<PAGE>
SEMIANNUAL REPORT
[GRAPHICS]
[GRAPHICS]
[GRAPHICS]
ROBERTSON STEPHENS MUTUAL FUNDS
Second Quarter Ended
June 30, 1998
<PAGE>
ROBERTSON STEPHENS FUNDS
555 California Street, Suite 2600
San Francisco, California 94104
l-800-766-3863
CURRENT INFORMATION
- - Automated access to daily net
asset values.
OPTION 1
- - Knowledgeable mutual fund
representatives.
OPTION 2
PORTFOLIO MANAGER HOTLINE
- - Updated commentary on each
of the funds from our portfolio
managers. Accessible through our
Web site or our toll free number.
OPTION 5
------------------------------
[LOGO]
ON THE WEB
http://www.rsim.com
Mutual Fund E-mail
[email protected]
l-800-624-8025
ACCOUNTLINK
- - Automated account
information, 24 hours a day.
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Contrarian Fund-TM-
The Developing Countries Fund
The Diversified Growth Fund
The Emerging Growth Fund
The Global Natural Resources Fund
The Growth & Income Fund
The Global Value Fund
The Information Age Fund-TM-
The MicroCap Growth Fund
The Partners Fund
The Value + Growth Fund
ROBERTSON STEPHENS FUNDS
<PAGE>
SEMIANNUAL REPORT
July, 1998
[PHOTO]
DEAR SHAREHOLDER:
The second quarter brought slightly higher levels to the broad domestic stock
indexes which had been up substantially in the first quarter. However, the
second quarter results masked significant declines in the level of most stocks
other than the largest 100 companies in the country. Through the first six
months of 1998, the performance returns were neatly structured with the largest
stocks yielding the highest returns, followed by mid-cap, small-cap and micro-
cap stocks, respectively. The trend of larger capitalization stocks
outperforming smaller capitalization stocks has been in place since 1995. This
long trend has resulted in smaller capitalization stocks being significantly
cheaper than large capitalization stocks using customary valuation methods.
History strongly suggests that over a longer period, relative valuations between
large-cap and small-cap stocks will converge or revert back to historic norms.
We believe the stage is being set for this to occur and we would suggest that
investors begin to consider allocating capital to the small-cap sector over the
next six to twelve months.
Robertson Stephens Investment Management has been investing in small-cap stocks
since its inception. Some of our small-cap funds include the Partners Fund
(value) and the MicroCap Growth, Emerging Growth and Diversified Growth Funds
(growth).
Five of our funds performed well against their benchmarks this quarter and our
relative volatility continues to be better than it has been in the past. Our
stated goal for all of our funds is high relative risk-adjusted returns. As you
will see in the pages that follow, the underperforming Global Low-Priced Stock
Fund was recently merged into the Partners Fund. We expect to propose to
shareholders of the Developing Countries Fund this fall that the Fund also be
merged into the Partners Fund; that merger should be completed by the end of the
fourth quarter.
All of you should have already received the quarterly letter from the portfolio
manager of the funds in which you own shares. These updates were sent within 30
days of quarter-end--a new step by Robertson Stephens to get the most important
information to you as quickly as possible. Next quarter our goal is to get these
updates to you within three weeks of quarter-end. Very few other fund
organizations provide this timely service. If you would like more frequent
updates on your fund(s), please call our hotline at (800) 766-3863, option 5,
where you can listen to candid updates recorded by Robertson Stephens portfolio
managers. You can also access these commentaries and a variety of other
informative features at our Web site, WWW.RSIM.COM.
As you may know, the portfolio managers and I all have significant investments
in the Robertson Stephens Funds. We originally designed our funds as a way for
our friends to invest with us. We still think of it that way and we thank you
for your investment.
Sincerely,
/s/ G. Randy Hecht
G. Randy Hecht
President
Robertson Stephens Funds
[email protected]
2
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
Table of Contents
FUND INFORMATION
The Contrarian Fund-TM- . . . . . . . . . . . . . . . . 4
The Developing Countries Fund . . . . . . . . . . . . . 6
The Diversified Growth Fund . . . . . . . . . . . . . . 8
The Emerging Growth Fund . . . . . . . . . . . . . . . . 10
The Global Low-Priced Stock Fund . . . . . . . . . . . . 12
The Global Natural Resources Fund . . . . . . . . . . . 14
The Global Value Fund . . . . . . . . . . . . . . . . . 16
The Growth & Income Fund . . . . . . . . . . . . . . . . 18
The Information Age Fund-TM- . . . . . . . . . . . . . . 20
The MicroCap Growth Fund . . . . . . . . . . . . . . . . 22
The Partners Fund . . . . . . . . . . . . . . . . . . . 24
The Value + Growth Fund . . . . . . . . . . . . . . . . 26
FINANCIALS
Schedule of Investments . . . . . . . . . . . . . . . . 28
Statement of Assets and Liabilities . . . . . . . . . . 50
Statement of Operations . . . . . . . . . . . . . . . . 52
Statement of Changes in Net Assets . . . . . . . . . . . 54
Financial Highlights (A+C) . . . . . . . . . . . . . . . 58
Notes to Financial Statements . . . . . . . . . . . . . 64
3
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
The Contrarian Fund-TM-
[PHOTO]
PAUL H. STEPHENS
Fund Philosophy
The Contrarian Fund-TM- seeks to achieve maximum long-term growth of capital by
investing worldwide in growing companies that are attractively priced. The Fund
invests on a global basis in an effort to make timely investments in new
discovery ideas or in companies and industries that are neglected, unpopular or
overlooked. When appropriate, the Fund will short sell stocks.
- --------------------------------------------------------------------------------
Q & A
Q: HOW DID THE CONTRARIAN FUND PERFORM OVER THE FIRST HALF OF 1998?
A: The Contrarian Fund underperformed on both an absolute and a relative
basis. As contrarians, we have invested in depressed sectors that we
thought might offer value and safety in a market that has surpassed
everyone's expectations and skyrocketed to all-time highs. Our cautious
approach of avoiding and even shorting highly valued or overvalued stocks
has worked against us.
Q: WHAT STOCKS OR SECTORS MOST INFLUENCED THE FUND'S PERFORMANCE DURING THE
FIRST HALF?
A: Our contrarian strategy has not been to chase hot stocks like many mutual
fund managers do, but to favor individual stocks or entire sectors that are
out of favor. Our biggest disappointment has been the Fund's 40% to 50%
weighting in natural-resource stocks, as commodity prices have dropped to
historic lows. Nickel, currently near $2.00 per pound, is at an all-time
low. Gold bullion is close to a 15-year trough. Copper, oil and natural gas
are also under severe pressure. With economic problems in Asia, Russia and
especially Japan, there are growing fears of global deflation, which would
depress commodity prices for an extended period. I personally do not expect
global deflation, but these fears have already had a major impact on
natural-resource stocks. We believe natural-resource stocks are extremely
attractive and undervalued.
So far this year, the Fund's weakest individual stock position has been our
third-largest holding, Inco VBN. As of June 30, we had 8.64% of the Fund in
shares of this nickel producer, which have continued to hit new lows as the
price of nickel has plummeted. We have maintained a large position in Inco
because we still have a very positive outlook for the company and its
fabulous assets. Like nickel producers, copper-mining firms have also been
under pressure for some time. Shares of Indochina Goldfields (2.36%), one
of the Fund's top 10 holdings over the quarter, have dropped to a Canadian
price of $1.55 per share, down from $18.00 per share in March 1997. We are
still strong believers in this company and in the longer-term potential of
base- and precious-metals mining firms.
Q: WHAT HOLDINGS PERFORMED WELL?
A: On the positive side, our media and telecom holdings have contributed gains
to the Fund this year. We currently have about 17% of the portfolio
invested in this sector, primarily through CD Radio, Inc., (8.86%) and
Metromedia International (6.46%). We think both companies have very strong
long-term prospects.
Q: WHAT'S YOUR STRATEGY FOR THE SECOND HALF OF 1998?
A: We remain committed to our long-term strategy: searching for out-of-favor
companies that we think offer great long-term investment value.
7/31/98
- --------------------------------------------------------------------------------
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. Short selling is the sale of a borrowed security,
and the price of the security can increase between the date the security is sold
and the date when the fund must replace it. Options and futures may not be
perfectly correlated to the underlying index or security. High-yielding,
lower-quality debt securities may be considered to be of lower standing and more
speculative.
4
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Gold Mining 18.20%
Media & Telecommunication Services 16.50%
Construction/Infrastructure 14.30%
Short Positions (Net) 10.60%
Nickel Mining 8.60%
Energy 7.40%
Financial Services 6.60%
Diamond Mining 4.70%
Copper & Gold Mining 2.40%
Aluminum 1.90%
Real Estate 1.50%
Transportation Services 1.40%
Convertible Bonds/Preferred Stocks 1.10%
Platinum Group Metals 0.40%
Warrants 0.20%
Textiles 0.10%
Options 0.10%
Cash & Cash Equivalents 0.00%
Other & Other Liabilities, Net 4.00%
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Royal Group Technologies, Ltd..................... 14.34%
CD Radio, Inc. ................................... 8.86%
Inco, Ltd., VBN Shares............................ 8.64%
Metromedia International Group, Inc. ............. 6.46%
Dundee Bancorp, Inc., Class A..................... 6.38%
DiamondWorks, Ltd. ............................... 4.18%
Etruscan Resources, Ltd. ......................... 3.25%
Normandy Mining, Ltd. ............................ 3.06%
Consolidated African Mines, Ltd. ................. 2.90%
Indochina Goldfields, Ltd. ....................... 2.36%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
6/30/93)
[GRAPH]
<TABLE>
<CAPTION>
The Contrarian Fund-TM- MSCI AC WORLD INDEX(4)
<S> <C> <C> <C> <C>
6/93 $ 10,000 $ 10,000
9/93 $ 9,559 $ 10,439
12/93 $ 11,186 $ 10,756
3/94 $ 12,098 $ 10,730
6/94 $ 11,618 $ 10,987
9/94 $ 11,078 $ 11,348
12/94 $ 10,568 $ 11,101
3/95 $ 10,739 $ 11,391
6/95 $ 12,626 $ 11,831
9/95 $ 13,308 $ 12,384
12/95 $ 13,830 $ 12,847
3/96 $ 16,731 $ 13,308
6/96 $ 16,038 $ 13,682
9/96 $ 16,440 $ 13,741
12/96 $ 16,828 $ 14,240
3/97 $ 17,062 $ 14,326
6/97 $ 16,036 $ 16,389
9/97 $ 15,244 $ 16,695
12/97 $ 11,862 $ 16,036
3/98 $ 12,127 $ 18,186
6/98 $ 10,769 $ 18,226
</TABLE>
PERFORMANCE UPDATE (AS OF 6/30/98)
<TABLE>
<CAPTION>
THREE-YEAR FIVE-YEAR TOTAL AVERAGE ANNUAL
YEAR TO DATE ONE-YEAR AVERAGE AVERAGE RETURN SINCE RETURN SINCE
TOTAL RETURN TOTAL RETURN ANNUAL RETURN ANNUAL RETURN INCEPTION(6) INCEPTION(6)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contrarian Fund Class A(1) -9.22% -32.85% -5.17% 1.49% 7.69% 1.49%
Contrarian Fund Class C(2,3) -10.95% -34.49% N/A NA -36.42% -31.20%
MSCI AC World Index(4) 13.65% 11.21% 15.49% 12.76% 82.26% 12.75%
S&P 500 Index(5) 17.63% 30.13% 30.24% 23.05% 182.14% 23.04%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 6/30/93.
(2) Inception date for Class C was 4/14/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Morgan Stanley Capital International (MSCI) All Country World Index is
an unmanaged, market capitalization-weighted index composed of companies
representative of the market structure of 47 developed and emerging market
countries. You cannot invest in an index itself.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Morgan Stanley Capital International (MSCI) All Country World Index and S&P
500 Index are calculated from the Class A Share inception date, 6/30/93.
5
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Developing Countries Fund
[PHOTO]
MICHAEL C. HOFFMAN
Fund Philosophy
Long-term capital appreciation drives the investment strategy of The Robertson
Stephens Developing Countries Fund. The Fund seeks to capitalize on both rising
and falling markets. Primarily, it invests in equity securities of growing or
undervalued companies in developing countries that we believe have the potential
for future growth.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE FUND PERFORM OVER THE FIRST HALF OF 1998?
A. As the headlines will tell you, the first half was a very difficult period
for the emerging markets and, by extension, our Fund. Problems in Asia
flared up again and began to exert pressure on emerging markets in other
parts of the world.
Q. WHAT'S YOUR OUTLOOK FOR THE SECOND HALF OF 1998?
A. We expect to propose in the near future that the Robertson Stephens
Developing Countries Fund be merged into the Robertson Stephens Partners
Fund. As you all know, the emerging markets category has greatly
underperformed virtually all the major domestic and international broad
indexes over the last four years. With this backdrop, the Robertson
Stephens Developing Countries Fund has been unable to attract sufficient
assets to cover its costs since its inception. With emerging markets in a
deep recession, it seems unlikely that we will be able to attract
sufficient assets to cover our costs anytime in the near future. We believe
that in today's market environment opportunities to profit from investing
in emerging markets can come through other avenues, for example,
investments in international companies with significant operations in
emerging markets. These companies often bring experienced managements to
these markets that are many times sorely lacking in emerging market
companies.
The Partners Fund seeks long-term growth by investing in equity securities
primarily of companies with market capitalizations of up to $1 billion.
The Fund may invest any portion of its assets in U.S. or foreign
securities, and is managed by Andrew P. Pilara, Jr., a managing director of
RSIM. Andy has more than 25 years of investing experience and has been
portfolio manager of the Partners Fund since its inception.
THIS ANNOUNCEMENT IS NEITHER AN OFFER TO SELL, NOR A SOLICITATION OF AN
OFFER TO BUY, SHARES OF THE PARTNERS FUND. THE OFFER WILL BE MADE ONLY BY
MEANS OF THE PROSPECTUS/PROXY STATEMENT.
A REGISTRATION STATEMENT RELATING TO THE SHARES OF THE PARTNERS FUND THAT
WOULD BE ISSUED IN CONNECTION WITH THE MERGER HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION BUT HAS NOT YET BECOME EFFECTIVE. THE
SHARES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME
THAT THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS ANNOUNCEMENT SHALL
NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR
SHALL THERE BE ANY SALE OF THE SHARES IN ANY STATE IN WHICH SUCH OFFER,
SOLICITATION, OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
FOLLOWING THE EFFECTIVE DATE OF THE REGISTRATION STATEMENT, SHAREHOLDERS OF
THE DEVELOPING COUNTRIES FUND MAY OBTAIN A PROSPECTUS/PROXY STATEMENT BY
CALLING ROBERTSON STEPHENS FUNDS AT 1-800-766-3863. THE PROSPECTUS/PROXY
STATEMENT CONTAINS MORE COMPLETE INFORMATION ABOUT THE PARTNERS FUND,
INCLUDING CHARGES AND EXPENSES; DEVELOPING COUNTRIES FUND SHAREHOLDERS
SHOULD READ IT CAREFULLY.
7/31/98
- --------------------------------------------------------------------------------
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. Short selling is the sale of a borrowed security and
the price of the security can increase between the date the security is sold and
the date when the fund must replace it. Options and futures may not be perfectly
correlated to the underlying index or security.
6
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Mexico 11.60%
Thailand 5.90%
Czech Republic 5.30%
Romania 4.90%
Turkey 4.80%
South Africa 4.20%
Philippines 3.70%
Egypt 3.60%
Argentina 2.90%
Russia 2.40%
Malaysia 2.30%
Israel 2.30%
Korea 2.10%
Cash & Cash Equivalents 42.80%
Other & Other Liabilities, Net 1.20%
-------
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
SPT Telecom, A.S. ............................... 5.28%
Romanian Investment Fund......................... 4.90%
Eczacibasi Ilac Sanayi ve Ticaret, A.S. ......... 4.76%
Consolidated African Mines, Ltd. ................ 4.18%
Desc, S.A. de C.V., ADR.......................... 3.79%
Cifra S.A. de C.V., Class V, ADR................. 3.74%
Ionics Circuits, Inc. ........................... 3.71%
Al-Ahram Beverages Co. S.A.E., GDR............... 3.64%
Thai Farmers Bank Public Co., Ltd., Foreign...... 2.69%
TV Azteca, S.A. de C.V., ADR..................... 2.48%
</TABLE>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES
(IF INVESTED ON 5/2/94)
<TABLE>
<CAPTION>
[GRAPH]
The Developing Countries Fund MSCI Emerging Markets Global Index(4)
<S> <C> <C>
5/2/94 $10,000 $10,000
6/94 $ 9,960 $10,083
9/94 $ 9,990 $12,164
12/94 $ 9,497 $10,691
3/95 $ 8,686 $ 9,444
6/95 $ 9,375 $ 9,889
9/95 $ 9,213 $ 9,781
12/95 $ 8,129 $ 9,541
3/96 $ 8,940 $ 9,949
6/96 $10,085 $10,519
9/96 $ 9,821 $10,068
12/96 $ 9,852 $ 9,936
3/97 $10,238 $10,697
6/97 $10,461 $11,591
9/97 $10,502 $10,473
12/97 $ 8,347 $ 8,434
3/98 $ 8,076 $ 9,004
6/98 $ 6,556 $ 6,820
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
THREE-YEAR AVERAGE
YEAR TO DATE ONE-YEAR AVERAGE TOTAL RETURN ANNUAL RETURN
TOTAL RETURN TOTAL RETURN ANNUAL RETURN SINCE INCEPTION(5) SINCE INCEPTION(5)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Developing Countries Fund Class A(1) -21.45% -37.33% -11.24% -34.44% -9.64%
Developing Countries Fund Class C(2),(3) -23.60% -39.65% N/A -35.18% -31.51%
MSCI Emerging Markets Global Index(4) -19.14% -41.16% -11.65% -31.80% -8.78%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 5/2/94.
(2) Inception date for Class C was 5/8/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Morgan Stanley Capital International (MSCI) Emerging Markets Global
Index (EMG) is a market capitalization weighted index composed of companies
representative of the market structure of 20 emerging market countries in
Europe, Latin America and the Pacific Basin. You cannot invest in an index.
(5) The Total and Average Annual Return Since Inception percentages for the
MSCI Emerging Markets Global Index are calculated from the Class A Share
inception date, 5/2/94.
7
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Diversified Growth Fund
[PHOTO]
JOHN L. WALLACE
Fund Philosophy
The Diversified Growth Fund seeks to achieve long-term capital growth by
investing primarily in small- and mid-cap stocks. Our flexible, bottom-up
approach is based on our search for a growth catalyst and trend analysis. We
look for well-managed companies with improving fundamentals that may be
positioned for growth. We also may engage in short sales of securities we expect
to decline in price. Our formula for long-term success also includes a
disciplined approach to risk: losses are eliminated quickly, and we are
constantly looking for attractive new opportunities.
[PHOTO]
JOHN H. SEABERN
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE DIVERSIFIED GROWTH FUND PERFORM OVER THE FIRST HALF OF 1998?
A. The Fund had a strong start in early 1998. Our focus on small-to mid-cap
stocks was more beneficial during the first quarter than it was last year,
as this area of the market rebounded from some of its weakness versus
larger-cap stocks in late 1997. Investors' concerns about Asia's economic
crisis and its impact on U.S. corporate earnings dissipated somewhat during
the first few months of the year. Despite some high-profile shortfalls,
many companies reported solid results. The economic backdrop in the U.S.
remained very favorable, with low inflation, stable interest rates and
robust consumer spending.
Q. WHAT MAIN SECTORS OR STOCKS DROVE THE FUND'S PERFORMANCE?
A. Several of our cable television stocks, which include MediaOne Group and
Comcast (2.31% and 1.60% of the Fund's holdings, respectively, as of June
30, 1998) were very strong during the first half. AT&T's recent
announcement of plans to acquire Tele-Communications, Inc. drove up TCI's
shares along with those of several other cable companies. Many of the
Fund's retail holdings (currently about 7-8% of the portfolio) also
profited during the second half from the robust level of consumer spending
and cheaper imports from Asia.
Q. SINCE EARLY MAY, THE STOCK MARKET HAS BECOME MORE TURBULENT. WHAT'S YOUR
PERSPECTIVE ON THE HEIGHTENED VOLATILITY?
A. With the news that Japan's economy has gone into recession, Asia's problems
are once again creating uncertainty in the U.S. market. Surprisingly,
though, the small- to mid-cap stocks on which we focus have borne the brunt
of the sell-off. As we've said in the past, most U.S. small-caps do very
little business with Asia, and are therefore not as vulnerable to its
economic downturn as large multinational companies. In addition, we believe
that many small-caps are growing their corporate earnings at two to three
times the rate of larger companies, while their share valuations are, in
some cases, half that of large-caps. We also think that small companies
will be able to sustain these growth rates more easily than large-caps. We
believe that, in time, other investors will begin to recognize the
opportunity small-caps represent, especially if blue chips begin to report
earnings shortfalls due to Asia's economic woes.
7/31/98
- --------------------------------------------------------------------------------
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. Short
selling is the sale of a borrowed security, and the price of the security can
increase between the date the security is sold and the date when the fund must
replace it. Options and futures may not be perfectly correlated to the
underlying index or security. High-yielding, lower-quality debt securities may
be considered to be of lower standing and more speculative.
8
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Computer Software & Hardware 18.0%
Banks / Financial Services / Insurance 10.9%
Consumer/Retail 8.9%
Media 8.4%
Telecommunications Equipment & Services 8.0%
Business / Commercial Services 6.6%
Data Processing 5.2%
Healthcare and Hospitals 4.8%
Home Building 4.0%
Medical Instruments & Supplies 3.2%
Food Retail / Wholesale 3.2%
Airlines 2.9%
Biotechnology 2.0%
Electronic Components 2.0%
Energy Services 1.9%
Warrants 1.4%
Pharmaceuticals 1.4%
Oil/Gas Drilling 1.4%
Construction and Infastructure 1.2%
Network Systems 1.1%
Short Positions 0.9%
Cash & Cash Equivalents 0.0%
Other & Other Liabilities, Net 2.6%
-------
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Sabratek Corporation............................. 2.99%
FORE Systems, Inc. .............................. 2.61%
MediaOne Group, Inc. ............................ 2.31%
MicroStrategy, Inc. ............................. 2.22%
Egghead.com, Inc. ............................... 2.10%
FileNet Corporation.............................. 2.08%
Zapata Corporation............................... 2.07%
Concord Communications, Inc. .................... 2.01%
Splash Technology Holdings, Inc. ................ 2.00%
East-West Bank................................... 1.97%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES
(IF INVESTED ON 8/1/96)
<TABLE>
<CAPTION>
[GRAPH]
The Diversified Growth Fund Russell 2000 Index(4)
<S> <C> <C>
8/1/96 $10,000 $10,000
9/96 $11,110 $10,873
12/96 $12,420 $11,439
3/97 $11,870 $10,847
6/97 $13,320 $12,606
9/97 $16,670 $14,482
12/97 $16,077 $13,997
3/98 $18,665 $15,405
6/98 $17,199 $14,687
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
TOTAL AVERAGE ANNUAL
YEAR TO DATE ONE-YEAR RETURN SINCE RETURN SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
<S> <C> <C> <C> <C>
Diversified Growth Fund Class A(1) 6.98% 29.12% 71.99% 32.79%
Diversified Growth Fund Class C(2)(3) 5.10% N/A 6.27% N/A
Russell 2000 Index(4) 4.93% 16.51% 46.87% 22.26%
S&P 500 Index(5) 17.63% 30.13% 80.39% 36.14%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 8/1/96.
(2) Inception date for Class C was 9/8/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell 2000 Index is a market capitalization-weighted index composed
of 2,000 U.S. companies with an average market capitalization of $467
million. Investment results assume the reinvestment of dividends paid on
the stocks constituting the index. You cannot invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell 2000 Index and S&P 500 Index are calculated from the Class A Share
inception date, 8/1/96.
9
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Emerging Growth Fund
[PHOTO]
JAMES L. CALLINAN
Fund Philosophy
The Robertson Stephens Emerging Growth Fund seeks capital appreciation by
investing primarily in small, rapidly growing companies. The Fund is actively
managed, involving hands-on fundamental research that includes extensive travel
and visits with company managements. The Fund seeks to invest in companies that
are growing at least 20% annually, are market share leaders, and are managed by
executives who can leverage a competitive advantage and consistently execute in
today's business environment. The Fund is intended for investors with long-term
investment goals.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE EMERGING GROWTH FUND PERFORM OVER THE FIRST HALF OF 1998?
A. The Fund outperformed its benchmark, the Russell 2000 Growth Index, by a
wide margin over the first half. Small-cap growth stocks had a very strong
start this year. In May and June, however, the market dropped sharply.
Investors became concerned about renewed turmoil in Asia and potentially
lower corporate earnings in the United States. That uncertainty drove
investors back into blue chips during the second quarter, even though I
believe many large-caps are more vulnerable to Asia's economic downturn
than the average U.S. small-cap. We think that the tide will turn back
toward small-caps if blue chip companies begin to report slowing revenue
growth. By our estimations, small-caps have not only much stronger growth
prospects than many large companies, but also more-attractive valuations.
Q. WHAT INDIVIDUAL STOCKS OR SECTORS MOST INFLUENCED THE FUND'S PERFORMANCE
DURING THE FIRST HALF?
A. A variety of holdings drove the Fund's performance. Some of our most
profitable positions were in Internet-related companies such as Real
Networks (1.14%), Excite (0.45%), Amazon.com (1.31%) and Network Solutions
(0.97%). Many of our software and information-technology (IT) holdings also
contributed strong gains during the first half. We took some profits on
these stocks during the spring. That turned out to be a wise move, as many
of them subsequently fell into a correction in May and June. Investors
became concerned that Asia's economic crisis would continue to weigh
heavily on demand for semiconductors and PCs. This trend has so far not had
much impact on software makers, but investors still drove down their
shares.
Q. WHAT'S YOUR PERSPECTIVE ON THE RECENT VOLATILITY?
A. We took advantage of the downturn by adding positions in software and IT
service companies, among others. Our strategy of buying into weakness has
served the Fund well in the past. Last fall, for instance, we bought into
Excite when its share price was depressed; within months it nearly
quadrupled. As it bounced back, we trimmed our position to help reduce
risk. The move paid off when Internet stocks came under pressure in May and
June. Despite the recent sell-off, we're convinced that Internet-related
companies offer tremendous long-term growth potential and we think our team
has the unique insight that will allow us to take full advantage of it.
Q. WHAT OTHER AREAS DO YOU FIND ATTRACTIVE?
A. Outside the technology arena, we continue to search for growth in areas
that most other emerging growth fund managers overlook. Regional airlines
are just one example. Several of our holdings in this sector performed very
well from last November through May, leading us to take some profits. Our
willingness to think outside the box is just one of the tactics that we
think will enable us to remain competitive in the long run. We are very
excited about the Fund's long-term prospects.
7/31/98
- --------------------------------------------------------------------------------
Investing in smaller companies can involve risks such as less publicly available
information than larger companies, volatility, and illiquidity.
10
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Computer Software / Services 30.80%
Internet 10.60%
Business/ Commerical Services 9.50%
Consumer Goods/Retail 8.60%
Media 7.30%
Financial Services 4.80%
Restaurants / Hotels 4.60%
Telecom / Communications Equipment & Services 4.60%
Medical / Healthcare 3.70%
Computer Hardware / Semiconductors 2.30%
Education/Training 2.20%
Electronic Components 2.00%
Other Services 1.90%
Real Estate 1.20%
Clothing Retail 1.20%
Environmental 1.00%
Aerospace 0.80%
Cash & Cash Equivalents 2.7%
Other & Other Liabilities, Net 0.20%
Total 100.0%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
ECsoft Group plc................................. 2.67%
Lamar Advertising Company........................ 1.96%
Gemstar International Group, Ltd. ............... 1.76%
Software AG Systems, Inc. ....................... 1.58%
ITT Educational Services, Inc. .................. 1.49%
Labor Ready, Inc. ............................... 1.45%
Micromuse Inc. .................................. 1.43%
Financial Federal Corporation.................... 1.41%
Information Management Resources, Inc. .......... 1.40%
Select Appointments Holdings PLC, ADR............ 1.37%
</TABLE>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
11/30/87)
<TABLE>
<CAPTION>
[GRAPH]
The Emerging Growth Fund Russell 2000 Growth Index(4)
<S> <C> <C> <C> <C>
11/30/87 $ 10,000 $ 10,000
12/87 $ 12,611 $ 11,040
3/88 $ 13,892 $ 12,963
6/88 $ 15,222 $ 13,786
9/88 $ 14,114 $ 13,406
12/88 $ 14,383 $ 13,289
3/89 $ 15,728 $ 14,276
6/89 $ 16,709 $ 15,200
9/89 $ 18,924 $ 16,558
12/89 $ 20,776 $ 15,970
3/90 $ 21,139 $ 15,545
6/90 $ 24,638 $ 16,526
9/90 $ 19,290 $ 12,214
12/90 $ 22,765 $ 13,189
3/91 $ 29,339 $ 17,219
6/91 $ 26,862 $ 16,622
9/91 $ 31,544 $ 18,415
12/91 $ 36,140 $ 19,940
3/92 $ 35,561 $ 20,486
6/92 $ 29,428 $ 18,026
9/92 $ 28,974 $ 18,375
12/92 $ 35,218 $ 21,490
3/93 $ 30,891 $ 21,105
6/93 $ 30,744 $ 21,713
9/93 $ 35,365 $ 23,740
12/93 $ 37,759 $ 24,364
3/94 $ 38,578 $ 23,371
6/94 $ 35,428 $ 21,898
9/94 $ 41,014 $ 23,944
12/94 $ 40,765 $ 23,772
3/95 $ 43,213 $ 25,076
6/95 $ 42,392 $ 27,563
9/95 $ 49,180 $ 30,698
12/95 $ 49,045 $ 31,151
3/96 $ 50,730 $ 32,941
6/96 $ 57,062 $ 34,866
9/96 $ 57,884 $ 34,569
12/96 $ 59,585 $ 34,660
3/97 $ 51,242 $ 31,025
6/97 $ 62,969 $ 36,471
9/97 $ 76,240 $ 42,642
12/97 $ 70,633 $ 39,147
3/98 $ 83,544 $ 43,798
6/98 $ 85,280 $ 41,282
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
FIVE-YEAR TEN-YEAR AVERAGE
AVERAGE AVERAGE TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR ANNUAL ANNUAL SINCE SINCE
TOTAL RETURN TOTAL RETURN RETURN RETURN INCEPTION(6) INCEPTION(6)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Emerging Growth Fund Class A(1) 20.74% 35.43% 22.64% 18.81% 752.80% 22.44%
Emerging Growth Fund Class C(2,3) 18.76% 32.03% N/A N/A 48.47% 41.21%
Russell 2000 Growth Index(4) 5.46% 13.19% 13.71% 11.59% 312.82% 14.33%
S&P 500 Index(5) 17.63% 30.13% 23.05% 18.53% 564.37% 19.58%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 11/30/87.
(2) Inception date for Class C was 5/8/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell 2000 Growth Index is a market capitalization-weighted index
containing those securities in the Russell 2000 with a greater-than-average
growth orientation. It has an average market capitalization of $650
million. Investment results assume reinvestment of dividends. You cannot
invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell 2000 Growth Index and S&P 500 Index are calculated from the Class A
Share inception date, 11/30/87.
