<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Global Low-Priced Stock Fund
Annual Report
December 31, 1996
GLOBAL LOW-PRICED
[GRAPHIC]
4
<PAGE>
The Global Low Priced Stock Fund ANNUAL REPORT
FUND PHILOSOPHY
The Robertson Stephens Global Low-Priced Stock Fund seeks to achieve
long-term growth of capital by investing worldwide in low-priced stocks
(prices no greater than $10 per share) of companies that have future growth
potential but are overlooked or underappreciated by other investors.
CONTENTS
Fund Highlights l
Report to Shareholders 2
Fund Performance 6
Portfolio Summary 7
Schedule of Investments 8
Statement of Assets and Liabilities 12
Statement of Operations 13
Statement of Changes in Net Assets 14
Financial Highlights 15
Notes to Financial Statements 16
Report of Independent Accountants 20
Administration 20
<PAGE>
FUND HIGHLIGHTS
FOURTH-QUARTER RESULTS
For the quarter ended December 31, 1996, the
Fund was up 4.09%. (See Fund Performance on page 6.)
CONTRIBUTORS TO PERFORMANCE
Highlights in 1996 included our investments in specialty retail, energy and
energy services, and some individual situations.
REGIONAL EXPOSURE
The Fund's top country exposures at year-end were the United States (33.6%),
Canada (14.4)%, and China (13.7%).
INDIAN OPPORTUNITY
We just returned from a trip to India. Although we are excited about India's
size and potential, we are going to be measured and careful in our investment
approach.
1
<PAGE>
[PHOTO]
FUND MANAGER
Hannah Sullivan
Portfolio Manager
The Robertson Stephens Global Low-Priced Stock Fund
DEAR SHAREHOLDER:
We are pleased with the results of our first full calendar year of operations.
For the year ended December 31, 1996, the Global Low-Priced Stock Fund was up
29.39% versus 11.72% for the MSCI World Index. For the fourth quarter ended
December 31, 1996, the Fund was up 4.09% versus 4.18% for the MSCI World Index.
(See Fund Performance on page 6.)
During the year there were several investments that contributed to our
performance. The highlights include our investments in specialty retail (PAUL
HARRIS STORES, INC., 4.94% of the portfolio at year-end, and TYCO TOYS INC.,
1.41%), energy and energy services (MESA, INC., 2.20%, COMPUTALOG, LTD., 2.38%,
and our basket of Canadian exploration and production companies), and some
individual situations such as SUDBURY, INC. (2.87%) and CATELLUS DEVELOPMENT
CORPORATION (2.77%). There were also a few investments that did not perform
well. In particular, a few of our investments in the
construction/infrastructure arena in Singapore, Indonesia, and Vietnam, as
well as a Chinese transportation company and a Houston energy services company,
did not help our performance.
"WE ARE PLEASED WITH THE RESULTS OF OUR FIRST FULL CALENDAR YEAR OF OPERATIONS."
2
<PAGE>
The Fund's country exposures as of the end of December were as follows:
[CHART]
CASH/CASH EQUIVALENTS 22.8%
BRAZIL 0.1%
PAKISTAN 0.3%
KAZAKISTAN 0.7%
VIETNAM 0.9%
FT. GAISTNA 1.1%
MEXICO 1.2%
SINGAPORE 1.3%
AUSTRALIA 3.9%
INDONESIA 6.5%
CHINA 13.6%
U.S. 33.2%
CANADA 14.3%
People often ask what is the appropriate benchmark with which to compare the
Global Low-Priced Stock Fund. The answer is that there is not an especially
good one. We are trying to do bottom-up, value-added research on a global basis
rather than follow an index and buy all the same stocks that everyone else is
buying.
We have found that if you look at most of the global or international funds,
they all own the same stocks. Most of the funds are being run using a top-down,
macro allocation methodology. The portfolio managers decide what countries they
want to be in and then they just buy the top 15 stocks in each market, usually
the telephone company, a few banks, etc. That is not what we are trying to do.
For that reason, we have provided several benchmarks. At any point in time we
may have a substantial portion of the Fund's assets in the U.S. market, usually
in micro-cap companies, so there is likely to be some correlation with the
Russell 2000 Index. On a global basis, we have tended to focus on those markets
that have the best growth prospects over the long term, such as Asia. For this
reason, we also have included the Morgan Stanley Emerging Markets Global and
World Indexes.
Because we are focusing on the smaller companies that may not yet have critical
mass, management quality is especially important. We are not interested in
investing in any company unless we can meet the management and have the ability
to cross-check management's reputation using our network of contacts. Over time,
as our network grows in new markets, we will increase the number of countries
where we invest.
Bottom line, we are bottom-up stock pickers. That said, we'd like to share a few
of the company-specific highlights from the quarter.
SUDBURY, INC.
