<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Global Natural Resources Fund
Annual Report
December 31, 1996
GLOBAL NATURAL RESOURCES
[GRAPHIC]
4
<PAGE>
The Global Natural Resources Fund ANNUAL REPORT
FUND PHILOSOPHY
The Global Natural Resources Fund seeks to achieve long-term capital
appreciation by investing in companies principally engaged in the discovery,
development, production, or distribution of natural resources, the development
of technologies for the production or efficient use of natural resources, or the
furnishing of related supplies or services.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 8
Portfolio Summary 9
Schedule of Investments 10
Statement of Assets and Liabilities 14
Statement of Operations 15
Statement of Changes in Net Assets 16
Financial Highlights 17
Notes to Financial Statements 18
Report of Independent Accountants 23
Administration 24
<PAGE>
FUND HIGHLIGHTS
ENERGY AND ENERGY
SERVICES
In 1996 our best-performing sector was also our largest -- energy and energy
services.
ALUMINUM
Our bullish expectations for aluminum have been pushed out a year to 1998.
GOLD
We continue to stick by our "growth gold" strategy of finding companies that can
grow reserves while maintaining low cash costs and a reasonable level of capital
investment.
FUND GEOLOGIST
Fund Geologist Borden Putnam is expanding his duties with the Fund by examining
the exploration activities of certain oil and gas companies.
1
<PAGE>
[PHOTO]
FUND MANAGER
Andrew P. Pilara, Jr.
Portfolio Manager
The Robertson Stephens Global Natural Resources Fund
DEAR SHAREHOLDER:
The Global Natural Resources Fund was up 8.75% for the fourth quarter and
41.21% for the year ending December 31, 1996. For the same periods, the S&P
500 Index was up 8.37% and 22.99%. (See Fund Performance on page 8.)
ENERGY AND ENERGY SERVICES
In 1996 our best-performing sector was also our largest -- energy and energy
services. Within the energy sector the Canadian companies were our best
performers. When we made our energy investments in Canada we found an
environment with very good valuations (cash flow multiples much lower than U. S.
energy companies) and excellent operating dynamics (good cash flow-per-barrel
equivalents versus finding and development costs). Canada has vast resource
potential. The western Canadian sedimentary basin is one-sixth as drilled as the
United States. We continue to favor the smaller Canadian producers.
In our third-quarter report we mentioned that prices for both oil and gas were
high and maybe unsustainably so.
"In 1996 our BEST-PERFORMING sector was also our LARGEST -- energy and energy
services."
2
<PAGE>
Energy prices have declined since our last report. We are currently in the time
of year when energy prices typically decline into the second quarter. A warmer
winter and higher storage levels on the East Coast have accelerated this
seasonal pattern. Over the short term, stock prices follow commodity prices.
Unlike 1996, when we had the wind at our backs as both oil and gas prices
increased (gas significantly), we expect energy prices to trend lower in 1997.
We have not counted on increasing energy prices to justify our investments. Our
energy investments are based on long-term price assumptions of $18-20 for oil
and $1.75-2.00 for gas. We look for companies that have an ability to grow
reserves at low finding and development costs, and if the price of the commodity
goes up, it's "the cherry on top."
An area receiving a great deal of attention recently is offshore West Africa,
where it has been recognized that this region evolved in the same geological
manner as did offshore Brazil, where significant discoveries of oil and gas have
been and continue to be made. Offshore West Africa is notably underexplored when
compared to the levels of exploration and discovery focused upon the
northeastern Brazilian coast. Available data from marine seismic surveys have
revealed large-scale structures that have trapped great thicknesses of rich
sediment that would provide both a source and a trap for oil and natural gas. We
are participating in this West African play with our investment in ABACAN
RESOURCES, INC. (1.93% of the portfolio at year-end).
Although we are not energy economists, we must reference the supply/demand
complexities in the oil market. There is no question that the emerging economies
of the world will need more oil. In the next five years we expect demand to grow
by a record 10 million barrels (+13%). This compares with an increase of 3.5
million barrels for the first five years of the decade. The key question will be
the supply response. Specifically, can non-OPEC countries continue to increase
production to meet the needs of the emerging countries? Many oil economists have
devoted a great deal of time to this question. We do not profess to
3
<PAGE>
OIL SUPPLY/DEMAND
have the answer, but if these needs are going to be met, there can be no
geopolitical disruptions.
Currently there are a number of factors that question the assumption of OPEC
stability and, therefore, stable oil prices:
- - Succession in the House of Saud
- - Nearly 60 percent of Saudis are under 21
- - The Sunni (Saudi Arabia) - Shiite (Iran) conflict
- - Iranian military power
While there are numerous questions relating to oil supply, we think it is
important to retain exposure to the long-term oil demand dynamics in emerging
markets. We expect that more than 70 percent of the
[PHOTO]
INVESTMENT MANAGEMENT
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
[email protected]
INVESTMENT TEAM
RESEARCH
Borden Putnam III
Senior Trader
Catherine O'Neill
TRADING
Christopher Beagle
4
<PAGE>
growth in oil demand (1996-2000) will come from non-OECD (Organisation for
Economic Co-Operation and Development) countries.