11
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Global Low-Priced Stock Fund
- --------------------------------------------------------------------------------
The Global Low-Priced Stock Fund successfully merged into the Robertson Stephens
Partners Fund, following the recent favorable shareholder vote. The shares
previously held in the Global Low-Priced Stock Fund have been exchanged for
shares in the Partners Fund.
We are excited about the opportunities this merger may create. Andy Pilara, an
experienced portfolio manager, manages the Partners Fund with more than 25 years
of investing experience. He also manages the Robertson Stephens Global Value
Fund and the Robertson Stephens Global Natural Resources Fund. He seeks
high-quality but undervalued companies that generate a strong level of free cash
flow or have a catalyst that may enable them to do so in the near future, and he
favors companies that are driven by an experienced, capable management team that
can deploy capital most effectively. Our goal is to deliver superior
risk-adjusted returns to our shareholders over the long term.
July, 1998
- --------------------------------------------------------------------------------
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.
12
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Energy 14.30%
Financial Services 12.90%
Food 11.10%
Insurance 10.10%
Manufacturing 8.10%
Transportation Equipment & Services 7.50%
Energy Services 7.30%
Consumer / Business Services 3.70%
Miscellaneous 3.50%
Real Estate 2.80%
Warrants 0.10%
Cash & Cash Equivalents 18.00%
Other & Other Assets Net 0.60%
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Place Resources Corporation...................... 8.15%
Fresh Del Monte Produce, Inc. ................... 7.01%
Midas, Inc. ..................................... 5.10%
Electro Rent Corporation......................... 5.07%
CorVel Corporation............................... 4.64%
Noma Industries Limited, Class A................. 4.40%
Northstar Drilling Systems, Inc., 144A........... 4.14%
Kamps AG......................................... 4.04%
Banca Popolare di Intra.......................... 3.96%
Imperial Credit Industries, Inc. ................ 3.85%
</TABLE>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
11/15/95)
[GRAPH]
<TABLE>
<CAPTION>
The Global Low-Priced Stock Fund MSCI World Index(4)
<S> <C> <C> <C> <C>
11/15/95 $ 10,000 $ 10,000
11/95 $ 10,160 $ 10,204
12/95 $ 10,450 $ 10,486
1/96 $ 10,780 $ 10,660
2/96 $ 11,400 $ 10,709
3/96 $ 12,210 $ 10,870
4/96 $ 13,630 $ 11,109
5/96 $ 14,390 $ 11,102
6/96 $ 13,670 $ 11,142
7/96 $ 12,110 $ 10,731
8/96 $ 12,870 $ 10,838
9/96 $ 12,990 $ 11,245
10/96 $ 12,980 $ 11,307
11/96 $ 13,710 $ 11,923
12/96 $ 13,521 $ 11,715
1/97 $ 14,081 $ 11,840
2/97 $ 13,921 $ 11,959
3/97 $ 13,221 $ 11,706
4/97 $ 12,551 $ 12,071
5/97 $ 13,601 $ 12,799
6/97 $ 13,271 $ 13,420
7/97 $ 13,741 $ 14,022
8/97 $ 13,811 $ 13,067
9/97 $ 15,091 $ 13,759
10/97 $ 14,411 $ 13,018
11/97 $ 12,433 $ 13,231
12/97 $ 11,690 $ 13,375
1/98 $ 11,251 $ 13,731
2/98 $ 11,062 $ 14,642
3/98 $ 11,073 $ 15,243
4/98 $ 11,334 $ 15,374
5/98 $ 11,261 $ 15,163
6/98 $ 10,382 $ 15,505
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
AVERAGE
TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION INCEPTION
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Global Low-Priced Stock Fund Class A(1) -11.19% -21.77% 3.82% 1.44%
Global Low-Priced Stock Fund Class C(2,3) -12.93% -24.05% -25.18% -22.95%
MSCI World Index(4) 15.92% 15.54% 55.05% 18.19%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 11/15/95.
(2) Inception date for Class C was 5/20/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Morgan Stanley Capital International (MSCI) World Index is a 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. You cannot invest in an index.
(5) The Total and Average Annual Return Since Inception percentages for the
MSCI World Index are calculated from the Class A Share inception date,
11/15/95.
13
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Global Natural Resources Fund
[PHOTO]
ANDREW P. PILARA, JR.
Fund Philosophy
The Global Natural Resources Fund seeks to achieve long-term capital
appreciation by investing in companies principally engaged in the discovery,
development, production, or distribution of natural resources, the development
of technologies for the production or efficient use of natural resources, or the
furnishing of related supplies or services.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE GLOBAL NATURAL RESOURCES FUND PERFORM OVER THE FIRST HALF OF
1998?
A. Asia's currency and economic turmoil has had a significant negative impact
on natural resource companies. Lower growth prospects for Asia in 1998 and
1999 have reduced the market's assumptions about global commodity demand.
With most commodities priced at the margin, small changes in supply/demand
relationships can have a material impact on prices in the near term. Our
concerns about Asia's economic problems caused us to eliminate most of the
Fund's base-metal investments over the first six months of 1998.
Q. WHAT AREAS OF THE PORTFOLIO PERFORMED WELL DURING THE FIRST HALF?
A. One of our strongest performers was Enerflex (3.33% of the portfolio as of
6/30/98). Of all the energy service companies, Enerflex is one of the most
leveraged to natural gas (our favorite commodity). The company, based in
Canada, is a global leader in designing, manufacturing, engineering and
installing compression systems for the production and processing of natural
gas.
Q. WHERE ARE YOU FINDING OPPORTUNITY IN THE MARKET TODAY?
A. As the Enerflex example suggested, we are continuing to favor energy
companies, particularly those based in Canada. The opportunities in this
sector are being created by the inventory buildup continuing from the
warmer than usual weather last winter in both Canada and the United States.
Gas storage levels will be close to capacity by early September, thereby
probably causing some downward pressure on prices leading into the November
heating season.
The bright spot in the Canadian natural gas picture comes in December with
the completion of the Northern Borders Pipeline to the United States...1.2
billion cubic feet per day of capacity. Add to that the expected swing in
consumption resulting from a normal winter of .6 billion cubic feet per
day, and the total expected increased demand for Canadian natural gas is
1.8 billion cubic feet per day. We expect production to be up about half
that amount. We therefore think that prices could increase significantly
this winter and that the depressed stock prices of Canadian energy
companies are setting up very well for big investor returns in the next 18
months. And with the Canadian dollar at a 142-year low against the U.S.
dollar, we are able to buy Canadian assets at bargain prices. In other
words, Canada is on sale!
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT 12 MONTHS?
A. I believe that this time next year we will be talking about the recovery in
Asia. The longer-term supply/demand trends for natural resources appear to
be very positive, which is why we think these are opportune times for
patient natural resource investors.
7/31/98
- --------------------------------------------------------------------------------
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.
14
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Energy 57.20%
Energy Services 10.20%
Paper & Forest 7.20%
Aluminum 6.80%
Gold Mining 5.20%
Food 3.50%
Financial Services 2.80%
Other Base Metals 1.90%
Convertible Bond 0.80%
Platinum Group Metals 0.70%
Warrants 0.10%
Cash & Cash Equivalents 0.00%
Other & Other Assets, Net 3.6%
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Rigel Energy Corporation......................... 8.16%
MAXXAM, Inc. .................................... 6.78%
Vastar Resources, Inc. .......................... 6.76%
Oiltec Resources, Ltd. .......................... 4.81%
Encal Energy, Ltd. .............................. 4.81%
Petro-Canada .................................... 4.69%
Petroleum Securities Australia, Ltd. ............ 4.52%
Alberta Energy Company, Ltd. .................... 3.66%
Fresh Del Monte Produce, Inc. ................... 3.52%
Computalog, Ltd. ................................ 3.51%
</TABLE>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
11/15/95)
[GRAPH]
<TABLE>
<CAPTION>
The Global Natural Resources Fund S&P 500 Index(4)
<S> <C> <C> <C> <C>
11/15/95 $ 10,000 $ 10,000
12/95 $ 10,120 $ 10,398
3/96 $ 11,860 $ 10,958
6/96 $ 12,330 $ 11,442
9/96 $ 13,140 $ 11,801
12/96 $ 14,290 $ 12,788
3/97 $ 13,340 $ 13,130
6/97 $ 13,720 $ 15,415
9/97 $ 14,770 $ 16,571
12/97 $ 11,840 $ 17,053
3/98 $ 12,459 $ 19,430
6/98 $ 11,110 $ 20,059
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
AVERAGE
TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(5) INCEPTION(5)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Global Natural Resources Fund Class A(1) -6.17% -19.03% 11.10% 4.09%
Global Natural Resources Fund Class C(2,3) -8.10% N/A -21.08% N/A
S&P 500 Index(4) 17.63% 30.13% 100.59% 30.37%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 11/15/95.
(2) Inception date for Class C was 7/30/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(5) The Total and Average Annual Return Since Inception percentages for the S&P
500 Index are calculated from the Class A Share inception date, 11/15/95.
15
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Global Value Fund
[PHOTO]
ANDREW P. PILARA, JR.
Fund Philosophy
The Global Value Fund seeks to achieve long-term capital growth by investing
primarily in equity securities of mid- and large-cap companies worldwide using a
value methodology combining Graham & Dodd balance sheet analysis with cash flow
analysis.
- --------------------------------------------------------------------------------
Q & A
Q. THE FIRST HALF OF 1998 WAS A TURBULENT PERIOD FOR QUITE A FEW WORLD STOCK
MARKETS. HOW DID THE VOLATILITY AFFECT THE GLOBAL VALUE FUND'S PERFORMANCE?
A. The Fund largely avoided the turmoil in the Asian markets because most of
its international investments have been focused on Europe (38% of the
portfolio as of 6/30/98). We believe Europe is in the early stages of its
corporate profit cycle, where the United States was four to five years ago.
We also think that the "investor discount rate" will be coming down in
Europe as interest rates and inflation decline there. The combination of
accelerating corporate profits and declining discount rates is a very
powerful stock market force--witness the U.S. stock market's rally over the
past five years.
Q. WHAT'S YOUR PERSPECTIVE ON THE CURRENT STATE OF THE U.S. MARKET?
A. Over the past 60 years, the U.S. stock market as represented by the S&P
500, has produced total shareholder returns (dividends and capital gains)
of approximately 10% per year. Almost half of that return came from
dividends. Today the yield on the S&P 500 approximates 1.4%. Therefore,
investors looking to achieve historic, average returns (10%) from U.S.
equity investments must get an 8.6% capital gains return. This means
obtaining a capital gains return 70% greater than the average capital gains
return over the past 60 years--and in a "mature" bull market.
We acknowledge the difficulty of producing above-average returns in a low-
yield stock market by allocating a certain percentage of the Fund to "long-
duration equity income" vehicles. These are companies we can buy with high
initial yields that have cash flow capabilities, which imply increasing
dividend payments. Our current choices are electric utilities (18%) and
pipelines (8%). We believe that the electric utility restructuring will
lead to increasing returns on capital (from the non-regulated parts of the
business) and stable to increasing dividends.
Q. HOW DOES YOUR INVESTMENT APPROACH ADDRESS THE MARKET'S CURRENT VOLATILITY?
A. These are wild and risky times in certain sectors of the stock market where
stocks can go up 50% to 100% in one day. The Global Value Fund (and its
portfolio manager) are not constructed for those wild rides.
Our "tortoise" approach may bore some investors, but it's worth remembering
that the laws of compounding your money work best when you do not
experience a large capital loss.
7/31/98
- --------------------------------------------------------------------------------
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. Short selling is the sale of a borrowed security,
and the price of the security can increase between the date the security is sold
and the date when the fund must replace it. Options and futures may not be
perfectly correlated to the underlying index or security. High-yielding,
lower-quality debt securities may be considered to be of lower standing and more
speculative.
16
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Utilities 26.50%
Financial Services 15.20%
Telecommunications 12.90%
Energy 9.40%
Machinery 8.00%
Cash & Cash Equivalents 22.80%
Other & Other Liabilities, Net 5.20%
Total 100.0%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Kinder Morgan Energy Partners, L.P. ............... 8.17%
Unicom Corporation................................. 6.34%
Golden West Financial Corporation.................. 6.01%
Henkel KGaA Preferred.............................. 5.70%
Telefonica S.A. ................................... 5.42%
Consolidated Edison, Inc. ......................... 5.21%
Northern States Power Company...................... 3.88%
Banca Carige S.p.A. ............................... 3.79%
STET Hellas Telecommunications S.A., ADR........... 3.75%
Telecom Italia S.p.A., ADR......................... 3.74%
</TABLE>
<TABLE>
<CAPTION>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
4/1/97)
[GRAPH]
The Global Value Fund MSCI World Value Index(4)
<S> <C> <C> <C> <C>
4/1/97 $ 10,000 $ 10,000
4/97 $ 10,120 $ 10,272
5/97 $ 10,260 $ 10,923
6/97 $ 10,690 $ 11,391
7/97 $ 11,310 $ 11,895
8/97 $ 10,960 $ 11,173
9/97 $ 11,580 $ 11,724
10/97 $ 11,280 $ 11,224
11/97 $ 11,631 $ 11,318
12/97 $ 11,997 $ 11,472
1/98 $ 12,029 $ 11,695
2/98 $ 12,449 $ 12,376
3/98 $ 13,493 $ 12,977
4/98 $ 13,525 $ 13,136
5/98 $ 13,525 $ 12,934
6/98 $ 13,148 $ 12,973
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
TOTAL RETURN AVERAGE ANNUAL
YEAR TO DATE ONE YEAR SINCE RETURN SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Global Value Fund Class A(1) 9.60% 23.00% 31.48% 24.55%
Global Value Fund Class C(2,3) 7.50% 19.59% 19.59% 19.59%
MSCI World Value Index(4) 13.08% 13.89% 29.73% 23.22%
S&P 500 Index(5) 17.63% 30.13% 52.25% 40.11%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 4/1/97.
(2) Inception date for Class C was 6/30/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Morgan Stanley Capital International (MSCI) World Value Index is a
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. You cannot invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
MSCI World Value Index and S&P 500 Index are calculated from the Class A
Share inception date, 4/1/97.
17
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Growth & Income Fund
[PHOTO]
JOHN L. WALLACE
Fund Philosophy
The Growth & Income Fund seeks to achieve long-term total return by investing
primarily in small- and mid-cap stocks, convertible bonds, and preferreds. Our
flexible, bottom-up approach is based on value recognition and trend analysis.
We look for well-managed companies with improving fundamentals that may be
positioned for growth. Our formula for long-term success also includes a
disciplined approach to managing risk: losses are eliminated quickly, and we are
constantly looking for new opportunities.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE GROWTH & INCOME FUND PERFORM DURING THE FIRST HALF OF 1998?
A. The first half of 1998 was a generally positive period for the Growth &
Income Fund, with the exception of May and June. Bolstered by positive
economic conditions--especially low inflation, stable interest rates and
strong consumer spending--the stock market rallied for much of the first
quarter and into the second. At the beginning of the year, investors seemed
less pessimistic than they were in late 1997 about Asia's economic problems
and their potential impact on U.S. corporate earnings. In fact, many
companies reported solid results for the fourth quarter of 1997 and the
first quarter of 1998, contrary to some dire predictions last year.
Q. WHAT STOCKS OR SECTORS CONTRIBUTED THE MOST TO THE FUND'S FIRST-HALF
PERFORMANCE?
A. Among the Fund's strongest performers during the first half were our cable
television stocks, which benefited from increased merger-and-acquisition
activity and other trends. In June, AT&T announced that it planned to
acquire Tele-Communications, Inc., one of the industry's bellwethers. The
proposed deal fueled TCI's shares and many other cable stocks. Our retail
holdings also profited from robust consumer spending during the first half.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Recently, we've seen increased volatility in the stock market. Investors
have become more uncertain about the direction of the U.S. economy and
corporate earnings. Asia's financial crisis has also come back to the fore,
as Japan has officially gone into recession. Both trends have driven
investors away from smaller-cap stocks and into blue chips for their
perceived stability, even though most small-cap companies have less direct
exposure to Asia's problems. For us, that means opportunity. By our
estimations, many small- to mid-cap shares offer more attractive growth
prospects and valuations than large-caps. As a result, we've been viewing
their weakness as a buying opportunity.
Q. WHAT'S YOUR STRATEGY AND OUTLOOK FOR THE SECOND HALF OF 1998?
A. Although we expect to continue focusing on small- and mid-cap stocks, over
the past few months we have been adding some larger companies to the
portfolio. The market could become more volatile in the months ahead, and
we think investors may continue to turn toward corporations such as General
Electric (0.86% of the portfolio as of 6/30/98), Ford Motor (1.39%) and
Monsanto (0.74%) for stability. We believe that this tactic is a prudent
step in the current environment. Our goal is to provide our shareholders
with long-term total return while managing risk appropriately.
7/31/98
- --------------------------------------------------------------------------------
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. Short
selling is the sale of a borrowed security, and the price of the security can
increase between the date the security is sold and the date when the fund must
replace it. Options and futures may not be perfectly correlated to the
underlying index or security. High-yielding, lower-quality debt securities may
be considered to be of lower standing and more speculative.
18
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
[CHART]
<S> <C>
Convertible Bonds/Preferred Stocks 13.50%
Media 9.50%
Computer Software & Services 9.30%
Telecom / Communications Equipment & Services 7.30%
Financial Services / Banks / REIT's 7.10%
Healthcare/Medical 6.00%
Energy / Energy Services 4.90%
Consumer/Specialty Retail 4.30%
Insurance / Investment Management 4.10%
Food Retail / Wholesale 4.00%
Transportation/Shipping 3.60%
Manufacturing 3.40%
Specialty Chemicals 3.10%
Clothing / Retail 3.00%
Data Processing Services 2.60%
Hospitals 2.30%
Utilities / Electric 2.30%
Aerospace 1.50%
Automobiles & Other Motor Vehicles 1.40%
Home Building 1.30%
Textiles 1.30%
Environmental Services 1.20%
Network Systems / Semiconductors 1.20%
Business Services 0.80%
Short Positions 0.60%
Cash & Cash Equivalents 0.00%
Other & Other Liabilities, Net 0.40%
Total 100.0%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Trans World Airlines, Inc. ..................... 3.29%
MediaOne Group, Inc. ........................... 2.08%
FileNet Corporation............................. 1.80%
Sabratek Corporation............................ 1.70%
American General Corporation.................... 1.61%
Simpson Manufacturing Company, Inc. ............ 1.60%
Tele-Communications, Inc. ...................... 1.60%
Compuware Corporation........................... 1.55%
Alliant Techsystems, Inc. ...................... 1.49%
Sunrise Assisted Living, Inc. .................. 1.47%
</TABLE>
<TABLE>
<CAPTION>
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
7/12/95)
[GRAPH]
The Growth & Income Fund Russell Midcap Growth Index(4)
<S> <C> <C> <C> <C>
7/12/95 $ 10,000 $ 10,000
9/95 $ 10,760 $ 10,519
12/95 $ 11,240 $ 10,718
3/96 $ 12,200 $ 11,409
6/96 $ 13,330 $ 11,835
9/96 $ 13,340 $ 12,237
12/96 $ 13,956 $ 12,591
3/97 $ 13,526 $ 12,132
6/97 $ 15,216 $ 13,917
9/97 $ 17,850 $ 15,865
12/97 $ 17,082 $ 15,429
3/98 $ 19,103 $ 17,270
6/98 $ 18,396 $ 17,260
</TABLE>
<TABLE>
<CAPTION>
PERFORMANCE UPDATE (AS OF 6/30/98)
AVERAGE
TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth & Income Fund Class A(1) 7.69% 20.89% 83.96% 22.78%
Growth & Income Fund Class C(2,3) 5.96% 17.99% 27.53% 23.72%
Russell Midcap Growth Index(4) 11.87% 24.02% 72.60% 20.17%
S&P 500 Index(5) 17.63% 30.13% 114.45% 29.29%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 7/12/95.
(2) Inception date for Class C was 5/9/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell Midcap Growth Index measures the performance of the 800
smallest companies with higher price-to-book ratios and higher forecasted
growth values in the Russell 1000 Index. These 800 companies represent
approximately 35% of the market capitalization of the Russell 1000 Index.
As of the latest reconstitution, the average market capitalization was
approximately $2.9 billion. You cannot invest in an index itself.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell Midcap Growth Index and S&P 500 Index are calculated from the Class
A Share inception date, 7/12/95.
19
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
The Information Age Fund-TM-
[PHOTO]
RONALD E. ELIJAH
Fund Philosophy
The Information Age Fund-TM- seeks to achieve long-term capital appreciation by
aggressively investing in companies primarily within the information technology
sector. The Fund is designed for investors who believe that aggressive
investment in these companies provides significant opportunities for capital
appreciation.
[PHOTO]
RODERICK R. BERRY
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE INFORMATION AGE FUND PERFORM DURING THE FIRST HALF OF 1998?
A. The Fund had a very positive first half. It outperformed its benchmark, the
PSE Technology Index, as well as the S&P 500 Index.
Q. THE TECHNOLOGY SECTOR HAS RECENTLY COME UNDER SOME PRESSURE. WHAT'S YOUR
PERSPECTIVE ON THE VOLATILITY?
A. The NASDAQ market, which is driven largely by the technology sector, peaked
on April 22 and remained under pressure through much of May and June. We do
not think this sell-off is cause for a great deal of concern. Since 1987
there have been 14 such periods. Despite that, the NASDAQ Composite Index
still managed to gain 375.19% from January 1, 1988, through December 31,
1997! Although past performance is naturally no guarantee of future
results, we believe that these statistics build a strong case for viewing
the recent volatility positively, as a potential buying opportunity. In
fact, NASDAQ corrections of greater than 8% have typically been followed by
a six-month rally in the technology sector.
One of the main factors pressuring technology shares has been Asia's
financial crisis. As the region's economies have contracted, demand for
personal computers and semiconductors there has slowed. As a result, many
technology companies had to grapple with inventory buildups during the
first half. We expect this to be a relatively short-lived problem. In our
opinion, the same can be said of the recent legal challenges brought
against Microsoft (2.64% of the Fund as of 6/30/98) and Intel (1.80%); we
simply don't believe that they pose a significant threat to their long-term
dominance. In the meantime, the technology sell-off has given us a chance
to buy into promising companies at what we believe are very attractive
prices.
Q. WHAT'S YOUR OUTLOOK FOR THE SECOND HALF OF 1998?
A. Although our outlook for the technology sector is generally positive, we do
believe that the market may become more volatile in the coming months. As a
result, we recently increased the Fund's portfolio holdings to roughly 63
from 41 at the end of the first quarter. This diversification should help
stabilize the Fund if the market becomes more turbulent.
For similar reasons, we made some changes to the Fund's sector weightings
over the second quarter. Semiconductor manufacturers have dropped to 13% of
the portfolio from 18.5% at the end of March, due to price depreciation and
some trimming on our part. In addition, the Fund's weighting in
semiconductor equipment makers has dropped to 6.4% from 9.8% at the end of
the first quarter. We redirected some of this cash to new areas such as
Internet commerce (now 7.5% of the portfolio), where we see a lot of
potential in companies such as Amazon.com, a rapidly growing online
retailer of books. We've also increased the Fund's exposure to tech-related
staffing and system integration companies and communications equipment
makers. Although we made these changes to help the Fund ride out potential
short-term volatility, we feel that long-term trends remain very positive
for the technology sector.
7/31/98
- --------------------------------------------------------------------------------
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. Short
selling is the sale of a borrowed security and the price of the security can
increase between the date the security is sold and the date when the fund must
replace it. Options and futures may not be perfectly correlated to the
underlying index or security. Investing in a particular sector can involve
greater market fluctuation.
20
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
<S> <C>
Computer Software & Services 34.5%
Semiconductors & Components 13.0%
Communications Equipment & Services 9.9%
Internet Commerce 7.5%
Computer Hardware & Manufacturing 7.2%
Semiconductor Equipment 6.4%
Business / Commercial Services 6.0%
Distribution 4.2%
Data Processing Svc / System Integration 3.5%
Medical Services 1.4%
Cash & Cash Equivalents 4.0%
Other & Other Assets Net 2.4%
Total 100.0%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Legato Systems, Inc. . . . . . . . . . . . . . . .4.30%
America Online, Inc. . . . . . . . . . . . . . . .4.30%
Network Associates, Inc. . . . . . . . . . . . . .3.68%
SAP AG, ADR. . . . . . . . . . . . . . . . . . . .3.67%
Vitesse Semiconductor Corporation. . . . . . . . .3.19%
WorldCom, Inc. . . . . . . . . . . . . . . . . . .3.06%
Ericsson (L.M.) ADR. . . . . . . . . . . . . . . .2.87%
Gateway 2000, Inc. . . . . . . . . . . . . . . . .2.67%
Microsoft Corporation. . . . . . . . . . . . . . .2.64%
Applied Materials, Inc.. . . . . . . . . . . . . .2.63%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
11/15/95)
<TABLE>
<CAPTION>
The Information PSE
Date Age Fund-TM- Technology Index(4)
<S> <C> <C>
11/15/95 $ 10,000 $ 10,000
12/95 $ 9,300 $ 9,819
3/96 $ 9,340 $ 9,790
6/96 $ 10,710 $ 10,123
9/96 $ 11,790 $ 10,803
12/96 $ 11,785 $ 11,786
3/97 $ 10,351 $ 11,775
6/97 $ 12,276 $ 13,735
9/97 $ 15,982 $ 16,360
12/97 $ 12,509 $ 14,140
3/98 $ 14,269 $ 16,837
6/98 $ 14,958 $ 16,834
</TABLE>
PERFORMANCE UPDATE (AS OF 6/30/98)
<TABLE>
<CAPTION>
AVERAGE
TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Information Age Fund Class A(1) 19.58% 21.85% 49.58% 16.58%
Information Age Fund Class C(2),(3) 16.65% N/A 5.44% N/A
PSE Technology Index(4) 19.06% 22.56% 68.34% 21.95%
S&P 500 Index(5) 17.63% 30.13% 100.59% 30.37%
- --------------------------------------------------------------------------------------------
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 11/15/95.
(2) Inception date for Class C was 7/11/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Pacific Stock Exchange (PSE) Technology Index is an unmanaged,
price-weighted index of the top 100 U.S. technology stocks. You cannot
invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500 Index) is an
unmanaged index 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. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the PSE
Technology Index and S&P 500 Index are calculated from the Class A Share
inception date, 11/15/95.
21
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
MicroCap Growth Fund
[PHOTO]
DAVID J. EVANS
Fund Philosophy
The Robertson Stephens MicroCap Growth Fund invests in a diversified portfolio
of equity securities of companies with market capitalizations of $250 million or
less. We seek micro-cap companies that we believe have the potential for
long-term capital appreciation based on superior or niche products or services,
operating characteristics, management, or other factors.
[PHOTO]
RAINERIO REYES
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE MICROCAP GROWTH FUND PERFORM OVER THE FIRST HALF OF 1998?
A. The Fund performed well, despite a difficult environment for small-cap
stocks. In fact, it outperformed the Russell 2000 Growth Index, which is
dominated by stocks that have a much larger market capitalization than
those in our portfolio.
Q. AFTER A STRONG FIRST QUARTER, THE STOCK MARKET LOST MOMENTUM IN MAY AND
JUNE. WHAT SPARKED THE VOLATILITY, AND HOW HAVE YOU BEEN REACTING TO IT?
A. Asia's economic problems have continued to make investors uncertain about
the economy's direction. As a result, they have been favoring blue chips
for their perceived stability. But as we've said several times over the
past few months, most small companies are actually less vulnerable to
Asia's problems than multinationals. U.S. small companies, especially the
micro-caps in which we invest, generally do little or no business with
Asia. The silver lining is that small-cap stock valuations are now even
more attractive than those of large-caps. By our estimations, small
companies also offer significantly greater growth potential. So we've been
viewing the downturn as a buying opportunity.
Q. WHAT HOLDINGS DROVE THE FUND'S PERFORMANCE DURING THE FIRST HALF?
A. Several individual holdings contributed strong gains. In fact, we took
profits on a number of holdings, including Star Telecom and Net.B@nk,
Inc., the "bank without walls" that is using the Internet to bring low-cost
loans and high yields on savings accounts to people throughout the United
States.
Q. IN WHAT AREAS OF THE MARKET ARE YOU SEEING ATTRACTIVE OPPORTUNITIES RIGHT
NOW?
A. We continue to see a great deal of potential in outsourcing firms, such as
Novacare Employee Services (1.99% of the Fund as of 6/30/98). This company
provides outsourcing services such as payroll and benefits management for
small- to medium-size businesses in the United States. More and more
companies are turning to outsourcing firms such as Novacare so that they
can focus on their main line of business.
We also believe that there is opportunity in companies that are
consolidating fragmented industries. One of our holdings, Dispatch
Management (1.31% of the portfolio), is consolidating local
delivery/messenger services in cities across the United States, the United
Kingdom and New Zealand. This consolidation is allowing Dispatch Management
to create economies of scale and win market share.
Q. WHAT'S YOUR OUTLOOK AND STRATEGY FOR THE SECOND HALF OF 1998?
A. As always, we will continue to focus on promising companies with market
capitalizations of $250 million or less. This arena is still the most
inefficient segment of the U.S. market, giving us the opportunity to
identify dynamic, undervalued companies before other investors recognize
their potential. We believe that the outlook for micro-cap stocks in the
coming months will be very positive and we will continue to strive for
exceptional long-term results.
7/31/98
- --------------------------------------------------------------------------------
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. Short
selling is the sale of a borrowed security, and the price of the security can
increase between the date the security is sold and the date when the fund must
replace it. Options and futures may not be perfectly correlated to the
underlying index or security.
22
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
ASSET ALLOCATION (AS OF 6/30/98)
<TABLE>
<CAPTION>
<S> <C>
Consumer/Retail 20.80%
Computer Software & Hardware 14.40%
Commercial Services 11.40%
Healthcare Services 6.10%
Restaurants / Lodging 5.00%
Medical Instruments and Supplies 4.30%
Semiconductors 4.10%
Pharmaceuticals / Biotechnology 4.00%
Manufacturing 4.00%
Data Processing Services 1.70%
Telecommunications 5.10%
Consulting Services 2.70%
Broadcast / Radio / Television 2.40%
Miscellaneous 2.30%
Financial Services & Insurance 1.80%
Transportation 1.60%
Education and Training 1.30%
Network Systems 1.10%
Cash & Cash Equivalents 5.20%
Other & Other Liabilities, Net 0.70%
Total 100.0%
</TABLE>
TOP TEN HOLDINGS (AS OF 6/30/98)
<TABLE>
<S> <C>
Medialink Worldwide, Inc.. . . . . . . . . . . . .2.45%
Cornell Corrections, Inc.. . . . . . . . . . . . .2.37%
MedQuist, Inc. . . . . . . . . . . . . . . . . . .2.32%
Transaction Network Services, Inc. . . . . . . . .2.20%
Superior Consultant Holdings Corporation . . . . .2.08%
Novacare Employee Services Corporation . . . . . .1.99%
Execustay Corporation. . . . . . . . . . . . . . .1.89%
U.S. Home & Garden, Inc. . . . . . . . . . . . . .1.79%
INSpire Insurance Solutions, Inc.. . . . . . . . .1.74%
Faroudja, Inc. . . . . . . . . . . . . . . . . . .1.71%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
8/15/96)
<TABLE>
<CAPTION>
Date The Microcap Growth Fund Russell 2000 Growth Index(4)
<S> <C> <C>
8/15/96 $ 10,000 $ 10,000
9/96 $ 10,570 $ 10,794
12/96 $ 11,000 $ 10,822
3/97 $ 10,200 $ 9,687
6/97 $ 12,570 $ 11,388
9/97 $ 15,990 $ 13,315
12/97 $ 14,350 $ 12,223
3/98 $ 16,570 $ 13,676
6/98 $ 15,420 $ 12,890
</TABLE>
PERFORMANCE UPDATE (AS OF 6/30/98)
<TABLE>
<CAPTION>
AVERAGE
TOTAL RETURN RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MicroCap Growth Fund Class A(1) 7.46% 22.58% 54.20% 26.00%
MicroCap Growth Fund Class C(2),(3) 5.61% 19.68% 23.55% 22.72%
Russell 2000 Growth Index(4) 5.46% 13.19% 28.90% 14.51%
S&P 500 INDEX(5) 17.63% 30.13% 76.90% 35.58%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 8/15/96.
