[GRAPHIC OMITTED]
BOSTON PARTNERS ASSET MANAGEMENT, L.P.
BOSTON PARTNERS
LARGE CAP
VALUE FUND
BOSTON PARTNERS
MID CAP
VALUE FUND
BOSTON PARTNERS
MICRO CAP
VALUE FUND
BOSTON PARTNERS
MARKET NEUTRAL FUND
BOSTON PARTNERS
BOND FUND
Annual Report
August 31, 1999
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
PORTFOLIO MANAGER'S LETTER
August 31, 1999
Dear Shareholder:
1999 has provided varied investment results for value managers. At times
Boston Partners has shown its stripes, outperforming the S&P 500 for the 2nd
Quarter for example. At times, with the lack of breadth in the market, Boston
Partners has disappointed. Please take a moment to read the investment
discussion of each of the Boston Partners Family of Funds. We hope each
discussion will provide the market details as well as why we are confident
Boston Partners Funds will vault to our top position again.
BOSTON PARTNERS LARGE CAP VALUE FUND
The Boston Partners Large Cap Value Fund began a volatile period in 1998,
one that has continued in 1999. The net result of this volatility is the Fund's
underperformance of the S&P 500. We spend a great deal of time analyzing the
major market indices, such as the S&P 500 and the Russell 1000 Value. It is
clear from our analysis that the single most important factor in our performance
shortfall year to date through August 1999, was our low price to earnings ratio
bias. As we mentioned in past letters, performance has been very much correlated
with P/E; the higher the P/E, the better the performance. Accordingly, one can
extrapolate that our "deeper" value characteristics contributed to the shortfall
versus the value indices. By selling stocks in a disciplined fashion once they
achieved their price (valuation) targets, we have maintained value
characteristics (P/E, P/B).
With respect to our 1999 YTD returns, it is important to look at the period
in three different segments. The first quarter of 1999, was a repeat of 1998 in
terms of the usual narrowness of the market and the fact that high P/E stocks
again outperformed low P/E stocks.
The second quarter 1999 brought about a much-anticipated broadening of the
market. The performance of the median stock approximated that of the
capitalization weighted average and lower P/E stocks generally performed as well
as or better than the higher P/E stocks.
The months of July and August 1999 have continued a trend that was similar
to 1998 and the first quarter of this year, where there was a wide disparity
between the growth and value styles of investing. In fact, in August, the
disparity between the Russell 1000 Growth Index and the Russell 1000 Value Index
(at 5.34%) was the second largest we've experienced in 93 months. The reason for
the strength in the growth style was the resiliency of technology issues
combined with weakness in consumer stocks. During a month when the Federal
Reserve increased interest rates, Consumer Cyclicals and Financial stocks sold
off, while Technology and high P/E Pharmaceutical stocks flourished. The four
biggest contributors in both the S&P 500 and the Russell 1000 Growth Indexes
were Intel, Microsoft, Cisco and Dell; names that we have seen lead the pack
before. The average P/E for these markets leaders currently stands at 57x! Our
portfolio averages 15x.
There have been a few periods of time in the past 25 years where high P/E
stocks have outperformed lower P/E stocks. In each of those cases, the
investment managers that performed best after those periods have been the ones
that maintained their commitment value investing. Accordingly, Boston Partners
maintains its strong conviction about the current portfolio and is confident in
the philosophy, the process, and the people implementing it.
<PAGE>
BOSTON PARTNERS MID CAP VALUE FUND
While the Boston Partners Mid Cap Value Fund exceeded the Russell 2500
benchmark in the early months of 1999, several factors since adversely affected
the portfolio, which led to an underperformance for year-to-date through August
1999. Market conditions deteriorated throughout the period driven by a tighter
Federal Reserve Policy and a rash of significant earnings shortfalls across
several industries.
Year to date, growth indices have significantly outperformed the value
indices in the mid capitalization market. This outperformance has been almost
entirely driven by the technology sector. We have found selective ideas in this
sector, which meet our disciplined, value-based investment philosophy, but have
maintained a significant underweight in this sector for the past several
quarters. Presently, we belive that the technology sector is significantly
overvalued, and that expectations for earnings growth within this sector are
excessive. Poor performance in the Finance sector also detracted from overall
performance.
We continue to maintain our overweight in the energy sector. However, we
have shifted the focus of the holdings away from the companies with refining and
marketing exposure or gas reserves. We believe the lower crude inventories
created by production cutbacks will lead to expanding refining margins thus
resulting in much better than expected earnings for companies like Tosco
Corporation, Valero Energy, and Tesoro Petroleum. In addition, we believe the
supply/demand dynamics are much better for gas than oil.
Presently, that larger capitalization stocks are significantly more
expensive than smaller capitalization stocks. This valuation gap has reached
historic proportions. We believe there are several catalysts in place that
should serve to help close this gap which we belive will result in mid cap
outperformance. These catalysts include accelerating stock buybacks by smaller
companies, increased merger and acquisition activity, and leveraged buyout
activity.
BOSTON PARTNERS BOND FUND
Following three consecutive quarters of rising interest rates and falling
bond prices, bond prices fell again. The Federal Reserve boosted the Federal
Funds rate another .25% in August which, following a similar increase in May,
takes back two of the three late 1998 "insurance policy" cuts. Reports showing
continued strong economic growth, better global growth with further recovery in
Asia, and rising employment costs suggest the Federal Reserve may raise rates
again later this year.
While interest rates rose and then fell during the period they finished
8-12 basis points higher. From Federal Funds at 5.25% to long Treasuries at
6.05%, the yield curve is compressed into just 80 basis points. This flat
configuration reflects confidence that the Federal Reserve will successfully
contain inflationary pressures stemming from above-trend economic growth and
tight labor markets. Mortgages and corporates generally underperformed in July
and August 1999.
Beneath the undulating surface of rising and then falling Treasury rates,
the performance of "spread product" such as corporate and mortgage securities
endured considerable volatility. Reminiscent of last year, yield spreads in the
mortgage and corporate markets widened to surprising levels. A strong economic
environment is generally positive for corporate yield spreads. Stable or higher
interest rates usually benefit mortgages, due to diminished risk of mortgage
prepayments. However, competition from swap spreads, increased corporate supply
ahead of potential Y2K problems, and the withdrawal of liquidity by dealers and
hedge funds combined to hurt the relative valuation of corporate and mortgage
securities. The high yield and emerging market sectors were especially hard hit.
2
<PAGE>
Our strategies remain unchanged as we believe the yield advantage from
mortgages and corporates is unusually attractive. GNMA 6.5%'s, for example,
offer a 150 basis points yield advantage to comparable Treasuries. With a dollar
price of 95 we belive these securities have little prepayment risk, a
substantial yield advantage and excellent liquidity. We belive this is an
exceptional advantage in an environment of 5.5% government rates.
Corporate bonds generally underperformed during the period. Corporate yield
spreads widened with some spreads reverting back to the distressed levels of
late last year. The best performing corporate sectors included Asian sovereigns,
energy, and chemicals. We continue to favor less cyclical sectors such as the
banking, utilities, and communications sectors. Our core holdings include The
Equitable, MetroNet, Hydro-Quebec and Ford Motor. These bonds exhibit a
combination of attractive yields relative to their peer group and improving cash
flows as evaluated by our industry research analysts. During the quarter we
enjoyed 9 upgrades versus 3 downgrades. Since mid-1995 we have enjoyed 133
upgrades versus 16 downgrades. This 8.3 to 1 ratio compares favorably to a
combined Moody's and Standard & Poor's ratio of less than 1 to 1 over the same
period.
Risk control is extremely important in our management of the Boston
Partners Bond Fund. We check daily to ensure that the level of interest rate
risk is closely matched to the Lehman Aggregate Index. Our procedures also
include attention to yield curve exposure relative to benchmarks, sector
weightings, and diversification.
With minimal interest rate and yield curve exposure relative to the
benchmark, the portfolio is significantly overweighted in the higher yielding
mortgage and corporate sectors. Within the mortgage sector we emphasize current
coupon and seasoned mortgages with less prepayment risk, and within the
corporate sector we focus on issuers with improving credit fundamentals. Yield
and the reinvestment of coupon income drive fixed income returns in the long
run. Therefore, we remain committed to maintaining a yield advantage and risk
controls, as we believe it is the most consistent way to add value over time.
BOSTON PARTNERS MICRO CAP VALUE FUND
While year to date performance for the Boston Partners Micro Cap Value Fund
remains positive, the frustration in the marketplace as a value investor
continues. Growth stocks continue to outperform value stocks for the six month
period as well as year to date, driven largely by the technology sector. Our
disciplined, value based investment philosophy leads to an underweighting in
this sector (upwards of 20% for the CRSP 9-10 Index versus 7% for the Boston
Partners Micro Cap Value Fund), and our lack of exposure to this sector has been
the single largest contributor to our underperformance of the CRSP 9-10 Index.
Presently, we belive that the technology sector is significantly overvalued, and
that expectations for earnings growth within this sector are excessive.
Additionally, the Finance Sector has disappointed investors in 1999, as
most stocks have underperformed. Our overweighting has hurt performance in the
period. The incredible values that are being created in this sector, lead
investors to consider finance stocks to be "good buys" at this time. The Boston
Partners Micro Cap Value Fund recognizes these values, but remains committed to
finding a catalyst for change, before purchasing some of the strong insurers,
brokers and banks.
Presently, we see that larger capitalization stocks are significantly more
expensive than smaller capitalization stocks. This valuation gap has reached
historic proportions. We believe there are several catalysts in place that
should serve to help close this gap which will result in micro cap
outperformance. These catalysts include accelerating stock buybacks by smaller
companies, increased merger and acquisition activity, and leveraged buyout
activity.
3
<PAGE>
BOSTON PARTNERS MARKET NEUTRAL FUND
The market environment of the past eight months of higher price to earnings
stocks outperforming lower price to earnings stocks has been well documented.
Like all of Boston Partner's portfolios, the Market Neutral Fund is based on a
value philosophy and process. Value investing produces positive returns over
time, but not all of the time. This recent period, while short, is one of those
times. Our slight loss, year-to-date, but it certainly underperforms our goal of
besting the Salomon Brothers 30 Day T-Bill Rate.
Our Market Neutral Fund invests long in stocks that we believe are
undervalued with sound business fundamentals and positive business momentum. We
will sell short stocks that are overvalued with deteriorating business
fundamentals and declining business trends. In the first ten and one half months
technology stocks (more specifically internet stocks) that were overvalued and
had no strong balance sheets or earnings, continued to perform well. Our lack of
exposure to this sector on the long side of the Market Neutral Fund was a reason
for our underperformance. While we do not know when this phenomena will change,
we do belive that these companies' prices cannot continue to grow. We belive at
some point in time, fundamentals will become important again. This is when we
belive the Boston Partners Market Neutral Fund will excel.
The short holdings in the Boston Partners Market Neutral Fund have added
basis points to the fund. During the most recent period we have found an
abundance of stocks whose market values were expensive, with financial
statements that were unimpressive, and whose trends towards improvements in
their business were negative. These short stocks that have performed well in the
recent period and include Party City Corporation, Planet Hollywood, and Shick
Technology.
YEAR 2000
The Fund, like any business, could be affected if the computer systems on
which it relies do not properly process information beginning on January 1,
2000. While Year 2000 issues could have a negative effect on the Fund, the
Fund's investment adviser is currently working to avoid such problems. The
Fund's investment adviser is also working with other systems providers and
vendors servicing the Portfolios to determine their systems' ability to handle
Year 2000 problems. There is no guarantee, however, that systems will work
properly on or after January 1, 2000. Year 2000 problems may also hurt issuers
whose securities the Fund holds or securities markets generally.
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
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Large Cap
Value Fund
Institutional S&P 500
Class Stock Index
1/2/97 $10,000 $10,000
2/28/97 10,620 10,708
5/31/97 11,360 11,543
8/31/97 12,460 12,291
11/30/97 12,810 13,112
2/28/98 13,786 14,458
5/31/98 13,828 15,088
8/31/98 11,185 13,288
11/30/98 12,729 16,216
2/28/99 12,383 17,311
5/31/99 13,678 18,259
8/31/99 13,100 18,577
Past performance is not predictive of future performance.
Large Cap Value Fund
Institutional Class $13,100
S&P 500 Stock Index $18,577
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Large Cap Value Fund-- Institutional Class 17.12% 10.67%
S&P 500 Stock Index 39.82% 26.18%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on January 2, 1997 (inception)and reflects all Fund expenses.Investors
should note that the Fund is an aggressively managed mutual fund while the
index is either unmanaged and does not incur expenses and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period January 2, 1997 (commencement of
operations) through August 31, 1999.
5
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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
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Large Cap
Value Fund
Investor S&P 500
Class Stock Index
01/16/97 $10,000 $10,000
02/28/97 10,412 10,300
05/31/97 11,127 11,103
08/31/97 12,206 11,823
11/30/97 12,549 12,612
2/28/98 13,500 13,907
5/31/98 13,551 14,513
8/31/98 10,951 12,781
11/30/98 12,456 15,597
2/28/99 12,114 16,651
5/31/99 13,367 17,563
8/31/99 12,797 17,869
Past performance is not predictive of future performance.
Large Cap Value Fund
Investor Class $12,797
S&P 500 Stock Index $17,869
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Large Cap Value Fund-- Investor Class 16.86% 9.85%
S&P 500 Stock Index 39.82% 24.35%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on January 16, 1997 (inception) and reflects all Fund
expenses.Investors should note that the Fund is an aggressively managed
mutual fund while the index is either unmanaged and does not incur expenses
and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period January 16, 1997 (commencement of
operations) through August 31, 1999.
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
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Mid Cap
Value Fund
Investor Russell 2500
Class Stock Index
6/2/97 $10,000 $10,000
8/31/97 11,010 11,172
11/30/97 11,250 11,420
2/28/98 12,639 12,289
5/31/98 12,872 12,280
8/31/98 9,608 9,290
11/30/98 10,713 11,014
2/28/99 10,569 10,895
5/31/99 11,695 12,312
8/31/99 11,634 12,300
Past performance is not predictive of future performance.
Mid Cap Value Fund
Institutional Class $11,634
Russell 2500 Stock Index $12,300
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Mid Cap Value Fund-- Institutional Class 21.08% 6.97%
Russell 2500 Index 32.40% 9.65%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on June 2, 1997 (inception) and reflects all Fund expenses.Investors
should note that the Fund is an aggressively managed mutual fund while the
index is either unmanaged and does not incur expenses and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period June 2, 1997 (commencement of operations)
through August 31, 1999.
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
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Mid Cap
Value Fund
Investor Russell 2500
Class Stock Index
6/3/97 $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
5/31/98 12,857 12,280
8/31/98 9,604 9,290
11/30/98 10,695 11,014
2/28/99 10,553 10,895
5/31/99 11,664 12,312
8/31/99 11,603 12,300
Past performance is not predictive of future performance.
Mid Cap Value Fund
Institutional Class $11,603
Russell 2500 Stock Index $12,300
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Mid Cap Value Fund-- Investor Class 20.81% 6.84%
Russell 2500 Index 32.40% 9.65%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on June 2, 1997 (inception) and reflects all Fund expenses.Investors
should note that the Fund is an aggressively managed mutual fund while the
index is either unmanaged and does not incur expenses and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period June 2, 1997 (commencement of operations)
through August 31, 1999.
