bp
[Logo graphic omitted]
BOSTON PARTNERS ASSET MANAGEMENT, L.P.
- -----------------------------------------
BOSTON PARTNERS
LARGE CAP
VALUE FUND
BOSTON PARTNERS
MID CAP
VALUE FUND
Annual Report
August 31, 1997
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
PORTFOLIO MANAGER'S LETTER
September 15, 1997
Dear Shareholders:
We are pleased to provide the report on the results of the Boston Partners
Large Cap Value Fund and Mid Cap Value Fund (the "Funds") for the period ended
August 31, 1997. Our objective in this letter will be to update you on the
results of the Funds, the stock market, and the economy over the past period and
to provide you with our insights as to what you may expect in the future.
At August 31, 1997, the Large Cap Value Fund's Institutional Shares Net
Asset Value (NAV) was $12.46 compared to $10.00 at inception on January 2, 1997.
Therefore the portfolio's total return was 24.60%, compared with 22.91% for the
S&P 500 Index. At August 31, 1997, the Large Cap Value Fund's Investor Shares
Net Asset Value (NAV) was $12.45 compared to $10.20 at inception on January 16,
1997. Therefore the portfolio's total return was 22.06%, compared with 18.21%
for the S&P 500 Index.
At August 31, 1997 the Mid Cap Value Fund's Institutional and Investor
Shares Net Asset Value (NAV)was $11.01 compared to $10.00 at inception on June
2, 1997. Therefore the portfolio's total return was 10.10%, compared with 11.72%
for the Russell 2500 Index.
PORTFOLIO REVIEW
The first eight months of 1997 saw the equities markets move significantly
higher, although the month of August saw the stock market experience its first
meaningful correction in some time, as the S&P 500 Index fell 5.6% for the
month. As often occurs in an environment of generally falling stock prices, the
value style of management outperformed growth strategies during the month of
August. A notable characteristic of the equity market in recent months was the
better performance of small and mid-cap issues compared to larger capitalization
stocks. This marked a sharp reversal of the trend for the last several years
when small and medium capitalization issues were consistently underperforming
large stocks.
Our relative investment performance over the past eight months for Boston
Partners Large Cap Value Fund was strong. Among the individual stocks in the
Large Cap Value Fund that significantly added to relative performance were
Cirrus Logic, VLSI Technology, Gulfstream Aerospace, Travelers Group, and SLM
Holding Company.
A major common thread among many of our large cap holdings is corporate
restructuring. Managements from across a number of industries have been under
increasing pressure from shareholders to enhance their earnings power through
restructurings, which can include major cost cutting initiatives, diverstitures,
acquisitions and spin-offs. The companies that are taking these actions are
typically those that have endured a prolonged period of mediocre to poor
profitability. Among those holdings in the large cap portfolio that are engaged
in some form of restructuring are Dial Corporation, H&R Block, Woolworth, and
Alcatel. We expect this theme to remain an important source of new ideas for the
portfolio.
The first three months since inception of Boston Partners Mid Cap Value
Fund have seen the Russell 2500 move ahead over 11%. This index was lead by the
Technology Sector. We continue to be underweighted in the Technology Sector as
we find few attractively valued stocks in this sector.
<PAGE>
While the broad market has appreciated significantly in recent months and
by most historic measures the market is expensive, our disciplined research
process continues to uncover undervalued securities. Recently we have had a
great deal of success finding mid cap ideas in the consumer sector. One of the
better performing stocks has been Burlington Coat Factory (ticker BCF). BCF
operates a chain of over 250 "off price" apparel stores. BCF s a very
inexpensive stock, trading at 13.5x this years estimated earnings. In addition,
BCF has a large net cash position. The catalyst for improving profitability at
BCF is the sharp improvement in inventory turnover.
CURRENT OUTLOOK
We continue to believe that by virtually any valuation measure, the market
is expensive. Our focus remains finding stocks that are selling at substantial
discounts to the market in terms of price to earnings and price to book ratios.
Additionally, we believe avoiding earnings disappointments is critical; the
market extracts a huge penalty on stocks for even the slightest quarterly
earnings shortfall. Lastly, we believe the continued high volume of
merger/acquisition activity should help our portfolio returns. Corporate buyers
share the same objective as Boston Partners: Purchasing good companies that are
undervalued in the marketplace.
2
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Large Cap Value Institutional Class (1)(2) vs.
S&P 500 Stock Index
[Line graph omitted-Plot points as follows:]
S&P Institutional Investor
01/02/97 $10,000 $10,000 $10,000
03/31/97 10,268 10,330 10,127
06/30/97 11,476 11,920 11,676
08/31/97 12,291 12,460 12,206
Past performance is not predictive of future performance
Large Cap Value Fund -- Institutional Class $12,460
S&P 500 Stock Index $12,291
Total Returns
Since Inception (3)
-------------------
Large Cap Value Fund -- Institutional Class 24.60%
S&P 500 Stock Index 22.91%
- ---------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses.Investors should note that the Fund is an
aggressively managed mutual fund while the indices are either unmanaged and
do not incur expenses and/or are not available for investment.
(2) Boston Partners Asset Management L.P. waived a portion of its advisory fee
and voluntarily agreed to reimburse a portion of the Fund's operating
expenses, if necessary, to maintain the expense limitation as set forth in
the notes to the financial statements. Total returns shown include fee
waivers and expense reimbursements, if any; total returns would have been
lower had there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period January 2, 1997 (commencement of operations) through August
31, 1997.
