BOSTON PARTNERS FAMILY OF FUNDS
PORTFOLIO MANAGER'S LETTER
September 15, 2000
Dear Shareholder:
Over the past two years, our "Letters to the Shareholders" of the Boston
Partners Family of Funds have stressed several points. First, history shows that
growth and value funds have outperformed each other over various points in time.
Second, technology stocks, in general, have been incredibly expensive over the
past two years, and we believe this trend is unsustainable. Lastly, we believe
investment managers that stick to their investment discipline through difficult
times will be the ones who will be rewarded handsomely when their discipline is
in favor again.
Growth stocks were the rage from September 1, 1999 to early March 2000, and
technology stocks had propelled performance of these Growth Funds to all time
levels. During this period, Boston Partners has remained committed to our value
philosophy of buying undervalued companies with strong business fundamentals and
a catalyst for improvement. On or about March 9, 2000, fundamentals became
important again. What you paid for a company became important again. And value
funds began to shine again.
The Boston Partners Funds were no exception!
Total Return for the Boston Partners Family of Funds from September 1, 1999
to August 31, 2000
INSTITUTIONAL SHARES INVESTOR SHARES
-------------------- ---------------
Boston Partners Large Cap Value Fund 11.99% 11.67%
Boston Partners Mid Cap Value Fund 3.21% 2.90%
Boston Partners Small Cap Value Fund II 31.43% 31.33%
Boston Partners Long/Short Equity Fund 13.74% 13.87%
Boston Partners Bond Fund 8.01% 7.72%
At Boston Partners, we believe our job is to strive to deliver top-quartile
investment results in a fashion consistent with our value mandate. The holdings
in our portfolio are true "value" stocks, and each of them fit their fund's
specific category. When value is in favor, Boston Partners Funds have performed
very well.
Please take a moment to read the investment discussion of each of the
Boston Partners Funds. We hope these discussions will provide an overview of the
investment marketplace today as well as prospects for each fund going forward.
BOSTON PARTNERS LARGE CAP VALUE FUND
Performance for the Boston Partners Large Cap Value Fund over the past
fiscal year has been a tale of two periods. From September 1999 till early March
2000, our underweighting in technology hurt performance. Stocks like Cisco
Systems, Oracle Corp., Intel, Sun Microsystems, and other mega cap technology
names led the S&P 500 to gains, while investments in other stocks were virtually
ignored.
From March 2000 till August 2000, Value, as defined by the Russell 1000
Value Index, outperformed Growth, as defined by the Russell 1000 Growth Index,
by over 5%. It appears that investments in fundamentally solid companies have
replaced investments in highly speculative issues. It also seems that whether a
company can actually make money is important again and companies, more
specifically technology companies, are not appreciating based solely on their
new story or new concept.
<PAGE>
We attribute our strong returns over the past year to strong stock
selection. Notable contributors to performance include Ace Limited and Baxter
International.
Ace Limited is a Bermuda based re-insurance company that has recently
purchased the property and casualty business of CIGNA. We believe the company is
inexpensive at 12x next years earnings estimates. Ace appears to have a strong
management team that takes advantage of their favorable regulatory and tax
environment in Bermuda, and has seen increased prices in its insurance products.
It has contributed over 3% to performance since February 2000.
Baxter International is a leading maker of medical devices. We believe its
stock is inexpensive at 23x next years earnings, while its businesses are all
high return on capital businesses. It appears to us that their earnings and
sales momentum remain strong, and margins are improving. Baxter has added over
1% to performance since February.
Boston Partners has maintained our commitment to building a portfolio of
undervalued securities whose prospects for improvement is great. As the year
2000 has progressed, we continue to find companies who we believe recognize
their depressed valuations and we believe have taken aggressive actions to
increase shareholder value. In the Large Cap segment of the marketplace, share
buybacks have increased dramatically. Over 36% of the stocks in the Large Cap
Value Fund have instituted or increased their share buyback programs this year
alone. As the marketplace continues to recognize these inexpensive companies, we
believe valuations should return to more normalized levels, and this should bode
well for the Boston Partners Large Cap Value Fund.
BOSTON PARTNERS MID CAP VALUE FUND
The last fiscal year of investing for the Boston Partners Mid Cap Value
Fund shows two distinct periods of investing. From September 1999 until February
2000, mid cap investing provided extremely strong returns. Unfortunately, the
returns came from a very narrow list of growth stocks, more specifically
technology and biotechnology. On the whole, smaller stocks beat larger stocks,
and growth outperformed value.
During this period, we believe the markets were eschewing traditional
investment principles in favor of speculative stories, creating a bifurcated
market. In February 2000, there existed a small set of extremely expensive
stocks, which were driving index returns.
In March 2000, we began to see a change in market leadership. Equity
securities throughout the market capitalization spectrum rallied during past six
months as the Federal Reserve has been able to engineer a slow down in the
economy. Smaller capitalization stocks performed better than larger
capitalization stocks and value outperformed growth. It appears to us the
markets continue to broaden with strong contributions from a variety of sectors
due to the renewed focus on fundamentals and the increase in merger and
acquisition activity.
Performance for the Boston Partners Mid Cap Value Fund over the past six
months has been very strong. During the period, the fund outdistanced the broad
market index (Russell 2500) by nearly 23% and the value index (Russell 2500
Value) by over 8%. In fact, as shown below, the fund has had strong returns
versus other Mid Cap Indices.
INSTITUTIONAL SHARES
MARCH 2000 THROUGH AUGUST 2000
------------------------------
Boston Partners Mid Cap Value Fund 22.99%
Russell 2500 Value 14.74%
Russell 2500 0.05%
Russell Mid Cap Value 19.73%
Russell Mid Cap 9.38%
S&P Mid Cap 400 18.38%
2
<PAGE>
Earnings seem to matter again as investors focus on company fundamentals.
Merrill Lynch's Small Cap Research group cited that small companies with
earnings have gained 8.5% since the peak in the NASDAQ Composite in March of
this year. Companies with no earnings have lost an average 21.9% since March.
This is a dramatic difference from 1999 -- small companies with profits lost
9.6% versus those without profits gained 42.9%.
Strong contributors to performance include Reliastar Financial and Keebler
Foods, both of which have taken advantage of the improved environment of mergers
and acquisitions. Reliastar Financial Corporation is a comprehensive financial
services company offering investment, insurance, and banking products. We
believe the company was inexpensive, had strong business fundamentals and was
seeing better pricing for its insurance products. Mid year 2000, they were
acquired by Swiss Insurance Company, ING Corp.
Keebler is the second leading manufacturer of cookies and crackers in the
United States. We believe the company is inexpensive versus its peers and the
market at 13x next years earnings and appears to have successfully integrated
several strategic acquisitions and grown its brand, which have added to
financial performance of late. Consolidation in the food industry appears to be
accelerating and we believe Keebler is a target.
We believe the outlook for mid cap stocks remains favorable, particularly
in the value segment of the market. So far this year, mid capitalization stocks
have outperformed larger capitalization stocks and we continue to find
compelling valuation opportunities in the smaller end of the market. Mid cap
value stocks are posting strong operating results, it appears to us that merger
and acquisition activity is on the rise, and companies are seeking creative ways
to increase shareholder value. We continue to implement our value, bottom-up
stock selection philosophy which focuses on finding companies that we believe
are selling at a discount to intrinsic value, that have sound fundamentals, and
that are experiencing improving business conditions. We remain dedicated to our
strict value discipline and feel that this discipline will be rewarded over
time.
BOSTON PARTNERS SMALL CAP VALUE FUND II
Performance for the Boston Partners Small Cap Value Fund II over the past
fiscal year has been strong. The fund outdistanced the broad market index
(Russell 2000) by over 4% and the value index (Russell 2000 Value) by over 26%.
Strong stock selection has contributed to overall performance over the
year. The largest contributor to performance for the period was Provantage
Health Care. Provantage is a pharmacy benefit manager that was spun out of
Shopko Stores. We believe the company was inexpensive on a price to cash flow
basis, had very strong operating return on assets, and was seeing better pricing
margins on its prescription sales. Mid year 2000, Merck Medco, a division of
Merck Pharmaceuticals, recognized its incredible value and growth potential and
purchased Provantage.
An additional pharmacy benefit manager holding in the portfolio is Advanced
Paradigm. We believe Advanced Paradigm's stock is inexpensive when compared to
its cash flow, has sound business fundamentals, and is trading at a discount to
its competitors. It is in the process of purchasing PCS Healthcare from Rite
Aid, and is poised to become the largest independent pharmacy benefit manager,
which we believe should allow for tremendous growth over the next few years.
We continue to observe a historic valuation disparity between larger
capitalization stocks and smaller capitalization stocks. We believe that when
such a large valuation disparity exists between market segments, merger and
acquisition activity acts as a catalyst to narrow the disparity. We believe this
disparity of valuation offers exceptional opportunity in the small and mid
capitalization segments of the market. Smaller cap stocks seem to be inexpensive
on both a relative and absolute basis considering the risk that has been priced
into this segment. Currently, 24% of small cap companies are selling at or below
10 times trailing earnings. It appears that consolidation among smaller stocks
continues at a rapid rate as the corporate sector has found a bottom for prices
in smaller cap value strategies. Year-to-date, the Boston Partners Small Cap
Value Fund II has had fourteen securities involved in merger and acquisition
activity.
3
<PAGE>
BOSTON PARTNERS LONG/SHORT EQUITY FUND
In July 2000, we changed the name of the Boston Partners Market Neutral
Fund to the Boston Partners Long/Short Equity Fund. The reason for this change
was to better describe the nature of investment strategy of the fund.
The entire market environment as well as the strong market environment for
value managers over the past fiscal year has been well documented above. Like
all of Boston Partners' portfolios, the Long/Short Equity Fund is based on a
value philosophy and process. In general, we purchase stocks that we believe are
undervalued with sound business fundamentals and positive business momentum. We
will sell short stocks that we believe are overvalued with deteriorating
business fundamentals and declining business trends.
For the first six months ended February 29, 2000, we believe the theme that
emerged was not growth versus value, but technology versus everything else. The
bifurcation in the market between technology and all other companies reached
astronomical levels. In general we were purchasing value stocks and selling
short growth stocks. This process, while fundamentally solid, proved futile.
Since March 2000, many of the "new economy" stocks that were priced for
perfection have collapsed in the wake of their failure to live up to very lofty
expectations. Our most recent performance highlights the importance of solid
stock selection in an environment where higher quality companies with stable
earnings have been rewarded. In the last six months, the abundance of overvalued
companies, has provided a favorable market for our short selling capabilities,
but the majority of performance over the period came from our long holdings.
Total return for the long and short holdings of the Long/Short Equity Fund is as
follows
RETURNS FOR THE SIX MONTHS ENDED AUGUST 31, 2000
------------------------------------------------
Long Holdings 21.78%
Short Holdings 6.89%
Total Return 31.95%
Long holdings that contributed to performance include Swift Energy, Tower
Semiconductor, and Caremark RX Inc. Short holdings that have contributed to
performance include Lernout and Hauspie Speech Products, Lyondell Chemical Co.,
and Astec Industries, Inc.
If, as we expect, the market continues its shift from highly speculative
stocks to the more rational fundamentally strong companies, the Boston Partners
Long/Short Equity Fund is poised to take advantage of this adjustment.
BOSTON PARTNERS BOND FUND
Over the past fiscal year, Boston Partners approach of remaining duration
and yield curve neutral (+/-5% at all times), and using corporates and mortgages
to "outyield the Lehman Aggregate" has proven quite frustrating. Corporates
including high yield, mortgages, etc., has lagged Treasuries as a flight to
quality has increased the yield premium on corporates and mortgages. Even with
this market environment, Boston Partners Bond Fund has performed very well.
For the fiscal year ending August 31, 2000, the Boston Partners Bond Fund
returned 8.01% versus a 7.56% increase for the Lehman Aggregate Index. Strong
bond selection in the mortgage sector as well as investments in Treasury
Inflation Protected Securities (TIPS) added basis points over the year.
Additionally, an underweight in long corporate bonds helped performance since
March, as rising rates, an abundance of supply, and earnings pressures have hurt
these securities.
The bond market extended its year 2000 gains into August. Weaker employment
statistics, other signs of slowing economic growth and good productivity numbers
helped the market. As expected, the Federal Reserve left the Federal Funds rate
unchanged at its August meeting. It now appears unlikely that the FED will raise
rates again this year.
We believe 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 tight risk controls, as we believe it is the most consistent way
to add value over time.
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 REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Large Cap Value Fund -
Institutional Class S&P 500 Stock Index
1/2/97 $10000.00 $10000.0
2/28/97 10620.00 10707.9
5/31/97 11360.00 11543.4
8/31/97 12460.00 12291.4
11/30/97 12810.00 13112.2
2/28/98 13786.10 14458.1
5/31/98 13828.30 15087.8
8/31/98 11185.30 13287.7
11/30/98 12728.80 16215.5
2/28/99 12383.00 17310.8
5/31/99 13678.00 18258.6
8/31/99 13100.10 18577.3
11/30/99 13282.00 19596.5
2/29/00 11901.90 19336.5
5/31/00 13881.70 20166.6
8/31/00 14671.40 19079.1
Past performance is not predictive of future performance
Large Cap Value Fund--Institutional Class $14,671
S&P 500 Stock Index $19,079
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Large Cap Value Fund -- Institutional Class 11.99% 46.71%
S&P 500 Stock Index 2.70% 90.79%
--------------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on January 2, 1997 (inception) and reflects 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 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, 2000.
5
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Large Cap Value Investor Class (1)(2) vs. S&P 500 Stock Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Large Cap Value Fund -
Investor Class S&P 500 Stock Index
1/16/97 $10000.00 $10000.00
2/28/97 10411.80 10299.70
5/31/97 11127.50 11103.40
8/31/97 12205.90 11822.90
11/30/97 12549.00 12612.40
2/28/98 13499.50 13907.00
5/31/98 13550.70 14512.70
8/31/98 10951.10 12781.20
11/30/98 12455.60 15597.40
2/28/99 12113.70 16650.90
5/31/99 13366.50 17562.60
8/31/99 12797.10 17869.20
11/30/99 12962.70 18849.50
2/29/00 11601.90 18599.50
5/31/00 13533.70 19397.90
8/31/00 14291.00 18351.80
Past performance is not predictive of future performance
Large Cap Value Fund--Investor Class $14,291
S&P 500 Stock Index $18,352
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Large Cap Value Fund -- Investor Class 11.67% 42.91%
S&P 500 Stock Index 2.70% 83.52%
---------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on January 16, 1997 (inception) and reflects 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 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, 2000.
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 REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Mid Cap Value Fund -
Institutional Class Russell 2500 Index
6/2/97 $10000.00 $10000.00
8/31/97 11010.00 11172.10
11/30/97 11250.00 11419.50
2/28/98 12638.70 12289.10
5/31/98 12871.80 12279.80
8/31/98 9608.30 9290.50
11/30/98 10713.00 11013.90
2/28/99 10568.90 10895.30
5/31/99 11694.70 12312.40
8/31/99 11633.90 12300.00
11/31/99 10802.20 13081.70
2/29/00 9762.10 16213.30
5/31/00 11378.80 14381.20
8/31/00 12007.00 13649.30
Past performance is not predictive of future performance
Mid Cap Value Fund--Institutional Class $12,006
S&P 500 Stock Index $13,649
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Mid Cap Value Fund -- Institutional Class 3.21% 20.07%
Russell 2500 Index 10.97% 36.49%
-----------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on June 2, 1997 (inception) and reflects 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 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, 2000.
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 REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Mid Cap Value Fund -
Investor Class Russell 2500 Index
6/2/97 $10000.0 $10000.0
8/31/97 11010.0 11099.0
11/30/97 11240.0 11669.8
2/28/98 12632.3 12638.3
5/31/98 12856.6 12837.1
8/31/98 9604.2 10091.7
11/30/98 10695.2 11518.9
2/28/99 10552.6 10942.2
5/31/99 11664.0 12247.9
8/31/99 11602.8 11954.6
11/31/99 10756.5 11653.4
2/29/00 9727.5 11749.3
5/31/00 11329.8 12586.3
8/31/00 11939.8 13481.8
Past performance is not predictive of future performance
Mid Cap Value Fund--Investor Class $11,940
Russell 2500 Index $13,649
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Mid Cap Value Fund -- Investor Class 2.90% 19.40%
Russell 2500 Index 10.97% 36.49%
----------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on June 2, 1997 (inception) and reflects 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 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, 2000.
