<PAGE>
VALUE+GROWTH
ROBERTSON STEPHENS MUTUAL FUNDS
The Value+Growth Fund
Annual Report
December 31, 1995
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
FUND PHILOSOPHY
The Robertson Stephens Value+Growth Fund seeks capital appreciation by investing
in companies with favorable relationships between price/earnings ratios and
growth rates, in sectors offering above-average growth potential. The Fund's
strategy is to identify specific business sectors poised to benefit from major
changes in the marketplace and societal trends. Within these sectors, the Fund
conducts bottom-up research, looking for well-managed companies that have low-
multiple valuations relative to their peers and are poised to leverage growth
opportunities. In searching for reasonably priced growth companies, the Fund may
discover poorly managed, overpriced businesses and make "short" investments.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 8
Portfolio Summary 9
Schedule of Net Assets 10
Statement of Net Assets 13
Statement of Operations 14
Statement of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 17
Independent Accountants' Report 20
Administration 20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
THE FALL CORRECTION
The volatility of growth stocks, especially within technology, picked up
momentum as the year advanced. Most technology stocks' fundamentals were
ignored, and a forceful correction set in throughout the end of the quarter.
TECHNOLOGY -- STILL
THE RIGHT PLACE
We remain bullish on the long-term outlook for technology companies. As a result
of the recent correction in technology stocks, we have intensified our efforts
to find great values in this sector and to adjust our portfolio accordingly.
OPPORTUNITIES
IN HEALTH CARE
We believe the health care industry will remain cost-conscious and that managed
care through health maintenance organizations (HMOs) will play an increasing
role in the years to come. We are interested in well-run, low-cost providers
(hospitals and long-term care facilities), drug companies, and device
manufacturers.
TARGETING CORPORATE TRENDS
We believe outsourcing computer services will be a beneficiary of corporate
cost-reduction efforts. We have made initial investments here and look to
increase them as we further develop our theme.
ADDRESSING THE BABY
BOOMER MARKET
As baby boomers enter their peak earning and productivity years, we believe this
should benefit industries like the financial services sector (from an increased
savings and retirement focus), as well as the entertainment and leisure sectors.
Our investments in these areas include fund management, lodging, and leisure
apparel companies.
LOOKING AHEAD
We believe 1996 will offer equity investors a constructive investment
environment of modest growth and low inflation. We look forward to 1996 and
believe our investment themes are well positioned for another good year.
1
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
FUND MANAGER
RONALD E. ELIJAH
Portfolio Manager
The Robertson Stephens
Value+Growth Fund
DEAR SHAREHOLDER:
The Robertson Stephens Value+Growth Fund is pleased to report a 42.70% return
for the 1995 year. We are also particularly happy that the Fund exceeded, for
the third consecutive year, the performance of its two benchmark indices, the
Russell 2000 and the S&P 500. These indices were up 26.21% and 37.53%,
respectively, in 1995. However, while pleased with the Fund's 1995 results, we
are neither happy nor satisfied with the Fund's fourth-quarter negative 14.65%
return. It was significantly outpaced by the Russell 2000 and S&P 500 indices'
respective gains of 1.80% and 5.99% for the December quarter.
Entering the December quarter, we believed the market was positioned to
appreciate due to expected earnings gains, low interest rates, and modest
inflation. We also felt that the companies within the Value+Growth Fund's
portfolio would do well, as their earnings outlook seemed bright. However, while
the overall market did produce gains for investors, the Fund's various growth
stocks (except those in health care) corrected in the quarter. And, even though
many of the companies within the portfolio produced strong earnings gains, their
stocks still declined 10% to 30%. As the quarter
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
progressed, what initially seemed to be a single-industry battering
(semiconductors) turned into a rolling correction that moved throughout the
technology sector -- from semiconductor to software to data communication
stocks. In fact, the correction jumped out of the technology sector and hit the
Fund's interest-sensitive stocks toward the end of the quarter.