3
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Large Cap Value Investor Class (1)(2) vs. S&P 500 Stock Index
[Line graph omitted-Plot points as follows:]
S&P Investor
01/16/97 $10,000 $10,000
03/31/97 9,876 10,127
06/30/97 11,600 11,676
08/31/97 11,821 12,206
Past performance is not predictive of future performance
Large Cap Value Fund -- Investor Class $12,206
S&P 500 Stock Index $11,821
Total Returns
Since Inception (3)
-------------------
Large Cap Value Fund -- Investor Class 22.06%
S&P 500 Stock Index 18.21%
- ------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses.Investors should note that the Fund is an
aggressively managed mutual fund while the indices are either unmanaged and
do not incur expenses and/or are not available for investment.
(2) Boston Partners Asset Management L.P. waived a portion of its advisory fee
and voluntarily agreed to reimburse a portion of the Fund's operating
expenses, if necessary, to maintain the expense limitation as set forth in
the notes to the financial statements. Total returns shown include fee
waivers and expense reimbursements, if any; total returns would have been
lower had there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period January 16, 1997 (commencement of operations) through August
31, 1997.
4
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Mid Cap Value Institutional Class (1)(2) vs. Russell 2500 Index
[Line graph omitted-Plot points as follows:]
Institutional Investor Russell
06/02/97 $10,000 $10,000 $10,000
06/30/97 10,330 10,330 10,409
08/31/97 11,010 11,010 11,172
Past performance is not predictive of future performance
Mid Cap Value Fund -- Institutional Class $11,010
Russell 2500 Index $11,172
Total Returns
Since Inception (3)
-------------------
Mid Cap Value Fund -- Institutional Class 10.10%
Russell 2500 Index 11.72%
- ------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses.Investors should note that the Fund is an
aggressively managed mutual fund while the indices are either unmanaged and
do not incur expenses and/or are not available for investment.
(2) Boston Partners Asset Management L.P. waived a portion of its advisory fee
and voluntarily agreed to reimburse a portion of the Fund's operating
expenses, if necessary, to maintain the expense limitation as set forth in
the notes to the financial statements. Total returns shown include fee
waivers and expense reimbursements, if any; total returns would have been
lower had there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period June 2, 1997 (commencement of operations) through August 31,
1997.
5
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Mid Cap Value Investor Class (1)(2) vs. Russell 2500 Index
[Line graph omitted-Plot points as follows:]
Institutional Investor Russell
06/02/97 $10,000 $10,000 $10,000
06/30/97 10,330 10,330 10,409
08/31/97 11,010 11,010 11,172
Past performance is not predictive of future performance
Mid Cap Value Fund -- Investor Class $11,010
Russell 2500 Index $11,172
Total Returns
Since Inception (3)
-------------------
Mid Cap Value Fund -- Investor Class 10.10%
Russell 2500 Index 11.72%
- ------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund and
reflects all Fund expenses.Investors should note that the Fund is an
aggressively managed mutual fund while the indices are either unmanaged and
do not incur expenses and/or are not available for investment.
(2) Boston Partners Asset Management L.P. waived a portion of its advisory fee
and voluntarily agreed to reimburse a portion of the Fund's operating
expenses, if necessary, to maintain the expense limitation as set forth in
the notes to the financial statements. Total returns shown include fee
waivers and expense reimbursements, if any; total returns would have been
lower had there been no assumption of fees and expenses in excess of expense
limitations.
(3) For the period June 2, 1997 (commencement of operations) through August 31,
1997.
6
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1997
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK--99.2%
AEROSPACE/DEFENSE--5.0%
Litton Industries, Inc.* .................. 7,080 $ 353,115
Lockheed Martin Corp. ..................... 5,170 536,064
Northrop Grumman Corp. .................... 3,125 365,820
----------
1,254,999
----------
AIR TRANSPORT--0.8%
Gulfstream Aerospace Corp.* ............... 6,900 204,412
----------
AUTOMOBILE-MANUFACTURING--0.5%
Borg-Warner Automotive, Inc. .............. 2,300 119,887
----------
BANKS & SAVINGS & LOANS--1.4%
Republic New York Corp. ................... 3,400 364,012
----------
BUILDING & BUILDING MATERIALS--0.4%
Clayton Homes, Inc. ....................... 5,400 90,787
----------
BUSINESS SERVICES--0.7%
Dun & Bradstreet Corp. .................... 5,965 167,020
----------
CHEMICALS--0.7%
Agrium, Inc. .............................. 15,480 186,727
----------
COMPUTERS--4.9%
Digital Equipment Corp.* .................. 7,200 309,600
Electronic Data Systems Corp. ............. 5,700 215,531
NCR Corp.* ................................ 7,300 258,694
Quantum Corp.* ............................ 600 21,037
Read-Rite Corp.* .......................... 6,100 174,994
Wang Labs, Inc.* .......................... 12,730 248,235
----------
1,228,091
----------
CONSUMER NON-DURABLES--1.0%
Dial Corp. ................................ 14,660 247,387
----------
CONTAINERS--1.4%
Stone Container Corp. ..................... 20,600 355,350
----------
NUMBER
OF SHARES VALUE
--------- ----------
DIVERSIFIED--1.7%
Canadian Pacific Ltd. ....................... 5,060 $ 147,689
Fortune Brands, Inc. ........................ 1,230 42,281
Kansas City Southern Industries,
Inc. ...................................... 3,030 226,871
----------
416,841
----------
