-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P04KbgE320Lxrtif9qZFAvljlQiggZdgKV76GqrpIRctiZcRYpxeAeZaPHaQmdXg /c1q/IoqwX8O18YYjVIsvg== 0000935069-01-500097.txt : 20010502 0000935069-01-500097.hdr.sgml : 20010502 ACCESSION NUMBER: 0000935069-01-500097 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010228 FILED AS OF DATE: 20010501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-05518 FILM NUMBER: 1618423 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911791 MAIL ADDRESS: STREET 1: 103 BELLEVUE PKWY STREET 2: SUITE 152 CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: FUND INC /DE/ DATE OF NAME CHANGE: 19600201 N-30D 1 w01-0363.txt BOSTON PARTNERS SEMI ANNUAL REPORT 2001 BOSTON PARTNERS FAMILY OF FUNDS OF THE RBB FUND, INC. LARGE CAP VALUE FUND MID CAP VALUE FUND SMALL CAP VALUE FUND II LONG/SHORT EQUITY FUND BOND FUND SEMI-ANNUAL REPORT FEBRUARY 28, 2001 [GRAPHICS OMITTED] bp BOSTON PARTNERS ASSET MANAGEMENT, L.P. - -------------------------------------------------------------------------------- ONE PHILOSOPHY O ONE CULTURE O ONE FOCUS BOSTON PARTNERS FAMILY OF FUNDS PORTFOLIO MANAGER'S LETTER February 28, 2001 Dear Shareholder: Reversion to the mean? Reversal of fortune? Revenge of value? Depending on your investment style, any of these phrases could be used to describe the last six months ending February 2001. For Boston Partners Asset Management, the recent period was all of the above. As committed value investors, we navigated two difficult years adhering to our fundamentally based value approach. One year ago we discussed how the performance shortfall versus the S&P 500 and the Russell 1000 Value could be made up. We also discussed the probability of a broadening market and valuation adjustments and our commitment to a proven strategy and a disciplined approach to stock selection. We did not falter from these beliefs and were well positioned to benefit from the markets' renewed focus on fundamentals. While making money for its shareholders during the last six months, against the backdrop of negative performance for the overall markets, the Boston Partners Mid Cap Value Fund was our only laggard. The performance can be attributed primarily to the performance of our financial holdings in property and casualty insurers, as well as investment banks, brokers and investment management firms. Looking forward into 2001, in our opinion we believe that there continues to be an ever expanding universe of quality companies selling at a discount to their proper valuations. We remain dedicated to our strict value discipline and believe that this discipline will be rewarded over time. In our opinion our strong relative and absolute performance in the last six months, however, is not due solely to a return to value investing or a case of simply being in the right place at the right time. It appears that we had excellent stock selection and also showed skill at avoiding the losers. Evidence of our success is our strong performance relative to our value peer group. Growth managers, especially those committed to the NASDAQ bandwagon, experienced significant losses as the NASDAQ was down almost 49% for the recent six month period and well over 60% from its high. Many issues that had become household names fell by over 90%, and in some cases, closed their doors completely. Big name stocks fell as company after company could not live up to the lofty expectations embedded in their valuations. In this environment, it seems to us that the meaning of risk quickly shifted from the opportunity cost of missing the "new paradigm" to the risk of principal loss. Someone will surely ask what type of investment research was being done. There were some valuation declines, as well as cyclical earnings shortfalls. In our opinion however, even more dramatic was the failure to anticipate the significant margin pressures facing what were thought to be impregnable competitive advantages, as well as the complete evaporation of business models. It appears that the awesome growth stock years of 1998 and 1999 were unsustainable, and like other manias, the market appeared to take its revenge. Two areas of focus for us in the recent period were the insurance and energy sectors. Our bottom-up process had identified a number of stocks in these areas that we believe were fundamentally strong, yet had been ignored during the technology craze. In the insurance industry, it seemed to us that the property and casualty insurers were experiencing tangible evidence that prices were firming after suffering through two years of pricing difficulty. In our opinion, despite meeting or beating earnings expectations, many of these companies were selling below book value and at severely depressed price/earnings multiples. It appeared that even some value managers were shying away from these profitable, well run companies. In the energy sector, our analysts correctly anticipated the supply and demand imbalance in natural gas. We took positions in a number of natural gas suppliers, while at the same time adding to selective oil services stocks. The problems in natural gas inventories are even more severe than we had anticipated; not good news for the average household, but very good news for the prices of the stocks. A concurrent spike in the price of crude oil also benefited the oil stocks. We hope that our success as stock pickers in 2000 bodes well for 2001. As valuations have compressed, we believe the growth and value styles may experience choppy but similar returns in the year ahead. We believe that excess returns will not be achieved through `enhanced-indexing', but by taking specific positions around selected benchmarks. In our opinion, it seems unlikely in the near future that any one particular sector will take on the role that technology held in 1998 and 1999. Thus, we believe investment success will not be determined by sector allocation, but by individual stock selection. It seems to us that for active managers, especially those with a value bias, the "perfect storm" may well continue. We are optimistic about our opportunities. The Boston Partners Bond Fund has faired well in the recent six month period, adding nearly 7%. With minimal interest rate and yield curve exposure relative to the benchmark, the portfolio is overweighted in the higher yielding mortgage and asset-backed sectors. Within the mortgage sector we emphasize current coupon and seasoned GNMA mortgages with less prepayment risk. In the asset-backed sector we prefer AAA-rated credit card and auto securities, and within the corporate sector we focus on issuers with improving credit fundamentals. In addition to making progress in the capital markets, Boston Partners made progress on the business front as well. We added new investment professionals to our staff and plan to use the current market turmoil to add additional talent during 2001. We have more investment professionals working at Boston Partners today than at any point in the last six years. We believe that we are prepared for the future. Total Return for the Boston Partners Family of Funds from September 1, 2000 to February 28, 2001
