<PAGE>
As filed with the Securities and Exchange Commission on January 16, 1996
Registration No. 33-16439
811-5159
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /x/
PRE-EFFECTIVE AMENDMENT NO. / /
POST-EFFECTIVE AMENDMENT NO. 24 /x/
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /x/
AMENDMENT NO. 26 /x/
ROBERTSON STEPHENS INVESTMENT TRUST
(Exact Name of Registrant as Specified in Charter)
555 California Street
San Francisco, California 94104
(Address of Principal Executive Offices)
Registrant's Telephone Number, including Area Code: (800) 766-3863
G. RANDY HECHT
c/o Robertson, Stephens & Company, L.P.
555 California Street
San Francisco, California 94104
(Name and Address of Agent for Service)
Copies to:
TIMOTHY W. DIGGINS, ESQUIRE
ROPES & GRAY
One International Place
Boston, MA 02110-2624
Approximate date of proposed public offering : As soon as practicable after
this Amendment becomes effective.
It is proposed that this filing will become effective:
(check appropriate box)
/ / Immediately upon filing pursuant to paragraph (b);
/x / On January 18, 1996 pursuant to paragraph (b)
/ / 60 days after filing pursuant to paragraph (a)(1);
/ / On (date) pursuant to paragraph (a)(1);
/ / 75 days after filing pursuant to paragraph (a)(2); or
/ / On (date) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
/ / This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
The Registrant has registered an indefinite number of its shares of beneficial
interest, pursuant to Rule 24f-2 under the Investment Company Act of 1940. The
Registrant filed a Rule 24f-2 Notice on May 31, 1995 for the fiscal year ended
March 31, 1995.
<PAGE>
ROBERTSON STEPHENS INVESTMENT TRUST
Cross Reference Sheet
<TABLE>
<CAPTION>
Information Required in
Prospectus by Form N-1A
Registration Statement Part A Prospectus Caption
- ---------------------- ------ --------------------------
<S> <C>
Item 1. Cover Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Prospectus Cover
Item 2. Synopsis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Expense Summary
Item 3. Condensed Financial Information. . . . . . . . . . . . . . . . . . . . . Financial Highlights; and see Statement of
Additional Information - Financial
Statements
Item 4. General Description of Registrant. . . . . . . . . . . . . . . . . . . . Prospectus Cover; Investment Objectives
and Policies; Management of the Funds;
Additional Information
Item 5. Management of the Fund . . . . . . . . . . . . . . . . . . . . . . . . . Expense Summary; Management of the
Funds; Additional Information;
Item 5A. Management's Discussion of Fund Performance . . . . . . . . . . . . . . Included in Registrant's Annual Reports to
Shareholders for Fiscal Year ended March
31, 1995
Item 6. Capital Stock and Other Securities . . . . . . . . . . . . . . . . . . . Dividends, Distributions and Taxes;
Additional Information; Back Cover Page;
and see Statement of Additional
Information - Management of the Funds
Item 7. Purchase of Securities Being Offered . . . . . . . . . . . . . . . . . . How to Purchase Shares; How Net Asset
Value is Determined; The Funds'
Distributor; Back Cover Page
Item 8. Redemption or Repurchase . . . . . . . . . . . . . . . . . . . . . . . . How to Redeem Shares
Item 9. Pending Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . . Inapplicable
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Information Required in Statement of Statement of Additional
Additional Information by Form N-1A Information Caption For
Registration Statement Part B Each Series
- ---------------------- ------ -----------
<S> <C>
Item 10. Cover Page. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover Page
Item 11. Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover Page
Item 12. General Information and History . . . . . . . . . . . . . . . . . . . . Additional Information
Item 13. Investment Objectives and Policies. . . . . . . . . . . . . . . . . . . Investment Objectives and Policies; The
Funds' Investment Limitations
Item 14. Management of the Fund . . . . . . . . . . . . . . . . . . . . . . . . Management of the Funds
Item 15. Control Persons and Principal Holders of Securities . . . . . . . . . . Management of the Funds
Item 16. Investment Advisory and Other Services. . . . . . . . . . . . . . . . . Management of the Funds; The Funds'
Distributor; Additional Information
Item 17. Brokerage Allocation and Other Services . . . . . . . . . . . . . . . . Management of the Funds; The Funds'
Distributor
Item 18. Capital Stock and Other Securities. . . . . . . . . . . . . . . . . . . See Prospectus - Additional Information
Item 19. Purchase, Redemption and Pricing of Securities Being Offered. . . . . . How Net Asset Value is Determined; and
see Prospectus - How to Purchase Shares;
Prospectus - How to Redeem Shares
Item 20. Tax Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxes; and see Prospectus - Dividends,
Distributions and Taxes
Item 21. Underwriter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Funds' Distributor; and see Prospectus The
- Funds' Distributor
Item 22. Calculations of Performance Data. . . . . . . . . . . . . . . . . . . . How Performance is Determined
Item 23. Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . Financial Statements
</TABLE>
The information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C to this Registration Statement.
<PAGE>
ROBERTSON STEPHENS INVESTMENT TRUST
(The Robertson Stephens Contrarian Fund)
(The Robertson Stephens Developing Countries Fund)
(The Robertson Stephens Emerging Growth Fund)
(The Robertson Stephens Global Low-Priced Stock Fund)
(THE ROBERTSON STEPHENS GLOBAL NATURAL RESOURCES FUND)
(The Robertson Stephens Growth & Income Fund)
(The Robertson Stephens Information Age Fund)
(The Robertson Stephens Partners Fund)
(The Robertson Stephens Value + Growth Fund)
------------------------------
FORM N-lA
PART A
------------------------------
<PAGE>
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ROBERTSON STEPHENS MUTUAL FUNDS
555 California Street
San Francisco, CA 94104 PROSPECTUS
800-766-FUND November 15, 1995
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Robertson Stephens Investment Trust offers shares of nine mutual funds. The
Funds make available the expertise of the investment professionals at Robertson
Stephens Investment Management:
THE ROBERTSON STEPHENS CONTRARIAN FUND seeks maximum long-term growth by
investing in growing companies worldwide that have been overlooked by other
investors. The Contrarian Fund also seeks to take advantage of both rising and,
to a lesser degree, declining markets. The Fund may borrow money in an attempt
to increase its investment return.
THE ROBERTSON STEPHENS DEVELOPING COUNTRIES FUND seeks long-term capital
appreciation by investing primarily in developing country equity securities. The
Fund may borrow money in an attempt to increase its investment return.
THE ROBERTSON STEPHENS EMERGING GROWTH FUND seeks capital appreciation by
investing primarily in common stocks of emerging growth companies with
above-average growth prospects.
THE ROBERTSON STEPHENS GLOBAL LOW-PRICED STOCK FUND seeks long-term growth
of capital by investing in low-priced stocks of companies around the world.
THE ROBERTSON STEPHENS GLOBAL NATURAL RESOURCES FUND seeks long-term capital
appreciation by investing in securities of issuers located anywhere in the world
in the natural resources industries.
THE ROBERTSON STEPHENS GROWTH & INCOME FUND seeks long-term total return by
investing in equity securities and debt securities, focusing on small- and
mid-cap companies that offer potential for capital appreciation, current income,
or both.
THE ROBERTSON STEPHENS INFORMATION AGE FUND seeks long-term capital
appreciation by aggressive investing primarily in companies within the
information technology sector.
THE ROBERTSON STEPHENS PARTNERS FUND seeks long-term growth by investing
primarily in equity securities of U.S. small-cap companies, using a value
methodology combining Graham & Dodd balance sheet analysis with cash flow
analysis.
THE ROBERTSON STEPHENS VALUE + GROWTH FUND seeks capital appreciation by
investing primarily in mid-cap growth companies with favorable relationships
between price/earnings ratios and growth rates, in sectors offering the
potential for above-average returns.
This Prospectus explains concisely the information about the Trust that a
prospective investor should know before investing in the Funds. Please read it
carefully and keep it for future reference. Investors can find more detailed
information about the Funds in the November 15, 1995 Statement of Additional
Information, as amended from time to time. For a free copy of the Statement of
Additional Information, please call 1-800-766-FUND. The Statement of Additional
Information has been filed with the Securities and Exchange Commission and is
incorporated into this Prospectus by reference.
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<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
PAGE
-----
Expense Summary........................ 2
Financial Highlights................... 3
Investment Objectives and Policies..... 5
Management of the Funds................ 16
How to Purchase Shares................. 19
How to Redeem Shares................... 21
The Funds' Distributor................. 22
Dividends, Distribution and Taxes...... 23
How Net Asset Value is Determined...... 23
How Performance is Determined.......... 23
Additional Information................. 24
</TABLE>
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
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EXPENSE SUMMARY
The following table summarizes an investor's maximum transaction costs from
investing in each of the Funds and expenses incurred by each of the Funds based
on its most recent fiscal year (except in the case of Funds which have only
recently commenced operations, where the table shows the expenses those Funds
expect to incur in their first fiscal year). The Example shows the cumulative
expenses attributable to a hypothetical $1,000 investment in the Funds over
specified periods.
<TABLE>
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES:
Maximum Sales Load Imposed on Purchases None
Maximum Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load None
Redemption Fee* None
Exchange Fee None
</TABLE>
- ------------------------------
* A $9.00 fee is charged for redemptions made by bank wire.
ANNUAL FUND OPERATING EXPENSES:
(as a percentage of average net assets)
<TABLE>
<CAPTION>
GLOBAL GLOBAL GROWTH
DEVELOPING EMERGING LOW-PRICED NATURAL & INFORMATION
CONTRARIAN COUNTRIES GROWTH STOCK RESOURCES INCOME AGE
----------- ------------ ----------- ------------ ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Management Fees(1)............... 1.38% 1.25% 1.00% 1.00% 1.00% 1.00% 1.00%
Rule 12b-1 Expenses.............. 0.75% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Other Expenses(1)................ 0.33% 0.35% 0.31% 0.60% 0.60% 0.60% 0.60%
----------- ------------ ----------- ------------ ----------- ----- ------------
Total Fund Operating
Expenses(1)..................... 2.46% 1.85% 1.56% 1.85% 1.85% 1.85% 1.85%
<CAPTION>
VALUE +
PARTNERS GROWTH
---------- ----------
<S> <C> <C>
Management Fees(1)............... 1.25% 1.25%
Rule 12b-1 Expenses.............. 0.25% None
Other Expenses(1)................ 0.35% 0.43%
---------- ----------
Total Fund Operating
Expenses(1)..................... 1.85% 1.68%
</TABLE>
- ------------------------------
(1) Reflecting applicable expense limitations.
EXAMPLE
An investment of $1,000 in the Fund would incur the following expenses, assuming
5% annual return and redemption at the end of each period:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
The Contrarian Fund $ 25 $ 77 $ 131 $ 280
The Developing Countries Fund $ 19 $ 58 $ 100 $ 217
The Emerging Growth Fund $ 16 $ 49 $ 85 $ 186
The Global Low-Priced Stock Fund $ 19 $ 58 N/A N/A
The Global Natural Resources Fund $ 19 $ 58 N/A N/A
The Growth & Income Fund $ 19 $ 58 N/A N/A
The Information Age Fund $ 19 $ 58 N/A N/A
The Partners Fund $ 19 $ 58 N/A N/A
The Value + Growth Fund $ 17 $ 53 $ 91 $ 199
</TABLE>
This information is provided to help investors understand the operating expenses
of the Funds. THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
PERFORMANCE. ACTUAL EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. Management
Fees and Total Fund Operating Expenses for the Contrarian Fund, and Other
Expenses and Total Fund Operating Expenses for the Developing Countries Fund
reflect expense limitations in effect for the most recent fiscal year. In
addition, Rule 12b-1 Expenses for the Developing Countries Fund have been
restated to reflect a reduction in such Expenses. In the absence of the expense
limitations the Management Fees and Total Fund Operating Expenses for the year
would have been 1.50% and 2.58%, respectively, for the Contrarian Fund, and the
Other Expenses and the Total Fund Operating Expenses for the Developing
Countries Fund would have been 1.96% and 3.46%, respectively. The Management
Fees paid by the Funds are higher than those paid by most other mutual funds.
Because of Rule 12b-1 fees paid by certain of the Funds, long-term shareholders
of those Funds may pay more than the economic equivalent of the maximum
front-end sales load permitted under applicable broker-dealer sales rules. The
Trustees have proposed to shareholders of the Value + Growth Fund that they
approve a Distribution Plan under which the Fund would pay fees to Robertson,
Stephens & Company, L.P. at an annual rate of 0.25% of the Fund's average daily
net assets. If the Plan is implemented, the Fund's Management Fees would be
reduced by the amount of any payments to Robertson, Stephens & Company, L.P.
under the Plan. See "The Funds' Distributor," below.
2
<PAGE>
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FINANCIAL HIGHLIGHTS
THE CONTRARIAN FUND, THE DEVELOPING COUNTRIES FUND, AND
THE VALUE + GROWTH FUND
- --------------------------------------------------------------------------------
The financial highlights presented below, covering the life of each Fund,
have been audited by Price Waterhouse LLP, independent accountants. The audited
financial statements for these periods are contained in the Statement of
Additional Information.
<TABLE>
<CAPTION>
THE
DEVELOPING
COUNTRIES
THE CONTRARIAN FUND FUND THE VALUE + GROWTH FUND
-------------------- ----------- -------------------------------
FOR THE FOR THE FOR THE
FOR THE PERIOD PERIOD FOR THE FOR THE PERIOD
YEAR 6/3/93 5/2/94 YEAR YEAR 4/21/92
ENDED THROUGH THROUGH ENDED ENDED THROUGH
3/31/95 3/31/94 3/31/95 3/31/95 3/31/94 3/31/93
--------- --------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period.............................. $ 12.34 $ 10.00 $ 10.00 $ 13.56 $ 11.94 $ 10.00
Income from Investment Operations:
Net investment income/(loss)....... (0.04) (0.02) 0.06 (0.18) (0.04) 0.12
Net realized gain/(loss) and
unrealized appreciation/
(depreciation) on investments..... (1.35) 2.36 (1.36) 5.07 1.99 1.88
--------- --------- ----------- --------- --------- ---------
Total from investment operations... (1.39) 2.34 (1.30) 4.89 1.95 2.00
Distributions:
Dividends from net investment
income............................ -- -- 0.04 -- (0.03) (0.06)
Distribution from net realized
capital gain...................... (0.25) -- (0.09) (.20) (0.30) --
--------- --------- ----------- --------- --------- ---------
Total from investment operations... (0.25) -- (0.13) (.20) (0.33) (0.06)
Net asset value, end of period....... $ 10.70 $ 12.34 $ 8.57 $ 18.25 $ 13.56 $ 11.94
Total Return......................... (11.23)% 23.40% (13.14)% 36.27% 16.32% 20.05%
Ratios/Supplemental Data:
Net assets, end of period
(thousands)......................... $ 397,646 $ 484,951 $ 8,345 $ 428,903 $ 44,500 $ 17,833
Ratio of net operating expenses to
average net assets.................. 2.46 %(1 2.22 (1) 3.15 (2) 1.68% 1.55 %(3 1.33%(3)*
Ratio of net investment income/(loss)
to average net assets............... (0.27 (1) (0.77 1)* 0.72 (2) (1.09)% (0.51 (3) 1.26%(3)*
Portfolio turnover rate.............. 79% 14% 124% 232% 250% 210%
</TABLE>
Per share data is determined by using the average number of shares outstanding
throughout the period.
* Annualized
(1) If the Contrarian Fund had paid all of its expenses and there had been no
reimbursement by Robertson, Stephens & Company Investment Management, L.P.
("RSIM, L.P."), the ratio of expenses to average net assets for the year
ended March 31, 1995 would have been 2.58%, and the ratio of net investment
income/(loss) to average net assets would have been (0.42)%.
(2) If the Developing Countries Fund had paid all of its expenses and there had
been no reimbursement by RSIM, L.P., the ratio of expenses to average net
assets for the period ended March 31, 1995 would have been 3.46%
(annualized), and the ratio of net investment income to average net assets
would have been 0.41% (annualized).
(3) If the Value + Growth Fund had paid all of its expenses and had received no
reimbursement from RSIM, L.P., the ratio of expenses to average net assets
for the period ended March 31, 1994 and March 31, 1993 would have been 2.35%
and 2.71% (annualized), respectively, and the ratio of net investment
income/(loss) to average net assets would have been (1.31)% and (0.12)%
(annualized), respectively.
3
<PAGE>
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FINANCIAL HIGHLIGHTS
(CONTINUED)
THE EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
The financial highlights presented below, covering the life of the Fund,
have been audited by Price Waterhouse LLP, independent accountants, for the
years ended after December 31, 1990. The audited financial statements of the
Fund for these periods are contained in the Statement of Additional Information.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
THREE
YEAR YEAR MONTHS YEAR ENDED DECEMBER 31, FOR THE ONE
ENDED ENDED ENDED ----------------------------------------------------- MONTH ENDED
3/31/95 3/31/94 3/31/93 1992 1991 1990 1989 1988 12/31/87(1)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value,
beginning of
period............. $18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67 $ 11.46 $ 9.09 $ 7.97 $ 6.32
Income from
Investment
Operations:
Net investment
income/(loss).... (0.17) (0.40) (0.02) (0.15) (0.09) 0.00 (0.09) (0.21) (0.02)
Net realized and
unrealized
appreciation/
(depreciation) on
investments...... 2.26 4.06 (2.04) (0.31) 6.82 1.07 4.06 1.33 1.67
Total from
investment
operations....... 2.09 3.66 (2.06) (0.46) 6.73 1.07 3.97 1.12 1.65
- -------------------------------------------------------------------------------------------------------------------------
Distributions:
Dividends from net
investment
income........... -- -- -- -- -- -- -- -- --
Distributions from
net realized
capital gain..... (2.10) 0.00 0.00 (0.27) (0.90) (0.86) (1.60) -- --
Total
Distributions.... (2.10) 0.00 0.00 (0.27) (0.90) (0.86) (1.60) -- --
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period.......... $18.36 $ 18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67 $ 11.46 $ 9.09 $ 7.97
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Total Return........ 12.01% 24.88% (12.28)% (2.55)% 58.70% 9.57% 44.45% 14.05% 26.11%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental
Data:
Net assets, end of
period
(thousands)........ $182,275 $ 168,192 $ 228,893 $ 277,531 $ 141,929 $ 22,931 $ 12,830 $ 7,583 $ 7,396
Ratio of net
operating expenses
to average net
assets............. 1.56% 1.60% 1.54%* 1.49% 1.59% 1.88% 2.15% 2.85% 0.25%
Ratio of net
investment
income/(loss) to
average net
assets............. (0.96)% (1.27)% (0.61)%* (0.92)% (0.68)% (0.02)% (0.75)% (2.44)% (0.21)%
Portfolio turnover
rate............... 280% 274% 43% 124% 147% 272% 236% 139% 8%
</TABLE>
Per share data is determined by using the average number of shares outstanding
throughout the period.
(1) Data for 1987 is limited to the one month after the Emerging Growth Fund's
shares were first offered to the public on November 30, 1987. The ratios and
portfolio turnover rate are not annualized for this one month.
* Annualized
4
<PAGE>
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INVESTMENT OBJECTIVES AND POLICIES
The Robertson Stephens Mutual Funds are designed to make available to mutual
fund investors the expertise of the investment professionals at Robertson,
Stephens & Company Investment Management, L.P. and Robertson Stephens Investment
Management, Inc. (Robertson, Stephens & Company Investment Management, L.P. and
Robertson Stephens Investment Management, Inc. are referred to collectively in
this Prospectus as "Robertson Stephens Investment Management").
THE FUNDS' INVESTMENT STRATEGIES AND PORTFOLIO INVESTMENTS WILL DIFFER FROM
THOSE OF MOST OTHER MUTUAL FUNDS. ROBERTSON STEPHENS INVESTMENT MANAGEMENT SEEKS
AGGRESSIVELY TO IDENTIFY FAVORABLE SECURITIES, ECONOMIC AND MARKET SECTORS, AND
INVESTMENT OPPORTUNITIES THAT OTHER INVESTORS AND INVESTMENT ADVISERS MAY NOT
HAVE IDENTIFIED. WHEN ROBERTSON STEPHENS INVESTMENT MANAGEMENT IDENTIFIES SUCH
AN INVESTMENT OPPORTUNITY, IT MAY DEVOTE MORE OF A FUND'S ASSETS TO PURSUING
THAT OPPORTUNITY, OR AT DIFFERENT TIMES, THAN MANY OTHER MUTUAL FUNDS, AND MAY
SELECT INVESTMENTS FOR THE FUND THAT WOULD BE INAPPROPRIATE FOR LESS AGGRESSIVE
MUTUAL FUNDS. IN ADDITION, UNLIKE MOST OTHER MUTUAL FUNDS, MANY OF THE FUNDS MAY
ENGAGE IN SHORT SALES OF SECURITIES WHICH INVOLVE SPECIAL RISKS.
None of the Funds, other than the Growth & Income Fund, invests for current
income. Each of the Funds may hold a portion of its assets in cash or money
market investments.
The investment objectives and policies of each Fund may, unless otherwise
specifically stated, be changed by the Trustees of the Trust without shareholder
approval. All percentage limitations on investments will apply at the time of
investment and will not be considered violated unless an excess or deficiency
occurs or exists immediately after and as a result of the investment. There can,
of course, be no assurance that a Fund will achieve its investment objective.
For a description of certain risks associated with the Funds' investment
practices, see "Other investment practices and risk considerations", below.
THE CONTRARIAN FUND
- -------------------------------------
THE CONTRARIAN FUND'S INVESTMENT OBJECTIVE IS MAXIMUM LONG-TERM GROWTH.
Normally, the Contrarian Fund seeks this growth by aggressive yet flexible
investing world-wide in growing companies that are attractively priced. The
Contrarian Fund focuses its investments primarily on equity securities of
domestic, multinational, and foreign companies whose potential values generally
have been overlooked by other investors. Such companies include attractively
priced businesses that have not yet been discovered or become popular,
previously unpopular companies having growth potential due to changed
circumstances, companies that have declined in value and no longer command an
investor following, and previously popular companies temporarily out of favor
due to short-term factors.
In implementing its "contrarian" investment strategy, the Fund may take
positions that are different from those taken by other mutual funds. For
example, the Fund may sell the stocks of some issuers short, and may take
positions in options and futures contracts in anticipation of a market decline.
The Fund is a non-diversified mutual fund.
THE DEVELOPING COUNTRIES FUND
- -------------------------------------
THE DEVELOPING COUNTRIES FUND'S INVESTMENT OBJECTIVE IS LONG-TERM CAPITAL
APPRECIATION. The Fund invests primarily in a non-diversified portfolio of
publicly traded developing country equity securities. The Fund may also, to a
lesser degree, invest in private placements of developing country equity
securities.
5
<PAGE>
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Developing country equity securities are securities which are principally
traded in the capital markets of a developing country; securities of companies
that derive at least 50% of their total revenues from either goods produced or
services performed in developing countries or from sales made in developing
countries, regardless of where the securities of such companies are principally
traded; securities of companies organized under the laws of, and with a
principal office in, a developing country; securities of investment companies
(such as country funds) that principally invest in developing country
securities; and American Depository Receipts (ADRs) and Global Depository
Receipts (GDRs) with respect to the securities of such companies. Developing
countries are countries that in the opinion of Robertson Stephens Investment
Management are generally considered to be developing countries by the
international financial community. The Fund will normally invest at least 65% of
its assets in developing country equity securities. The Fund is a
non-diversified mutual fund.
The Developing Countries Fund may invest up to 10% of its total assets in
shares of other investment companies. Such other investment companies would
likely pay expenses similar to those paid by the Fund, including, for example,
advisory and administrative fees. Robertson Stephens Investment Management will
waive its investment advisory fees on the Fund's assets invested in other
open-end investment companies, to the extent of the advisory fees of those
investment companies attributable to the Fund's investment.
In selecting investments for the Fund, Robertson Stephens Investment
Management may consider a number of factors in evaluating potential investments,
including political risks, classic macroeconomic variables, and equity market
valuations. Robertson Stephens Investment Management may also focus on the
quality of a company's management, the company's growth prospects, and the
financial well being of the company. The Developing Countries Fund's investments
generally will reflect a broad cross-section of countries, industries, and
companies in order to minimize risk. In situations where the market for a
particular security is determined by Robertson Stephens Investment Management to
be sufficiently liquid, the Fund may engage in short sales. Prior to July 1995,
the Developing Countries Fund was known as the "Robertson Stephens Emerging
Markets Fund."
THE EMERGING GROWTH FUND
- -------------------------------------
THE EMERGING GROWTH FUND'S INVESTMENT OBJECTIVE IS CAPITAL APPRECIATION. The
Fund invests in an actively managed diversified portfolio of equity securities
(principally common stocks) of emerging growth companies. Emerging growth
companies are companies that, in the opinion of Robertson Stephens Investment
Management, have the potential, based on superior products or services,
operating characteristics, and financing capabilities, for more rapid growth
than the overall economy.
The Emerging Growth Fund's investments generally are held in a portfolio of
securities of companies in industry segments that are experiencing rapid growth
such as segments of high technology, environmental and health care-related
industries and in companies with proprietary manufacturing or service
businesses. Robertson Stephens Investment Management may consider a number of
factors in evaluating potential investments, including the quality of
management, the state of development of the technology involved, the market for
the company's products, and the financial condition of the company. Among the
aspects of a company's financial condition which may be considered by Robertson
Stephens Investment Management are the company's earnings growth prospects, the
availability of cash flow and assets to finance research and product
development, and the company's return on capital.
THE GLOBAL LOW-PRICED STOCK FUND
- -------------------------------------
THE GLOBAL LOW-PRICED STOCK FUND'S INVESTMENT OBJECTIVE IS LONG-TERM GROWTH.
The
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Fund intends to invest in "low-priced" stocks (prices no greater than $10 per
share) of companies worldwide that have future growth potential, but are
overlooked or underappreciated by other investors.
Robertson Stephens Investment Management believes there are substantial
opportunities to discover and invest in undervalued companies that have
long-term growth prospects. Such companies include attractively priced
businesses that have not yet been discovered by other investors, previously
out-of-favor companies having growth potential due to changing circumstances,
companies that have declined in value and no longer command an investor
following, and companies temporarily out of favor due to short-term factors. In
most cases there will be little coverage by Wall Street analysts of the
companies in which the Fund invests. Institutional ownership will also usually
be limited.
It has been the experience of Robertson Stephens Investment Management that
attractive investment opportunities often exist in companies whose stock price
is $10 or less per share. For many reasons, including limits on purchasing the
stocks "on margin" (with borrowed money), many investors do not buy low-priced
stocks. The result is less competition from other investors, and the potential
that a company's value may not be reflected fully in its stock price.
In selecting securities for the Fund's portfolio, Robertson Stephens
Investment Management uses a "bottom-up" analysis, looking at companies of all
sizes, and in all industries and geographical markets. Robertson Stephens
Investment Management uses fundamental analysis focusing on a company's
financial condition, profitability prospects, and capital needs going forward.
Robertson Stephens Investment Management will likely invest in certain
stocks before other investors recognize their value. The result could be a lack
of stock price movement in the near term. Investors should therefore have a
long-term investment horizon when investing in the Fund.
Although the Fund will seek to invest principally in common stocks, it may
also invest any portion of its assets in preferred stocks, warrants, and debt
securities if Robertson Stephens Investment Management believes they would help
achieve the Fund's objective. The Fund will normally invest substantially all of
its assets in low-priced stocks, and will normally invest in securities of
issuers located in at least three countries, one of which may be the United
States.
Smaller companies may present greater opportunities for investment return,
but may also involve greater risks. They may have limited product lines,
markets, or financial resources, or may depend on a limited management group.
Their securities may trade less frequently and in limited volume. As a result,
the prices of these securities may fluctuate more than prices of securities of
larger, more widely traded companies. See "Investments in smaller companies,"
below.
THE GLOBAL NATURAL
RESOURCES FUND
- -------------------------------------
THE GLOBAL NATURAL RESOURCES FUND'S INVESTMENT OBJECTIVE IS LONG-TERM
CAPITAL APPRECIATION. The Fund will invest primarily in securities of issuers in
the natural resources industries. The Fund is designed for investors who believe
that investment in securities of such companies provides the opportunity for
capital appreciation, while offering the potential over the long term to limit
the adverse effects of inflation. The Fund may invest in securities of issuers
located anywhere in the world if Robertson Stephens Investment Management
believes they offer the potential for capital appreciation.
Although the Fund will seek to invest principally in common stocks, it may
also invest in preferred stocks, securities convertible into common stocks or
preferred stocks, and warrants to purchase common stocks or preferred stocks.
The Fund will seek to invest in companies with
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strong potential for earnings growth, and whose earnings and tangible assets
could benefit from accelerating inflation. Robertson Stephens Investment
Management believes that companies in the natural resources industries with the
flexibility to adjust prices or control operating costs offer attractive
opportunities for capital growth when inflation is rising.
Companies in the NATURAL RESOURCES INDUSTRIES include companies that
Robertson Stephens Investment Management considers to be 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. Natural resources
include, for example, energy sources, precious metals, forest products, real
estate, nonferrous metals, and other basic commodities.
Companies in the natural resources industries may include, for example:
- - COMPANIES THAT PARTICIPATE IN THE DISCOVERY
AND DEVELOPMENT OF NATURAL RESOURCES from new or conventional sources.
- - COMPANIES THAT OWN OR PRODUCE NATURAL
RESOURCES such as oil, natural gas, precious metals, and other commodities.
- - COMPANIES THAT ENGAGE IN THE
TRANSPORTATION, DISTRIBUTION, OR PROCESSING of natural resources.
- - COMPANIES THAT CONTRIBUTE NEW
TECHNOLOGIES FOR THE PRODUCTION OR EFFICIENT USE OF NATURAL RESOURCES, such as
systems for energy conversion, conservation, and pollution control.
- - COMPANIES THAT PROVIDE RELATED SERVICES
such as mining, drilling, chemicals, and related parts and equipment.
A particular company will be considered to be principally engaged in the
natural resources industries if at the time of investment Robertson Stephens
Investment Management determines that at least 50% of the company's assets,
gross income, or net profits are committed to, or derived from, those
industries. A company will also be considered to be principally engaged in the
natural resources industries if Robertson Stephens Investment Management
considers that the company has the potential for capital appreciation primarily
as a result of particular products, technology, patents, or other market
advantages in those industries.
The Fund will normally invest at least 65% of its assets in securities of
companies in the natural resources industries. The Fund may invest the remainder
of its assets in securities of companies in any industry if Robertson Stephens
Investment Management believes they would help achieve the Fund's objective of
long-term capital appreciation. The portion of the Fund's assets invested in
such securities will vary, depending on Robertson Stephens Investment
Management's evaluation of economic conditions, inflationary expectations, and
other factors affecting companies in the natural resources industries and other
sectors. The Fund may also sell securities short if it expects their market
price to decline. The Fund will normally invest in securities of issuers located
in at least three countries, one of which may be the United States.
Because the Fund's investments are concentrated in the natural resources
industries, the value of its shares will be especially affected by factors
peculiar to those industries and may fluctuate more widely than the value of
shares of a portfolio which invests in a broader range of industries. For
example, changes in commodity prices may affect both the industries which
produce, refine, and distribute them and industries which supply alternate
sources of commodities. In addition, certain of these industries are generally
subject to greater government regulation than many other industries; therefore,
changes in regulatory policies may have a material effect on the business of
companies in these industries.
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THE GROWTH & INCOME FUND
- -------------------------------------
THE GROWTH & INCOME FUND'S INVESTMENT OBJECTIVE IS LONG-TERM TOTAL RETURN.
The Fund will pursue this objective primarily by investing in equity and debt
securities, focusing on small-and mid-cap companies that offer the potential for
capital appreciation, current income, or both.
The Fund will normally invest the majority of its assets in common and
preferred stocks, convertible securities, bonds, and notes. Although the Fund
will focus on companies with market capitalizations of up to $3 billion, the
Fund intends to remain flexible and may invest in securities of larger
companies. The Fund may also engage in short sales of securities it expects to
decline in price. The Fund intends to pay dividends quarterly; the amount of any
dividends will fluctuate.
Small- and mid-cap companies may present greater opportunities for
investment return, but may also involve greater risks. They may have limited
product lines, markets, or financial resources, or may depend on a limited
management group. Their securities may trade less frequently and in limited
volume. As a result, the prices of these securities may fluctuate more than
prices of securities of larger, widely traded companies. See "Investments in
smaller companies," below.
THE INFORMATION AGE FUND
- -------------------------------------
THE INFORMATION AGE FUND'S INVESTMENT OBJECTIVE IS LONG-TERM CAPITAL
APPRECIATION. The Fund is designed for investors who believe that aggressive
investment in common stocks of companies in the information technology
industries provides significant opportunities for capital appreciation. While
ordinary mutual funds may place some of their portfolios in securities of
companies in the information technology sector, the Robertson Stephens
Information Age Fund focuses its investments in that sector.
Although the Fund will seek to invest principally in common stocks, it may
also invest any portion of its assets in preferred stocks and warrants if
Robertson Stephens Investment Management believes they would help achieve the
Fund's objective. The Fund may also engage in short sales of securities it
expects to decline in price.
Companies in the INFORMATION TECHNOLOGY INDUSTRIES include companies that
Robertson Stephens Investment Management considers to be principally engaged in
the development, production, or distribution of products or services related to
the processing, storage, transmission, or presentation of information or data.
The following examples illustrate the wide range of products and services
provided by these industries:
- - COMPUTER HARDWARE AND SOFTWARE of any
kind, including, for example, semiconductors, minicomputers, and peripheral
equipment.
- - TELECOMMUNICATIONS products and services.
- - MULTIMEDIA products and services,
including, for example, goods and services used in the broadcast and media
industries.
- - DATA PROCESSING products and services.
- - FINANCIAL SERVICES COMPANIES that collect or
disseminate market, economic, and financial information.
A particular company will be considered to be principally engaged in the
information technology industries if at the time of investment Robertson
Stephens Investment Management determines that at least 50% of the company's
assets, gross income, or net profits are committed to, or derived from, those
industries. A company will also be considered to be principally engaged in the
information technology industries if Robertson Stephens Investment Management
considers that the company has the potential for capital appreciation primarily
as a
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result of particular products, technology, patents, or other market advantages
in those industries. The Fund will normally invest at least 65% of its assets in
securities of companies in the information technology industries.
Because the Fund's investments are concentrated in the information
technology industries, the value of its shares will be especially affected by
factors peculiar to those industries and may fluctuate more widely than the
value of shares of a portfolio which invests in a broader range of industries.
For example, many products and services are subject to risks of rapid
obsolescence caused by technological advances. Competitive pressures may have a
significant effect on the financial condition of companies in the information
technology industries. For example, if information technology continues to
advance at an accelerated rate, and the number of companies and product
offerings continues to expand, these companies could become increasingly
sensitive to short product cycles and aggressive pricing. In addition, many of
the activities of companies in the information technology industries are highly
capital intensive, and it is possible that a company which invests substantial
amounts of capital in the development of new products or services will be unable
to recover its investment or otherwise to meet its obligations.
THE PARTNERS FUND
- ------------------------------------
THE PARTNERS FUND'S INVESTMENT OBJECTIVE IS LONG-TERM GROWTH. The Fund will
employ a value methodology to invest in equity securities primarily of companies
with market capitalizations of up to $750 million. This traditional value
methodology combines Graham & Dodd balance sheet analysis with cash flow
analysis.
In selecting investments for the Fund, Robertson Stephens Investment
Management will:
- - Perform fundamental research focusing on
business analysis;
- - Observe how management allocates
capital;
- - Strive to understand the unit economics of
the business of the company;
- - Key on the cash flow rate of return on capital
employed;
- - Discern the sources and uses of cash;
- - Consider how management is
compensated; and
- - Ask how the stock market is pricing the
entire company.
At times, the Fund may invest all or most of its assets in securities of
U.S. issuers. At other times, the Fund may invest any portion of its assets in
foreign securities, if Robertson Stephens Investment Management believes they
offer attractive investment values.
Small companies may present greater opportunities for investment return, but
may also involve greater risks. They may have limited product lines, markets, or
financial resources, or may depend on a limited management group. Their
securities may trade less frequently and in limited volume. As a result, the
prices of these securities may fluctuate more than prices of securities of
larger, widely traded companies. See "Investments in smaller companies," below.
Although the Fund will seek to invest principally in common stocks, it may
also invest in preferred stocks, warrants, and debt securities if Robertson
Stephens Investment Management believes they would help achieve the Fund's
objectives. The Fund may also hold a portion of its assets in cash or money
market instruments. The Fund is a non-diversified mutual fund.
THE VALUE + GROWTH FUND
- -------------------------------------
THE VALUE + GROWTH FUND'S INVESTMENT OBJECTIVE IS CAPITAL APPRECIATION. The
Fund invests primarily in mid-cap growth companies with favorable relationships
between price/earnings ratios and growth rates, in sectors offering the
potential for above-average returns. Mid-cap
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companies are companies with market capitalizations ranging from $750 million to
approximately $2 billion, although the Fund's investments may include securities
of larger or smaller companies.
In selecting investments for the Fund, Robertson Stephens Investment
Management's primary emphasis is typically on evaluating a company's management,
growth prospects, business operations, revenues, earnings, cash flows, and
balance sheet in relationship to its share price. Robertson Stephens Investment
Management may select stocks which it believes are undervalued relative to the
current stock price. Undervaluation of a stock can result from a variety of
factors, such as a lack of investor recognition of (1) the value of a business
franchise and continuing growth potential, (2) a new, improved or upgraded
product, service or business operation, (3) a positive change in either the
economic or business condition for a company, (4) expanding or changing markets
that provide a company with either new earnings direction or acceleration, or
(5) a catalyst, such as an impending or potential asset sale or change in
management, that could draw increased investor attention to a company. Robertson
Stephens Investment Management also may use similar factors to identify stocks
which it believes to be overvalued, and may engage in short sales of such
securities.
OTHER INVESTMENT PRACTICES AND RISK CONSIDERATIONS
- -------------------------------------
The Funds may also engage in the following investment practices, each of
which involves certain special risks. The Statement of Additional Information
contains more detailed information about these practices (some of which may be
considered "derivative" investments), including limitations designed to reduce
these risks.
INVESTMENTS IN SMALLER COMPANIES. Each of the Funds may invest a
substantial portion of its assets in securities issued by small companies. Such
companies may offer greater opportunities for capital appreciation than larger
companies, but investments in such companies may involve certain special risks.
Such companies may have limited product lines, markets, or financial resources
and may be dependent on a limited management group. While the markets in
securities of such companies have grown rapidly in recent years, such securities
may trade less frequently and in smaller volume than more widely held
securities. The values of these securities may fluctuate more sharply than those
of other securities, and a Fund may experience some difficulty in establishing
or closing out positions in these securities at prevailing market prices. There
may be less publicly available information about the issuers of these securities
or less market interest in such securities than in the case of larger companies,
and it may take a longer period of time for the prices of such securities to
reflect the full value of their issuers' underlying earnings potential or
assets.
Some securities of smaller issuers may be restricted as to resale or may
otherwise be highly illiquid. The ability of a Fund to dispose of such
securities may be greatly limited, and a Fund may have to continue to hold such
securities during periods when Robertson Stephens Investment Management would
otherwise have sold the security. It is possible that Robertson Stephens
Investment Management or its affiliates or clients may hold securities issued by
the same issuers, and may in some cases have acquired the securities at
different times, on more favorable terms, or at more favorable prices, than a
Fund.
SHORT SALES. (ALL FUNDS EXCEPT THE EMERGING GROWTH, GLOBAL LOW-PRICED
STOCK, AND PARTNERS FUNDS.) When Robertson Stephens Investment Management
anticipates that the price of a security will decline, it may sell the security
short and borrow the same security from a broker or other institution to
complete the sale. A Fund may make a profit or incur a loss depending upon
whether the market price of the security decreases or increases between the date
of the short sale and the date on which the Fund must replace the borrowed
security.
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All short sales must be fully collateralized, and no Fund will sell
securities short if, immediately after and as a result of the sale, the value of
all securities sold short by the Fund exceeds 25% of its total assets. Each of
the Funds limits short sales of any one issuer's securities to 2% of the Fund's
total assets and to 2% of any one class of the issuer's securities.
FOREIGN SECURITIES. The Funds may invest in securities principally traded
in foreign markets. Since foreign securities are normally denominated and traded
in foreign currencies, the value of a Fund's assets may be affected favorably or
unfavorably by currency exchange rates and exchange control regulations. There
may be less information publicly available about a foreign company than about a
U.S. company, and foreign companies are not generally subject to accounting,
auditing, and financial reporting standards and practices comparable to those in
the United States. The securities of some foreign companies are less liquid and
at times more volatile than securities of comparable U.S. companies. Foreign
brokerage commissions and other fees are also generally higher than in the
United States. Foreign settlement procedures and trade regulations may involve
certain risks (such as delay in payment or delivery of securities or in the
recovery of a Fund's assets held abroad) and expenses not present in the
settlement of domestic investments.
In addition, there may be a possibility of nationalization or expropriation
of assets, imposition of currency exchange controls, confiscatory taxation,
political or financial instability, and diplomatic developments that could
affect the value of a Fund's investments in certain foreign countries. Legal
remedies available to investors in certain foreign countries may be more limited
than those available with respect to investments in the United States or in
other foreign countries. In the case of securities issued by a foreign
governmental entity, the issuer may in certain circumstances be unable or
unwilling to meet its obligations on the securities in accordance with their
terms, and a Fund may have limited recourse available to it in the event of
default. The laws of some foreign countries may limit a Fund's ability to invest
in securities of certain issuers located in those foreign countries. Special tax
considerations apply to foreign securities. A Fund may buy or sell foreign
currencies and options and futures contracts on foreign currencies for hedging
purposes in connection with its foreign investments.
Certain Funds may at times invest a substantial portion of their assets in
securities of issuers in developing countries. Investments in developing
countries are subject to the same risks applicable to foreign investments
generally, although those risks may be increased due to conditions in such
countries. For example, the securities markets and legal systems in developing
countries may only be in a developmental stage and may provide few, or none, of
the advantages or protections of markets or legal systems available in more
developed countries. Although many of the securities in which the Funds may
invest are traded on securities exchanges, they may trade in limited volume, and
the exchanges may not provide all of the conveniences or protections provided by
securities exchanges in more developed markets. The Funds may also invest a
substantial portion of their assets in securities traded in the over-the-counter
markets in such countries and not on any exchange, which may affect the
liquidity of the investment and expose the Funds to the credit risk of their
counterparties in trading those investments.
DEBT SECURITIES. Each of the Funds may invest in debt securities from time
to time, if Robertson Stephens Investment Management believes that they might
help achieve the Fund's objective. The Growth & Income Fund and the Partners
Fund may invest without limit in debt securities and other fixed-income
securities. Each of the other Funds may invest in debt securities to the extent
consistent with its investment policies, although Robertson Stephens Investment
Management expects that under normal
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circumstances those Funds would not likely invest a substantial portion of their
assets in debt securities.
The CONTRARIAN FUND and the GROWTH & INCOME FUND may invest in
lower-quality, high-yielding debt securities. Lower-rated debt securities
(commonly called "junk bonds") are considered to be of poor standing and
predominantly speculative. Securities in the lowest rating categories may have
extremely poor prospects of attaining any real investment standing and may be in
default. The rating services' descriptions of securities in the lower rating
categories, including their speculative characteristics, are set forth in the
Statement of Additional Information.
Like those of other fixed-income securities, the values of lower-rated
securities fluctuate in response to changes in interest rates. In addition, the
lower ratings of such securities reflect a greater possibility that adverse
changes in the financial condition of the issuer, or in general economic
conditions, or both, or an unanticipated rise in interest rates, may impair the
ability of the issuer to make payments of interest and principal. Changes by
recognized rating services in their ratings of any fixed-income security and in
the ability or perceived inability of an issuer to make payments of interest and
principal may also affect the value of these investments. See the Statement of
Additional Information.
EACH OF THE OTHER FUNDS will invest only in securities rated "investment
grade" or considered by Robertson Stephens Investment Management to be of
comparable quality. Investment grade securities are rated Baa or higher by
Moody's Investors Service, Inc. or BBB or higher by Standard & Poor's
Corporation. Securities rated Baa or BBB lack outstanding investment
characteristics, have speculative characteristics, and are subject to greater
credit and market risks than higher-rated securities. Descriptions of the
securities ratings assigned by Moody's and Standard & Poor's are described in
the Statement of Additional Information.
Any of the Funds may at times invest in so-called "zero-coupon" bonds and
"payment-in-kind" bonds. Zero-coupon bonds are issued at a significant discount
from face value and pay interest only at maturity rather than at intervals
during the life of the security. Payment-in-kind bonds allow the issuer, at its
option, to make current interest payments on the bonds either in cash or in
additional bonds. The values of zero-coupon bonds and payment-in-kind bonds are
subject to greater fluctuation in response to changes in market interest rates
than bonds which pay interest currently, and may involve greater credit risk
than such bonds.
A Fund will not necessarily dispose of a security when its debt rating is
reduced below its rating at the time of purchase, although Robertson Stephens
Investment Management will monitor the investment to determine whether continued
investment in the security will assist in meeting the Fund's investment
objective.
BORROWING AND LEVERAGE. The CONTRARIAN FUND and DEVELOPING COUNTRIES FUND
may borrow money to invest in additional portfolio securities. This practice,
known as "leverage", increases a Fund's market exposure and its risk. When a
Fund has borrowed money for leverage and its investments increase or decrease in
value, the Fund's net asset value will normally increase or decrease more than
if it had not borrowed money. The interest the Fund must pay on borrowed money
will reduce the amount of any potential gains or increase any losses. The extent
to which a Fund will borrow money, and the amount it may borrow, depend on
market conditions and interest rates. Successful use of leverage depends on
Robertson Stephens Investment Management's ability to predict market movements
correctly. A Fund may at times borrow money by means of reverse repurchase
agreements. Reverse repurchase agreements generally involve the sale by a Fund
of securities held by it and an agreement to repurchase the
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securities at an agreed-upon price, date, and interest payment. Reverse
repurchase agreements will increase a Fund's overall investment exposure and may
result in losses.
OPTIONS AND FUTURES. A Fund may buy and sell call and put options to hedge
against changes in net asset value or to attempt to realize a greater current
return. In addition, through the purchase and sale of futures contracts and
related options, a Fund may at times seek to hedge against fluctuations in net
asset value and to attempt to increase its investment return. The Partners Fund
does not currently expect to engage in transactions in futures contracts.
A Fund's ability to engage in options and futures strategies will depend on
the availability of liquid markets in such instruments. It is impossible to
predict the amount of trading interest that may exist in various types of
options or futures contracts. Therefore, there is no assurance that a Fund will
be able to utilize these instruments effectively for the purposes stated above.
Although a Fund will only engage in options and futures transactions for limited
purposes, those transactions involve certain risks which are described below and
in the Statement of Additional Information.
Transactions in options and futures contracts involve brokerage costs and
may require a Fund to segregate assets to cover its outstanding positions. For
more information, see the Statement of Additional Information.
INDEX FUTURES AND OPTIONS. A Fund may buy and sell index futures contracts
("index futures") and options on index futures and on indices for hedging
purposes (or may purchase warrants whose value is based on the value from time
to time of one or more foreign securities indices). An index future is a
contract to buy or sell units of a particular bond or stock index at an agreed
price on a specified future date. Depending on the change in value of the index
between the time when the Fund enters into and terminates an index futures or
option transaction, the Fund realizes a gain or loss. A Fund may also buy and
sell index futures and options to increase its investment return.
LEAPS AND BOUNDS. The Value + Growth Fund may purchase long-term
exchange-traded equity options called Long-Term Equity Anticipation Securities
("LEAPs") and Buy-Write Options Unitary Derivatives ("BOUNDs"). LEAPs provide a
holder the opportunity to participate in the underlying securities' appreciation
in excess of a fixed dollar amount, and BOUNDs provide a holder the opportunity
to retain dividends on the underlying securities while potentially participating
in the underlying securities' capital appreciation up to a fixed dollar amount.
The Value + Growth Fund will not purchase these options with respect to more
than 25% of the value of its net assets and will limit the premiums paid for
such options in accordance with the most restrictive applicable state securities
laws.
RISKS RELATED TO OPTIONS AND FUTURES STRATEGIES. Options and futures
transactions involve costs and may result in losses. Certain risks arise because
of the possibility of imperfect correlations between movements in the prices of
futures and options and movements in the prices of the underlying security or
index or of the securities held by a Fund that are the subject of a hedge. The
successful use by a Fund of the strategies described above further depends on
the ability of Robertson Stephens Investment Management to forecast market
movements correctly. Other risks arise from a Fund's potential inability to
close out futures or options positions. Although a Fund will enter into options
or futures transactions only if Robertson Stephens Investment Management
believes that a liquid secondary market exists for such option or futures
contract, there can be no assurance that a Fund will be able to effect closing
transactions at any particular time or at an acceptable price. Certain
provisions of the Internal Revenue Code may limit a Fund's ability to engage in
options and futures transactions.
Each Fund expects that its options and futures transactions generally will
be conducted on
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recognized exchanges. A Fund may in certain instances purchase and sell options
in the over-the-counter markets. A Fund's ability to terminate options in the
over-the-counter markets may be more limited than for exchange-traded options,
and such transactions also involve the risk that securities dealers
participating in such transactions would be unable to meet their obligations to
the Fund. A Fund will, however, engage in over-the-counter transactions only
when appropriate exchange-traded transactions are unavailable and when, in the
opinion of Robertson Stephens Investment Management, the pricing mechanism and
liquidity of the over-the-counter markets are satisfactory and the participants
are responsible parties likely to meet their obligations.
A Fund will not purchase futures or options on futures or sell futures if,
as a result, the sum of the initial margin deposits on the Fund's existing
futures positions and premiums paid for outstanding options on futures contracts
would exceed 5% of the Fund's assets. (For options that are "in-the-money" at
the time of purchase, the amount by which the option is "in-the-money" is
excluded from this calculation.)
NON-DIVERSIFICATION AND SECTOR CONCENTRATION. The Contrarian Fund, the
Developing Countries Fund, and the Partners Fund are "non-diversified"
investment companies under the Investment Company Act of 1940. This means that
each of those Funds may invest its assets in a limited number of issuers. Under
the Internal Revenue Code, a Fund generally may not invest more than 25% of its
assets in obligations of any one issuer other than U.S. Government obligations
and, with respect to 50% of its total assets, a Fund may not invest more than 5%
of its total assets in the securities of any one issuer (except U.S. Government
securities). Thus, a Fund may invest up to 25% of its total assets in the
securities of each of any two issuers. This practice involves an increased risk
of loss to a Fund if the market value of a security should decline or its issuer
were otherwise not to meet its obligations.
At times a Fund may invest more than 25% of its assets in securities of
issuers in one or more market sectors such as, for example, the technology
sector. A market sector may be made up of companies in a number of related
industries. A Fund would only concentrate its investments in a particular market
sector if the Fund's investment adviser were to believe the investment return
available from concentration in that sector justifies any additional risk
associated with concentration in that sector. When a Fund concentrates its
investments in a market sector, financial, economic, business, and other
developments affecting issuers in that sector will have a greater effect on the
Fund than if it had not concentrated its assets in that sector.
Currently, the Contrarian Fund has invested a significant portion of its
assets in companies within a number of industries involving base metals,
precious metals, and oil/energy. In addition, the Value + Growth Fund has
invested a significant portion of its assets in companies within a number of
industries in the technology and telecommunications sectors. Accordingly, the
performance of these Funds 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.
SECURITIES LOANS AND REPURCHASE AGREEMENTS. Each of the Funds may lend
portfolio securities to broker-dealers and may enter into repurchase agreements.
These transactions must be fully collateralized at all times, but involve some
risk to a Fund if the other party should default on its obligations and the Fund
is delayed or prevented from recovering the collateral.
DEFENSIVE STRATEGIES. At times, Robertson Stephens Investment Management
may judge that market conditions make pursuing a Fund's basic investment
strategy inconsistent with the best interests of its shareholders. At such
times, Robertson Stephens Investment Management may temporarily use alternative
strategies, primarily designed to reduce fluctuations in the values of the
Fund's assets. In implementing these
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"defensive" strategies, a Fund may invest in U.S. Government securities, other
high-quality debt instruments, and other securities Robertson Stephens
Investment Management believes to be consistent with the Fund's best interests.
PORTFOLIO TURNOVER. The length of time a Fund has held a particular
security is not generally a consideration in investment decisions. The
investment policies of a Fund may lead to frequent changes in the Fund's
investments, particularly in periods of volatile market movements. A change in
the securities held by a Fund is known as "portfolio turnover." Portfolio
turnover generally involves some expense to a Fund, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestment in other securities. Such sales may result in
realization of taxable capital gains. Annual portfolio turnover is expected to
be less than 100% for the Partners Fund and the Global Natural Resources Fund
and 200% for the Growth & Income, Global Low-Priced Stock, and Information Age
Funds. The Portfolio turnover rates for the other Funds are set forth under
"Financial Highlights."