8
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MICRO CAP FUND
Comparison of Change in Value of $10,000 investment in Boston Partners
Micro Cap Institutional Class (1)(2) vs. CRSP 9-10 Index
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Micro Cap
Value Fund
Institutional CRSP 9-10
Class Index
7/1/98 $10,000 $10,000
8/31/98 7,620 7,375
11/30/98 7,930 8,603
2/28/99 7,640 8,756
5/31/99 8,670 9,976
8/31/99 8,670 10,790
Past performance is not predictive of future performance.
Micro Cap Value Fund
Institutional Class $ 8,670
CRSP 9-10 Index $10,790
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Micro Cap Value Fund-- Institutional Class 13.78% (11.48%)
CRSP 9-10 Index 34.21% (0.87%)
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on July 1, 1998 (inception) and reflects all Fund expenses.Investors
should note that the Fund is an aggressively managed mutual fund while the
index is either unmanaged and does not incur expenses and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period July 1, 1998 (commencement of operations)
through August 31, 1999.
9
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MICRO CAP FUND
Comparison of Change in Value of $10,000 investment in Boston Partners
Micro Cap Investor Class (1)(2) vs. CRSP 9-10 Index
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Micro Cap
Value Fund
Investor CRSP 9-10
Class Index
7/1/98 $10,000 $10,000
8/31/98 7,620 7,375
11/30/98 7,930 8,603
2/28/99 7,640 8,767
5/31/99 8,660 9,976
8/31/99 8,650 10,790
Past performance is not predictive of future performance.
Micro Cap Value Fund
Investor Class $ 8,650
CRSP 9-10 Index $10,790
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Micro Cap Value Fund-- Investor Class 13.37% (11.66%)
CRSP 9-10 Index 34.21% (0.87%)
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on July 1, 1998 (inception) and reflects all Fund expenses.Investors
should note that the Fund is an aggressively managed mutual fund while the
index is either unmanaged and does not incur expenses and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period July 1, 1998 (commencement of operations)
through August 31, 1999.
10
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
Comparison of Change in Value of $10,000 investment in Boston Partners
Market Neutral Fund Institutional Class (1)(2) vs. Salomon Brothers 30 Day
T-Bill Aggregate
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Market Neutral Fund
Institutional Salomon Brothers
Class 30 Day T-Bill Aggregate
11/17/98 $10,000 $10,000
11/30/98 9,580 10,020
2/28/99 9,080 10,128
5/31/99 9,500 10,239
8/31/99 9,450 10,350
Past performance is not predictive of future performance.
Market Neutral Fund
Institutional Class $ 9,460
Salomon Brothers
30 Day T-Bill Aggregate $10,350
Total Returns
Period Ended
August 31, 1999
---------------
Market Neutral Fund-- Institutional Class (5.40%)
Salomon Brothers 30 Day T-Bill Aggregate 3.51%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on November 17, 1998 (inception) and reflects all Fund
expenses.Investors should note that the Fund is an aggressively managed
mutual fund while the index is either unmanaged and does not incur expenses
and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period November 17, 1998 (commencement of
operations) through August 31, 1999.
11
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
Comparison of Change in Value of $10,000 investment in Boston Partners
Market Neutral Fund Investor Class (1)(2) vs. Salomon Brothers 30 Day T-Bill
Aggregate
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Market Neutral Fund
Investor Salomon Brothers
Class 30 Day T-Bill Aggregate
11/17/98 $10,000 $10,000
11/30/98 9,580 10,020
2/28/99 9,090 10,128
5/31/99 9,520 10,239
8/31/99 9,470 10,350
Past performance is not predictive of future performance.
Market Neutral Fund
Institutional Class $ 9,430
Salomon Brothers
30 Day T-Bill Aggregate $10,350
Total Returns
Period Ended
August 31, 1999
---------------
Market Neutral Fund-- Investor Class (5.70%)
Salomon Brothers 30 Day T-Bill Aggregate 3.51%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on November 17, 1998 (inception) and reflects all Fund
expenses.Investors should note that the Fund is an aggressively managed
mutual fund while the index is either unmanaged and does not incur expenses
and/or is 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.Returns shown include the reinvestment of all dividends
and other distributions. Past performance is not predictive of future
performance. Investment return and principal value will fluctuate, so that
your shares, when redeemed, may be worth more or less than their original
cost.
(3) Aggregate return for the period November 17, 1998 (commencement of
operations) through August 31, 1999.
12
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Bond Fund
Institutional Lehman Brothers.
Class Aggregate
12/30/97 $10,000 $10,000
2/28/98 10,164 10,120
5/31/98 10,394 10,304
8/31/98 10,479 10,583
11/30/98 10,733 10,835
2/28/99 10,655 10,753
5/31/99 10,720 10,751
8/31/99 10,523 10,667
Past performance is not predictive of future performance.
Market Neutral Fund
Institutional Class $10,523
Lehman Brothers
Aggregate $10,667
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Bond Fund-- Institutional Class 0.42% 3.10%
Lehman Brothers Aggregate 0.80% 3.95%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on December 30, 1997 and reflects all Fund expenses.Investors should
note that the Fund is an aggressively managed mutual fund while the index
is either unmanaged and does not incur expenses and/or is 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 Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period December 30, 1997 (commencement of
operations) through August 31, 1999.
13
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
Comparison of Change in Value of $10,000 investment in Boston Partners Bond
Fund Investor Class (1)(2) vs. Lehman Brothers Aggregate
[GRAPHIC OMITTED]
EDGAR PRESENTATION OF DATA POINTS IN PRINTED GRAPHIC
Bond Fund
Investor Lehman Brothers
Class Aggregate
12/30/97 $10,000 $10,000
2/28/98 10,158 10,120
5/31/98 10,378 10,304
8/31/98 10,463 10,583
11/30/98 10,703 10,835
2/28/99 10,624 10,753
5/31/99 10,683 10,751
8/31/99 10,481 10,667
Past performance is not predictive of future performance.
Market Neutral Fund
Institutional Class $10,481
Lehman Brothers
Aggregate $10,667
Total Returns
One Year Ended Average
August 31, 1999 Annual(3)
--------------- --------
Bond Fund-- Investor Class 0.17% 2.85%
Lehman Brothers Aggregate 0.80% 3.95%
- ------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on December 30, 1997 (inception) and reflects all Fund
expenses.Investors should note that the Fund is an aggressively managed
mutual fund while the index is either unmanaged and does not incur expenses
and/or is 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. Returns shown include the reinvestment of all
dividends and other distributions. Past performance is not predictive of
future performance. Investment return and principal value will fluctuate,
so that your shares, when redeemed, may be worth more or less than their
original cost.
(3) Aggregate return for the period December 30, 1997 (commencement of
operations) through August 31, 1999.
14
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------------
COMMON STOCK--95.2%
AEROSPACE/DEFENSE--4.4%
AlliedSignal, Inc. ............................ 19,100 $ 1,169,875
Litton Industries, Inc.* ...................... 12,180 779,520
Northrop Grumman Corp. ........................ 6,200 449,500
------------
2,398,895
------------
AIR TRANSPORT--0.4%
AMR Corp. ..................................... 3,900 228,637
------------
AUTOMOBILE-MANUFACTURING--1.4%
Ford Motor Co. ................................ 14,400 750,600
------------
BANKS AND SAVINGS & LOANS--1.9%
Chase Manhattan Corp. (The) ................... 8,800 736,450
Toronto-Dominion Bank (The)* .................. 15,300 298,350
------------
1,034,800
------------
BROKERAGE SERVICES--1.0%
Lehman Brothers Holdings, Inc. ................ 5,100 274,125
Morgan Stanley Dean Witter & Co. .............. 3,000 257,437
------------
531,562
------------
CHEMICALS--1.6%
E.I. du Pont de Nemours and Co. ............... 2,319 146,967
Rhone-Poulenc S.A ............................. 15,100 733,294
------------
880,261
------------
COMPUTERS, SOFTWARE & SERVICING--4.7%
Computer Associates
International, Inc. ......................... 20,700 1,169,550
Gateway, Inc.* ................................ 4,600 445,912
International Business
Machines Corp. .............................. 3,700 460,881
Sterling Software, Inc.* ...................... 24,200 487,025
------------
2,563,368
------------
CONSTRUCTION & BUILDING MATERIALS--1.2%
Ingersoll-Rand Co. ............................ 9,900 629,887
------------
CONSUMER DURABLES--0.5%
Whirlpool Corp. ............................... 4,100 289,819
------------
NUMBER
OF SHARES VALUE
--------- ------------
CONSUMER PRODUCTS & SERVICES--0.5%
Sherwin-Williams Co. (The) .................... 11,500 $ 280,312
------------
ELECTRIC UTILITIES--4.2%
Consolidated Edison, Inc. ..................... 6,700 294,800
Niagara Mohawk Holdings, Inc.* ................ 27,200 411,400
PECO Energy Co. ............................... 12,900 524,062
Reliant Energy, Inc. .......................... 11,500 318,406
Unicom Corp. .................................. 19,600 757,050
------------
2,305,718
------------
ELECTRONICS--2.4%
Emerson Electric Co. .......................... 4,400 275,550
Hitachi Ltd. .................................. 7,000 709,625
National Semiconductor Corp.* ................. 13,200 372,075
------------
1,357,250
------------
ENTERTAINMENT--1.5%
MediaOne Group, Inc.* ......................... 12,500 821,875
------------
ENVIRONMENTAL SERVICES--0.4%
Republic Services, Inc.* ...................... 21,700 235,987
------------
FINANCIAL SERVICES--9.1%
Citigroup, Inc. ............................... 40,600 1,804,162
Countrywide Credit Industries, Inc. ........... 6,700 215,237
Fannie Mae .................................... 13,200 820,050
FINOVA Group, Inc. (The)* ..................... 5,700 216,600
Fleet Financial Group, Inc. ................... 15,800 629,037
Freddie Mac ................................... 25,300 1,302,950
------------
4,988,036
------------
FOOD & BEVERAGE--6.0%
Anheuser-Busch Companies, Inc. ................ 4,400 338,800
General Mills, Inc. ........................... 6,400 536,000
Nabisco Holdings Corp., Class A ............... 21,500 845,219
Pepsi Bottling Group, Inc. (The) .............. 15,100 285,956
Quaker Oats Co. (The) ......................... 19,000 1,269,437
------------
3,275,412
------------
HEALTHCARE--4.2%
Baxter International, Inc.* ................... 20,800 1,394,900
Kimberly-Clark Corp.* ......................... 15,800 899,612
------------
2,294,512
------------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------------
HOTELS--0.2%
MeriStar Hospitality Corp. .................... 6,430 $ 108,506
------------
INSURANCE--10.9%
Ace Ltd. ...................................... 49,195 1,054,618
Aetna, Inc. ................................... 14,900 1,158,475
Allmerica Financial Corp. ..................... 10,280 580,820
Allstate Corp. (The) .......................... 16,200 531,563
American International Group, Inc. ............ 7,375 683,570
Chubb Corp. (The) ............................. 8,100 463,219
CIGNA Corp. ................................... 10,000 898,125
Everest Reinsurance Holdings, Inc. ............ 17,000 471,750
PartnerRe Ltd. ................................ 3,475 127,706
------------
5,969,846
------------
MANUFACTURING--1.5%
Parker-Hannifin Corp. ......................... 3,600 157,500
Tyco International Ltd. ....................... 6,759 684,771
------------
842,271
------------
METALS & MINING--2.6%
Alcan Aluminium Ltd.* ......................... 16,600 545,725
Alcoa, Inc. ................................... 4,300 277,619
Reynolds Metals Co. ........................... 9,400 595,138
------------
1,418,482
------------
OFFICE EQUIPMENT & SUPPLIES--0.6%
Office Depot, Inc.* ........................... 31,550 329,303
------------
OIL & GAS EXPLORATION--3.1%
Diamond Offshore Drilling, Inc. ............... 9,300 355,725
El Paso Energy Corp. .......................... 13,500 493,594
Kerr-McGee Corp. .............................. 9,809 549,304
Noble Drilling Corp.* ......................... 13,200 325,050
------------
1,723,673
------------
NUMBER
OF SHARES VALUE
--------- ------------
OIL SERVICES--8.9%
Conoco, Inc., Class A ......................... 10,400 $ 278,200
Conoco, Inc., Class B* ........................ 42,963 1,154,656
Halliburton Co. ............................... 17,300 802,288
Mobil Corp. ................................... 10,300 1,054,463
Occidental Petroleum Corp.* ................... 10,700 232,056
Tosco Corp. ................................... 29,605 754,928
Total Fina S.A. .............................. 6,900 448,931
USX-Marathon Group* ........................... 5,500 171,188
------------
4,896,710
------------
PAPER & FOREST PRODUCTS--2.4%
International Paper Co. ....................... 16,400 771,825
Temple-Inland, Inc. ........................... 8,600 533,200
------------
1,305,025
------------
PHARMACEUTICALS--0.8%
Abbott Laboratories ........................... 10,100 438,088
------------
PUBLISHING--3.0%
Harcourt General, Inc. ........................ 20,800 911,300
Knight-Ridder, Inc. ........................... 5,300 285,869
New York Times Co.(The), Class A .............. 11,800 460,938
------------
1,658,107
------------
REAL ESTATE--2.2%
Avalonbay Communities, Inc. ................... 3,700 130,425
Equity Office Properties Trust ................ 14,000 357,875
Equity Residential Properties Trust ........... 6,600 290,400
Mack-Cali Realty Corp. ........................ 5,900 167,413
Prentiss Properties Trust ..................... 5,940 134,764
RFS Hotel Investors, Inc. ..................... 8,840 101,108
------------
1,181,985
------------
RETAIL-DEPARTMENT STORE--0.5%
Federated Department Stores, Inc.* ............ 5,600 257,600
------------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
NUMBER
OF SHARES VALUE
--------- ------------
TELECOMMUNICATIONS--8.9%
Ameritech Corp. ............................... 9,400 $ 593,375
AT&T Corp. .................................... 5,759 259,155
BCE, Inc. ..................................... 17,500 818,125
Bell Atlantic Corp. ........................... 11,000 673,750
Chris-Craft Industries, Inc.* ................. 5,012 253,733
GTE Corp. ..................................... 15,800 1,084,275
Nippon Telegraph & Telephone
Corp. (NTT)* ................................ 11,600 655,400
SBC Communications, Inc. ...................... 10,800 518,400
------------
4,856,213
------------
TEXTILES & APPAREL--1.6%
Liz Claiborne, Inc. ........................... 15,200 558,600
Warnaco Group, Inc. (The) ..................... 13,700 301,400
------------
860,000
------------
TOBACCO--2.6%
Loews Corp. ................................... 18,250 1,432,625
------------
TOTAL COMMON STOCK
(Cost $52,060,054) ........................ 52,145,365
