<PAGE>
EMERGING GROWTH
ROBERTSON STEPHENS MUTUAL FUNDS
The Emerging Growth Fund
Semi-Annual Report
September 30, 1995
[GRAPHIC]
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
FUND PHILOSOPHY
The Robertson Stephens Emerging Growth Fund seeks to invest in small, rapidly
growing companies primarily in the technology, medical and services
industries. The Fund is actively managed, involving hands-on fundamental
research including extensive travel and visits with company managements. The
Fund seeks to invest in companies that are growing 25-40% annually, are
market share leaders and are managed by winning executives who can
consistently execute in today's competitive business environment. The Fund is
intended for investors with long-term investment goals.
CONTENTS
1 Fund Highlights
2 Report to Shareholders
8 Fund Performance
9 Portfolio Summary
10 Schedule of Net Assets
14 Statement of Net Assets
15 Statement of Operations
16 Statement of Changes in Net Assets
17 Financial Highlights
18 Notes to Financial Statements
21 Administration
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
INVESTORS REFOCUS ON HEALTH CARE
Continued commitment to health care stocks enhanced the Fund's performance
this last quarter.
HMO BUSINESS IS BOOMING
Managed care industry fundamentals are improving, especially for HMOs, where
enrollment growth, an enhanced pricing environment, consolidation and low
stock price valuations make for attractive investments.
SMALL AND MID-CAP PROFIT OUTLOOK EXCELLENT
Corporate profitability seems to be slowing, enhancing the appeal of small
and mid-cap emerging growth stocks which can sustain double-digit growth.
HIGH-TECH MAIL ORDER SALES EXPLODE
In the service sector high tech mail order distributors are poised for rapid
expansion in the consumer market. The revenues of catalog retailers of PC
hardware and software are growing 40-50% annually.
ELECTRONIC ENTERTAINMENT MORE PERVASIVE
A burgeoning entertainment software industry, specifically
video games, offers selective opportunities.
1
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
FUND MANAGER
[PHOTO]
DEAR SHAREHOLDER:
We are pleased to report that our continued commitment to health care stocks
has enhanced the Fund's performance for the quarter ended September 30, 1995.
With 40 percent of our portfolio invested in health care related equities,
the Fund's net asset value per share increased 16.01 percent, versus the S&P
500's gain of 8.06 percent and the NASDAQ Industrials' gain of 10.91 percent
for the same period.
Even prior to publicity generated by the recent Republican Medicare proposal,
industry fundamentals for managed care, specifically HMO's, were showing
definite signs of improvement. The Fund's 20 percent weighting in HMOs was
instrumental in driving the Fund's performance last quarter.
We have remained focused on the health care sector with our largest holdings
in Oxford Health Plans, PacifiCare Health Systems and HBO & Company.
"The Fund's STRONG INVESTMENTS in HMOs were INSTRUMENTAL in driving the Fund's
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
HEALTH CARE -- THE INVESTMENTS BEAR FRUIT
We believe that the improvement in health care industry fundamentals
which we witnessed this past summer should continue. We intend to
maintain a strong position in HMOs based on:
1. Continued acceleration in enrollment growth, largely stimulated by
membership conversion from high-cost indemnity plans to HMOs. By converting,
it is not uncommon to experience annual premium savings as high as $1000 per
person*.
2. Improvements in the industry pricing environment. The management teams of
several leading companies project 2-6 percent increases for 1996, following
the dismal 1-2 percent increases in commercial rates experienced in 1995. The
traditional price umbrella maintained by indemnity companies is likely to be
raised about 10 percent.
3. Consolidation discussions among the HMOs and indemnity insurers are
generating investor interest in the sector. United Healthcare and Humana have
started to acquire the group health businesses of large indemnity insurers,
Metra Health and Emphesys. There is also evidence that the large insurers,
intent on staying in health care, are interested in possibly buying HMOs to
strengthen their long-term position.