MANAGEMENT OF THE FUNDS
The Trustees of the Trust are responsible for generally overseeing the
conduct of the Trust's business. ROBERTSON, STEPHENS & COMPANY INVESTMENT
MANAGEMENT, L.P., 555 California Street, San Francisco, CA 94104, is the
investment adviser for each of the Funds other than the Emerging Growth Fund.
Robertson, Stephens & Company Investment Management, L.P., a California limited
partnership, was formed in 1993 and is registered as an investment adviser with
the Securities and Exchange Commission. The general partner of Robertson,
Stephens & Company Investment Management, L.P. is Robertson, Stephens & Company,
Inc., and the principal limited partner is Robertson, Stephens & Company, L.P.,
the Funds' distributor and a major investment banking firm specializing in
emerging growth companies that has developed substantial investment research,
underwriting, and venture capital expertise. Since 1978, Robertson, Stephens &
Company, L.P. has managed underwritten public offerings for over $15.23 billion
of securities of emerging growth companies. Robertson, Stephens & Company
Investment Management, L.P. and its affiliates have in excess of $2.7 billion
under management in public and private investment funds. Robertson, Stephens &
Company, L.P., its general partner, Robertson, Stephens & Company, Inc., and
Sanford R. Robertson may be deemed to be control persons of Robertson, Stephens
& Company Investment Management, L.P.
ROBERTSON STEPHENS INVESTMENT MANAGEMENT, INC., 555 California Street, San
Francisco, CA 94104 is the investment adviser for the Emerging Growth Fund.
Robertson Stephens Investment Management, Inc. commenced operations in March
1986 and is registered as an investment adviser with the Securities and Exchange
Commission and is an indirect wholly-owned subsidiary of Robertson, Stephens &
Company, L.P.
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Subject to such policies as the Trustees may determine, Robertson Stephens
Investment Management furnishes a continuing investment program for the Funds
and makes investment decisions on their behalf pursuant to Investment Advisory
Agreements with each Fund. Robertson Stephens Investment Management is also
responsible for overall management of the Funds' business affairs, subject to
the authority of the Board of Trustees, and provides office space and officers
for the Trust. The Trust pays all expenses not assumed by Robertson Stephens
Investment Management including, among other things, Trustees' fees, auditing,
accounting, legal, custodial, investor servicing, and shareholder reporting
expenses, and payments under the Funds' Distribution Plans.
Robertson Stephens Investment Management places all orders for purchases and
sales of the Funds' securities. In selecting broker-dealers, Robertson Stephens
Investment Management may consider research and brokerage services furnished to
it and its affiliates. Robertson, Stephens & Company, L.P. may receive brokerage
commissions from the Funds in accordance with procedures adopted by the Trustees
under the Investment Company Act of 1940 which require periodic review of these
transactions. Subject to seeking the most favorable price and execution
available, Robertson Stephens Investment Management may consider sales of shares
of the Funds as a factor in the selection of broker-dealers.
ADMINISTRATIVE SERVICES. Each of the Growth & Income, Global Low-Priced
Stock, Global Natural Resources, and Information Age Funds has entered into an
agreement with Robertson Stephens Investment Management pursuant to which
Robertson Stephens Investment Management provides administrative services to the
Fund. Each Fund pays Robertson Stephens Investment Management a fee for such
services at the annual rate of 0.25% of the Fund's average daily net assets.
PORTFOLIO MANAGERS
- -------------------------------------
PAUL H. STEPHENS has served as the Contrarian Fund's portfolio manager since
its inception in June 1993. He is a founder of Robertson, Stephens & Company,
L.P. In addition to managing public investment portfolios for individuals since
1975, Mr. Stephens has acted as the firm's Chief Investment Officer since 1978.
ROBERT C. CZEPIEL, the principal executive officer of Robertson Stephens
Investment Management, Inc. who, with the help of his staff, has been
responsible for managing the Emerging Growth Fund's portfolio since that Fund's
inception in November 1987, is an accomplished investment professional with over
twenty years of experience as a securities analyst (primarily in emerging growth
and high-technology companies). Additionally, he has over ten years' experience
as a portfolio manager, including four years with CIGNA Investments where he
managed five portfolios with net assets ranging from $25-80 million.
RONALD E. ELIJAH has managed the Value + Growth Fund's portfolio since that
Fund's inception in April 1992. Mr. Elijah is also the portfolio manager for the
Information Age Fund. From August 1985 to January 1990, Mr. Elijah was a
securities analyst for Robertson, Stephens & Company, L.P. From January 1990 to
January 1992, Mr. Elijah was an analyst and portfolio manager for Water Street
Capital, which managed short selling investment funds.
17
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MICHAEL HOFFMAN has been responsible for managing the Developing Countries
Fund's portfolio since that Fund's inception in April 1994. From August 1990 to
April 1994, Mr. Hoffman was a portfolio manager with CIGNA International
Investment Advisors, where he managed four portfolios with net assets ranging
from $25-100 million.
ANDREW P. PILARA, JR. has been responsible for managing the Partners Fund
since the Fund's inception in July 1995 and is responsible for managing the
Global Natural Resources Fund. Since August 1993 he has been a member of the
Contrarian Fund management team. Mr. Pilara has been involved in the securities
business for over 25 years, with experience in portfolio management, research,
trading, and sales. Prior to joining Robertson, Stephens & Company Investment
Management, L.P., he was president of Pilara Associates, an investment
management firm he established in 1974.
M. HANNAH SULLIVAN is responsible for managing the Global Low-Priced Stock
Fund. Since April 1992, she has been a member of the management team for the
Contrarian Fund.
JOHN L. WALLACE has been responsible for managing the Growth & Income Fund
since its inception in July 1995. Prior to joining Robertson, Stephens & Company
Investment Management, L.P., Mr. Wallace was Vice President of Oppenheimer
Management Corp., where he was portfolio manager of the Oppenheimer Main Street
Income and Growth Fund.
18
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HOW TO PURCHASE SHARES
Currently, your minimum initial investment is $5,000 ($1,000 for IRAs), and
your subsequent investments must be at least $100 ($1 for IRAs). You may obtain
an Application by calling the Funds at 1-800-766-FUND, or by writing to
Robertson, Stephens & Company, L.P. at 555 California Street, San Francisco, CA
94104.
INITIAL INVESTMENTS
- -------------------------------------
You may make your initial investment in Fund shares by mail or by wire
transfer as described below.
BY MAIL: Send a completed Application, together with a check made payable
to the Fund in which you intend to invest, to the Funds' Transfer Agent: State
Street Bank and Trust Company c/o National Financial Data Services, P.O. Box
419717, Kansas City, MO 64141.
BY WIRE: (1) Telephone National Financial Data Services at 1-800-272-6944.
Indicate the name(s) to be used on the account registration, the mailing
address, your social security number, the amount being wired, the name of your
wiring bank, and the name and telephone number of a contact person at the wiring
bank. Please include the account number that you receive in your wire along with
the account name.
(2) Then instruct your bank to wire the
specified amount, along with your account name and number to:
State Street Bank and Trust Company
ABA# 011 000028
Attn: Custody
DDA# 99047177
225 Franklin Street
Boston, MA 02110
Credit: [Name of Fund].
For further credit:
----------------
(Shareholder's name)
----------------
(Shareholder's account #)
At the same time, you must mail a completed and signed Application to: State
Street Bank and Trust Company c/o National Financial Data Services, P.O. Box
419717, Kansas City, MO 64141. Please include your account number on the
Application.
You also may purchase and sell shares through certain securities brokers.
Such brokers may charge you a transaction fee for this service; account options
available to clients of securities brokers, including arrangements regarding the
purchase and sale of Fund shares, may differ from those available to persons
investing directly in the Funds. In their sole discretion, either Robertson
Stephens Investment Management or Robertson, Stephens & Company, L.P., the
Funds' distributor, may pay such brokers for shareholder, subaccounting, and
other services, including handling such sales.
SUBSEQUENT INVESTMENTS
- -------------------------------------
After your account is open, you may invest by mail, telephone, or wire at
any time. Please include your name and account number on all checks and wires.
Please use separate checks or wires for investments to separate accounts.
AUTOBUY: The Autobuy option allows shareholders to purchase shares by
moving money directly from their checking account to a Robertson Stephens fund.
If you have established the Autobuy option, you may purchase additional shares
in an existing account by calling the Transfer Agent at 1-800-272-6944 and
instructing the Transfer Agent as to the dollar amount you wish to invest. The
investment will
19
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automatically be processed through the Automatic Clearing House (ACH) system.
There is no fee for this option. If you did not establish this option at the
time you opened your account, send a letter of instruction along with a voided
check to the Transfer Agent.
OTHER INFORMATION ABOUT PURCHASING SHARES
- -------------------------------------
All purchases of the Funds' shares are subject to acceptance by a Fund and
are not binding until accepted and shares are issued. Your signed and completed
Application (for initial investments) or account statement stub (for subsequent
investments) and full payment, in the form of either a wire transfer or a check,
must be received and accepted by a Fund before any purchase becomes effective.
Purchases of Fund shares are made at the net asset value next determined after
the purchase is accepted. See "How Net Asset Value Is Determined." Please
initiate any wire transfer early in the morning to ensure that the wire is
received by a Fund before 4:00 p.m. New York time.
All purchases must be made in U.S. dollars, and checks should be drawn on
banks located in the U.S. If your purchase of shares is canceled due to
non-payment or because a check does not clear, you will be held responsible for
any loss incurred by the Funds or the Transfer Agent. Each Fund can redeem
shares to reimburse it or the Transfer Agent for any such loss.
Each Fund reserves the right to reject any purchase, in whole or in part,
and to suspend the offering of its shares for any period of time and to change
or waive the minimum investment amounts specified in this prospectus.
No share certificates will be issued, except that certificates for shares of
the Emerging Growth Fund will be issued upon written request to the Transfer
Agent.
EXCHANGE PRIVILEGE
- -------------------------------------
Shares of one Fund may be exchanged for shares of another Fund. Exchanges of
shares will be made at their relative net asset values. Shares may be exchanged
only if the amount being exchanged satisfies the minimum investment required and
the shareholder is a resident of a state where shares of the appropriate Fund
are qualified for sale. However, you may not exchange your investment in shares
of any Fund more than four times in any twelve-month period (including the
initial exchange of your investment from that Fund during the period, and
subsequent exchanges of that investment from other Funds during the same
twelve-month period).
Investors should note that an exchange will result in a taxable event.
Exchange privileges may be terminated, modified, or suspended by a Fund upon 60
days prior notice to shareholders.
Unless you have indicated that you do not wish to establish telephone
exchange privileges (see the Account Application or call the Funds for details),
you may make exchanges by telephone.
20
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HOW TO REDEEM SHARES
REDEMPTIONS BY MAIL
- -------------------------------------
You may redeem your shares of a Fund by mailing a written request for
redemption to the Transfer Agent that:
(1) states the number of shares or dollar
amount to be redeemed;
(2) identifies your account number; and
(3) is signed by you and all other owners of the
account exactly as their names appear on the account.
If you request that the proceeds from your redemption be sent to you at an
address other than your address of record, or to another party, you must include
a signature guarantee for each such signature by an eligible signature
guarantor, such as a member firm of a national securities exchange or a
commercial bank or trust company located in the United States. If you are a
resident of a foreign country, another type of certification may be required.
Please contact the Transfer Agent for more details. Corporations, fiduciaries,
and other types of shareholders may be required to supply additional documents
which support their authority to effect a redemption.
REDEMPTIONS BY TELEPHONE
- -------------------------------------
Unless you have indicated you do not wish to establish telephone redemption
privileges (see the Account Application or call the Funds for details), you may
redeem shares by calling the Transfer Agent at 1-800-272-6944 by 4:00 p.m. New
York time on any day the New York Stock Exchange is open for business.
If an account has more than one owner, the Transfer Agent may rely on the
instructions of any one owner. Each Fund employs reasonable procedures in an
effort to confirm the authenticity of telephone instructions, which may include
requiring the caller to give a special authorization number assigned to your
account. If these procedures are not followed, the Funds and the Transfer Agent
may be responsible for any losses because of unauthorized or fraudulent
instructions. By not declining telephone redemption privileges, you authorize
the Transfer Agent to act upon any telephone instructions it believes to be
genuine, (1) to redeem shares from your account and (2) to mail or wire the
redemption proceeds. If you recently opened an account by wire, you cannot
redeem shares by telephone until the Transfer Agent has received your completed
Application.
Telephone redemption is not available for shares held in IRAs. Each Fund may
change, modify, or terminate its telephone redemption services at any time upon
30 days notice.
WIRE TRANSFER OF REDEMPTIONS
- -------------------------------------
If your financial institution receives Federal Reserve wires, you may
instruct that your redemption proceeds be forwarded to you by a wire transfer.
Please indicate your financial institution's complete wiring instructions. The
Funds will forward proceeds from telephone redemptions only to the bank account
or Robertson, Stephens & Company, L.P. brokerage account that you have
authorized in writing. A $9.00 wire fee will be paid either by redeeming shares
from your account or upon a full redemption, deducting the fee from the
proceeds.
AUTOSELL: The Autosell option allows shareholders to redeem shares from
their Robertson Stephens fund accounts and to have the proceeds sent directly to
their checking account. If you have established the Autosell option, you may
redeem shares by calling the Transfer Agent at 1-800-272-6944 and instructing it
as to the dollar amount or number of shares you wish to redeem. The proceeds
will automatically be sent to your bank through the Automatic Clearing House
(ACH) system. There is no fee for this option. If
21
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you did not establish this option at the time you opened your account, send a
letter of instruction along with a voided check to the Transfer Agent.
GENERAL REDEMPTION POLICIES
- -------------------------------------
The redemption price per share is the net asset value per share next
determined after the Transfer Agent receives the request for redemption in
proper form, and each Fund will make payment for redeemed shares within seven
days thereafter. Under unusual circumstances, a Fund may suspend repurchases, or
postpone payment of redemption proceeds for more than seven days, as permitted
by federal securities law. If you purchase shares of a Fund by check (including
certified check) and redeem them shortly thereafter, the Fund will delay payment
of the redemption proceeds for up to fifteen days after the Fund's receipt of
the check.
You may experience delays in exercising telephone redemptions during periods
of abnormal market activity. Accordingly, during periods of volatile economic
and market conditions, you may wish to consider transmitting redemption orders
to the Transfer Agent by an overnight courier service.
THE FUNDS' DISTRIBUTOR
Shares of the Funds are distributed by Robertson, Stephens & Company, L.P.
Under its Distribution Agreement with the Funds, Robertson, Stephens & Company,
L.P. bears certain expenses related to the distribution of shares of the Funds,
including commissions payable to persons engaging in the distribution of the
shares, advertising expenses, and the costs of preparing and distributing sales
literature incurred in connection with the offering of the shares.
To compensate Robertson, Stephens & Company, L.P. for the services it
provides and for the expenses it bears under the Distribution Agreement, each
Fund (other than the Value + Growth Fund) has adopted a Plan of Distribution
pursuant to Rule 12b-1 under the Investment Company Act of 1940 pursuant to
which the Fund pays Robertson, Stephens & Company, L.P. compensation accrued
daily and paid monthly at the annual rate of 0.75% of that Fund's average daily
net assets, in the case of the Contrarian Fund, and 0.25% of the Fund's average
daily net assets, in the case of each of the other Funds. Robertson, Stephens &
Company, L.P. may pay brokers a commission expressed as a percentage of the
purchase price of shares of the Funds.
Each Fund has agreed to indemnify Robertson, Stephens & Company, L.P.
against certain liabilities, including liabilities under the Securities Act of
1933, as amended.
The Trustees of the Trust have proposed to shareholders of the Value +
Growth Fund that they approve a Distribution Plan for that Fund, under which the
Fund would pay Robertson, Stephens & Company, L.P. compensation, accrued daily
and paid monthly, at the annual rate of 0.25% of the Fund's average daily net
assets. It is expected that, if the Plan is approved, it will be implemented on
January 1, 1996. See "Expense Summary," above.
22
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DIVIDENDS, DISTRIBUTIONS, AND TAXES
Each Fund distributes substantially all of its net investment income and net
capital gains to shareholders at least once per year (more often if necessary to
avoid certain excise or income taxes on the Fund). The Growth & Income Fund pays
distributions from net investment income quarterly. All distributions will be
automatically reinvested in Fund shares unless the shareholder requests cash
payment on at least 10 days prior written notice to the Transfer Agent.
Each Fund intends to qualify as a "regulated investment company" for federal
income tax purposes and to meet all other requirements that are necessary for it
to be relieved of federal taxes on income and gains it distributes to
shareholders. A Fund will distribute substantially all of its net investment
income and net capital gain income on a current basis.
All Fund distributions will be taxable to you as ordinary income, except
that any distributions of net long-term capital gains will be taxed as such,
regardless of how long you have held your shares. Distributions will be taxable
as described above, whether received in cash or in shares through the
reinvestment of distributions. Early in each year, the Trust will notify you of
the amount and tax status of distributions paid to you by each of the Funds for
the preceding year.
The foregoing is a summary of certain federal income tax consequences of
investing in a Fund. You should consult your tax adviser to determine the
precise effect of an investment in a Fund on your particular tax situation.
HOW NET ASSET VALUE IS DETERMINED
Each Fund calculates the net asset value of its shares by dividing the total
value of its assets, less liabilities, by the number of its shares outstanding.
Shares are valued as of the close of regular trading on the New York Stock
Exchange each day the Exchange is open. Fund securities for which market
quotations are readily available are stated at market value. Short-term
investments that will mature in 60 days or less are stated at amortized cost,
which approximates market value. All other securities and assets are valued at
their fair values determined by Robertson Stephens Investment Management.
HOW PERFORMANCE IS DETERMINED
Yield and total return data may from time to time be included in
advertisements about the Funds. A Fund's "yield" is calculated by dividing the
Fund's annualized net investment income per share during a recent 30-day period
by the maximum public offering price per share on the last day of that period.
"Total return" for one- and five-year periods, and for the life of a Fund,
through the most recent calendar quarter represents the average annual
compounded rate of return (or, in the case of a period of one year or less, the
actual rate of return) on an investment of $1,000 in the Fund. Total return may
also be presented for other periods. Quotations of yield or total return for a
period when an expense limitation was in effect will be greater than if the
limitation had not been in effect. A Fund's performance may be compared to
various indices. See the Statement of Additional Information. Information may be
presented in advertisements about a Fund describing the background and
professional experience of the Fund's investment advisor or any portfolio
manager.
ALL DATA ARE BASED ON A FUND'S PAST INVESTMENT RESULTS AND DO NOT PREDICT
FUTURE PERFORMANCE. Investment performance, which will vary, is
23
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based on many factors, including market conditions, the composition of the
Fund's portfolio, and the Fund's investments expenses. Investment performance
also often reflects the risks associated with a Fund's investment objective and
policies. These factors should be considered when comparing a Fund's investment
results to those of other mutual funds and other investment vehicles.
ADDITIONAL INFORMATION
Each Fund is a series of the Trust, which was organized on May 11, 1987
under the laws of the Commonwealth of Massachusetts and is a business entity
commonly known as a "Massachusetts business trust." The Trust may offer shares
of beneficial interest in a number of separate series with no par value per
share. When matters are submitted for shareholder vote, shareholders of each
series will have one vote for each full share owned and proportionate,
fractional votes for fractional shares held. Generally, shares of each series
vote separately as a class on all matters except (1) matters affecting only the
interests of one or more of the series, in which case only shares of the
affected series would be entitled to vote, or (2) when the Investment Company
Act requires that shares of all series be voted in the aggregate. Although the
Trust is not required to hold annual shareholder meetings, shareholders have the
right to call a meeting to elect or remove Trustees, or to take other actions as
provided in the Agreement and Declaration of Trust.
State Street Bank and Trust Company,
c/o National Financial Data Services, P.O. Box 419717, Kansas City, Missouri
64141, acts as each Fund's transfer agent and dividend paying agent. State
Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts 02110,
also acts as the custodian of each Fund's portfolio.
24
<PAGE>
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- ----------------------------------------------------
THE ROBERTSON STEPHENS CONTRARIAN FUND
THE ROBERTSON STEPHENS DEVELOPING
COUNTRIES FUND
THE ROBERTSON STEPHENS EMERGING GROWTH FUND
THE ROBERTSON STEPHENS GLOBAL LOW-PRICED STOCK FUND
THE ROBERTSON STEPHENS GLOBAL NATURAL
RESOURCES FUND
THE ROBERTSON STEPHENS GROWTH &
INCOME FUND
THE ROBERTSON STEPHENS INFORMATION AGE FUND
THE ROBERTSON STEPHENS PARTNERS FUND
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
555 California Street
San Francisco, CA 94104
1-800-766-FUND
INVESTMENT ADVISERS
Robertson, Stephens & Company
Investment Management, L.P.
Robertson Stephens
Investment Management, Inc.
555 California Street
San Francisco, CA 94104
1-415-781-9700
DISTRIBUTOR
Robertson, Stephens & Company, L.P.
555 California Street
San Francisco, CA 94104
1-415-781-9700
TRANSFER AGENT
State Street Bank and Trust Company
c/o National Financial Data Services
P. O. Box 419717
Kansas City, MO 64141
1-800-272-6944
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
San Francisco, CA 94104
LEGAL COUNSEL
Ropes & Gray
Boston, MA 02110
CUSTODIAN
State Street Bank and Trust Company
Boston, MA 02110
No dealer, salesman, or any other person has been authorized to give any
information or to make any representations other than those contained in this
Prospectus in connection with the offer contained in this Prospectus, and, if
given or made, such other information or representations must not be relied upon
as having been authorized by the Fund. This Prospectus does not constitute an
offering in any state or jurisdiction in which such offering may not lawfully be
made.
- ---------------------------------------------------
- ---------------------------------------------------
---------------------------------------------------
ROBERTSON
STEPHENS
MUTUAL
FUNDS
--------------------
PROSPECTUS
NOVEMBER 15, 1995
TO REQUEST AN
APPLICATION, CALL
1-800-766-FUND
FOR QUESTIONS CONCERNING
SHAREHOLDER ACCOUNTS, CALL
1-800-272-6944
<PAGE>
ROBERTSON STEPHENS INVESTMENT TRUST
PROSPECTUS SUPPLEMENT DATED JANUARY 18, 1996
to Prospectus dated November 15, 1995
ROBERTSON STEPHENS CONTRARIAN FUND
Principally as a result of significant stock price appreciation, at the date
of this Prospectus Supplement, approximately 26% of the Contrarian Fund's
total assets were invested in common stock of Diamond Fields Resources, a
Canadian corporation. As a result, a decline in the stock price of Diamond
Fields Resources would have a significant adverse effect on the net asset
value of the Fund.
ROBERTSON STEPHENS EMERGING GROWTH FUND
David Evans is responsible for managing the Emerging Growth Fund's portfolio.
Mr. Evans has more than fifteen years of investment research and management
experience, and has been a part of the management team at RSIM, Inc. since
1989. Mr. Evans has worked closely with Robert C. Czepiel, the former
portfolio manager of the Fund, for many years, including at CIGNA
Investments, where he was an analyst and portfolio manager before joining
RSIM, Inc.
ROBERTSON STEPHENS VALUE + GROWTH FUND
The Value + Growth Fund has adopted a Distribution Plan, pursuant to which
the Fund will make payments to Robertson, Stephens & Company LLC ("RS&Co."),
its distributor, accrued daily and paid monthly, at the annual rate of 0.25%
of the Fund's average daily net assets, commencing on January 1, 1996. The
Distribution Plan is intended to compensate RS&Co. for the services it
provides and for the expenses it bears in connection with the offering of the
Fund's shares. Robertson, Stephens & Company Investment Management, L.P.,
the Fund's investment adviser, has agreed to reduce the management fees
payable to it by an amount equal to the payments received by RS&Co. under the
Distribution Plan. The following information replaces the data provided on
page 2 of the Prospectus under the caption "Annual Fund Operating Expenses"
with respect to the Value + Growth Fund:
Management Fees 1.00%
Rule 12b-1 Expenses 0.25%
Other Expenses 0.43%
Total Fund Operating Expenses 1.68%
ALL FUNDS
The Financial Highlights on the following page supplement the table on page 3 of
the prospectus.
<PAGE>
FINANCIAL HIGHLIGHTS
THE CONTRARIAN FUND, THE DEVELOPING COUNTRIES FUND, THE EMERGING GROWTH FUND,
THE GROWTH & INCOME FUND, THE PARTNERS FUND AND THE VALUE + GROWTH FUND
The financial highlights presented below, covering the periods ended
September 30, 1995 for each Fund, have not been audited.
<TABLE>
<CAPTION>
CONTRARIAN DEVELOPING EMERGING GROWTH & PARTNERS VALUE +
FUND COUNTRIES FUND GROWTH FUND INCOME FUND FUND GROWTH FUND
For the Period For the Period
For the Six For the Six For the Six 7/12/95 7/12/95 For the Six
Months Ended Months Ended Months Ended through through Months Ended
9/30/95 9/30/95 9/30/95 9/30/95 9/30/95 9/30/95
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. . . $10.70 $8.57 $18.36 $10.00 $10.00 $18.25
Income From Investment Operations:
Net investment income/(loss). . . . . . 0.01 (0.01) (0.08) 0.01 0.04 (0.11)
Net realized gain/(loss) and unrealized
appreciation/(depreciation)
on investments . . . . . . . . . . . . 2.55 0.53 2.57 0.75 0.15 8.41
------ ----- ----- ----- ----- -----
Total from investment operations. . . . 2.56 0.52 2.49 0.76 0.19 8.30
Distributions:
Dividends from net investment income . . -- -- -- -- -- --
Distribution from net realized capital gain -- -- (0.42) -- -- --
------ ----- ----- ----- ----- -----
Total from investment operations . . . . . . -- -- (0.42) -- -- --
Net asset value, end of period $13.26 $9.09 $20.43 $10.76 $10.19 $26.55
Total Return 23.93% 6.07% 13.80% 7.60% 1.90% 45.48%
Ratios/Supplemental Data:
Net assets, end of period (thousands) $506,239 $17,646 $180,462 $101,539 $8,306 $1,385,628
Ratio of net operating expenses to
average net assets. . . . . . . . . . . . . 2.34%(1)* 2.29%(2)* 1.57%* 1.95%* 2.88%(3)* 1.37%*
Ratio of net investment income/(loss)
to average net assets . . . . . . . . . . . 0.14%(1)* (0.26)%(2)* (0.84)%* 0.30%* 1.66%(3)* (0.96)%*
Portfolio turnover rate. . . . . . . . . . . 34% 65% 107% 21% 35% 40%
</TABLE>
Per share data is determined by using the average number of shares
outstanding throughout the period.
* ANNUALIZED
(1) IF THE CONTRARIAN FUND HAD PAID ALL OF ITS EXPENSES AND THERE HAD BEEN
NO REIMBURSEMENT BY ROBERTSON, STEPHENS & COMPANY INVESTMENT
MANAGEMENT, L.P. ("RSIM, L.P."), THE RATIO OF EXPENSES TO AVERAGE NET
ASSETS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 WOULD HAVE BEEN 2.52%,
AND THE RATIO OF NET INVESTMENT (LOSS) TO AVERAGE NET ASSETS WOULD
HAVE BEEN (0.04)%.
(2) IF THE DEVELOPING COUNTRIES FUND HAD PAID ALL OF ITS EXPENSES AND
THERE HAD BEEN NO REIMBURSEMENT BY RSIM, L.P., THE RATIO OF EXPENSES
TO AVERAGE NET ASSETS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
WOULD HAVE BEEN 3.41%, AND THE RATIO OF NET INVESTMENT (LOSS) TO AVERAGE
NET ASSETS WOULD HAVE BEEN (1.38)%.
(3) IF THE PARTNERS FUND HAD PAID ALL OF ITS EXPENSES AND THERE HAD BEEN
NO REIMBURSEMENT BY RSIM, L.P., THE RATIO OF EXPENSES TO AVERAGE NET
ASSETS FOR THE PERIOD ENDED SEPTEMBER 30, 1995 WOULD HAVE BEEN 5.71%,
AND THE RATIO OF NET INVESTMENT (LOSS) TO AVERAGE NET ASSETS WOULD HAVE
BEEN (1.17)%.
-2-
<PAGE>
ROBERTSON STEPHENS INVESTMENT TRUST
(The Robertson Stephens Contrarian Fund)
(The Robertson Stephens Developing Countries Fund)
(The Robertson Stephens Emerging Growth Fund)
(The Robertson Stephens Global Low-Priced Stock Fund)
(The Robertson Stephens Global Natural Resources Fund)
(The Robertson Stephens Growth & Income Fund)
(The Robertson Stephens Information Age Fund)
(The Robertson Stephens Partners Fund)
(The Robertson Stephens Value + Growth Fund)
--------------------
FORM N-lA
PART B
--------------------
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
ROBERTSON STEPHENS MUTUAL FUNDS
NOVEMBER 15, 1995
AS REVISED JANUARY 18, 1996
Robertson Stephens Investment Trust (the "Trust") is an open-end series
investment company. This Statement of Additional Information is not a
prospectus and should be read in conjunction with the Prospectus of the Trust
dated November 15, 1995. A copy of the Trust's Prospectus can be obtained upon
request made to Robertson, Stephens & Company LLC, the Trust's distributor, 555
California Street, San Francisco, California 94104, telephone 1-800-766-FUND.
TABLE OF CONTENTS
CAPTION PAGE
------- ----
INVESTMENT OBJECTIVES AND POLICIES . . . . . . . . . . . . . . . . . . . . . 2
THE FUNDS' INVESTMENT LIMITATIONS. . . . . . . . . . . . . . . . . . . . . . 15
MANAGEMENT OF THE FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . 20
THE FUNDS' DISTRIBUTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
HOW NET ASSET VALUE IS DETERMINED. . . . . . . . . . . . . . . . . . . . . . 31
TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
HOW PERFORMANCE IS DETERMINED. . . . . . . . . . . . . . . . . . . . . . . . 33
ADDITIONAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
APPENDIX A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
<PAGE>
INVESTMENT OBJECTIVES AND POLICIES
The investment objectives and policies of the Funds are described in detail
in the Prospectus. The following discussion provides supplemental information
concerning certain investment techniques in which one or more of the Funds may
engage, and certain of the risks they may entail. Certain of the investment
techniques may not be available to all of the Funds.
All of the Funds, except for the Emerging Growth Fund, are managed by
Robertson, Stephens & Company Investment Management, L.P. ("RSIM, L.P."). The
Emerging Growth Fund is managed by Robertson Stephens Investment Management,
Inc. ("RSIM, Inc."). RSIM, L.P. and RSIM, Inc. are sometimes referred to in this
Statement collectively as "Robertson Stephens Investment Management".
LOWER-RATED DEBT SECURITIES
Certain of the Funds may purchase lower-rated debt securities, sometimes
referred to as "junk bonds" (those rated BB or lower by Standard & Poor's
Corporation ("S&P") or Ba or lower by Moody's Investor Service, Inc.
("Moody's")). See APPENDIX A for a description of these ratings.
The lower ratings of certain securities held by a Fund reflect a greater
possibility that adverse changes in the financial condition of the issuer, or in
general economic conditions, or both, or an unanticipated rise in interest
rates, may impair the ability of the issuer to make payments of interest and
principal. The inability (or perceived inability) of issuers to make timely
payment of interest and principal would likely make the values of securities
held by the Fund more volatile and could limit the Fund's ability to sell its
securities at prices approximating the values a Fund had placed on such
securities. It is possible that legislation may be adopted in the future
limiting the ability of certain financial institutions to purchase lower rated
securities; such legislation may adversely affect the liquidity of such
securities. In the absence of a liquid trading market for securities held by
it, the Fund may be unable at times to establish the fair market value of such
securities. The rating assigned to a security by Moody's or S&P does not
reflect an assessment of the volatility of the security's market value or of the
liquidity of an investment in the security.
Like those of other fixed-income securities, the values of lower-rated
securities fluctuate in response to changes in interest rates. Thus, a decrease
in interest rates generally will result in an increase in the value of a Fund's
fixed-income securities. Conversely, during periods of rising interest rates,
the value of a Fund's fixed-income securities generally will decline. In
addition, the values of such securities are also affected by changes in general
economic conditions and business conditions affecting the specific industries of
their issuers. Changes by recognized rating services in their ratings of any
fixed-income security and in the ability of an issuer to make payments of
interest and principal may also affect the value of these investments. Changes
in the value of portfolio securities generally will not affect cash income
derived from such securities, but will affect the Fund's net asset value. A
Fund will not necessarily dispose of a security when its rating is reduced below
its rating at the time of purchase, although Robertson Stephens Investment
Management will monitor the investment to determine whether continued investment
in the security will assist in meeting the Fund's investment objective.
Issuers of lower-rated securities are often highly leveraged, so that their
ability to service their debt obligations during an economic downturn or during
sustained periods of rising interest rates may be impaired. In addition, such
issuers may not have more traditional methods of financing available to them,
and may be unable to repay debt at maturity by refinancing. The risk of loss
due to default in payment of interest or principal by such issuers is
significantly greater because such securities frequently are unsecured and
subordinated to the prior payment of senior indebtedness. Certain of the lower-
rated securities in which the Funds may invest are issued to raise funds in
connection with the acquisition of a company, in so-called "leveraged buy-out"
transactions. The highly leveraged capital structure of such issuers may make
them especially vulnerable to adverse changes in economic conditions.
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Under adverse market or economic conditions or in the event of adverse
changes in the financial condition of the issuer, a Fund could find it more
difficult to sell lower-rated securities when Robertson Stephens Investment
Management believes it advisable to do so or may be able to sell such securities
only at prices lower than if such securities were more widely held. In many
cases, such securities may be purchased in private placements and, accordingly,
will be subject to restrictions on resale as a matter of contract or under
securities laws. Under such circumstances, it may also be more difficult to
determine the fair value of such securities for purposes of computing a Fund's
net asset value. In order to enforce its rights in the event of a default under
such securities, a Fund may be required to take possession of and manage assets
securing the issuer's obligations on such securities, which may increase the
Fund's operating expenses and adversely affect the Fund's net asset value. A
Fund may also be limited in its ability to enforce its rights and may incur
greater costs in enforcing its rights in the event an issuer becomes the subject
of bankruptcy proceedings.
Certain securities held by a Fund may permit the issuer at its option to
"call," or redeem, its securities. If an issuer were to redeem securities held
by a Fund during a time of declining interest rates, the Fund may not be able to
reinvest the proceeds in securities providing the same investment return as the
securities redeemed.
OPTIONS
The Funds may purchase and sell put and call options on their portfolio
securities to enhance investment performance and to protect against changes in
market prices.
COVERED CALL OPTIONS. A Fund may write covered call options on its
securities to realize a greater current return through the receipt of premiums
than it would realize on its securities alone. Such option transactions may
also be used as a limited form of hedging against a decline in the price of
securities owned by the Fund.
A call option gives the holder the right to purchase, and obligates the
writer to sell, a security at the exercise price at any time before the
expiration date. A call option is "covered" if the writer, at all times while
obligated as a writer, either owns the underlying securities (or comparable
securities satisfying the cover requirements of the securities exchanges), or
has the right to acquire such securities through immediate conversion of
securities.
In return for the premium received when it writes a covered call option, a
Fund gives up some or all of the opportunity to profit from an increase in the
market price of the securities covering the call option during the life of the
option. The Fund retains the risk of loss should the price of such securities
decline. If the option expires unexercised, the Fund realizes a gain equal to
the premium, which may be offset by a decline in price of the underlying
security. If the option is exercised, the Fund realizes a gain or loss equal to
the difference between the Fund's cost for the underlying security and the
proceeds of sale (exercise price minus commissions) plus the amount of the
premium.
A Fund may terminate a call option that it has written before it expires by
entering into a closing purchase transaction. A Fund may enter into closing
purchase transactions in order to free itself to sell the underlying security or
to write another call on the security, realize a profit on a previously written
call option, or protect a security from being called in an unexpected market
rise. Any profits from a closing purchase transaction may be offset by a
decline in the value of the underlying security. Conversely, because increases
in the market price of a call option will generally reflect increases in the
market price of the underlying security, any loss resulting from a closing
purchase transaction is likely to be offset in whole or in part by unrealized
appreciation of the underlying security owned by the Fund.
COVERED PUT OPTIONS. A Fund may write covered put options in order to
enhance its current return. Such options transactions may also be used as a
limited form of hedging against an increase in the price of securities that the
Fund plans to purchase. A put option gives the holder the right to sell, and
obligates the writer to buy, a security at the exercise price at any time before
the expiration date. A put option is "covered" if the writer
B-3
<PAGE>
segregates cash and high-grade short-term debt obligations or other permissible
collateral equal to the price to be paid if the option is exercised.
In addition to the receipt of premiums and the potential gains from
terminating such options in closing purchase transactions, a Fund also receives
interest on the cash and debt securities maintained to cover the exercise price
of the option. By writing a put option, the Fund assumes the risk that it may
be required to purchase the underlying security for an exercise price higher
than its then current market value, resulting in a potential capital loss unless
the security later appreciates in value.
A Fund may terminate a put option that it has written before it expires by
a closing purchase transaction. Any loss from this transaction may be partially
or entirely offset by the premium received on the terminated option.
PURCHASING PUT AND CALL OPTIONS. A Fund may also purchase put options to
protect portfolio holdings against a decline in market value. This protection
lasts for the life of the put option because the Fund, as a holder of the
option, may sell the underlying security at the exercise price regardless of any
decline in its market price. In order for a put option to be profitable, the
market price of the underlying security must decline sufficiently below the
exercise price to cover the premium and transaction costs that the Fund must
pay. These costs will reduce any profit the Fund might have realized had it
sold the underlying security instead of buying the put option.
A Fund may purchase call options to hedge against an increase in the price
of securities that the Fund wants ultimately to buy. Such hedge protection is
provided during the life of the call option since the Fund, as holder of the
call option, is able to buy the underlying security at the exercise price
regardless of any increase in the underlying security's market price. In order
for a call option to be profitable, the market price of the underlying security
must rise sufficiently above the exercise price to cover the premium and
transaction costs. These costs will reduce any profit the Fund might have
realized had it bought the underlying security at the time it purchased the call
option.
A Fund may also purchase put and call options to attempt to enhance its
current return.
OPTIONS ON FOREIGN SECURITIES. Certain of the Funds may purchase and sell
options on foreign securities if the Fund's Adviser believes that the investment
characteristics of such options, including the risks of investing in such
options, are consistent with the Fund's investment objectives. It is expected
that risks related to such options will not differ materially from risks related
to options on U.S. securities. However, position limits and other rules of
foreign exchanges may differ from those in the U.S. In addition, options
markets in some countries, many of which are relatively new, may be less liquid
than comparable markets in the U.S.
RISKS INVOLVED IN THE SALE OF OPTIONS. Options transactions involve
certain risks, including the risks that a Fund's Adviser will not forecast
interest rate or market movements correctly, that a Fund may be unable at times
to close out such positions, or that hedging transactions may not accomplish
their purpose because of imperfect market correlations. The successful use of
these strategies depends on the ability of a Fund's Adviser to forecast market
and interest rate movements correctly.
An exchange-listed option may be closed out only on an exchange which
provides a secondary market for an option of the same series. There is no
assurance that a liquid secondary market on an exchange will exist for any
particular option or at any particular time. If no secondary market were to
exist, it would be impossible to enter into a closing transaction to close out
an option position. As a result, a Fund may be forced to continue to hold, or
to purchase at a fixed price, a security on which it has sold an option at a
time when its Adviser believes it is inadvisable to do so.
Higher than anticipated trading activity or order flow or other unforeseen
events might cause The Options Clearing Corporation or an exchange to institute
special trading procedures or restrictions that might restrict a
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<PAGE>
Fund's use of options. The exchanges have established limitations on the
maximum number of calls and puts of each class that may be held or written by an
investor or group of investors acting in concert. It is possible that the Trust
and other clients of Robertson Stephens Investment Management may be considered
such a group. These position limits may restrict the Funds' ability to purchase
or sell options on particular securities.
Options which are not traded on national securities exchanges may be closed
out only with the other party to the option transaction. For that reason, it
may be more difficult to close out unlisted options than listed options.
Furthermore, unlisted options are not subject to the protection afforded
purchasers of listed options by The Options Clearing Corporation.
Government regulations, particularly the requirements for qualification as
a "regulated investment company" under the Internal Revenue Code, may also
restrict the Funds' use of options.
SPECIAL EXPIRATION PRICE OPTIONS
Certain of the Funds may purchase over-the-counter ("OTC") puts and calls
with respect to specified securities ("special expiration price options")
pursuant to which the Funds in effect may create a custom index relating to a
particular industry or sector that Robertson Stephens Investment Management
believes will increase or decrease in value generally as a group. In exchange
for a premium, the counterparty, whose performance is guaranteed by a broker-
dealer, agrees to purchase (or sell) a specified number of shares of a
particular stock at a specified price and further agrees to cancel the option at
a specified price that decreases straight line over the term of the option.
Thus, the value of the special expiration price option is comprised of the
market value of the applicable underlying security relative to the option
exercise price and the value of the remaining premium. However, if the value of
the underlying security increases (or decreases) by a prenegotiated amount, the
special expiration price option is canceled and becomes worthless. A portion of
the dividends during the term of the option are applied to reduce the exercise
price if the options are exercised. Brokerage commissions and other transaction
costs will reduce these Funds' profits if the special expiration price options
are exercised. A Fund will not purchase special expiration price options with
respect to more than 25% of the value of its net assets, and will limit premiums
paid for such options in accordance with state securities laws.
LEAPS AND BOUNDS
The Value + Growth Fund may purchase certain long-term exchange-traded
equity options called Long-Term Equity Anticipation Securities ("LEAPs") and
Buy-Right Options Unitary Derivatives ("BOUNDs"). LEAPs provide a holder the
opportunity to participate in the underlying securities' appreciation in excess
of a fixed dollar amount. BOUNDs provide a holder the opportunity to retain
dividends on the underlying security while potentially participating in the
underlying securities' capital appreciation up to a fixed dollar amount. The
Value + Growth Fund will not purchase these options with respect to more than
25% of the value of its net assets, and will limit the premiums paid for
purchasing such options in accordance with the most restrictive applicable state
securities laws.
LEAPs are long-term call options that allow holders the opportunity to
participate in the underlying securities' appreciation in excess of a specified
strike price, without receiving payments equivalent to any cash dividends
declared on the underlying securities. A LEAP holder will be entitled to
receive a specified number of shares of the underlying stock upon payment of the
exercise price, and therefore the LEAP will be exercisable at any time the price
of the underlying stock is above the strike price. However, if at expiration
the price of the underlying stock is at or below the strike price, the LEAP will
expire worthless.
BOUNDs are long-term options which are expected to have the same economic
characteristics as covered call options, with the added benefits that BOUNDs can
be traded in a single transaction and are not subject to early exercise.
Covered call writing is a strategy by which an investor sells a call option
while simultaneously owning the number of shares of the stock underlying the
call. BOUND holders are able to participate in a stock's
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<PAGE>
price appreciation up to but not exceeding a specified strike price while
receiving payments equivalent to any cash dividends declared on the underlying
stock. At expiration, a BOUND holder will receive a specified number of shares
of the underlying stock for each BOUND held if, on the last day of trading, the
underlying stock closes at or below the strike price. However, if at expiration
the underlying stock closes above the strike price, the BOUND holder will
receive a payment equal to a multiple of the BOUND's strike price for each BOUND
held. The terms of a BOUND are not adjusted because of cash distributions to
the shareholders of the underlying security. BOUNDs are subject to the position
limits for equity options imposed by the exchanges on which they are traded.
The settlement mechanism for BOUNDs operates in conjunction with that of
the corresponding LEAPs. For example, if at expiration the underlying stock
closes at or below the strike price, the LEAP will expire worthless, and the
holder of a corresponding BOUND will receive a specified number of shares of
stock from the writer of the BOUND. If, on the other hand, the LEAP is "in the
money" at expiration, the holder of the LEAP is entitled to receive a specified
number of shares of the underlying stock from the LEAP writer upon payment of
the strike price, and the holder of a BOUND on such stock is entitled to the
cash equivalent of a multiple of the strike price from the writer of the BOUND.
An investor holding both a LEAP and a corresponding BOUND, where the underlying
stock closes above the strike price at expiration, would be entitled to receive
a multiple of the strike price from the writer of the BOUND and, upon exercise
of the LEAP, would be obligated to pay the same amount to receive shares of the
underlying stock. LEAPs are American-style options (exercisable at any time
prior to expiration), whereas BOUNDs are European-style options (exercisable
only on the expiration date).
FUTURES CONTRACTS
INDEX FUTURES CONTRACTS AND OPTIONS. A Fund may buy and sell futures
contracts and related options for hedging purposes or to attempt to increase
investment return. The Funds currently expect that they will only purchase and
sell stock index futures contracts and related options. A stock index futures
contract is a contract to buy or sell units of a stock index at a specified
future date at a price agreed upon when the contract is made. A unit is the
current value of the stock index.
The following example illustrates generally the manner in which index
futures contracts operate. The Standard & Poor's 100 Stock Index (the "S&P 100
Index") is composed of 100 selected common stocks, most of which are listed on
the New York Stock Exchange. The S&P 100 Index assigns relative weightings to
the common stocks included in the Index, and the Index fluctuates with changes
in the market values of those common stocks. In the case of the S&P 100 Index,
contracts are to buy or sell 100 units. Thus, if the value of the S&P 100 Index
were $180, one contract would be worth $18,000 (100 units x $180). The stock
index futures contract specifies that no delivery of the actual stocks making up
the index will take place. Instead, settlement in cash must occur upon the
termination of the contract, with the settlement being the difference between
the contract price and the actual level of the stock index at the expiration of
the contract. For example, if a Fund enters into a futures contract to buy 100
units of the S&P 100 Index at a specified future date at a contract price of
$180 and the S&P 100 Index is at $184 on that future date, the Fund will gain
$400 (100 units x gain of $4). If the Fund enters into a futures contract to
sell 100 units of the stock index at a specified future date at a contract price
of $180 and the S&P 100 Index is at $182 on that future date, the Fund will lose
$200 (100 units x loss of $2).
A Fund may purchase or sell futures contracts with respect to any
securities indexes. Positions in index futures may be closed out only on an
exchange or board of trade which provides a secondary market for such futures.
In order to hedge its investments successfully using futures contracts and
related options, a Fund must invest in futures contracts with respect to indexes
or sub-indexes the movements of which will, in its judgment, have a significant
correlation with movements in the prices of the Fund's securities.
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Options on index futures contracts give the purchaser the right, in return
for the premium paid, to assume a position in an index futures contract (a long
position if the option is a call and a short position if the option is a put) at
a specified exercise price at any time during the period of the option. Upon
exercise of the option, the holder would assume the underlying futures position
and would receive a variation margin payment of cash or securities approximating
the increase in the value of the holder's option position. If an option is
exercised on the last trading day prior to the expiration date of the option,
the settlement will be made entirely in cash based on the difference between the
exercise price of the option and the closing level of the index on which the
futures contract is based on the expiration date. Purchasers of options who
fail to exercise their options prior to the exercise date suffer a loss of the
premium paid.
As an alternative to purchasing and selling call and put options on index
futures contracts, each of the Funds which may purchase and sell index futures
contracts may purchase and sell call and put options on the underlying indexes
themselves to the extent that such options are traded on national securities
exchanges. Index options are similar to options on individual securities in
that the purchaser of an index option acquires the right to buy (in the case of
a call) or sell (in the case of a put), and the writer undertakes the obligation
to sell or buy (as the case may be), units of an index at a stated exercise
price during the term of the option. Instead of giving the right to take or
make actual delivery of securities, the holder of an index option has the right
to receive a cash "exercise settlement amount". This amount is equal to the
amount by which the fixed exercise price of the option exceeds (in the case of a
put) or is less than (in the case of a call) the closing value of the underlying
index on the date of the exercise, multiplied by a fixed "index multiplier".
A Fund may purchase or sell options on stock indices in order to close out
its outstanding positions in options on stock indices which it has purchased. A
Fund may also allow such options to expire unexercised.
Compared to the purchase or sale of futures contracts, the purchase of call
or put options on an index involves less potential risk to a Fund because the
maximum amount at risk is the premium paid for the options plus transactions
costs. The writing of a put or call option on an index involves risks similar
to those risks relating to the purchase or sale of index futures contracts.
MARGIN PAYMENTS. When a Fund purchases or sells a futures contract, it is
required to deposit with its custodian an amount of cash, U.S. Treasury bills,
or other permissible collateral equal to a small percentage of the amount of the
futures contract. This amount is known as "initial margin". The nature of
initial margin is different from that of margin in security transactions in that
it does not involve borrowing money to finance transactions. Rather, initial
margin is similar to a performance bond or good faith deposit that is returned
to a Fund upon termination of the contract, assuming the Fund satisfies its
contractual obligations.
Subsequent payments to and from the broker occur on a daily basis in a
process known as "marking to market". These payments are called "variation
margin" and are made as the value of the underlying futures contract fluctuates.
For example, when a Fund sells a futures contract and the price of the
underlying index rises above the delivery price, the Fund's position declines in
value. The Fund then pays the broker a variation margin payment equal to the
difference between the delivery price of the futures contract and the value of
the index underlying the futures contract. Conversely, if the price of the
underlying index falls below the delivery price of the contract, the Fund's
futures position increases in value. The broker then must make a variation
margin payment equal to the difference between the delivery price of the futures
contract and the value of the index underlying the futures contract.
When a Fund terminates a position in a futures contract, a final
determination of variation margin is made, additional cash is paid by or to the
Fund, and the Fund realizes a loss or a gain. Such closing transactions involve
additional commission costs.
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SPECIAL RISKS OF TRANSACTIONS IN FUTURES CONTRACTS AND RELATED OPTIONS
LIQUIDITY RISKS. Positions in futures contracts may be closed out only on
an exchange or board of trade which provides a secondary market for such
futures. Although the Funds intend to purchase or sell futures only on
exchanges or boards of trade where there appears to be an active secondary
market, there is no assurance that a liquid secondary market on an exchange or
board of trade will exist for any particular contract or at any particular time.
If there is not a liquid secondary market at a particular time, it may not be
possible to close a futures position at such time and, in the event of adverse
price movements, a Fund would continue to be required to make daily cash
payments of variation margin. However, in the event financial futures are used
to hedge portfolio securities, such securities will not generally be sold until
the financial futures can be terminated. In such circumstances, an increase in
the price of the portfolio securities, if any, may partially or completely
offset losses on the financial futures.
In addition to the risks that apply to all options transactions, there are
several special risks relating to options on futures contracts. The ability to
establish and close out positions in such options will be subject to the
development and maintenance of a liquid secondary market. It is not certain
that such a market will develop. Although a Fund generally will purchase only
those options for which there appears to be an active secondary market, there is
no assurance that a liquid secondary market on an exchange will exist for any
particular option or at any particular time. In the event no such market exists
for particular options, it might not be possible to effect closing transactions
in such options, with the result that a Fund would have to exercise the options
in order to realize any profit.
HEDGING RISKS. There are several risks in connection with the use by a
Fund of futures contracts and related options as a hedging device. One risk
arises because of the imperfect correlation between movements in the prices of
the futures contracts and options and movements in the underlying securities or
index or movements in the prices of a Fund's securities which are the subject of
a hedge. A Fund's Adviser will, however, attempt to reduce this risk by
purchasing and selling, to the extent possible, futures contracts and related
options on securities and indexes the movements of which will, in its judgment,
correlate closely with movements in the prices of the underlying securities or
index and the Fund's portfolio securities sought to be hedged.
Successful use of futures contracts and options by a Fund for hedging
purposes is also subject to its Adviser's ability to predict correctly movements
in the direction of the market. It is possible that, where a Fund has purchased
puts on futures contracts to hedge its portfolio against a decline in the
market, the securities or index on which the puts are purchased may increase in
value and the value of securities held in the portfolio may decline. If this
occurred, the Fund would lose money on the puts and also experience a decline in
value in its portfolio securities. In addition, the prices of futures, for a
number of reasons, may not correlate perfectly with movements in the underlying
securities or index due to certain market distortions. First, all participants
in the futures market are subject to margin deposit requirements. Such
requirements may cause investors to close futures contracts through offsetting
transactions which could distort the normal relationship between the underlying
security or index and futures markets. Second, the margin requirements in the
futures markets are less onerous than margin requirements in the securities
markets in general, and as a result the futures markets may attract more
speculators than the securities markets do. Increased participation by
speculators in the futures markets may also cause temporary price distortions.
Due to the possibility of price distortion, even a correct forecast of general
market trends by a Fund's Adviser still may not result in a successful hedging
transaction over a very short time period.
OTHER RISKS. Funds will incur brokerage fees in connection with their
futures and options transactions. In addition, while futures contracts and
options on futures will be purchased and sold to reduce certain risks, those
transactions themselves entail certain other risks. Thus, while a Fund may
benefit from the use of futures and related options, unanticipated changes in
interest rates or stock price movements may result in a poorer overall
performance for the Fund than if it had not entered into any futures contracts
or options transactions. Moreover,
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in the event of an imperfect correlation between the futures position and the
portfolio position which is intended to be protected, the desired protection may
not be obtained and the Fund may be exposed to risk of loss.