------------
PAR
(000) VALUE
--------- ------------
SHORT TERM INVESTMENTS--1.4%
Rodney Square Cash Reserve
4.82% 09/01/99 ................................... $ 751 $ 750,776
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $750,776) ........................... 750,776
-----------
REPURCHASE AGREEMENTS--3.7%
PNC Capital Markets
(Agreement dated 08/31/99
to be repurchased at
$2,000,267, collateralized
by $1,961,107 U.S. Treasury
Notes 6.75% due 04/30/00)
4.80% 09/01/99 .............................. 2,000 2,000,000
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $2,000,000) ......................... 2,000,000
-----------
TOTAL INVESTMENTS--100.3%
(Cost $54,810,830) ............................ 54,896,141
-----------
LIABILITIES IN EXCESS
OF OTHER ASSETS--(0.3)% ....................... (147,082)
-----------
NET ASSETS--100.0% ............................... $54,749,059
===========
- ------------------
*Non-income producing.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------------
COMMON STOCK--92.9%
AEROSPACE/Defense--7.0%
B.F. Goodrich Co. (The) ..................... 33,700 $ 1,244,794
Litton Industries, Inc.* .................... 90,056 5,763,584
Northrop Grumman Corp. ...................... 72,900 5,285,250
-----------
12,293,628
-----------
AUTOMOBILE/TRUCK PARTS & EQUIPMENT--2.7%
Federal-Mogul Corp. ......................... 104,733 4,778,443
-----------
BANKS AND SAVINGS & LOANS--6.5%
Astoria Financial Corp. ..................... 72,910 2,396,916
Dime Bancorp, Inc. .......................... 72,100 1,324,837
Golden State Bancorp., Inc.* ................ 173,500 3,480,844
North Fork Bancorp., Inc. ................... 119,300 2,162,312
UnionBanCal Corp. ........................... 52,400 2,010,850
-----------
11,375,759
-----------
CEMENT--0.7%
Southdown, Inc. ............................. 25,700 1,297,850
-----------
COMPUTERS, SOFTWARE & SERVICING--5.9%
Newbridge Networks Corp.* ................... 67,100 1,841,056
Quantum Corp.-DLT & Storage
Systems * ................................. 99,300 1,818,431
Silicon Graphics, Inc.* ..................... 92,100 1,053,394
Sterling Software, Inc.* .................... 64,400 1,296,050
Storage Technology Corp.* ................... 67,100 1,409,100
Symantec Corp.* ............................. 97,500 2,925,000
-----------
10,343,031
-----------
CONSTRUCTION & BUILDING MATERIALS--1.3%
D.R. Horton, Inc. ........................... 61,400 894,137
MacMillan Bloedel Ltd. ...................... 93,800 1,424,587
-----------
2,318,724
-----------
CONSUMER DURABLES--3.2%
Cooper Tire & Rubber Co. .................... 73,600 1,398,400
Whirlpool Corp. ............................. 59,700 4,220,044
-----------
5,618,444
-----------
CONSUMER PRODUCTS & SERVICES--0.8%
Sherwin-Williams Co. (The) .................. 55,500 1,352,812
-----------
NUMBER
OF SHARES VALUE
--------- ------------
CONTAINERS--2.6%
Crown Cork & Seal Co., Inc. ................. 82,800 $ 2,199,375
Smurfit-Stone Container Corp.* .............. 110,000 2,330,625
-----------
4,530,000
-----------
DIVERSIFIED--3.9%
Viad Corp. .................................. 232,430 6,958,373
-----------
ELECTRIC UTILITIES--1.6%
Niagara Mohawk Holdings, Inc.* .............. 181,800 2,749,725
-----------
ELECTRONICS--1.3%
National Semiconductor Corp.* ............... 84,500 2,381,844
-----------
ENTERTAINMENT--3.4%
Harrah's Entertainment, Inc.* ............... 92,700 2,085,750
Mandalay Resort Group* ...................... 57,300 1,174,650
Park Place Entertainment Corp.* ............. 244,100 2,761,381
-----------
6,021,781
-----------
FOOD & BEVERAGE--7.7%
Aurora Foods, Inc.* ......................... 135,500 2,286,562
Hannaford Bros. Co. ......................... 92,200 6,615,350
International Home Foods, Inc.* ............. 85,300 1,706,000
Keebler Foods Co.* .......................... 40,700 1,213,369
SUPERVALU, Inc. ............................. 79,700 1,793,250
-----------
13,614,531
-----------
HEALTHCARE--2.6%
C.R. Bard, Inc. ............................. 65,100 3,035,287
Foundation Health Systems, Inc.,
Class A* .................................. 123,600 1,575,900
-----------
4,611,187
-----------
INSURANCE--7.7%
Allmerica Financial Corp. ................... 76,600 4,327,900
CNA Financial Corp.* ....................... 69,200 2,517,150
Everest Reinsurance Holdings, Inc. .......... 72,892 2,022,753
Protective Life Corp.* ...................... 37,700 1,121,575
ReliaStar Financial Corp. ................... 35,300 1,590,706
Scor-Sponsored ADR .......................... 41,000 2,024,375
-----------
13,604,459
-----------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------------
MANUFACTURING--2.5%
Crane Co. ............................... 140,200 $ 3,373,562
Phelps Dodge Corp.* ..................... 18,200 1,018,063
-----------
4,391,625
-----------
OIL & GAS EXPLORATION--6.6%
Devon Energy Corp.* ..................... 54,200 2,093,475
Diamond Offshore Drilling, Inc. ......... 38,100 1,457,325
Enron Oil & Gas Co. ..................... 80,400 1,919,550
Kerr-McGee Corp. ........................ 59,200 3,315,200
Santa Fe International Corp. ............ 58,900 1,553,488
Union Pacific Resources
Group, Inc. ........................... 69,400 1,244,863
-----------
11,583,901
-----------
OIL SERVICES--2.7%
Tosco Corp. ............................. 186,900 4,765,950
-----------
PACKAGING & CONTAINERS--0.4%
Pechiney SA ............................ 23,500 684,438
-----------
PAPER & FOREST PRODUCTS--2.8%
Abitibi-Consolidated, Inc. .............. 220,500 2,618,438
Bowater, Inc. ........................... 41,700 2,236,163
-----------
4,854,601
-----------
PHARMACEUTICALS--1.0%
IVAX Corp.* ............................. 102,900 1,697,850
-----------
PUBLISHING--1.9%
Harcourt General, Inc. .................. 70,300 3,080,019
Meredith Corp.* ......................... 8,800 305,250
-----------
3,385,269
-----------
RADIO &TELEVISION--0.9%
Sinclair Broadcast Group, Inc.,
Class A* .............................. 94,400 1,534,000
-----------
NUMBER
OF SHARES VALUE
--------- ------------
RETAIL-DEPARTMENT STORE--1.0%
Saks, Inc.* ................................. 106,800 $ 1,795,575
-----------
RETAIL-DISCOUNT--4.3%
BJ's Wholesale Club, Inc.* .................. 225,522 6,370,997
ShopKo Stores, Inc.* ........................ 40,994 1,173,453
-----------
7,544,450
-----------
RETAIL-SPECIALTY APPAREL/SHOE STORES--0.7%
Ross Stores, Inc. ........................... 30,300 1,261,238
-----------
SECURITY SERVICES--0.5%
Pittston Brink's Group ...................... 35,870 854,154
-----------
SHIPBUILDING--2.5%
Newport News Shipbuilding, Inc. ............. 138,000 4,338,375
-----------
STEEL--1.2%
USX-U.S. Steel Group ........................ 76,900 2,076,300
-----------
TELECOMMUNICATIONS--0.6%
Chris-Craft Industries, Inc.* ............... 19,500 987,188
-----------
TEXTILES & APPAREL--3.5%
Jones Apparel Group, Inc.* .................. 86,000 2,230,625
Liz Claiborne, Inc. ......................... 40,600 1,492,050
Shaw Industries, Inc. ....................... 120,300 2,406,000
-----------
6,128,675
-----------
TOYS--0.9%
Hasbro, Inc. ................................ 69,300 1,693,519
-----------
TOTAL COMMON STOCK
(Cost $162,242,811) ..................... 163,427,699
-----------
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1999
PAR
(000) VALUE
------ ------------
SHORT TERM INVESTMENT--5.0%
Rodney Square Cash Reserve
4.82% 09/01/99 ....................... $8,852 $ 8,852,285
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $8,852,285) ................. 8,852,285
------------
REPURCHASE AGREEMENTS--0.5%
PNC Capital Markets
(Agreement dated 08/31/99
to be repurchased at
$950,127, collateralized by
$932,660 U.S. Treasury
Notes 6.75% due 04/30/00)
4.800% 09/01/99 ..................... 950 950,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $950,000) ................... 950,000
------------
TOTAL INVESTMENTS--98.4%
(Cost $172,045,096) ................... 173,229,984
------------
ASSETS IN EXCESS
OF LIABILITIES--1.6% .................. 2,755,687
------------
NET ASSETS--100.0% ....................... $175,985,671
============
- -----------------
*Non-income producing.
ADR - American Depository Receipt.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MICRO CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
COMMON STOCKS AND WARRANTS--97.3%
ADVERTISING--1.2%
R.H. Donnelley Corp. ............................ 1,100 $19,044
-------
AEROSPACE/DEFENSE--0.4%
Fairchild Corp.(The)* ........................... 600 5,475
-------
AGRICULTURE--1.8%
Agribrands International, Inc.* ................. 600 29,175
-------
AIR TRANSPORT--1.0%
Midwest Express Holdings, Inc.* ................. 600 16,200
-------
AUTOMOTIVE--2.4%
Dollar Thrifty Automotive Group,
Inc.* ......................................... 700 13,169
Monro Muffler Brake, Inc.* ...................... 1,300 8,856
Sonic Automotive, Inc.* ......................... 1,400 16,887
-------
38,912
-------
BANKS AND SAVINGS & LOANS--1.5%
Professional Bancorp., Inc.* .................... 600 12,375
SGV Bancorp., Inc.* ............................. 500 11,000
-------
23,375
-------
BUILDING & BUILDING MATERIALS--2.0%
Cameron Ashley Building
Products, Inc.* ............................... 2,000 19,375
U.S. Home Corp.* ................................ 400 12,000
-------
31,375
-------
BUILDING MAINTENENCE & SERVICE--1.7%
Building One Services Corp.* .................... 1,200 15,600
Group Maintenance America Corp.* ................ 900 11,081
-------
26,681
-------
BUSINESS SERVICES--8.4%
Administaff, Inc.* .............................. 1,000 15,812
Hall Kinion & Associates, Inc.* ................. 2,900 22,112
Navigant International, Inc.* ................... 1,900 14,962
RemedyTemp, Inc.* ............................... 600 9,825
Right Management
Consultants, Inc.* ............................ 2,400 33,600
SPR, Inc.* ...................................... 1,400 6,125
NUMBER
OF SHARES VALUE
--------- ------
BUSINESS SERVICES--(CONTINUED)
Staff Leasing, Inc.* .......................... 2,100 $ 19,425
StaffMark, Inc.* .............................. 1,200 11,662
--------
133,523
--------
CHEMICALS--1.4%
Aceto Corp. ................................... 700 7,700
Georgia Gulf Corp.* ........................... 800 14,550
--------
22,250
--------
COMPUTERS, SOFTWARE & SERVICING--3.2%
Datastream Systems, Inc.* ..................... 800 9,700
Maxtor Corp.* ................................. 1,900 12,172
Micro Warehouse, Inc.* ........................ 700 8,575
Quantum Corp.-Hard Disk Drive* ................ 1,600 11,400
Stac Software, Inc.* .......................... 1,850 8,787
--------
50,634
--------
CONSUMER PRODUCTS & SERVICES--2.8%
CPI Corp. ..................................... 400 13,000
O'Sullivan Industries
Holdings, Inc.* ............................. 700 11,025
Veterinary Centers of America, Inc.* .......... 1,900 21,137
--------
45,162
--------
COSMETICS & TOILETRIES--0.8%
Inter Parfums, Inc.* .......................... 1,400 13,519
--------
ELECTRIC UTILITIES--1.5%
El Paso Electric Co.* ......................... 1,800 16,537
TNP Enterprises, Inc.* ........................ 200 7,475
--------
24,012
--------
ELECTRONICS--5.3%
Align-Rite International, Inc.* ............... 1,200 16,650
Micro Linear Corp.* ........................... 5,200 26,000
PSC, Inc.* .................................... 2,800 26,425
Sound Advice, Inc.* ........................... 2,200 16,500
--------
85,575
--------
ENTERTAINMENT--0.5%
INTRAV, Inc.* ................................. 400 8,250
--------
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MICRO CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
FINANCIAL SERVICES--10.9%
American Captial Strategies Ltd. ................ 700 $ 12,119
BNC Mortgage, Inc.* ............................. 1,800 11,475
Brookline Bancorp., Inc. ........................ 600 6,525
Conning Corp.* .................................. 700 8,050
Dain Rauscher Corp. ............................. 400 19,850
Federal Agricultural
Mortgage Corp.* ............................... 600 11,887
Golden State Bancorp. Litigation
Warrants* expiring 01/01/10 ................... 6,450 9,877
Imperial Credit Commercial
Mortgage Investment Corp. ..................... 1,900 20,781
ITLA Capital Corp.* ............................. 1,100 17,325
Local Financial Corp.* .......................... 600 5,737
Long Beach Financial Corp.* ..................... 1,400 21,087
PAULA Financial* ................................ 1,000 7,500
Richmond County Financial Corp. ................. 400 7,925
Seacoast Financial Services Corp. ............... 1,277 14,207
--------
174,345
--------
FOOD & BEVERAGE--3.7%
Golden State Vintners, Inc.,
Class B* ...................................... 1,300 7,800
J & J Snack Foods Corp.* ........................ 1,300 27,300
M & F Worldwide Corp.* .......................... 2,900 24,831
--------
59,931
--------
HEALTHCARE--2.0%
National Dentex Corp.* .......................... 700 12,162
Sierra Health Services, Inc.* ................... 700 8,313
United Wisconsin Services, Inc. ................. 1,600 11,300
--------
31,775
--------
INDUSTRIAL GOODS & MATERIALS--3.2%
K-Tron International, Inc.* ..................... 400 6,750
O.I. Corp.* ..................................... 2,100 9,450
Quixote Corp. ................................... 2,400 35,700
--------
51,900
--------
NUMBER
OF SHARES VALUE
--------- ------
INSURANCE--11.5%
Chartwell Re Corp. ............................ 600 $ 9,600
CNA Surety Corp. .............................. 900 11,644
ESG Re Ltd. ................................... 900 12,150
Farm Family Holdings, Inc.* ................... 400 15,950
Financial Industries Corp.* ................... 900 11,475
Hilb, Rogal & Hamilton Co. .................... 600 14,475
Insurance Auto Auctions, Inc.* ................ 2,500 44,688
IPC Holdings Ltd. ............................. 700 15,094
LaSalle Re Holdings Ltd. ...................... 400 6,350
PXRE Corp.* ................................... 1,000 16,938
Risk Capital Holdings, Inc.* .................. 500 7,500
Scottish Annuity & Life
Holdings Ltd. ............................... 1,000 9,750
Stewart Information Services Corp. ............ 400 8,325
--------
183,939
--------
MANUFACTURING--1.4%
CLARCOR, Inc. ................................. 600 10,763
SPS Technologies, Inc.* ....................... 300 11,756
--------
22,519
--------
MEDICAL PRODUCTS--1.3%
ICU Medical, Inc.* ............................ 800 12,900
Maxxim Medical, Inc.* ......................... 300 7,388
--------
20,288
--------
METALS & MINING--0.6%
Rock of Ages Corp.* ........................... 1,300 10,075
--------
OIL SERVICES--6.9%
Canadian 88 Energy Corp.* ..................... 4,100 8,969
Evergreen Resources, Inc.* .................... 900 21,881
Hugoton Royalty Trust ......................... 1,100 11,481
Mallon Resources Corp.* ....................... 2,200 17,944
Swift Energy Co.* ............................. 2,000 25,250
Tesoro Petroleum Corp.* ....................... 1,400 25,288
--------
110,813
--------
The accompanying notes are an integral part of the financial statements.