ELECTRIC UTILITIES--0.1%
Texas Utilities Co. ......................... 810 28,249
----------
ELECTRONICS--3.5%
Cirrus Logic Corp.* ......................... 14,000 240,625
VLSI Technology, Inc.* ...................... 19,700 650,100
----------
890,725
----------
ENERGY--3.9%
Calpine Corp.* .............................. 5,380 99,530
CMS Energy Corp. ............................ 6,675 239,883
Entergy Corp. ............................... 15,720 390,052
Illinova Corp. .............................. 4,960 114,080
MAPCO, Inc. ................................. 4,800 144,000
----------
987,545
----------
FINANCIAL SERVICES--8.6%
AMBAC, Inc. ................................. 2,028 163,888
Fannie Mae .................................. 5,965 262,460
H & R Block, Inc. ........................... 7,895 309,879
Lehman Brothers Holdings, Inc. .............. 10,100 443,137
SLM Holding Corp. ........................... 7,400 1,002,700
----------
2,182,064
----------
FOOD & BEVERAGE--0.8%
Chiquita Brands International, Inc. ......... 13,960 198,930
----------
HEALTH CARE--4.4%
Columbia/HCA Healthcare Corp. ............... 12,700 400,844
Lincare Holdings, Inc.* ..................... 4,575 218,170
Nationwide Health Properties, Inc. .......... 4,950 111,994
Trigon Healthcare, Inc.* .................... 2,500 59,687
Wellpoint Health Networks, Inc.* ............ 5,785 314,559
----------
1,105,254
----------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1997
NUMBER
OF SHARES VALUE
--------- ----------
INSURANCE--19.3%
Ace, Ltd. .................................. 4,065 $ 337,903
Allmerica Financial Corp. .................. 7,880 326,035
CIGNA Corp. ................................ 1,500 275,062
Everest Reinsurance Holdings,
Inc....................................... 7,700 278,644
General Re Corp. ........................... 1,500 290,812
Hartford Financial Services Group,
Inc. ..................................... 5,430 433,042
Horace Mann Educators Corp. ................ 3,940 215,222
IPC Holdings Ltd. .......................... 3,320 97,525
Loews Corp. ................................ 11,650 1,187,572
NAC Re Corp. ............................... 3,740 176,248
PartnerRe Ltd. ............................. 9,675 384,581
Renaissance Re Holdings Limited ............ 2,200 93,500
Travelers Group, Inc. ...................... 8,980 570,230
Western National Corp. ..................... 7,730 215,474
----------
4,881,850
----------
LUMBER & BUILDING SUPPLIES--0.5%
Louisiana-Pacific Corp. .................... 5,900 130,538
----------
METALS & MINING--2.1%
Allegheny Teledyne, Inc. ................... 9,740 300,723
Inco, Ltd. ................................. 5,100 138,019
Trinity Industries, Inc. ................... 2,600 103,350
----------
542,092
----------
OIL SERVICES--8.1%
British Petroleum Co. PLC .................. 2,777 235,004
Elf Aquitaine SA ........................... 5,970 332,828
Enserch Exploration, Inc.* ................. 5,398 48,582
Mobil Corp. ................................ 2,666 193,952
Oryx Energy Co.* ........................... 10,200 269,663
Texaco, Inc. ............................... 2,200 253,550
Tosco Corp. ................................ 8,805 291,115
Total SA ................................... 6,000 284,250
Ultramar Diamond Shamrock Corp. ............ 3,945 128,706
----------
2,037,650
----------
NUMBER
OF SHARES VALUE
--------- ----------
PAPER & FOREST PRODUCTS--2.0%
Bowater, Inc. ............................... 2,800 $ 143,325
Caraustar Industries, Inc. .................. 3,947 141,845
Union Camp Corp. ............................ 3,530 209,373
----------
494,543
----------
REAL ESTATE--3.4%
American General Hospitality Corp. .......... 3,735 96,410
Associated Estates Realty Corp. ............. 2,030 46,056
Equity Inns, Inc. ........................... 3,200 46,400
Equity Residential Properties Trust ......... 2,862 139,344
Highwoods Properties, Inc. .................. 1,510 49,075
Home Properties of New York, Inc. ........... 1,715 38,909
Mid-America Apartment
Communities, Inc. ......................... 5,020 137,736
Oasis Residential, Inc. ..................... 1,930 45,114
Prentiss Property Trust ..................... 2,740 75,693
RFS Hotel Investors, Inc. ................... 7,040 130,240
Summit Properties, Inc. ..................... 3,240 64,598
----------
869,575
----------
RETAIL TRADE--5.6%
J.C. Penney Co., Inc. ....................... 4,400 264,000
Toys 'R' Us, Inc.* .......................... 16,000 553,000
Wal-Mart Stores, Inc. ....................... 9,200 326,600
Woolworth Corp.* ............................ 12,300 275,213
----------
1,418,813
----------
STEEL--2.9%
British Steel PLC ........................... 25,800 736,913
----------
TELECOMMUNICATIONS--3.4%
Chris-Craft Industries, Inc.* ............... 5,636 276,516
MCI Communications Corp. .................... 10,900 310,650
Tele Danmark A/S ............................ 10,000 266,875
----------
854,041
----------
TELECOMMUNICATIONS & EQUIPMENT--2.7%
Alcatel Alsthom ADR ......................... 28,100 691,963
----------
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1997
NUMBER
OF SHARES VALUE
--------- ----------
TEXTILES & APPAREL--3.0%
Harcourt General, Inc. .................... 11,200 $ 532,700
Mercantile Stores Co., Inc. ............... 3,575 223,214
----------
755,914
----------
TOBACCO--3.7%
Philip Morris Companies, Inc. ............. 13,300 580,213
RJR Nabisco Holdings Corp. ................ 10,200 355,088
----------
935,301
----------
TOYS--1.1%
Hasbro, Inc. .............................. 10,752 288,960
----------
UTILITIES--1.6%
Long Island Lighting Co. .................. 16,700 412,281
----------
TOTAL COMMON STOCK
(Cost $23,541,995) .................... 25,078,714