4. The revised Medicare proposal in Washington. While it is too soon to
speculate about the final outcome, it does appear that seniors will be given
more options and that Medicare enrollment in HMOs should accelerate.
5. We believe the earnings disappointments experienced by some companies
earlier this year are history and positive surprises should unfold in
subsequent quarters.
6. Finally, stock price valuations are near historic lows with price earnings
ratios one-half to two-thirds of current expected growth rates. With profit
momentum slowing in many basic industries, and a 5 percent increase forecast
for S&P 500 earnings in 1996, the double-digit gains expected from HMO
earnings should prove attractive to investors.
*Company Interim Financial Reports from Oxford Health Plans and
United Healthcare Corporation.
performance last quarter."
3
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
CATALOG RETAILERS
SERVICES -- MAIL ORDER DISTRIBUTION: A HIGH-TECH BENEFICIARY
Our investments in the service sector are focused on companies poised for
rapid expansion within the consumer market. We are especially interested in
high-tech mail order distributors.
Revenues of catalog retailers of PC hardware and software are growing an
impressive 40-50% annually. The market opportunity looms large with estimates
that only 35% of US households have a PC, and that many of these are
technologically obsolete today*. The current upgrade cycle, driven by Windows
95, should stimulate additional demand for at least another six months.
Catalog retailers' operating profit margins are at least double those of
store based competitors and the business is much less capital intensive.
[PHOTO]
INVESTMENT MANAGEMENT
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Additionally, catalog retailers of PC hardware and software are best
positioned to take advantage of alternative selling methods which are
emerging, such as the Internet and interactive TV shopping. They already have
established databases and fulfillment capability and can readily serve this
new distribution channel.
We decided to participate in this exciting, emerging industry by selecting
three of the largest and best managed catalog retailers. We believe they are
the best positioned to benefit from short-and long-term business fundamentals.
TECHNOLOGY WATCH
With 18 percent of the portfolio invested in technology stocks, we're
maintaining a basic market weighting in the sector. While we are still
convinced the fundamentals are strong in this sector, we have some near-term
valuation concerns. We're comfortable with our technology holdings however,
especially since they're diversified across industry sub-sectors, with
representation in client server software, semiconductors, semiconductor
equipment, networking and selective hardware.
CONSUMER ENTERTAINMENT -- VIDEO GAME SOFTWARE SUCCESS
One of our newest investment endeavors is to identify opportunities within
the burgeoning entertainment software industry.
Entertainment software sales for the new 32-bit platforms, Sega Saturn, Sony
PlayStation, and CD-Rom PCs, are off to a fast start. Sony sold over 100,000
*CDW Computers, Microwarehouse Financial Reports
5
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
VIDEO GAMES
PlayStations on the first weekend of introduction in mid-September. Sega
claims to have sold over 120,000 units since introducing its new product this
May.
Declining hardware prices, enhanced graphics, video and sound, greater
interactivity, and richer content have been the main drivers of increased
demand for these products. Nearly all PCs shipped today have CD-ROM
capability, which further develops the market potential for these products.
We believe the purchase cycle in this sector is just starting, with new
products offering greatly improved graphics and game quality now available,
and with expectations for renewed consumer interest as the Christmas season
approaches.
"Catalog retailers' operating PROFIT margins are at least DOUBLE those store
based competitors
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
We have made selective investments in five of the leading video game and
software suppliers, and anticipate they will continue to benefit from
continued acceptance of the new 32-bit platform and CD-Rom PCs. The outlook
for 1996 in this entertaining sector is optimistic as platform population
growth accelerates.
AS THE YEAR COMES TO A CLOSE -- LOOKING AHEAD
We foresee a gradual, but steady, sector rotation toward health care and
services, and away from technology. We've seen some of that this summer, with
some funds reducing their weighting in technology, and increasing holdings
elsewhere.