22
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MICRO CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
PRINTING SERVICES--2.0%
Bowne & Co., Inc. ............................... 700 $ 9,713
Ennis Business Forms, Inc. ...................... 1,600 14,200
Merrill Corp. ................................... 400 8,150
-------
32,063
-------
RAILROADS--0.8%
Railtex, Inc.* .................................. 900 13,275
-------
REAL ESTATE--5.2%
AMRESCO Capital Trust ........................... 1,100 10,313
Asset Investors Corp. ........................... 800 10,900
Brookdale Living
Communities, Inc.* ............................ 1,900 24,581
Capital Automotive REIT ......................... 1,200 15,000
Trammell Crow Co. * ............................. 1,100 15,675
Ventas, Inc.* ................................... 1,700 6,481
-------
82,950
-------
RETAIL-SPECIALTY APPAREL/SHOE STORES--5.9%
Catherines Stores Corp.* ........................ 3,000 40,125
Dress Barn, Inc. (The)* ......................... 800 12,050
Finish Line, Inc. (The)* ........................ 2,500 22,344
Wilsons, The Leather Experts, Inc.* ............. 1,200 19,950
-------
94,469
-------
TELECOMMUNICATIONS--0.6%
Pacific Gateway Exchange, Inc.* ................. 500 10,188
-------
NUMBER
OF SHARES VALUE
--------- ------
TEXTILES & APPAREL--2.7%
Happy Kids, Inc.* ............................ 800 $ 8,300
Maxwell Shoe Co., Inc., Class A* ............. 1,800 15,413
Nautica Enterprises, Inc.* ................... 1,500 20,156
----------
43,869
----------
TRANSPORTATION--2.7%
Arkansas Best Corp.* ......................... 800 10,000
Arnold Industries, Inc. ...................... 500 7,125
Fritz Companies, Inc.* ....................... 1,700 19,338
Knightsbridge Tankers Ltd. ................... 400 6,750
----------
43,213
----------
TOTAL COMMON STOCK
AND WARRANTS
(Cost $1,559,484) ........................ 1,558,774
----------
PAR
(000)
SHORT-TERM INVESTMENT--1.7% ----------
Rodney Square Cash Reserve
4.820% 09/01/99 ............................ $ 27 26,779
----------
TOTAL SHORT-TERM INVESTMENT
(Cost $26,779) ........................... 26,779
----------
TOTAL INVESTMENTS--99.0%
(Cost $1,586,263) ............................ 1,585,553
----------
OTHER ASSETS IN EXCESS
OF LIABILITIES--1.0% ......................... 15,977
----------
NET ASSETS--100.0% .............................. $1,601,530
==========
- -------------------
*Non-income producing.
REIT - Real Estate Investment Trust.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
LONG POSITIONS--104.0%
COMMON STOCK--98.9%
ADVERTISING--0.5%
R.H. Donnelley Corp. ............................ 300 $ 5,194
-------
AEROSPACE/DEFENSE--5.8%
B.F. Goodrich Co. (The) ......................... 700 25,856
Litton Industries, Inc.* ........................ 200 12,800
Northrop Grumman Corp. .......................... 400 29,000
-------
67,656
-------
AUTOMOBILE/TRUCK PARTS & EQUIPMENT--0.7%
Tower Automotive, Inc.* ......................... 400 8,000
-------
AUTOMOTIVE--1.5%
Dollar Thrifty Automotive
Group, Inc.* .................................. 300 5,644
Sonic Automotive, Inc.* ......................... 1,000 12,063
-------
17,707
-------
BANKS AND SAVINGS & LOANS--1.8%
Staten Island Bancorp., Inc. .................... 500 8,969
UnionBanCal Corp. ............................... 300 11,513
-------
20,482
-------
BUILDING & BUILDING MATERIALS--3.3%
Cameron Ashley Building
Products, Inc.* ............................... 1,000 9,688
Champion Enterprises, Inc.* ..................... 500 4,250
Pulte Corp. ..................................... 600 13,875
Thor Industries, Inc.* .......................... 400 10,750
-------
38,563
-------
BUSINESS SERVICES--5.8%
Hall, Kinion & Associates, Inc.* ................ 1,500 11,438
Right Management
Consultants, Inc.* ............................ 900 12,600
SPR, Inc.* ...................................... 1,200 5,250
Staff Leasing, Inc.* ............................ 1,200 11,100
StaffMark, Inc.* ................................ 1,200 11,663
Sybase, Inc.* ................................... 1,300 16,250
-------
68,301
-------
NUMBER
OF SHARES VALUE
--------- --------
CEMENT--0.7%
Centex Construction Products, Inc. .............. 200 $ 7,688
-------
CHEMICALS--0.8%
Cytec Industries, Inc.* ......................... 400 9,325
-------
COMPUTERS, SOFTWARE & SERVICING--7.8%
Ardent Software, Inc.* .......................... 200 4,750
Bell & Howell Co.* .............................. 200 6,700
Cadence Design Systems, Inc.* ................... 800 10,900
Computer Associates
International, Inc. ........................... 300 16,950
International Business
Machines Corp. ................................ 100 12,456
Maxtor Corp.* ................................... 1,300 8,328
Progress Software Corp.* ........................ 400 12,250
Sterling Software, Inc.* ........................ 500 10,063
Western Digital Corp.* .......................... 1,500 9,188
-------
91,585
-------
CONSTRUCTION & HOUSING--1.2%
M/I Schottenstein Homes, Inc.* .................. 700 13,388
-------
CONSULTING--0.5%
Comdisco, Inc.* ................................. 300 6,319
-------
CONSUMER PRODUCTS AND SERVICES--2.3%
IDEXX Laboratories, Inc.* ....................... 400 6,800
Premark International, Inc. ..................... 300 9,975
Veterinary Centers of America, Inc.* ............ 900 10,013
-------
26,788
-------
CONTAINERS--1.6%
Ball Corp. ...................................... 300 13,481
Ivex Packaging Corp.* ........................... 300 4,650
-------
18,131
-------
DISTRIBUTION--2.3%
Amway Japan Ltd. ................................ 3,800 20,663
United Stationers, Inc.* ........................ 300 6,788
-------
27,451
-------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
DIVERSIFIED--2.0%
Viad Corp. ...................................... 800 $23,950
-------
ELECTRIC UTILITIES--2.5%
Entergy Corp. ................................... 400 11,925
Public Service Co. of New Mexico ................ 300 5,644
Unicom Corp. .................................... 300 11,588
-------
29,157
-------
ELECTRONICS--3.9%
Micro Linear Corp.* ............................. 3,300 16,500
PSC, Inc.* ...................................... 1,300 12,269
Veeco Instruments, Inc.* ........................ 500 16,781
-------
45,550
-------
ENGINEERING & CONSTRUCTION--1.9%
EMCOR Group, Inc. ............................... 600 12,788
URS Corp.* ...................................... 400 9,900
-------
22,688
-------
ENTERTAINMENT--1.0%
Harrah's Entertainment, Inc.* ................... 200 4,500
Park Place Entertainment Corp.* ................. 600 6,788
-------
11,288
-------
FERTILIZERS--1.1%
IMC Global, Inc. ................................ 800 12,750
-------
FINANCIAL SERVICES--8.5%
Citigroup, Inc. ................................. 300 13,331
Deluxe Corp. .................................... 400 13,625
Fannie Mae ...................................... 100 6,213
Freddie Mac ..................................... 100 5,150
Financial Security Assurance
Holdings Ltd. ................................. 200 10,013
FINOVA Group, Inc. (The)* ....................... 200 7,600
Fleet Financial Group, Inc. ..................... 300 11,944
Goldman Sachs Group, Inc. (The) ................. 200 11,963
Hambrecht & Quist Group ......................... 300 11,456
Medallion Financial Corp. ....................... 400 7,925
-------
99,220
-------
NUMBER
OF SHARES VALUE
--------- ------
FOOD & BEVERAGE--2.5%
International Home Foods, Inc.* ................. 500 $10,000
Keebler Foods Co.* .............................. 200 5,963
Quaker Oats Co. (The) ........................... 200 13,363
-------
29,326
-------
HEALTHCARE--2.4%
Curative Health Services, Inc.* ................. 1,500 8,250
Meditrust Companies ............................. 900 8,044
National Dentex Corp.* .......................... 700 12,163
-------
28,457
-------
INDUSTRIAL GOODS & MATERIALS--1.9%
McDermott International, Inc. ................... 400 9,025
Quixote Corp. ................................... 900 13,388
-------
22,413
-------
INSURANCE--0.7%
Stewart Information Services Corp. .............. 400 8,325
-------
MANUFACTURING--6.3%
A.O. Smith Corp. ................................ 700 18,988
Church and Dwight Co., Inc. ..................... 200 9,300
Crane Co. ....................................... 400 9,625
Phelps Dodge Corp.* ............................. 200 11,188
SPS Technologies, Inc.* ......................... 300 11,756
Tyco International Ltd. ......................... 117 11,854
U.S. Industries, Inc. ........................... 100 1,613
-------
74,324
-------
OIL & GAS EXPLORATION--5.9%
Abraxas Petroleum Corp.* ........................ 1,900 5,700
Diamond Offshore Drilling, Inc. ................. 400 15,300
Kerr-McGee Corp. ................................ 300 16,800
Ocean Energy, Inc.* ............................. 800 8,100
Santa Fe International Corp. .................... 900 23,738
-------
69,638
-------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
OIL SERVICES--1.8%
Canadian 88 Energy Corp.* ....................... 900 $ 1,969
Swift Energy Co.* ............................... 1,000 12,625
Valero Energy Corp.* ............................ 300 6,375
-------
20,969
-------
PAPER & FORESTRY PRODUCTS--1.4%
Louisiana-Pacific Corp. ......................... 900 16,650
-------
PHARMACEUTICALS--1.8%
IVAX Corp.* ..................................... 1,300 21,450
-------
PUBLISHING--2.9%
Harcourt General, Inc. .......................... 300 13,144
New York Times Co. (The), Class A ............... 200 7,813
Valassis Communications, Inc. ................... 300 13,125
-------
34,082
-------
RAILROADS--1.1%
Railtex, Inc.* .................................. 900 13,275
-------
RETAIL TRADE--0.5%
HomeBase, Inc.* ................................. 1,300 5,688
-------
RETAIL-SPECIALTY APPAREL/SHOE STORES--1.2%
Dress Barn, Inc. (The)* ......................... 600 9,038
Payless ShoeSource, Inc.* ....................... 100 4,988
-------
14,026
-------
SHIPBUILDING--1.6%
Newport News Shipbuilding, Inc. ................. 600 18,863
-------
STEEL--1.2%
Maverick Tube Corp.* ............................ 800 14,150
-------
TELECOMMUNICATIONS--4.3%
Ameritech Corp. ................................. 200 12,625
Bell Atlantic Corp. ............................. 100 6,125
GTE Corp. ....................................... 100 6,863
IPC Communications, Inc.* ....................... 500 24,500
-------
50,113
-------
NUMBER
OF SHARES VALUE
--------- ------
TEXTILES & APPAREL--0.5%
Nautica Enterprises, Inc.* .................. 400 $ 5,375
-----------
TOBACCO--0.4%
R.J. Reynolds Tobacco
Holdings, Inc.* ........................... 166 4,538
-----------
TRANSPORTATION--3.0%
Arkansas Best Corp.* ........................ 1,400 17,500
Arnold Industries, Inc. ..................... 800 11,400
Greenbrier Companies, Inc. (The) ............ 600 6,375
-----------
35,275
-----------
TOTAL COMMON STOCK
(Cost $1,172,271) ....................... 1,158,118
-----------
PAR
(000) VALUE
----------- -----------
SHORT-TERM INVESTMENTS--5.1%
Rodney Square Cash Reserve
4.82% 09/01/99 ............................ $ 60 59,948
-----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $59,948) .......................... 59,948
-----------
TOTAL LONG POSITIONS--104%
(Cost $1,232,219) ....................... 1,218,066
-----------
NUMBER
OF SHARES
------------
SECURITIES SOLD SHORT--(76.6)%
ADVERTISING--(0.5)%
TMP Worldwide, Inc.* ........................ (100) (5,538)
-----------
AEROSPACE/DEFENSE--(0.8)%
General Dynamics Corp. ...................... (100) (6,300)
SPACEHAB, Inc.* ............................. (700) (3,500)
-----------
(9,800)
-----------
AUTOMOBILE-MANUFACTURING--(0.3)%
A.S.V., Inc.* ............................... (200) (3,650)
-----------
AUTOMOBILE/TRUCK PARTS & EQUIPMENT--(0.3)%
OEA, Inc.* .................................. (500) (3,500)
-----------
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
BANKS AND SAVINGS & LOANS--(5.8)%
AmSouth Bancorp. ............................ (200) $ (4,375)
Commerce Bancorp., Inc. ..................... (100) (4,300)
CVB Financial Corp. ......................... (100) (2,600)
E-Loan, Inc.* ............................... (400) (11,400)
First Tennessee National Corp. .............. (100) (3,200)
FirstMerit Corp. ............................ (100) (2,628)
Huntington Bancshares, Inc. ................. (100) (2,994)
JeffBanks, Inc. ............................. (100) (2,975)
Marshall & Ilsley Corp. ..................... (100) (5,856)
New England Community
Bancorp., Inc. ............................ (100) (2,744)
Old Kent Financial Corp. .................... (100) (3,950)
Provident Financial Group, Inc. ............. (200) (8,375)
Queens County Bancorp., Inc. ................ (300) (8,250)
Silicon Valley Bancshares* .................. (200) (4,488)
--------
(68,135)
--------
BUSINESS SERVICES--(6.1)%
Acxiom Corp.* ............................... (400) (7,025)
Analytical Surveys, Inc.* ................... (600) (12,038)
Diamond Technology
Partners, Inc.* ........................... (200) (6,625)
Fair, Isaac and Co., Inc. ................... (200) (5,650)
InfoCure Corp.* ............................. (400) (7,700)
MAXIMUS, Inc.* .............................. (100) (3,463)
Pre-Paid Legal Services, Inc.* .............. (300) (9,619)
Primark Corp.* .............................. (100) (2,513)
ProBusiness Services, Inc.* ................. (200) (5,350)
Quintiles Transnational Corp.* .............. (200) (7,163)
Superior Consultant
Holdings Corp.* ........................... (200) (4,575)
--------
(71,721)
--------
CHEMICALS--(0.4)%
Eco Soil Systems, Inc.* ..................... (600) (4,163)
--------
COMMUNICATIONS & MEDIA--(0.9)%
Source Media, Inc.* ......................... (1,300) (10,684)
--------
NUMBER
OF SHARES VALUE
--------- -------
COMPUTERS, SOFTWARE & SERVICES--(15.6)%
Artificial Life, Inc.* ........................ (1,000) $ (11,375)
ATI Technologies, Inc. ........................ (700) (8,400)
Autobytel.com* ................................ (300) (4,706)
Autoweb.com, Inc.* ............................ (400) (3,688)
Banyan Systems, Inc.* ......................... (400) (3,100)
BARRA, Inc.* .................................. (400) (8,200)
Concurrent Computer Corp.* .................... (600) (4,331)
ConSyGen, Inc.* ............................... (200) (113)
Dell Computer Corp.* .......................... (500) (24,406)