(2) Inception date for Class C was 6/18/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell 2000 Growth Index is an unmanaged market
capitalization-weighted index containing those securities in the Russell
2000 Index with a greater-than-average growth orientation. It has an
average market capitalization of $650 million. Investment results assume
reinvestment of dividends. You cannot invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell 2000 Growth Index and S&P 500 Index are calculated from the Class A
Share inception date, 8/15/96.
23
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Partners Fund
[PHOTO]
ANDREW P. PILARA, JR.
Fund Philosophy
The Partners Fund seeks long-term capital growth by investing in equity
securities primarily of companies with market capitalization of up to $1
billion, using a cash flow value methodology combining Graham & Dodd balance
sheet analysis with cash flow analysis.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE PARTNERS FUND PERFORM DURING THE FIRST HALF OF 1998? HOW DOES
THIS FIT WITH THE FUND'S LONGER-TERM TREND?
A. Although the Fund's short-term performance has been below our 15%
annualized objective, it has exceeded that goal since inception. As in any
relationship, it is important that we (shareholders) have similar
expectations. Our Fund is not, and will not be, structured to be number one
in the yearly mutual fund performance race. The risks are too high.
Q. IN WHAT AREAS OF THE MARKET ARE YOU FINDING ATTRACTIVE OPPORTUNITIES?
A. It is becoming increasingly difficult to find companies that generate
returns above their cost of capital where this is not already recognized in
the company's stock price. There are a few sectors of the market where we
still see opportunities, however. One area continues to be energy and in
particular natural gas companies. One of our energy investments, Canadian
Conquest (1.94% of the Fund as of 6/30/98), is beginning to build a
presence in the Canadian oil and gas industry. Capital expenditures in 1998
are expected to be more than half of the company's current market
capitalization. The Chairman of the Board has a solid record in acquiring
Canadian energy companies. A new CEO (whom we know from an earlier
portfolio investment) and new operating and exploration managers bring
together one of the best small-cap management teams. We believe we are
getting this team at a value price... below net asset value.
Q. WHAT OTHER CHARACTERISTICS MAKE A COMPANY ESPECIALLY ATTRACTIVE TO YOU?
A. We are constantly looking for good business opportunities, with management
teams that rationally deploy capital, that we can buy at a reasonable
price. A company that meets our criteria is Fresh Del Monte (5.05%). In
December 1996, new management took over the company. They have had success
running a private agricultural concern. In the past 18 months, the new team
has produced a significant turnaround in the company's financial and
strategic performance. When a CEO says that he sees every check written, we
take comfort that financial controls are in place. The company is number
one in pineapple sales and number three in banana sales. It is our
expectation that this management will build a large, diversified food
company... and they have the cash flow to support their growth initiatives.
Q. WHAT'S YOUR OUTLOOK FOR THE MONTHS AHEAD? WILL YOU BE CHANGING YOUR
STRATEGY IN ANY WAY?
A. We don't have any intention of altering our strategy. We will continue to
use our cash flow models and company visits to search for small-cap
opportunities. Taking the advice of Peter Lynch, we will try to turn over
as many rocks as possible.
7/31/98
- --------------------------------------------------------------------------------
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.
24
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
<S> <C>
Energy 16.00%
Financial Services / Closed-End Funds 11.20%
Food 9.00%
Energy Services 8.30%
Manufacturing 7.80%
Insurance 6.40%
Transportation Equipment & Services 6.30%
Construction/Infrastructure 6.20%
Real Estate 6.10%
Aluminum 5.40%
Utilities 4.10%
Retail 2.80%
Consumer/ Business Services 2.50%
Distribution 2.00%
Paper & Forest 1.70%
Holding Companies 1.00%
Miscellaneous 0.90%
Preferred Stock 0.70%
Cash & Cash Equivalents 0.00%
Other & Other Assets, Net 1.60%
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
MAXXAM, Inc. . . . . . . . . . . . . . . . . . . .5.41%
Fresh Del Monte Produce, Inc.. . . . . . . . . . .5.05%
Midas, Inc.. . . . . . . . . . . . . . . . . . . .4.10%
Aquila Gas Pipeline Corporation. . . . . . . . . .4.08%
Imperial Credit Commercial Mortgage
Investment Corp.. . . . . . . . . . . . . . . . .4.08%
Kamps AG . . . . . . . . . . . . . . . . . . . . .3.95%
Canadian Hotel Income Properties REIT. . . . . . .3.90%
Banca Popolare di Intra. . . . . . . . . . . . . .3.18%
Petsec Energy, Ltd., ADR . . . . . . . . . . . . .2.98%
The T. Eaton Company Limited . . . . . . . . . . .2.80%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
7/12/95)
<TABLE>
<CAPTION>
Date The Partners Fund Russell 2000 Value Index (4)
<S> <C> <C>
7/12/95 $ 10,000 $ 10,000
9/95 $ 10,190 $ 10,532
12/95 $ 10,390 $ 10,839
3/96 $ 12,300 $ 11,314
6/96 $ 13,640 $ 11,777
9/96 $ 14,070 $ 11,952
12/96 $ 14,873 $ 13,155
3/97 $ 14,975 $ 13,122
6/97 $ 16,177 $ 15,103
9/97 $ 18,173 $ 17,049
12/97 $ 17,561 $ 17,336
3/98 $ 18,999 $ 18,784
6/98 $ 17,146 $ 18,105
</TABLE>
PERFORMANCE UPDATE (AS OF 6/30/98)
<TABLE>
<CAPTION>
AVERAGE
TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR SINCE SINCE
TOTAL RETURN TOTAL RETURN INCEPTION(6) INCEPTION(6)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Partners Fund Class A(1) -2.37% 5.99% 71.46% 19.91%
Partners Fund Class C(2)(3) -4.14% 3.39% 13.26% 10.83%
Russell 2000 Value Index(4) 4.44% 19.88% 81.05% 22.13%
S&P 500 Index(5) 17.63% 30.13% 114.45% 29.29%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 7/12/95.
(2) Inception date for Class C was 4/14/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell 2000 Value Index is an unmanaged market capitalization-weighted
index composed of those securities in the Russell 2000 Index 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 comprising the index. You
cannot invest in an index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500) is a widely
recognized, unmanaged index of market activity based on the aggregate
performance of a selected portfolio of publicly traded stocks. It is widely
recognized as representative of the stock market in general. Investment
results assume the reinvestment of dividends paid on the stocks comprising
the index. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell 2000 Value Index and S&P 500 Index are calculated from the Class A
Share inception date, 7/12/95.
25
<PAGE>
SEMIANNUAL REPORT
[GRAPHIC]
Value + Growth Fund
[PHOTO]
RONALD E. ELIJAH
Fund Philosophy
The Robertson Stephens Value + Growth Fund seeks capital appreciation by
investing primarily in companies with favorable relationships between
price/earnings ratios and growth rates, in sectors offering above-average growth
potential. We seek to identify specific business sectors poised to benefit from
major changes in the marketplace and societal trends. Within these sectors, we
conduct bottom-up research, looking for well-managed companies that have
low-multiple valuations relative to their peers and are poised to leverage
growth opportunities.
- --------------------------------------------------------------------------------
Q & A
Q. HOW DID THE VALUE + GROWTH FUND PERFORM OVER THE FIRST HALF OF 1998?
A. The first half was very positive for the Fund, which out-performed the S&P
500. Many of the same market trends we saw in late 1997 carried over into
the first six months of 1998. After a brief respite, Asia's economic woes
became front-page news again, driving investors toward the perceived
stability of blue chip companies. As a result, large-cap stocks generally
outperformed small-cap shares. That trend continued to benefit our
portfolio nicely.
Q. AFTER A STRONG FIRST QUARTER, MANY TECHNOLOGY STOCKS LOST GROUND IN MAY AND
EARLY JUNE. WHAT FACTORS HAVE CREATED THE VOLATILITY, AND HOW HAVE YOU BEEN
REACTING TO IT?
A. Investors have largely been concerned about slowing demand for personal
computers and semiconductors in Asia. Several technology companies were
challenged by inventory reductions at many of their customers over the
first six months of 1998. We believe that most of this burdensome inventory
was depleted by the end of the June, however. Inventory cycles are typical
of the technology industry. We believe that with several new products
coming to market in the last half of 1998, the technology sector is ready
to surge--just as it did in the last half of 1996.
We don't believe that the recent volatility is cause for alarm. In fact,
since the crash of 1987 there have been at least 14 periods in which the
NASDAQ Composite Index (a growth stock index) has declined 8% or more from
its high. We believe we have just concluded our fifteenth NASDAQ
correction, which started in April and ended in June. Despite these
downturns, the NASDAQ has still managed to post tremendous gains in the
1990s.
Q. YOU'VE SAID IN THE PAST THAT YOU ARE A THEMATIC INVESTOR. WHAT TRENDS DO
YOU THINK ARE CREATING THE GREATEST OPPORTUNITIES FOR INVESTORS?
A. We believe that by far the most important social trend is the aging of the
Baby Boomers. This trend should increase demand for many goods and services
well into the 21st century. Americans in the 45-to-54 age range, now the
fastest-growing segment of the U.S. population, are in their peak income
and discretionary spending period, which should bode well for the retail
sector for the next several years. We also think that aging boomers will
place increasing emphasis on high-quality entertainment from companies such
as Time Warner (2.08% of the Fund as of 6/30/98) and Comcast (1.10%).
Financial services companies such as Merrill Lynch (3.98%) should also
benefit as baby boomers save for retirement and college education for their
children. Finally, the healthcare industry stands to be the most direct
beneficiary of an aging U.S. population. Stocks in all four of these
areas--healthcare, retailing, entertainment and financial
services--collectively make up the bulk of our portfolio's assets.
Q. WHAT ARE YOUR EXPECTATIONS FOR THE SECOND HALF OF 1998?
A. We have a very positive outlook for the stock market in the months ahead.
Assuming that the current trends of low inflation and interest rates remain
in place, the macroeconomic environment should remain favorable for
equities. We will continue to seek reasonably valued growth companies that
we think are in the best position to profit from the investment trends we
see, particularly the aging of the Baby Boomers. We remain committed to our
goal of delivering superior long-term returns to shareholders.
7/31/98
- --------------------------------------------------------------------------------
Investing in smaller companies may involve risks such as less publicly available
information than larger companies, volatility, and illiquidity. Short selling is
the sale of a borrowed security and may involve the risk that the price of the
security may increase between the date it is sold and the date the fund must
replace the borrowed security. Options and futures involve the risk that their
value may not be perfectly correlated to that of the underlying index or
security.
26
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
[CHART]
<TABLE>
<CAPTION>
ASSET ALLOCATION (AS OF 6/30/98)
<S> <C>
Consumer & Specialty Retail 22.70%
Pharmaceuticals 12.40%
Financial Services 11.70%
Semiconductors 9.40%
Health Maintenance Organizations 8.60%
Investment Management 8.00%
Media 5.50%
Computer Software 5.40%
Computer Hardware & Components 4.60%
Manufacturing 3.30%
Hospitals 3.10%
Commercial Services 2.90%
Communications Equipment 2.30%
Cash & Cash Equivalents 0.00%
Other & Other Liabilities, Net 0.1%
Total 100.00%
</TABLE>
<TABLE>
<CAPTION>
TOP TEN HOLDINGS (AS OF 6/30/98)
<S> <C>
Merrill Lynch & Co, Inc. . . . . . . . . . . . . .3.98%
Intel Corporation. . . . . . . . . . . . . . . . .3.83%
HBO & Company. . . . . . . . . . . . . . . . . . .3.77%
Microsoft Corporation. . . . . . . . . . . . . . .3.66%
Merck & Company, Inc.. . . . . . . . . . . . . . .3.55%
General Electric Company . . . . . . . . . . . . .3.32%
McKesson Corporation . . . . . . . . . . . . . . .3.29%
Texas Instruments, Inc.. . . . . . . . . . . . . .3.15%
The Gap, Inc.. . . . . . . . . . . . . . . . . . .3.12%
H.F. Ahmanson & Company. . . . . . . . . . . . . .3.08%
</TABLE>
[CHART]
RESULTS OF A HYPOTHETICAL $10,000 INVESTMENT -- CLASS A SHARES (IF INVESTED ON
5/12/92)
<TABLE>
<CAPTION>
Date The Value+ Growth Fund Russell 1000 Growth Index (4)
<S> <C> <C>
5/12/92 $ 10,000 $ 10,000
6/92 $ 9,801 $ 9,766
9/92 $ 10,099 $ 10,193
12/92 $ 11,004 $ 10,903
3/93 $ 11,933 $ 10,810
6/93 $ 11,943 $ 10,643
9/93 $ 12,843 $ 10,801
12/93 $ 13,378 $ 11,217
3/94 $ 13,890 $ 10,722
6/94 $ 13,276 $ 10,611
9/94 $ 15,560 $ 11,428
12/94 $ 16,469 $ 11,511
3/95 $ 18,927 $ 12,607
6/95 $ 23,086 $ 13,845
9/95 $ 27,536 $ 15,102
12/95 $ 23,501 $ 15,790
3/96 $ 22,651 $ 16,638
6/96 $ 23,429 $ 17,696
9/96 $ 24,964 $ 18,334
12/96 $ 26,819 $ 19,441
3/97 $ 26,198 $ 19,545
6/97 $ 30,483 $ 23,242
9/97 $ 35,511 $ 24,989
12/97 $ 30,523 $ 25,368
3/98 $ 34,486 $ 29,212
6/98 $ 36,066 $ 30,538
</TABLE>
PERFORMANCE UPDATE (AS OF 6/30/98)
<TABLE>
<CAPTION>
FIVE-YEAR AVERAGE
AVERAGE TOTAL RETURN ANNUAL RETURN
YEAR TO DATE ONE-YEAR ANNUAL SINCE SINCE
TOTAL RETURN TOTAL RETURN RETURN INCEPTION(6) INCEPTION(6)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Value + Growth Class A(1) 18.16% 18.32% 24.74% 260.66% 23.25%
Value + Growth Class C(2)(3) 16.36% 15.68% N/A 14.58% 13.30%
Russell 1000 Growth Index(4) 20.38% 31.39% 23.47% 205.38% 19.95%
S&P 500 Index(5) 17.63% 30.13% 23.05% 215.61% 20.60%
</TABLE>
Performance data quoted represents past performance, and past performance is no
guarantee of future results. You should realize that investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Numbers are unaudited.
- --------------------------------------------------------------------------------
(1) Inception date for Class A was 5/12/92.
(2) Inception date for Class C was 5/28/97.
(3) Reflects the 1% contingent deferred sales charge on redemptions made within
the first year of purchasing shares.
(4) The Russell 1000 Growth Index is a market capitalization-weighted index
containing those securities in the Russell 1000 Index with a
greater-than-average growth orientation. It has an average market
capitalization of $10.93 billion. Investment results assume the
reinvestment of dividends paid on the stocks constituting the index.
(5) The Standard & Poor's Composite Index of 500 Stocks (S&P 500 Index) is an
unmanaged index 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. You cannot invest in an index.
(6) The Total and Average Annual Return Since Inception percentages for the
Russell 1000 Growth Index and S&P 500 Index are calculated from the Class A
Share inception date, 5/12/92.
27
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE CONTRARIAN FUND-TM-
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- ----------------------------------------------------------------------------------------------
ALUMINUM - 1.9%
MAXXAM, Inc. 90,300 $ 5,124,525
- ----------------------------------------------------------------------------------------------
5,124,525
- ----------------------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 14.3%
Royal Group Technologies, Ltd. CAD 1,369,500 39,574,197
- ----------------------------------------------------------------------------------------------
39,574,197
- ----------------------------------------------------------------------------------------------
COPPER/GOLD MINING - 2.4%
Indochina Goldfields, Ltd. CAD 4,486,940 4,728,715
Indochina Goldfields, Ltd., 144A(7) CAD 1,700,000 1,791,603
- ----------------------------------------------------------------------------------------------
6,520,318
- ----------------------------------------------------------------------------------------------
DIAMOND MINING - 4.7%
Diamond Fields International Note(4) CAD 6,687,600 1,364,120
DiamondWorks, Ltd. CAD 12,197,485 11,527,795
- ----------------------------------------------------------------------------------------------
12,891,915
- ----------------------------------------------------------------------------------------------
ENERGY - 7.4%
Abacan Resource Corporation CAD 1,000,000 619,860
Anderson Exploration, Ltd. CAD 250,000 2,889,682
Anzoil N.L. AUD 3,577,471 486,786
Beau Canada Exploration, Ltd. CAD 700,000 832,908
Black Sea Energy, Ltd. CAD 2,807,880 1,050,032
Black Sea Energy, Ltd., 144A(7) CAD 2,772,000 1,036,614
Eurogas Corporation, 144A(7) CAD 5,762,400 2,468,341
Occidental Petroleum Corporation 100,000 2,700,000
Petroleum Securities Australia, Ltd. AUD 226,000 740,839
Petroleum Securities Australia, Ltd., ADR(3) 195,100 3,158,181
Pioneer Natural Resources Company 100,000 2,387,500
Vastar Resources, Inc.(1) 50,000 2,184,375
- ----------------------------------------------------------------------------------------------
20,555,118
- ----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 6.6%
Dundee Bancorp, Inc., Class A CAD 1,113,600 17,604,080
U.S. Global Investors, Inc., Class A 279,860 559,720
- ----------------------------------------------------------------------------------------------
18,163,800
- ----------------------------------------------------------------------------------------------
GOLD MINING - 18.2%
BKG Resources plc GBP 3,948,232 526,757
Chase Resources Corporation CAD 403,950 21,972
Consolidated African Mines, Ltd. SAR 36,589,644 8,013,691
El Callao Mining Corporation CAD 450,000 122,387
Emperor Mines, Ltd. AUD 4,317,979 1,228,508
Etruscan Resources, Ltd. CAD 3,351,300 8,955,029
Euro-Nevada Mining Corporation(1) CAD 25,000 340,813
First Dynasty Mines, Ltd. CAD 2,324,550 410,935
First Dynasty Mines, Ltd., 144A(7) CAD 1,760,000 311,134
Golden Star Resources, Ltd. CAD 2,000,000 4,147,544
Guyanor Resources, S.A., Class B CAD 602,600 737,501
Harmony Gold Mining Company, Ltd., ADR(3) 844,000 3,428,750
MK Gold Company 739,600 693,375
New East Daggafontein Mines, Ltd. SAR 145,400 117,258
Newmont Mining Corporation(1) 100,000 2,362,500
Normandy Mining, Ltd. AUD 10,343,750 8,444,844
Queenstake Resources, Ltd. CAD 1,001,000 210,988
Randgold and Exploration Company, Ltd. SAR 664,700 507,835
Randgold Resources, Ltd., GDR(3) 894,656 $ 4,808,776
Vengold, Inc. CAD 4,648,200 4,709,038
- ----------------------------------------------------------------------------------------------
50,099,636
- ----------------------------------------------------------------------------------------------
MEDIA & TELECOMMUNICATION SERVICES - 16.5%
CD Radio, Inc. 635,000 24,447,500
Central European Media Enterprises, Ltd., Class A 150,000 3,243,750
Metromedia International Group, Inc. 1,494,400 17,839,400
- ----------------------------------------------------------------------------------------------
45,530,650
- ----------------------------------------------------------------------------------------------
NICKEL MINING - 8.6%
Inco, Ltd., VBN Shares(1) CAD 3,386,550 23,831,917
- ----------------------------------------------------------------------------------------------
23,831,917
- ----------------------------------------------------------------------------------------------
PLATINUM GROUP METALS - 0.4%
African Minerals Ltd., 144A, Restricted(4),(5),(7) 2,366,667 1,183,334
- ----------------------------------------------------------------------------------------------
1,183,334
- ----------------------------------------------------------------------------------------------
REAL ESTATE - 1.5%
Atlantic Gulf Communities Corporation 638,130 1,316,143
Avatar Holdings, Inc. 104,000 2,899,000
- ----------------------------------------------------------------------------------------------
4,215,143
- ----------------------------------------------------------------------------------------------
TEXTILES - 0.1%
PT Apac Centertex Corporation, Foreign(1),(8) IDR 17,668,000 249,720
- ----------------------------------------------------------------------------------------------
249,720
- ----------------------------------------------------------------------------------------------
TRANSPORTATION SERVICES - 1.4%
China Yuchai International, Ltd. 1,536,725 3,937,858
- ----------------------------------------------------------------------------------------------
3,937,858
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 84.0% (Cost $387,601,374) 231,878,131
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS
- ----------------------------------------------------------------------------------------------
Atlantic Gulf Communities Corporation, Series B 206,778 1,628,377
- ----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 0.6% (Cost $2,049,780) 1,628,377
SEMIANNUAL REPORT
- ----------------------------------------------------------------------------------------------
<CAPTION>
PAR VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- ----------------------------------------------------------------------------------------------
Randgold and Exploration Company, Ltd.,
7.00%, Due 10/3/01(1) 2,750,000 1,430,000
- ----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 0.5% (Cost $2,750,000) 1,430,000
<CAPTION>
FOREIGN CURRENCY(2) WARRANTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS
- ----------------------------------------------------------------------------------------------
Atlantic Gulf Communities Corporation,
Warrants, Strike $5.75, Expire 6/23/04(6) 413,556 206,778
DiamondWorks, Ltd., Warrants, Strike
CAD 1.65, Expire 7/15/98(4),(6) CAD 848,485 21,894
Etruscan Resources, Ltd., Warrants,
Strike CAD 8.475, Expire 4/23/99(4),(6) CAD 722,150 88,866
PT Apac Centertex Corporation, Warrants,
Strike IDR 1,000, Expire 7/14/01(6) IDR 2,700,000 5,724
Vengold, Inc., Warrants, Strike $1.30,
Expire 6/30/00(6) CAD 1,286,000 244,827
- ----------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.2% (Cost $1,726,588) 568,089
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) CONTRACTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPTIONS
- -----------------------------------------------------------------------------------------------
Harmony Gold Mining Company, Ltd.,
Options, Strike SAR 6,000, Expire 7/31/01(6) SAR 9,900 $ 7,732
Normandy Mining, Ltd., Options,
Strike AUD 2.50, Expire 4/30/01(6) AUD 1,673,426 129,377
- ----------------------------------------------------------------------------------------------
TOTAL OPTIONS - 0.1% (Cost $43,533) 137,109
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 85.4% (Cost $394,171,275) 235,641,706
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
DEPOSITS WITH BROKERS AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT
- ----------------------------------------------------------------------------------------------
U.S. Treasury Bill, 4.95%, due 8/13/98, $32,000,000 par value 31,810,800
- ----------------------------------------------------------------------------------------------
TOTAL DEPOSITS WITH BROKERS AND
CUSTODIAN BANK FOR SECURITIES SOLD SHORT - 11.5% 31,810,800
- ----------------------------------------------------------------------------------------------
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD SHORT - 18.6% 66,876,379
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
SECURITIES SOLD SHORT - 10.6% (Proceeds $44,504,718) 29,384,054
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (15.5)% (87,766,244)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $275,946,695
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT -- THE CONTRARIAN FUND-TM-
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- ----------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 0.1%
Centocor, Inc. 5,300 $ 192,125
- ----------------------------------------------------------------------------------------------
192,125
- ----------------------------------------------------------------------------------------------
COMPUTER GRAPHICS - 0.3%
ATI Technologies, Inc. CAD 72,400 950,073
- ----------------------------------------------------------------------------------------------
950,073
- ----------------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 0.1%
Iomega Corporation 41,600 244,400
- ----------------------------------------------------------------------------------------------
244,400
- ----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 1.2%
Activision, Inc. 103,400 1,066,313
Avant! Corporation 16,500 408,375
Baan Company, N.V. 34,700 1,240,525
Imnet Systems, Inc. 34,220 457,693
- ----------------------------------------------------------------------------------------------
3,172,906
- ----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 1.2%
French Fragrances, Inc. 22,800 356,250
The North Face, Inc. 23,200 556,800
West Marine, Inc. 132,200 2,379,600
- ----------------------------------------------------------------------------------------------
3,292,650
- ----------------------------------------------------------------------------------------------
CONSUMER TECHNOLOGY - 1.2%
Sensormatic Electronics Corporation 235,600 3,298,400
- ----------------------------------------------------------------------------------------------
3,298,400
- ----------------------------------------------------------------------------------------------
DATA PROCESSING SERVICES/SYSTEM INTEGRATION - 0.1%
Intelligroup, Inc. 16,700 296,425
- ----------------------------------------------------------------------------------------------
296,425
- ----------------------------------------------------------------------------------------------
ELECTRONICS - 0.1%
Lernout and Hauspie Speech Products 3,300 196,969
Zenith Electronics Corporation 226,000 67,094
- ----------------------------------------------------------------------------------------------
264,063
- ----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.8%
Delta Financial Corporation 390,638 7,177,973
Sirrom Capital Corporation 16,100 418,600
- ----------------------------------------------------------------------------------------------
7,596,573
- ----------------------------------------------------------------------------------------------
MACHINERY-GENERAL INDUSTRIAL - 1.4%
Zoltek Companies, Inc. 191,500 3,853,937
- ----------------------------------------------------------------------------------------------
3,853,937
- ----------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & DEVICES - 0.0%
Perclose, Inc. 3,700 104,525
- ----------------------------------------------------------------------------------------------
104,525
- ----------------------------------------------------------------------------------------------
MEDICAL SUPPLIES - 0.8%
Enzo Biochem, Inc. 182,185 2,436,724
- ----------------------------------------------------------------------------------------------
2,436,724
- ----------------------------------------------------------------------------------------------
SPECIALTY WHOLESALE - 1.1%
Rexall Sundown, Inc. 87,200 3,073,800
- ----------------------------------------------------------------------------------------------
3,073,800
- ----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS - 0.2%
InteliData Technologies Corporation 159,100 $ 154,128
Tel-Save Holdings, Inc. 23,000 339,250
Transcrypt International, Inc. 33,800 114,075
- ----------------------------------------------------------------------------------------------
607,453
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT - 10.6% (Proceeds $51,332,530) $ 29,384,054
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE DEVELOPING COUNTRIES FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- ----------------------------------------------------------------------------------------------
ARGENTINA - 2.9%
Cresud Sacifya 144,730 $ 231,601
Inversiones y Representaciones, S.A.(1) 50,000 147,021
- ----------------------------------------------------------------------------------------------
378,622
- ----------------------------------------------------------------------------------------------
CHINA - 2.0%
Wuxi Little Swan Company, Ltd., Class B(1) 300,000 266,758
- ----------------------------------------------------------------------------------------------
266,758
- ----------------------------------------------------------------------------------------------
CZECH REPUBLIC - 5.3%
SPT Telecom, A.S. 50,000 691,103
- ----------------------------------------------------------------------------------------------
691,103
- ----------------------------------------------------------------------------------------------
EGYPT- 3.6%
Al-Ahram Beverages Company S.A.E., GDR(1),(3) 15,000 477,000
- ----------------------------------------------------------------------------------------------
477,000
- ----------------------------------------------------------------------------------------------
ISRAEL - 2.3%
Blue Square Israel, Ltd., ADR(1),(3) 20,000 308,750
- ----------------------------------------------------------------------------------------------
308,750
- ----------------------------------------------------------------------------------------------
KOREA - 2.1%
LG Semiconductor Company 35,000 272,760
- ----------------------------------------------------------------------------------------------
272,760
- ----------------------------------------------------------------------------------------------
MALAYSIA - 2.3%
Golden Hope Plantations Berhad(1) 150,000 137,432
Kuala Lumpur Kepong Berhad(1) 100,000 161,543
- ----------------------------------------------------------------------------------------------
298,975
- ----------------------------------------------------------------------------------------------
MEXICO - 11.6%
Acer Computech Latino America, ADR(3) 20,000 57,500
Cifra S.A. de C.V., Class V, ADR(1),(3) 33,498 489,908
Desc, S.A. de C.V., ADR(1),(3) 25,000 496,875
TV Azteca, S.A. de C.V., ADR(1),(3) 30,000 324,375
Vitro Sociedad Anonima, ADR(1),(3) 24,000 153,000
- ----------------------------------------------------------------------------------------------
1,521,658
- ----------------------------------------------------------------------------------------------
PHILIPPINES - 3.7%
Ionics Circuits, Inc.(1) 1,528,200 485,579
- ----------------------------------------------------------------------------------------------
485,579
- ----------------------------------------------------------------------------------------------
ROMANIA - 4.9%
Romanian Investment Fund 790 641,875
- ----------------------------------------------------------------------------------------------
641,875
- ----------------------------------------------------------------------------------------------
RUSSIA - 2.4%
Black Sea Energy, Ltd., 144A(7) 40,320 15,078
Mosenergo,144A, ADR(1),(3),(7) 60,000 307,500
- ----------------------------------------------------------------------------------------------
322,578
- ----------------------------------------------------------------------------------------------
SOUTH AFRICA - 4.2%
Consolidated African Mines, Ltd.(1) 2,500,052 547,550
- ----------------------------------------------------------------------------------------------
547,550
- ----------------------------------------------------------------------------------------------
THAILAND - 5.9%
Bangkok Bank Public Company, Ltd., Foreign(1),(8) 250,000 307,329
Siam Commercial Bank Public Company, Ltd.,
Foreign(1),(8) 340,000 108,511
Thai Farmers Bank Public Company, Ltd.,
Foreign(1),(8) 400,000 352,246
- ----------------------------------------------------------------------------------------------
768,086
- ----------------------------------------------------------------------------------------------
TURKEY - 4.8%
Eczacibasi Ilac Sanayi ve Ticaret, A.S. 12,101,000 $ 623,958
- ----------------------------------------------------------------------------------------------
623,958
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS- 58.0% (Cost: $13,303,101) 7,605,252
- ----------------------------------------------------------------------------------------------
<CAPTION>
WARRANTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS
- ----------------------------------------------------------------------------------------------
Anooraq Resources Corporation, Warrants,
Strike CAD2.38, Expire 10/10/98(2),(4),(6) 65,000 114
Etruscan Enterprises, Ltd., Warrants,
Strike CAD8.475, Expire 4/23/99(2),(4),(6) 51,310 6,314
- ----------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.1% (Cost: $125,765) 6,428
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 58.1% (Cost: $13,428,866) 7,611,680
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- ----------------------------------------------------------------------------------------------
Cash 891
U.S. Treasury Bill 4.50%, due 7/2/98, $2,500,000 par value 2,499,687
Repurchase Agreement 3,108,000
State Street Bank and Trust Company, 5.30%,
Dated 6/30/98, due 7/1/98, Maturity Value
$3,108,458 (Collateralized by $2,230,000
par value U.S. Treasury Note, 12.75%, due 11/15/10)
- ----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 42.8% 5,608,578
- ----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.9)% (119,621)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 13,100,637
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
31
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE DIVERSIFIED GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- ----------------------------------------------------------------------------------------------
AIRLINES - 2.9%
ASA Holdings, Inc.(1) 25,000 $ 1,240,625
SkyWest, Inc.(1) 35,000 980,000
- ----------------------------------------------------------------------------------------------
2,220,625
- ----------------------------------------------------------------------------------------------
BANKS - 5.5%
East-West Bank, Restricted(4),(5) 150,000 1,500,000
Golden State Bancorp, Inc. 27,500 818,125
Independence Community Bank Corporation 50,000 850,000
Richmond County Financial Corporation (1) 55,000 1,027,812
- ----------------------------------------------------------------------------------------------
4,195,937
- ----------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 2.0%
Intercardia, Inc. 28,000 280,000
Millennium Pharmaceuticals, Inc. 55,000 776,875
Molecular Biosystems, Inc. 60,000 431,250
- ----------------------------------------------------------------------------------------------
1,488,125
- ----------------------------------------------------------------------------------------------
BUSINESS SERVICES - 4.3%
Cendant Corporation 40,000 835,000
Franchise Mortgage Acceptance Company 40,000 1,042,500
Gartner Group, Inc., Class A 25,000 875,000
Thomas Group, Inc. 35,000 371,875
U-Ship, Inc., 144A, Restricted (1),(4),(5) 127,586 127,586
- ----------------------------------------------------------------------------------------------
3,251,961
- ----------------------------------------------------------------------------------------------
CLOTHING/RETAIL - 4.4%
Chico's Fas, Inc. 45,000 697,500
Signet Group plc, ADR(3) 45,000 959,062
The Dress Barn, Inc. 35,000 870,625
The Finish Line, Inc., Class A 30,000 843,750
- ----------------------------------------------------------------------------------------------
3,370,937
- ----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES - 2.3%
CellNet Data Systems, Inc. 90,000 871,875
Condor Technology Solutions, Inc. 60,000 885,000
- ----------------------------------------------------------------------------------------------
1,756,875
- ----------------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 1.5%
Telxon Corporation(1) 35,000 1,133,125
- ----------------------------------------------------------------------------------------------
1,133,125
- ----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 10.9%
Egghead.com, Inc. 190,000 1,603,125
Electronics for Imaging, Inc. 40,000 845,000
Macromedia, Inc. 65,000 1,214,687
MicroStrategy, Inc. 60,000 1,695,000
System Software Associates, Inc. 90,000 641,250
Visio Corporation 20,000 955,000
Xylan Corporation 45,000 1,341,563
- ----------------------------------------------------------------------------------------------
8,295,625
- ----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES - 5.6%
Business Objects SA, ADR(3) 50,000 843,750
Concord Communications, Inc. 60,000 1,533,750
FileNET Corporation 55,000 1,588,125
InfoNow Corporation 277,215 329,193
- ----------------------------------------------------------------------------------------------
4,294,818
- ----------------------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 1.2%
Lumen Technologies, Inc. 100,000 $ 887,500
- ----------------------------------------------------------------------------------------------
887,500
- ----------------------------------------------------------------------------------------------
CONSUMER GOODS - 1.2%
Oakley, Inc. 67,500 902,813
