<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Global Natural Resources Fund
Second-Quarter Report
June 30, 1997
GLOBAL NATURAL RESOURCES
2
<PAGE>
The Global Natural Resources Fund SECOND QUARTER 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 - Class A Shares 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 - Class A Shares 17
Notes to Financial Statements 18
Administration 24
<PAGE>
FUND HIGHLIGHTS
GOLD MARKET
Difficult market conditions in the mining sector of late have negatively
impacted the Fund's performance.
MINING
Recently we visited ten exploration and mine development sites in western
Africa, where some of our portfolio companies are building new mines and
pursuing world-class discoveries.
ENERGY AND ENERGY SERVICES
Energy and energy services continue to be our long-term focus. We remain heavily
invested in Canadian energy companies.
ALUMINUM
A number of our aluminum investments are cutting costs, restructuring, and
selling assets.
ACQUISITION
During the quarter, BankAmerica agreed to acquire Robertson Stephens. The deal
is subject to regulatory and other approvals, and it is expected to be completed
as early as September 30, 1997.
1
<PAGE>
[PHOTO]
FUND MANAGER
ANDREW P. PILARA, JR.
Portfolio Manager
Global Natural Resources Fund
DEAR SHAREHOLDER:
The Global Natural Resources Fund was up 2.85% for the second quarter and down
3.99% for the six months ending June 30, 1997.
While energy and energy services remain our largest investment position in the
Fund at 41.80%, it was the gold mining sector at 13.50% that had the negative
impact on our performance during the first half of 1997. Subsequent to the
quarter's end, we have reduced our gold mining investments to less than 10% of
the Fund.
I will let Borden Putnam, our chief geologist, describe the mining events
affecting our Fund and report on our largest precious metal investments.
GOLD MARKET COMMENTARY
Difficult market conditions in the mining sector of late have negatively
impacted the Fund's performance. The valuations of gold mining and exploration
companies have suffered due to an abrupt decline in the gold price to 12-year
lows, near $320 per ounce. This sell-off in gold comes after the Australian
central bank
"THE FUND REMAINS INVESTED IN THOSE MINING COMPANIES THAT CAN ECONOMICALLY MINE
AND SELL GOLD...."
2
<PAGE>
announced that over the past six months it had reduced its gold reserves by
more than five million ounces. While that selling PER SE was already
complete, the announcement put new downward pressure on the gold price as it
raised the question of central banks holding gold to support their currencies.
As you are aware, the recent gold price decline follows the sell-off in
mining stocks during the first quarter of 1997 after the disclosure of the
BRE-X MINERALS fraud. As we have stated previously, our Fund never owned any
BRE-X or related companies. However, the entire sector suffered such a wide
loss that the mining holdings in the Fund were negatively impacted.
The Fund remains invested in those mining companies that can economically mine
and sell gold at prices ranging as low as $250 to $275 per ounce. In the
exploration sector, we remain focused on companies exploring quality properties
that have a chance of discovering major, low-cost reserves. Recently we visited
ten exploration and mine development sites in western Africa, where some of our
portfolio companies are building new mines and pursuing world-class
discoveries.
MINING INVESTMENTS
It looks like ETRUSCAN (2.21% of the portfolio at quarter-end) has made an
exciting discovery on the Samira Project in Niger (Africa). Here, with joint
venture partner PLACER DOME, ETRUSCAN continues an intensive drilling campaign
delineating an open-pittable gold resource now approaching two million ounces.
We see upside potential to five million ounces. Placer is expending $4 million
for the right to earn 50% of the project, which will require the payment of an
additional $50 million. The joint venture involves only 81
3
<PAGE>
MINING INVESTMENTS
square kilometers of the total 1,240 square kilometers under license to
ETRUSCAN. The geological targets drilled by PLACER DOME trend toward lands
controlled solely by ETRUSCAN. Elsewhere on the license, at the Boulon Djounga
prospect, ETRUSCAN is drill-delineating a new discovery that could add
significantly to the open-pit resources on the license. These areas are not
subject to the PLACER DOME joint venture. The potential for a world-class
discovery of high-grade, open-pittable gold at Samira and its neighboring
prospects is among the best in the gold industry today.
Elsewhere in Africa, another of our investments, SUTTON RESOURCES (1.60%),
continues its in-depth feasibility study at the Bulyanhulu deposit in Tanzania,
where a gold resource in excess of five million ounces
[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>
is being delineated. Here, underground development continues to advance toward
the ore zone, where trial mining will soon begin. Cash costs are estimated to be
approximately $145 per ounce. Drilling from surface platforms continues to probe
the depth-extent of the deposit, and some of the most recent intersections have
yielded the highest grades over mineable width.