There is evidence that the rapid expansion in corporate profit margins (which
we've seen since 1990) is slowing. In 1996 it may slow even further, so that
the overall gains in corporate profitability which we've experienced in last
five years will slow dramatically as well. This will make small and mid-cap
emerging growth stocks that can continue to exhibit double-digit growth
relatively more attractive. Our job is to find those stocks!
Thank you for your ongoing support of The Robertson Stephens Emerging
Growth Fund.
Sincerely,
/s/ Bob Czepiel
BOB CZEPIEL
Portfolio Manager
and the business is much less capital intensive."
7
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
FUND PERFORMANCE
Results of a hypothetical $10,000 investment
in The Robertson Stephens Emerging Growth Fund and the S&P 500 Index(1)
IF INVESTED ON NOVEMBER 30, 1987(2)
<TABLE>
<CAPTION>
EMERGING GROWTH
EGF S&PDIV
- ---------------------------------------
<S> <C> <C>
11/30/87 $10,000 $10,000
12/87 $12,611 $10,763
3/88 $13,892 $11,375
6/88 $15,222 $12,132
9/88 $14,114 $12,174
12/88 $14,383 $12,546
3/89 $15,728 $13,432
6/89 $16,709 $14,619
9/89 $18,924 $16,144
12/89 $20,776 $16,516
3/90 $21,139 $16,017
6/90 $24,638 $17,023
9/90 $19,290 $14,682
12/90 $22,765 $15,998
3/91 $29,339 $18,316
6/91 $26,862 $18,275
9/91 $31,544 $19,254
12/91 $36,140 $20,869
3/92 $35,561 $20,309
6/92 $29,428 $20,726
9/92 $28,974 $21,381
12/92 $35,218 $22,459
3/93 $30,891 $23,451
6/93 $30,744 $23,548
9/93 $35,365 $24,162
12/93 $37,759 $24,725
3/94 $38,578 $23,780
6/94 $35,428 $23,862
9/94 $41,014 $25,051
12/94 $40,765 $25,040
3/95 $43,213 $27,487
6/95 $42,392 $30,070
9/95 $49,180 $32,493
</TABLE>
CUMULATIVE RETURNS
<TABLE>
<CAPTION>
FOR THE PERIODS ENDED 9/30/95 EMERGING GROWTH S & P NASDAQ
FUND 500 INDUSTRIALS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Three months 16.01% 8.06% 10.91%
- --------------------------------------------------------------------------------------------------------------------------
Six months 13.81% 18.21% 22.45%
- --------------------------------------------------------------------------------------------------------------------------
Nine months 20.64% 29.76% 30.23%
- --------------------------------------------------------------------------------------------------------------------------
One year 19.91% 29.74% 26.26%
- --------------------------------------------------------------------------------------------------------------------------
Since inception (11/30/87) 391.80% 224.93% 222.29%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
FOR THE PERIODS ENDED 9/30/95 EMERGING GROWTH S & P NASDAQ
FUND 500 INDUSTRIALS
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Three Years 19.29% 14.97% 16.50%
- --------------------------------------------------------------------------------------------------------------------------
Five years 20.57% 17.22% 21.65%
- --------------------------------------------------------------------------------------------------------------------------
Since inception (11/30/87) 22.53% 16.22% 16.10%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index 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) Date that the Fund commenced operations.
(3) The NASDAQ Industrial Index is an unmanaged index of a subset of the
NASDAQ national market system issues, exclusive of warrants, and common
stocks traded in NASDAQ that are not part of the NASDAQ National Market
System. This index excludes the issues of insurance companies,
transportation companies, utilities, banks, and finance-related companies.
The results shown are adjusted for stock splits and stock dividends.
Investors should realize that all performance data presented is based upon
past performance during limited periods of time, and that 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
[GRAPHIC]
Top Ten Holdings
1.
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.
2.
PACIFICARE HEALTH SYSTEMS
A regionally focused health care company providing a wide range of
managed health care products.
3.
HBO & COMPANY
Designs and sells computerized information systems to the health
care industry.
