<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
THE GLOBAL NATURAL RESOURCES FUND
ANNUAL REPORT
DECEMBER 31, 1995
GLOBAL NATURAL RESOURCES
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
FUND PHILOSOPHY
THE GLOBAL NATURAL RESOURCES FUND seeks to achieve long-term capital
appreciation by investing in companies principally engaged in the discovery,
development, production, or distribution of natural resources, the development
of technologies for the production or efficient use of natural resources, or the
furnishing of related supplies or services.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 8
Portfolio Summary 9
Schedule of Net Assets 10
Statement of Net Assets 12
Statement of Operations 13
Statement of Changes in Net Assets 14
Financial Highlights 15
Notes to Financial Statements 16
Independent Accountants' Report 20
Administration 20
<PAGE>
ROBERTSON STEPHENS & COMPANY
FUND HIGHLIGHTS
FUND FOCUS
The Fund concentrates on commodities-based industries such as energy, metals,
chemicals, paper, and forest products.
COMMITMENT
You will not see us invest in retail growth stocks, financials or any other
non-commodity-based industries in an attempt to catch a "hot" industry.
RECENT PAST TOUGH FOR NATURAL RESOURCES
For the last 15 years, the natural resources sector has been one of the worst
performing sectors. In fact, it has been a 15-year bear market in natural
resource stocks...and a 15-year bull market in financial assets.
IMPROVING SUPPLY MANAGEMENT
In a number of commodities-based industries we are now seeing a
rationalization of capacity and supply restrictions.
GROWTH IN DEMAND
World commodities demand is being led by the Asia 8 (A8) -- China, Korea,
Hong Kong, Taiwan, Thailand, Malaysia, Singapore, and Indonesia.
OUR PROCESS
We like to get out of the office and visit managements and operating locations.
We want an understanding of the unit economics of the business and the company's
capital allocation process.
LOW CORRELATION TO S&P 500 INDEX
The natural resources asset class can be viewed as a good means of diversifying
away from the broad market. Historically, this sector has had a low correlation
to the S&P 500 Index.
1
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
[PHOTO - FUND MANAGER]
DEAR SHAREHOLDER:
The Robertson Stephens Global Natural Resources Fund is one of the newest funds
in the Robertson Stephens family of funds. It concentrates on commodities-based
industries such as energy, metals, chemicals, paper, and forest products. You
will not see us invest in retail growth stocks, financials or any other non-
commodities-based industries in an attempt to catch a "hot" industry. Our
mandate is natural resources, and we intend to stick to it!
The Fund opened on November 15, 1995, and was up 1.2% for the year. We believe
six weeks is not enough time to judge our capabilities. In fact, we think a time
horizon of at least three years is more appropriate for evaluating a portfolio
manager. If this is the case, then how do you evaluate any fund in the first
three years? We think you should look at the people, the process, and the
positioning. Before tackling these issues, I want to briefly review investing in
natural resource stocks.
2
<PAGE>
ROBERTSON, STEPHENS & COMPANY
15-YEAR BEAR MARKET
For the last 15 years, natural resources has been one of the worst performing
sectors. In fact, it's been a 15-year bear market in natural resource
stocks...and a 15-year bull market in financial assets (See Table 1.) The
consensus opinion is that inflation, which is believed to be the main kicker
behind strong natural resource returns, is dead. Others say that oil prices have
been sluggish and that the Iraqis will soon be able to sell oil and further
depress prices.
SUPPLY MANAGEMENT
If these statistics and comments haven't depressed you and you're still reading
this, let me explain why we are now excited about natural resource stocks. We
believe that the supply and demand fundamentals are beginning to improve, cash
flows are increasing, and the stocks are cheap. We think there's been a change
in commodities-based industries from supply growth to supply management.
Historically, most of these companies built capacity in an attempt to grow
revenues. This strategy destroyed shareholder wealth as most of these companies
did not earn an adequate return on their additions to capacity. In a number of
commodities-based industries we are now seeing a rationalization of capacity and
supply restrictions.
The aluminum industry is a good example. Companies are lowering costs, and the
rates of return on capital are now beginning to exceed the cost of capital. This
is being accomplished in a "noninflationary," some might say deflationary,
environment.
