<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Information Age Fund-TM-
Second-Quarter Report
June 30, 1996
[Graphic]
Information Age
2
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
FUND PHILOSOPHY
The Information Age Fund-TM- seeks to achieve long-term capital appreciation by
aggressively investing in companies primarily within the information technology
sector.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 6
Portfolio Summary 7
Schedule of Net Assets 8
Statement of Net Assets 11
Statement of Operations 12
Statement of Changes in Net Assets 13
Financial Highlights 14
Notes to Financial Statements 15
Administration 20
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ROBERTSON, STEPHENS & COMPANY
FUND HIGHLIGHTS
Q2 PERFORMANCE
The Information Age Fund-TM- had an excellent quarter, with a positive return of
14.67% for the three months ending June 30, 1996.
THE PUSH FOR
PRODUCTIVITY IMPROVEMENT
We believe that the early days of understanding and accepting the PC are over
and that the days of utilizing and translating its power into worker
efficiencies are just beginning.
"THE CONNECTED PC"
We believe the PC is becoming a gateway for communications, creating significant
investment opportunities in companies that enable this advancement.
COMPUTER NETWORKING INFRASTRUCTURE
The construction of networks capable of handling and transmitting the graphics,
animation, audio, and video that give the connected PC its rich content is one
of the more attractive investment opportunities for the Fund.
LONG-TERM FOCUS
In these volatile periods, we seek investment opportunities that meet our
criteria for long-term growth potential and that have declined materially from
their recent highs.
1
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
[Photo]
FUND MANAGER
RONALD E. ELIJAH
Portfolio Manager
The Information Age Fund-TM-
DEAR SHAREHOLDER:
The Information Age Fund-TM- had an excellent quarter with a positive return for
the three months ending June 30, 1996. The Fund was up 14.67% for the quarter
and outperformed the Pacific Stock Exchange (PSE) Technology Index, which was up
3.40%, and the S&P 500, which was up 4.42%. With its strong results for the
quarter, the Fund was up 15.16% for the first half of 1996 compared to 3.09% for
the PSE Technology Index and 10.04% for the S&P 500.
The technology sector seems to be emerging from an inventory adjustment that had
plagued certain industries for approximately two quarters, the fourth quarter of
1995 and the first of 1996. Most of the inventory overhang was concentrated in
the cellular phone, personal computer, and semiconductor industries. Although
many of the companies within the software and data communications industries
(including INTERNET and INTRANET enablers) have not been directly involved in
the inventory corrective cycle, their stocks at times have been negatively
impacted by the fallout that generally occurred in technology stocks. However,
inventory issues seem to be working themselves out, and we believe prospects
look bright for the second half of 1996 in almost all major technology
industries.
Several industries continued to experience good product demand while others
began to experience a firming of demand after two quarters of sluggish business
condi-
"We believe the PROSPECTS LOOK BRIGHT for
2
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ROBERTSON, STEPHENS & COMPANY
tions. Data communications (local area networks), telecommunications (wide area
networks), and software (client/server, vertical application, enterprise
management, and design) companies experienced robust business conditions in the
June quarter, while the personal computer manufacturers began to see a firming
of business conditions and further reductions of inventories that started in the
March quarter. Some signs of improvement in business conditions in the
semiconductor industry have begun to surface. We are encouraged by what appears
to be shaping up as a broad demand for technology products in the second half of
1996 that could carry into 1997.
THE PUSH FOR PRODUCTIVITY
IMPROVEMENT -- THE CENTRAL
THEME FOR TECHNOLOGY INVESTING
The introduction of the personal computer (PC) in the 1980s was a major
technology advancement over anything that had preceded it, including the
mainframe or the minicomputer. Desktop computing power would, over time,
revolutionize the information industry. Everyone, however, seems to
underestimate how long it takes to reap the benefits of such a major technology
advancement. We believe the PC is as revolutionary an advancement as electricity
was when it was introduced. With the initial acceptance of electricity,
manufacturing productivity actually declined. Manufacturing and management
techniques had to be rethought and changed to take advantage of this new power
source, which was much more portable and independent compared to the then
traditional central power source of water.