Accounting for many of the stock price declines in the quarter was
frustrating since most did not seem to result from deteriorating
fundamentals. It seems that the common problem with a great percentage of the
Fund's investments was that the stocks were up a lot in the first nine months
of the year. Therefore, we believe that as the December quarter progressed,
and the technology stock correction gained momentum, many institutional
investors sold stocks in which they had meaningful gains to lock in profits
for the year. However, as frustrating and difficult as the fourth quarter
was, we have not veered from our long-term investment goal of capital
appreciation through investing in fundamentally strong, reasonably priced
growth companies. Rather, we believe the December quarter's stock price
declines have presented us with an excellent opportunity to search out the
best values and reposition the Fund's investments.
THE FALL CORRECTION
With the conclusion of the December 1995 quarter, the Fund finished its worst
quarterly setback since its May 1992 inception. During 1995, the volatility of
growth stocks, especially within technology, picked up momentum as the year
advanced. For most of the year, the technology sector was exceptionally strong.
In the fourth quarter, we believe a number of technology companies' fundamentals
remained robust, with the exception of the semiconductor industry, which moved
from an overheated situation early in the year to a more normal demand/supply
position. Unfortunately, most technology stocks' strong fundamentals were
ignored in the quarter, and a rolling correction set in.
In the past we have commented on market corrections and the difficulty in
trying to time them. Technology stocks seem to go through significant
corrections about every 18 to 24 months. These stocks suffered 20% or greater
corrections in the summer of 1990, in early 1992, in mid-1994, and now in
late 1995. The '90, '92, and '94 corrections provided investors with excellent
"We remain bullish on the long-term outlook for technology companies."
3
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
"A global push for increased productivity is driving demand for technology
products and services not only in North America, but also throughout the
industrialized world."
opportunities to invest in great growth companies at significant discounts to
their 52-week stock price highs, and at price-earnings multiples below their
long-term growth rate potentials. These corrections usually squeeze the euphoric
excesses out of stocks that unfortunately build up after long prior appreciation
periods of 12 to 18 months. We believe with long-term fundamentals remaining
bright and stock prices down significantly from recent highs, many growth
technology stocks appear to be excellent investment values for 1996.
TECHNOLOGY -- STILL THE RIGHT PLACE
We remain bullish on the long-term outlook for technology companies. As a result
of the recent correction in technology stocks, we have intensified our efforts
to find great values in this sector and to adjust the Value+Growth Fund's
portfolio accordingly. The Fund still has a significant commitment to tech-
nology -- we have more than 50% of our assets invested in the sector, including
data communication, software, computer, computer peripheral, and semiconductor
stocks.
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
INVESTMENT TEAM
RESEARCH
Rod Berry
Bjefke Hofstra
Susan Richardson
Rob Zidar
TRADING
Christopher Beagle
Catherine O'Neill
ADMINISTRATION
Annette Tate
INVESTMENT MANAGEMENT
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
We believe 1996 should be another year of strong demand for technology products.
Corporations in North America and around the world are using technology to
enhance their competitive positions, shortening product cycles through better
engineering and more efficient manufacturing. Instead of new products being
introduced every one to three years, as was typical in the 1970s and early
1980s, companies now bring new products to market every six to twelve months.
Through the use of semiconductor technology, new applications are being
developed and embedded in an ever-expanding list of daily products. Furthermore,
new technology platforms -- such as Intel's Pentium processor, introduced in
1993, and Microsoft's Windows 95, introduced in 1995 -- are expected to be in
full motion in 1996. We believe this, in turn, could lead to further growth and
expansion of the personal computer (PC) in business, home, and school settings,
and could drive millions of PC upgrade purchases.
Demand for technology products and services continues to come from within
existing markets as well as from emerging markets. A global push for increased
productivity is driving demand for technology products and services not only in
North America, but also throughout the industrialized world. During the next
three to five years, we believe U.S. technology suppliers should continue to
experience good demand from domestic companies that continue to push for greater
efficiencies, and strong demand from foreign companies that have begun retooling
and restructuring to become more productive global competitors (something U.S.
companies undertook several years ago). Furthermore, new incremental demand is
arising from the post-Communist world and the emerging markets in Southeast Asia
and Latin America. The Fund has significant investment exposure in global U.S.
technology suppliers that we believe stand to benefit from good domestic and
explosive international demand for technology products and services.