INDEXED SECURITIES
Certain of the Funds may purchase securities whose prices are indexed to
the prices of other securities, securities indices, currencies, precious metals
or other commodities, or other financial indicators. Indexed securities
typically, but not always, are debt securities or deposits whose value at
maturity or coupon rate is determined by reference to a specific instrument or
statistic. Gold-indexed securities, for example, typically provide for a
maturity value that depends on the price of gold, resulting in a security whose
price tends to rise and fall together with gold prices. Currency-indexed
securities typically are short-term to intermediate-term debt securities whose
maturity values or interest rates are determined by reference to the values of
one or more specified foreign currencies, and may offer higher yields than U.S.
dollar-denominated securities of equivalent issuers. Currency-indexed
securities may be positively or negatively indexed; that is, their maturity
value may increase when the specified currency value increases, resulting in a
security whose price characteristics are similar to a put option on the
underlying currency. Currency-indexed securities also may have prices that
depend on the values of a number of different foreign currencies relative to
each other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, commodity or other instrument to which
they are indexed, and also may be influenced by interest rate changes in the
U.S. and abroad. At the same time, indexed securities are subject to the credit
risks associated with the issuer of the security, and their values may decline
substantially if the issuer's creditworthiness deteriorates. Recent issuers of
indexed securities have included banks, corporations, and certain U.S.
Government agencies.
REPURCHASE AGREEMENTS
A Fund may enter into repurchase agreements. A repurchase agreement is a
contract under which the Fund acquires a security for a relatively short period
(usually not more than one week) subject to the obligation of the seller to
repurchase and the Fund to resell such security at a fixed time and price
(representing the Fund's cost plus interest). It is the Trust's present
intention to enter into repurchase agreements only with member banks of the
Federal Reserve System and securities dealers meeting certain criteria as to
creditworthiness and financial condition established by the Trustees of the
Trust and only with respect to obligations of the U.S. government or its
agencies or instrumentalities or other high-quality, short-term debt
obligations. Repurchase agreements may also be viewed as loans made by a Fund
which are collateralized by the securities subject to repurchase. Robertson
Stephens Investment Management will monitor such transactions to ensure that the
value of the underlying securities will be at least equal at all times to the
total amount of the repurchase obligation, including the interest factor. If
the seller defaults, a Fund could realize a loss on the sale of the underlying
security to the extent that the proceeds of sale including accrued interest are
less than the resale price provided in the agreement including interest. In
addition, if the seller should be involved in bankruptcy or insolvency
proceedings, a Fund may incur delay and costs in selling the underlying security
or may suffer a loss of principal and interest if the Fund is treated as an
unsecured creditor and required to return the underlying collateral to the
seller's estate.
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LEVERAGE
Leveraging a Fund creates an opportunity for increased net income but, at
the same time, creates special risk considerations. For example, leveraging may
exaggerate changes in the net asset value of a Fund's shares and in the yield on
a Fund's portfolio. Although the principal of such borrowings will be fixed, a
Fund's assets may change in value during the time the borrowing is outstanding.
Leveraging will create interest expenses for a Fund, which can exceed the income
from the assets retained. To the extent the income derived from securities
purchased with borrowed funds exceeds the interest these Funds will have to pay,
each Fund's net income will be greater than if leveraging were not used.
Conversely, if the income from the assets retained with borrowed funds is not
sufficient to cover the cost of leveraging, the net income of the Fund will be
less than if leveraging were not used, and therefore the amount available for
distribution to stockholders as dividends will be reduced.
REVERSE REPURCHASE AGREEMENTS
In connection with its leveraging activities, a Fund may enter into reverse
repurchase agreements, in which the Fund sells securities and agrees to
repurchase them at a mutually agreed date and price. A reverse repurchase
agreement may be viewed as a borrowing by the Fund, secured by the security
which is the subject of the agreement. In addition to the general risks
involved in leveraging, reverse repurchase agreements involve the risk that, in
the event of the bankruptcy or insolvency of the Fund's counterparty, the Fund
would be unable to recover the security which is the subject of the agreement,
the amount of cash or other property transferred by the counterparty to the Fund
under the agreement prior to such insolvency or bankruptcy is less than the
value of the security subject to the agreement, or the Fund may be delayed or
prevented, due to such insolvency or bankruptcy, from using such cash or
property or may be required to return it to the counterparty or its trustee or
receiver.
SECURITIES LENDING
A Fund may lend its portfolio securities, provided: (1) the loan is
secured continuously by collateral consisting of U.S. Government securities,
cash, or cash equivalents adjusted daily to have market value at least equal to
the current market value of the securities loaned; (2) the Fund may at any time
call the loan and regain the securities loaned; (3) a Fund will receive any
interest or dividends paid on the loaned securities; and (4) the aggregate
market value of securities of any Fund loaned will not at any time exceed one-
third (or such other limit as the Trustees may establish) of the total assets of
the Fund. In addition, it is anticipated that a Fund may share with the
borrower some of the income received on the collateral for the loan or that it
will be paid a premium for the loan.
Before a Fund enters into a loan, its Adviser considers all relevant facts
and circumstances, including the creditworthiness of the borrower. The risks in
lending portfolio securities, as with other extensions of credit, consist of
possible delay in recovery of the securities or possible loss of rights in the
collateral should the borrower fail financially. Although voting rights or
rights to consent with respect to the loaned securities pass to the borrower, a
Fund retains the right to call the loans at any time on reasonable notice, and
it will do so in order that the securities may be voted by a Fund if the holders
of such securities are asked to vote upon or consent to matters materially
affecting the investment. A Fund will not lend portfolio securities to
borrowers affiliated with the Fund.
SHORT SALES
Certain of the Funds may seek to hedge investments or realize additional
gains through short sales. Short sales are transactions in which a Fund sells a
security it does not own, in anticipation of a decline in the market
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value of that security. To complete such a transaction, a Fund must borrow the
security to make delivery to the buyer. A Fund then is obligated to replace the
security borrowed by purchasing it at the market price at or prior to the time
of replacement. The price at such time may be more or less than the price at
which the security was sold by a Fund. Until the security is replaced, a Fund
is required to repay the lender any dividends or interest that accrue during the
period of the loan. To borrow the security, a Fund also may be required to pay
a premium, which would increase the cost of the security sold. The net proceeds
of the short sale will be retained by the broker (or by the Fund's custodian in
a special custody account), to the extent necessary to meet margin requirements,
until the short position is closed out. A Fund also will incur transaction
costs in effecting short sales.
A Fund will incur a loss as a result of the short sale if the price of the
security increases between the date of the short sale and the date on which a
Fund replaces the borrowed security. A Fund will realize a gain if the security
declines in price between those dates. The amount of any gain will be
decreased, and the amount of any loss increased, by the amount of the premium,
dividends, interest or expenses a Fund may be required to pay in connection with
a short sale.
FOREIGN INVESTMENTS
As noted in the Prospectus, the Funds may invest in foreign securities,
securities denominated in or indexed to foreign currencies, and certificates of
deposit issued by United States branches of foreign banks and foreign branches
of United States banks.
Investments in foreign securities may involve considerations different from
investments in domestic securities due to limited publicly available
information, non-uniform accounting standards, lower trading volume and possible
consequent illiquidity, greater volatility in price, the possible imposition of
withholding or confiscatory taxes, the possible adoption of foreign governmental
restrictions affecting the payment of principal and interest, expropriation of
assets, nationalization, or other adverse political or economic developments.
Foreign companies may not be subject to auditing and financial reporting
standards and requirements comparable to those which apply to U.S. companies.
Foreign brokerage commissions and other fees are generally higher than in the
United States. It may be more difficult to obtain and enforce a judgment
against a foreign issuer.
In addition, to the extent that a Fund's foreign investments are not United
States dollar-denominated, the Fund may be affected favorably or unfavorably by
changes in currency exchange rates or exchange control regulations and may incur
costs in connection with conversion between currencies.
DEVELOPING COUNTRIES. The considerations noted above for foreign
investments generally are intensified for investments in developing countries.
These risks include (i) volatile social, political and economic conditions; (ii)
the small current size of the markets for such securities and the currently low
or nonexistent volume of trading, which result in a lack of liquidity and in
greater price volatility; (iii) the existence of national policies which may
restrict a Fund's investment opportunities, including restrictions on investment
in issuers or industries deemed sensitive to national interests; (iv) foreign
taxation; (v) the absence of developed structures governing private or foreign
investment or allowing for judicial redress for injury to private property; (vi)
the absence, until recently in certain developing countries, of a capital market
structure or market-oriented economy; (vii) economies based on only a few
industries; and (viii) the possibility that recent favorable economic
developments in certain developing countries may be slowed or reversed by
unanticipated political or social events in such countries.
FOREIGN CURRENCY TRANSACTIONS
A Fund may engage in currency exchange transactions to protect against
uncertainty in the level of future foreign currency exchange rates and to
increase current return. A Fund may engage in both "transaction hedging" and
"position hedging".
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When it engages in transaction hedging, a Fund enters into foreign currency
transactions with respect to specific receivables or payables of the Fund
generally arising in connection with the purchase or sale of its portfolio
securities. A Fund will engage in transaction hedging when it desires to "lock
in" the U.S. dollar price of a security it has agreed to purchase or sell, or
the U.S. dollar equivalent of a dividend or interest payment in a foreign
currency. By transaction hedging, a Fund will attempt to protect against a
possible loss resulting from an adverse change in the relationship between the
U.S. dollar and the applicable foreign currency during the period between the
date on which the security is purchased or sold or on which the dividend or
interest payment is declared, and the date on which such payments are made or
received.
A Fund may purchase or sell a foreign currency on a spot (I.E., cash) basis
at the prevailing spot rate in connection with transaction hedging. A Fund may
also enter into contracts to purchase or sell foreign currencies at a future
date ("forward contracts") and purchase and sell foreign currency futures
contracts.
For transaction hedging purposes, a Fund may also purchase exchange-listed
and over-the-counter call and put options on foreign currency futures contracts
and on foreign currencies. A put option on a futures contract gives a Fund the
right to assume a short position in the futures contract until expiration of the
option. A put option on currency gives a Fund the right to sell a currency at a
specified exercise price until the expiration of the option. A call option on a
futures contract gives a Fund the right to assume a long position in the futures
contract until the expiration of the option. A call option on currency gives a
Fund the right to purchase a currency at the exercise price until the expiration
of the option. A Fund will engage in over-the-counter transactions only when
appropriate exchange-traded transactions are unavailable and when, in the
opinion of its Adviser, the pricing mechanism and liquidity are satisfactory and
the participants are responsible parties likely to meet their contractual
obligations.
When it engages in position hedging, a Fund enters into foreign currency
exchange transactions to protect against a decline in the values of the foreign
currencies in which securities held by the Fund are denominated or are quoted in
their principle trading markets or an increase in the value of currency for
securities which the Fund expects to purchase. In connection with position
hedging, a Fund may purchase put or call options on foreign currency and foreign
currency futures contracts and buy or sell forward contracts and foreign
currency futures contracts. A Fund may also purchase or sell foreign currency
on a spot basis.
The precise matching of the amounts of foreign currency exchange
transactions and the value of the portfolio securities involved will not
generally be possible since the future value of such securities in foreign
currencies will change as a consequence of market movements in the values of
those securities between the dates the currency exchange transactions are
entered into and the dates they mature.
It is impossible to forecast with precision the market value of a Fund's
portfolio securities at the expiration or maturity of a forward or futures
contract. Accordingly, it may be necessary for a Fund to purchase additional
foreign currency on the spot market (and bear the expense of such purchase) if
the market value of the security or securities being hedged is less than the
amount of foreign currency a Fund is obligated to deliver and if a decision is
made to sell the security or securities and make delivery of the foreign
currency. Conversely, it may be necessary to sell on the spot market some of
the foreign currency received upon the sale of the portfolio security or
securities of a Fund if the market value of such security or securities exceeds
the amount of foreign currency the Fund is obligated to deliver.
To offset some of the costs to a Fund of hedging against fluctuations in
currency exchange rates, the Fund may write covered call options on those
currencies.
Transaction and position hedging do not eliminate fluctuations in the
underlying prices of the securities which a Fund owns or intends to purchase or
sell. They simply establish a rate of exchange which one can achieve at some
future point in time. Additionally, although these techniques tend to minimize
the risk of loss due to a
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decline in the value of the hedged currency, they tend to limit any potential
gain which might result from the increase in the value of such currency.
A Fund may also seek to increase its current return by purchasing and
selling foreign currency on a spot basis, by purchasing and selling options on
foreign currencies and on foreign currency futures contracts, and by purchasing
and selling foreign currency forward contracts.
CURRENCY FORWARD AND FUTURES CONTRACTS. A forward foreign currency
exchange contract involves an obligation to purchase or sell a specific currency
at a future date, which may be any fixed number of days from the date of the
contract as agreed by the parties, at a price set at the time of the contract.
In the case of a cancelable forward contract, the holder has the unilateral
right to cancel the contract at maturity by paying a specified fee. The
contracts are traded in the interbank market conducted directly between currency
traders (usually large commercial banks) and their customers. A forward
contract generally has no deposit requirement, and no commissions are charged at
any stage for trades. A foreign currency futures contract is a standardized
contract for the future delivery of a specified amount of a foreign currency at
a future date at a price set at the time of the contract. Foreign currency
futures contracts traded in the United States are designed by and traded on
exchanges regulated by the Commodity Futures Trading Commission (the "CFTC"),
such as the New York Mercantile Exchange.
Forward foreign currency exchange contracts differ from foreign currency
futures contracts in certain respects. For example, the maturity date of a
forward contract may be any fixed number of days from the date of the contract
agreed upon by the parties, rather than a predetermined date in a given month.
Forward contracts may be in any amounts agreed upon by the parties rather than
predetermined amounts. Also, forward foreign exchange contracts are traded
directly between currency traders so that no intermediary is required. A
forward contract generally requires no margin or other deposit.
At the maturity of a forward or futures contract, a Fund may either accept
or make delivery of the currency specified in the contract, or at or prior to
maturity enter into a closing transaction involving the purchase or sale of an
offsetting contract. Closing transactions with respect to forward contracts are
usually effected with the currency trader who is a party to the original forward
contract. Closing transactions with respect to futures contracts are effected
on a commodities exchange; a clearing corporation associated with the exchange
assumes responsibility for closing out such contracts.
Positions in foreign currency futures contracts and related options may be
closed out only on an exchange or board of trade which provides a secondary
market in such contracts or options. Although a Fund will normally purchase or
sell foreign currency futures contracts and related options only on exchanges or
boards of trade where there appears to be an active secondary market, there is
no assurance that a secondary market on an exchange or board of trade will exist
for any particular contract or option or at any particular time. In such event,
it may not be possible to close a futures or related option position and, in the
event of adverse price movements, a Fund would continue to be required to make
daily cash payments of variation margin on its futures positions.
FOREIGN CURRENCY OPTIONS. Options on foreign currencies operate similarly
to options on securities, and are traded primarily in the over-the-counter
market, although options on foreign currencies have recently been listed on
several exchanges. Such options will be purchased or written only when a Fund's
Adviser believes that a liquid secondary market exists for such options. There
can be no assurance that a liquid secondary market will exist for a particular
option at any specific time. Options on foreign currencies are affected by all
of those factors which influence exchange rates and investments generally.
The value of a foreign currency option is dependent upon the value of the
foreign currency and the U.S. dollar, and may have no relationship to the
investment merits of a foreign security. Because foreign currency transactions
occurring in the interbank market involve substantially larger amounts than
those that may be involved in the use of foreign currency options, investors may
be disadvantaged by having to deal in an odd lot
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market (generally consisting of transactions of less than $1 million) for the
underlying foreign currencies at prices that are less favorable than for round
lots.
There is no systematic reporting of last-sale information for foreign
currencies and there is no regulatory requirement that quotations available
through dealers or other market sources be firm or revised on a timely basis.
Available quotation information is generally representative of very large
transactions in the interbank market and thus may not reflect relatively smaller
transactions (less than $1 million) where rates may be less favorable. The
interbank market in foreign currencies is a global, around-the-clock market. To
the extent that the U.S. options markets are closed while the markets for the
underlying currencies remain open, significant price and rate movements may take
place in the underlying markets that cannot be reflected in the U.S. options
markets.
FOREIGN CURRENCY CONVERSION. Although foreign exchange dealers do not
charge a fee for currency conversion, they do realize a profit based on the
difference (the "spread") between prices at which they buy and sell various
currencies. Thus, a dealer may offer to sell a foreign currency to a Fund at
one rate, while offering a lesser rate of exchange should a Fund desire to
resell that currency to the dealer.
PRECIOUS METALS
The value of the Contrarian Fund's investments may be affected by changes
in the price of gold and other precious metals. Gold has been subject to
substantial price fluctuations over short periods of time and may be affected by
unpredictable international monetary and other governmental policies, such as
currency devaluations or revaluations; economic and social conditions within a
country; trade imbalances; or trade or currency restrictions between countries.
Because much of the world's known gold reserves are located in South Africa,
political and social conditions there may pose special risks to the Contrarian
Fund's investments. For instance, social upheaval and related economic
difficulties in South Africa could cause a decrease in the share values of South
African issuers. Many institutions have rescinded policies that preclude
investments in companies doing business in South Africa. In July 1991, the
United States lifted the prohibition on new U.S. investment in South Africa,
including the purchase of newly-issued securities of South African companies.
In addition to its investments in securities, the Contrarian Fund may
invest a portion of its assets in precious metals, such as gold, silver,
platinum, and palladium, and precious metal options and futures. The prices of
precious metals are affected by broad economic and political conditions, but are
less subject to local and company-specific factors than securities of individual
companies. As a result, precious metals and precious metal options and futures
may be more or less volatile in price than securities of companies engaged in
precious metals-related businesses. The Contrarian Fund may purchase precious
metals in any form, including bullion and coins, provided that RSIM, L.P.
intends to purchase only those forms of precious metals that are readily
marketable and that can be stored in accordance with custody regulations
applicable to mutual funds. The Contrarian Fund may incur higher custody and
transaction costs for precious metals than for securities. Also, precious
metals investments do not pay income.
The Contrarian Fund is authorized to invest up to 5% of its total assets in
precious metals. As a further limit on precious metals investment, under
current federal income tax law, gains from selling precious metals (and certain
other assets) may not exceed 10% of the Contrarian Fund's annual gross income.
This tax requirement could cause the Contrarian Fund to hold or sell precious
metals, securities, options or futures when it would not otherwise do so.
ZERO-COUPON DEBT SECURITIES AND PAY-IN-KIND SECURITIES
Zero-coupon securities in which a Fund may invest are debt obligations
which are generally issued at a discount and payable in full at maturity, and
which do not provide for current payments of interest prior to maturity. Zero-
coupon securities usually trade at a deep discount from their face or par value
and are subject to greater market value fluctuations from changing interest
rates than debt obligations of comparable maturities
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which make current distributions of interest. As a result, the net asset value
of shares of a Fund investing in zero-coupon securities may fluctuate over a
greater range than shares of other mutual funds investing in securities making
current distributions of interest and having similar maturities.
When debt obligations have been stripped of their unmatured interest
coupons by the holder, the stripped coupons are sold separately. The principal
or corpus is sold at a deep discount because the buyer receives only the right
to receive a future fixed payment on the security and does not receive any
rights to periodic cash interest payments. Once stripped or separated, the
corpus and coupons may be sold separately. Typically, the coupons are sold
separately or grouped with other coupons with like maturity dates and sold in
such bundled form. Purchasers of stripped obligations acquire, in effect,
discount obligations that are economically identical to the zero-coupon
securities issued directly by the obligor.
Zero-coupon securities allow an issuer to avoid the need to generate cash
to meet current interest payments. Even though zero-coupon securities do not
pay current interest in cash, a Fund is nonetheless required to accrue interest
income on them and to distribute the amount of that interest at least annually
to shareholders. Thus, a Fund could be required at times to liquidate other
investments in order to satisfy its distribution requirement.
A Fund also may purchase pay-in-kind securities. Pay-in-kind securities
pay all or a portion of their interest or dividends in the form of additional
securities.
THE FUNDS' INVESTMENT LIMITATIONS
The Trust has adopted the following fundamental investment restrictions
which (except to the extent they are designated as nonfundamental as to any
Fund) may not be changed without the affirmative vote of a majority of the
outstanding voting securities of the affected Fund.
THE CONTRARIAN FUND, THE DEVELOPING COUNTRIES FUND, THE EMERGING GROWTH
FUND AND THE VALUE + GROWTH FUND.
A Fund may not:
1. purchase or sell commodities or commodity contracts, or interests in
oil, gas, or other mineral leases, or other mineral exploration or
development programs, although it may invest in companies that engage
in such businesses to the extent otherwise permitted by a Fund's
investment policies and restrictions and by applicable law, except as
required in connection with otherwise permissible options, futures and
commodity activities as described elsewhere in the Prospectus and this
Statement;
2. purchase or sell real estate, although it may invest in securities
secured by real estate or real estate interests, or issued by
companies, including real estate investment trusts, that invest in
real estate or real estate interests;
3. make short sales or purchases on margin, although it may obtain short-
term credit necessary for the clearance of purchases and sales of its
portfolio securities and except as required in connection with
permissible options, futures, short selling and leverage activities as
described elsewhere in the Prospectus and this Statement (the short
sale restriction is nonfundamental for the Value + Growth Fund);
4. (a) for the Contrarian Fund and the Developing Countries Fund only:
with respect to 50% of its total assets, invest in the securities of
any one issuer (other than the U.S. Government and its agencies and
instrumentalities), if immediately after and as a result of such
investment more than
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5% of the total assets of the Fund would be invested in such issuer
(the remaining 50% of its total assets may be invested without
restriction except to the extent other investment restrictions may be
applicable);
(b) for the Emerging Growth Fund and Value + Growth Fund only: with
respect to 75% of its total assets, invest in the securities of any
one issuer (other than the U.S. Government and its agencies and
instrumentalities), if immediately after and as a result of such
investment more than 5% of the total assets of the Fund would be
invested in such issuer (the remaining 25% of its total assets may be
invested without restriction except to the extent other investment
restrictions may be applicable);
5. mortgage, hypothecate, or pledge any of its assets as security for any
of its obligations, except as required for otherwise permissible
borrowings (including reverse repurchase agreements), short sales,
financial options and other hedging activities;
6. make loans of the Fund's assets, including loans of securities
(although it may, subject to the other restrictions or policies stated
herein, purchase debt securities or enter into repurchase agreements
with banks or other institutions to the extent a repurchase agreement
is deemed to be a loan), except that the Contrarian Fund and
Developing Countries Fund each may lend up to one-third of its total
assets to other parties;
7. borrow money, except from banks for temporary or emergency purposes or
in connection with otherwise permissible leverage activities, and then
only in an amount not in excess of (a) one-third of the value of the
Contrarian Fund's or Developing Countries Fund's total assets, or (b)
5% of the Emerging Growth Fund's or Value + Growth Fund's total assets
(in any case as determined at the lesser of acquisition cost or
current market value and excluding collateralized reverse repurchase
agreements);
8. underwrite securities of any other company, although it may invest in
companies that engage in such businesses if it does so in accordance
with policies established by the Trust's Board of Trustees (the
Board's current policy permits a Fund to invest in companies that
directly or through subsidiaries execute portfolio transactions for a
Fund or have entered into selling agreements with the Distributor to
sell Fund shares, to the extent permitted by applicable law), and
except to the extent that the Fund may be considered an underwriter
within the meaning of the Securities Act of 1933, as amended, in the
disposition of restricted securities;
9. invest more than 25% of the value of the Fund's total assets in the
securities of companies engaged in any one industry (except securities
issued by the U.S. Government, its agencies and instrumentalities);
10. issue senior securities, as defined in the 1940 Act, except that this
restriction shall not be deemed to prohibit the Fund from making any
otherwise permissible borrowings, mortgages or pledges, or entering
into permissible reverse repurchase agreements, and options and
futures transactions;
11. purchase the securities of any company for the purpose of exercising
management or control (nonfundamental restriction for the Contrarian
Fund, the Developing Countries Fund and the Value + Growth Fund);
12. (a) purchase more than 10% of the outstanding voting securities of any
one issuer (fundamental restriction for the Emerging Growth Fund and
nonfundamental restriction for the Value + Growth Fund);
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(b) own, directly or indirectly, more than 25% of the voting
securities of any one issuer or affiliated person of the issuer
(nonfundamental restriction of the Contrarian Fund and the Developing
Countries Fund);
13. (a) purchase the securities of any registered investment company,
except as part of a merger or similar reorganization transaction
(Emerging Growth Fund only);
(b) purchase the securities of other investment companies, except as
permitted by the 1940 Act or as part of a merger, consolidation,
acquisition of assets or similar reorganization transaction (Value +
Growth Fund only);
(c) purchase the securities of other investment companies, except as
permitted by the 1940 Act (and then only in the open market where no
commission except the ordinary broker's commission is paid) or as part
of a merger, consolidation, acquisition of assets or similar
reorganization transaction (nonfundamental for the Contrarian Fund);
(d) purchase the securities of other investment companies, except as
permitted by the 1940 Act and except as otherwise provided in the
Prospectus (nonfundamental for the Developing Countries Fund);
14. (a) invest more than 5% of the value of its total assets in securities
of any issuer which has not had a record, together with its
predecessors, of at least three years of continuous operations
(fundamental restriction for the Emerging Growth Fund and
nonfundamental restriction for the Value + Growth Fund); and
(b) invest more than 50% of its total assets in the securities of
issuers which, together with any predecessors, have a record of less
than three years of continuous operation or in restricted securities
(nonfundamental restriction for the Contrarian Fund and the Developing
Countries Fund);
15. invest more than 10% of the value of its total assets in securities
that are not readily marketable or that would require registration
under the Securities Act of 1933, as amended, upon disposition (as a
matter of operating policy, the Fund interprets this restriction as
including venture capital investments such as venture capital
partnerships whose securities are not registered under the Securities
Act of 1933 and unregistered securities of companies which are not yet
publicly held; furthermore, and as an additional matter of operating
policy, the Board of Trustees has adopted a further restriction that
no more than 5% of the Fund's total assets may be held in such
restricted securities) (Emerging Growth Fund only).
Additional investment restrictions, which may be changed by the Board of
Trustees without shareholder approval, provide that no Fund may:
1. except as required in connection with otherwise permissible options
and futures activities, invest more than 5% of the value of the Fund's
total assets in rights or warrants (other than those that have been
acquired in units or attached to other securities), or invest more
than 2% of its total assets in rights or warrants that are not listed
on the New York or American Stock Exchanges;
2. participate on a joint basis in any trading account in securities,
although the Adviser may aggregate orders for the sale or purchase of
securities with other accounts it manages to reduce brokerage costs or
to average prices;
3. invest, in the aggregate, more than 15% (Contrarian Fund and
Developing Countries Fund only) or 10% (Value + Growth Fund only) of
its net assets in illiquid securities;
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4. (a) purchase or write put, call, straddle or spread options except as
described in the Prospectus or Statement of Additional Information
(Contrarian Fund, Developing Countries Fund and Value + Growth Fund
only);
(b) write, purchase, or sell puts, calls, straddles, spreads or
combinations thereof (Emerging Growth Fund only);
5. purchase or retain in the Fund's portfolio any security if any
officer, trustee or shareholder of the issuer is at the same time an
officer, trustee or employee of the Trust or of its Adviser and such
person owns beneficially more than 1/2 of 1% of the securities and all
such persons owning more than 1/2 of 1% own in the aggregate more than
5% of the outstanding securities of the issuer;
6. invest in real estate limited partnerships or invest more than 10% of
the value of its total assets in real estate investment trusts (the
Contrarian Fund and Value + Growth Fund only);
7. buy or sell physical commodities, except that the Contrarian Fund may
invest not more than 5% of its net assets in gold, silver, platinum,
palladium or other precious metals;
8. invest or engage in arbitrage transactions (Emerging Growth Fund and
Value + Growth Fund only);
9. invest more than 40% of its total assets in the securities of
companies operating exclusively in one foreign country;
10. purchase securities of other open-end investment companies (Value +
Growth Fund only); and
11. under normal market conditions, invest less than 65% of its total
assets in:
(a) equity securities (Contrarian Fund only).
(b) emerging markets equity securities (Developing Countries Fund
only).
(c) equity securities of emerging growth companies (Emerging Growth
Fund only).
(d) companies listed on a nationally recognized securities exchange
or traded on the National Association of Securities Dealers Automated
Quotation System (Value + Growth Fund only).
ALL OTHER FUNDS.
As fundamental investment restrictions, which may not be changed with
respect to a Fund without approval by the holders of a majority of the
outstanding shares of that Fund, a Fund may not:
1. issue any class of securities which is senior to the Fund's shares of
beneficial interest, except that each of the Funds may borrow money to
the extent contemplated by Restriction 3 below;
2. purchase securities on margin (but a Fund may obtain such short-term
credits as may be necessary for the clearance of transactions).
(Margin payments or other arrangements in connection with transactions
in short sales, futures contracts, options, and other financial
instruments are not considered to constitute the purchase of
securities on margin for this purpose.);
3. borrow more than one-third of the value of its total assets less all
liabilities and indebtedness (other than such borrowings) not
represented by senior securities;
B-18
<PAGE>
4. act as underwriter of securities of other issuers except to the extent
that, in connection with the disposition of portfolio securities, it
may be deemed to be an underwriter under certain federal securities
laws;
5. (as to 75% of the Global Low-Priced Stock Fund's, the Global Natural
Resources Fund's, the Growth & Income Fund's, and the Information Age
Fund's total assets and 50% of the Partners Fund's total assets)
purchase any security (other than obligations of the U.S. Government,
its agencies or instrumentalities) if as a result: (i) more than 5%
of the Fund's total assets (taken at current value) would then be
invested in securities of a single issuer, or (ii) more than 25% of
the Fund's total assets (taken at current value) would be invested in
a single industry, except that the Information Age Fund may invest
without limit in any one or more information technology industries and
the Global Natural Resources Fund may invest without limit in any one
or more natural resources industries, as described in the Trust's
Prospectus at the time;
6. invest in securities of any issuer if any officer or Trustee of the
Trust or any officer or director of RSIM, L.P. or RSIM, Inc., as the
case may be, owns more than 1/2 of 1% of the outstanding securities
of such issuer, and such officers, Trustees and directors who own more
than 1/2 of 1% own in the aggregate more than 5% of the outstanding
securities of such issuer;
7. make loans, except by purchase of debt obligations or other financial
instruments in which the Fund may invest consistent with its
investment policies, by entering into repurchase agreements, or
through the lending of its portfolio securities.
In addition, it is contrary to the current policy of each of the Global
Low-Priced Stock, Global Natural Resources, Growth & Income, Information Age,
and Partners Funds, which policy may be changed without shareholder approval,
to:
1. invest in warrants (other than warrants acquired by the Fund as a part
of a unit or attached to securities at the time of purchase) if, as a
result, such investment (valued at the lower of cost or market value)
would exceed 5% of the value of the Fund's net assets, provided that
not more than 2% of the Fund's net assets may be invested in warrants
not listed on the New York or American Stock Exchanges;
2. purchase or sell commodities or commodity contracts, except that a
Fund may purchase or sell financial futures contracts, options on
financial futures contracts, and futures contracts, forward contracts,
and options with respect to foreign currencies, and may enter into
swap transactions;
3. purchase securities restricted as to resale if, as a result, (i) more
than 10% of the Fund's total assets would be invested in such
securities, or (ii) more than 5% of the Fund's total assets (excluding
any securities eligible for resale under Rule 144A under the
Securities Act of 1933) would be invested in such securities;
4. invest in (a) securities which at the time of such investment are not
readily marketable, (b) securities restricted as to resale, and (c)
repurchase agreements maturing in more than seven days, if, as a
result, more than 15% of the Fund's net assets (taken at current
value) would then be invested in the aggregate in securities described
in (a), (b), and (c) above;
5. invest in securities of other registered investment companies, except
by purchases in the open market involving only customary brokerage
commissions and as a result of which not more than 5% of its total
assets (taken at current value) would be invested in such securities,
or except as part of
B-19
<PAGE>
a merger, consolidation, or other acquisition;
6. invest in real estate limited partnerships;
7. purchase any security if, as a result, the Fund would then have more
than 5% of its total assets (taken at current value) invested in
securities of companies (including predecessors) less than three years
old;
8. purchase or sell real estate or interests in real estate, including
real estate mortgage loans, although (i) it may purchase and sell
securities which are secured by real estate and securities of
companies, including limited partnership interests, that invest or
deal in real estate and it may purchase interests in real estate
investment trusts, and (ii) the Global Natural Resources Fund may
invest in any issuers in the natural resources industries. (For
purposes of this restriction, investments by a Fund in mortgage-backed
securities and other securities representing interests in mortgage
pools shall not constitute the purchase or sale of real estate or
interests in real estate or real estate mortgage loans.);
9. make investments for the purpose of exercising control or management;
10. invest in interests in oil, gas or other mineral exploration or
development programs or leases, although it may invest in the common
stocks of companies that invest in or sponsor such programs, and the
Global Natural Resources Fund may invest in any issuer in the natural
resources industries;
11. acquire more than 10% of the voting securities of any issuer;
12. invest more than 15%, in the aggregate, of its total assets in the
securities of issuers which, together with any predecessors, have a
record of less than three years continuous operation and securities
restricted as to resale (including any securities eligible for resale
under Rule 144A under the Securities Act of 1933);
13. purchase or sell puts, calls, straddles, spreads, or any combination
thereof, if, as a result, the aggregate amount of premiums paid or
received by a Fund in respect of any such transactions then
outstanding would exceed 5% of its total assets.
In addition, the Global Low-Priced Stock, Global Natural Resources and
Information Age Funds will only sell short securities that are traded on a
national securities exchange in the U.S. (including the National Association of
Securities Dealers' Automated Quotation National Market System) or in the
country where the principal trading market in the securities is located. (This
limitation does not apply to short sales against the box).
All percentage limitations on investments will apply at the time of
investment and shall not be considered violated unless an excess or deficiency
occurs or exists immediately after and as a result of such investment. Except
for the investment restrictions listed above as fundamental or to the extent
designated as such in a Prospectus, the other investment policies described in
this Statement or in the Prospectus are not fundamental and may be changed by
approval of the Trustees. As a matter of policy, the Trustees would not
materially change a Fund's investment objective without shareholder approval.
The Investment Company Act of 1940, as amended (the "1940 Act"), provides
that a "vote of a majority of the outstanding voting securities" of the Fund
means the affirmative vote of the lesser of (1) more than 50% of the outstanding
shares of a Fund, or (2) 67% or more of the shares present at a meeting if more
than 50% of the outstanding shares are represented at the meeting in person or
by proxy.
B-20
<PAGE>
MANAGEMENT OF THE FUNDS
TRUSTEES AND OFFICERS
Set forth below is certain information about the Trust's trustees and
executive officers:
*G. RANDY HECHT, PRESIDENT, CHIEF EXECUTIVE OFFICER AND TRUSTEE
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Hecht, 44, has served as the Chief Operating Officer of Robertson,
Stephens & Company, Inc. since January 1993, as Chief Financial Officer of
Robertson, Stephens & Company LLC (and its predecessors) from June 1984 to
January 1993 and as the head of the firm's Investment Management Group
since 1988. He is a limited partner of Robertson, Stephens & Company LLC,
and a member of the Management and Executive Committees of Robertson,
Stephens & Company, Inc.. As of October 18, 1988 Mr. Hecht assumed the
responsibilities of President and Chief Executive Officer of the Trust.
From May 1987 through May 1995, he served as Chief Financial Officer of
the Trust. Mr. Hecht has been a Director of Robertson Stephens Investment
Management, Inc. ("RSIM, Inc.") and of Robertson, Stephens & Company, Inc.,
the sole general partner of Robertson, Stephens & Company Investment
Management, L.P. (RSIM, L.P.), one of the Trust's Advisers, from June 1989
to January 1993, and since January 1993, respectively. Mr. Hecht served as
the Trust's Secretary from May 1987 through January 1989, as RSIM, L.P.'s
Secretary from 1993 to the present, and as RSIM, Inc.'s Secretary from May
1987 through June 1989. He has been a Trustee of the Trust since June
1987.
LEONARD B. AUERBACH, TRUSTEE
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Auerbach, 49, is the President and Chairman of the Board of Auerbach
Associates, Inc., a management consulting firm which he founded in 1979.
Mr. Auerbach is also the sole shareholder and director of a company that is
a general partner of Tuttle & Company, which provides mortgage pipeline
interest rate hedging services to a variety of institutional clients. Mr.
Auerbach is the President of Tuttle & Auerbach Securities, Inc., an
introducing broker trading futures on behalf of institutional hedging
clients and individuals. He also is a Director of Roelof Mining, Inc. He
was a professor of Business Administration at St. Mary's College, Moraga,
California until June 1992. He is the co-founder, and served as the
Chairman until March 1986, of Intraview Systems Corporation, a privately-
held company whose assets were acquired by Worlds of Wonder, Inc. He has
been a Trustee of the Trust since June 1987.
DANIEL R. COONEY, TRUSTEE
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Cooney, 71, is retired. He had a consulting agreement with Lord Abbett
& Co., a mutual fund adviser, from January 1987 until December 1989. From
September 1985 through December 1986 he was an Executive Vice President and
Senior Adviser of the Lord Abbett Developing Growth Fund, a mutual fund.
Mr. Cooney was the portfolio manager of the Lord Abbett Developing Growth
Fund from its inception (October 1973) through September 1985, at which
time the Lord Abbett Developing Growth Fund had assets of approximately
$250 million. He has been a Trustee of the Trust since April 1989.
- --------------------------------
*Denotes a Trustee who is an "interested person," as defined in the 1940 Act.
B-21
<PAGE>
TERRY R. OTTON, CHIEF FINANCIAL OFFICER
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Otton, 41, has served as Treasurer, Chief Financial Officer, and
Principal Accounting Officer of Robertson, Stephens & Company LLC (and its
predecessors) since January 1993, and has been a Managing Director since
January 1992. Prior to becoming Chief Financial Officer of Robertson,
Stephens & Company LLC, he served as Controller from January 1988 to
December 1992. Mr. Otton is a Certified Public Accountant, and prior to
joining Robertson, Stephens & Company LLC in 1982, was employed by Arthur
Anderson.
JAMES K. PETERSON, TRUSTEE
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Peterson, 54, has served as Director of the IBM Retirement Funds since
April 1988. He was a Manager of the IBM Retirement Funds from March 1981
until April 1988. Mr. Peterson is a Trustee of Emerging Markets Growth
Fund, Inc., a closed-end investment company, and of New World Investment
Fund, an open-end investment company. He has been a Trustee of the Trust
since June 1987.
*JOHN P. ROHAL, TRUSTEE
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Rohal, 48, has served as Managing Director and Director of Research for
Robertson, Stephens & Company LLC (and its predecessors) since April 1993.
From November 1987 to April 1993 he was Managing Director and co-head of
the technology research group for Alex. Brown & Sons, an investment banking
firm. He has been a Trustee of the Trust since July 1993.
ROBERT GOLDBAUM, SECRETARY
c/o Robertson, Stephens & Company LLC, 555 California Street, San Francisco, CA
94104
Mr. Goldbaum, 25, has worked in investment management operations at
Robertson, Stephens & Company LLC (and its predecessors) since April 1994.
Prior to joining Robertson, Stephens & Company LLC, Mr. Goldbaum was
Accounting Manager at NCM Management Ltd., a real estate
investment/management firm. Mr. Goldbaum has served as Secretary of the
Trust since November 1995.
Pursuant to the terms of the Advisory Agreements with the Funds, Robertson
Stephens Investment Management pays all compensation of officers of the Trust as
well as the fees and expenses of all Trustees of the Trust who are affiliated
persons of Robertson Stephens Investment Management. The Trust pays each
unaffiliated Trustee an annual fee of $30,000 and reimburses their actual out-
of-pocket expenses relating to attendance at meetings of the Board of Trustees.
B-22
<PAGE>
CONTROL PERSONS AND SHARE OWNERSHIP
The Funds' shareholders of record who owned more than 5% of the respective
Funds' shares on December 31, 1995 were as follows:
<TABLE>
<CAPTION>
Percentage of Fund's
Shareholder Shares Owned Outstanding Shares
----------- ------------ ------------------
<S> <C> <C>
CONTRARIAN FUND
Charles Schwab & Co., Inc. 11,724,766 31.8%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
National Financial Services Corp. 3,050,233 8.2%
FBO The Exclusive Benefit of
Our Customers
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
DEVELOPING COUNTRIES FUND
Charles Schwab & Co., Inc. 725,915 40.6%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
National Financial Services Corp. 150,388 8.4%
Attn: Mutual Funds, 5th Floor
FBO The Exclusive Benefit of
Our Customers
P.O. Box 3908
Church Street Station
New York, NY 10281-1003
EMERGING GROWTH FUND
Charles Schwab & Co., Inc. 1,544,711 18.7%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
GLOBAL LOW-PRICED STOCK
B-23
<PAGE>
Randy A. Baygood 8,713 5.5%
1700 W. Barry Avenue
Floor 3
Chicago, IL 60657-3031
Waho Fud 10,000 6.3%
c/o Joseph Sullivan
1400 McDonald Investment Plaza
800 Superior Avenue E
Cleveland, OH 44114-2601
Ann S. McCaw 26,036 16.5%
2711 Scott Street
San Francisco, CA 94123-4636
Charles Schwab & Co., Inc. 55,021 34.9%
Reinvest Account
Attn: Mutual Funds Department
101 Montgomery Street
San Francisco, CA 94101-4122
GLOBAL NATURAL RESOURCES
Fred Carillo 5,000 6.3%
1029 Millcreek Manor
Atlanta, GA 30319-1983
JEMEST 10,000 12.7%
c/o Jeffrey Steinberg
67 Burton Avenue
Woodmere, NY 11598-1749
Ann S. McCaw 10,725 13.7%
2711 Scott Street
San Francisco, CA 94123-4636
Charles Schwab & Co., Inc. 23,302 29.7%
Reinvest Account
Attn: Mutual Funds Department
101 Montgomery Street
San Francisco, CA 94101-4122
GROWTH & INCOME
Charles Schwab & Co., Inc. 5,012,021 41.2%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
National Financial Services Corp. 1,305,412 10.7%
FBO The Exclusive Benefit of
B-24
<PAGE>
Our Customers
#4402087521
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
FTC & Co. 1,067,505 8.7%
Attn: Datalynx #095
P.O. Box 5508
Denver, CO 80217-5508
INFORMATION AGE
National Financial Services Corp. 533,760 15.2%
FBO the exclusive benefit of our customers
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
Charles Schwab & Co., Inc. 976,796 27.8%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
PARTNERS FUND
Charles Schwab & Co., Inc. 315,515 43.8%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
FTC & Co. 124,867 17.3%
Attn: Datalynx #003
P.O. Box 173736
Denver, CO 80217-3736
VALUE + GROWTH FUND
Charles Schwab & Co., Inc. 21,190,819 42.1%
Reinvest Account
Attn: Mutual Fund Department
101 Montgomery Street
San Francisco, CA 94104-4122
National Financial Services Corp. 7,546,586 15.0%
Attn: Mutual Funds, 5th Floor
FBO The Exclusive Benefit of
Our Customers
#44002087521
200 Liberty Street, 5th Floor
B-25
<PAGE>
New York, NY 10281-1003
</TABLE>
To the Funds' knowledge, there were no shareholders who owned beneficially
5% or more of a Fund's shares on December 31, 1995.
On December 31, 1995, the officers and trustees of the Trust, as a group,
beneficially owned less than 1% of the outstanding shares of each Fund.
The Trust's Declaration of Trust provides that the Trust will indemnify its
Trustees and officers against liabilities and expenses incurred in connection
with litigation in which they may be involved because of their offices with the
Trust, except if it is determined in the manner specified in the Declaration of
Trust that they have not acted in good faith in the reasonable belief that their
actions were in the best interests of the Trust or that such indemnification
would relieve any officer or Trustee of any liability to the Trust or its
shareholders by reason of willful misfeasance, bad faith, gross negligence, or
reckless disregard of his or her duties. The Trust, at its expense, provides
liability insurance for the benefit of its Trustees and officers.
ROBERTSON STEPHENS INVESTMENT MANAGEMENT
Pursuant to Investment Advisory Agreements (the "Advisory Agreements"),
Robertson Stephens Investment Management determines the composition of the
Funds' portfolios, the nature and timing of the changes to the Funds'
portfolios, and the manner of implementing such changes. Robertson Stephens
Investment Management also (a) provides the Funds with investment advice,
research, and related services for the investment of their assets, subject to
such directions as it may receive from the Board of Trustees; (b) pays all of
the Trust's executive officers' salaries and executive expenses (if any); (c)
pays all expenses incurred in performing its investment advisory duties under
the Advisory Agreements; and (d) furnishes the Funds with office space and
(except in the case of the Global Low-Price Stock Fund, the Global Natural
Resources Fund, the Growth & Income Fund, and the Information Age Fund) certain
administrative services. The services of Robertson Stephens Investment
Management to the Funds are not deemed to be exclusive, and Robertson Stephens
Investment Management or any affiliate may provide similar services to other
series of the Trust, other investment companies, and other clients, and may
engage in other activities. The Funds may reimburse Robertson Stephens
Investment Management (on a cost recovery basis only) for any services performed
for a Fund by it outside its duties under the Advisory Agreement.
RSIM, L.P. is a California limited partnership whose sole general partner
is Robertson, Stephens & Company, Inc. and whose sole limited partner is
Robertson, Stephens & Company LLC ("RS&Co."). RSIM, Inc. is a wholly-owned
subsidiary of RS&Co. Although the operations and management of RS&Co. are
independent from those of Robertson Stephens Investment Management, it is
expected that Robertson Stephens Investment Management will, in its discretion
and consistent with applicable regulations, draw upon the resources of RS&Co.
Investment decisions for the Funds and for the other investment advisory
clients of Robertson Stephens Investment Management and its affiliates are made
with a view to achieving their respective investment objectives. Investment
decisions are the product of many factors in addition to basic suitability for
the particular client involved. Thus, a particular security may be bought or
sold for certain clients even though it could have been bought or sold for other
clients at the same time. Likewise, a particular security may be bought for one
or more clients when one or more other clients are selling the security. In
some instances, one client may sell a particular security to another client. It
also sometimes happens that two or more clients simultaneously purchase or sell
the same security, in which event each day's transactions in such security are,
insofar as possible, averaged as to price and allocated between such clients in
a manner which in Robertson Stephens Investment Management's opinion is
equitable to each and in accordance with the amount being purchased or sold by
each. There may be circumstances when purchases or sales of portfolio
securities for one or more clients will have an adverse effect
B-26
<PAGE>
on other clients. Robertson Stephens Investment Management employs professional
staffs of portfolio managers who draw upon a variety of resources, including
RS&Co., for research information for the Funds.
MANAGEMENT FEES. The Funds pay Robertson Stephens Investment Management
management fees as compensation for the services provided by under the Advisory
Agreements. The amount of these management fees is calculated daily and payable
monthly at the following annual rates based on the average daily net assets of
each Fund:
Contrarian Fund 1.50%
Developing Countries Fund 1.25%
Emerging Growth Fund 1.00%
Global Low-Priced Stock Fund 1.00%
Global Natural Resources Fund 1.00%
Growth & Income Fund 1.00%
Information Age Fund 1.00%
Partners Fund 1.25%
Value + Growth Fund 1.00%
These management fees are higher than those paid by most other investment
companies. Robertson Stephens Investment Management also may at its discretion
from time to time pay for Fund expenses from its own assets, or reduce the
management fee of a Fund in excess of that required.
For the fiscal period June 3, 1993 (commencement of operations) through
March 31, 1994, management fees for the Contrarian Fund were $1,476,494. For
the fiscal year ended March 31, 1995, management fees for the Contrarian Fund
were $8,053,129. Reimbursement of such fees was $785,897. Management fees for
the Developing Countries Fund for the fiscal year ended March 31, 1995 were
$174,084, and expected reimbursement of management fees was $44,177. The
management fees for the Emerging Growth Fund for the fiscal years ended March
31, 1993, March 31, 1994 and March 31, 1995 were $648,066, $1,804,284 and
$1,736,763, respectively. For the fiscal period ended March 31, 1993, the
management fees for the Value + Growth Fund were $101,957, and RSIM, L.P. waived
all of its management fees in connection with its agreement to limit the Value +
Growth Fund's annual operating expenses. For the fiscal years ended March 31,
1994 and March 31, 1995, the management fees for the Value + Growth Fund were
$288,116 and $1,260,821, respectively, and for the year ended March 31, 1994,
reimbursement of management fees by RSIM, L.P. was approximately $191,672.
(Prior to January 1, 1996, the Value + Growth Fund paid management fees to RSIM,
L.P. at an annual rate of 1.25% of the Fund's average daily net assets.)
The Advisory Agreements for the Global Low-Price Stock Fund, the Global
Natural Resources Fund, the Growth & Income Fund, the Information Age Fund, the
Partners Fund, and the Value + Growth Fund permit Robertson Stephens Investment
Management to seek reimbursement of any reductions made to its management fee
within the two-year period following such reduction, subject to the ability of
the Fund in question to effect such reimbursement and remain in compliance with
applicable expense limitations. At March 31, 1995, RSIM, L.P. had waived
management fees in respect of the Value + Growth Fund in the amount of $172,210,
which was still subject to reimbursement by the Fund.
ADMINISTRATIVE FEES. The Global Low-Priced Stock Fund, Global Natural
Resources Fund, Growth & Income Fund, and Information Age Fund have entered
into Administrative Services Agreements with RSIM, L.P., pursuant to which RSIM,
L.P. continuously provides business management services to the Funds and
generally manages all of the business and affairs of the Funds, subject to the
general oversight of the Trustees. The Funds pay RSIM, L.P. a fee, calculated
daily and payable monthly, at the annual rate of 0.25% of their respective
average daily net assets.
B-27
<PAGE>
The proceeds received by each Fund for each issue or sale of its shares,
and all income, earnings, profits, and proceeds thereof, subject only to the
rights of creditors, will be specifically allocated to such Fund, and constitute
the underlying assets of that Fund. The underlying assets of each Fund will be
segregated on the Trust's books of account, and will be charged with the
liabilities in respect of such Fund and with a share of the general liabilities
of the Trust. Expenses with respect to any two or more Funds may be allocated
in proportion to the net asset values of the respective Funds except where
allocations of direct expenses can otherwise be fairly made.
Each of the Advisory Agreements is subject to annual approval (in the case
of the Global Low-Priced Stock Fund, the Global Natural Resources Fund, the
Growth & Income Fund, the Information Age Fund and the Partners Fund, commencing
in 1997) by (i) the vote of the Trustees vote or of a majority of the
outstanding voting securities (as defined in the 1940 Act) of the affected Fund,
and (ii) the vote of a majority of the Trustees who are not "interested persons"
(as defined in the 1940 Act) of the Trust, RSIM, L.P., or RSIM, Inc. Each is
terminable by Robertson Stephens Investment Management or the Trust, without
penalty, on 60 days written notice to the other and will terminate automatically
in the event of its assignment.
Each of the Administrative Services Agreements is subject to annual
approval (commencing in 1997) by (i) the Board of Trustees, and (ii) the vote of
a majority of the Trustees who are not "interested persons" (as defined in the
1940 Act). The Administrative Services Agreements may be terminated without
penalty, by the Trust or by the vote of a majority of the outstanding voting
securities (as defined in the 1940 Act) of the affected Fund, on 30 days notice
to RSIM, L.P.
EXPENSES
Each Fund will pay all expenses related to its operation which are not
borne by Robertson Stephens Investment Management or the distributor, including
but not limited to taxes, interest, brokerage fees and commissions, compensation
paid to RS&Co. under a Fund's 12b-1 Plan, fees paid to members of the Board of
Trustees who are not officers, directors, stockholders or employees of Robertson
Stephens Investment Management or RS&Co., SEC fees and related expenses, state
Blue Sky qualification fees, charges of custodians, transfer agents, registrars
or other agents, outside auditing, accounting, and legal services, charges for
the printing of prospectuses and statements of additional information for
regulatory purposes or for distribution to shareholders, certain shareholder
report charges, and charges relating to corporate matters.
Total operating expenses of a Fund are subject to applicable limitations
under rules and regulations of the states in which that Fund is authorized to
sell its shares; therefore, operating expenses are effectively subject to the
most restrictive of such expense limitations as the same may be amended from
time to time. The most stringent state expense limitation applicable to the
Funds currently requires that Robertson Stephens Investment Management reimburse
certain expenses of a Fund, including the management fees paid to Robertson
Stephens Investment Management under its Advisory Agreement (excluding Rule 12b-
l fees, interest, taxes, brokerage fees and commissions, and certain
extraordinary charges), in any fiscal year in which such expenses exceed, in the
case of the Contrarian Fund, 2.5% of the Fund's average daily net assets and, in
the case of each of the other Funds, 2.5% of a Fund's average daily net assets
up to $30 million, 2.0% of average daily net assets between $30 million and $100
million, and 1.5% of such net assets over $100 million. The Funds do not
include any dividend expense on short sales among a Fund's expenses for this
purpose.