We believe that the early days of understanding and accepting the PC are over
and the days of utilizing and translating its power into worker efficiencies are
just beginning. Surface evidence of improved U.S. productivity through
technology deployment is not always immediately apparent. However, the current
economic expansion in the U.S. is atypical of past expansions.
Historically, in post-war recoveries, the best news on real GDP growth and
inflation has occurred early in the expansionary period. This recovery is unique
in that the rate of GDP growth has accelerated as the recovery has aged. In
addition, some of the best news on inflation is occurring closer to the end of
this expansion cycle rather than at the beginning, also atypical.
We believe the acceptance of technology and the acceleration in capital
equipment spending in this cycle has been aimed at improving workforce
efficiency and lowering costs. Business expenditures on equipment per worker in
the current recovery are the highest of all expansionary cycles in the last 50
years. We believe that just as with electricity, this new portable computing
power known as the PC is reshaping business. The long-promised productivity
benefits from technology usage seem to have finally arrived. And, now that
technology investments are generating direct paybacks, further business
investments should be stimulated, fostering further long-term growth prospects
for technology investors.
THE FUND'S FOCUS -- "THE CONNECTED PC"
We believe the PC is becoming a gateway for communications and creating a
significant investment opportunity in companies that enable this advancement.
The combination of the PC and the Internet is creating a real-time, digital
environment for millions of users worldwide. Business and personal implications
are enormous. Driving this new digital world is the continuing evolution of the
Internet into a rich communications medium, transforming the PC from a solitary
productivity tool into a global communications, educational, and entertainment
device. We believe this transformation will lead to Internet viewing outstrip-
the second half of 1996 in almost all major technology industries."
3
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
"WE ARE EXPERIENCING THE EVOLUTION OF 'THE CONNECTED PC' AS THE NEW MEDIUM FOR
BUSINESS, EDUCATION, AND ENTERTAINMENT."
ping television viewing by the year 2000 for many of today's 100 million U.S.
personal computer users.
We are experiencing the evolution of "The Connected PC" as the new medium for
business, education, and entertainment. As the PC and Internet push forward
together, the four principal components, or building blocks, needed to expand
and enrich the connected PC are creating explosive and sustainable long-term
growth opportunities for investors. These components include the PC and its
components, cost-effective servers, software, and robust networks. The Fund is
invested in all four components, with Compaq, Dell and Gateway 2000 as its
personal computer and server investments. In addition, the Fund has investments
in software developers such as Parametric Technology, Cadence Design Systems,
Microsoft, Netscape, and PeopleSoft. Our software investments include companies
that provide either content, productivity or control software.
We believe putting in place the network infrastructure capable of handling and
transmitting the graphics, animation, audio, and video that give the connected
PC its rich content is one of the more attractive investment opportunities for
the Fund. Whether it's to create or upgrade the existing network, the bandwidth
needed to transmit graphic and video images is demanding signif-
[Photo]
INVESTMENT MANAGEMENT
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
INVESTMENT TEAM
RESEARCH
Rod Berry
Emeric McDonald
Susan Richardson
Rob Zidar
TRADING
Andy Roediger
ADMINISTRATION
Annette Tate
4
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ROBERTSON, STEPHENS & COMPANY
icant capital expenditures by businesses and carriers, including both the
telephone and cable industries. Needed infrastructure investment appears to be
in the billions currently and poised to grow well into the next century,
offering a decade of investment opportunity for investors. The Fund has several
investments in communications equipment suppliers that we believe should be
direct beneficiaries of this long-term network building. These investments
include Ascend, 3Com, Cisco, Cabletron, Cascade, and Tellabs.
LONG-TERM FOCUS
Recently market volatility has increased, and with it so too has investors'
temptation to "time" market swings. In the past, we have mentioned how difficult
it is to try to time the market. Rather, we encourage investors to maintain a
long-term focus. The market tends to advance in surges, and too often investors
attempting to time the market are either underinvested when the market surges or
fail to hit the market at the right moment.
For the long-term investor, market corrections are a common event. In fact,
since 1900 the market has declined 5% or more 318 times, for an average of three
times a year. These declines averaged 11% and typically lasted 40 days. Of
these, only one out of three turned into a market decline of 10% or more, or
about one every year. Therefore, market corrections of 5% to 10% are common and
difficult to time, but do not necessarily lead to "bear market" declines of 20%
or more. Declines of 20% or more have occurred only 29 times since 1900, about
once every three years. In these volatile periods, we maintain our long-term
focus and seek investment opportunities that meet our criteria for long-term
growth potential and that have declined materially from their recent highs.