----------
PAR
(000) VALUE
-------- ------------
SHORT-TERM INVESTMENT--1.7%
Smith Barney Cash Reserve
09/02/97 ................................ $ 439 $ 439,613
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $439,613) ....................... 439,613
------------
TOTAL INVESTMENTS -- 100.9%
(Cost $23,981,608) ........................ 25,518,327
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS-- (0.9%) ..................... (232,792)
------------
NET ASSETS--100.0% .......................... $ 25,285,535
============
* Non-income producing
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1997
NUMBER
OF SHARES VALUE
--------- --------
COMMON STOCK--94.3%
AEROSPACE/DEFENSE--1.1%
Litton Industries, Inc.* .......................... 956 $ 47,680
--------
AIR TRANSPORT--1.9%
Gulfstream Aerospace Corp.* ....................... 2,723 80,669
--------
AUTO/TRUCK PARTS & EQUIPMENT REPLACEMENT--2.6%
Cummins Engine Co., Inc. .......................... 525 40,392
Federal-Mogul Corp. ............................... 2,033 72,680
--------
113,072
--------
BANKS AND SAVINGS & LOANS--8.4%
Coast Savings Financial, Inc.* .................... 1,639 75,496
Commercial Federal Corp. .......................... 1,776 74,703
Dime Bancorp, Inc. ................................ 2,854 55,118
First Virginia Banks, Inc. ........................ 763 51,979
Golden State Bancorp, Inc. ........................ 3,813 110,100
--------
367,396
--------
BUILDING & BUILDING MATERIALS--2.0%
Clayton Homes, Inc. ............................... 3,300 55,481
Dal-Tile International, Inc.* ..................... 1,790 30,318
--------
85,799
--------
CABLE--1.0%
Essex International, Inc.* ........................ 1,100 42,281
--------
CEMENT--0.9%
Southdown, Inc. ................................... 828 38,864
--------
CHEMICALS--1.0%
Agrium, Inc. ...................................... 3,561 42,955
--------
COMPUTERS--1.1%
NCR Corp.* ........................................ 1,300 46,069
--------
CONSUMER DURABLES--1.7%
Kimball International, Inc. ....................... 1,626 73,170
--------
CONSUMER NON-DURABLES--1.1%
Dial Corp. ........................................ 2,872 48,465
--------
NUMBER
OF SHARES VALUE
--------- --------
CONSUMER PRODUCTS & SERVICES--0.8%
Premark International, Inc. ................... 1,111 $ 33,052
--------
CONTAINERS--1.2%
Stone Container Corp. ......................... 3,003 51,802
--------
DISTRIBUTION--1.1%
Unisource Worldwide Inc. ...................... 2,600 47,125
--------
DIVERSIFIED--4.5%
Dana Corp. .................................... 2,700 124,369
Viad Corp. .................................... 3,830 69,658
--------
194,027
--------
ELECTRONICS--1.1%
Marshall Industries* .......................... 1,228 48,736
--------
ENERGY--2.6%
CMS Energy Corp. .............................. 1,100 39,531
Public Service Co. of New Mexico .............. 1,640 29,930
United Meridian Corp. ......................... 1,092 42,793
--------
112,254
--------
ENVIRONMENTAL SERVICES--0.9%
Rock-Tenn Co. ................................. 1,900 40,375
--------
FINANCIAL SERVICES--2.8%
Lehman Brothers Holdings, Inc. ................ 2,751 120,700
--------
FOOD & BEVERAGE--2.3%
Chiquita Brands International, Inc. ........... 6,560 93,480
The Earthgrains Co. ........................... 114 4,674
--------
98,154
--------
HEALTH CARE--6.6%
Apria Healthcare Group, Inc.* ................. 3,662 64,085
Lincare Holdings, Inc.* ....................... 2,047 97,616
Mariner Health Group, Inc.* ................... 2,000 29,000
Trigon Healthcare, Inc.* ...................... 1,608 38,391
Wellpoint Health Networks, Inc.* .............. 1,078 58,616
--------
287,708
--------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1997
NUMBER
OF SHARES VALUE
--------- --------
INSURANCE--10.8%
Allmerica Financial Corp. ..................... 3,404 $140,840
Everest Re Holdings, Inc. ..................... 2,592 93,798
Horace Mann Educators Corp. ................... 1,509 82,429
Mid Ocean, Ltd. ............................... 1,762 99,994
Western National Corp. ........................ 1,900 52,963
--------
470,024
--------
LUMBER & BUILDING SUPPLIES--0.7%
Louisiana-Pacific Corp. ....................... 1,365 30,201
--------
METALS & MINING--2.1%
Allegheny Teledyne, Inc. ...................... 1,352 41,743
Trinity Industries, Inc. ...................... 1,200 47,700
--------
89,443
--------
OIL SERVICES--6.9%
Oryx Energy Co.* .............................. 2,457 64,957
Tosco Corp. ................................... 2,322 76,771
Ultramar Diamond Shamrock Corp. ............... 2,468 80,519
Valero Energy ................................. 2,409 80,250
--------
302,497
--------
PAPER & FOREST PRODUCTS--1.1%
Caraustar Industries, Inc. .................... 1,300 46,719
--------
PUBLISHING & INFORMATION SERVICES--3.9%
Big Flower Press Holdings, Inc.* .............. 2,320 48,575
Bowne & Co., Inc. ............................. 1,100 31,831
Valassis Communications, Inc.* ................ 2,900 88,088
--------
168,494
--------
RETAIL APPAREL--2.2%
Burlington Coat Factory
Warehouse* .................................. 4,241 97,543
--------
RETAIL TRADE--4.4%
ShopKo Stores, Inc. ........................... 4,994 137,335
Woolworth Corp. ............................... 2,537 56,765
--------
194,100
--------
NUMBER
OF SHARES VALUE
--------- --------
SECURITY SERVICES--2.0%
Pittston Brink's Group ...................... 2,470 $ 87,685
---------
STEEL--1.8%
British Steel PLC ........................... 2,715 77,547
---------
TELECOMMUNICATIONS--2.4%
Chris-Craft Industries, Inc.* ............... 1,372 67,314
Telephone and Data Systems, Inc. ............ 966 38,157
---------
105,471
---------
TEXTILES & APPAREL--3.0%