4.
UNITED HEALTHCARE CORPORATION
Owns and manages HMOs and provides specialty managed care services to
individuals through employers, employee groups, insurers and HMO
operators.
5.
UNITED WASTE SYSTEMS, INC.
Provides residential, commercial and industrial customers with
integrated, non-hazardous solid waste management services that include
landfill disposal and waste collection.
6.
PHYCOR, INC.
An operator of multi-specialty medical clinics. These clinics provide
a broad range of medical services through an organized physician group
practice representing various medical specialties, ranging from
general medicine to highly focused sub-specialties.
7.
HEALTHSOURCE, INC.
Owns and manages HMOs.
8.
SOFTKEY INTERNATIONAL, INC.
Publishes and markets consumer-oriented software applications focusing
on the productivity and lifestyle categories.
9.
MID ATLANTIC MEDICAL SERVICES, INC.
A holding company whose subsidiaries are active in managed health
care through HMOs. The company provides services to small employer
groups, self insured employers, indemnity carriers and multi-state
employers. Mid Atlantic also provides home health care and non-risk
mental health services.
10.
HEALTH CARE AND RETIREMENT, INC.
Provides long-term care, skilled nursing and rehabilitative services
in the United States.
9
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
BIOTECHNOLOGY - 0.7%
Cephalon, Inc. 43,300 $ 1,190,750
- -------------------------------------------------------------------------
$ 1,190,750
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 3.2%
Cirrus Logic, Inc. 19,000 1,087,750
Cyrix Corporation 38,200 1,456,375
Mylex Corporation 60,000 1,020,000
Read-Rite Corporation 42,500 1,551,250
Western Digital Corporation 46,050 731,044
- -------------------------------------------------------------------------
5,846,419
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
COMPUTER SOFTWARE - 8.5%
Legato Systems Inc. 10,000 265,000
National Instruments Corporation 36,700 743,175
NetManage, Inc. 20,200 479,750
Number Nine Visual Technology Corporation 36,700 605,550
Premenos Technology Corporation 36,400 1,183,000
Remedy Corporation 22,400 789,600
Sierra On-Line, Inc. 19,900 781,075
Softkey International, Inc. 100,900 4,464,825
Spectrum Holobyte, Inc. 216,900 2,738,362
Symantec Corporation 88,900 2,667,000
Tivoli Systems, Inc. 23,600 669,650
- -------------------------------------------------------------------------
15,386,987
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 12.5%
Baby Superstore, Inc. 22,450 1,013,057
Books a Million, Inc. 106,400 1,875,300
Cannondale Corporation 91,700 1,513,050
Creative Computers, Inc. 28,700 846,650
Gymboree Corporation 105,100 3,166,138
Hollywood Entertainment 25,000 539,062
Kohls Corporation 74,100 3,843,938
Micro Warehouse, Inc. 21,200 969,900
Nautica Enterprises, Inc. 67,700 2,318,725
PetSmart, Inc. 117,150 3,953,813
Tiffany & Co.(1) 62,700 2,625,562
- -------------------------------------------------------------------------
22,665,195
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
CONSUMER TECHNOLOGY - 4.7%
Acclaim Entertainment 141,400 $ 3,641,050
CDW Computer Centers Inc. 21,200 1,128,900
Electronic Arts 98,700 3,627,175
- -------------------------------------------------------------------------
8,397,175
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
DATA COMMUNICATIONS/TELECOMMUNICATIONS - 6.0%
3Com Corporation 84,900 3,862,950
Bay Networks 37,000 1,974,875
Colonial Data Technologies 91,600 1,694,600
Network General Corporation 38,300 1,579,875
P-Com, Inc. 38,800 1,736,300
- -------------------------------------------------------------------------
10,848,600
- -------------------------------------------------------------------------
ENVIRONMENTAL SERVICES - 2.7%
United Waste Systems, Inc. 118,800 4,959,900
- -------------------------------------------------------------------------
4,959,900
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
FINANCIAL SERVICES - 1.5%