SECOND-HALF OUTLOOK
Recent volatility in the stock market has heightened concerns about whether a
significant downturn is about to begin. Given the high valuations of many
investments within the Fund's portfolio, market direction is of real concern.
While trying to forecast market direction is always difficult, market
fundamentals may lead investors to some conclusions as to what the market's
long-term prospects might hold. We believe the market's recent correction from
its May top is simply that, a correction. Seldom has a market correction of 5%
to 10% led to a protracted "bear market" of declines of 20% or more.
In our opinion, this most recent correction was very similar to the one the
market experienced in 1994, with most of the disruption occurring in the first
half. In fact, the second half of 1994 was a good investment period in many
growth sectors, particularly the technology sector. In short, we believe the
conditions needed to push the market into a long downturn are not in place
today. Inflation continues to be restrained, recent interest rate rises seem to
have been tempered, and based on our research, we do not feel the market is
excessively overvalued when considering 1996 and 1997 earnings potentials. As
long as the economy grows at a modest pace with restrained inflationary
pressures, growth stock investing should continue to perform well. Therefore, we
believe the U.S. stock market should be favorable to investors in the second
half of 1996 and into 1997.
As always, we thank you for your ongoing support.
Sincerely,
/s/ Ronald E. Elijah
RONALD E. ELIJAH
Portfolio Manager
August 15, 1996
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT
1-800-766-3863.
5
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
FUND PERFORMANCE
Results of a hypothetical $10,000 investment
in The Robertson Stephens Information Age Fund, the PSE Technology Index(1),
and the S&P 500 Index(2)
IF INVESTED ON NOVEMBER 15, 1995(3)
[Chart]
CUMULATIVE TOTAL RETURNS
INFORMATION AGE PSE TECHNOLOGY S&P 500
FOR THE PERIOD ENDED 6/30/96 FUND INDEX(1) INDEX(2)
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Since inception (11/15/95)(3) 7.10% 1.23% 14.42%
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(1) The Pacific Stock Exchange ("PSE") Technology Index is an unmanaged,
price-weighted index of the top 100 U.S. technology stocks.
(2) 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.
(3) Date that the Fund's shares were first offered to the public.
Investors should realize that all performance data presented is based upon
past performance during limited periods of time, and that past
performance is no guarantee of future performance. Investors should
also realize that both investment return and principal value will
fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. The correlation of performance between an
unmanaged index and this Fund is not usually exact.
Funds which invest in a particular sector may be subject to greater
volatility than more diversified funds. Investing in smaller companies may
involve risks such as less publicly available information than larger
companies, volatility, and illiquidity. Short selling is the sale of a
borrowed security and may involve the risk that the price of the security
may increase between the date it is sold and the date the fund must replace
the borrowed security. Options and futures involve the risk that their
value may not be perfectly correlated to that of the underlying index or
security.
6
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ROBERTSON, STEPHENS & COMPANY
PORTFOLIO SUMMARY
AS OF JUNE 30, 1996
[Graph]
Top Ten Holdings
1.
ORACLE CORPORATION
Designs, develops, markets, and supports computer software products with a
variety of uses, including database management, applications development,
decision support, end-user applications, and office automation.
2.
PEOPLESOFT, INC.
Designs, develops, markets, and supports client/server business application
software for large- and medium-sized companies on various platforms.
3.
U.S. ROBOTICS, INC.
Designs, manufactures, markets, and supports high-performance data
communications products and systems targeted to business and professional users
worldwide.
4.
MICROSOFT CORPORATION
Develops, manufactures, licenses, and supports computer software products.
5.
HBO & COMPANY
Designs and sells computerized information systems to the health care
industry.
6.
NETSCAPE COMMUNICATIONS CORPORATION
Provides software for the exchange of information and commerce over
the Internet or private Internet protocol networks.
7.
PAIRGAIN TECHNOLOGIES, INC.
Designs, manufactures, markets, and supports products that allow
telecommunications carriers and private networks to more efficiently provide
high-speed digital service over standard copper wires.