On November 18, 1996, SUDBURY, INC., a Cleveland, Ohio-based manufacturer of
automotive and other industrial parts that has been one of our top ten
holdings for the past several quarters, announced a definitive agreement to be
purchased by Intermet Corporation for $12.50 per share. This compared to our
average cost per share of $8.60. Although we believe that by holding Sudbury
over the long term we would have continued to make money and would not
3
<PAGE>
OPPORTUNITY
have had to realize the gain, we believe the merger makes a lot of sense for
Sudbury and Intermet. The combined company is expected to produce about $850
million in revenues and offer a wide selection of complementary products.
TYCO TOYS INC.
Another buyout announced in the past few months was the MATTEL, INC. (owner of
such products as Barbie, Fisher Price, Disney, Hot Wheels, and Cabbage Patch
Kids) purchase of TYCO TOYS, which owns Matchbox, Radio Control vehicles, Sesame
Street (including the hottest-selling toy of Christmas '96, Tickle Me Elmo),
Magna Doodle, and View-Master. We own the TYCO convertible preferred stock,
which is paying an 8.25% dividend. Our average cost on these shares was $6.17
per share. Upon the FTC's approval of the deal, we will receive a new piece of
paper convertible into MATTEL common stock. Although the new shares will not
have quite the leverage that the current paper does since MATTEL is a $26 stock
and TYCO was trading at about $7 before the buyout announcement, we believe
there is upside in holding the shares until the buyout actually takes place.
[PHOTO]
INVESTMENT MANAGEMENT
G. RANDY HECHT
President
Robertson Stephens
Investment Trust
[email protected]
INVESTMENT TEAM
RESEARCH
Sue Gossard
Andrew Pilara, Jr.
Borden Putnam III
Paul H. Stephens
SENIOR TRADER
Catherine O'Neill
TRADING
Christopher Beagle
Don Heidary
ADMINISTRATION
Christy Chanslor
4
<PAGE>
PAUL HARRIS STORES, INC.
PAUL HARRIS STORES was our best investment of 1996 and a perfect example of the
kind of investment that fits the strategy of the Global Low-Priced Stock Fund.
As of December 31, 1996, PAUL HARRIS STORES represented 4.94% of the Fund. PAUL
HARRIS is a Midwest-based retailer of moderately priced women's clothing. The
company has recently completed a major restructuring and is now beginning to
grow its base of more than 225 stores. Same-store sales are up about 20% for
the year, one of the best records of any retailer in the country. The company
continues to report very positive results and is still underappreciated by the
investment community. We began buying PAUL HARRIS at $2 per share last
December, and the stock now trades at more than $20 per share. Over the last
few months we have realized some gains from the investment, but still believe
that the company will substantially exceed Wall Street expectations in the near
term.
INDIAN OPPORTUNITY
Paul Stephens, Michael Hoffman, and I just returned from a trip to Singapore,
Malaysia, and India. The primary purpose of the trip was to begin to acquaint
ourselves with India. In India, we spent eight days and met with about 60
entrepreneurs, company managements, political leaders, etc. India is second
only to China in terms of its population size and, therefore, its consumer
spending potential. The main Indian market is in Bombay, and it has been around
for many years. In total, there are about 8,000 publicly traded Indian
companies, many of which are trading at deep discounts to their initial public
offering prices.
Although we are excited about India's size and potential, we are going to be
measured and careful in our investment approach. The traditions of corporate
governance and transparency of reporting are in their absolute infancy.
Nepotism is still the rule of thumb as families continue to control the largest
stakes in most of the public companies. The Indian government still has a long
way to go before it will be considered pro-business, but there is evidence that
many of the restrictions left over from the socialist era are being removed
little by little. Clearly India is going to be a very important market in the
future, and we are excited that we have begun to form a network.
CONCLUSION
We want to thank you for investing alongside us during our first full year of
operations. We look forward to doing so for many years to come.
Sincerely,
/s/ M. Hannah Sullivan
M. HANNAH SULLIVAN
Portfolio Manager
February 5, 1997
TO HEAR MY ONGOING THOUGHTS ON THE FUND, CALL OUR 24-HOUR HOTLINE AT 1-800-766-
3863.
5
<PAGE>
FUND PERFORMANCE
Results of a hypothetical $10,000 investment
in The Robertson Stephens Global Low-Priced Stock Fund, The MSCI World(1) and
Emerging Markets Global(2), and Russell 2000(3) Indexes
IF INVESTED ON NOVEMBER 15, 1995(4)
[GRAPH]
<TABLE>
<CAPTION>
CUMULATIVE TOTAL RETURNS
MSCI EMERGING
GLOBAL LOW-PRICED MSCI WORLD MARKETS GLOBAL RUSSELL 2000
FOR THE PERIOD ENDED 12/31/96 STOCK FUND INDEX(1) INDEX(2) INDEX(3)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Since inception (11/15/95)(4) 35.21% 17.15% 11.26% 22.44%
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
MSCI EMERGING
GLOBAL LOW-PRICED MSCI WORLD MARKETS GLOBAL RUSSELL 2000
FOR THE PERIOD ENDED 12/31/96 STOCK FUND INDEX(1) INDEX(2) INDEX(3)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
One Year 29.39% 11.72% 4.14% 16.49%
- ------------------------------------------------------------------------------------------------------------------------------
Since inception (11/15/95)(4) 30.64% 15.06% 9.91% 19.64%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Morgan Stanley Capital International ("MSCI") World Index is an
unmanaged, market capitalization-weighted index composed of companies
representative of the market structure of 22 developed-market countries in
North America, Europe, and the Asia-Pacific region.
