bp
BOSTON PARTNERS ASSET MANAGEMENT, L.P.
LOGO [GRAPHIC OMITTED]
BOSTON PARTNERS
LARGE CAP
VALUE FUND
BOSTON PARTNERS
MID CAP
VALUE FUND
BOSTON PARTNERS
BOND FUND
Semi-Annual Report
February 28, 1998
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
PORTFOLIO MANAGER'S LETTER
March 15, 1998
Dear Shareholders:
We are pleased to provide the report on the results of the Boston Partners
Large Cap Value, Mid Cap Value and Bond Funds for the six month period, unless
otherwise noted, ended February 28, 1998. Our objective in each 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.
PORTFOLIO REVIEW
LARGE CAP VALUE FUND
At February 28, 1998, the Large Cap Value Fund's Institutional Shares and
the Large Cap Value Fund's Investor Shares Net Asset Value performance was as
follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDING ONE YEAR ENDED SINCE INCEPTION* THROUGH
FEBRUARY 28, 1998 FEBRUARY 28, 1998 FEBRUARY 28, 1998 (ANNUALIZED)
----------------- ----------------- ------------------------------
<S> <C> <C> <C>
Large Cap Value Fund Institutional Shares 10.64% 29.82% 31.92%
S&P500(1) 17.63% 35.00% 37.15%
Large Cap Value Fund Investor Shares 10.58% 29.62% 30.71%
S&P 500(1) 17.63% 35.00% 33.10%
<FN>
* Large Cap Value Fund Institutional Shares Inception Date - January 2, 1997
* Large Cap ValueFund Investor Shares Inception Date - January 16, 1997
(1) The S&P 500 Index is an unmanaged Index (with no defined investment
objective) of common stocks, includes reinvestment of dividends, and is a
registered trademark of the Standard and Poor's Corporation.
Returns are historical and include change in share price and reinvestment of
dividends and capital gains. Past performance cannot guarantee future results.
Returns and share price will fluctuate, and redemption value may be more or less
that the original cost. More complete information about the Fund, including
charges and expenses, is provided in the prospectus, which must precede or
accompany this fact sheet and which should be read carefully before investing.
You may obtain additional copies by calling BOSTON PARTNERS ASSET
MANAGEMENT, L.P. AT 1-888-261-4073.
</FN>
</TABLE>
For the record, the equities markets moved significantly higher for the six
months ending February 28, 1998. What has been surprising to us is that these
dramatic gains are coming on the heels of lower earnings expectations and rising
interest rates. Most of the market support came from just a few sectors, namely
finance and technology. This is not surprising as these sectors hold the largest
weighting in the S&P 500 Index, and positive returns were displayed by over 90%
of the companies in these two sectors. In addition, the fact that every sector
posted a positive return affirms the broad based support for the market.
The Boston Partners Large Cap Value Fund took advantage of continued
earnings announcements to make some changes in the portfolio. Stocks that we
sold recently due to price targets being reached were Gulfstream Aerospace, and
Horace Mann Educators. Both securities were contributors to performance but our
analyst felt that there was not enough
<PAGE>
up-side potential to warrant a continued hold. We also trimmed the positions in
Partner Re and Ace insurance for similar reasons, but maintain exposure to both.
On the buy side, we increased our exposure to the technology sector by
initiating small positions in Western Digital and Quantum. Both of these
companies are involved in the production and sale of disk drive units for the PC
industry. Low inventory in the disk drive sector, combined with continued
strength of the PC market bodes well for these two market leaders. Another
addition to the portfolio is a one percent position in Aetna Insurance, a leader
in managed health care. A rebound in earnings estimates combined with a share
repurchase program are catalysts that we believe will drive the stock price
higher. Reebok, a New England based shoe company, was also added this month due
to positive balance sheet trends, low multiples versus its competitors and
recent weakness in the stock price.
CURRENT OUTLOOK
Despite the continued rally in the very large cap stocks (which don't pass
our value muster) we will remain true to our value based investment philosophy.
In the long run this discipline has proven very beneficial so we are confident
in its application. Our stock selection process of looking for stocks that are
selling at substantial discounts to the market in terms of price to earnings and
price to book ratios, that have strong fundamentals and have a catalyst for
change, will continue to be our focus over the coming months.
MID CAP VALUE FUND
At February 28, 1998, the Mid Cap Value Fund's Institutional Shares and the
Mid Cap Value Fund's Investor Shares Net Asset Value performance was as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDING SINCE INCEPTION*
FEBRUARY 28, 1998 THROUGH FEBRUARY 28, 1998
----------------- -------------------------
<S> <C> <C>
Mid Cap Value Fund Institutional Shares 14.78% 26.39%
Mid Cap Value Fund Investor Shares 14.72% 26.32%
Russell 2500 10.00% 22.89%
<FN>
* Mid Cap Value Fund Institutional Shares and Mid Cap Value Investor Shares
Inception Date - June 2, 1997
(1) The Russell 2500 Index is an unmanaged Index (with no defined investment
objective) of common stocks, includes reinvestment of dividends, and is a
registered trademark of the Frank Russell Company.
Returns are historical and include change in share price and reinvestment of
dividends and capital gains. Past performance cannot guarantee future results.
Returns and share price will fluctuate, and redemption value may be more or less
that the original cost. More complete information about the Fund, including
charges and expenses, is provided in the prospectus, which must precede or
accompany this fact sheet and which should be read carefully before investing.
You may obtain additional copies by calling BOSTON PARTNERS ASSET
MANAGEMENT, L.P. AT 1-888-261-4073.
</FN>
</TABLE>
Although the large capitalization stocks have been stealing the limelight
recently, the mid capitalization stocks joined in the equity rally, registering
strong returns in the six months through February 28, 1998. The Boston Partners
Mid Cap Value Fund is proud to report its doing a bit better.
We took advantage of continued earnings announcements to make some changes
in the Boston Partners Mid Cap Value Fund. Stocks that we sold recently due to
price targets being reached were Horace Mann Educators and Ultramar Diamond
Shamrock. Both securities were contributors to performance but we felt that
there was not enough up-side potential to warrant a continued hold. We also
trimmed the positions in Gulfstream Aerospace and America West for similar
reasons, but maintain exposure to both. Chiquita Brands International Inc., the
world's largest producer, processor, and
2
<PAGE>
distributor of America's favorite fruit-bananas, was sold due to continued
disappointment and lack of positive business momentum. On the buy side, we
increased our exposure to the utility sector by initiating a small position in
Detroit Energy, a company which is currently experiencing a favorable regulatory
environment and is inexpensive on a fundamental basis relative to its peer
group. Long Island Bancorp is another new addition to the fund. Reasons for
purchase include attractive fundamentals, strong deposit share in Long Island
and imbedded, but unrealized, value in the balance sheet due to a favorable
legal settlement. Another recent purchase was Sherwin Williams Co., known best
for its paint products. Strong value fundamentals, recent price increases in
paint products and a pickup in housing construction should benefit this company.
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,
that have strong fundamentals and have a catalyst for change. Additionally, we
believe avoiding earnings disappointments is critical; the market extracts a
huge penalty on stocks for even the slightest quarterly earning
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.