One of the largest sources of new supply for a number of commodities has been
the Former Soviet Union (FSU). Its economic deterioration and need for hard
currency has necessitated a significant increase in commodity exports. They now
appear to have reached their export capacity, and their plants are badly in need
of maintenance and environmental investments. Either the FSU economy improves
and internal demand picks up (reducing export availability) or the FSU implodes.
Both would likely have a positive impact on commodity prices.
Table 1. Natural Resources Sector Relative to the Broader Market (S&P 500 Index)
<TABLE>
<CAPTION>
NATURAL RESOURCES
SECTOR VARIANCE WITH
TRAILING TOTAL RETURN % +/- S&P 500
- ------------------------------------------------------------
<S> <C> <C>
6 mo. 2.69 -12.19
1 yr. 13.06 -23.88
3 yr. 11.90 -3.16
5 yr. 8.45 -8.33
10 yr. 8.37 -6.83
15 yr. 6.63 -7.78
- -------------------------------------------------------------
</TABLE>
Source: Morningstar data to 11/30/95.
"World industrial production growth could conceivably EXCEED 4% ANNUALLY in the
next two years -- four times greater than in the early 1990s."
3
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THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
[PHOTO]
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
INVESTMENT TEAM
RESEARCH
Borden Putnam III
TRADING
Christopher Beagle
Catherine O'Neill
ADMINISTRATION
Jodi Daprano
Table 2. G7 + A8 Industrial Production - Growth Forecasts
<TABLE>
<CAPTION>
ANNUAL % CHANGE 1995 1996 1997 1998
<S> <C> <C> <C> <C>
U.S. 3.4% 2.9% 2.9% 1.6%
Japan 2.9 2.0 4.4 3.0
Germany 1.1 1.4 3.2 2.3
France 1.5 2.0 3.2 2.2
Italy 4.0 3.5 3.0 2.0
U.K. 2.3 2.5 2.8 1.5
Canada 3.0 2.7 3.0 2.0
G7 2.9% 2.5% 3.2% 2.0%
China 15.8 14.0 12.5 8.2
Korea 11.7 8.5 7.5 6.5
Hong Kong 1.3 0.8 2.0 3.0
Taiwan 6.4 5.7 6.0 4.0
Thailand 11.3 10.6 10.0 8.0
Malaysia 14.2 12.0 10.0 7.0
Singapore 9.0 8.0 6.0 5.0
Indonesia 12.1 11.0 11.0 10.0
A8 11.2% 9.5% 8.8% 6.7%
G7 + A8 4.7% 4.1% 4.6% 3.2%
</TABLE>
Sources: Consensus Forecasts, Prudential-Bache Securities Aust.
DEMAND GROWTH
We are also seeing changes on the demand side. World commodities demand is being
led by the Asia 8 (A8) -- China, Korea, Hong Kong, Taiwan, Thailand, Malaysia,
Singapore, and Indonesia. Combined, they
4
<PAGE>
ROBERTSON, STEPHENS & COMPANY
make up 50% of world industrial production growth despite a weighting of only
20% in the G7 (the seven major industrialized countries) plus A8 aggregate
statistics. World industrial production growth could exceed 4% annually in the
next two years -- which would be four times greater than in the early 1990s.
(See Table 2.)
We believe this strong, long-term demand growth may lead to shortages and
increasing prices. In the short term, investors seem focused on consumers'
"de-stocking" and the slower U.S. and European growth expected in the first half
of 1996.
PER CAPITA CONSUMPTION
The annual per capita consumption figures for the developing countries also have
positive implications for commodities-based industries. For example, the
following table illustrates the intensity of oil consumption per capita in
developing versus industrialized countries. As the standard of living improves
in developing countries, we would expect their per capita consumption of
commodities to increase significantly.
(See Table 3.)
In our long-term bullish story, we see favorable fundamentals in a number of
commodities-based industries:
* Supply restraint
* Renewed demand growth, led by the Asia 8
* A 15-year bear market in the stocks
Table 3.