- ----------------------------------------------------------------------------------------------
902,813
- ----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 3.3%
Eagle Hardware & Garden, Inc. 40,000 925,000
Krause's Furniture, Inc. 268,900 705,862
Navarre Corporation 70,000 284,375
Sunglass Hut International, Inc. 55,000 608,438
- ----------------------------------------------------------------------------------------------
2,523,675
- ----------------------------------------------------------------------------------------------
DATA COMMUNICATIONS - 5.2%
Ascend Communications, Inc. 22,500 1,115,156
FORE Systems, Inc. 75,000 1,987,500
Novell, Inc. 65,000 828,750
- ----------------------------------------------------------------------------------------------
3,931,406
- ----------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 2.0%
Splash Technology Holdings, Inc. 88,600 1,522,812
- ----------------------------------------------------------------------------------------------
1,522,812
- ----------------------------------------------------------------------------------------------
ENERGY SERVICES - 1.9%
Input/Output, Inc. 25,000 445,312
Superior Energy Services, Inc. 200,000 1,012,500
- ----------------------------------------------------------------------------------------------
1,457,812
- ----------------------------------------------------------------------------------------------
ENTERTAINMENT - 0.8%
Alliance Gaming Corporation 150,000 600,000
- ----------------------------------------------------------------------------------------------
600,000
- ----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 3.9%
Imperial Credit Commercial Mortgage
Investment Corporation(1) 50,000 653,125
Southern Pacific Funding Corporation 90,000 1,411,875
The Bear Stearns Companies, Inc.(1) 16,500 938,438
- ----------------------------------------------------------------------------------------------
3,003,438
- ----------------------------------------------------------------------------------------------
FOOD RETAIL/WHOLE-SALE - 3.2%
Omega Protein Corporation 55,000 845,625
Zapata Corporation(1) 160,000 1,580,000
- ----------------------------------------------------------------------------------------------
2,425,625
- ----------------------------------------------------------------------------------------------
GOLD MINING - 0.8%
Euro-Nevada Mining Corporation(1) CAD 45,000 613,463
- ----------------------------------------------------------------------------------------------
613,463
- ----------------------------------------------------------------------------------------------
HOME BUILDING - 4.0%
American Homestar Corporation 45,000 1,077,187
Cavalier Homes, Inc.(1) 70,000 905,625
Oakwood Homes Corporation(1) 35,000 1,050,000
- ----------------------------------------------------------------------------------------------
3,032,812
- ----------------------------------------------------------------------------------------------
HEALTHCARE/HMO - 3.0%
Sabratek Corporation 100,000 2,275,000
- ----------------------------------------------------------------------------------------------
2,275,000
- ----------------------------------------------------------------------------------------------
HOSPITALS - 1.8%
Sunrise Assisted Living, Inc. 40,000 1,375,000
- ----------------------------------------------------------------------------------------------
1,375,000
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
32
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INSURANCE - 1.5%
Core Cap, Inc., Class A, Restricted(4),(5) 25,000 $ 500,000
Core Cap, Inc., Series A Preferred, Restricted(4),(5) 25,000 625,000
- ----------------------------------------------------------------------------------------------
1,125,000
- ----------------------------------------------------------------------------------------------
MANUFACTURING - 0.8%
FLIR Systems, Inc. 36,000 621,000
- ----------------------------------------------------------------------------------------------
621,000
- ----------------------------------------------------------------------------------------------
MEDIA - 8.4%
Century Communications Corporation, Class A 60,000 1,125,000
Comcast Corporation, Class A(1) 30,000 1,217,812
Cox Communications, Inc., Class A 20,000 968,750
MediaOne Group, Inc. 40,000 1,757,500
Tele-Communications International, Inc., Class A 25,000 502,344
Tele-Communications, Inc., Group Series A 22,500 864,844
- ----------------------------------------------------------------------------------------------
6,436,250
- ----------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & DEVICES - 1.3%
Endocardial Solutions, Inc. 70,000 735,000
Integ, Inc. 85,000 223,125
- ----------------------------------------------------------------------------------------------
958,125
- ----------------------------------------------------------------------------------------------
MEDICAL SUPPLIES - 1.9%
Ocular Sciences, Inc. 45,000 1,462,500
- ----------------------------------------------------------------------------------------------
1,462,500
- ----------------------------------------------------------------------------------------------
NETWORK SYSTEMS - 1.1%
Tidel Technologies, Inc. 250,000 859,375
- ----------------------------------------------------------------------------------------------
859,375
- ----------------------------------------------------------------------------------------------
OIL/GAS DRILLING - 1.4%
Bonus Resources Services Corporation CAD 400,000 1,047,085
- ----------------------------------------------------------------------------------------------
1,047,085
- ----------------------------------------------------------------------------------------------
PHARMACEUTICALS - 1.4%
DUSA Pharmaceuticals, Inc. 60,000 408,750
Incyte Pharmaceuticals, Inc. 20,000 682,500
- ----------------------------------------------------------------------------------------------
1,091,250
- ----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT - 2.6%
Advanced Radio Telecom Corporation 75,000 740,625
IWL Communications, Inc. 145,500 1,282,219
- ----------------------------------------------------------------------------------------------
2,022,844
- ----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS SERVICES - 5.4%
Electric Lightwave, Inc. 57,500 636,094
IDT Corporation 35,000 1,052,187
Metrocall, Inc. 145,000 879,063
PageMart Wireless, Inc., Class A 115,000 1,042,187
STARTEC Global Communication Corporation 45,000 517,500
- ----------------------------------------------------------------------------------------------
4,127,031
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 97.5% (Cost $73,320,546) 74,309,844
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS
- ----------------------------------------------------------------------------------------------
BUSINESS SERVICES - 0.2%
U-Ship, Inc., Restricted, 5.0%, Expires 11/1/98(4),(5) 200,000 150,000
- ----------------------------------------------------------------------------------------------
150,000
- ----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
COAL - 0.3%
Westmoreland Coal, Inc., 8.50%,
Expires 12/31/49, Series A 44,100 $ 214,988
- ----------------------------------------------------------------------------------------------
214,988
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE PREFERRED STOCKS - 0.5% (Cost: $710,077) 364,988
- ----------------------------------------------------------------------------------------------
<CAPTION>
CONTRACTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
CALL OPTIONS
Sun Microsystems, Inc., Strike 45, Expire 7/18/98(6) 500 43,750
- ----------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS - 0.1% (Cost $92,570) 43,750
- ----------------------------------------------------------------------------------------------
<CAPTION>
WARRANTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
WARRANTS
BJ Services Company, Warrants, Strike $15.00,
Expire 4/12/00(4),(6) 25,000 784,375
Golden State Bancorp, Inc., Litigation Warrants,
Strike $12.00, Expire 1/1/01(4),(6) 45,000 239,063
U-Ship, Inc., Warrants, Restricted, Strike $1.75,
Expire 4/30/01(4),(5),(6) 100,000 72,947
- ----------------------------------------------------------------------------------------------
TOTAL WARRANTS - 1.4% (Cost $1,052,331) 1,096,385
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.5% (Cost $75,175,524) 75,814,967
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
DEPOSITS WITH BROKERS AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT
- ----------------------------------------------------------------------------------------------
Cash 1,024,920
- ----------------------------------------------------------------------------------------------
TOTAL DEPOSITS WITH BROKERS AND CUSTODIAN BANK
FOR SECURITIES SOLD SHORT - 1.3% 1,024,920
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD SHORT - 1.7% 1,296,932
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
SECURITIES SOLD SHORT - (0.9)% (Proceeds: $1,296,932) (673,125)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (1.6)% (1,251,566)
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 76,212,128
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
33
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT -- THE DIVERSIFIED GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
MEDICAL INSTRUMENT & DEVICES - 0.3%
- ----------------------------------------------------------------------------------------------
Inhale Therapeutic Systems, Inc. 7,500 $ 185,625
- ----------------------------------------------------------------------------------------------
185,625
- ----------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT - 0.3% (Proceeds: $191,056) 185,625
- ----------------------------------------------------------------------------------------------
<CAPTION>
CONTRACTS VALUE
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
WRITTEN PUT OPTIONS
- ----------------------------------------------------------------------------------------------
The PHLX/KBW Bank Index, Strike 780, Expire 7/18/98(6) 300 202,500
The NASDAQ 100 Index, Strike 1200, Expire 7/18/98(6) 150 33,750
The NASDAQ 100 Index, Strike 1220, Expire 7/18/98(6) 300 93,750
The NASDAQ 100 Index, Strike 1240, Expire 7/18/98(6) 300 157,500
- ----------------------------------------------------------------------------------------------
TOTAL WRITTEN PUT OPTIONS - 0.6% (Proceeds: $1,105,876) 487,500
- ----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS SOLD SHORT - 0.9% (Proceeds: $1,296,932) $ 673,125
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
34
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE EMERGING GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
AEROSPACE - 0.8%
Triumph Group, Inc. 60,000 $ 2,520,000
- -----------------------------------------------------------------------------------------------
2,520,000
- -----------------------------------------------------------------------------------------------
BUSINESS SERVICES - 6.2%
Consolidated Graphics, Inc. 18,400 1,085,600
Corporate Family Solutions, Inc. 60,600 1,515,000
Hall, Kinion & Associates, Inc. 50,700 339,056
Knoll, Inc. 77,800 2,295,100
Labor Ready, Inc. 157,050 4,740,947
On Assignment, Inc. 35,600 1,243,775
Provant, Inc. 40,400 742,350
Select Appointments Holdings plc, ADR(1),(3) 151,700 4,475,150
StaffMark, Inc. 100,800 3,691,800
- -----------------------------------------------------------------------------------------------
20,128,778
- -----------------------------------------------------------------------------------------------
CLOTHING RETAIL - 1.2%
Happy Kids, Inc. 21,400 294,250
Nautica Enterprises, Inc. 55,900 1,498,819
Tommy Hilfiger Corporation 32,000 2,000,000
- -----------------------------------------------------------------------------------------------
3,793,069
- -----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES - 3.3%
Bright Horizons, Inc. 3,700 103,600
Computer Learning Centers, Inc. 120,000 2,985,000
NCO Group, Inc. 30,800 677,600
Robert Half International, Inc. 32,100 1,793,588
Romac International, Inc. 46,300 1,406,363
Steiner Leisure, Ltd. 124,800 3,775,200
- -----------------------------------------------------------------------------------------------
10,741,350
- -----------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 1.7%
Advanced Fibre Communications, Inc. 20,000 801,250
Com21, Inc. 93,000 1,976,250
Tekelec, Inc. 62,500 2,796,875
- -----------------------------------------------------------------------------------------------
5,574,375
- -----------------------------------------------------------------------------------------------
COMPUTER SERVICES - 20.5%
Atlantic Data Services, Inc. 111,800 2,145,163
BrightStar Information Technology Group, Inc. 50,800 704,850
Cambridge Technology Partners, Inc. 10,000 546,250
Carreker-Antinori, Inc. 10,000 105,000
CIBER, Inc. 74,900 2,846,200
Cognizant Technology Solutions Corporation 77,800 938,463
Computer Horizons Corporation 10,000 370,625
Compuware Corporation 54,500 2,786,313
Data Processing Resources Corporation 55,100 1,711,544
Diamond Technology Partners, Inc. 39,800 1,203,950
ECsoft Group plc 268,700 8,699,163
Electronic Processing, Inc. 81,600 979,200
Envoy Corporation 66,800 3,164,650
Forrester Research, Inc. 58,000 2,305,500
Information Management Resources, Inc. 135,300 4,574,831
INSpire Insurance Solutions, Inc. 66,600 2,214,450
Intelligroup, Inc. 83,100 1,475,025
International Network Services 85,000 3,485,000
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SERVICES - CONTINUED
Keane, Inc. 10,000 $ 560,000
Mastech Corporation 89,300 2,511,563
Medirisk, Inc. 76,200 1,543,050
Premark International, Inc.(1) 20,000 645,000
Remedy Corporation 85,800 1,458,600
Sapient Corporation 30,400 1,603,600
Saville Systems plc, ADR(3) 54,300 2,721,788
Software AG Systems, Inc. 176,200 5,153,850
Systems & Computer Technology Corporation 160,800 4,341,600
Technology Solutions Company 124,800 3,954,600
Tier Technologies, Inc., Class B 110,600 1,970,063
VISTA Information Solutions, Inc. 20,000 152,500
- -----------------------------------------------------------------------------------------------
66,872,388
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 10.3%
Aspect Development, Inc. 28,800 2,178,000
BEA Systems, Inc. 20,000 458,750
Brio Technology, Inc. 81,500 1,090,063
Citrix Systems, Inc. 21,800 1,490,575
Concord Communications, Inc. 130,300 3,330,794
FileNET Corporation 76,800 2,217,600
Inso Corporation 155,800 2,132,513
JDA Software Group, Inc. 56,300 2,463,125
MAPICS, Inc. 51,900 1,021,781
Micromuse, Inc. 114,100 4,656,706
New Era of Networks, Inc. 75,300 2,296,650
Pervasive Software, Inc. 131,500 1,364,313
Siebel Systems, Inc. 29,400 948,150
Timberline Software Corporation(1) 39,900 940,144
TSI International Software, Ltd. 162,500 3,717,188
Veritas DGC, Inc. 62,900 3,141,069
- -----------------------------------------------------------------------------------------------
33,447,419
- -----------------------------------------------------------------------------------------------
CONSTRUCTION /INFRASTRUCTURE - 0.4%
National R.V. Holdings, Inc. 27,400 1,236,425
- -----------------------------------------------------------------------------------------------
1,236,425
- -----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 7.0%
1-800 CONTACTS, Inc. 116,800 1,781,200
Abercrombie & Fitch Co., Class A 32,900 1,447,600
Balance Bar Company 61,100 878,313
DM Management Company 73,100 2,622,463
French Fragrances, Inc. 83,900 1,310,938
Gadzooks, Inc. 111,400 3,070,463
Just For Feet, Inc. 30,000 855,000
Media Arts Group, Inc. 125,100 2,408,175
Movado Group, Inc.(1) 92,500 2,798,125
NBTY, Inc. 178,500 3,279,938
Natural Alternatives International, Inc. 38,800 776,000
USANA, Inc. 49,500 1,540,688
- -----------------------------------------------------------------------------------------------
22,768,900
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
35
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE EMERGING GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER GOODS - 1.6%
Meade Instruments Corporation 184,750 $2,032,250
Twinlab Corporation 76,700 3,350,831
- -----------------------------------------------------------------------------------------------
5,383,081
- -----------------------------------------------------------------------------------------------
EDUCATION/TRAINING - 2.2%
Education Management Corporation 44,500 1,462,938
ITT Educational Services, Inc. 150,900 4,866,525
Strayer Education, Inc.(1) 24,700 895,375
- -----------------------------------------------------------------------------------------------
7,224,838
- -----------------------------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 2.0%
Gemstar International Group, Ltd. 153,700 5,754,144
Macrovision Corporation 26,300 627,913
- -----------------------------------------------------------------------------------------------
6,382,056
- -----------------------------------------------------------------------------------------------
ENVIRONMENTAL - 1.0%
US Liquids, Inc. 143,100 3,112,425
- -----------------------------------------------------------------------------------------------
3,112,425
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 4.8%
Allied Capital Corporation(1) 75,200 1,842,400
Financial Federal Corporation 171,600 4,601,025
Franchise Mortgage Acceptance Company LLC 98,000 2,554,125
HealthCare Financial Partners, Inc. 26,200 1,606,388
Imperial Credit Industries, Inc. 111,500 2,620,250
Waddell & Reed Financial, Inc., Class A(1) 114,500 2,740,844
- -----------------------------------------------------------------------------------------------
15,965,031
- -----------------------------------------------------------------------------------------------
FURNITURE/HOME APPLIANCE - 0.1%
Restoration Hardware, Inc. 18,100 454,763
- -----------------------------------------------------------------------------------------------
454,763
- -----------------------------------------------------------------------------------------------
HARDWARE/SEMICONDUCTOR 0.5%
Applied Micro Circuits Corporation 69,048 1,786,617
- -----------------------------------------------------------------------------------------------
1,786,617
- -----------------------------------------------------------------------------------------------
HEALTH CARE SERVICES - 1.6%
Balanced Care Corporation 212,200 1,538,450
ICON plc, ADR(3) 7,000 176,750
Orthodontic Centers of America, Inc. 51,000 1,067,813
Ovid Technologies, Inc. 25,000 593,750
Professional Detailing, Inc. 75,300 1,873,088
- -----------------------------------------------------------------------------------------------
5,249,851
- -----------------------------------------------------------------------------------------------
HOTELS/LODGING - 4.1%
Fairfield Communities, Inc. 146,400 2,809,050
Four Seasons Hotels, Inc.(1) 92,100 3,246,525
Intrawest Corporation(1) 73,500 1,465,406
Pegasus Systems, Inc. 106,700 2,734,188
Silverleaf Resorts, Inc. 42,400 646,600
Travel Services International, Inc. 72,100 2,370,288
- -----------------------------------------------------------------------------------------------
13,272,056
- -----------------------------------------------------------------------------------------------
INTERNET - 10.6%
Amazon.com, Inc. 42,800 4,269,300
EarthLink Network, Inc. 39,300 3,016,275
Excite, Inc. 15,700 1,467,950
Exodus Communications, Inc. 51,300 2,295,675
Lycos, Inc. 35,000 2,638,125
Macromedia, Inc. 167,400 3,128,288
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
INTERNET - CONTINUED
MindSpring Enterprises, Inc. 21,800 $2,242,675
NetGravity, Inc. 30,000 393,750
Network Solutions, Inc. 70,600 3,177,000
Preview Travel, Inc. 62,100 2,134,688
RealNetworks, Inc. 99,800 3,723,788
software.net Corporation 141,600 2,708,100
Verio, Inc. 95,900 2,385,513
VeriSign, Inc. 20,000 747,500
USWeb Corporation 10,000 236,875
- -----------------------------------------------------------------------------------------------
34,565,500
- -----------------------------------------------------------------------------------------------
MEDIA - 7.3%
Emmis Broadcasting Corporation 81,900 3,915,844
Jacor Communications, Inc. 66,600 3,929,400
Lamar Advertising Company 178,350 6,398,306
SFX Entertainment, Inc. 41,300 1,894,638
TMP Worldwide, Inc. 116,700 4,069,913
Univision Communications, Inc., Class A 97,000 3,613,250
- -----------------------------------------------------------------------------------------------
23,821,350
- -----------------------------------------------------------------------------------------------
MEDICAL INSTRUMENTS & DEVICES - 0.5%
Schick Technologies, Inc. 101,900 1,573,081
- -----------------------------------------------------------------------------------------------
1,573,081
- -----------------------------------------------------------------------------------------------
MEDICAL SUPPLIES - 1.6%
Ocular Sciences, Inc. 95,400 3,100,500
ResMed, Inc. 47,500 2,164,219
- -----------------------------------------------------------------------------------------------
5,264,719
- -----------------------------------------------------------------------------------------------
OTHER SERVICES - 1.6%
Rental Service Corporation 85,500 2,874,938
Ritchie Bros. Auctioneers, Inc. 84,300 2,239,219
- -----------------------------------------------------------------------------------------------
5,114,156
- -----------------------------------------------------------------------------------------------
REAL ESTATE - 1.2%
CB Commercial Real Estate Services Group, Inc. 114,500 3,828,594
- -----------------------------------------------------------------------------------------------
3,828,594
- -----------------------------------------------------------------------------------------------
RECREATION - 0.4%
Royal Olympic Cruise Lines, Inc. 135,500 1,355,000
- -----------------------------------------------------------------------------------------------
1,355,000
- -----------------------------------------------------------------------------------------------
RESTAURANTS - 0.5%
PJ America, Inc. 94,100 1,717,325
- -----------------------------------------------------------------------------------------------
1,717,325
- -----------------------------------------------------------------------------------------------
SEMICONDUCTOR - EQUIPMENT - 0.3%
inTEST Corporation 182,100 1,092,600
- -----------------------------------------------------------------------------------------------
1,092,600
- -----------------------------------------------------------------------------------------------
SEMICONDUCTORS - 1.5%
PMC-Sierra, Inc. 71,800 3,365,625
TranSwitch Corporation 109,400 1,504,250
- -----------------------------------------------------------------------------------------------
4,869,875
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 0.9%
EchoStar Communications Corporation, Class A 71,100 1,710,844
Midcom Communications, Inc. 60,000 1,140
Premisys Communications, Inc. 55,900 1,390,513
- -----------------------------------------------------------------------------------------------
3,102,496
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
36
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE EMERGING GROWTH FUND -- CONTINUED
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION SERVICES - 2.0%
DSET Corporation 92,900 $1,405,113
Paging Network, Inc. 173,400 2,427,600
SkyTel Communications, Inc. 116,400 2,724,488
- -----------------------------------------------------------------------------------------------
6,557,200
- -----------------------------------------------------------------------------------------------
TRAVEL SERVICES - 0.3%
ResortQuest International, Inc. 65,000 1,060,313
- -----------------------------------------------------------------------------------------------
1,060,313
- -----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 98.0% (Cost: $269,026,650) 319,835,629
- -----------------------------------------------------------------------------------------------
<CAPTION>
PAR VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- -----------------------------------------------------------------------------------------------
Midcom Communications, 8.25%,
Due 8/15/03, 144A(1),(4),(7) 1,000,000 172,500
- -----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 0.1% (Cost: $1,000,000) 172,500
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.1% (Cost: $270,026,650) 320,008,129
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash 962
Repurchase Agreement 8,866,000
State Street Bank & Trust Company, 5.30%, dated 6/30/98,
due 7/1/98, maturity value $8,867,305 (collateralized by
$6,360,000 par value U.S. Treasury Note, 12.75%,
due 11/15/10)
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 2.7% 8,866,962
- -----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.8%) (2,672,114)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $326,202,977
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
37
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE GLOBAL LOW-PRICED STOCK FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
CONSUMER/BUSINESS SERVICES - 3.7%
Poligrafici Editoriale S.p.A.(1) ITL 65,000 $ 189,674
- -----------------------------------------------------------------------------------------------
189,674
- -----------------------------------------------------------------------------------------------
ENERGY - 14.3%
Canadian Conquest Exploration, Inc. CAD 295,100 190,614
Olympia Energy, Inc., Class A CAD 89,500 19,473
Place Resources Corporation CAD 250,000 418,154
Symmetry Resources, Inc. CAD 34,400 25,728
Torrington Resources, Ltd. CAD 40,000 81,591
- -----------------------------------------------------------------------------------------------
735,560
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES - 7.3%
Bonus Resources Services Corporation CAD 15,000 39,266
Computalog, Ltd. CAD 11,600 123,039
Northstar Drilling Systems, Inc., 144A(7) CAD 125,000 212,477
- -----------------------------------------------------------------------------------------------
374,782
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 12.9%
Banca Popolare di Intra ITL 16,250 203,026
Electro Rent Corporation 11,600 260,275
Imperial Credit Industries, Inc. 8,400 197,400
- -----------------------------------------------------------------------------------------------
660,701
- -----------------------------------------------------------------------------------------------
FOOD - 11.1%
Fresh Del Monte Produce, Inc. 19,000 359,813
Kamps AG DEM 7,200 207,499
- -----------------------------------------------------------------------------------------------
567,312
- -----------------------------------------------------------------------------------------------
INSURANCE - 10.1%
CorVel Corporation 6,100 237,900
Desjardins-Laurentian
Financial Corporation, Class A(1) CAD 8,000 127,554
PAULA Financial(1) 7,500 150,938
- -----------------------------------------------------------------------------------------------
516,392
- -----------------------------------------------------------------------------------------------
MANUFACTURING - 8.1%
CIN-Corporacao Industrial do Norte SA(1) PTE 2,600 192,733
Noma Industries Limited, Class A CAD 41,500 225,735
- -----------------------------------------------------------------------------------------------
418,468
- -----------------------------------------------------------------------------------------------
MISCELLANEOUS - 3.5%
Loews Cineplex Entertainment Corporation 1,030 13,197
Lusomundo - Sociedade Gestora de
Participacoes Sociais, Preferred SA PTE 12,600 166,199
- -----------------------------------------------------------------------------------------------
179,396
- -----------------------------------------------------------------------------------------------
REAL ESTATE - 2.8%
Prima Inmobiliaria SA ESP 16,934 143,213
- -----------------------------------------------------------------------------------------------
143,213
- -----------------------------------------------------------------------------------------------
TRANSPORTATION EQUIPMENT AND SERVICES - 7.5%
Midas, Inc.(1) 13,000 261,625
Pittston BAX Group(1) 7,800 121,388
- -----------------------------------------------------------------------------------------------
383,013
- -----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL COMMON STOCK - 81.3% (Cost $4,401,627) $ 4,168,511
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
WARRANTS
- -----------------------------------------------------------------------------------------------
Brazilian Resources, Inc.,
1/2 Warrants, Strike CAD 0.50,
Expire 3/4/99(4),(6) CAD 91,828 4,558
Etruscan Enterprises, Ltd., Warrants,
Strike CAD 8.475, Expire 4/23/99(4),(6) CAD 17,360 2,136
Solomon Resources Ltd.,
1/2 Warrants, Strike CAD 1.05,
Expire 7/19/98(4),(6) CAD 75,000 0
- -----------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.1% (Cost $51,315) 6,694
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 81.4% (Cost $4,452,942) 4,175,205
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash 219
U.S. Treasury Bill, 4.50%, due 7/2/98, $500,000 par value 499,937
Repurchase Agreement 425,000
State Street Bank and Trust Company, 5.30%, dated 6/30/98,
due 7/1/98, Maturity Value $425,063 (Collateralized by $305,000
par value U.S.Treasury Note, 12.75%, due 11/15/10)
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 18.0% 925,156
- -----------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 0.6% 32,059
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 5,132,420
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
38
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE GLOBAL NATURAL RESOURCES FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
ALUMINUM - 6.8%
MAXXAM, Inc. 61,300 $ 3,478,775
- -----------------------------------------------------------------------------------------------
3,478,775
- -----------------------------------------------------------------------------------------------
ENERGY - 57.2%
Alberta Energy Company, Ltd.(1) CAD 80,000 1,876,594
Anderson Exploration, Ltd. CAD 110,000 1,271,460
Barrington Petroleum, Ltd. CAD 469,500 1,213,055
Beau Canada Exploration, Ltd. CAD 509,600 606,357
Burlington Resources, Inc.(1) 31,000 1,334,938
Calahoo Petroleum, Ltd. CAD 633,333 1,184,202
Canadian Conquest Exploration, Inc. CAD 1,243,050 802,922
Encal Energy, Ltd. CAD 660,200 2,468,876
Eurogas Corporation CAD 637,514 273,081
Occidental Petroleum Corporation(1) 47,600 1,285,200
Oiltec Resources, Ltd. CAD 1,730,000 2,470,168
Pan East Petroleum Corporation CAD 931,100 1,076,233
Petro-Canada CAD 150,000 2,406,935
Petroleum Securities Australia, Ltd. AUD 179,452 588,253
Petroleum Securities Australia, Ltd., ADR(3) 107,000 1,732,062
Place Resources Corporation, Class A CAD 676,500 1,131,525
Rigel Energy Corporation CAD 460,000 4,191,059
Vastar Resources, Inc.(1) 79,400 3,468,788
- -----------------------------------------------------------------------------------------------
29,381,708
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES - 10.2%
3DX Technologies, Inc. 194,500 316,063
Bowridge Resources Group, Inc. CAD 361,000 166,908
Computalog, Ltd. CAD 170,000 1,803,162
Enerflex Systems, Ltd.(1) CAD 68,800 1,707,428
Ryan Energy Technologies, Inc. CAD 269,000 1,271,154
- -----------------------------------------------------------------------------------------------
5,264,715
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.8%
Dundee Bancorp, Inc., Class A CAD 90,000 1,422,744
- -----------------------------------------------------------------------------------------------
1,422,744
- -----------------------------------------------------------------------------------------------
FOOD - 3.5%
Fresh Del Monte Produce, Inc. 95,400 1,806,638
- -----------------------------------------------------------------------------------------------
1,806,638
- -----------------------------------------------------------------------------------------------
GOLD MINING - 5.2%
Altoro Gold Corporation CAD 141,667 25,526
Conquistador Mines, Ltd. CAD 49,537 30,313
Conquistador Mines, Ltd., Restricted(4),(5) CAD 402,188 200,991
Etruscan Resources, Inc. CAD 438,600 1,171,986
Guyanor Resources, S.A., Class B CAD 170,600 208,791
Minera Andes, Inc. CAD 517,390 386,965
Randgold Resources, Ltd., GDR(3) 60,600 325,725
St. Jude Resources, Ltd. CAD 291,000 308,659
- -----------------------------------------------------------------------------------------------
2,658,956
- -----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OTHER BASE METALS - 1.9%
Farallon Resources, Ltd. CAD 490,000 $ 972,837
- -----------------------------------------------------------------------------------------------
972,837
- -----------------------------------------------------------------------------------------------
PAPER & FOREST - 7.2%
Fletcher Challenge Canada, Ltd.(1) CAD 112,600 1,565,643
Fletcher Challenge Paper, Ltd.(1) NZD 1,150,000 1,277,505
The TimberWest Timber Trust CAD 470,000 846,847
- -----------------------------------------------------------------------------------------------
3,689,995
- -----------------------------------------------------------------------------------------------
PLATINUM GROUP METALS - 0.7%
African Minerals, Ltd., Restricted(4),(5) 690,000 345,000
- -----------------------------------------------------------------------------------------------
345,000
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL COMMON STOCK - 95.5% (Cost: $60,188,170) 49,021,368
- -----------------------------------------------------------------------------------------------
<CAPTION>
PAR VALUE
- -----------------------------------------------------------------------------------------------
CONVERTIBLE BONDS
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Randgold and Exploration Company, Ltd.,
7.00%, Due 10/3/01(1) 750,000 390,000
- -----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 0.8% (Cost: $750,000) 390,000
<CAPTION>
FOREIGN CURRENCY(2) WARRANTS VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WARRANTS
- -----------------------------------------------------------------------------------------------
Anooraq Resources Corporation, Ltd., Warrants,
Strike CAD2.38, Expire 10/10/98(4),(6) CAD 65,000 114
Brazilian Resources, Inc., 1/2 Warrants,
Strike CAD0.50, Expire 3/4/99(4),(6) CAD 122,436 6,078
Etruscan Resources, Ltd., Warrants,
Strike CAD8.475, Expire 4/23/99(4),(6) CAD 420,000 51,684
Solomon Resources, Ltd., 1/2 Warrants,
Strike CAD1.05, Expire 7/19/98(4),(6) CAD 75,000 0
St. Jude Resources, Ltd., 1/2 Warrants,
Strike CAD3.75, Expire 3/27/99(4),(6) CAD 82,500 11,406
Sutton Resources, Ltd., Warrants,
Strike CAD21.928, Expire 9/30/98(4),(6) CAD 26,100 10,204
- -----------------------------------------------------------------------------------------------
TOTAL WARRANTS - 0.1% (Cost: $970,302) 79,486
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 96.4% (Cost: $61,908,472) 49,490,854
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 3.6% 1,847,282
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $51,338,136
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
39
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE GROWTH & INCOME FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
AEROSPACE - 1.5%
Alliant Techsystems, Inc. 62,500 $ 3,953,125
- -----------------------------------------------------------------------------------------------
3,953,125
- -----------------------------------------------------------------------------------------------
AUTOMOBILES AND OTHER MOTOR VEHICLES - 1.4%
Ford Motor Company(1) 62,500 3,687,500
- -----------------------------------------------------------------------------------------------
3,687,500
- -----------------------------------------------------------------------------------------------
BANKS - 3.1%
Compass Bancshares, Inc.(1) 66,500 3,000,812
Mellon Bank Corporation(1) 45,000 3,133,125
Richmond County Financial Corporation(1) 104,700 1,956,581
- -----------------------------------------------------------------------------------------------
8,090,518
- -----------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.0%
Genzyme Corporation 80,000 2,045,000
Millenium Pharmaceuticals, Inc. 50,000 706,250
- -----------------------------------------------------------------------------------------------
2,751,250
- -----------------------------------------------------------------------------------------------
BUSINESS SERVICES - 0.8%
Cendant Corporation 70,000 1,461,250
U-Ship, Inc., Restricted(4),(5) 570,000 570,000
- -----------------------------------------------------------------------------------------------
2,031,250
- -----------------------------------------------------------------------------------------------
CLOTHING/RETAIL - 3.0%
Kmart Corporation 160,000 3,080,000
Pier 1 Imports, Inc.(1) 85,000 2,029,375
The Dress Barn, Inc. 117,300 2,917,837
- -----------------------------------------------------------------------------------------------
8,027,212