BOND FUND
At February 28, 1998, the Bond Fund's Institutional Shares and the Bond
Fund's Investor Shares Net Asset Value performance was as follows:
SINCE INCEPTION*
THROUGH FEBRUARY 27, 1998
-------------------------
Bond Fund Institutional Shares 1.54%
Bond Fund Investor Shares 1.48%
Lehman Aggregate Index 1.21%
* Bond Fund Institutional Shares and Bond Fund Investor Shares Inception Date -
December 31, 1997
(1) The Lehman Aggregate Index is an unmanaged index (with no defined investment
objective) containing fixed rate debt securities rated investment grade or
higher by Moody's Investors Service, Standard & Poors Corporation, or Fitch
Investors Service, in that order. All issues have at least one year to
maturity and an outstanding par value of at least $100 million. The Index is
a registered trademark of the Lehman Brothers,Inc.
Returns are historical and include change in share price and reinvestment of
dividends and capital gains. Past performance cannot guarantee future results.
Returns and share price will fluctuate, and redemption value may be more or less
that the original cost. More complete information about the Fund, including
charges and expenses, is provided in the prospectus, which must precede or
accompany this fact sheet and which should be read carefully before
investing. You may obtain additional copies by calling BOSTON PARTNERS ASSET
MANAGEMENT, L.P. AT 1-888-261-4073.
The Boston Partners Bond Fund began operations on December 31, 1997. During
the first two months of 1998, interest rates moved lower and produced positive
returns. Interest rates moved sharply lower in early January before retreating
and ending February about 0.10% lower than year end. Ten year Treasury Notes
that began the year yielding 5.75%, finished February yielding 5.62%. Sectors
that continued to perform well included mortgages and high yield. In an
environment of fluctuating interest rates, it is often the case that a duration
neutral, security selection style of management will outperform the benchmark.
3
<PAGE>
Our relative investment performance during the past two months for the
Boston Partners Bond Fund was strong. Sectors that significantly added relative
performance were mortgages, high yield, and convertible securities. The fund is
particularly overweighted in mortgage pass-throughs. These high quality
securities continue to offer excellent risk-reward characteristics.
Within the fund, the common theme is to own improving corporate credits and
mortgages with lower prepayment risk. Two corporate holdings were upgraded by
the rating agencies: Tenet Healthcare and Northrup-Grumman. No credits were
downgraded. As always, we maintained duration and yield curve neutrality.
CURRENT OUTLOOK
We continue to view the bond market as offering selective values within
each sector. The fund will continue to overweight mortgages, corporates, and
high yield while underweighting Treasuries. Interest rates will fluctuate, but
this will not sway our commitment to our duration neutral, security selection
process. We continue to believe that divining the future direction of interest
rates is a losers' game.
4
<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
CHART
[GRAPHIC OMITTED]
The plot points for the Large Cap Value Institutional Class were as follows:
Large Cap
Value Fund S&P 500 Stock
Institutional Class Index
1/2/97 $10,000 $10,000
3/31/97 $10,330 $10,268
6/30/97 $11,920 $12,061
8/31/97 $12,460 $12,291
11/30/97 $12,810 $13,112
2/28/98 $13,786 $14,458
- ------------------------------------------------------
Large Cap Value Fund -- Institutional Class $13,786
S&P 500 Stock Index $14,458
- ------------------------------------------------------
- ------------------------------------------------------------
Total Returns
Since Inception(3)
-----------------
Large Cap Value Fund -- Institutional Class 37.86%
S&P 500 Stock Index 44.58%
- ------------------------------------------------------------
- ---------------
(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) Aggregate return for the period January 2, 1997 (commencement of operations)
through February 28, 1998.
5
<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
CHART
[GRAPHIC OMITTED]
The plot points for the Large Cap Value Investor Class were as follows:
Large Cap
Value Fund S&P 500 Stock
Investor Class Index
01/16/97 $10,000 $10,000
03/31/97 $10,127 $9,876
06/30/97 $11,676 $11,601
08/31/97 $12,206 $11,823
11/30/97 $12,549 $12,612
2/28/98 $13,500 $13,907
- -------------------------------------------------------
Large Cap Value Fund -- Investor Class $13,500
S&P 500 Stock Index $13,907
- -------------------------------------------------------
- ---------------------------------------------------------------
Total Returns
Since Inception(3)
------------------
Large Cap Value Fund -- Investor Class 35.00%
S&P 500 Stock Index 39.07%
- ---------------------------------------------------------------
- ---------------
(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) Aggregate return for the period January 16, 1997 (commencement of
operations) through February 28, 1998.
6
<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
CHART
[GRAPHIC OMITTED]
The plot points for the Mid Cap Value Institutional Class were as follows:
Mid Cap
Value Fund Russell 2500
Institutional Class Index
6/2/97 $10,000 $10000
8/31/97 $11,010 $11,172
11/30/97 $11,250 $11,420
2/28/98 $12,639 $12,289
- ----------------------------------------------------
Mid Cap Value Fund -- Institutional Class $12,639
Russell 2500 Index $12,289
- ----------------------------------------------------
- ---------------------------------------------------------------
Total Returns
Since Inception(3)
------------------
Mid Cap Value Fund -- Institutional Class 26.39%
Russell 2500 Index 22.89%
- ---------------------------------------------------------------
- ---------------
(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) Aggregate return for the period June 2, 1997 (commencement of operations)
through February 28, 1998.
7
<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
CHART
[GRAPHIC OMITTED]
The plot points for the Mid Cap Value Investor Class were as follows:
Mid Cap
Value Fund Russell 2500
Investor Class Index
6/2/97 $10,000 $10,000
8/31/97 $11,010 $11,172
11/30/97 $11,240 $11,420
2/28/98 $12,632 $12,289
- ----------------------------------------------
Mid Cap Value Fund -- Investor Class $12,632
Russell 2500 Index $12,289
- ----------------------------------------------
- ---------------------------------------------------------------
Total Returns
Since Inception(3)
------------------
Mid Cap Value Fund -- Investor Class 26.32%
Russell 2500 Index 22.89%
- ---------------------------------------------------------------
- ---------------
(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) Aggregate return for the period June 2, 1997 (commencement of operations)
through February 28, 1998.