Harcourt General, Inc. ...................... 1,376 65,446
Mercantile Stores Co., Inc. ................. 1,083 67,620
---------
133,066
---------
TOYS--1.0%
Hasbro, Inc. ................................ 1,651 44,371
---------
TRANSPORTATION--5.3%
BJ's Wholesale Club* ........................ 5,411 156,243
Homebase, Inc.* ............................. 4,111 32,374
Laidlaw, Inc. ............................... 2,949 43,129
---------
231,746
---------
TOTAL COMMON STOCK
(Cost $4,045,818) ....................... 4,099,260
---------
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1997
Par
(000) VALUE
--------- ---------
REPURCHASE AGREEMENTS--2.3%
PNC Capital Markets
(Agreement dated 08/29/97 to be
repurchased at $100,044,
collateralized by $100,000 U.S.
Treasury Note 8.875% due
02/15/99. Market value of
collateral is $104,599)
5.300% 09/02/97 ........................... $ 100 $ 100,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $100,000) ......................... 100,000
-----------
SHORT-TERM INVESTMENT--3.6%
Smith Barney Cash Reserve
09/02/97 .................................. 157 157,077
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $157,077) ......................... 157,077
-----------
TOTAL INVESTMENTS -- 100.2%
(Cost $4,302,895) ........................... 4,356,337
-----------
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.2%) ...................... (8,243)
-----------
NET ASSETS -- 100.0% ........................... $ 4,348,094
===========
* Non-income producing
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1997
<TABLE>
<CAPTION>
LARGE CAP MID CAP
VALUE FUND VALUE FUND
---------------- --------------
<S> <C> <C>
ASSETS
Investments, at value (cost - $23,981,608 and $4,302,895, respectively) ......... $25,518,327 $4,356,337
Receivable for investments sold.. ............................................... -- 33,453
Receivable for Fund shares sold ................................................. 800 --
Receivable from investment adviser .............................................. -- 8,344
Dividends and interest receivable ............................................... 34,375 4,596
----------- ----------
Total assets .................................................................. 25,553,502 4,402,730
----------- ----------
LIABILITIES
Payable for investments purchased ............................................... 252,348 30,757
Accrued expenses and other liabilities. ......................................... 15,619 23,879
----------- ----------
Total liabilities ............................................................. 267,967 54,636
----------- ----------
NET ASSETS
Capital stock, $0.001 par value ................................................. 2,029 395
Paid-in capital ................................................................. 22,573,815 4,251,423
Undistributed net investment income ............................................. 100,151 4,850
Accumulated net realized gain from investments .................................. 1,072,821 37,984
Net unrealized appreciation on investments ...................................... 1,536,719 53,442
----------- ----------
Net assets .................................................................... $25,285,535 $4,348,094
=========== ==========
INSTITUTIONAL CLASS
Net assets ...................................................................... $24,603,045 $3,749,986
Shares outstanding .............................................................. 1,974,034 340,455
----------- ----------
Net asset value, offering and redemption price per share ........................ $12.46 $11.01
=========== ==========
INVESTOR CLASS
Net assets ...................................................................... $ 682,490 $ 598,108
Shares outstanding .............................................................. 54,832 54,308
----------- ----------
Net asset value, offering and redemption price per share ........................ $12.45 $11.01
=========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
LARGE CAP MID CAP
VALUE FUND VALUE FUND
---------------- --------------
FOR THE PERIOD FOR THE PERIOD
JANUARY 2, 1997* JUNE 2, 1997*
THROUGH THROUGH
AUGUST 31, 1997 AUGUST 31, 1997
---------------- --------------
<S> <C> <C>
INVESTMENT INCOME
Dividends ................................................................... $ 159,188 $ 5,928
Interest .................................................................... 25,634 3,807
---------- -------
184,822 9,735
---------- -------
EXPENSES
Advisory fees ............................................................... 63,387 3,606
Co-Administration fees ...................................................... 62,470 18,333
Federal and state registration fees ......................................... 18,473 5,530
Transfer agent fees and expenses ............................................ 44,827 18,221
Custodian fees and expenses ................................................. 15,548 5,492
Printing .................................................................... 12,064 5,377
Audit and legal fees ........................................................ 1,923 716
Distribution fees ........................................................... 363 799
Other ....................................................................... 4,825 1,698
---------- -------
Total expenses before waivers and reimbursements .......................... 223,880 59,772
Less: waivers and reimbursements .......................................... (139,209) (54,887)
---------- -------
Total expenses after waivers and reimbursements ........................... 84,671 4,885
---------- -------
Net investment income ....................................................... 100,151 4,850