In Mexico, FARALLON (2.07%) continues to drill its important discovery of
precious metal-rich massive sulfides at the Campo Morado project. Of the 12
known occurrences on the property, to date four separate lenses of massive
sulfides have been drill-tested and have been found to contain high ore-grade
concentrations of gold, silver, zinc, and copper. The exploration program has a
discovery rate that surpasses all peer companies. We continue to be excited
about the progress here.
ENERGY AND ENERGY SERVICES
Energy and energy services continue to be our long-term focus. We remain heavily
invested in Canadian
"THE POTENTIAL FOR A WORLD-CLASS DISCOVERY OF HIGH-GRADE, OPEN-PITTABLE GOLD AT
SAMIRA AND ITS NEIGHBORING PROSPECTS IS AMONG THE BEST IN THE GOLD INDUSTRY
TODAY."
5
<PAGE>
"OUR CANADIAN OIL SERVICE INVESTMENTS ARE EXPERIENCING A VERY STRONG OPERATING
ENVIRONMENT."
energy companies. In Canada we find energy investments that:
- - Are cheaper than in the United States
- - Have better reserve growth potential
- - Possess very good science
- - Have better recycle rates (cash flow per BOE to finding and development
costs per BOE)
We favor the Canadian energy industry because:
- - The Western Canadian Sedimentary Basin is one-sixth as drilled as the
United States' basins
- - Pipeline expansions will take additional gas to the United States
- - High decline rates are forcing companies to increase their drilling
- - 12,000 wells were drilled in 1996, we expect about 14,300 to be drilled in
1997, and we could see more than 15,000 drilled in 1998
- - British Columbia and the Northwest Territories are beginning to exhibit
some interesting exploration potential
Our Canadian oil service investments are experiencing a very strong operating
environment. The areas of particular strength are compression (ENERFLEX, 3.17%),
wireline and measurement while drilling (COMPUTALOG, 1.83%), and horizontal
drilling services (RYAN ENERGY, purchased after the end of the quarter).
6
<PAGE>
ALUMINUM
The price of aluminum is strengthening, reflecting the shrinking inventories
reported by the London Metal Exchange. At June 30, 1997, the aluminum sector was
6.20% of the Fund. To the year 2000, we expect annual consumption growth to
average greater than 3% and annual supply growth to average less than 3%.
Although we currently see a little slowing in the emerging Asian country
economies, we still expect a long-term demand boom led by the Pacific Rim
countries. We are dependent on the Former Soviet Union (FSU) for approximately
2.3-2.5 million tons of aluminum a year (in an 18.5 million ton market). The
magnitude of our dependence on the FSU for aluminum is not as large as for our
oil to OPEC, but we could possibly see spot aluminum shortages in the next
twelve months.
A number of our aluminum investments are cutting costs, restructuring, and
selling assets. With the price of aluminum increasing, we could see the double-
barrel effect of rising revenues per ton and lower costs per ton. KAISER
ALUMINUM (1.71%) is the most leveraged aluminum company to a rising ingot price.
Although we have experienced a difficult six months, we believe the long-term
fundamentals of our natural resource companies are probably better today than at
the beginning of the year. As we believe stock prices follow business
fundamentals over the long term, we therefore remain very positive on the
natural resource sector.
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
August 5, 1997
/s/ Borden R. Putnam, III
BORDEN R. PUTNAM, III
Chief Geologist
August 5, 1997
TO HEAR OUR ONGOING THOUGHTS ON THE FUND, CALL OUR PORTFOLIO MANAGER HOTLINE AT
1-800-766-3863.
7
<PAGE>
FUND PERFORMANCE - CLASS A SHARES
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]
CUMULATIVE TOTAL RETURNS
GLOBAL NATURAL S&P 500
FOR THE PERIOD ENDED 6/30/97 RESOURCES FUND INDEX(1)
- ---------------------------------------------------------------------------
Since inception (11/15/95)(2) 37.20% 54.15%
- ---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS
GLOBAL NATURAL S&P 500
FOR THE PERIODS ENDED 6/30/97 RESOURCES FUND INDEX(1)
- ---------------------------------------------------------------------------
One year 11.27% 34.72%
Since inception (11/15/95)(2) 21.49% 30.52%
- ---------------------------------------------------------------------------
(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. You cannot invest in an index itself.