8
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK--97.3%
AEROSPACE/DEFENSE--4.3%
Litton Industries, Inc.* ...................... 13,880 $ 864,030
Northrop Grumman Corp. ........................ 7,925 1,101,575
----------
1,965,605
----------
AUTOMOBILE/TRUCK PARTS & EQUIPMENT--4.3%
Dana Corp. .................................... 4,800 261,900
Federal-Mogul Corp. ........................... 5,700 279,656
Ford Motor Co. ................................ 23,400 1,323,562
Lear Corp.* ................................... 2,700 142,762
----------
2,007,880
----------
BROKERAGE SERVICES--1.0%
Morgan Stanley, Dean Witter,
Discover and Co. ............................ 6,300 439,031
----------
BUILDING PRODUCTS--0.7%
Clayton Homes, Inc. ........................... 15,600 310,050
----------
BUSINESS SERVICES--0.9%
Dun & Bradstreet Corp. ........................ 11,765 394,127
----------
CHEMICALS--1.3%
Agrium, Inc. .................................. 29,280 389,790
Union Carbide Corp. ........................... 4,900 227,544
----------
617,334
----------
COMPUTERS--4.3%
Electronic Data Systems Corp. ................. 10,200 446,887
Quantum Corp.* ................................ 11,600 291,450
Seagate Technology, Inc.* ..................... 9,500 230,969
Wang Laboratories, Inc.* ...................... 25,030 697,711
Western Digital Corp.* ........................ 17,300 315,725
----------
1,982,742
----------
CONSUMER DURABLES--1.3%
Whirlpool Corp. ............................... 8,900 594,631
----------
DIVERSIFIED--1.1%
Canadian Pacific Ltd. ......................... 9,360 267,345
Fortune Brands, Inc. .......................... 6,130 243,284
----------
510,629
----------
ELECTRIC UTILITIES--0.5%
Niagara Mohawk Power Corp.* ................... 16,200 207,562
----------
NUMBER
OF SHARES VALUE
--------- ----------
ELECTRONICS--0.5%
Cirrus Logic Corp.* ......................... 600 $ 6,637
Tektronix, Inc. ............................. 5,100 227,587
----------
234,224
----------
ENERGY--5.5%
Calpine Corp.* .............................. 5,380 85,407
DTE Energy Co. .............................. 8,700 319,725
Entergy Corp. ............................... 30,920 894,747
Illinova Corp. .............................. 9,960 276,390
Public Service Co. of New Mexico ............ 18,600 433,613
Unicom Corp. ................................ 16,200 519,413
----------
2,529,295
----------
ENGINEERING & CONSTRUCTION--0.7%
Fluor Corp. ................................. 7,300 343,556
----------
FERTILIZERS--1.1%
IMC Global, Inc. ............................ 13,400 511,712
----------
FINANCIAL SERVICES--9.2%
Ambac Financial Group, Inc. ................. 8,056 428,982
Fannie Mae .................................. 11,265 718,848
H&R Block, Inc. ............................. 15,795 743,352
Lehman Brothers Holdings, Inc. .............. 9,100 573,869
SLM Holding Corp. ........................... 43,300 1,788,831
----------
4,253,882
----------
FOOD & BEVERAGE--1.2%
Chiquita Brands International, Inc. ......... 19,660 264,181
Food Lion, Inc. Class A ..................... 30,000 302,813
----------
566,994
----------
HEALTH CARE--0.9%
Columbia/HCA Healthcare Corp. ............... 15,500 420,438
----------
INSURANCE--17.2%
Ace, Ltd. ................................... 6,065 599,677
Aetna, Inc. ................................. 4,200 366,975
Allmerica Financial Corp. ................... 16,280 1,001,220
Everest Reinsurance Holdings, Inc. .......... 15,600 575,250
General Re Corp. ............................ 2,700 575,100
Hartford Financial Services
Group, Inc. (The) ......................... 9,530 936,323
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
INSURANCE--(CONTINUED)
IPC Holdings, Ltd. .......................... 6,320 $ 195,130
Loews Corp. ................................. 17,850 1,790,578
Partner Re Ltd. ............................. 12,875 627,656
RenaissanceRe Holdings, Ltd. ................ 7,700 333,988
Travelers Group, Inc. ....................... 13,870 773,253
Western National Corp. ...................... 5,530 171,430
----------
7,946,580
----------
LUMBER & BUILDING SUPPLIES--1.3%
Louisiana-Pacific Corp. ..................... 28,400 623,025
----------
METALS & MINING--0.5%
Trinity Industries, Inc. .................... 4,800 241,200
----------
OIL SERVICES--8.7%
British Petroleum Co. plc ................... 7,677 634,792
EEX Corp.* .................................. 16,698 142,977
Elf Aquitaine SA ............................ 9,870 564,441
Mobil Corp. ................................. 8,366 606,012
Oryx Energy Co.* ............................ 2,000 50,875
Sun Company, Inc. ........................... 12,100 483,244
Tosco Corp. ................................. 19,705 731,548
Total SA .................................... 9,900 547,594
Ultramar Diamond Shamrock
Corp ...................................... 7,845 279,968
----------
4,041,451
----------
PAPER & FOREST PRODUCTS--0.9%
Caraustar Industries, Inc. .................. 2,297 77,524
Fort James Corp. ............................ 8,000 363,000
----------
440,524
----------
REAL ESTATE--2.2%
American General Hospitality Corp. .......... 7,535 203,445
Equity Inns, Inc. ........................... 6,400 101,600
Equity Residential Properties Trust ......... 3,362 161,166
Highwoods Properties, Inc. .................. 2,310 80,417
Mid-America Apartment
Communities, Inc. ......................... 6,220 176,104
Prentiss Properties Trust ................... 5,440 145,180
RFS Hotel Investors, Inc. ................... 7,940 143,913
----------
1,011,825
----------
NUMBER
OF SHARES VALUE
--------- ----------
RETAIL TRADE--6.5%
J. C. Penney Co., Inc. .................... 12,500 $ 883,594
Toys 'R' Us, Inc.* ........................ 41,700 1,094,625
Woolworth Corp.* .......................... 43,800 1,040,250
-----------
3,018,469
-----------
SAVINGS & LOAN ASSOCIATIONS--1.8%
Republic New York Corp. ................... 6,900 834,900
-----------
STEEL--2.3%
British Steel plc ......................... 42,700 1,054,156
-----------
TELECOMMUNICATIONS--6.0%
AT&T Corp. ................................ 8,000 487,000
Chris-Craft Industries* ................... 11,136 621,528
MCI Communications Corp. .................. 18,400 879,750
Tele Danmark A/S .......................... 24,500 799,313
-----------
2,787,591
-----------
TEXTILES & APPAREL--4.5%
Harcourt General, Inc. .................... 22,000 1,188,000
Liz Claiborne, Inc. ....................... 6,600 330,000
Mercantile Stores Co., Inc. ............... 1,475 97,073
Reebok International, Ltd.* ............... 8,700 271,331
Warnaco Group, Inc. ....................... 4,900 181,913
-----------
2,068,317
-----------
TOBACCO--3.4%
Philip Morris Companies, Inc. ............. 19,900 864,407
RJR Nabisco Holdings Corp. ................ 20,600 711,988
-----------
1,576,395
-----------
TOYS--1.0%
Hasbro, Inc. .............................. 12,352 448,532
-----------
UTILITIES--2.2%
Long Island Lighting Co. .................. 33,000 1,023,000
-----------
TOTAL COMMON STOCK
(Cost $41,394,543) .................... 45,005,657
-----------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
------ -----------
SHORT-TERM INVESTMENT--2.3%
Smith Barney Cash Reserve
03/02/98 .............................. $1,056 $ 1,055,677
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $1,055,677) ................... 1,055,677
-----------
TOTAL INVESTMENTS--99.6%
(Cost $42,450,220) ...................... 46,061,334
-----------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.4% .................... 187,584
-----------
NET ASSETS--100.0% ......................... $46,248,918
===========
* Non-income producing
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
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK--99.8%
AEROSPACE/DEFENSE--3.6%
Coltec Industries, Inc.* ...................... 32,400 $ 844,646
Litton Industries, Inc.* ...................... 15,656 974,586
----------
1,819,232
----------
AIR TRANSPORT--2.1%
America West Airlines, Inc.* .................. 10,100 250,606