We particularly enjoyed the following quote from Texas investor Richard
Rainwater, which lends some historical perspective to the energy scene and the
mutual fund industry. "In 1993, there were about 700 mutual funds and over 5,000
drilling rigs. In 1995, there are 700 drilling rigs and over 5,000 mutual
funds."
GOLD AND ALUMINUM
Two of our laggard performers in 1996 were our aluminum and gold investments.
Our bullish expectations for aluminum have been pushed out a year to 1998. In
1998 we expect a large supply deficit and significantly higher aluminum ingot
prices. Some aluminum company estimates for 1997 are looking for 5-6% demand
growth. Supply growth appears constrained, and we might even see reduced exports
from the FSU (Former Soviet Union). Adding to the positive supply/demand
dynamics is the fact that world aluminum inventories are the lowest they have
been since the end of 1986. We continue to favor ALUMAX, INC. (0.89%) and KAISER
ALUMINUM CORP. (1.03%).
While the price of gold has declined from more than $400 to $350, our "growth
gold" investments, on average, have turned in a positive performance. We
continue to stick by our "growth gold" strategy of finding companies that can
grow reserves while maintaining low cash costs and a reasonable level of capital
investment. The stock market success of BARRICK GOLD CORPORATION (0.41%) over
the last ten years, in a poor gold price environment, is the prime example of
the growth gold concept.
During the recent San Francisco Gold Show, Borden Putnam, our chief geologist,
had the opportunity to meet a few of our Global Natural Resources Fund
shareholders, and they wanted to discuss some of our mining investments,
particularly FARALLON RESOURCES,
5
<PAGE>
"[CHIEF GEOLOGIST] BORDEN PUTNAM IS EXPANDING HIS DUTIES WITH THE FUND BY
EXAMINING THE EXPLORATION ACTIVITIES OF CERTAIN OIL AND GAS COMPANIES."
LTD. (2.90%). Thus, it may be that others of you have an interest in being
updated on FARALLON'S prospects in Mexico.
Different from so many junior exploration companies, FARALLON is not merely
drill-testing geochemical anomalies, it is drilling-out outcropping bodies of
massive sulfides, comprised of precious metal-rich, high-grade metal. This is
truly the development of an exciting mining camp that should yield a number of
significant economic discoveries that, due to their occurring in
a cluster, should all benefit from the sharing of a common infrastructure.
FARALLON continues its aggressive core drilling campaign on the Reforma massive
sulfide deposit. The company recently began drilling on the adjacent Naranjo
massive sulfide deposit as well, which is one of 12 known individually
outcropping metal occurrences on FARALLON'S property. Recent drill intersections
from South Naranjo are of significant thicknesses of precious metal-rich massive
sulfides, with grades implying that this material has an estimated dollar value
of approximately US $260 per tonne, which is a very high value ore. Ore of this
value can provide for an incredibly profitable open-pit operation for those
portions of the
6
<PAGE>
numerous individual deposits which lie at or near the surface and that in their
root zones can provide for very profitable underground mining as well.
MINING
While we have no particularly brilliant insights on gold price, we can report
to you that we continue to search the world for precious metal investments.
Borden Putnam endeavors to visit the major mining property of each of our
significant mining investments. We believe that it is a competitive advantage to
have Borden "walking the mines." He is currently in Africa doing just that, and
we will be reporting to you when we make our next African gold investment.
Borden is expanding his duties with the Fund by examining the exploration
activities of certain oil and gas companies. His review of maps and geological
data adds value to our efforts in this area. His work has been particularly
insightful in evaluating our ABACAN RESOURCES (1.93%) investment.
The Fund had a successful 1996, our first full year of operations. We know it's
only our "first lap around the track," and we must continue, if not increase,
our research effort. Thank you for your support and trust. It is our hope that
we can build a profitable, long-term relationship.
Sincerely,
/s/ Andrew P. Pilara, Jr.
ANDREW P. PILARA, JR.
Portfolio Manager
February 18, 1997
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT
1-800-766-3863.
7
<PAGE>
FUND PERFORMANCE
Results of a hypothetical $10,000 investment in The Robertson Stephens Global
Natural Resources Fund and the S&P 500 Index(1)
IF INVESTED ON NOVEMBER 15, 1995(2)
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS
GLOBAL NATURAL S&P 500
FOR THE PERIOD ENDED 12/31/96 RESOURCES FUND INDEX(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Since inception (11/15/95)(2) 42.90% 27.88%
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
GLOBAL NATURAL S&P 500
FOR THE PERIODS ENDED 12/31/96 RESOURCES FUND INDEX(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
One Year 41.21% 22.99%
- -----------------------------------------------------------------------------------------------------------------------------
Since inception (11/15/95)(2) 37.20% 24.35%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Standard & Poor's Composite Index of 500 Stocks ("S&P 500 Index") is a
widely recognized, unmanaged index of market activity based on the
aggregate performance of a selected portfolio of publicly traded stocks. It
is widely recognized as representative of the stock market in general.
Investment results assume the reinvestment of dividends paid on the stocks
comprising the index.
(2) Date that the Fund's shares were first offered to the public.
Investors should realize that all performance data presented is based upon
past performance during limited periods of time, and that past performance
is no guarantee of future performance. Investors should also realize that
both investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. The
correlation of performance between an unmanaged index and this Fund is not
usually exact.