(2) The Morgan Stanley Capital International ("MSCI") Emerging Markets Global
Index is a market capitalization-weighted index composed of companies
representative of the market structure of 23 emerging market countries in
Europe, Latin America, and the Pacific Basin.
The MSCI Indices reflect stock market trends by representing the evolution
of an unmanaged portfolio containing a broad selection of domestically
listed companies. Stock selection also takes into consideration the trading
capabilities of foreigners in emerging market countries.
(3) The Russell 2000 Index is a market capitalization-weighted index composed
of 2,000 U.S. companies with 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.
(4) 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. Options and futures may not be perfectly
correlated to the underlying index or security.
6
<PAGE>
PORTFOLIO SUMMARY
AS OF DECEMBER 31, 1996
[CHART]
Other 2.4%
Cash/Cash Equivalents 22.3%
Textiles 1.0%
Other Base Metals 1.1%
Electronic Components 1.3%
Medical Services/Pharmaceuticals 1.6%
Media 2.2%
Warrants 2.6%
Computer Software/Services 2.6%
Real Estate 2.8%
Business/Communication Serv. 2.8%
Construction/Infrastructure 3.5%
Convertible Preferred 3.6%
Gold Mining 4.5%
Transportation Equipment/Serv. 5.4%
Food Service 5.5%
Closed-End Funds 5.5%
Forest Products/Paper 6.6%
Consumer/Specialty Retail 8.8%
Energy/Energy Services 13.9%
TOP TEN HOLDINGS
1.
CATHAY INVESTMENT FUND, LTD.
A closed-end fund selling on the Hong Kong exchange. Invests in unlisted Chinese
operating companies.
2.
PAUL HARRIS STORES, INC.
Specialty retailer of private-label women's casual wear with more than 225
stores in 27 states.
3.
PT STEADY SAFE TRANSPORTATION SERVICES, FOREIGN
Operates a fleet of metered taxis, public buses, and ferries in Indonesia.
4.
CATELLUS DEVELOPMENT CORPORATION
A major diversified real estate company. Owns, develops, and manages industrial,
residential, and commercial properties, primarily in California.
5.
SINO-FOREST CORPORATION, CLASS A
Holds interests in six joint ventures in southern China covering 600,000
hectares of hardwood plantations.
6.
COMPUTALOG, LTD.
Offers oil and gas services to companies in Canada, the United States,
and Venezuela.
7.
GEOGRAPHICS, INC.
Manufactures specialty paper, signage, and graphic art products, primarily for
the home office market.
8.
NEW WORLD COFFEE, INC.
Owns and operates 30 espresso bars in New York, New Jersey, and Pennsylvania.
9.
VALUEVISION INTERNATIONAL, INC.
Sells such merchandise as consumer electronics, home furnishings, appliances,
and apparel on its television home shopping network.
10.
MESA, INC., PREFERRED, A
Explores for, develops, and produces oil and gas.
7
<PAGE>
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -------------------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES - 1.7%
Enterprise Solutions Asia Pacific, Ltd. AUD 40,000 $ 44,512
Insignia Systems, Inc. 81,500 157,906
U-Ship, Inc. 110,000 343,750
- -------------------------------------------------------------------------------------------------------------------------------
546,168
- -------------------------------------------------------------------------------------------------------------------------------
CLOSED-END FUNDS - 5.5%
Cathay Investment Fund, Ltd.(1) HKD 1,283,000 1,658,802
Greenchip Development Capital, Ltd.(1) AUD 33,640 20,856
Greenchip Emerging Growth, Ltd. AUD 40,610 34,538
Greenchip Investments, Ltd.(1) AUD 31,746 16,149
- -------------------------------------------------------------------------------------------------------------------------------
1,730,345
- -------------------------------------------------------------------------------------------------------------------------------
COMMUNICATIONS SERVICES - 1.1%
CD Radio, Inc. 61,000 251,625
Telecard, Ltd. PKR 95,500 99,479
- -------------------------------------------------------------------------------------------------------------------------------
351,104
- -------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 2.6%
InfoNow Corporation, Restricted(3)(7) 214,286 341,518
Techniche, Ltd. AUD 226,700 466,698
- -------------------------------------------------------------------------------------------------------------------------------
808,216
- -------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 3.5%
L&M Group Investments, Ltd.(1) SGD 150,000 162,939
Overseas & General, Ltd. AUD 678,751 109,250
PT Super Indah Makmur, Foreign(1)(6) IDR 125,000 127,011
Van Der Horst, Ltd.(1) SGD 100,000 418,066
Vietnam Industrial Investments, Ltd. AUD 1,521,301 287,186
- -------------------------------------------------------------------------------------------------------------------------------
1,104,452
- -------------------------------------------------------------------------------------------------------------------------------
CONSUMER GOODS - 2.1%
Wuxi Little Swan Company, Ltd., Class B HKD 649,300 654,799
- -------------------------------------------------------------------------------------------------------------------------------
654,799
- -------------------------------------------------------------------------------------------------------------------------------
DIAMOND MINING - 0.6%