Freeserve PLC-ADR* ............................ (300) (8,737)
IAT Multimedia, Inc.* ......................... (600) (1,575)
International Integration, Inc.* .............. (200) (4,600)
iVillage, Inc.* ............................... (100) (3,631)
IXnet, Inc.* .................................. (1,400) (26,250)
Level 8 Systems, Inc.* ........................ (400) (4,325)
MICROS Systems, Inc.* ......................... (200) (6,750)
MTI Technology Corp.* ......................... (200) (4,463)
NetObjects, Inc.* ............................. (2,000) (10,750)
Open Market, Inc.* ............................ (600) (7,275)
Sapient Corp.* ................................ (100) (7,300)
SCM Microsystems, Inc.* ....................... (200) (8,400)
Sykes Enterprises, Inc.* ...................... (200) (4,800)
Take-Two Interactive
Software, Inc.* ............................. (400) (3,638)
Transaction Systems Architects,
Inc., Class A* .............................. (200) (5,871)
Verity, Inc.* ................................. (100) (4,875)
Vitech America, Inc.* ......................... (100) (700)
--------
(182,259)
--------
CONSUMER PRODUCTS & SERVICES--(1.8)%
Dial Corp. (The) .............................. (200) (5,550)
Lason Holdings, Inc.* ......................... (100) (4,519)
Outdoor Systems, Inc.* ........................ (200) (6,463)
Rent-A-Center, Inc.* .......................... (200) (4,438)
--------
(20,970)
--------
CONTAINERS--(0.3)%
Gaylord Container Corp.* ...................... (500) (4,031)
--------
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
DISTRIBUTION--(2.2)%
Aviation Sales Co.* ........................... (500) $ (15,500)
Grand Toys International, Inc.* ............... (700) (10,194)
-------
(25,694)
-------
ELECTRONIC COMP. & INSTRUMENTS--(0.7)%
Mechanical Technology, Inc.* .................. (100) (3,000)
Spectra-Physics Lasers, Inc.* ................. (600) (5,063)
-------
(8,063)
-------
ELECTRONICS--(4.7)%
Aetrium, Inc.* ................................ (300) (2,100)
AstroPower, Inc.* ............................. (300) (4,350)
CFM Technologies, Inc.* ....................... (500) (4,250)
DuPont Photomasks, Inc.* ...................... (200) (10,725)
Genesis Microchip, Inc.* ...................... (200) (4,963)
Jabil Circuit, Inc.* .......................... (100) (4,481)
KLA-Tencor Corp.* ............................. (100) (6,281)
Lam Research Corp.* ........................... (150) (8,466)
Molex, Inc. ................................... (300) (9,619)
-------
(55,235)
-------
ENTERTAINMENT--(1.5)%
CCA Companies, Inc.* .......................... (600) (581)
Platinum Entertainment, Inc.* ................. (900) (4,331)
SFX Entertainment, Inc.* ...................... (300) (12,356)
-------
(17,268)
-------
ENVIRONMENTAL SERVICES--(0.8)%
Donaldson Co., Inc. ........................... (300) (5,888)
Osmonics, Inc.* ............................... (400) (3,675)
-------
(9,563)
-------
FINANCIAL SERVICES--(2.0)%
NextCard, Inc.* ............................... (300) (7,350)
PIMCO Advisors Holdings L.P. .................. (300) (10,575)
Siebert Financial Corp. ....................... (100) (1,763)
United Asset Management Corp. ................. (200) (3,913)
-------
(23,601)
-------
NUMBER
OF SHARES VALUE
--------- ------
FOOD & BEVERAGE--(1.6)%
Beringer Wine Estates Holdings, Inc.,
Class B* .................................... (300) $(12,488)
Delicious Brands, Inc.* ....................... (100) (625)
PepsiCo, Inc. ................................. (100) (3,413)
Worthington Foods, Inc. ....................... (200) (2,625)
-------
(19,151)
-------
FOOD-CONFECTIONARY--(0.7)%
Wm. Wrigley Jr. Co. ........................... (100) (7,831)
-------
HEALTH CARE--(0.2)%
Photogen Technologies, Inc.* .................. (200) (2,400)
-------
INDUSTRIAL EQUIPMENT & SUPPLIES--(0.8)%
Alamo Group, Inc. ............................. (400) (3,700)
Caterpillar, Inc. ............................. (100) (5,663)
-------
(9,363)
-------
LODGING & RESTAURANTS--(0.3)%
Vail Resorts, Inc.* ........................... (200) (3,538)
-------
MACHINERY & ENGINEERING--(1.7)%
Applied Materials, Inc.* ...................... (100) (7,106)
Intevac, Inc.* ................................ (800) (4,000)
Millipore Corp. ............................... (100) (3,775)
TurboChef Technologies, Inc.* ................. (600) (5,100)
-------
(19,981)
-------
MEDICAL EQUIPMENT--(4.2)%
Boston Scientific Corp.* ...................... (200) (6,788)
ChromaVision Medical
Systems, Inc.* .............................. (300) (4,462)
CryoLife, Inc.* ............................... (100) (1,419)
IGEN International, Inc.* ..................... (300) (7,125)
Laser Vision Centers, Inc.* ................... (600) (14,363)
PLC Systems, Inc.* ............................ (500) (1,531)
Schick Technologies, Inc.* .................... (300) (638)
Thermo Cardiosystems, Inc.* ................... (600) (5,025)
Ventana Medical Systems, Inc.* ................ (500) (8,000)
-------
(49,351)
-------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ------
MEDICAL SUPPLIES--(4.3)%
BioChem Pharma, Inc.* ........................... (400) $(10,369)
Genzyme Transgenics Corp.* ...................... (700) (4,638)
Inhale Therapeutic
Systems, Inc.* ................................ (300) (9,881)
LabOne, Inc. .................................... (24) (237)
MacroChem Corp.* ................................ (600) (4,106)
MiniMed, Inc.* .................................. (100) (9,094)
Myriad Genetics, Inc.* .......................... (100) (1,175)
SmithKline Beecham PLC ADR ...................... (100) (6,375)
Transkaryotic Therapies, Inc.* .................. (100) (3,938)
-------
(49,813)
-------
OIL & GAS EXPLORATION--(0.7)%
Eagle Geophysical, Inc.* ........................ (25) (16)
Penn Virginia Corp. ............................. (200) (4,363)
Seitel, Inc.* ................................... (400) (3,900)
-------
(8,279)
-------
OPTICAL SUPPLIES--(0.8)%
Keravision, Inc.* ............................... (400) (6,300)
Oakley, Inc.* ................................... (400) (2,450)
-------
(8,750)
-------
PHARMACEUTICALS--(4.8)%
Algos Pharmaceutical Corp.* ..................... (400) (3,325)
Andrx Corp.* .................................... (100) (7,188)
Ergo Science Corp.* ............................. (1,000) (1,250)
GelTex Pharmaceuticals, Inc.* ................... (300) (4,050)
Hollis-Eden
Pharmaceuticals, Inc.* ........................ (200) (2,650)
Isis Pharmaceuticals, Inc.* ..................... (400) (4,050)
King Pharmaceuticals, Inc.* ..................... (200) (6,925)
Maxim Pharmaceuticals, Inc.* .................... (400) (3,150)
NeoPharm, Inc.* ................................. (300) (5,213)
Shaman Pharmaceuticals, Inc.* ................... (50) (11)
Vertex Pharmaceuticals, Inc.* ................... (400) (11,100)
Vion Pharmaceuticals, Inc.* ..................... (700) (3,588)
Watson Pharmaceuticals, Inc.* ................... (100) (3,588)
-------
(56,088)
-------
NUMBER
OF SHARES VALUE
--------- ------
PRINTING SERVICES--(1.1)%
Presstek, Inc.* ............................. (400) $ (2,450)
Xeikon N.V. ADR* ............................ (500) (10,500)
--------
(12,950)
--------
RESTAURANTS--(1.2)%
CBRL Group, Inc. ............................ (300) (3,938)
Landry's Seafood
Restaurants, Inc.* ........................ (600) (5,100)
O'Charleys, Inc.* ........................... (300) (4,613)
Planet Hollywood
International, Inc.* ...................... (700) (525)
--------
(14,176)
--------
RETAIL SPECIALTY--(2.8)%
Amazon.com, Inc.* ........................... (100) (12,437)
Guitar Center, Inc.* ........................ (500) (3,875)
Party City Corp.* ........................... (1,600) (4,600)
PETCO Animal Supplies, Inc.* ................ (200) (2,500)
Starbucks Corp.* ............................ (400) (9,150)
--------
(32,562)
--------
RETAIL-AUTO PARTS--(1.9)%
CSK Auto Corp.* ............................. (300) (7,125)
O'Reilly Automotive, Inc.* .................. (400) (15,300)
--------
(22,425)
--------
RETAIL-DISCOUNT--(0.5)%
Ames Department Stores, Inc.* ............... (100) (2,938)
Cost-U-Less, Inc.* .......................... (500) (2,625)
--------
(5,563)
--------
SCHOOLS--(0.3)%
Sylvan Learning Systems, Inc.* .............. (200) (3,975)
--------
STEEL--(0.3)%
Valmont Industries, Inc. .................... (200) (3,175)
--------
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
MARKET NEUTRAL FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- ----------
TELECOMMUNICATIONS--(1.1)%
ADTRAN, Inc.* ............................. (100) $ (3,813)
Aware, Inc.* .............................. (100) (3,350)
Clearnet Communications, Inc.,
Class A* ............................... (100) (1,588)
Coyote Network Systems, Inc.* ............. (600) (4,088)
-----------
(12,839)
-----------
TELECOMMUNICATIONS & EQUIPMENT--(0.6)%
Terayon Communications
Systems, Inc.* .......................... (200) (7,200)
-----------
TEXTILES & APPAREL--(0.8)%
Gildan Activewear, Inc., Class A* ......... (200) (3,750)
Polo Ralph Lauren Corp.* .................. (300) (5,813)
-----------
(9,563)
-----------
TOBACCO--(0.1)%
General Cigar Holdings, Inc.* ............. (100) (644)
-----------
TRAVEL SERVICES--(1.1)%
American Classic Voyages Co.* ............. (300) (6,113)
Pegasus Systems, Inc.* .................... (200) (7,225)
-----------
(13,338)
-----------
TOTAL SECURITIES SOLD SHORT
(Proceeds $957,939) ................... (896,830)
-----------
NET INVESTMENTS IN SECURITIES--27.4%
(Cost $274,281) ........................... 321,236
-----------
OTHER ASSETS IN EXCESS
OF LIABILITIES--72.6% ..................... 850,271
-----------
NET ASSETS--100.0% ........................... $ 1,171,507
===========
- -------------
*Non-income producing.
ADR - American Depository Receipt.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 1999
NUMBER
OF SHARES VALUE
--------- --------
PREFERRED STOCK--5.4%
INDUSTRIAL GOODS & MATERIALS--1.0%
Amcor Ltd. (Australia)
7.25% 11/19/06 ............................... 2,500 $ 115,625
---------
REAL ESTATE--4.4%
Crescent Real Estate
6.75% 12/31/49 ............................... 10,100 159,706
Equity Office Properties Trust
Series B
5.25% 02/15/08 ............................... 2,900 116,725
Equity Residential Properties
Series G
7.25% 12/31/49 ............................... 5,500 123,406
Reckson Associates Realty
Series A
7.625% 12/31/49 .............................. 7,000 142,187
---------
542,024
---------
TOTAL PREFERRED STOCK
(Cost $801,878) ............................ 657,649
---------
PAR
(000)
---------
CORPORATE BONDS--38.5%
AEROSPACE/DEFENSE--0.2%
Raytheon Co. Notes (Baa1, BBB)
5.950% 03/15/01 .............................. $ 20 19,788
---------
BANKS AND SAVINGS & LOANS--9.1%
BankBoston NA
Subordinated Notes (A2, A-)
7.375% 09/15/06 .............................. 120 120,300
BB&T Corp. Subordinated
Notes (A3, BBB+)
7.250% 06/15/07 .............................. 150 146,250
Imperial Bank Subordinated Notes
(Ba2, BBB-)
8.500% 04/01/09 .............................. 50 47,125
Korean Development Bank
Notes (Baa3, BBB-)
7.900% 02/01/02 .............................. 75 74,906
Old Kent Bank Subordinated
Notes (NA, A-)
6.625% 11/15/05 .............................. 110 105,187
PAR
(000) VALUE
------- ---------
BANKS AND SAVINGS & LOANS--(CONTINUED)
Riggs Capital Trust Series A
Company Guarantee Notes
(baa3, BB)
8.625% 12/31/26 ........................... $ 90 $ 84,712
Riggs National Corp. Subordinated
Debentures (Ba1, BB+)
9.650% 06/15/09 ........................... 120 127,800
Sovereign Bancorp Subordinated
Notes (NA, BB+)
8.000% 03/15/03 ........................... 100 100,375
Sovereign Capital Trust I Company
Guarantee Notes (Ba2, BB)
9.000% 04/01/27 ........................... 100 105,125
Zions Bancorp Subordinated
Notes (Baa1, BBB-)
8.625% 10/15/02 ........................... 100 104,500
Zions Institutional Capital Trust
Series A Company Guarantee
Notes (a3, BBB-)
8.536% 12/15/26 ........................... 100 100,250
----------
1,116,530
----------
CANADIAN GOVERNMENT BONDS--0.5%
Hydro-Quebec Local Government
Guarantee Notes (A2, A+)
8.625% 06/15/29 ........................... 50 55,500
----------
CHEMICALS--0.6%
Lyondell Chemical Co. Series A
Secured (Ba3, BB)
9.625% 05/01/07 ........................... 50 50,750
Union Carbide Corp.
Notes (Baa2, BBB)
6.250% 06/15/03 ........................... 25 24,300
----------
75,050
----------
CONSUMER PRODUCTS--1.2%
Philip Morris Co., Inc.
Notes (A2, A)
6.800% 12/01/03 ........................... 150 148,125
----------
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
------- ---------
ELECTRIC UTILITIES--1.2%
Consumers Energy Co. First Mortgage
Notes (Baa3, BBB+)
6.375% 09/15/03 ............................... $ 100 $ 96,750
Texas-New Mexico Power Senior
Notes (Baa2, BBB)
6.250% 01/15/09 ............................... 60 52,875
--------
149,625
--------
ELECTRONICS--1.3%
HMT Technology Corp. (B3, B-)
5.750% 01/15/04 ............................... 74 28,305
National Semiconductor Corp.
(Ba2, NA)
6.500% 10/01/02 ............................... 130 126,425
--------
154,730
--------
FINANCIAL SERVICES--3.5%
AON Capital Trust A Company
Guarantee Notes (a3, A)
8.205% 01/01/27 ............................... 50 50,500
Citigroup Capital III Company
Guarantee Notes (aa3, A+)
7.625% 12/01/36 ............................... 100 93,375
Ford Motor Credit Co. Notes (A1, A)
6.700% 07/16/04 ............................... 100 98,625
Ford Motor Credit Corp. Senior
Unsubordinated Notes (A1, A)
7.200% 06/15/07 ............................... 65 64,837
Security Capital U.S. Realty Bonds
(Baa3, NA)
2.000% 05/22/03 ............................... 170 125,800
--------
433,137
--------
FOOD-RETAIL--0.4%
Safeway, Inc. Notes (Baa2, BBB)
6.050% 11/15/03 ............................... 50 48,000
--------
GAS UTILITIES--1.1%
KN Energy, Inc. Senior Notes
(Baa2, BBB-)
6.450% 11/30/01 ............................... 75 73,594
PAR
(000) VALUE
------- ---------
GAS UTILITIES--(CONTINUED)
KN Capital Trust III Company
Guarantee Notes (baa3, BB)
7.630% 04/15/28 ............................. $ 75 $ 67,406
--------
141,000
--------
HEALTHCARE--2.3%
Tenet Healthcare Corp. Senior
Notes (Ba1, BB+)
8.625% 12/01/03 ............................. 175 172,594
Total Renal Care Holdings (B1, B)
5.625% 07/15/06 ............................. 165 108,488
--------
281,082
--------
INDUSTRIAL GOODS & MATERIALS--4.3%
Browning-Ferris Industries, Inc.