(2) Date that the Fund's Class A 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 JUNE 30, 1997
[GRAPH]
Cash/Cash Equivalents 20.8%
Convertible Bond 0.5%
Steel 0.8%
Warrants 0.8%
Financial Services 1.4%
Real Estate 1.9%
Other Base Metals 4.7%
Specialty Chemicals 5.6%
Aluminum 6.2%
Other/Other Assets, Net 2.0%
Energy 31.4%
Gold Mining 13.5%
Energy Services 10.4%
TOP TEN HOLDINGS
1.
VASTAR RESOURCES, INC. (3.69%)
Explores for, develops, produces, and markets natural gas and crude oil.
2.
SANTA FE ENERGY RESOURCES, INC. (3.55%)
Explores for and produces oil and gas.
3.
W.R. GRACE & COMPANY (3.26%)
Manufactures specialty chemicals, packaging and construction materials, and
container products.
4.
ENERFLEX SYSTEMS, LTD. (3.17%)
Manufactures, services, and leases compressor packages used in gas
production and processing.
5.
TITAN EXPLORATION, INC. (2.93%)
Explores, develops, and acquires oil and gas properties.
6.
EURO-NEVADA MINING CORPORATION (2.55%)
Explores for and mines gold.
7.
FRANCO-NEVADA MINING CORPORATION (2.44%)
Explores for and mines gold. Also holds a significant interest in an oil and gas
portfolio in North America.
8.
ETRUSCAN ENTERPRISES, LTD. (2.21%)
Acquires, explores, and develops mineral properties in North America and West
Africa.
9.
UNION PACIFIC RESOURCES GROUP, INC. (2.21%)
Explores for and produces oil and natural gas. Sells gas directly to
customers through its marketing subsidiary, Union Pacific Fuels.
10.
MAXXAM, INC. (2.11%)
A large resource holding company with majority ownership and control of Kaiser
Aluminum, Pacific Lumber, and numerous real estate assets.
9
<PAGE>
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
JUNE 30, 1997 (UNAUDITED) FOREIGN CURRENCY(5) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------------------------------------
ALUMINUM - 6.2%
Alumax, Inc. 40,000 $ 1,517,500
Kaiser Aluminum Corporation 212,800 2,606,800
MAXXAM, Inc. 68,600 3,211,337
Reynolds Metals Company(1) 30,000 2,137,500
- -----------------------------------------------------------------------------------------------------------------------------
9,473,137
- -----------------------------------------------------------------------------------------------------------------------------
ENERGY - 31.4%
Anderson Exploration, Ltd. CAD 152,000 1,961,077
Barrington Petroleum, Ltd. CAD 579,400 2,309,789
Basin Exploration, Inc. 55,000 426,250
Beau Canada Exploration, Ltd. CAD 509,600 1,145,044
Burner Exploration, Ltd. CAD 473,038 600,043
Calahoo Petroleum, Ltd. CAD 3,145,800 2,166,135
Canadian Conquest Exploration, Inc. CAD 721,600 711,322
Encal Energy, Ltd. CAD 660,200 2,273,004
Eurogas Corporation CAD 637,514 868,718
Grad & Walker Energy Corporation CAD 48,500 391,965
Hanover Compressor Co. 5,000 108,125
Noble Affiliates, Inc.(1) 50,000 1,934,375
Oiltec Resources, Ltd. CAD 865,000 1,285,290
Olympia Energy, Inc., Class A CAD 118,000 47,041
Pan East Petroleum Corporation CAD 545,000 1,422,100
Paragon Petroleum, Ltd. CAD 294,300 853,260
Petro-Canada Installment Receipts(1) CAD 177,800 2,886,761
Petroleum Securities Australia, Ltd. AUD 179,452 813,178
Petroleum Securities Australia, Ltd., ADR(2) 69,000 1,569,750
Place Resources Corporation, Class A CAD 606,200 922,712
Santa Fe Energy Resources, Inc. 367,400 5,396,187
Tarragon Oil & Gas, Ltd. CAD 100,000 1,174,211
Titan Exploration, Inc. 367,500 4,455,937
Ulster Petroleums, Ltd. CAD 338,900 3,070,525
Union Pacific Resources Group, Inc.(1) 135,000 3,358,125
Vastar Resources, Inc.(1) 160,000 5,610,000
- -----------------------------------------------------------------------------------------------------------------------------
47,760,924
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
<TABLE>
<CAPTION>
JUNE 30, 1997 (UNAUDITED) FOREIGN CURRENCY(5) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY SERVICES - 10.4%
3DX Technologies, Inc. 201,000 $ 1,959,750
Bowridge Resources Group, Inc. CAD 297,000 167,912
Computalog, Ltd. CAD 197,000 2,784,402