DiamondWorks, Ltd. CAD 130,000 190,827
- -------------------------------------------------------------------------------------------------------------------------------
190,827
- -------------------------------------------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 1.3%
AER Energy Resources, Inc. 109,900 240,406
Spectrum Control, Inc. 45,000 151,875
- -------------------------------------------------------------------------------------------------------------------------------
392,281
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
ENERGY - 10.3%
Aztec Resources, Ltd. CAD 79,700 162,974
Basin Exploration, Inc. 36,500 228,125
BlackRock Ventures, Inc. 116,500 60,407
Calahoo Petroleum, Ltd. CAD 494,000 306,653
Canadian Conquest Exploration, Inc. CAD 295,100 528,003
- -------------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
8
<PAGE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ENERGY - CONTINUED
Clayton Williams Energy, Inc. 15,000 $ 260,625
Discovery West Corporation CAD 116,500 204,192
Eurogas Corporation CAD 4,500 4,108
Eurogas Corporation, 144A(5) CAD 154,775 141,290
Highridge Exploration, Ltd. CAD 156,800 383,612
Nugas, Ltd. CAD 30,000 52,582
Olympia Energy, Inc., Class A CAD 537,000 247,068
Paragon Petroleum Corporation CAD 95,600 223,413
Place Resources Corporation CAD 294,200 431,857
- -------------------------------------------------------------------------------------------------------------------------------
3,234,909
- -------------------------------------------------------------------------------------------------------------------------------
ENERGY SERVICES - 3.6%
3-D Geophysical, Inc. 14,000 126,000
Computalog, Ltd. CAD 68,400 749,288
DI Industries, Inc. 60,400 169,875
DSI Industries, Inc. 102,500 54,453
Grant Geophysical, Inc. 205,000 19,219
- -------------------------------------------------------------------------------------------------------------------------------
1,118,835
- -------------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL SERVICES - 0.9%
Stake Technology, Ltd. 225,000 267,188
- -------------------------------------------------------------------------------------------------------------------------------
267,188
- -------------------------------------------------------------------------------------------------------------------------------
FOOD SERVICE - 5.5%
ABR Holdings, Ltd.(1) SGD 250,000 287,644
New World Coffee, Inc. 297,500 706,563
New York Bagel Enterprises 38,000 232,750
Taco Cabana, Inc., Class A 68,700 506,663
- -------------------------------------------------------------------------------------------------------------------------------
1,733,620
- -------------------------------------------------------------------------------------------------------------------------------
FOREST PRODUCTS - 2.8%
Sino-Forest Corporation, Class A CAD 689,500 624,392
Sino-Forest Corporation, Class A, Restricted(3),(7) CAD 300,000 244,505
- -------------------------------------------------------------------------------------------------------------------------------
868,897
- -------------------------------------------------------------------------------------------------------------------------------
GOLD MINING - 4.5%
Bakyrchik Gold PLC GBP 50,000 208,155
Brazilian Resources, Inc. CAD 91,828 26,825
Emperor Mines, Ltd. AUD 151,000 294,055
First Dynasty Mines, Ltd., Restricted(3)(7) CAD 100,000 242,825
General Gold Resources NL(1) AUD 490,220 175,343
Ghana Gold Mines, Ltd. AUD 337,500 53,652
Guyanor Ressources, S.A., Class B CAD 49,900 337,088
Solomon Resources, Ltd. CAD 75,000 76,134
- -------------------------------------------------------------------------------------------------------------------------------
1,414,077
- -------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 0.4%
Mobile Mini, Inc. 36,100 112,813
- -------------------------------------------------------------------------------------------------------------------------------
112,813
- -------------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
9
<PAGE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDIA - 2.2%
Valuevision International, Inc. 131,000 $ 704,125
- -------------------------------------------------------------------------------------------------------------------------------
704,125
- -------------------------------------------------------------------------------------------------------------------------------
MEDICAL SERVICES - 1.5%
In Home Health, Inc. 250,000 484,375
- -------------------------------------------------------------------------------------------------------------------------------
484,375
- -------------------------------------------------------------------------------------------------------------------------------
OTHER BASE METALS - 1.1%
Farallon Resources, Ltd. CAD 20,000 233,696
NDU Resources, Ltd. CAD 30,000 30,673
NDU Resources, Ltd., Restricted(3)(7) CAD 75,000 72,847
- -------------------------------------------------------------------------------------------------------------------------------
337,216
- -------------------------------------------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.1%
PT Bayer Indonesia, Foreign(1)(6) IDR 40,000 36,410