8
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
SMALL CAP VALUE FUND II
FORMERLY THE "MICRO CAP VALUE FUND"
Comparison of Change in Value of $10,000 investment in
Boston Partners Small Cap Value Institutional Class (1)(2)
vs. CRSP 9-10 Index and Russell 2000 Value Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Small Cap Value Fund -
Institutional Class CRSP 9-10 Index Russell 2000 Value Index
7/1/98 $10000.00 $10000.00 $10000.00
8/31/98 7620.00 7360.50 7773.62
11/30/98 7930.00 8574.23 8685.93
2/28/99 7640.00 8659.33 8157.32
5/31/99 8670.00 9480.77 9099.22
8/31/99 8670.00 9780.55 8868.24
11/30/99 8450.00 10353.90 8561.35
2/29/00 8713.79 14130.50 9118.02
5/31/00 9854.28 11455.70 9073.93
8/31/00 11395.00 12886.90 10081.20
Past performance is not predictive of future performance
Small Cap Value Fund--Institutional Class $11,395
CRSP 9-10 Index $12,887
Russell 2000 Value Index $10,081
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Small Cap Value Fund -- Institutional Class 31.43% 13.95%
CRSP 9-10 Index 31.76% 28.87%
Russell 2000 Value Index 13.68% 0.81%
-----------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on July 1, 1998 (inception) and reflects 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 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. In the future, we will compare the Fund's performance only to the
Russell 2000 Value Index because we believe it is a more appropriate
benchmark to compare to the Fund than the CRSP 9-10 Index.
(3) Aggregate return for the period July 1, 1998 (commencement of operations)
through August 31, 2000.
9
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
SMALL CAP VALUE FUND II
FORMERLY THE "MICRO CAP VALUE FUND"
Comparison of Change in Value of $10,000 investment in
Boston Partners Small Cap Value Investor Class (1)(2)
vs. CRSP 9-10 Index and Russell 2000 Value Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Small Cap Value Fund -
Investor Class CRSP 9-10 Index Russell 2000 Value Index
7/1/98 $10000 $10000.00 $10000.00
8/31/98 7630 7360.50 7773.62
11/30/98 7940 8574.23 8685.93
2/28/99 7640 8659.33 8157.32
5/31/99 8660 9480.77 9099.22
8/31/99 8650 9780.55 8868.24
11/30/99 8440 10353.90 8561.35
2/29/00 8700 14130.50 9118.02
5/31/00 9830 11445.70 9073.93
8/31/00 11360 12886.90 10081.20
Past performance is not predictive of future performance
Small Cap Value Fund--Investor Class $11,360
CRSP 9-10 Index $12,887
Russell 2000 Value Index $10,081
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Small Cap Value Fund -- Investor Class 31.33% 13.60%
CRSP 9-10 Index 31.76% 28.87%
Russell 2000 Value Index 13.68% 0.81%
------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on July 1, 1998 (inception) and reflects 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 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. In the future, we will compare the Fund's performance only to the
Russell 2000 Value Index because we believe it is a more appropriate
benchmark to compare to the Fund than the CRSP 9-10 Index.
(3) Aggregate return for the period July 1, 1998 (commencement of operations)
through August 31, 2000.
10
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
Comparison of Change in Value of $10,000 investment in
Boston Partners Long/Short Equity Fund Institutional Class (1)(2)
vs. Salomon Brothers 30 Day T-Bill Aggregate
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Long/Short Equity Fund - Salomon Brothers 30
Institutional Class Day T-Bill Aggregate
11/17/98 $10000.00 $10000.00
11/30/98 9580.00 10020.00
2/28/99 9080.00 10127.60
5/31/99 9500.00 10239.40
8/31/99 9460.00 10350.40
11/30/99 8100.00 10464.70
2/29/00 8153.76 10591.80
5/31/00 10311.80 10738.60
8/31/00 10759.70 10882.10
Past performance is not predictive of future performance
Long/Short Equity Fund--Institutional Class $10,760
Salomon Brothers 30 Day T-Bill Aggregate $10,882
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Long/Short Equity Fund -- Institutional Class 13.74% 7.60%
Salomon Brothers 30 Day T-Bill Aggregate 5.14% 8.82%
----------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on November 17, 1998 (inception) and reflects 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 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, 2000.
11
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
Comparison of Change in Value of $10,000 investment in
Boston Partners Long/Short Equity Fund Investor Class (1)(2)
vs. Salomon Brothers 30 Day T-Bill Aggregate
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Long/Short Equity Fund - Salomon Brothers 30
Investor Class Day T-Bill Aggregate
11/17/98 $10000.00 $10000.00
11/30/98 9580.00 10020.00
2/28/99 9090.00 10127.60
5/31/99 9520.00 10239.40
8/31/99 9430.00 10350.40
11/30/99 8070.00 10464.70
2/29/00 8147.17 10591.80
5/31/00 10290.60 10738.60
8/31/00 10737.60 10882.10
Past performance is not predictive of future performance
Long/Short Equity Fund--Institutional Class $10,738
Salomon Brothers 30 Day T-Bill Aggregate $10,882
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Long/Short Equity Fund -- Investor Class 13.87% 7.38%
Salomon Brothers 30 Day T-Bill Aggregate 5.14% 8.82%
------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on November 17, 1998 (inception) and reflects 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 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, 2000.
12
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
BOND FUND
Comparison of Change in Value of $10,000 investment in
Boston Partners Bond Fund Institutional Class (1)(2)
vs. Lehman Brothers Aggregate
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Bond Fund -
Institutional Class Lehman Brothers Aggregate
12/30/97 $10000 $10000
2/28/98 10163.7 10119.9
5/31/98 10393.5 10304.1
8/31/98 10479.3 10583.2
11/30/98 10733.4 10834.9
2/28/99 10654.5 10753
5/31/99 10720.4 10751.3
8/31/99 10523.4 10666.5
11/30/99 10640.9 10829.1
2/29/00 10666.7 10871.5
5/31/00 10812.3 10977.6
8/31/00 11366.8 11471.9
Past performance is not predictive of future performance
Bond Fund--Institutional Class $11,367
Lehman Brothers Aggregate $11,472
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Bond Fund -- Institutional Class 8.01% 13.67%
Lehman Brothers Aggregate 7.55% 14.72%
------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on December 30, 1997 (inception) and reflects 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 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, 2000.
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 REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Bond Fund -
Investor Class Lehman Brothers Aggregate
12/30/97 $10000 $10000
2/28/98 10158.3 10119.9
5/31/98 10377.9 10304.1
8/31/98 10462.7 10583.2
11/30/98 10703 10834.9
2/28/99 10624.2 10753
5/31/99 10682.6 10751.3
8/31/99 10480.8 10666.5
11/30/99 10591.1 10829.1
2/29/00 10610.7 10871.5
5/31/00 10760.1 10977.6
8/31/00 11290 11471.9
Past performance is not predictive of future performance
Bond Fund--Investor Class $11,290
Lehman Brothers Aggregate $11,472
Total Returns
One Year Ended Average
August 31, 2000 Annual(3)
--------------- ---------
Bond Fund -- Investor Class 7.72% 12.90%
Lehman Brothers Aggregate 7.55% 14.72%
-----------------------
(1) The chart assumes a hypothetical $10,000 initial investment in the Fund
made on December 30, 1997 (inception) and reflects 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 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, 2000.
14
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- -----------
COMMON STOCK--100.1%
AEROSPACE/DEFENSE--2.6%
Boeing Co. (The) ............... 6,200 $ 332,475
Honeywell International, Inc. .. 8,800 339,350
Lockheed Martin Corp. .......... 14,200 402,925
-----------
1,074,750
-----------
BANKS & SAVINGS & LOANS--0.7%
Toronto-Dominion Bank (The) .... 9,900 282,769
-----------
BUSINESS & PUBLIC SERVICES--0.9%
Pitney Bowes, Inc. ............. 10,200 372,937
-----------
CHEMICALS--3.0%
E.I. du Pont de Nemours and Co. 12,900 578,887
Praxair, Inc. .................. 15,400 681,450
-----------
1,260,337
-----------
COMPUTERS, SOFTWARE & SERVICES--5.4%
Electronic Data Systems Corp. .. 3,500 174,344
International Business Machines
Corp. ........................ 3,000 396,000
NCR Corp.* ..................... 15,800 637,925
Parametric Technology Corp.* ... 48,400 647,350
Synopsys, Inc.* ................ 10,700 396,569
-----------
2,252,188
-----------
CONSTRUCTION & BUILDING MATERIALS--0.7%
Ingersoll-Rand Co. ............. 6,400 291,600
-----------
DIVERSIFIED--4.1%
Illinois Tool Works, Inc. ...... 14,100 790,481
Minnesota Mining and
Manufacturing Co. ............ 9,600 892,800
-----------
1,683,281
-----------
ELECTRIC UTILITIES--3.7%
Niagara Mohawk Holdings, Inc.* . 17,500 225,312
PECO Energy Co. ................ 12,400 597,525
Pinnacle West Capital Corp. .... 11,600 477,775
Unicom Corp. ................... 5,400 246,712
-----------
1,547,324
-----------
NUMBER
OF SHARES VALUE
--------- -----------
ELECTRONIC COMP. & INSTRUMENTS--4.3%
Agilent Technologies, Inc.* .... 7,200 $ 434,250
Cypress Semiconductor Corp.* ... 5,700 281,794
Emerson Electric Co. ........... 6,000 397,125
LSI Logic Corp.* ............... 6,000 215,625
Micron Technology, Inc.* ....... 2,500 204,375
National Semiconductor Corp.* .. 5,600 249,200
-----------
1,782,369
-----------
ENGINEERING & CONSTRUCTION--0.9%
Fluor Corp. .................... 12,500 374,219
-----------
ENTERTAINMENT--0.3%
Park Place Entertainment Corp.* 8,400 123,375
-----------
FINANCIAL SERVICES--12.7%
Citigroup, Inc. ................ 18,966 1,107,179
Countrywide Credit
Industries, Inc. ............. 26,700 1,011,262
Fannie Mae ..................... 23,500 1,263,125
Freddie Mac .................... 24,000 1,011,000
J.P. Morgan & Co., Inc. ........ 2,400 401,250
PNC Financial Services Group ... 3,500 206,281
USA Education, Inc. ............ 6,500 254,719
-----------
5,254,816
-----------
INSURANCE--12.8%
Ace Ltd. ....................... 43,995 1,545,324
Allmerica Financial Corp. ...... 8,080 491,870
Berkshire Hathaway, Inc.,
Class B* ..................... 100 191,300
CIGNA Corp. .................... 6,700 651,575
Safeco Corp. ................... 8,900 234,181
St. Paul Companies, Inc. (The) . 11,700 557,212
Sun Life Financial Services of
Canada* ...................... 29,700 625,556
UnumProvident Corp.* ........... 20,500 444,594
XL Capital Ltd., Class A ....... 7,900 544,606
-----------
5,286,218
-----------
MACHINERY & ENGINEERING--1.4%
Deere & Co. .................... 17,600 579,700
-----------
MEDICAL EQUIPMENT--1.2%
Boston Scientific Corp.* ....... 25,100 475,331
-----------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- -----------
MEDICAL SUPPLIES--4.3%
Baxter International, Inc. ..... 13,000 $ 1,082,250
Kimberly-Clark Corp. ........... 11,700 684,450
-----------
1,766,700
-----------
METALS & MINING--1.0%
Alcan Aluminium Ltd. ........... 12,500 410,156
-----------
OIL & GAS EXPLORATION--6.6%
Burlington Resources, Inc. ..... 22,700 892,394
El Paso Energy Corp. ........... 14,400 838,800
ENI SPA ADR* ................... 3,400 198,688
Kerr-McGee Corp. ............... 6,309 398,650
Petroleo Brasileiro SA ADR* .... 11,900 378,569
-----------
2,707,101
-----------
OIL SERVICES--11.1%
Coastal Corp. (The) ............ 6,500 447,688
Conoco, Inc., Class B .......... 39,363 1,028,358
Exxon Mobil Corp. .............. 7,200 587,700
Halliburton Co. ................ 8,200 434,600
Occidental Petroleum Corp. ..... 26,800 579,550
Tosco Corp. .................... 24,005 732,153
USX-Marathon Group ............. 28,600 784,713
-----------
4,594,762
-----------
PAPER & FORESTRY PRODUCTS--0.4%
Abitibi-Consolidated, Inc. ..... 13,500 151,031
-----------
PHARMACEUTICALS--3.3%
American Home Products Corp. ... 6,700 363,056
Aventis SA ADR ................. 2,700 201,825
Bristol-Myers Squibb Co. ....... 15,300 810,900
-----------
1,375,781
-----------
PRINTING SERVICES--0.7%
Lexmark International, Inc.* ... 4,100 278,031
-----------
NUMBER
OF SHARES VALUE
--------- -----------
PUBLISHING & INFORMATION SERVICES--3.1%
Harcourt General, Inc. ......... 13,100 $ 776,994
Reader's Digest Association, Inc.,
Class A ...................... 12,700 488,950
-----------
1,265,944
-----------
REAL ESTATE--2.3%
Avalonbay Communities,
Inc. (REIT) .................. 4,100 183,219
Equity Office Properties Trust . 5,600 161,700
Equity Residential
Properties Trust ............. 4,200 201,600
Mack-Cali Realty Corp. ......... 3,700 96,894
MeriStar Hospitality Corp. ..... 4,030 89,164
Trizec Hahn Corp. .............. 14,700 232,444
-----------
965,021
-----------
RETAIL --2.0%
Circuit City Group ............. 8,100 210,094
Gap, Inc. (The) ................ 15,000 336,563
Office Depot, Inc.* ............ 38,650 282,628
-----------
829,285
-----------
TELECOMMUNICATIONS & EQUIPMENT--8.0%
3Com Corp.* .................... 52,200 867,825
AT&T Corp. ..................... 10,477 330,026
BellSouth Corp. ................ 13,300 496,256
Palm, Inc.* .................... 4,980 219,120
SBC Communications, Inc. ....... 23,075 963,381
Verizon Communications ......... 9,442 411,907
-----------
3,288,515
-----------
TOBACCO--2.1%
Loews Corp. .................... 4,450 360,172
UST, Inc. ...................... 24,300 525,488
-----------
885,660
-----------
TRANSPORTATION--0.5%
CSX Corp. ...................... 8,600 205,325
-----------
TOTAL COMMON STOCK
(Cost $38,215,154) ......... 41,364,526
-----------
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LARGE CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 2000
PAR
(000) Value
----- -----------
SHORT-TERM INVESTMENT--0.6%
Wilmington Fund Cash Sweep
6.230% 09/01/00 .............. $262 $ 262,412
-----------
TOTAL SHORT-TERM INVESTMENT
(Cost $262,412) ............ 262,412
-----------
TOTAL INVESTMENTS--100.7%
(Cost $38,477,566) ............. 41,626,938
-----------
LIABILITIES IN EXCESS OF
OTHER ASSETS--(0.7%) ........... (315,799)
-----------
NET ASSETS--100.0% ................ $41,311,139
===========
------------
* Non-income producing.
ADR-- American Depository Receipt.
REIT-- Real Estate Investment Trust.
The accompanying notes are an integral part of the financial statements.