Per Capita Oil Consumption for Selected Countries, 1993
<TABLE>
<CAPTION>
ANNUAL PER CAPITA
POPULATION OIL CONSUMPTION OIL CONSUMPTION
COUNTRY (MIL.) (MIL. BBL.) (BBL.)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DEVELOPING COUNTRIES
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
India 850 473 0.6
China 1,118 1,082 1.0
Brazil 153 496 3.3
South Africa 40 141 3.6
Mexico 88 569 6.5
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDUSTRIALIZED COUNTRIES
- -------------------------------------------------------------------------------
U.K. 57 653 11.4
Italy 58 695 12.1
France 56 717 12.7
Japan 124 1,995 16.1
Germany 62 1,066 17.2
U.S. 250 5,990 23.9
- -------------------------------------------------------------------------------
</TABLE>
Source: Based on BP Statistical Review of World Energy, 1994 Edition,
and United Nations population data.
5
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
OUR PEOPLE
The Fund is managed by an experienced team. I have 21 years of experience in the
investment management industry, and for the last 2 1/2 years I have been working
with Paul Stephens on the natural resource holdings of The Robertson Stephens
Contrarian Fund. Working with me on the research effort for The Robertson
Stephens Global Natural Resources Fund is Borden Putnam, who recently joined
Robertson Stephens. Borden has more than 20 years of experience in the mining
industry, primarily in exploration for base and precious metals. Most recently,
he spent nearly five years with Mineral Resources Development, Inc. (MRDI), an
internationally recognized mining engineering consulting firm, where he held the
positions of chief geologist and vice president, geology.
OUR PROCESS
Our process is typically "grassroots" research. We like to get out of the
office to visit managements and operating locations. We want an understanding of
the unit economics of the business and the company's capital allocation process.
We concentrate on corporate strategic direction, not quarterly earnings
"The Fund is managed by an EXPERIENCED team."
6
<PAGE>
ROBERTSON, STEPHENS & COMPANY
estimates. We will look for companies that can grow their reserves, operate at a
low cost, and produce a rate of return on capital greater than the company's
cost of capital over a commodity price cycle. For commodities-based service
companies we use the same cash flow rate of return methodology.
OUR POSITION
We are currently (January 25, 1996) 42% invested and positioned (see Table 4):
Table 4.
Invested Position of Fund
As of January 25, 1996
<TABLE>
<CAPTION>
% OF FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
Gold Mining 17%
Energy & Energy Services 11
Aluminum 6
Chemicals 2
Coal 2
Nickel 2
Real Estate 2
- --------------------------------------------------------------------------------
42%
- --------------------------------------------------------------------------------
</TABLE>
LOW CORRELATION TO S&P 500 INDEX
The natural resources asset class is one means of diversifying away from the
broad market. Historically, this sector has had a low correlation to the S&P 500
Index. Considering the sector's volatility, investors in natural resource
companies should be both patient and bold. Former Magellan Fund manager Peter
Lynch has commented, "Everybody's got the brains to make money in the stock
market. But do they have the stomach? That's the key organ."
Thank you for your support and trust. It is our hope that we can build a
profitable, long-term relationship.
January 30, 1996
Sincerely,
/s/ Andrew P. Pilara, Jr.
ANDREW P. PILARA, JR.
Portfolio Manager
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT
1-800-766-3863.
7
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
FUND PERFORMANCE
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
GLOBAL NATURAL RESOURCES S&P 500
FOR THE PERIOD ENDED 12/31/95 FUND INDEX(1)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C> <C>
Since inception (11/15/95)(2) 1.20% 3.98%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment results
assume the reinvestment of dividends paid on the stocks comprising the index.
(2) 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.
8
<PAGE>
ROBERTSON, STEPHENS & COMPANY
PORTFOLIO SUMMARY
AS OF DECEMBER 31, 1995
[GRAPH]
TOP TEN HOLDINGS
1.
CATELLUS DEVELOPMENT CORPORATION
A major diversified real estate company. Owns, develops, and manages industrial,
residential, and commercial properties, primarily in California.
2.
INCO, LTD.
Produces nickel, and other alloys, copper, cobalt, and precious metals.
3.
SUNCOR, INC.
An integrated oil and gas company. Mines and upgrades oil sands to produce and
market high-quality, light, sweet, crude oil.
4.
AMERADA HESS CORPORATION
Explores for, produces, purchases, transports, and sells crude oil and natural
gas.
5.
ALUMINUM COMPANY OF AMERICA
Produces fabricated aluminum products used primarily by packaging,
transportation, building, and industrial customers worldwide.