PORTFOLIO TRANSACTIONS AND BROKERAGE
Transactions on U.S. stock exchanges, commodities markets, and futures
markets and other agency transactions involve the payment by a Fund of
negotiated brokerage commissions. Such commissions vary among different
brokers. A particular broker may charge different commissions according to such
factors as the difficulty and size of the transaction. Transactions in foreign
investments often involve the payment of fixed
B-28
<PAGE>
brokerage commissions, which may be higher than those in the United States.
There is generally no stated commission in the case of securities traded in the
over-the-counter markets, but the price paid by the Trust usually includes an
undisclosed dealer commission or mark-up. In underwritten offerings, the price
paid by the Trust includes a disclosed, fixed commission or discount retained by
the underwriter or dealer. It is anticipated that most purchases and sales of
securities by funds investing primarily in certain fixed-income securities will
be with the issuer or with underwriters of or dealers in those securities,
acting as principal. Accordingly, those funds would not ordinarily pay
significant brokerage commissions with respect to securities transactions.
It has for many years been a common practice in the investment advisory
business for advisers of investment companies and other institutional investors
to receive brokerage and research services (as defined in the Securities
Exchange Act of 1934, as amended (the "1934 Act")) from broker-dealers that
execute portfolio transactions for the clients of such advisers and from third
parties with which such broker-dealers have arrangements. Consistent with this
practice, Robertson Stephens Investment Management receives brokerage and
research services and other similar services from many broker-dealers with which
Robertson Stephens Investment Management places a Fund's portfolio transactions
and from third parties with which these broker-dealers have arrangements. These
services include such matters as general economic and market reviews, industry
and company reviews, evaluations of investments, recommendations as to the
purchase and sale of investments, newspapers, magazines, pricing services,
quotation services, news services and personal computers utilized by Robertson
Stephens Investment Management's managers and analysts. Where the services
referred to above are not used exclusively by Robertson Stephens Investment
Management for research purposes, Robertson Stephens Investment Management,
based upon its own allocations of expected use, bears that portion of the cost
of these services which directly relates to its non-research use. Some of these
services are of value to Robertson Stephens Investment Management and its
affiliates in advising various of its clients (including the Funds), although
not all of these services are necessarily useful and of value in managing the
Funds. The management fee paid by a Fund is not reduced because the Fund's
Adviser or its affiliates receive these services even though Robertson Stephens
Investment Management might otherwise be required to purchase some of these
services for cash.
Robertson Stephens Investment Management places all orders for the purchase
and sale of portfolio investments for the Fund and buys and sells investments
for the Fund through a substantial number of brokers and dealers. Robertson
Stephens Investment Management seeks the best overall terms available for the
Fund, except to the extent Robertson Stephens Investment Management may be
permitted to pay higher brokerage commissions as described below. In doing so,
Robertson Stephens Investment Management, having in mind the Fund's best
interests, considers all factors it deems relevant, including, by way of
illustration, price, the size of the transaction, the nature of the market for
the security or other investment, the amount of the commission, the timing of
the transaction taking into account market prices and trends, the reputation,
experience and financial stability of the broker-dealer involved and the quality
of service rendered by the broker-dealer in other transactions.
As permitted by Section 28(e) of the 1934 Act, and by the Advisory
Agreements, Robertson Stephens Investment Management may cause the Fund to pay a
broker-dealer which provides "brokerage and research services" (as defined in
the 1934 Act) to Robertson Stephens Investment Management an amount of disclosed
commission for effecting securities transactions on stock exchanges and other
transactions for the Fund on an agency basis in excess of the commission which
another broker-dealer would have charged for effecting that transaction.
Robertson Stephens Investment Management's authority to cause a Fund to pay any
such greater commissions is also subject to such policies as the Trustees may
adopt from time to time. Neither RSIM, L.P. nor RSIM, Inc. currently intends to
cause the Funds to make such payments. It is the position of the staff of the
Securities and Exchange Commission that Section 28(e) does not apply to the
payment of such greater commissions in "principal" transactions. Accordingly,
RSIM, L.P. and RSIM, Inc. will use their best efforts to obtain the best overall
terms available with respect to such transactions.
The following tables provide information regarding brokerage commissions
paid by the Funds for the periods indicated.
B-29
<PAGE>
<TABLE>
<CAPTION>
CONTRARIAN FUND FY ENDED 3/31/95 PERIOD 6/3/93 - 3/31/94
- --------------- ---------------- -----------------------
<S> <C> <C>
Percentage of total transactions 69% 83%
involving brokerage commissions
Dollar amount of commissions $1,959,452 $1,140,692
Percentage (dollar amount) paid to 14.8% ($289,074) 18% ($210,807)
RS&Co.
Percentage of brokerage transactions 14% 26%
effected through RS&Co.
Percentage of transactions effected 31% 17%
without brokerage
commissions
</TABLE>
<TABLE>
<CAPTION>
DEVELOPING COUNTRIES FUND PERIOD 5/2/94 - 3/31/95
- ------------------------- -----------------------
<S> <C>
Percentage of total transactions 76%
involving brokerage commissions
Dollar amount of commissions $170,919
Percentage (dollar amount) paid to .73% ($1,250)
RS&Co.
Percentage of brokerage transactions 2%
effected through RS&Co.
Percentage of transactions effected 24%
without brokerage commissions
</TABLE>
<TABLE>
<CAPTION>
EMERGING GROWTH FUND FY ENDED 3/31/95 FY ENDED 3/31/94 PERIOD 1/1/94 - 3/31/94
- -------------------- ---------------- ---------------- -----------------------
<S> <C> <C> <C>
Percentage of total transactions 21% 37% 10%
involving brokerage commissions
Dollar amount of commissions $559,915 $1,007,880 $105,582
Percentage (dollar amount) paid to 29.2% ($163,607) 21% ($216,575) 8% ($8,442)
RS&Co.
Percentage of brokerage transactions 24% 16% 5%
effected through RS&Co.
Percentage of transactions effected
without brokerage commissions 79% 63% 92%
</TABLE>
B-30
<PAGE>
<TABLE>
<CAPTION>
VALUE + GROWTH FUND FY ENDED 3/31/95 FY ENDED 3/31/94 PERIOD 4/21/92-3/31/93
- ------------------- ---------------- ---------------- ----------------------
<S> <C> <C> <C>
Percentage of total transactions 49% 69% 50%
involving brokerage commissions
Dollar amount of commissions $665,354 $295,284 $105,025
Percentage (dollar amount) paid to 12.4% ($82,270) 35% ($102,015) 40% ($41,493)
RS&Co.
Percentage of brokerage transactions 13% 39% 38%
effected through RS&Co.
Percentage of transactions effected 51% 31% 50%
without brokerage commissions
</TABLE>
B-31
<PAGE>
THE FUNDS' DISTRIBUTOR
Each of the Funds has adopted a Distribution Plan under Rule 12b-l of the
1940 Act (each a "Plan"). Pursuant to the Plans, each Fund may pay RS&Co. (also
referred to as the "Distributor") distribution fees at an annual rate of 0.25%
of their respective average daily net assets, except the Contrarian Fund, which
may pay a distribution fee at annual rate of 0.75%, for services the Distributor
renders and costs and expenses it incurs in connection with the continuous
offering of these Funds' shares. These expenses may include, but are not
limited to, the costs of preparing and mailing all required reports and notices
to shareholders, prospectuses and proxy materials; all fees and expenses
relating to the qualification of these Funds and/or their shares under the
securities laws of any jurisdiction, and under the Securities Act of 1933 and
the 1940 Act; all costs related to the mailing of confirmations of shares sold
or redeemed, reports of share balances, and responding to telephone or mail
inquiries of investors or prospective investors; and payments to dealers,
financial institutions, advisers, or other firms. The Plans also permit the
Distributor to receive compensation based on a prorated portion of its overhead
expenses attributable to the distribution of these Funds' shares, which include
leases, communications, salaries, training, supplies, photocopying, and any
other category of the Distributor's expenses attributable to the distribution of
these Funds' shares.
For the three-month period ended March 31, 1993, and the twelve-month
periods ended March 31, 1994 and March 31, 1995, the Emerging Growth Fund
incurred distribution fees of $162,016, $451,071 and $434,190, respectively.
For the period June 3, 1993 through March 31, 1994 and the twelve-month period
ended March 31, 1995, the Contrarian Fund incurred distribution fees of $738,247
and $4,026,498, respectively. For the period from May 2, 1994 through March 31,
1995, the Developing Countries Fund incurred distribution fees of $69,633. The
Value + Growth Fund's Plan became effective on January 1, 1996.
HOW NET ASSET VALUE IS DETERMINED
A Fund determines net asset value per share once daily, as of 4:30 p.m. New
York time on each day the New York Stock Exchange (the "Exchange") is open. The
Exchange is closed Saturdays, Sundays, New Year's Day, Presidents' Day, Good
Friday, Memorial Day, the Fourth of July, Labor Day, Thanksgiving and Christmas.
Securities for which market quotations are readily available are valued at
prices which, in the opinion of the Trustees or a Fund's Adviser, most nearly
represent the market values of such securities. Currently, such prices are
determined using the last reported sale price or, if no sales are reported (as
in the case of some securities traded over-the-counter), the last reported bid
price, except that certain U.S. Government securities are stated at the mean
between the last reported bid and asked prices. Short-term investments having
remaining maturities of 60 days or less are stated at amortized cost, which
approximates market value. All other securities and assets are valued at their
fair value following procedures approved by the Trustees. Liabilities are
deducted from the total, and the resulting amount is divided by the number of
shares of the class outstanding.
Reliable market quotations are not considered to be readily available for
long-term corporate bonds and notes, certain preferred stocks, tax-exempt
securities, or certain foreign securities. These investments are stated at fair
value on the basis of valuations furnished by pricing services approved by the
Trustees, which determine valuations for normal, institutional-size trading
units of such securities using methods based on market transactions for
comparable securities and various relationships between securities which are
generally recognized by institutional traders.
If any securities held by a Fund are restricted as to resale, the Fund's
Adviser determines their fair values. The fair value of such securities is
generally determined as the amount which a Fund could reasonably expect to
realize from an orderly disposition of such securities over a reasonable period
of time. The valuation procedures applied in any specific instance are likely
to vary from case to case. However, consideration is generally given to the
financial position of the issuer and other fundamental analytical data relating
to the investment and to the
B-32
<PAGE>
nature of the restrictions on disposition of the securities (including any
registration expenses that might be borne by the Fund in connection with such
disposition). In addition, specific factors are also generally considered, such
as the cost of the investment, the market value of any unrestricted securities
of the same class (both at the time of purchase and at the time of valuation),
the size of the holding, the prices of any recent transactions or offers with
respect to such securities and any available analysts' reports regarding the
issuer.
Generally, trading in certain securities (such as foreign securities) is
substantially completed each day at various times prior to the close of the
Exchange. The values of these securities used in determining the net asset
value of a Fund's shares are computed as of such times. Also, because of the
amount of time required to collect and process trading information as to large
numbers of securities issues, the values of certain securities (such as
convertible bonds, U.S. Government securities, and tax-exempt securities) are
determined based on market quotations collected earlier in the day at the latest
practicable time prior to the close of the Exchange. Occasionally, events
affecting the value of such securities may occur between such times and the
close of the Exchange which will not be reflected in the computation of a Fund's
net asset value. If events materially affecting the value of such securities
occur during such period, then these securities will be valued at their fair
value following procedures approved by the Trustees.
TAXES
Each Fund intends to qualify each year and elect to be taxed as a regulated
investment company under Subchapter M of the United States Internal Revenue Code
of 1986, as amended (the "Code").
As a regulated investment company qualifying to have its tax liability
determined under Subchapter M, a Fund would not be subject to federal income tax
on any of its net investment income or net realized capital gains that are
distributed to shareholders. As long as each Fund maintains its status as a
regulated investment company and distributes all of its income, it will not,
under present law, be subject to any excise or income taxes in Massachusetts or
to franchise or income taxes in California.
In order to qualify as a "regulated investment company," a Fund must, among
other things, (a) derive at least 90% of its gross income from dividends,
interest, payments with respect to securities loans, gains from the sale or
other dispositions of stock, securities, or foreign currencies, and other income
(including gains from options, futures, or forward contracts) derived with
respect to its business of investing in such stock, securities, or currencies;
(b) derive less than 30% of its gross income from the sale or other disposition
of certain assets (including stock and securities) held less than three months;
(c) diversify its holdings so that, at the close of each quarter of its taxable
year, (i) at least 50% of the value of its total assets consists of cash, cash
items, U.S. Government securities, and other securities limited generally with
respect to any one issuer to not more than 5% of the total assets of the Fund
and not more than 10% of the outstanding voting securities of such issuer, and
(ii) not more than 25% of the value of its assets is invested in the securities
of any issuer (other than U.S. Government securities). In order to receive the
favorable tax treatment accorded regulated investment companies and their
shareholders, moreover, a Fund must in general distribute at least 90% of its
interest, dividends, net short-term capital gain, and certain other income each
year.
An excise tax at the rate of 4% will be imposed on the excess, if any, of
each Fund's "required distribution" over its actual distributions in any
calendar year. Generally, the "required distribution" is 98% of the Fund's
ordinary income for the calendar year plus 98% of its capital gain net income
recognized during the one-year period ending on October 31 (or December 31, if
the Fund so elects) plus undistributed amounts from prior years. Each Fund
intends to make distributions sufficient to avoid imposition of the excise tax.
Distributions declared by a Fund during October, November or December to
shareholders of record on a date in any such month and paid by the Fund during
the following January will be treated for federal tax purposes as paid by the
Fund and received by shareholders on December 31 of the year in which declared.
B-33
<PAGE>
With respect to investment income and gains received by a Fund from sources
outside the United States, such income and gains may be subject to foreign taxes
which are withheld at the source. The effective rate of foreign taxes in which
a Fund will be subject depends on the specific countries in which its assets
will be invested and the extent of the assets invested in each such country and
therefore cannot be determined in advance.
A Fund's ability to use options, futures, and forward contracts and other
hedging techniques, and to engage in certain other transactions, may be limited
by tax considerations, in particular, the requirement that less than 30% of the
Fund's gross income be derived from the sale or disposition of assets held for
less than three months. A Fund's transactions in foreign currency-denominated
debt instruments and its hedging activities will likely produce a difference
between its book income and its taxable income. This difference may cause a
portion of the Fund's distributions of book income to constitute returns of
capital for tax purposes or require the Fund to make distributions exceeding
book income in order to permit the Fund to continue to qualify, and be taxed
under Subchapter M of the Code, as a regulated investment company.
Under federal income tax law, a portion of the difference between the
purchase price of zero-coupon securities in which a Fund has invested and their
face value ("original issue discount") is considered to be income to the Fund
each year, even though the Fund will not receive cash interest payments from
these securities. This original issue discount (imputed income) will comprise a
part of the net investment income of the Fund which must be distributed to
shareholders in order to maintain the qualification of the Fund as a regulated
investment company and to avoid federal income tax at the level of the Fund.
Each Fund is required to withhold 31% of all income dividends and capital
gain distributions, and 31% of the gross proceeds of all redemptions of Fund
shares, in the case of any shareholder who does not provide a correct taxpayer
identification number, about whom a Fund is notified that the shareholder has
under reported income in the past, or who fails to certify to a Fund that the
shareholder is not subject to such withholding. Tax-exempt shareholders are not
subject to these back-up withholding rules so long as they furnish the Fund with
a proper certification.
The foregoing is a general and abbreviated summary of the applicable
provisions of the Code and related regulations currently in effect. For the
complete provisions, reference should be made to the pertinent Code sections and
regulations. The Code and regulations are subject to change by legislative or
administrative actions. Dividends and distributions also may be subject to
state and federal taxes. Shareholders are urged to consult their tax advisers
regarding specific questions as to federal, state or local taxes. The foregoing
discussion relates solely to U.S. federal income tax law. Non-U.S. investors
should consult their tax advisers concerning the tax consequences of ownership
of shares of the Fund, including the possibility that distributions may be
subject to a 30% United States withholding tax (or a reduced rate of withholding
provided by treaty). Statements as to the tax status of distributions will be
mailed annually.
HOW PERFORMANCE IS DETERMINED
STANDARDIZED PERFORMANCE INFORMATION
Average annual total return for one-, five-, and ten-year periods (or for
such shorter periods as a Fund has been in operation) is determined by
calculating the actual dollar amount of investment return on a $1,000 investment
in the Fund at the beginning of the period, and then calculating the annual
compounded rate of return which would produce that amount. Total return for a
period of one year is equal to the actual return of the Fund during that period.
Total return calculations assume reinvestment of all Fund distributions at net
asset value on their respective reinvestment dates.
The Funds impose no sales load on initial purchases or on reinvested
dividends. Accordingly, no sales charges are deducted for purposes of this
calculation.
B-34
<PAGE>
The calculation of total return assumes that all dividends, if any, and
distributions paid by a Fund would be reinvested at the net asset value on the
day of payment.
At times, a Fund's Adviser may reduce its compensation or assume expenses
of the Fund in order to reduce the Fund's expenses. The per share amount of any
such fee reduction or assumption of expenses during a Fund's past ten fiscal
years (or for the life of the Fund, if shorter) is reflected in the Prospectus.
Any such fee reduction or assumption of expenses would increase the Fund's total
return during the period of the fee reduction or assumption of expenses.
Total return may be presented for other periods or without giving effect to
any contingent deferred sales charge. Any quotation of total return or yield
not reflecting the contingent deferred sales charge would be reduced if the
sales charges were reflected.
All data are based on past performance and do not predict future results.
PERFORMANCE INFORMATION
The total returns of each of the Funds for the periods indicated through
September 30, 1995 are set forth below. No information is presented as to the
Global Low-Priced Stock Fund, the Global Natural Resources Fund, or the
Information Age Fund because none of those Funds had commenced operations as of
September 30, 1995. Total returns for periods when an expense limitation was in
effect are higher than they would be if no expense limitation had been in
effect. Total return for periods of one year or less reflect the actual return
of a Fund during the period; total return for periods longer than one year
reflect the average annual total return of a Fund during the period.
CONTRARIAN FUND
Year ended September 30, 1995 20.22%
From inception (6/30/93) through September 30, 1995 13.57%
DEVELOPING COUNTRIES FUND
Year ended September 30, 1995 (7.78)%
From inception (5/2/94) through September 30, 1995 (5.63)%
EMERGING GROWTH FUND
Year ended September 30, 1995 19.91%
Three years ended September 30, 1995 19.29%
Five years ended September 30, 1995 20.57%
From inception (11/30/87) through September 30, 1995 22.53%
GROWTH & INCOME FUND
From inception (7/12/95) September 30, 1995 7.60%
PARTNERS FUND
From inception (7/12/95) September 30, 1995 1.90%
B-35
<PAGE>
VALUE + GROWTH
Year ended September 30, 1995 76.97%
Three years ended September 30, 1995 39.70%
From inception (5/12/92) through September 30, 1995 34.87%
NON-STANDARDIZED TOTAL RETURN INFORMATION
From time to time, a Fund may present non-standardized total return
information, in addition to standardized performance information, which may
include such results as the growth of a hypothetical $10,000 investment in a
Fund, and cumulative total return. The results of a $10,000 investment in a
Fund and cumulative total return measure the absolute change in net asset value
resulting from all Fund operations including reinvestment of a distribution paid
by a Fund for the period specified.
The aggregate total return is calculated in a similar manner to average
annual total return, except that the results are not annualized. Each
calculation assumes that all dividends and distributions are reinvested at net
asset value on the reinvestment dates during the period.
INDICES AND PUBLICATIONS
A Fund may compare its performance with that of appropriate indices such as
the Standard & Poor's Composite Index of 500 stocks ("S&P 500"), Standard &
Poor's MidCap 400 Index ("S&P 400"), the NASDAQ Industrial Index, and the NASDAQ
Composite Index, Russell 2000 Index or other unmanaged indices so that investors
may compare the Fund's results with those of a group of unmanaged securities.
The S&P 500, the S&P 400, the NASDAQ Industrial Index, the NASDAQ Composite
Index and the Russell 2000 Index are unmanaged groups of common stocks traded
principally on national securities exchanges and the over the counter market,
respectively. A Fund also may, from time to time, compare its performance to
other mutual funds with similar investment objectives and to the industry as a
whole, as quoted by rating services and publications, such as Lipper Analytical
Services, Inc., Morningstar Mutual Funds, Forbes, Money and Business Week.
In addition, one or more portfolio managers or other employees of Robertson
Stephens Investment Management may be interviewed by print media, such as THE
WALL STREET JOURNAL or BUSINESS WEEK, or electronic news media, and such
interviews may be reprinted or excerpted for the purpose of advertising
regarding the Fund.
RELATIVE VOLATILITY - BETA
From time to time a Fund may present a statistical measure of the
volatility of a Fund's performance relative to the volatility of the performance
of the S&P 500. A Fund calls this comparative measure its "beta." Beta is
approximate, because it is statistical, and is not necessarily indicative of
future fund performance volatility. Thus, if a Fund's portfolio volatility
perfectly represents that of the S&P 500, a Fund's beta would be 1.0. If a
Fund's beta is greater than 1.0, a Fund's portfolio would tend to represent a
greater market risk than the S&P 500 because a Fund's portfolio would tend to be
more sensitive to movements in the securities markets. For example, if a Fund's
beta is 1.1, a Fund's performance would tend to vary approximately 10% more than
would the performance of the S&P 500. If a Fund's beta is 0.9, a Fund's
performance would tend to vary 10% less than the performance of the S&P 500.
The correlation is not usually exact because, depending upon the diversification
of a Fund's portfolio, a beta of less than 1.0 may indicate only that the
portfolio is less sensitive to market movements, not that the Fund's portfolio
has low overall risk.
B-36
<PAGE>
The beta included with any presentation of the Fund's performance data will
be calculated according to the following formula:
n _ _
SUM (R(FT)R(MT) - nR(F)(R(M)))
Beta = -----------------------------
n _
SUM (R(2)(MT) - nR(2)(M))
Where: n = number of months measured
R(FT) = rate of return on the Fund in month T
R(MT) = rate of return on the market index, I.E., the S&P 500,
in month T
_
R(F) = arithmetic average monthly rate of return of the Fund
_
R(M) = arithmetic average monthly rate of return on the market
index, I.E., the S&P 500
The Value + Growth Fund's beta from the date upon which its prospectus
became effective (May 12, 1992) through December 31, 1993 was 0.63. The Value +
Growth Fund's beta for the twelve-month periods ended December 31, 1993 and
March 31, 1994 were 0.63 and 0.68, respectively, and for the period from April
1, 1994 through March 31, 1995 was 1.34.
ADDITIONAL INFORMATION
GENERAL
Robertson Stephens Investment Trust (the "Trust") is a diversified, open-
end series investment company, which was organized on May 11, 1987 as a
Massachusetts business trust.
TRANSFER AGENT AND CUSTODIAN
State Street Bank and Trust Company, c/o National Financial Data Services,
at P.O. Box 419717, Kansas City, MO 64141, serves as the Funds' Transfer Agent.
State Street Bank and Trust Company, 225 Franklin Street, Boston, Massachusetts
02110, serves as the Funds' Custodian. As Transfer Agent, State Street Bank and
Trust Company maintains records of shareholder accounts, processes purchases and
redemptions of shares, acts as dividend and distribution disbursing agent and
performs other related shareholder functions. As Custodian, it and
subcustodians designated by the Board of Trustees hold the securities in the
Funds' portfolio and other assets for safekeeping. The Transfer Agent and
Custodian do not and will not participate in making investment decisions for the
Funds.
AUDITORS
Price Waterhouse LLP, 555 California Street, San Francisco, California
94104, are the Trust's independent accountants, providing audit services, tax
return review and other tax consulting services and assistance and consultation
in connection with the review of various Securities and Exchange Commission
filings. The Financial Highlights included in the Prospectus of Robertson
Stephens Investment Trust and the Fund's prospectuses and the financial
statements incorporated by reference into the Trust's prospectuses and included
in this Statement have been so included and incorporated in reliance upon the
report of Price Waterhouse LLP, the independent accountants, given on the
authority of said firm as experts in auditing and accounting.
B-37
<PAGE>
SHAREHOLDER LIABILITY
Under Massachusetts law, shareholders could, under certain circumstances,
be held personally liable for the obligations of the Trust. However, the
Agreement and Declaration of Trust disclaims shareholder liability for acts or
obligations of the Trust and requires that notice of such disclaimer be given in
each agreement, obligation, or instrument entered into or executed by the Trust
or the Trustees. The Agreement and Declaration of Trust provides for
indemnification out of a Fund's property for all loss and expense of any
shareholder held personally liable for the obligations of that Fund. Thus the
risk of a shareholder's incurring financial loss on account of shareholder
liability is limited to circumstances in which the Fund would be unable to meet
its obligations.
OTHER INFORMATION
The Prospectus and this Statement, together, do not contain all of the
information set forth in the Registration Statement of Robertson Stephens
Investment Trust, as amended, filed with the Securities and Exchange Commission.
Certain information is omitted in accordance with rules and regulations of the
Commission. The Registration Statement may be inspected at the Public Reference
Room of the Commission at Room 1024, 450 Fifth Street, N.W., Judiciary Plaza,
Washington, D.C. 20549, and copies thereof may be obtained from the Commission
at prescribed rates.
B-38
<PAGE>
APPENDIX A
DESCRIPTION OF SECURITIES RATINGS
This Appendix describes ratings applied to corporate bonds by Standard & Poor's
Corporation ("S&P"), Moody's Investors Service, Inc. ("Moody"s') and Fitch
Investor Services, Inc. ("Fitch").
S&P'S RATINGS
AAA: Bonds rated AAA have the highest rating assigned by Standard & Poor's to a
debt obligation. Capacity to pay interest and repay principal is extremely
strong.
AA: Bonds rated AA have a very strong capacity to pay interest and repay
principal and differ from the highest rated issues only in small degree.
A: Bonds rated A have a strong capacity to pay interest and repay principal,
although they are somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than bonds in higher rated categories.
BBB: Bonds rated BBB are regarded as having an adequate capacity to pay interest
and repay principal. Whereas they normally exhibit adequate protection
parameters, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity to pay interest and repay principal for
bonds in this category than in higher rated categories.
BB: Bonds rated BB have less near-term vulnerability to default than other
speculative issues. However, they face major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions which could lead to
inadequate capacity to meet timely interest and principal payments.
B: Bonds rated B have a greater vulnerability to default but currently have the
capacity to meet interest payments and principal repayments. Adverse business,
financial, or economic conditions will likely impair capacity or willingness to
pay interest and repay principal.
The B rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BB-rating.
CCC: Bonds rated CCC have a currently identifiable vulnerability to default, and
are dependent upon favorable business, financial, and economic conditions to
meet timely payment of interest and repayment of principal. In the event of
adverse business, financial, or economic conditions, they are not likely to
have the capacity to pay interest and repay principal.
CC: Bonds rated CC are typically applied to debt subordinated to senior debt
which is assigned an actual or implied CCC bond rating.
C: The rating C is typically applied to debt subordinated to senior debt which
is assigned an actual or implied CCC- bond rating.
The C rating may be used to cover a situation where a bankruptcy petition has
been filed but debt service payments are continued.
CI: The rating CI is reserved for income bonds on which no interest is being
paid.
B-39
<PAGE>
D: Bonds rated D are in payment default. The D rating category is used when
interest payments or principal payments are not made on the date due even if
the applicable grace period has not expired, unless S&P believes that such
payments will be made during such grace period. The D rating will also be used
upon the filing of a bankruptcy petition if debt service payments are
jeopardized.
The ratings from AA to CCC may be modified by the addition of a plus or minus to
show relative standing within the major rating categories.
MOODY'S RATINGS
Aaa: Bonds rated Aaa are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as "gilt
edge." Interest payments are protected by a large or by an exceptionally stable
margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of these issues.
Aa: Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group they comprise what are generally known as high grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the
long-term risks appear somewhat larger than in Aaa securities.
A: Bonds rated A possess many favorable investment attributes and are to be
considered as upper medium-grade obligations. Factors giving security to
principal and interest are considered adequate but elements may be present
which suggest a susceptibility to impairment sometime in the future.
Baa: Bonds rated Baa are considered as medium-grade obligations, i.e., they are
neither highly protected nor poorly secured. Interest payments and principal
security appear adequate for the present but certain protective elements may be
lacking or may be characteristically unreliable over any great length of time.
Such bonds lack outstanding investment characteristics and in fact have
speculative characteristics as well.
Ba: Bonds rated Ba are judged to have speculative elements. Their future cannot
be considered as well assured. Often the protection of interest and principal
payments may be very moderate and thereby not well safeguarded during both good
and bad times over the future. Uncertainty of position characterizes bonds in
this class.
B: Bonds rated B generally lack characteristics of the desirable investment.
Assurance of interest and principal payments or maintenance of other terms of
the contract over any long period of time may be small.
Caa: Bonds rated Caa are of poor standing. Such issues may be in default or
there may be present elements of danger with respect to principal or interest.
Ca: Bonds rated Ca represent obligations which are speculative in a high degree.
Such issues are often in default or have other marked short-comings.
C: Bonds rated C are the lowest rated class of bonds and issues so rated can be
regarded as having extremely poor prospects of ever attaining any real
investment standing.
Moody's applies numerical modifiers, 1, 2, and 3, in each generic rating
classification from Aa through B in its corporate bond rating system. The
modifier 1 indicates that the security ranks in the higher end of its generic
rating category; the modifier 2 indicates a mid-range ranking; and the modifier
3 indicates that the issue ranks in the lower end of its generic rating
category.
B-40
<PAGE>
FITCH RATINGS
AAA: Bonds and notes rated AAA are regarded as being of the highest quality,
with the obligor having an extraordinary ability to pay interest and repay
principal which is unlikely to be affected by reasonably foreseeable events.
AA: Bonds and notes rated AA are regarded as high quality obligations. The
obligor's ability to pay interest and repay principal, while very strong, is
somewhat less than for AAA rated securities, and more subject to possible
change over the term of the issue.
A: Bonds and notes rated A are regarded as being of good quality. The obligor's
ability to pay interest and repay principal is strong, but may be more
vulnerable to adverse changes in economic conditions and circumstances than
bonds and notes with higher ratings.
BBB: Bonds and notes rated BBB are regarded as being of satisfactory quality.
The obligor's ability to pay interest and repay principal is considered to be
adequate. Adverse changes in economic conditions and circumstances, however,
are more likely to weaken this ability than bonds and notes with higher
ratings.
BB: Bonds and notes rated BB are considered speculative. The obligor's ability
to pay interest and repay principal may be affected over time by adverse
economic changes. However, business and financial alternatives can be
identified which could assist the obligor in satisfying its debt service
requirements.
B: Bonds and notes rated B are considered highly speculative. While bonds and
notes in this class are currently meeting debt service requirements, the
probability of continued timely payment of principal and interest reflects the
obligor's limited margin of safety and the need for reasonable business and
economic activity throughout the life of the issue.
CCC: Bonds and notes rated CCC have certain identifiable characteristics which,
if not remedied, may lead to default. The ability to meet obligations requires
an advantageous business and economic environment.
CC: Bonds and notes rated CC are minimally protected. Default in payment of
interest and/or principal seems probable over time.
C: Bonds and notes rated C are in imminent default in payment of interest or
principal.
DDD, DD, and D: Bonds and notes rated DDD, DD and D are in default on interest
and/or principal payments. Such bonds and notes are extremely speculative and
should be valued on the basis of their ultimate recovery value in liquidation
or reorganization of the obligor. "DDD" represents the highest potential for
recovery on these bonds and notes, and "D" represents the lowest potential for
recovery.
Note: Fitch ratings (other than the AAA, DDD, DD or D categories) may be
modified by the addition of a plus (+) or minus (-) sign to show relative
standing within the major rating categories. These are refinements more
closely reflecting strengths and weaknesses, and are not to be used as trend
indicators.
B-41
<PAGE>
FINANCIAL STATEMENTS
Attached are financial statements of Robertson Stephens Investment Trust
for the specified periods.
B-42
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
SCHEDULE OF NET ASSETS
MARCH 31, 1995
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ALUMINUM - 3.5%
MAXXAM, Inc. 486,500 $ 14,047,687
------------
14,047,687
CONSTRUCTION/INFRASTRUCTURE - 1.9%
American Buildings Company 430,000 7,390,625
------------
7,390,625
COPPER MINING - 3.3%
Adrian Resources Ltd. 1,764,003 4,791,087
Chase Resources Corporation 212,900 448,899
Freeport McMoRan Copper and Gold, Inc.(1) 364,900 7,982,187
------------
13,222,173
ENERGY - 8.7%
Anadarko Petroleum(1) 100,000 4,375,000
Anzoil N.L. 39,742,000 2,330,391
Conwest Exploration Co., Ltd. 350,000 6,128,940
Louisiana Land & Exploration(1) 168,500 6,297,688
McMoRan Oil & Gas Company 1,375,420 3,610,477
Nescor Energy - Restricted(2) 375,000 843,750
Oryx Energy Company 486,200 6,138,275
Tide West Oil Company 505,000 4,986,875
------------
34,711,396
FINANCIAL SERVICES - 3.7%
Dundee Bancorp, Inc., Class A 2,044,200 14,793,456
------------
14,793,456
GAMING/ENTERTAINMENT - 0.8%
Hollywood Park, Inc.(1) 260,000 3,315,000
------------
3,315,000
GOLD MINING - 21.0%
Ashanti Goldfields - GDS(4) 600,000 14,610,000
Cambior, Inc.(1) 1,212,900 13,978,995
Carson Gold Corporation 978,500 1,223,912
Carson Gold Corporation - Warrants(3) 125,000 0
Carson Gold Corporation - Warrants(3) 1,150,000 0
<CAPTION>
SHARES VALUE
<S> <C> <C>
GOLD MINING (CONTINUED)
Central Fund of Canada, Class A(1) 487,300 2,375,587
Delta Gold Mining Corporation 1,142,600 $ 1,020,834
El Callao Mining Corporation 450,000 305,553
Golden Shamrock Mines, Ltd. 6,477,000 4,225,264
Golden Star Resources, Ltd.(1) 1,677,500 13,338,709
Golden Star Resources, Ltd. - Warrants(3) 150,000 0
Guyanor Resources, S.A. 335,500 647,452
Indochina Goldfields - Restricted(2) 1,100,000 3,300,000
MK Gold Company 520,000 2,145,000
Newmont Mining Corporation(1) 325,000 13,893,767
Queenstake Resources, Ltd. 2,039,300 1,661,640
Queenstake Resources, Ltd. - Warrants(3) 500,000 0
Rayrock Yellowknife Resources, Inc. 575,000 5,805,071
Tombstone Explorations Co., Ltd. 244,500 126,697
Vengold, Inc. 2,184,400 4,996,125
------------
83,654,606
INTERNATIONAL CONGLOMERATE - 2.1%
Lonrho PLC(1) 3,390,000 8,293,744
------------
8,293,744
NICKEL MINING - 12%
Diamond Fields Resources, Inc. 2,874,400 47,509,469
------------
47,509,469
REAL ESTATE - 5.4%
Atlantic Gulf Communities 532,000 4,788,000
Avatar Holdings 307,600 11,227,400
Catellus Development 889,100 5,112,325
FM Properties 174,500 458,063
------------
21,585,788
SPECIALTY CHEMICALS - 1.8%
Intertape Polymer Group(1) 200,000 4,100,000
NL Industries, Inc. 240,000 3,120,000
------------
7,220,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE ROBERTSON STEPHENS CONTRARIAN FUND
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
TRANSPORTATION SERVICES - 1.8%
Harper Group(1) 400,000 $ 7,000,000
------------
7,000,000
TOTAL COMMON STOCKS - 66.0%
(Cost: $260,200,767) 262,743,944
PREFERRED STOCK
Kaiser Aluminum, 8.255% PRIDES,
12/31/97 Series 175,000 1,837,500
United Services Advisors, Pfd. 279,860 944,528
Catellus Development, 3.625%, Conv. Pfd.,
12/31/99, Series B 30,000 1,110,000
------------
TOTAL PREFERRED STOCKS - 1.0%
(Cost: $4,707,579) 3,892,028
</TABLE>
<TABLE>
<CAPTION>
CONTRACTS
<S> <C> <C>
PUT OPTIONS
S&P 500 Index Put Options
Jun. 1995 440 2,100 315,000
Jun. 1995 450 1,642 246,300
Jun. 1995 460 1,142 285,500
Jun. 1995 470 785 235,500
Jun. 1995 475 1,617 565,950
Jun. 1995 500 801 700,875
Sep. 1995 440 1,050 242,812
Sep. 1995 450 821 307,875
Sep. 1995 460 643 309,444
Sep. 1995 470 500 293,750
Sep. 1995 475 1,050 721,875
Dec. 1995 450 615 353,625
Dec. 1995 460 500 350,000
Dec. 1995 475 902 834,350
Dec. 1995 500 1,301 2,016,550
Cult 3 Technology Put Basket
Jun. 1995 100 20 33,256
Cult 5 Technology Put Basket
Jan. 1996 100 10 617,187
------------
TOTAL PUT OPTIONS - 2.1%
(Cost: $23,881,784) 8,429,849
TOTAL INVESTMENTS - 69.1%
(Cost: $288,790,130) 275,065,821
CASH AND CASH EQUIVALENTS
Cash $ 725
Repurchase Agreement
State Street Bank and Trust Company, 5.5%,
dated 3/31/95, due 4/03/95, maturity value
$4,291,966 (collateralized by $4,486,000
par value U.S. Treasury Notes,4.375%, due
8/15/96) 4,290,000
------------
TOTAL CASH AND CASH EQUIVALENTS - 1.1% 4,290,725
DEPOSITS WITH BROKERS & CUSTODIAN BANK FOR
SECURITIES SOLD SHORT
U.S. Treasury Bills, 5.41%, due
4/6/95 80,449,506
Repurchase Agreement (Segregated)
State Street Bank and Trust Company, 5.5%,
dated 3/31/95, due 4/03/95, maturity value
$29,223,387 (collateralized by $30,564,000
par value U.S. Treasury Notes, 4.375%, due
8/15/96) 29,210,000
------------
TOTAL DEPOSITS WITH BROKERS & CUSTODIAN
BANK FOR SECURITIES SOLD SHORT - 27.6% 109,659,506
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD
SHORT - 25% 99,432,159
SECURITIES SOLD SHORT - (23.0)%
(Proceeds: $101,849,669) (91,587,800)
OTHER ASSETS, NET(6) - 0.2% 785,614
------------
TOTAL NET ASSETS - 100% $397,646,025
------------
------------
</TABLE>
(1) Income-producing security.
(2) See 4f in Notes to Financial Statements.
(3) See 4g in Notes to Financial Statements.
(4) GDS - Global Depository Shares.
(5) ADR - American Depository Receipt.
(6) See 4e in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
SCHEDULE OF SECURITIES SOLD SHORT
MARCH 31, 1995
COMMON STOCK
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BEVERAGE - (0.2)%
Cott Corporation 108,000 $ 918,000
-----------
918,000
CASINO/ENTERTAINMENT - (1.0)%
Autotote Corporation, Class A 164,500 904,750
Grand Casinos, Inc. 140,900 3,223,087
-----------
4,127,837
CONSUMER & SPECIALTY RETAIL - (4.6)%
Bed Bath & Beyond, Inc. 115,000 2,846,250
Bell Sports Corporation 75,000 1,050,000
Best Buy Company, Inc. 100,000 2,162,500
Callaway Golf Company 262,000 3,668,000
First Alert, Inc. 96,000 996,000
Franklin Quest Company 15,500 488,250
Hollywood Entertainment Corporation 80,000 2,800,000
MicroWarehouse, Inc. 118,000 3,658,000
Sports & Recreation, Inc. 27,000 310,500
-----------
17,979,500
CONSUMER TECHNOLOGY - (3.0)%
Acclaim Entertainment, Inc. 207,000 3,596,625
Danka Business Systems - ADR(5) 86,000 2,257,500
Electronic Arts, Inc. 180,000 4,072,500
Sensormatic Electronics Corporation 74,000 2,072,000
-----------
11,998,625
FINANCE/INTEREST SENSITIVE - (1.8)%
Equitable Companies, Inc. 180,000 3,960,000
First USA, Inc. 76,000 3,192,000
-----------
7,152,000
HEALTH CARE/MEDICAL TECHNOLOGY - (3.0)%
Heart Technology, Inc. 220,500 4,134,375
Oxford Health Plans, Inc. 60,000 3,360,000
Pyxis Corporation 116,000 2,407,000
U.S. Surgical Corporation 90,000 2,047,500
-----------
11,948,875
<CAPTION>
SHARES VALUE
<S> <C> <C>
SECURITIES DEALERS/MUTUAL FUNDS - (2.3)%
Charles Schwab Corporation 178,500 $ 5,689,687
Franklin Resources, Inc. 90,000 3,498,750
-----------
9,188,437
MEDICAL SUPPLIES - (0.9)%
Biomet, Inc. 44,000 742,500
MediSense, Inc. 87,400 1,726,150
Safeskin Corporation 74,000 915,750
-----------
3,384,400
RESTAURANTS - (2.9)%
Au Bon Pain Co., Class A 120,000 1,635,000
IHOP Corporation 100,000 2,943,750
Outback Steakhouse 95,000 2,410,625
Papa John's International, Inc. 41,000 1,470,875
Starbucks Corporation 132,000 3,168,000
-----------
11,628,250
TECHNOLOGY/NETWORK SYSTEMS - (1.7)%
American Power Conversion Corporation 200,000 3,275,000
U.S. Robotics, Inc. 55,500 3,468,750
-----------
6,743,750
TELECOMMUNICATIONS - (1.6)%
Cidco, Inc. 118,400 3,566,800
Colonial Data Technologies Corporation 120,200 1,697,826
Nextel Communications, Inc.-Class A 92,000 1,253,500
-----------
6,518,126
TOTAL SECURITIES SOLD SHORT - (23.0)%
(Proceeds: $101,849,669) $91,587,800
-----------
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE ROBERTSON STEPHENS CONTRARIAN FUND
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost: $288,790,130) $275,065,821
Cash and cash equivalents 4,290,725
Deposits with brokers and custodian bank for
securities sold short 109,659,506
Receivable from brokers for
securities sold short 99,432,159
Proceeds receivable from investments sold 860,021
Receivable for fund shares subscribed 2,566,069
Receivable from Adviser 785,897
Dividends/interest receivable 306,090
Organization costs 44,818
------------
TOTAL ASSETS 493,011,106
LIABILITIES
Securities sold short (Proceeds: $101,849,669) 91,587,800
Payable for investments purchased 2,584,650
Payable for fund shares redeemed 484,822
Accrued expenses and accounts payable 666,060
Dividends payable for securities sold short 25,083
Payables, other 16,666
------------
TOTAL LIABILITIES 95,365,081
TOTAL NET ASSETS $397,646,025
------------
------------
NET ASSETS CONSIST OF:
Paid in capital $457,271,622
Accumulated net realized (loss) from investments (27,710,867)
Accumulated net realized (loss) from options (27,801,576)
Accumulated net realized (loss) from securities
sold short (409,353)
Net unrealized appreciation on investments 1,730,349
Net unrealized (depreciation) on options (15,451,935)
Net unrealized appreciation on securities sold short 10,017,785
------------
TOTAL NET ASSETS $397,646,025
------------
------------
PRICING OF SHARES:
Net Asset Value, offering and redemption price per
share (Net assets of $397,646,025 applicable to
37,158,829 shares of beneficial interest outstanding
with no par value) $10.70
------
------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1995
INVESTMENT INCOME
Interest $ 9,562,574
Dividends (Net of foreign tax of $66,413) 2,187,594
------------
TOTAL INVESTMENT INCOME 11,750,168
EXPENSES
Investment Advisory fees 8,053,129
Distribution fees 4,026,498
Custodian and transfer agent fees 760,677
Dividend expense for securities sold short 545,301
Shareholder reports 125,381
Professional fees 244,778
Registration and filing fees 211,780
Trustees' fees and expenses 17,480
Other 15,788
------------
14,000,812
Less: reimbursement from Adviser (785,897)
------------
TOTAL EXPENSES, NET 13,214,915
NET INVESTMENT (LOSS) (1,464,747)
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON
INVESTMENTS
Net realized (loss) from investments (17,429,453)
Net realized (loss) from options (27,569,968)
Net realized gain from securities sold short 1,299,923
Net change in unrealized (depreciation) on investments (10,936,753)
Net change in unrealized (depreciation) on options (28,287,843)
Net change in unrealized appreciation on securities
sold short 1,117,823
------------
TOTAL NET REALIZED (LOSS) AND UNREALIZED
(DEPRECIATION) ON INVESTMENTS (81,806,271)
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(83,271,018)
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED FOR THE PERIOD
3/31/95 6/3/93 - 3/31/94
------------ ----------------
<S> <C> <C>
OPERATIONS
Net investment (loss) $ (1,464,747) $ (945,080)
Net realized (loss)/gain from investments (17,429,453) 2,324,436
Net realized (loss) from options (27,569,968) (231,608)
Net realized gain/(loss) from securities sold short 1,299,923 (1,709,276)
Net change in unrealized (depreciation)/appreciation on investments (10,936,753) 12,667,102
Net change in unrealized (depreciation)/appreciation on options (28,287,843) 12,835,908
Net change in unrealized appreciation on securities sold short 1,117,823 8,899,962
------------ ------------
NET (DECREASE)/INCREASE IN NET ASSETS RESULTING FROM OPERATIONS (83,271,018) 33,841,444
DISTRIBUTIONS TO SHAREHOLDERS
Realized gains on investments (12,605,850) --
------------ ------------
TOTAL DISTRIBUTIONS (12,605,850) --
Net increase in net assets resulting from capital share transactions 8,572,147 451,109,302
------------ ------------
TOTAL (DECREASE)/INCREASE IN NET ASSETS (87,304,721) 484,950,746
NET ASSETS
Beginning of period 484,950,746 0
------------ ------------
End of period $397,646,025 $484,950,746
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE ROBERTSON STEPHENS CONTRARIAN FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
<TABLE>
<CAPTION>
FOR THE
YEAR ENDED PERIOD
3/31/95 6/3/93 - 3/31/94
------------ ----------------
<S> <C> <C>
Net Asset Value, beginning of period $ 12.34 $ 10.00
------------ ------------
Net investment (loss) (0.04) (0.02)
Net realized and unrealized (loss)/gain on investments (1.35) 2.36
------------ ------------
Total (decrease)/increase in net assets resulting from operations (1.39) 2.34
Distribution from realized gains on investments (0.25) --
------------ ------------
NET ASSET VALUE, END OF PERIOD $ 10.70 $ 12.34
------------ ------------
------------ ------------
TOTAL RETURN (11.23)% 23.40%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period $397,646,025 $484,950,746
Ratio of Expenses to Average Net assets 2.46% 2.22%*
Ratio of Net Investment (Loss) to Average Net Assets (0.27)% (0.77)%*
Portfolio Turnover Rate 79% 14%
</TABLE>
Per share data for each period has been determined by using the average number
of shares outstanding throughout each period.
*Ratios, except for total return and portfolio turnover rate, have been
annualized.
If the Fund had paid all of its expenses and there had been no reimbursement by
the Adviser, the ratio of expenses to average net assets for the year ended
March 31, 1995 would have been 2.58%, and the ratio of net investment (loss) to
average net assets would have been (0.42)%.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Contrarian Fund (the "Fund") is a series of the Robertson
Stephens Investment Trust, a Massachusetts business trust organized on May 11,
1987 (the "Trust"). The Fund is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as a non-diversified, open-end management
investment company. The Fund became effective to offer shares to the public on
June 30, 1993. Prior to the public offering, shares were offered in a private
placement offering on June 3, 1993, at $10 per share, to sophisticated investors
under Section 4(2) of the Securities Act of 1933. The Trust currently offers
four series of shares - The Robertson Stephens Emerging Growth Fund, The
Robertson Stephens Value+Growth Fund, The Robertson Stephens Contrarian Fund and
The Robertson Stephens Emerging Markets Fund. The assets for each series are
segregated and accounted for separately.
1. SIGNIFICANT ACCOUNTING POLICIES: The following policies are in conformity
with generally accepted accounting principles.
a. INVESTMENT VALUATIONS:
- Marketable equity 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 values are next
determined. At March 31, 1995, 98.5% of the Fund's long positions and 100%
of its short 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 March 31, 1995, 1.5% of
the Fund's long positions were valued using these guidelines and
procedures.
- Principally as a result of significant stock price appreciation, on May
24, 1995 approximately 24% of the Contrarian Fund's net assets were
invested in common stock of Diamond Fields Resources, a Canadian
corporation. As a result, a decline in the stock price of Diamond Fields
Resources would have a significant adverse effect on the net asset value
of the Fund.
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 102% 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. At March 31, 1995, the collateral held
by the Fund against the outstanding repurchase agreement was 102% of the
repurchase agreement price.
c. FEDERAL INCOME TAXES: The Fund has made no provision for federal income
taxes for the year ended March 31, 1995, as it does not expect to incur
any federal income tax for the year. The Fund expects in the future to
comply with requirements of the Internal Revenue Code for qualifying as a
regulated investment company so as not to be subject to federal income
tax, although it chose not to take steps to comply with those requirements
for the year ended March 31, 1995.
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 investment
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 gain or loss and unrealized appreciation or
depreciation 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
17
<PAGE>
THE ROBERTSON STEPHENS CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Statement Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies" ("SOP"). The purpose of this SOP is
to report undistributed net investment income and accumulated net realized
gain (loss) accounts in such a manner as to approximate amounts available
for future distributions to shareholders, if any.
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 year ended March 31, 1995 and from June 3, 1993 (commencement of
operations) to March 31, 1994 were as follows:
<TABLE>
<CAPTION>
4/1/94 - 3/31/95 6/3/93 - 3/31/94
-------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 50,424,429 $ 580,777,746 42,363,718 $486,052,391
Shares
reinvested 1,072,034 11,311,877 -- --
----------- ------------- ---------- ------------
51,496,463 592,089,623 42,363,718 486,052,391
Shares
redeemed (53,652,411) (583,517,476) (3,048,941) (34,943,089)
----------- ------------- ---------- ------------
Net (2,155,948) $ 8,572,147 39,314,777 $451,109,302
----------- ------------- ---------- ------------
----------- ------------- ---------- ------------
</TABLE>
3. TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION: Under the terms of an advisory
agreement, which is reviewed and approved annually by the Board of
Trustees, the Fund pays Robertson Stephens Investment Management, L.P.
("RSIM"), of which Robertson, Stephens & Company, L.P. ("RS & Co."), the
Fund's Distributor, is the sole Limited Partner, an investment advisory fee
calculated at an annual rate of 1.50% of the average daily net assets of
the Fund. For the year ended March 31, 1995, the Fund incurred investment
advisory fees of $8,053,129. RSIM has agreed to reimburse the Fund for any
annual operating expenses, including investment advisory fees but excluding
distribution fees and dividend expense for short sales, which exceed the
most stringent limits prescribed by any state in which the Fund's shares
are offered for sale. The current limits for the Fund are 2.5% of the
Fund's average daily net assets up to $30 million, 2.0% between $30 million
to $100 million and 1.5% above $100 million. For the year ended March 31,
1995, the expected reimbursement of advisory fees was $785,897.
b. AFFILIATED PERSONS: Certain officers and Trustees of the Fund are also
limited partners and/or employees of RS & Co. G. Randy Hecht, President,
Chief Executive Officer and a Trustee of the Fund, is also a Director of
RSIM's General Partner, RS & Co., Inc., and a Limited Partner and Chief
Operating Officer of the Fund's Distributor, RS & Co. Paul H. Stephens,
Portfolio Manager of the Fund and Chief Investment Officer of RSIM, is
also a founding Partner and the Chief Investment Officer of RS & Co.
John P . Rohal, a Trustee of the Fund, is a Limited Partner and
Director of Research for RS & Co. All affiliated persons and access
persons of the Fund, 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 $17,480 for the year ended March 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, whereby 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 0.75% of the average daily net assets of the Fund. For
the year ended March 31, 1995, the Fund incurred distribution fees of
$4,026,498.
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.
For the year ended March 31, 1995, the Fund paid brokerage commissions of
$289,074 to RS & Co. which represented 14.8% of total commissions paid for
the period.
On September 9, 1994 RSIM reimbursed the Fund the amount of unrealized
loss and commission in respect of the Fund's investment in Golden Star
Resources, due to the fact that RS&Co. had acted as an underwriter of the
shares which in that instance the Fund was precluded from purchasing. RSIM
has determined that investment in the shares continues to be consistent
with the Fund's investment objective and has, with the acknowledgement of
the Trustees, continued to hold the investment in the Fund's portfolio.
The one-time payment by RSIM increased the Fund's net asset value by 2
cents per share. In the absence of the payment, the Fund's annual total
return and cumulative total return since inception would have been
(13.29)% and 7.00%, respectively. The Fund bears the entire investment
risk on the shares from September 9, 1994.