8.
CADENCE DESIGN SYSTEMS, INC.
Develops, markets, and supports computer software products that automate the
design of integrated circuits and electronic systems.
9.
PARAMETRIC TECHNOLOGY CORPORATION
Develops, markets, and supports a family of fully integrated software products
for mechanical design automation.
10.
ASCEND COMMUNICATIONS, INC.
Develops, manufactures, sells, and supports a broad range of high-speed digital
wide area network access products. Products use bandwidth-on-demand to enhance
and extend existing corporate networks.
7
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
Schedule of Net Assets
JUNE 30, 1996 SHARES VALUE
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COMMON STOCKS
- ---------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.8%
3Com Corporation 43,500 $ 1,990,125
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1,990,125
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COMPUTER HARDWARE/COMPONENTS - 8.1%
Adaptec, Inc. 30,000 1,421,250
Compaq Computer Corporation 25,000 1,231,250
Dell Computer Corporation 40,000 2,035,000
Gateway 2000, Inc. 35,000 1,190,000
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5,877,500
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COMPUTER SOFTWARE - 34.1%
Cadence Design Systems, Inc. 73,000 2,463,750
Clarify, Inc. 17,500 866,250
Enterprise Systems, Inc. 21,300 585,750
Forte Software, Inc. 29,000 1,515,250
HCIA, Inc. 10,000 630,000
Microsoft Corporation 25,000 3,003,125
Netscape Communications Corporation 40,000 2,490,000
Oracle Corporation 82,500 3,253,594
Parametric Technology Corporation 52,000 2,255,500
PeopleSoft, Inc. 45,000 3,206,250
Remedy Corporation 27,000 1,971,000
Synopsys, Inc. 30,000 1,192,500
Vantive Corporation 35,000 1,172,500
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24,605,469
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COMPUTER SOFTWARE/SERVICES - 1.6%
Transition Systems, Inc. 39,600 1,128,600
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1,128,600
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CONSUMER SPECIALTY/RETAIL - 2.8%
CompUSA, Inc. 60,000 2,047,500
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2,047,500
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CONSUMER TECHNOLOGY - 1.9%
CDW Computer Centers, Inc. 20,000 1,390,000
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1,390,000
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The accompanying notes are an integral part of these financial statements.
8
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ROBERTSON, STEPHENS & COMPANY
JUNE 30, 1996 SHARES VALUE
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- --------------------------------------------------------------------------
DATA COMMUNICATIONS - 12.4%
Ascend Communications, Inc. 40,000 $ 2,250,000
Cabletron Systems, Inc. 24,500 1,681,312
FORE Systems, Inc. 55,000 1,986,875
Glenayre Technologies, Inc. 20,000 1,000,000
Tellabs, Inc. 30,000 2,006,250
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8,924,437
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DATA TELECOMMUNICATIONS - 2.5%
Cisco Systems, Inc. 31,600 1,789,350
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1,789,350
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MEDICAL SERVICES - 4.3%
HBO & Company(1) 40,000 2,710,000
Medaphis Corporation 10,000 397,500
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3,107,500
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MEDICAL TECHNOLOGY - 1.1%
Summit Medical Systems, Inc. 40,000 780,000
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780,000
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NETWORK SYSTEMS - 5.6%
PairGain Technologies, Inc. 40,000 2,480,000
Shiva Corporation 20,000 1,600,000
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4,080,000
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SEMICONDUCTOR EQUIPMENT - 1.9%
Integrated Systems, Inc. 35,000 1,402,187
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1,402,187
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SEMICONDUCTORS - 7.4%
Analog Devices, Inc. 50,000 1,275,000
Atmel Corporation 32,500 979,063
LSI Logic Corporation 66,000 1,716,000
Xilinx, Inc. 43,000 1,365,250
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5,335,313
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TECHNOLOGY/NETWORK SYSTEMS - 4.3%
U.S. Robotics, Inc. 36,000 3,078,000
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3,078,000
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TELECOMMUNICATIONS - 2.8%
Cascade Communications Corporation 30,000 2,040,000
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2,040,000
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TELECOMMUNICATIONS EQUIPMENT - 1.4%
DSP Communications, Inc. 20,000 1,027,500
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1,027,500
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The accompanying notes are an integral part of these financial statements.