Credit Acceptance Corporation 100,000 2,700,000
- -------------------------------------------------------------------------
2,700,000
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
HEALTH CARE SERVICES - 12.1%
Advantage Health 60,800 2,067,200
Arbor Health Care Company 184,600 4,291,950
Express Scripts, Inc. Class A 2,000 88,000
Horizon/CMS Healthcare Corporation 157,700 3,587,675
Mariner Health Group, Inc. 150,800 2,130,050
Pediatrix Medical Group Inc. 30,000 615,000
PhyCor, Inc. 138,450 4,741,912
United Dental Care, Inc. 11,500 345,000
Value Health, Inc. 151,600 4,017,400
- -------------------------------------------------------------------------
21,884,187
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
HEALTH MAINTENANCE ORGANIZATIONS - 19.8%
Coventry Corporation 115,600 $ 2,283,100
Healthsource, Inc. 96,200 4,629,625
Mid Atlantic Medical Services 222,900 4,374,412
Oxford Health Plans 95,400 6,940,350
PacifiCare Health Systems 87,200 5,929,600
Quintiles Transnational Corporation 33,200 1,958,800
Sierra Health Services 98,000 2,450,000
United Healthcare Corporation(1) 114,800 5,610,850
Wellcare Management Group, Inc. 66,300 1,541,475
- -------------------------------------------------------------------------
35,718,212
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
LONG TERM HEALTH CARE - 3.9%
Health Care and Retirement, Inc. 135,000 4,336,875
The Multicare Companies, Inc. 112,900 2,624,925
- -------------------------------------------------------------------------
6,961,800
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
MEDICAL SERVICES - 5.5%
American Oncology Resources, Inc. 14,000 602,000
CompDent Corporation 56,000 1,638,000
Exogen, Inc. 21,200 312,700
HBO & Company(1) 90,100 5,631,250
MedPartners, Inc. 55,000 1,732,500
- -------------------------------------------------------------------------
9,916,450
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
OTHER SERVICES - 6.0%
Corporate Express, Inc. 155,300 3,785,437
Landstar Systems, Inc. 129,000 3,112,125
Sylvan Learning Systems, Inc. 124,700 3,959,225
- -------------------------------------------------------------------------
10,856,787
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
RESTAURANTS - 1.8%
Boston Chicken, Inc. 78,000 2,037,750
Rock Bottom Restaurants 71,500 1,161,875
- -------------------------------------------------------------------------
3,199,625
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - 3.8%
Act Manufacturing 25,000 $ 318,750
Burr-Brown Corporation 46,100 1,751,800
Integrated Device Technology, Inc. 34,000 850,000
Synopsys, Inc. 30,800 947,100
VLSI Technology, Inc. 84,900 2,907,825
- -------------------------------------------------------------------------
6,775,475
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL COMMON STOCKS - 92.7% (Cost:$134,241,345) 167,307,562
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS
- -------------------------------------------------------------------------
Applied Micro Circuits Corporation
Series 3 - Restricted(2) 2,381 43,953
Managed Health Network, Inc.
Series B - Restricted(2) 500 72,930
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 0.1%(Cost:$100,001) 116,883
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL INVESTMENTS - 92.8%(Cost:$134,341,346) 167,424,445
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------
Cash 461
Repurchase Agreement 15,755,000
State Street Bank and Trust Company, 5.25%, dated
9/29/95, due 10/2/95, maturity value $15,759,595
(collateralized by $14,320,000 par value U.S. Treasury
Notes, 7.625%, due 11/15/22).
- -------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 8.7% 15,755,461
- -------------------------------------------------------------------------
OTHER ASSETS, NET - (1.5)% (2,717,463)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL NET ASSETS - 100% $180,462,443
- -------------------------------------------------------------------------
</TABLE>
(1) Income producing security.