18
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
4. INVESTMENTS:
a. PORTFOLIO TURNOVER RATE: The portfolio turnover rate, which is calculated
based on the lesser of the cost of investments purchased or the proceeds
from investments sold (excluding options, securities sold short and
short-term investments) measured as a percentage of the Fund's average
monthly portfolio, for the year ended March 31, 1995, was 79%.
b. TAX BASIS OF INVESTMENTS: At March 31, 1995, the cost of investments for
federal income tax purposes was $384,987,798. Accumulated net unrealized
depreciation on investments was $12,264,426, consisting of gross
unrealized appreciation and depreciation of $71,160,302 and $58,895,876,
respectively.
c. INVESTMENT PURCHASES AND SALES: For the year ended March 31, 1995, the
cost of investments purchased and the proceeds from investments sold
(excluding options, securities sold short and short-term investments) were
$316,588,836 and $265,702,381, respectively.
d. OPTIONS: An option contract is a contract that provides the Fund the right,
but not the obligation, in exchange for a premium to buy a call or sell a
put of an underlying security at a specified price within a specified
period of time. The Fund may utilize options to hedge investments against
adverse price fluctuations or as a means of capitalizing on price or value
movements of currencies, securities or indices the Fund does not own. The
risk associated with purchasing options is limited to the premium
originally paid. The premium paid by the Fund for the purchase of a call or
put option is included in the Fund's "Statement of Assets and Liabilities"
as an investment and subsequently marked-to-market to reflect the market
value of the option. The Fund limits its aggregate option positions for all
purposes to 25% of the Fund's total assets. In addition, the Fund is
prohibited from writing the far riskier "naked" option, where the Fund
writes an option when it does not own the underlying security. At March 31,
1995, the Fund held 2.1% of its total assets in options including the
Technology Put Basket Options. For the year ended March 31, 1995, the cost
of options purchased and the proceeds of options sold were $55,275,077 and
$25,656,277, respectively.
"CULT 3" AND "CULT 5" TECHNOLOGY PUT BASKET OPTIONS: The "Cult 3" and
"Cult 5" Technology Put Basket Options (the "Options") are European style
put options expiring June 12, 1995 and January 26, 1996, respectively.
The Options, customized for the Fund, are based on the underlying price
of 13 high technology stocks. The market value of the Options are
determined daily based on the price of the underlying stocks, market
volatility, exercise date and other relevant parameters.
e. SHORT SALES: Short sales are transactions in which the Fund sells a
security it does not own, in anticipation of a decline in the market value
of that security. To complete such a transaction, the Fund must borrow the
security to deliver to the buyer upon the short sale; the Fund then is
obligated to replace the security borrowed by purchasing it in the open
market at some later date. The Fund will incur a loss if the market price
of the security increases between the date of the short sale and the date
on which the Fund replaces the borrowed security. The Fund will realize a
gain if the security declines in value between those dates. All short
sales must be fully collateralized. The Fund maintains the collateral in a
segregated account consisting of cash and/or U.S. Government securities
sufficient to collateralize the sales proceed of its short positions. The
Fund may also sell short "against the box" (i.e. the Fund enters into a
short sale as described above, while holding an offsetting long position
in the security which is sold short). If the Fund enters into a short sale
"against the box", it will segregate an equivalent amount of securities
owned by the Fund as collateral while the short sale is outstanding. The
Fund limits the value of short positions (excluding short sales "against
the box") to 25% of the Fund's total assets. At March 31, 1995, the Fund
had 20% of its total assets in short positions. For the year ended March
31, 1995, the cost of investments purchased to cover short sales and the
proceeds from investments sold short were $170,799,620 and $193,650,998,
respectively.
Included in the "Other Assets, Net" category in the Schedule of Net
Assets are the following securities sold short where the Fund has
purchased the underlying securities to effectively close out the short
positions. At March 31, 1995 the Fund chose not to complete the
transactions which would have required delivery of the purchased
securities to the lender. The Fund does not consider these boxed
positions as investments.
<TABLE>
<CAPTION>
SECURITIES SHARES VALUE
---------- ------- ----------
<S> <C> <C>
First Alert, Inc. 111,000 $1,151,625
Checkers Drive-In Restaurants, Inc. 105,000 288,750
Mid Atlantic Medical Services, Inc. 70,000 1,548,750
Sports & Recreation, Inc. 84,500 971,750
----------
$3,960,875
----------
----------
</TABLE>
f. RESTRICTED SECURITIES: A restricted security is a security which has been
purchased through a private offering and cannot be resold to the general
public without prior registration under the Securities Act of 1933. At
March 31, 1995, the Fund held restricted securities with an aggregate
value of $4,143,750, which represented 1.04% of
19
<PAGE>
THE ROBERTSON STEPHENS CONTRARIAN FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
the Fund's total net assets. Restricted securities are valued according to
the guidelines and procedures adopted by the Fund's Board of Trustees.
<TABLE>
<CAPTION>
SHARES COST VALUE ACQUISITION
SECURITY (000) (000) (000) DATE
-------- ------ ------ ------ -----------
<S> <C> <C> <C> <C>
Indochina Goldfields 233 $ 233 $ 700 3/24/94
117 117 350 3/28/94
750 1,500 2,250 5/26/94
Nescor Energy 125 125 281 4/18/94
250 500 563 5/05/94
</TABLE>
g. WARRANTS: A warrant is an option which normally entitles the holder to
purchase a proportionate amount of a particular class of the issuer's
securities at a predetermined price during a specific period.
The following warrants were valued such that when the exercise price of the
warrant was less than that of the underlying common stock, the warrant was
priced using the Black-Scholes Valuation Formula. The Black-Scholes
Valuation Formula values a warrant by determining the differential between
the exercise price of the warrant and the current price of the underlying
stock based on a number of factors. These factors include, but are not
limited to, current price of the underlying stock, exercise price of the
warrant, time to expiration, assumed riskless rate of interest, compounded
rate of return on the stock and standard deviation of the return on the
stock. If the exercise price was greater than that of the underlying common
stock, the warrant was valued at zero. This valuation method is subject to
frequent review and is in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees.
<TABLE>
<CAPTION>
UNITS COST VALUE EXPIRATION
SECURITY (000) (000) (000) DATE
-------- ----- ------ ------ ----------
<S> <C> <C> <C> <C>
Carson Gold Corporation - Warrants 125 $ 0 $ 0 12/23/95
Carson Gold Corporation - Warrants 1,150 1,806 0 4/11/95
Golden Star Resources - Warrants 150 0 0 7/31/95
Queenstake Resources - Warrants 500 0 0 3/18/97
</TABLE>
20
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Robertson Stephens Contrarian Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedules of net assets and of securities sold short, 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 Contrarian Fund (one of the series constituting The
Robertson Stephens Investment Trust, hereinafter referred to as the "Fund") at
March 31, 1995, the results of its operations for the year then ended and the
changes in its net assets and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 1995 by correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
San Francisco, California
April 21, 1995
21
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
SCHEDULE OF NET ASSETS
MARCH 31, 1995
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BUSINESS SERVICES - 1.8%
Corporate Express, Inc. 125,900 $ 3,336,350
------------
3,336,350
COMPUTER HARDWARE & COMPONENTS - 3.1%
Read-Rite Corporation 98,800 1,889,550
Western Digital Corporation 270,300 3,716,625
------------
5,606,175
COMPUTER SOFTWARE - 9.0%
Adobe Systems, Inc.(1) 51,600 2,554,200
Lotus Development Corporation 39,200 1,499,400
McAfee Associates, Inc. 70,000 2,030,000
National Instruments Corporation 50,000 900,000
Remedy Corporation 42,500 1,524,688
Software Artistry, Inc. 101,600 2,438,400
State of the Art, Inc. 142,800 1,713,600
Sybase, Inc. 58,600 2,344,000
Tivoli Systems, Inc. 39,200 1,450,400
------------
16,454,688
CONSUMER PRODUCTS & SPECIALTY RETAIL - 6.3%
Baby Superstore, Inc. 22,450 881,162
Books a Million, Inc. 106,400 1,556,100
Cannondale Corporation 91,700 1,146,250
Gymboree Corporation 93,000 2,359,875
Kohl's Corporation 63,600 2,814,300
PETsMART, Inc. 78,100 2,733,500
------------
11,491,187
CONSUMER SOFTWARE/TECHNOLOGY - 2.1%
Electronic Arts 79,900 1,807,737
Softkey International, Inc. 70,800 1,929,300
------------
3,737,037
DATA COMMUNICATIONS/TELECOMMUNICATIONS - 5.4%
3Com Corporation 36,300 2,055,488
Cabletron Systems, Inc. 43,200 1,938,600
Cisco Systems, Inc. 78,600 2,996,625
P-Com, Inc. 42,600 820,050
Summa Four, Inc. 83,900 2,034,575
------------
9,845,338
<CAPTION>
SHARES VALUE
<S> <C> <C>
EDUCATIONAL SERVICES - 1.4%
Sylvan Learning Systems, Inc. 146,100 $ 2,593,275
------------
2,593,275
ENVIRONMENTAL SERVICES - 1.8%
United Waste Systems, Inc. 118,800 3,356,100
------------
3,356,100
FOOD SERVICES - 3.5%
Boston Chicken, Inc. 78,000 1,267,500
Starbucks Corporation 210,900 5,061,600
------------
6,329,100
HEALTH CARE/MEDICAL TECHNOLOGY - 6.1%
Mariner Health Group, Inc. 253,500 4,911,563
Quintiles Transnational Corporation 42,800 1,551,500
Value Health, Inc. 122,800 4,697,100
------------
11,160,163
HEALTH CARE FACILITIES MANAGEMENT - 0.3%
Theratx, Inc. 35,000 586,250
------------
586,250
HEALTH MAINTENANCE ORGANIZATIONS - 22.0%
Coventry Corporation 130,400 3,781,600
FHP International Corporation 119,400 3,522,300
Healthsource, Inc. 92,200 4,367,975
Humana, Inc. 149,800 3,838,625
Mid Atlantic Medical Services 114,600 2,535,525
Oxford Health Plans 125,200 7,011,200
PacifiCare Health Systems 49,900 3,605,275
Sierra Health Services 118,000 3,879,250
U.S. Healthcare, Inc.(1) 94,000 4,159,500
United Healthcare Corporation(1) 73,400 3,431,450
------------
40,132,700
HOTEL - 0.2%
ShoLodge, Inc. 26,200 379,900
------------
379,900
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE ROBERTSON STEPHENS EMERGING GROWTH FUND
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
LONG TERM HEALTH CARE - 9.9%
Advantage Health Corporation 116,800 $ 2,774,000
Arbor Health Care Company 184,600 3,922,750
Health Care and Retirement Corporation 125,000 3,937,500
Horizon Healthcare Corporation 138,900 3,715,575
Sun Healthcare Group, Inc. 143,600 3,661,800
------------
18,011,625
MEDICAL SERVICES - 6.9%
Diagnostek, Inc. 163,300 3,327,237
HBO & Company(1) 90,100 3,919,350
MedPartners, Inc. 15,000 331,875
Medicus Systems 75,900 883,628
Pacific Physician Services, Inc. 100,000 1,650,000
PhyCor, Inc. 69,500 2,380,375
------------
12,492,465
SEMICONDUCTOR CAPITAL EQUIPMENT - 7.4%
Applied Materials, Inc. 78,500 4,327,312
Credence Systems Corporation 73,000 2,281,250
Genus, Inc. 102,800 1,079,400
KLA Instruments Corporation 31,300 1,979,725
Lam Research Corporation 48,900 2,188,275
Silicon Valley Group, Inc. 55,500 1,560,938
------------
13,416,900
SEMICONDUCTORS - 4.8%
Cypress Semiconductor Corporation 161,000 4,487,875
Micron Technology, Inc.(1) 32,200 2,447,200
Synopsys, Inc. 37,600 1,795,400
------------
8,730,475
TRANSPORTATION - 1.8%
Knight Transportation, Inc. 58,700 689,725
Landstar System, Inc. 83,100 2,617,650
------------
3,307,375
TOTAL COMMON STOCKS - 93.8%
(Cost: $151,539,398) $170,967,103
<CAPTION>
<S> <C> <C>
CONVERTIBLE PREFERRED STOCK
Applied Micro Circuits Corporation,
Series 3 - Restricted(2) 2,381 $ 43,953
Managed Health Network, Inc.,
Series B - Restricted(2) 500 58,110
------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 0.1%
(Cost: $100,001) 102,063
TOTAL INVESTMENTS - 93.9%
(Cost: $151,639,399) 171,069,166
CASH AND CASH EQUIVALENTS
Cash 739
Repurchase Agreement
State Street Bank and Trust Company, 5.5%,
dated 3/31/95, due 4/3/95, maturity value
$4,619,116 (collateralized by $4,835,000
par value U.S. Treasury Notes, 4.375%,
due 8/15/96) 4,617,000
------------
TOTAL CASH AND CASH EQUIVALENTS - 2.5% 4,617,739
OTHER ASSETS, NET - 3.6% 6,588,431
------------
TOTAL NET ASSETS - 100% $182,275,336
------------
------------
</TABLE>
(1) Income-producing security.
(2) See 4d in Notes to Financial Statements
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments, at value (Cost: $151,639,399) $171,069,166
Cash and cash equivalents 4,617,739
Proceeds receivable from investments sold 8,964,685
Receivable for fund shares subscribed 283,924
Dividends/interest receivable 9,491
------------
TOTAL ASSETS 184,945,005
LIABILITIES
Payable for investments purchased 2,110,760
Payable for fund shares redeemed 359,511
Accrued expenses and accounts payable 199,398
------------
TOTAL LIABILITIES 2,669,669
TOTAL NET ASSETS $182,275,336
------------
------------
NET ASSETS CONSIST OF:
Paid in capital $159,636,368
Accumulated net realized gain from investments 3,209,201
Net unrealized appreciation on investments 19,429,767
------------
TOTAL NET ASSETS $182,275,336
------------
------------
PRICING OF SHARES:
Net Asset Value, offering and redemption price per share
(Net assets of $182,275,336 applicable
to 9,925,306 shares of beneficial
interest outstanding with no par value) $18.36
------
------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1995
<S> <C>
INVESTMENT INCOME
Interest $ 934,365
Dividends 93,694
------------
TOTAL INVESTMENT INCOME 1,028,059
EXPENSES
Investment advisory fees 1,736,763
Distribution fees 434,190
Custodian and transfer agent fees 337,989
Professional fees 67,100
Registration and filing fees 26,591
Shareholder reports 53,550
Trustees' fees and expenses 17,480
Other 8,531
------------
TOTAL EXPENSES 2,682,194
NET INVESTMENT (LOSS) (1,654,135)
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON
INVESTMENTS
Net realized gain from investments 6,598,824
Net change in unrealized appreciation on investments 15,035,796
------------
TOTAL NET REALIZED GAIN AND UNREALIZED
APPRECIATION ON INVESTMENTS 21,634,620
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 19,980,485
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE ROBERTSON STEPHENS EMERGING GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
3/31/95 3/31/94
------------ ------------
<S> <C> <C>
OPERATIONS
Net investment (loss) $ (1,654,135) $ (2,280,008)
Net realized gain from investments 6,598,824 30,005,870
Net change in unrealized appreciation on investments 15,035,796 6,538,028
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 19,980,485 34,263,890
DISTRIBUTIONS TO SHAREHOLDERS
Realized gains on investments (19,811,863) --
------------ ------------
TOTAL DISTRIBUTIONS (19,811,863) --
CAPITAL SHARE TRANSACTIONS
Net increase/(decrease) in net assets resulting from capital shares transactions 13,915,017 (94,965,291)
------------ ------------
TOTAL CAPITAL SHARE TRANSACTIONS 13,915,017 (94,965,291)
------------ ------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS 14,083,639 (60,701,401)
NET ASSETS
Beginning of year 168,191,697 228,893,098
------------ ------------
End of year $182,275,336 $168,191,697
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD:
<TABLE>
<CAPTION>
THREE
MONTHS
YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED
3/31/95 3/31/94 3/31/93 12/31/92 12/31/91 12/31/90
---------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67 $ 11.46
--------- --------- --------- --------- --------- ---------
Net investment (loss) (0.17) (0.40) (0.02) (0.15) (0.09) 0.00
Net realized gain/(loss) and unrealized
appreciation/(depreciation) on investments 2.26 4.06 (2.04) (0.31) 6.82 1.07
--------- --------- --------- --------- --------- ---------
Total increase/(decrease) in net assets
resulting from operations 2.09 3.66 (2.06) (0.46) 6.73 1.07
Distribution from net realized gains on
investments (2.10) -- -- (0.27) (0.90) (0.86)
--------- --------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 18.36 $ 18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
TOTAL RETURN 12.01% 24.88% (12.28)% (2.55)% 58.70% 9.57%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period (000's) $ 182,275 $ 168,192 $ 228,893 $ 277,531 $ 141,929 $ 22,931
Ratio of Expenses to Average Net Assets 1.56% 1.60% 1.54% 1.49% 1.59% 1.88%
Ratio of Net Investment Loss to Average Net
Assets (0.96)% (1.27)% (0.61)% (0.92)% (0.68)% (0.02)%
Portfolio Turnover Rate 280% 274% 43% 124% 147% 272%
</TABLE>
Per share data for each of the periods has been determined by using the average
number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE ROBERTSON STEPHENS EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Emerging Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust, a Massachusetts business trust organized on
May 11, 1987 (the "Trust"). The Fund is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end management
investment company. The Fund became effective to offer shares to the public on
November 30, 1987. The Trust currently offers four series of shares - The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value+Growth
Fund, The Robertson Stephens Contrarian Fund and The Robertson Stephens Emerging
Markets Fund. The assets for each series are segregated and accounted for
separately.
1. SIGNIFICANT ACCOUNTING POLICIES: The following policies are in conformity
with generally accepted accounting principles.
a. INVESTMENT VALUATIONS:
- Marketable equity securities are valued at the last sale price on the
principal exchange or market on which they are traded, or, if there were
no sales that day, at the mean between the closing bid and asked prices.
At March 31, 1995, 99.9% of the Fund's portfolio was valued in this
manner.
- Securities for which market quotations are not readily available are
valued at their fair value as determined in accordance with the guidelines
and procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes
in the issuer's financial position, and any other event which would have a
significant impact on the value of a security. At March 31, 1995,
approximately 0.1% of the Fund's portfolio was valued using these
guidelines and procedures.
b. REPURCHASE AGREEMENTS: Repurchase agreements are fully collateralized by
U.S. government securities. All collateral is held by the Fund's custodian
and is monitored daily to ensure that the collateral's market value equals
at least 102% of the repurchase price under the agreement. However, in the
event of default or bankruptcy, realization and/or retention of the
collateral may be subject to legal proceedings. The Fund's policy is to
limit repurchase agreement transactions to those parties deemed by the
Fund's Investment Advisor to have satisfactory creditworthiness. At March
31, 1995, the collateral held by the Fund against the outstanding
repurchase agreement was 102% of the repurchase agreement price.
c. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code on both excise tax and income tax
provisions applicable to regulated investment companies. The Code permits
the Fund, a regulated investment company, to avoid the imposition of taxes
by meeting various qualification requirements on assets, income and
distributions to shareholders. The Fund intends to continue to meet these
requirements. Accordingly, there is no provision for federal income taxes.
d. SECURITIES TRANSACTIONS: Securities transactions are accounted for on the
date the securities are purchased and sold (trade date). Realized gains and
losses on securities transactions are determined on the basis of specific
identification.
e. INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date.
Interest income is accrued and recorded daily.
f. CAPITAL ACCOUNTS: The Fund follows the provisions of the AICPA's Statement
of Position 93-2 "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital Distributions by
Investment Companies" ("SOP"). The purpose of this SOP is to report
undistributed net investment income and accumulated net realized gain
(loss) accounts in such a manner as to approximate amounts available for
future distributions to shareholders, if any.
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 year ended March 31, 1995 and for the year ended March 31, 1994 were as
follows:
<TABLE>
<CAPTION>
4/1/94 - 3/31/95 4/1/93 - 3/31/94
---------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Shares sold 5,163,070 $ 94,127,247 5,104,387 $ 92,754,159
Shares
reinvested 1,070,767 18,663,580 -- --
--------- ------------ ----------- -------------
6,233,837 112,790,827 5,104,387 92,754,159
Shares
redeemed (5,463,027) (98,875,810) (11,513,219) (187,719,450)
--------- ------------ ----------- -------------
Net
increase/
(decrease) 770,810 $ 13,915,017 (6,408,832) $ (94,965,291)
--------- ------------ ----------- -------------
--------- ------------ ----------- -------------
</TABLE>
16
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION: Under the terms of an advisory
agreement, which is reviewed and approved annually by the Board of
Trustees, the Fund pays Robertson Stephens Investment Management, Inc.
("RSIM"), of which Robertson, Stephens & Company, L.P. ("RS & Co"), the
Fund's Distributor, is an affiliate, an investment advisory fee calculated
at an annual rate of 1.00% of the average daily net assets of the Fund. For
the year ended March 31, 1995, the Fund incurred investment advisory fees
of $1,736,763. 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. The current limits
for the Fund are 2.5% of the Fund's average daily net assets up to $30
million, 2.0% between $30 million to $100 million and 1.5% above $100
million.
b. AFFILIATED PERSONS: Certain officers and Trustees of the Fund are also
limited partners and/or employees of RS & Co. G. Randy Hecht, President,
Chief Executive Officer and a Trustee of the Fund, is also a Director of
RSIM, and a Limited Partner and Chief Operating Officer of the Fund's
Distributor, RS & Co. John P. Rohal, a Trustee of the Fund, is a Limited
Partner 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 $17,480 for the year ended March 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, whereby 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 year ended March 31, 1995, the Fund incurred distribution
fees of $434,190.
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 year ended March 31, 1995, the Fund paid brokerage
commissions of $163,607 to RS & Co. which represented 29.2% of total
commissions paid for the period.
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 portfolio, for the year ended
March 31, 1995, was 280%.
b. TAX BASIS OF INVESTMENTS: At March 31, 1995, the cost of investments for
federal income tax purposes was $151,652,002. Accumulated net unrealized
appreciation on investments was $19,417,164, consisting of gross unrealized
appreciation and depreciation of $22,766,565 and $3,349,401, respectively.
c. INVESTMENT PURCHASES AND SALES: For the year ended March 31, 1995, the cost
of investments purchased and the proceeds from investments sold (excluding
short-term investments) were $469,586,612 and $410,505,457, respectively.
d. RESTRICTED SECURITIES: A restricted security is a security which has been
purchased through a private offering and cannot be resold to the general
public without prior registration under the Securities Act of 1933. If the
security is subsequently registered and resold, the issuers would bear the
expense of all registrations at no cost to the Fund. At March 31, 1995, the
Fund held restricted securities with an aggregate value of $102,063 which
represented 0.1% of the Fund's total net assets.
<TABLE>
<CAPTION>
ACQUISITION
SECURITY SHARES COST VALUE DATE
- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Applied Micro Circuits Corporation
Convertible Preferred Stock,
Series 3 2,381 $50,001 $43,953 9/14/87
Managed Health Network, Inc.
Convertible Preferred Stock,
Series B 500 $50,000 $58,110 12/30/87
</TABLE>
17
<PAGE>
THE ROBERTSON STEPHENS EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Each of the above securities was valued based on its common share price
equivalent. Each common share was valued at its fair value according to the
guidelines and procedures adopted by the Fund's Board of Trustees as
outlined in Note 1.a., paragraph 2.
At March 31, 1995, Applied Micro Circuits Corporation Convertible Preferred
Stock, Series 3 was valued at the common share price equivalent of $1.75,
assuming the 2,381 shares of the Convertible Preferred Stock were converted
to 25,116 shares of common stock. Managed Health Network, Inc. Convertible
Preferred Stock, Series B was valued at the common share price equivalent of
$1.3017, assuming the 500 shares of the Convertible Preferred Stock were
converted to 44,642 shares of common stock.
18
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Robertson Stephens Emerging Growth Fund
In our opinion, the accompanying statement of assets and liabilities,
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 Emerging Growth Fund (one of the series constituting The Robertson
Stephens Investment Trust, hereinafter referred to as the "Fund") at March 31,
1995, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended and the
financial highlights for each of the periods presented subsequent to December
31, 1990, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at March 31, 1995 by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable
basis for the opinion expressed above. The financial statements of the Fund
for the year ended December 31, 1990 were audited by other independent
accountants whose report dated January 31, 1991 expressed an unqualified
opinion on those statements.
Price Waterhouse LLP
San Francisco, California
April 21, 1995
19
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
SCHEDULE OF NET ASSETS
MARCH 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
ECUADOR-0.2%
Odin Mining and Investment
Company - New 30,500 $ 13,637
-----------
13,637
GHANA-0.8%
Golden Shamrock Mines, Ltd. 100,000 65,235
-----------
65,235
INDIA-4.0%
India Fund, Inc.(1) 16,000 164,000
Sanghi Polyesters Limited - GDS(4) 30,000 172,500
-----------
336,500
INDONESIA-17.1%
PT Bank Dagang Nasional
Indonesia, Foreign(1,5) 150,000 224,531
PT Dynaplast, Foreign(1,5) 484,000 497,408
PT Multibreeder Adirama, Foreign(5) 317,000 495,755
PT Sumalindo Lestari Jaya,
Foreign(5) 120,000 211,126
-----------
1,428,820
KOREA-15.1%
Hyundai Motor Company - GDR(3) 11,800 230,100
LG Electronics, Inc. - GDR(3) 17,800 249,200
Korea Equity Fund(1) 35,000 280,000
Pohang Iron & Steel Company, Ltd.
- ADR(1,2) 800 23,100
Samsung Electronics - GDS(1,4) 10,664 474,548
-----------
1,256,948
MALAYSIA-15.1%
Aokam Perdana Berhad(1) 23,000 129,040
CHG Industries Berhad(1) 71,000 197,768
Kim Hin Industry Berhad 50,000 242,987
Kumpulan Emas Berhad(1) 208,000 209,561
Land and General Berhad(1) 93,000 284,769
Malyawata Steel Berhad(1) 100,000 199,526
-----------
1,263,651
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
MEXICO-18.5%
Cementos de Mexico, Series B(1) 100,000 $ 218,957
Desc, S.A. de C.V. - ADR(2) 15,000 123,750
Empaques Ponderosa S.A. - ADR(1,2) 10,000 65,000
Grupo Carso S.A. de C.V., Series A(1) 46,000 200,426
Grupo Industrial Durango - ADR(2) 30,000 180,000
Grupo Televisa S.A. - GDR(1,3) 15,000 249,375
Grupo Tribasa S.A. - ADR(1,2) 40,000 230,000
Hylsamex S.A. - ADR(2) 5,000 46,250
Industrias Penoles S.A. 75,000 153,417
Seguros Comercial America, Class B 650,000 74,026
-----------
1,541,201
MOROCCO-7.9%
Banque Commerciale du Maroque(1) 600 37,040
C. Oriental 6,472 275,411
Omnium Nord Africain(1) 8,000 345,229
-----------
657,680
PAKISTAN-0.8%
Pakistan Investment Fund, Inc.(1) 10,000 64,250
-----------
64,250
TAIWAN-1.9%
Taiwan Fund, Inc.(1) 15,000 159,375
-----------
159,375
THAILAND-3.8%
Regional Container Lines,
Foreign(1,5) 23,660 317,068
-----------
317,068
VENEZUELA-13.5%
Ceramicas Carabobo S.A., Class B
- ADR(1,2) 400,000 300,000
Corimon C.A. Sponsored - ADR(1,2) 50,000 356,250
Siderurgica Venezolana Sivensa(1) 330,000 474,375
-----------
1,130,625
TOTAL INVESTMENTS-98.7%
(Cost: $10,553,788) $ 8,234,990
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
THE ROBERTSON STEPHENS EMERGING MARKETS FUND
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<S> <C> <C>
CASH
Cash $ 506
----------
TOTAL CASH-0.0% 506
DEPOSITS WITH BROKERS & CUSTODIAN BANK
FOR SECURITIES SOLD SHORT
Cash (Segregated) 63,000
----------
TOTAL DEPOSITS WITH BROKERS & CUSTODIAN
BANK FOR SECURITIES SOLD SHORT-0.7% 63,000
RECEIVABLE FROM BROKERS FOR SECURITIES
SOLD SHORT-0.6% 53,000
SECURITIES SOLD SHORT-(0.6)% (53,000)
OTHER ASSETS, NET-0.6% 46,632
----------
TOTAL NET ASSETS-100% $8,345,128
----------
----------
(1)Income-producing security.
(2)ADR-American Depository Receipt.
(3)GDR-Global Depository Receipt.
(4)GDS-Global Depository Shares.
(5)Foreign-Foreign Shares.
</TABLE>
SCHEDULE OF SECURITIES SOLD SHORT
MARCH 31, 1995
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BRAZIL-(0.6)%
Telebras - ADR2 2,000 $ 53,000
----------
53,000
TOTAL SECURITIES SOLD SHORT-(0.6)%
(Proceeds: $53,000) $ 53,000
----------
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost:
$10,553,788) $8,234,990
Cash 506
Deposits with brokers and custodian
bank for securities sold short 63,000
Receivable from brokers for
securities sold short 53,000
Receivable for investments sold 612,373
Receivable for fund shares subscribed 21,836
Receivable from Adviser 44,177
Dividends/interest receivable 10,232
Tax reclaim receivable 124
----------
TOTAL ASSETS 9,040,238
LIABILITIES
Securities sold short (Proceeds:
$53,000) 53,000
Payable for investments purchased 514,737
Payable for fund shares redeemed 113,871
Accrued expenses 13,130
Payable, other 372
----------
TOTAL LIABILITIES 695,110
TOTAL NET ASSETS $8,345,128
----------
----------
NET ASSETS CONSIST OF:
Paid in capital $11,355,519
Accumulated undistributed net
investment income 26,374
Accumulated net realized (loss) from
investments (1,019,604)
Accumulated net realized gain from
securities sold short 301,805
Net unrealized (depreciation) on
investments (2,318,966)
----------
TOTAL NET ASSETS $8,345,128
----------
----------
PRICING OF SHARES:
Net Asset Value, offering and redemption
price per share
(Net assets of $8,345,128 applicable to
974,331 shares of beneficial interest
outstanding with no par value) $ 8.57
---------
---------
</TABLE>
STATEMENT OF OPERATIONS
FOR THE PERIOD MAY 2, 1994 (COMMENCEMENT OF OPERATIONS)
THROUGH MARCH 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 345,480
Dividends (Net of foreign tax of $5,182 211,198
----------
TOTAL INVESTMENT INCOME 556,678
EXPENSES
Investment advisory fees 174,084
Distribution fees 69,633
Custodian and transfer agent fees 53,235
Dividend expense for securities sold short 66,635
Registration and filing fees 52,791
Professional fees 41,011
Trustees' fees and expenses 15,863
Shareholder reports 14,065
Other 10,065
----------
497,382
Less: reimbursement from Adviser (44,177)
----------
TOTAL EXPENSES, NET 453,205
NET INVESTMENT INCOME 103,473
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON
INVESTMENTS
Net realized (loss) from investments (880,354)
Net realized gain from securities
sold short 344,728
Net change in unrealized
(depreciation) on investments (2,318,966)
----------
TOTAL NET REALIZED (LOSS) AND
UNREALIZED (DEPRECIATION) ON
INVESTMENTS (2,854,592)
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS $(2,751,119)
----------
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE ROBERTSON STEPHENS EMERGING MARKETS FUND
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD MAY 2, 1994 (COMMENCEMENT OF OPERATIONS)
THROUGH MARCH 31, 1995
<TABLE>
<S> <C>
OPERATIONS
Net investment income $ 103,473
Net realized (loss) on investments (880,354)
Net realized gain from securities sold
short 344,728
Net change in unrealized (depreciation)
on investments (2,318,966)
----------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS (2,751,119)
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (77,099)
Realized gains on investments (182,173)
----------
TOTAL DISTRIBUTIONS (259,272)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets resulting
from capital share transactions 11,355,519
----------
TOTAL CAPITAL SHARE TRANSACTIONS 11,355,519
----------
TOTAL INCREASE IN NET ASSETS 8,345,128
NET ASSETS
Beginning of period 0
----------
End of period $8,345,128
----------
----------
</TABLE>
FINANCIAL HIGHLIGHTS
FOR THE PERIOD MAY 2, 1994 (COMMENCEMENT OF OPERATIONS)
THROUGH MARCH 31, 1995
<TABLE>
<S> <C>
Net Asset Value, beginning of period $ 10.00
---------
Net investment income 0.06
Net realized (loss) and unrealized
(depreciation) on investments (1.36)
---------
Total decrease in net assets
resulting from operations (1.30)
Distributions from net investment
income (0.04)
Distributions from realized gains on
investments (0.09)
---------
NET ASSET VALUE, END OF PERIOD $ 8.57
---------
---------
TOTAL RETURN (13.14)%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period $8,345,128
Ratio of Expenses to Average Net Assets 3.15%
Ratio of Net Investment Income to
Average Net Assets 0.72%
Portfolio Turnover Rate 124%
</TABLE>
Per share data has been determined by using the average number of shares
outstanding throughout the period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
If the Fund had paid all of its expenses and there had been no reimbursement by
the Adviser, the ratio of expenses to average net assets for the period ended
March 31, 1995 would have been 3.46% (annualized), and the ratio of net
investment income to average net assets would have been 0.41% (annualized).
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Emerging Markets Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust, a Massachusetts business trust organized on
May 11, 1987 (the "Trust"). The Fund is registered under the Investment Company
Act of 1940, as amended (the "1940 Act") as a non-diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on April 29, 1994, and it started to offer shares to the public on May 2,
1994. The Trust currently offers four series of shares - The Robertson Stephens
Emerging Growth Fund, The Robertson Stephens Value+Growth Fund, The Robertson
Stephens Contrarian Fund and The Robertson Stephens Emerging Markets Fund. The
assets for each series are segregated and accounted for separately.
1. SIGNIFICANT ACCOUNTING POLICIES: The following policies are in conformity
with generally accepted accounting principles.
a. INVESTMENT VALUATIONS:
- Marketable equity 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
values are next determined. At March 31, 1995, 89% of the Fund's long
positions and 100% of its short 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 March 31, 1995, 11% of the Fund's long positions and 0% of
its short positions were valued using these guidelines and procedures.
b. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code on both excise tax and income
tax provisions applicable to regulated investment companies. The Code
permits the Fund, a regulated investment company, to avoid the imposition
of taxes by meeting various qualification requirements on assets, income
and distributions to shareholders. The Fund intends to continue to meet
these requirements. Accordingly, there is no provision for federal
income taxes.
c. 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.
d. 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.
e. INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date.
Interest income is accrued and recorded daily.
f. CAPITAL ACCOUNTS: The Fund follows the provisions of the AICPA's Statement
of Position 93-2 "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital Distributions
by Investment Companies" ("SOP"). The purpose of this SOP is to report
undistributed net investment income and accumulated net realized gain
(loss) accounts in such a manner as to approximate amounts available for
future distributions to shareholders, if any.
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 May 2, 1994 (Commencement of Operations) to March 31, 1995
were as follows:
<TABLE>
<CAPTION>
5/2/94 - 3/31/95
--------------------
SHARES AMOUNT
--------- ---------
<S> <C> <C>
Shares sold 3,093,680 $30,436,016
Shares reinvested 26,976 252,773
--------- ---------
3,120,656 30,688,789
Shares redeemed (2,146,325) (19,333,270)
--------- ---------
Net increase 974,331 $11,355,519
--------- ---------
--------- ---------
</TABLE>
13
<PAGE>
THE ROBERTSON STEPHENS EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Investment Management, L.P.
("RSIM"), of which Robertson, Stephens & Company, L.P. ("RS & Co."), the
Fund's Distributor, is the sole Limited Partner, an investment advisory
fee calculated at an annual rate of 1.25% of the average daily net assets
of the Fund. For the period from May 2, 1994 to March 31, 1995, the Fund
incurred investment advisory fees of $174,084. RSIM has agreed to
reimburse the Fund for any annual operating expenses, including investment
advisory fees but excluding distribution fees and dividend expense for
short sales, which exceed the most stringent limits prescribed by any
state in which the Fund's shares are offered for sale. The current limit
for the Fund is 2.5% of the Fund's average daily net assets up to $30
million. For the year ended March 31, 1995, the expected reimbursement of
advisory fees was $44,177.
b. AFFILIATED PERSONS: Certain officers and Trustees of the Fund are also
limited partners and/or employees of RS & Co. G. Randy Hecht, President,
Chief Executive Officer and a Trustee of the Fund, is also a Director of
RSIM's General Partner, RS & Co., Inc., and a Limited Partner and Chief
Operating Officer of the Fund's Distributor, RS & Co. John P. Rohal, a
Trustee of the Fund, is a Limited Partner and Director of Research for RS
& Co. All affiliated persons and access persons of the Fund, 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 $15,863 for the period from May 2, 1994 to March 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, whereby 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 0.50% of the average daily net assets of
the Fund. For the period from May 2, 1994 to March 31, 1995, the Fund
incurred distribution fees of $69,633.
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. For the period from May 2, 1994 to March 31, 1995, the
Fund paid brokerage commissions of $1,250 to RS & Co. which represented
0.73% of total commissions paid for the period.
On September 9, 1994 RSIM reimbursed the Fund the amount of realized loss
and commission in respect of the Fund's investment in shares of Vengold,
due to the fact that the Fund purchased the shares from RS & Co. acting as
principal which in that instance the Fund was precluded from purchasing.
The Fund subsequently sold all the shares on and before August 8, 1994.
The one-time payment by RSIM increased the Fund's net asset value by
13 cents per share. In the absence of the payment, the Fund's total
return since inception would have been (14.3)%.
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 securities sold short and short-term
investments), measured as a percentage of the Fund's average monthly
portfolio, for the period from May 2, 1994 to March 31, 1995, was 124%.
b. TAX BASIS OF INVESTMENTS: At March 31, 1995, the cost of investments for
federal income tax purposes was $10,612,836. Accumulated net unrealized
depreciation on investments was $2,377,846, consisting of gross unrealized
appreciation and depreciation of $256,316 and $2,634,162, respectively.
c. INVESTMENT PURCHASES AND SALES: For the period from May 2, 1994 to March
31, 1995, the cost of investments purchased and the proceeds from
investments sold (excluding securities sold short and short-term
investments) were $21,394,217 and $9,790,138, respectively.
d. SHORT SALES: Short sales are transactions in which the Fund sells a
security it does not own, in anticipation of a decline in the market value
of that security. To complete such a transaction, the Fund must borrow the
security to deliver to the buyer upon the short sale; the Fund then is
obligated to replace the security borrowed by purchasing it in the open
market at some later date. The Fund will incur a loss if the market price
of the security increases between the date of the
14
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
short sale and the date on which the Fund replaces the borrowed security.
The Fund will realize a gain if the security declines in value between
those dates. All short sales must be fully collateralized. The Fund
maintains the collateral in a segregated account consisting of cash and/or
U.S. government securities sufficient to collateralize the sales proceeds
of its short positions. The Fund may also sell short "against the box"
(i.e., the Fund enters into a short sale as described above, while holding
an offsetting long position in the security which is sold short). If the
Fund enters into a short sale "against the box," it will segregate an
equivalent amount of securities owned by the Fund as collateral while the
short sale is outstanding. The Fund limits the value of short sell
positions (excluding short sales "against the box") to 25% of the Fund's
total assets. At March 31, 1995, the Fund had 0.6% of the Fund's total
assets in short positions. For the period from May 2, 1994 to March 31,
1995, the cost of investments purchased to cover short sales and the
proceeds from investments sold short were $5,120,477 and $5,518,205,
respectively.
e. 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. These risks are heightened for investments in
emerging markets countries. 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 March 31, 1995,
the Fund had investments worth no more than 20% of its total assets in any
one foreign country.
15
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Robertson Stephens Developing Countries Fund
(Formerly The Robertson Stephens Emerging Markets Fund)
In our opinion, the accompanying statement of assets and liabilities,
including the schedules of net assets and of securities sold short, 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 Developing Countries Fund (one of the series
constituting The Robertson Stephens Investment Trust, hereinafter referred to
as the "Fund") at March 31, 1995, the results of its operations, the changes in
its net assets and the financial highlights for the period from May 2, 1994
(commencement of operations) through March 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 March 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.
Price Waterhouse LLP
San Francisco, California
April 21, 1995
16
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
SCHEDULE OF NET ASSETS
MARCH 31, 1995
COMMON STOCKS
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
BIOTECHNOLOGY - 3.7%
Amgen, Inc. 235,000 $ 15,833,125
------------
15,833,125
COMPUTER HARDWARE & COMPONENTS - 10.4%
Adaptec, Inc. 250,000 8,250,000
Arrow Electronics, Inc. 100,000 4,212,500
Compaq Computer Corporation 150,000 5,175,000
Dell Computer Corporation 135,000 5,906,250
Hewlett-Packard Company(1) 70,000 8,426,250
Intel Corporation(1) 149,000 12,646,375
------------
44,616,375
COMPUTER SOFTWARE - 13.0%
Adobe Systems, Inc.(1) 150,000 7,425,000
BMC Software, Inc. 185,000 11,793,750
Cadence Design Systems, Inc. 310,000 8,215,000
Computer Associates International, Inc.(1) 125,000 7,421,875
Microsoft Corporation 130,000 9,246,250
Parametric Technology Corporation 290,000 11,600,000
------------
55,701,875
DATA COMMUNICATIONS - 13.1%
3Com Corporation 320,000 18,120,000
Cabletron Systems, Inc. 325,000 14,584,375
Cisco Systems, Inc. 470,000 17,918,750
Newbridge Networks Corporation 165,000 5,403,750
------------
56,026,875
ENVIRONMENTAL SERVICES - 1.2%
Browning-Ferris Industries, Inc.(1) 155,000 5,270,000
------------
5,270,000
FINANCIAL SERVICES - 5.8%
Charles Schwab Corporation(1) 357,500 11,395,312
First USA, Inc.(1) 84,000 3,528,000
Green Tree Financial Corporation(1) 105,000 4,305,000
Household International, Inc.(1) 135,000 5,872,500
------------
25,100,812
<CAPTION>
SHARES VALUE
<S> <C> <C>
HEALTH MAINTENANCE ORGANIZATIONS - 8.4%
Coventry Corporation 215,000 $ 6,235,000
Healthsource, Inc. 290,000 13,738,750
United Healthcare Corporation(1) 345,000 16,128,750
------------
36,102,500
HOSPITALS - 0.2%
Health Management Associates, Inc.
- Class A 30,000 866,250
------------
866,250
LODGING - 2.8%
Hospitality Franchise Systems, Inc. 200,000 6,400,000
La Quinta Inns, Inc.(1) 200,000 5,425,000
------------
11,825,000
LONG TERM/SUBACUTE CARE - 2.2%
Genesis Health Ventures, Inc. 30,000 937,500
Lincare Holdings, Inc. 35,000 1,036,875
Living Centers of America, Inc. 54,000 2,031,750
Vencor, Inc. 157,500 5,610,937
------------
9,617,062
RECREATION - 1.8%
Harveys Casino Resorts(1) 32,200 595,700
Mirage Resorts, Inc. 250,000 7,000,000
------------
7,595,700
SEMICONDUCTOR EQUIPMENT - 11.4%
Applied Materials, Inc. 220,000 12,127,500
KLA Instruments Corporation 130,000 8,222,500
Lam Research Corporation 220,000 9,845,000
Novellus Systems, Inc. 140,000 8,680,000
Tencor Instruments, Inc. 70,000 4,147,500
Teradyne, Inc. 145,000 6,017,500
------------
49,040,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
<S> <C> <C>
SEMICONDUCTORS - 24.3%
Alliance Semiconductor Corporation 220,500 $ 9,371,250
Altera Corporation 125,000 6,984,375
Atmel Corporation 222,500 8,594,063
Cypress Semiconductor Corporation 355,000 9,895,625
Integrated Device Technology, Inc. 125,000 4,625,000
LSI Logic Corporation 355,000 18,637,500
Microchip Technology, Inc. 299,200 8,415,000
Micron Technology, Inc.(1) 373,000 28,348,000
VLSI Technology, Inc. 100,000 1,800,000
Xilinx, Inc. 110,000 7,452,500
------------
104,123,313
TELECOMMUNICATIONS - 2.0%
Ericsson (L.M.) Telephone Company
- ADR(1) 140,000 8,653,750
------------
8,653,750
TOTAL INVESTMENTS - 100.3%
(Cost: $389,707,412) $430,372,637
CASH AND CASH EQUIVALENTS
Cash $ 338
Repurchase Agreement
State Street Bank and Trust Company, 5.5%,
dated 3/31/95, due 4/3/95, maturity value
$43,651,998 (collateralized by $45,650,000
par value U.S. Treasury Notes, 4.375%, due
8/15/96,) 43,632,000
------------
TOTAL CASH AND CASH EQUIVALENTS - 10.2% 43,632,338
OTHER ASSETS AND LIABILITIES, NET - (10.5)% (45,101,968)
------------
TOTAL NET ASSETS - 100% $428,903,007
------------
------------
</TABLE>
(1) Income-producing security.
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at value (Cost:
$389,707,412) $430,372,637
Cash and cash equivalents 43,632,338
Proceeds receivable from investments
sold 7,936,853
Receivable for fund shares subscribed 13,008,377
Dividends/interest receivable 83,016
Other 25,571
------------
TOTAL ASSETS 495,058,792
LIABILITIES
Payable for investments purchased 59,574,129
Payable for fund shares redeemed 6,316,104
Accrued expenses 265,552
------------
TOTAL LIABILITIES 66,155,785
TOTAL NET ASSETS $428,903,007
------------
------------
NET ASSETS CONSIST OF:
Paid in capital $389,767,326
Accumulated net realized (loss) from
investments (1,529,544)
Net unrealized appreciation on
investments 40,665,225
------------
TOTAL NET ASSETS $428,903,007
------------
------------
PRICING OF SHARES:
Net Asset Value, offering and redemption
price per share (Net assets of
$428,903,007 applicable to 23,502,029
shares of beneficial interest
outstanding with no par value) $18.25
------
------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest $ 421,908
Dividends 176,848
-----------
TOTAL INVESTMENT INCOME 598,756
EXPENSES
Investment advisory fees 1,260,821
Custodian and transfer agent fees 237,478
Professional fees 95,557
Registration and filing fees 68,949
Trustees' fees and expenses 17,480
Shareholder reports 20,630
Other expenses 13,066
-----------
TOTAL EXPENSES 1,713,981
NET INVESTMENT (LOSS) (1,115,225)
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS
Net realized (loss) on investments (1,344,592)
Net realized gain on options 455,848
Net realized gain on securities sold short 73,750
Net change in unrealized appreciation on investments 39,217,602
Net change in unrealized (depreciation) on securities sold short (103,750)
-----------
TOTAL NET REALIZED LOSS AND UNREALIZED APPRECIATION ON INVESTMENTS 38,298,858
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $37,183,633
-----------
-----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
3/31/95 3/31/94
------------ -----------
<S> <C> <C>
OPERATIONS
Net investment (loss) $ (1,115,225) $ (122,173)
Net realized (loss)/gain on investments (1,344,592) 1,398,372
Net realized gain/(loss) on options 455,848 (587,124)
Net realized gain on securities sold short 73,750 41,095
Net change in unrealized appreciation on investments 39,217,602 287,712
Net change in unrealized appreciation on options -- 96,656
Net change in unrealized (depreciation) on securities sold short (103,750) (85,898)
------------ -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 37,183,633 1,028,640
DISTRIBUTIONS TO SHAREHOLDERS
Investment income -- (51,014)
Realized gains on investments (1,566,892) (524,428)
------------ -----------
TOTAL DISTRIBUTIONS (1,566,892) (575,442)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets resulting from capital share transactions 348,785,903 26,213,815
------------ -----------
TOTAL CAPITAL SHARE TRANSACTIONS 348,785,903 26,213,815
------------ -----------
TOTAL INCREASE IN NET ASSETS 384,402,644 26,667,013
NET ASSETS
Beginning of year 44,500,363 17,833,350
------------ -----------
End of year $428,903,007 $44,500,363
------------ -----------
------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD:
<TABLE>
<CAPTION>
YEAR PERIOD (1)
YEAR ENDED ENDED ENDED
3/31/95 3/31/94 3/31/93
------------ ----------- -----------
<S> <C> <C> <C>
Net Asset Value, beginning of period $ 13.56 $ 11.94 $ 10.00
------------ ----------- -----------
Net investment (loss)/income (0.18) (0.04) 0.12
Net realized gain and unrealized appreciation on investments 5.07 1.99 1.88
------------ ----------- -----------
Total increase in net assets resulting from operations 4.89 1.95 2.00
Distributions from net investment income -- (0.03) (0.06)
Distributions from realized gain on investments (0.20) (0.30) --
------------ ----------- -----------
Total Distributions (0.20) (0.33) (0.06)
------------ ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 18.25 $ 13.56 $ 11.94
------------ ----------- -----------
------------ ----------- -----------
TOTAL RETURN 36.27% 16.32% 20.05%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of period $428,903,007 $44,500,363 $17,833,350
Ratio of Expenses to Average Net Assets 1.68% 1.55%(2) 1.33%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (1.09)% (0.51)%(2) 1.26%(2)
Portfolio Turnover Rate 232% 250% 210%
</TABLE>
(1) From April 21, 1992 (Commencement of Operations) to 3/31/93.
(2) If the Fund had paid all of its expenses and had received no reimbursement
from the Advisor, the ratio of expenses to average net assets for the
periods ended March 31, 1994 and March 31, 1993 would have been 2.35% and
2.71% (annualized), respectively, and the ratio of net investment
income/(loss) to average net assets would have been (1.31)% and (0.12)%
(annualized), respectively.
Per share data for each of the periods has been determined by using the average
number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Value+Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust, a Massachusetts business trust organized on
May 11, 1987 (the "Trust"). The Fund is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a diversified, open-end management
investment company. The Fund became effective to offer shares to the public on
May 12, 1992. Prior to the public offering, shares were offered in a private
placement offering on April 21, 1992, at $10 per share, to sophisticated
investors under Section 4(2) of the Securities Act of 1933. The Trust currently
offers four series of shares - The Robertson Stephens Emerging Growth Fund, The
Robertson Stephens Value+Growth Fund, The Robertson Stephens Contrarian Fund and
The Robertson Stephens Emerging Markets Fund. The assets for each series are
segregated and accounted for separately.
1. SIGNIFICANT ACCOUNTING POLICIES: The following policies are in conformity
with generally accepted accounting principles.
a. INVESTMENT VALUATIONS:
- Marketable equity 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 March 31, 1995, 100% of the Fund's portfolio was valued
in this manner.
- Securities for which market quotations are not readily available are
valued at their fair value as determined in accordance with the guidelines
and procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes
in the issuer's financial position, and any other event which would have a
significant impact on the value of a security. At March 31, 1995, no
security of the Fund was valued using these guidelines and procedures.
b. REPURCHASE AGREEMENTS: Repurchase agreements are fully collateralized by
U.S. government securities. All collateral is held by the Fund's custodian
and is monitored daily to ensure that the collateral's market value equals
at least 102% 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. At March 31, 1995, the collateral
held by the Fund against the outstanding repurchase agreement was 102%
of the repurchase agreement price.
c. FEDERAL INCOME TAXES: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code on both excise tax and income tax
provisions applicable to regulated investment companies. The Code permits
the Fund, a regulated investment company, to avoid imposition of taxes by
meeting various qualification requirements on assets, income and
distributions to shareholders. The Fund intends to continue to meet these
requirements. Accordingly, there is no provision for federal income taxes.
d. SECURITIES TRANSACTIONS: Securities transactions are accounted for on the
date the securities are purchased, sold, or sold short (trade date).
Realized gains and losses on securities transactions are determined on the
basis of specific identification.
e. INVESTMENT INCOME: Dividend income is recorded on the ex-dividend date.
Interest income is accrued and recorded daily.
f. CAPITAL ACCOUNTS: The Fund follows the provisions of the AICPA's Statement
of Position 93-2 "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital Distributions by
Investment Companies" ("SOP"). The purpose of this SOP is to report
undistributed net investment income and accumulated net realized gain
(loss) accounts in such a manner as to approximate amounts available for
future distributions to shareholders, if any.
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 years ended March 31, 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
4/1/94 - 3/31/95 4/1/93 - 3/31/94
-------------------------- ------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ------------- ---------- ------------
<S> <C> <C> <C> <C>
Shares sold 34,759,244 $ 574,001,458 4,182,038 $ 58,975,561
Shares
reinvested 79,555 1,276,754 42,857 559,716
----------- ------------- ---------- ------------
34,838,799 575,278,212 4,224,895 59,535,277
Shares
redeemed (14,619,427) (226,492,309) (2,435,225) (33,321,462)
----------- ------------- ---------- ------------
Net
increase 20,219,372 $ 348,785,903 1,789,670 $ 26,213,815
----------- ------------- ---------- ------------
----------- ------------- ---------- ------------
</TABLE>
18
<PAGE>
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION: Under the terms of an advisory
agreement, which is reviewed and approved annually by the Board of
Trustees, the Fund pays Robertson Stephens Investment Management, L.P.