OTHER PORTFOLIO THEMES
While technology is currently the Fund's largest asset allocation area, it has a
number of other operative themes, such as health care. The U.S. is experiencing
a dramatic demographic shift as its population ages in
5
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
the 1990s and into the next decade. Since demand for medical attention increases
with age, we believe this shift should create incremental demand for medical
products and services above the population growth for the next two decades.
Most estimates indicate that the U.S. health care industry reached $1.1 trillion
in 1995 and is projected to grow at a 5-6% rate annually through the year 2000.
We believe the health care industry will remain cost-conscious and that managed
care through health maintenance organizations (HMOs) will play an increasing
role in the years to come. We also believe a balance between managed care and
strong demographic forces will be reached so that low-cost, efficient providers
and suppliers will do well. Therefore, the Fund is interested in well-run, low-
cost providers (hospitals and long-term care facilities), drug companies, and
device manufacturers. Furthermore, we continue to maintain our investments in
HMOs and see the $170 billion Medicare market as the industry's next major
opportunity, much as the private sector was a decade ago.
There are two additional portfolio investment themes that we would like to
mention -- industry restructuring and baby boomer financial awareness.
Since almost no industry has pricing flexibility, business complexity and cost
pressures are intense today. The need for improved productivity is forcing
several
"We believe the underlying environment is still very conducive to equities in
1996 and should push the market higher as the year progresses."
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
companies to evaluate their corporate structure and to outsource basic services
to reduce overhead costs. We believe off-site computer services will be a
beneficiary of these corporate cost-reduction efforts. We have made initial
investments here and look to increase them as we further develop our theme.
Finally, as baby boomers enter their peak earning and productivity years, we
believe this should benefit industries such as the financial services sector
(from an increased savings and retirement focus), as well as the entertainment
and leisure sectors. Our investments here include fund management, lodging, and
leisure apparel companies.
LOOKING AHEAD
As always seems to be the case, the equity market faces a number of challenges
as it enters 1996: (1) Can the market do well after a spectacular 1995?; (2)
Which way are interest rates heading?; (3) Has the economy slowed so much that
it is heading into a recession in late 1996 or 1997?; and (4) What impact will
the presidential election year have on the market? While these are all important
considerations for 1996, we believe the underlying environment is still very
conducive to equities in 1996 and should push the market higher as the year
progresses. In addition, we believe the U.S. economy continues on a path of slow
growth with modest inflation that is likely to keep interest rates in check and
to lead to gradual declines throughout the year.
In our opinion, the strong structural forces guiding the U.S. economy (corporate
restructuring and shifts in demographics) are controlling inflationary pressures
like those pervasive in the 1970s. Furthermore, our valuation work on the market
continues to suggest that the equity market offers excellent value today based
on both trailing and projected earnings relative to inflation and long-term
interest rates. Therefore, we believe 1996 will continue to offer equity
investors a constructive investment environment of modest growth and low
inflation. We look forward to 1996 and believe our investment themes are well
positioned for another good year.
January 31, 1996
Sincerely,
/S/Ronald E. Elijah
RONALD E. ELIJAH
Portfolio Manager
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT
1-800-766-3863.
7
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
FUND PERFORMANCE
Results of a hypothetical $10,000 investment in The Robertson Stephens
Value+Growth Fund and the S&P 500 Index(1)
IF INVESTED ON MAY 12, 19922
[GRAPH]
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
VALUE+GROWTH S&P 500 RUSSELL
FOR THE PERIODS ENDED 12/31/95 FUND INDEX(1) 2000(3)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Three months (14.65)% 5.99% 1.80%
- --------------------------------------------------------------------------------
Six months 1.80% 14.53% 11.40%
- --------------------------------------------------------------------------------
Nine months 24.16% 25.29% 21.17%
- --------------------------------------------------------------------------------
One year 42.70% 37.53% 26.21%
- --------------------------------------------------------------------------------
Since inception (5/12/92)(2) 135.01% 63.60% 58.60%
- --------------------------------------------------------------------------------
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
VALUE+GROWTH S&P 500 RUSSELL
FOR THE PERIODS ENDED 12/31/95 FUND INDEX(1) 2000(3)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Three years 28.78% 15.32% 12.65%
- --------------------------------------------------------------------------------
Since inception (5/12/92)(2) 26.47% 14.49% 13.52%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500 Index) 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's shares were first offered to the public.