- -----------------------------------------------------------------------------------------------
COMMUNICATION SERVICES - 0.8%
Nextel Communications, Inc., Class A 85,000 2,114,375
- -----------------------------------------------------------------------------------------------
2,114,375
- -----------------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 0.7%
EMC Corporation 40,000 1,792,500
- -----------------------------------------------------------------------------------------------
1,792,500
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 4.9%
Computer Associates International, Inc.(1) 37,500 2,083,594
Egghead.com, Inc. 300,000 2,531,250
Electronics for Imaging, Inc. 65,000 1,373,125
INTERSOLV, Inc. 125,000 2,007,812
Macromedia, Inc. 120,000 2,242,500
Xylan Corporation 90,000 2,683,125
- -----------------------------------------------------------------------------------------------
12,921,406
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES - 4.4%
Compuware Corporation 80,000 4,090,000
FileNet Corporation 165,000 4,764,375
SunGard Data Systems, Inc. 75,000 2,878,125
- -----------------------------------------------------------------------------------------------
11,732,500
- -----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 3.9%
CompUSA, Inc. 80,000 1,445,000
Dayton Hudson Corporation(1) 60,000 2,910,000
Fruit of the Loom, Inc., Class A 55,000 1,825,312
Nike, Inc., Class B(1) 47,500 2,312,656
PETsMART, Inc. 180,000 1,800,000
- -----------------------------------------------------------------------------------------------
10,292,968
- -----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
DATA PROCESSING SERVICES - 2.6%
Ascend Communications, Inc. 70,000 3,469,375
FORE Systems, Inc. 125,000 3,312,500
- -----------------------------------------------------------------------------------------------
6,781,875
- -----------------------------------------------------------------------------------------------
ENERGY - 2.1%
Pioneer Natural Resources Company(1) 109,499 2,614,289
Burlington Resources, Inc.(1) 70,000 3,014,375
- -----------------------------------------------------------------------------------------------
5,628,664
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES - 2.8%
BJ Services Company 85,000 2,470,312
Cooper Cameron Corporation 35,000 1,785,000
EVI Weatherford, Inc. 30,000 1,113,750
Input/Output, Inc. 115,000 2,048,438
- -----------------------------------------------------------------------------------------------
7,417,500
- -----------------------------------------------------------------------------------------------
ENVIRONMENTAL SERVICES - 1.2%
Waste Management, Inc.(1) 90,000 3,150,000
- -----------------------------------------------------------------------------------------------
3,150,000
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 2.5%
Marsh & McLennan Companies, Inc.(1) 41,250 2,493,047
The Bear Stearns Companies, Inc.(1) 50,000 2,843,750
The FINOVA Group, Inc.(1) 25,000 1,415,625
- -----------------------------------------------------------------------------------------------
6,752,422
- -----------------------------------------------------------------------------------------------
FOOD RETAIL/WHOLESALE - 4.0%
BJ's Wholesale Club, Inc. 85,000 3,453,125
Cadbury Schweppes plc(1) GBP 200,000 3,093,584
U.S. Foodservice, Inc. 85,000 2,980,312
Zapata Corporation(1) 100,000 987,500
- -----------------------------------------------------------------------------------------------
10,514,521
- -----------------------------------------------------------------------------------------------
HEALTHCARE SERVICES - 0.5%
PhyCor, Inc. 85,000 1,407,813
- -----------------------------------------------------------------------------------------------
1,407,813
- -----------------------------------------------------------------------------------------------
HEALTHCARE/HMO - 3.5%
Beverly Enterprises, Inc. 180,000 2,486,250
BMJ Medical Management, Inc. 125,000 562,500
Sabratek Corporation 120,000 2,730,000
United HealthCare Corporation(1) 57,500 3,651,250
- -----------------------------------------------------------------------------------------------
9,430,000
- -----------------------------------------------------------------------------------------------
HOME BUILDING - 1.3%
Oakwood Homes Corporation(1) 115,000 3,450,000
- -----------------------------------------------------------------------------------------------
3,450,000
- -----------------------------------------------------------------------------------------------
HOSPITALS - 2.3%
Columbia/HCA Healthcare Corporation(1) 80,000 2,330,000
Sunrise Assisted Living, Inc. 110,000 3,781,250
- -----------------------------------------------------------------------------------------------
6,111,250
- -----------------------------------------------------------------------------------------------
INSURANCE - 2.9%
American General Corporation(1) 60,000 4,271,250
Core Cap, Inc., Class A, Restricted(4),(5) 75,000 1,500,000
Core Cap, Inc., Series A Preferred, Restricted(4),(5) 75,000 1,875,000
- -----------------------------------------------------------------------------------------------
7,646,250
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
40
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT MANAGEMENT - 1.2%
Merrill Lynch & Companies, Inc.(1) 35,000 3,228,750
- -----------------------------------------------------------------------------------------------
3,228,750
- -----------------------------------------------------------------------------------------------
MANUFACTURING - 3.4%
General Electric Company(1) 25,000 2,275,000
Simpson Manufacturing Company, Inc. 109,900 4,244,888
Walter Industries, Inc. 140,000 2,651,250
- -----------------------------------------------------------------------------------------------
9,171,138
- -----------------------------------------------------------------------------------------------
MEDIA - 9.5%
CBS Corporation(1) 60,000 1,905,000
Comcast Corporation, Class A(1) 75,000 3,044,531
Cox Communications, Inc., Class A 70,000 3,390,625
Liberty Media Group, Series A 95,000 3,687,188
MediaOne Group, Inc. 125,000 5,492,187
Tele-Communications TCI Ventures Group Series A 169,999 3,410,605
Tele-Communications, Inc., Group Series A 110,000 4,228,125
- -----------------------------------------------------------------------------------------------
25,158,261
- -----------------------------------------------------------------------------------------------
NETWORK SYSTEMS - 0.4%
Aware, Inc. 100,000 1,131,250
- -----------------------------------------------------------------------------------------------
1,131,250
- -----------------------------------------------------------------------------------------------
PHARMACEUTICALS - 0.9%
ALZA Corporation 52,500 2,270,625
- -----------------------------------------------------------------------------------------------
2,270,625
- -----------------------------------------------------------------------------------------------
R.E.I.T. - 1.3%
Capital Automotive REIT(1) 100,000 1,418,750
Equity One, Inc.(1) 75,000 768,750
FBR Asset Investment Corporation, 144A(4),(7) 75,000 1,387,500
- -----------------------------------------------------------------------------------------------
3,575,000
- -----------------------------------------------------------------------------------------------
SEMICONDUCTORS - 0.8%
Intel Corporation(1) 30,000 2,223,750
- -----------------------------------------------------------------------------------------------
2,223,750
- -----------------------------------------------------------------------------------------------
SHIPPING - 0.8%
Nordic American Tanker Shipping, Ltd.(1) 148,700 2,239,794
- -----------------------------------------------------------------------------------------------
2,239,794
- -----------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 3.1%
Crompton & Knowles Corporation(1) 70,000 1,763,125
E.I. Du Pont de Nemours and Company(1) 40,000 2,985,000
Monsanto Company(1) 35,000 1,955,625
W.R. Grace & Company 95,000 1,620,938
- -----------------------------------------------------------------------------------------------
8,324,688
- -----------------------------------------------------------------------------------------------
SPECIALTY RETAIL - 0.4%
Genesis Direct, Inc. 100,000 1,112,500
- -----------------------------------------------------------------------------------------------
1,112,500
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES - 4.7%
Cincinnati Bell, Inc.(1) 80,000 2,290,000
COMSAT Corporation(1) 95,000 2,689,688
Frontier Corporation(1) 90,000 2,835,000
GTE Corporation(1) 55,000 3,059,375
Paging Network, Inc. 125,000 1,750,000
- -----------------------------------------------------------------------------------------------
12,624,063
- -----------------------------------------------------------------------------------------------
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TELECOMMUNICATIONS EQUIPMENT - 1.7%
Sprint Corporation(1) 35,000 2,467,500
IWL Communications, Inc. 224,000 1,974,000
- -----------------------------------------------------------------------------------------------
4,441,500
- -----------------------------------------------------------------------------------------------
TEXTILES - 1.3%
Shaw Industries, Inc.(1) 200,000 3,525,000
- -----------------------------------------------------------------------------------------------
3,525,000
- -----------------------------------------------------------------------------------------------
TRANSPORTATION - 2.8%
Genesee & Wyoming, Inc., Class A 112,500 2,137,500
Kansas City Southern Industries, Inc.(1) 65,000 3,225,625
Royal Caribbean Cruises, Ltd.(1) 25,000 1,987,500
- -----------------------------------------------------------------------------------------------
7,350,625
- -----------------------------------------------------------------------------------------------
UTILITIES - 1.3%
The Williams Companies, Inc.(1) 100,000 3,375,000
- -----------------------------------------------------------------------------------------------
3,375,000
- -----------------------------------------------------------------------------------------------
UTILITIES/ELECTRIC - 1.0%
Southern Company(1) 100,000 2,768,750
- -----------------------------------------------------------------------------------------------
2,768,750
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 85.8% (Cost: $195,922,096) 228,205,589
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS
- -----------------------------------------------------------------------------------------------
COPPER & GOLD MINING - 0.5%
Freeport Mcmoran, Inc. 70,000 1,365,000
- -----------------------------------------------------------------------------------------------
1,365,000
- -----------------------------------------------------------------------------------------------
DATA TELECOMMUNICATIONS - 0.9%
CellNet Funding LLC, 7.00%, Expires 12/31/49 102,200 2,376,150
- -----------------------------------------------------------------------------------------------
2,376,150
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 0.4%
Conseco Financial Trust, Inc., 7.00%,
Expires 2/16/01, Series F 20,000 1,060,000
- -----------------------------------------------------------------------------------------------
1,060,000
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 1.3%
IXC Communications, Inc., 7.25%,
Expires 3/31/07, Series 144A(4),(7) 16,000 3,408,000
- -----------------------------------------------------------------------------------------------
3,408,000
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS & MEDIA - 1.9%
Houston Industries, Inc., 7.00%, Expires 7/1/00 37,500 2,793,750
Metromedia International Group, Inc., 7.25%,
Expires 12/31/49 45,000 2,317,500
- -----------------------------------------------------------------------------------------------
5,111,250
- -----------------------------------------------------------------------------------------------
TRANSPORTATION - 3.3%
Trans World Airlines, Inc., 4.625%, Expires 12/31/49 10,000 765,000
Trans World Airlines, Inc., 4.625%, Expires
12/31/49, Series 144A(4),(7) 40,000 3,060,000
Trans World Airlines, Inc., 8.00%, Expires 12/31/49 127,000 4,889,500
- -----------------------------------------------------------------------------------------------
8,714,500
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
41
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE GROWTH & INCOME FUND -- CONTINUED
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) VALUE
- -----------------------------------------------------------------------------------------------
<S> <C>
TOTAL CONVERTIBLE PREFERRED STOCKS-8.3% (Cost: $18,099,036) 22,034,900
<CAPTION>
PAR VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
CONVERTIBLE BONDS
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 2.3%
System Software & Associates, Inc., 7.00%,
Due 9/15/02(4) 4,800,000 3,864,000
Telecommunications International, Inc.,
4.50%, Due 2/15/06 2,500,000 2,306,250
- -----------------------------------------------------------------------------------------------
6,170,250
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES - 0.1%
Halter Marine Corporation, 4.50%, Due 9/15/04 250,000 202,813
- -----------------------------------------------------------------------------------------------
202,813
- -----------------------------------------------------------------------------------------------
HEALTHCARE/MEDICAL TECHNOLOGY/HMO - 1.2%
Alternative Living Services, Inc., 5.25%,
Due 12/15/02(4) 800,000 899,000
Assisted Living Concepts, Inc., 6.00%,
Due 11/1/02(4) 500,000 512,030
Sabratek Corporation, 144A, 6.00%,
Due 4/15/05(4),(7) 2,150,000 1,773,750
- -----------------------------------------------------------------------------------------------
3,184,780
- -----------------------------------------------------------------------------------------------
HOSPITALS - 0.1%
Sunrise Assisted Living, Inc., 5.50%,
Due 6/15/02 100,000 110,094
- -----------------------------------------------------------------------------------------------
110,094
- -----------------------------------------------------------------------------------------------
MEDICAL SERVICES - 0.8%
American Retirement Corporation, 5.75%,
Due 10/1/02 1,400,000 1,341,634
Renal Treatment Centers, Inc., 5.625%, 144A,
Due 7/15/06(4),(7) 500,000 729,375
- -----------------------------------------------------------------------------------------------
2,071,009
- -----------------------------------------------------------------------------------------------
OIL/GAS DRILLING - 0.7%
Key Energy Group, Inc., 4.00%, Due 9/15/04(4) 2,500,000 1,935,950
- -----------------------------------------------------------------------------------------------
1,935,950
- -----------------------------------------------------------------------------------------------
TOTAL CONVERTIBLE BONDS - 5.2% (Cost: $14,137,245) 13,674,896
<CAPTION>
CONTRACTS VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
CALL OPTIONS
- -----------------------------------------------------------------------------------------------
The Coca Cola Company, Strike 85, Expire 8/22/98(6) 500 $193,750
The Coca Cola Company, Strike 90, Expire 8/22/98(6) 500 71,875
Sun Microsystems, Inc., Strike 45, Expire 7/18/98(6) 1,000 87,500
- -----------------------------------------------------------------------------------------------
TOTAL CALL OPTIONS - 0.1% (Cost: $443,498) 353,125
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.4% (Cost: $228,601,875) 264,268,510
- -----------------------------------------------------------------------------------------------
DEPOSITS WITH BROKERS AND CUSTODIAN BANK FOR SECURITIES SOLD SHORT
- -----------------------------------------------------------------------------------------------
Cash 2,914,349
- -----------------------------------------------------------------------------------------------
TOTAL DEPOSITS WITH BROKERS AND
CUSTODIAN BANK FOR SECURITIES SOLD SHORT - 1.1% 2,914,349
<CAPTION>
JUNE 30, 1998 (UNAUDITED) VALUE
- -----------------------------------------------------------------------------------------------
<S> <C>
RECEIVABLE FROM BROKERS FOR SECURITIES SOLD SHORT - 1.0% $2,675,498
- -----------------------------------------------------------------------------------------------
SECURITIES SOLD SHORT - (0.6)% (Proceeds: $2,675,498) (1,462,500)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.9)% (2,437,356)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $265,958,501
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
SCHEDULE OF SECURITIES SOLD SHORT
<CAPTION>
JUNE 30,1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
MEDICAL INSTRUMENTS AND DEVICES
- -----------------------------------------------------------------------------------------------
Inhale Therapeutic Systems, Inc. 15,000 $ 371,250
- -----------------------------------------------------------------------------------------------
TOTAL SHORT COMMON STOCK - 0.2% (Proceeds: $382,112) 371,250
- -----------------------------------------------------------------------------------------------
<CAPTION>
CONTRACTS VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
SHORT PUT OPTIONS
- -----------------------------------------------------------------------------------------------
The PHLX/KBW Bank Index, Strike 825, Expire 7/18/98(6) 650 438,750
The NASDAQ 100 Index, Strike 1200,
Expire 7/18/98(6) 300 67,500
The NASDAQ 100 Index, Strike 1220,
Expire 7/18/98(6) 600 187,500
The NASDAQ 100 Index, Strike 1240,
Expire 7/18/98(6) 400 210,000
- -----------------------------------------------------------------------------------------------
TOTAL SHORT PUT OPTIONS - 0.3% (Proceeds: $2,150,328) 903,750
- -----------------------------------------------------------------------------------------------
SHORT CALL OPTIONS
- -----------------------------------------------------------------------------------------------
Dupont, Inc., Strike 75, Expire 7/18/98(6) 750 187,500
- -----------------------------------------------------------------------------------------------
TOTAL SHORT CALL OPTIONS - 0.1% (Proceeds: $143,058) 187,500
- -----------------------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT - 0.6% (Proceeds: $2,675,498) $1,462,500
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
42
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE GLOBAL VALUE FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
CONSUMER PRODUCTS & SERVICES - 5.7%
Henkel KGaA, Preferred(1) DEM 10,200 $ 1,009,061
- -----------------------------------------------------------------------------------------------
1,009,061
- -----------------------------------------------------------------------------------------------
ENERGY - 9.4%
Burlington Resources, Inc.(1) 14,500 624,406
Occidental Petroleum Corporation(1) 23,900 645,300
Pennzoil Company(1) 7,600 384,750
- -----------------------------------------------------------------------------------------------
1,654,456
- -----------------------------------------------------------------------------------------------
ENTERTAINMENT - 2.9%
King World Productions, Inc. 20,000 510,000
- -----------------------------------------------------------------------------------------------
510,000
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 15.2%
Banca Carige S.p.A. ITL 75,000 670,705
Banca Intesa S.p.A.(1) ITL 85,000 475,740
Bank Austria AG(1) ATS 6,000 488,350
Bank Austria AG, Rights ATS 6,000 0
Golden West Financial Corporation(1) 10,000 1,063,125
- -----------------------------------------------------------------------------------------------
2,697,920
- -----------------------------------------------------------------------------------------------
MACHINERY - 8.0%
Alstom S.A., ADR(3) 15,000 488,438
Schindler Holding AG(1) CHF 250 380,937
Viag AG(1) DEM 800 550,669
- -----------------------------------------------------------------------------------------------
1,420,044
- -----------------------------------------------------------------------------------------------
PAPER & FOREST - 6.6%
Fletcher Challenge Canada, Ltd.(1) CAD 37,500 521,418
Fletcher Challenge Paper, Ltd.(1) NZD 580,000 644,307
- -----------------------------------------------------------------------------------------------
1,165,725
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - 12.9%
STET Hellas Telecommunications S.A., ADR(3) 16,000 664,000
Telecom Italia S.p.A., ADR1,(3) 9,000 661,500
Telefonica S.A. ESP 20,727 959,702
- -----------------------------------------------------------------------------------------------
2,285,202
- -----------------------------------------------------------------------------------------------
TRANSPORTATION - 2.4%
Brisa-Auto Estradas de Portugal S.A.(1) PTE 10,000 427,767
- -----------------------------------------------------------------------------------------------
427,767
- -----------------------------------------------------------------------------------------------
UTILITIES - 26.5%
Consolidated Edison, Inc.(1) 20,000 921,250
Kinder Morgan Energy Partners, L.P.(1) 40,000 1,445,000
Nevada Power Company(1) 20,000 515,000
Northern States Power Company(1) 24,000 687,000
Unicom Corporation(1) 32,000 1,122,000
- -----------------------------------------------------------------------------------------------
4,690,250
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 89.6% (Cost: $15,145,168) 15,860,425
- -----------------------------------------------------------------------------------------------
JUNE 30, 1998 (UNAUDITED) VALUE
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash $ 141
Repurchase Agreement 4,033,000
State Street Bank and Trust Company, 5.30%,
dated 6/30/98, due 7/1/98, maturity value $4,033,594
(collateralized by $2,895,000 par value U.S. Treasury Note,
12.75%, due 11/15/10)
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 22.8% 4,033,141
- -----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (12.4)% (2,198,808)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $ 17,694,758
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
43
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE INFORMATION AGE FUND--TM--
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
BUSINESS SERVICES - 4.6%
Apollo Group, Inc., Class A 19,950 $ 659,597
Consolidated Capital Corporation 20,000 449,687
Gartner Group, Inc., Class A 12,700 444,500
Labor Ready Inc. 49,950 1,507,866
On Assignment, Inc. 33,600 1,173,900
StaffMark, Inc. 40,000 1,465,000
- -----------------------------------------------------------------------------------------------
5,700,550
- -----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES - 1.4%
Data Processing Resources Corporation 35,000 1,087,187
The Vincam Group, Inc. 35,500 696,687
- -----------------------------------------------------------------------------------------------
1,783,874
- -----------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT & SERVICES - 9.9%
Cisco Systems, Inc. 32,800 3,019,650
Ericsson LM, ADR(1,3) 123,400 3,532,325
Tellabs, Inc. 25,400 1,819,275
WorldCom, Inc. 77,800 3,768,438
- -----------------------------------------------------------------------------------------------
12,139,688
- -----------------------------------------------------------------------------------------------
COMPUTER HARDWARE & MANUFACTURING - 7.2%
Compaq Computer Corporation(1) 35,000 993,125
Dell Computer Corporation 20,000 1,856,250
Gateway 2000, Inc. 65,000 3,290,625
Sanmina Corporation 62,000 2,689,250
- -----------------------------------------------------------------------------------------------
8,829,250
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 22.2%
BMC Software, Inc. 43,600 2,264,475
Cadence Design Systems, Inc. 25,000 781,250
Computer Associates International, Inc.(1) 12,000 666,750
Information Management Resources, Inc. 34,000 1,149,625
Legato Systems, Inc. 136,000 5,304,000
Microsoft Corporation 30,000 3,251,250
Network Associates, Inc. 94,800 4,538,550
PeopleSoft, Inc. 65,300 3,069,100
SAP AG, ADR(1,3) 20,000 4,519,860
Sapient Corporation 20,000 1,055,000
Synopsys, Inc. 16,000 732,000
- -----------------------------------------------------------------------------------------------
27,331,860
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES - 12.3%
Business Objects S.A., ADR(3) 66,400 1,120,500
CPS Systems, Inc. 126,000 763,875
Compuware Corporation 50,200 2,566,475
Concord Communications, Inc. 44,400 1,134,975
ECsoft Group plc, ADR(3) 20,700 670,162
Electronic Processing, Inc. 36,000 432,000
Excite, Inc. 8,000 748,000
FileNet Corporation 42,000 1,212,750
Genesys Telecommunications Laboratories, Inc. 27,500 909,219
GeoTel Communications Corporation 34,400 1,401,800
Mastech Corporation 39,000 1,096,875
Maximus, Inc. 8,800 253,000
PLATINUM Technology, Inc. 38,400 1,096,800
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE & SERVICES - CONTINUED
Siebel Systems, Inc. 47,000 $ 1,515,750
Smallworldwide plc, ADR(3) 8,300 241,738
- -----------------------------------------------------------------------------------------------
15,163,919
- -----------------------------------------------------------------------------------------------
DATA PROCESSING SERVICES/SYSTEM INTEGRATION - 3.5%
Envoy Corporation 12,000 568,500
International Network Services 30,000 1,230,000
Saville Systems plc, ADR(3) 18,500 927,312
Technology Solutions Company 50,000 1,584,375
- -----------------------------------------------------------------------------------------------
4,310,187
- -----------------------------------------------------------------------------------------------
DISTRIBUTION - 4.2 %
Ingram Micro, Inc., Class A 66,100 2,924,925
Tech Data Corporation 53,300 2,285,238
- -----------------------------------------------------------------------------------------------
5,210,163
- -----------------------------------------------------------------------------------------------
INTERNET COMMERCE - 7.5%
Amazon.com, Inc. 15,000 1,496,250
America Online, Inc. 50,000 5,300,000
Ameritrade Holding Corporation, Class A 35,000 945,000
CMG Information Services, Inc. 20,600 1,457,450
- -----------------------------------------------------------------------------------------------
9,198,700
- -----------------------------------------------------------------------------------------------
MEDICAL SERVICES - 1.4%
HBO & Company(1) 50,000 1,762,500
- -----------------------------------------------------------------------------------------------
1,762,500
- -----------------------------------------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT - 6.4%
Applied Materials, Inc. 110,000 3,245,000
ASM Lithography Holding N.V. 80,000 2,325,000
Novellus Systems, Inc. 66,000 2,355,375
- -----------------------------------------------------------------------------------------------
7,925,375
- -----------------------------------------------------------------------------------------------
SEMICONDUCTORS & COMPONENTS - 13.0%
Aavid Thermal Technologies, Inc. 59,000 1,725,750
Intel Corporation(1) 30,000 2,223,750
Level One Communications, Inc. 112,500 2,643,750
Linear Technology Corporation(1) 18,800 1,133,875
Maxim Integrated Products, Inc. 36,000 1,140,750
Texas Instruments, Inc.(1) 55,000 3,207,188
Vitesse Semiconductor Corporation 127,200 3,927,300
- -----------------------------------------------------------------------------------------------
16,002,363
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 93.6% (Cost $88,555,410) 115,358,429
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash 926
Repurchase Agreement 4,972,000
State Street Bank and Trust Company, 5.30%, dated 6/30/98,
due 7/1/98, maturity value $4,972,732 (collateralized by
$3,570,000 par value U.S. Treasury Note, 12.75%, due 11/15/10)
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 4.0% 4,972,926
- -----------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 2.4% 2,885,979
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $123,217,334
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
44
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE MICROCAP GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
BIOTECHNOLOGY - 1.6%
Enzon, Inc. 50,000 $ 318,750
LifeCell Corporation 265,000 1,623,125
- -----------------------------------------------------------------------------------------------
1,941,875
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
BROADCAST/RADIO/TV - 2.4%
Medialink Worldwide, Inc. 145,000 3,045,000
- -----------------------------------------------------------------------------------------------
3,045,000
- -----------------------------------------------------------------------------------------------
CHEMICALS - 0.7%
Eco Soil Systems, Inc. 80,000 840,000
- -----------------------------------------------------------------------------------------------
840,000
- -----------------------------------------------------------------------------------------------
CLOTHING-RETAIL - 1.8%
Happy Kids, Inc. 62,000 852,500
I.C. Isaacs & Company, Inc. 150,000 525,000
Steven Madden, Ltd. 75,000 867,188
- -----------------------------------------------------------------------------------------------
2,244,688
- -----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES - 11.4%
Abacus Direct Corporation 35,000 1,817,812
Coinstar, Inc. 140,000 1,295,000
Cornell Corrections, Inc. 140,000 2,940,000
Dispatch Management Services Corporation 65,000 1,633,125
National Research Corporation 85,000 775,625
Novacare Employee Services Corporation 260,000 2,470,000
Staff Leasing, Inc. 65,000 1,917,500
Vivid Technologies, Inc. 115,000 1,322,500
- -----------------------------------------------------------------------------------------------
14,171,562
- -----------------------------------------------------------------------------------------------
COMPUTER HARDWARE/COMPONENTS - 1.3%
Cybex Corporation 70,000 1,610,000
- -----------------------------------------------------------------------------------------------
1,610,000
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 10.2%
Credit Management Solutions, Inc. 125,000 765,625
InterVU, Inc. 55,000 825,000
Medirisk, Inc. 70,000 1,417,500
Peerless Systems Corporation 45,000 933,750
Pervasive Software, Inc. 160,000 1,660,000
QuadraMed Corporation 70,000 1,911,875
Rogue Wave Software, Inc. 75,000 590,625
SEEC, Inc. 130,000 1,413,750
Summit Design, Inc. 110,000 1,615,625
Think New Ideas, Inc. 60,000 1,567,500
- -----------------------------------------------------------------------------------------------
12,701,250
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE/SERVICES - 2.9%
Faroudja, Inc. 250,000 2,125,000
Prism Solutions, Inc. 90,000 405,000
Vista Information Solutions, Inc. 140,000 1,067,500
- -----------------------------------------------------------------------------------------------
3,597,500
- -----------------------------------------------------------------------------------------------
CONSULTING SERVICES - 2.7%
Superior Consultant Holdings Corporation 60,000 2,587,500
Tier Technologies, Inc. 44,200 787,313
- -----------------------------------------------------------------------------------------------
3,374,813
- -----------------------------------------------------------------------------------------------
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 19.0%
1-800 CONTACTS, Inc. 45,000 $ 686,250
800-JR Cigar, Inc. 75,000 1,481,250
Ashworth, Inc. 125,000 1,734,375
Balance Bar Company 50,000 718,750
Chattem, Inc. 70,000 1,872,500
Cost Plus, Inc. 60,100 1,787,975
Delia's, Inc. 80,000 1,250,000
Enamelon, Inc. 160,000 1,120,000
Gadzooks, Inc. 25,000 689,063
Hot Topic, Inc. 88,100 2,092,375
Krause's Furniture, Inc. 395,000 1,036,875
Party City Corporation 55,000 1,615,625
Rainbow Rentals, Inc. 130,000 1,381,250
Rent-Way, Inc. 65,000 1,982,500
Signature Eyewear, Inc. 125,000 1,046,875
Track n' Trail, Inc. 180,000 855,000
U.S. Home & Garden, Inc. 345,000 2,220,938
- -----------------------------------------------------------------------------------------------
23,571,600
- -----------------------------------------------------------------------------------------------
DATA PROCESSING SERVICES - 1.7%
Inspire Insurance Solutions, Inc. 65,000 2,161,250
- -----------------------------------------------------------------------------------------------
2,161,250
- -----------------------------------------------------------------------------------------------
EDUCATION & TRAINING - 1.3%
Career Education Corporation 65,000 1,592,500
- -----------------------------------------------------------------------------------------------
1,592,500
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 0.5%
Rock Financial Corporation(1) 65,000 666,250
- -----------------------------------------------------------------------------------------------
666,250
- -----------------------------------------------------------------------------------------------
HEALTH CARE SERVICES - 6.1%
Horizon Health Corporation 85,000 1,487,500
MedQuist, Inc. 100,000 2,887,500
Res-Care, Inc. 70,000 1,290,625
Theratech, Inc. 190,000 1,923,750
- -----------------------------------------------------------------------------------------------
7,589,375
- -----------------------------------------------------------------------------------------------
INSURANCE - 1.3%
Annuity and Life Re (holdings) 75,000 1,659,375
- -----------------------------------------------------------------------------------------------
1,659,375
- -----------------------------------------------------------------------------------------------
LODGING - 1.9%
Execustay Corporation 200,000 2,350,000
- -----------------------------------------------------------------------------------------------
2,350,000
- -----------------------------------------------------------------------------------------------
MACHINERY-GENERAL INDUSTRIAL - 0.3%
Iteq, Inc. 55,000 409,063
- -----------------------------------------------------------------------------------------------
409,063
- -----------------------------------------------------------------------------------------------
MANUFACTURING - 4.0%
CN Biosciences, Inc. 75,000 1,875,000
FARO Technologies, Inc. 165,000 1,742,813
ZEVEX International, Inc. 185,000 1,318,125
- -----------------------------------------------------------------------------------------------
4,935,938
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
45
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS--THE MICROCAP GROWTH FUND--CONTINUED
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL INSTRUMENTS & DEVICES - 4.3%
Bioanalytical Systems, Inc. 100,000 $ 700,000
Closure Medical Corporation 80,000 1,990,000
Molecular Devices Corporation 100,000 1,612,500
Photoelectron Corporation 120,000 1,020,000
- -----------------------------------------------------------------------------------------------
5,322,500
- -----------------------------------------------------------------------------------------------
MISCELLANEOUS - 2.3%
American Coin Merchandising, Inc. 95,000 1,876,250
Ultralife Batteries, Inc. 120,000 1,020,000
- -----------------------------------------------------------------------------------------------
2,896,250
- -----------------------------------------------------------------------------------------------
NETWORK SYSTEMS - 1.1%
Performance Technologies, Inc. 120,000 1,350,000
- -----------------------------------------------------------------------------------------------
1,350,000
- -----------------------------------------------------------------------------------------------
PHARMACEUTICALS - 2.4%
Kendle International, Inc. 25,000 756,250
Medicis Pharmaceutical Corporation, Class A 35,000 1,277,500
Microcide Pharmaceuticals, Inc. 140,000 936,250
- -----------------------------------------------------------------------------------------------
2,970,000
- -----------------------------------------------------------------------------------------------
RESTAURANTS - 3.1%
Garden Fresh Restaurant Corporation 110,000 1,980,000
PJ America, Inc. 70,000 1,277,500
Shells Seafood Restaurants, Inc. 30,000 337,500
Star Buffet, Inc. 27,500 226,875
- -----------------------------------------------------------------------------------------------
3,821,875
- -----------------------------------------------------------------------------------------------
SEMICONDUCTORS - 4.1%
American Xtal Technology, Inc. 60,000 862,500
Cerprobe Corporation 130,000 1,706,250
QLogic Corporation 43,000 1,534,563
RF Monolithics, Inc. 90,000 1,001,250
- -----------------------------------------------------------------------------------------------
5,104,563
- -----------------------------------------------------------------------------------------------
TELECOMMUNICATIONS SERVICES - 5.1%
IWL Communications, Inc. 145,000 1,277,813
Metro One Telecommunications 130,000 1,023,750
Powerwave Technologies, Inc. 65,000 1,088,750
Premiere Technologies, Inc. 20,000 165,938
Transaction Network Services, Inc. 130,000 2,738,125
- -----------------------------------------------------------------------------------------------
6,294,375