("RSIM"), of which Robertson, Stephens & Company, L.P. ("RS & Co."), the
Fund's Distributor, is the sole Limited Partner, an investment advisory fee
calculated at an annual rate of 1.25% of the average daily net assets of
the Fund. For the year ended March 31, 1995, the Fund incurred investment
advisory fees of $1,260,821. RSIM has agreed to reimburse the Fund for any
annual operating expenses, including investment advisory fees, which exceed
1.9% of the Fund's average daily net assets. The advisory agreement for the
Value+Growth Fund permits RSIM to seek reimbursement of any reductions made
to its management fee within the two-year period following such reduction,
subject to the Value+Growth Fund's ability to effect such reimbursement and
remain in compliance with applicable expense limitations. At March 31,
1995, the reduction of the past management fee due back to RSIM was
$172,210.
b. AFFILIATED PERSONS: Certain officers and Trustees of the Fund are also
limited partners and/or employees of RS & Co. G. Randy Hecht, President,
Chief Executive Officer and a Trustee of the Fund, is also a Director of
RSIM's General Partner, RS & Co., Inc., and a Limited Partner and Chief
Operating Officer of the Fund's Distributor, RS & Co. John P. Rohal, a
Trustee of the Fund, is a Limited Partner and Director of Research for RS &
Co. All affiliated persons and access persons of the Fund, 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 $17,480 for the year ended March 31, 1995.
d. 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.
For the year ended March 31, 1995, the Fund paid brokerage commissions of
$82,270 to RS & Co. which represented 12.4% of total commissions paid for
the period.
4. INVESTMENTS:
a. PORTFOLIO TURNOVER RATE: The portfolio turnover rate, which is calculated
based on the lesser of the cost of investments purchased or the proceeds
from investments sold (excluding options, securities sold short and
short-term investments) measured as a percentage of the Fund's average
monthly portfolio, for the year ended March 31, 1995, was 232%.
b. TAX BASIS OF INVESTMENTS: At March 31, 1995, the cost of investments for
federal income tax purposes was $390,066,745. Accumulated net unrealized
appreciation on investments was $40,305,892 consisting of gross unrealized
appreciation and depreciation of $44,541,060 and $4,235,168 respectively.
c. INVESTMENT PURCHASES AND SALES: For the year ended March 31, 1995, the cost
of investments purchased and the proceeds from investments sold (excluding
options, securities sold short and short-term investments) were
$605,628,567 and $257,806,822, respectively.
d. OPTIONS: The Fund may utilize options to hedge investments against adverse
price fluctuations or as a means of capitalizing on price or value
movements of currencies, securities or indices the Fund does not own. The
risk associated with purchasing options is limited to the premium
originally paid. The risk in writing a call option is that the Fund may
forego the opportunity of profit if the market price of the underlying
security increases and the option is exercised. The risk of writing a put
option is that the Fund may incur a loss if the market price of the
underlying security decreases and the option is exercised. In addition,
there is the risk that the Fund may be unable to enter into a closing
transaction due to lack of a secondary market. The Fund limits its
aggregate option positions for all purposes to 25% of the Fund's total
assets. In addition, the Fund is prohibited from writing the far riskier
"naked" option - where the Fund writes an option when it does not own the
underlying instrument. At March 31, 1995, the Fund did not own any options.
For the year ended March 31, 1995, the cost of options purchased and the
proceeds of options sold were $677,623 and $1,901,814, respectively.
19
<PAGE>
THE ROBERTSON STEPHENS VALUE + GROWTH FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
e. SHORT SALES: Short sales are transactions in which the Fund sells a
security it does not own, in anticipation of a decline in the market value
of that security. To complete such a transaction, the Fund must borrow the
security to deliver to the buyer upon the short sale; the Fund then is
obligated to replace the security borrowed by purchasing it in the open
market at some later date. The Fund will incur a loss if the market price
of the security increases between the date of the short sale and the date
on which the Fund replaces the borrowed security. The Fund will realize a
gain if the security declines in value between those dates. All short sales
must be fully collateralized. The Fund maintains the collateral in a
segregated account consisting of cash and/or U.S. government securities
sufficient to collateralize the sales proceed of its short positions. The
Fund may also sell short "against the box" (i.e. the Fund enters into a
short sale as described above, while holding an offsetting long position in
the security which is sold short). If the Fund enters into a short sale
against the box, it will segregate an equivalent amount of securities owned
by the Fund as collateral while the short sale is outstanding. The Fund
limits the value of short sell positions (excluding short sales "against
the box") to 25% of the Fund's total assets. At March 31, 1995, the Fund
did not sell any securities short. For the year ended March 31, 1995, the
cost of investments purchased to cover short sales was $637,500.
20
<PAGE>
MARCH 31, 1995 ANNUAL REPORT
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
The Robertson Stephens Value + Growth Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of net assets, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Robertson Stephens Value +
Growth Fund (one of the series constituting The Robertson Stephens Investment
Trust, hereinafter referred to as the "Fund") at March 31, 1995, the results of
its operations for the year then ended and the changes in its net assets and the
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 1995 by
correspondence with the custodian and brokers and the application of alternative
auditing procedures where confirmations from brokers were not received, provide
a reasonable basis for the opinion expressed above.
Price Waterhouse LLP
San Francisco, California
April 21, 1995
21
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
ALUMINUM - 7.6%
Kaiser Aluminum Corporation(1) 759,100 $11,101,838
MAXXAM, Inc. 507,800 24,945,675
Western Mining 335,000 2,192,488
- -------------------------------------------------------------------------------
38,240,001
- -------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 6.5%
American Buildings Company 398,000 9,402,750
Easco, Inc.(1) 192,500 1,443,750
Royal Plastics Group, Ltd. 1,666,300 21,849,965
- -------------------------------------------------------------------------------
32,696,465
- -------------------------------------------------------------------------------
COPPER MINING - 3.1%
Adrian Resources Ltd. 1,764,003 6,890,124
Chase Resources Corporation 212,900 316,792
Indochina Goldfields,Ltd. - Restricted(2) 1,700,000 8,500,000
- -------------------------------------------------------------------------------
15,706,916
- -------------------------------------------------------------------------------
ENERGY - 6.8%
Anderson Exploration, Ltd. 282,100 2,649,738
Anzoil N.L. 45,842,000 4,850,272
Coflexip - ADR(3) 20,000 307,500
Conwest Exploration Company, Ltd.(1) 50,000 957,890
Louisiana Land & Exploration(1) 168,500 6,002,813
McMoRan Oil & Gas Company 1,412,420 4,502,089
Nescor Energy - Restricted(2) 375,000 1,125,000
Oryx Energy Company 486,200 6,320,600
Petro-Canada Installment Receipts 500,000 2,437,500
Tide West Oil Company 505,000 5,428,750
- -------------------------------------------------------------------------------
34,582,152
- -------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.9%
Dundee Bancorp,Inc., Class A 1,994,200 19,844,078
- -------------------------------------------------------------------------------
19,844,078
- -------------------------------------------------------------------------------
GAMING/ENTERTAINMENT - 0.3%
Hollywood Park,Inc.(1) 114,000 1,396,500
- -------------------------------------------------------------------------------
1,396,500
- -------------------------------------------------------------------------------
GOLD MINING - 13.4%
Ashanti Goldfields - GDS(1),(4) 600,000 12,300,000
Cambior, Inc.(1) 1,159,900 12,297,132
Carson Gold Corporation 978,500 749,836
Carson Gold Corporation - Warrants(5) 125,000 0
Central Fund of Canada, Class A(1) 487,300 2,375,588
Delta Gold Mining Corporation 1,142,600 646,065
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
El Callao Mining Corporation 450,000 $ 261,141
Golden Shamrock Mines, Ltd. 6,477,000 4,111,759
Golden Star Resources, Ltd.(1) 1,677,500 9,984,376
Golden Star Resources, Ltd. - Warrants(5) 75,000 0
Guyanor Resources, S.A. 335,500 898,594
MK Gold Company 636,000 2,385,000
Newmont Mining Corporation(1) 325,000 13,812,500
Queenstake Resources, Ltd. 2,039,300 910,334
Queenstake Resources, Ltd. - Warrants(5) 500,000 0
Rayrock Yellowknife Resources, Inc. 63,500 513,773
Tombstone Explorations Co., Ltd. 244,500 198,278
Vengold, Inc. 4,756,400 5,838,896
Vengold, Inc., Series A Warrants(5) 1,286,000 564,497
- -------------------------------------------------------------------------------
67,847,769
- -------------------------------------------------------------------------------
INTERNATIONAL CONGLOMERATE - 1.8%
Lonrho PLC(1) 3,390,000 8,891,452
- -------------------------------------------------------------------------------
8,891,452
- -------------------------------------------------------------------------------
NICKEL MINING - 22.6%
Diamond Fields Resources, Inc. 6,983,600 114,306,376
- -------------------------------------------------------------------------------
114,306,376
- -------------------------------------------------------------------------------
REAL ESTATE - 4.9%
Atlantic Gulf Communities 532,000 4,056,500
Avatar Holdings 307,600 11,381,200
Catellus Development 1,412,100 9,002,138
FM Properties 123,500 231,563
- -------------------------------------------------------------------------------
24,671,401
- -------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 2.4%
Intertape Polymer Group(1) 200,000 5,850,000
Monsanto Company(1) 28,000 2,821,000
NL Industries, Inc. 215,000 3,547,500
- -------------------------------------------------------------------------------
12,218,500
- -------------------------------------------------------------------------------
TRANSPORTATION SERVICES - 3.5%
China Yuchai International(1) 358,300 4,389,175
Harper Group(1) 397,000 7,543,000
Westinghouse Air Brake Company 400,000 5,750,000
- -------------------------------------------------------------------------------
17,682,175
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 76.7% (Cost: $289,613,656) $388,083,785
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
PREFERRED STOCKS
United Services Advisors, Pfd. 279,860 $ 734,633
Catellus Development, 3.625%, Conv. Pfd.,
12/31/99, Series B(1) 30,000 1,215,000
TOTAL PREFERRED STOCKS - 0.4% (Cost: $2,852,688) 1,949,633
<CAPTION>
CONTRACTS VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
PUT OPTIONS
S&P 500 INDEX PUT OPTIONS
December 95 450 615 17,296
December 95 460 500 15,625
December 95 475 902 33,825
December 95 485 500 25,000
December 95 500 1,301 121,968
December 95 525 2,573 369,868
December 95 550 1,395 470,812
December 95 560 345 155,250
March 96 500 525 124,688
March 96 525 350 146,562
March 96 540 975 560,625
March 96 565 450 416,250
June 96 525 250 173,437
June 96 550 250 262,500
June 96 565 350 485,625
Cult 5 Technology Put Basket Dec. 1995 100 10 2,418
Cult 6 Technology Put Basket Mar. 1996 100 20 180,899
Cult 7 Technology Put Basket Jun. 1996 100 10 686,496
Cult 8 Technology Put Basket Sep. 1996 100 9 918,276
TOTAL PUT OPTIONS - 1.0% (Cost: $20,224,063) 5,167,420
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 78.1% (Cost: $312,690,407) 395,200,838
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CASH - 0.6% 3,171,684
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DEPOSITS WITH BROKERS AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT
Cash 2,100,000
U.S. Treasury Bills, 5.35%, due 10/5/95 94,943,422
Repurchase Agreement (Segregated) 15,511,000
State Street Bank and Trust Company, 5.25%, dated
8/29/95, due 10/02/95, maturity value $15,517,786
(collateralized by $14,100,000 par value U.S. Treasury
Notes, 7.625%, due 12/15/22)
- -------------------------------------------------------------------------------
TOTAL DEPOSITS WITH BROKERS AND CUSTODIAN BANK
FOR SECURITIES SOLD SHORT - 22.2% 112,554,422
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD SHORT - 21.5% $ 108,676,350
- -------------------------------------------------------------------------------
SECURITIES SOLD SHORT - (22.2)% (Proceeds: $108,676,350) (112,553,341)
- -------------------------------------------------------------------------------
OTHER ASSETS, NET - (0.2)% (811,176)
- -------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $506,238,777
- -------------------------------------------------------------------------------
</TABLE>
SCHEDULE OF SECURITIES SOLD SHORT
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
LONG TERM HEALTHCARE - (1.1)%
Foundation Health 149,500 $5,699,688
- -------------------------------------------------------------------------------
5,699,688
- -------------------------------------------------------------------------------
HEALTHCARE/MEDICAL TECHNOLOGY/HMO - (1.3)%
Integrated Health Services 128,500 3,630,125
Pyxis Corporation 140,000 2,712,500
- -------------------------------------------------------------------------------
6,342,625
- -------------------------------------------------------------------------------
MEDICAL SUPPLIES - (2.6)%
Biomet, Inc. 291,500 5,028,375
MediSense, Inc. 212,400 5,124,150
Safeskin Corporation 164,100 2,933,287
- -------------------------------------------------------------------------------
13,085,812
- -------------------------------------------------------------------------------
MEDICAL SERVICES - (0.3)%
Isolyser Company, Inc. 44,500 1,518,562
- -------------------------------------------------------------------------------
1,518,562
- -------------------------------------------------------------------------------
COMPUTER SYSTEMS - (0.2)%
Norand Corporation 51,000 937,125
- -------------------------------------------------------------------------------
937,125
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - (0.5)%
FTP Software, Inc. 83,000 2,303,250
- -------------------------------------------------------------------------------
2,303,250
- -------------------------------------------------------------------------------
</TABLE>
1 Income Producing Securities.
2 See 4f in Notes to Financial Statements.
3 ADR - American Depository Receipts.
4 GDS - Global Depository Shares.
5 See 4g in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
SCHEDULE OF SECURITIES SOLD SHORT (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
PERIPHERALS - (0.9)%
InFocus Systems, Inc. 123,500 $ 3,041,188
Proxima Corporation 96,500 1,664,625
- -------------------------------------------------------------------------------
4,705,813
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - (3.1)%
Cidco, Inc. 225,900 7,962,975
Colonial Data Technologies 250,700 4,637,950
Nextel Communications, Inc - Class A 182,000 3,071,250
- -------------------------------------------------------------------------------
15,672,175
- -------------------------------------------------------------------------------
TECHNOLOGY/NETWORK SYSTEMS - (1.6)%
American Power Conversion Corporation 240,000 2,940,000
Iomega Corporation 223,000 5,045,375
- -------------------------------------------------------------------------------
7,985,375
- -------------------------------------------------------------------------------
FINANCE/INTEREST SENSITIVE - (0.8)%
Equitable Companies, Inc. 174,000 4,263,000
- -------------------------------------------------------------------------------
4,263,000
- -------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - (4.7)%
Bed Bath & Beyond, Inc. 182,000 5,551,000
Best Buy Company, Inc. 70,000 1,837,500
Callaway Golf Company 175,000 2,712,500
First Alert, Inc. 227,500 3,583,125
Gymboree Corporation 100,700 3,033,588
Kohls Corporation 47,000 2,438,125
Micro Warehouse, Inc. 104,000 4,758,000
- -------------------------------------------------------------------------------
23,913,838
- -------------------------------------------------------------------------------
SECURITIES DEALERS/MUTUAL FUNDS - (0.2)%
Charles Schwab Corporation 43,000 1,204,000
- -------------------------------------------------------------------------------
1,204,000
- -------------------------------------------------------------------------------
RESTAURANTS - (1.7)%
Au Bon Pain Co., Class A 133,000 1,030,750
IHOP Corporation 120,000 3,150,000
Papa John's International, Inc. 96,000 4,320,000
- -------------------------------------------------------------------------------
8,500,750
- -------------------------------------------------------------------------------
CONSUMER TECHNOLOGY - (3.2)%
Acclaim Entertainment, Inc. 197,671 5,090,028
Electronic Arts, Inc. 200,000 7,350,000
Sensormatic Electronics Corporation 173,100 3,981,300
- -------------------------------------------------------------------------------
16,421,328
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT - (22.2)%
(Proceeds: $108,676,350) $112,553,341
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at value (Cost: $312,690,407) $395,200,838
Cash 3,171,684
Deposits with brokers and custodian bank for securities
sold short 112,554,422
Receivable for investments sold 7,165,239
Receivable from brokers for securities sold short 108,676,350
Receivable for fund shares subscribed 1,679,995
Receivable from Adviser 1,346,398
Dividends/interest receivable 224,657
- -------------------------------------------------------------------------------
TOTAL ASSETS 630,019,583
- -------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------
Securities sold short (Proceeds: $108,676,350) 112,553,341
Payable for investments purchased 6,166,166
Loan payable 2,487,946
Payable for fund shares redeemed 1,540,603
Accrued expenses 1,022,255
Payables, other 10,495
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 123,780,806
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $506,238,777
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital 466,935,404
Accumulated net realized gain from investments 28,177,570
Accumulated net realized (loss) from options (51,155,712)
Accumulated net realized (loss) from securities sold short (16,351,498)
Net unrealized appreciation on investments 97,566,647
Net unrealized (depreciation) on options (15,056,643)
Net unrealized (depreciation) on securities sold short (3,876,991)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $506,238,777
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRICING OF SHARES: $ 13.26
Net Asset Value, offering and redemption price
per share (net assets of $506,238,777 applicable
to 38,164,230 shares of beneficial interest
outstanding with no par value)
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------
Interest $ 4,990,554
Dividends (Net of Foreign Tax Withheld of $24,453.79) 1,239,737
- -------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 6,230,291
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
Investment Advisory fees 3,761,190
Distribution fees 1,880,571
Custodian and transfer agent fees 352,440
Registration and filing fees 106,262
Professional fees 108,804
Shareholder reports 66,127
Dividend expense for securities sold short 40,673
Trustees' fees and expenses 11,250
Other 8,210
- -------------------------------------------------------------------------------
6,335,527
Less: Reimbursement from Adviser (458,000)
- -------------------------------------------------------------------------------
TOTAL EXPENSES, NET 5,877,527
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 352,764
- -------------------------------------------------------------------------------
REALIZED GAIN(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS, OPTIONS AND SECURITIES SOLD SHORT
- -------------------------------------------------------------------------------
Net realized gain from investments 56,788,273
Net realized (loss) from options (23,354,136)
Net realized (loss) from securities sold short (15,942,145)
Net change in unrealized appreciation on investments 94,936,463
Net change in unrealized appreciation on options 395,292
Net change in unrealized (depreciation) on securities
sold short (13,894,776)
- -------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON
INVESTMENTS, OPTIONS AND SECURITIES SOLD SHORT 98,928,971
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $99,281,735
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
9/30/95 YEAR ENDED
(UNAUDITED) 3/31/95
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income/(loss) $ 352,764 $ (1,464,747)
Net realized gain/(loss) from investments 56,788,273 (17,429,453)
Net realized (loss) from options (23,354,136) (27,569,968)
Net realized (loss)/gain from securities sold short (15,942,145) 1,299,923
Net change in unrealized appreciation/(depreciation) on investments 94,936,463 (10,936,753)
Net change in unrealized appreciation/(depreciation) on options 395,292 (28,287,843)
Net change in unrealized (depreciation)/appreciation on securities
sold short (13,894,776) 1,117,823
- -------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------
Realized gains on investments 0 (12,605,850)
- -------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0 (12,605,850)
- -------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 9,311,017 8,572,147
TOTAL CAPITAL SHARE TRANSACTIONS 9,311,017 8,572,147
- -------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 108,592,752 (87,304,721)
- -------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------
Beginning of period 397,646,025 484,950,746
End of period $506,238,777 $397,646,025
- -------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
FOR A SHARE OUTSTANDING 9/30/95 YEAR ENDED FOR THE PERIOD
THROUGHOUT EACH PERIOD (UNAUDITED) 3/31/95 6/3/93-3/31/94
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net Asset Value Begining of period $ 10.70 $ 12.34 $ 10.00
- ------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 0.01 (0.04) (0.02)
Net realized gain/(loss) and unrealized
appreciation/(depreciation) on investments 2.55 (1.35) 2.36
Total Increase/(Decrease) in Net Assets Resulting from
Operations 2.56 (1.39) 2.34
- ------------------------------------------------------------------------------------------------------------
Distribution from realized gains on investments - (0.25) -
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $13.26 $10.70 $12.34
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN 23.93% (11.23)% 23.40%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------
Net Assets, end of period $506,238,777 $397,646,025 $484,950,746
Ratio of Expenses to Average Net Assets 2.34% 2.46% 2.22%
Ratio of Net Investment Income/(Loss) to Average Net Assets 0.14% (0.27)% (0.77)%
Portfolio Turnover Rate 34% 79% 14%
</TABLE>
Per share data for each period has been determined by using the average
number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
If the Fund had paid all of its expenses and there had been no reimbursement
by the Adviser, the ratio of expenses to average net assets for the year
ended March 31, 1995, and the quarter ended September 30, 1995, would have
been 2.58% and 2.52% respectively, and the ratio of net investment (loss) to
average net assets would have been (0.42)% and (0.04)%, respectively.
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Contrarian 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 non-diversified,
open-end management investment company. The Fund became effective to offer
shares to the public on June 30, 1993. Prior to the public offering, shares
were offered in a private placement offering on June 3, 1993, at $10 per
share, to sophisticated investors under Section 4(2) of the Securities Act of
1933. The Trust offers nine series of shares -- The Robertson Stephens
Emerging Growth Fund, The Robertson Stephens Value+Growth Fund, The Robertson
Stephens Contrarian Fund, The Robertson Stephens Developing Countries Fund,
The Robertson Stephens Growth & Income Fund, The Robertson Stephens Partners
Fund, The Robertson Stephens Information Age Fund (effective November 15,
1995), The Robertson Stephens Global Natural Resources Fund (effective
November 15, 1995), and The Robertson Stephens Global Low-Priced Stock Fund
(effective November 15, 1995). The assets for each series are segregated and
accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities 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
September 30, 1995, 97.5% of the Fund's long positions and 100% of its short
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 could have a
significant impact on the value of the security. At September 30, 1995, 2.5%
of the Fund's long positions were valued using these guidelines and
procedures.
Principally as a result of significant stock price appreciation, on September
30, 1995 and on October 31, 1995, approximately 22.6% and 24.3%,
respectively, of the Contrarian Fund's net assets were invested in the common
stock of Diamond Fields Resources, a Canadian corporation. Shares of Diamond
Fields Resources, are freely traded on the Toronto Stock Exchange; the shares
held by the Fund are currently restricted as to resale within the U.S.
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
19
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 taxes for the six months
ended September 30, 1995, as it does not expect to incur any federal income
tax for the year. The Fund expects to comply with requirements of the
Internal Revenue Code for qualifying as a regulated investment company so as
not to be subject to federal income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, 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 investment
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 gain or loss and unrealized appreciation or
depreciation from investments, options and securities sold short.
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 (loss) accounts in such a manner as
to approximate amounts available for future distributions to shareholders, if
any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the six months ended
September 30, 1995 and the year ended March 31, 1995, were as follows:
<TABLE>
<CAPTION>
4/1/95 - 9/30/95 SHARES AMOUNT
- --------------------------------------------------------
<S> <C> <C>
Shares sold 22,850,180 $284,406,603
- --------------------------------------------------------
Shares redeemed (21,844,779) (275,095,586)
- --------------------------------------------------------
Net 1,005,401 $ 9,311,017
<CAPTION>
4/1/94 - 3/31/95 SHARES AMOUNT
- --------------------------------------------------------
<S> <C> <C>
Shares sold 50,424,429 $580,777,746
Shares reinvested 1,072,034 11,311,877
51,496,463 592,089,623
- --------------------------------------------------------
Shares redeemed (53,652,411) (583,517,476)
- --------------------------------------------------------
Net (2,155,948) $ 8,572,147
</TABLE>
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, L.P. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co."), the Fund's Distributor, is the sole Limited Partner, an
investment advisory fee calculated at an annual rate of 1.50% of the average
daily net assets of the Fund. For the six months ended September 30, 1995,
the Fund incurred investment advisory fees of $3,761,190. RSIM has agreed to
reimburse the Fund for any annual operating expenses, including investment
advisory fees but excluding distribution fees and dividend expense for short
sales, which exceed the most stringent limits prescribed by any state in
which the Fund's shares are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of RS &
Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a
Director of RSIM, a Member of RS Group, and Chief Operating Officer of RS &
Co. Terry R. Otton, Chief Financial Officer of the Fund, is a Member of RS
Group and Chief Financial Officer of RS & Co. John P. Rohal, a Trustee of the
Fund, is a Member of RS Group and Director of Research for RS & Co. Paul H.
Stephens, Portfolio Manager, is a Member of RS Group and Chief Investment
Officer of 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 $14,882 for the six months
ended September 30, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution
services and has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act, which is reviewed annually by the Fund's Board of Trustees.
Under this Plan, RS & Co. is compensated for services in such capacity
including its expenses in connection with the promotion and distribution of
the Fund's shares. The distribution fee is calculated at an annual rate of
0.75% of the average daily net assets of the Fund. For the six months ended
September 30, 1995, the Fund incurred distribution fees of $1,880,571.
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as
broker-dealer, subject to Fund policies as stated in the prospectus,
regulatory constraints, and the ability of RS & Co. to provide competitive
prices and commission rates. All investment transactions in which RS & Co.
acts as a broker may only be executed on an agency basis. Subject to certain
constraints, the Fund may make purchases of securities from offerings or
underwritings in which RS & Co. has been retained by the issuer. For the six
months ended September 30, 1995, the Fund paid brokerage commissions of
$1,790 to RS & Co. which represented 0.35% of total commissions paid for the
period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the
cost of investments purchased or the proceeds from investments sold
(excluding options, securities sold short and short-term investments)
measured as a percentage of the Fund's average monthly investment portfolio
or the six months ended September 30, 1995, was 34%.
21
<PAGE>
THE CONTRARIAN FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $420,597,741. Accumulated net unrealized appreciation on
investments was $77,863,997, consisting of gross unrealized appreciation and
depreciation of $158,685,307, and $80,821,310, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the six months ended September 30, 1995, the cost of investments
purchased and the proceeds from investments sold (excluding options,
securities sold short and short-term investments) were $148,135,632 and
$179,383,847, respectively.
D. OPTIONS:
At September 30, 1995, 3.1% of the Fund's net assets consisted of premiums
paid for the purchase of S&P 500 Index put options to hedge portfolio long
investments against adverse price fluctuations, and 0.9% of the Fund's net
assets represent premiums paid for the purchase of put options on baskets of
securities of issuers in the technology sector of the overall market, which
we believe is most vulnerable to significant price decline.
The risk associated with the purchase of these put options is limited to the
premium originally paid. The premium paid for the purchase of these options
is included in the Fund's "Statement of Net Assets" as an investment and
subsequently mark-to-market daily to reflect the market value of the options.
"CULT 5", "CULT 6", "CULT 7", AND "CULT 8" TECHNOLOGY
PUT BASKET OPTIONS:
The "Cult 5", "Cult 6", "Cult 7", and "Cult 8" Technology Put Basket Options
(the "Options") are European style put options expiring December 26, 1995,
March 26, 1996, June 28, 1996, and September 27, 1996, respectively. The
Options, customized for the Fund, are based on the underlying price of
different groups of high technology stocks. The "Cult 5" Basket contains 13
securities, the "Cult 6" Basket contains 14 securities, the "Cult 7" Basket
contains 11 securities, and the "Cult 8" Basket contains 13 securities. The
market value of the Options is determined daily based on the price of the
underlying stocks, market volatility, exercise date, and other relevant
parameters.
E. SHORT SALES:
Short sales are transactions in which the Fund sells a security it does not
own, in anticipation of a decline in the market value of that security. To
complete such a transaction, the Fund must borrow the security to deliver to
the buyer upon the short sale; the Fund then is obligated to replace the
security borrowed by purchasing it in the open market at some later date.
The Fund will incur a loss if the market price of the security increases
between the date of the short sale and the date on which the Fund replaces
the borrowed security. The Fund will realize a gain if the security declines
in value between those dates. All short sales must be fully collateralized.
The Fund maintains the collateral in a segregated account consisting of cash
and/or U.S. Government securities sufficient to collateralize the market
value of its short positions. The Fund may also sell short "against the box"
(i.e. the Fund enters into a short sale as described above, while holding an
offsetting long position in the security which is sold short). If the Fund
enters into a short sale "against the box," it will segregate an equivalent
amount of securities owned by the Fund as collateral while the short sale is
outstanding. The Fund limits the value of short positions (excluding short
sales "against the box") to 25% of the Fund's total assets. At September 30,
1995, the Fund had 22% of its total assets in short positions. For the six
months ended September 30, 1995, the cost of investments purchased to cover
short sales and the proceeds from investments sold short were $97,008,883 and
$84,281,793, respectively.
22
<PAGE>
ROBERTSON, STEPHENS & COMPANY
F. RESTRICTED SECURITIES:
A restricted security is a security which has been purchased through a
private offering and cannot be resold to the general public without prior
registration under the Securities Act of 1933. At September 30, 1995, the
Fund held restricted securities with an aggregate value of $9,625,000, which
represented 1.9% of the Fund's total net assets. Restricted securities are
valued according to the guidelines and procedures adopted by the Fund's Board
of Trustees.
<TABLE>
<CAPTION>
SHARES COST VALUE ACQUISITION
SECURITY (000) (000) (000) DATE
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
Indochina Goldfields 233 $ 233 $1,165 3/24/94
117 117 585 3/28/94
750 1,469 3,750 5/26/94
600 3,000 3,000 8/18/95
Nescor Energy 125 125 375 4/18/94
250 500 750 5/05/94
</TABLE>
G. WARRANTS:
A warrant is an option which normally entitles the holder to purchase a
proportionate amount of a particular class of the issuer's securities at a
predetermined price during a specific period.
The following warrants were valued such that when the exercise price of the
warrant was less than that of the underlying common stock, the warrant was
priced using the modified Black-Scholes Valuation Formula. The Black-Scholes
Valuation Formula values a warrant by determining the differential between
the exercise price of the warrant and the current price of the underlying
stock based on a number of factors. These factors include, but are not
limited to, current price of the underlying stock, exercise price of the
warrant, time to expiration, assumed riskless rate of interest, compounded
rate of return on the stock, and standard deviation of the return on the
stock. If the exercise price was greater than that of the underlying common
stock, the warrant was valued at zero. This valuation method is subject to
frequent review and is in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees.
<TABLE>
<CAPTION>
SHARES COST VALUE EXPIRATION
SECURITY (000) (000) (000) DATE
- ------------------------------------------------------------
<S> <C> <C> <C> <C>
Carson Gold
Corporation - Warrants 125 $ 0 $ 0 12/23/95
Golden Star Resources -
Warrants 75 0 0 7/31/96
Queenstake Resources -
Warrants 500 0 0 3/18/97
Vengold, Inc. - Series A
Warrants 1,286 13 564 6/30/00
</TABLE>
H. 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. These
risks are heightened for investments in emerging markets countries. 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 September 30, 1995, the Fund had investments worth no
more than 32% of its total assets in any one foreign country.
23
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
CZECH REPUBLIC - 17.6%
Ceske Energeticke Zavody A.S. 22,300 $ 921,767
Komercni Banka A.S. - GDR(3) 40,000 773,200
SPT Telecom A.S. 4,000 384,528
Tabak A.S. 3,985 672,478
The Czech Republic Fund, Inc.(1) 27,500 354,063
- -------------------------------------------------------------------------------
3,106,036
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
HONG KONG - 3.5%
ASM Pacific Technology Ltd.(1) 460,000 440,265
Cathay Investment Fund Ltd. 170,000 180,297
- -------------------------------------------------------------------------------
620,562
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDIA - 0.6%
Sanghi Poyesters Limited - GDS(4) 30,000 97,500
- -------------------------------------------------------------------------------
97,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDONESIA - 10.7%
First Dynasty Mines, Ltd. 100,000 557,994
PT Bank Dagang Nasional Indonesia, Foreign(1,5) 350,000 320,569
PT Dynaplast, Foreign(1,5,6) 510,000 472,743
PT Multibreeder Adirama, Foreign(5,6) 749,000 413,264
PT Sumalindo Lestari Jaya, Foreign (1,5) 130,000 117,634
- -------------------------------------------------------------------------------
1,882,204
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
KOREA - 12.1%
LG Electronics, Inc. - GDR(3) 70,000 875,000
Pohang Iron & Steel Company, Ltd. - ADR(1,2) 10,700 351,763
Samsung Electronics - GDS(4) 12,808 909,368
- -------------------------------------------------------------------------------
2,136,131
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MALAYSIA - 10.0%
Aokam Perdana Berhad(1) 300,000 603,105
Land and General Berhad(1) 200,000 525,478
Lingui Developments Berhad(1) 300,000 632,962
- -------------------------------------------------------------------------------
1,761,545
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MEXICO - 12.3%
Cementos de Mexico, S.A. - ADR(1,2) 40,000 $ 322,500
Grupo Industrial Durango S.A. de C.V. - ADR(2) 30,000 270,000
Grupo Tribasa S.A. de C.V. - ADR(2) 75,000 553,125
Industrias Penoles S.A. 75,000 282,132
Seguros Comercial America, S.A. Class B 540,000 133,730
Vitro Sociedad Anonima - ADR(1,2) 75,000 609,375
- -------------------------------------------------------------------------------
2,170,862
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MOROCCO - 1.2%
C. Oriental 6,472 218,218
- -------------------------------------------------------------------------------
218,218
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PHILIPPINES - 8.8%
Filinvest Land, Inc. 2,910,000 938,169
International Container Terminal Services, Inc. 600,000 379,966
Negros Navigation Company, Inc. 1,268,500 175,268
Robinson's Land Corporation, Series B 443,600 62,994
- -------------------------------------------------------------------------------
1,556,397
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
THAILAND - 13.5%
Alphatec Electronics Company, Ltd., Foreign(1,5,6) 30,000 411,237
Bangkok Bank Company, Ltd., Foreign(1,5) 23,000 258,458
GSS Array Technologies Company, Ltd., Foreign(1,5) 230,000 1,063,160
Regional Container Lines, Foreign(1,5,6) 44,960 644,973
- -------------------------------------------------------------------------------
2,377,828
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
VENEZUELA - 5.4%
Corimon C.A. Sponsored - ADR(1,2) 50,000 275,000
Siderurgica Venezolana Sivensa - ADR(1,2,6) 330,000 672,441
- -------------------------------------------------------------------------------
947,441
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 95.7%(Cost: $18,489,068) 16,874,724
- -------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
<CAPTION>
SCHEDULE OF NET ASSETS (CONTINUED)
SEPTEMBER 30, 1995 (UNAUDITED) CONTRACTS VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
PUT OPTIONS
- -------------------------------------------------------------------------------
S&P 500 INDEX PUT OPTIONS
December 1995 525 100 $ 14,375
December 1995 550 50 16,875
December 1995 560 100 45,000
- -------------------------------------------------------------------------------
TOTAL PUT OPTIONS - 0.4% (Cost: $245,750) 76,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS - 96.1% (Cost: $18,734,818) 16,950,974
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------------
Czech Koruna 106,426
- -------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 0.6% 106,426
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OTHER ASSETS, NET - 3.3% 588,614
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $17,646,014
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
(1) Income producing security.
(2) ADR - American Depository Receipt.
(3) GDR - Global Depository Receipt.
(4) GDS - Global Depository Shares.
(5) Foreign - Foreign Shares.
(6) See 1a in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
STATEMENT OF NET ASSETS
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------------
Investments, at value (Cost: $18,734,818) $ 16,950,974
Cash and cash equivalents 106,426
Receivable for investments sold 1,313,882
Receivable for fund shares subscribed 67,428
Receivable from Adviser 130,891
Dividends/interest receivable 31,341
Tax reclaim receivable 124
- -------------------------------------------------------------------------------
TOTAL ASSETS 18,601,066
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------
Payable for investments purchased 632,209
Payable for fund shares redeemed 24,643
Payable, other 295,787
Tax withholding 2,413
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 955,052
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $ 17,646,014
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in capital 20,371,742
Accumulated undistributed net investment gain 6,462
Accumulated net realized (loss) from investments (803,806)
Accumulated net realized (loss) from options (128,100)
Accumulated net realized (loss) from securities sold short (17,500)
Net unrealized (depreciation) on investments (1,614,284)
Net unrealized (depreciation) on options (168,500)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $ 17,646,014
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRICING OF SHARES: $ 9.09
Net Asset Value, offering and redemption price per share
(net assets of $17,646,014 applicable to 1,940,852 shares of
beneficial interest outstanding with no par value)
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------------
Interest $ 53,112
Dividends (Net of foreign tax of $13,286) 104,379
- -------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 157,491
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
Investment advisory fees 96,227
Custodian and transfer agent fees 39,398
Professional fees 38,188
Distribution fees 27,759
Shareholder reports 24,407
Trustees' fees and expenses 11,250
Registration and filing fees 19,517
Other 6,820
Dividend expense for securities sold short 551
- -------------------------------------------------------------------------------
264,117
Less: Reimbursement from Adviser (86,714)
- -------------------------------------------------------------------------------
TOTAL EXPENSES, NET 177,403
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INVESTMENT (LOSS) (19,912)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REALIZED (LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS,
OPTIONS AND SECURITIES SOLD SHORT
- -------------------------------------------------------------------------------
Net realized (loss) from investments (86,007)
Net realized (loss) from options (128,100)
Net realized (loss) from securities sold short (17,500)
Net change in unrealized appreciation on investments 704,682
Net change in unrealized (depreciation) on options (168,500)
- -------------------------------------------------------------------------------
TOTAL NET REALIZED (LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) 304,575
ON INVESTMENTS, OPTIONS AND SECURITIES SOLD SHORT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 284,663
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an intergal part of these financial statements.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE PERIOD
9/30/95 5/2/94 -
(UNAUDITED) 3/31/95
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------
Net investment (loss)/income $ (19,912) $ 103,473
Net realized (loss) from investments (86,007) (880,354)
Net realized (loss) from options (128,100) -
Net realized (loss)/gain from securities sold short (17,500) 344,728
Net change in unrealized appreciation/(depreciation)
on investments 704,682 (2,318,966)
Net change in unrealized (depreciation) on options (168,500) -
- -------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS 284,663 (2,751,119)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Net investment income - (77,099)
Realized gains on investments - (182,173)
- -------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (259,272)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions 9,016,223 11,355,519
- -------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 9,016,223 11,355,519
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 9,300,886 8,345,128
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------
Beginning of period 8,345,128 0
End of period $ 17,646,014 $ 8,345,128
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE PERIOD
FOR A SHARE OUTSTANDING 9/30/95 5/2/94 -
THROUGHOUT EACH PERIOD: (UNAUDITED) 3/31/95
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
Net Asset Value, beginning of period $ 8.57 $ 10.00
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net investment (loss)/income (0.01) 0.06
Net realized (loss) and unrealized appreciation/
(depreciation) on investments 0.53 (1.36)
Total Increase/(Decrease) in Net Assets Resulting
from Operations 0.52 (1.30)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Distributions from net investment income - (0.04)
Distributions from realized gains on investments - (0.09)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 9.09 $ 8.57
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL RETURN 6.07% (13.14)%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------
Net Assets, end of period $ 17,646,014 $ 8,345,128
Ratio of Expenses to Average Net Assets 2.29% 3.15%
Ratio of Net Investment Income/(Loss) to Average
Net Assets (0.26)% 0.72%
Portfolio Turnover Rate 65% 124%
</TABLE>
Per share data has been determined by using the average number of shares
outstanding throughout the period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
If the Fund had paid all of its expenses and there had been no reimbursement by
the Adviser, the ratio of expenses to average net assets for the year ended
March 31, 1995, and the six months ended September 30, 1995, would have been
3.46% and 3.41%, respectively, and the ratio of net investment income/(loss)
to average net assets would have been 0.41% and (1.38)%, respectively.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Developing Countries 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 non-diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on April 29, 1994, and it started to offer shares to the public on May 2,
1994. The Trust offers nine series of shares -- The Robertson Stephens Emerging
Growth Fund, The Robertson Stephens Value+Growth Fund, The Robertson Stephens
Contrarian Fund, The Robertson Stephens Developing Countries Fund, The Robertson
Stephens Growth & Income Fund, The Robertson Stephens Partners Fund, The
Robertson Stephens Information Age Fund (effective November 15, 1995), The
Robertson Stephens Global Natural Resources Fund (effective November 15, 1995),
and The Robertson Stephens Global Low-Priced Stock Fund (effective November 15,
1995). The assets for each series are segregated and accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities 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 September 30, 1995, 89% 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
September 30, 1995, 11% of the Fund's long positions were valued using these
guidelines and procedures.
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy 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 provision for federal taxes for the quarter ended September
30, 1995, as it does not expect to incur any federal income tax for the year.
The Fund expects to comply with requirements of the Internal Revenue Code for
qualifying as a regulated investment company so as not to be subject to federal
income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, sold, or sold short (trade date). Realized gains and losses on
securities transactions are determined on the basis of specific identification.
21
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS
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 (loss) accounts in such a manner as to
approximate amounts available for future distributions to shareholders, if any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the six months ended
September 30, 1995, and for the period ended March 31, 1995, were as follows:
<TABLE>
<CAPTION>
4/1/95 - 9/30/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,137,211 $ 20,022,419
Shares reinvested - -
- -------------------------------------------------------------------------------
2,137,211 20,022,419
- -------------------------------------------------------------------------------
Shares redeemed (1,170,691) (11,006,196)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net increase 966,520 $ 9,016,223
- -------------------------------------------------------------------------------
<CAPTION>
5/2/94 - 3/31/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 3,093,680 $30,436,016
Shares reinvested 26,976 252,773
- -------------------------------------------------------------------------------
3,120,656 30,688,789
- -------------------------------------------------------------------------------
Shares redeemed (2,146,325) (19,333,270)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net increase 974,331 $ 11,355,519
- -------------------------------------------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Fund's Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, L.P. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co."), the Fund's Distributor, is the sole Limited Partner, an
investment advisory fee calculated at an annual rate of 1.25% of the average
daily net assets of the Fund. For the six months ended September 30, 1995, the
Fund incurred investment advisory fees of $96,227. RSIM has agreed to reimburse
the Fund for any annual operating expenses, including investment advisory fees
but excluding distribution fees and dividend expense for short sales, which
exceed the most stringent limits prescribed by any state in which the Fund's
shares are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of
RS & Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a Director
of
22
<PAGE>
ROBERTSON, STEPHENS & COMPANY
RSIM, a Member of RS Group, and Chief Operating Officer of RS & Co. Terry R.
Otton, Chief Financial Officer of the Fund, is a Member of RS Group and Chief
Financial Officer of RS & Co. John P. Rohal, a Trustee of the Fund, is a Member
of RS Group and Director of Research for RS & Co. All affiliated and access
persons, as defined in the 1940 Act, follow strict guidelines and policies on
personal trading as outlined in the Fund's Code of Ethics.
C. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested persons
of the Trust, as defined in the 1940 Act, collectively received compensation and
reimbursement of expenses of $11,250 for the six months ended September 30,
1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution services
and has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940
Act, which is 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 September 30, 1995, the Fund
incurred distribution fees of $27,759.
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as broker-dealer,
subject to Fund policies as stated in the prospectus, regulatory constraints,
and the ability of RS & Co. to provide competitive prices and commission rates.
All investment transactions in which RS & Co. acts as a broker may only be
executed on an agency basis. Subject to certain constraints, the Fund may make
purchases of securities from offerings or underwritings in which RS & Co. has
been retained by the issuer. For the six months ended September 30, 1995, the
Fund paid brokerage commissions of $0 to RS & Co.
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
securities sold short and short-term investments), measured as a percentage of
the Fund's average monthly investment portfolio for the six months ended
September 30, 1995, was 65%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax purposes
was $18,734,750. Accumulated net unrealized depreciation on investments was
$1,783,664, consisting of gross unrealized appreciation and depreciation of
$1,231,563 and $3,015,227, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the six months ended September 30, 1995, the cost of investments purchased
and the proceeds from investments sold (excluding securities sold short and
short-term investments) were $16,852,866 and $8,860,983, respectively.
D. OPTIONS:
At September 30, 1995, 1.4% of the Fund's net assets consisted of premiums paid
for the purchase of S&P 500 Index put options to hedge portfolio long
investments against adverse price fluctuations. The risk associated with the
purchase of these put options is limited to the premium originally paid. The
premium paid for the purchase of these options is included in the Fund's
"Statement of Net Assets" as an investment and is subsequently market-to-market
daily to reflect the market value of the options.
E. SHORT SALES:
Short sales are transactions in which the Fund sells a security it does not own,
in anticipation of a decline in the market value of that security. To complete
such a transaction, the Fund must borrow the security to deliver to the buyer
upon the short sale; the Fund then is obligated to replace the security borrowed
by purchasing it in the open market at some later date. The Fund will incur a
loss if the market price of the security increases
23
<PAGE>
THE DEVELOPING COUNTRIES FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
between the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund will realize a gain if the security declines in
value between those dates. All short sales must be fully collateralized. The
Fund maintains the collateral in a segregated account consisting of cash and/or
U.S. government securities sufficient to collateralize the market value of its
short positions. The Fund may also sell short "against the box" (i.e., the Fund
enters into a short sale as described above, while holding an offsetting long
position in the security which is sold short). If the Fund enters into a short
sale "against the box," it will segregate an equivalent amount of securities
owned by the Fund as collateral while the short sale is outstanding. The Fund
limits the value of short sell positions (excluding short sales "against the
box") to 25% of the Fund's total assets. At September 30, 1995, the Fund had 0%
of the Fund's total assets in short positions. For the six months ended
September 30, 1995, the cost of investments purchased to cover short sales and
the proceeds from investments sold short were $70,500 and $0, respectively.
F. 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. These risks are
heightened for investments in emerging markets countries. 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
September 30, 1995, the Fund had investments worth no more than 20% of its total
assets in any one foreign country.
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
BIOTECHNOLOGY - 0.7%
Cephalon, Inc. 43,300 $ 1,190,750
- -------------------------------------------------------------------------
$ 1,190,750
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 3.2%
Cirrus Logic, Inc. 19,000 1,087,750
Cyrix Corporation 38,200 1,456,375
Mylex Corporation 60,000 1,020,000
Read-Rite Corporation 42,500 1,551,250
Western Digital Corporation 46,050 731,044
- -------------------------------------------------------------------------
5,846,419
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
COMPUTER SOFTWARE - 8.5%
Legato Systems Inc. 10,000 265,000
National Instruments Corporation 36,700 743,175
NetManage, Inc. 20,200 479,750
Number Nine Visual Technology Corporation 36,700 605,550
Premenos Technology Corporation 36,400 1,183,000
Remedy Corporation 22,400 789,600
Sierra On-Line, Inc. 19,900 781,075
Softkey International, Inc. 100,900 4,464,825
Spectrum Holobyte, Inc. 216,900 2,738,362
Symantec Corporation 88,900 2,667,000
Tivoli Systems, Inc. 23,600 669,650
- -------------------------------------------------------------------------
15,386,987
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 12.5%
Baby Superstore, Inc. 22,450 1,013,057
Books a Million, Inc. 106,400 1,875,300
Cannondale Corporation 91,700 1,513,050
Creative Computers, Inc. 28,700 846,650
Gymboree Corporation 105,100 3,166,138
Hollywood Entertainment 25,000 539,062
Kohls Corporation 74,100 3,843,938
Micro Warehouse, Inc. 21,200 969,900
Nautica Enterprises, Inc. 67,700 2,318,725
PetSmart, Inc. 117,150 3,953,813
Tiffany & Co.(1) 62,700 2,625,562
- -------------------------------------------------------------------------
22,665,195
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
CONSUMER TECHNOLOGY - 4.7%
Acclaim Entertainment 141,400 $ 3,641,050
CDW Computer Centers Inc. 21,200 1,128,900
Electronic Arts 98,700 3,627,175
- -------------------------------------------------------------------------
8,397,175
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
DATA COMMUNICATIONS/TELECOMMUNICATIONS - 6.0%
3Com Corporation 84,900 3,862,950
Bay Networks 37,000 1,974,875
Colonial Data Technologies 91,600 1,694,600
Network General Corporation 38,300 1,579,875
P-Com, Inc. 38,800 1,736,300
- -------------------------------------------------------------------------
10,848,600
- -------------------------------------------------------------------------
ENVIRONMENTAL SERVICES - 2.7%
United Waste Systems, Inc. 118,800 4,959,900
- -------------------------------------------------------------------------
4,959,900
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
FINANCIAL SERVICES - 1.5%
Credit Acceptance Corporation 100,000 2,700,000
- -------------------------------------------------------------------------
2,700,000
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
HEALTH CARE SERVICES - 12.1%
Advantage Health 60,800 2,067,200
Arbor Health Care Company 184,600 4,291,950
Express Scripts, Inc. Class A 2,000 88,000
Horizon/CMS Healthcare Corporation 157,700 3,587,675
Mariner Health Group, Inc. 150,800 2,130,050
Pediatrix Medical Group Inc. 30,000 615,000
PhyCor, Inc. 138,450 4,741,912
United Dental Care, Inc. 11,500 345,000
Value Health, Inc. 151,600 4,017,400
- -------------------------------------------------------------------------
21,884,187
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
HEALTH MAINTENANCE ORGANIZATIONS - 19.8%
Coventry Corporation 115,600 $ 2,283,100
Healthsource, Inc. 96,200 4,629,625
Mid Atlantic Medical Services 222,900 4,374,412
Oxford Health Plans 95,400 6,940,350
PacifiCare Health Systems 87,200 5,929,600
Quintiles Transnational Corporation 33,200 1,958,800
Sierra Health Services 98,000 2,450,000
United Healthcare Corporation(1) 114,800 5,610,850
Wellcare Management Group, Inc. 66,300 1,541,475
- -------------------------------------------------------------------------
35,718,212
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
LONG TERM HEALTH CARE - 3.9%
Health Care and Retirement, Inc. 135,000 4,336,875
The Multicare Companies, Inc. 112,900 2,624,925
- -------------------------------------------------------------------------
6,961,800
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
MEDICAL SERVICES - 5.5%
American Oncology Resources, Inc. 14,000 602,000
CompDent Corporation 56,000 1,638,000
Exogen, Inc. 21,200 312,700
HBO & Company(1) 90,100 5,631,250
MedPartners, Inc. 55,000 1,732,500
- -------------------------------------------------------------------------
9,916,450
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
OTHER SERVICES - 6.0%
Corporate Express, Inc. 155,300 3,785,437
Landstar Systems, Inc. 129,000 3,112,125
Sylvan Learning Systems, Inc. 124,700 3,959,225
- -------------------------------------------------------------------------
10,856,787
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
RESTAURANTS - 1.8%
Boston Chicken, Inc. 78,000 2,037,750
Rock Bottom Restaurants 71,500 1,161,875
- -------------------------------------------------------------------------
3,199,625
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - 3.8%
Act Manufacturing 25,000 $ 318,750
Burr-Brown Corporation 46,100 1,751,800
Integrated Device Technology, Inc. 34,000 850,000
Synopsys, Inc. 30,800 947,100
VLSI Technology, Inc. 84,900 2,907,825
- -------------------------------------------------------------------------
6,775,475
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL COMMON STOCKS - 92.7% (Cost:$134,241,345) 167,307,562
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS
- -------------------------------------------------------------------------
Applied Micro Circuits Corporation
Series 3 - Restricted(2) 2,381 43,953
Managed Health Network, Inc.
Series B - Restricted(2) 500 72,930
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 0.1%(Cost:$100,001) 116,883
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL INVESTMENTS - 92.8%(Cost:$134,341,346) 167,424,445
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------
Cash 461
Repurchase Agreement 15,755,000
State Street Bank and Trust Company, 5.25%, dated
9/29/95, due 10/2/95, maturity value $15,759,595
(collateralized by $14,320,000 par value U.S. Treasury
Notes, 7.625%, due 11/15/22).
- -------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 8.7% 15,755,461
- -------------------------------------------------------------------------
OTHER ASSETS, NET - (1.5)% (2,717,463)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL NET ASSETS - 100% $180,462,443
- -------------------------------------------------------------------------
</TABLE>
(1) Income producing security.