(3) The Russell 2000 Index is a market capitalization-weighted index composed of
2,000 U.S. companies with market capitalization ranging from $40 million to $450
million.
Investors should realize that all performance data presented is based upon past
performance during limited periods of time, and past performance is 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 DECEMBER 31, 1995
[GRAPH]
TOP TEN HOLDINGS
1.
NIKE, INC.
Designs and markets a wide variety of athletic footware, apparel, and related
items for competitive and recreational use.
2.
APPLIED MATERIALS, INC.
Develops, manufactures, sells, and services semiconductor wafer fabrication
equipment worldwide. The company's products include deposition, etching, and ion
implantation systems.
3.
3COM CORPORATION
Designs, produces, and markets a broad range of ISO 9000-compliant global data
networking solutions. The company's products include routers, hubs, switches,
and adapters for Ethernet, Token Ring, FDDI, and ATM networks.
4.
CABLETRON SYSTEMS, INC.
Develops and manufactures local area network (LAN) products based on its
integrated network architecture and provides consulting and support systems for
LANs.
5.
OXFORD HEALTH PLANS, INC.
A managed care company. Provides health benefit plans, including HMOs, point-of-
service, and third-party administration of employer-funded benefit plans.
6.
MICROSOFT CORPORATION
Develops, manufactures, licenses, and supports computer software products.
7.
COMPAQ COMPUTER CORPORATION
Designs, develops, manufactures, and markets personal computers for professional
users and consumers.
8.
HEALTHSOURCE, INC.
Owns and manages HMOs.
9.
CISCO SYSTEMS, INC.
Develops and manufactures local area network (LAN) products based on its
integrated network architecture and provides consulting and support systems for
LANs.
10.
BAY NETWORKS, INC.
Develops, manufactures, markets, and supports a comprehensive line of data
networking products and services, as well as software for network design and
configuration solutions.
9
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Schedule of Net Assets
<TABLE>
<CAPTION>
DECEMBER 31,1995 SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- --------------------------------------------------------------------------------
Biotechnology - 1.8%
Amgen, Inc. 350,000 $ 20,781,250
- --------------------------------------------------------------------------------
20,781,250
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 4.5%
3Com Corporation 1,100,000 51,287,500
- --------------------------------------------------------------------------------
51,287,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 13.4%
Adaptec, Inc. 368,000 15,088,000
Compaq Computer Corporation 906,000 43,488,000
Dell Computer 380,000 13,157,500
Hewlett-Packard Company(1) 390,000 32,662,500
Seagate Technology, Inc. 638,000 30,305,000
Sun Microsystems, Inc. 400,000 18,250,000
- --------------------------------------------------------------------------------
152,951,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - 12.5%
Adobe Systems Incorporated(1) 312,000 19,344,000
Cadence Design Systems, Inc. 690,000 28,980,000
Computer Sciences Corporation 400,000 28,100,000
Microsoft Corporation 500,000 43,875,000
Parametric Technology Corporation 340,000 22,610,000
- --------------------------------------------------------------------------------
142,909,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 6.6%
CompUSA, Inc. 400,000 12,450,000
Nike, Inc.(1) 900,000 62,662,500
- --------------------------------------------------------------------------------
75,112,500
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONSUMER ELECTRONICS - 1.3%
Kemet Corporation 510,000 12,176,250
Vishay Intertechnology, Inc. 82,300 2,592,450
- --------------------------------------------------------------------------------
14,768,700
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
<C> <C>
SHARES VALUE
- --------------------------------------------------------------------------------
DATA TELECOMMUNICATIONS - 7.7%
Cabletron Systems, Inc. 595,000 $ 48,195,000
Cisco Systems, Inc. 530,000 39,551,250
- --------------------------------------------------------------------------------
87,746,250
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - 6.6%
Charles Schwab Corporation(1) 821,900 16,540,737
First USA, Inc.(1) 184,000 8,165,000
Green Tree Financial Corporation(1) 510,000 13,451,250
Household International, Inc.(1) 385,000 22,763,125
MBNA Corporation(1) 250,000 9,218,750
Merrill Lynch & Company, Inc.(1) 100,000 5,100,000
- --------------------------------------------------------------------------------
75,238,862
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
HEALTH MAINTENANCE ORGANIZATIONS - 15.4%
Columbia/HCA Healthcare Corporation(1) 500,000 25,375,000
Healthsource, Inc. 1,162,000 41,832,000
Horizon/CMS Healthcare Corporation 100,000 2,525,000
Oxford Health Plans 630,000 46,541,250
PacifiCare Health Systems, Class B 70,000 6,090,000