17
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
MID CAP VALUE FUND
Portfolio of Investments
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ------------
COMMON STOCK--98.7%
AEROSPACE/DEFENSE--3.0%
B.F. Goodrich Co. (The) ........ 41,900 $ 1,710,044
Litton Industries, Inc.* ....... 53,456 2,956,785
------------
4,666,829
------------
AIR TRANSPORT--1.2%
Northwest Airlines Corp.* ...... 57,700 1,806,731
------------
BANKS & SAVINGS & LOANS--1.5%
Astoria Financial Corp. ........ 31,710 1,113,814
Golden State Bancorp., Inc. .... 55,700 1,120,962
------------
2,234,776
------------
BUSINESS & PUBLIC SERVICES--0.5%
Manpower, Inc. ................. 20,600 745,462
------------
CHEMICALS--2.3%
Ashland, Inc. .................. 40,800 1,438,200
Eastman Chemical Co. ........... 48,800 2,104,500
------------
3,542,700
------------
COMMUNICATIONS & MEDIA--1.3%
Chris-Craft Industries, Inc.* .. 11,683 914,195
True North Communications, Inc. 24,500 1,136,187
------------
2,050,382
------------
COMPUTERS, SOFTWARE & SERVICES--4.7%
Diebold, Inc. .................. 74,200 2,096,150
NCR Corp.* ..................... 51,800 2,091,425
Network Associates, Inc.* ...... 120,700 3,123,112
------------
7,310,687
------------
CONSTRUCTION & BUILDING MATERIALS--6.4%
D.R. Horton, Inc. .............. 83,800 1,644,575
Ingersoll-Rand Co. ............. 34,300 1,562,794
Lafarge Corp. .................. 27,500 670,312
Martin Marietta Materials, Inc. 39,500 1,580,000
Southdown, Inc. ................ 70,800 4,442,700
------------
9,900,381
------------
DATA PROCESSING & REPRODUCTION--0.7%
Informix Corp.* ................ 187,900 1,150,887
------------
DISTRIBUTION--0.5%
Ingram Micro, Inc., Class A* ... 48,900 $ 733,500
------------
DIVERSIFIED--1.5%
ITT Industries, Inc. ........... 69,800 2,347,025
------------
ELECTRIC UTILITIES--6.1%
Energy East Corp. .............. 139,600 3,167,175
GPU, Inc. ...................... 52,400 1,604,750
Niagara Mohawk Holdings, Inc.* . 213,300 2,746,237
Pinnacle West Capital Corp. .... 48,300 1,989,356
------------
9,507,518
------------
ELECTRONIC COMP. & INSTRUMENTS--0.3%
Sensormatic Electronics Corp.* . 25,200 418,950
------------
ENGINEERING & CONSTRUCTION--0.5%
Fluor Corp. .................... 28,200 844,237
------------
ENTERTAINMENT--0.7%
Brunswick Corp. ................ 60,100 1,126,875
------------
FERTILIZERS--0.4%
IMC Global, Inc. ............... 44,000 646,250
------------
FINANCIAL SERVICES--9.0%
A.G. Edwards, Inc. ............. 67,000 3,484,000
Countrywide Credit
Industries, Inc. ............. 78,700 2,980,762
Donaldson, Lufkin &
Jenrette, Inc. ............... 21,000 1,858,500
Dun & Bradstreet Corp. (The) ... 27,800 917,400
H&R Block, Inc. ................ 103,800 3,723,825
Legg Mason, Inc. ............... 18,500 975,875
------------
13,940,362
------------
FOOD & BEVERAGE--3.2%
Flowers Industries, Inc. ....... 66,300 1,442,025
Keebler Foods Co. .............. 76,500 3,504,656
------------
4,946,681
------------
HEALTH CARE--2.2%
Health Management Associates, Inc.,
Class A* ..................... 138,500 2,259,281
Oxford Health Plans, Inc.* ..... 38,600 1,177,300
------------
3,436,581
------------
The accompanying notes are an integral part of the financial statements.
18
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ------------
INSURANCE--9.8%
Allmerica Financial Corp. ...... 68,000 $ 4,139,500
Everest Re Group Ltd. .......... 21,392 861,028
Jefferson-Pilot Corp. .......... 26,200 1,734,112
Lincoln National Corp. ......... 45,400 2,451,600
PartnerRe Ltd. ................. 65,400 2,742,712
SAFECO Corp. ................... 49,900 1,312,994
UnumProvident Corp. ............ 84,600 1,834,763
------------
15,076,709
------------
MANUFACTURING--0.6%
Viasystems Group, Inc.* ........ 52,400 864,600
------------
MEDICAL SUPPLIES--4.0%
C.R. Bard, Inc. ................ 44,300 2,162,394
Nycomed Amersham PLC ADR ....... 54,200 2,442,388
Sybron International Corp.* .... 70,600 1,606,150
------------
6,210,932
------------
MULTI-INDUSTRY--6.0%
Dexter Corp. ................... 42,100 2,489,163
Pall Corp. ..................... 101,500 2,169,563
Viad Corp. ..................... 156,430 4,585,354
------------
9,244,080
------------
OIL & GAS EXPLORATION--5.2%
Amerada Hess Corp. ............. 16,900 1,156,594
Canadian Occidental
Petroleum Ltd. ............... 44,700 1,176,169
Devon Energy Corp. ............. 50,002 2,928,242
Ocean Energy, Inc.* ............ 72,600 1,102,613
Talisman Energy, Inc.* ......... 47,500 1,600,156
------------
7,963,774
------------
PACKAGING & CONTAINERS--2.7%
Pactiv Corp.* .................. 152,300 1,675,300
Pechiney SA ADR ................ 108,500 2,522,625
------------
4,197,925
------------
PAPER & FORESTRY PRODUCTS--1.5%
Bowater, Inc. .................. 25,400 1,304,925
Georgia-Pacific Group .......... 35,600 952,300
------------
2,257,225
------------
NUMBER
OF SHARES VALUE
--------- ------------
PHARMACEUTICALS--1.8%
Mylan Laboratories, Inc. ....... 37,200 $ 988,125
Watson Pharmaceuticals, Inc.* .. 27,900 1,721,081
------------
2,709,206
------------
PUBLISHING & INFORMATION SERVICES--7.9%
Harcourt General, Inc. ......... 102,700 6,091,394
Reader's Digest Association, Inc.,
Class A ...................... 99,900 3,846,150
Valassis Communications, Inc.* . 79,300 2,289,788
------------
12,227,332
------------
RETAIL--3.1%
Blockbuster, Inc., Class A ..... 74,800 701,250
J. C. Penney Co., Inc. ......... 57,100 799,400
Ross Stores, Inc. .............. 94,700 1,432,338
ShopKo Stores, Inc.* ........... 39,394 450,569
Venator Group, Inc.* ........... 105,600 1,478,400
------------
4,861,957
------------
SHIPBUILDING--1.2%
Newport News Shipbuilding, Inc. 42,200 1,793,500
------------
TELECOMMUNICATIONS & EQUIPMENT--4.6%
3Com Corp.* .................... 209,700 3,486,263
Citizens Communications Co.* ... 63,900 1,042,369
ECI Telecom Ltd. ............... 25,500 800,063
Harris Corp. ................... 61,500 1,848,844
------------
7,177,539
------------
TEXTILE & APPAREL--0.5%
Tommy Hilfiger Corp.* .......... 72,500 788,438
------------
TOYS--1.7%
Hasbro, Inc. ................... 108,100 1,330,981
Mattel, Inc. ................... 125,900 1,243,263
------------
2,574,244
------------
WHOLESALE-WAREHOUSE--2.1%
BJ's Wholesale Club, Inc.* ..... 97,422 3,300,170
------------
TOTAL COMMON STOCK
(Cost $145,552,739) ........ 152,604,445
------------
The accompanying notes are an integral part of the financial statements.
19
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
MID CAP VALUE FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 2000
PAR
(000) VALUE
----- ------------
REPURCHASE AGREEMENTS--5.5%
PNC Capital Markets (Agreement
dated 08/31/00 to be
repurchased at $8,501,499,
collateralized by U.S. Treasury
Notes 7.875% due 11/15/04
Market Value $8,531,805)
6.350% 09/01/00 .............. $8,500 $ 8,500,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $8,500,000) .......... 8,500,000
------------
SHORT TERM INVESTMENTS--0.1%
Wilmington Fund Cash Sweep
6.230% 09/01/00 .............. 145 144,513
------------
TOTAL SHORT TERM INVESTMENTS
(Cost $144,513) ............ 144,513
------------
TOTAL INVESTMENTS--104.3%
(Cost $154,197,252) ............ 161,248,958
------------
LIABILITIES IN EXCESS OF
OTHER ASSETS--(4.3%) ........... (6,623,276)
------------
NET ASSETS--100.0% ................ $154,625,682
============
-----------
* Non-income producing.
ADR-- American Depository Receipt.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
SMALL CAP VALUE FUND II
FORMERLY THE "MICRO CAP VALUE FUND"
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK--92.2%
AEROSPACE/DEFENSE--1.7%
DONCASTERS PLC ADR* ............ 1,000 $ 19,250
Teledyne Technologies, Inc.* ... 1,000 20,125
----------
39,375
----------
AGRICULTURE--1.2%
Agribrands International, Inc.* 700 27,825
----------
AIR TRANSPORT--0.5%
Midwest Express Holdings, Inc.* 500 11,312
----------
AUTOMOTIVE--2.2%
Dollar Thrifty Automotive
Group, Inc.* ................. 1,300 29,412
Monaco Coach Corp.* ............ 500 8,750
Sonic Automotive, Inc.* ........ 1,400 14,787
----------
52,949
----------
BANKS & SAVINGS & LOANS--1.6%
IndyMac Bancorp., Inc.* ........ 1,900 32,062
Local Financial Corp.* ......... 600 6,150
----------
38,212
----------
BUSINESS & PUBLIC SERVICES--9.2%
ACNielsen Corp.* ............... 600 14,437
AHL Services, Inc.* ............ 900 7,481
American Management
Systems, Inc.* ............... 1,000 18,687
Brady Corp. .................... 300 8,681
Edgewater Technology, Inc.* .... 2,600 16,250
ITT Educational Services, Inc.* 600 13,800
Modis Professional
Services, Inc.* .............. 5,700 39,187
National Processing, Inc.* ..... 2,700 31,894
Staff Leasing, Inc.* ........... 2,200 8,800
Ventiv Health, Inc.* ........... 1,800 24,075
Wackenhut Corp., Class A* ...... 1,400 14,175
Wackenhut Corrections Corp.* ... 2,000 18,125
----------
215,592
----------
CHEMICALS--1.7%
Arch Chemicals, Inc. ........... 1,300 23,644
ChemFirst, Inc. ................ 400 9,225
Wellman, Inc. .................. 600 7,237
----------
40,106
----------
NUMBER
OF SHARES VALUE
--------- ----------
COMPUTERS, SOFTWARE & SERVICES--3.8%
CACI International, Inc.* ...... 1,000 $ 22,500
National Data Corp. ............ 600 17,625
Perot Systems Corp.* ........... 1,300 13,487
Quantum Corp.-Hard Disk Drive* . 2,100 20,475
Recoton Corp.* ................. 1,100 15,606
----------
89,693
----------
CONSTRUCTION & BUILDING MATERIALS--2.2%
Benjamin Moore & Co. ........... 200 5,200
Butler Manufacturing Co. ....... 800 17,750
Dal-Tile International, Inc.* .. 1,800 20,250
Granite Construction, Inc. ..... 400 9,100
----------
52,300
----------
CONSULTING SERVICES--2.0%
Charles River Associates, Inc.* 2,100 23,625
FTI Consulting, Inc.* .......... 600 5,662
Right Management
Consultants, Inc.* ........... 1,800 17,212
----------
46,499
----------
CONSUMER PRODUCTS & SERVICES--4.8%
Carey International, Inc.* ..... 700 12,688
Pittston Brink's Group ......... 3,200 49,800
Stewart Enterprises, Inc. ...... 10,000 31,875
Veterinary Centers of
America, Inc.* ............... 1,300 18,850
----------
113,213
----------
DISTRIBUTION--1.2%
Bell Microproducts, Inc.* ...... 500 16,625
Owens & Minor, Inc. ............ 800 12,250
----------
28,875
----------
ELECTRIC UTILITIES--1.8%
CMP Group, Inc. ................ 600 17,625
El Paso Electric Co.* .......... 1,800 24,188
----------
41,813
----------
ELECTRONICS--1.9%
CTS Corp. ...................... 300 15,394
Pioneer-Standard
Electronics, Inc. ............ 900 12,319
SpeedFam-IPEC, Inc.* ........... 900 16,763
----------
44,476
----------
The accompanying notes are an integral part of the financial statements.
21
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
SMALL CAP VALUE FUND II
FORMERLY THE "MICRO CAP VALUE FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
FINANCIAL SERVICES--4.4%
Advanta Corp., Class B ......... 1,800 $ 17,887
BKF Capital Group, Inc. ........ 1,200 23,400
Brookline Bancorp., Inc. ....... 600 7,088
FBR Asset Investment Corp. ..... 300 4,519
Federal Agricultural
Mortgage Corp.* .............. 1,600 27,000
John Nuveen Co. ................ 300 13,613
MicroFinancial, Inc. ........... 1,100 10,794
----------
104,301
----------
FOOD & BEVERAGE--0.4%
M&F Worldwide Corp.* ........... 1,600 8,700
----------
HEALTH & PERSONAL CARE--0.5%
Nature's Sunshine Products, Inc. 1,500 11,813
----------
HEALTHCARE--1.8%
Mid Atlantic Medical
Services, Inc.* .............. 700 11,288
National Dentex Corp.* ......... 300 5,100
Renal Care Group, Inc.* ........ 600 12,150
Sunquest Information
Systems, Inc.* ............... 1,000 13,125
----------
41,663
----------
INSURANCE--11.6%
AmerUs Life Holdings, Inc. ..... 900 22,219
Annuity and Life Re
(Holdings) Ltd. .............. 2,300 60,375
CNA Surety Corp. ............... 2,400 27,750
IPC Holdings Ltd. .............. 1,800 30,150
LandAmerica Financial Group, Inc. 400 10,175
Liberty Financial Companies, Inc. 1,000 23,625
MIIX Group, Inc. (The) ......... 1,000 8,063
Mutual Risk Management Ltd. .... 1,500 31,875
NYMAGIC, Inc. .................. 600 8,606
Penn-America Group, Inc. ....... 1,000 7,500
PXRE Group Ltd. ................ 1,000 13,625
RenaissanceRe Holdings Ltd. .... 400 19,150
W.R. Berkley Corp. ............. 400 10,600
----------
273,713
----------
MACHINERY & ENGINEERING--0.9%
Lindsay Manufacturing Co. ...... 600 10,950
Manitowoc Co., Inc. ............ 400 9,175
----------
20,125
----------
NUMBER
OF SHARES VALUE
--------- ----------
MANUFACTURING--4.1%
CLARCOR, Inc. .................. 600 $ 12,375
Dan River, Inc., Class A* ...... 1,100 4,881
Exponent, Inc.* ................ 1,100 9,556
Griffon Corp.* ................. 1,500 11,625
LSI Industries, Inc. ........... 800 15,900
Quixote Corp. .................. 1,300 20,800
Toro Co. (The) ................. 700 21,175
----------
96,312
----------
MEDICAL SUPPLIES--3.8%
Lincare Holdings, Inc.* ........ 600 15,300
Sola International, Inc.* ...... 8,800 61,600
Wesley Jessen VisionCare, Inc.* 300 11,288
----------
88,188
----------
OIL & GAS EXPLORATION--2.4%
Canadian 88 Energy Corp.* ...... 4,800 11,100
Gulf Indonesia Resources Ltd.* . 2,400 24,000
Pennaco Energy, Inc.* .......... 1,400 22,050
----------
57,150
----------
OIL SERVICES--0.9%
Evergreen Resources, Inc.* ..... 700 20,431
----------
PACKAGING & CONTAINERS--1.6%
Ivex Packaging Corp.* .......... 1,300 14,300
Tupperware Corp. ............... 1,200 24,225
----------
38,525
----------
PHARMACEUTICALS--3.4%
Advance Paradigm, Inc.* ........ 1,500 39,938
AmeriSource Health Corp.,
Class A* ..................... 400 13,900
Perrigo Co.* ................... 3,400 25,181
----------
79,019
----------
PUBLISHING & INFORMATION SERVICES--1.5%
Pulitzer, Inc. ................. 300 12,919
R.H. Donnelley Corp.* .......... 1,100 23,100
----------
36,019
----------
The accompanying notes are an integral part of the financial statements.