- -----------------------------------------------------------------------------------------------
TRANSPORTATION - 1.6%
Atlantic Coast Airlines, Inc. 65,000 1,950,000
- -----------------------------------------------------------------------------------------------
1,950,000
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 95.1% (Cost $111,913,511) 118,171,600
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash 215
Repurchase Agreement 6,467,000
State Street Bank and Trust Company, 5.30%, dated 6/30/98,
due 7/1/98, maturity value $6,467,952 (collateralized by
$4,640,000 par value U.S. Treasury Note, 12.75%, due 11/15/10)
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 5.2% 6,467,215
- -----------------------------------------------------------------------------------------------
JUNE 30, 1998 (UNAUDITED) VALUE
- -----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.3)% $(360,590)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $124,278,225
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
46
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE PARTNERS FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
ALUMINUM - 5.4%
MAXXAM, Inc. 121,500 $6,895,125
- -----------------------------------------------------------------------------------------------
6,895,125
- -----------------------------------------------------------------------------------------------
CLOSED-END FUNDS - 0.4%
Cathay Investment Fund, Ltd.(1) HKD 525,000 452,259
- -----------------------------------------------------------------------------------------------
452,259
- -----------------------------------------------------------------------------------------------
CONSUMER/BUSINESS SERVICES - 2.5%
Poligrafici Editoriale S.p.A.(1) ITL 1,110,000 3,239,053
- -----------------------------------------------------------------------------------------------
3,239,053
- -----------------------------------------------------------------------------------------------
CONSTRUCTION/INFRASTRUCTURE - 6.2%
Giant Cement Holding, Inc. 100,000 2,862,500
Medusa Corporation1 40,000 2,510,000
Monterey Homes Corporation 136,500 2,491,125
- -----------------------------------------------------------------------------------------------
7,863,625
- -----------------------------------------------------------------------------------------------
DISTRIBUTION - 2.0%
SunSource, Inc.(1) 119,600 2,601,300
- -----------------------------------------------------------------------------------------------
2,601,300
- -----------------------------------------------------------------------------------------------
ENERGY - 16.0%
Alliance Energy, Inc., 144A(7) CAD 1,500,000 458,949
Best Pacific Resources, Ltd. CAD 1,500,000 892,402
Calahoo Petroleum, Ltd. CAD 248,466 464,580
Canadian Conquest Exploration, Inc. CAD 3,836,450 2,478,074
Houston Exploration Company 78,500 1,800,594
Howell Corporation(1) 256,100 2,785,088
Oiltec Resources, Ltd., 144A(7) CAD 1,540,000 2,198,878
Petsec Energy, Ltd., ADR(3) 235,000 3,804,063
Place Resources Corporation, Class A CAD 669,200 1,119,315
Rigel Energy Corporation CAD 109,900 1,001,299
Symmetry Resources, Inc. CAD 147,400 110,243
Symmetry Resources, Inc., 144A(7) CAD 1,962,500 1,467,789
Torrington Resources, Ltd. CAD 926,100 1,889,036
- -----------------------------------------------------------------------------------------------
20,470,310
- -----------------------------------------------------------------------------------------------
ENERGY SERVICES - 8.3%
Bowridge Resource Group, Inc., 144A(7) CAD 1,000,000 462,349
Bowridge Resource Group, Inc. CAD 700,000 323,644
Computalog, Ltd. CAD 115,900 1,229,332
Enerflex Systems, Ltd.(1) CAD 112,000 2,779,535
NQL Drilling Tools, Inc., Class A, 144A(7) CAD 175,000 1,070,882
NQL Drilling Tools, Inc., Class A CAD 188,900 1,155,941
Northstar Drilling Systems, Inc., 144A(7) CAD 375,000 637,430
Northstar Drilling Systems, Inc. CAD 100,000 169,981
Pason Systems, Inc. CAD 560,300 2,723,879
- -----------------------------------------------------------------------------------------------
10,552,973
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 10.8%
Banca Populare Di Intra(1) ITL 325,000 4,060,530
Electro Rent Corporation(1) 103,400 2,320,037
Imperial Credit Industries, Inc.(1) 92,500 2,173,750
Imperial Credit Commercial
Mortgage Investment Corporation(1) 398,000 5,198,875
- -----------------------------------------------------------------------------------------------
13,753,192
- -----------------------------------------------------------------------------------------------
JUNE 30, 1998 (UNAUDITED) FOREIGN CURRENCY(2) SHARES VALUE
- -----------------------------------------------------------------------------------------------
FOOD - 9.0%
Fresh Del Monte Produce, Inc. 340,000 $6,438,750
Kamps AG DEM 175,000 5,043,367
- -----------------------------------------------------------------------------------------------
11,482,117
- -----------------------------------------------------------------------------------------------
HOLDING COMPANIES, DIVERSIFIED - 1.0%
Craig Corporation 56,800 628,350
Jascan Resources, Inc. CAD 854,500 639,096
- -----------------------------------------------------------------------------------------------
1,267,446
- -----------------------------------------------------------------------------------------------
INSURANCE - 6.4%
CorVel Corporation 52,500 2,047,500
Desjardins Laurentian Financial
Corporation, Class A(1) CAD 200,000 3,188,849
PAULA Financial(1) 145,000 2,918,125
- -----------------------------------------------------------------------------------------------
8,154,474
- -----------------------------------------------------------------------------------------------
MANUFACTURING - 7.8%
CIN - Corporacao Industrial do Norte SA(1) PTE 33,200 2,461,056
Denison International plc, ADR(3) 122,500 2,419,375
Optek Technology, Inc. 75,300 1,440,113
Stoneridge, Inc. 72,000 1,314,000
TB Wood's Corporation(1) 112,500 2,362,500
- -----------------------------------------------------------------------------------------------
9,997,044
- -----------------------------------------------------------------------------------------------
MISCELLANEOUS - 0.9%
Loews Cineplex Entertainment Corporation 27,030 346,322
Lusomundo - Sociedade Gestora de
Participacoes Sociais, Preferred SA PTE 40,400 532,891
Reading Entertainment, Inc. 17,000 216,750
- -----------------------------------------------------------------------------------------------
1,095,963
- -----------------------------------------------------------------------------------------------
PAPER & FOREST - 1.7%
The TimberWest Timber Trust CAD 1,200,000 2,162,162
- -----------------------------------------------------------------------------------------------
2,162,162
- -----------------------------------------------------------------------------------------------
REAL ESTATE - 6.1%
Canadian Hotel Income Properties REIT(1) CAD 610,500 4,981,132
Prima Inmobiliaria SA ESP 333,066 2,816,786
- -----------------------------------------------------------------------------------------------
7,797,918
- -----------------------------------------------------------------------------------------------
RETAIL - 2.8%
The T. Eaton Company Limited(1) CAD 350,000 3,569,607
- -----------------------------------------------------------------------------------------------
3,569,607
- -----------------------------------------------------------------------------------------------
TRANSPORTATION EQUIPMENT/SERVICES - 6.3%
Midas, Inc.(1) 260,000 5,232,500
Pittston BAX Group(1) 183,400 2,854,163
- -----------------------------------------------------------------------------------------------
8,086,663
- -----------------------------------------------------------------------------------------------
UTILITIES - 4.1%
Aquila Gas Pipeline Corporation(1) 425,100 5,207,475
- -----------------------------------------------------------------------------------------------
5,207,475
- -----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS - 97.7% (Cost: $119,045,895) 124,648,706
- -----------------------------------------------------------------------------------------------
PREFERRED STOCKS
- -----------------------------------------------------------------------------------------------
HOLDING COMPANIES, DIVERSIFIED - 0.7%
Craig Corporation, Non - Cumulative, Class A 72,800 814,450
- -----------------------------------------------------------------------------------------------
814,450
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
47
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE PARTNERS FUND -- CONTINUED
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TOTAL PREFERRED STOCKS - 0.7% (Cost: $910,029) $814,450
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 98.4% (Cost: $119,955,924) 125,463,156
- -----------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS
- -----------------------------------------------------------------------------------------------
Cash 3,814
- -----------------------------------------------------------------------------------------------
TOTAL CASH AND CASH EQUIVALENTS - 0.0% 3,814
- -----------------------------------------------------------------------------------------------
OTHER ASSETS, NET - 1.6% 2,099,446
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $127,566,416
- -----------------------------------------------------------------------------------------------
</TABLE>
See notes to Schedule of Investments on page 49.
The accompanying notes are an integral part of these financial statements.
48
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS -- THE VALUE + GROWTH FUND
<TABLE>
<CAPTION>
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
- -----------------------------------------------------------------------------------------------
COMMERCIAL SERVICES - 2.9%
Omnicare, Inc.(1) 243,300 $9,275,812
Robert Half International, Inc. 217,300 12,141,638
- -----------------------------------------------------------------------------------------------
21,417,450
- -----------------------------------------------------------------------------------------------
COMPUTER HARDWARE & COMPONENTS - 4.6%
Compaq Computer Corporation(1) 704,000 19,976,000
Seagate Technology, Inc. 600,000 14,287,500
- -----------------------------------------------------------------------------------------------
34,263,500
- -----------------------------------------------------------------------------------------------
COMPUTER SOFTWARE - 5.4%
Cadence Design Systems, Inc. 170,000 5,312,500
Microsoft Corporation 250,100 27,104,587
PeopleSoft, Inc. 160,000 7,520,000
- -----------------------------------------------------------------------------------------------
39,937,087
- -----------------------------------------------------------------------------------------------
CONSUMER & SPECIALTY RETAIL - 22.7%
Bed Bath and Beyond, Inc. 59,900 3,103,569
CompUSA, Inc. 630,000 11,379,375
Costco Companies, Inc. 300,000 18,918,750
CVS Corporation(1) 521,200 20,294,225
Dayton Hudson Corporation(1) 430,000 20,855,000
Fred Meyer, Inc. 12,000 510,000
Safeway, Inc. 402,600 16,380,788
Staples, Inc. 450,000 13,021,875
Starbucks Corporation 300,000 16,031,250
The Gap, Inc.(1) 375,000 23,109,375
The Kroger Company 86,700 3,717,262
Walgreen Co.(1) 300,000 12,393,750
Wal-Mart Stores, Inc.(1) 145,200 8,820,900
- -----------------------------------------------------------------------------------------------
168,536,119
- -----------------------------------------------------------------------------------------------
DISTRIBUTION - 1.0%
Ingram Micro, Inc., Class A 172,700 7,641,975
- -----------------------------------------------------------------------------------------------
7,641,975
- -----------------------------------------------------------------------------------------------
FINANCIAL SERVICES - 11.7%
H.F. Ahmanson & Company(1) 321,400 22,819,400
Household International, Inc.(1) 390,000 19,402,500
Providian Financial Corporation(1) 123,600 9,710,325
The Chase Manhattan Corporation(1) 230,000 17,365,000
Travelers Group, Inc.(1) 288,750 17,505,469
- -----------------------------------------------------------------------------------------------
86,802,694
- -----------------------------------------------------------------------------------------------
HEALTH MAINTENANCE ORGANIZATIONS - 8.6%
HBO & Company(1) 792,000 27,918,000
United HealthCare Corporation(1) 285,000 18,097,500
Wellpoint Health Networks, Inc. 238,100 17,619,400
- -----------------------------------------------------------------------------------------------
63,634,900
- -----------------------------------------------------------------------------------------------
HOSPITALS - 3.1%
Health Management Associates, Inc. 336,000 11,235,000
Universal Health Services, Inc. 200,000 11,675,000
- -----------------------------------------------------------------------------------------------
22,910,000
- -----------------------------------------------------------------------------------------------
JUNE 30, 1998 (UNAUDITED) SHARES VALUE
- -----------------------------------------------------------------------------------------------
INVESTMENT MANAGEMENT - 8.0%
Franklin Resources, Inc.(1) 268,000 $14,472,000
Merrill Lynch & Co., Inc.(1) 319,538 29,477,380
The Equitable Companies, Inc.(1) 200,000 14,987,500
- -----------------------------------------------------------------------------------------------
58,936,880
- -----------------------------------------------------------------------------------------------
MANUFACTURING - 3.3%
General Electric Company(1) 270,500 24,615,500
- -----------------------------------------------------------------------------------------------
24,615,500
- -----------------------------------------------------------------------------------------------
MEDIA - 5.5%
Comcast Corporation, Class A(1) 200,000 8,118,750
Cox Communications, Inc., Class A 165,000 7,992,188
Electronic Arts, Inc. 177,300 9,574,200
Time Warner, Inc.(1) 180,000 15,378,750
- -----------------------------------------------------------------------------------------------
41,063,888
- -----------------------------------------------------------------------------------------------
PHARMACEUTICALS - 12.4%
Cardinal Health, Inc.(1) 200,000 18,750,000
Eli Lilly and Company(1) 335,000 22,130,938
McKesson Corporation(1) 300,000 24,375,000
Merck & Co., Inc.(1) 196,900 26,335,375
- -----------------------------------------------------------------------------------------------
91,591,313
- -----------------------------------------------------------------------------------------------
SEMICONDUCTORS & EQUIPMENT - 9.4%
Applied Materials, Inc. 614,000 18,113,000
Intel Corporation(1) 382,400 28,345,400
Texas Instruments, Inc.(1) 400,000 23,325,000
- -----------------------------------------------------------------------------------------------
69,783,400
- -----------------------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.3%
3Com Corporation 300,000 9,206,250
ADC Telecommunications, Inc. 209,800 7,664,256
- -----------------------------------------------------------------------------------------------
16,870,506
- -----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.9% (COST: $556,490,799) 748,005,212
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
OTHER LIABILITIES, NET - (0.9)% (7,107,310)
- -----------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
TOTAL NET ASSETS - 100.0% $740,897,902
- -----------------------------------------------------------------------------------------------
</TABLE>
(1) Income producing security.
(2) Foreign denominated security; ATS Austrian Schilling, AUD Australian
Dollar, CAD-Canadian Dollar, CHF-Swiss Franc, DEM-German Mark, ESP-Spanish
Peseta, GBP-British Pound, HKD-Hong Kong Dollar, IDR-Indonesian Rupiah,
ITL-Italian Lira, NZD-New Zealand Dollar, PTE-Portuguese Escudo, SAR-South
African Rand
(3) ADR-American Depository Receipt; GDR-Global Depository Receipt
(4) Fair-Value Security. See 1.a. in Notes to Financial Statements
(5) Restricted security. See 4.e. in Notes to Financial Statements
(6) See 4.f. in Notes to Financial Statements
(7) These securities may be resold in transactions under rule 144A of the
Securities Act of 1933, normally to qualified institutional buyers
(8) Shares registered for foreign investors
The accompanying notes are an integral part of these financial statements.
49
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 1998 (UNAUDITED)
(ALL NUMBERS IN THOUSANDS EXCEPT FOR THE CONTRARIAN DEVELOPING DIVERSIFIED EMERGING
NET ASSET VALUE PER SHARE) FUND-TM- COUNTRIES GROWTH GROWTH
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments, at value $235,642 $7,612 $75,815 $320,008
Deposits with brokers and custodian bank for
securities sold short 31,811 - 1,025 -
Cash and cash equivalents - 5,608 - 8,867
Receivable from brokers for securities sold short 66,876 - 1,297 -
Receivable for investments sold 2,337 - 3,157 2,907
Receivable for fund shares subscribed 169 26 248 2,844
Receivable from adviser - 11 - -
Dividends/interest receivable 99 4 4 76
Organization cost - 0 19 -
- --------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 336,934 13,261 81,565 334,702
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Securities sold short 29,384 - 673 -
Payable to custodian bank 30,363 - 288 -
Payable for investments purchased 325 - 3,011 5,287
Payable for fund shares redeemed 349 101 1,240 2,823
Payable to adviser 349 - 63 238
Payable to distributor 78 3 - -
Accrued expenses 139 56 78 151
- --------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 60,987 160 5,353 8,499
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $275,947 $13,101 $76,212 $326,203
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------
Paid-in capital 388,530 25,858 63,003 256,984
Accumulated undistributed net investment
income/(loss) - 54 - -
Accumulated net realized gain/(loss)
from investments 77,248 (9,799) 10,406 19,238
Accumulated net realized gain/(loss) from
securities and options sold short (53,250) 2,805 1,540 -
Net unrealized appreciation/(depreciation)
on investments (153,429) (5,817) 639 49,981
Net unrealized appreciation/(depreciation)
on securities and options sold short 16,848 - 624 -
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $275,947 $13,101 $76,212 $326,203
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT COST $394,171 $13,429 $75,176 $270,008
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
PRICING OF SHARES:
Net Asset Value, offering, and redemption
price per share - Class A Shares $10.54 $6.30 $15.02 $22.59
Net assets $273,420 $13,043 $75,505 $325,512
Shares of beneficial interest outstanding
with no par value 25,940 2,072 5,028 14,409
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, offering, and redemption
price per share - Class C Shares(1) $10.38 $6.12 $14.78 $22.12
Net assets $2,527 $58 $707 $691
Shares of beneficial interest outstanding
with no par value 243 9 48 31
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Redemption price per share is equal to the net asset value less any
applicable contingent deferred sales charge.
The accompanying notes are an integral part of these financial statements.
50
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
<TABLE>
<CAPTION>
AS OF JUNE 30, 1998 (UNAUDITED) GLOBAL GLOBAL
(ALL NUMBERS IN THOUSANDS EXCEPT FOR LOW-PRICED NATURAL GLOBAL GROWTH &
NET ASSET VALUE PER SHARE) STOCK RESOURCES VALUE INCOME
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
- --------------------------------------------------------------------------------------------------------------
Investments, at value $4,175 $49,491 $15,860 $264,268
Deposits with brokers and custodian bank for
securities sold short - - 0 2,914
Cash and cash equivalents 925 - 4,033 -
Receivable from brokers for securities sold short - - 0 2,675
Receivable for investments sold 220 2,113 1,819 7,148
Receivable for fund shares subscribed - 127 32 2,368
Receivable from adviser 18 - 3 84
Dividends/interest receivable 1 191 71 597
Organization cost 10 19 11 -
- --------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 5,349 51,941 21,829 280,054
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Securities sold short - - - 1,462
Payable to custodian bank - 14 - 1,507
Payable for investments purchased 48 - - 9,964
Payable for fund shares redeemed 98 473 4,058 880
Payable to adviser - 36 - -
Payable to distributor - - - 55
Accrued expenses 71 80 76 227
- --------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 217 603 4,134 14,095
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $5,132 $51,338 $17,695 $265,959
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------
Paid-in capital 8,432 65,911 14,322 203,562
Accumulated undistributed net investment
income/(loss) - - 110 1,629
Accumulated net realized gain/(loss)
from investments (3,022) (2,155) 2,548 26,904
Accumulated net realized gain/(loss) from
securities and options sold short - - - (3,015
Net unrealized appreciation/(depreciation)
on investments (278) (12,418) 715 35,666
Net unrealized appreciation/(depreciation)
on securities and options sold short - - - 1,213
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $5,132 $51,338 $17,695 $265,959
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT COST $4,453 $61,908 $15,145 $228,602
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
PRICING OF SHARES:
Net Asset Value, offering, and redemption
price per share - Class A Shares $9.92 $10.95 $12.22 $14.56
Net assets $5,094 $51,292 $17,487 $264,312
Shares of beneficial interest outstanding
with no par value 514 4,683 1,431 18,155
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, offering, and redemption
price per share - Class C Shares1 $9.71 $10.74 $12.13 $14.29
Net assets $38 $46 $208 $1,647
Shares of beneficial interest outstanding
with no par value 4 4 17 115
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
AS OF JUNE 30, 1998 (UNAUDITED) THE
(ALL NUMBERS IN THOUSANDS EXCEPT FOR INFORMATION MICROCAP VALUE +
NET ASSET VALUE PER SHARE) AGE FUND-TM- GROWTH PARTNERS GROWTH
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
- ---------------------------------------------------------------------------------------------------------------
Investments, at value $115,358 $118,171 $125,463 $748,005
Deposits with brokers and custodian bank for
securities sold short - - - -
Cash and cash equivalents 5,140 6,467 4 -
Receivable from brokers for securities sold short - - - -
Receivable for investments sold 1,814 730 6,585 15,359
Receivable for fund shares subscribed 2,059 440 445 1,051
Receivable from adviser - - - -
Dividends/interest receivable 10 1 308 235
Organization cost 17 3 - -
- --------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 124,398 125,812 132,805 764,650
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Securities sold short - - - -
Payable to custodian bank - - 3,799 1,413
Payable for investments purchased 579 595 969 20,261
Payable for fund shares redeemed 414 699 312 1,340
Payable to adviser 90 124 140 584
Payable to distributor 23 27 - 147
Accrued expenses 75 89 19 7
- --------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,181 1,534 5,239 23,752
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $123,217 $124,278 $127,566 $740,898
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------------------------------------
Paid-in capital 95,044 117,320 99,039 466,322
Accumulated undistributed net investment
income/(loss) - - 105 -
Accumulated net realized gain/(loss)
from investments 1,370 700 22,915 83,062
Accumulated net realized gain/(loss) from
securities and options sold short - - - -
Net unrealized appreciation/(depreciation)
on investments 26,803 6,258 5,507 191,514
Net unrealized appreciation/(depreciation)
on securities and options sold short - - - -
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TOTAL NET ASSETS $123,217 $124,278 $127,566 $740,898
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT COST $88,555 $111,914 $119,956 $556,491
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
PRICING OF SHARES:
Net Asset Value, offering, and redemption
price per share - Class A Shares $14.11 $15.42 $16.10 $27.39
Net assets $123,056 $122,399 $126,729 $739,303
Shares of beneficial interest outstanding
with no par value 8,720 7,940 7,873 26,994
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, offering, and redemption
price per share - Class C Shares1 $13.73 $15.17 $15.88 $26.97
Net assets $158 $1,879 $837 $1,595
Shares of beneficial interest outstanding
with no par value 12 124 53 59
- --------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
51
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) THE CONTRARIAN DEVELOPING DIVERSIFIED EMERGING
(ALL NUMBERS IN THOUSANDS) FUND-TM- COUNTRIES GROWTH GROWTH
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------------------------
Interest $2,607 $213 $154 $481
Dividends 325 54 92 54
Withholding taxes on foreign dividends (9) (7) (1) (1)
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 2,923 260 245 534
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 2,622 139 404 1,357
Distribution fees - Class A Shares 827 28 100 339
Transfer agent fees 212 42 45 121
Dividend expense for securities sold short 6 - - -
Custodian fees 84 41 63 62
Administrative service fees - - 82 -
Shareholder reports 142 22 15 50
Professional fees 85 49 34 44
Registration and filing fees 66 19 26 9
Interest expense 228 3 33 -
Trustees' fees and expenses 8 8 8 8
Insurance 15 1 1 1
Organization expense - - 4 -
Distribution fees - Class C Shares 12 - 2 2
Shareholder servicing fees - Class C Shares 4 - 1 -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 4,311 352 818 1,993
Less: Expense waiver by adviser - (146) (43) -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 4,311 206 775 1,993
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (1,388) 54 (530) (1,459)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN /(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS AND SECURITIES SOLD SHORT
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain/(loss) from investments 12,675 (5,707) 9,992 19,508
Net realized gain/(loss) from securities sold short (796) (269) 737 -
Net change in unrealized appreciation/(depreciation)
on investments (31,836) 1,582 (5,641) 32,715
Net change in unrealized appreciation/(depreciation)
on securities sold short (8,793) - 218 -
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION)(28,750) (4,394) 5,306 52,223
ON INVESTMENTS AND SECURITIES SOLD SHORT
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: $(30,138) $(4,340) $4,776 $50,764
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
52
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
GLOBAL GLOBAL
FOR THE SIX MONTHS ENDED JUNE 30, 1998 (UNAUDITED) LOW-PRICED NATURAL GLOBAL GROWTH &
(ALL NUMBERS IN THOUSANDS) STOCK RESOURCES VALUE INCOME
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
- -----------------------------------------------------------------------------------------------------------------------------
Interest $39 $148 $89 $737
Dividends 11 275 224 2,086
Withholding taxes on foreign dividends - (36) (18) (9)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 50 387 295 2,814
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 40 333 108 1,409
Distribution fees - Class A Shares 10 83 27 350
Transfer agent fees 35 43 33 86
Dividend expense for securities sold short - - - -
Custodian fees 38 42 31 67
Administrative service fees 9 70 22 288
Shareholder reports 8 31 7 59
Professional fees 38 43 33 48
Registration and filing fees 11 35 11 30
Interest expense 21 4 2 65
Trustees' fees and expenses 8 8 8 8
Insurance - 2 - 4
Organization expense 2 3 11 -
Distribution fees - Class C Shares - - 1 6
Shareholder servicing fees - Class C Shares - - - 2
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 220 697 294 2,422
Less: Expense waiver by adviser (141) (49) (82) (585)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 79 648 212 1,837
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (29) (261) 83 977
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN /(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS AND SECURITIES SOLD SHORT
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain/(loss) from investments (1,484) (2,269) 2,273 24,526
Net realized gain/(loss) from securities sold short - - - (3,865)
Net change in unrealized appreciation/(depreciation)
on investments 482 (1,147) (451) (1,620)
Net change in unrealized appreciation/(depreciation)
on securities sold short - - - 1,229
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) (1,002) (3,416) 1,822 20,270
ON INVESTMENTS AND SECURITIES SOLD SHORT
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: $(1,031) $(3,677) $1,905 $21,247
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
THE
INFORMATION MICROCAP VALUE +
AGE FUND-TM- GROWTH PARTNERS GROWTH
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
- ------------------------------------------------------------------------------------------------------------------------------
Interest $49 $353 $401 $1,761
Dividends 88 1 1,145 78
Withholding taxes on foreign dividends - - (90) -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 137 354 1,456 1,839
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES
- ------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees 613 787 1,027 3,755
Distribution fees - Class A Shares 153 155 204 937
Transfer agent fees 46 59 93 314
Dividend expense for securities sold short - - - -
Custodian fees 36 52 51 92
Administrative service fees 127 126 - -
Shareholder reports 30 14 45 158
Professional fees 39 36 43 51
Registration and filing fees 38 33 39 46
Interest expense 42 28 - 91
Trustees' fees and expenses 8 8 8 8
Insurance 1 - 3 3
Organization expense 3 2 - -
Distribution fees - Class C Shares 1 6 4 5
Shareholder servicing fees - Class C Shares - 2 1 2
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 1,137 1,308 1,518 5,462
Less: Expense waiver by adviser - (91) - -
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES, NET 1,137 1,217 1,518 5,462
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME/(LOSS) (1,000) (863) (62) (3,623)
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
REALIZED GAIN /(LOSS) AND UNREALIZED APPRECIATION/(DEPRECIATION) ON INVESTMENTS AND SECURITIES SOLD SHORT
- ------------------------------------------------------------------------------------------------------------------------------
Net realized gain/(loss) from investments 9,688 3,949 19,029 53,379
Net realized gain/(loss) from securities sold short - - - -
Net change in unrealized appreciation/(depreciation)
on investments 13,407 3,538 (20,896) 76,997
Net change in unrealized appreciation/(depreciation)
on securities sold short - - - -
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL NET REALIZED GAIN/(LOSS) AND UNREALIZED APPRECIATION (DEPRECIATION) 23,095 7,487 (1,867) 130,376
ON INVESTMENTS AND SECURITIES SOLD SHORT
- -----------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: $22,095 $6,624 $(1,929) $126,753
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
53
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
THE CONTRARIAN FUND-TM-
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(1,388) $53
Net realized gain/(loss) from investments 12,675 52,049
Net realized gain/(loss) from securities sold short (796) (48,987)
Net change in unrealized appreciation/(depreciation) on investments (31,836) (267,380)
Net change in unrealized appreciation/(depreciation) on securities sold short (8,793) 13,335
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (30,138) (250,930)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (3,087)
Realized gain on investments - Class C Shares(1) - (28)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (3,115)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (96,211) (407,097)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (96,211) (407,097)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (126,349) (661,142)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 402,296 1,063,438
End of period $275,947 $402,296
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
DEVELOPING COUNTRIES
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $54 $(127)
Net realized gain/(loss) from investments (5,707) (3,032)
Net realized gain/(loss) from securities sold short (269) 2,757
Net change in unrealized appreciation/(depreciation) on investments 1,582 (6,680)
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (4,340) (7,082)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (861)
Realized gain on investments - Class C Shares(1) - (1)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (862)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (12,065) (12,974)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (12,065) (12,974)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (16,405) (20,918)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 29,506 50,424
End of period $13,101 $29,506
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
54
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DIVERSIFIED GROWTH
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(530) $(774)
Net realized gain/(loss) from investments 9,992 10,971
Net realized gain/(loss) from securities sold short 737 945
Net change in unrealized appreciation/(depreciation) on investments (5,641) (567)
Net change in unrealized appreciation/(depreciation) on securities sold short 218 233
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 4,776 10,808
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (10,204)
Realized gain on investments - Class C Shares(1) - (37)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (10,421)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (9,218) 20,499
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (9,218) 20,499
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (4,442) 21,066
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 80,654 59,588
End of period $76,212 $80,654
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
EMERGING GROWTH
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(1,459) $(1,540)
Net realized gain/(loss) from investments 19,508 51,023
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments 32,715 (10,596)
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 50,764 38,887
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (54,805)
Realized gain on investments - Class C Shares(1) - (66)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS (54,871)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions 26,379 54,640
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS 26,379 54,640
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS 77,143 38,656
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 249,060 210,404
End of period $326,203 $249,060
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
GLOBAL LOW-PRICED STOCK
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(29) $(315)
Net realized gain/(loss) from investments (1,484) (975)
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments 482 (1,653)
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,031) (2,493)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (778)
Realized gain on investments - Class C Shares(1) - (3)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (781)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (7,259) (14,295)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (7,259) (14,295)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (8,290) (18,019)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 13,422 31,411
End of period $5,132 $13,422
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
GLOBAL NATURAL RESOURCES
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(261) $(542)
Net realized gain/(loss) from investments (2,269) 1,421
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments (1,147) (23,435)
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (3,677) (22,556)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (1,426)
Realized gain on investments - Class C Shares(1) - -
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (1,426)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (23,386) (18,138)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (23,386) (18,138)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS (27,063) (42,210)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of Period 78,401 120,521
End of period $51,338 $78,401
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class C shares were first issued on 4/14/97 for the Contrarian Fund-TM-
Class C shares were first issued on 5/8/97 for the Developing Countries
Fund
Class C shares were first issued on 9/8/97 for the Diversified Growth Fund
Class C shares were first issued on 5/8/97 for the Emerging Growth Fund
Class C shares were first issued on 5/20/97 for the Global Low-Priced Stock
Fund
Class C shares were first issued on 7/30/97 for the Global Natural
Resources Fund
The accompanying notes are an integral part of these financial statements.