U.S. Healthcare, Inc.(1) 300,000 13,950,000
United Healthcare Corporation(1) 545,000 35,697,500
Vencor, Inc. 100,000 3,250,000
- --------------------------------------------------------------------------------
175,260,750
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LODGING/RECREATION - 3.2%
Hospitality Franchise Systems, Inc. 215,000 17,576,250
La Quinta Inns, Inc.(1) 235,000 6,433,125
Mirage Resorts, Inc. 350,000 12,075,000
- --------------------------------------------------------------------------------
36,084,375
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NETWORK SYSTEMS - 3.4%
Bay Networks 942,000 38,739,750
- --------------------------------------------------------------------------------
38,739,750
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Schedule of Net Assets (CONTINUED)
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTOR EQUIPMENT - 11.5%
Applied Materials, Inc.(1) 1,410,000 $55,518,750
KLA Instruments Corporation 547,400 14,266,613
Lam Research Corporation 424,200 19,407,150
Novellus Systems, Inc. 403,300 21,778,200
Teradyne, Inc. 788,600 19,715,000
- --------------------------------------------------------------------------------
130,685,713
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEMICONDUCTORS - 8.4%
Altera Corporation 629,000 31,292,750
Atmel Corporation 365,000 8,166,875
Intel Corporation(1) 500,000 28,375,000
LSI Logic Corporation 300,000 9,825,000
Microchip Technology, Inc. 454,200 16,578,300
VLSI Technology, Inc. 80,000 1,450,000
- --------------------------------------------------------------------------------
95,687,925
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - 2.8%
Allen Group(1) 354,000 7,920,750
Frontier Corporation(1) 450,000 13,500,000
LCI International, Inc. 495,000 10,147,500
- --------------------------------------------------------------------------------
31,568,250
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.1%(Cost: $948,763,109) 1,128,821,825
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- --------------------------------------------------------------------------------
Cash 233
- --------------------------------------------------------------------------------
Repurchase Agreement 16,544,000
State Street Bank and Trust Company, 5.00%, dated 12/29/95, due 01/2/96,
maturity value $16,553,191 (collateralized by $12,820,000 par value
U.S. Treasury Notes, 8.75%, due 05/15/17)
- --------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 1.4% 16,544,233
- --------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.5)% (5,214,891)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL NET ASSESTS - 100% $1,140,151,167
- --------------------------------------------------------------------------------
</TABLE>
(1) Income-producing security
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Statement of Net Assets
<TABLE>
<CAPTION>
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
<S> <C>
Investments, at value (Cost: $948,763,109) $ 1,128,821,825
Cash and cash equivalents 16,544,233
Receivable for investments sold 46,500
Receivable for fund shares subscribed 5,695,678
Receivables, other 417,093
- --------------------------------------------------------------------------------
TOTAL ASSETS 1,151,525,329
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 2,023,749
Payable for fund shares redeemed 7,969,344
Accrued expenses 1,381,069
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 11,374,162
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $1,140,151,167
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital 986,869,159
Accumulated net realized loss from investments (26,776,708)
Net unrealized appreciation on investments 180,058,716
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $1,140,151,167
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRICING OF SHARES: $ 22.66
</TABLE>
Net Asset Value, offering and redemption price per share
(Net assets of $1,140,151,167 applicable to 50,318,588 shares
of beneficial interest outstanding with no par value)
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Statement of Operations
<TABLE>
<CAPTION>
NINE MONTHS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Dividends (net of foreign tax withheld of $21,089) $ 1,998,900
Interest 1,143,886
Other Income 6,776
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 3,149,562
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Investment advisory fees 9,702,327
Custodian and transfer agent fees 834,156
Registration and filing fees 305,986
Interest expense 148,037
Shareholder reports 142,430
Professional fees 79,985
Trustees' fees and expenses 41,401
Other 17,598
- --------------------------------------------------------------------------------
TOTAL EXPENSES 11,271,920
- --------------------------------------------------------------------------------
NET INVESTMENT LOSS (8,122,358)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- --------------------------------------------------------------------------------