9
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
Schedule of Net Assets (CONTINUED)
JUNE 30, 1996 SHARES VALUE
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TOTAL COMMON STOCK - 95.0% (Cost: $57,558,941) $ 68,603,481
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WARRANTS
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Intel Corporation, Warrants, Strike $40.75,
Expire 3/14/97(2) 40,000 1,450,000
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TOTAL WARRANTS - 2.0% (Cost $1,472,500) 1,450,000
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TOTAL INVESTMENTS - 97.0% (Cost $59,031,441) 70,053,481
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CASH AND CASH EQUIVALENTS
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Cash 247
Repurchase Agreement
State Street Bank & Trust Company, 4.85%,
dated 6/28/96, due 7/01/96, maturity value
$2,530,022 (collateralized by $2,645,000 par value
U.S. Treasury Bill, 5.09%, due 10/3/96) 2,529,000
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TOTAL CASH AND CASH EQUIVALENTS - 3.5% 2,529,247
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OTHER LIABILITIES, NET - (0.5)% (367,273)
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TOTAL NET ASSETS - 100.0% $ 72,215,455
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(1) Income-producing security.
(2) See 4.d. in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
10
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ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
JUNE 30, 1996
- ---------------------------------------------------------------
- ---------------------------------------------------------------
ASSETS
- ---------------------------------------------------------------
Investments, at value (Cost: $59,031,441) $ 70,053,481
Cash and cash equivalents 2,529,247
Receivable for investments sold 4,167,697
Receivable for fund shares subscribed 710,943
Receivable, other 31,061
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TOTAL ASSETS 77,492,429
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LIABILITIES
- ---------------------------------------------------------------
Payable for investments sold 5,008,961
Payable for fund shares redeemed 132,322
Payable to adviser 73,518
Payable to distributor 14,704
Accrued expenses 47,469
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TOTAL LIABILITIES 5,276,974
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TOTAL NET ASSETS 72,215,455
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- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------
Paid-in capital 66,662,555
Accumulated net investment loss (539,347)
Accumulated net realized loss from investments (4,929,793)
Net unrealized appreciation on investments 11,022,040
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- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL NET ASSETS $ 72,215,455
- ---------------------------------------------------------------
- ---------------------------------------------------------------
- ---------------------------------------------------------------
PRICING OF SHARES: $ 10.71
Net Asset Value, offering, and redemption
price per share (Net assets of $72,215,455
applicable to 6,744,638 shares of beneficial
interest outstanding with no par value)
- ---------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
INVESTMENT INCOME
- ---------------------------------------------------------------------------
Interest $ 55,630
Dividends 6,065
Other 398
- ---------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 62,093
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
EXPENSES
- ---------------------------------------------------------------------------
Investment advisory fees 278,161
Custodian and transfer agent fees 77,286
Distribution fees 69,540
Administrative expense 69,540
Professional fees 38,243
Shareholder reports 29,163
Registration and filing fees 23,580
Trustees' fees and expenses 11,102
Organizational expense 3,249
Interest expense 1,302
Insurance fees 274
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TOTAL EXPENSES 601,440
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NET INVESTMENT LOSS (539,347)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- ---------------------------------------------------------------------------
Net realized loss from investments (2,813,272)
Net change in unrealized appreciation on investments 10,766,454
- ---------------------------------------------------------------------------
TOTAL NET REALIZED LOSS AND UNREALIZED APPRECIATION
ON INVESTMENTS 7,953,182
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,413,835
- ---------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED PERIOD ENDED
6/30/96 12/31/95(1)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
OPERATION
- ------------------------------------------------------------------------------
Net investment loss ($539,347) ($23,511)
Net realized loss from investments (2,813,272) (2,116,521)
Net change in unrealized appreciation on
investments 10,766,454 255,586
- ------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 7,413,835 (1,884,446)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
DISTRIBUTION TO SHAREHOLDERS
- ------------------------------------------------------------------------------
Realized gains on investments - -
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - -
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------
Net increase in net assets resulting from
capital share transactions 31,975,984 34,710,082
- ------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 31,975,984 34,710,082
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 39,389,819 32,825,636
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------
Beginning of year 32,825,636 0
End of year $72,215,455 $32,825,636
- ------------------------------------------------------------------------------
(1) The Fund commenced operations on November 15, 1995.
