/01/05 750,000 766,875
- -------------------------------------------------------------------------------
766,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.2%
Sandoz Capital, 144A, 2%, Due 10/06/02 250,000 211,250
- -------------------------------------------------------------------------------
211,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CONSUMER & SPECIALITY RETAIL -- 1.0%
Staples, Inc. 144A, 4.50%, Due 10/01/00 1,000,000 1,050,000
- -------------------------------------------------------------------------------
1,050,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRECIOUS METALS -- 0.5%
Coeur d'Alene Mines Corporation, 6.375%, Due 01/31/04 500,000 489,375
- -------------------------------------------------------------------------------
489,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDUSTRIAL COMPONENTS -- 0.3%
Cooper Industries, Inc., 7.05%, Due 01/01/15 300,000 301,500
- -------------------------------------------------------------------------------
301,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
IRON/STEEL -- 0.5%
USX Corporation, 7%, Due 06/15/17 500,000 476,250
- -------------------------------------------------------------------------------
476,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION -- 0.5%
Reno Air, Inc. 144A, 9.0%, Due 09/30/02 500,000 $ 502,500
- -------------------------------------------------------------------------------
502,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
GENERAL MERCHANDISE STORES -- 1.0%
Federated Department Stores, 5.0%, Due 10/01/03 1,000,000 1,027,500
- -------------------------------------------------------------------------------
1,027,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS -- 7.0% (Cost: $6,954,382) 7,096,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.6% (Cost: $95,548,348) 100,067,719
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------------
Cash (699,374)
Repurchase Agreement 4,724,000
State Street Bank and Trust Company, 5.25%,
dated 9/29/95, due 10/2/95 majority value,
$4,726,066 (collateralized by $4,295,000 par
value U.S. Treasury Notes, 7.625%, due 11/15/22)
- -------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS -- 3.9% 4,024,626
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OTHER ASSETS, NET -- (2.5%) (2,553,315)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
(1) Income Producing Security
(2) ADR -- American Depository Receipt
The accompanying notes are integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
- -------------------------------------------------------------------------------
Investments, at value (Cost: $95,548,348) $ 100,067,719
Cash and cash equivalents 4,024,626
Receivable for investments sold 2,919,762
Receivable for fund shares subscribed 1,503,097
Dividends/interest receivable 156,675
- -------------------------------------------------------------------------------
TOTAL ASSETS 108,671,879
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------
Payable for investments purchased 6,678,218
Payable for fund shares redeemed 327,143
Accrued expenses 126,430
Payables, other 1,058
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 7,132,849
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in Capital 97,401,760
Undistributed net income 38,018
Accumulated net realized loss from investments (420,119)
Net unrealized appreciation on investments 4,519,371
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $ 101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRICING OF SHARES: $ 10.76
Net Asset Value, offering and redemption price
per share (net assets of $101,539,030 applicable
to 9,439,090 shares of beneficial interest
outstanding with no par value)
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 7/12/95
(COMMENCEMENT OF OPERATION)
THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 172,624
Dividends (Net of Foreign Tax Withheld of $1.058) 129,664
- -------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 302,288
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
Deferred Organizational Costs 15,520
Investment Advisory fees 123,370
Professional fees 38,851
Custodian and transfer agent fees 38,313
Distribution fees 30,843
Registration and filing fees 7,695
Shareholder reports 7,165
Trustees' fees and expenses 2,513
- -------------------------------------------------------------------------------
TOTAL EXPENSES 264,270
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 38,018
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- -------------------------------------------------------------------------------
Net realized (loss) from investments (420,119)
Net change in unrealized appreciation on investments 4,519,317
- -------------------------------------------------------------------------------
TOTAL NET REALIZED (LOSS) AND
UNREALIZED APPRECIATION ON INVESTMENTS 4,099,252
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,137,270
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
FOR THE PERIOD FROM 7/12/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
OPERATIONS
- -------------------------------------------------------------------------------
Net investment income $ 38,018
Net realized (loss) from investments (420,119)
Net change in unrealized appreciation on investments 4,519,371
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,137,270
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------
Net increase in assets resulting from capital share transactions 97,401,760
- -------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 97,401,760
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------
Beginning of period 0
End of Period $101,539,030
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
FOR THE PERIOD FROM 7/12/95
FOR A SHARE OUTSTANDING (COMMENCEMENT OF OPERATIONS)
THROUGHOUT EACH PERIOD: THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
Net Asset Value, beginning of period $ 10.00
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net investment income 0.01
Net realized gain and unrealized appreciation from investments 0.75
- -------------------------------------------------------------------------------
Total Increase in Net Assets Resulting from Operations 0.76
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Distribution from realized gains on investments --
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.76
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL RETURN 7.60%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------
Net Assets, end of period $ 101,539,030
Ratio of Expenses to Average Net Assets 1.95%
Ratio of Net Investment Income to Average Net Assets 0.30%
Portfolio Turnover Rate 21%
- -------------------------------------------------------------------------------
</TABLE>
Per share data for each period 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.