- -------------------------------------------------------------------------------------------------------------------------------
36,410
- -------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 2.8%
Catellus Development Corporation 76,700 872,463
- -------------------------------------------------------------------------------------------------------------------------------
872,463
- -------------------------------------------------------------------------------------------------------------------------------
SPECIALTY PAPER - 3.8%
Climax International Company(1) HKD 3,770,400 487,478
Geographics, Inc. 140,000 717,500
- -------------------------------------------------------------------------------------------------------------------------------
1,204,978
- -------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 6.7%
Paul Harris Stores, Inc. 87,500 1,553,125
Service Merchandise Company 40,000 170,000
Video Update, Inc., Class A 100,000 393,750
- -------------------------------------------------------------------------------------------------------------------------------
2,116,875
- -------------------------------------------------------------------------------------------------------------------------------
TEXTILES - 1.0%
PT Apac Centertex Corporation, Foreign(1)(6) IDR 962,000 325,826
- -------------------------------------------------------------------------------------------------------------------------------
325,826
- -------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION EQUIPMENT /SERVICES - 5.4%
China Yuchai International, Ltd.(1) 129,600 615,600
PT Steady Safe Transportation Services, Foreign(1)(6) IDR 854,833 1,094,779
- -------------------------------------------------------------------------------------------------------------------------------
1,710,379
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 71.0% (Cost $21,885,949) 22,321,178
- -------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK
Energy - 2.2%
Mesa, Inc., 8.00%, Expires 6/30/08, Series A(1) 108,338 690,650
- -------------------------------------------------------------------------------------------------------------------------------
690,650
- -------------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 1.4%
Tyco Toys Inc., 8.25%, Expires 7/1/00, Series C(1) 43,800 443,475
- --------------------------------------------------------------------------------------------------------------------------------
443,475
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCK - 3.6% (COST $701,924) 1,134,125
- -------------------------------------------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
10
<PAGE>
<CAPTION>
DECEMBER 31, 1996 FOREIGN CURRENCY(2) SHARES VALUE
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS
- -------------------------------------------------------------------------------------------------------------------------------
Brazilian Resources, Inc., 1/2 Warrants, Strike CAD 0.50,
Expire 3/4/99(3)(4)(7) CAD 45,914 $ 9,818
Calahoo Petroleum, Ltd., 3/4 Warrants, Strike CAD 0.65,
Expire 6/28/97(3)(4) CAD 292,500 68,496
Farallon Resources, Ltd., Warrants, Strike CAD 6.25,
Expire 8/30/97(3)(4) CAD 20,000 146,192
First Dynasty Mines, Ltd., Warrants, Strike CAD 4.50,
Expire 3/13/97(3)(4)(7) CAD 100,000 8,978
Help At Home, Inc., Warrants, Strike $6.00, Expire 12/5/00(4) 267,000 392,156
InfoNow Corporation, 1/2 Warrants, Strike $1.40,
Expire 5/20/98(3)(4)(7) 214,286 126,437
NDU Resources, Ltd., 1/2 Warrants, Strike CAD 2.31,
Expire 5/17/98(3)(4)(7) CAD 75,000 29,860
PT Apac Centertex Corporation Warrants, Strike IDR 1000,
Expire 1/16/97(4) IDR 150,000 7,938
Solomon Resources Ltd., 1/2 Warrants, Strike CAD 1.05,
Expire 1/3/98(3)(4) CAD 75,000 19,381
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS - 2.6% (Cost $784,352) 809,256
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 77.2% (Cost $23,372,225) 24,264,559
- -------------------------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -------------------------------------------------------------------------------------------------------------------------------
Cash 185,971
Czech Koruna 148,903
Hong Kong Dollars 3
Repurchase Agreement
State Street Bank and Trust Company, 5.00%, dated 12/31/96,
due 1/2/97, maturity value $1,999,555(collateralized by
$1,565,000 par value U.S. Treasury Bond, 9.25%, due 2/15/16) 1,999,000
Federal National Mortgage Association, 5.50%, due 1/8/97,
$4,700,000 par value 4,694,974
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 22.3% 7,028,851
- -------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 0.5% 147,271
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 31,440,681
</TABLE>
(1) Income-producing security.
(2) Foreign-denominated security; AUD - Australian Dollar, CAD - Canadian
Dollar, GBP - British Pound, HKD - Hong Kong Dollar, IDR - Indonesian
Rupiah, PKR - Pakistani Rupee, SGD - Singapore Dollar.
(3) Fair-value security. See 1.a. in Notes to Financial Statements.
(4) See 4.d. in Notes to Financial Statements.
(5) These securities may be resold in transactions exempt from registration
under Rule 144A of the Securities Act of 1933, normally to qualified
institutional buyers.
(6) Shares registered for foreign investors.