---------- -------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investments .......................................... 1,072,821 37,984
Net change in unrealized appreciation on investments ....................... 1,536,718 53,442
---------- -------
Net realized and unrealized gain from investments .......................... 2,609,539 91,426
---------- -------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $2,709,690 $96,276
========== =======
<FN>
- ---------------
*Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP MID CAP
VALUE FUND VALUE FUND
----------------- ---------------
FOR THE PERIOD FOR THE PERIOD
JANUARY 2, 1997* JUNE 2, 1997*
THROUGH THROUGH
AUGUST 31, 1997 AUGUST 31, 1997
----------------- ---------------
<S> <C> <C>
OPERATIONS
Net investment income ...................................................... $ 100,151 $ 4,850
Net realized gain from investments . ....................................... 1,072,821 37,984
Net change in unrealized appreciation on investments . .................... 1,536,718 53,442
----------- -----------
Net increase in net assets resulting from operations. .................... 2,709,690 96,276
----------- ----------
Increase in net assets derived from capital share transactions. ............... 22,575,845 4,251,818
----------- ----------
Total increase in net assets. .............................................. 25,285,535 4,348,094
NET ASSETS
Beginning of period. ....................................................... -- --
----------- ----------
End of period .............................................................. $25,285,535 $4,348,094
=========== ==========
<FN>
- --------------
*Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each class of shares
outstanding, total investment return, ratios to average net assets and other
suppemental data for the period. This information has been derived from
information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND MID CAP VALUE FUND
------------------------------------- ------------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD FOR THE PERIOD
JANUARY 2, 1997* JANUARY 16, 1997* JUNE 2, 1997* JUNE 2, 1997*
THROUGH THROUGH THROUGH THROUGH
AUGUST 31, 1997 AUGUST 31, 1997 AUGUST 31, 1997 AUGUST 31, 1997
--------------- ----------------- --------------- ---------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
CLASS CLASS CLASS CLASS
--------------- ----------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ................. $10.00 $10.20 $10.00 $10.00
------ ------ ------ ------
Net investment income(1) ............................. 0.05 0.02 0.01 0.01
Net realized and unrealized gain on investments(2) ... 2.41 2.23 1.00 1.00
------ ------ ------ ------
Net increase in net assets resulting from operations . 2.46 2.25 1.01 1.01
------ ------ ------ ------
Net asset value, end of period ....................... $12.46 $12.45 $11.01 $11.01
====== ====== ====== ======
Total investment return(3) ........................... 24.60% 22.06% 10.10% 10.10%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ............ $24,603 $683 $3,750 $598
Ratio of expenses to average net assets***(1)(4) ..... 1.00% 1.11% 1.00% 1.10%
Ratio of net investment income to
average net assets***(1) .......................... 1.19% 0.91% 1.08% 0.61%
Portfolio turnover rate**** .......................... 67.16% 67.16% 21.80% 21.80%
Average commission rate per share(5) ................. $0.0397 $0.0397 $0.0348 $0.0348
<FN>
- ---------------
* Commencement of operations.
** Calculated based on shares outstanding on the first and last day of the
respective periods, except for dividends and distributions, if any, which
are based on actual shares outstanding on the dates of distributions.
*** Annualized.
**** Not annualized.
(1) Reflects waivers and reimbursements.
(2) The amount shown for a share outstanding throughout the period is not in
accord with the change in the aggregate gains and losses in investments
during the period because the timing of sales and repurchases of Fund
shares in relation to fluctuating net asset value during the period.
(3) Total return is calculated assuming a purchase of shares on the first day
and a sale of shares on the last day of each period reported and will
include reinvestments of dividends and distributions, if any. Total return
is not annualized.
(4) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratio of
expenses to average net assets annualized for the period ended August 31,
1997 would have been 2.64% and 3.05% for the Institutional Class and the
Investor Class of the Large Cap Value Fund and 12.37% and 12.62% for the
Institutional Class and the Investor Class of the Mid Cap Value Fund.
(5) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period subject to such
commissions.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of
Maryland on February 29, 1988 and is registered under the Investment Company Act
of 1940, as amended, (the "Investment Company Act") as an open-end management
investment company. RBB is a "series fund," which is a mutual fund divided into
separate portfolios. The portfolio is treated as a separate entity for certain
matters under the Investment Company Act, and for other purposes, and a
shareholder of one portfolio is not deemed to be a shareholder of any other
portfolio. Currently RBB has twenty investment portfolios, including the Boston
Partners Large Cap Value Fund and the Boston Partners Mid Cap Value Fund (the
"Funds"). As of the date hereof, Boston Partners Large Cap Value Fund offers
three classes of shares, the Institutional Class, Investor Class, and Advisor
Class, and Boston Partners Mid Cap Value Fund offers two classes of shares, the
Institutional Class and the Investor Class.