INSTITUTIONAL SHARES INVESTOR SHARES -------------------- --------------- Boston Partners Large Cap Value Fund 10.63% 10.49% Boston Partners Mid Cap Value Fund 1.67% 1.62% Boston Partners Small Cap Value Fund II 26.21% 26.10% Boston Partners Long/Short Equity Fund 35.31% 35.18% Boston Partners Bond Fund 6.94% 6.89%
2 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--96.5% AEROSPACE/DEFENSE--2.5% Boeing Co. ............................... 2,900 $ 180,380 General Dynamics Corp. ................... 7,100 484,078 Lockheed Martin Corp. .................... 14,900 558,154 ----------- 1,222,612 ----------- AUTOMOTIVE PARTS & EQUIPMENT--1.3% Delphi Automotive Systems Corp. .......... 44,200 620,126 ----------- BANKS & SAVINGS & LOANS--8.0% Bank of America Corp. .................... 26,400 1,318,680 Comerica Inc. ............................ 9,900 630,135 First Union Corp. ........................ 28,500 922,545 National City Corp. ...................... 8,400 228,480 Toronto-Dominion Bank .................... 10,400 277,472 Wachovia Corp. ........................... 8,100 511,434 ----------- 3,888,746 ----------- BROKERAGE SERVICES--1.5% Lehman Brothers Holdings, Inc. ........... 11,000 755,150 ----------- CHEMICALS--1.5% Praxair, Inc. ............................ 16,200 722,520 ----------- COMMUNICATIONS & MEDIA--1.7% Avaya, Inc.* ............................. 60,400 845,600 ----------- COMPUTERS, SOFTWARE & SERVICES--5.6% Compaq Computer Corp. .................... 35,200 711,040 Electronic Data Systems Corp. ............ 7,800 497,874 Microsoft Corp.* ......................... 7,900 466,100 Parametric Technology Corp.* ............. 31,600 420,675 Synopsys, Inc.* .......................... 11,200 608,300 ----------- 2,703,989 ----------- CONSTRUCTION & HOUSING--0.5% Masco Corp. .............................. 10,500 245,385 ----------- CONSULTING SERVICES--0.2% KPMG Consulting Inc.* .................... 3,800 87,637 ----------- NUMBER OF SHARES VALUE --------- ----------- DIVERSIFIED--2.2% Canadian Pacific Ltd. .................... 13,500 $ 504,900 McGraw-Hill, Inc. ........................ 9,700 571,912 ----------- 1,076,812 ----------- ELECTRIC UTILITIES--3.8% Exelon Corp. ............................. 14,425 942,962 Niagara Mohawk Holdings, Inc. ................................... 18,400 316,112 Pinnacle West Capital Corp. .............. 12,200 566,690 ----------- 1,825,764 ----------- ELECTRONICS--1.6% Emerson Electric Co. ..................... 6,300 421,470 National Semiconductor Corp.* ............ 16,800 343,056 ----------- 764,526 ----------- FINANCIAL SERVICES--9.3% Citigroup, Inc. .......................... 35,020 1,722,284 Countrywide Credit Industries, Inc. ...... 22,200 981,906 Fannie Mae ............................... 4,300 342,710 H&R Block, Inc. .......................... 18,200 897,260 MBIA, Inc. ............................... 7,500 569,850 ----------- 4,514,010 ----------- INSURANCE--11.3% ACE Ltd. ................................. 29,295 1,072,197 Allmerica Financial Corp. ................ 8,480 450,712 Berkshire Hathaway, Inc.* ................ 210 491,190 CIGNA Corp. .............................. 9,400 1,030,898 SAFECO Corp. ............................. 10,200 221,850 St. Paul Companies, Inc. ................. 14,900 689,721 UnumProvident Corp. ...................... 21,500 562,655 XL Capital Ltd., Class A ................. 12,900 980,529 ----------- 5,499,752 ----------- MEDICAL SUPPLIES--1.9% Baxter International, Inc. ............... 7,400 681,466 Smith & Nephew PLC ....................... 5,400 254,340 ----------- 935,806 ----------- The accompanying notes are an integral part of the financial statements. 3 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- OIL & GAS EXPLORATION--5.6% Burlington Resources, Inc. ............... 4,500 $ 202,230 CNOOC Ltd. - ADR* ........................ 6,800 115,940 El Paso Corporation ...................... 15,564 1,094,149 ENI S.p.A. ............................... 8,100 532,575 Petroleo Brasileiro SA* .................. 16,200 462,186 Transocean Sedco Forex Inc. .............. 6,700 322,471 ----------- 2,729,551 ----------- OIL SERVICES--6.2% Conoco, Inc., Class B .................... 16,863 485,654 Exxon Mobil Corp. ........................ 13,600 1,102,280 Halliburton Co. .......................... 5,900 234,938 Tosco Corp. .............................. 6,205 248,510 USX-Marathon Group ....................... 34,100 941,842 ----------- 3,013,224 ----------- PAPER & FORESTRY PRODUCTS--2.2% Abitibi-Consolidated, Inc. ............... 14,200 110,760 International Paper Co. .................. 17,800 670,348 Weyerhaeuser Co. ......................... 5,500 295,570 ----------- 1,076,678 ----------- PHARMACEUTICALS--4.1% American Home Products Corp. ............. 5,600 345,912 Bristol-Myers Squibb Co. ................. 10,600 672,146 Johnson & Johnson ........................ 7,700 749,441 Schering-Plough Corp. .................... 5,900 237,475 ----------- 2,004,974 ----------- PRINTING SERVICES--1.0% Lexmark International, Inc.* ............. 9,800 509,600 ----------- PUBLISHING & INFORMATION SERVICES--6.5% Gannett Co., Inc. ........................ 7,500 496,050 Harcourt General, Inc. ................... 17,000 952,680 New York Times Co. ....................... 19,300 853,060 Reader's Digest Association, Inc., Class A ................................ 27,000 866,430 ----------- 3,168,220 ----------- NUMBER OF SHARES VALUE --------- ----------- REAL ESTATE--2.6% Archstone Communities Trust (REIT) ....... 5,600 $ 137,256 Avalonbay Communities, Inc. (REIT) ............................ 5,000 237,450 Equity Office Properties Trust (REIT) .... 5,900 170,038 Equity Residential Properties Trust (REIT) ........................... 4,400 229,240 Trizec Hahn Corp. ........................ 29,400 470,400 ----------- 1,244,384 ----------- RESTAURANTS--1.0% McDonald's Corp. ......................... 16,400 482,160 ----------- RETAIL TRADE--2.4% Lowe's Companies, Inc. ................... 9,900 553,212 May Department Stores Co. ................ 6,500 257,335 Target Corp. ............................. 8,900 347,100 ----------- 1,157,647 ----------- TELECOMMUNICATIONS & EQUIPMENT--9.0% 3Com Corp.* .............................. 67,200 613,200 ADC Telecommunications, Inc.* ............ 16,500 183,563 AT&T Corp. ............................... 30,877 710,171 BellSouth Corp. .......................... 12,800 537,088 SBC Communications, Inc. ................. 25,575 1,219,928 Sprint Corp. ............................. 21,500 480,740 Verizon Communications, Inc. ............. 12,442 615,879 ----------- 4,360,569 ----------- TOBACCO--3.0% Loews Corp. .............................. 4,650 505,316 UST, Inc. ................................ 33,600 969,024 ----------- 1,474,340 ----------- TOTAL COMMON STOCK (Cost $41,927,751) ................... 46,929,782 ----------- The accompanying notes are an integral part of the financial statements. 