55
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS - CONTINUED
<TABLE>
<CAPTION>
GLOBAL VALUE
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997(2)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $83 $447
Net realized gain/(loss) from investments 2,273 1,406
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments (451) 1,167
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,905 3,020
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net Investment income - Class A Shares - (418)
Net Investment income - Class C Shares(1) - (1)
Realized gain on investments - Class A Shares - (1,123)
Realized gain on investments - Class C Shares(1) - (10)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (1,552)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital share transactions (5,422) 19,744
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (5,422) 19,744
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS (3,517) 21,212
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of period 21,212 -
End of period $17,695 $21,212
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
GROWTH & INCOME
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997(2)
- -------------------------------------------------------------------------------------------------------------------
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $977 $1,343
Net realized gain/(loss) from investments 24,526 55,409
Net realized gain/(loss) from securities sold short (3,865) 655
Net change in unrealized appreciation/(depreciation) on investments (1,620) (1,108)
Net change in unrealized appreciation/(depreciation) on securities sold short 1,229 (186)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 21,247 56,113
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - (686)
Net investment income - Class C Shares(1) - (5)
Realized gain on investments - Class A Shares - (56,382)
Realized gain on investments - Class C Shares(1) - (216)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (57,289)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital shares transactions (55,346) (8,541)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (55,346) (8,541)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS (34,099) (9,717)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
BEGINNING OF PERIOD 300,058 309,775
End of period $265,959 $300,058
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
56
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INFORMATION AGE
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(1,000) $(2,111)
Net realized gain/(loss) from investments 9,688 (6,024)
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments 13,407 8,110
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 22,095 (25)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (4,383)
Realized gain on investments - Class C Shares(1) - (3)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (4,386)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital shares transactions (17,789) (17,058)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (17,789) (17,058)
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS 4,306 4,306
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
BEGINNING OF PERIOD 118,911 106,264
End of period $123,217 $118,911
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
MICROCAP GROWTH
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(863) $(574)
Net realized gain/(loss) from investments 3,949 (3,122)
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments 3,538 2,103
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,624 (1,593)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - -
Realized gain on investments - Class C Shares(1) - -
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - -
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital shares transactions 11,392 98,391
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS 11,392 98,391
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS 18,016 96,798
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
BEGINNING OF PERIOD 106,262 9,464
End of period $124,278 $106,262
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
PARTNERS
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(62) $1,697
Net realized gain/(loss) from investments 19,029 10,689
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments (20,896) 19,202
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,929) 31,588
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - (1,526)
Net investment income - Class C Shares(1) - (4)
Realized gain on investments - Class A Shares - (7,913)
Realized gain on investments - Class C Shares(1) - (38)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (9,481)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital shares transactions (65,639) 45,759
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (65,639) 45,759
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS (67,568) 67,866
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of period 195,134 127,268
End of period $127,566 $195,134
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
VALUE + GROWTH
-----------------------------------
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
(ALL NUMBERS IN THOUSANDS, SIX MONTHS ENDED NUMBERS ARE UNAUDITED) JUNE 30, 1998 DECEMBER 31, 1997
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) $(3,623) $(7,184)
Net realized gain/(loss) from investments 53,379 146,756
Net realized gain/(loss) from securities sold short - -
Net change in unrealized appreciation/(depreciation) on investments 76,997 (66,096)
Net change in unrealized appreciation/(depreciation) on securities sold short - -
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 126,753 73,476
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------
Net investment income - Class A Shares - -
Net investment income - Class C Shares(1) - -
Realized gain on investments - Class A Shares - (126,111)
Realized gain on investments - Class C Shares(1) - (204)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS - (126,351)
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets resulting from capital shares transactions (140,095) 163,958
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) FROM CAPITAL SHARE TRANSACTIONS (140,095) 163,958
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE/(DECREASE) IN NET ASSETS (13,342) 111,083
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------
Beginning of period 754,240 643,157
End of period $740,898 $754,240
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Class C shares were first issued on 6/30/97 for the Global Value Fund
Class C shares were first issued on 5/9/97 for The Growth & Income Fund
Class C shares were first issued on 7/11/97 for The Information Age Fund
Class C shares were first issued on 6/18/97 for The Microcap Growth Fund
Class C shares were first issued on 4/14/97 for The Partners Fund
Class C shares were first issued on 5/28/97 for The Value + Growth Fund
(2) From commencement of investment operations on April 1, 1997.
The accompanying notes are an integral part of these financial statements.
57
<PAGE>
SEMIANNUAL REPORT
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CLASS A & C
<TABLE>
<CAPTION>
NET DISTRIBUTIONS DISTRIBUTIONS
ASSET VALUE, NET NET REALIZED FROM NET FROM NET
BEGINNING INVESTMENT AND UNREALIZED TOTAL INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) GAIN/(LOSS) OPERATIONS INCOME CAPITAL GAINS
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONTRARIAN -- CLASS A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $11.61 $(0.05) $(1.02) $(1.07) $ - $ -
Year Ended 12/31/97 16.57 - (4.88) (4.88) - (0.08)
Year Ended 12/31/96 13.78 - 2.99 2.99 - (0.20)
Nine Months Ended 12/31/95 10.70 (0.01) 3.09 3.08 - -
Year Ended 3/31/95 12.34 (0.04) (1.35) (1.39) - (0.25)
Period Ended 3/31/94(3) 10.00 (0.02) 2.36 2.34 - -
CONTRARIAN - CLASS C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.54 (0.07) (1.09) (1.16) - -
Period Ended 12/31/97(2) 16.26 (0.03) (4.61) (4.64) - (0.08)
DEVELOPING COUNTRIES -- CLASS A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 8.02 0.02 (1.74) (1.72) - -
Year Ended 12/31/97 9.69 (0.02) (1.45) (1.47) - (0.20)
Year Ended 12/31/96 8.02 0.03 1.67 1.70 (0.03) -
Nine Months Ended 12/31/95 8.57 (0.03) (0.52) (0.55) - -
Period Ended 3/31/95(4) 10.00 0.06 (1.36) (1.30) (0.04) (0.09)
DEVELOPING COUNTRIES -- CLASS C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 7.93 (0.01) (1.80) (1.81) - -
Period Ended 12/31/97(2) 9.57 (0.14) (1.30) (1.44) - (0.20)
DIVERSIFIED GROWTH FUND -- CLASS A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.04 (0.10) 1.08 0.98 - -
Year Ended 12/31/97 12.42 (0.17) 3.72 3.55 - (1.93)
Period Ended 12/31/96(5) 10.00 (0.05) 2.47 2.42 - -
DIVERSIFIED GROWTH FUND -- CLASS C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 13.93 (0.16) 1.01 0.85 - -
Period Ended 12/31/97(2) 15.79 (0.08) 0.15 0.07 - (1.93)
EMERGING GROWTH FUND -- CLASS A
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 18.71 (0.11) 3.99 3.88 - -
Year Ended 12/31/97 20.07 (0.14) 3.80 3.66 - (5.02)
Year Ended 12/31/96 19.21 (0.17) 4.23 4.06 - (3.20)
Nine Months Ended 12/31/95 18.36 (0.15) 2.58 2.43 - (1.58)
Year Ended 3/31/95 18.37 (0.17) 2.26 2.09 - (2.10)
Year Ended 3/31/94 14.71 (0.40) 4.06 3.66 - -
EMERGING GROWTH FUND -- CLASS C
- ----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 18.47 (0.18) 3.83 3.65 - -
Period Ended 12/31/97(2) 18.86 (0.23) 4.86 4.63 - (5.02)
</TABLE>
The accompanying notes are an integral part of these financial statements.
58
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
RATIO OF
NET ASSET, NET ASSETS EXPENSES
VALUE END TOTAL END OF TO AVERAGE NET
OF PERIOD RETURN PERIOD (000S) ASSETS - NET
- ------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRARIAN -- CLASS A
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $10.54 (9.22)% $273,420 2.46%
Year Ended 12/31/97 11.61 (29.51)% 398,242 2.48%
Year Ended 12/31/96 16.57 21.68% 1,063,438 2.46%
Nine Months Ended 12/31/95 13.78 28.79% 507,477 2.54%
Year Ended 3/31/95 10.70 (11.23)% 397,646 2.46%
Period Ended 3/31/94(3) 12.34 23.40% 484,951 2.22%
CONTRARIAN - CLASS C
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 10.38 (10.05)% 2,527 2.99%
Period Ended 12/31/97(2) 11.54 (28.60)% 4,053 2.73%
DEVELOPING COUNTRIES -- CLASS A
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 6.30 (21.45)% 13,043 1.85%
Year Ended 12/31/97 8.02 (15.27)% 29,431 2.10%
Year Ended 12/31/96 9.69 21.19% 50,424 1.84%
Nine Months Ended 12/31/95 8.02 (6.42)% 14,343 1.83%
Period Ended 3/31/95(4) 8.57 (13.14)% 8,345 3.15%
DEVELOPING COUNTRIES -- CLASS C
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 6.12 (22.82)% 58 2.60%
Period Ended 12/31/97(2) 7.93 (15.16)% 75 2.85%
DIVERSIFIED GROWTH FUND -- CLASS A
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 15.02 6.98% 75,505 1.92%
Year Ended 12/31/97 14.04 29.45% 80,278 1.94%
Period Ended 12/31/96(5) 12.42 24.20% 59,588 2.28%
DIVERSIFIED GROWTH FUND -- CLASS C
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.78 6.10% 707 2.67%
Period Ended 12/31/97(2) 13.93 1.10% 376 2.69%
EMERGING GROWTH FUND -- CLASS A
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 22.59 20.74% 325,512 1.47%
Year Ended 12/31/97 18.71 18.54% 248,730 1.50%
Year Ended 12/31/96 20.07 21.53% 210,404 1.60%
Nine Months Ended 12/31/95 19.21 13.50% 167,728 1.64%
Year Ended 3/31/95 18.36 12.01% 182,275 1.56%
Year Ended 3/31/94 18.37 24.88% 168,192 1.60%
EMERGING GROWTH FUND -- CLASS C
- ------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 22.12 19.76% 691 2.22%
Period Ended 12/31/97(2) 18.47 24.80% 330 2.25%
<CAPTION>
RATIO OF RATIO OF NET RATIO OF NET
EXPENSES INVESTMENT INCOME/ INVESTMENT INCOME/ PORTFOLIO
TO AVERAGE NET (LOSS) TO AVERAGE (LOSS) TO AVERAGE TURNOVER
ASSETS - GROSS NET ASSETS - NET NET ASSETS - GROSS RATE
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CONTRARIAN -- CLASS A
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.46% (0.79)% (0.79)% 6%
Year Ended 12/31/97 2.48% 0.01% 0.01% 36%
Year Ended 12/31/96 2.46% (0.02)% (0.02)% 44%
Nine Months Ended 12/31/95 2.54% (0.20)% (0.20)% 29%
Year Ended 3/31/95 2.58% (0.27)% (0.39)% 79%
Period Ended 3/31/94(3) 2.22% (0.77)% (0.77)% 14%
CONTRARIAN - CLASS C
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.99% (1.28)% (1.28)% 6%
Period Ended 12/31/97(2) 2.73% (0.32)% (0.32)% 36%
DEVELOPING COUNTRIES -- CLASS A
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 3.16% 0.48% (0.83)% 8%
Year Ended 12/31/97 2.53% (0.20)% (0.63)% 148%
Year Ended 12/31/96 2.70% 0.36% (0.50)% 165%
Nine Months Ended 12/31/95 4.24% (0.51)% (2.92)% 103%
Period Ended 3/31/95(4) 3.46% 0.72% 0.41% 124%
DEVELOPING COUNTRIES -- CLASS C
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 3.91% (0.25)% (1.56)% 8%
Period Ended 12/31/97(2) 3.29% (2.11)% (2.55)% 148%
DIVERSIFIED GROWTH FUND -- CLASS A
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.02% (1.31)% (1.41)% 199%
Year Ended 12/31/97 2.14% (1.20)% (1.40)% 370%
Period Ended 12/31/96(5) 2.44% (1.05)% (1.21)% 69%
DIVERSIFIED GROWTH FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.81% (2.06)% (2.20)% 199%
Period Ended 12/31/97(2) 2.89% (2.17)% (2.37)% 370%
EMERGING GROWTH FUND -- CLASS A
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 1.47% (1.07)% (1.07)% 175%
Year Ended 12/31/97 1.50% (0.68)% (0.68)% 462%
Year Ended 12/31/96 1.60% (0.83)% (0.83)% 270%
Nine Months Ended 12/31/95 1.64% (0.99)% (0.99)% 147%
Year Ended 3/31/95 1.56% (0.96)% (0.96)% 280%
Year Ended 3/31/94 1.60% (1.27)% (1.27)% 274%
EMERGING GROWTH FUND -- CLASS C
- -------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.22% (1.84)% (1.84)% 175%
Period Ended 12/31/97(2) 2.25% (1.81)% (1.81)% 462%
</TABLE>
The accompanying notes are an integral part of these financial statements.
59
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CLASS A & C CONTINUED
<TABLE>
<CAPTION>
NET DISTRIBUTIONS DISTRIBUTIONS
ASSET VALUE, NET NET REALIZED FROM NET FROM NET
BEGINNING INVESTMENT AND UNREALIZED TOTAL INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) GAIN/LOSS) OPERATIONS INCOME CAPITAL GAINS
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
GLOBAL LOW-PRICED - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $11.17 $(0.04) $(1.21) $(1.25) $ - $ -
Year Ended 12/31/97 13.52 (0.16) (1.63) (1.79) - (0.56)
Year Ended 12/31/96 10.45 (0.09) 3.17 3.08 (0.01) -
Period Ended 12/31/95(6) 10.00 0.03 0.42 0.45 - -
GLOBAL LOW-PRICED - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.04 (0.07) (1.26) (1.33) - -
Period Ended 12/31/97(2) 13.45 (0.16) (1.69) (1.85) - (0.56)
GLOBAL NATURAL RESOURCES - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.67 (0.05) (0.67) (0.72) - -
Year Ended 12/31/97 14.29 (0.05) (2.39) (2.44) - (0.18)
Year Ended 12/31/96 10.12 (0.06) 4.24 4.18 (0.01) -
Period Ended 12/31/95(6) 10.00 0.02 0.10 0.12 - -
GLOBAL NATURAL RESOURCES - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.57 (0.07) (0.76) (0.83) - -
Period Ended 12/31/97(2) 13.67 (0.05) (1.87) (1.92) - (0.18)
GLOBAL VALUE FUND - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.15 0.05 1.02 1.07 - -
Period Ended 12/31/97(7) 10.00 0.28 1.69 1.97 (0.22) (0.60)
GLOBAL VALUE FUND - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.18 0.01 0.94 0.95 - -
Period Ended 12/31/97(2) 10.69 0.02 1.15 1.17 (0.08) (0.60)
GROWTH & INCOME - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 13.52 0.05 0.99 1.04 - -
Year Ended 12/31/97 13.62 0.07 2.90 2.97 (0.04) (3.03)
Year Ended 12/31/96 11.24 0.02 2.70 2.72 (0.02) (0.32)
Period Ended 12/31/95(8) 10.00 - 1.24 1.24 - -
GROWTH & INCOME- CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 13.36 - 0.93 0.93 - -
Period Ended 12/31/97(2) 13.73 (0.03) 2.73 2.70 (0.04) (3.03)
</TABLE>
The accompanying notes are an integral part of these financial statements.
60
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
RATIO OF
NET ASSET, NET ASSETS EXPENSES
VALUE END TOTAL END OF TO AVERAGE NET
OF PERIOD RETURN PERIOD (000S) ASSETS - NET
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GLOBAL LOW-PRICED - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $9.92 (11.19)% $5,094 1.95%
Year Ended 12/31/97 11.17 (13.54)% 13,371 1.95%
Year Ended 12/31/96 13.52 29.39% 31,441 1.94%
Period Ended 12/31/95(6) 10.45 4.50% 1,643 1.91%
GLOBAL LOW-PRICED - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 9.71 (12.05)% 38 2.70%
Period Ended 12/31/97(2) 11.04 (14.07)% 51 2.45%
GLOBAL NATURAL RESOURCES - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 10.95 (6.17)% 51,292 1.95%
Year Ended 12/31/97 11.67 (17.14)% 78,371 1.81%
Year Ended 12/31/96 14.29 41.21% 120,521 1.94%
Period Ended 12/31/95(6) 10.12 1.20% 792 2.60%
GLOBAL NATURAL RESOURCES - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 10.74 (7.17)% 46 2.70%
Period Ended 12/31/97(2) 11.57 (14.12)% 30 2.56%
GLOBAL VALUE FUND - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 12.22 9.60% 17,487 1.95%
Period Ended 12/31/97(7) 11.15 19.97% 21,019 1.95%
GLOBAL VALUE FUND - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 12.13 8.50% 208 2.70%
Period Ended 12/31/97(2) 11.18 11.15% 193 2.70%
GROWTH & INCOME - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.56 7.69% 264,311 1.30%
Year Ended 12/31/97 13.52 22.40% 298,669 1.30%
Year Ended 12/31/96 13.62 24.16% 309,775 1.71%
Period Ended 12/31/95(8) 11.24 12.40% 136,902 1.94%
GROWTH & INCOME- CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.29 6.96% 1,647 2.05%
Period Ended 12/31/97(2) 13.36 20.16% 1,369 2.05%
<CAPTION>
RATIO OF RATIO OF NET RATIO OF NET
EXPENSES INVESTMENT INCOME/ INVESTMENT INCOME/ PORTFOLIO
TO AVERAGE NET (LOSS) TO AVERAGE (LOSS) TO AVERAGE TURNOVER
ASSETS - GROSS NET ASSETS - NET NET ASSETS - GROSS RATE
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GLOBAL LOW-PRICED - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 5.48% (0.71)% (4.25)% 79%
Year Ended 12/31/97 2.60% (1.17)% (1.82)% 65%
Year Ended 12/31/96 3.14% (0.67)% (1.87)% 66%
Period Ended 12/31/95(6) 9.04% 2.06% (5.07)% 0%
GLOBAL LOW-PRICED - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 6.23% (1.36)% (4.89)% 79%
Period Ended 12/31/97(2) 3.10% (1.95)% (2.60)% 65%
GLOBAL NATURAL RESOURCES - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.10% (0.79)% (0.93)% 28%
Year Ended 12/31/97 1.82% (0.38)% (0.38)% 97%
Year Ended 12/31/96 2.16% (0.45)% (0.67)% 82%
Period Ended 12/31/95(6) 14.25% 1.84% (9.81)% 0%
GLOBAL NATURAL RESOURCES - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.96% (1.32)% (1.58)% 28%
Period Ended 12/31/97(2) 2.57% (1.02)% (1.03)% 97%
GLOBAL VALUE FUND - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.70% 0.76% 0.01% 158%
Period Ended 12/31/97(7) 3.21% 3.50% 2.24% 234%
GLOBAL VALUE FUND - CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 3.77% 0.09% (0.98)% 158%
Period Ended 12/31/97(2) 3.97% 0.33% (0.94)% 234%
GROWTH & INCOME - CLASS A
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 1.71% 0.70% 0.28% 101%
Year Ended 12/31/97 1.72% 0.45% 0.03% 236%
Year Ended 12/31/96 1.76% 0.18% 0.13% 212%
Period Ended 12/31/95(8) 1.94% (0.01)% (0.01)% 97%
GROWTH & INCOME- CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.51% (0.04)% (0.50)% 101%
Period Ended 12/31/97(2) 2.48% (0.31)% (0.74)% 236%
</TABLE>
The accompanying notes are an integral part of these financial statements.
61
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS -- CLASS A & C CONTINUED
<TABLE>
<CAPTION>
DISTRIBUTIONS DISTRIBUTIONS
NET ASSET VALUE, NET NET REALIZED FROM NET FROM NET
BEGINNING INVESTMENT AND UNREALIZED TOTAL INVESTMENT REALIZED
OF PERIOD INCOME/(LOSS) GAIN/(LOSS) OPERATIONS INCOME CAPITAL GAINS
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INFORMATION AGE FUND-TM- - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $11.80 $(0.10) $2.41 $2.31 $ - $ -
Year Ended 12/31/97 11.51 (0.22) 0.95 0.73 - (0.44)
Year Ended 12/31/96 9.30 (0.20) 2.68 2.48 - (0.27)
Period Ended 12/31/95(6) 10.00 (0.01) (0.69) (0.70) - -
INFORMATION AGE FUND-TM- - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 11.67 (0.15) 2.21 2.06 - -
Period Ended 12/31/97(2) 13.36 (0.20) (1.05) (1.25) - (0.44)
MICROCAP GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.35 (0.11) 1.18 1.07 - -
Year Ended 12/31/97 11.00 (0.19) 3.54 3.35 - -
Period Ended 12/31/96(9) 10.00 (0.08) 1.08 1.00 - -
MICROCAP GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 14.23 (0.16) 1.10 0.94 - -
Period Ended 12/31/97(2) 12.18 (0.15) 2.20 2.05 - -
PARTNERS FUND - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 16.49 (0.01) (0.38) (0.39) - -
Year Ended 12/31/97 14.60 0.13 2.52 2.65 (0.12) (0.64)
Year Ended 12/31/96 10.39 0.13 4.36 4.49 (0.06) (0.22)
Period Ended 12/31/95(8) 10.00 0.06 0.33 0.39 - -
PARTNERS FUND - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 16.40 (0.07) (0.45) (0.52) - -
Period Ended 12/31/97(2) 14.49 - 2.62 2.62 (0.07) (0.64)
VALUE + GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 23.18 (0.12) 4.33 4.21 - -
Year Ended 12/31/97 24.16 (0.26) 3.71 3.45 - (4.43)
Year Ended 12/31/96 22.66 (0.24) 3.47 3.23 - (1.73)
Nine Months Ended 12/31/95 18.25 (0.16) 4.57 4.41 - -
Year Ended 3/31/95 13.56 (0.18) 5.07 4.89 - (0.20)
Year Ended 3/31/94 11.94 (0.04) 1.99 1.95 (0.03) (0.30)
VALUE + GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 22.98 (0.22) 4.21 3.99 - -
Period Ended 12/31/97(2) 27.71 (0.24) (0.06) (0.30) - (4.43)
</TABLE>
Per-share data with respect to Class A and Class C shares for
each of the periods has been determined by using the
respective average number of Class A and Class C shares
outstanding throughout the period. Distributions reflect
actual per-share amounts distributed for the period.
The accompanying notes are an integral part of these financial statements.
62
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
<TABLE>
<CAPTION>
RATIO OF
NET ASSET, NET ASSETS EXPENSES
VALUE END TOTAL END OF TO AVERAGE NET
OF PERIOD RETURN PERIOD (000S) ASSETS - NET
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INFORMATION AGE FUND-TM- - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) $14.11 19.58% $123,059 1.85%
Year Ended 12/31/97 11.80 6.15% 118,832 1.82%
Year Ended 12/31/96 11.51 26.72% 106,264 2.03%
Period Ended 12/31/95(6) 9.30 (7.00)% 32,826 2.13%
INFORMATION AGE FUND-TM- - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 13.73 17.65% 158 2.60%
Period Ended 12/31/97(2) 11.67 (9.53)% 79 2.57%
MICROCAP GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 15.42 7.46% 122,399 1.92%
Year Ended 12/31/97 14.35 30.45% 104,858 1.95%
Period Ended 12/31/96(9) 11.00 10.00% 9,464 3.08%
MICROCAP GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 15.17 6.61% 1,879 2.67%
Period Ended 12/31/97(2) 14.23 16.83% 1,404 2.70%
PARTNERS FUND - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 16.10 (2.37)% 126,729 1.84%
Year Ended 12/31/97 16.49 18.08% 194,133 1.78%
Year Ended 12/31/96 14.60 43.15% 127,268 1.93%
Period Ended 12/31/95(8) 10.39 3.90% 7,480 2.41%
PARTNERS FUND - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 15.88 (3.17)% 837 2.59%
Period Ended 12/31/97(2) 16.40 18.00% 1,000 2.53%
VALUE + GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 27.39 18.16% 739,303 1.45%
Year Ended 12/31/97 23.18 13.81% 752,994 1.44%
Year Ended 12/31/96 24.16 14.12% 643,157 1.51%
Nine Months Ended 12/31/95 22.66 24.16% 1,140,151 1.45%
Year Ended 3/31/95 18.25 36.27% 428,903 1.68%
Year Ended 3/31/94 13.56 16.32% 44,500 1.55%
VALUE + GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 26.97 17.36% 1,595 2.20%
Period Ended 12/31/97(2) 22.98 (1.52)% 1,246 2.19%
<CAPTION>
RATIO OF RATIO OF NET RATIO OF NET
EXPENSES INVESTMENT INCOME/ INVESTMENT INCOME/ PORTFOLIO
TO AVERAGE NET (LOSS) TO AVERAGE (LOSS) TO AVERAGE TURNOVER
ASSETS - GROSS NET ASSETS - NET NET ASSETS - GROSS RATE
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INFORMATION AGE FUND-TM- - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 1.85% (1.63)% (1.63)% 119%
Year Ended 12/31/97 1.82% (1.71)% (1.71)% 369%
Year Ended 12/31/96 2.03% (1.85)% (1.85)% 452%
Period Ended 12/31/95(6) 2.13% (0.89)% (0.89)% 89%
INFORMATION AGE FUND-TM- - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.60% (2.36)% (2.36)% 119%
Period Ended 12/31/97(2) 2.57% (2.50)% (2.50)% 369%
MICROCAP GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.07% (1.36)% (1.50)% 41%
Year Ended 12/31/97 2.60% (1.35)% (2.00)% 170%
Period Ended 12/31/96(9) 6.40% (2.13)% (5.45)% 22%
MICROCAP GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.84% (2.11)% (2.28)% 41%
Period Ended 12/31/97(2) 3.35% (2.20)% (2.85)% 170%
PARTNERS FUND - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 1.84% (0.07)% (0.07)% 39%
Year Ended 12/31/97 1.78% 0.82% 0.82% 78%
Year Ended 12/31/96 2.15% 0.95% 0.73% 101%
Period Ended 12/31/95(8) 5.12% 1.34% (1.37)% 71%
PARTNERS FUND - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.59% (0.80)% (0.80)% 39%
Period Ended 12/31/97(2) 2.53% (0.25)% (0.25)% 78%
VALUE + GROWTH - CLASS A
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 1.45% (0.48)% (0.48)% 96%
Year Ended 12/31/97 1.44% (0.96)% (0.96)% 228%
Year Ended 12/31/96 1.51% (1.06)% (1.06)% 221%
Nine Months Ended 12/31/95 1.45% (1.04)% (1.04)% 104%
Year Ended 3/31/95 1.68% (1.09)% (1.09)% 232%
Year Ended 3/31/94 2.35% (0.51)% (1.31)% 250%
VALUE + GROWTH - CLASS C
- ---------------------------------------------------------------------------------------------------------------------------------
Six Months Ended 6/30/98(1) 2.20% (0.86)% (0.86)% 96%
Period Ended 12/31/97(2) 2.19% (1.69)% (1.69)% 228%
</TABLE>
(1) Ratios, except for total return and portfolio turnover rate, have been
annualized. For the Class C shares, total return does not include the 1%
contingent deferred sales charge.