(7) Restricted security. See 4.c. in Notes to Financial Statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
11
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S>
ASSETS <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investments, at value (Cost: $23,372,225) $ 24,264,559
Cash and cash equivalents 7,028,851
Receivable for investments sold 52,500
Receivable for fund shares subscribed 283,511
Dividend/interest receivable 28,057
Organization cost 15,713
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 31,673,191
- -----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------
Accrued expenses 128,186
Payable for fund shares redeemed 77,524
Payable to adviser 26,800
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 232,510
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS 31,440,681
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital 30,330,116
Accumulated net realized gain from investments 217,687
Net unrealized appreciation on investments 892,878
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $ 31,440,681
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
PRICING OF SHARES: $ 13.52
Net Asset Value, offering and redemption price per share
(Net assets of $31,440,681 applicable to 2,325,797 shares
of beneficial interest outstanding with no par value)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
12
<PAGE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1996
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 166,259
Dividends (net of foreign tax withheld of $5,162) 83,431
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 249,690
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 195,547
Custodian and transfer agent fees 138,322
Professional fees 84,273
Shareholder reports 40,875
Administrative services fee 48,887
Distribution fees 48,887
Registration and filing fees 32,568
Trustees' fees and expenses 22,326
Organization expense 3,850
Insurance fees 374
TOTAL EXPENSES 615,909
- -----------------------------------------------------------------------------------------------------------------------------
LESS: EXPENSE WAIVER BY ADVISER (234,614)
TOTAL EXPENSES, NET 381,295
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS (131,605)
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 349,292
Net change in unrealized appreciation on investments 872,069
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN AND UNREALIZED APPRECIATION ON INVESTMENTS 1,221,361
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,089,756
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED PERIOD ENDED
12/31/96 12/31/95(1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income $ (131,605) $ 1,858
Net realized gain on investments 349,292 -
Net change in unrealized appreciation on investments 872,069 20,809
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 1,089,756 22,667
- --------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTION TO SHAREHOLDERS
Net investment income (2,077) -
Realized gain on investments - -
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (2,077) -
- --------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from capital share transactions 28,709,614 1,620,721
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL CAPITAL SHARE TRANSACTIONS 28,709,614 1,620,721
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 29,797,293 1,643,388
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,643,388 0
End of period $ 31,440,681 $ 1,643,388
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on November 15, 1995.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
14
<PAGE>
<TABLE>
<CAPTION>
FOR THE FOR THE
FOR A SHARE OUTSTANDING YEAR ENDED PERIOD ENDED
THROUGHOUT THE PERIOD: 12/31/96 12/31/95(1)(3)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.45 $ 10.00
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Net investment (loss)/income (0.09) 0.03
Net realized gain and net change in unrealized
appreciation on investments 3.17 0.42
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3.08 0.45
- --------------------------------------------------------------------------------------------------------------------------------
Distributions from net investment income (0.01) -
Distributions from realized gain on investments - -
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $ 13.52 $ 10.45
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 29.39% 4.50%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets, end of period $ 31,440,681 $ 1,643,388
Ratio of Expenses to Average Net Assets 1.94%(2) 1.91%(2)
Ratio of Net Investment (Loss)/Income to Average Net Assets (0.67)%(2) 2.06%(2)
Portfolio Turnover Rate 66% 0%
Average Commission Rate Paid(4) $ 0.0134 -
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on November 15, 1995.
(2) If the Fund had paid all of its expenses and had received no reimbursement
from the Adviser, the ratio of expenses to average net assets for the year
ended December 31, 1996, and the period ended December 31, 1995, would have
been 3.14% and 9.04%, respectively, and the ratio of net investment loss to
average net assets would have been (1.87)% and (5.07)%, respectively.
(3) Ratios, except for total return and portfolio turnover rate, have been
annualized.
(4) A fund is required to disclose its average commission rate per share for
security trades on which a commission is charged. This amount may vary from
fund to fund and period to period depending on the mix of trades executed
in various markets where trading practices and commission rate structures
may differ. This rate generally does not reflect markups, markdowns or
spreads on shares traded on a principle basis, if any.
Per-share data for each period has been determined by using the average
number of shares outstanding throughout each period. Distributions reflect
actual per-share amounts distributed for the year.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Global Low-Priced Stock Fund (the "Fund") is a series of
the Robertson Stephens Investment Trust (the "Trust"), a Massachusetts business
trust organized on May 11, 1987. The Fund is registered under the Investment
Company Act of 1940, as amended (the "1940 Act") as a diversified, open-end
management investment company. The Fund became effective to offer shares to the
public on November 15, 1995. The Trust offers eleven series of shares -- The
Robertson Stephens Emerging Growth Fund, The Robertson Stephens Value + Growth
Fund, The Contrarian Fund-TM-, The Robertson Stephens Developing Countries Fund,
The Robertson Stephens Growth & Income Fund, The Robertson Stephens Partners
Fund, The Information Age Fund-TM-, The Robertson Stephens Global Natural
Resources Fund, The Robertson Stephens Global Low-Priced Stock Fund, The
Robertson Stephens Diversified Growth Fund, and The Robertson Stephens MicroCap
Growth Fund. The assets for each series are segregated and accounted for
separately.