4 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- SHORT-TERM INVESTMENT--5.5% Wilmington Fund Cash Sweep 5.257% 03/01/01 ........................ $2,664 $ 2,664,306 ----------- TOTAL SHORT-TERM INVESTMENT (Cost $2,664,306) .................... 2,664,306 ----------- TOTAL INVESTMENTS--102.0% (Cost $44,592,057) ....................... 49,594,088 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(2.0%) ..................... (970,763) ----------- NET ASSETS--100.0% .......................... $48,623,325 =========== * Non-income producing. ADR-- American Depository Receipt. REIT-- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 5 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ COMMON STOCK--96.9% AEROSPACE/DEFENSE--2.4% B.F. Goodrich Co. ........................ 88,300 $ 3,570,852 ------------ AIR TRANSPORT--0.7% Continental Airlines, Inc.* .............. 23,600 1,056,100 ------------ AUTOMOTIVE PARTS & EQUIPMENT--2.6% Lear Corp.* .............................. 51,500 1,651,090 Ryder Systems, Inc. ...................... 48,500 995,220 Visteon Corp. ............................ 81,300 1,170,720 ------------ 3,817,030 ------------ BANKS & SAVINGS & LOANS--4.9% Associated Banc-Corp. .................... 44,000 1,531,750 BancWest Corp. ........................... 72,500 1,882,100 Golden State Bancorp, Inc. ............... 72,000 1,972,800 North Fork Bancorp, Inc. ................. 41,100 1,027,500 SouthTrust Corp. ......................... 17,200 727,775 ------------ 7,141,925 ------------ BUILDING PRODUCTS-AIR & HEATING--0.8% York International Corp. ................. 35,000 1,120,000 ------------ CHEMICALS--3.2% Ashland, Inc. ............................ 44,400 1,723,164 Cambrex Corp. ............................ 33,600 1,401,456 Hercules, Inc. ........................... 107,900 1,519,232 ------------ 4,643,852 ------------ COMMUNICATIONS & MEDIA--2.3% True North Communications, Inc. .......... 87,100 3,353,350 ------------ COMPUTERS, SOFTWARE & SERVICES--6.0% Adaptec, Inc.* ........................... 72,300 790,781 Apple Computer, Inc. ..................... 142,700 2,604,275 Autodesk, Inc. ........................... 20,800 793,000 Compuware Corp.* ......................... 126,700 1,306,594 Diebold, Inc. ............................ 78,000 2,164,500 Parametric Technology Corp.* ............. 80,600 1,072,988 ------------ 8,732,138 ------------ NUMBER OF SHARES VALUE --------- ------------ DIVERSIFIED--1.4% ITT Industries, Inc. ..................... 33,100 $ 1,342,205 Vishay Intertechnology, Inc.* ............ 39,200 703,248 ------------ 2,045,453 ------------ ELECTRIC UTILITIES--2.1% Nstar .................................... 38,900 1,581,285 Pinnacle West Capital Corp. .............. 32,500 1,509,625 ------------ 3,090,910 ------------ ELECTRONICS--2.7% National Semiconductor Corp.* ............ 128,100 2,615,802 Sensormatic Electronics Corp. ............ 64,500 1,412,550 ------------ 4,028,352 ------------ FINANCIAL SERVICES--10.5% A.G. Edwards, Inc. ....................... 83,500 3,245,645 Affiliated Managers Group, Inc.* ......... 42,500 2,188,750 Bear Stearns Co., Inc. ................... 42,600 2,222,868 Countrywide Credit Industries, Inc. ...... 19,200 849,216 H&R Block, Inc. .......................... 59,900 2,953,070 Legg Mason, Inc. ......................... 25,900 1,239,056 Waddell & Reed Financial, Inc. ........... 89,500 2,749,440 ------------ 15,448,045 ------------ FOOD & BEVERAGE--3.5% McCormick & Co., Inc. .................... 77,500 3,045,750 Tyson Foods, Inc. ........................ 159,100 2,006,251 ------------ 5,052,001 ------------ HEALTH CARE--4.0% Health Management Associates, Inc., Class A* ............................... 49,300 852,890 Oxford Health Plans, Inc.* ............... 68,700 2,271,393 Trigon Healthcare, Inc.* ................. 45,400 2,732,626 ------------ 5,856,909 ------------ HUMAN RESOURCES--1.5% Heidrick & Struggles International, Inc.* ................... 65,000 2,149,063 ------------ The accompanying notes are an integral part of the financial statements. 6 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ INSURANCE--9.9% Allmerica Financial Corp. ................ 13,500 $ 717,525 Fidelity National Financial, Inc. ........ 43,100 1,334,376 First American Financial Corp. ........... 63,500 1,930,400 Liberty Financial Companies, Inc. ........ 99,100 4,477,338 PartnerRe Ltd. ........................... 51,200 2,703,872 UnumProvident Corp. ...................... 125,800 3,292,186 ------------ 14,455,697 ------------ MANUFACTURING--3.1% American Standard Co., Inc.* ............. 65,000 3,680,950 Viasystems Group, Inc.* .................. 134,400 795,648 ------------ 4,476,598 ------------ MEDICAL EQUIPMENT AND SUPPLIES--3.3% Apogent Technologies, Inc.* .............. 89,700 1,801,176 Inamed Corp.* ............................ 80,000 1,780,000 Sybron Dental Specialties, Inc.* ......... 62,666 1,231,387 ------------ 4,812,563 ------------ OIL & GAS EXPLORATION--5.8% Gulf Canada Resources Ltd. ............... 140,900 793,267 Kerr-McGee Corp. ......................... 38,400 2,482,176 Ocean Energy, Inc. ....................... 58,600 1,054,800 Pioneer Natural Resources Co. ............ 85,500 1,440,675 Swift Energy Co.* ........................ 83,100 2,675,820 ------------ 8,446,738 ------------ OIL FIELD MACHINERY & EQUIPMENT--0.6% Grant Prideco Inc.* ...................... 49,900 911,673 ------------ PACKAGING & CONTAINERS--3.7% Pactiv Corp.* ............................ 261,600 3,518,520 Sealed Air Corp.* ........................ 47,900 1,875,285 ------------ 5,393,805 ------------ PAPER & FORESTRY PRODUCTS--2.9% Abitibi-Consolidated, Inc. ............... 171,600 1,338,480 Mead Corp. ............................... 47,300 1,295,547 Temple-Inland, Inc. ...................... 34,500 1,641,855 ------------ 4,275,882 ------------ NUMBER OF SHARES VALUE --------- ------------ PUBLISHING & INFORMATION SERVICES--2.7% Reader's Digest Association, Inc. (The), Class A ......................... 71,500 $ 2,294,435 Valassis Communications, Inc. ............ 56,900 1,720,087 ------------ 4,014,522 ------------ REAL ESTATE--2.3% Trizec Hahn Corp. ........................ 212,800 3,404,800 ------------ RETAIL--5.1% Abercrombie & Fitch Co., Class A* ............................... 53,500 1,517,260 AnnTaylor Stores Corp.* .................. 38,600 997,038 J. C. Penney Co., Inc. ................... 54,400 880,192 Ross Stores, Inc. ........................ 96,400 2,024,400 Venator Group, Inc. ...................... 179,100 1,971,891 ------------ 7,390,781 ------------ STEEL--1.0% USX-U.S. Steel Group ..................... 92,600 1,411,224 ------------ TELECOMMUNICATIONS & EQUIPMENT--3.6% 3Com Corp.* .............................. 26,400 240,900 Avaya Inc.* .............................. 107,700 1,507,800 Harris Corp. ............................. 138,000 3,465,180 ------------ 5,213,880 ------------ TEXTILES & APPAREL--0.5% Tommy Hilfiger Corp.* .................... 52,500 798,000 ------------ TOYS--0.6% Mattel, Inc. ............................. 