International investing can involve greater currency fluctuations and less
political and economic stability. Investing in smaller companies can
involve more volatility, less liquidity, and less publicly available
information. Investing in a more limited number of issuers and sectors can
be subject to greater market fluctuation. Options and futures may not be
perfectly correlated to the underlying index or security.
8
<PAGE>
PORTFOLIO SUMMARY
AS OF DECEMBER 31, 1996
[CHART]
Other/Other Assets 3.2%
Cash/Cash Equivalents 16.5%
Mining/Construction 0.5%
Convertible Bonds 0.6%
Copper Mining 0.9%
Warrants 1.0%
Steel 1.3%
Real Estate 1.4%
Other Base Metals 3.7%
Aluminum 4.2%
Specialty Chemicals 6.3%
Energy 38.2%
Gold Mining 11.8%
Energy Services 10.4%
TOP TEN HOLDINGS
1.
VASTAR RESOURCES, INC.
Explores for, develops, produces, and markets natural gas and crude oil.
2.
W.R. GRACE & COMPANY
Manufactures specialty chemicals, packaging and construction materials, and
container products.
3.
ANDERSON EXPLORATION, LTD.
Acquires, explores for, develops, and produces oil and gas in western Canada.
4.
UNITED MERIDIAN CORPORATION
Explores for, enhances, develops, and acquires oil and gas properties.
5.
UNION PACIFIC RESOURCES GROUP, INC.
Explores for and produces oil and natural gas. Sells gas directly to customers
through its marketing subsidiary, Union Pacific Fuels.
6.
FARALLON RESOURCES, LTD.
Explores for minerals. Developing a gold and silver property in Mexico.
7.
MAXXAM, INC.
A large resource holding company with majority ownership and control of Kaiser
Aluminum and Pacific Lumber, plus numerous real estate assets.
8.
MURPHY OIL CORPORATION
Explores for, develops, and produces natural gas and crude oil.
9.
DAILEY PETROLEUM SERVICES CORPORATION
Provides directional drilling services, and designs, manufactures, and rents
technologically advanced drilling and workover tools.
10.
ULSTER PETROLEUMS, LTD.
Explores for, develops, and produces oil and gas, with interests located
primarily in western Canada and Alberta.
9
<PAGE>
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(4) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------------------------------------
Aluminum - 4.2%
Alumax, Inc. 32,100 $ 1,071,338
Kaiser Aluminum Corporation 107,300 1,247,363
MAXXAM, Inc. 58,600 2,790,825
- -----------------------------------------------------------------------------------------------------------------------------
5,109,526
- -----------------------------------------------------------------------------------------------------------------------------
COPPER/MINING - 0.9%
Indochina Goldfields, Ltd. CAD 93,000 1,093,478
- -----------------------------------------------------------------------------------------------------------------------------
1,093,478
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY - 38.2%
Abacan Corporation CAD 200,000 1,723,508
Abacan Corporation 70,000 608,125
Alberta Energy Company, Ltd.(1) CAD 23,400 558,811
Alberta Energy Company, Ltd.(1) 13,000 312,000
Anderson Exploration, Ltd. CAD 357,000 4,614,694
Aztec Resources, Ltd. CAD 411,500 841,452
Basin Exploration, Inc. 82,500 515,625
Beau Canada Exploration, Ltd. CAD 509,600 893,186
BlackRock Ventures, Inc. CAD 163,000 84,518
Burner Exploration, Ltd. CAD 473,038 570,009
Calahoo Petroleum, Ltd. CAD 1,893,800 1,175,586
Canadian Conquest Exploration, Inc. CAD 721,600 1,291,112
Discovery West Corporation CAD 147,000 257,650
Encal Energy, Ltd. CAD 619,100 1,939,633
Eurogas Corporation CAD 550,514 502,551
HCO Energy, Ltd. CAD 119,200 134,930
Murphy Oil Corporation(1) 51,529 2,774,563
Noble Affiliates, Inc.(1) 4,000 191,500
Oiltec Resources, Ltd., Restricted(1)(3)(6) CAD 865,000 994,943
Olympia Energy, Inc., Class A CAD 465,000 213,941
Pan East Petroleum Corporation CAD 540,700 1,934,879
Paragon Petroleum, Ltd. CAD 294,300 687,768
Petro-Canada Installment Receipts CAD 177,800 1,954,203
Petroleum Securities Australia, Ltd. AUD 143,952 632,743
Petroleum Securities Australia, Ltd., ADR(2) 64,000 1,456,000
Place Resources Corporation, Class A CAD 606,200 889,843
Remington Energy, Ltd. CAD 44,800 458,044
Tarragon Oil & Gas, Ltd. CAD 100,000 1,095,450
Titan Exploration, Inc. 84,000 1,008,000
Ulster Petroleums, Ltd. CAD 338,900 2,375,988
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(4) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY - CONTINUED
Union Pacific Resources Group, Inc.(1) 130,000 $ 3,802,500
United Meridian Corporation 87,000 4,502,250
Vastar Resources, Inc.(1) 131,000 4,978,000
- -----------------------------------------------------------------------------------------------------------------------------
45,974,005
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES - 10.4%
3DX Technologies, Inc. 100,000 1,100,000
Computalog, Ltd. CAD 197,000 2,158,037
Dailey Petroleum Services Corporation 250,000 2,625,000
Dreco Energy Services, Ltd., Class A, Restricted(3)(6) CAD 28,000 991,697
Enerflex Systems, Ltd.(1) CAD 33,700 824,472
NGC Corporation(1) 55,000 1,278,750
Tejas Gas Corporation 4,400 209,550
USX Delhi Group(1) 130,900 2,078,038
Western Gas Resources, Inc.(1) 68,000 1,309,000
- -----------------------------------------------------------------------------------------------------------------------------
12,574,544
- -----------------------------------------------------------------------------------------------------------------------------
GOLD MINING - 11.8%
Barrick Gold Corporation(1) 17,000 488,750