6.
ZEIGLER COAL HOLDING COMPANY
Operates 13 underground and surface coal mining complexes in six states,
import/export terminals in Virginia and South Carolina, and a clean coal plant
in Wyoming.
7.
WESTERN MINING HOLDINGS, LTD. ADR
Explores for, develops, produces, and processes mineral and petroleum products.
8.
NEW CACHE PETROLEUMS, LTD.
Explores for, develops, and produces oil and natural gas in the province of
Alberta.
9.
NL INDUSTRIES, INC.
An international producer of titanium dioxide pigments and specialty chemicals.
10.
MAXXAM, INC.
A large resource company. Holds majority ownership and control of Kaiser
Aluminum and Pacific Lumber, plus numerous real estate assets.
9
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, 1995 SHARES VALUE
<S> <C> <C>
- --------------------------------------------------------------------------------
COMMON STOCKS
- --------------------------------------------------------------------------------
ALUMINUM - 12.6%
Aluminum Company of America(1) 600 $ 31,725
Kaiser Aluminum Corporation 1,300 16,900
MAXXAM, Inc. 700 24,675
Western Mining Holdings, Ltd. - ADR(1,2) 1,000 26,125
- --------------------------------------------------------------------------------
99,425
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COAL MINING - 3.5%
Zeigler Coal Holding Company(1) 2,000 27,750
- --------------------------------------------------------------------------------
27,750
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ENERGY - 14.8%
Alberta Energy Company, Ltd.(1) 900 14,400
Amerada Hess Corporation(1) 600 31,800
New Cache Petroleums, Ltd. 8,000 25,192
Olympia Energy, Inc., Class A 25,000 14,280
Suncor, Inc.(1) 1,000 31,875
- --------------------------------------------------------------------------------
117,547
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ENERGY SERVICES - 1.7%
Ryan Energy Technologies, Inc. 16,000 9,374
Veritas Energy Services, Inc. 700 3,845
- --------------------------------------------------------------------------------
13,219
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLD MINING - 5.5%
Ashanti Goldfields - GDR(1,3) 727 14,540
Bakyrchik Gold PLC 1,000 4,287
Emperor Mines, Ltd. 5,000 7,990
Golden Shamrock Mines, Ltd. 10,000 6,169
Golden Star Resources, Ltd.(1) 2,000 10,250
- --------------------------------------------------------------------------------
43,236
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NICKEL MINING - 4.2%
Inco, Ltd.(1) 1,000 33,250
- --------------------------------------------------------------------------------
33,250
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
REAL ESTATE - 4.5%
Catellus Development Corporation 6,000 $ 36,000
- --------------------------------------------------------------------------------
36,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 3.1%
NL Industries, Inc. 2,000 24,750
- --------------------------------------------------------------------------------
24,750
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS - 49.9% (Cost: $389,087) 395,177
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- --------------------------------------------------------------------------------
Cash 81,423
Federal Mortgage Corporation Discount Note, 5.65%,
due 1/4/96 499,765
- --------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 73.4% 581,188
- --------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (23.3)% (184,621)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL NET ASSETS - 100% $ 791,744
- --------------------------------------------------------------------------------
</TABLE>
(1) Income - producing security.
(2) ADR - American Depository Receipts.