22
BOSTON PARTNERS FAMILY OF FUNDS
SMALL CAP VALUE FUND II
FORMERLY THE "MICRO CAP VALUE FUND"
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
REAL ESTATE--5.0%
Capital Automotive REIT ........ 1,200 $ 16,650
Insignia Financial Group, Inc.* 2,300 21,706
LNR Property Corp. ............. 700 14,875
Redwood Trust, Inc. ............ 2,100 33,206
Trammell Crow Co.* ............. 2,300 31,913
----------
118,350
----------
RETAIL--1.3%
Barnes & Noble, Inc.* .......... 700 12,119
Rex Stores Corp.* .............. 1,000 17,875
----------
29,994
----------
RETAIL-SPECIALTY APPAREL STORES--6.2%
Finish Line, Inc. (The),
Class A* ..................... 1,900 15,081
Footstar, Inc.* ................ 300 8,925
InterTAN, Inc.* ................ 1,200 16,650
J. Jill Group, Inc.* ........... 3,900 36,075
Ross Stores, Inc. .............. 400 6,050
School Specialty, Inc.* ........ 800 14,450
Wilsons, The Leather
Experts, Inc.* ............... 2,400 48,900
----------
146,131
----------
TELECOMMUNICATIONS--0.8%
Belden, Inc. ................... 700 18,288
----------
TEXTILES & APPAREL--1.7%
Mueller Industries, Inc.* ...... 300 9,469
Nautica Enterprises, Inc.* ..... 2,500 29,531
----------
39,000
----------
TOBACCO--1.2%
Universal Corp. ................ 1,100 28,463
----------
NUMBER
OF SHARES VALUE
--------- ----------
TOYS--0.8%
JAKKS Pacific, Inc.* ........... 1,000 $ 17,750
----------
TRANSPORTATION--2.1%
Fritz Companies, Inc.* ......... 1,700 25,181
Knightsbridge Tankers Ltd. ..... 400 9,600
Xtra Corp.* .................... 325 14,422
----------
49,203
----------
TOTAL COMMON STOCK
(Cost $1,897,079) .......... 2,165,378
----------
PAR
(000)
-----
REPURCHASE AGREEMENTS--8.9%
PNC Capital Markets
(Agreement dated 08/31/00 to
be repurchased at $208,023,
collateralized by $208,250
U.S. Treasury Notes 7.500%
due 11/15/01)
4.050% 09/01/00 ..............$208,000 208,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $208,000) ............ 208,000
----------
SHORT-TERM INVESTMENTS--0.0%
Wilmington Fund Cash Sweep
6.230% 09/01/00 .............. 627 627
----------
TOTAL SHORT-TERM INVESTMENTS
(Cost $627) ................ 627
----------
TOTAL INVESTMENTS--101.1%
(Cost $2,105,706) .............. 2,374,005
----------
LIABILITIES IN EXCESS OF
OTHER ASSETS--(1.1%) ........... (26,334)
----------
NET ASSETS--100.0% ................ $2,347,671
==========
---------
* Non-income producing.
ADR-- American Depository Receipt.
REIT-- Real Estate Investment Trust.
The accompanying notes are an integral part of the financial statements.
23
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
LONG POSITIONS--97.8%
COMMON STOCK--96.8%
AEROSPACE/DEFENSE--4.9%
DONCASTERS PLC ADR* ........... 1,100 $ 21,175
Ducommun, Inc.* ................ 1,400 20,300
ECC International Corp.* ....... 3,900 15,356
The Fairchild Corp.* ........... 1,700 11,688
----------
68,519
----------
AGRICULTURE--0.9%
Agribrands International, Inc.* 300 11,925
----------
AIR TRANSPORT--1.1%
Northwest Airlines Corp. ....... 500 15,656
----------
BANKS & SAVINGS & LOANS--0.3%
Coastal Bancorp., Inc. ......... 200 3,713
----------
BROADCASTING & PUBLISHING--1.4%
Gray Communications
Systems, Inc. ................ 1,100 12,375
Fisher Companies, Inc. ......... 100 7,300
----------
19,675
----------
BUSINESS & PUBLIC SERVICES--4.4%
ITT Educational Services, Inc.* 300 6,900
Kroll-O'Gara Co.* .............. 1,700 8,713
Modis Professional
Services, Inc.* .............. 1,100 7,563
Strategic Distribution, Inc.* .. 5,600 10,850
TeleSpectrum Worldwide, Inc.* .. 1,700 2,975
Ventiv Health, Inc.* ........... 1,200 16,050
Wackenhut Corp., Class A* ...... 600 8,513
----------
61,564
----------
CABLE--0.8%
General Cable Corp. ............ 1,400 11,725
----------
CHEMICALS--4.8%
Airgas, Inc.* .................. 2,000 13,250
Arch Chemicals, Inc. ........... 700 12,731
ChemFirst, Inc. ................ 600 13,838
NUMBER
OF SHARES VALUE
--------- ----------
CHEMICALS--(CONTINUED)
Methanex Corp.* ................ 2,600 $ 15,600
Tetra Technologies, Inc.* ...... 800 10,900
----------
66,319
----------
COMPUTERS, SOFTWARE & SERVICES--6.6%
Adaptec, Inc.* ................. 500 12,250
Alphanet Solutions, Inc.* ...... 1,100 4,538
HMT Technology Corp.* .......... 2,900 7,159
Inprise Corp.* ................. 2,000 11,688
Komag, Inc.* ................... 2,900 7,794
Parametric Technology Corp.* ... 1,600 21,400
SS&C Technologies, Inc.* ....... 2,000 12,750
Synopsys, Inc.* ................ 400 14,825
----------
92,404
----------
CONSTRUCTION & HOUSING--1.1%
Benjamin Moore & Co. ........... 200 5,200
Foster Wheeler Corp. ........... 1,400 9,888
----------
15,088
----------
CONSULTING SERVICES--1.0%
Comdisco, Inc. ................. 600 14,400
----------
CONSUMER PRODUCTS & SERVICES--0.9%
Stewart Enterprises, Inc. ...... 4,000 12,750
----------
DIVERSIFIED--3.0%
ITT Industries, Inc. ........... 400 13,450
Ogden Corp.* ................... 800 13,900
Pittston Brink's Group ......... 900 14,006
----------
41,356
----------
ELECTRIC UTILITIES--1.2%
Alliant Energy Corp. ........... 400 11,700
Avista Corp. ................... 300 5,531
----------
17,231
----------
The accompanying notes are an integral part of the financial statements.
24
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
ELECTRONIC COMP. & INSTRUMENTS--6.4%
Blonder Tongue
Laboratories, Inc.* .......... 1,600 $ 10,400
BMC Industries, Inc. ........... 2,300 12,938
EDO Corp. ...................... 1,800 12,038
Fiberstars, Inc.* .............. 1,600 17,400
Input/Output, Inc.* ............ 1,500 13,500
Parker Hannifin Corp. .......... 400 13,925
PCD, Inc.* ..................... 1,100 8,800
----------
89,001
----------
ENERGY EQUIPMENT & SERVICES--1.4%
Ault, Inc.* .................... 1,200 9,600
Rentech, Inc.* ................. 5,200 10,075
----------
19,675
----------
ENGINE MANUFACTURING--1.4%
Woodward Governor Co. .......... 500 19,813
----------
ENGINEERING --1.4%
Corrpro Companies, Inc.* ....... 2,500 9,063
Exponent, Inc.* ................ 1,200 10,425
----------
19,488
----------
FINANCIAL SERVICES--2.0%
Advanta Corp., Class B ......... 1,000 9,938
London Pacific Group Ltd. ADR .. 900 18,169
----------
28,107
----------
HEALTH CARE--2.5%
Health Management Associates,
Inc., Class A* ............... 700 11,419
Triad Hospitals, Inc.* ......... 800 23,100
----------
34,519
----------
INDUSTRIAL GOODS & MATERIALS--1.2%
Flanders Corp.* ................ 3,300 8,869
NS Group, Inc.* ................ 400 7,050
----------
15,919
----------
NUMBER
OF SHARES VALUE
--------- ----------
INSURANCE--3.2%
Frontier Insurance Group, Inc.* 2,500 $ 781
Liberty Financial Companies, Inc. 600 14,175
UICI* .......................... 1,800 11,925
UnumProvident Corp. ............ 800 17,350
----------
44,231
----------
MACHINERY & ENGINEERING--0.6%
Esterline Technologies Corp.* .. 400 7,750
----------
MANUFACTURING--1.6%
GP Strategies Corp.* ........... 1,000 4,313
M&F Worldwide Corp.* ........... 2,200 11,963
Saf T Lok, Inc.* ............... 6,100 6,291
----------
22,567
----------
MEDICAL EQUIPMENT--2.7%
Edwards Lifesciences Corp.* .... 700 18,375
IMS Health, Inc. ............... 1,000 18,875
----------
37,250
----------
MEDICAL SUPPLIES--3.7%
C.R. Bard, Inc. ................ 500 24,406
Chronimed, Inc.* ............... 1,600 11,700
Fresenius Medical Care AG ADR .. 1,000 15,250
----------
51,356
----------
METALS & MINING--5.0%
AK Steel Holding Corp. ......... 1,200 13,050
Circor International, Inc. ..... 1,100 10,106
Ladish Co., Inc.* .............. 1,600 20,000
Lindberg Corp. ................. 1,100 7,700
Titanium Metals Corp.* ......... 2,200 19,250
----------
70,106
----------
OFFICE EQUIPMENT & SUPPLIES--0.5%
IKON Office Solutions, Inc. .... 1,300 6,500
----------
The accompanying notes are an integral part of the financial statements.
25
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
OIL & GAS EXPLORATION--8.8%
Canadian 88 Energy Corp.* ...... 900 $ 2,081
EEX Corp.* ..................... 1,700 9,350
Fletcher Challenge Energy ...... 1,500 57,188
Pendaries Petroleum Ltd.* ...... 1,600 5,000
Quicksilver Resources, Inc.* ... 2,100 17,719
Swift Energy Co.* .............. 800 23,150
Virgina Gas Co.* ............... 2,300 8,481
----------
122,969
----------
OIL SERVICES--3.0%
Frontier Oil Corp.* ............ 1,300 9,263
Lufkin Industries, Inc. ........ 400 7,525
Mitcham Industries, Inc.* ...... 1,800 10,238
Pride International, Inc.* ..... 600 14,775
----------
41,801
----------
PACKAGING & CONTAINERS--1.6%
Ivex Packaging Corp.* .......... 800 8,800
Pactiv Corp.* .................. 1,200 13,200
----------
22,000
----------
PHARMACEUTICALS--2.4%
Caremark Rx, Inc.* ............. 2,100 20,606
UroCor, Inc.* .................. 1,900 12,588
----------
33,194
----------
PUBLISHING & INFORMATION SERVICES--2.8%
Lee Enterprises, Inc. .......... 400 11,200
Pulitzer, Inc. ................. 200 8,613
R.H. Donnelley Corp.* .......... 900 18,900
----------
38,713
----------
RADIO & TELEVISION MEDIA--0.9%
Regent Communications, Inc.* ... 1,400 12,250
----------
RESTAURANTS, HOTELS & CASINOS--0.7%
Lone Star Steakhouse & Saloon,
Inc. ......................... 1,100 9,281
----------
NUMBER
OF SHARES VALUE
--------- ----------
RETAIL TRADE--1.5%
J.C. Penney Co., Inc. .......... 500 $ 7,000
Movie Gallery, Inc.* ........... 1,700 6,588
ShopKo Stores, Inc.* ........... 600 6,863
----------
20,451
----------
TELECOMMUNICATIONS & EQUIPMENT--3.9%
Cablevision Systems Corp.* ..... 100 6,725
Harris Corp. ................... 600 18,038
ROHN Industries, Inc.* ......... 2,700 11,138
Salient 3 Communications, Inc. . 900 12,431
STAR Telecommunications, Inc.* . 1,900 6,056
----------
54,388
----------
TEXTILES & APPAREL--1.7%
Dan River, Inc., Class A* ...... 1,800 7,988
Tommy Hilfiger Corp.* .......... 1,500 16,302
----------
24,290
----------
TOYS--0.9%
Hasbro, Inc. ................... 1,000 12,313
----------
TRANSPORTATION--2.2%
Consolidated Freightways Corp.* 2,600 11,903
OMI Corp.* ..................... 1,700 12,750
Sea Containers Ltd., Class A ... 200 5,700
----------
30,353
----------
TRAVEL SERVICES--0.4%
Carnival Corp. ................. 300 5,981
----------
TOTAL COMMON STOCK
(Cost $1,221,530) .......... 1,346,591
----------
PAR
(000)
-----
SHORT TERM INVESTMENTS--1.0%
Wilmington Fund Cash Sweep
6.230% 09/01/00 .............. $ 14 13,585
----------
TOTAL SHORT TERM INVESTMENTS
(Cost $13,585) ............. 13,585
----------
TOTAL LONG POSITIONS--97.8%
(Cost $1,235,115) .......... 1,360,176
----------
The accompanying notes are an integral part of the financial statements.
26
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
SECURITIES SOLD SHORT--(76.9)%
AEROSPACE/DEFENSE--(0.3)%
SPACEHAB, Inc.* ................ (700) $ (3,719)
----------
AGRICULTURE--(0.4)%
Tejon Ranch Co.* ............... (200) (4,950)
----------
AUTOMOTIVE--(0.4)%
A.S.V., Inc.* .................. (400) (5,350)
----------
AUTOMOTIVE PARTS & EQUIPMENT--(0.2)%
Collins & Aikman Corp.* ........ (600) (3,113)
----------
BROADCASTING & PUBLISHING--(0.4)%
Digital Generation Systems, Inc.* (800) (4,850)
----------
BUILDING & BUILDING MATERIALS--(1.5)%
ABM Industries, Inc. ........... (300) (8,100)
Fastenal Co. ................... (200) (12,775)
----------
(20,875)
----------
BUSINESS & PUBLIC SERVICES--(4.2)%
Gaiam, Inc.* ................... (700) (12,513)
Labor Ready, Inc.* ............. (500) (1,938)
Lamar Advertising Co.* ......... (100) (4,644)
Omnicom Group, Inc. ............ (100) (8,344)
Optimal Robotics Corp.* ........ (400) (13,350)
ProBusiness Services, Inc.* .... (200) (4,400)
Tetra Tech, Inc.* .............. (500) (13,563)
----------
(58,752)
----------
CELLULAR/WIRELESS--(1.1)%
Carrier Access Corp.* .......... (200) (9,575)
Winstar Communications, Inc.* .. (200) (5,375)
----------
(14,950)
----------
CHEMICALS--(2.3)%
Albemarle Corp. ................ (600) (14,888)
Eco Soil Systems, Inc.* ........ (1,000) (1,438)
Ferro Corp. .................... (300) (6,188)
OM Group, Inc. ................. (200) (9,475)
----------
(31,989)
----------
NUMBER
OF SHARES VALUE
--------- ----------
COMMUNICATIONS & MEDIA--(0.5)%
Clear Channels Communications,
Inc.* ........................ (100) $ (7,238)
----------
COMPUTERS, SOFTWARE & SERVICES--(7.4)%
Anixter International, Inc.* ... (200) (7,000)
Complete Business
Solutions, Inc.* ............. (300) (4,050)
Computer Horizons Corp.* ....... (300) (2,869)
ConSyGen, Inc.* ................ (200) (130)
Creo Products, Inc.* ........... (200) (5,675)
Cylink Corp.* .................. (400) (5,700)
Dendrite International, Inc.* .. (400) (10,625)
GTSI Corp.* .................... (1,500) (7,688)
Lifeminders, Inc.* ............. (400) (12,000)
M-Wav, Inc.* ................... (600) (7,725)
OTG Software, Inc.* ............ (200) (4,475)
Rainbow Technologies, Inc.* .... (200) (7,925)
Selectica, Inc.* ............... (100) (4,769)
Storage Computer Corp.* ........ (400) (5,375)
Structural Dynamics Research
Corp.* ....................... (400) (6,450)
Tricord Systems, Inc.* ......... (300) (4,200)
Vitech America, Inc.* .......... (100) (450)
Xceed, Inc.* ................... (800) (6,100)
----------
(103,206)
----------
CONSTRUCTION & HOUSING--(0.9)%
Snap-On, Inc. .................. (400) (12,325)
----------
CONSUMER DURABLES--(0.4)%
AEP Industries, Inc.* .......... (200) (5,913)
----------
CONSUMER PRODUCTS & SERVICES--(1.9)%
Blyth Industries, Inc. ......... (400) (9,375)
Coinstar, Inc.* ................ (300) (3,450)
MemberWorks, Inc.* ............. (200) (5,625)
Yankee Candle Co., Inc.* ....... (400) (7,875)
----------
(26,325)
----------
DIVERSIFIED--(0.3)%
Hillenbrand Industries, Inc. ... (100) (3,481)
----------
The accompanying notes are an integral part of the financial statements.