Cambiex Exploration, Inc. CAD 781,500 656,339
Consolidated Mining Corporation, Ltd.(1) ZAR 7,917,700 1,184,646
Corona Goldfields, Inc., Restricted(3)(6) CAD 412,500 301,249
Eagle Mining Corporation NL AUD 195,000 424,688
Emperor Mines, Ltd., ADR(2) 128,500 250,238
Emperor Mines, Ltd. AUD 100,000 194,738
Euro-Nevada Mining Corporation, Ltd.(1) CAD 26,000 776,601
Franco-Nevada Mining Corporation, Ltd.(1) CAD 42,040 1,926,539
General Gold Resources NL AUD 1,268,199 453,612
Golden Star Resources, Ltd. CAD 78,000 1,028,190
Goldstream Mining NL AUD 1,000,000 580,240
Grenfell Resources NL AUD 1,492,000 877,577
Guyanor Resources, S.A., Class B CAD 114,400 772,804
Leo Shield Exploration NL AUD 1,679,671 894,507
Menzies Gold NL AUD 492,311 223,049
Minera Andes, Inc., Restricted(3)(6) CAD 317,460 452,090
Minotaur Gold NL AUD 132,950 88,767
Normandy Mining, Ltd.(1) AUD 742,969 1,027,554
Randgold and Exploration Company, Ltd.(1) ZAR 120,000 814,364
Resolute Samantha Limited Mines(1) AUD 240,000 499,801
Solomon Resources, Ltd. CAD 75,000 76,134
Specialty Retail Concepts, Inc., Restricted(3)(6) CAD 25,000 13,757
Tan Range Exploration Corporation CAD 490,000 286,278
- -----------------------------------------------------------------------------------------------------------------------------
14,292,512
- -----------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(4) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MINING/CONSTRUCTION EQUIPMENT - 0.5%
KCI Konecranes International Corporation FIM 18,000 $ 567,391
- -----------------------------------------------------------------------------------------------------------------------------
567,391
- -----------------------------------------------------------------------------------------------------------------------------
OTHER BASE METALS - 3.7%
Amarc Resources, Ltd. CAD 112,000 237,202
Amarc Resources, Ltd., Restricted(3)(6) CAD 65,000 96,363
Anooraq Resources Corporation CAD 120,000 262,908
Anooraq Resources Corporation, Restricted(3)(6) CAD 65,000 128,168
Farallon Resources, Ltd. CAD 270,800 3,164,245
NDU Resources, Ltd., Restricted(3)(6) CAD 75,000 72,848
Valerie Gold Resources, Ltd. CAD 82,000 476,083
- -----------------------------------------------------------------------------------------------------------------------------
4,437,817
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.4%
Catellus Development Corporation 148,000 1,683,500
- -----------------------------------------------------------------------------------------------------------------------------
1,683,500
- -----------------------------------------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 6.3%
Cabot Corporation(1) 70,000 1,758,750
NL Industries, Inc.(1) 103,300 1,123,388
W. R. Grace & Company(1) 90,000 4,657,500
- -----------------------------------------------------------------------------------------------------------------------------
7,539,638
- -----------------------------------------------------------------------------------------------------------------------------
STEEL - 1.3%
Steel Dynamics, Inc. 80,000 1,530,000
- -----------------------------------------------------------------------------------------------------------------------------
1,530,000
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 78.7% (COST: $83,127,957) 94,802,411
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
PAR VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
Randgold and Exploration Company, Ltd., 7.00%, Due 10/3/01(1) $ 750,000 750,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Convertible Bonds - 0.6% (Cost: $750,000) 750,000
<CAPTION>
WARRANTS
- -----------------------------------------------------------------------------------------------------------------------------
WARRANTS
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Amarc Resources, Ltd., Warrants, Strike CAD 2.05,
Expire 7/16/97(3)(5)(6) CAD 65,000 37,230
Anooraq Resources Corporation, Ltd., Warrants, Strike CAD 2.07,
Expire 9/12/97(3)(5)(6) CAD 65,000 53,225
Brazilian Resources, Inc., 1/2 Warrants, Strike CAD 0.50,
Expire 3/4/99(3)(5) CAD 61,218 13,091
Calahoo Petroleum, Ltd., 3/4 Warrants, Strike CAD 0.65,
Expire 6/28/97(3)(5) CAD 1,327,500 310,866
Farallon Resources, Ltd., Warrants, Strike CAD 6.25,
Expire 5/7/97(3)(5) CAD 45,000 328,933
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(4) WARRANTS VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS - CONTINUED
Minera Andes, Inc., 1/2 Warrants, Strike CAD 2.50,
Expire 12/12/97(3)(5)(6) CAD 317,460 $ 80,240
NDU Resources, Ltd., Warrants, Strike CAD 2.31,
Expire 5/17/98(3)(5)(6) CAD 75,000 29,860
Oiltec Resources, Ltd., Warrants, Strike CAD 1.75,
Expire 2/18/97(3)(5)(6) CAD 865,000 193,513
Solomon Resources, Ltd., 1/2 Warrants, Strike CAD 1.05,
Expire 1/3/98(3)(5) CAD 75,000 19,381
Specialty Retail Concepts, Inc., Warrants, Strike CAD 2.00,
Expire 12/15/97(3)(5)(6) CAD 116,667 170,404
Valerie Gold Resources, Ltd., 1/2 Warrants, Strike CAD 20.00,
Expire 12/27/97(3)(5) CAD 3,500 1,981
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS - 1.0% (COST: $737,093) 1,238,724
<CAPTION>
OPTIONS
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Menzies Gold NL, Strike AUD 1.00, Expires 4/30/98(3) 57,437 2,376
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS - 0.0% (Cost: $14,178) 2,376
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 80.3% (COST: $84,629,228) 96,793,511
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------------------------------------