Senior Notes (Ba3, BB-)
6.375% 01/15/08 ............................. 100 83,625
Southdown, Inc. Series B Senior
Subordinated Notes (Baa2, BBB)
10.000% 03/01/06 ............................ 100 109,250
Unisys Corp. Senior Notes (Ba1, BB+)
11.750% 10/15/04 ............................ 200 222,000
USG Corp. Series B Senior Notes
(Baa2, BBB+)
9.250% 09/15/01 ............................. 105 110,906
--------
525,781
--------
INSURANCE--0.9%
Equitable Companies, Inc. Debentures
(A2, A)
7.000% 04/01/28 ............................. 25 23,187
Equitable Companies, Inc. Senior
Notes (A2, A)
9.000% 12/15/04 ............................. 80 86,700
--------
109,887
--------
MEDIA--2.1%
Jones Intercable, Inc. Senior Notes
(Baa3, BBB-)
9.625% 03/15/02 ............................. 100 106,200
Lenfest Communications, Inc. Senior
Notes (Ba2, BB+)
8.375% 11/01/05 ............................. 100 103,625
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
------- ---------
MEDIA--(CONTINUED)
News America Holdings Debentures
(Baa3, BBB-)
8.875% 04/26/23 ............................... $ 45 $ 47,700
--------
257,525
--------
OIL SERVICES--1.4%
Louis Dreyfus Natural Gas Senior
Subordinated Notes (Ba3, BB+)
9.250% 06/15/04 ............................... 100 102,625
Union Oil Co. of California Company
Guarantee Notes (Baa1, BBB+)
7.500% 02/15/29 ............................... 40 38,450
Union Oil Co. of California Notes
(Baa1, BBB+)
6.500% 05/01/08 ............................... 30 28,125
--------
169,200
--------
RETAIL--0.2%
Federated Department Stores, Inc.
Debentures (Baa2, BBB+)
7.000% 02/15/28 ............................... 30 27,188
--------
SOVEREIGN GOVERNMENT BONDS--2.9%
Brazil (Republic Of) Bonds (B2, B+)
11.625% 04/15/04 .............................. 65 58,744
Panama (Republic Of)
Notes (Ba1, BB+)
7.875% 02/13/02 ............................... 300 291,375
--------
350,119
--------
TELECOMMUNICATIONS--4.7%
CCPR Services, Inc. Company Gurantee
Notes (B2, B)
10.000% 02/01/07 .............................. 35 37,450
Global Crossing Holdings Ltd.
Company Guarantee Notes
(Ba2, BB)
9.625% 05/15/08 ............................... 50 50,750
LCI International, Inc. Senior Notes
(Ba1, BB+)
7.250% 06/15/07 ............................... 80 76,800
PAR
(000) VALUE
------- ---------
TELECOMMUNICATIONS--(CONTINUED)
MCI Worldcom, Inc. Senior Notes
(A3, A-)
6.950% 08/15/06 ............................. $ 50 $ 48,938
MetroNet Communications Corp.
Senior Discount Notes (Baa3, BBB)
9.950% 06/15/08 ............................. 45 34,425
Sprint Capital Corp. Company
Guarantee Notes (Baa1, BBB+)
6.900% 05/01/19 ............................. 60 55,275
Tele-Communications, Inc. Debentures
(A2, AA-)
9.800% 02/01/12 ............................. 125 150,469
US Cellular Corp. Notes (Baa2, BBB)
7.250% 08/15/07 ............................. 75 73,969
Worldcom, Inc. Senior Notes (A3, A-)
6.125% 08/15/01 ............................. 50 49,563
----------
577,639
----------
TRANSPORTATION--0.4%
CSX Corp. Notes (Baa2, BBB)
6.250% 10/15/08 ............................. 50 46,063
----------
U.S. GOVERNMENT BONDS--0.2%
Fannie Mae Notes (Aaa, NA)
5.750% 04/15/08 ............................. 25 23,214
----------
TOTAL CORPORATE BONDS
(Cost $4,974,476) ......................... 4,709,183
----------
AGENCY OBLIGATIONS--43.6%
FEDERAL NATIONAL MORTGAGE ASSOCIATION--12.0%
FNMA 437946
6.000% 07/01/13 ............................. 461 439,261
FNMA 190945
6.000% 05/01/24 ............................. 369 339,592
FNMA 281054
6.500% 04/01/24 ............................. 350 330,955
FNMA 251967
6.500% 09/01/28 ............................. 80 75,623
FNMA 252212
6.500% 01/01/29 ............................. 121 114,943
FNMA 487809
7.000% 04/01/29 ............................. 73 70,422
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
------- ---------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION--(CONTINUED)
FNMA 252440
7.000% 05/01/29 ............................... $ 98 $ 94,764
----------
1,465,560
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--31.6%
GNMA 465540
6.000% 07/15/28 ............................... 218 199,981
GNMA 354662
6.500% 09/15/08 ............................... 93 90,170
GNMA 780303
6.500% 02/15/09 ............................... 254 247,041
GNMA 433435
6.500% 02/15/12 ............................... 293 285,166
GNMA 407234
6.500% 01/15/13 ............................... 87 84,288
GNMA 457737
6.500% 03/15/13 ............................... 101 97,950
GNMA 469128
6.500% 02/15/28 ............................... 393 371,004
GNMA 447928
6.500% 05/15/28 ............................... 37 34,546
GNMA 473797
6.500% 06/15/28 ............................... 30 28,022
GNMA 468090
6.500% 07/15/28 ............................... 35 32,914
GNMA 482119
6.500% 08/15/28 ............................... 98 92,450
GNMA 376528
7.000% 05/15/09 ............................... 210 208,395
GNMA 454925
7.000% 12/15/12 ............................... 271 268,570
GNMA 780921
7.000% 11/15/13 ............................... 136 135,092
GNMA 366816
7.000% 06/15/24 ............................... 100 96,705
GNMA 452645
7.000% 11/15/27 ............................... 50 48,266
GNMA 450446
7.000% 12/15/27 ............................... 50 48,509
GNMA 372475
7.000% 01/15/28 ............................... 333 322,685
PAR
(000) VALUE
------- ---------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION--(CONTINUED)
GNMA 469129
7.000% 02/15/28 ............................. $ 75 $ 72,518
GNMA 461450
7.000% 04/15/28 ............................. 63 60,618
GNMA 471949
7.000% 06/15/28 ............................. 263 255,313
GNMA 780859
7.500% 09/15/13 ............................. 23 22,986
GNMA 780498
7.500% 01/15/27 ............................. 87 86,172
GNMA 449474
7.500% 09/15/27 ............................. 76 75,518
GNMA 453892
7.500% 11/15/27 ............................. 236 234,436
GNMA 780687
8.000% 12/15/12 ............................. 261 267,662
GNMA 442120
8.000% 11/15/26 ............................. 97 98,304
----------
3,865,281
----------
TOTAL AGENCY OBLIGATIONS
(Cost $5,561,553) ......................... 5,330,841
----------
ASSET BACKED SECURITIES--1.9%
American Express Credit Account
Master Trust, Series 1997-1,
Class A (Aaa, AAA)
6.400% 04/15/05 ............................. 125 123,587
Illinois Power Special Purpose Trust,
Series 1998-1, Class A6 (Aaa, AAA)
5.540% 06/25/09 ............................. 50 46,272
MBNA Master Credit Card Trust,
Series 1995-C, Class A (Aaa, AAA)
6.450% 02/15/08 ............................. 60 58,031
----------
TOTAL ASSET BACKED SECURITIES
(Cost $235,675) ........................... 227,890
----------
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 1999
PAR
(000) VALUE
------- ---------
U.S. TREASURY OBLIGATIONS--7.5%
U.S. TREASURY BONDS--6.6%
U.S. Treasury Bonds
7.250% 05/15/16 ......................... $335 $ 361,041
7.125% 02/15/23 ......................... 420 454,017
-----------
815,058
-----------
U.S. TREASURY PRINCIPAL STRIP--0.9%
U.S. Treasury Strip
11/15/21 ................................ 455 109,712
-----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,013,417) ..................... 924,770
-----------
SHORT-TERM INVESTMENTS--2.4
Rodney Square Cash Reserve
4.82% 09/01/99 .......................... 297 297,117
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $297,117) ....................... 297,117
-----------
TOTAL INVESTMENTS--99.3%
(Cost $12,884,116) ........................ 12,147,450
-----------
OTHE ASSETS IN EXCESS
OF LIABILITIES--0.7% ...................... 81,960
-----------
NET ASSETS--100.0% ........................... $12,229,410
===========
- ----------------
*Non-income producing.
The Moody's Investor Service, Inc. and Standard and Poor's Ratings Group's
ratings indicated are the most recent ratings available at August 31, 1999.
(Unaudited)
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1999
<TABLE>
<CAPTION>
LARGE CAP MID CAP MICRO CAP MARKET NEUTRAL
VALUE FUND VALUE FUND VALUE FUND FUND BOND FUND
----------- ------------ ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (cost -- $54,810,830,
$172,045,096, $1,586,263, $1,232,219 and
$12,884,116, respectively). .............. $54,896,141 $173,229,984 $1,585,553 $1,218,066 $12,147,450
Cash ....................................... -- -- -- 4,613 --
Receivable from Investment Adviser . ....... -- -- 33,553 36,482 14,128
Deposits with brokers and custodian bank for
securities sold short .................... -- -- -- 857,705 --
Receivable for investments sold ............ 791,023 3,821,092 3,291 3,322 35,515
Receivable for Fund shares sold ............ 3,871 8,385 -- -- --
Dividends and interest receivable. ......... 90,689 166,464 947 1,548 141,251
----------- ------------ ---------- ---------- -----------
Total assets. ............................ 55,781,724 177,225,925 1,623,344 2,121,736 12,338,344
----------- ------------ ---------- ---------- -----------
LIABILITIES
Payable for investments purchased .......... 941,504 452,729 -- 0 45,039
Securities Sold-Short (proceeds $957,939) .. -- -- -- 896,830 --
Payable for Fund shares redeemed ........... -- 501,787 -- -- --
Accrued expenses and other liabilities ..... 91,161 285,738 21,814 53,070 63,895
Payable for dividends on securities sold-short -- -- -- 329 --
----------- ------------ ---------- ---------- -----------
Total liabilities ........................ 1,032,665 1,240,254 21,814 950,229 108,934
----------- ------------ ---------- ---------- -----------
NET ASSETS
Capital stock, $0.001 par value . .......... 4,472 15,343 185 124 1,300
Additional paid-in capital. ................ 51,722,479 173,521,147 1,793,323 1,217,876 13,095,406
Undistributed net investment income. ....... 439,288 175,034 -- 9,566 9,414
Accumulated net realized gain/(loss) from
investments .............................. 2,497,509 1,089,259 (191,268) (103,015) (140,044)
Net unrealized appreciation/(depreciation) on
investments. ............................. 85,311 1,184,888 (710) 46,956 (736,666)
----------- ------------ ---------- ---------- -----------
Net assets ............................... $54,749,059 $175,985,671 $1,601,530 $1,171,507 $12,229,410
=========== ============ ========== ========== ===========
INSTITUTIONAL CLASS
Net assets ................................. $53,111,553 $173,223,501 $1,308,557 $ 940,793 $12,041,031
----------- ------------ ---------- ---------- -----------
Shares outstanding ......................... 4,338,660 15,100,118 150,988 99,500 1,280,021
----------- ------------ ---------- ---------- -----------
Net asset value, offering and redemption
price per share .......................... $12.24 $11.47 $8.67 $9.46 $9.41
=========== ============ ========== ========== ===========
INVESTOR CLASS
Net assets ................................. $ 1,637,506 $ 2,762,170 $ 292,973 $ 230,714 $ 188,379
----------- ------------ ---------- ---------- -----------
Shares outstanding ......................... 132,520 242,821 33,859 24,477 19,900
----------- ------------ ---------- ---------- -----------
Net asset value, offering and redemption
price per share .......................... $12.36 $11.38 $8.65 $9.43 $9.47
=========== ============ ========== ========== ===========
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
LARGE CAP MID CAP MICRO CAP MARKET NEUTRAL
VALUE FUND VALUE FUND VALUE FUND FUND* BOND FUND
----------- ----------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends ............................. $ 1,080,373 $ 1,264,881 $ 18,628 $ 11,534 $ 74,517
Interest .............................. 118,791 280,091 1,350 23,018 883,602
----------- ----------- --------- --------- ---------
1,199,164 1,544,972 19,978 34,552 958,119
----------- ----------- --------- --------- ---------
EXPENSES
Advisory fees ......................... 560,189 1,055,246 18,140 12,727 56,220
Administration fees ................... 93,735 164,882 75,000 62,500 75,000
Administrative services fees .......... 104,182 193,723 1,823 1,093 20,788
Transfer agent fees and expenses ...... 80,450 79,800 74,614 60,685 74,051
Custodian fees and expenses ........... 36,976 53,641 14,306 21,130 15,407
Printing .............................. 42,172 32,249 27,200 29,791 24,040
Federal and state registration fees ... 22,465 39,032 28,382 14,590 28,176
Audit and legal fees .................. 21,840 18,988 16,275 16,975 11,417
Distribution fees ..................... 13,093 6,022 590 299 491
Directors ............................. 463 2,221 763 366 752
Insurance ............................. 420 1,192 547 331 752
Dividend expense ...................... -- -- -- 3,474 --
Other ................................. 4,424 3,645 1,851 3,491 5,919
----------- ----------- --------- --------- ---------
Total expenses before waivers and
reimbursements .................... 980,409 1,650,641 259,491 227,452 313,013
Less: waivers and reimbursements .... (220,398) (325,562) (236,408) (202,466) (228,192)
----------- ----------- --------- --------- ---------
Total expenses after waivers and
reimbursements .................... 760,011 1,325,079 23,083 24,986 84,821
----------- ----------- --------- --------- ---------
NET INVESTMENT INCOME/(LOSS) .......... 439,153 219,893 (3,105) 9,566 873,298
----------- ----------- --------- --------- ---------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS
Net realized gain/(loss) from investments 1,980,807 2,802,409 (158,505) (103,015) (113,950)
Net change in unrealized appreciation/
(depreciation) on investments ....... 11,653,735 17,233,562 352,523 46,956 (663,010)
----------- ----------- --------- --------- ---------
Net realized and unrealized gain/(loss)
from investments .................... 13,634,542 20,035,971 194,018 (56,059) (776,960)
----------- ----------- --------- --------- ---------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ....................... $14,073,695 $20,255,864 $ 190,913 $ (46,493) $ 96,338
=========== =========== ========= ========= =========
<FN>
- ---------------
*Commenced operations November 17, 1998.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND MID CAP VALUE FUND
------------------------------- -------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income/(loss) ................... $ 439,153 $ 415,084 $ 219,893 $ 51,577
Net realized gain/(loss) from investments ...... 1,980,807 1,829,756 2,802,409 (1,636,807)
Net change in unrealized appreciation/
(depreciation) on investments ................ 11,653,735 (13,105,143) 17,233,562 (16,102,116)
----------- ----------- ------------ ------------
Net increase/(decrease) in net assets resulting
from operations .............................. 14,073,695 (10,860,303) 20,255,864 (17,687,346)
----------- ----------- ------------ ------------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income Institutional shares ..... (274,092) (216,811) (90,185) (10,109)
Net investment income Investor shares .......... (20,133) (4,064) -- (992)
Net realized capital gains Institutional shares (727,345) (1,561,759) (2,283) (92,752)
Net realized capital gains Investor shares ..... (64,741) (32,030) (40) (19,252)
----------- ----------- ------------ ------------
Total dividends and distributions to shareholders (1,086,311) (1,814,664) (92,508) (123,105)
----------- ----------- ------------ ------------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS ..................... (15,111,801) 44,262,908 86,425,931 82,858,741
----------- ----------- ----------- ------------
Total increase/(decrease) in net assets ........ (2,124,417) 31,587,941 106,589,287 65,048,290
NET ASSETS
Beginning of period ............................ 56,873,476 25,285,535 69,396,384 4,348,094
----------- ----------- ------------ ------------
End of period .................................. $54,749,059 $56,873,476 $175,985,671 $ 69,396,384
=========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
38
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
MICRO CAP VALUE FUND MARKET NEUTRAL FUND BOND FUND
---------------------------------- --------------------------------- -----------------
FOR THE FOR THE PERIOD FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR JULY 1, 1998* NOVEMBER 17, 1998* YEAR DECEMBER 30, 1997*
ENDED THROUGH THROUGH ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1999 AUGUST 31, 1998
---------------- ------------------ ------------------ --------------- -----------------
<S> <C> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income/(loss) ........... $ (3,105) $ (934) $ 9,566 $ 873,298 $ 518,176
