<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Partners Fund
Annual Report
December 31, 1996
PARTNERS FUND
[GRAPHIC]
4
<PAGE>
The Partners Fund ANNUAL REPORT
FUND PHILOSOPHY
The Partners Fund seeks to achieve long-term capital growth by investing
primarily in equity securities of U.S. small-cap companies using a value
methodology combining Graham & Dodd balance sheet analysis with cash flow
analysis.
CONTENTS
Fund Highlights 1
Report to Shareholders 2
Fund Performance 8
Portfolio Summary 9
Schedule of Investments 10
Statement of Assets and Liabilities 13
Statement of Operations 14
Statement of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 17
Report of Independent Accountants 23
Administration 24
<PAGE>
FUND HIGHLIGHTS
PERFORMANCE
The Partners Fund was up 5.71% for the fourth quarter, and 43.15% for the year
ending December 31, 1996. (See Fund Performance on page 8.)
FUND OF THE YEAR
We are very pleased and honored to have been selected by MUTUAL FUNDS MAGAZINE
as "Fund of the Year" for 1996. This award is based on the fund with the highest
risk-adjusted rate of return out of 2,741 equity funds.
CASH POSITION
Our largest position at the end of the year was cash. While we continue to make
investments, fund inflows have been significant, and we ended the year with a
59.50% cash position. We will not let our cash position change our purchase-
price discipline.
CONTRIBUTORS TO RESULTS
In 1996 our fund was positively impacted by our investments in Canadian energy
and energy service companies.
ADDITIONS TO THE PORTFOLIO
During the fourth quarter of 1996 we made our first insurance company investment
- -- MARKEL CORPORATION (2.25% of the Fund at year-end) -- as well as an
investment in AMERCO (better known as U-HAUL, 5.30%).
CLOSING OF THE FUND
In January we sent out a notice that the Partners Fund intends to close to new
investors when we reach $250 million under management.
1
<PAGE>
[PHOTO]
FUND MANAGER
Andrew P. Pilara, Jr.
Portfolio Manager
The Robertson Stephens Partners Fund
Dear Shareholder:
The Partners Fund was up 5.71% for the fourth quarter, and 43.15% for the year
ending December 31, 1996. For the same periods, the Russell 2000 Value Index was
up 10.06% and 21.37%. (See Fund Performance on page 8.)
We are very pleased and honored to have been selected by MUTUAL FUNDS MAGAZINE
as "Fund of the Year" for 1996. This award is based on the fund with the highest
risk-adjusted rate of return out of 2,741 equity funds. So while we did not have
the highest return for the year, when all returns were adjusted for a risk
factor, we came out on top. We will always strive to give you the best risk-
adjusted rate of return. You should not expect us to be the number-one fund in
absolute performance in any year. We just will not assume the risk to be a
candidate for that award.
Our largest position at the end of the year was cash. While we continue to make
investments, fund inflows have been significant, and we ended the year with a
59.50% cash position. We will not let our cash position change our purchase-
price discipline. We will accept the criticism of being too conservative versus
having to
"IN OUR CASH FLOW VALUE METHODOLOGY, RATE-OF-RETURN ANALYSIS PRECEDES GROWTH
RATE CONSIDERATIONS."
2
<PAGE>
tell you we lost money because we stretched to buy stocks when we had a large
cash position.
In most mutual fund evaluation studies, The Partners Fund is included in the
small-cap-growth sector with the emerging growth funds. This is incorrect -- we
are a small-cap-value fund. You will not see the "high-flying," high-potential
growth companies in our portfolio. We own no technology or biotech companies.
This is not an investment discipline within my core competency. In our cash flow
value methodology, rate-of-return analysis precedes growth rate considerations.
Our risk-reward parameters will be lower than those of emerging growth
investors. I would therefore expect the risk rating on our fund to be lower than
mutual funds in the emerging growth category.
CONTRIBUTORS TO RESULTS
In 1996 our fund was positively impacted by our investments in Canadian energy
and energy service companies. Not only were our Canadian energy companies aided
by rising commodity prices, but also many were able to increase reserves at low
finding and development costs. The significant increase in Canadian production
company cash flows has directly influenced the increase in energy service
company activity.