(3) GDR - Global Depository Receipts.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, 1995
<S> <C>
- --------------------------------------------------------------------------------
ASSETS
- --------------------------------------------------------------------------------
Investments, at value (Cost: $389,087) $ 395,177
Cash and cash equivalents 581,188
Receivable for fund shares subscribed 7,000
Receivable from Adviser 5,748
Receivables, other 32,538
- --------------------------------------------------------------------------------
TOTAL ASSETS 1,021,651
- --------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------
Payable for investments purchased 209,659
Accrued expenses 20,248
- --------------------------------------------------------------------------------
TOTAL LIABILITIES 229,907
- --------------------------------------------------------------------------------
TOTAL NET ASSETS 791,744
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Paid-in capital 784,748
Accumulated undistributed investment income 906
Net unrealized appreciation on investments 6,090
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL NET ASSETS $ 791,744
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PRICING OF SHARES: $ 10.12
Net Asset Value, offering and redemption price per share
(Net assets of $791,744 applicable to 78,211 shares
of beneficial interest outstanding with no par value)
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 11/15/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 12/31/95
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 2,139
Dividends 50
- --------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,189
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Professional fees 2,104
Shareholder reports 1,521
Trustees' fees and expenses 742
Custodian and transfer agent fees 645
Registration and filing fees 584
Organizational expenses 500
Investment advisory fees 470
Other 231
Distribution fees 117
Administration fees 117
- --------------------------------------------------------------------------------
Total Expenses 7,031
Less: Reimbursement from Adviser (5,748)
- --------------------------------------------------------------------------------
TOTAL EXPENSES, NET 1,283
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 906
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS
- --------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 6,090
- --------------------------------------------------------------------------------
TOTAL UNREALIZED APPRECIATION ON INVESTMENTS 6,090
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,996
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 11/15/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 12/31/95
<S> <C>
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
Net investment income $ 906
Net change in unrealized appreciation on investments 6,090
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 6,996
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Net investment income -
Realized gains on investments -
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS -
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 784,748
- --------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 784,748
- --------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 791,744
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of year 0
End of year $ 791,744
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR A SHARE OUTSTANDING PERIOD ENDED
THROUGHOUT THE PERIOD: 12/31/95(1)
- --------------------------------------------------------------------------------
<S> <C>
Net Asset Value, beginning of period $ 10.00
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net investment income 0.02
Unrealized appreciation on investments 0.10
- --------------------------------------------------------------------------------
Total increase in net assets resulting from operations 0.12
- --------------------------------------------------------------------------------
Distributions from net investment income -
Distributions from realized gains on investments -
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.12
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL RETURN 1.20%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------
Net Assets, end of period $ 791,744
Ratio of Expenses to Average Net Assets 2.60%(2)
Ratio of Net Investment Income to Average Net Assets 1.84%(2)
Portfolio Turnover Rate 0%
- --------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on 11/15/95.
(2) 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 period
ended December 31, 1995 would have been 14.25%, and the ratio of net investment
loss to average net assets would have been (9.81)%.
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.
15
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Global Natural Resources Fund (the "Fund") is a series of
the Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act") as a diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on November 15, 1995. The Trust offers nine series of shares -- The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value+Growth
Fund, The Robertson Stephens Contrarian Fund, The Robertson Stephens Developing
Countries Fund, The Robertson Stephens Growth & Income Fund, The Robertson
Stephens Partners Fund, The Robertson Stephens Information Age Fund, 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 Global Natural Resources Fund, for book and tax purposes, has a calendar
(12/31) year-end. These financial statements reflect operations for the period
from November 15, 1995 (Commencement of Operations), through December 31, 1995.
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 and foreign securities are valued at the
last sale price on the principal exchange or market on which they are traded;
or, if there were no sales that day, at the mean between the closing bid and
asked prices. Foreign securities prices are generally denominated in foreign
currencies. The currencies are translated into U.S. dollars by using the
exchange rates quoted at the close of The London Stock Exchange prior to when
the Fund's net asset value is next determined. At December 31, 1995, 100% of the
Fund's long 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 all
available resources including quotations from market makers and 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 would have a significant impact on the value of a security. At
December 31, 1995, none of the Fund's long positions were valued using these
guidelines and procedures.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy by the
counterparty to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings. The Fund's policy is to limit repurchase
agreement transactions to those parties deemed by the Fund's Investment Advisor
to have satisfactory creditworthiness.
C. FEDERAL INCOME TAXES:
The Fund has made no provision for federal income tax for the period from
November 15, 1995 (Commencement of Operations) through 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. FOREIGN CURRENCY TRANSLATION:
The accounting records of the Fund are maintained in U.S. dollars. Investment
securities and all other assets and liabilities of the Fund denominated in a
foreign currency are translated into U.S. dollars at the exchange rate each day.
Purchases and sales of securities, income receipts, and expense payments are
translated into U.S. dollars at the exchange rate in effect on the dates of the
respective transactions.
The Fund does not isolate the portion of the fluctuations on investments
resulting from changes in foreign currency exchange rates from the fluctuations
in market prices of investments held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments.
F. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is accrued
and recorded daily.