Dailey Petroleum Services Corporation 147,500 995,625
Enerflex Systems, Ltd.(1) CAD 241,400 4,811,728
NGC Corporation(1) 155,000 2,392,812
Santa Fe International Corporation 26,800 911,200
USX Delhi Group(1) 130,900 1,718,062
- -----------------------------------------------------------------------------------------------------------------------------
15,741,491
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 1.4%
Dundee Bancorp, Inc., Class A CAD 90,000 2,087,486
- -----------------------------------------------------------------------------------------------------------------------------
2,087,486
- -----------------------------------------------------------------------------------------------------------------------------
GOLD MINING - 13.5%
Altoro Gold Corporation CAD 116,667 120,925
Altoro Gold Corporation, Restricted(4),(7) CAD 25,000 19,434
Cambiex Exploration, Inc. CAD 1,033,500 382,043
Consolidated Mining Corporation, Ltd. ZAR 9,917,700 1,180,811
Corona Goldfields, Inc., Restricted(4),(7) CAD 412,500 298,989
Eagle Mining Corporation NL AUD 195,000 369,519
Emperor Mines, Ltd. AUD 78,500 108,773
Etruscan Enterprises, Ltd. CAD 643,700 2,752,749
Euro-Nevada Mining Corporation, Ltd.(1) CAD 126,000 3,881,419
Franco-Nevada Mining Corporation, Ltd.(1) CAD 74,040 3,716,356
General Gold Resources NL AUD 1,268,199 170,979
Golden Star Resources, Ltd. CAD 95,000 784,982
Goldstream Mining NL AUD 1,000,000 344,540
Grenfell Resources NL AUD 1,492,000 268,202
Guyanor Resources, S.A., Class B CAD 175,600 496,387
Leo Shield Exploration NL AUD 1,679,671 515,810
Minera Andes, Inc. CAD 412,160 740,881
Randgold Resources, Ltd., GDR(3) 60,600 999,900
Randgold and Exploration Company, Ltd. ZAR 304,000 1,340,536
Resolute Samantha Limited Mines(1) AUD 569,000 1,005,787
Solomon Resources, Ltd. CAD 75,000 35,335
St. Jude Resources, Ltd. CAD 208,500 528,938
St. Jude Resources, Ltd., Restricted(4),(7) CAD 75,000 180,752
Tan Range Exploration Corporation CAD 490,000 362,266
- -----------------------------------------------------------------------------------------------------------------------------
20,606,313
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
JUNE 30, 1997 (UNAUDITED) FOREIGN CURRENCY(5) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INDUSTRIAL MINERALS - 0.6%
China Industrial Minerals Company, Restricted(4),(7) 640,000 $ 960,000
- -----------------------------------------------------------------------------------------------------------------------------
960,000
- -----------------------------------------------------------------------------------------------------------------------------
OTHER BASE METALS - 4.7%
Amarc Resources, Ltd. CAD 199,700 231,595
Amarc Resources, Ltd., Restricted(4),(7) CAD 65,000 67,843
Anooraq Resources Corporation CAD 185,000 201,138
Farallon Resources, Ltd. CAD 476,800 3,058,515
Inco, Ltd. - Class VBN Shares(1) CAD 40,000 819,048
LionOre Mining International, Ltd. CAD 84,700 270,127
Sutton Resources, Ltd. CAD 286,200 2,302,759
Valerie Gold Resources, Ltd. CAD 134,200 138,125
- -----------------------------------------------------------------------------------------------------------------------------
7,089,150
- -----------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 1.9%
Catellus Development Corporation 117,600 2,131,500
Western Water Company 60,700 804,275
- -----------------------------------------------------------------------------------------------------------------------------
2,935,775
- -----------------------------------------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 5.6%
Cabot Corporation(1) 70,000 1,986,250
NL Industries, Inc.(1) 103,300 1,497,850
W.R. Grace & Company(1) 90,000 4,961,250
- -----------------------------------------------------------------------------------------------------------------------------
8,445,350
- -----------------------------------------------------------------------------------------------------------------------------