53,800 912,448 ------------ TRAVEL SERVICES--2.7% Canadian Pacific Ltd. .................... 90,400 3,380,960 Royal Caribbean Cruises Ltd. ............. 21,200 598,900 ------------ 3,979,860 ------------ WHOLESALE-WAREHOUSE--0.5% BJ's Wholesale Club, Inc.* ............... 15,922 724,610 ------------ TOTAL COMMON STOCK (Cost $138,347,857) .................. 141,729,061 ------------ The accompanying notes are an integral part of the financial statements. 7 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE --------- ------------ SHORT TERM INVESTMENT--1.5% Wimington Fund Cash Sweep 5.257% 03/01/01 ........................ $ 2,126 $ 2,126,095 ------------ TOTAL SHORT TERM INVESTMENT (Cost $2,126,095) .................... 2,126,095 ------------ TOTAL INVESTMENTS--98.4% (Cost $140,473,952) ...................... 143,855,156 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--1.6% ..................... 2,351,490 ------------ NET ASSETS--100.0% .......................... $146,206,646 ============ - ---------- * Non-income producing. The accompanying notes are an integral part of the financial statements. 8 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--92.5% AEROSPACE/DEFENSE--1.0% DONCASTERS PLC ADR* ...................... 4,600 $ 101,200 Herley Industries, Inc.* ................. 3,700 54,575 ----------- 155,775 ----------- AGRICULTURE--0.5% Agribrands International, Inc.* .......... 1,500 80,655 ----------- AUTOMOTIVE--2.4% Coachmen Industries, Inc. ................ 15,600 174,720 Dollar Thrifty Automotive Group, Inc.* ........................... 6,000 119,700 Monaco Coach Corp.* ...................... 2,300 46,046 National R.V. Holdings, Inc.* ............ 3,500 37,625 ----------- 378,091 ----------- BANKS & SAVINGS & LOANS--1.8% Flagstar Bancorp, Inc. ................... 3,200 72,600 IndyMac Bancorp, Inc.* ................... 5,100 134,691 Local Financial Corp.* ................... 2,800 35,000 Northrim Bank ............................ 4,100 47,919 ----------- 290,210 ----------- BROKERAGE SERVICES--1.1% CSFBdirect* .............................. 23,900 81,260 Wit Soundview Group, Inc.* ............... 28,800 85,500 ----------- 166,760 ----------- BUSINESS & PUBLIC SERVICES--6.1% AHL Services, Inc.* ...................... 4,200 37,012 American Management Systems, Inc.* ......................... 4,600 101,775 Modis Professional Services, Inc.* ........................ 42,400 259,912 National Processing, Inc.* ............... 8,800 158,400 Staff Leasing, Inc.* ..................... 10,200 33,150 Ventiv Health, Inc.* ..................... 6,500 105,219 Wackenhut Corp., Class A* ................ 16,000 171,520 Wackenhut Corrections Corp.* ............. 9,200 86,112 ----------- 953,100 ----------- NUMBER OF SHARES VALUE --------- ----------- CABLE--0.4% Liberty Corp. ............................ 1,600 $ 60,736 ----------- CHEMICALS--0.3% ChemFirst, Inc. .......................... 1,900 47,500 ----------- COMPUTERS, SOFTWARE & SERVICES--5.2% CACI International, Inc.* ................ 5,600 152,600 CompuCom Systems Inc.* ................... 31,800 77,512 Network Associates, Inc.* ................ 22,700 146,841 PC-Tel, Inc.* ............................ 6,300 57,094 Quantum Corp.-Hard Disk Drive* ........... 9,800 102,900 Recoton Corp.* ........................... 14,100 162,150 Robotic Vision Systems, Inc.* ............ 18,200 50,050 Structural Dynamics Research Corp.* ........................ 5,800 76,850 ----------- 825,997 ----------- CONSTRUCTION & BUILDING MATERIALS--2.4% Butler Manufacturing Co. ................. 3,700 97,014 Dal-Tile International, Inc.* ............ 8,400 134,400 Granite Construction, Inc. ............... 4,600 152,260 ----------- 383,674 ----------- CONSTRUCTION & HOUSING--0.5% Modtech Holdings Inc.* ................... 6,100 41,937 Palm Harbor Homes, Inc.* ................. 2,300 42,550 ----------- 84,487 ----------- CONSULTING SERVICES--6.1% Charles River Associates, Inc.* .......... 9,100 72,800 FTI Consulting, Inc.* .................... 9,100 104,650 Navigant Consulting, Inc.* ............... 100,800 584,640 Right Management Consultants, Inc.* ..................... 8,600 203,175 ----------- 965,265 ----------- CONSUMER PRODUCTS & SERVICES--3.6% Ogden Corp.* ............................. 7,900 128,217 Pittston Brink's Group ................... 4,000 79,400 Silgan Holdings, Inc.* ................... 8,600 98,362 The accompanying notes are an integral part of the financial statements. 9 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- CONSUMER PRODUCTS & SERVICES--(CONTINUED) Stewart Enterprises, Inc. ................ 42,300 $ 141,441 Sykes Enterprises, Inc.* ................. 26,400 121,275 ----------- 568,695 ----------- DATA PROCESSING & REPRODUCTION--0.7% Global Payments, Inc. (W I)* ............. 5,400 102,600 ----------- DISTRIBUTION--2.0% Daisytek International Corp.* ............ 17,400 156,328 Owens & Minor, Inc. ...................... 10,200 152,592 ----------- 308,920 ----------- ELECTRIC UTILITIES--0.8% El Paso Electric Co. ..................... 9,300 118,575 ----------- ELECTRONICS--1.7% Entegris, Inc.* .......................... 7,900 62,706 Integrated Electrical Services* .......... 14,800 89,392 Kent Electronics Corp.* .................. 4,200 67,200 Pioneer-Standard Electronics, Inc. ....... 4,200 51,450 ----------- 270,748 ----------- ENTERTAINMENT--0.7% Topps Co., Inc.* ......................... 10,500 102,375 ----------- FINANCIAL SERVICES--4.6% Advanta Corp., Class B ................... 14,800 179,450 BKF Capital Group, Inc. .................. 5,600 128,800 Brookline Bancorp, Inc.* ................. 2,700 37,800 Federal Agricultural Mortgage Corp.* ........................ 5,500 142,945 John Nuveen Co. .......................... 1,400 76,510 MicroFinancial, Inc. ..................... 5,100 65,790 Student Loan Corp. ....................... 1,400 88,886 ----------- 720,181 ----------- FOOD & BEVERAGE--0.6% Dole Food Co., Inc. ...................... 4,200 69,300 M&F Worldwide Corp.* ..................... 7,300 31,755 ----------- 101,055 ----------- NUMBER OF SHARES VALUE --------- ----------- HEALTHCARE--3.0% AdvancePCS* .............................. 5,300 $ 235,187 Nature's Sunshine Products, Inc. ......... 6,900 52,612 National Dentex Corp.* ................... 1,400 28,087 Renal Care Group, Inc.* .................. 3,900 103,106 Sunquest Information Systems, Inc.* ......................... 4,600 54,338 ----------- 473,330 ----------- INSURANCE--12.9% Amerus Group Company ..................... 4,200 122,850 Annuity and Life Re (Holdings) Ltd. ........................ 9,500 267,188 Arch Capital Group Ltd.* ................. 4,800 76,800 CNA Surety Corp. ......................... 9,500 126,445 Hilb, Rogal & Hamilton Co. ............... 6,000 229,500 Insurance Auto Auctions, Inc.* ........... 4,400 58,850 IPC Holdings Ltd.* ....................... 8,400 196,875 LandAmerica Financial Group, Inc. ........ 4,200 150,780 MIIX Group, Inc. (The) ................... 