Net realized gain/(loss) from investments (158,505) (32,763) (103,015) (113,950) 125,896
Net change in unrealized appreciation/
(depreciation) on investments ........ 352,523 (353,233) 46,956 (663,010) (73,656)
---------- ---------- ---------- ----------- -----------
Net increase/(decrease) in net assets
resulting from operations ............ 190,913 (386,930) (46,493) 96,338 570,416
---------- ---------- ---------- ----------- -----------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
NET INVESTMENT INCOME INSTITUTIONAL
SHARES ............................... -- -- -- (860,406) (506,561)
Net investment income Investor shares .. -- -- -- (10,855) (4,238)
Net realized capital gains Institutional
shares ............................... -- -- -- (149,870) --
Net realized capital gains Investor
shares ............................... -- -- -- (2,120) --
---------- ---------- ---------- ----------- -----------
Total dividends and distributions to
shareholders ......................... -- -- -- (1,023,251) (510,799)
---------- ---------- ---------- ----------- -----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS ........ 162,189 1,635,358 1,218,000 (2,550,896) 15,647,602
---------- ---------- ---------- ----------- -----------
Total increase/(decrease) in net assets 353,102 1,248,428 1,171,507 (3,477,809) 15,707,219
NET ASSETS
Beginning of period .................... 1,248,428 -- -- 15,707,219 --
---------- ---------- ---------- ----------- -----------
End of period .......................... $1,601,530 $1,248,428 $1,171,507 $12,229,410 $15,707,219
========== ========== ========== =========== ===========
<FN>
- ------------------
* Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
39
<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
supplemental 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 FOR THE PERIOD
YEAR YEAR JANUARY 2, 1997*
ENDED ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
---------------- --------------- ----------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS CLASS
---------------- --------------- ----------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ....... $ 10.58 $ 12.46 $ 10.00
-------- -------- --------
Net investment income/(loss)(1) ............ 0.05 0.12 0.05
Net realized and unrealized
gain/(loss) on investments(2) ........... 1.76 (1.31) 2.41
-------- -------- --------
Net increase/(decrease) in net assets
resulting from operations ............... 1.81 (1.19) 2.46
-------- -------- --------
Dividends to shareholders from:
Net investment income ...................... (0.04) (0.08) --
Net realized capital gains ................. (0.11) (0.61) --
-------- -------- --------
Total dividends and distributions
to shareholders ......................... (0.15) (0.69) --
-------- -------- --------
Net asset value, end of period ............. $ 12.24 $ 10.58 $ 12.46
======== ======== ========
Total investment return(3) ................. 17.12% (10.23%) 24.60%
======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .. $ 53,112 $ 50,724 $ 24,603
Ratio of expenses to average net assets(1) . 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets
without waivers and expense reimbursements 1.30% 1.49% 2.64%(4)
Ratio of net investment income to
average net assets(1) ................... 0.61% 0.87% 1.19%(4)
Portfolio turnover rate .................... 156.16% 111.68% 67.16%
<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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
40
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
LARGE CAP VALUE FUND
- ----------------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR YEAR JANUARY 16, 1997*
ENDED ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
- ---------------- --------------- ----------------
INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS
- ---------------- --------------- ----------------
$ 10.70 $ 12.45 $ 10.20
-------- -------- --------
0.15 0.06 0.02
1.65 (1.27) 2.23
-------- -------- --------
1.80 (1.21) 2.25
-------- -------- --------
(0.03) (0.06) --
(0.11) (0.48) --
-------- -------- --------
(0.14) (0.54) --
-------- -------- --------
$ 12.36 $ 10.70 $ 12.45
======== ======== ========
16.86% (10.28%) 22.06%
======== ======== ========
$ 1,637 $ 6,150 $ 683
1.25% 1.19% 1.11%(4)
1.55% 1.74% 3.05%(4)
0.36% 0.68% 0.91%(4)
156.16% 111.68% 67.16%
(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 of the timing of sales and repurchases of Fund
shares in relation to fluctuating net asset value during the period.
(3) Total return is not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
41
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each class of shares
outstanding, total investment return, ratios to average net assets and other
supplemental data for the respective periods. This information has been
derived from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MID CAP VALUE FUND
------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR YEAR JUNE 2, 1997*
ENDED ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
---------------- --------------- ---------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS CLASS
---------------- --------------- ---------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ............. $ 9.48 $ 11.01 $ 10.00
-------- -------- --------
Net investment income/(loss)(1) .................. 0.02 0.01 0.01
Net realized and unrealized
gain/(loss) on investments(2) ................. 1.98 (1.39) 1.00
-------- -------- --------
Net increase/(decrease) in net assets
resulting from operations ..................... 2.00 (1.38) 1.01
-------- -------- --------
Dividends to shareholders from:
Net investment income ............................ (0.01) (0.01) --
Net realized capital gains -- (0.14) --
-------- -------- --------
Total dividends and distributions to shareholders (0.01) (0.15) --
-------- -------- --------
Net asset value, end of period ................... $ 11.47 $ 9.48 $11.01
======== ======== ========
Total investment return(3) ....................... 21.08% (12.73%) 10.10%
======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ........ $173,224 $67,568 $3,750
Ratio of expenses to average net assets(1) ....... 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without
waivers and expense reimbursements ............ 1.25% 1.57% 12.37%(4)
Ratio of net investment income to
average net assets(1) ......................... 0.17% 0.13% 1.08%(4)
Portfolio turnover rate .......................... 200.09% 167.86% 21.80%
<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.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
42
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
- ----------------------------------------------------------------------
MID CAP VALUE FUND
- ----------------------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR YEAR JANUARY 16, 1997*
ENDED ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
- ---------------- --------------- ----------------
INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS
- ---------------- --------------- ----------------
$ 9.42 $ 11.01 $ 10.00
------- -------
(0.01) 0.01 0.01
1.97 (1.38) 1.00
------- -------
1.96 (1.37) 1.01
------- -------
-- (0.01) --
-- (0.21) --
------- -------
-- (0.22) --
------- -------
$ 11.38 $ 9.42 $ 11.01
------- -------
------- -------
20.81% (12.77%) 10.10
------- -------
------- -------
$ 2,762 $ 1,828 $ 598
1.25% 1.15% 1.10%(4)
1.50% 1.82% 12.62%(4)
0.01% (0.02%) 0.61%(4)
200.09% 167.86% 21.80%
(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 of the timing of sales and repurchases of Fund
shares in relation to fluctuating net asset value during the period.
(3) Total return is not annualized.
(4) Annualized.
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each class of shares
outstanding, total investment return, ratios to average net assets and other
supplemental data for the respective periods. This information has been
derived from information provided in the financial statements.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MICRO CAP VALUE FUND
------------------------------------------------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
YEAR JULY 1, 1998* YEAR JULY 1, 1998*
ENDED THROUGH ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
---------------- ---------------- ---------------- ----------------
INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period .................... $ 7.62 $ 10.00 $ 7.63 $ 10.00
-------- -------- -------- --------
Net investment income/(loss)(1) ......................... (0.01) (0.01) (0.02) (0.01)
Net realized and unrealized gain/(loss) on investments(2) 1.06 (2.37) 1.04 (2.36)
-------- -------- -------- --------
Net increase/(decrease) in net assets
resulting from operations ............................ 1.05 (2.38) 1.02 (2.37)
-------- -------- -------- --------
Dividends to shareholders from:
Net investment income ................................... -- -- -- --
Net realized capital gains .............................. -- -- -- --
-------- -------- -------- --------
Total dividends and distributions to shareholders ....... -- -- -- --
-------- -------- -------- --------
Net asset value, end of period .......................... $ 8.67 $ 7.62 $ 8.65 $ 7.63
======== ======== ======== ========
Total investment return(3) (5) .......................... 13.78% (23.80%) 13.37% (23.70%)
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) $1,309 $1,120 $ 293 $ 129
Ratio of expenses to average net assets(1) 1.55% 1.55%(4) 1.80% 1.80%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements 17.84% 17.63%(4) 18.09% 18.61%(4)
Ratio of net investment income to average net assets(1) (0.17%) (0.34%)(4) (0.42%) (0.66%)(4)
Portfolio turnover rate 87.48% 11.97% 87.48% 11.97%
<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 of the timing of sales and repurchases of Fund
shares in relation to fluctuating net asset value during the period.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
44
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
MARKET NEUTRAL FUND BOND FUND
--------------------------------------- ----------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
NOVEMBER 17, 1998* NOVEMBER 17, 1998* YEAR DECEMBER 30, 1997* YEAR DECEMBER 30,1997*
THROUGH THROUGH ENDED THROUGH ENDED THROUGH
AUGUST 31, 1999 AUGUST 31, 1999 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
------------------- ------------------ --------------- ----------------- --------------- -----------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS CLASS CLASS
------------------- ------------------ --------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
$10.00 $10.00 $ 10.08 $ 10.00 $10.10 $10.00
------ ------ ------- ------- ------ ------
0.12 0.06 0.96 0.78 0.93 0.62
(0.66) (0.63) (0.90) (0.31) (0.90) (0.16)
------ ------ ------- ------- ------ ------
(0.54) (0.57) 0.06 0.47 0.03 0.46
------ ------ ------- ------- ------ ------
-- -- (0.62) (0.39) (0.55) (0.36)
-- -- (0.11) -- (0.11) --
------ ------ ------- ------- ------ ------
-- -- (0.73) (0.39) (0.66) (0.36)
------ ------ ------- ------- ------ ------
$ 9.46 $ 9.43 $ 9.41 $ 10.08 $ 9.47 $10.10
====== ====== ======= ======= ====== ======
(5.40%) (5.70%) 0.42% 4.79% 0.17% 4.63%
====== ====== ======= ======= ====== ======
$ 941 $ 231 $12,041 $15,509 $ 188 $ 198
2.50%(4)(6) 2.75%(4)(6) 0.60% 0.60%(4) 0.85% 0.85%(4)
26.36%(4)(6) 26.61%(4)(6) 2.22% 2.82%(4) 2.47% 2.72%(4)
1.57%(4) 1.32%(4) 6.22% 6.06%(4) 5.97% 5.83%(4)
218.41% 218.41% 57.60% 45.27% 57.60% 45.27%
<FN>
(3) Total return is not annualized.
(4) Annualized.
(5) Redemption fee of 1.00% is not reflected in total return calculations.
(6) Without the voluntary waiver of advisory and administration fees, the ratios
of expenses to average net assets for the Institutional Class would have
been 26.36% (excluding dividend expense) and 26.77% (including dividend
expense) annualized for the period ended August 31, 1999. Without the
voluntary waiver of advisory and administration fees, the ratios of expenses
to average net assets for the Investor Class would have been 26.61%
(excluding dividend expense) and 27.02% (including dividend expense)
annualized for the period ended August 31, 1999.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
45
<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 sixteen investment portfolios, including Boston
Partners Large Cap Value Fund ("Large Cap Fund"), Boston Partners Mid Cap Value
Fund ("Mid Cap Fund"), Boston Partners Micro Cap Value Fund ("Micro Cap Fund"),
Boston Partners Market Neutral Fund ("Market Neutral Fund") and Boston Partners
Bond Fund ("Bond Fund") (each a "Fund", collectively the "Funds"). The Large Cap
Fund, the Mid Cap Fund, the Micro Cap Fund, the Market Neutral 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 20.03 billion are currently classified into ninety-seven classes. Each
class represents an interest in one of sixteen investment portfolios of RBB. The
classes have been grouped into fifteen separate "families," nine of which have
begun investment operations, The Boston Partners Family of Funds includes the
Large Cap Fund, which commenced investment operations on January 2, 1997, the
Mid Cap Fund, which commenced operations on June 2, 1997, the Micro Cap Fund,
which commenced investment operations on July 1, 1998, the Market Neutral Fund,
which commenced investment operations on November 17, 1998 and the Bond Fund,
which commenced investment operations on December 30, 1997.
PORTFOLIO VALUATION -- The net asset value of the Fund is determined as of
4:00 p.m. eastern time on each business day. Each 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 RBB's Board of
Directors, each Fund may use a pricing service, bank or broker-dealer
experienced in such matters to value its securities. 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.
USE OF ESTIMATES -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the period. Actual results could differ from those estimates.
46
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
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' investment income, expenses (other than class
specific 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 activity of the respective classes).
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income, if
any, are declared and paid at least annually to shareholders. Dividends from net
investment income of the Bond Fund are declared and paid monthly. Distributions
from net realized capital gains, if any, are 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. These differences include the treatment of non-taxable
dividends, expiring capital loss carryforwards, foreign currency gain/loss,
partnerships, and losses deferred due to wash sales and excise tax regulations.
Permanent book and tax basis differences relating to shareholder distributions
will result in reclassifications to paid in capital.
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
all excise taxes.
47
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SHORT SALES -- When the Adviser anticipates that a security is overvalued,
it may sell the security short by borrowing the same security from a broker or
other institution and selling the security. A Fund will incur a loss as a result
of a short sale if the price of the borrowed security increases between the date
of the short sale and the date on which the Fund replaces such security. A Fund
will realize a gain if there is a decline in price of the security between those
dates which decline exceeds the costs of the borrowing the security and other
transaction costs. There can be no assurance that a Fund will be able to close
out a short position at any particular time or at an acceptable price. Although
a Fund's gain is limited to the amount at which it sold a security short, its
potential loss is unlimited and will be the maximum attainable price of the
security less the price at which the security was sold. Until a Fund replaces a
borrowed security, it will maintain at all times cash, U.S. Government
securities, or other liquid securities in an amount which, when added to any
amount deposited with a broker as collateral will at least equal the current
market value of the security sold short. Depending on arrangements made with
brokers, a Fund may not receive any payments (including interest) on collateral
deposited with them. The Funds will not make a short sale if, after giving
effect to such sale, the market value of all securities sold short exceeds 100%
of the value of a Fund's net assets.