Cash 107,919
Repurchase Agreement
State Street Bank and Trust Company, 5.00%, dated 12/31/96, due 1/2/97,
maturity value $19,735,481 (collateralized by $15,425,000 par value
U.S. Treasury Notes, 9.25%, due 2/15/16) 19,730,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 16.5% 19,837,919
- -----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 3.2% 3,889,535
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 120,520,965
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Income-producing security.
(2) ADR - American Depository Receipt.
(3) Fair-value security. See 1.a. in Notes to Financial Statements.
(4) Foreign-denominated security; AUD - Australian Dollar, CAD - Canadian
Dollar, FIM - Finnish Markka, ZAR - South African Rand.
(5) See 4.e. in Notes to Financial Statements.
(6) Restricted Security. See 4.d. in Notes to Financial Statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value (Cost: $84,629,228) $ 96,793,511
Cash and cash equivalents 19,837,919
Receivable for investments sold 413,118
Receivable for fund shares subscribed 6,935,191
Dividend/interest receivable 33,399
Organization cost 26,368
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 124,039,506
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 458,597
Payable for fund shares redeemed 2,806,476
Payable to adviser 117,134
Accrued expenses 112,420
Payable to distributor 23,914
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,518,541
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 120,520,965
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital 108,238,480
Accumulated net realized gain on investments 118,292
Net unrealized appreciation on investments 12,164,193
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 120,520,965
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PRICING OF SHARES: $ 14.29
Net Asset Value, offering and redemption price per share
(Net assets of $120,520,965 applicable to 8,435,747 shares
of beneficial interest outstanding with no par value)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 559,075
Dividends (net of foreign tax withheld of $5,285) 174,755
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 733,830
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 487,594
Custodian and transfer agent fees 140,542
Administrative services fee 121,899
Distribution fees 121,899
Professional fees 76,148
Shareholder reports 59,000
Registration and filing fees 24,768
Trustees' fees and expenses 22,326
Organization expense 6,533
Insurance fees 259
Interest expense 22
- -----------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,060,990
Less: Expense waiver by adviser (107,877)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 953,113
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (219,283)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 337,575
Net change in unrealized appreciation on investments 12,158,103
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON INVESTMENTS 12,495,678
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 12,276,395
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
12/31/96 12/31/95(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income $ (219,283) $ 906
Net realized gain on investments 337,575 -
Net change in unrealized appreciation on investments 12,158,103 6,090
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 12,276,395 6,996
- -----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income (823) -
Realized gain on investments - -
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (823) -
- -----------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 107,453,649 784,748
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 107,453,649 784,748
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 119,729,221 791,744
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Beginning of period 791,744 0
End of period $ 120,520,965 $ 791,744
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on November 15, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE FOR THE
FOR A SHARE OUTSTANDING YEAR ENDED PERIOD ENDED
THROUGHOUT EACH PERIOD: 12/31/96 12/31/95(1)(3)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.12 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income (0.06) 0.02
Net realized gain and change in unrealized appreciation on investments 4.24 0.10
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4.18 0.12
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.01) -
Distributions from realized gain on investments - -
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 14.29 $ 10.12
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 41.21% 1.20%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $ 120,520,965 $ 791,744
Ratio of Expenses to Average Net Assets 1.94%(2) 2.60%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (0.45)%(2) 1.84%(2)
Portfolio Turnover Rate 82% 0%
Average Commission Rate Paid(4) 0.0148 -
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on November 15, 1995.
(2) If the Fund had paid all of its expenses and had received no reimbursement
from the Adviser, the ratio of expenses to average net assets for the year
ended December 31, 1996, and the period from November 15, 1995
(Commencement of Operations), through December 31, 1995, would have been
2.16% and 14.25%, respectively, and the ratio of net investment loss to
average net assets would have been (0.67)% and (9.81)%, respectively.