27
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
ELECTRIC UTILITIES--(1.1)%
Cleco Corp. .................... (200) $ (8,350)
PPL Corp. ..................... (200) (6,700)
----------
(15,050)
----------
ELECTRONIC COMP. & INSTRUMENTS--(5.3)%
ACT Manufacturing, Inc.* ....... (200) (10,188)
ESS Technology, Inc.* .......... (400) (6,925)
Gentex Corp.* .................. (300) (7,763)
Lernout & Hauspie Speech
Products NV* ................. (300) (8,756)
Ramtron International Corp.* ... (400) (5,950)
Signal Technology Corp.* ....... (300) (5,700)
SonoSite, Inc.* ................ (300) (10,031)
Symbol Technologies, Inc. ...... (100) (4,138)
Transwitch Corp.* .............. (100) (6,019)
Universal Display Corp.* ....... (300) (7,463)
----------
(72,933)
----------
ENVIRONMENTAL SERVICES--(0.8)%
Environmental Technologies
Corp.* ....................... (700) (10,413)
----------
FINANCIAL SERVICES--(3.1)%
ASTA Funding, Inc.* ............ (900) (5,906)
Charles Schwab Corp. (The) ..... (200) (7,638)
E-LOAN, Inc.* .................. (400) (1,388)
National Discount Brokers Group,
Inc.* ........................ (400) (14,475)
Nextcard, Inc.* ................ (900) (7,397)
Siebert Financial Corp. ........ (300) (2,719)
Stockwalk.com Group, Inc.* ..... (600) (3,300)
----------
(42,823)
----------
FOOD & BEVERAGE--(5.1)%
Beringer Wine Estates Holdings,
Inc., Class B* ............... (200) (11,063)
Brown-Forman Corp., Class B .... (200) (10,600)
Dreyer's Grand Ice Cream, Inc. . (400) (8,306)
Glacier Water Services, Inc.* .. (300) (3,525)
Hain Celestial Group, Inc.* .... (200) (6,250)
Robert Mondavi (The) Corp.* .... (300) (12,300)
NUMBER
OF SHARES VALUE
--------- ----------
FOOD & BEVERAGE--(CONTINUED)
Spigadoro, Inc.* ............... (600) $ (1,463)
United Natural Foods, Inc.* .... (400) (6,050)
Wm. Wrigley Jr. Co. ............ (150) (11,109)
----------
(70,666)
----------
GAMBLING--(0.8)%
CCA Companies, Inc.* ........... (600) (169)
Dover Downs Entertainment, Inc. (400) (4,025)
MGM Mirage, Inc. ............... (200) (6,875)
----------
(11,069)
----------
HAZARDOUS WASTE DISPOSAL--(0.4)%
Rexx Environmental Corp.* ...... (800) (5,350)
----------
HEALTH & PERSONAL CARE--(0.6)%
Estee Lauder Companies, Inc.,
Class A ...................... (100) (4,094)
French Fragrances, Inc.* ....... (500) (3,563)
----------
(7,657)
----------
INSURANCE--(0.5)%
Progressive Corp. (The) ........ (100) (7,581)
----------
INTERNET--(3.6)%
Alloy Online, Inc.* ............ (1,200) (10,575)
Autobytel.com, Inc.* ........... (300) (1,519)
Autoweb.com, Inc.* ............. (400) (688)
DigitalThink, Inc.* ............ (200) (6,813)
HeadHunter.NET, Inc.* .......... (700) (4,200)
Internet America, Inc.* ........ (700) (2,625)
iVillage, Inc.* ................ (100) (669)
LivePerson, Inc.* .............. (1,100) (7,150)
MyPoints.com, Inc.* ............ (200) (2,725)
netGuru, Inc.* ................. (300) (5,363)
quepasa.com, Inc.* ............. (800) (950)
Sunhawk.com Corp.* ............. (400) (6,300)
----------
(49,577)
----------
The accompanying notes are an integral part of the financial statements.
28
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
MACHINERY & ENGINEERING--(1.7)%
Astec Industries, Inc.* ........ (500) $ (9,813)
Briggs & Stratton Corp. ........ (200) (8,650)
Johnson Controls, Inc. ......... (100) (5,344)
----------
(23,807)
----------
MANUFACTURING--(1.0)%
American Woodmark Corp. ........ (200) (4,638)
Falcon Products, Inc. .......... (400) (3,900)
Valspar Corp. .................. (200) (5,900)
----------
(14,438)
----------
MEDICAL EQUIPMENT--(2.9)%
Aspect Medical Systems, Inc.* .. (400) (7,700)
Biacore International AB ADR* .. (200) (5,950)
DiaSys Corp.* .................. (500) (4,531)
Hycor Biomedical, Inc.* ........ (600) (4,125)
LabOne, Inc.* .................. (24) (194)
Med-Design Corp. (The)* ........ (500) (7,750)
Schick Technologies, Inc.* ..... (300) (450)
Stryker Corp. .................. (100) (4,481)
Virbac Corp.* .................. (1,500) (5,438)
----------
(40,619)
----------
MEDICAL SUPPLIES--(1.7)%
Frensenuis Medical Care AG ADR . (500) (14,594)
Patterson Dental Co.* .......... (400) (9,500)
----------
(24,094)
----------
METALS & MINING--(0.5)%
Precision Castparts Corp. ...... (100) (7,600)
----------
OIL SERVICES--(0.6)%
Eagle Geophysical, Inc.* ....... (25) --
NUI Corp. ...................... (300) (9,019)
----------
(9,019)
----------
PAPER & FORESTRY PRODUCTS--(1.1)%
Chesapeake Corp. ............... (300) (7,163)
Westvaco Corp. ................. (300) (8,212)
----------
(15,375)
----------
NUMBER
OF SHARES VALUE
--------- ----------
PHARMACEUTICALS--(0.7)%
Accredo Health, Inc.* .......... (200) $ (8,662)
CEL-SCI Corp.* ................. (100) (300)
Ergo Science Corp.* ............ (1,000) (1,031)
Shaman Pharmaceuticals, Inc.* .. (1) --
----------
(9,993)
----------
RADIO & TELEVISION MEDIA--(0.4)%
Cox Radio, Inc., Class A* ...... (300) (6,244)
----------
REAL ESTATE--(2.9)%
Alexandria Real Estate
Equities, Inc. ............... (300) (10,500)
CenterPoint Properties Corp. ... (300) (13,144)
Federal Realty Investment Trust (300) (6,000)
Vornado Realty Trust ........... (300) (11,100)
----------
(40,744)
----------
RECREATION--(1.0)%
Bally Total Fitness Holding Corp.* (400) (9,875)
Direct Focus, Inc.* ............ (150) (4,491)
----------
(14,366)
----------
RESTAURANTS, HOTELS & CASINOS--(4.3)%
Cheesecake Factory, Inc. (The)* (300) (10,819)
Darden Restaurants, Inc. ....... (400) (7,075)
Frisch's Restaurants, Inc. ..... (300) (3,450)
Garden Fresh Restaurant Corp.* . (200) (2,500)
O'Charley's, Inc.* ............. (400) (5,100)
Papa John's International, Inc.* (300) (6,787)
P.F. Chang's China Bistro, Inc.* (500) (14,969)
Uno Restaurant Corp.* .......... (330) (3,197)
Vail Resorts, Inc.* ............ (300) (5,512)
----------
(59,409)
----------
The accompanying notes are an integral part of the financial statements.
29
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
LONG/SHORT EQUITY FUND
FORMERLY THE "MARKET NEUTRAL FUND"
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
RETAIL --(7.0)%
1-800 CONTACTS, Inc.* .......... (100) $ (4,019)
99 Cents Only Stores* .......... (200) (8,987)
Amazon.com, Inc.* .............. (300) (12,450)
AutoZone, Inc.* ................ (300) (6,750)
Chico's FAS, Inc.* ............. (300) (11,700)
Claire's Stores, Inc. .......... (300) (5,906)
Cost-U-Less, Inc.* ............. (500) (812)
Factory 2-U Store, Inc.* ....... (200) (6,912)
GenesisIntermedia.com, Inc.* ... (400) (6,350)
Party City Corp.* .............. (1,700) (5,445)
Rent-Way, Inc.* ................ (200) (4,900)
Ritchie Bros Auctioneers, Inc.* (100) (2,025)
Sound Advice, Inc.* ............ (600) (4,950)
Starbucks Corp.* ............... (300) (10,987)
Styleclick, Inc., Class A* ..... (500) (5,500)
----------
(97,693)
----------
STEEL--(0.7)%
Reliance Steel & Aluminum Co. .. (200) (4,125)
Valmont Industries, Inc. ....... (300) (5,681)
----------
(9,806)
----------
TELECOMMUNICATIONS & EQUIPMENT--(4.7)%
Inet Technologies, Inc.* ....... (200) (8,075)
General Magic, Inc.* ........... (1,100) (7,734)
McLeodUSA, Inc.* ............... (400) (6,325)
Plantronics, Inc.* ............. (100) (4,994)
RMH Teleservices, Inc.* ........ (300) (7,200)
StarMedia Network, Inc.* ....... (600) (5,100)
Telxon Corp.* .................. (200) (3,950)
Wire One Technologies, Inc.* ... (1,300) (10,075)
World Access, Inc.* ............ (500) (4,531)
Zomax, Inc.* ................... (400) (7,764)
----------
(65,748)
----------
NUMBER
OF SHARES VALUE
--------- ----------
TEXTILES & APPAREL--(1.7)%
Mohawk Industries, Inc.* ....... (300) $ (7,125)
The Timberland Co.* ............ (400) (16,300)
----------
(23,425)
----------
TRAVEL SERVICES--(0.5)%
Hotel Reservations Network,
Inc., Class A* ............... (200) (7,037)
----------
TOTAL SECURITIES SOLD SHORT
(Proceeds $1,126,695) ...... (1,069,572)
----------
NET INVESTMENTS IN
SECURITIES--20.9%
(Cost $108,420) ................ 290,604
----------
OTHER ASSESTS IN EXCESS OF
LIABILTIES--79.1% .............. 1,099,497
----------
NET ASSETS--100.0% ................ $1,390,101
==========
------------
* Non-income producing.
ADR-- American Depository Receipt.
The accompanying notes are an integral part of the financial statements.
30
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2000
NUMBER
OF SHARES VALUE
--------- ----------
PREFERRED STOCK--5.0%
INDUSTRIAL GOODS & MATERIALS--1.1%
Amcor Ltd. (Australia)
7.25% 11/19/06 ............... 2,500 $ 94,375
----------
REAL ESTATE (REIT)--3.9%
Crescent Real Estate
6.75% 12/31/49 ............... 6,600 107,250
Equity Office Properties Trust
Series B
5.25% 02/15/08 ............... 1,900 82,888
Equity Residential Properties
Series G
7.25% 12/31/49 ............... 3,500 80,281
Reckson Associates Realty Series A
7.625% 12/31/49 .............. 3,500 80,281
----------
350,700
----------
TOTAL PREFERRED STOCK
(Cost $535,883) 445,075
----------
PAR
(000)
-----
CORPORATE BONDS--31.1%
BANKS & SAVINGS & LOANS--4.6%
BankBoston NA Subordinated Notes
(A2, A)
7.375% 09/15/06 .............. $ 10 9,895
Capital One Bank Senior Notes
(Baa2, BBB-)
6.150% 06/01/01 .............. 20 19,831
Korea Development Bank Notes
(Baa2, BBB)
7.900% 02/01/02 .............. 100 100,354
Old Kent Bank Subordinated Notes
(N/A, A-)
6.625% 11/15/05 .............. 110 105,816
Sovereign Bancorp. Subordinated
Notes (N/R, BB-)
8.000% 03/15/03 .............. 100 96,036
Sovereign Capital Trust I Company
Guarantee Notes (B1, B)
9.000% 04/01/27 .............. 100 72,500
----------
404,432
----------
PAR
(000) VALUE
----- ----------
CABLE--0.2%
Adelphia Communications Corp.
Senior Notes Series B (B2, B+)
9.250% 10/01/02 .............. $ 15 $ 15,000
----------
CHEMICALS--0.9%
Lyondell Chemical Co. Secured Notes
Series A (Ba3, BB)
9.625% 05/01/07 .............. 50 50,938
Union Carbide Corp. Notes
(Baa2, BBB)
6.250% 06/15/03 .............. 25 24,523
----------
75,461
----------
ENERGY--2.5%
CMS Energy Corp. Senior Notes
(Ba3, BB)
8.125% 05/15/02 .............. 25 24,833
Consumers Energy Co. First Mortgage
(Baa3, BBB+)
6.375% 09/15/03 .............. 100 96,409
Texas-New Mexico Power
Senior Notes (Baa3, BBB)
6.250% 01/15/09 .............. 25 22,109
Tosco Corp. First Mortgage Notes
(Baa1, BBB)
8.250% 05/15/03 .............. 25 25,604
Union Oil Co. of California Notes
(Baa1, BBB+)
6.500% 05/01/08 .............. 30 27,970
Union Texas Petroleum Senior
Notes (Aa2, AA+)
8.375% 03/15/05 .............. 20 21,004
----------
217,929
----------
FINANCIAL SERVICES--3.5%
Equitable Companies Senior Notes
(A2, A+)
9.000% 12/15/04 .............. 80 84,423
Ford Motor Credit Corp. Notes
(A2, A)
6.700% 07/16/04 .............. 50 48,799
The accompanying notes are an integral part of the financial statements.
31
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
PAR
(000) VALUE
----- ----------
FINANCIAL SERVICES--(CONTINUED)
Limestone Electron Trust Senior
Notes Series 144A (Baa3, BBB-)
8.625% 03/15/03 .............. $ 25 $ 25,379
Security Capital U.S. Realty Bonds
Series 144A (Baa3, BBB-)
2.000% 05/22/03 .............. 170 134,725
Sprint Spectrum L.P. Senior
Discount Notes (Baa2, BBB+)
8.170%* 08/15/06 ............. 20 19,576
----------
312,902
----------
GAS UTILITIES--0.8%
KN Energy, Inc. Senior Notes
(Baa2, BBB-)
6.450% 11/30/01 .............. 75 74,077
----------
HEALTH CARE--2.1%
Tenet Healthcare Corp.
Senior Notes (Ba1, BB+)
8.625% 12/01/03 .............. 75 75,209
Total Renal Care Holdings (B3, B-)
5.625% 07/15/06 .............. 165 112,200
----------
187,409
----------
INDUSTRIAL GOODS & MATERIALS--4.6%
Adaptec, Inc. (B1, B+)
4.750% 02/01/04 .............. 80 69,400
Browning-Ferris Industries, Inc.
Senior Notes (Ba3, BB-)
6.375% 01/15/08 .............. 25 20,672
Unisys Corp. Senior Notes
(Ba1, BB+)
11.750% 10/15/04 ............. 200 212,000
USG Corp. Series B Senior Notes
(Baa1, BBB+)
9.250% 09/15/01 .............. 105 106,444
----------
408,516
----------
PAR
(000) VALUE
----- ----------
OIL & GAS EXPLORATION--0.2%
Occidental Petroleum Corp.