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 Fund's average daily net assets, 0.80% of the Mid Cap Fund's
average daily net assets, 1.25% of the Micro Cap Fund's average daily net
assets, 1.50% of the Market Neutral 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 Fund and the Mid
Cap 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 Fund and
the Mid Cap Funds' average daily net assets. The adviser has voluntarily agreed
to limit the Micro Cap Fund's total operating expenses for the current and the
following fiscal year to the extent that such expenses exceed 1.55% of the Micro
Cap Fund's average daily net assets. The adviser has voluntarily agreed to limit
the Market Neutral Fund's total operating expenses for the current and the
following fiscal year to the extent that such expenses exceed 2.50% of the
Market Neutral 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 year ended August 31, 1999, (unless otherwise indicated)
investment advisory fees, waivers and reimbursements of expenses were as
follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE FUND
FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT
- ------ ------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
Large Cap Fund $ 560,189 $(109,852) $450,337 --
Mid Cap Fund 1,055,246 (128,384) 926,862 --
Micro Cap Fund 18,140 (18,140) -- $(129,809)
Market Neutral Fund* 12,727 (12,727) -- (121,414)
Bond Fund 56,220 (56,220) -- (72,841)
<FN>
- ------------------
* Commenced investment operations on November 17, 1998.
</FN>
</TABLE>
48
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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.
For the year ended August 31, 1999, (unless otherwise indicated) PFPC, at
their discretion, voluntarily agreed to waive a portion of their administration
fees for the Funds. For the year ended August 31, 1999, (unless otherwise
indicated) PFPC's administration fees and related waivers were as follows:
PFPC GROSS NET PFPC
FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES
- ---- ------------------- --------- -------------------
Large Cap Fund $ 93,735 -- $ 93,735
Mid Cap Fund 164,882 -- 164,882
Micro Cap Fund 75,000 $(37,500) 37,500
Market Neutral Fund* 62,500 (31,250) 31,250
Bond Fund 75,000 (37,501) 37,499
- -----------------
* Commenced investment operations on November 17, 1998.
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 year ended August 31, 1999, (unless otherwise
indicated) transfer agency fees and waivers were as follows:
GROSS TRANSFER NET TRANSFER
FUND AGENCY FEES WAIVERS AGENCY FEES
- ---- -------------- --------- ------------
Large Cap Fund $80,450 $(27,200) $53,250
Mid Cap Fund 79,800 (42,200) 37,600
Micro Cap Fund 74,614 (45,000) 29,614
Market Neutral Fund* 60,685 (29,800) 30,885
Bond Fund 74,051 (45,000) 29,051
- ------------------
* Commenced investment operations on November 17, 1998.
Provident Distributors, Inc. ("PDI"), provides certain administrative
services to the Funds. As compensation for such administrative services, PDI is
entitled to receive a monthly fee equal to an annual rate of 0.15% of the Funds'
Institutional Class shares average daily net assets. Additionally, PDI receives
a fee at an annual rate of .25% of the average daily net assets of each Funds'
Investor Class Shares pursuant to a distribution plan adopted by each Fund
pursuant to Rule 12b-1 under the 1940 Act.
49
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended August 31, 1999 (unless otherwise indicated), PDI has,
at its discretion, voluntarily agreed to waive a portion of its administrative
services fees for the Funds. For the year ended August 31, 1999 (unless
otherwise indicated), administrative services fees and waivers were as follows:
GROSS ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICES FEES WAIVERS SERVICES FEES
- ---- -------------------- ---------- ------------------
Large Cap Fund $104,182 $ (83,346) $20,836
Mid Cap Fund 193,723 (154,978) 38,745
Micro Cap Fund 1,823 (1,458) 365
Market Neutral Fund* 1,093 (874) 219
Bond Fund 20,788 (16,630) 4,158
- ---------------------
* Commenced investment operations on November 17, 1998.
PFPC Trust Company provides certain custodial services to the Funds. As
compensation for such custodial services, PFPCTrust Company is entitled to
receive a monthly fee equal to an annual rate of 0.015% of the Funds' average
daily gross assets.
For the year ended August 31, 1999 (unless otherwise indicated), PFPCTrust
Company has, at its discretion, voluntarily agreed to waive a portion of its
custodial fees for the funds. For the year ended August 31, 1999 (unless
otherwise indicated), custodial fees and waivers were as follows:
GROSS CUSTODIAL NET CUSTODIAL
FUND FEES WAIVERS FEES
- ---- --------------- -------- -------------
Large Cap Fund $36,976 $ -- $36,976
Mid Cap Fund 53,641 -- 53,641
Micro Cap Fund 14,306 (4,501) 9,805
Market Neutral Fund* 21,130 (6,401) 14,729
Bond Fund 15,407 -- 15,407
- ---------------------
* Commenced investment operations on November 17, 1998.
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
August 31, 1999 were $54,855,771, $172,995,566, $1,586,563, $292,207 and
$12,884,116, respectively, for the Large Cap Fund, the Mid Cap Fund, the Micro
Cap Fund, the Market Neutral Fund and the Bond Fund. Accordingly, the net
unrealized appreciation/(depreciation) of investments are as follows:
NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ -------------- -----------------
Large Cap Fund $3,245,470 $ (3,205,100) $ 40,370
Mid Cap Fund 11,133,882 (10,899,464) 234,418
Micro Cap Fund 173,042 (174,052) (1,010)
Market Neutral Fund* 109,561 (80,532) 29,029
Bond Fund 9,888 (746,554) (736,666)
50
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the year ended August 31, 1999 (unless otherwise indicated), aggregate
purchases and sales of investment securities (excluding short-term investments)
were as follows:
INVESTMENT SECURITIES
-------------------------------
FUND PURCHASES SALES
- ---- ------------ ------------
Large Cap Fund $111,443,501 $128,646,240
Mid Cap Fund 324,218,128 250,570,886
Micro Cap Fund 1,376,830 1,242,349
Market Neutral Fund* 3,416,055 2,256,900
Bond Fund 7,858,090 10,173,097
- ------------------------
* The Market Neutral Fund had purchases of $1,731,372 to cover short sales and
received proceeds of $2,573,233 from sales of short securities.
4. CAPITAL SHARE TRANSACTIONS
As of August 31, 1999 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 YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
-------------------------- ------------------------ --------------------- ---------------------
INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS
-------------------------- ------------------------ --------------------- ---------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
---------- ------------ --------- ----------- -------- ----------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales ........... 2,350,373 $ 25,419,814 3,041,088 $40,050,134 252,467 $ 3,057,026 619,068 $8,408,773
Repurchases ..... (2,888,244) (35,624,409) (366,654) (4,685,359) (701,743) (9,049,056) (101,913) (1,312,572)
Reinvestments ... 82,453 1,000,152 145,610 1,766,251 6,901 84,672 2,908 35,680
---------- ------------ --------- ----------- -------- ----------- -------- ----------
Net Increase/
Decrease ... (455,418) $ (9,204,443) 2,820,044 $37,131,026 (442,375) $(5,907,358) 520,063 $7,131,881
========== ============ ========= =========== ======== =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE FUND
-----------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
-------------------------- ------------------------ --------------------- ---------------------
INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS
-------------------------- ------------------------ --------------------- ---------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
---------- ------------ --------- ----------- -------- ----------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales ........... 9,955,056 $107,297,978 7,123,576 $85,121,556 127,161 $1,348,569 189,066 $2,285,116
Repurchases ..... (1,987,489) (21,447,511) (347,553) (4,063,621) (78,465) (846,633) (51,049) (607,185)
Reinvestments ... 6,849 73,489 9,224 102,668 3 39 1,797 19,870
---------- ------------ --------- ----------- ------- ----------- ------- ----------
Net Increase/
Decrease ... 7,974,416 $ 85,923,956 6,785,247 $81,160,603 48,699 $ 501,975 139,814 $1,697,801
========== ============ ========= =========== ======= =========== ======= ==========
</TABLE>
51
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
MICRO CAP VALUE FUND
-------------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR ENDED JULY 1, 1998* FOR THE YEAR ENDED JULY 1, 1998*
AUGUST 31, 1999 THROUGH AUGUST 31, 1998 AUGUST 31, 1999 THROUGH AUGUST 31, 1998
---------------------- ----------------------- ------------------ -----------------------
INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS
---------------------- ----------------------- ------------------ -----------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
---------- --------- ---------- ---------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales ............ 4,159 $32,821 146,905 $1,468,400 18,820 $143,500 16,857 $167,453
Repurchases ...... (20) (157) (56) (500) (1,818) (13,975) -- --
----- ------- ------- ---------- ------ -------- ------ --------
Net Increase/
Decrease .... 4,139 $32,664 146,549 $1,467,900 17,002 $129,525 16,857 $167,453
===== ======= ======= ========== ====== ======== ====== ========
</TABLE>
MARKET NEUTRAL FUND
--------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
NOVEMBER 17, 1998* NOVEMBER 17, 1998*
THROUGH AUGUST 31, 1999 THROUGH AUGUST 31, 1999
------------------------ -----------------------
INSTITUTIONAL CLASS INVESTOR CLASS
------------------------ -----------------------
SHARES VALUE SHARES VALUE
--------- -------- ------ --------
Sales ...................... 99,500 $995,000 24,477 $223,000
Repurchases ................ -- -- -- --
Reinvestments .............. -- -- -- --
-------- -------- ------ --------
Net Increase/Decrease ...... 99,500 $995,000 24,477 $223,000
======== ======== ====== ========
<TABLE>
<CAPTION>
BOND FUND
----------------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR ENDED DECEMBER 30, 1997* FOR THE YEAR ENDED DECEMBER 30, 1997*
AUGUST 31, 1999 THROUGH AUGUST 31, 1998 AUGUST 31, 1999 THROUGH AUGUST 31, 1998
----------------------- ------------------------ ----------------------- ------------------------
INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS
----------------------- ------------------------ ----------------------- ------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
---------- ----------- --------- ----------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sales 278,829 $ 2,750,309 1,981,162 $19,941,980 -- -- 18,299 $195,000
Repurchases (639,817) (6,314,310) (492,757) (5,000,000) (988) $(9,812) (5) (47)
Reinvestments 102,359 1,010,290 50,245 506,561 1,275 12,627 1,319 4,108
-------- ----------- --------- ----------- ----- ------- ------ --------
Net Increase/
Decrease (258,629) $(2,553,711) 1,538,650 $15,448,541 287 $ 2,815 19,613 $199,061
======== =========== ========= =========== ===== ======= ====== ========
<FN>
- ------------------------
* Commencement of operations
</FN>
</TABLE>
52
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
There is a 1.00% redemption fee on shares redeemed, which have been held
365 days or less on the Micro Cap Value Fund. For the period September 1, 1998
(commencement of investment operations) through August 31, 1999, these fees
amounted to $5. The redemption fees are collected and retained by the Fund for
the benefit of the remaining shareholders.
On August 31, 1999 seven shareholders held approximately 76% of the
outstanding shares of the Large Cap Value Fund Institutional Class, two
shareholders held approximately 72% of the outstanding shares of the Large Cap
Value Investor Class, three shareholders held approximately 20% of the
outstanding shares of the Mid Cap Value Fund Institutional class, two
shareholders held approximately 57% of the outstanding shares of the Mid Cap
Value Fund Investor Class, four shareholders held approximately 100% of the
outstanding shares of the Bond Fund Institutional Class, two shareholder held
approximately 97% of the Bond Fund Investor Class, four shareholders held
approximately 87% of the outstanding shares of the Micro Cap Value Fund
Institutional Class, three shareholders held approximately 88% of the
outstanding shares of the Micro Cap Value Investor Class, one shareholder held
approximately 100% of the outstanding shares of the Market Neutral Fund
Institutional Class and two shareholders held approximately 97% of the
outstanding shares of the Market Neutral Fund Investor Class.
5. CAPITAL LOSS CARRYOVER
At August 31, 1999, Capital loss carryovers were available to offset future
realized gains as follows: $85,089 in the Market Neutral Fund which expires in
2007 and $107,087 in the Micro Cap Value Fund, $32,463 which expires in 2006 and
$74,624 which expires in 2007.
6. RECLASS OF CAPITAL ACCOUNTS
In accordance with accounting pronouncements, the Fund has recorded
reclassifications in the capital accounts. These reclassifications have no
impact on the net asset value of the Fund and are designed generally to present
undistributed income and realized gains on a tax basis which is considered to be
more informative to the shareholder. As of August 31, 1999, the Fund recorded
the following reclassification to increase (decrease) the accounts listed below:
ACCUMULATED
UNDISTRIBUTED NET REALIZED ADDITIONAL
NET INVESTMENT GAIN/(LOSS) PAID-IN
INCOME (LOSS) ON INVESTMENTS CAPITAL
------------ -------------- ----------
Micro Cap Value $4,039 $ -- $(4,039)
53
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund, Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Boston Partners Large Cap Value
Fund, Boston Partners Mid Cap Value Fund, Boston Partners Micro Cap Value Fund,
Boston Partners Market Neutral Fund and Boston Partners Bond Fund, separately
managed portfolios of The RBB Fund, Inc. (the "Fund"), at August 31, 1999, the
results of their operations for the year (or period) then ended and the changes
in their net assets and the financial highlights for each of the periods
presented, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at August
31, 1999 by correspondence with the custodians and brokers, provide a reasonable
basis for the opinion expressed above.
/S/PRICEWATERHOUSECOOPERS LLP
PRICEWATERHOUSECOOPERS LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
October 15, 1999
54
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
MID CAP VALUE FUND
MICRO CAP VALUE FUND
BOND FUND
SHAREHOLDER TAX INFORMATION (UNAUDITED)
Each Fund is required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise its shareholders within 60 days of each Fund's fiscal year
end (August 31, 1999) as to the U.S. federal tax status of distributions
received by each Fund's shareholders in respect of such fiscal year.During the
fiscal year ended August 31, 1999, the following dividends and distributions per
share were paid by each of the Funds:
<TABLE>
<CAPTION>
ORDINARY INCOME CAPITAL GAINS
------------------------ -------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
FUND CLASS CLASS CLASS CLASS
- ---- ------------- -------- ------------- --------
<S> <C> <C> <C> <C>
Boston Partners Large Cap Value Fund .. $0.04 $0.03 $0.11 $0.11
Boston Partners Mid Cap Value Fund .... 0.01 -- -- --
Boston Partners Micro Cap Fund ........ -- -- -- --
Boston Partners Bond Fund ............. 0.62 0.55 0.11 0.11
</TABLE>
The percentage of total ordinary income dividends from the Large Cap Value Fund
and Mid Cap Value Fund qualifying for the corporate dividends received deduction
for each Fund is 100%.
These amounts were reported to shareholders as income in 1998. Because each
Fund's fiscal year is not the calendar year, another notification will be sent
with respect to calendar year 1999. The second notification, which will reflect
the amount, if any, to be used by calendar year taxpayers on their U.S. federal
income tax returns, will be made in conjunction with Form 1099-DIV and will be
mailed in January 2000.
Foreign shareholders will generally be subject to U.S. withholding tax on the
amount of their dividend. They will generally not be entitled to a foreign tax
credit or deduction for the withholding taxes paid by the Funds, if any.
In general, dividends received by tax-exempt recipients (e.g., IRAs and Keoghs)
need not be reported as taxable income for U.S. federal income tax purposes.
However, some retirement trusts (e.g., corporate, Keogh and 403(b)(7) plans) may
need this information for their annual information reporting.
Shareholders are advised to consult their own tax advisers with respect to the
tax consequences of their investment in the Funds.
55
<PAGE>
INVESTMENT ADVISER
Boston Partners Asset Management, L.P.
28 State Street
Boston, MA 02109
ADMINISTRATOR
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Provident Distributors, Inc.
Four Falls Corporate Center, 6th Floor
West Conshohocken, PA 19428-2961
CUSTODIAN
PFPC Trust Company
400 Bellevue Parkway
Wilmington, DE 19809
TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, PA 19103
COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
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.