4,600 34,270 Mutual Risk Management Ltd. .............. 19,200 217,920 NYMAGIC, Inc. ............................ 2,800 51,520 Penn-America Group, Inc. ................. 4,600 42,780 PXRE Group Ltd. .......................... 8,300 142,179 Scottish Annuity & Life Holdings, Ltd. ......................... 9,100 147,875 W.R. Berkley Corp. ....................... 4,000 170,750 ----------- 2,036,582 ----------- MACHINERY & ENGINEERING--0.4% Lindsay Manufacturing Co. ................ 2,800 58,660 ----------- MANUFACTURING--4.3% CLARCOR, Inc. ............................ 2,800 68,600 Exponent, Inc.* .......................... 5,100 58,650 LSI Industries, Inc. ..................... 3,700 74,694 Quixote Corp. ............................ 6,100 139,538 Tommy Hilfiger Corp.* .................... 12,100 183,920 Toro Co. (The) ........................... 3,300 146,520 ----------- 671,922 ----------- The accompanying notes are an integral part of the financial statements. 10 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- MEDICAL SUPPLIES--2.5% Scott Technologies,Inc.* ................. 2,500 $ 56,875 Sola International, Inc.* ................ 25,000 230,000 The Cooper Companies, Inc. ............... 2,600 106,340 ----------- 393,215 ----------- METALS & MINING--0.3% Allegheny Technologies, Inc. ............. 3,000 53,160 ----------- OIL & GAS EXPLORATION--3.2% Canadian 88 Energy Corp.* ................ 23,000 44,850 Exco Resources ........................... 2,600 43,225 Gulf Indonesia Resources Ltd. ............ 12,000 113,880 Midcoast Energy Resources, Inc. .......... 3,500 84,875 Parker Drilling Co. ...................... 13,100 80,565 Swift Energy Co.* ........................ 4,200 135,240 ----------- 502,635 ----------- OIL SERVICES--2.0% Evergreen Resources, Inc.* ............... 4,400 138,820 Frontier Oil Corp.* ...................... 12,100 104,060 Tesoro Petroleum Corp.* .................. 6,100 77,104 ----------- 319,984 ----------- PACKAGING & CONTAINERS--1.3% Ivex Packaging Corp.* .................... 6,000 78,000 Tupperware Corp. ......................... 5,600 132,160 ----------- 210,160 ----------- PHARMACEUTICALS--0.5% Perrigo Co.* ............................. 7,400 74,925 ----------- PUBLISHING & INFORMATION SERVICES--1.9% Pulitzer, Inc. ........................... 2,300 118,680 R.H. Donnelley Corp.* .................... 5,100 139,740 Value Line, Inc. ......................... 900 36,900 ----------- 295,320 ----------- REAL ESTATE--5.1% Capital Automotive REIT .................. 5,500 78,031 Cavalier Homes, Inc.* .................... 34,700 60,725 Insignia Financial Group, Inc.* .......... 14,000 182,700 NUMBER OF SHARES VALUE --------- ----------- REAL ESTATE--(CONTINUED) Jones Lang Lasalle, Inc.* ................ 4,600 $ 64,860 LNR Property Corp. ....................... 5,600 157,360 Redwood Trust, Inc. ...................... 6,300 120,834 Trammell Crow Co.* ....................... 11,600 143,260 ----------- 807,770 ----------- RETAIL--4.9% Barnes & Noble, Inc.* .................... 6,500 175,500 Finish Line, Inc. (The), Class A* ........ 8,700 60,356 InterTAN, Inc.* .......................... 5,500 68,750 J. Jill Group, Inc.* ..................... 10,200 184,875 School Specialty, Inc.* .................. 4,000 88,250 Wilsons, The Leather Experts, Inc.* ......................... 11,400 200,213 ----------- 777,944 ----------- TELECOMMUNICATIONS--1.3% Belden, Inc. ............................. 5,500 135,740 MasTec, Inc.* ............................ 4,700 70,406 ----------- 206,146 ----------- TOBACCO--3.1% Dimon Inc. ............................... 30,900 270,684 Standard Commercial Corp. ................ 8,600 104,060 Universal Corp. .......................... 2,800 105,728 ----------- 480,472 ----------- TOYS--1.1% JAKKS Pacific, Inc.* ..................... 13,200 170,775 ----------- TRANSPORTATION--1.8% Fritz Companies, Inc.* ................... 3,900 43,631 Knightsbridge Tankers Ltd. ............... 1,900 42,275 Landstar System, Inc.* ................... 1,400 93,188 XTRA Corp.* .............................. 2,125 101,384 ----------- 280,478 ----------- WATER UTILITIES--0.4% Azurix Corp.* ............................ 8,100 67,716 ----------- TOTAL COMMON STOCK (Cost $13,803,191) ................... 14,566,593 ----------- The accompanying notes are an integral part of the financial statements. 11 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE --------- ----------- SHORT-TERM INVESTMENT--15.0% Wilmington Fund Cash Sweep 5.257% 03/01/01 ........................ $ 2,361 $ 2,360,736 ----------- TOTAL SHORT-TERM INVESTMENT (Cost $2,360,736) .................... 2,360,736 ----------- TOTAL INVESTMENTS--107.5% (Cost $16,163,927) ....................... 16,927,329 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(7.5%) ..................... (1,186,449) ----------- NET ASSETS--100.0% .......................... $15,740,880 =========== - ---------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 12 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- LONG POSITIONS--115.5% DOMESTIC COMMON STOCK--87.2% AEROSPACE/DEFENSE--2.8% Ducommun, Inc. ........................... 3,500 $ 44,450 Fairchild Corp. (The) .................... 3,100 18,600 Gencorp, Inc. ............................ 3,300 39,600 ----------- 102,650 ----------- AGRICULTURE--1.1% Pilgrim's Pride Corp. .................... 3,800 38,836 ----------- AUTOMOTIVE--0.5% Anc Rental Corp.* ........................ 6,200 18,988 ----------- BANKS & SAVINGS & LOANS--2.9% Bay View Capital Corp. ................... 4,700 29,610 Coastal Bancorp, Inc. .................... 400 10,450 Iberiabank Corp. ......................... 1,300 32,500 Local Financial Corp.* ................... 1,200 15,000 Unionbancorp, Inc. ....................... 1,600 19,300 ----------- 106,860 ----------- BROADCASTING & PUBLISHING--3.0% Fisher Companies, Inc. ................... 100 5,900 Gray Communications Systems, Inc. .......................... 2,000 36,100 Liberty Corp. ............................ 800 30,368 Lynch Interactive Corp.* ................. 800 37,400 Sunshine Pcs Corp.* ...................... 600 ----------- 109,768 ----------- BURGLARY, FIRE, & MEDICAL ALARM SYSTEMS--0.5% The Wackenhut Corp., Class A ............. 1,100 18,260 ----------- BUSINESS & PUBLIC SERVICES--4.1% Interep National Radio Sales, Inc.* ........................... 10,600 55,650 Kroll-O'Gara Co.* ........................ 10,200 56,738 Ventiv Health, Inc.* ..................... 2,200 35,613 ----------- 148,001 ----------- NUMBER OF SHARES VALUE --------- ----------- CHEMICALS--4.0% Arch Chemicals, Inc. ..................... 1,400 $ 27,930 ChemFirst, Inc. .......................... 1,100 27,500 Methanex Corp.* .......................... 4,800 30,000 Tetra Technologies, Inc.* ................ 3,000 62,100 ----------- 147,530 ----------- COMPUTERS, SOFTWARE & SERVICES--9.2% Adaptec, Inc.* ........................... 2,100 22,969 BMC Software, Inc.* ...................... 1,000 30,125 Borland Software Corp.* .................. 3,700 29,831 Computer Network Technology Corp.