G. 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 period from November
15, 1995 (Commencement of Operations) through December 31, 1995, were as
follows:
<TABLE>
<CAPTION>
11/15/95 - 12/31/95 SHARES AMOUNT
- --------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 79,226 $ 794,930
Shares reinvested - -
- --------------------------------------------------------------------------------
79,226 794,930
- --------------------------------------------------------------------------------
Shares redeemed (1,015) (10,182)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Net increase 78,211 $ 784,748
- --------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Fund's 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 period from
November 15, 1995 (Commencement of Operations) through December 31, 1995, the
Fund incurred investment advisory fees and administrative fees of $470 and $117,
respectively. RSIM has agreed to reimburse the Fund for any annual operating
expenses, including investment advisory fees but excluding distribution fees
which exceed the most stringent limits prescribed by any state in which the
Fund's shares are offered for sale. For the period from November 15, 1995
(Commencement of Operations) through December 31, 1995, the Advisor agreed to
reimburse $5,748 of its 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 Officer of RS & Co. John P.
Rohal, a Trustee of the Fund, is a Member of RS Group and Director of Research
for RS & Co. All affiliated and access persons, as defined in the 1940 Act,
follow strict guidelines and policies on personal trading as outlined in the
Fund's Code of Ethics.
C. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested persons
of the Trust, as defined in the 1940 Act, collectively received compensation and
reimbursement of expenses of $742 for the period from November 15, 1995
(Commencement of Operations) through December 31, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution services
and has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940
Act, which is 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 period from November 15, 1995 (Commencement
of Operations) through December 31, 1995, the Fund incurred distribution fees of
$117.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as broker-dealer,
subject to Fund policies as stated in the prospectus, regulatory constraints,
and the ability of RS & Co. to provide competitive prices and commission rates.
All investment transactions in which RS & Co. acts as a broker may only be
executed on an agency basis. Subject to certain constraints, the Fund may make
purchases of securities from offerings or underwritings in which RS & Co. has
been retained by the issuer. For the period from November 15, 1995 (Commencement
of Operations) through December 31, 1995, the Fund paid brokerage commissions of
$515 to RS & Co. which represented 41% of total commissions paid for the period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the cost
of investments purchased or the proceeds from investments sold (excluding short-
term investments), measured as a percentage of the Fund's average monthly
investment portfolio for the period from November 15, 1995 (Commencement of
Operations) through December 31, 1995, was 0%.
B. TAX BASIS OF INVESTMENTS:
At December 31, 1995, the cost of investments for federal income tax purposes
was $389,087. Accumulated net unrealized appreciation on investments was $6,090,
consisting of gross unrealized appreciation and depreciation
of $9,940 and $(3,850), respectively.
C. INVESTMENT PURCHASES AND SALES:
For the period from November 15, 1995 (Commencement of Operations) through
December 31, 1995, the cost of investments purchased and the proceeds from
investments sold (excluding short-term investments) were $389,087 and $0,
respectively.
D. FOREIGN SECURITIES:
Foreign securities investments involve special risks and considerations not
typically associated with those of U.S. origin. These risks include, but are not
limited to, reevaluation of currencies, adverse political, social, and economic
developments, and less reliable information about issuers. Moreover, securities
of many foreign companies and markets may be less liquid and their prices more
volatile than those of U.S. companies and markets.
The Fund intends to invest no more than 40% of its total assets exclusively in
one foreign country. At December 31, 1995, the Fund had its largest
concentration of foreign investments, worth 13% of the Fund's total assets, in
Canada.
19
<PAGE>
THE GLOBAL NATURAL RESOURCES FUND ANNUAL RESULTS
INDEPENDENT ACCOUNTANTS' REPORT
To the Shareholders and Board of Trustees of
The Robertson Stephens Global Natural Resources 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 Global Natural Resources 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, the changes in its net assets and the financial highlights for the
period from November 15, 1995 (Commencement of Operations), through December 31,
1995, 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 audit. We conducted our audit 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 audit, 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, provides 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 Global Natural Resources 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 GLOBAL NATURAL RESOURCES 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 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.
THE VALUE+GROWTH FUND
A GROWTH FUND FOR VALUE-CONSCIOUS INVESTORS - Invests in mid-cap
growth companies with favorable price/earnings ratios in sectors with the
potential for above-average growth. Ability to short sell. No load. Managed by
Ron Elijah.
For 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
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.