(3) Ratios, except for total return and portfolio turnover rate, have been
annualized.
(4) A fund is required to disclose its average commission rate per share for
security trades on which a commission is charged. This amount may vary from
fund to fund and period to period depending on the mix of trades executed
in various markets where trading practices and commission rate structures
may differ. This rate generally does not reflect markups, markdowns or
spreads on shares traded on a principle basis, if any.
Per-share data for each period has been determined by using the average
number of shares outstanding throughout each period. Distributions reflect
actual per-share amounts distributed for the year.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Global Natural Resources Fund (the "Fund") is a series of
the Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act") as a diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on November 15, 1995. The Trust offers eleven series of shares -- The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value + Growth
Fund, The Contrarian Fund-TM-, The Robertson Stephens Developing Countries Fund,
The Robertson Stephens Growth & Income Fund, The Robertson Stephens Partners
Fund, The Information Age Fund-TM-, The Robertson Stephens Global Natural
Resources Fund, The Robertson Stephens Global Low-Priced Stock Fund, The
Robertson Stephens Diversified Growth Fund, and The Robertson Stephens MicroCap
Growth Fund. The assets for each series are segregated and accounted for
separately.
NOTE 1
SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
a. INVESTMENT VALUATIONS:
Marketable securities are valued at the last sale price on the principal
exchange or market on which they are traded; or, if there were no sales that
day, at the mean between the closing bid and asked prices. Foreign securities
prices are generally denominated in foreign currencies. The currencies are
translated into U.S. dollars by using the exchange rates quoted at the close of
The London Stock Exchange prior to when the Fund's net asset value is next
determined. At December 31, 1996, 95.6% of the Fund's positions were valued in
this manner.
Securities for which market quotations are not readily available are valued at
their fair value as determined in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees. The guidelines and procedures use all
available resources, including quotations from market-makers and fundamental
valuation methods which include, but are not limited to, the analysis of: the
effect of any restrictions on the sale of the security, product development and
trends of the security's issuer, changes in the industry and other competing
companies, significant changes in the issuer's financial position, and any other
event which would have a significant impact on the value of a security. At
December 31, 1996, 4.4% of the Fund's 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 col
18
<PAGE>
lateral'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 complied with requirements of the Internal Revenue Code, qualifying as
a regulated investment company. Therefore, the Fund is not subject to income
tax, and no provision for such tax was made.
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased or 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 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. DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders are recorded on the ex-dividend date.
h. CAPITAL ACCOUNTS:
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains/(losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains/(losses) were recorded by
the portfolio.
NOTE 2
CAPITAL SHARES:
a. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
capital shares for the year ended December 31, 1996, and for the period from
November 15, 1995 (Commencement of Operations), through December 31, 1995, were
as follows:
1/1/96 - 12/31/96 SHARES AMOUNT
- ------------------------------------------------------------------------------
Shares sold 14,550,350 $ 190,686,335
Shares reinvested 54 762
- ------------------------------------------------------------------------------
14,550,404 190,687,097
- ------------------------------------------------------------------------------
Shares redeemed (6,192,868) (83,233,448)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net increase 8,357,536 $ 107,453,649
- ------------------------------------------------------------------------------
11/15/95 - 12/31/95 SHARES AMOUNT
- ------------------------------------------------------------------------------
Shares sold 79,226 $ 794,930
Shares reinvested - -
- ------------------------------------------------------------------------------
79,226 794,930
- ------------------------------------------------------------------------------
Shares redeemed (1,015) (10,182)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net increase 78,211 $ 784,748
- ------------------------------------------------------------------------------
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"), an investment advisory fee and an
administrative services fee calculated respectively at an annual rate of 1.00%
and 0.25% of the average daily net assets of the Fund. For the year ended
December 31, 1996, the Fund incurred investment advisory fees and administrative
fees of $487,594 and $121,899, respectively. RSIM has voluntarily agreed to
waive annual operating expenses exceeding an annual expense ratio of 1.95%. For
the year ended December 31, 1996, the Adviser agreed to waive $107,877 of its
fees and other expenses.
RSIM may recoup waived or reimbursed operating expenses over the succeeding two
years, subject to expense limitations then applicable to the Fund. No previous
expense waivers or reimbursements of operating expenses were recouped by RSIM
from the Fund during the period ended December 31, 1996.
b. AFFILIATED PERSONS:
Certain officers and Trustees of the Fund are also members and/or officers of
Robertson, Stephens & Company Group, L.L.C. ("RS Group"), the managing member of
Robertson, Stephens & Company LLC ("RS & Co."), the Fund's Distributor, and
RSIM, the Fund's Adviser. G. Randy Hecht, President, Chief Executive Officer,
and a Trustee of the Fund, is also a Director of RSIM, a Member of RS Group, and
Chief Operating Officer of RS & Co. Terry R. Otton, Chief Financial Officer of
the 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. Dana K. Welch, Secretary of the Fund, is a member of RS
Group and General Counsel of 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.