* ...................... 2,400 29,550 Compuware Corp.* ......................... 2,700 27,844 Intel Corp. .............................. 800 22,850 Metasolv Software, Inc.* ................. 4,700 79,900 Micron Electronics* ...................... 6,100 22,303 Network Associates, Inc.* ................ 3,700 23,934 PC-Tel, Inc.* ............................ 1,300 11,781 Virage Logic Corp.* ...................... 2,400 36,300 ----------- 337,387 ----------- CONSTRUCTION & BUILDING MATERIALS--1.1% Willbros Group, Inc.* .................... 4,300 39,517 ----------- CONSUMER DURABLES--1.4% Gaylord Containers Corp., Class A* ............................... 43,100 49,996 ----------- CONSUMER PRODUCTS & SERVICES--0.9% Insignia Financial Group, Inc.* .......... 2,500 32,625 ----------- DATA PROCESSING & REPRODUCTION--0.3% Efunds Corp.* ............................ 685 10,446 ----------- DIVERSIFIED--2.3% ITT Industries, Inc. ..................... 700 28,385 Ogden Corp. .............................. 1,400 22,722 Pittston Brink's Group ................... 1,700 33,745 ----------- 84,852 ----------- ELECTRIC UTILITIES--1.3% Sierra Pacific Resources ................. 3,500 48,510 ----------- The accompanying notes are an integral part of the financial statements. 13 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- ELECTRONIC COMP. & INSTRUMENTS--6.6% EDO Corp. ................................ 3,400 $ 31,620 Fiberstars, Inc.* ........................ 2,900 19,575 Hubbell, Inc., Class B ................... 1,000 27,950 Input/Output, Inc.* ...................... 2,700 28,431 National Semiconductor Corp.* ............ 1,100 22,462 Parker Hannifin Corp. .................... 1,200 51,636 PCD, Inc.* ............................... 2,100 13,781 Rockwell International Corp. ............. 400 18,384 Vishay Intertechnology, Inc.* ............ 1,500 26,910 ----------- 240,749 ----------- ENERGY EQUIPMENT & SERVICES--0.3% Rentech, Inc.* ........................... 9,800 12,250 ----------- ENGINEERING--0.7% Exponent, Inc.* .......................... 2,300 26,450 ----------- FINANCIAL SERVICES--3.3% HF Financial Corp. ....................... 1,700 18,700 Scottish Annuity & Life Holdings, Ltd. ......................... 2,700 43,875 Tremont Advisers, Inc.* .................. 4,900 58,188 ----------- 120,763 ----------- FOOD & BEVERAGE--0.5% Tyson Foods, Inc. ........................ 1,400 17,654 ----------- HEALTH & PERSONAL CARE--0.6% NBTY, Inc.* .............................. 3,000 20,906 ----------- HEALTHCARE--1.4% Health Management Associates, Inc., Class A* ......................... 1,300 22,490 Manor Care, Inc.* ........................ 1,100 26,829 ----------- 49,319 ----------- HOTELS AND MOTELS--0.6% Meristar Hotels & Resorts, Inc.* ......... 11,900 23,086 ----------- INDUSTRIAL GOODS & MATERIALS--0.9% Scott Technologies, Inc., Class B ........ 1,400 31,850 ----------- NUMBER OF SHARES VALUE --------- ----------- INSURANCE--1.7% UICI* .................................... 3,400 $ 27,880 W.R. Berkley Corp. ....................... 800 34,150 ----------- 62,030 ----------- MANUFACTURING--2.0% M&F Worldwide Corp.* ..................... 4,000 17,400 Phelps Dodge Corp. ....................... 500 23,000 York International Corp. ................. 1,000 32,000 ----------- 72,400 ----------- MEDICAL EQUIPMENT--1.3% Vidamed, Inc.* ........................... 12,000 47,250 ----------- METALS & MINING--4.2% Hawk Corp.* .............................. 1,600 10,880 Ladish Co., Inc.* ........................ 3,100 38,363 Titanium Metals Corp. .................... 5,200 44,252 USX-US Steel Group ....................... 3,900 59,436 ----------- 152,931 ----------- OIL & GAS EXPLORATION--10.6% Chesapeake Energy Corp. .................. 9,000 82,080 Encal Energy Ltd.* ....................... 7,400 57,128 Esenjay Exploration ...................... 7,400 35,150 Exco Resources, Inc.* .................... 1,900 31,588 Friede Goldman Halter, Inc.* ............. 8,000 21,680 Parker Drilling Co. ...................... 5,300 32,595 Pioneer Natural Resources Co. ............ 5,000 84,250 Swift Energy Co.* ........................ 1,300 41,860 ----------- 386,331 ----------- OIL SERVICES--0.8% Lufkin Industries, Inc. .................. 600 13,003 Mitcham Industries, Inc.* ................ 3,400 17,425 ----------- 30,428 ----------- PACKAGING & CONTAINERS--0.5% Ivex Packaging Corp.* .................... 1,400 18,200 ----------- PAPER & FORESTRY PRODUCTS--0.7% Abitibi-Consolidated, Inc. ............... 3,100 24,180 ----------- The accompanying notes are an integral part of the financial statements. 14 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- PHARMACEUTICALS--2.7% Caremark Rx, Inc.* ....................... 3,100 $ 43,400 Rite Aid Corp. ........................... 10,300 53,766 ----------- 97,166 ----------- PUBLISHING & INFORMATION SERVICES--1.1% Pulitzer, Inc. ........................... 400 20,640 Value Line, Inc. ......................... 500 20,500 ----------- 41,140 ----------- REAL ESTATE--1.9% Anthracite Capital, Inc. ................. 3,900 36,660 FBR Asset Investment Corp. ............... 1,500 31,313 ----------- 67,973 ----------- RETAIL TRADE--1.8% BJ's Wholesale Club, Inc.* ............... 700 31,857 Steven Madden Ltd.* ...................... 2,400 32,700 ----------- 64,557 ----------- STEEL--0.9% Maverick Tube Corp.* ..................... 1,600 32,480 ----------- TELECOMMUNICATIONS & EQUIPMENT--1.6% ADC Telecommunications, Inc.* ............ 2,600 28,925 Avaya Inc.* .............................. 2,000 28,000 ----------- 56,925 ----------- TOYS--0.8% Hasbro, Inc. ............................. 2,300 28,244 ----------- TRANSPORTATION--2.1% OMI Corp.* ............................... 6,100 44,895 Ryder Systems, Inc. ...................... 1,500 30,764 ----------- 75,659 ----------- TRAVEL SERVICES--2.2% Carnival Corp. ........................... 1,400 46,676 P & O Princess Cruises, PLC .............. 1,600 34,080 ----------- 80,756 ----------- TOTAL DOMESTIC COMMON STOCK (Cost $3,000,331) .................... 3,175,903 ----------- NUMBER OF SHARES VALUE --------- ----------- FOREIGN COMMON STOCKS--0.4% CANADA--0.4% OIL & GAS EXPLORATION--0.4% Antrim Energy Warrants* C$1.50** 11/30/01 ...................... 833 $ 54 Antrim Energy, Inc.* ..................... 21,666 16,277 ----------- TOTAL FOREIGN COMMON STOCKS (Cost $18,736) ....................... 16,331 ----------- TOTAL COMMON STOCK (Cost $3,019,067) .................... 3,192,234 ----------- PAR (000) --------- U.S. TREASURY BOND--13.7% U.S. Treasury Notes 4.875% 03/31/01 ........................ $500 499,844 ----------- TOTAL U.S. TREASURY BOND (Cost $499,773) ...................... 499,844 ----------- SHORT-TERM INVESTMENT--14.2% Wilmington Fund Cash Sweep 5.257% 03/01/01 ........................ 516 515,544 ----------- TOTAL SHORT-TERM INVESTMENT (Cost $515,544) ...................... 515,544 ----------- TOTAL LONGPOSITIONS--115.5% (Cost $4,034,384) .................... 