STEEL - 0.8%
Steel Dynamics, Inc. 50,000 1,250,000
- -----------------------------------------------------------------------------------------------------------------------------
1,250,000
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 76.5 % (Cost: $109,172,105) 116,349,626
- -----------------------------------------------------------------------------------------------------------------------------
PAR VALUE
- -----------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS
- -----------------------------------------------------------------------------------------------------------------------------
Randgold and Exploration Company, Ltd.,7.00%, Due 10/3/01(1) $ 750,000 738,750
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 0.5% (Cost: $750,000) 738,750
- -----------------------------------------------------------------------------------------------------------------------------
WARRANTS
- -----------------------------------------------------------------------------------------------------------------------------
Amarc Resources, Ltd., Warrants, Strike CAD 2.05, Expire 8/9/97(4),(6),(7) CAD 65,000 5,644
Anooraq Resources Corporation Ltd., Warrants, Strike CAD 2.07,
Expire 9/12/97(4),(6) CAD 65,000 12,190
Brazilian Resources, Inc., 1/2 Warrants, Strike CAD 0.50, Expire 3/4/99(4),(6) CAD 61,218 4,665
Etruscan Enterprises, Ltd., Warrants, Strike CAD 7.50, Expire 4/21/98(4),(6) CAD 600,000 606,906
Farallon Resources, Ltd., Warrants, Strike CAD 6.25, Expire 8/30/97(4),(6) CAD 45,000 90,839
Minera Andes, Inc., 1/2 Warrants, Strike CAD 2.50, Expire 12/12/97(4),(6) CAD 317,460 70,334
NDU Resources Ltd., Warrants, Strike CAD 2.31, Expire 5/17/98(4),(6) CAD 75,000 1,766
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
<TABLE>
<CAPTION>
JUNE 30, 1997 (UNAUDITED) FOREIGN CURRENCY(5) SHARES VALUE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS - CONTINUED
Oiltec Resources Ltd., Warrants, Strike CAD 1.75, Expire 11/18/97(4),(6) CAD 865,000 $ 259,369
Solomon Resources, 1/2 Warrants, Strike CAD 1.05, Expire 1/3/98(4),(6) CAD 75,000 3,633
St. Jude Resources 1/2 Warrants, Strike CAD 5.50, Expire 9/29/98(4),(6),(7) CAD 75,000 29,121
Sutton Resource, Ltd., Warrants, Strike CAD16.00, Expire 9/30/98(4),(6) CAD 26,100 132,424
Valerie Gold Resources, Ltd., Warrants, Strike CAD 20.00, Expire 12/27/97(4),(6) CAD 3,500 0
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.8% (Cost: $2,120,989) 1,216,891
OPTIONS VALUE
- -----------------------------------------------------------------------------------------------------------------------------
OPTIONS
- -----------------------------------------------------------------------------------------------------------------------------
Menzies Gold NL, Strike AUD 1.00, Expires 4/30/98(4),(6) 57,437 671
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL OPTIONS - 0.0% (Cost: $14,178) 671
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 77.8% (Cost: $112,057,272) 118,305,938
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------------------------------------
Cash 916
U.S. Treasury Bill, Due 7/3/97, $5,000,000 par value 4,998,733
Repurchase Agreement
State Street Bank and Trust Company, 5.50%, dated 6/30/97, due 7/1/97,
maturity value $26,651,071 (collateralized by $27,005,000 par value
U.S. Treasury Notes, 6.375%, due 4/30/99) 26,647,000
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 20.8% 31,646,649
- -----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 1.4% 2,075,017
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $152,027,604
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Income-producing security.
(2) ADR - American Depository Receipt.
(3) GDR - Global Depository Receipt
(4) Fair-value security. See 1.a. in Notes to Financial Statements.
(5) Foreign-denominated security; AUD - Australian Dollar, CAD - Canadian
Dollar, ZAR - South African Rand.
(6) See 4.d. in Notes to Financial Statements.