In addition to our positive energy results, we had good performance from
CATELLUS DEVELOPMENT CORP. (0.89%), GARDNER DENVER MACHINERY (0.27%), KCI
KONECRANES CORP. (0.87%), and KEVCO, INC. (2.11%). If we had any disappointment
in 1996, it was with our aluminum investments. We are still waiting for aluminum
demand growth to push ingot prices significantly higher. We continue to believe
that aluminum demand growth will exceed supply additions over the next five
years. We are therefore still very positive on aluminum, and the prospects for
KAISER ALUMINUM (0.57%) and MAXXAM, INC. (1.95%).
3
<PAGE>
MISSION STATEMENT
INVESTMENT PROCESS
We are very wedded to our investment process, and thought it important enough to
include in our prospectus and first shareholder letter. It is the foundation of
our work. The following are the seven points of our investment process (our
mission statement):
- - Perform fundamental research focusing on business analysis
- - Observe how management allocates capital
- - Strive to understand the unit economics of the business
- - Key on the cash flow rate of return on capital employed
- - Discern the sources and uses of cash
- - Consider how management is compensated
- - Ask how the stock market is pricing the entire company
INVESTMENT MANAGEMENT
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
[email protected]
INVESTMENT TEAM
RESEARCH
Jay Sherwood
SENIOR TRADER
Catherine O'Neill
TRADING
Christopher Beagle
Don Heidary
ADMINISTRATION
Christy Chanslor
4
<PAGE>
We feel that the better we perform our process the better we will understand the
investment. We believe that investors' success is in direct proportion to how
well they understand the investment.
INVESTING IN INSURANCE
Over the years we have watched Warren Buffett create value through the
insurance operations of Berkshire Hathaway. We have seen him grow the
insurance company float (policyholder funds) from $17 million in 1967 to $7
billion. Buffett mentioned at this year's Berkshire annual meeting, "In the
29 years we've been in the insurance business at Berkshire, it appears that
our float hasn't cost us anything on average." Not only has he grown the
float, but his underwriting profitability provided the funds at zero cost. It
sure beats the banking business! A good insurance company is really a growing
annuity stream financed with "free capital."
When performing our insurance company due diligence we look for the following
factors:
- - "The Fuel" -- a profitable and growing underwriting function (on a cash
basis).
- - "The Engine" -- an investment portfolio that significantly exceeds the
company shareholders' equity (assuming reasonable debt levels).
- - "The Economic Value Added" -- we would expect the above two points to
result in good shareholder equity growth.
ADDITIONS TO THE PORTFOLIO
During the fourth quarter of 1996 we made our first insurance investment --
MARKEL CORPORATION (2.25%). MARKEL markets and underwrites specialty insurance
products and programs to a variety of niche markets. Its corporate goals to
build shareholder value
5
<PAGE>
"THE YEAR 1996 WAS VERY GOOD FOR THE PARTNERS FUND. IN SUCH GOOD TIMES WE MUST
NOT LOSE SIGHT OF (OR ALTER) OUR LONG-TERM RETURN OBJECTIVE."
are quite simple -- to earn consistent underwriting profits and produce superior
investment returns. It certainly meets our insurance company hurdle rate:
- - "The Fuel" -- nine out of the last 10 years (1986-1995), it has had a
combined ratio below 100 (profitable underwriting).
- - "The Engine" -- a $1.13 billion investment portfolio with $268.0 million in
shareholder equity (1996).
- - A 10-year (1986-1995) annual compounded growth in shareholder equity of
41%.
Markel has achieved these results with good reserving practices. For the last
ten years (1986-1995), the company has had a minor reserve redundancy or over-
accrual. The management team, led by Vice-Chairman Steve Markel, has created
tremendous shareholder value in the last ten years. We are pleased to be one of
the company's shareholders. We would certainly like to find other insurance
investments like Markel. Please write or call us if you know of an insurance
company that meets our "three factor" test.
6
<PAGE>
Another stock we purchased during the fourth quarter was AMERCO (5.30%) -- the
U-Haul company. It is not very often that our value fund can buy a franchise
name like U-Haul. With more outlets in the United States than McDonald's, the
company dominates the truck rental business. Looking forward, we expect industry
pricing to better reflect the oligopolistic nature of the business. Since the
company has 87,000 trucks and 88,000 trailers, we expect better utilization and
better pricing to have a leveraged impact on the bottom line. Besides being
number one in truck rental, U-Haul is number two in public storage. It owns 18.9
million square feet of public storage space. We believe the company's "business
value" significantly exceeds the current stock market price.