The accompanying notes are an integral part of these financial statements
13
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THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
FINANCIAL HIGHLIGHTS
FOR THE FOR THE
FOR A SHARE OUTSTANDING SIX MONTHS ENDED PERIOD ENDED
THROUGHOUT THE PERIOD: 6/30/96 12/31/95(1)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.30 $ 10.00
- ------------------------------------------------------------------------------
Net investment loss (0.10) (0.01)
Net realized loss and net change in unrealized
appreciation on investments 1.51 (0.69)
- ------------------------------------------------------------------------------
Net Increase/(Decrease) in Net Assets Resulting
From Operations 1.41 (0.70)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------
Net investment income - -
Realized gains on investments - -
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - -
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.71 $ 9.30
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL RETURN 15.16% (7.00)%
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net Assets, end of period $ 72,215,455 $ 32,825,636
Ratio of Expenses to Average Net Assets 2.15% 2.13%
Ratio of Net Investment Loss to Average Net Assets (1.93)% (0.89)%
Portfolio Turnover Rate 133% 89%
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(1) The Fund commenced operations on November 15, 1995.
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.
14
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ROBERTSON, STEPHENS & COMPANY
Notes to Financial Statements
The Information Age Fund-TM- (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 15, 1995. The Trust offers eleven series of shares --
The Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value +
Growth Fund, The Contrarian Fund-TM-, 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, The Robertson Stephens
Global Low-Priced Stock Fund, The Robertson Stephens Diversified Growth Fund
(effective August 1, 1996), and The Robertson Stephens MicroCap Growth Fund
(effective August 15, 1996). 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.
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
June 30, 1996, 100% of the Fund's positions were 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 June 30, 1996, 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 com-
15
<PAGE>
THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
Notes to Financial Statements (CONTINUED)
panies 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.
c. FEDERAL INCOME TAXES:
The Fund has made no provisions for federal income tax for the six months ended
June 30, 1996. 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 or loss 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 six months ended
June 30, 1996, and for the period from November 15, 1995 (commencement of
operations), to December 31, 1995, were as follows:
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
1/1/96 - 6/30/96 SHARES AMOUNT
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Shares sold 7,366,422 $ 72,589,593
Shares reinvested - -
- -----------------------------------------------------------------
7,366,422 72,589,593
- -----------------------------------------------------------------
Shares redeemed (4,152,419) (40,613,609)
- -----------------------------------------------------------------
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Net increase 3,214,003 $31,975,984
- -----------------------------------------------------------------
11/15/95 - 12/31/95 SHARES AMOUNT
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Shares sold 3,937,648 $ 38,546,017
Shares reinvested - -
- -----------------------------------------------------------------
3,937,648 38,546,017
- -----------------------------------------------------------------
Shares redeemed (407,013) (3,835,935)
- -----------------------------------------------------------------
- -----------------------------------------------------------------
- -----------------------------------------------------------------
Net increase 3,530,635 $ 34,710,082
- -----------------------------------------------------------------
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 & Company
Investment Management, L.P. ("RSIM") an investment advisory fee and an
administrative services fee calculated respectively at an annual rate of 1.00%
and 0.25% of the average daily net assets of the Fund. For the six months ended
June 30, 1996, the Fund incurred investment advisory fees and administrative
fees of $278,161 and $69,540, respectively. RSIM has agreed to reimburse the
Fund for any annual operating expenses, including investment advisory fees, but
excluding distribution fees that exceed the most stringent limits prescribed by
any state in which the Fund's shares are offered for sale. For the six months
ended June 30, 1996, 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 managing member 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
17
<PAGE>
THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
Notes to Financial Statements (CONTINUED)
Fund, is a Member of RS Group and Chief Financial Officer of RS & Co. John P.
Rohal, a Trustee of the Fund, is a Member of RS Group and Director of Research
for RS & Co. Ronald E. Elijah, Portfolio Manager, is a Member of RS Group. All
affiliated and access persons, as defined in the 1940 Act, follow strict
guidelines and policies on personal trading as outlined in the Fund's Code of
Ethics.
c. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested persons
of the Trust, as defined in the 1940 Act, collectively received compensation and
reimbursement of expenses of $11,102 for the six months ended June 30, 1996.