(2) See 4d in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------
<S> <C>
Investments, at value (Cost: $134,341,346) $167,424,445
Cash and cash equivalents 15,755,461
Receivable for investments sold 105,300
Receivable for fund shares subscribed 1,015,446
Dividends/interest receivable 12,589
- -------------------------------------------------------------------------
TOTAL ASSETS 184,313,241
- -------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------
Payable for investments purchased 3,559,438
Payable for fund shares redeemed 136,209
Accrued expenses 155,151
- -------------------------------------------------------------------------
TOTAL LIABILITIES 3,850,798
- -------------------------------------------------------------------------
TOTAL NET ASSETS $180,462,443
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------
Paid in capital 135,153,948
Accumulated net realized gain from investments 12,225,396
Net unrealized appreciation on investments 33,083,099
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL NET ASSETS $180,462,443
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
PRICING OF SHARES: $ 20.43
Net Asset Value, offering and redemption price per
share (net assets of $180,462,443 applicable to
8,832,733 shares of beneficial interest outstanding
with no par value)
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------
Interest $ 577,465
Dividends 20,300
Other Income 31,441
- -------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 629,206
- -------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------
Investment advisory fees 861,209
Distribution fees 215,302
Custodian and transfer agent fees 169,600
Professional fees 40,400
Shareholder reports 28,300
Trustees' fees and expenses 11,250
Registration and filing fees 17,250
Other 7,275
- -------------------------------------------------------------------------
TOTAL EXPENSES 1,350,586
- -------------------------------------------------------------------------
NET INVESTMENT (LOSS) (721,380)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/
(DEPRECIATION) ON INVESTMENTS
- -------------------------------------------------------------------------
Net realized gain from investments 8,396,078
Net change in unrealized appreciation on investments 13,653,332
- -------------------------------------------------------------------------
Total Net Realized Gain and Unrealized
Appreciation on Investments 22,049,410
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $21,328,030
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
9/30/95 YEAR ENDED
(UNAUDITED) 3/31/95
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
<S> <C> <C>
Net investment (loss) $ (721,380) $ (1,654,135)
Net realized gain from investments 8,396,078 6,598,824
Net change in unrealized appreciation on investments $ 13,653,332 15,035,796
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 21,328,030 19,980,485
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Realized gains on investments (3,856,609) (19,811,863)
- --------------------------------------------------------------------------------
Total Distributions (3,856,609) (19,811,863)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Net (decrease)/increase in net assets resulting
from capital shares transaction (19,284,314) 13,915,017
- --------------------------------------------------------------------------------
Total Capital Share Transactions (19,284,314) 13,915,017
- --------------------------------------------------------------------------------
TOTAL (DECREASE)/INCREASE IN NET ASSETS (1,812,893) 14,083,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 182,275,336 168,191,697
End of period $180,462,443 $182,275,336
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED THREE MONTHS
FOR A SHARE OUTSTANDING 9/30/95 YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED
THROUGHOUT EACH PERIOD: (UNAUDITED) 3/31/95 3/31/94 3/31/93 12/31/92 12/31/91 12/30/90
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.36 $ 18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67 $ 11.46
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment (loss) (0.08) (0.17) (0.40) (0.02) (0.15) (0.09) --
Net realized gain/(loss) and unrealized
appreciation/(depreciation)
on investments 2.57 2.26 4.06 (2.04) (0.31) 6.82 1.07
- -----------------------------------------------------------------------------------------------------------------------------------
Total Increase/(Decrease) in Net Assets
Resulting from Operations 2.49 2.09 3.66 (2.06) (0.46) 6.73 1.07
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions from realized gains
on investments (0.42) (2.10) -- -- (0.27) (0.86) --
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.43 $18.36 $18.37 $14.71 $16.77 $17.50 $11.67
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 13.80% 12.01% 24.88% (12.28)% (2.55)% 58.70% 9.57%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period (000's) $180,462 $182,275 $168,192 $228,893 $277,531 $141,929 $22,931
Ratio of Expenses to Average Net Assets 1.57% 1.56% 1.60% 1.54% 1.49% 1.59% 1.88%
Ratio of Net Investment (Loss) to
Average Net Assets (0.84)% (0.96)% (1.27)% (0.61)% (0.92)% (0.68)% (0.02)%
Portfolio Turnover Rate 107% 280% 274% 43% 124% 147% 272%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
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.