Senior Notes (Baa3, BBB-)
6.750% 11/15/02 .............. $ 20 $ 19,803
----------
RADIO & TELEVISION MEDIA--2.1%
Chancellor Media Corp. Series B
Company Guarantee Notes (B1, B)
8.750% 06/15/07 .............. 25 25,625
CSC Holdings, Inc. Senior Notes
(Ba1, BB+)
7.875% 12/15/07 .............. 50 49,284
CSC Holdings, Inc. Senior
Subordinate Debentures (Ba3, BB-)
9.875% 02/15/13 .............. 10 10,225
Jones Intercable, Inc. Senior Notes
(Baa2, BBB)
9.625% 03/15/02 .............. 100 102,750
----------
187,884
----------
RETAIL TRADE--0.8%
Federated Department Stores, Inc.
Senior Notes (Baa1, BBB+)
8.125% 10/15/02 .............. 25 25,193
Safeway, Inc. Notes (Baa2, BBB)
6.050% 11/15/03 .............. 50 48,060
----------
73,253
----------
SOVEREIGN GOVERNMENT BONDS--4.1%
Argentina (Republic Of)
Bonds Series C (BBB)
8.270%* 10/15/01 ............. 50 45,625
Panama (Republic Of) Notes
Series 144A (Ba1, BB+)
7.875% 02/13/02 .............. 300 297,150
United Mexican States Bonds
(Baa3, BB+)
8.625% 03/12/08 .............. 25 25,063
----------
367,838
----------
The accompanying notes are an integral part of the financial statements.
32
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
AUGUST 31, 2000
PAR
(000) VALUE
----- ----------
TELECOMMUNICATIONS--3.9%
CCPR Services, Inc. Company
Guarantee Notes (B2, B)
10.000% 02/01/07 ............. $ 35 $ 36,575
Global Crossing Holdings Ltd.
Company Guarantee Notes (Ba2, BB)
9.625% 05/15/08 .............. 50 50,625
LCI International, Inc.
Senior Notes (Baa1, BBB+)
7.250% 06/15/07 .............. 80 77,864
MetroNet Communications Corp.
Senior Discount Notes (Baa3, BBB)
8.220%* 06/15/08 ............. 45 37,013
US Cellular Corp. Notes (A3, A-)
7.250% 08/15/07 .............. 75 72,892
Worldcom, Inc. Senior Notes (A3, A-)
6.125% 08/15/01 .............. 25 24,780
6.950% 08/15/06 .............. 50 49,079
----------
348,828
----------
TRANSPORTATION--0.8%
CSX Corp. Notes (Baa2, BBB)
6.250% 10/15/08 .............. 50 45,358
Union Pacific Co. Debentures
(Baa3, BBB-)
9.625% 12/15/02 .............. 25 26,234
----------
71,592
----------
TOTAL CORPORATE BONDS
(Cost $2,889,125) .......... 2,764,924
----------
AGENCY OBLIGATIONS--38.6%
AGENCY DEBENTURES--0.3%
FHLMC (Aaa, N/A)
5.750% 04/15/08 .............. 25 23,394
----------
PAR
(000) VALUE
----- ----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--7.7%
FNMA 190945
6.000% 05/01/24 .............. $ 338 $ 314,104
FNMA 281054
6.500% 04/01/24 .............. 320 306,276
FNMA 252925
7.500% 12/01/29 .............. 72 71,420
----------
691,800
----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--30.6%
GNMA 354662
6.500% 09/15/08 .............. 73 71,233
GNMA 780303
6.500% 02/15/09 .............. 204 200,500
GNMA 407234
6.500% 01/15/13 .............. 70 68,606
GNMA 457737
6.500% 03/15/13 .............. 93 91,036
GNMA 469128
6.500% 02/15/28 .............. 360 345,800
GNMA 447928
6.500% 05/15/28 .............. 34 32,970
GNMA 473797
6.500% 06/15/28 .............. 27 26,268
GNMA 468090
6.500% 07/15/28 .............. 31 30,189
GNMA 482119
6.500% 08/15/28 .............. 88 84,786
GNMA 376528
7.000% 05/15/09 .............. 156 155,104
GNMA 454925
7.000% 12/15/12 .............. 202 201,659
GNMA 780921
7.000% 11/15/13 .............. 120 119,847
GNMA 366816
7.000% 06/15/24 .............. 91 89,262
The accompanying notes are an integral part of the financial statements.
33
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
BOND FUND
PORTFOLIO OF INVESTMENTS (CONCLUDED)
AUGUST 31, 2000
PAR
(000) VALUE
----- ----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--(CONTINUED)
GNMA 452645
7.000% 11/15/27 .............. $ 44 $ 43,542
GNMA 450446
7.000% 12/15/27 .............. 46 45,670
GNMA 372475
7.000% 01/15/28 .............. 298 292,667
GNMA 469129
7.000% 02/15/28 .............. 65 63,834
GNMA 461450
7.000% 04/15/28 .............. 59 57,884
GNMA 780859
7.500% 09/15/13 .............. 19 19,153
GNMA 780498
7.500% 01/15/27 .............. 75 75,371
GNMA 449474
7.500% 09/15/27 .............. 62 61,783
GNMA 453892
7.500% 11/15/27 .............. 234 233,738
GNMA 780687
8.000% 12/15/12 .............. 220 224,759
GNMA 442120
8.000% 11/15/26 .............. 84 85,279
----------
2,720,940
----------
TOTAL AGENCY OBLIGATIONS
(Cost $3,531,372) 3,436,134
----------
ASSET BACKED SECURITIES--1.2%
Illinois Power Special Purpose Trust
Series 1998-1 Class A6 (Aaa, AAA)
5.540% 06/25/09 .............. 50 46,630
MBNA Master Credit Card Trust
Series 1995-C Class A (Aaa, AAA)
6.450% 02/15/08 .............. 60 58,863
----------
TOTAL ASSET BACKED SECURITIES
(Cost $111,168) ............ 105,493
----------
PAR
(000) VALUE
----- ----------
U.S. TREASURY OBLIGATIONS--21.9%
U.S. TREASURY BONDS--18.7%
U.S. TREASURY BONDS
5.625% 05/15/08 .............. $355 $ 348,122
7.125% 02/15/23 .............. 830 952,425
7.250% 05/15/16 .............. 325 367,352
----------
1,667,899
----------
U.S. TREASURY INFLATION PROTECTION SECURITY--1.7%
U.S. Treasury Inflation Protection
Security
3.625% 01/15/08 .............. 140 145,458
----------
U.S. TREASURY STRIP--1.5%
U.S. Treasury Strip
6.120%* 11/15/21 ............. 455 132,605
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,926,826) .......... 1,945,962
----------
SHORT-TERM INVESTMENT--1.8%
Wilmington Fund Cash Sweep
6.230% 09/01/00 .............. 163 162,949
----------
TOTAL SHORT-TERM INVESTMENT
(Cost $162,949) ............ 162,949
----------
TOTAL INVESTMENTS--99.6%
(Cost $9,157,323) .............. 8,860,537
----------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.4% ........... 37,725
----------
NET ASSETS--100.0% ................ $8,898,262
==========
-------------------
* The rate shown represents yield to maturity on zero coupon bonds.
FHLMC-- Federal Home Loan Mortgage Corporation.
REIT-- Real Estate Investment Trust.
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, 2000
(Unaudited).
The accompanying notes are an integral part of the financial statements.
34
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
AUGUST 31, 2000
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP LONG/SHORT
VALUE FUND VALUE FUND VALUE FUND II* EQUITY FUND** BOND FUND
----------- ------------ -------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at value (cost-- $38,477,566,
$154,197,252, $2,105,706, $1,235,115, and
$9,157,323, respectively) ............... $41,626,938 $161,248,958 $2,374,005 $1,360,176 $8,860,537
----------- ------------ ---------- ---------- ----------
Receivable from Investment Adviser ........ -- -- 11,698 8,777 --
Deposits with brokers and custodian bank for
securities sold short ................... -- -- -- 1,103,460 --
Receivable for investments sold ........... 192,231 1,886,419 31,731 121,749 --
Receivable for fund shares sold ........... 2,570 -- -- -- --
Dividends and interest receivable ......... 84,809 183,135 1,375 4,619 94,384
----------- ------------ ---------- ---------- ----------
Total assets ............................ 41,906,548 163,318,512 2,418,809 2,598,781 8,954,921
----------- ------------ ---------- ---------- ----------
LIABILITIES
Payable for investments purchased ......... 519,280 8,572,525 37,757 114,391 --
Securities sold-short (proceeds $1,126,695) -- -- -- 1,069,572 --
Payable for fund shares redeemed .......... 28,279 -- -- -- --
Accrued expenses and other liabilities .... 47,850 120,305 33,381 24,184 56,659
Payable for dividends on securities sold-short -- -- -- 533 --
----------- ------------ ---------- ---------- ----------
Total liabilities ....................... 595,409 8,692,830 71,138 1,208,680 56,659
----------- ------------ ---------- ---------- ----------
NET ASSETS
Capital stock, $0.001 par value ........... 3,221 13,266 206 131 938
Paid-in capital ........................... 37,276,600 151,563,291 2,041,017 1,288,439 9,743,700
Undistributed net investment income ....... 430,575 761,936 -- 8,599 7,172
Accumulated net realized gain/(loss)
from investments ........................ 451,371 (4,764,517) 38,149 (89,252) (556,762)
Net unrealized appreciation/(depreciation)
on investments .......................... 3,149,372 7,051,706 268,299 182,184 (296,786)
----------- ------------ ---------- ---------- ----------
Net assets .............................. $41,311,139 $154,625,682 $2,347,671 $1,390,101 $8,898,262
=========== ============ ========== ========== ==========
INSTITUTIONAL CLASS
Net assets ................................ $39,896,992 $152,696,434 $1,965,355 $1,080,013 $8,727,890
----------- ------------ ---------- ---------- ----------
Shares outstanding ........................ 3,111,930 13,099,113 172,609 102,152 919,949
----------- ------------ ---------- ---------- ----------
Net asset value, offering and redemption
price per share. ........................ $12.82 $11.66 $11.39 $10.57 $9.49
=========== ============ ========== ========== ==========
INVESTOR CLASS
Net assets ................................ $ 1,414,147 $ 1,929,248 $ 382,316 $ 310,088 $ 170,372
----------- ------------ ---------- ---------- ----------
Shares outstanding ........................ 108,590 167,029 33,667 29,323 17,835
----------- ------------ ---------- ---------- ----------
Net asset value, offering and redemption
price per share ......................... $13.02 $11.55 $11.36 $10.57 $9.55
=========== ============ ========== ========== ==========
<FN>
--------------
*Formerly known as Micro Cap Value Fund.
**Formerly known as Market Neutral Fund.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
35
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
LARGE CAP MID CAP SMALL CAP LONG/SHORT
VALUE FUND VALUE FUND VALUE FUND II* EQUITY FUND** BOND FUND
---------- ---------- -------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends .............................. $ 851,600 $2,165,429 $ 21,272 $ 12,055 $ 57,037
Interest ............................... 52,138 186,963 1,956 38,005 736,309
---------- ---------- -------- -------- --------
903,738 2,352,392 23,228 50,060 793,346
---------- ---------- -------- -------- --------
EXPENSES
Advisory fees .......................... 352,318 1,231,444 21,160 26,019 43,368
Administration fees .................... 75,000 192,413 75,000 75,000 75,000
Administrative services fees ........... 68,280 227,754 2,117 1,369 16,002
Transfer agent fees and expenses ....... 75,497 79,342 74,487 72,669 75,049
Custodian fees and expenses ............ 28,776 42,680 17,520 36,717 15,940
Printing ............................... 29,514 68,875 20,000 9,708 17,640
Federal and state registration fees .... 25,500 18,062 19,829 18,542 1,662
Audit and legal fees ................... 6,163 34,146 5,182 4,377 5,228
Distribution fees ...................... 3,636 5,236 703 605 434
Directors .............................. 4,552 9,493 144 88 142
Insurance .............................. 421 549 549 421 754
Dividend expense ....................... -- -- -- 4,138 --
Other .................................. 5,017 5,918 4,510 3,095 14,876
---------- ---------- -------- -------- --------
Total expenses before waivers and
reimbursements ..................... 674,674 1,915,912 241,201 252,748 266,095
Less: waivers and reimbursements ..... (201,717) (371,999) (214,344) (219,207) (200,662)
---------- ---------- -------- -------- --------
Total expenses after waivers and
reimbursements ..................... 472,957 1,543,913 26,857 33,541 65,433
---------- ---------- -------- -------- --------
Net investment income/(loss) ........... 430,781 808,479 (3,629) 16,519 727,913
---------- ---------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS
Net realized gain/(loss) from investments 944,060 (3,737,165) 233,585 13,763 (416,718)
Net change in unrealized appreciation
on investments ....................... 3,064,061 5,866,818 269,009 135,228 439,880
---------- ---------- -------- -------- --------
Net realized and unrealized gain from
investments .......................... 4,008,121 2,129,653 502,594 148,991 23,162
---------- ---------- -------- -------- --------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ........................ $4,438,902 $2,938,132 $498,965 $165,510 $751,075
========== ========== ======== ======== ========
<FN>
-------------
*Formerly known as Micro Cap Value Fund.
**Formerly known as Market Neutral Fund.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
36
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
STATEMENTS 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, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS
FROM OPERATIONS
Net investment income ......................... $ 430,781 $ 439,153 $ 808,479 $ 219,893
Net realized gain/(loss) from investments ..... 944,060 1,980,807 (3,737,165) 2,802,409
Net change in unrealized appreciation
on investments .............................. 3,064,061 11,653,735 5,866,818 17,233,562
----------- ----------- ---------- ----------
Net increase in net assets resulting
from operations ............................. 4,438,902 14,073,695 2,938,132 20,255,864
----------- ----------- ---------- ----------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income Institutional shares .... (437,974) (274,092) (221,577) (90,185)
Net investment income Investor shares ......... (1,520) (20,133) -- --
Net realized capital gains Institutional shares (2,897,847) (727,345) (2,085,782) (2,283)
Net realized capital gains Investor shares .... (92,351) (64,741) (30,829) (40)
----------- ----------- ---------- ----------
Total dividends and distributions to shareholders (3,429,692) (1,086,311) (2,338,188) (92,508)
----------- ----------- ---------- ----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM
CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... (14,447,130) (15,111,801) (21,959,933) 86,425,931
----------- ----------- ---------- ----------
Total increase/(decrease) in net assets ....... (13,437,920) (2,124,417) (21,359,989) 106,589,287
NET ASSETS
Beginning of period ........................... 54,749,059 56,873,476 175,985,671 69,396,384
----------- ----------- ---------- ----------
End of period ................................. $ 41,311,139 $ 54,749,059 $154,625,682 $175,985,671
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
37
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND II* LONG/SHORT EQUITY FUND**
-------------------------------- -------------------------------------
FOR THE FOR THE FOR THE FOR THE PERIOD
YEAR YEAR YEAR NOVEMBER 17, 1998***
ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- --------------- --------------------
<S> <C> <C> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income/(loss) .................. $ (3,629) $ (3,105) $ 16,519 $ 9,566
Net realized gain/(loss) from investments 233,585 (158,505) 13,763 (103,015)
Net change in unrealized appreciation/
(depreciation) on investments ............... 269,009 352,523 135,228 46,956
-------- -------- --------- ---------
Net increase/(decrease) in net assets
resulting from operations ................... 498,965 190,913 165,510 (46,493)
-------- -------- --------- ---------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income Institutional
shares ...................................... (539) -- (14,358) --
Net investment income Investor shares ......... -- -- (3,128) --
Net realized capital gains Institutional
shares ...................................... -- -- -- --
Net realized capital gains Investor
shares ...................................... -- -- -- --
-------- -------- --------- ---------
Total dividends and distributions to
shareholders ................................ (539) -- (17,486) --
-------- -------- --------- ---------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ...... 247,715 162,189 70,570 1,218,000
-------- -------- --------- ---------
Total increase/(decrease) in net assets ....... 746,141 353,102 218,594 1,171,507
NET ASSETS
Beginning of period ........................... 1,601,530 1,248,428 1,171,507 --
-------- -------- --------- ---------
End of period ................................. $2,347,671 $1,601,530 $1,390,101 $1,171,507
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
BOND FUND
--------------------------------
FOR THE FOR THE
YEAR YEAR
ENDED ENDED
AUGUST 31, 2000 AUGUST 31, 1999
--------------- ---------------
<S> <C> <C>
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS
Net investment income/(loss) .................. $ 727,913 $ 873,298
Net realized gain/(loss) from investments ..... (416,718) (113,950)
Net change in unrealized appreciation/
(depreciation) on investments ............... 439,880 (663,010)
---------- ----------
Net increase/(decrease) in net assets
resulting from operations ................... 751,075 96,338
---------- ----------
LESS DIVIDEND AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income Institutional
shares ...................................... (718,841) (860,406)
Net investment income Investor shares ......... (11,314) (10,855)
Net realized capital gains Institutional
shares ...................................... -- (149,870)
Net realized capital gains Investor
shares ...................................... -- (2,120)
---------- ----------
Total dividends and distributions to
shareholders ................................ (730,155) (1,023,251)
---------- ----------
INCREASE/(DECREASE) IN NET ASSETS DERIVED
FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ...... (3,352,068) (2,550,896)
---------- ----------
Total increase/(decrease) in net assets ....... (3,331,148) (3,477,809)
NET ASSETS
Beginning of period ........................... 12,229,410 15,707,219
---------- ----------
End of period ................................. $ 8,898,262 $12,229,410
=========== ===========
<FN>
---------------
* Formerly known as Micro Cap Value Fund.