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES:
The following policies are in conformity with generally accepted accounting
principles.
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
a. INVESTMENT VALUATIONS:
Marketable securities are valued at the last sale price on the principal
exchange or market on which they are traded; or, if there were no sales that
day, at the mean between the closing bid and asked prices. 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, 94.6% of the Fund's positions were valued in this manner.
Securities for which market quotations are not readily available are valued at
their fair value as determined in accordance with the guidelines and procedures
adopted by the Fund's Board of Trustees. The guidelines and procedures use all
available resources, including quotations from market-makers and fundamental
valuation methods which include, but are not limited to, the analysis of: the
effect of any restrictions on the sale of the security, product development and
trends of the security's issuer, changes in the industry and other competing
companies, significant changes in the issuer's financial position, and any other
event which would have a significant impact on the value of a security. At
December 31, 1996, 5.4% of the Fund's positions were valued using these
guidelines and procedures.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Fund's custodian and is monitored daily to ensure
that the 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
counterpart 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.
16
<PAGE>
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date the securities are
purchased or sold (trade date). Realized gains and losses on securities
transactions are determined on the basis of specific identification.
e. FOREIGN CURRENCY TRANSLATION:
The accounting records of the Fund are maintained in U.S. dollars. Investment
securities and all other assets and liabilities of the Fund denominated in a
foreign currency are translated into U.S. dollars at the exchange rate each day.
Purchases and sales of securities, income receipts, and expense payments are
translated into U.S. dollars at the exchange rate in effect on the dates of the
respective transactions.
The Fund does not isolate the portion of the fluctuations on investments
resulting from changes in foreign currency exchange rates from the fluctuations
in market prices of investments held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments.
f. INVESTMENT INCOME:
Dividend income is recorded on the ex-dividend date. Interest income is accrued
and recorded daily.
g. DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders are recorded on the ex-dividend date.
h. CAPITAL ACCOUNTS:
Due to the timing of dividend distributions and the differences in accounting
for income and realized gains/(losses) for financial statement and federal
income tax purposes, the fiscal year in which amounts are distributed may differ
from the year in which the income and realized gains/(losses) were recorded by
the portfolio.
NOTE 2 CAPITAL SHARES:
a. TRANSACTIONS:
The Fund has authorized an unlimited number of shares of beneficial interest
with no par value. Transactions in capital shares for the year ended December
31, 1996 and for the period from November 15, 1995 (Commencement of Operations),
through December 31, 1995, were as follows:
1/1/96 - 12/31/96 SHARES AMOUNT
- -------------------------------------------------------------------------------
Shares sold 4,496,553 $ 59,273,573
Shares reinvested 150 2,030
- -------------------------------------------------------------------------------
4,496,703 59,275,603
- -------------------------------------------------------------------------------
Shares redeemed (2,328,173) (30,565,989)
- -------------------------------------------------------------------------------
Net increase 2,168,530 $ 28,709,614
- -------------------------------------------------------------------------------
11/15/95 - 12/31/95 SHARES AMOUNT
- -------------------------------------------------------------------------------
Shares sold 164,230 $ 1,691,739
Shares reinvested - -
- -------------------------------------------------------------------------------
164,230 1,691,739
- -------------------------------------------------------------------------------
Shares redeemed (6,963) (71,018)
- -------------------------------------------------------------------------------
Net increase 157,267 $ 1,620,721
- -------------------------------------------------------------------------------
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, LP ("RSIM") an investment advisory fee and an
administrative services fee
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
calculated respectively at an annual rate of 1.00% and 0.25% of the average
daily net assets of the Fund. For the year ended December 31, 1996, the Fund
incurred investment advisory fees and administrative fees of $195,547 and
$48,887, respectively. 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 $234,614 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 for 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. 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 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, RS & Co. agreed to
waive distribution fees worth $48,887.
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
underwriting in which RS & Co. has been retained by the issuer. For the year
ended December 31, 1996, the Fund paid brokerage commissions $2,087 to RS &
Co., which represented 1.6% of total commissions paid during the year.