(2) See 4d in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------
ASSETS
- -------------------------------------------------------------------------
<S> <C>
Investments, at value (Cost: $134,341,346) $167,424,445
Cash and cash equivalents 15,755,461
Receivable for investments sold 105,300
Receivable for fund shares subscribed 1,015,446
Dividends/interest receivable 12,589
- -------------------------------------------------------------------------
TOTAL ASSETS 184,313,241
- -------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------
Payable for investments purchased 3,559,438
Payable for fund shares redeemed 136,209
Accrued expenses 155,151
- -------------------------------------------------------------------------
TOTAL LIABILITIES 3,850,798
- -------------------------------------------------------------------------
TOTAL NET ASSETS $180,462,443
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------
Paid in capital 135,153,948
Accumulated net realized gain from investments 12,225,396
Net unrealized appreciation on investments 33,083,099
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
TOTAL NET ASSETS $180,462,443
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
PRICING OF SHARES: $ 20.43
Net Asset Value, offering and redemption price per
share (net assets of $180,462,443 applicable to
8,832,733 shares of beneficial interest outstanding
with no par value)
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -------------------------------------------------------------------------
Interest $ 577,465
Dividends 20,300
Other Income 31,441
- -------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 629,206
- -------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------
Investment advisory fees 861,209
Distribution fees 215,302
Custodian and transfer agent fees 169,600
Professional fees 40,400
Shareholder reports 28,300
Trustees' fees and expenses 11,250
Registration and filing fees 17,250
Other 7,275
- -------------------------------------------------------------------------
TOTAL EXPENSES 1,350,586
- -------------------------------------------------------------------------
NET INVESTMENT (LOSS) (721,380)
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/
(DEPRECIATION) ON INVESTMENTS
- -------------------------------------------------------------------------
Net realized gain from investments 8,396,078
Net change in unrealized appreciation on investments 13,653,332
- -------------------------------------------------------------------------
Total Net Realized Gain and Unrealized
Appreciation on Investments 22,049,410
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $21,328,030
- -------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
9/30/95 YEAR ENDED
(UNAUDITED) 3/31/95
- --------------------------------------------------------------------------------
OPERATIONS
- --------------------------------------------------------------------------------
<S> <C> <C>
Net investment (loss) $ (721,380) $ (1,654,135)
Net realized gain from investments 8,396,078 6,598,824
Net change in unrealized appreciation on investments $ 13,653,332 15,035,796
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 21,328,030 19,980,485
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------
Realized gains on investments (3,856,609) (19,811,863)
- --------------------------------------------------------------------------------
Total Distributions (3,856,609) (19,811,863)
- --------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
Net (decrease)/increase in net assets resulting
from capital shares transaction (19,284,314) 13,915,017
- --------------------------------------------------------------------------------
Total Capital Share Transactions (19,284,314) 13,915,017
- --------------------------------------------------------------------------------
TOTAL (DECREASE)/INCREASE IN NET ASSETS (1,812,893) 14,083,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------
Beginning of period 182,275,336 168,191,697
End of period $180,462,443 $182,275,336
- --------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED THREE MONTHS
FOR A SHARE OUTSTANDING 9/30/95 YEAR ENDED YEAR ENDED ENDED YEAR ENDED YEAR ENDED YEAR ENDED
THROUGHOUT EACH PERIOD: (UNAUDITED) 3/31/95 3/31/94 3/31/93 12/31/92 12/31/91 12/30/90
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.36 $ 18.37 $ 14.71 $ 16.77 $ 17.50 $ 11.67 $ 11.46
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment (loss) (0.08) (0.17) (0.40) (0.02) (0.15) (0.09) --
Net realized gain/(loss) and unrealized
appreciation/(depreciation)
on investments 2.57 2.26 4.06 (2.04) (0.31) 6.82 1.07
- -----------------------------------------------------------------------------------------------------------------------------------
Total Increase/(Decrease) in Net Assets
Resulting from Operations 2.49 2.09 3.66 (2.06) (0.46) 6.73 1.07
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions from realized gains
on investments (0.42) (2.10) -- -- (0.27) (0.86) --
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $20.43 $18.36 $18.37 $14.71 $16.77 $17.50 $11.67
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 13.80% 12.01% 24.88% (12.28)% (2.55)% 58.70% 9.57%
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period (000's) $180,462 $182,275 $168,192 $228,893 $277,531 $141,929 $22,931
Ratio of Expenses to Average Net Assets 1.57% 1.56% 1.60% 1.54% 1.49% 1.59% 1.88%
Ratio of Net Investment (Loss) to
Average Net Assets (0.84)% (0.96)% (1.27)% (0.61)% (0.92)% (0.68)% (0.02)%
Portfolio Turnover Rate 107% 280% 274% 43% 124% 147% 272%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Per share data for each of the periods has been determined by using the
average number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Notes to Financial Statements
The Robertson Stephens Emerging Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Fund became effective to offer shares to
the public on November 30, 1987. The Trust offers nine series of shares --
The Robertson Stephens Emerging Growth Fund, The Robertson Stephens
Value+Growth Fund, The Robertson Stephens Contrarian Fund, The Robertson
Stephens Developing Countries Fund, The Robertson Stephens Growth & Income
Fund, The Robertson Stephens Partners Fund, The Robertson Stephens
Information Age Fund (effective November 15, 1995), The Robertson Stephens
Global Natural Resources Fund (effective November 15, 1995), and The
Robertson Stephens Global Low-Priced Stock Fund (effective November 15,
1995). The assets for each series are segregated and accounted for
separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities are valued at the last sale price on the
principal exchange or market on which they are traded; or, if there were no
sales that day, at the mean between the closing bid and asked prices. At
September 30, 1995, 99.9% of the Fund's portfolio was valued in this manner.
Securities for which market quotations are not readily available are valued
at their fair value as determined in accordance with the guidelines and
procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes in
the issuer's financial position, and any other event which could have a
significant impact on the value of the security. At September 30, 1995,
approximately 0.1% of the Fund's portfolio was valued using these guidelines
and procedures.
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to
ensure that the collateral's market value equals at least 100% of the
repurchase price under the agreement. However, in the event of default or
bankruptcy, realization and/or retention of the collateral may be subject to
legal proceedings. The Fund's policy is to limit repurchase agreement
transactions to those parties deemed by the Fund's Investment Advisor to have
satisfactory creditworthiness.
C. FEDERAL INCOME TAXES:
The Fund has made no provision for federal income taxes for the six months
ended September 30, 1995, as it does not expect to incur any federal income
tax for the year. The Fund expects to comply with requirements of the
Internal Revenue Code for qualifying as a regulated investment company so as
not to be subject to federal income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased and sold (trade date). Realized gains and losses on securities
transactions are determined on the basis of specific identification.
E. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is
accrued and recorded daily.
F. CAPITAL ACCOUNTS:
The Fund follows the provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
and Financial Statement Presentation of Income, Capital Gain and Return of
Capital Distributions by Investment Companies" ("SOP"). The purpose of this
SOP is to report undistributed net investment income and accumulated net
realized gain (loss) accounts in such a manner as to approximate amounts
available for future distributions to shareholders, if any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the six months ended
September 30, 1995, and for the year ended March 31, 1995, were as follows:
<TABLE>
<CAPTION>
4/1/95 - 9/30/95 SHARES AMOUNT
- ---------------------------------------------
<S> <C> <C>
Shares sold 1,789,043 $ 33,855,779
Shares reinvested 203,101 3,716,735
- ---------------------------------------------
1,992,144 37,572,514
- ---------------------------------------------
Shares redeemed (3,084,717) (56,856,828)
- ---------------------------------------------
- ---------------------------------------------
Net (decrease) (1,092,573) $(19,284,314)
- ---------------------------------------------
- ---------------------------------------------
4/1/95 - 9/30/95 SHARES AMOUNT
- ---------------------------------------------
Shares sold 5,163,070 $ 94,127,247
Shares reinvested 1,070,767 18,663,580
- ---------------------------------------------
6,233,837 112,790,827
- ---------------------------------------------
Shares redeemed (5,463,027) (98,875,810)
- ---------------------------------------------
- ---------------------------------------------
Net increase 770,810 $ 13,915,017
- ---------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, Inc. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co"), the Fund's Distributor, is an affiliate, an investment
advisory fee calculated at an annual rate of 1.00% of the average daily net
assets of the Fund. For the six months ended September 30, 1995, the Fund
incurred investment advisory fees of $861,209. RSIM has agreed to reimburse
the Fund for any annual operating expenses, including investment advisory
fees, but excluding distribution fees, which exceed the most stringent limits
prescribed by any state in which the Fund's shares are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of RS &
Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a
Director of RSIM, a Member of RS Group, and Chief Operating Officer of RS &
Co. Terry R. Otton, Chief Financial Officer of the Fund, is a Member of RS
Group and Chief Financial Officer of RS & Co. John P. Rohal, a Trustee of the
Fund, is a Member of RS Group and Director of Research for RS & Co. All
affiliated and access persons, as defined in the 1940 Act, follow strict
guidelines and policies on personal trading as outlined in the Fund's Code of
Ethics.
C. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested
persons of the Trust, as defined in the 1940 Act, collectively received
compensation and reimbursement of expenses of $11,250 for the six months
ended September 30, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co., for distribution
services and has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act, which is reviewed and approved annually by the Fund's Board of
Trustees. Under this Plan, RS & Co. is compensated for services in such
capacity including its expenses
19
<PAGE>
THE EMERGING GROWTH FUND SEMI-ANNUAL RESULTS
Notes to Financial Statements (continued)
in connection with the promotion and distribution of the Fund's
shares. The distribution fee is calculated at an annual rate of 0.25%
of the average daily net assets of the Fund. For the quarter ended
September 30, 1995, the Fund incurred distribution fees of $215,302.
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as
broker-dealer, subject to Fund policies as stated in the prospectus,
regulatory constraints, and the ability of RS & Co. to provide competitive
prices and commission rates. All investment transactions in which RS & Co.
acts as a broker may only be executed on an agency basis. Subject to certain
constraints, the Fund may make purchases of securities from offerings or
underwritings in which RS & Co. has been retained by the issuer. For the six
months ended September 30, 1995, the Fund paid brokerage commissions of
$67,905 to RS & Co. which represented 32% of total commissions paid for the
period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the
cost of investments purchased or the proceeds from investments sold
(excluding short-term investments) measured as a percentage of the Fund's
average monthly investment portfolio for the six months ended September 30,
1995, was 107%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $136,401,752. Accumulated net unrealized appreciation on
investments was $31,022,693, consisting of gross unrealized appreciation and
depreciation of $37,980,974 and $6,958,281, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the six months ended September 30, 1995, the cost of investments
purchased and the proceeds from investments sold (excluding short-term
investments) were $160,604,878 and $186,555,703, respectively.
D. RESTRICTED SECURITIES:
A restricted security is a security which has been purchased through a
private offering and cannot be resold to the general public without prior
registration under the Securities Act of 1933. If the security is
subsequently registered and resold, the issuers would bear the expense of all
registrations at no cost to the Fund. At September 30, 1995, the Fund held
restricted securities with an aggregate value of $116,883 which represented
0.1% of the Fund's total net assets.
<TABLE>
<CAPTION>
ACQUISITION
SECURITY SHARES COST VALUE DATE
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Applied Micro Circuits Corporation
Convertible Preferred Stock, Series 3 2,381 $50,001 $43,953 9/14/87
- -----------------------------------------------------------------------------------
Managed Health Network, Inc.
Convertible Preferred Stock, Series B 500 $50,000 $72,930 12/30/87
- -----------------------------------------------------------------------------------
</TABLE>
Each of the above securities was valued based on its common share price
equivalent. Each common share was valued at its fair value according to the
guidelines and procedures adopted by the Fund's Board of Trustees as outlined
in Note 1.a., paragraph 2.
At September 30, 1995, Applied Micro Circuits Corporation Convertible
Preferred Stock, Series 3 was valued at the common share price equivalent of
$1.75, assuming the 2,381 shares of the Convertible Preferred Stock were
converted to 25,116 shares of common stock. Managed Health Network, Inc.
Convertible Preferred Stock, Series B was valued at the common share price
equivalent of $1.6336, assuming the 500 shares of the Convertible Preferred
Stock were converted to 44,642 shares of common stock.
20
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- -------------------------------------------------------------------------------
AEROSPACE -- 1.1%
ECC International Corporation 60,000 $ 727,500
Tracor, Inc. 25,000 412,500
- -------------------------------------------------------------------------------
1,140,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ALUMINUM -- 0.9%
MAXXAM, Inc. 908,812
- -------------------------------------------------------------------------------
908,812
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BANKS -- 7.4%
Banc One Corporation(1) 32,000 1,168,000
Bank of New York - Warrants Exp. 11/29/98 22,500 722,813
Commercial Federal Corporation 30,000 1,072,500
Corestates Financial Corporation(1) 17,500 640,938
First Interstate Bancorp(1) 7,500 755,625
Keystone Financial, Inc.(1) 17,500 560,000
Marshall & Ilsley Corporation(1) 18,000 452,250
Mellon Bank Corporation(1) 25,000 1,115,625
Norwest Corporation(1) 25,000 818,750
Premier Bancorp, Inc.(1) 10,000 222.500
- -------------------------------------------------------------------------------
7,529,001
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BIOTECHNOLOGY -- 1.5%
Bio-Vascular, Inc. 25,000 450,000
Genentech, Inc. 12,000 583,500
Molecular Dynamics, Inc. 60,000 480,000
- -------------------------------------------------------------------------------
1,513,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
BUSINESS SERVICES -- 0.9%
Moore Corporation Ltd.(1) 30,000 603,750
US Office Products Company 20,000 302,500
- -------------------------------------------------------------------------------
906,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CHEMICALS -- 1.9%
Applied Extrusion Technologies, Inc. 25,000 459,375
W.R. Grace & Company(1) 30,000 1,468,500
- -------------------------------------------------------------------------------
1,927,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CLOTHING/RETAIL -- 2.3%
Sport-Haley, Inc. 50,000 475,000
Vans, Inc. 126,000 913,500
Warnaco Group, Inc., Class A(1) 40,000 960,000
- -------------------------------------------------------------------------------
2,348,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
COMMERCIAL SERVICES -- 4.7%
America Online, Inc. 8,500 $ 584,375
Educational Alternatives, Inc. 65,000 991,250
Manpower, Inc.(1) 30,000 870,000
National Education Corporation 125,000 1,000,000
Personnel Group of America, Inc. 50,300 704,200
Prepaid Legal Services, Inc. 85,000 658,750
- -------------------------------------------------------------------------------
4,808,575
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMMUNICATIONS -- 3.2%
AT&T Corporation(1) 18,000 1,183,500
Data Translation, Inc. 55,000 976,250
DSP Communications, Inc. 32,000 1,056,000
- -------------------------------------------------------------------------------
3,215,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS -- 5.6%
Cirrus Logic, Inc. 17,000 973,250
Cyrix Corporation 22,000 838,750
Pinnacle Systems, Inc. 15,000 461,250
PixTech, Inc. 35,000 323,750
Rasterops 65,000 511,875
Seagate Technology, Inc. 25,000 1,053,125
Sequent Computer Systems, Inc. 40,000 795,000
Western Digital Corporation 45,000 714,375
- -------------------------------------------------------------------------------
5,671,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE -- 2.4%
Accom, Inc. 50,000 437,500
Adobe Systems, Inc.(1) 16,000 828,000
Computer Management Sciences, Inc. 10,400 145,600
Oracle Corporation 27,000 1,036,125
- -------------------------------------------------------------------------------
2,447,225
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Consumer Electronics -- 3.4%
Duracraft Corporation 27,500 1,240,938
Mackie Designs, Inc. 55,000 797,500
Philips Electronics(1) 15,000 731,250
Scientific Games Holdings Corporation 17,000 635,375
- -------------------------------------------------------------------------------
3,405,063
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DATA PROCESSING SERVICES -- 1.6%
Affiliated Computer Services, Inc., Class A 21,000 614,250
First Data Corporation(1) 16,000 992,000
- -------------------------------------------------------------------------------
1,606,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
DATA TELECOMMUNICATIONS -- 1.2%
Comdial Corporation 55,000 687,500
Davox Corporation 45,000 523,125
- -------------------------------------------------------------------------------
1,210,625
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
ELECTRONIC COMPONENTS -- 3.1%
Advance Circuits, Inc. 18,000 $398,250
Flextronics International, Ltd. 45,000 1,158,750
Identix, Inc. 30,300 393,900
ITI Technologies, Inc. 45,000 1,220,625
- -------------------------------------------------------------------------------
3,171,525
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ENERGY SERVICES -- 5.8%
Falcon Drilling Company, Inc. 70,000 892,500
Kerr-McGee Corporation(1) 16,500 915,750
Noble Drilling Corporation(1) 70,000 542,500
Petroleum Geo-Services, Sponsored ADR(2) 33,000 808,500
Ranger Oil, Ltd.(1) 60,000 360,000
Schlumberger, Ltd.(1) 18,500 1,207,125
Sonat Offshore Drilling Company(1) 12,500 407,813
Weatherford Enterra, Inc. 55,000 715,000
- -------------------------------------------------------------------------------
5,849,188
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.9%
Sirrom Capital Corporation(1) 50,000 906,250
- -------------------------------------------------------------------------------
906,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
GAMING/ENTERTAINMENT -- 0.8%
WMS Industries, Inc. 40,000 845,000
- -------------------------------------------------------------------------------
845,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
HEALTHCARE/HMO -- 3.2%
HealthCare COMPARE Corporation 20,000 775,000
Healthsource, Inc. 13,000 625,625
Oxford Health Plans, Inc. 15,000 1,091,250
Surgical Care Affiliates, Inc.(1) 32,500 755,625
- -------------------------------------------------------------------------------
3,247,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
HOUSEHOLD PRODUCTS/WARES -- 0.1%
USA Detergents, Inc. 6,500 134,875
- -------------------------------------------------------------------------------
134,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INSURANCE -- 2.6%
John Alden Financial Corporation(1) 25,000 565,625
Lincoln National Corporation 21,500 1,013,187
U.S. Facilities Corporation(1) 50,000 1,006,250
- -------------------------------------------------------------------------------
2,585,062
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MANUFACTURING -- 1.0%
Chase Brass Industries, Inc. 8,100 103,275
Percon, Inc. 20,000 230,000
The Carbide/Graphite Group, Inc. 45,000 635,625
- -------------------------------------------------------------------------------
968,900
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
MEDIA -- 1.2%
Emmis Broadcasting Corporation 22,000 $ 690,250
United International Holdings, Inc., Class A 30,000 555,000
- -------------------------------------------------------------------------------
1,245,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & DEVICES -- 3.5%
Guidant Corporation(1) 55,000 1,608,750
Medtronic, Inc.(1) 15,000 806,250
Ventritex, Inc. 55,000 1,182,500
- -------------------------------------------------------------------------------
3,597,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
MOTOR VEHICLES AND PARTS SUPPLIERS -- 3.8%
General Motors Corporation(1) 13,500 632,812
Harley-Davidson, Inc.(1) 40,000 975,000
Strattec Security Corporation 65,000 926,250
Volvo AB -- Sponsored ADR(1)(2) 52,000 1,274,000
- -------------------------------------------------------------------------------
3,808,062
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NETWORK SYSTEMS -- 1.7%
3Com Corporation 17,500 796,250
Cisco Systems, Inc. 10,000 690,000
NetStar, Inc. 20,000 210,000
- -------------------------------------------------------------------------------
1,696,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PHARMACEUTICALS -- 1.2%
Matrix Pharmaceutical, Inc. 50,000 700,000
Univax Biologics, Inc. 80,000 540,000
- -------------------------------------------------------------------------------
1,240,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PUBLISHING -- 1.4%
Desktop Data, Inc. 2,000 69,500
Reynolds & Reynolds Company(1) 40,000 1,375,000
- -------------------------------------------------------------------------------
1,444,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
R.E.I.T. -- 2.3%
Bay Apartment Communities, Inc.(1) 50,000 1,075,000
Duke Realty Investments, Inc.(1) 15,000 466,875
Hospitality Properties Trust(1) 30,000 787,500
- -------------------------------------------------------------------------------
2,329,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RAILROADS -- 1.5%
Kansas City Southern Industries, Inc.(1) 15,000 682,500
Union Pacific Corporation(1) 12,000 795,000
- -------------------------------------------------------------------------------
1,477,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
RESTAURANTS -- 3.4%
Applebee's International, Inc.(1) 15,000 $ 408,750
Main Street & Main Inc. 225,000 984,375
Rainforest Cafe, Inc. 35,000 813,750
Rock Bottom Restaurants, Inc. 75,000 1,218,750
- -------------------------------------------------------------------------------
3,425,625
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SEMICONDUCTORS -- 5.0%
Cypress Semiconductor Corporation 40,000 1,545,000
Micron Technology, Inc.(1) 15,000 1,192,500
Texas Instruments, Inc.(1) 15,000 1,198,125
VLSI Technology, Inc. 33,000 1,130,250
- -------------------------------------------------------------------------------
5,065,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SPECIALTY CHEMICALS -- 2.8%
Arcadian Corporation 40,000 815,000
Mississippi Chemical Corporation(1) 40,000 840,000
Monsanto Company(1) 12,000 1,209,000
- -------------------------------------------------------------------------------
2,864,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 1.4%
A+ Communications, Inc. 25,000 381,250
MFS Communications Company, Inc. 117 5,119
Octel Communications Corporation 7,500 261,562
VSI Enterprises, Inc. 125,000 734,375
- -------------------------------------------------------------------------------
1,382,306
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TRANSPORTATION -- 1.8%
Airborne Freight Corporation(1) 35,000 857,500
Atlantic Southeast Airlines, Inc.(1) 40,000 935,000
- -------------------------------------------------------------------------------
1,792,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
UTILITIES -- 2.2%
BCE, Inc.(1) 25,000 840,125
US West, Inc.(1) 30,000 1,413,750
- -------------------------------------------------------------------------------
2,253,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- 88.6% (Cost: $85,618,474) 89,969,719
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE PREFERRED STOCKS
COPPER MINING -- 0.6%
Freeport McMoRan, Pfd. A 23,000 592,250
- -------------------------------------------------------------------------------
592,250
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
INDUSTRIAL COMPONENTS -- 1.1%
Atlantic Richfield Company, 9%, 9/15/97 Series(1) 22,500 $ 573,750
Noble Drilling, $1.5 Series 22,000 528,000
- -------------------------------------------------------------------------------
1,101,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REAL ESTATE -- 0.9%
Catellus Development Corporation, $3.625 Class B 22,000 891,000
- -------------------------------------------------------------------------------
891,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS -- 0.4%
MFS Communications, 8%, 5/31/99 Series 10,000 416,250
- -------------------------------------------------------------------------------
416,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS -- 3.0% (Cost: $2,975,492) 3,001,250
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- -------------------------------------------------------------------------------
ENERGY -- 1.2%
Box Energy Corporation, 8.25%, Due 12/01/02 600,000 624,000
Cross Timbers Oil Company, 5.25%, Due 11/01/03 750,000 637,500
- -------------------------------------------------------------------------------
1,261,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
ELECTRONIC COMPONENTS -- 1.0%
Emerson Radio Corporation 144A, 8.50%, Due 08/15/02 500,000 485,000
Sanmina Corporation 144A, 5.50%, Due 08/15/02 500,000 525,000
- -------------------------------------------------------------------------------
1,010,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SEMICONDUCTORS -- 0.8%
VLSI Technology, Inc., 8.25%, Due 10/01/05 750,000 766,875
- -------------------------------------------------------------------------------
766,875
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FINANCIAL SERVICES -- 0.2%
Sandoz Capital, 144A, 2%, Due 10/06/02 250,000 211,250
- -------------------------------------------------------------------------------
211,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CONSUMER & SPECIALITY RETAIL -- 1.0%
Staples, Inc. 144A, 4.50%, Due 10/01/00 1,000,000 1,050,000
- -------------------------------------------------------------------------------
1,050,000
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRECIOUS METALS -- 0.5%
Coeur d'Alene Mines Corporation, 6.375%, Due 01/31/04 500,000 489,375
- -------------------------------------------------------------------------------
489,375
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
INDUSTRIAL COMPONENTS -- 0.3%
Cooper Industries, Inc., 7.05%, Due 01/01/15 300,000 301,500
- -------------------------------------------------------------------------------
301,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
IRON/STEEL -- 0.5%
USX Corporation, 7%, Due 06/15/17 500,000 476,250
- -------------------------------------------------------------------------------
476,250
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION -- 0.5%
Reno Air, Inc. 144A, 9.0%, Due 09/30/02 500,000 $ 502,500
- -------------------------------------------------------------------------------
502,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
GENERAL MERCHANDISE STORES -- 1.0%
Federated Department Stores, 5.0%, Due 10/01/03 1,000,000 1,027,500
- -------------------------------------------------------------------------------
1,027,500
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS -- 7.0% (Cost: $6,954,382) 7,096,750
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 98.6% (Cost: $95,548,348) 100,067,719
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------------
Cash (699,374)
Repurchase Agreement 4,724,000
State Street Bank and Trust Company, 5.25%,
dated 9/29/95, due 10/2/95 majority value,
$4,726,066 (collateralized by $4,295,000 par
value U.S. Treasury Notes, 7.625%, due 11/15/22)
- -------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS -- 3.9% 4,024,626
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
OTHER ASSETS, NET -- (2.5%) (2,553,315)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
(1) Income Producing Security
(2) ADR -- American Depository Receipt
The accompanying notes are integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
- -------------------------------------------------------------------------------
Investments, at value (Cost: $95,548,348) $ 100,067,719
Cash and cash equivalents 4,024,626
Receivable for investments sold 2,919,762
Receivable for fund shares subscribed 1,503,097
Dividends/interest receivable 156,675
- -------------------------------------------------------------------------------
TOTAL ASSETS 108,671,879
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------
Payable for investments purchased 6,678,218
Payable for fund shares redeemed 327,143
Accrued expenses 126,430
Payables, other 1,058
- -------------------------------------------------------------------------------
TOTAL LIABILITIES 7,132,849
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -------------------------------------------------------------------------------
Paid in Capital 97,401,760
Undistributed net income 38,018
Accumulated net realized loss from investments (420,119)
Net unrealized appreciation on investments 4,519,371
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL NET ASSETS $ 101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PRICING OF SHARES: $ 10.76
Net Asset Value, offering and redemption price
per share (net assets of $101,539,030 applicable
to 9,439,090 shares of beneficial interest
outstanding with no par value)
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 7/12/95
(COMMENCEMENT OF OPERATION)
THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest $ 172,624
Dividends (Net of Foreign Tax Withheld of $1.058) 129,664
- -------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 302,288
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
Deferred Organizational Costs 15,520
Investment Advisory fees 123,370
Professional fees 38,851
Custodian and transfer agent fees 38,313
Distribution fees 30,843
Registration and filing fees 7,695
Shareholder reports 7,165
Trustees' fees and expenses 2,513
- -------------------------------------------------------------------------------
TOTAL EXPENSES 264,270
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME 38,018
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED
APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- -------------------------------------------------------------------------------
Net realized (loss) from investments (420,119)
Net change in unrealized appreciation on investments 4,519,317
- -------------------------------------------------------------------------------
TOTAL NET REALIZED (LOSS) AND
UNREALIZED APPRECIATION ON INVESTMENTS 4,099,252
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 4,137,270
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
FOR THE PERIOD FROM 7/12/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
OPERATIONS
- -------------------------------------------------------------------------------
Net investment income $ 38,018
Net realized (loss) from investments (420,119)
Net change in unrealized appreciation on investments 4,519,371
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,137,270
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------
Net increase in assets resulting from capital share transactions 97,401,760
- -------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 97,401,760
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 101,539,030
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------
Beginning of period 0
End of Period $101,539,030
- -------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
FOR THE PERIOD FROM 7/12/95
FOR A SHARE OUTSTANDING (COMMENCEMENT OF OPERATIONS)
THROUGHOUT EACH PERIOD: THROUGH 9/30/95 (UNAUDITED)
- -------------------------------------------------------------------------------
<S> <C>
Net Asset Value, beginning of period $ 10.00
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net investment income 0.01
Net realized gain and unrealized appreciation from investments 0.75
- -------------------------------------------------------------------------------
Total Increase in Net Assets Resulting from Operations 0.76
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Distribution from realized gains on investments --
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.76
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
TOTAL RETURN 7.60%
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------
Net Assets, end of period $ 101,539,030
Ratio of Expenses to Average Net Assets 1.95%
Ratio of Net Investment Income to Average Net Assets 0.30%
Portfolio Turnover Rate 21%
- -------------------------------------------------------------------------------
</TABLE>
Per share data for each period has been determined by using the average
number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Growth & Income Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Fund became effective to offer shares to
the public on July 12, 1995. The Trust offers nine series of shares -- The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value+Growth
Fund, The Robertson Stephens Contrarian Fund, The Robertson Stephens
Developing Countries Fund, The Robertson Stephens Growth & Income Fund, The
Robertson Stephens Partners Fund, The Robertson Stephens Information Age Fund
(effective November 15, 1995), The Robertson Stephens Global Natural
Resources Fund (effective November 15, 1995), and The Robertson Stephens
Global Low-Priced Stock Fund (effective November 15, 1995). The assets for
each series are segregated and accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities are valued at the last sale price on the
principal exchange or market on which they are traded; or, if there were no
sales that day, at the mean between the closing bid and asked prices. For the
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, 99.9% of the Fund's portfolio was valued in this manner.
Securities for which market quotations are not readily available are valued
at their fair value as determined in accordance with the guidelines and
procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes in
the issuer's financial position, and any other event which could have a
significant impact on the value of the security. For the period from July 12,
1995 (Commencement of Operations) through September 30, 1995, approximately
0.1% of the Fund's portfolio was valued using these guidelines and procedures.
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to
ensure that the collateral's market value equals at least 100% of the
repurchase price under the agreement. However, in the event of default or
bankruptcy, realization and/or retention of the collateral may be subject to
legal proceedings. The Fund's policy is to limit repurchase agreement
transactions to those parties deemed by the Fund's Investment Advisor to have
satisfactory creditworthiness.
C. FEDERAL INCOME TAXES:
The Fund has made no provision for federal income taxes for the period from
July 12, 1995 (Commencement of Operations) through September 30, 1995, as it
does not expect to incur any federal income tax for the year. The Fund
expects to comply with requirements of the Internal Revenue Code for
qualifying as a regulated investment company so as not to be subject to
federal income tax.
21
<PAGE>
THE GROWTH & INCOME FUND THIRD QUARTER RESULTS
NOTES TO FINANCIAL STATEMENTS
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased and sold (trade date). Realized gains and losses on securities
transactions are determined on the basis of specific identification.
E. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is
accrued and recorded daily.
F. CAPITAL ACCOUNTS:
The Fund follows the provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies"
("SOP"). The purpose of this SOP is to report undistributed net investment
income and accumulated net realized gain (loss) accounts in such a manner as
to approximate amounts available for future distributions to shareholders, if
any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the period from July
12, 1995 (Commencement of Operations) through September 30, 1995 was as
follows:
7/12/95--9/30/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Shares sold 10,104,311 $104,352,075
- -------------------------------------------------------------------------------
10,104,311 $104,352,075
- -------------------------------------------------------------------------------
Shares redeemed 665,221 6,950,315
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Net increase 9,439,090 $ 97,401,760
- -------------------------------------------------------------------------------
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, Inc. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co"), the Fund's Distributor, is an affiliate, an investment
advisory fee calculated at an annual rate of 1.00% of the average daily net
assets of the Fund. For the period from July 12, 1995 (Commencement of
Operations) through September 30, 1995, the Fund incurred investment advisory
fees of $123,370. RSIM has agreed to reimburse the Fund for any annual
operating expenses, including investment advisory fees, but excluding
distribution fees, which exceed the most stringent limits prescribed by any
state in which the Fund's shares are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of RS &
Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a
Director of RSIM, a Member of RS Group, and Chief Operating Officer of RS &
Co. Terry R. Otton, Chief Financial Officer of the Fund, is a Member of RS
Group and Chief Financial Officer of RS & Co. John P. Rohal, a Trustee of the
Fund, is a Member of RS Group and Director of Research for RS & Co. John L.
Wallace, Portfolio Manager, is a Member of RS Group. All affiliated and
access persons, as defined in the 1940 Act, follow strict guidelines and
policies on personal trading as outlined in the Fund's Code of Ethics.
22
<PAGE>
ROBERTSON, STEPHENS & COMPANY
C. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Fund who are affiliated persons receive no
compensation from the Fund. Trustees of the Fund who are not interested
persons of the Trust, as defined in the 1940 Act, collectively received
compensation and reimbursement of expenses of $2,513 for the period from July
12, 1995 (Commencement of Operations) through September 30, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co., for distribution
services and has adopted a Plan of Distribution pursuant to Rule 12b-1 under
the 1940 Act, which is reviewed and approved annually by the Fund's Board of
Trustees. Under this Plan, RS & Co. is compensated for services in such
capacity including its expenses in connection with the promotion and
distribution of the Fund's shares. The distribution fee is calculated at an
annual rate of 0.25% of the average daily net assets of the Fund. For the
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, the Fund incurred distribution fees of $30,843.
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as
broker-dealer, subject to Fund policies as stated in the prospectus,
regulatory constraints, and the ability of RS & Co. to provide competitive
prices and commission rates. All investment transactions in which RS & Co.
acts as a broker may only be executed on an agency basis. Subject to certain
constraints, the Fund may make purchases of securities from offerings or
underwritings in which RS & Co. has been retained by the issuer. For the
period from July 12, 1995 (Commencement of Operations) through September 30,
1995, the Fund paid brokerage commissions of $18,590 to RS & Co. which
represented 16% of total commissions paid for the period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the
cost of investments purchased or the proceeds from investments sold
(excluding short-term investments) measured as a percentage of the Fund's
average monthly investment portfolio for the period for the period from July
12, 1995 (Commencement of Operations) through September 30, 1995, was 21%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $95,548,348. Accumulated net unrealized appreciation on
investments was $4,519,371, consisting of gross unrealized appreciation and
depreciation of $6,273,980 and $1,754,609, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the period from July 12, 1995 (Commencement of Operations) through
September 30, 1995, the cost of investments purchased and the proceeds from
investments sold (excluding short-term investments) were $107,665,794 and
$11,700,803, respectively.
23
<PAGE>
THE PARTNERS FUND THIRD QUARTER RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED) SHARES VALUE
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- ------------------------------------------------------------------------------
ALUMINUM - 9.9%
Kaiser Aluminum Corporation(1) 25,000 $ 365,625
MAXXAM, Inc. 9,300 456,863
- ------------------------------------------------------------------------------
822,488
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
AUTOMOBILE PARTS/EQUIPMENT - 1.7%
Wescast Industries, Inc. Class A(1) 12,500 137,500
- ------------------------------------------------------------------------------
137,500
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 4.3%
Easco, Inc.(1) 48,000 360,000
- ------------------------------------------------------------------------------
360,000
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
ENERGY - 7.7%
Anderson Exploration, Ltd. 35,000 328,752
Bellwether Exploration Company 20,000 121,250
Discovery West Corporation 28,300 87,378
Nugas, Ltd. 50,000 86,303
Olympia Energy, Inc., Class A 38,000 19,790
- ------------------------------------------------------------------------------
643,473
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
ENERGY SERVICES - 9.3%
Enerflex Systems, Ltd.(1) 5,200 68,670
EnServ Corporation 14,000 108,065
Ensign Resource Service Group, Inc.(1) 40,000 167,398
Veritas Energy Services, Inc. 85,000 430,818
- ------------------------------------------------------------------------------
774,951
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
REAL ESTATE - 5.4%
Catellus Development 70,000 446,250
- ------------------------------------------------------------------------------
446,250
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL COMMON STOCKS -- 38.3% (Cost: $3,153,964) 3,184,662
- ------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<CAPTION>
CONTRACTS VALUE
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C> <C>
PUT OPTIONS
- ------------------------------------------------------------------------------
S&P 500 Index Put Options
December 1995 560 55 $ 24,750
- ------------------------------------------------------------------------------
TOTAL PUT OPTIONS - 0.3% (Cost: $26,290) 24,750
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL INVESTMENTS -- 38.6% (Cost: $3,180,254) 3,209,412
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- ------------------------------------------------------------------------------
Cash 516
U.S. Treasury Bills, 5.42%, due 10/5/95 2,998,227
Repurchase Agreement 2,091,000
State Street Bank and Trust Company, 5.25%,
dated 9/29/95, due 10/2/95, maturity value
$2,091,610 (collateralized by $1,905,000
par value U.S. Treasury Notes, 7.625%,
due 11/15/22)
- ------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 61.3% 5,089,743
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
OTHER ASSETS, NET -- 0.1% 6,841
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL NET ASSETS -- 100.0% $8,305,996
- ------------------------------------------------------------------------------
</TABLE>
(1) Income Producing Security.
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
THE PARTNERS FUND THIRD QUARTER RESULTS
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C>
ASSETS
- ------------------------------------------------------------------------------
Investments, at value (Cost: $3,180,254) $3,209,412
Cash and cash equivalents 5,089,743
Receivable for fund shares subscribed 66,036
Receivable from Adviser 43,020
Dividends/interest receivable 609
- ------------------------------------------------------------------------------
TOTAL ASSETS 8,408,820
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------
Payable for investments purchased 76,112
Accrued expenses 26,712
- ------------------------------------------------------------------------------
TOTAL LIABILITIES 102,824
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL NET ASSETS $8,305,996
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- ------------------------------------------------------------------------------
Paid in capital 8,193,598
Accumulated undistributed net investment income 25,168
Accumulated net realized gain from investments 64,227
Accumulated net realized (loss) from options (6,155)
Net unrealized appreciation on investments 30,698
Net unrealized (depreciation) on options (1,540)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL NET ASSETS $8,305,996
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Pricing of Shares: $10.19
Net Asset Value, offering and redemption
price per share (net assets of $8,305,996
applicable to 815,435 shares of
beneficial interest outstanding with no par
value)
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE PERIOD 7/12/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 9/30/95 (UNAUDITED)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- ------------------------------------------------------------------------------
Interest $ 69,014
- ------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 69,014
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------
Investment advisory fees 18,473
Professional fees 12,925
Registration and filing fees 7,889
Custodian and transfer agent fees 4,297
Distribution fees 3,695
Shareholder reports 3,113
Trustees' fees and expenses 2,513
Other 1,541
Organizational expenses 32,420
- ------------------------------------------------------------------------------
86,866
Less: Reimbursement from Adviser (43,020)
- ------------------------------------------------------------------------------
TOTAL EXPENSES, NET 43,846
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME 25,168
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS AND OPTIONS
- ------------------------------------------------------------------------------
Net realized gain from investments 64,227
Net realized (loss) from options (6,155)
Net change in unrealized appreciation on investments 30,698
Net change in unrealized (depreciation) on options (1,540)
- ------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON INVESTMENTS 87,230
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $112,398
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE PARTNERS FUND THIRD QUARTER RESULTS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 7/12/95
(COMMENCEMENT OF OPERATIONS)
THROUGH 9/30/95 (UNAUDITED)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C>
OPERATIONS
- ------------------------------------------------------------------------------
Net investment income $ 25,168
Net realized gain from investments 64,227
Net realized (loss) from options (6,155)
Net change in unrealized appreciation on
investments 30,698
Net change in unrealized (depreciation) on options (1,540)
- ------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from
Operations 112,398
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
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 8,193,598
- ------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 8,193,598
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 8,305,996
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------
Beginning of period 0
End of period $8,305,996
- ------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE PERIOD FROM 7/12/95
FOR A SHARE OUTSTANDING (COMMENCEMENT OF OPERATIONS)
THROUGHOUT THE PERIOD: THROUGH 9/30/95 (UNAUDITED)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
<S> <C>
Net Asset Value, beginning of period $ 10.00
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net investment income 0.04
Net realized gain and unrealized appreciation on
investments 0.15
- ------------------------------------------------------------------------------
Total Increase in Net Assets Resulting from
Operations 0.19
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Distributions from net investment income --
Distributions from realized gains on investments --
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 10.19
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
TOTAL RETURN 1.90%
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------
Net Assets, end of period $8,305,996
Ratio of Expenses to Average Net Assets 2.88%
Ratio of Net Investment Income to Average Net Assets 1.66%
Portfolio Turnover Rate 35%
- ------------------------------------------------------------------------------
</TABLE>
Per share data has been determined by using the average number of shares
outstanding throughout the period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
If the Fund had paid all of its expenses and there had been no reimbursement by
the Adviser, the ratio of expenses to average net assets for the period ended
September 30, 1995 would have been 5.71%, and the ratio of net investment (loss)
to average net assets would have been (1.17)%
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE PARTNERS FUND THIRD QUARTER RESULTS
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Partners 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 non-diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on July 12, 1995. The Trust offers nine series of shares -- The Robertson
Stephens Emerging Growth Fund, The Robertson Stephens Value+Growth Fund, The
Robertson Stephens Contrarian Fund, The Robertson Stephens Developing Countries
Fund, The Robertson Stephens Growth & Income Fund, The Robertson Stephens
Partners Fund, The Robertson Stephens Information Age Fund (effective November
15, 1995), The Robertson Stephens Global Natural Resources Fund (effective
November 15, 1995), and The Robertson Stephens Global Low-Priced Stock Fund
(effective November 15, 1995). The assets for each series are segregated and
accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities 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 September 30, 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
September 30, 1995, 0% of the Fund's long positions were valued using these
guidelines and procedures.
B. REPURCHASE AGREEMENTS
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy 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 provision for federal taxes for the quarter ended
September 30, 1995, as it does not expect to incur any federal income tax for
the year. The Fund expects to comply with requirements of the Internal Revenue
Code for qualifying as a regulated investment company so as not to be subject to
federal income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased and sold (trade date). Realized gains and losses on securities
transactions are determined on the basis of specific identification.
E. 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
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
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 (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. Transactionsin capital shares for the period from July 12,
1995 (Commencement of Operations) through September 30, 1995 was as follows:
7/12/95 -- 9/30/95 SHARES AMOUNT
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Shares sold 908,105 $9,132,768
Shares reinvested -- --
- ------------------------------------------------------------------------------
908,105 9,132,768
- ------------------------------------------------------------------------------
Shares redeemed (92,670) (939,170)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net increase 815,435 $8,193,598
- ------------------------------------------------------------------------------
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
Investment Management, L.P. ("RSIM"), of which Robertson, Stephens & Company,
L.P. ("RS & Co."), the Fund's Distributor, is the sole Limited Partner, an
investment advisory fee calculated at an annual rate of 1.25% of the average
daily net assets of the Fund. For the period from July 12, 1995 (Commencement of
Operations) through September 30, 1995, the Fund incurred investment advisory
fees of $18,473. RSIM has agreed to reimburse the Fund for any annual operating
expenses, including investment advisory fees but excluding distribution fees,
which exceed the most stringent limits prescribed by any state in which the
Fund's shares are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of
RS & Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a Director
of RSIM, a Member of RS Group, and Chief Operating Officer of RS & Co. Terry R.
Otton, Chief Financial Officer of the Fund, is a Member of RS Group and Chief
Financial Officer of RS & Co. John P. Rohal, a Trustee of the Fund, is a Member
of RS Group and Director of Research for RS & Co. Andrew P. Pilara, Jr.,
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
15
<PAGE>
THE PARTNERS FUND THIRD QUARTER RESULTS
NOTES TO FINANCIAL STATEMENTS
and reimbursement of expenses of $2,513 for the period from July 12, 1995
(Commencement of Operations) through September 30, 1995.
D. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution services
and has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940
Act, which is 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 July 12, 1995 (Commencement of
Operations) through September 30, 1995, the Fund incurred distribution fees of
$3,695.
E. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as broker-dealer,
subject to Fund policies as stated in the prospectus, regulatory constraints,
and the ability of RS & Co. to provide competitive prices and commission rates.
All investment transactions in which RS & Co. acts as a broker may only be
executed on an agency basis. Subject to certain constraints, the Fund may make
purchases of securities from offerings or underwritings in which RS & Co. has
been retained by the issuer. For the period from July 12, 1995 (Commencement of
Operations) through September 30, 1995, the Fund paid brokerage commissions of
$0 to RS & Co.
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 July 12, 1995 (Commencement of
Operations) through September 30, 1995, was 35%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax purposes
was $3,180,254. Accumulated net unrealized appreciation on investments was
$29,158, consisting of gross unrealized appreciation and depreciation of $73,877
and $44,719, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the period from July 12, 1995 (Commencement of Operations) through September
30, 1995, the cost of investments purchased and the proceeds from investments
sold (excluding options and short-term investments) were $3,512,589 and
$422,852, respectively.
D. OPTIONS:
At September 30, 1995, 0.3% of the Fund's net assets consisted of premiums paid
for the purchase of S&P 500 Index put options to hedge portfolio long
investments against adverse price fluctuations. The risk associated with the
purchase of these put options is limited to the premium originally paid. The
premium paid for the purchase of these options is included in the Fund's
"Statement of Net Assets" as an investment and is subsequently marked-to-market
daily to reflect the market value of the options.
E. 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. These risks are
heightened for investments in emerging markets countries. 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
September 30, 1995, the Fund had investments worth no more than 15% of its total
assets in any one foreign country.
16
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 20, 1995 (UNAUDITED) SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- --------------------------------------------------------------------------------------
BIOTECHNOLOGY - 3.1%
Amgen, Inc. 860,000 $42,892,500
- --------------------------------------------------------------------------------------
42,892,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.9%
3Com Corporation 900,000 40,950,000
- --------------------------------------------------------------------------------------
40,950,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 12.1%
Compaq Computer Corporation 831,000 40,199,625
Dell Computer 255,000 21,675,000
Hewlett-Packard Company(1) 290,000 24,178,750
Intel Corporation(1) 468,900 28,192,613
Komag, Inc. 145,000 9,479,375
Seagate Technology, Inc. 585,000 24,643,125
Sun Microsystems, Inc. 300,000 18,900,000
- --------------------------------------------------------------------------------------
167,268,488
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 3.5%
Cadence Design Systems, Inc. 460,000 18,055,000
Microsoft Corporation 100,000 9,050,000
Parametric Technology Corporation 340,000 20,910,000
- --------------------------------------------------------------------------------------
48,015,000
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 5.9%
Circuit City Stores, Inc.(1) 400,000 12,650,000
CompUSA, Inc. 400,000 17,200,000
General Nutrition Co., Inc. 400,000 18,200,000
Nike, Inc.(1) 300,000 33,337,500
- --------------------------------------------------------------------------------------
81,387,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CONSUMER ELECTRONICS - 4.1%
Kemet Corporation 510,000 17,467,500
Philips Electronics(1) 400,000 19,500,000
Vishay Intertechnology, Inc. 482,400 20,260,800
- --------------------------------------------------------------------------------------
57,228,300
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
ROBERTSON, STEPHENS & COMPANY
<TABLE>
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
DATA TELECOMMUNICATIONS - 8.9%
Cabletron Systems, Inc.(1) 545,000 $35,901,875
Cisco Systems, Inc. 670,000 46,230,000
DSC Communications Corporation 300,000 17,775,000
Motorola, Inc.(1) 300,000 22,912,500
- --------------------------------------------------------------------------------------
122,819,375
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
FINANCIAL SERVICES - 6.2%
Charles Schwab Corporation(1) 1,315,000 36,820,000
First USA, Inc.(1) 134,000 7,269,500
Green Tree Financial Corporation(1) 355,000 21,655,000
Household International, Inc.(1) 185,000 11,470,000
MBNA Corporation(1) 200,000 8,325,000
- --------------------------------------------------------------------------------------
85,539,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
HEALTH MAINTENANCE ORGANIZATIONS - 5.0%
Healthsource, Inc.(1) 581,000 27,960,625
Oxford Health Plans(1) 565,000 41,103,750
- --------------------------------------------------------------------------------------
69,064,375
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
INVESTMENT BANKS - 3.1%
Alex. Brown & Sons(1) 100,000 5,837,500
Merrill Lynch 600,000 37,500,000
- --------------------------------------------------------------------------------------
43,337,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
LODGING/RECREATION - 2.1%
Hospitality Franchise Systems, Inc. 215,000 11,260,625
La Quinta Inns, Inc.(1) 235,000 6,580,000
Mirage Resorts, Inc. 350,000 11,506,250
- --------------------------------------------------------------------------------------
29,346,875
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 10.9%
ASM Lithography 270,000 11,846,250
Applied Materials, Inc.(1) 480,000 49,080,000
KLA Instruments Corporation 180,000 14,445,000
Kulicke & Soffa(1) 540,000 19,710,000
Lam Research Corporation 270,000 16,132,500
Novellus Systems, Inc. 240,000 16,800,000
Teradyne, Inc.(1) 640,000 23,040,000
- --------------------------------------------------------------------------------------
151,053,750
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
SCHEDULE OF NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SHARES VALUE
- --------------------------------------------------------------------------------------
<S> <C> <C>
SEMICONDUCTORS - 24.0%
Alliance Semiconductor Corporation 62,000 $ 2,464,500
Altera Corporation 310,000 19,336,250
Atmel Corporation 365,000 12,318,750
Cypress Semiconductor Corporation 685,000 26,458,125
Integrated Device Technology Inc. 555,000 13,875,000
LSI Logic Corporation 999,700 57,732,675
Microchip Technology, Inc. 349,200 13,225,950
Micron Technology, Inc.(1) 1,150,300 91,448,850
Texas Instruments(1) 727,500 58,109,062
VLSI Technology, Inc. 385,000 13,186,250
Xilinx, Inc. 495,000 23,821,875
- --------------------------------------------------------------------------------------
331,977,287
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 7.1%
Allen Group(1) 354,000 12,832,500
Ericsson (L.M.) Telephone Company(1), ADR(2) with Rights(3) 1,130,000 27,685,000
Frontier Corp.(1) 500,000 13,312,500
LCI International, Inc. 250,000 9,812,500
Nokia Corporation(1) 500,000 34,875,000
- --------------------------------------------------------------------------------------
98,517,500
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.9% (Cost $1,002,640,057) 1,369,397,950
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- --------------------------------------------------------------------------------------
Cash 464
Repurchase Agreement
State Street Bank and Trust Company, 5.25%, dated 9/29/95, due 10/2/95,
maturity value $9,145,667 (collateralized by $8,310,000 par value
U.S. Treasury Notes, 7.625%, due 11/15/22) 9,143,000
- --------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 0.7% 9,143,464
- --------------------------------------------------------------------------------------
OTHER ASSETS, NET - 0.4% 7,086,903
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100% $1,385,628,317
- --------------------------------------------------------------------------------------
</TABLE>
(1)Income producing security.
(2)ADR - American Depository Receipts.
(3)See Note 4.e.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF NET ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
<S> <C>
ASSETS
- --------------------------------------------------------------------------------------
Investments, at value (Cost: $1,002,640,057) $1,369,397,950
Cash and cash equivalents 9,143,464
Receivable for investments sold 20,068,574
Receivable for fund shares subscribed 15,711,574
Receivable, other 279,687
- --------------------------------------------------------------------------------------
TOTAL ASSETS 1,414,601,249
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------
Payable for investments purchased 24,063,500
Payable for fund shares redeemed 3,940,937
Accrued expenses 968,495
- --------------------------------------------------------------------------------------
TOTAL LIABILITIES 28,972,932
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS $1,385,628,317
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------
Paid in capital 1,023,632,107
Accumulated net realized (loss) from investments (4,761,683)
Net unrealized appreciation on investments 366,757,893
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
TOTAL NET ASSETS $1,385,628,317
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
PRICING OF SHARES: $ 26.55
Net Asset Value, offering and redemption price
per share (Net assets of $1,385,628,317 applicable
to 52,188,039 shares of beneficial interest
outstanding with no par value)
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 (UNAUDITED)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- --------------------------------------------------------------------------------------
Interest $ 869,983
Dividends (net of foreign tax of $21,089) 1,049,962
Other Income 690
- --------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,920,635
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------------
Investment advisory fees 5,746,087
Custodian and transfer agent fees 263,756
Registration and filing fees 100,346
Shareholder reports 83,610
Professional fees 67,565
Interest expense 56,470
Trustees' fees and expenses 11,250
Other 10,698
- --------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 6,339,782
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
NET INVESTMENT (LOSS) (4,419,147)
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION)
ON INVESTMENTS
- --------------------------------------------------------------------------------------
Net realized (loss) from investments (3,234,356)
Net change in unrealized appreciation on investments 326,092,668
- --------------------------------------------------------------------------------------
Total Net Realized (Loss) and Unrealized Appreciation on Investments 322,858,312
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $318,439,165
- --------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ROBERTSON, STEPHENS & COMPANY
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS
ENDED 9/30/95 YEAR ENDED
(UNAUDITED) 3/31/95
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- ---------------------------------------------------------------------------------------------------
Net investment (loss) $(4,419,147) $(1,115,225)
Net realized (loss) from investments (3,234,356) (1,344,592)
Net realized gain from options 0 455,848
Net realized gain from securities sold short 0 73,750
Net change in unrealized appreciation on investments 326,092,668 39,217,602
Net change in unrealized (depreciation) on securities sold short 0 (103,750)
- ---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 318,439,165 37,183,633
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------------
Realized gains on investments 0 (1,566,892)
- ---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS 0 (1,566,892)
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- ---------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital
share transactions 638.286.145 348,785,903
- ---------------------------------------------------------------------------------------------------
Total Capital Share Transactions 638,286,145 348,785,903
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 956,725,310 384,402,644
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------
Beginning of year 428,903,007 44,500,363
End of year $1,385,628,317 $428,903,007
- ---------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
FOR A SHARE OUTSTANDING 9/30/95 YEAR ENDED YEAR ENDED PERIOD(1) ENDED
THROUGHOUT THE PERIOD: (UNAUDITED) 3/31/95 3/31/94 3/31/93
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, beginning of period $ 18.25 $ 13.56 $ 11.94 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Net investment (loss) income (0.11) (0.18) (0.04) 0.12
Net realized gain and unrealized appreciation on investments 8.41 5.07 1.99 1.88
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets resulting from operations 8.30 4.89 1.95 2.00
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income - - (0.03) (0.06)
Distributions from realized gain on investments - (0.20) (0.30) -
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Total Distributions - (0.20) (0.33) (0.06)
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 26.55 $ 18.25 $ 13.56 $ 11.94
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Total Return 45.48% 36.27% 16.32% 20.05%
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $1,385,628,317 $428,903,007 $44,500,363 $17,833,350
Ratio of Expenses to Average Net Assets 1.37% 1.68% 1.55%(2) 1.33%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (0.96)% (1.09)% 0.51%(2) 1.26%(2)
Portfolio Turnover Rate 40% 232% 250% 210%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) From April 21, 1992 (Commencement of Operations) to 3/31/93.