RBB has authorized capital of thirty billion shares of common stock of
which 13.67 billion are curently classified into seventy-nine classes. Each
class represents an interest in one of twenty investment portfolios of RBB. The
classes have been grouped into sixteen separate "families," nine of which have
begun investment operations, including the Boston Partners Large Cap Fund, which
commenced investment operations on January 2, 1997 and the Boston Partners Mid
Cap Fund, which commenced operations on June 2, 1997.
PORTFOLIO VALUATION -- The net asset value of the Funds is determined as of
4:00 p.m. eastern time on each business day. The Fund's securities are valued at
the last reported sales price on the national securities exchange or national
securities market on which such shares are primarily traded. If no sales are
reported, as in the case of some securities traded over-the-counter, portfolio
securities are valued at the mean between the last reported bid and asked
prices. Securities for which market quotations are not readily available are
valued at fair market value as determined in good faith by or under the
direction of RBB's Board of Directors. With the approval of the RBB's Board of
Directors, the Funds may use a pricing service, bank or broker-dealer
experienced in such matters to value its securities. The preparation of
financial statements requires the use of estimates by management. Short-term
obligations with maturities of 60 days or less are valued at amortized cost
which approximates market value. Expenses and fees, including investment
advisory and administration fees are accrued daily and taken into account for
the purpose of determining the net asset value of the Funds.
REPURCHASE AGREEMENTS -- The Funds have agreed to purchase securities from
financial institutions subject to the seller's agreement to repurchase them at
an agreed-upon time and price ("repurchase agreements"). The financial
institutions with whom the Funds enter into repurchase agreements are banks and
broker/dealers which Boston Partners Asset Management, L.P. (the Funds'
investment adviser or "Boston Partners") considers creditworthy pursuant to
criteria approved by RBB's Board of Directors. The seller under a repurchase
agreement will be required to maintain the value of the securities as
collateral, subject to the agreement at not less than the repurchase price plus
accrued interest. Boston Partners marks to market daily the value of the
collateral, and, if necessary, requires the seller to maintain additional
securities, to ensure that the value is not less than the repurchase price.
Default by or bankruptcy of the seller would, however, expose the Funds to
possible loss because of adverse market action or delays in connection with the
disposition of the underlying securities.
17
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Transactions are accounted
for on the trade date. The cost of investments sold is determined by use of the
specific identification method for both financial reporting and income tax
purposes in determining realized gains and losses on investments. Interest
income is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. The Funds' net investment income (other than distribution
fees) and unrealized and realized gains and losses are allocated daily to each
class of shares based upon the relative proportion of net assets of each class
at the beginning of the day (after adjusting for current capital share actvity
of the respective classes).
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income, if
any, will be declared and paid at least annually to shareholders. Distributions
from net realized capital gains, if any, will be distributed at least annually.
Income and capital gain distributions are determined in accordance with U.S.
federal income tax regulations which may differ from generally accepted
accounting principles.
U.S. FEDERAL TAX STATUS -- No provision is made for U.S. federal income
taxes as it is the Funds' intention to qualify for and elect the tax treatment
applicable to regulated investment companies under Subchapter M of the Internal
Revenue Code of 1986, as amended, and make the requisite distributions to its
shareholders which will be sufficient to relieve it from U.S. federal income and
excise taxes.
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Boston Partners Asset Management, L.P. serves as the Funds' investment
adviser. For its advisory services, Boston Partners is entitled to receive 0.75%
of the Funds' average daily net assets, computed daily and payable monthly.
The adviser has voluntarily agreed to limit the total operating expenses
for the current and the following fiscal year to a maximum annual level of 1.00%
of the average daily net assets of the Fund's Institutional Shares and 1.25% for
InvestorShares. As necessary, this limitation is effected in waivers of advisory
fees and reimbursements of expenses exceeding the advisory fee. For the period
ended August 31, 1997, investment advisory fees, waivers and reimbursements of
expenses were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY EXPENSE
FUND FEES WAIVER FEES REIMBURSEMENT
- ---- -------- --------- -------- -------------
<S> <C> <C> <C> <C>
Boston Partners Large Cap Value Fund $63,387 $(57,752) $5,635 $(26,104)
Boston Partners Mid Cap Value Fund 3,606 (3,606) -- (32,554)
</TABLE>
The Funds will not pay Boston Partners at a later time for any amounts they
may waive or any amounts which Boston Partners has assumed.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank,
National Association, serves as administrator for the Funds. For providing
administrative services PFPC is entitled to receive a monthly fee equal to an
annual rate of 0.125% of the Funds' average daily net assets, subject to a
minimum monthly fee of $6,250 per Fund.
For the period ended August 31, 1997, PFPC, at their discretion,
voluntarily agreed to waive a portion of their administration fees for the
Funds. For the period ended August 31, 1997, PFPC's administration fees and
related waivers were as follows:
<TABLE>
<CAPTION>
PFPC GROSS PFPC NET PFPC
FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES
- ---- ------------------- ---------- -------------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $50,000 $(25,001) $24,999
Boston Partners Mid Cap Value Fund 18,333 (9,167) 9,166
</TABLE>
18
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In addition, PFPC serves as the Funds' transfer and disbursing agent. PFPC,
at their discretion, voluntarily agreed to waive a portion of their transfer
agency fees for the Funds. For the period ended August 31, 1997, transfer agency
fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS TRANSFER NET TRANSFER
FUND AGENCY FEES WAIVERS AGENCY FEES
- ---- ------------------ ---------- -----------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $44,827 $(21,000) $23,827
Boston Partners Mid Cap Value Fund 18,221 (9,000) 9,221
</TABLE>
Counsellors Funds Services, Inc. ("Counsellors"), a wholly-owned subsidiary
of Warburg, Pincus Counsellors, Inc., provides certain distribution services to
the Funds. As compensation for such distribution services, Counsellors is
entitled to receive a monthly fee equal to an annual rate of 0.15% of the Funds'
average daily net assets.