(2) See pages 55 and 57, Notes to Statement of Changes in Net Assets, for
date of initial issuance of Class C shares.
(3) The Contrarian Fund-TM- Class A Shares were first issued on 6/30/93.
(4) Developing Countries Fund Class A shares were first issued on 5/2/94.
(5) Diversified Growth Fund Class A shares were first issued on 8/1/96.
(6) Global Low-Priced Stock, Global Natural Resources, and The Information
Age Fund-TM- Class A shares were first issued on 11/15/95.
(7) Global Value Fund Class A shares were first issued on 4/1/97.
(8) Growth & Income and Partners Fund Class A shares were first issued on
7/12/95.
(9) MicroCap Growth Fund Class A shares were first issued on 8/15/96.
The accompanying notes are an integral part of these financial statements.
63
<PAGE>
SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
The Robertson Stephens Mutual Funds (the "Funds") are a series of the Robertson
Stephens Investment Trust (the "Trust"), a Massachusetts business trust
organized on May 11, 1987. The Funds are registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as open-end management investment
companies. The Trust currently offers eleven series of shares. The Robertson
Stephens Emerging Growth Fund, The Robertson Stephens Value + Growth Fund, The
Robertson Stephens Growth & Income Fund, The Information Age FundTM, The
Robertson Stephens Global Natural Resources Fund, The Robertson Stephens
Diversified Growth Fund, and The Robertson Stephens MicroCap Growth Fund are
registered as diversified funds. The Contrarian FundTM, The Robertson Stephens
Developing Countries Fund, The Robertson Stephens Partners Fund, and The
Robertson Stephens Global Value Fund are registered as non-diversified funds.
The assets for each series are segregated and accounted for separately.
The Trustees have authorized the issuance of two classes of shares of beneficial
interest of the Funds, designated as Class A and C, respectively. The shares of
each class represent an interest in the same portfolio of investments of the
Funds. Expenses of the Funds are borne pro-rata by the holders of each class of
shares, except that each class may bear expenses unique to that class
(including, but not limited to, distribution expenses applicable to such class).
Shares of each class would receive their pro-rata share of the net assets of
each fund, if the fund was liquidated. In addition, the Board of Trustees
declares separate distributions on each class of shares. Each class votes as a
class only with respect to its own distribution plan or other matters for which
a class vote is required by law or determined by the Board of Trustees. Class C
shares are subject to a 1% contingent deferred sales charge (CDSC) if those
shares are redeemed within one year of purchase.
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 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
each funds' net asset value is next determined. The percentage of each funds'
long and/or short positions valued in this manner for the period ended June 30,
1998, were as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF PERCENTAGE OF
FUND LONG POSITIONS SHORT POSITIONS
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM- 98.8% 100%
Developing Countries 99.7% NA
Diversified Growth 96.2% 100%
Emerging Growth 100% NA
Global-Low Priced Stock 100% NA
Global Natural Resources 98.9% NA
Global Value 100% NA
Growth & Income 91.9% 100%
The Information Age Fund-TM- 100% NA
MicroCap Growth 100% NA
Partners 100% NA
Value + Growth 100% NA
- -------------------------------------------------------------------------------
</TABLE>
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 Funds' Board of Trustees. The guidelines and procedures use
fundamental valuation methods which include, but are not limited to, the
analysis of: the effect of any restrictions on the sale of the security, product
development and trends of the security's issuer, changes in the industry and
other competing companies, significant changes in the issuer's financial
position, and any other event that could have a significant impact on the value
of the security. The approximate percentages of each funds' long positions
valued using these guidelines and procedures at June 30, 1998, were as follows:
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
OF LONG OF LONG
FUND POSITIONS FUND POSITIONS
<S> <C> <C> <C>
The Contrarian Fund-TM- 1.2% Global Value 0%
Developing Countries 0.3% Growth & Income 8.1%
Diversified Growth 3.8% The Information Age Fund-TM- 0%
Emerging Growth 0% MicroCap Growth 0%
Global-Low Priced Stock 0% Partners 0%
Global Natural Resources 1.1% Value + Growth 0%
</TABLE>
As its normal course of business, some funds may invest a significant portion of
its assets in companies concentrated within a number of industries.
Accordingly, the performance of these funds may be subject to a greater risk of
market fluctuation than that of a fund invested in a wider spectrum of market or
industrial sectors.
b. REPURCHASE AGREEMENTS:
Repurchase agreements are fully collateralized by U.S. government securities.
All collateral is held by the Funds' custodian and is monitored daily to ensure
that the collateral's market value equals at least 100% of the repurchase price
under the agreement. However, in the event of default or bankruptcy, realization
and/or retention of the collateral may be subject to legal proceedings. Each
funds' policy is to limit repurchase agreement transactions to those parties
deemed by the fund's Investment Adviser to have satisfactory creditworthiness.
64
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
c. FEDERAL INCOME TAXES:
The Funds intend to comply with requirements of the Internal Revenue Code,
qualifying as a regulated investment company. Therefore, the Funds do not expect
to be subject to income tax, and no provision for such tax will be made.
d. SECURITIES TRANSACTIONS:
Securities transactions are accounted for on the date securities are purchased,
sold, or sold short (trade date). Realized gains or losses on securities
transactions are determined on the basis of specific identification.
e. FOREIGN CURRENCY TRANSLATION:
The accounting records of the Funds are maintained in U.S. dollars. Investments
securities and all other assets and liabilities of the Funds 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 in effect on the dates of the
respective transactions. The Funds do 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, except certain cash
dividends from foreign securities that are recorded as soon as the funds are
informed of the ex-dividend date. Interest income, which includes accretion of
original issue discount, is accrued and recorded daily.
g. EXPENSES:
Most expenses of the Trust can be directly attributed to a specific fund.
Expenses that cannot be directly attributed to a specific fund are apportioned
between the Funds in the Trust.
h. DISTRIBUTIONS TO SHAREHOLDERS:
Dividends to shareholders are recorded on the ex-dividend date. Income and
capital gain distributions are determined in accordance with income tax
regulations, which may differ from generally accepted accounting principles.
Permanent book and tax basis differences relating to shareholder distributions
will result in reclassifications to paid in capital. Undistributed net
investment income and accumulated undistributed net realized gain/(loss) on
investments and foreign currency transactions may include temporary book and tax
differences which will reverse in a subsequent period. During any particular
year net realized gains from investment transactions, in excess of available
capital loss carryforwards, would be taxable to the Funds if not distributed
and, therefore, will be distributed to shareholders annually. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
i. CLASS ALLOCATIONS:
Income, common expenses, and realized and unrealized gains/(losses) are
determined at the Fund level and allocated daily to each class of shares based
on the appropriate net assets of the respective classes. Transfer agent
expenses, distribution/shareholder service fees, and any other class specific
expenses, if any, are calculated daily at the class level based on the
appropriate daily net assets of each class and the specific expense rate
applicable to each class.
j. 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 Funds.
k. TEMPORARY BORROWINGS:
All funds within the Trust share in a $125 million, uncommitted revolving credit
and/or overdraft protection facility from the Funds' custodian bank for
temporary borrowing purposes, including the meeting of redemption requests that
otherwise might require the untimely disposition of securities. Interest is
calculated based on the market rates at the time of borrowing. The Funds may
borrow up to a maximum of 10 percent of their total assets under the agreement.
NOTE 2 CAPITAL SHARES:
a. TRANSACTIONS:
The Funds have authorized an unlimited number of shares of beneficial interest
with no par value divided into two classes designated Class A and Class C.
Transactions in capital shares for Class A for the period ended June 30, 1998,
and the year ended December 31, 1997 are outlined below. Transactions in
capital shares for Class C for the period ended June 30, 1998, and the period
from each funds' respective Commencement of Operations dates through December
31, 1997, are also detailed on the following page.
65
<PAGE>
SEMIANNUAL REPORT
<TABLE>
<CAPTION>
(ALL NUMBERS IN THOUSANDS) TRANSACTIONS IN CAPITAL SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
THE CONTRARIAN FUND-TM- DEVELOPING COUNTRIES DIVERSIFIED GROWTH FUND
-------------------------------------- ------------------------------------- ------------------ ------------------
CLASS A 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Shares Sold 2,843 $33,279 24,871 $405,584 2,450 $18,208 11,034 $114,041 3,909 $60,420 8,500 $127,513
Shares
Reinvested - - 234 2,919 - - 100 841 - - 735 9,789
Shares
Redeemed (11,205) (128,271) (54,963) (821,238) (4,049) (30,273) (12,670) (127,942) (4,623) (69,948) (8,316) (117,219)
Net Increase/
(Decrease) (8,362) (94,992) (29,858) (412,735) (1,599) (12,065) (1,536) (13,060) (714) (9,528) 919 20,083
CLASS C 1/1/98 - 6/30/98 4/14/97* - 12/31/97 1/1/98 - 6/30/98 5/8/97* - 12/31/97 1/1/98 - 6/30/98 9/8/97* - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 40 $467 418 $6,482 - $3 14 $127 23 $347 24 $385
Shares
Reinvested - - 2 27 - - 0 1 - - 3 37
Shares
Redeemed (148) (1,686) (69) (871) - 3 (5) (42) (2) (37) - (6)
Net Increase/
(Decrease) (108) (1,219) 351 5,638 - - 9 86 21 310 27 416
- ------------------------------------------------------------------------------------------------------------------------------------
EMERGING GROWTH GLOBAL LOW-PRICED STOCK GLOBAL NATURAL RESOURCES
-------------------------------------- ------------------------------------- ------------------ ------------------
CLASS A 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 9,202 $193,417 11,340 $243,171 62 $664 2,308 $32,418 1,807 $21,399 11,041 $156,745
Shares
Reinvested - - 2,817 52,112 - - 62 741 - - 106 1,313
Shares
Redeemed (8,086) (167,318) (11,348) (241,038) (746) (7,915) (3,498) (47,520) (3,840) (44,805) (12,866) (176,232)
Net Increase/
(Decrease) 1,116 26,099 2,809 54,245 (684) (7,251) (1,128) (14,361) (2,033) (23,406) (1,719) (18,174)
CLASS C 1/1/98 - 6/30/98 5/8/97* - 12/31/97 1/1/98 - 6/30/98 5/20/97* - 12/31/97 1/1/98 - 6/30/98 7/30/97* - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 18 $367 16 $354 - $ - 6 $ 78 2 $ 20 $ 4 59
Shares
Reinvested - - 3 63 - - - 3 - - - -
Shares
Redeemed (5) (87) (1) (22) (1) (8) (1) (15) - - (1) (23)
Net Increase/
(Decrease) 13 280 18 395 (1) (8) 5 66 2 20 3 36
- ------------------------------------------------------------------------------------------------------------------------------------
GLOBAL VALUE GROWTH & INCOME INFORMATION AGE
-------------------------------------- ------------------------------------- ------------------ ------------------
CLASS A 1/1/98 - 6/30/98 4/1/97** - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 410 $4,870 2,703 $28,682 2,828 $40,981 8,696 $130,701 10,058 $131,071 25,505 $335,204
Shares
Reinvested - - 133 1,440 - - 4,209 55,648 - - 344 4,278
Shares
Redeemed (534) (10,297) (951) (10,515) (6,761) (96,503) (13,562) (196,456) (11,420) (148,921) (25,010) (322,525)
Net Increase/
(Decrease) (124) (5,427) 1,885 19,607 (3,933) (55,522) (657) (10,107) (1,362) (17,850) 839 16,957
CLASS C 1/1/98 - 6/30/98 7/1/97* - 12/31/97 1/1/98 - 6/30/98 5/9/97* - 12/31/97 1/1/98 - 6/30/98 7/11/97* - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 7 $87 89 $962 33 $454 90 $1,413 7 $89 7 $116
Shares
Reinvested - - 1 11 - - 16 217 - - 1 3
Shares
Redeemed (7) (82) (73) (836) (20) (278) (4) (64) (2) (28) (1) (18)
Net Increase/
(Decrease) - 5 17 137 13 176 102 1,566 5 61 7 101
- ------------------------------------------------------------------------------------------------------------------------------------
MICROCAP GROWTH PARTNERS VALUE + GROWTH
-------------------------------------- ------------------------------------- ------------------ ------------------
CLASS A 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97 1/1/98 - 6/30/98 1/1/97 - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 7,147 $113,993 16,945 $249,080 2,436 $41,457 18,004 $283,216 4,345 $108,716 20,071 $566,128
Shares
Reinvested - - - - - - 550 9,196 - - 5,104 121,415
Shares
Redeemed (6,514) (103,007) (10,499) (152,209) (6,336) (106,962) (15,500) (247,605) (9,834) (248,934) (19,315) (525,191)
Net Increase/
(Decrease) 633 10,986 6,446 96,871 (3,900) (65,505) 3,054 44,807 (5,489) (140,218) 5,860 162,352
CLASS C 1/1/98 - 6/30/98 6/18/97* - 12/31/97 1/1/98 - 6/30/98 4/14/97* - 12/31/97 1/1/98 - 6/30/98 5/28/97* - 12/31/97
- ------------------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares Sold 30 $482 103 $1,578 1 $22 70 $1,113 17 $422 69 $1,989
Shares
Reinvested - - - - - - 3 42 - - 10 288
Shares
Redeemed (5) (76) (4) (58) (9) (156) (12) (203) (12) (299) (25) (611)
Net Increase/
(Decrease) 25 406 99 1,520 (8) (134) 61 952 5 123 54 1,606
</TABLE>
* First issuance of Class C shares
** Inception date of Class A shares
66
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
NOTE 3 TRANSACTIONS WITH AFFILIATES:
a. ADVISORY FEES AND EXPENSE LIMITATION:
Under the terms of advisory agreements, which are reviewed and approved annually
by the Board of Trustees, the Funds pay Robertson Stephens & Company Investment
Management, L.P. ("RSIM, L.P.") an investment advisory fee and an administrative
services fee calculated at an annual rate of the average daily net assets of the
Funds as disclosed below.
<TABLE>
<CAPTION>
INVESTMENT ADMINISTRATIVE
FUND ADVISORY FEES SERVICE FEES
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM- 1.50% 0.00%
Developing Countries 1.25% 0.00%
Diversified Growth 1.00% 0.25%
Emerging Growth 1.00% 0.00%
Global-Low Priced Stock 1.00% 0.25%
Global Natural Resources 1.00% 0.25%
Global Value 1.00% 0.25%
Growth & Income 1.00% 0.25%
The Information Age Fund-TM- 1.00% 0.25%
MicroCap Growth 1.25% 0.25%
Partners 1.25% 0.00%
Value + Growth 1.00% 0.00%
- -------------------------------------------------------------------------------
</TABLE>
Note: Effective May 26, 1998, the Administrative Services fee for all funds was
waived.
RSIM, L.P. may voluntarily agree to waive any annual operating expenses,
excluding class-specific expenses and dividend expenses related to short sales,
of the Funds Class A and Class C shares exceeding the annual expense ratio of
any fund.
RSIM, L.P. May recoup waived or reimbursed operating expenses over the
succeeding two years, subject to expense limitations then applicable to the
FUNDS. No previous expense waivers or reimbursements of operating expenses were
recouped by RSIM, L.P. From the Funds during the period ended June 30, 1998.
b. COMPENSATION OF TRUSTEES AND OFFICERS:
Trustees and officers of the Funds who are affiliated persons receive no
compensation from the Funds. Trustees of the Funds who are not interested
persons of the Trust, as defined in the 1940 Act, did collectively receive
compensation and reimbursement of expenses for the period ended June 30, 1998.
c. DISTRIBUTION FEES:
Edgewood Services, Inc., a non-affiliate, has been designated as the Funds'
distributor.
The Funds have entered into agreements with Edgewood Services, Inc. for
distribution services with respect to its Class A and Class C shares and adopted
Plans of Distribution pursuant to Rule 12b-1 under the 1940 Act, where
continuance is reviewed annually by the funds' Board of Trustees. Under these
Plans, Edgewood Services, Inc. is compensated for services in such capacity
including its expenses in connection with the promotion and distribution of the
Funds' Class A and Class C shares. The distribution fees for Class A and Class
C shares are calculated at annual rates based on the average daily net assets
attributed to each class of shares. The following chart details the rate at
which each fund pays fees under the plans (calculated as a percentage of the
average daily net assets attributed to the class of shares in question).
<TABLE>
<CAPTION>
CLASS A CLASS C
FUND 12b-1 FEE 12b-1 FEE
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM-* 0.25% 0.75%
Developing Countries 0.25% 0.75%
Diversified Growth 0.25% 0.75%
Emerging Growth 0.25% 0.75%
Global-Low Priced Stock 0.25% 0.75%
Global Natural Resources 0.25% 0.75%
Global Value 0.25% 0.75%
Growth & Income 0.25% 0.75%
The Information Age Fund-TM- 0.25% 0.75%
Microcap Growth 0.25% 0.75%
Partners 0.25% 0.75%
Value + Growth 0.25% 0.75%
- -------------------------------------------------------------------------------
</TABLE>
*Note: Effective June 10, 1998, the distribution fee calculated for the Class A
shares was reduced from 0.50% to 0.25% of the daily average net assets
attributable to Class A Shares.
The Trust has adopted a Shareholder Servicing Plan for the Class C shares of
each Fund. Under the Plan, each fund pays fees to BancAmerica Robertson Stephens
("BARS") At an annual rate of up to 0.25% of the fund's average daily net assets
of the Class C shares. The Plan contemplates that financial institutions will
enter into shareholder service agreements with BARS to provide administrative
support services to their customers who are fund shareholders. In return for
providing these support services, a financial institution may receive payments
from BARS at a rate not exceeding 0.25% of the average daily net assets of the
Class C shares of each fund for which the financial institution is the financial
institution of record.
e. BROKERAGE COMMISSIONS:
RSIM, L.P. may direct orders for investment transactions to BARS as
broker-dealer, subject to fund policies as regulatory constraints, and the
ability of BARS to provide competitive prices and commission rates. All
investment transactions in which BARS acts as a broker may only be executed on
an agency basis. Subject to certain constraints, the Funds may make purchases of
securities from offerings or underwritings in which BARS has been retained by
the issuer. The amount of brokerage commissions paid to BARS per Fund and their
respective percentages of the total commissions paid during the period ended
June 30, 1998, were as follows:
<TABLE>
<CAPTION>
BROKERAGE PERCENTAGE OF TOTAL
FUND COMMISSIONS COMMISSIONS
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM- $1,000 0.3%
Developing Countries 0 0.0%
Diversified Growth 24,835 4.5%
Emerging Growth 51,345 16.0%
Global-Low Priced Stock 300 0.9%
Global Natural Resources 1,017 0.7%
Global Value 1,455 1.4%
Growth & Income 97,695 10.7%
The Information Age Fund-TM- 9,665 7.6%
MicroCap Growth 0 0.0%
Partners 0 0.0%
Value + Growth 82,910 9.5%
- -------------------------------------------------------------------------------
</TABLE>
67
<PAGE>
SEMIANNUAL REPORT
<TABLE>
<CAPTION>
COST OF INVESTMENTS PURCHASED AND PROCEEDS FROM SECURITIES SOLD SHORT
- ----------------------------------------------------------------------------------------------------------------------------------
ACCUMULATED UNREALIZED
COST OF INVESTMENTS APPRECIATION/DEPRECIATION
PURCHASED/PROCEEDS ON INVESTMENTS AND GROSS UNREALIZED GROSS UNREALIZED
FUND OF SECURITIES SOLD SHORT SECURITIES SOLD SHORT APPRECIATION DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Contrarian Fund-TM- 476,591,503 (136,581,162) 95,492,458 232,073,620
Developing Countries 13,428,866 (5,817,187) 892,729 6,709,916
Diversified Growth 76,472,456 1,263,250 7,484,740 6,221,490
Emerging Growth 270,026,650 49,981,479 59,170,498 9,189,019
Global-Low Priced Stock 4,452,942 (277,738) 198,143 475,881
Global Natural Resources 61,908,472 (12,417,619) 6,009,780 18,426,899
Global Value 15,145,168 715,257 1,100,209 384,952
Growth & Income 231,277,373 36,879,183 44,778,376 7,899,193
The Information Age Fund-TM- 88,555,410 26,803,019 27,997,721 1,194,702
MicroCap Growth 111,913,511 6,258,089 18,799,728 12,541,639
Partners 119,955,924 5,507,232 18,286,788 12,779,556
Value + Growth 556,490,799 191,514,413 192,846,743 1,332,330
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE 4 INVESTMENTS:
a. TAX BASIS OF INVESTMENTS:
The cost of investments purchased and proceeds of securities sold short for
federal income tax purposes at June 30, 1998, for each fund is listed below.
The accumulated net unrealized appreciation/(depreciation) on investments and
securities sold short which consists of gross unrealized appreciation and
depreciation are also disclosed in the chart above.
b. INVESTMENT PURCHASES AND SALES:
The cost of investments purchased and the proceeds from investments sold
(excluding options, securities sold short and short-term investments) for the
period ended June 30, 1998, were as follows:
<TABLE>
<CAPTION>
COST OF INVESTMENTS PROCEEDS FROM
FUND PURCHASED INVESTMENTS SOLD
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM- 18,957,642 66,704,506
Developing Countries 1,147,593 11,795,251
Diversified Growth 156,658,655 162,573,637
Emerging Growth 489,636,188 458,175,556
Global-Low Priced Stock 5,337,541 14,941,435
Global Natural Resources 17,726,658 38,946,155
Global Value 27,936,880 29,038,644
Growth & Income 281,974,760 331,319,059
The Information Age Fund-TM- 146,044,106 171,394,945
MicroCap Growth 72,027,747 46,103,435
Partners 59,001,085 102,216,380
Value + Growth 586,351,626 723,945,556
</TABLE>
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, revaluation of currencies, adverse political, social, and
economic developments, and less reliable information about issuers. Moreover,
securities of many foreign companies and markets may be less liquid and their
prices more volatile than those of U.S. companies and markets.
d. SHORT SALES:
Short sales are transactions in which a fund sells a security it does not own,
in anticipation of a decline in the market value of that security. To complete
such a transaction, the fund must borrow the security to deliver to the buyer
upon the short sale; the fund then is obligated to replace the security
borrowed by purchasing it in the open market at some later date. All funds may
sell securities short, except Emerging Growth, Global Value, and Partners
Funds. The funds will incur a loss if the market price of the security
increases between the date of the short sale and the date on which the funds
replace the borrowed security. The funds will typically realize a gain if the
security declines in value between those dates. All short sales must be fully
collateralized. The funds maintain their collateral in a segregated account
consisting of cash, equities, and/or U.S. government securities sufficient to
collateralize the obligation on the short positions. The funds may also sell
short "against the box" (i.e., the funds enter into a short sale as described
above while holding an offsetting long position in the security which is sold
short). If the funds enter into a short sale against the box, they will hold
an equivalent amount of the securities to cover their position while the short
sale is outstanding. The funds limit the value of short sale positions
(excluding short sales against the box) to 25% (The Contrarian Fund-TM- is
allowed up to 40%) of the fund's total assets in short positions. For the
period ended June 30, 1998, the cost of investments purchased to cover short
sales and proceeds from investments sold short were as follows:
<TABLE>
<CAPTION>
COST OF INVESTMENTS PROCEEDS FROM
PURCHASED TO INVESTMENTS
FUND COVER SHORT SELLS SOLD SHORT
- -------------------------------------------------------------------------------
<S> <C> <C>
The Contrarian Fund-TM- 71,398,520 19,126,519
Developing Countries 2,758,882 2,490,063
Diversified Growth 8,584,407 6,512,970
Emerging Growth 0 0
Global-low Priced Stock 0 0
Global Natural Resources 0 0
Global Value 0 0
Growth & Income 9,918,338 6,880,335
The Information Age Fund-TM- 0 0
Microcap Growth 0 0
Partners 0 0
Value + Growth 0 0
- -------------------------------------------------------------------------------
</TABLE>
68
<PAGE>
ROBERTSON STEPHENS MUTUAL FUNDS
The Contrarian Fund-TM-
Included in the "Other Liabilities, Net" category in the Schedule of Investments
are the following securities sold short where the Fund has purchased the
underlying securities to effectively close out the short positions. Included in
Receivables from Brokers for Securities Sold Short is $22,371,661 for these
short positions. At June 30, 1998, the cost of the associated long positions
and the unrealized appreciation of investments and securities sold short are
$15,543,849 and $6,827,812, respectively. At June 30, 1998, the Fund chose not
to complete the transactions which would have required delivery of the purchased
securities to the lender. The Fund does not consider these boxed positions as
investments.
<TABLE>
<CAPTION>
SECURITIES SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
Avant! Corporation 507,900 $12,570,525
Baan Company, N.V. 12,900 461,175
HCIA, Inc. 105,800 1,362,175
Imp, Inc. 30,000 28,125
The North Face, Inc. 11,300 271,200
Objective Systems Integrators, Inc. 20,400 150,450
Rexall Sundown, Inc. 139,300 4,910,325
Tel-Save Holdings, Inc. 55,500 818,625
Transcrypt International, Inc. 21,200 71,550
- -------------------------------------------------------------------------------
$20,644,150
- -------------------------------------------------------------------------------
</TABLE>
e. RESTRICTED SECURITIES:
A restricted security cannot be resold to the general public without prior
registration under the Securities Act of 1933. If the security is subsequently
reregistered and resold, the issuers would bear the expense of all registrations
at no cost to the fund. Restricted securities are valued according to the
guidelines and procedures adopted by the Funds' Board of Trustees as outlined in
Note 1.a., paragraph 2.
f. 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. When a fund is the writer of index or security
options, the writer of the option grants the buyer of the option the right to
purchase from (call option), or sell to (put option), the writer a designated
instrument at a specified price within a specified period of time. Certain
options, including options on indices, will require cash settlement but the Fund
if the option is exercised.
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 Funds' Board of
Trustees.
NOTE 5 FUND MERGER:
On July 24, 1998, the Partners Fund completed the acquisition of all assets of
the Global Low-Priced Stock Fund.
69
<PAGE>
SEMIANNUAL REPORT
ADMINISTRATION
OFFICERS AND TRUSTEES
Andrew P. Pilara, Jr., Trustee
President
Leonard B. Auerbach, Trustee
President and Chairman of Auerbach Associates, Inc.
John W. Glynn, Jr., Trustee
Principal and Chairman of
Glynn Capital Management
James K. Peterson, Trustee
Former Director of the IBM
Retirement Funds
Terry R. Otton
Chief Financial Officer
Dana K. Welch
Secretary
INVESTMENT ADVISER
Robertson, Stephens & Company
Investment Management, L.P.
555 California Street, Suite 2600
San Francisco, CA 94104
RS Investment Management, Inc.
(Emerging Growth Fund)
555 California Street, Suite 2600
San Francisco, CA 94104
DISTRIBUTOR
Edgewood Services, Inc.
Clearing Operations
P.O. Box 897
Pittsburgh, PA 15230-0897
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 Funds. It is not authorized for distribution to prospective investors
unless preceded or accompanied by an effective prospectus.
Published August 14, 1998
The views expressed in this report were those of the
Funds' portfolio managers as of the date specified,
and may not reflect the views of the portfolio
managers 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
Funds, 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 FUNDS IN UNDERSTANDING THEIR
INVESTMENT IN THE FUNDS AND DO NOT CONSTITUTE
INVESTMENT ADVICE; INVESTORS SHOULD CONSULT THEIR
OWN INVESTMENT PROFESSIONALS AS TO THEIR INDIVIDUAL
INVESTMENT PROGRAMS.
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL ENTITY;
ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF, OR GUARANTEED BY BANK OF AMERICA OR
ANY OF ITS AFFILIATES; AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE
LOSS OF THE PRINCIPAL AMOUNT INVESTED.
72
<PAGE>
FUND LISTINGS
Our Funds are listed in THE WALL STREET JOURNAL, USA TODAY, INVESTOR'S BUSINESS
DAILY, and most local newspapers under the heading Robertson Stephens.
THE ROBERTSON STEPHENS MUTUAL FUNDS
GROWTH
The Diversified Growth Fund
FOCUSING ON SMALL- AND
MID-CAP COMPANIES
Managed By John Wallace
and John Seabern.
The computer quotation symbol is RSDGX.
The Emerging Growth Fund
SEEKING TO INVEST IN AMERICA'S
MOST DYNAMIC, GROWTH-
ORIENTED COMPANIES
Managed by Jim Callinan.
The Computer Quotation Symbol Is RSEGX.
The Information Age Fund-TM-
TARGETING INVESTMENTS IN THE
INFORMATION TECHNOLOGY SECTOR
Managed by Ron Elijah
and Rod Berry.
The Computer Quotation Symbol Is RSIFX.
The MicroCap Growth Fund
FOCUSING ON COMPANIES WITH MARKET
CAPS OF LESS THAN $250 MILLION
Managed by Dave Evans
and Rainerio Reyes.
The Computer Quotation Symbol Is RSMGX.
The Value + Growth Fund
A GROWTH FUND FOR THE
LONG-TERM INVESTOR
Managed by Ron Elijah.
The Computer Quotation Symbol Is RSVPX.
GROWTH & INCOME
The Growth & Income Fund
SEEKING GROWTH WHILE
ATTEMPTING TO MODERATE RISK
Managed by John Wallace.
The Computer Quotation Symbol Is RSGIX.
VALUE
The Global Value Fund
SEEKING UNDERVALUED
INVESTMENTS WORLDWIDE
Managed by Andy Pilara.
The Computer Quotation Symbol Is RSGAX.
The Partners Fund
A SMALL-CAP FUND USING A
CASH FLOW VALUE METHODOLOGY
Managed by Andy Pilara.
The Computer Quotation Symbol is RSPFX.
Global
THE CONTRARIAN FUND-TM-
A GLOBAL HEDGE FUND
Managed by Paul Stephens.
The Computer Quotation Symbol Is RSCOX.
The Global Natural
RESOURCES FUND
PRIMARILY FOCUSING ON HARD
ASSET COMPANIES
Managed by Andy Pilara.
The Computer Quotation Symbol Is RSNRX.
INTERNATIONAL
The Developing Countries Fund
LOOKING FOR GROWING COMPANIES
IN EMERGING MARKETS
Managed by a Team of Investment
Professionals at Robertson Stephens
Investment Management.
The Computer Quotation Symbol Is RSDCX.
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>
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U.S. Postage
[LOGO] PAID
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San Francisco, CA
555 CALIFORNIA STREET, SUITE 2600
SAN FRANCISCO, CALIFORNIA 94104