(2) If the Fund had paid all of its expenses and had received no reimbursement
from the Advisor, the ratio of expenses to average net assets for the
periods ended March 31, 1994 and March 31, 1993 would have been 2.35% and
2.71%, respectively, and the ratio of net investment income/(loss) to
average net assets would have been (1.31)% and (0.12)%, respectively.
Per share data for each of the periods has been determined by using the
average number of shares outstanding throughout each period.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ROBERTSON, STEPHENS & COMPANY
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Value+Growth Fund (the "Fund") is a series of the
Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end
management investment company. The Fund became effective to offer shares to
the public on May 12, 1992. Prior to the public offering, shares were offered
in a private placement offering on April 21, 1992, at $10 per share, to
sophisticated investors under Section 4(2) of the Securities Act of 1933. The
Trust offers nine series of shares -- The Robertson Stephens Emerging Growth
Fund, The Robertson Stephens Value+Growth Fund, The Robertson Stephens
Contrarian Fund, The Robertson Stephens Developing Countries Fund, The
Robertson Stephens Growth & Income Fund, The Robertson Stephens Partners
Fund, The Robertson Stephens Information Age Fund (effective November 15,
1995), The Robertson Stephens Global Natural Resources Fund (effective
November 15, 1995), and The Robertson Stephens Global Low-Priced Stock Fund
(effective November 15, 1995). The assets for each series are segregated and
accounted for separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
A. INVESTMENT VALUATIONS:
Marketable equity securities 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 September 30, 1995, 100% of the Fund's portfolio was valued in
this manner.
Securities for which market quotations are not readily available are valued
at their fair value as determined in accordance with the guidelines and
procedures adopted by the Fund's Board of Trustees. The guidelines and
procedures use fundamental valuation methods which include, but are not
limited to, the analysis of: the effect of any restrictions on the sale of
the security, product development and trends of the security's issuer,
changes in the industry and other competing companies, significant changes in
the issuer's financial position, and any other event which could have a
significant impact on the value of the security. At September 30, 1995, no
security of the Fund was valued using these guidelines and procedures.
B. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to
ensure that the collateral's market value equals at least 100% of the
repurchase price under the agreement. However, in the event of default or
bankruptcy 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 provisions for federal income taxes for the six months
ended September 30, 1995, as it does not expect to incur any federal income
tax for the year. The Fund expects to comply with requirements of the
Internal Revenue Code for qualifying as a regulated investment company so as
not to be subject to federal income tax.
D. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased, sold, or sold short (trade date). Realized gains and losses on
securities transactions are determined on the basis of specific
identification.
17
<PAGE>
THE VALUE+GROWTH FUND SEMI-ANNUAL RESULTS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
E. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is
accrued and recorded daily.
F. CAPITAL ACCOUNTS:
The Fund follows the provisions of the AICPA's Statement of Position 93-2
"Determination, Disclosure and Financial Statement Presentation of Income,
Capital Gain and Return of Capital Distributions by Investment Companies"
("SOP"). The purpose of this SOP is to report undistributed net investment
income and accumulated net realized gain (loss) accounts in such a manner as
to approximate amounts available for future distributions to shareholders, if
any.
NOTE 2 CAPITAL SHARES:
A. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the six months ended
September 30, 1995 and for the year ended March 31, 1995 were as follows:
<TABLE>
<CAPTION>
4/1/95 - 9/30/95 SHARES AMOUNT
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Shares sold 53,259,269 $1,200,268,873
Shares reinvested 1,396 35,667
- ---------------------------------------------------
53,260,665 $1,200,304,540
- ---------------------------------------------------
Shares redeemed (24,574,655) (562,018,394)
- ---------------------------------------------------
- ---------------------------------------------------
- ---------------------------------------------------
Net increase 28,686,010 $ 638,286,145
- ---------------------------------------------------
4/1/94 - 3/31/95 SHARES AMOUNT
- ---------------------------------------------------
- ---------------------------------------------------
<S> <C> <C>
Shares sold 34,759,244 $574,001,458
Shares reinvested 79,555 1,276,754
- ---------------------------------------------------
34,838,799 575,278,212
- ---------------------------------------------------
Shares redeemed (14,619,427) (226,492,309)
- ---------------------------------------------------
- ---------------------------------------------------
- ---------------------------------------------------
Net increase 20,219,372 $348,785,903
- ---------------------------------------------------
</TABLE>
NOTE 3 TRANSACTIONS WITH AFFILIATES:
A. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of an advisory agreement, which is reviewed and approved
annually by the Board of Trustees, the Fund pays Robertson, Stephens
Investment Management, L.P. ("RSIM"), of which Robertson Stephens & Company,
L.P. ("RS & Co."), the Fund's Distributor, is the sole Limited Partner, an
investment advisory fee calculated at an annual rate of 1.25% of the average
daily net assets of the Fund. For the six months ended September 30, 1995,
the Fund incurred investment advisory fees of $5,746,087. RSIM has agreed to
reimburse the Fund for any annual operating expenses, including investment
advisory fees, but excluding dividend expense for short sales, which exceed
the most stringent limits prescribed by any state in which the Fund's shares
are offered for sale.
B. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also Members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the parent of RS &
Co., the Fund's Distributor and RSIM, the Fund's Adviser. G. Randy Hecht,
President, Chief Executive Officer and a Trustee of the Fund, is also a
Director of RSIM, a Member of RS Group, and Chief Operating Officer of RS &
Co. Terry R. Otton, Chief Financial Officer of the Fund, is a Member of RS
Group and Chief Financial Officer of RS & Co. John P. Rohal, a Trustee of the
Fund, is a Member of RS Group and Director of Research for RS & Co. 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 $11,250 for the six months
ended September 30, 1995.
18
<PAGE>
ROBERTSON, STEPHENS & COMPANY
D. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as
broker-dealer, subject to Fund policies as stated in the prospectus,
regulatory constraints, and the ability of RS & Co. to provide competitive
prices and commission rates. All investment transactions in which RS & Co.
acts as a broker may only be executed on an agency basis. Subject to certain
constraints, the Fund may make purchases of securities from offerings or
underwritings in which RS & Co. has been retained by the issuer. For the six
months ended September 30, 1995, the Fund paid brokerage commissions of
$156,115 to RS & Co. which represented 16.1% of total commissions paid for
the period.
NOTE 4 INVESTMENTS:
A. PORTFOLIO TURNOVER RATE:
The portfolio turnover rate, which is calculated based on the lesser of the
cost of investments purchased or the proceeds from investments sold
(excluding options, securities sold short and short-term investments)
measured as a percentage of the Fund's average monthly investment portfolio
for the six months ended September 30, 1995, was 40%.
B. TAX BASIS OF INVESTMENTS:
At September 30, 1995, the cost of investments for federal income tax
purposes was $1,003,152,009. Accumulated net unrealized appreciation on
investments was $366,245,951 consisting of gross unrealized appreciation and
depreciation of $371,292,357 and $5,046,406, respectively.
C. INVESTMENT PURCHASES AND SALES:
For the six months ended September 30, 1995, the cost of investments
purchased and the proceeds from investments sold (excluding options,
securities sold short and short-term investments) were $973,207,456 and
$357,040,602, respectively.
D. SHORT SALES:
Short sales are transactions in which the Fund sells a security it does not
own, in anticipation of a decline in the market value of that security. To
complete such a transaction, the Fund must borrow the security to deliver to
the buyer upon the short sale; the Fund then is obligated to replace the
security borrowed by purchasing it in the open market at some later date. The
Fund will incur a loss if the market price of the security increases between
the date of the short sale and the date on which the Fund replaces the
borrowed security. The Fund will realize a gain if the security declines in
value between those dates. All short sales must be fully collateralized. The
Fund maintains the collateral in a segregated account consisting of cash
and/or U.S. government securities sufficient to collateralize the greater of
the sales proceed or market value of its short positions. The Fund may also
sell short "against the box" (i.e. the Fund enters into a short sale as
described above, while holding an offsetting long position in the security
which is sold short). If the Fund enters into a short sale against the box,
it will segregate an equivalent amount of securities owned by the Fund as
collateral while the short sale is outstanding. The Fund limits the value of
short sell positions (excluding short sales "against the box") to 25% of the
Fund's total assets. At September 30, 1995, the Fund did not sell any
securities short.
E. RIGHTS:
A right is a privilege offered by a corporation to its shareholders pro rata
to subscribe to a certain security of that corporation at a specified price.
At September 30, 1995, the fund held 1,130,000 rights to subscribe to 113,000
ADR shares of Ericsson (L.M.) Telephone company at US$13.47 per share.
19
<PAGE>
ROBERTSON STEPHENS INVESTMENT TRUST
(The Robertson Stephens Contrarian Fund)
(The Robertson Stephens Developing Countries Fund)
(The Robertson Stephens Emerging Growth Fund)
(The Robertson Stephens Global Low-Priced Stock Fund)
(THE ROBERTSON STEPHENS GLOBAL NATURAL RESOURCES FUND)
(The Robertson Stephens Growth & Income Fund)
(The Robertson Stephens Information Age Fund)
(The Robertson Stephens Partners Fund)
(The Robertson Stephens Value + Growth Fund)
------------------------------
FORM N-lA
PART C
------------------------------
<PAGE>
PART C. OTHER INFORMATION
Item 24. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements
1. The following audited financial statements for The Robertson Stephens
Contrarian Fund, The Robertson Stephens Developing Countries Fund
(formerly, The Robertson Stephens Emerging Markets Fund), The
Robertson Stephens Emerging Growth Fund, and The Robertson Stephens
Value + Growth Fund, each a series of Registrant, are included in Part
B:
Schedules of Net Assets as of March 31, 1995; Schedules of Securities
Sold Short as of March 31, 1995 (the Contrarian Fund and Developing
Countries Fund only); Statements of Assets and Liabilities as of March
31, 1995; Statements of Operations for the periods ended March 31,
1995; Statements of Changes in Net Assets for the periods ended March
31, 1995; Financial Highlights for each of the periods presented;
Notes to Financial Statements; and Reports of Independent Accountant.
2. The following unaudited financial statements for The Robertson
Stephens Contrarian Fund, The Robertson Stephens Developing Countries
Fund (formerly, The Robertson Stephens Emerging Markets Fund), The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Growth
& Income Fund, The Robertson Stephens Partners Fund, and The Robertson
Stephens Value + Growth Fund, each a series of Registrant, also are
included in Part B:
Schedules of Net Assets as of September 30, 1995; Schedules of
Securities Sold Short as of September 30, 1995 (the Contrarian Fund
and Developing Countries Fund only); Statements of Net Assets as of
September 30, 1995; Statements of Operations for the periods ended
September 30, 1995; Statements of Changes in Net Assets for the
periods ended September 30, 1995; Financial Highlights for each of the
periods presented; and Notes to Financial Statements.
(b) Exhibits
1.(a) Copy of Amended and Restated Agreement and Declaration of Trust
of Registrant.(A)
1.(b) Copy of Certificate of Amendment of Agreement and Declaration of
Trust of Registrant.(C)
1.(c) Copy of Certificate of Amendment of Agreement and Declaration of
Trust of Registrant.(D)
1.(d) Copy of Certificate of Amendment of Agreement and Declaration of
Trust of Registrant.(L)
2. Copy of By-Laws of Registrant.(A)
3. Inapplicable.
4. Specimen Share Certificate.(A)
5.(a) Investment Advisory Agreement between Avon Capital Management
Corporation (now Robertson Stephens Investment Management, Inc.)
and Registrant on behalf of Robertson Stephens Emerging Growth
Fund.(B)
5.(b) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, Inc. and Registrant on behalf of Robertson
Stephens Value Plus Fund.(D)
C-1
<PAGE>
5.(c) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, L.P. and Registrant on behalf of
Robertson Stephens Contrarian Fund.(G)
5.(d) Agreement between Robertson Stephens Investment Management, Inc.,
Robertson Stephens Investment Management, L.P., Robertson,
Stephens & Company, L.P. and Registrant on behalf of Robertson
Stephens Value Plus Fund.(H)
5.(e) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, L.P. and Registrant on behalf of
Robertson Stephens Emerging Markets Fund.(I)
5.(f) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, L.P. and Registrant on behalf of Robertson
Stephens Partners Fund.(L)
5.(g) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, L.P. and Registrant on behalf of Robertson
Stephens Growth & Income Fund.(M)
5.(h) Form of Investment Advisory Agreement between Robertson Stephens
Investment Management, L.P. and Registrant (on behalf of each of
Robertson Stephens Global Low-Priced Stock Fund, Robertson
Stephens Global Natural Resources Fund, and Robertson Stephens
Information Age Fund).(N)
5.(i) Form of Letter Agreement regarding the Investment Advisory
Agreement listed in 5(d), above.(*)
6.(a) Underwriting Agreement and Selling Group Agreement.(F)
6.(b) Consent of the Board of Trustees of Registrant.(H)
7. Inapplicable.
8. Custodian Agreement between Registrant and State Street Bank and
Trust.(E)
9. Form of Administrative Services Agreement.(N)
10. Inapplicable.
11. Consent of Independent Accountants.*
12. Inapplicable.
13. Letter of Understanding Relating to Initial Capital.(A,J)
14. Disclosure Statement, Custodial Account Agreement and related
documents for an Individual Retirement Account (State Street Bank
and Trust).(E)
15.(a) Distribution Plan Pursuant to Rule 12b-l adopted by Registrant
for Robertson Stephens Emerging Growth Fund.(A)
15.(b) Form of Distribution Plan Pursuant to Rule 12b-l adopted by
Registrant for Robertson Stephens Contrarian Fund.(G)
C-2
<PAGE>
15.(c) Form of Distribution Plan Pursuant to Rule 12b-l adopted by
Registrant for Robertson Stephens Emerging Markets Fund (now,
Robertson Stephens Developing Countries Fund).(I)
15.(d) Form of Distribution Plan Pursuant to Rule 12b-1 adopted by
Registrant for Robertson Stephens Partners Fund.(L)
15.(e) Form of Distribution Plan Pursuant to Rule 12b-1 adopted by
Registrant for Robertson Stephens Growth & Income Fund.(L)
15.(f) Form of Distribution Plan Pursuant to Rule 12b-1 (in respect of
each of Robertson Stephens Global Low-Priced Stock Fund,
Robertson Stephens Global Natural Resources Fund and Robertson
Stephens Information Age Fund).(N)
15.(g) Form of Distribution Plan Pursuant to Rule 12b-1 (in respect of
Robertson Stephens Value + Growth Fund).(*)
16. Schedule of Computation of Performance Quotation.(D)
17.(a) Power of Attorney.(H)
17.(b) Power of Attorney of Terry R. Otton.(M)
Incorporated by a reference to like-numbered exhibits:
(A) Previously filed as part of the Registration Statement filed
August 12, 1987.
(B) Previously filed as part of the Post-Effective Amendment No.
1 to the Registration Statement on March 3, 1988.
(C) Previously filed as part of the Post-Effective
Amendment No. 4 to the Registration Statement on
May 1, 1991.
(D) Previously filed as part of the Post-Effective Amendment No.
6 to the Registration Statement on March 12, 1992.
(E) Previously filed as part of the Post-Effective Amendment No.
8 to the Registration Statement on June 30, 1992.
(F) Previously filed as part of the Post-Effective Amendment No.
11 to the Registration Statement on February 5, 1993.
(G) Previously filed as part of the Post-Effective Amendment No.
13 to the Registration Statement on April 30, 1993.
(H) Previously filed as part of the Post-Effective Amendment No.
16 to the Registration Statement on December 8, 1993.
(I) Previously filed as part of the Post-Effective Amendment No.
18 to the Registration Statement on April 29, 1994.
(J) Previously filed as part of the Post-Effective Amendment No.
19 to the Registration Statement on July 5, 1994.
(K) Previously filed as part of the Post-Effective Amendment No.
20 to the Registration Statement on October 14, 1994.
(L) Previously filed as part of the Post-Effective Amendment No.
21 to the Registration Statement on April 28, 1995.
(M) Previously filed as part of the Post-Effective Amendment No.
22 to the Registration Statement on July 3, 1995.
(N) Previously filed as part of the Post-Effective Amendment No.
23 to the Registration Statement on September 1, 1995.
C-3
<PAGE>
(*) Filed herewith.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
As of the date of this Registration Statement, there is no person
controlled by or under common control with the Registrant.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
On December 31, 1995, Registrant had the following number of security
holders:
TITLE OF CLASS NUMBER OF RECORD HOLDERS
-------------- ------------------------
Shares of Beneficial Interest 13,043
of The Robertson Stephens
Contrarian Fund
Shares of Beneficial Interest 1,039
of The Robertson Stephens
Developing Countries Fund
Shares of Beneficial Interest 7,803
of The Robertson Stephens
Emerging Growth Fund
Shares of Beneficial Interest 57
of The Robertson Stephens
Global Low-Priced Stock
Fund
Shares of Beneficial Interest 43
of The Robertson Stephens
Global Natural Resources
Fund
Shares of Beneficial Interest 3,304
of The Robertson Stephens
Growth & Income Fund
Shares of Beneficial Interest 1,625
of The Robertson Stephens
Information Age Fund
C-4
<PAGE>
Shares of Beneficial Interest 249
of The Robertson Stephens
Partners Fund
Shares of Beneficial Interest 30,252
of The Robertson Stephens
Value + Growth Fund
ITEM 27. INDEMNIFICATION
Under the terms of Registrant's By-laws, Article XI (See Exhibit 2 to this
Registration Statement), Registrant may indemnify and insure its trustees,
officers, employees, agents and other persons who may be indemnified by
Registrant under the Investment Company Act of 1940.
Insofar as indemnification for liabilities arising under the Securities Act
may be permitted to trustees and officers and controlling persons of Registrant
pursuant to the foregoing provisions, or otherwise, Registrant has been advised
that in the opinion of the Securities and Exchange Commission, such
indemnification by Registrant is against public policy as expressed in the
Securities Act, and therefore may be unenforceable. In the event that a claim
for such indemnification (except insofar as it provides for the payment by
Registrant of expenses incurred or paid by a trustee, officer or controlling
person in the successful defense of any action, suit or proceeding) is asserted
against Registrant by any trustee, officer or controlling person and the
Securities and Exchange Commission is still of the same opinion, Registrant
will, unless in the opinion of its counsel the matter has been settled by a
controlling precedent, submit to a court of appropriate jurisdiction the
question of whether such indemnification by it is against public policy as
expressed in the Securities Act, and will be governed by the final adjudication
of such issue.
Registrant also participates in a policy of insurance which insures
Registrant, its present, past and future trustees, officers, employees, agents
and investment advisers against any liability incurred on account of any alleged
negligent act, error or omission committed in connection with the operation of
the Trust, but excluding losses incurred by reason of any fraudulent breach of
trust or intention to deceive or defraud, or dishonest, criminal or malicious
act finally adjudicated. Coverage for the insureds generally includes losses
incurred by reason of any actual or alleged breach of duty, neglect, error,
misstatement, misleading statement or other act or omission committed by such
person in such capacity, but generally excludes losses incurred on account of
personal dishonesty, fraudulent breach of trust, lack of good faith or intention
to deceive or defraud or willful failure to act prudently.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
Robertson Stephens Investment Management, Inc. ("RSIM, Inc."), a Delaware
corporation, and Robertson, Stephens & Company Investment Management, L.P.
("RSIM, L.P."), a California limited partnership, are the investment advisers to
Registrant. Since they commenced operations in March 1986 and June 1993,
respectively, RSIM Inc.'s and RSIM, L.P.'s principal businesses have been to
render investment advisory services to clients, including Registrant, limited
partnerships and various private accounts.
RSIM, Inc. is wholly owned by Robertson, Stephens & Company LLC, a Delaware
limited liability company, of which Robertson, Stephens & Company Group, L.L.C.,
a Delaware limited liability company, is the managing member and Robertson,
Stephens & Company, Inc., a
C-5
<PAGE>
California corporation, is the only other member. Robertson, Stephens & Company
LLC is a registered securities broker-dealer and the principal underwriter for
each of the Funds.
RSIM, L.P.'s sole general partner is Robertson, Stephens & Company, Inc.,
and its sole limited partner is Robertson, Stephens & Company LLC.
Information about G. Randy Hecht, an officer of RSIM, L.P. and a director
of RSIM, Inc. and Robert C. Czepiel, President, Treasurer and Portfolio Manager
of RSIM, Inc. for Robertson Stephens Emerging Growth Fund, is set forth in Part
A herein and under Item 29 below.
Information about Paul H. Stephens, Portfolio Manager of RSIM, L.P. for
Robertson Stephens Contrarian Fund, is set forth in Part A herein and under
Item 29 below.
Information about Ronald E. Elijah, Portfolio Manager of RSIM, L.P. for
Robertson Stephens Information Age Fund and Robertson Stephens Value+ Growth
Fund, is set forth in Part A herein and under Item 29 below.
Information about Michael Hoffman, Portfolio Manager of RSIM, L.P. for
Robertson Stephens Developing Countries Fund, is set forth in Part A herein.
Information about Andrew P. Pilara, Jr., Portfolio Manager of RSIM, L.P.
for Robertson Stephens Partners Fund and for Robertson Stephens Global Natural
Resources Fund, is set forth in Part A herein and under Item 29 below.
Information about Hannah Sullivan, Portfolio Manager of RSIM, L.P. for
Robertson Stephens Global Low-Priced Stock Fund, is set forth in Part A herein.
Information about John L. Wallace, Portfolio Manager of RSIM, L.P. for
Robertson Stephens Growth & Income Fund, is set forth in Part A herein and under
Item 29 below.
David J. Evans, Secretary and Security Analyst of RSIM, Inc., joined RSIM,
Inc. in September 1989 from CIGNA Investment Management where he was a Vice
President and Portfolio Manager from September 1984 to June 1989.
Herbert L. Damner, Jr., a Director of RSIM, Inc., has been a partner of
Damner, Pike & Co., a real estate firm located at 345 California Street, 21st
Floor, San Francisco, CA 94104, since January 1984.
ITEM 29. PRINCIPAL UNDERWRITERS.
(a) Robertson, Stephens & Company LLC is the principal underwriter of each of
the Funds. Robertson, Stephens & Company LLC acts as the principal
underwriter, depositor and/or investment adviser for the following private
investment companies:
RCS II, a Limited Partnership The Robertson Stephens Orphan Fund-C-
RCS III, a CA Limited Partnership RCS Health Care Partners, LP
RCS/BNP Atlantic Fund RS & Co. IV, L.P.
RS Property Fund I, L.P. Environmental Venture Fund
RS Residential Fund, L.P. RCS Limited Environment Private Equity
Fund II
Bayview Investors, L.P. Crossover Fund, L.P.
Crossover II, L.P. The Robertson Stephens Black Bear Fund,
L.P.
C-6
<PAGE>
(b) The table below sets forth certain information as of December 31, 1995 as
to the members of Robertson, Stephens & Company LLC, the principal
underwriter of Registrant's shares. The managing member of Robertson,
Stephens & Company LLC is Robertson, Stephens & Company Group, L.L.C., a
Delaware limited liability company. The principal business address for
each of the persons named below is 555 California Street, San Francisco, CA
94104.
<TABLE>
<CAPTION>
POSITIONS AND OFFICES POSITIONS AND OFFICES
NAME WITH UNDERWRITER WITH REGISTRANT
<S> <C> <C>
Mary Katherine Barger Managing Director and Member None
Brian S. Bean Managing Director and Member None
M. Kathleen Behrens Managing Director and Member None
Richard G. Bianchina Managing Director and Member None
Frank W. Birnie, Jr. Managing Director and Member None
Farah H. Champsi Managing Director and Member None
William J. Connolly Managing Director and Member None
Brendan Dyson Managing Director and Member None
Richard C. Edwards Managing Director and Member None
Ronald E. Elijah Managing Director and Member None
Robert L. Emery Managing Director and Member None
Kenneth R. Fitzsimmons, Jr. Managing Director and Member None
James P. Foster Managing Director and Member None
David L. Goldsmith Managing Director and Member None
Robert Grady Managing Director and Member None
John M. Grillos Managing Director and Member None
Charles A. Hamilton Managing Director and Member None
Kenneth C. Haupt Managing Director and Member None
G. Randy Hecht Managing Director and Member President, Chief
Executive Officer,
and Trustee
E. David Hetz Managing Director and Member None
Paul Johnson Managing Director and Member None
Michael H. Joly Managing Director and Member None
Seymour F. Kaufman Managing Director and Member None
John F. Keating, Jr. Managing Director and Member None
Daniel L. Klesken Managing Director and Member None
Janet J. Kloppenburg Managing Director and Member None
Michael G. McCaffery Managing Director and Member None
D. Christie McLellan Managing Director and Member None
Douglas C. Moore Managing Director and Member None
Daniel J. Murphy Managing Director and Member None
Robert J. Nowlin Managing Director and Member None
Terry R. Otton Managing Director and Member Treasurer, Chief
Financial Officer,
and Principal
Accounting Officer
J. Misha Petkevich Managing Director and Member None
Andrew Pilara, Jr. Managing Director and Member None
William Ring Managing Director and Member None
</TABLE>
C-7
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
George V. Robertson Managing Director and Member None
Sanford R. Robertson Managing Director and Member None
Andrew H. Roediger Managing Director and Member None
John P. Rohal Managing Director and Member Trustee
John Rossi Managing Director and Member None
Stephen Schweich Managing Director and Member None
Paul G. Sherer Managing Director and Member None
Mark J. Simon Managing Director and Member None
Michael J. Stark Managing Director and Member None
Paul H. Stephens Managing Director and Member None
John L. Wallace Managing Director and Member None
Edward Weller Managing Director and Member None
Deborah A. Widener Managing Director and Member None
William S. Wisialowski Managing Director and Member None
Vivian R. Wohl Managing Director and Member None
Donald E. Zimmer Managing Director and Member None
(c) Inapplicable.
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The records required by Section 31(a) and Rule 31a-1 through 3 under the
1940 Act will be maintained by Registrant at its offices, 555 California Street,
San Francisco, CA 94104 except that pursuant to Rule 31a-3 under the 1940 Act,
the Transfer Agent (located at 1004 Baltimore, Kansas City, MO 64105) and
Custodian (located at 225 Franklin Street, Boston, MA 02110) for Registrant,
will maintain the records required by subparagraphs (b)(1) and (b)(2)(D) of Rule
31a-1.
ITEM 31. MANAGEMENT SERVICES.
Registrant has entered into an agreement with State Street Bank and Trust
Company for certain transfer agency and shareholder services. Pursuant to the
agreement, State Street Bank and Trust Company, among other things, maintains
accounts for shareholders of record of registrant, processes requests to
purchase and redeem shares and mails communications by Registrant to its
shareholders.
ITEM 32. UNDERTAKINGS.
The Registrant has made the following undertakings which are still
applicable:
(a) Registrant has undertaken to comply with Section 16(a) of the Investment
Company Act of 1940, as amended, which requires the prompt convening of a
meeting of shareholders to elect trustees to fill existing vacancies in the
Registrant's Board of Trustees in the event that less than a majority of
the trustees have been elected to such position by shareholders.
Registrant has also undertaken to promptly call a meeting of shareholders
for the purpose of voting upon the question of removal of any Trustee or
Trustees when requested in writing to do so by the record holders of not
less than 10 percent of the Registrant's outstanding shares and to assist
its shareholders in communicating with other shareholders in accordance
with the requirements of Section 16(c) of the Investment Company Act of
1940, as amended.
(b) Registrant has undertaken to furnish each person to whom a prospectus is
delivered with a copy of the Registrant's latest annual report to
shareholders when available, upon request and without charge.
C-8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, and the
Investment Company of 1940, the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this Amendment to
its Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City and County of San Francisco and State of
California, on the 16th day of January, 1996.
ROBERTSON STEPHENS INVESTMENT TRUST
By: G. Randy Hecht*
--------------------------
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below, on January 16, 1996, by the
following persons in the capacities indicated.
SIGNATURE CAPACITY
G. RANDY HECHT* Principal Executive Officer
- ----------------- and Trustee
George R. Hecht
TERRY R. OTTON* Treasurer, Chief Financial Officer,
- ---------------- and Principal Accounting Officer
Terry R. Otton
LEONARD B. AUERBACH* Trustee
- ----------------------
Leonard B. Auerbach
DANIEL R. COONEY* Trustee
- -------------------
Daniel R. Cooney
JAMES K. PETERSON* Trustee
- -------------------
James K. Peterson
JOHN P. ROHAL* Trustee
- ---------------
John P. Rohal
*By /s/Robert Zidar
------------------------
Robert Zidar, Attorney-in-Fact pursuant
to the Powers of Attorney previously filed.
C-9
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. TITLE PAGE NO.
- ----------- ----- --------
5(i) Form of Letter Agreement regarding the
Investment Advisory Agreement for
Robertson Stephens Value + Growth Fund
11 Consent of Independent Accountants
15(g) Form of Distribution Plan Pursuant to Rule
12b-1 in respect of Robertson Stephens
Value + Growth Fund.
27.1-6 Financial Data Schedules.
C-10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> EMERGING GROWTH FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 134,341
<INVESTMENTS-AT-VALUE> 167,424
<RECEIVABLES> 16,889
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 184,313
<PAYABLE-FOR-SECURITIES> 3,559
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 291
<TOTAL-LIABILITIES> 3,850
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 135,154
<SHARES-COMMON-STOCK> 8,833
<SHARES-COMMON-PRIOR> 9,925
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 12,225
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 33,083
<NET-ASSETS> 180,462
<DIVIDEND-INCOME> 20
<INTEREST-INCOME> 577
<OTHER-INCOME> 32
<EXPENSES-NET> 1,350
<NET-INVESTMENT-INCOME> (721)
<REALIZED-GAINS-CURRENT> 8,396
<APPREC-INCREASE-CURRENT> 13,653
<NET-CHANGE-FROM-OPS> 21,328
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 3,857
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 33,856
<NUMBER-OF-SHARES-REDEEMED> 56,857
<SHARES-REINVESTED> 3,717
<NET-CHANGE-IN-ASSETS> (1,813)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 3,209
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 861
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,351
<AVERAGE-NET-ASSETS> 172,236
<PER-SHARE-NAV-BEGIN> 18.36
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> 2.57
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> (.42)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 20.43
<EXPENSE-RATIO> 1.57
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 2
<NAME> VALUE & GROWTH
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 1,002,640
<INVESTMENTS-AT-VALUE> 1,369,398
<RECEIVABLES> 45,203
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,414,601
<PAYABLE-FOR-SECURITIES> 28,004
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 969
<TOTAL-LIABILITIES> 28,973
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 1,023,632
<SHARES-COMMON-STOCK> 52,188
<SHARES-COMMON-PRIOR> 23,502
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,762)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 366,758
<NET-ASSETS> 1,385,628
<DIVIDEND-INCOME> 1,050
<INTEREST-INCOME> 870
<OTHER-INCOME> 1
<EXPENSES-NET> 6,340
<NET-INVESTMENT-INCOME> (4,419)
<REALIZED-GAINS-CURRENT> (3,234)
<APPREC-INCREASE-CURRENT> 326,093
<NET-CHANGE-FROM-OPS> 318,439
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,200,269
<NUMBER-OF-SHARES-REDEEMED> 562,018
<SHARES-REINVESTED> 35
<NET-CHANGE-IN-ASSETS> 956,725
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 5,746
<INTEREST-EXPENSE> 56
<GROSS-EXPENSE> 6,340
<AVERAGE-NET-ASSETS> 924,616
<PER-SHARE-NAV-BEGIN> 18.25
<PER-SHARE-NII> (.11)
<PER-SHARE-GAIN-APPREC> 8.41
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 26.55
<EXPENSE-RATIO> 1.37
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 3
<NAME> CONTRARIAN
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 204,014
<INVESTMENTS-AT-VALUE> 282,647
<RECEIVABLES> 234,819
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 630,020
<PAYABLE-FOR-SECURITIES> 10,205
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 113,576
<TOTAL-LIABILITIES> 123,781
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 466,936
<SHARES-COMMON-STOCK> 38,164
<SHARES-COMMON-PRIOR> 37,159
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (39,330)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 78,633
<NET-ASSETS> 506,239
<DIVIDEND-INCOME> 1,240
<INTEREST-INCOME> 4,991
<OTHER-INCOME> 0
<EXPENSES-NET> 5,878
<NET-INVESTMENT-INCOME> 353
<REALIZED-GAINS-CURRENT> 17,492
<APPREC-INCREASE-CURRENT> 81,437
<NET-CHANGE-FROM-OPS> 99,282
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 284,407
<NUMBER-OF-SHARES-REDEEMED> 275,096
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 108,593
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3,761
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,336
<AVERAGE-NET-ASSETS> 502,364
<PER-SHARE-NAV-BEGIN> 10.70
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> 2.55
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.26
<EXPENSE-RATIO> 2.34
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 4
<NAME> DEVELOPING COUNTRIES FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 18,735
<INVESTMENTS-AT-VALUE> 16,951
<RECEIVABLES> 1,650
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 18,601
<PAYABLE-FOR-SECURITIES> 953
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2
<TOTAL-LIABILITIES> 955
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 20,372
<SHARES-COMMON-STOCK> 1,941
<SHARES-COMMON-PRIOR> 974
<ACCUMULATED-NII-CURRENT> 6
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (949)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,783)
<NET-ASSETS> 17,646
<DIVIDEND-INCOME> 104
<INTEREST-INCOME> 53
<OTHER-INCOME> 0
<EXPENSES-NET> 177
<NET-INVESTMENT-INCOME> (20)
<REALIZED-GAINS-CURRENT> (232)
<APPREC-INCREASE-CURRENT> 536
<NET-CHANGE-FROM-OPS> 285
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 20,022
<NUMBER-OF-SHARES-REDEEMED> 11,006
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 9,301
<ACCUMULATED-NII-PRIOR> 26
<ACCUMULATED-GAINS-PRIOR> (718)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 96
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 264
<AVERAGE-NET-ASSETS> 15,467
<PER-SHARE-NAV-BEGIN> 857
<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> .53
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.09
<EXPENSE-RATIO> 2.29
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 5
<NAME> PARTNERS FUND
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-12-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 3,180
<INVESTMENTS-AT-VALUE> 3,209
<RECEIVABLES> 5,200
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,409
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<OTHER-ITEMS-LIABILITIES> 27
<TOTAL-LIABILITIES> 103
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8,194
<SHARES-COMMON-STOCK> 815
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 25
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 58
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 29
<NET-ASSETS> 8,306
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 69
<OTHER-INCOME> 0
<EXPENSES-NET> 44
<NET-INVESTMENT-INCOME> 25
<REALIZED-GAINS-CURRENT> 58
<APPREC-INCREASE-CURRENT> 29
<NET-CHANGE-FROM-OPS> 112
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
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<NUMBER-OF-SHARES-SOLD> 9,133
<NUMBER-OF-SHARES-REDEEMED> 939
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 8,306
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<GROSS-EXPENSE> 87
<AVERAGE-NET-ASSETS> 6,870
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> .15
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
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<PER-SHARE-NAV-END> 10.19
<EXPENSE-RATIO> 2.88
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<SERIES>
<NUMBER> 6
<NAME> GROWTH & INCOME
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-12-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 95,548
<INVESTMENTS-AT-VALUE> 100,068
<RECEIVABLES> 8,604
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 108,672
<PAYABLE-FOR-SECURITIES> 7,007
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 126
<TOTAL-LIABILITIES> 7,133
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 97,402
<SHARES-COMMON-STOCK> 9,439
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 38
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (420)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4,519
<NET-ASSETS> 101,539
<DIVIDEND-INCOME> 130
<INTEREST-INCOME> 172
<OTHER-INCOME> 0
<EXPENSES-NET> 264
<NET-INVESTMENT-INCOME> 38
<REALIZED-GAINS-CURRENT> (420)
<APPREC-INCREASE-CURRENT> 4,519
<NET-CHANGE-FROM-OPS> 4,137
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 104,352
<NUMBER-OF-SHARES-REDEEMED> 6,950
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 101,539
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<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 123
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<GROSS-EXPENSE> 264
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<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> .01
<PER-SHARE-GAIN-APPREC> .75
<PER-SHARE-DIVIDEND> 0
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<PER-SHARE-NAV-END> 10.76
<EXPENSE-RATIO> 1.95
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<PAGE>
ROBERTSON, STEPHENS & COMPANY
INVESTMENT MANAGEMENT, L.P.
January 1, 1996
Robertson Stephens Investment Trust
555 California Street
San Francisco, CA 94104
Re: Robertson Stephens Value + Growth Fund
--------------------------------------
Dear Sirs:
Reference is made to the Investment Advisory Agreement (the "Agreement")
dated as of April 17, 1992, between Robertson Stephens Investment Trust (the
"Trust") in respect of the Robertson Stephens Value +Growth Fund, a series of
shares of the Trust (the "Fund"), on the one hand, and Robertson, Stephens &
Company Investment Management, L.P. ("RSIM"), on the other, and to the
Distribution Plan of the Fund to be implemented on this date, contemplating the
payment of fees by the Fund to Robertson, Stephens & Company LLC ("RS&Co."), the
Fund's distributor.
RSIM hereby agrees that the fee payable by the Fund to RSIM pursuant to
Section 8 of the Agreement shall be reduced in respect of any period when the
Distribution Plan is in effect by an amount equal to the fees payable by the
Fund to RS&Co. under the Distribution Plan for such period.
<PAGE>
A copy of the Declaration of Trust of the Trust is on file with the
Secretary of State of the Commonwealth of Massachusetts, and notice is hereby
given that this instrument is executed on behalf of the Trust by an officer of
the Trust as an officer and not individually and the obligations of the Trust
arising out of this Agreement are not binding upon any of the trustees,
officers, or shareholders of the Trust individually but are binding only upon
the assets and property of the Trust.
If this letter reflects your understanding of our agreement, please sign in
the space indicated below, whereupon this letter shall become a binding
agreement between under seal.
Very truly yours,
ROBERTSON, STEPHENS & COMPANY
INVESTMENT MANAGEMENT, L.P.
By ___________________________
Title:
Accepted and agreed:
ROBERTSON STEPHENS INVESTMENT TRUST
By ___________________________
Title:
3098287.01
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 24 to the registration statement on Form N-1A (the "Registration
Statement") of our reports dated April 21, 1995, relating to the financial
statements and financial highlights of: The Robertson Stephens Contrarian Fund,
The Robertson Stephens Emerging Growth Fund, The Robertson Stephens Developing
Countries Fund (formerly The Robertson Stephens Emerging Markets Fund) and The
Robertson Stephens Value + Growth Fund, (which comprised The Robertson Stephens
Investment Trust at March 31, 1995), which are also incorporated by reference
into the Registration Statement. We also consent to the references to us under
the heading "Financial Highlights" in such Prospectus and to the reference to us
under the heading "Auditors" in such Statement of Additional Information.
PRICE WATERHOUSE LLP
San Francisco, California
January 16, 1996
<PAGE>
ROBERTSON STEPHENS VALUE + GROWTH FUND
DISTRIBUTION PLAN
This Distribution Plan (the "Plan") is adopted in accordance with Rule 12b-
1 (the "Rule") under the Investment Company Act of 1940, as amended (the "Act"),
by ROBERTSON STEPHENS INVESTMENT TRUST, a business trust organized under the
laws of the Commonwealth of Massachusetts (the "Trust"), with respect to its
series of shares designated as ROBERTSON STEPHENS VALUE + GROWTH FUND (the
"Fund").
1. ANNUAL FEE. The Trust will pay to Robertson, Stephens & Company LLC
("RS&Co."), as the distributor of the Fund's shares, an annual fee for
RS&Co.'s services in such capacity including its expenses in connection
with the promotion and distribution of the Fund's shares (collectively,
"Distribution Expenses"). The annual fee paid to RS&Co. under the Plan
will be calculated daily and paid monthly by the Fund on the first day of
each month at an annual rate of 0.25% of the Fund's average daily net
assets.
2. DISTRIBUTION EXPENSES IN EXCESS OF OR LESS THAN AMOUNT OF FEE. All
Distribution Expenses of RS&Co. in excess of its compensation hereunder
shall be borne by RS&Co. The fees paid by the Trust on behalf of the Fund
shall not be refundable in the event that in any given year the fees are
greater than RS&Co.'s Distribution Expenses for that year.
3. EXPENSES COVERED BY THE PLAN. The fee paid to RS&Co. under Section 1 of
the Plan may be used by RS&Co. to pay for any expenses primarily intended
to result in the sale of the Fund's shares, including, but not limited to:
(a) costs of payments, including incentive compensation, made to the
partners and employees of, agents for and consultants to RS&Co. or any
other broker-dealers that engage in the distribution of the Fund's shares;
(b) payments made to, and expenses of, persons who provide support services
in connection with the distribution of the Fund's shares, including, but
not limited to, personnel of RS&Co., office space and equipment, telephone
facilities, answering routine inquiries regarding the Fund, processing
shareholder transactions and providing any other shareholder services not
otherwise provided by the Trust's transfer agency; (c) all payments made
pursuant to the form of Distribution and Service Agreement attached hereto
as an Exhibit; (d) costs relating to the formulation and implementation of
marketing and promotional activities, including, but not limited to,
<PAGE>
direct mail promotions and television, radio, newspaper, magazine and other
mass media advertising; (e) costs of printing and distributing
prospectuses, statements of additional information and reports of the Fund
to prospective shareholders of the Fund; (f) costs involved in preparing,
printing and distributing sales literature pertaining to the Fund; and (g)
costs involved in obtaining whatever information, analyses and reports with
respect to marketing and promotional activities that the Trust may, from
time to time, deem advisable. Such expenses shall be deemed incurred
whether paid directly by RS&Co. or by a third party to the extent
reimbursed therefor by RS&Co.
4. PROPHYLACTIC PROVISIONS. No additional payments are to be made by the
Trust with respect to the Fund as a result of the Plan other than (a) the
compensation the Fund is otherwise obligated to pay to Robertson, Stephens
& Company Investment Management, L.P. (the "Adviser") pursuant to the
Investment Advisory Agreement as in effect at any time, (b) payments
pursuant to Section 1 of the Plan, and (c) payments made by the Fund in the
ordinary course of its business. To the extent any payments by the Fund
under Subparagraph (b) above, or to or by the Adviser, RS&Co. or other
parties on behalf of the Fund, the Adviser or RS&Co. are deemed to be
payments for the financing of any activity primarily intended to result in
the sale of shares of the Fund within the context of the Rule, then such
payments shall be deemed to have been made pursuant to the Plan, except
that the limitation set forth in the first sentence of Section 2 of the
Plan shall not apply. The costs and activities, the payment of which are
intended to be within the scope of the Plan pursuant to this Section, shall
include, but not necessarily be limited to, the following:
a. the costs of preparing, printing, and mailing all required reports and
notices to existing shareholders;
b. the costs of preparing, printing, and mailing or other dissemination
of all prospectuses and statements of additional information;
c. the costs of preparing, printing and mailing any proxy statements,
proxies and related solicitation materials;
d. all legal and accounting fees relating to the preparation of any such
reports, prospectuses, proxies, proxy statements and related
solicitation materials;
-2-
<PAGE>
e. all fees and expenses relating to the qualification of the Trust
and/or Fund and/or its shares under the securities or "Blue Sky" laws
of any jurisdiction;
f. all fees under the Securities Act of 1933 and the Act, including fees
in connection with any application for exemption relating to or
directed toward the sale of the Fund's shares;
g. all fees and assessments of the Investment Company Institute and other
trade or any successor organizations, irrespective of whether some of
its activities are designed to provide sales assistance;
h. all costs of preparing and mailing confirmations of shares sold or
redeemed, and reports of share balances;
i. all costs of responding to telephone or mail inquiries of investors or
prospective investors; and
j. payments to dealers, financial institutions, advisers, or other firms,
any one of whom may receive monies (in addition to any amounts paid
pursuant to the Exhibit hereto) in respect to the Fund's shares owned
by shareholders for whom such firm is the dealer of record or holder
of record in any capacity, or with whom such firm has a servicing,
agency, or distribution relationship. Servicing may include, among
other things: (A) answering client inquiries regarding the Fund; (B)
assisting clients in changing account designations and addresses; (C)
performing subaccounting; (D) establishing and maintaining shareholder
accounts and records; (E) processing purchase and redemption
transactions; (F) providing periodic statements showing a client's
account balance and integrating such statements with those of other
transactions and balances in the client's other accounts serviced by
such firm; (G) arranging for bank wire transfers; and (H) such other
services as the Fund may require.
5. WRITTEN REPORTS. RS&Co. shall furnish to the Board of Trustees of the
Trust, for their review, on a quarterly basis, a written report of the
monies paid to it under the Plan and the purposes for which such monies
were expended, and shall furnish the Board of Trustees of the Trust with
such other information as the Board of Trustees may reasonably request in
connection with the payments made under the Plan in order to
-3-
<PAGE>
enable the Board of Trustees to make an informed determination of whether
the Plan should be continued.
6. TERMINATION. The Plan may be terminated at any time, without penalty, by
vote of a majority of the outstanding voting securities of the Fund or by a
majority of the Trustees who are not interested persons of the Trust and
have no direct or indirect financial interest in the operation of the Plan
or in any agreements related to the Plan (the "Qualified Trustees"), and
any Distribution and Service Agreement under the Plan may be likewise
terminated, on not more than sixty (60) days prior written notice.
7. AMENDMENTS. The Plan and any Distribution and Service Agreement may not be
amended to increase materially the amount to be spent for distribution and
servicing of Fund shares pursuant to Section 1 hereof without approval by a
majority of the outstanding voting securities of the Fund. All material
amendments to the Plan and any Distribution and Service Agreement entered
into with third parties shall also be approved in the manner described in
Section 10, below.
8. SELECTION OF NON-INTERESTED TRUSTEES. So long as the Plan is in effect,
the selection and nomination of the Trust's non-interested Trustees shall
be committed to the discretion of such non-interested Trustees.
9. RELATIONSHIP TO AGREEMENT AND DECLARATION OF TRUST. A copy of the
Agreement and Declaration of Trust of the Trust is on file with the
Secretary of State of the Commonwealth of Massachusetts and notice is
hereby given that this Plan is executed on behalf of the Trustees of the
Trust as Trustees, and not individually, and that the Trust's obligations
arising out of this Plan are not binding upon the Trustees or holders of
the Trust's shares individually but are binding only upon the assets and
property of the Fund.
10. EFFECTIVE DATE OF PLAN. The Plan shall take effect on January 1, 1996,
and, unless sooner terminated, shall continue in effect for a period of
more than one year after it takes effect only so long as such continuance
is specifically approved at least annually by votes of the majority (or
whatever greater percentage may, from time to time, be required by Section
12(b) of the Act or the rules and regulations thereunder) of both (i) the
Trustees of the Trust, and (ii) the Qualified Trustees, cast in person at a
meeting called for the purpose of voting on this Plan.
-4-
<PAGE>
11. PRESERVATION OF MATERIALS. The Trust will preserve copies of the Plan, any
agreements relating to the Plan and any report made pursuant to Section 5
above, for a period of not less than six years (the first two years in an
easily accessible place) from the date of the Plan, agreement or report.
12. MEANINGS OF CERTAIN TERMS. As used in the Plan, the terms "interested
person," "majority of the outstanding voting securities" and "assignment"
will be deemed to have the same meaning that those terms have under the Act
and the rules and regulations under the Act, subject to any exemption that
may be granted to the Trust under the Act by the Securities and Exchange
Commission.
-5-
<PAGE>
This Plan and the terms and provisions hereof are hereby accepted and
agreed to by the Trust, on behalf of the Fund, and RS&Co., as evidenced by their
execution hereof, as of this 1st day of January, 1996.
ROBERTSON STEPHENS
INVESTMENT TRUST
By: _________________________
G. Randy Hecht,
President
ROBERTSON, STEPHENS & COMPANY LLC
By: Robertson, Stephens & Company,
Inc., General Partner
By: _________________________
G. Randy Hecht,
Chief Operating Officer
-6-
<PAGE>
EXHIBIT
ROBERTSON STEPHENS VALUE+ GROWTH FUND
Distribution and Service Agreement
__________________________
__________________________
__________________________
__________________________
Gentlemen:
This Distribution and Service Agreement has been adopted pursuant to Rule
12b-1 under the Investment Company Act of 1940, as amended (the "Act"), by
ROBERTSON STEPHENS INVESTMENT TRUST, a Massachusetts business trust (the
"Trust"), on behalf of its series of shares designated as ROBERTSON STEPHENS
VALUE+ GROWTH FUND (the "Fund"), as part of a plan pursuant to said Rule (the
"Plan"). The Plan has been approved by a majority of the Trustees who are not
interested persons of the Trust or the Fund and who have no direct or indirect
financial interest in the operation of the Plan (the "non-interested Trustees"),
cast in person at a meeting called for the purpose of voting on such Plan. Such
approval included a determination that in the exercise of the reasonable
business judgment of the Board of Trustees and in light of the Trustees'
fiduciary duties, there is a reasonable likelihood that the Plan will benefit
the Fund and its shareholders. The Plan has also been approved by a vote of at
least a majority of the outstanding voting securities of the Fund, as defined in
the Act.
1. To the extent you provide distribution, marketing or administrative
services, including, but not limited to, furnishing services and assistance to
your customers who own Fund shares, answering routine inquiries regarding the
Fund, or assisting in changing account designations and addresses, we shall pay
you a monthly fee based on the average net asset value during any month of Fund
shares which are attributable to customers of your firm, at the
-7-
<PAGE>
rate set forth on the Schedule attached hereto and made a part of this Agreement
(the "Schedule"); PROVIDED, HOWEVER, that you acknowledge by your execution
hereof that all payments by the Fund to us under the Plan shall be paid in
accordance with Article III, Section 26 of the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as such Section may change
from time to time ("Section 26"), including, without limitation, the limitations
set forth in Section 26 on the maximum asset-based sales charges (as defined in
Section 26) payable with respect to such shares. Accordingly, it is agreed that
to the extent the fees payable to us under the Plan with respect to the Fund are
reduced or prohibited by the operation of Section 26, our payments to you
hereunder will likewise be reduced or will cease, and you agree that we shall be
obligated to pay you a fee hereunder only if and to the extent we actually
receive a fee from the Fund pursuant to the Plan.
2. In no event may the aggregate annual fee paid to you pursuant to the
Schedule attached hereto exceed _______ [such amount to be negotiable by RS&Co.
but not to exceed 0.75%] percent of the value of the Fund's net assets held in
your customers' accounts which are eligible for payment pursuant to this
Agreement (determined in the same manner as the Fund uses to compute its net
assets as set forth in its then effective Prospectus), without approval by a
majority of the outstanding shares of the Fund.
3. You shall furnish us and the Fund with such information as shall
reasonably be requested by the Trust's Board of Trustees with respect to the
fees paid to you pursuant to the Schedule.
4. We shall furnish to the Board of Trustees of the Trust, for their
review, on a quarterly basis, a written report of the amounts expended under the
Plan by us with respect to the Fund and the purposes for which such expenditures
were made.
5. This Agreement may be terminated by us or by you, by the vote of a
majority of the non-interested Trustees, or by a vote of a majority of the
outstanding shares of the Fund, on sixty (60) days' prior written notice, all
without payment of any penalty. It shall also be terminated automatically by
any act that terminates the Fund's Distribution Plan with Robertson, Stephens &
Company LLC, and in the event of its assignment.
6. The provisions of the Plan between the Trust and us, insofar as they
relate to you, are incorporated herein by reference.
This Agreement shall take effect on the date hereof.
-8-
<PAGE>
ROBERTSON, STEPHENS & COMPANY LLC
By: Robertson, Stephens & Company,
Inc., General Partner
By: ____________________________________
Authorized Officer
Agreed and Accepted:
___________________________
(Name)
By: _______________________
(Authorized Officer)
-9-
<PAGE>
ROBERTSON STEPHENS VALUE + GROWTH FUND
______________________
SCHEDULE TO DISTRIBUTION AND SERVICE AGREEMENT
BETWEEN ROBERTSON, STEPHENS & COMPANY LLC
AND
______________________
(NAME)
Pursuant to the provisions of the Distribution and Service Agreement
between the above parties with respect to ROBERTSON STEPHENS VALUE + GROWTH FUND
(the "Fund"), Robertson, Stephens & Company LLC shall pay a monthly fee to the
above-named party based on the average net asset value of Fund shares during the
previous calendar month the sales of which are attributable to the above-named
party, as follows:
-10-