Gulfstream Aerospace Corp.* ................... 19,323 782,581
Midwest Express Holdings, Inc.* ............... 200 9,725
----------
1,042,912
----------
AUTOMOBILE/TRUCK PARTS & EQUIPMENT--6.8%
Dana Corp. .................................... 24,000 1,309,500
Federal-Mogul Corp. ........................... 38,733 1,900,338
Lear Corp.* ................................... 3,600 190,350
----------
3,400,188
----------
AUTOMOBILE-MANUFACTURING--0.9%
Mark IV Industries, Inc. ...................... 19,200 446,400
----------
BUILDING PRODUCTS--2.6%
Clayton Homes, Inc. ........................... 41,600 826,800
Dal-Tile International, Inc.* ................. 21,990 248,762
HomeBase, Inc.* ............................... 35,011 245,077
----------
1,320,639
----------
CHEMICALS--2.3%
Agrium, Inc. .................................. 38,761 516,006
Union Carbide Corp. ........................... 14,000 650,125
----------
1,166,131
----------
COMMERCIAL BANKS--2.5%
Compass Bancshares, Inc. ...................... 9,000 414,000
First Virginia Banks, Inc. .................... 16,994 860,321
----------
1,274,321
----------
NUMBER
OF SHARES VALUE
--------- ----------
COMPUTERS--3.7%
NCR Corp.* .................................. 11,400 $ 357,675
Quantum Corp.* .............................. 12,900 324,112
Seagate Technology, Inc.* ................... 28,800 700,200
Silicon Graphics, Inc.* ..................... 32,000 482,000
----------
1,863,987
----------
CONSUMER DURABLES--3.7%
Whirlpool Corp. ............................. 27,600 1,844,025
----------
CONSUMER PRODUCTS & SERVICES--3.4%
Black & Decker Corp. ........................ 23,300 1,173,737
Sherwin-Williams Co. ........................ 15,700 519,766
----------
1,693,503
----------
CONTAINERS--0.9%
Stone Container Corp.* ...................... 41,200 463,500
----------
DISTRIBUTION--0.4%
Unisource Worldwide, Inc. ................... 13,600 185,300
----------
DIVERSIFIED--2.2%
Aeroquip-Vickers, Inc. ...................... 10,100 586,431
Viad Corp. .................................. 21,930 530,432
----------
1,116,863
----------
ELECTRONICS--2.1%
Tektronix, Inc. ............................. 10,100 450,712
Teradyne, Inc.* ............................. 12,600 594,562
----------
1,045,274
----------
ENERGY--3.0%
DTE Energy Co. .............................. 13,600 499,800
Illinova Corp. .............................. 36,100 1,001,775
----------
1,501,575
----------
ENGINEERING & CONSTRUCTION--0.8%
Fluor Corp. ............................... 8,500 400,031
----------
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
ENTERTAINMENT--0.9%
Brunswick Corp. ............................. 14,300 $ 454,025
----------
FERTILIZERS--2.2%
IMC Global, Inc. ............................ 29,200 1,115,075
----------
FINANCIAL SERVICES--1.5%
Ambac Financial Group, Inc. ................. 14,000 745,500
----------
FOOD & BEVERAGE--1.1%
International Home Foods, Inc.* ............. 20,600 553,625
----------
HEALTHCARE--3.7%
Apria Healthcare Group, Inc.* ............... 2,000 27,250
Mariner Health Group, Inc.* ................. 37,200 564,975
NovaCare, Inc.* ............................. 32,500 455,000
Quorum Health Group, Inc.* .................. 6,800 188,487
Trigon Healthcare, Inc.* .................... 19,208 595,448
----------
1,831,160
----------
INSURANCE--6.1%
Allmerica Financial Corp. ................... 34,300 2,109,450
Everest Reinsurance Holdings, Inc. .......... 25,392 936,330
----------
3,045,780
----------
LUMBER & BUILDING SUPPLIES--2.0%
Louisiana-Pacific Corp. ..................... 45,765 1,003,970
----------
METALS & MINING--2.5%
Trinity Industries, Inc. .................... 24,500 1,231,125
----------
OIL SERVICES--2.9%
Sun Company, Inc. ........................... 14,300 571,106
Tosco Corp. ................................. 7,022 260,692
Valero Energy ............................... 17,909 635,769
----------
1,467,567
----------
PAPER & FOREST PRODUCTS--2.0%
Caraustar Industries, Inc. .................. 13,400 452,250
Rock-Tenn Co. ............................... 28,900 547,294
----------
999,544
----------
NUMBER
OF SHARES VALUE
--------- ----------
PHARMACEUTICALS--2.2%
IVAX Corp.* ................................. 63,800 $ 538,313
Mylan Laboratories, Inc. .................... 26,700 544,013
----------
1,082,326
----------
PUBLISHING & INFORMATION SERVICES--2.6%
Big Flower Holdings, Inc.* .................. 9,520 255,850
Bowne & Co., Inc. ........................... 1,500 63,563
Valassis Communications, Inc.* .............. 25,200 960,750
----------
1,280,163
----------
REAL ESTATE--2.7%
AMB Property Corp.* ......................... 24,000 564,000
Apartment Investment &
Management Co., Class A ................... 7,000 255,063
Prime Group Realty Trust .................... 25,500 522,750
----------
1,341,813
----------
RETAIL APPAREL--0.7%
Burlington Coat Factory
Warehouse ................................. 24,289 368,889
----------
RETAIL-DEPARTMENT STORE--2.6%
Harcourt General, Inc. ...................... 16,400 885,600
Mercantile Stores Co., Inc. ................. 6,283 413,500
----------
1,299,100
----------
RETAIL-DISCOUNT--7.4%
BJ's Wholesale Club, Inc.* .................. 47,311 1,602,660
ShopKo Stores, Inc.* ........................ 20,594 541,880
Woolworth Corp.* ............................ 66,937 1,589,754
----------
3,734,294
----------
SAVINGS & LOAN ASSOCIATIONS--4.0%
Commercial Federal Corp. .................... 33,214 1,174,945
Long Island Bancorp, Inc. ................... 13,700 824,569
----------
1,999,514
----------
SECURITY SERVICES--1.9%
Pittston Brink's Group ...................... 25,170 972,191
----------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
SHIPBUILDING--1.0%
Newport News Shipbuilding, Inc. ........... 18,000 $ 490,500
----------
STEEL--1.0%
AK Steel Holding Corp. .................... 27,500 513,906
----------
TEXTILES & APPAREL--5.8%
Burlington Industries, Inc.* .............. 35,100 581,344
Fruit of the Loom, Inc.* .................. 35,500 1,140,438
Liz Claiborne, Inc. ....................... 1,800 90,000
Reebok International Ltd.* ................ 17,200 536,425
Warnaco Group, Inc. ....................... 14,500 538,313
----------
2,886,520
----------
TOYS--1.1%
Hasbro, Inc. .............................. 14,851 539,277
----------
TRANSPORTATION--0.9%
CNF Transportation, Inc. .................. 12,200 477,325
----------
TOTAL COMMON STOCK
(Cost $47,016,741) .................... 50,017,070
----------
PAR
(000) VALUE
------ ----------
REPURCHASE AGREEMENT--6.0%
PNC Capital Markets
(Agreement dated 02/27/98 to be
repurchased at $3,001,337,
collateralized by $3,015,000
U.S. Treasury Note 5.50% due
01/31/03. Market Value of
collateral is $3,010,628)
5.35%, 03/02/98 ........................ $3,000 $ 3,000,000
------------
TOTAL REPURCHASE AGREEMENT
(Cost $3,000,000) .................... 3,000,000
------------
SHORT-TERM INVESTMENT--1.1%
Smith Barney Cash Reserve
03/02/98 ............................... 547 547,128
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $547,128) ...................... 547,128
------------
TOTAL INVESTMENTS--106.8%
(Cost $50,563,869) ....................... 53,564,198
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS--(6.8%) ..................... (3,433,097)
------------
NET ASSETS--100.0% .......................... $50,131,101
===========
* Non-income producing
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1998
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
PREFERRED STOCK--5.3%
FINANCIAL SERVICES--3.7%
Crescent Real Estate ........................... 10,100 $ 249,975
Equity Residential Properties .................. 8,000 200,000
---------
449,975
---------
INDUSTRIAL GOODS & MATERIALS--1.6%
Amcor Ltd. (Australia) ......................... 4,000 193,000
---------
TOTAL PREFERRED STOCK
(Cost $647,980) ............................ 642,975
---------
PAR
(000)
-----
CORPORATE BONDS--30.7%
BANKS AND SAVINGS & LOANS--5.2%
BB&T Corp. Subordinated Notes
(A3, BBB+)
7.250% 06/15/07 .............................. $150 158,250
Old Kent Financial Corp.