20
<PAGE>
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 $22,326 for the year ended December 31, 1996.
d. DISTRIBUTION FEES:
The Fund has entered into an agreement with RS & Co. for distribution services
and has adopted a Plan of Distribution pursuant to Rule 12b-1 under the 1940
Act, which is approved annually by the Fund's Board of Trustees. Under the Plan,
RS & Co. is compensated for services in such capacity, including its expenses in
connection with the promotion and distribution of the Fund's shares. The
distribution fee is calculated at an annual rate of 0.25% of the average daily
net assets of the Fund. For the year ended December 31, 1996, the Fund incurred
distribution fees of $121,899.
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 December 31, 1996, the Fund paid
brokerage commissions of $2,302 to RS & Co., which represented 0.6% of total
commissions paid for the period.
NOTE 4 INVESTMENTS:
a. TAX BASIS OF INVESTMENTS:
At December 31, 1996, the cost of investments for federal income tax purposes
was $84,629,228. Accumulated net unrealized appreciation on investments was
$12,164,283, consisting of gross unrealized appreciation and depreciation of
$13,808,957 and $(1,644,674), respectively.
b. INVESTMENT PURCHASES AND SALES:
For the year ended December 31, 1996, the cost of investments purchased and the
proceeds from investments sold (excluding options and short-term investments)
were $115,735,192 and $31,857,121, respectively.
c. FOREIGN SECURITIES:
Foreign securities investments involve special risks and considerations not
typically associated with those of U.S. origin. These risks include, but are not
limited to, reevaluation of currencies, adverse political, social, and economic
developments, and less reliable information about issuers. Moreover, securities
of many foreign companies and markets may be less liquid and their prices more
volatile than those of U.S. companies and markets.
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
d. RESTRICTED SECURITIES:
A restricted security is a security which 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 typically bear the expense
of all registrations at no cost to the Fund. At December 31, 1996, the Fund held
restricted securities with an aggregate value of $3,615,587, which represented
2.9% of the Fund's total assets. Restricted securities are valued according to
the guidelines and procedures adopted by the Fund's Board of Trustees as
outlined in Note 1.a., paragraph 2.
SHARES COST VALUE ACQUISITION
SECURITY (000) (000) (000) DATE
- ------------------------------------------------------------------------------
Amarc Resources, Ltd. 65 $72 $96 7/17/96
Amarc Resources, Ltd. Warrants 65 25 37 7/17/96
Anooraq Resources Corporation 65 64 128 9/11/96
Anooraq Resources Corporation
Warrants 65 34 53 9/11/96
Corona Goldfields, Inc. 413 300 301 6/18/96
Dreco Energy Services, Ltd. 28 961 992 12/12/96
Minera Andes, Inc. 317 423 452 12/12/96
Minera Andes, Inc. Warrants 317 67 80 12/12/96
NDU Resources, Ltd. 75 87 73 5/16/96
NDU Resources, Ltd. Warrants 75 23 30 5/16/96
Oiltec Resources, Ltd. 865 711 995 11/13/96
Oiltec Resources, Ltd.
Warrants 865 194 194 11/13/96
Specialty Retail Concepts, Inc. 25 14 14 11/25/96
Specialty Retail Concepts, Inc.
Warrants 117 172 171 12/13/96
- ------------------------------------------------------------------------------
$3,147 $3,616
- ------------------------------------------------------------------------------
e. OPTIONS AND WARRANTS:
Options and warrants normally entitle the holder to purchase a proportionate
number of a particular class of the issuer's securities at a predetermined price
during a specific period.
Options and warrants for which market quotations were not readily available were
priced using the modified Black-Scholes Valuation Formula. The Black-Scholes
Valuation Formula values an option or warrant by determining the differential
between the exercise price of the option or 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
option or 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. 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.
22
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of The Robertson Stephens Global
Natural Resources Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Robertson Stephens Global
Natural Resources Fund (the "Fund") at December 31, 1996, and the results of its
operations and the changes in its net assets and the financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards, which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1996, by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
San Francisco, California
February 7, 1997
23
<PAGE>
ADMINISTRATION
OFFICERS AND TRUSTEES
G. Randy Hecht
President, Chief Executive Officer
Terry R. Otton
Chief Financial Officer
Dana K. Welch
Secretary
Leonard B. Auerbach, Trustee
President and Chairman of Auerbach Associates, Inc.
Daniel R. Cooney, Trustee
Former Portfolio Manager of the Lord Abbett Developing Growth Fund
James K. Peterson, Trustee
Former Director of the IBM Retirement Funds
John P. Rohal, Trustee
Managing Director and Director of Research, Robertson, Stephens & Co.
INVESTMENT ADVISER
Robertson, Stephens & Company
Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company LLC
555 California Street, Suite 2600
San Francisco, CA 94104
1-800-766-3863
TRANSFER AGENT AND DISBURSING AGENT
State Street Bank & Trust Company
c/o National Financial Data Services
Kansas City, MO
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
San Francisco, CA
LEGAL COUNSEL
Ropes & Gray
Boston, MA
This report is submitted for the information of shareholders of The Robertson
Stephens Global Natural Resources Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
Published February 28, 1997
24
<PAGE>
Design: Broom & Broom, Inc., San Francisco
Photography: Jerry Orabona, Bill Zemanek
THE ROBERTSON STEPHENS MUTUAL FUNDS
In addition to THE GLOBAL NATURAL RESOURCES FUND, Robertson Stephens offers the
following mutual funds:
THE CONTRARIAN FUND-TM-
A DEFENSIVE POSITION IN TODAY'S VOLATILE MARKET - Invests in attractively
priced, growing companies worldwide that are out of favor or have not been
discovered by institutional investors. Adheres to an independent, aggressive,
and flexible investment strategy. Managed by Paul Stephens.