** Formerly known as Market Neutral Fund.
*** Commencement of operations.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
38-39
<PAGE>
BOSTON PARTNERS FAMILY OF 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 FOR THE PERIOD
YEAR YEAR YEAR JANUARY 2, 1997*
ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
--------------- --------------- --------------- ----------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS CLASS CLASS
--------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ............... $ 12.24 $ 10.58 $ 12.46 $ 10.00
------- -------- -------- --------
Net investment income(1) ........................... 0.14 0.05 0.12 0.05
Net realized and unrealized gain/(loss) on
investments(2) .................................. 1.25 1.76 (1.31) 2.41
------- -------- -------- --------
Net increase/(decrease) in net assets resulting from
operations ...................................... 1.39 1.81 (1.19) 2.46
------- -------- -------- --------
Dividends to shareholders from
Net investment income .............................. (0.11) (0.04) (0.08) --
Net realized capital gains ......................... (0.70) (0.11) (0.61) --
------- -------- -------- --------
Total dividends and distributions to shareholders .. (0.81) (0.15) (0.69) --
------- -------- -------- --------
Net asset value, end of period ..................... $ 12.82 $ 12.24 $ 10.58 $ 12.46
======= ======== ======== ========
Total investment return(3) ......................... 11.99% 17.12% (10.23%) 24.60%
======= ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $39,897 $ 53,112 $ 50,724 $ 24,603
Ratio of expenses to average net assets(1) ......... 1.00% 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without
waivers and expense reimbursements .............. 1.43% 1.30% 1.49% 2.64%(4)
Ratio of net investment income to average
net assets(1) ................................... 0.92% 0.61% 0.87% 1.19%(4)
Portfolio turnover rate ............................ 120.99% 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>
<TABLE>
<CAPTION>
LARGE CAP VALUE FUND
------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE PERIOD
YEAR YEAR YEAR JANUARY 16, 1997*
ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
--------------- --------------- --------------- -----------------
INVESTOR INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS CLASS
--------------- --------------- --------------- -----------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ............... $ 12.36 $ 10.70 $ 12.45 $ 10.20
-------- -------- -------- --------
Net investment income(1) ........................... 0.10 0.15 0.06 0.02
Net realized and unrealized gain/(loss) on
investments(2) .................................. 1.27 1.65 (1.27) 2.23
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting from
operations ...................................... 1.37 1.80 (1.21) 2.25
-------- -------- -------- --------
Dividends to shareholders from
Net investment income .............................. (0.01) (0.03) (0.06) --
Net realized capital gains ......................... (0.70) (0.11) (0.48) --
-------- -------- -------- --------
Total dividends and distributions to shareholders .. (0.71) (0.14) (0.54) --
-------- -------- -------- --------
Net asset value, end of period ..................... $ 13.02 $ 12.36 $ 10.70 $ 12.45
======== ======== ======== ========
Total investment return(3) ......................... 11.67% 16.86% (10.28%) 22.06%
======== ======== ======== ========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $ 1,414 $ 1,637 $ 6,150 $ 683
Ratio of expenses to average net assets(1) ......... 1.22% 1.25% 1.19% 1.11%(4)
Ratio of expenses to average net assets without
waivers and expense reimbursements .............. 1.53% 1.55% 1.74% 3.05%(4)
Ratio of net investment income to average
net assets(1) ................................... 0.70% 0.36% 0.68% 0.91%(4)
Portfolio turnover rate ............................ 120.99% 156.16% 111.68% 67.16%
<FN>
(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 calculated assuming a purchase of shares on the first day
and a sale of shares on the last day of each period reported and will
include reinvestments of dividends and distributions, if any. Total return
is not annualized.
(4) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
40-41
<PAGE>
BOSTON PARTNERS FAMILY OF 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 FOR THE PERIOD
YEAR YEAR YEAR JUNE 2, 1997*
ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
--------------- --------------- --------------- ---------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS CLASS CLASS
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ............... $ 11.47 $ 9.48 $ 11.01 $10.00
------- ------- ------ ------
Net investment income/(loss)(1) .................... 0.06 0.02 0.01 0.01
Net realized and unrealized gain/(loss) on
investments(2) .................................. 0.29 1.98 (1.39) 1.00
------- ------- ------ ------
Net increase/(decrease) in net assets resulting
from operations ................................. 0.35 2.00 (1.38) 1.01
------- ------- ------ ------
Dividends to shareholders from:
Net investment income .............................. (0.02) (0.01) (0.01) --
Net realized capital gains ......................... (0.14) -- (0.14) --
------- ------- ------ ------
Total dividends and distributions to shareholders .. (0.16) (0.01) (0.15) --
------- ------- ------ ------
Net asset value, end of period ..................... $ 11.66 $ 11.47 $ 9.48 $11.01
======= ======= ====== ======
Total investment return(3) ......................... 3.21% 21.08% (12.73%) 10.10%
======= ======= ====== ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $152,696 $173,224 $67,568 $3,750
Ratio of expenses to average net assets(1) ......... 1.00% 1.00% 1.00% 1.00%(4)
Ratio of expenses to average net assets without
waivers and expense reimbursements .............. 1.24% 1.25% 1.57% 12.37%(4)
Ratio of net investment income to average
net assets(1) ................................... 0.53% 0.17% 0.13% 1.08%(4)
Portfolio turnover rate ............................ 206.65% 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>
<TABLE>
<CAPTION>
MID CAP VALUE FUND
------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE PERIOD
YEAR YEAR YEAR JUNE 2, 1997*
ENDED ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997
--------------- --------------- --------------- ---------------
INVESTOR INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS CLASS
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ............... $11.38 $ 9.42 $11.01 $10.00
------ ------ ------ ------
Net investment income/(loss)(1) .................... 0.03 (0.01) 0.01 0.01
Net realized and unrealized gain/(loss) on
investments(2) .................................. 0.28 1.97 (1.38) 1.00
------ ------ ------ ------
Net increase/(decrease) in net assets resulting
from operations ................................. 0.31 1.96 (1.37) 1.01
------ ------ ------ ------
Dividends to shareholders from:
Net investment income .............................. -- -- (0.01) --
Net realized capital gains ......................... (0.14) -- (0.21) --
------ ------ ------ ------
Total dividends and distributions to shareholders .. (0.14) -- (0.22) --
------ ------ ------ ------
Net asset value, end of period ..................... $11.55 $11.38 $ 9.42 $11.01
====== ====== ====== ======
Total investment return(3) ......................... 2.90% 20.81% (12.77%) 10.10%
====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) .......... $1,929 $2,762 $1,828 $ 598
Ratio of expenses to average net assets(1) ......... 1.22% 1.25% 1.15% 1.10%(4)
Ratio of expenses to average net assets without
waivers and expense reimbursements .............. 1.34% 1.50% 1.82% 12.62%(4)
Ratio of net investment income to average
net assets(1) ................................... 0.31% 0.01% (0.02%) 0.61%(4)
Portfolio turnover rate ............................ 206.65% 200.09% 167.86% 21.80%
<FN>
(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 calculated assuming a purchase of shares on the first day
and a sale of shares on the last day of each period reported and includes
reinvestments of dividends and distributions, if any. Total return is not
annualized.
(4) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
42-43
<PAGE>
BOSTON PARTNERS FAMILY OF 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>
SMALL CAP VALUE FUND II* SMALL CAP VALUE FUND II*
------------------------------------------------- --------------------------------
FOR THE FOR THE FOR THE PERIOD FOR THE FOR THE
YEAR YEAR JULY 1, 1998*** YEAR YEAR
ENDED ENDED THROUGH ENDED ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- --------------- --------------- ---------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS CLASS
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE****
Net asset value, beginning of period ........... $ 8.67 $ 7.62 $10.00 $ 8.65 $ 7.63
------ ------ ------ ------ -------
Net investment income/(loss)(1) ................ (0.01) (0.01) (0.01) (0.03) (0.02)
Net realized and unrealized gain/(loss)
on investments(2) ........................... 2.73 1.06 (2.37) 2.74 1.04
------ ------ ------ ------ -------
Net increase/(decrease) in net assets
resulting from operations ................... 2.72 1.05 (2.38) 2.71 1.02
------ ------ ------ ------ -------
Dividends to shareholders from:
Net investment income .......................... -- -- -- -- --
Net realized capital gains ..................... -- -- -- -- --
------ ------ ------ ------ -------
Total dividends and distributions
to shareholders ............................. -- -- -- -- --
------ ------ ------ ------ -------
Net asset value, end of period ................. $11.39 $ 8.67 $ 7.62 $11.36 $ 8.65
====== ====== ====== ====== =======
Total investment return(3) (5) ................. 31.43% 13.78% (23.80%) 31.33% 13.37%
====== ====== ====== ====== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ...... $1,965 $1,309 $1,120 $ 382 $ 293
Ratio of expenses to average net assets(1) ..... 1.55% 1.55% 1.55%(4) 1.77% 1.80%
Ratio of expenses to average net assets
without waivers and expense reimbursements .. 14.23% 17.84% 17.63%(4) 14.33% 18.09%
Ratio of net investment income
to average net assets(1) .................... (0.18%) (0.17%) (0.34%)(4) (0.40)% (0.42%)
Portfolio turnover rate ........................ 161.75% 87.48% 11.97% 161.75% 87.48%
<FN>
---------------
* Formerly known as Micro Cap Value Fund.
** Formerly known as Market Neutral Fund.
*** 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>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND II LONG-SHORT EQUITY FUND**
--------------- -------------------------------------------------------------------------
FOR THE PERIOD FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD
JULY 1, 1998*** YEAR NOVEMBER 17, 1998*** YEAR NOVEMBER 17, 1998***
THROUGH ENDED THROUGH ENDED THROUGH
AUGUST 31, 1998 AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
--------------- --------------- -------------------- --------------- --------------------
INVESTOR INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR
CLASS CLASS CLASS CLASS CLASS
--------------- --------------- -------------------- --------------- --------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE****
Net asset value, beginning of period ..... $10.00 $ 9.46 $10.00 $ 9.43 $10.00
------ ------ ------ ------ ------
Net investment income/(loss)(1) .......... (0.01) 0.13 0.12 0.11 0.06
Net realized and unrealized
gain/(loss) on investments(2) ......... (2.36) 1.12 (0.66) 1.16 (0.63)
------ ------ ------ ------ ------
Net increase/(decrease) in net assets
resulting from operations ............. (2.37) 1.25 (0.54) 1.28 (0.57)
------ ------ ------ ------ ------
Dividends to shareholders from:
Net investment income .................... -- (0.14) -- (0.13) --
Net realized capital gains ............... -- -- -- -- --
------ ------ ------ ------ ------
Total dividends and distributions
to shareholders ....................... -- (0.14) -- (0.13) --
------ ------ ------ ------ ------
Net asset value, end of period ........... $ 7.63 $10.57 $ 9.46 $10.57 $ 9.43
====== ====== ====== ====== ======
Total investment return(3) (5) ........... (23.70%) 13.74% (5.40%) 13.87% (5.70%)
====== ====== ====== ====== ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) ....................... $ 129 $1,080 $ 941 $ 310 $ 231
Ratio of expenses to
average net assets(1) ................. 1.80%(4) 2.86% 2.50%(4)(6) 3.08% 2.75%(4)(6)
Ratio of expenses to average net assets
without waivers and
expense reimbursements ................ 18.61%(4) 21.86%(6) 26.36%(4)(6) 21.96%(6) 26.61%(4)(6)
Ratio of net investment income
to average net assets(1) .............. (0.66%)(4) 1.12% 1.57%(4) 0.90% 1.32%(4)
Portfolio turnover rate .................. 11.97% 363.34% 218.41% 363.34% 218.41%
<FN>
(3) Total return is calculated assuming a purchase of shares on the first day
and a sale of shares on the last day of each period reported and includes
reinvestments of dividends and distributions, if any. 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 21.86% (excluding dividend expense) and 22.22% (including dividend
expense) for the year ended August 31, 2000, and 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 21.96% (excluding dividend expense) and
22.32% (including dividend expense) for the year ended August 31, 2000, and
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.
44-45
<PAGE>
BOSTON PARTNERS FAMILY OF 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>
BOND FUND
--------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR YEAR DECEMBER 30, 1997*
ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998
--------------- --------------- ------------------
INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL
CLASS CLASS CLASS
--------------- --------------- ------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ..................... $ 9.41 $ 10.08 $ 10.00
------ ------ -------
Net investment income(1) ................................. 0.64 0.96 0.78
Net realized and unrealized gain/(loss)
on investments(2) ..................................... 0.08 (0.90) (0.31)
------ ------ -------
Net increase/(decrease) in net assets
resulting from operations ............................. 0.72 0.06 0.47
------ ------ -------
Dividends to shareholders from:
Net investment income .................................... (0.64) (0.62) (0.39)
Net realized capital gains ............................... -- (0.11) --
------ ------ -------
Total dividends and distributions to shareholders ........ (0.64) (0.73) (0.39)
------ ------ -------
Net asset value, end of period ........................... $ 9.49 $ 9.41 $ 10.08
====== ====== =======
Total investment return(3) ............................... 8.01% 0.42% 4.79%
====== ====== =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $8,728 $12,041 $15,509
Ratio of expenses to average net assets(1) ............... 0.60% 0.60% 0.60%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements ................................ 2.45% 2.22% 2.82%(4)
Ratio of net investment income to average net assets(1) .. 6.72% 6.22% 6.06%(4)
Portfolio turnover rate .................................. 34.59% 57.60% 45.27%
<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>
<TABLE>
<CAPTION>
BOND FUND
---------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
YEAR YEAR DECEMBER 30, 1997*
ENDED ENDED THROUGH
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998
--------------- --------------- ------------------
INVESTOR INVESTOR INVESTOR
CLASS CLASS CLASS
--------------- --------------- ------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ..................... $ 9.47 $ 10.10 $10.00
------ ------- ------
Net investment income(1) ................................. 0.62 0.93 0.62
Net realized and unrealized gain/(loss)
on investments(2) ..................................... 0.08 (0.90) (0.16)
------ ------- ------
Net increase/(decrease) in net assets
resulting from operations ............................. 0.70 0.03 0.46
------ ------- ------
Dividends to shareholders from:
Net investment income .................................... (0.62) (0.55) (0.36)
Net realized capital gains ............................... -- (0.11) --
------ ------- ------
Total dividends and distributions to shareholders ........ (0.62) (0.66) (0.36)
------ ------- ------
Net asset value, end of period ........................... $ 9.55 $ 9.47 $10.10
====== ======= ======
Total investment return(3) ............................... 7.72% 0.17% 4.63%
====== ======= ======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's omitted) ................ $ 170 $ 188 $ 198
Ratio of expenses to average net assets(1) ............... 0.82% 0.85% 0.85%(4)
Ratio of expenses to average net assets without waivers and
expense reimbursements ................................ 2.55% 2.47% 2.72%(4)
Ratio of net investment income to average net assets(1) .. 6.50% 5.97% 5.83%(4)
Portfolio turnover rate .................................. 34.59% 57.60% 45.27%
<FN>
(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 calculated assuming a purchase of shares on the first day
and a sale of shares on the last day of each period reported and will
include reinvestments of dividends and distributions, if any. Total return
is not annualized.