Subordinated Notes (Baa1, A-)
6.625% 11/15/05 .............................. 110 111,100
Riggs National Corp. Debentures
(Ba1, BB-)
9.650% 06/15/09 .............................. 120 143,550
Sovereign Bancorp Subordinated
Notes (N/R, BB+)
8.000% 03/15/03 .............................. 100 104,125
Sovereign Capital Trust I Company
Guarantee Notes (N/A, N/A)
9.000% 04/01/27 .............................. 100 111,750
---------
628,775
---------
ELECTRIC UTILITIES--4.5%
CMS Energy Corp. Senior Notes
(Ba3, BB)
7.375% 11/15/00 .............................. 125 126,063
Consumers Energy Company
(Baa3, BBB+)
6.375% 09/15/03 .............................. 200 198,250
Ohio Edison (Baa2, BBB-)
8.250% 04/01/02 .............................. 210 223,912
---------
548,225
---------
PAR
(000) VALUE
------ ----------
FINANCIAL SERVICES--6.4%
Bank Boston NA Subordinated
Notes (A2, A-)
7.375% 09/15/06 ............................... $120 $127,500
Donaldson, Lufkin & Jenrette
Senior Notes (A3, A-)
6.875% 11/01/05 ............................... 100 102,875
Equitable Companies, Inc.
Senior Notes (A2, A)
9.000% 12/15/04 ............................... 80 91,300
Ford Motor Credit Corp. Senior
Unsubordinated Notes (A1, A)
7.200% 06/15/07 ............................... 100 106,625
Lehman Brothers, Inc. Senior
Subordinated Notes (Baa1, A)
7.625% 06/01/06 ............................... 125 134,219
Travelers Capital III Company
Guarantee Notes (aa3, A+)
7.625% 12/01/36 ............................... 100 108,021
Zions Institutional Capital Trust Co.
Guarantee Notes, Series A (a3, BBB-)
8.536% 12/15/26 ............................... 100 109,125
--------
779,665
--------
GOVERNMENT BONDS--1.8%
Hydro-Quebec Government Guarantee
Notes (A2, A+)
8.625% 06/15/29 ............................... 100 120,750
Panama (Republic Of) Notes (Ba1, BB+)
7.875% 02/13/02 ............................... 100 100,375
--------
221,125
--------
INDUSTRIAL GOODS & MATERIALS--12.8%
Advanced Micro Devices, Inc.
Senior Notes (Ba1, BB-)
11.000% 08/01/03 .............................. 35 37,887
Agco Corp. Senior Subordinated
Notes (Ba1, BB+)
8.500% 03/15/06 ............................... 20 20,825
HMT Technology Corp. Subordinated
Notes (B3, B-)
5.750% 01/15/04 ............................... 300 243,375
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
------ ----------
INDUSTRIAL GOODS & MATERIALS--(CONTINUED)
Lenfest Communications, Inc.
Senior Notes (Ba3, BB+)
8.375% 11/01/05 .............................. $100 $ 104,000
News America Holdings Debentures
(Baa3, BBB-)
7.700% 10/30/25 .............................. 50 52,625
Northrop-Gruman Corp. Notes
(Baa3, BBB-)
7.000% 03/01/06 .............................. 115 119,456
Philip Morris Co., Inc. Notes (A2, A)
6.800% 12/01/03 .............................. 150 153,000
Southdown, Inc. Senior Subordinated
Notes, Series B (Ba2, BB-)
10.000% 03/01/06 ............................. 100 111,250
TCI Communications, Inc.
Senior Notes (Ba1, BBB-)
8.650% 09/15/04 .............................. 50 55,000
Tele-Communications, Inc.
Debentures (Ba1, BBB-)
9.800% 02/01/12 .............................. 125 156,094
Tenet Healthcare Corp.
Senior Notes (Ba1, BB)
8.625% 12/01/03 .............................. 100 106,372
TKR Cable, Inc. Debentures
(Ba3, BBB-)
10.500% 10/30/07 ............................. 25 27,719
USG Corp. Senior Notes (Ba1, BBB)
9.250% 09/15/01 .............................. 105 114,187
Westpoint Stevens, Inc.
Senior Notes (Ba3, BB-)
8.750% 12/15/01 .............................. 125 131,250
Whole Foods Market Inc. 144A
Subordinated Debentures (B2, BB-)
0.000% 03/02/18 .............................. 335 129,603
----------
1,562,643
----------
TOTAL CORPORATE BONDS
(Cost $3,752,693) .......................... 3,740,433
----------
PAR
(000) VALUE
------ ----------
AGENCY OBLIGATIONS--46.1%
FEDERAL NATIONAL MORTGAGE ASSOCIATION--17.9%
FNMA 251197
7.500% 09/01/12 ............................... $392 $ 403,572
FNMA 281054
6.500% 04/01/24 ............................... 446 442,125
FMNA 190945
6.000% 05/01/24 ............................... 440 426,841
FNMA 411518
7.500% 10/01/27 ............................... 494 507,660
FNMA 251499
7.000% 02/01/28 ............................... 394 398,806
----------
2,179,004
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--28.2%
GNMA 354662
6.500% 09/15/08 ............................... 136 136,921
GNMA 780303
6.500% 02/15/09 ............................... 357 360,439
GNMA 376528
7.000% 05/15/09 ............................... 303 310,080
GNMA 433435
6.500% 02/15/12 ............................... 377 380,208
GNMA 454925
7.000% 12/15/12 ............................... 444 453,986
GNMA 780687
8.000% 12/15/12 ............................... 391 407,122
GNMA 407234
6.500% 01/15/13 ............................... 100 100,782
GNMA 449474
7.500% 09/15/27 ............................... 116 118,835
GNMA 451439
7.500% 09/15/27 ............................... 497 510,796
GNMA 453892
7.500% 11/15/27 ............................... 252 259,129
GNMA 372475
7.000% 01/15/28 ............................... 396 400,119
----------
3,438,417
----------
TOTAL AGENCY OBLIGATIONS
(Cost $5,604,254) ........................... 5,617,421
----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
------ ----------
ASSET BACKED SECURITIES--2.2%
California Infrastructure SCE-1,
Series 1997-1, Class A6
6.380% 09/25/08 ......................... $200 $ 203,125
MBNA Master Credit Card Trust,
Series 1995-C, Class A
6.450% 02/15/08 ......................... 60 61,251
----------
TOTAL ASSET BACKED SECURITIES
(Cost $263,283) ....................... 264,376
----------
U.S. TREASURY OBLIGATIONS--12.8%
U.S. TREASURY BONDS--10.5%
U.S. Treasury Bonds
7.250% 05/15/16 ......................... 400 455,832
7.125% 02/15/23 ......................... 715 817,345
----------
1,273,177
----------
U.S. TREASURY NOTES--2.3%
U.S. Treasury Notes
5.750% 10/31/00 ......................... 190 190,771
7.875% 11/15/04 ......................... 50 56,041
6.875% 05/15/06 ......................... 35 37,613
----------
284,425
----------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $1,551,695) ..................... 1,557,602
----------
PAR
(000) VALUE
------ -----------
VARIABLE RATE OBLIGATIONS--1.7%
Republic of Venezuela Debentures,
Series DL (Ba2, B+)
6.813% 12/18/07 ......................... $238 $ 211,321
-----------
TOTAL VARIABLE RATE
OBLIGATIONS
(Cost $214,529) ....................... 211,321
-----------
SHORT-TERM INVESTMENT--1.2%
Smith Barney Cash Reserve
03/02/98 ................................ 146 145,641
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $145,641) ....................... 145,641
-----------
TOTAL INVESTMENTS--100.0%
(Cost $12,180,075) ........................ 12,179,769
-----------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.0% ...................... 618
-----------
NET ASSETS--100.0% ........................... $12,180,387
===========
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LARGE CAP MID CAP
VALUE FUND VALUE FUND BOND FUND
----------- ----------- -----------
<S> <C> <C> <C>
Assets
Investments, at value (cost - $42,450,220, 50,563,869 and
$12,180,075, respectively) .......................................... $46,061,334 $53,564,198 $12,179,769
Receivable for investments sold ....................................... 667,343 918,381 --
Receivable for Fund shares sold ....................................... 505,516 43,371 --
Receivable from investment advisor .................................... -- 5,124 15,089
Receivable Other ...................................................... -- 51,507 --
Dividends and interest receivable ..................................... 74,719 50,099 131,810
----------- ----------- -----------
Total assets ........................................................ 47,308,912 54,632,680 12,326,668
----------- ----------- -----------
LIABILITIES
Payable for investments purchased ..................................... 1,015,319 4,447,132 124,764
Accrued expenses and other liabilities ................................ 44,675 54,447 21,517
----------- ----------- -----------
Total liabilities ................................................... 1,059,994 4,501,579 146,281
----------- ----------- -----------
NET ASSETS