(7) Restricted Security. See 4.c. 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>
JUNE 30, 1997 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value (Cost: $112,057,272) $118,305,938
Cash and cash equivalents 31,646,649
Receivable for investments sold 2,163,350
Receivable for fund shares subscribed 2,663,914
Dividends/interest receivable 56,266
Organization cost 25,575
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 154,861,692
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 1,881,698
Payable for fund shares redeemed 642,699
Payable to adviser 161,985
Accrued expenses 115,309
Payable to distributor 32,397
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,834,088
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $152,027,604
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital 147,809,275
Net investment loss (223,445)
Accumulated net realized loss from investments (1,806,778)
Net unrealized appreciation on investments 6,248,552
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $152,027,604
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PRICING OF SHARES:
Net Asset Value, offering, and redemption price per share - Class A shares $ 13.72
(Net assets of $152,027,604 applicable to 11,077,224 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 SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 923,014
Dividends (net of foreign tax withheld of $15,170) 278,450
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,201,464
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 798,502
Administrative services fees 199,625
Distribution fees - Class A shares 199,625
Transfer agent fees 67,840
Custodian fees 57,805
Shareholder reports 35,295
Registration and filing fees 25,725
Professional fees 24,797
Trustees' fees and expenses 11,041
Organization expense 3,231
Insurance 1,423
TOTAL EXPENSES, NET 1,424,909
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (223,445)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN /(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
Net realized loss from investments (1,925,070)
Net change in unrealized depreciation on investments (5,915,641)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED LOSS AND UNREALIZED DEPRECIATION ON INVESTMENTS (7,840,711)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (8,064,156)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
JUNE 30, 1997 (UNAUDITED) DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -----------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (223,445) $ (219,283)
Net realized (loss)/gain on investments (1,925,070) 337,575
Net change in unrealized (depreciation)/appreciation on investments (5,915,641) 12,158,103
- -----------------------------------------------------------------------------------------------------------------------------
NET (DECREASE)/INCREASE IN NET ASSETS RESULTING FROM OPERATIONS (8,064,156) 12,276,395
- -----------------------------------------------------------------------------------------------------------------------------
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 39,570,795 107,453,649
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 39,570,795 107,453,649
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 31,506,639 119,729,221
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 120,520,965 791,744
End of period $152,027,604 $120,520,965
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16
<PAGE>
FINANCIAL HIGHLIGHTS - CLASS A SHARES
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE
FOR A SHARE OUTSTANDING MONTHS ENDED YEAR ENDED PERIOD ENDED
THROUGHOUT EACH PERIOD: 6/30/97 (UNAUDITED)(3) 12/31/96 12/31/95(1),(3)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 14.29 $ 10.12 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income (0.02) (0.06) 0.02
Net realized (loss)/gain and unrealized
(depreciation)/appreciation on investments (0.55) 4.24 0.10
- -----------------------------------------------------------------------------------------------------------------------------
Net (Decrease)/Increase in Net Assets Resulting From Operations (0.57) 4.18 0.12
- -----------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income - (0.01) -
Distributions from realized gain on investments - - -
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.72 $ 14.29 $ 10.12
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (3.99)% 41.21% 1.20%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period (000s) $ 152,028 $ 120,521 $ 792
Ratio of Expenses to Average Net Assets 1.78% 1.94%(2) 2.60%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (0.28)% (0.45)%(2) 1.84%(2)
Portfolio Turnover Rate 72% 82% 0%
Average Commission Rate Paid(3) $ 0.0143 $ 0.0148 -
</TABLE>
(1) Class A shares were first issued on November 15, 1995.
(2) If the Fund had paid all of its expenses and there had been no
reimbursement from the Adviser, for the year ended December 31, 1996, and
for the period from November 15, 1995 (Commencement of Operations), through
December 31, 1995, total return would have been 41.01% and 0.50%,
respectively, the ratio of expenses to average net assets 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) 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.
Ratios, except for total return and portfolio turnover rate, have been
annualized.
Per-share data with respect to Class A shares for each period has been
determined by using the average number of Class A shares outstanding
throughout the 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 July 12, 1995. The Trust offers twelve 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, The Robertson Stephens MicroCap
Growth Fund and The Robertson Stephens Global Value Fund. The assets for each
series are segregated and accounted for separately.
The Trustees have authorized the issuance of two classes of shares of beneficial
interest of the Fund, designated as Class A and C, respectively. The shares of
each class represent an interest in the same portfolio of investments of the
Fund. Expenses of the Fund are borne pro-rata by the holders of each class of
shares, except that each class may bear expenses unique to that class
(including, but not limited to, distribution expenses applicable to such class).
Shares of each class would receive their pro-rata share of the net assets of the
Fund, if the Fund were liquidated.
In addition, the Board of Trustees declares separate distributions of each class
of shares. Each class votes as a class only with respect to its own distribution
plan or other matters for which a class vote is required by law or determined by
the Board of Trustees. Class C shares were first offered by the Fund on April 1,
1997. Class C shares are subject to a 1% contingent deferred sales charge if
those shares are redeemed within one year of purchase. As of June 30, 1997,
Class C had no shareholders.
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
18
<PAGE>
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 June
30, 1997, 97.7% 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
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 June 30, 1997, approximately 2.3% of the Fund's positions were
valued using these guidelines and procedures.