(4) Annualized.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
46-47
<PAGE>
BOSTON PARTNERS FAMILY OF 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 fourteen investment portfolios, including Boston
Partners Large Cap Value Fund ("Large Cap Fund"), Boston Partners Mid Cap Value
Fund ("Mid Cap Fund"), Boston Partners Small Cap Value Fund II ("Small Cap Fund
II"), Boston Partners Long/Short Equity Fund ("Long/Short Equity Fund") and
Boston Partners Bond Fund ("Bond Fund") (each a "Fund", collectively the
"Funds"). The Large Cap Fund, the Mid Cap Fund, the Small Cap Fund II, the
Long/Short Equity 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 19.88 billion are currently classified into ninety-seven classes. Each
class represents an interest in one of fourteen investment portfolios of RBB.
The classes have been grouped into fourteen 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 Small Cap Fund
II (formerly the Micro Cap Value Fund), which commenced investment operations on
July 1, 1998, the Long/Short Equity Fund (formerly 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, and 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 that 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 accounting principles generally accepted in the United States of America
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.
48
<PAGE>
BOSTON PARTNERS FAMILY OF 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 that Boston Partners Asset Management, L.P. (the Funds'
investment adviser or "Boston Partners") considers creditworthy. 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 continue to qualify for and elect the tax
treatment applicable to regulated investment companies under Subchapter M of the
Internal Revenue Code of 1986, as amended, and make the requisite distributions
to its shareholders which will be sufficient to relieve it from U.S. federal
income and excise taxes.
SHORT SALES -- When the Adviser anticipates that a security that the Fund
does not own 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 buys and replaces such borrowed security. A Fund will realize a gain if
there is a decline in price of the security between those dates where decline
exceeds 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
in size. 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.
49
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 Small Cap Fund II's average daily net
assets, 2.25% of the Long/Short Equity Fund's average daily net assets and 0.40%
of the Bond Fund's average daily net assets, each accrued daily and payable
quarterly.
The adviser has 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% and 1.22% of the Large Cap Fund and the
Mid Cap Funds' average daily net assets for the Institutional and Investor
Classes, respectively. The adviser has agreed to limit the Small Cap Fund II's
total operating expenses for the current and the following fiscal year to the
extent that such expenses exceed 1.55% and 1.77% of the Small Cap Fund II's
average daily net assets for the Institutional and Investor Classes,
respectively. The adviser has agreed to limit the Long/Short Equity Fund's total
operating expenses for the current and the following fiscal year to the extent
that such expenses exceed 2.50% and 2.72%, excluding short sale dividend expense
of the Long/Short Equity Fund's average daily net assets for the Institutional
and Investor Classes, respectively. The adviser has 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% and 0.82% of the Bond Fund's
average daily net assets for the Institutional and Investor Classes,
respectively. This limitation is effected in waivers of advisory fees and
reimbursements of expenses exceeding the advisory fee as necessary. For the year
ended August 31, 2000, investment advisory fees, waivers and reimbursements of
expenses were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT
---- ------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
Large Cap Fund $ 352,318 $(147,093) $ 205,225 $ --
Mid Cap Fund 1,231,444 (189,796) 1,041,648 --
Small Cap Fund II 21,160 (21,160) -- (130,240)
Long/Short Equity Fund 26,019 (26,019) -- (118,492)
Bond Fund 43,368 (43,368) -- (119,992)
</TABLE>
The Funds will not pay Boston Partners at a later time for any amounts they
may waive or any amounts which Boston Partners has assumed.
PFPC, Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide Inc., an
indirect majority-owned subsidiary of The PNC Financial Services Group, Inc.,
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, 2000, PFPC, at its discretion, voluntarily
agreed to waive a portion of its administration fees for the Funds. For the year
ended August 31, 2000, PFPC's administration fees and related waivers were as
follows:
PFPC GROSS NET PFPC
FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES
---- ------------------- ------- -------------------
Large Cap Fund $ 75,000 $ -- $ 75,000
Mid Cap Fund 192,413 -- 192,413
Small Cap Fund II 75,000 (31,250) 43,750
Long/Short Equity Fund 75,000 (37,500) 37,500
Bond Fund 75,000 (12,500) 62,500
50
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In addition, PFPC serves as the Funds' transfer and dividend disbursing
agent. PFPC, at its discretion, voluntarily agreed to waive a portion of its
transfer agency fees for the Funds. For the year ended August 31, 2000, transfer
agency fees and waivers were as follows:
GROSS TRANSFER NET TRANSFER
FUND AGENCY FEES WAIVERS AGENCY FEES
---- -------------- -------- ------------
Large Cap Fund $75,497 $ -- $75,497
Mid Cap Fund 79,342 -- 79,342
Small Cap Fund II 74,487 (30,000) 44,487
Long/Short Equity Fund 72,669 (36,000) 36,669
Bond Fund 75,049 (12,000) 63,049
Provident Distributors, Inc. ("PDI"), provides certain administrative
services to the Institutional Class of the Funds. As compensation for such
administrative services, PDI is entitled to receive a monthly fee calculated at
the annual rate of 0.15% of the average daily net assets of each Fund's
Institutional Class Shares. PDI is currently waiving fees in excess of 0.03% of
the average daily net assets of each Fund's Institutional Class Shares.
Additionally, PDI receives a fee at an annual rate of 0.25% of the average daily
net assets of each Fund's Investor Class Shares pursuant to a distribution plan
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act.
For the year ended August 31, 2000, administrative services fees and
waivers were as follows:
GROSS ADMINISTRATIVE NET ADMINISTRATIVE
FUND SERVICES FEES WAIVERS SERVICES FEES
---- -------------------- ---------- ------------------
Large Cap Fund $ 68,280 $ (54,624) $13,656
Mid Cap Fund 227,754 (182,203) 45,551
Small Cap Fund II 2,117 (1,694) 423
Long/Short Equity Fund 1,369 (1,096) 273
Bond Fund 16,002 (12,802) 3,200
PFPC Trust Co., a wholly owned subsidiary of PFPC Worldwide Inc., an
indirect majority owned subsidiary of The PNC Financial Services Group, Inc.,
provides certain custodial services to the Funds. As compensation for such
custodial services, PNC 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, 2000, PFPC Trust Co. has, at its discretion,
voluntarily agreed to waive a portion of its custodial fees for the Funds. For
the year ended August 31, 2000, custodial fees and waivers were as follows:
GROSS CUSTODIAL NET CUSTODIAL
FUND FEES WAIVERS FEES
---- --------------- ------- -------------
Large Cap Fund $28,776 $ -- $28,776
Mid Cap Fund 42,680 -- 42,680
Small Cap Fund II 17,520 -- 17,520
Long/Short Equity Fund 36,717 (100) 36,617
Bond Fund 15,940 -- 15,940
51
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
August 31, 2000, were $37,915,747, $153,052,547, $2,163,988, $1,232,011 and
$9,141,338, respectively, for the Large Cap Fund, the Mid Cap Fund, the Small
Cap Fund II, the Long/Short Equity and the Bond Fund. Accordingly, the net
unrealized appreciation/(depreciation) of investments are as follows:
NET APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------- -----------------
Large Cap Fund $ 5,861,671 $(2,150,481) $3,711,190
Mid Cap Fund 13,356,148 (5,159,738) 8,196,410
Small Cap Fund II 350,979 (80,962) 270,017
Long/Short Equity Fund 248,778 (63,490) 185,288
Bond Fund 57,514 (338,315) (280,801)
For the year ended August 31, 2000, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
INVESTMENT SECURITIES
-------------------------------
FUND PURCHASES SALES
---- ------------ ------------
Large Cap Fund $ 54,666,451 $ 69,454,338
Mid Cap Fund 310,556,410 323,509,916
Small Cap Fund II 2,839,825 2,735,815
Long/Short Equity Fund* 4,133,167 4,330,572
Bond Fund** 3,637,156 6,758,296
-------------
* The Long/Short Equity Fund had purchases of $4,204,591 to cover short sales
and received proceeds of $4,140,510 from sales of short securities. ** The Bond
Fund and purchases and sales of U.S. Government Obligations of $2,519,116 and
$3,650,907, respectively.
4. CAPITAL SHARE TRANSACTIONS
As of August 31, 2000, each class of each Fund have 100,000,000 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, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
------------------------- ----------------------- ------------------- ----------------------
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 376,965 $ 4,440,366 2,350,373 $ 25,419,814 55,370 $ 660,735 252,467 $ 3,057,026
Repurchases (1,891,018) (21,940,103) (2,888,244) (35,624,409) (87,214) (1,037,421) (701,743) (9,049,056)
Reinvestments 287,323 3,335,821 82,453 1,000,152 7,914 93,472 6,901 84,672
---------- ------------ -------- ------------ ------- --------- -------- -----------
Net Decrease (1,226,730) $(14,163,916) (455,418) $ (9,204,443) (23,930) $(283,214) (442,375) $(5,907,358)
========== ============ ======== ============ ======= ========= ======== ===========
</TABLE>
52
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
MID CAP VALUE FUND
--------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
------------------------- ----------------------- -------------------- ---------------------
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 1,634,352 $ 17,217,335 9,955,056 $107,297,978 20,700 $ 218,093 127,161 $1,348,569
Repurchases (3,826,167) (40,348,935) (1,987,489) (21,447,511) (99,480) (1,030,678) (78,465) (846,633)
Reinvestments 190,810 1,953,896 6,849 73,489 2,988 30,356 3 39
---------- ------------ --------- ------------ ------- ----------- ------- ----------
Net Increase /
(Decrease) (2,001,005) $(21,177,704) 7,974,416 $ 85,923,956 (75,792) $ (782,229) 48,699 $ 501,975
========== ============ ========= ============ ======= =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE FUND II
------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
-------------------- -------------------- -------------------- --------------------
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 23,284 $250,560 4,159 $32,821 20,104 $ 196,705 18,820 $143,500
Repurchases (1,729) (15,340) (20) (157) (20,295) (184,749) (1,818) (13,975)
Reinvestments 65 539 -- -- -- -- -- --
------ -------- ----- ------- ------- --------- ------ --------
Net Increase /
(Decrease) 21,620 $235,759 4,139 $32,664 (191) $ 11,956 17,002 $129,525
====== ======== ===== ======= ======= ========= ====== ========
</TABLE>
<TABLE>
<CAPTION>
LONG/SHORT EQUITY FUND
---------------------------------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE YEAR ENDED NOVEMBER 17, 1998* FOR THE YEAR ENDED NOVEMBER 17, 1998*
AUGUST 31, 2000 THROUGH AUGUST 31, 1999 AUGUST 31, 2000 THROUGH AUGUST 31, 1999
-------------------- ----------------------- ------------------- -----------------------
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 866 $ 7,000 99,500 $995,000 12,114 $120,676 24,477 $223,000
Repurchases -- -- -- -- (7,656) (74,592) -- --
Reinvestments 1,786 14,358 -- -- 388 3,128 -- --
----- ------- ------ -------- ------ -------- ------ --------
Net Increase 2,652 $21,358 99,500 $995,000 4,846 $ 49,212 24,477 $223,000
===== ======= ====== ======== ====== ======== ====== ========
</TABLE>
53
<PAGE>
BOSTON PARTNERS FAMILY OF FUNDS
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
<TABLE>
<CAPTION>
BOND FUND
--------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 2000 AUGUST 31, 1999
----------------------- ---------------------- -------------------- -------------------
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 4,162 $ 39,500 278,829 $ 2,750,309 -- -- -- --
Repurchases (441,512) (4,091,156) (639,817) (6,314,310) (3,273) $(30,335) (988) $(9,812)
Reinvestments 77,278 718,608 102,359 1,010,290 1,208 11,315 1,275 12,627
-------- ----------- -------- ----------- ------ -------- ----- -------
Net Increase /
(Decrease) (360,072) $(3,333,048) (258,629) $(2,553,711) (2,065) $(19,020) 287 $ 2,815
======== =========== ======== =========== ====== ======== ===== =======
</TABLE>
----------
* Commencement of operations
There is a 1.00% redemption fee on shares redeemed which have been held 365
days or less on the Small Cap Fund II. For the period September 1, 1999 through
August 31, 2000 these fees amounted to $198. The redemption fees are collected
and retained by the Fund for the benefit of the remaining shareholders and
recorded as paid in capital.
On August 31, 2000 one shareholder held approximately 25% of the
outstanding shares of the Large Cap Fund Institutional Class, one shareholder
held approximately 6% of the outstanding shares of the Mid Cap Fund Investor
Class, three shareholders held approximately 24% of the outstanding shares of
the Small Cap Fund II Institutional Class and two shareholders held
approximately 94% of the outstanding shares of the Long/Short Equity Fund
Investor Class.
5. CAPITAL LOSS CARRYOVER
At August 31, 2000 Capital loss carryovers were available to offset future
realized gains as follows: $3,663,488 in the Mid Cap Fund which expires in 2008,
and $168,213 in the Bond Fund which expires in 2008, and $86,148 in the
Long/Short Fund, $85,089 which expires in 2007 and $1,059 which expires in 2008.
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, 2000, 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
-------------- -------------- ----------
Small Cap Fund II $4,168 $(4,168) --
54
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund,Inc.:
In our opinion, the accompanying statements 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 Small Cap Value Fund
II, Boston Partners Long/Short Equity Fund and Boston Partners Bond Fund,
separately managed portfolios of The RBB Fund, Inc. (the "Fund"), at August 31,
2000, the results of each of their operations for the year then ended and the
changes in each of their net assets and the financial highlights for each of the
periods presented, in conformity with accounting principles generally accepted
in the United States of America. 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 auditing standards
generally accepted in the United States of America, 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, 2000 by correspondence with the custodians and brokers, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
Two Commerce Square
Philadelphia, Pennsylvania
October 20, 2000
55
<PAGE>
BOSTON PARTNERS FAMILY OF MUTUAL FUNDS
LARGE CAP VALUE FUND
MID CAP VALUE FUND
SMALL CAP VALUE FUND II
LONG/SHORT EQUITY 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, 2000) 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, 2000, the following dividends and distributions per
share were paid by each of the Funds:
<TABLE>
ORDINARY INCOME CAPITAL GAINS
------------------------ -------------------------
INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR
FUND CLASS CLASS CLASS CLASS
---- ------------- -------- ------------- --------
<S> <C> <C> <C> <C>
Boston Partners Large Cap Value Fund ........................ $0.11 $0.01 $0.70 $0.70
Boston Partners Mid Cap Value Fund .......................... 0.02 -- 0.14 0.14
Boston Partners Small Cap Value Fund II ..................... -- -- -- --
Boston Partners Long/Short Equity Fund ...................... 0.14 0.13 -- --
Boston Partners Bond Fund ................................... 0.64 0.62 -- --
</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 1999. Because each
Fund's fiscal year is not the calendar year, another notification will be sent
with respect to calendar year 2000. 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 2001.
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.
56
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INVESTMENT ADVISER
Boston Partners Asset Management, L.P.
28 State Street
Boston, MA 02109
ADMINISTRATOR/TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Provident Distributors, Inc.
3200 Horizon Dr.
King of Prussia, PA 19046
CUSTODIAN
PFPC Trust Company
8800 Tinicum Blvd.
Suite 200
Philadelphia, PA 19153
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square, Suite 1700
2001 Market Street
Philadelphia, PA 19103-7042
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.
[LOGO OMITTED - BOSTON PARTNERS ASSET MANAGEMENT, L.P.]
BOSTON PARTNERS
FAMILY OF FUNDS
LARGE CAP
VALUE FUND
MIDCAP
VALUE FUND
SMALL CAP
VALUE FUND II
LONG/SHORT
EQUITY FUND
BOND FUND
Annual Report
August 31, 2000