18
<PAGE>
NOTE 4 INVESTMENTS:
a. TAX BASIS OF INVESTMENTS:
At December 31, 1996, the cost of investments for federal income tax purposes
was $23,438,888. Accumulated net unrealized appreciation on investments was
$825,671, consisting of gross unrealized appreciation and depreciation of
$4,485,761 and $(3,629,617), 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 short-term investments) were
$32,899,602 and $10,338,754, respectively.
c. 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 $1,076,788, which represented
3.4% 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
- --------------------------------------------------------------------------------
Brazilian Resources,
Inc., 1/2 Warrants 46 $ 14 $ 9 3/01/96
First Dynasty Mines, Ltd. 100 246 243 9/13/96
First Dynasty Mines,
Ltd., Warrants 100 64 9 9/13/96
InfoNow Corporation 214 203 342 11/20/96
InfoNow Corporation,
1/2 Warrants 214 97 126 11/20/96
NDU Resources, Ltd. 75 87 73 5/16/96
NDU Resources, Ltd.,
Warrants 75 23 30 5/16/96
Sino-Forest Corp., Class A 300 275 245 10/02/96
- --------------------------------------------------------------------------------
$ 1,009 $ 1,077
- --------------------------------------------------------------------------------
d. OPTIONS AND WARRANTS:
Options and warrants normally entitle the holder to purchase a proportionate
number of a particular class of the issuer's securities at a predetermined
price during a specific period. Options and warrants for which market
quotations were not readily available were priced using the modified
Black-Scholes Valuation Formula. The Black-Scholes Valuation Formula values
an option or warrant by determining the differential between the exercise
price of the option or warrant and the current price of the underlying stock
based on a number of factors. These factors include, but are not limited to,
current price of the underlying stock, exercise price of the option or
warrant, time to expiration, assumed riskless rate of interest, compounded
rate of return on the stock, and standard deviation of the return on the
stock. This valuation method is subject to frequent review and is in
accordance with the guidelines and procedures adopted by the Fund's Board of
Trustees.
e. FOREIGN SECURITIES:
Foreign securities investments involve special risks and considerations not
typically associated with those of U.S. origin. These risks include, but are not
limited to, reevaluation of currencies, adverse political, social, and economic
developments, and less reliable information about issuers. Moreover, securities
of many foreign companies and markets may be less liquid and their prices more
volatile than those of U.S. companies and markets.
The Fund intends to invest no more than 40% of its total assets exclusively in
one foreign country. At December 31, 1996, the Fund had its largest concentrated
foreign investments, worth 18.3% of the Fund's total assets, in Canada.
19
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of The Robertson Stephens Global Low-
Priced Stock Fund
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of The Robertson
Stephens Global Low-Priced Stock 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
Price Waterhouse LLP
San Francisco, California
February 7, 1997
<PAGE>
ADMINISTRATION
OFFICERS AND TRUSTEES
G. Randy Hecht
President, Chief Executive Officer
Terry R. Otton
Chief Financial Officer
Dana K. Welch
Secretary
Leonard B. Auerbach, Trustee
President and Chairman of Auerbach
Associates, Inc.
Daniel R. Cooney, Trustee
Former Portfolio Manager of the
Lord Abbett Developing Growth Fund
James K. Peterson, Trustee
Former Director of the IBM
Retirement Funds
John P. Rohal, Trustee
Managing Director and Director of
Research, Robertson, Stephens & Co.
INVESTMENT ADVISER
Robertson, Stephens & Company
Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Robertson, Stephens & Company LLC
555 California Street, Suite 2600
San Francisco, CA 94104
1-800-766-3863
TRANSFER AGENT AND DISBURSING AGENT
State Street Bank & Trust Company
c/o National Financial Data Services
Kansas City, MO
1-800-272-6944
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
San Francisco, CA
LEGAL COUNSEL
Ropes & Gray
Boston, MA
This report is submitted for the information of shareholders of The Robertson
Stephens Global Low-Priced Stock Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an effective prospectus.
Published February 28, 1997
20
<PAGE>
Design: Broom & Broom, Inc., San Francisco
Photography by Jerry Orabona, Bill Zemanek
THE ROBERTSON STEPHENS MUTUAL FUNDS
In addition to THE GLOBAL LOW-PRICED STOCK FUND-TM-, 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 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 PARTNERS FUND
A SMALL-CAP FUND USING A VALUE METHODOLOGY - This methodology combines
traditional Graham & Dodd balance sheet analysis and cash flow analysis. No
load. Managed by Andy Pilara, Jr.
THE VALUE + GROWTH FUND
A GROWTH FUND FOR THE LONG-TERM INVESTOR - Invests primarily in growth companies
with favorable price/earnings ratios in sectors with the potential for above-
average growth. No load. Managed by Ron Elijah.
Please read the prospectus to learn about the Funds' objectives, investment
policies, and the special risks associated with The Robertson Stephens Mutual
Funds, including international investing, investing in smaller companies,
investing in a more limited number of issuers and sectors or a particular
sector, short selling, using options and futures, and investing in high-
yielding, lower-quality debt securities.
<PAGE>
ROBERTSON STEPHENS & COMPANY
BRINGING THE FUND MANAGER TO YOU
555 California Street, Suite 2600
San Francisco, California 94104
FUND NEWS & INFORMATION
ROBERTSON STEPHENS INVESTOR SERVICES
- - Knowledge mutual find 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.
FUND LISTINGS
The Fund is listed in THE WALL STREET JOURNAL, USA TODAY, INVESTOR'S BUSINESS
DAILY, and most local newspapers as LowPrc under the heading Robertson Stephens.
Its computer quotation symbol is RSLPX.
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.