Capital stock, $0.001 par value ....................................... 3,547 4,019 1,208
Paid-in capital ....................................................... 41,906,180 46,498,105 12,099,078
Undistributed net investment income ................................... 61,484 42,448 3,964
Accumulated net realized gain from investments ........................ 666,593 586,200 76,443
Net unrealized appreciation/(depreciation) on investments ............. 3,611,114 3,000,329 (306)
----------- ----------- -----------
Net assets .......................................................... $46,248,918 $50,131,101 $12,180,387
=========== =========== ===========
INSTITUTIONAL CLASS
Net assets ............................................................ $45,411,789 $48,682,908 $12,175,308
----------- ----------- -----------
Shares outstanding .................................................... 3,482,864 3,902,586 1,208,060
----------- ----------- -----------
Net asset value, offering and redemption price per share .............. $13.04 $12.47 $10.08
=========== =========== ===========
INVESTOR CLASS
Net assets ............................................................ $837,129 $1,448,193 $5,079
----------- ----------- -----------
Shares outstanding .................................................... 63,481 116,888 504
----------- ----------- -----------
Net asset value, offering and redemption price per share .............. $13.19 $12.39 $10.08
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
LARGE CAP MID CAP
VALUE FUND VALUE FUND BOND FUND*
------------ ------------ -----------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends ........................................................ $ 298,116 $ 81,296 $ --
Interest ......................................................... 52,851 38,208 115,429
---------- ---------- --------
350,967 119,504 115,429
---------- ---------- --------
EXPENSES
Advisory fees .................................................... 126,278 52,735 7,452
Transfer agent fees and expenses ................................. 39,241 37,331 12,190
Administration fees .............................................. 37,500 37,500 12,903
Administrative service fees ...................................... 24,677 9,810 2,793
Custodian fees and expenses ...................................... 19,117 13,192 750
Printing ......................................................... 17,055 14,023 3,141
Federal and state registration fees .............................. 10,224 11,824 6,577
Audit and legal fees ............................................. 6,012 2,306 683
Other ............................................................ 2,324 1,824 1,477
Distribution fees ................................................ 970 1,229 2
Insurance ........................................................ 407 258 126
Directors ........................................................ 329 293 126
---------- ---------- --------
Total expenses before waivers and reimbursements ............... 278,134 182,325 48,220
Less: waivers and reimbursements ............................... (115,375) (111,520) (37,041)
---------- ---------- --------
Total expenses after waivers and reimbursements ................ 168,759 70,805 11,179
---------- ---------- --------
Net investment income ............................................ 182,208 48,699 104,250
---------- ---------- --------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investments ............................... 1,187,561 660,220 76,443
Net change in unrealized appreciation/(depreciation)
on investments ................................................. 2,074,396 2,946,887 (306)
---------- ---------- --------
Net realized and unrealized gain from investments ................ 3,261,957 3,607,107 76,137
---------- ---------- --------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................ $3,444,165 $3,655,806 $180,387
========== ========== ========
<FN>
- ----------
**Commenced operations on December 31, 1997.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND MID CAP VALUE FUND BOND FUND
----------------------------------- ---------------------------------- -----------------
FOR THE PERIOD
FOR THE SIX FOR THE PERIOD FOR THE SIX FOR THE PERIOD DECEMBER 31, 1997*
MONTHS ENDED JANUARY 2, 1997* MONTHS ENDED JUNE 2, 1997* THROUGH
FEBRUARY 28, 1998 THROUGH FEBRUARY 28, 1998 THROUGH FEBRUARY 28, 1998
(UNAUDITED) AUGUST 31, 1997 (UNAUDITED) AUGUST 31, 1997 (UNAUDITED)
----------------- ---------------- ----------------- --------------- ------------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income ................ $ 182,208 $ 100,151 $ 48,699 $ 4,850 $ 104,250
Net realized gain from investments ... 1,187,561 1,072,821 660,220 37,984 76,443
Net change in unrealized appreciation/
(depreciation) on investments ...... 2,074,396 1,536,718 2,946,887 53,442 (306)
----------- ----------- ----------- ---------- -----------
Net increase in net assets resulting
from operations .................... 3,444,165 2,709,690 3,655,806 96,276 180,387
----------- ----------- ----------- ---------- -----------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income
Institutional shares ............... (216,811) -- (10,109) -- (100,247)
Net investment income
Investor shares .................... (4,064) -- (992) -- (39)
Net realized capital gains
Institutional shares ............... (1,561,759) -- (92,752) -- --
Net realized capital gains
Investor shares .................... (32,030) -- (19,252) -- --
----------- ----------- ----------- ---------- -----------
Total dividends and distributions to
shareholders ....................... (1,814,664) -- (123,105) -- (100,286)
----------- ----------- ----------- ---------- -----------
INCREASE IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS ........... 19,333,882 22,575,845 42,250,307 4,251,818 12,100,286
----------- ----------- ----------- ---------- -----------
Total increase in net assets ......... 20,963,383 25,285,535 45,783,008 4,348,094 12,180,387
NET ASSETS
Beginning of period .................. 25,285,535 -- 4,348,094 -- --
----------- ----------- ----------- ---------- -----------
End of period ........................ $46,248,918 $25,285,535 $50,131,101 $4,348,094 $12,180,387
=========== =========== =========== ========== ===========
<FN>
- ----------
* Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<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 respective periods. This information has been derived
from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
---------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED JANUARY 2, 1997* ENDED JANUARY 16, 1997*
FEBRUARY 28, 1998 THROUGH FEBRUARY 28, 1998 THROUGH
(UNAUDITED) AUGUST 31, 1997 (UNAUDITED) AUGUST 31, 1997
----------------- --------------- ----------------- ----------------
INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS
----------------- --------------- ----------------- ----------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .................. $ 12.46 $ 10.00 $ 12.45 $ 10.20
------- ------- ------- -------
Net investment income(1) .............................. 0.05 0.05 0.05 0.02
Net realized and unrealized gain on investments(2) .... 1.22 2.41 1.23 2.23
------- ------- ------- -------
Net increase in net assets resulting from operations .. 1.27 2.46 1.28 2.25
------- ------- ------- -------
Dividends to shareholders from:
Net investment income ................................. (0.08) -- (0.06) --
Gain/(loss) in investments ............................ (0.61) -- (0.48) --
------- ------- ------- -------
Net asset value, end of period ........................ $ 13.04 $ 12.46 $ 13.19 $ 12.45
======= ======= ======= =======
Total investment return(3) ............................ 5.16% 24.60% 5.18% 22.06%
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ............. $45,412 $24,603 $837 $683
Ratio of expenses to average net assets***(1)(4) ...... 1.00% 1.00% 1.10% 1.11%
Ratio of net investment income to average
net assets(1)(6) ................................... 1.08% 1.19% 0.97% 0.91%
Portfolio turnover rate(7) ............................ 44.56% 67.16% 44.56% 67.16%
Average commission rate per share(5) .................. $0.0480 $0.0397 $0.0480 $0.0397
<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.