As its normal course of business, the Fund has invested a significant portion of
its assets in companies within a number of industries in the natural resources
sector. Accordingly, the performance of the Fund may be subject to a greater
risk of market fluctuation than that of a fund invested in a wider spectrum of
market or industrial sectors.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy, by the
counterparty to the agreement, realization and/or retention of the collateral
may be subject to legal proceedings. The Fund's policy is to limit repurchase
agreement transactions to those parties deemed by the Fund's Investment Adviser
to have satisfactory creditworthiness.
c. FEDERAL INCOME TAXES:
The Fund intends to comply with requirements of the Internal Revenue Code,
qualifying as a regulated investment company. Therefore, the Fund does not
expect to be subject to income tax, and no provision for such tax will be made.
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date securities are purchased
or sold (trade date). Realized gains or losses on securities transactions are
determined on the basis of specific identification.
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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. DISTRIBUTION TO SHAREHOLDERS:
Dividends to shareholders are recorded on the ex-dividend date.
h. CLASS ALLOCATIONS:
Income, common expenses, and realized gains and unrealized gains/(losses) are
determined at the Fund level and allocated daily to each class of shares based
on the appropriate net assets of the respective classes. Transfer agent
expenses, distribution/shareholder service fees, and any other class specific
expenses, if any, are calculated daily at the class level based on the
appropriate daily net assets of each class and the specific expense rate
applicable to each class.
i. 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 divided into two classes designated Class A and Class C. As of
June 30, 1997, Class C had no shareholders. Transactions for Class A capital
shares for the six months ended June 30, 1997, and for the year ended
December 31, 1996, were as follows:
20
<PAGE>
CLASS A
1/1/97 - 6/30/97 SHARES AMOUNT
- ---------------------------------------------------------------------------
Shares sold 8,456,298 $120,886,872
Shares reinvested - -
- ---------------------------------------------------------------------------
8,456,298 120,886,872
- ---------------------------------------------------------------------------
Shares redeemed (5,814,821) (81,316,077)
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
Net increase 2,641,477 $ 39,570,795
- ---------------------------------------------------------------------------
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
- ---------------------------------------------------------------------------
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"), an Investment advisory fee and an administrative
services fee calculated respectively at an annual rate of 1.00% and 0.25% of the
average daily net assets of the Fund. For the six months ended June 30, 1997,
the Fund incurred investment advisory fees and administrative fees of $798,502
and $199,625, respectively. RSIM has voluntarily agreed to waive any annual
operating expenses, excluding class-specific expenses, of the Fund's Class A
shares and Class C shares exceeding an annual expense ratio of 1.95%. For the
six months ended June 30, 1997, there was no expected reimbursement of the
advisory 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 six months ended June 30, 1997.
b. 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 $11,041 for the six months ended June 30, 1997.
c. DISTRIBUTION FEES:
The Fund has entered into agreements with Robertson, Stephens & Company LLC ("RS
& Co.") for distribution services with respect to its Class A and Class C shares
and has adopted Plans of Distribution pursuant to Rule 12b-1 under the 1940 Act,
where continuance is reviewed annually by the Fund's Board of Trustees. Under
these Plans, RS & Co. is compensated for services in such
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
capacity, including its expenses in connection with the promotion and
distribution of the Fund's Class A and Class C shares. The distribution fees for
Class A and Class C shares are calculated at an annual rate of 0.25% and 0.75%,
respectively, based on the average daily net assets attributable to each class
of shares, although the Class C Plan contemplates payments at rate up to 1.00%
of the Fund's average net assets attributable to Class C Shares. For the six
months ended June 30, 1997, for Class A and for the period from April 1, 1997
(Commencement of Offering) through June 30, 1997 for Class C, the Fund incurred
distribution fees of $199,625 and $0, respectively.
d. SHAREHOLDER SERVICING FEE:
The Trust has adopted a Shareholder Servicing Plan for the Class C shares of
each fund. Under the plan, each fund pays fees to RS & Co. at an annual rate of
up to 0.25% of the fund's average daily net assets of the Class C shares. The
plan contemplates that financial institutions will enter into shareholder
service agreements with RS & Co. to provide administrative support services to
their customers who are fund shareholders. In return for providing these support
services, a financial institution may receive payments from RS & Co. at a rate
not exceeding 0.25% of the average daily net assets of the Class C shares of
each fund for which the financial institution is the financial institution of
record. For the period from April 1, 1997 (Commencement of Offering) through
June 30, 1997, for Class C, the Fund incurred no shareholder servicing fees.
e. BROKERAGE COMMISSIONS:
RSIM may direct orders for investment transactions to RS & Co. as broker-dealer,
subject to Fund policies as stated in the prospectus, regulatory constraints,
and the ability of RS & Co. to provide competitive prices and commission rates.