17
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Notes to Financial Statements
The Robertson Stephens Emerging 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 November 30, 1987. 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. At
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. At 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 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 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
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
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 1,789,043 $ 33,855,779
Shares reinvested 203,101 3,716,735
- ---------------------------------------------
1,992,144 37,572,514
- ---------------------------------------------
Shares redeemed (3,084,717) (56,856,828)
- ---------------------------------------------
- ---------------------------------------------
Net (decrease) (1,092,573) $(19,284,314)
- ---------------------------------------------
- ---------------------------------------------
4/1/95 - 9/30/95 SHARES AMOUNT
- ---------------------------------------------
Shares sold 5,163,070 $ 94,127,247
Shares reinvested 1,070,767 18,663,580
- ---------------------------------------------
6,233,837 112,790,827
- ---------------------------------------------
Shares redeemed (5,463,027) (98,875,810)
- ---------------------------------------------
- ---------------------------------------------
Net increase 770,810 $ 13,915,017
- ---------------------------------------------
</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, 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 six months ended September 30, 1995, the Fund
incurred investment advisory fees of $861,209. 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. 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.
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
19
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Notes to Financial Statements (continued)
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 quarter ended
September 30, 1995, the Fund incurred distribution fees of $215,302.
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 six
months ended September 30, 1995, the Fund paid brokerage commissions of
$67,905 to RS & Co. which represented 32% 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 six months ended September 30,
1995, was 107%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $136,401,752. Accumulated net unrealized appreciation on
investments was $31,022,693, consisting of gross unrealized appreciation and
depreciation of $37,980,974 and $6,958,281, 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 short-term
investments) were $160,604,878 and $186,555,703, respectively.
D. RESTRICTED SECURITIES:
A restricted security is a security which has been purchased through a
private offering and cannot be resold to the general public without prior
registration under the Securities Act of 1933. If the security is
subsequently registered and resold, the issuers would bear the expense of all
registrations at no cost to the Fund. At September 30, 1995, the Fund held
restricted securities with an aggregate value of $116,883 which represented
0.1% of the Fund's total net assets.
<TABLE>
<CAPTION>
ACQUISITION
SECURITY SHARES COST VALUE DATE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Applied Micro Circuits Corporation
Convertible Preferred Stock, Series 3 2,381 $50,001 $43,953 9/14/87
- -----------------------------------------------------------------------------------
Managed Health Network, Inc.
Convertible Preferred Stock, Series B 500 $50,000 $72,930 12/30/87
- -----------------------------------------------------------------------------------
</TABLE>
Each of the above securities was valued based on its common share price
equivalent. Each common share was valued at its fair value according to the
guidelines and procedures adopted by the Fund's Board of Trustees as outlined
in Note 1.a., paragraph 2.
At September 30, 1995, Applied Micro Circuits Corporation Convertible
Preferred Stock, Series 3 was valued at the common share price equivalent of
$1.75, assuming the 2,381 shares of the Convertible Preferred Stock were
converted to 25,116 shares of common stock. Managed Health Network, Inc.
Convertible Preferred Stock, Series B was valued at the common share price
equivalent of $1.6336, assuming the 500 shares of the Convertible Preferred
Stock were converted to 44,642 shares of common stock.
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
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, Inc.
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 Emerging Growth Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective
prospectus.
Published November 21, 1995
The Robertson Stephens Mutual Funds
In addition to THE EMERGING 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 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.
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 Em Gr under the heading Robertson
Stephens. Its computer quotation symbol is RSEGX.