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 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. For the six months ended June 30, 1996, the Fund
incurred distribution fees of $69,540.
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 June 30, 1996, the Fund
paid brokerage commissions of $3,880 to RS & Co., which represented 8% of total
commissions paid for the period.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
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 June 30, 1996, was 133%.
b. TAX BASIS OF INVESTMENTS:
At June 30, 1996, the cost of investments for federal income tax purposes was
$59,031,441. Accumulated net unrealized appreciation on investments was
$11,022,040, consisting of gross unrealized appreciation and depreciation of
$12,140,286 and $(1,118,246), respectively.
c. INVESTMENT PURCHASES AND SALES:
For the six months ended June 30, 1996, the cost of investments purchased and
the proceeds from investments sold (excluding short-term investments) were
$105,441,333 and $73,597,222, respectively.
d. OPTIONS AND WARRANTS:
Options and warrants normally entitle the holder to purchase a proportionate
number of a particular class of the issuer's securities at a predetermined price
during a specific period.
e. SHORT SALES:
For the six months ended June 30, 1996, the Fund did not sell any securities
short.
19
<PAGE>
THE INFORMATION AGE FUND-TM- SECOND-QUARTER RESULTS
Administration
OFFICERS AND TRUSTEES
G. Randy Hecht
President, Chief Executive Officer
Terry R. Otton
Chief Financial Officer
Dana K. Welch
Secretary
Leonard B. Auerbach, Trustee
President and Chairman of Auerbach Associates, Inc.
Daniel R. Cooney, Trustee
Former Portfolio Manager of the
Lord Abbett Developing Growth Fund
James K. Peterson, Trustee
Director of the IBM Retirement Funds
John P. Rohal, Trustee
Managing Director and Director of
Research, Robertson, Stephens & Co.
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 Information
Age Fund-TM-. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
Published August 29, 1996
20
<PAGE>
The Robertson Stephens Mutual Funds
In addition to THE INFORMATION AGE FUND-TM-, Robertson Stephens offers the
following mutual funds.
THE CONTRARIAN FUND-TM-
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 DIVERSIFIED GROWTH FUND
FOCUSING ON SMALL- and MID-CAP COMPANIES - Invests primarily in equity
securities to create a portfolio broadly diversified over industries
and companies.
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 Jim Callinan.
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 or overlooked 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, as well as convertible bonds and preferred stocks. No load.
Managed by John Wallace.
THE MICROCAP GROWTH FUND
FOCUSING ON COMPANIES WITH MARKET CAPS OF LESS THAN $250 MILLION - Invests
primarily in "micro-cap" companies with the potential for long-term capital
appreciation.
THE PARTNERS FUND
A SMALL-CAP FUND USING A VALUE METHODOLOGY - This methodology combines
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 THE LONG-TERM INVESTOR - Invests primarily in
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 a discussion of the risks associated with using options, investing in small
companies, international investing, investing in a few sectors, allocating a
large percentage of a portfolio to one security, and short selling, please read
the prospectus.
Design: Broom & Broom, Inc., San Francisco Photography: Jerry Orabona, Bill
Zemanek
<PAGE>
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.
l-800-766-3863
ROBERTSON STEPHENS MUTUAL FUND E-MAIL
[email protected]
ROBERTSON STEPHENS ON THE WEB
http://www.rsim.com
ROBERTSON STEPHENS ACCOUNTLINK
- - Automated account information, 24 hours a day.
l-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 InfoAge under the heading Robertson
Stephens. Its computer quotation symbol is RSIFX.
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, their other
clients or for their own accounts, and may 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.
<TABLE> <S> <C>
<PAGE>
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<NAME> INFORMATION AGE FUND
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<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<INVESTMENTS-AT-COST> 59,031
<INVESTMENTS-AT-VALUE> 70,053
<RECEIVABLES> 4,910
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<TOTAL-ASSETS> 77,492
<PAYABLE-FOR-SECURITIES> 5,230
<SENIOR-LONG-TERM-DEBT> 0
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<TOTAL-LIABILITIES> 5,277
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