CLOSING OF THE FUND
In January we sent out a notice that the Partners Fund intends to close to new
investors when we reach $250 million under management. Existing shareholders
will still be able to add to their investment in the Fund. In this way we will
be able to retain the integrity of our small-cap investment charter. We do not
want the Fund's size to dictate a migration from its small-cap mandate. We will
not always be able to deliver you top-decile performance, but we can deliver you
the integrity of our process.
The year 1996 was very good for the Partners Fund. In such good times we must
not lose sight of (or alter) our long-term return objective. The risks become
too high when we let the score dictate how we play the game. We maintain our
long-term goal of a 15% annual rate of return. We will be very pleased if we
reach that objective over the next five years. We have been spoiled by the stock
market returns in the last five years. We must lower the bar of expectations.
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
ANDREW P. PILARA, JR.
Portfolio Manager
February 11, 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 Partners
Fund, the S&P 500 Index(1), and the Russell 2000 Value Index(2) IF INVESTED ON
JULY 12, 1995(3)
[GRAPH]
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
PARTNERS S&P 500 RUSSELL 2000
FOR THE PERIOD ENDED 12/31/96 FUND INDEX(1) VALUE INDEX(2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Since inception (7/12/95)3 48.73% 36.72% 31.55%
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
PARTNERS S&P 500 RUSSELL 2000
FOR THE PERIOD ENDED 12/31/96 FUND INDEX(1) VALUE INDEX(2)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 43.15% 22.99% 21.37%
- --------------------------------------------------------------------------------------------------------------------------------
Since inception (7/12/95)(3) 30.91% 23.64% 20.45%
- --------------------------------------------------------------------------------------------------------------------------------
</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
constituting the index.
(2) The Russell 2000 Value Index is a market capitalization-weighted index
composed of 2,000 U.S. companies with a less-than-average growth
orientation and market capitalizations ranging from $40 million to $450
million. Investment results assume the reinvestment of dividends paid on
the stocks constituting the index. You cannot invest in an index.
(3) Date that the Fund's shares were first offered to the public.
Investors should realize that all performance data presented is based upon
past performance during limited periods of time, and that past performance
is no guarantee of future performance. Investors should also realize that
both investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost. The
correlation of performance between an unmanaged index and this Fund is not
usually exact.
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 Liabilities 0.6%
Cash/Cash Equivalents 59.5%
Closed-End Funds 0.8%
Real Estate 0.9%
Manufacturing 1.2%
Consumer/Business Services 1.7%
Aluminum 2.5%
Insurance 2.7%
Distribution 3.5%
Construction/Infrastructure 5.7%
Transportation Equip./Services 6.5%
Energy Services 7.1%
Energy 7.3%
TOP TEN HOLDINGS
1.
AMERCO, INC.
Provides rental trucks, trailers, and other rental items through 1,000
company-owned U-Haul centers and more than 13,000 independent dealers in North
America.
2.
USX-DELHI GROUP, INC.
Purchases, gathers, processes, transports, and markets natural gas.
3.
TEXAS INDUSTRIES, INC.
Produces steel and cement products for the construction and manufacturing
industries.
4.
MARKEL CORPORATION
Markets and underwrites specialty insurance products and programs.
5.
KEVCO, INC.
Distributes building products to the manufactured housing and recreational
vehicle industries in the United States.
6.
MAXXAM, INC.
A large resource holding company with majority ownership and control of Kaiser
Aluminum and Pacific Lumber, plus numerous real estate assets.
7.
SUNSOURCE, LP, CLASS B
Distributes industrial maintenance, fluid power, and glass products in
the United States.
8.
DAILEY PETROLEUM SERVICES CORPORATION
Provides directional drilling services, and designs, manufactures, and rents
technologically advanced drilling tools.
9.
GIANT CEMENT HOLDING, INC.
Makes portland and masonry cements and related aggregates.
10.
COMPUTALOG, LTD.
Offers oil and gas services to companies in Canada, the United States, and
Venezuela.