All investment transactions in which RS & Co. acts as a broker may only be
executed on an agency basis. Subject to certain constraints, the Fund may make
purchases of securities from offerings or underwritings in which RS & Co. has
been retained by the issuer. For the six months ended June 30, 1997, the Fund
paid brokerage commissions of $120 to RS & Co., which represented 0.01% of total
commissions paid during the period.
NOTE 4 INVESTMENTS:
a. TAX BASIS OF INVESTMENTS:
At June 30, 1997, the cost of investments for federal income tax purposes was
$112,057,272. Accumulated net unrealized appreciation on investments, excluding
the foreign currency fluctuation associated with other assets and liabilities,
was $6,248,666, consisting of gross unrealized appreciation and depreciation of
$16,376,639 and $10,127,973, respectively.
b. INVESTMENT PURCHASES AND SALES:
For the six months ended June 30, 1997, the cost of investments purchased and
the proceeds from investments sold (excluding options and short-term
investments) were $125,053,245 and $91,146,849, respectively.
22
<PAGE>
c. RESTRICTED SECURITIES:
A restricted security cannot be resold to the general public without prior
registration under the Securities Act of 1933. If the security is subsequently
reregistered and resold, the issuers would bear the expense of all registrations
at no cost to the Fund. At June 30, 1997, the Fund held restricted securities
with an aggregate value of $1,561,783, which represented 1.0% 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.
<TABLE>
<CAPTION>
SHARES COST VALUE ACQUISITION
SECURITY (000) (000) (000) DATE
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Altora Gold Corporation 25 $14 $19 11/25/96
Amarc Resources, Ltd. 65 72 68 7/17/97
Amarc Resources, Ltd.,
Warrants 65 25 6 7/17/96
China Industrial
Minerals Company 640 785 960 4/25/97
Corona Goldfields, Inc. 413 300 299 6/18/96
St. Jude Resources, Ltd. 75 210 181 3/27/97
St. Jude Resources, Ltd.
1/2 Warrants 75 35 29 3/27/97
- -----------------------------------------------------------------------------------------------------------------------------
$1,441 $1,562
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
d. OPTIONS AND WARRANTS:
Options and warrants normally entitle the holder to purchase a proportionate
amount 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.
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, revaluation 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.
NOTE 5 MERGER:
On June 8, 1997, BankAmerica Corporation ("BankAmerica") entered into an
Agreement and Plan of Merger with Robertson, Stephens & Company Group, L.L.C.
and Robertson, Stephens & Company, Inc., pursuant to which each of those
entities would be merged into a subsidiary of BankAmerica. Upon the consummation
of those mergers (expected to occur as early as September 30, 1997), BankAmerica
will become the owner of the entire beneficial interest in RSIM, L.P. and RSIM,
Inc.
23
<PAGE>
ADMINISTRATION
OFFICERS AND TRUSTEES
G. Randy Hecht, Trustee
President, Chief Executive Officer
Leonard B. Auerbach, Trustee
President and Chairman of Auerbach Associates, Inc.
John W. Glynn, Jr., Trustee
Principal and Chairman of
Glynn Capital Management
James K. Peterson, Trustee
Former Director of the IBM Retirement Funds
John P. Rohal, Trustee
Managing Director and Director of Research, Robertson, Stephens & Co.
Terry R. Otton
Chief Financial Officer
Dana K. Welch
Secretary
INVESTMENT ADVISER
Robertson, Stephens & Company
Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company LLC
555 California Street, Suite 2600
San Francisco, CA 94104
1-800-766-3863
TRANSFER AGENT AND DISBURSING AGENT
State Street Bank & Trust Company
c/o National Financial Data Services
Kansas City, MO
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
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 August 29, 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 GLOBAL VALUE FUND
APPLYING A CASH FLOW VALUE METHODOLOGY WORLDWIDE - Uses a methodology that
combines traditional Graham & Dodd balancesheet analysis and cash flow
analysis. No load. Managed by Andy Pilara.
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 David 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.
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 Manager Hotline, 24 hours a day.
1-800-766-3863
ROBERTSON STEPHENS
MUTUAL FUND E-MAIL
[email protected]
[LOGO]
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.