(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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MID CAP VALUE FUND
-----------------------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE PERIOD
ENDED JUNE 2, 1997* ENDED JUNE 2, 1997*
FEBRUARY 28, 1998 THROUGH FEBRUARY 28, 1998 THROUGH
(UNAUDITED) AUGUST 31, 1997 (UNAUDITED) AUGUST 31, 1997
----------------- --------------- ----------------- ---------------
INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .................. $ 11.01 $ 10.00 $ 11.01 $ 10.00
------- ------- ------- -------
Net investment income(1) .............................. 0.01 0.01 0.01 0.01
Net realized and unrealized gain on investments(2) .... 1.60 1.00 1.59 1.00
------- ------- ------- -------
Net increase in net assets resulting from operations .. 1.61 1.01 1.60 1.01
------- ------- ------- -------
Dividends to shareholders from:
Net investment income ................................. (0.01) -- (0.01) --
Gain/(loss) in investments ............................ (0.14) -- (0.21) --
------- ------- ------- -------
Net asset value, end of period ........................ $ 12.47 $ 11.01 $ 12.39 $ 11.01
======= ======= ======= =======
Total investment return(3) ............................ 9.00% 10.10% 9.07% 10.10%
======= ======= ======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ............. $48,683 $ 3,750 $ 1,448 $ 598
Ratio of expenses to average net assets***(1)(4) ...... 1.00% 1.00% 1.09% 1.10%
Ratio of net investment income to average
net assets(1)(6) ................................... 0.72% 1.08% 0.32% 0.61%
Portfolio turnover rate(7) ............................ 68.71% 21.80% 68.71% 21.80%
Average commission rate per share(5) .................. $0.0414 $0.0348 $0.0414 $0.0348
</TABLE>
<TABLE>
<CAPTION>
BOND FUND
---------------------------------------
FOR THE PERIOD FOR THE PERIOD
DECEMBER 30, 1997* DECEMBER 30, 1997*
THROUGH THROUGH
FEBRUARY 28, 1998 FEBRUARY 28, 1998
(UNAUDITED) (UNAUDITED)
------------------ -----------------
INSTITUTIONAL INVESTOR
CLASS CLASS
------------------ -----------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .................. $ 10.00 $ 10.00
------- -------
Net investment income(1) .............................. 0.09 0.09
Net realized and unrealized gain on investments(2) .... 0.07 0.07
------- -------
Net increase in net assets resulting from operations .. 0.16 0.16
------- -------
Dividends to shareholders from:
Net investment income ................................. (0.08) (0.08)
Gain/(loss) in investments ............................ -- --
------- -------
Net asset value, end of period ........................ $ 10.08 $ 10.08
======= =======
Total investment return(3) ............................ 1.54% 1.48%
======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ............. $12,175 $ 5
Ratio of expenses to average net assets***(1)(4) ...... 0.60% 0.83%
Ratio of net investment income to average
net assets(1)(6) ................................... 5.60% 5.32%
Portfolio turnover rate(7) ............................ 21.40% 21.40%
Average commission rate per share(5) .................. $0.0600 $0.0600
<FN>
(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 periods ended February 28,
1998 and August 31, 1997, respectively, would have been 1.65% and 2.64% for
the Large Cap Value Fund Institutional Class, 1.89% and 3.05% for the Large
Cap Value Fund Investor Class, 2.58% and 12.37% for the Mid Cap Value Fund
Institutional Class, 2.79% and 12.62% for the Mid Cap Value Fund Investor
Class and 2.59% and 2.72%, respectively, for the Institutional Class and
Investor Class of the Bond Fund for the period ended February 28, 1998.
(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.
(6) Annualized.
(7) Not annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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-three investment portfolios, including
Boston Partners Large Cap Value Fund ("Large Cap Value Fund"), Boston Partners
Mid Cap Value Fund ( "Mid Cap Value Fund") and Boston Partners Bond Fund ("Bond
Fund") (each a "Fund", collectively the "Funds"). As of the date hereof, the
Large Cap Fund offers three clases of shares, Institutional class, Investor
class and Advisor class. The Mid Cap Fund and the Bond Fund each offer two
classes of shares, Institutional class and Investor class.
RBB has authorized capital of thirty billion shares of common stock of
which 14.03 billion are curently classified into eighty-three classes. Each
class represents an interest in one of twenty-three investment portfolios of
RBB. The classes have been grouped into fifteen separate "families," eight of
which have begun investment operations, including the Large Cap Value Fund,
which commenced investment operations on January 2, 1997, the Mid Cap Value
Fund, which commenced operations on June 2, 1997, and the Bond Fund, which
commenced investment operations on December 31, 1997.
PORTFOLIO VALUATION -- The net asset value of the Fund 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 Fund 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.
24
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
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
substantially all 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 Large Cap Value Fund's average daily net assets, 0.80% of the Mid
Cap Value Fund's average daily net assets, and 0.40% of the Bond Fund's average
daily net assets, each computed daily and payable quarterly.
The adviser has voluntarily agreed to limit the Large Cap Value Fund and
the Mid Cap Value Fund's total operating expenses for the current and the
following fiscal year to the extent that such expenses exceeded 1.00% of the
Large Cap Value Fund and the Mid Cap Value Fund's average daily net assets. The
adviser has voluntarily agreed to limit the Bond Fund's total operating expenses
for the current and the following fiscal year to the extent that such expenses
exceeded 0.60% of the Bond Fund's average daily net assets. As necessary, this
limitation is effected in waivers of advisory fees and reimbursements of
expenses exceeding the advisory fee. For the six months ended February 28, 1998,
(unless otherwise indicated) investment advisory fees, waivers and
reimbursements of expenses were as follows:
GROSS NET
ADVISORY ADVISORY EXPENSE FUND
FUND FEES WAIVER FEES REIMBURSEMENT
- ---- -------- -------- -------- -------------
Large Cap Value Fund $126,278 $(60,631) $65,647 --
Mid Cap Value Fund 52,735 (36,678) 16,057 $(30,520)
Bond Fund* 7,452 (7,452) -- (15,089)
* Commenced operations on December 31, 1997.