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Growth & Income 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 July 12, 1995. 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 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. For the
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, 99.9% 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. For the period from July 12,
1995 (Commencement of Operations) through September 30, 1995, approximately
0.1% of the Fund's portfolio 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, 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 provision for federal income taxes for the period from
July 12, 1995 (Commencement of Operations) through 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.
21
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
NOTES TO FINANCIAL STATEMENTS
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased and sold (trade date). Realized gains and losses on securities
transactions are determined on the basis of specific identification.
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 period from July
12, 1995 (Commencement of Operations) through September 30, 1995 was as
follows:
7/12/95--9/30/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Shares sold 10,104,311 $104,352,075
- -------------------------------------------------------------------------------
10,104,311 $104,352,075
- -------------------------------------------------------------------------------
Shares redeemed 665,221 6,950,315
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net increase 9,439,090 $ 97,401,760
- -------------------------------------------------------------------------------
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, Inc. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co"), the Fund's Distributor, is an affiliate, an investment
advisory fee calculated at an annual rate of 1.00% of the average daily net
assets of the Fund. For the period from July 12, 1995 (Commencement of
Operations) through September 30, 1995, the Fund incurred investment advisory
fees of $123,370. RSIM has agreed to reimburse the Fund for any annual
operating expenses, including investment advisory fees, but excluding
distribution fees, 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. John L.
Wallace, 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.
22
<PAGE>
ROBERTSON, STEPHENS & COMPANY
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 $2,513 for the period from July
12, 1995 (Commencement of Operations) through September 30, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co., for distribution
services and has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act, which is reviewed and approved annually by the Fund's Board of
Trustees. Under this Plan, RS & Co. is compensated for services in such
capacity including its expenses in connection with the promotion and
distribution of the Fund's shares. The distribution fee is calculated at an
annual rate of 0.25% of the average daily net assets of the Fund. For the
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, the Fund incurred distribution fees of $30,843.
E. 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
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, the Fund paid brokerage commissions of $18,590 to RS & Co. which
represented 16% 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 short-term investments) measured as a percentage of the Fund's
average monthly investment portfolio for the period for the period from July
12, 1995 (Commencement of Operations) through September 30, 1995, was 21%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $95,548,348. Accumulated net unrealized appreciation on
investments was $4,519,371, consisting of gross unrealized appreciation and
depreciation of $6,273,980 and $1,754,609, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the period from July 12, 1995 (Commencement of Operations) through
September 30, 1995, the cost of investments purchased and the proceeds from
investments sold (excluding short-term investments) were $107,665,794 and
$11,700,803, respectively.
23
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER 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
Kansas City, MO
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
AUDITORS
Price Waterhouse LLP
San Francisco, CA
LEGAL COUNSEL
Ropes & Gray
Boston, MA
This report is submitted for the information of shareholders of The Robertson
Stephens Growth & Income Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective
prospectus.
Published November 21, 1995
24
<PAGE>
ROBERTSON, STEPHENS & COMPANY
THE ROBERTSON STEPHENS MUTUAL FUNDS
In addition to THE GROWTH & INCOME 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 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.
THE VALUE+GROWTH FUND
A GROWTH FUND FOR VALUE CONSCIOUS INVESTORS -- Invests in mid-cap growth
companies with favorable price/earnings ratios, in sectors with the potential
for above average growth. Ability to short sell. No load. Managed by Ron
Elijah.
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 GR INC under the heading Robertson
Stephens. Its computer quotation symbol is RSGIX.