Net realized loss from investments (25,249,381)
Net change in unrealized appreciation on investments 139,393,491
- --------------------------------------------------------------------------------
TOTAL NET REALIZED LOSS AND UNREALIZED APPRECIATION ON INVESTMENTS 114,144,110
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $106,021,752
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
NINE MONTHS ENDED YEAR ENDED
12/31/95 3/31/95
- --------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- --------------------------------------------------------------------------------
Net investment loss $ (8,122,358) $ (1,115,225)
Net realized loss from investments (25,249,381) (1,344,592)
Net realized gain from options - 455,848
Net realized gain from securities sold short - 73,750
Net change in unrealized appreciation
on investments 139,393,491 39,217,602
Net change in unrealized depreciation on
securities sold short - (103,750)
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS 106,021,752 37,183,633
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Realized gains on investments - (1,566,892)
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (1,566,892)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions 605,226,408 348,785,903
- --------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 605,226,408 348,785,903
- --------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 711,248,160 384,402,644
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of year 428,903,007 44,500,363
End of year $1,140,151,167 $428,903,007
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Financial Highlights
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING PERIOD ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
THROUGHOUT THE PERIOD: 12/31/95(2) 3/31/95 3/31/94 3/31/93(1)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.25 $ 13.56 $ 11.94 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income (0.16) (0.18) (0.04) 0.12
Net realized gain and unrealized appreciation on investments 4.57 5.07 1.99 1.88
- ------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets resulting from operations 4.41 4.89 1.95 2.00
- ------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income - - (0.03) (0.06)
Distributions from realized gain on investments - (0.20) (0.30) -
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
Total Distributions - (0.20) (0.33) (0.06)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 22.66 $ 18.25 $ 13.56 $ 11.94
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 24.16% 36.27% 16.32% 20.05%
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $ 1,140,151,167 $ 428,903,007 $44,500,363 $ 17,833,350
Ratio of Expenses to Average Net Assets 1.45% 1.68% 1.55%(3) 1.33%(3)
Ratio of Net Investment (Loss)/Income to Average Net Assets (1.04)% (1.09)% 0.51%(3) 1.26%(3)
Portfolio Turnover Rate 104% 232% 250% 210%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) From April 21, 1992 (Commencement of Operations) to 3/31/93.
(2) Represents a 9-month period then ended.
(3) If the Fund had paid all of its expenses and had received no
reimbursement from the Adviser, the ratio of expenses to average
net assets for the periods ended March 31, 1994 and March 31, 1993 would
have been 2.35% and 2.71%, respectively, and the ratio of net
investment income/(loss) to average net assets would have been (1.31)%
and (0.12)%, respectively.
Per-share data for each of the periods has been determined by using the
average number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Notes to Financial Statements
The Robertson Stephens Value+Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on May 12, 1992. Prior to the public offering, shares were offered in a
private placement offering on April 21, 1992, at $10 per share, to sophisticated
investors under Section 4(2) of the Securities Act of 1933. The Trust offers
nine series of shares -- The Robertson Stephens Emerging Growth Fund, The
Robertson Stephens Value+Growth Fund, The Robertson Stephens Contrarian Fund,
The Robertson Stephens Developing Countries Fund, The Robertson Stephens Growth
& Income Fund, The Robertson Stephens Partners Fund, The Robertson Stephens
Information Age Fund, The Robertson Stephens Global Natural Resources Fund, and
The Robertson Stephens Global Low-Priced Stock Fund. The assets for each series
are segregated and accounted for separately.
The Value+Growth Fund, for book and tax purposes, has a calendar (12/31) year-
end. These financial statements reflect operations for a nine-month period.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
a. INVESTMENT VALUATIONS:
Marketable securities including options are valued at the last sale price on the
principal exchange or market on which they are traded; or, if there were no
sales that day, at the mean between the closing bid and asked prices. At
December 31, 1995, 100% of the Fund's portfolio was valued in this manner.