4,207,622 ----------- NUMBER OF SHARES --------- SECURITIES SOLD SHORT--(75.0%) ADVERTISING--(0.7%) Getty Images, Inc.* ...................... (1,000) (25,125) ----------- AEROSPACE/DEFENSE--(2.0%) Curtiss-Wright Corp. ..................... (500) (23,950) SPACEHAB, Inc.* .......................... (700) (1,903) US Airways Group, Inc. ................... (1,100) (45,430) ----------- (71,283) ----------- AUTOMOTIVE PARTS & EQUIPMENT--(0.7%) Dana Corp. ............................... (1,400) (23,702) ----------- The accompanying notes are an integral part of the financial statements. 15 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- BUILDING & BUILDING MATERIALS--(3.2%) ABM Industries, Inc. ..................... (600) $ (19,380) Fastenal Co. ............................. (700) (42,000) KB Home .................................. (900) (25,155) Washington Group International, Inc.* ................... (3,400) (31,552) ----------- (118,087) ----------- BUSINESS & PUBLIC SERVICES--(2.0%) Gaiam, Inc.* ............................. (1,000) (12,625) Labor Ready, Inc.* ....................... (500) (2,000) Omnicom Group, Inc. ...................... (500) (45,345) Teletech Holdings* ....................... (800) (12,400) ----------- (72,370) ----------- CELLULAR/WIRELESS--(0.7%) Winstar Communications, Inc.* ............ (2,100) (26,513) ----------- CHEMICALS--(1.4%) Albemarle Corp. .......................... (900) (21,465) Cabot Microelectronics Corp.* ............ (300) (18,169) Eco Soil Systems, Inc.* .................. (1,000) (781) Ferro Corp. .............................. (400) (9,396) ----------- (49,811) ----------- COMPUTERS, SOFTWARE & SERVICES--(6.2%) Affiliated Computer Services, Inc.* ...... (500) (31,445) Answerthink, Inc.* ....................... (1,100) (7,356) Artificial Life, Inc.* ................... (1,900) (3,800) Auspex Systems, Inc.* .................... (1,300) (6,256) Cais Internet, Inc.* ..................... (1,400) (1,531) Centillium Communications, Inc.* ......... (500) (14,437) Concurrent Computer Corp.* ............... (900) (4,725) ConSyGen, Inc.* .......................... (200) (28) Creo Products, Inc.* ..................... (500) (9,844) Eclipsys Corp.* .......................... (700) (14,788) Infocus Corp.* ........................... (1,800) (36,563) Infosys Technologies Ltd. ................ (400) (36,800) Interliant, Inc.* ........................ (600) (1,763) Interwoven, Inc.* ........................ (500) (8,281) Lifeminders, Inc.* ....................... (400) (800) Mapinfo Corp.* ........................... (100) (2,781) Netscout Systems, Inc.* .................. (1,800) (13,050) NUMBER OF SHARES VALUE --------- ----------- COMPUTERS, SOFTWARE & SERVICES--(CONTINUED) Nvidia Corp.* ............................ (100) $ (4,469) Selectica, Inc.* ......................... (100) (822) Support.com, Inc.* ....................... (500) (4,922) Vitech America, Inc.* .................... (100) (353) Xircom, Inc.* ............................ (900) (22,106) ----------- (226,920) ----------- CONSUMER DURABLES--(0.3%) AEP Industries, Inc. ..................... (300) (12,525) ----------- CONSUMER PRODUCTS & SERVICES--(2.7%) Blyth Industries, Inc. ................... (700) (16,352) Eastman Kodak Co. ........................ (1,100) (49,500) MemberWorks, Inc.* ....................... (300) (7,763) Yankee Candle Co., Inc.* ................. (1,800) (24,030) ----------- (97,645) ----------- DISTRIBUTION--(0.9%) Oakley, Inc.* ............................ (1,900) (31,920) ----------- DIVERSIFIED--(0.4%) Roper Industries, Inc. ................... (400) (15,512) ----------- ELECTRONIC COMP. & INSTRUMENTS--(7.6%) Applied Micro Circuits Corp.* ............ (700) (18,725) Axt, Inc.* ............................... (100) (2,256) Epcos AG* ................................ (400) (25,620) Flextronics International Ltd.* .......... (100) (2,650) Gentex Corp.* ............................ (1,100) (27,569) International Rectifier Corp.* ........... (900) (29,700) Jabil Circuit Inc.* ...................... (100) (2,248) Lernout & Hauspie Speech Products* .............................. (300) (783) Molecular Devices Corp.* ................. (300) (20,156) Molex, Inc. .............................. (400) (14,525) Scansource, Inc.* ........................ (800) (31,888) Signal Technology Corp.* ................. (400) (3,300) Symbol Technologies, Inc. ................ (1,700) (78,795) Universal Display Corp.* ................. (1,000) (9,375) Vicor Corp.* ............................. (400) (8,600) ----------- (276,190) ----------- The accompanying notes are an integral part of the financial statements. 16 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- ENERGY--(2.1%) Dynegy, Inc. ............................. (500) $ (23,500) Mirant Corp.* ............................ (1,100) (27,500) NRG Energy, Inc.* ........................ (1,000) (27,700) ----------- (78,700) ----------- ENTERTAINMENT--(0.5%) 4Kids Entertainment, Inc.* ............... (1,500) (20,220) ----------- FINANCIAL SERVICES--(5.1%) A.B. Watley Group, Inc.* ................. (1,900) (12,112) Americredit Corp.* ....................... (400) (13,672) Ameritrade Holding Corp.* ................ (1,400) (11,462) ASTA Funding, Inc.* ...................... (1,200) (7,013) Bank of New York Company, Inc., (The) ............................ (600) (31,068) Compucredit Corp.* ....................... (3,400) (30,175) E-LOAN, Inc.* ............................ (400) (563) Greater Bay Bancorp ...................... (600) (20,025) MBNA Corp. ............................... (900) (29,592) Newtek Capital, Inc.* .................... (800) (2,880) Nextcard, Inc.* .......................... (2,700) (25,313) Siebert Financial Corp. .................. (300) (1,575) Stockwalk Group, Inc.* ................... (600) (1,566) ----------- (187,016) ----------- FOOD & BEVERAGE--(4.2%) Dreyer's Grand Ice Cream, Inc. ........... (800) (24,050) Glacier Water Services, Inc.* ............ (300) (2,798) Hain Celestial Group, Inc.* .............. (800) (24,800) Michael Foods, Inc. ...................... (500) (14,719) Robert Mondavi Corp., (The)* ............. (700) (34,038) Spigadoro, Inc.* ......................... (600) (498) United Natural Foods, Inc.* .............. (600) (7,650) Wm. Wrigley Jr. Co. ...................... (250) (23,280) Winn-Dixie Stores, Inc. .................. (900) (22,986) ----------- (154,819) ----------- HEALTH & PERSONAL CARE--(0.3%) Elizabeth Arden, Inc.* ................... (800) (11,150) ----------- HEALTHCARE--(0.5%) Sunrise Assisted Living, Inc.* ........... (700) (16,625) ----------- NUMBER OF SHARES VALUE --------- ----------- HOUSEHOLD PRODUCTS--(0.6%) Oneida Ltd. .............................. (1,300) $ (22,100) ----------- INTERNET--(1.0%) Alloy Online, Inc.* ...................... (2,400) (29,400) Autobytel.com, Inc.* ..................... (300) (666) Autoweb.com, Inc.* ....................... (400) (138) Internet America, Inc.* .................. (700) (591) LivePerson, Inc.* ........................ (1,100) (1,616) netGuru, Inc.