THE DEVELOPING COUNTRIES FUND
A PORTFOLIO OF GROWING COMPANIES IN EMERGING MARKETS - Invests primarily in
publicly traded equities of developing countries, as well as in private
placement emerging market equity securities. No load. Managed by Michael
Hoffman.
THE DIVERSIFIED GROWTH FUND
FOCUSING ON SMALL- AND MID-CAP COMPANIES - Invests primarily in equity
securities to create a portfolio broadly diversified over industries
and companies. No load. Managed by John Wallace.
THE EMERGING GROWTH FUND
SEEKING TO INVEST IN AMERICA'S MOST DYNAMIC, GROWTH-ORIENTED INDUSTRIES -
Invests primarily in common stocks of emerging growth companies (predominantly
technology, specialty retailing, and health care) with above-average growth
potential. No load. Managed by Jim Callinan.
THE GLOBAL LOW-PRICED STOCK FUND
SEEKING OVERLOOKED AND UNDERVALUED COMPANIES - Invests in companies worldwide
that are low-priced (stock prices no greater than $10 per share), have future
growth potential, but are underappreciated or overlooked by other investors. No
load. Managed by Hannah Sullivan.
THE GROWTH & INCOME FUND
SEEKING HIGH GROWTH WHILE ATTEMPTING TO MANAGE RISK - Invests primarily in
small- and mid-cap company stocks, as well as convertible bonds and preferred
stocks. No load. Managed by John Wallace.
THE INFORMATION AGE FUND-TM-
FOCUSING ON INVESTMENTS IN THE INFORMATION TECHNOLOGY SECTOR - Invests in a wide
range of technology companies with strong fundamentals, market advantage, and
growth potential, including computer hardware and software, telecommunications,
and multimedia. No load. Managed by Ron Elijah.
THE MICROCAP GROWTH FUND
FOCUSING ON COMPANIES WITH MARKET CAPS OF LESS THAN $250 MILLION - Invests
primarily in "micro-cap" companies with the potential for long-term capital
appreciation. No load. Managed by Dave Evans.
THE PARTNERS FUND
A SMALL-CAP FUND USING A VALUE METHODOLOGY - This methodology combines
traditional Graham & Dodd balance sheet analysis and cash flow analysis. No
load. Managed by Andy Pilara, Jr.
THE VALUE + GROWTH FUND
A GROWTH FUND FOR THE LONG-TERM INVESTOR - Invests primarily in growth companies
with favorable price/earnings ratios in sectors with the potential for above-
average growth. No load. Managed by Ron Elijah.
Please read the prospectus to learn about the Funds' objectives, investment
policies, and the special risks associated with The Robertson Stephens Mutual
Funds, including international investing, investing in smaller companies,
investing in a more limited number of issuers and sectors or a particular
sector, short selling, using options and futures, and investing in high-
yielding, lower-quality debt securities.
<PAGE>
ROBERTSON STEPHENS & COMPANY
BRINGING THE FUND MANAGER TO YOU
555 California Street, Suite 2600
San Francisco, California 94104
FUND NEWS & INFORMATION
ROBERTSON STEPHENS INVESTOR SERVICES
- - Knowledgeable mutual fund representatives.
- - Automated access to daily net asset values.
- - Portfolio managers' hotline, 24 hours a day.
1-800-766-3863
ROBERTSON STEPHENS
MUTUAL FUND E-MAIL
[email protected]
ROBERTSON STEPHENS
ON THE WEB
HTTP://WWW.RSIM.COM
ROBERTSON STEPHENS
ACCOUNTLINK
- - Automated account information, 24 hours a day.
1-800-624-8025
FUND LISTINGS
The Fund is listed in THE WALL STREET JOURNAL, USA TODAY, INVESTOR'S BUSINESS
DAILY, and most local newspapers as NatRes under the heading Robertson
Stephens. Its computer quotation symbol is RSNRX.
The views expressed in this report were those of the Fund's portfolio manager as
of the date specified, and may not reflect the views of the portfolio manager on
the date they are first published or at any other time thereafter. RSIM and its
affiliates may buy or sell investments at any time for the Fund, their other
clients or for their own accounts, and may not necessarily do so in a manner
consistent with the views expressed in this report. The prices at which they buy
or sell investments may be affected favorably by the contents of this report or
the timing of its publication. THE VIEWS EXPRESSED IN THIS REPORT ARE INTENDED
TO ASSIST SHAREHOLDERS OF THE FUND IN UNDERSTANDING THEIR INVESTMENT IN THE FUND
AND DO NOT CONSTITUTE INVESTMENT ADVICE; INVESTORS SHOULD CONSULT THEIR OWN
INVESTMENT PROFESSIONALS AS TO THEIR INDIVIDUAL INVESTMENT PROGRAMS.