Securities for which market quotations are not readily available are valued at
their fair value as determined in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees. The guidelines and procedures use
fundamental valuation methods which include, but are not limited to, the
analysis of: the effect of any restrictions on the sale of the security, product
development and trends of the security's issuer, changes in the industry and
other competing companies, significant changes in the issuer's financial
position, and any other event which could have a significant impact on the value
of the security. At December 31, 1995, no security of the Fund was valued using
these guidelines and procedures.
As its normal course of business, the Fund has invested a significant portion of
its assets in companies within a number of industries in the technology and
telecommunications sectors. Accordingly, the performance of the Fund may be
subject to a greater risk of market fluctuation than that of a fund invested in
a wider spectrum of market or industrial sectors.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy by the
counterparty to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings. The Fund's policy is to limit repurchase
agreement transactions to those parties deemed by the Fund's Investment Adviser
to have satisfactory creditworthiness.
17
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Notes to Financial Statements (CONTINUED)
c. FEDERAL INCOME TAXES:
The Fund has made no provisions for federal income tax for the nine months ended
December 31, 1995. The Fund complied with requirements of the Internal Revenue
Code for qualifying as a regulated investment company so as not to be subject to
federal income tax.
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, sold, or sold short (trade date). Realized gains and losses on
securities transactions are determined on the basis of specific identification.
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 or 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 nine months ended
December 31, 1995 and for the year ended March 31, 1995 were as follows:
<TABLE>
<CAPTION>
4/1/95 - 12/31/95 SHARES AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 71,111,212 $1,642,177,404
Shares reinvested 2,182 54,597
- --------------------------------------------------------------------------------
71,113,394 1,642,232,001
- --------------------------------------------------------------------------------
Shares redeemed (44,296,835) (1,037,005,593)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net increase 26,816,559 $ 605,226,408
<CAPTION>
4/1/94 - 3/31/95 SHARES AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 34,759,244 $ 574,001,458
Shares reinvested 79,555 1,276,754
- --------------------------------------------------------------------------------
34,838,799 575,278,212
- --------------------------------------------------------------------------------
Shares redeemed (14,619,427) (226,492,309)
- --------------------------------------------------------------------------------
Net increase 20,219,372 $ 348,785,903
- --------------------------------------------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund paid Robertson, Stephens & Company
Investment Management, L.P. ("RSIM"), an investment advisory fee during fiscal
1995 calculated at an annual rate of 1.25% of the average daily net assets of
the Fund. (As of January 1, 1996, that rate was reduced to 1% of the average
daily net assets of the Fund.) For the nine months ended December 31, 1995, the
Fund incurred investment advisory fees of $9,702,327. RSIM has agreed to
reimburse the Fund for any annual operating expenses, including investment
advisory fees, but excluding dividend expense for short sales, which exceed the
most stringent limits prescribed by any state in which the Fund's shares are
offered for sale. For the nine months ended December 31, 1995, there was no
expected reimbursement of advisory fees and other expenses.
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
Robertson, Stephens & Company LLC (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
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
Officer of RS & Co. John P. Rohal, a Trustee of the Fund, is a Member of RS
Group and Director of Research for RS & Co. Ronald E. Elijah, Portfolio Manager,
is a Member of RS Group. All affiliated and access persons, as defined in the
1940 Act, follow strict guidelines and policies on personal trading as outlined
in the Fund's Code of Ethics.
c. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested persons
of the Trust, as defined in the 1940 Act, collectively received compensation and
reimbursement of expenses of $41,401 for the nine months ended December 31,
1995.
d. DISTRIBUTION FEES:
Effective on January 1, 1996, 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 approved annually by the Fund's Board of
Trustees. Under the 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.
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 nine months ended December 31, 1995, the
Fund paid brokerage commissions of $356,240 to RS & Co. which represented 21% of
total commissions paid for the period.