9
<PAGE>
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- ------------------------------------------------------------------------------------------------------------------------------
Aluminum - 2.5%
Kaiser Aluminum Corporation 62,500 $ 726,563
MAXXAM, Inc. 52,100 2,481,262
- ------------------------------------------------------------------------------------------------------------------------------
3,207,825
- ------------------------------------------------------------------------------------------------------------------------------
AUTOMOBILE PARTS/EQUIPMENT - 0.4%
Wescast Industries, Inc., Class A(1) 20,000 470,312
- ------------------------------------------------------------------------------------------------------------------------------
470,312
- ------------------------------------------------------------------------------------------------------------------------------
CLOSED-END FUNDS - 0.8%
Cathay Investment Fund, Ltd.(1) HKD 755,000 976,146
- ------------------------------------------------------------------------------------------------------------------------------
976,146
- ------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 5.7%
American Buildings Company 35,000 835,625
Giant Cement Holding, Inc. 82,200 1,325,475
KCI Konecranes International Corporation FIM 35,000 1,103,261
Martin Marietta Materials, Inc.(1) 43,516 1,011,747
Texas Industries, Inc.(1) 60,000 3,037,500
- ------------------------------------------------------------------------------------------------------------------------------
7,313,608
- ------------------------------------------------------------------------------------------------------------------------------
CONSUMER/BUSINESS SERVICES - 1.7%
Dun & Bradstreet Corporation(1) 50,000 1,187,500
GC Companies, Inc. 30,000 1,038,750
- ------------------------------------------------------------------------------------------------------------------------------
2,226,250
- ------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION - 3.5%
Kevco, Inc. 192,000 2,688,000
SunSource LP, Class B(1) 435,500 1,796,437
- ------------------------------------------------------------------------------------------------------------------------------
4,484,437
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY - 7.3%
Alliance Energy, Inc., Restricted(3)(4) CAD 1,000,000 319,689
Aztec Resources, Ltd. CAD 329,800 674,388
Basin Exploration, Inc. CAD 62,500 390,625
Best Pacific Resources, Ltd., Restricted(3)(4) CAD 1,400,000 1,191,630
Calahoo Petroleum, Ltd. CAD 1,271,000 788,979
Canadian Conquest Exploration, Inc. CAD 646,300 1,156,383
Discovery West Corporation CAD 353,800 620,112
New Cache Petroleums, Ltd. CAD 46,200 263,171
Nugas, Ltd. CAD 189,500 332,140
Ocelot Energy, Inc., Class B CAD 136,200 870,335
Oiltec Resources, Ltd., Restricted(3)(4) CAD 770,000 885,671
Olympia Energy, Inc., Class A CAD 125,000 57,511
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY - CONTINUED
Paragon Petroleum, Ltd. CAD 99,600 $ 232,761
Place Resources Corporation, Class A CAD 380,000 557,803
Titan Exploration, Inc. 84,000 1,008,000
- ------------------------------------------------------------------------------------------------------------------------------
9,349,198
- ------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES - 7.1%
Bowridge Corporation CAD 700,000 444,753
Computalog, Ltd. CAD 111,400 1,220,332
Dailey Petroleum Services Corporation 150,000 1,575,000
Enerflex Systems, Ltd.(1) CAD 31,600 773,096
MarkWest Hydrocarbon, Inc. 70,000 1,085,000
NQL Drilling Tools, Inc., Class A CAD 134,600 469,375
USX-Delhi Group(1) 220,900 3,506,787
- ------------------------------------------------------------------------------------------------------------------------------
9,074,343
- ------------------------------------------------------------------------------------------------------------------------------
HOLDING COMPANIES, DIVERSIFIED - 0.5%
Valhi, Inc.(1) 102,700 654,712
- ------------------------------------------------------------------------------------------------------------------------------
654,712
- ------------------------------------------------------------------------------------------------------------------------------
INSURANCE - 2.7%
Foremost Corporation of America(1) 10,000 600,000
Markel Corporation 31,800 2,862,000
- ------------------------------------------------------------------------------------------------------------------------------
3,462,000
- ------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 1.2%
Gardner Denver Machinery, Inc. 10,000 342,500
TB Wood's Corporation(1) 110,900 1,192,175
- ------------------------------------------------------------------------------------------------------------------------------
1,534,675
- ------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.9%
Catellus Development Corporation 100,000 1,137,500
- ------------------------------------------------------------------------------------------------------------------------------
1,137,500
- ------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION EQUIPMENT/SERVICES - 6.5%
AMERCO, Inc. 192,800 6,748,000
Harper Group, Inc.(1) 20,000 475,000
Pittston Burlington Group(1) 50,000 1,000,000
- ------------------------------------------------------------------------------------------------------------------------------
8,223,000
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
OTHER COMMON STOCK - 1.1% 1,361,254
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 41.9% (COST: $46,398,287) 53,475,260
- ------------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
SCHEDULE OF INVESTMENTS (CONTINUED)
DECEMBER 31, 1996 FOREIGN WARRANTS VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS
- ------------------------------------------------------------------------------------------------------------------------------
Alliance Energy, Inc., 1/2 Warrants, Strike CAD 0.45,
Expire 12/19/97(3)(4)(5) CAD 1,000,000 $ 134,591
Calahoo Petroleum, Ltd., 3/4 Warrants, Strike CAD 0.65,
Expire 6/28/97(3)(5) CAD 630,000 147,530
Oiltec Resources Ltd., Warrants, Strike CAD 1.75,
Expire 11/18/97(3)(4)(5) CAD 770,000 172,260
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.4% (Cost: $330,266) 454,381
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 42.3% (Cost: $46,728,553) 53,929,641
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- ------------------------------------------------------------------------------------------------------------------------------
Cash 92,012
FNMA Discount Note, 5.50%, due 1/8/97, $55,100,000 par value 55,041,074
Repurchase Agreement
State Street Bank and Trust Company, 5.00%, dated 12/31/96,
due 1/2/97, maturity value $20,563,711 (collateralized by
$14,430,000 par value U.S. Treasury Note, 10.625%, due 8/15/15) 20,558,000
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 59.5% 75,691,086
- ------------------------------------------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (1.8)% (2,353,188)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 127,267,539
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Income-producing security.
(2) Foreign-denominated security; CAD - Canadian Dollar, FIM - Finnish Markka,
HKD - Hong Kong Dollar.
(3) Fair-value security. See 1.a. in Notes to Financial Statements.
(4) Restricted security. See 4.d. in Notes to Financial Statements.
(5) See 4.e. in Notes to Financial Statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value (Cost: $46,728,553) $ 53,929,641
Cash and cash equivalents 75,691,086
Receivable for investments sold 20,695
Receivable for fund shares subscribed 2,180,227
Dividends/interest receivable 5,313
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 131,826,962
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 3,474,508
Payable for fund shares redeemed 839,032
Payable to adviser 127,868
Accrued expenses 92,441
Payable to distributor 25,574
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 4,559,423
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 127,267,539
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital 118,919,073
Accumulated net realized gain from investments 1,147,378
Net unrealized appreciation on investments 7,201,088
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 127,267,539
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PRICING OF SHARES: $ 14.60
Net Asset Value, offering and redemption price per share
(net assets of $127,267,539 applicable to 8,719,430 shares of
beneficial interest outstanding with no par value)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 1,098,909
Dividends (net of foreign withholding tax of $1,796) 97,778
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,196,687
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 514,459
Custodian and transfer agent fees 114,216
Distribution fees 102,892
Professional fees 73,353
Registration and filing fees 35,666
Shareholder reports 31,008
Trustees' fees and expenses 22,326
Insurance 57
- -----------------------------------------------------------------------------------------------------------------------------
Total Expenses 893,977
Less: Expense waiver by adviser (91,703)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 802,274
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 394,413
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS AND OPTIONS
Net realized gain from investments 2,839,236
Net change in unrealized appreciation on investments 7,025,108
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON INVESTMENTS 9,864,344
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,258,757
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
<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 income $ 394,413 $ 46,395
Net realized gain from investments 2,839,236 9,082
Net change in unrealized appreciation on investments 7,025,108 175,980
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 10,258,757 231,457
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (480,663) -
Realized gains on investments (1,700,940) -
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (2,181,603) -
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 111,710,041 7,248,887
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 111,710,041 7,248,887
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 119,787,195 7,480,344
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
Beginning of period 7,480,344 -
End of period $ 127,267,539 $ 7,480,344
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on July 12, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
<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)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.39 $ 10.00
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income 0.13 0.06
Net realized gain and net change in unrealized appreciation on investments 4.36 0.33
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4.49 0.39
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.06) -
Distributions from realized gains on investments (0.22) -
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 14.60 $ 10.39
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 43.15% 3.90%
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $ 127,267,539 $ 7,480,344
Ratio of Expenses to Average Net Assets 1.93%(2) 2.41%(2)
Ratio of Net Investment Income to Average Net Assets 0.95%(2) 1.34%(2)
Portfolio Turnover Rate 101% 71%
Average Commission Rate Paid(4) $ 0.0216 -
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on July 12, 1995.