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.
25
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
For the six months ended February 28, 1998, (unless otherwise indicated)
PFPC, at its discretion, voluntarily agreed to waive a portion of their
administration fees for the Funds. For the six months ended February 28, 1998,
(unless otherwise indicated) PFPC's administration fees and related waivers were
as follows:
PFPC GROSS PFPC NET PFPC
FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES
- ---- ------------------- ---------- -------------------
Large Cap Value Fund $37,500 $(18,066) $19,434
Mid Cap Value Fund 37,500 (18,391) 19,109
Bond Fund* 12,903 (6,452) 6,451
* Commenced operations on December 31, 1997.
In addition, PFPC serves as the Funds' transfer and disbursing agent. PFPC,
at its discretion, voluntarily agreed to waive a portion of its transfer agency
fees for the Funds. For the six months ended February 28, 1998, (unless
otherwise indicated) transfer agency fees and waivers were as follows:
GROSS TRANSFER NET TRANSFER
FUND AGENCY FEES WAIVERS AGENCY FEES
- ---- -------------- -------- ------------
Large Cap Value Fund $39,241 $(18,000) $21,241
Mid Cap Value Fund 37,331 (18,000) 19,331
Bond Fund* 12,190 (6,000) 6,190
* Commenced operations on December 31, 1997.
Counsellors Funds Services, Inc. ("Counsellors"), a wholly-owned subsidiary
of Warburg, Pincus Counsellors, Inc., provides certain administrative services
to the Funds. As compensation for such administrative 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 six months ended February 28, 1998 (unless otherwise indicated),
Counsellors has, at its discretion, voluntarily agreed to waive a portion of its
administrative services fees for the Funds. For the six months ended February
28, 1998 (unless otherwise indicated), administrative services fees and waivers
were as follows:
GROSS
ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICE FEES WAIVERS SERVICE FEES
- ---- -------------- -------- ------------------
Large Cap Value Fund $24,677 $(18,097) $6,580
Mid Cap Value Fund 9,810 (7,194) 2,616
Bond Fund* 2,793 (2,048) 745
* Commenced operations on December 31, 1997.
These fees are computed daily and paid monthly.
26
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
In addition Counsellors serves as the Funds' distributor. Counsellors, at
its discretion, voluntarily agreed to waive a portion of its distribution fees
for the Funds. For the six months ended February 28, 1998 (unless otherwise
noted), distribution fees and waivers were as follows:
GROSS NET
FUND DISTRIBUTION FEES WAIVERS DISTRIBUTION FEES
- ---- ----------------- ------- ------------------
Large Cap Value Fund $ 970 $(582) $388
Mid Cap Value Fund 1,229 (737) 492
Bond Fund 4 (2) 2
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
February 28, 1998 were $42,468,808, $50,576,188 and $12,180,075, respectively,
for the Large Cap Value Fund, the Mid Cap Value Fund and the Bond Fund.
Accordingly, the net unrealized appreciation/(depreciation) of investments are
as follows:
NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ -----------------
Large Cap Value Fund $4,103,238 $(510,712) $3,542,526
Mid Cap Value Fund 3,313,029 (325,019) 2,988,010
Bond Fund 42,499 (42,805) (306)
For the six months ended February 28, 1998 (unless othewise indicated),
aggregate purchases and sales of investment securities (excluding short-term
investments) were as follows:
FUND PURCHASES SALES
- ---- ----------- -----------
Large Cap Value Fund $31,539,039 $14,893,327
Mid Cap Value Fund 53,284,703 10,973,999
Bond Fund* 14,482,257 2,523,704
27
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
(UNAUDITED)
4. CAPITAL SHARE TRANSACTIONS
As of February 28, 1998 the Funds each have 50,000,000 shares of $0.001 par
value common stock authorized.
Transactions in capital shares for the respective periods were as follows:
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
---------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS FOR THE PERIOD FOR THE SIX MONTHS FOR THE PERIOD
ENDED JANUARY 1, 1997* ENDED JANUARY 1, 1997*
FEBRUARY 28, 1998 THROUGH AUGUST 31, 1997 FEBRUARY 28, 1998 THROUGH AUGUST 31, 1997
----------------------- ----------------------- --------------------- -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
------------------------------------------------- -----------------------------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
--------- ----------- --------- ----------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales ............ 1,069,766 $18,003,659 2,039,851 $22,696,509 18,931 $ 288,162 54,832 $645,780
Repurchases ...... (7,264) (548,428) (65,817) (766,445) (9,576) (211,441) -- --
Reinvestments .... 145,610 1,766,251 -- -- 2,908 35,680 -- --
--------- ----------- --------- ----------- ------ --------- ------ --------
Net Increase ..... 1,208,112 $19,221,481 1,974,034 $21,930,064 12,263 $ 112,401 54,832 $645,780
========= =========== ========= =========== ====== ========= ====== ========
<FN>
* Commencement of operations
</FN>
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE FUND
---------------------------------------------------------------------------------------------------
FOR THE SIX MONTHS FOR THE PERIOD FOR THE SIX MONTHS FOR THE PERIOD
ENDED JANUARY 1, 1997* ENDED JUNE 2, 1997*
FEBRUARY 28, 1998 THROUGH AUGUST 31, 1997 FEBRUARY 28, 1998 THROUGH AUGUST 31, 1997
----------------------- ----------------------- --------------------- -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
------------------------------------------------- -----------------------------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
--------- ----------- --------- ----------- --------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales ............ 3,580,678 $41,739,378 340,455 $ 3,678,511 80,073 $ 933,306 55,944 $591,595
Repurchases ...... (27,772) (321,660) -- -- (19,290) (223,256) (1,636) (18,289)
Reinvestments .... 9,224 102,668 -- -- (1,797) (19,870) -- --
--------- ----------- --------- ----------- ------- --------- ------ --------
Net Increase ..... 3,562,130 $41,520,386 340,455 $ 3,678,511 62,580 $ 729,920 54,308 $573,306
========= =========== ========= =========== ======= ========= ====== ========
<FN>
* Commencement of operations
</FN>
</TABLE>
<TABLE>
<CAPTION>
BOND FUND
-----------------------------------------------
FOR THE PERIOD FOR THE PERIOD
DECEMBER 31, 1997* DECEMBER 31, 1997*
THROUGH THROUGH
FEBRUARY 28, 1998 FEBRUARY 28, 1998
---------------------- -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
---------------------- -----------------------
SHARES VALUE SHARES VALUE
--------- ----------- ---------- --------
<S> <C> <C> <C> <C>
Sales ............................................................. 1,198,110 $11,995,000 500 $5,000
Repurchases ....................................................... -- -- -- --
Reinvestments ..................................................... 9,951 100,247 4 39
--------- ----------- ---- ------
Net Increase ...................................................... 1,208,061 $12,095,247 504 $5,039
========= =========== ==== ======
<FN>
* Commencement of operations
</FN>
</TABLE>
28
<PAGE>
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<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<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
1345 Chestnut Street
Philadelphia, PA 19107
The financial information included herein is taken from the records of each Fund
without examination by independent auditors who do not express an opinion
thereon.
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.