NOTE 4 INVESTMENTS:
a. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the cost
of investments purchased or the proceeds from investments sold (excluding
options, securities sold short, and short-term investments) measured as a
percentage of the Fund's average monthly investment portfolio for the nine
months ended December 31, 1995, was 104%.
b. TAX BASIS OF INVESTMENTS:
At December 31, 1995, the cost of investments for federal income tax purposes
was $951,916,535. Accumulated net unrealized appreciation on investments was
$176,905,290, consisting of gross unrealized appreciation and depreciation of
$205,497,759 and $(28,592,469), respectively.
c. INVESTMENT PURCHASES AND SALES:
For the nine months ended December 31, 1995, the cost of investments purchased
and the proceeds from investments sold (excluding options, securities sold
short, and short-term investments) were $1,619,932,751 and $1,035,627,673,
respectively.
d. OPTIONS:
At December 31, 1995, the Fund had no hedge position in put options.
e. SHORT SALES:
At December 31, 1995, the Fund did not sell any securities short.
19
<PAGE>
THE VALUE+GROWTH FUND ANNUAL RESULTS
Independent Accountants' Report
To the Shareholders and Board of Trustees of
The Robertson Stephens Value+Growth Fund
In our opinion, the accompanying statement of net assets, including the schedule
of net assets, and the related statements of operations and of changes in net
assets and the financial highlights present fairly, in all material respects,
the financial position of The Robertson Stephens Value+Growth Fund (one of the
series constituting The Robertson Stephens Investment Trust, hereinafter
referred to as the "Fund") at December 31, 1995, the results of its operations
for the nine-month period then ended and the changes in its net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1995, by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
/s/Price Waterhouse LLP
Price Waterhouse LLP
San Francisco, California
February 15, 1996
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 I. Goldbaum, Secretary
INVESTMENT ADVISER
Robertson, Stephens & Company
Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company LLC
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 Value+Growth Fund. It is not authorized for distribution to prospective
investors unless preceded or accompanied by an effective prospectus.
Published February 27, 1996
20
<PAGE>
The Robertson Stephens Mutual Funds
In addition to THE VALUE+GROWTH FUND, Robertson Stephens offers the following
mutual funds:
THE CONTRARIAN FUND
A DEFENSIVE POSITION IN TODAY'S VOLATILE MARKET - Invests in attractively
priced, growing companies worldwide that are out of favor or have not 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 Fund may engage in short sales
and/or invest in private placement emerging market equity securities. No load.
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 Dave Evans.
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 underappreciated 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 primarily in small- and mid-
cap company stocks and convertible bonds and preferred stocks. 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,
and multimedia. No load. Managed by Ron Elijah.
THE PARTNERS FUND
SMALL-CAP VALUE 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.
Design: Broom & Broom, Inc., San Francisco Photography: Jerry Orabona, Bill
Zemanek
For a discussion of the risks associated with using options, international
investing, investing in a few sectors, allocating a large percentage of the
portfolio to one security, and short selling, please read the prospectus.
<PAGE>
ROBERTSON STEPHENS & COMPANY
MUTUAL FUNDS
555 California Street, Suite 2600
San Francisco, California 94104
Fund News & Information
ROBERTSON STEPHENS
INVESTOR SERVICES
- - Knowledgeable mutual fund representatives.
- - Automated access to daily net asset values.
- - Portfolio managers' hotline, 24 hours a day.
1-800-766-3863
ROBERTSON STEPHENS
MUTUAL FUND E-MAIL
[email protected]
ROBERTSON STEPHENS
ACCOUNTLINK
- - Automated account information, 24 hours a day.
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 ValPlus under the heading Robertson
Stephens. Its computer quotation symbol is RSVPX.
The views expressed in this report were those of the Fund's portfolio manager as
of the date specified, and may not reflect the views of the portfolio manager on
the date they are first published or at any other time thereafter. RSIM and its
affiliates may buy or sell investments at any time for the Fund or their other
clients or for their own accounts and will not necessarily do so in a manner
consistent with the views expressed in this report. The prices at which they buy
or sell investments may be affected favorably by the contents of this report or
the timing of its publication. THE VIEWS EXPRESSED IN THIS REPORT ARE INTENDED
TO ASSIST SHAREHOLDERS OF THE FUND IN UNDERSTANDING THEIR INVESTMENT IN THE FUND
AND DO NOT CONSTITUTE INVESTMENT ADVICE; INVESTORS SHOULD CONSULT THEIR OWN
INVESTMENT PROFESSIONALS AS TO THEIR INDIVIDUAL INVESTMENT PROGRAMS.