(2) If the Fund had paid all of its expenses and there had been no
reimbursement by the Adviser, the ratio of expenses to average net assets
for the year ended December 31, 1996, and for the period ended December 31,
1995, would have been 2.15% and 5.12%, respectively, and the ratio of net
investment income/(loss) to average net assets would have been 0.73% and
(1.37)%, 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 has been determined by using the average number of
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.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Partners Fund (the "Fund") is a series of the Robertson
Stephens Investment Trust (the "Trust"), a Massachusetts business trust
organized on May 11, 1987. The Fund is registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as a non-diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on July 12, 1995. The Trust offers 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, and 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. Short-term
investments that will mature in 60 days or less are stated at amortized cost,
which approximates market value. 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, 94.7% of the Fund's portfolio was valued in this manner.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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, 5.3% of the Fund's portfolio was valued using these
guidelines and procedures.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy 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.
18
<PAGE>
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 capital shares for the year ended December
31, 1996, and for the period from July 12, 1995 (Commencement of Operations),
through December 31, 1995, were as follows:
1/1/96 - 12/31/96 SHARES AMOUNT
- ------------------------------------------------------------------------------
Shares sold 10,949,497 $ 153,105,777
Shares reinvested 142,016 2,066,658
- ------------------------------------------------------------------------------
11,091,513 155,172,435
Shares redeemed (3,092,301) (43,462,394)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net increase 7,999,212 $ 111,710,041
- ------------------------------------------------------------------------------
7/12/95 - 12/31/95 SHARES AMOUNT
- ------------------------------------------------------------------------------
Shares sold 993,987 $ 10,001,278
Shares reinvested - -
- ------------------------------------------------------------------------------
993,987 10,001,278
- ------------------------------------------------------------------------------
Shares redeemed (273,769) (2,752,391)
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Net increase 720,218 $ 7,248,887
- ------------------------------------------------------------------------------
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 calculated at an
annual rate of 1.25% of the average daily net assets of the Fund. For the year
ended December 31, 1996, the Fund incurred investment advisory fees of
19
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
$514,459. RSIM has voluntarily agreed to waive any annual operating expenses
exceeding an annual expense ratio of 1.95%. For the year ended December 31,
1996, the Adviser agreed to waive $91,703 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 year 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.
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
20
<PAGE>
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 $102,892.
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 $680 to RS & Co., which represented 0.5% of the total
commissions paid during the year.
NOTE 4 INVESTMENTS:
a. TAX BASIS OF INVESTMENTS:
At December 31, 1996, the cost of investments for federal income tax purposes
was $46,728,553. Accumulated net unrealized appreciation on investments was
$7,201,088, consisting of gross unrealized appreciation and depreciation of
$7,654,613 and $(453,525), 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 $58,860,897 and $19,623,640, 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 $2,703,841 which represented
2.1% 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
- --------------------------------------------------------------------------------
Alliance Energy, Inc. 1,000 $ 294 $ 320 12/19/96
Alliance Energy, Inc.,
1/2 Warrants 1,000 87 135 12/19/96
Best Pacific
Resources, Ltd. 1,400 854 1,191 10/28/96
Oiltec Resources, Ltd. 770 805 886 11/13/96
Oiltec Resources, Ltd.,
Warrants 770 172 172 11/13/96
- --------------------------------------------------------------------------------
$ 2,212 $ 2,704
- --------------------------------------------------------------------------------
e. 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 the
compounded rate of return on the stock, option or warrant. 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 Partners
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 Partners
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 Partners 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 PARTNERS 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 NATURAL RESOURCES FUND
PRIMARILY FOCUSING ON ATTRACTIVE HARD ASSET COMPANIES - Invests in equities of
companies engaged in the discovery, development, production, or distribution of
natural resources, such as energy, metals, and forest products. No load. Managed
by Andy Pilara, Jr.
THE GROWTH & INCOME FUND
SEEKING HIGH GROWTH WHILE 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 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 Partners under
the heading Robertson Stephens. Its computer quotation symbol
is RSPFX.
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.