For the period ended August 31, 1997 Counsellors has, at its discretion,
voluntarily agreed to waive a portion of its distribution fees for the Funds.
For the period ended August 31, 1997, distribution fees and waivers were as
follows:
<TABLE>
<CAPTION>
GROSS
DISTRIBUTION NET DISTRIBUTION
FUND FEES WAIVERS FEES
- ---- ------------ --------- ----------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $12,470 $(9,145) $3,325
Boston Partners Mid Cap Value Fund 605 (444) 161
</TABLE>
These fees are computed daily and paid monthly.
Expenses include Legal fees paid to counsel to the Company, a partner of
which is secretary of the Company.
Expenses include Administrative fees paid to Counsellors whose secretary is
also a director of the Company.
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
August 31, 1997 was $23,992,170 and $4,303,119 for Boston Partners Large Cap
Value Fund and Boston Partners Mid Cap .Value Fund, respectively. Accordingly,
the net unrealized appreciation/(depreciation) of investments are as follows:
<TABLE>
<CAPTION>
NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ -----------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $1,819,847 $(293,690) $1,526,157
Boston Partners Mid Cap Value Fund 132,009 (78,791) 53,218
</TABLE>
For the period ended August 31, 1997, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
FUND PURCHASES SALES
- ---- ----------- ----------
Boston Partners Large Cap Value Fund $31,121,626 $8,653,432
Boston Partners Mid Cap Value Fund 4,634,475 626,641
19
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
4. CAPITAL SHARE TRANSACTIONS
As of August 31, 1997 the Funds each have 50,000,000 shares of $0.001 par
value common stock authorized.
Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
BOSTON PARTNERS LARGE CAP VALUE FUND
----------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
JANUARY 2, 1997* JANUARY 16, 1997*
THROUGH AUGUST 31, 1997 THROUGH AUGUST 31, 1997
----------------------- -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
----------------------- -----------------------
SHARES VALUE SHARES VALUE
--------- ----------- ------ --------
<S> <C> <C> <C> <C>
Shares sold ...................... 2,039,851 $22,696,509 54,832 $645,780
Shares repurchased ............... (65,817) (766,445) -- --
--------- ----------- ------ --------
Net increase ..................... 1,974,034 $21,930,064 54,832 $645,780
========= =========== ====== ========
<FN>
* Commencement of operations
</FN>
</TABLE>
<TABLE>
<CAPTION>
BOSTON PARTNERS MID CAP VALUE FUND
----------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
JUNE 2, 1997* JUNE 2, 1997*
THROUGH AUGUST 31, 1997 THROUGH AUGUST 31, 1997
----------------------- -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
----------------------- -----------------------
SHARES VALUE SHARES VALUE
------- ---------- ------ --------
<S> <C> <C> <C> <C>
Shares sold ...................... 340,455 $3,678,511 55,944 $591,595
Shares repurchased ............... -- -- (1,636) (18,289)
------- ---------- ------ --------
Net increase ..................... 340,455 $3,678,511 54,308 $573,306
======= ========== ====== ========
<FN>
* Commencement of operations
</FN>
</TABLE>
20
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund, Inc.:
We have audited the accompanying statements of assets and liabilities,
including the portfolio of investments, of the Boston Partners Large Cap Value
Fund and Boston Partners Mid Cap Value Fund of The RBB Fund, Inc., as of August
31, 1997 and the related statements of operations, the statements of changes in
net assets and the financial highlights for the period from January 2, 1997
(commencement of operations) through August 31, 1997 for the Boston Partners
Large Cap Value Fund and for the period from June 2, 1997 (commencement of
operations) through August 31, 1997 for the Boston Partners Mid Cap Value Fund.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments owned as of
August 31, 1997, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of the
Boston Partners Large Cap Value Fund and the Boston Partners Mid Cap Value Fund
of The RBB Fund, Inc., as of August 31, 1997 and the results of their
operations, the changes in their net assets and their financial highlights for
the period January 2, 1997 (commencement of operations) through August 31, 1997
for the Boston Partners Large Cap Value Fund and for the period from June 2,
1997 (commencement of operations) through August 31, 1997 for the Boston
Partners Mid Cap Value Fund, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
October 17, 1997
21
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
INVESTMENT ADVISOR
Boston Partners Asset Management, L.P.
One Financial Center, 43rd Floor
Boston, MA 02111
ADMINISTRATOR
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Counsellors Funds Services, Inc
466 Lexington Avenue
New York, NY 10017
CUSTODIAN
PNC Bank, N.A.
200 Stevens Drive
Lester, PA 19113
TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, PA 19103
COUNSEL
Drinker Biddle & Reath L.L.P.
1345 Chestnut Street
Philadelphia, PA 19107
This report is submitted for the general information of the shareholders of each
Fund. It is not authorized for the distribution to prospective investors in the
Funds unless it is preceded or accompanied by a current prospectus which
includes details regarding the Fund's objectives, policies and other
information. Total investment return is based on historical results and is not
intended to indicate future performance. The investment return and principal
value of an investment in the Funds will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than original cost.