* ........................... (300) (1,106) quepasa.com, Inc.* ....................... (800) (100) Sunhawk.com Corp.* ....................... (400) (1,738) ----------- (35,355) ----------- MACHINERY & ENGINEERING--(1.4%) Graco, Inc. .............................. (650) (17,420) JLG Industries, Inc. ..................... (1,700) (22,100) Johnson Controls, Inc. ................... (200) (13,296) ----------- (52,816) ----------- MANUFACTURING--(0.4%) American Woodmark Corp. .................. (700) (13,738) ----------- MEDICAL EQUIPMENT--(4.6%) Abaxis, Inc.* ............................ (2,900) (14,863) Affymetrix, Inc.* ........................ (200) (11,459) Endocare, Inc.* .......................... (1,500) (18,000) Hycor Biomedical, Inc.* .................. (1,000) (7,437) Novoste Corp.* ........................... (800) (26,800) Physiometrix, Inc.* ...................... (1,100) (9,625) ResMed, Inc.* ............................ (900) (40,464) Schick Technologies, Inc.* ............... (300) (270) Stryker Corp. ............................ (300) (16,845) The Med-Design Corp.* .................... (800) (12,600) United Therapeutics Corp.* ............... (300) (3,637) Virbac Corp.* ............................ (1,500) (5,062) ----------- (167,062) ----------- MEDICAL SUPPLIES--(1.5%) Luminex Corp.* ........................... (400) (12,325) Myriad Genetic* .......................... (200) (11,075) Zoll Medical Corp.* ...................... (700) (29,444) ----------- (52,844) ----------- The accompanying notes are an integral part of the financial statements. 17 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- OIL & GAS EXPLORATION--(0.7%) Goodrich Petroleum Corp.* ................ (4,500) $ (23,850) ----------- PAPER & FORESTRY PRODUCTS--(0.4%) Westvaco Corp. ........................... (500) (13,105) ----------- PHARMACEUTICALS--(6.5%) Abgenix, Inc.* ........................... (400) (13,600) Andrx Group* ............................. (700) (40,086) Cell Therapeutics, Inc.* ................. (800) (19,050) Corixa Corp.* ............................ (900) (13,950) Ergo Science Corp.* ...................... (1,000) (781) Gilead Sciences, Inc.* ................... (600) (22,425) Intrabiotics Pharmaceuticals, Inc.* ...... (600) (3,000) Sepracor, Inc.* .......................... (200) (10,387) Shaman Pharmaceuticals, Inc.* ............ (1) The Medicines Co.* ....................... (1,400) (18,550) Tularik, Inc.* ........................... (1,100) (28,669) Vaxgen, Inc.* ............................ (1,700) (42,394) Vertex Pharmaceutical* ................... (500) (24,875) ----------- (237,767) ----------- PUBLISHING & INFORMATION SERVICES--(0.7%) Primedia, Inc.* .......................... (2,574) (24,462) ----------- RADIO & TELEVISION MEDIA--(1.2%) Cox Radio, Inc.* ......................... (1,000) (22,010) Pegasus Communications Corp.* ............ (800) (22,350) ----------- (44,360) ----------- REAL ESTATE--(1.9%) Alexandria Real Estate Equities, Inc. .... (500) (18,985) CenterPoint Properties Corp. ............. (500) (23,025) Federal Realty Investment Trust .......... (400) (7,920) Vornado Realty Trust ..................... (500) (18,905) ----------- (68,835) ----------- RECREATION--(0.5%) Bally Total Fitness Holding Corp.* ....... (600) (18,900) ----------- NUMBER OF SHARES VALUE --------- ----------- RESTAURANTS, HOTELS & CASINOS--(2.0%) CCA Companies, Inc.* ..................... (600) $ (54) Darden Restaurants, Inc. ................. (700) (15,211) Garden Fresh Restaurant Corp.* ........... (200) (1,450) O'Charley's, Inc.* ....................... (700) (12,600) Panera Bread Co.* ........................ (1,100) (25,575) Papa John's International, Inc.* ......... (500) (11,937) Uno Restaurant Corp.* .................... (530) (4,452) ----------- (71,279) ----------- RETAIL--(2.4%) AutoZone, Inc.* .......................... (400) (10,104) Costco Wholesale Corp. ................... (1,200) (50,100) Cost-U-Less, Inc.* ....................... (500) (781) Factory 2-U Store, Inc.* ................. (300) (11,437) GenesisIntermedia.com, Inc.* ............. (200) (4,275) Hollywood Entertainment, Inc.* ........... (800) (1,650) Party City Corp.* ........................ (1,700) (6,242) Styleclick, Inc., Class A* ............... (500) (1,219) ----------- (85,808) ----------- SCHOOLS--(1.2%) Corinthian Colleges, Inc.* ............... (1,100) (43,312) ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--(1.5%) Integrated Device Technology, Inc.* ...... (800) (23,150) Linear Technology Corp. .................. (800) (31,700) ----------- (54,850) ----------- STEEL--(0.4%) Valmont Industries, Inc. ................. (800) (14,650) ----------- TELECOMMUNICATIONS & EQUIPMENT--(1.8%) Comarco, Inc. ............................ (850) (12,856) General Magic, Inc.* ..................... (1,100) (1,684) Network Plus Corp.* ...................... (1,100) (4,744) StarMedia Network, Inc.* ................. (600) (1,800) Sonus Networks, Inc.* .................... (400) (11,175) Triquint Semiconductor, Inc.* ............ (800) (14,550) Viasat, Inc.* ............................ (1,500) (20,061) ----------- (66,870) ----------- The accompanying notes are an integral part of the financial statements. 18 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- TEXTILES & APPAREL--(1.7%) Cintas Corp. ............................. (1,100) $ (39,616) Nike, Inc. ............................... (600) (23,430) ----------- (63,046) ----------- TRAVEL SERVICES--(0.6%) Hotel Reservations Network, Inc., Class A* ......................... (800) (22,700) ----------- WHOLESALE-WAREHOUSE--(0.5%) Watsco, Inc. ............................. (1,500) (18,900) ----------- TOTAL SECURITIES SOLD SHORT (Proceeds $3,018,064) ................ (2,732,742) ----------- NET INVESTMENTS IN SECURITIES--40.5% (Cost $1,016,320) ........................ 1,474,880 ----------- OTHER ASSESTS IN EXCESS OF LIABILTIES--59.5% ........................ 2,168,850 ----------- NET ASSETS--100.0% .......................... $ 3,643,730 =========== - ---------- * Non-income producing. ** Canadian dollars. The accompanying notes are an integral part of the financial statements. 19 BOSTON PARTNERS FAMILY OF FUNDS BOND FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2001 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- PREFERRED STOCK--5.1% INDUSTRIAL GOODS & MATERIALS--1.0% Amcor Ltd. (Australia) 7.25% 11/19/06 ......................... 2,500 $ 92,500 ---------- REAL ESTATE (REIT)--4.1% Crescent Real Estate 6.75% 12/31/49 ......................... 6,600 111,540 Equity Office Properties Trust Series B 5.25% 02/15/08 ......................... 1,900 86,070 Equity Residential Properties Series G 7.25%* 12/31/49 ........................ 3,500 84,875 Reckson Associates Realty Series A 7.625% 12/31/49 ........................ 3,500 77,700 ---------- 360,185 ---------- TOTAL PREFERRED STOCK (Cost $535,883) ...................... 452,685 ---------- PAR (000) ------ CORPORATE BONDS--22.8% BANKS & SAVINGS & LOANS--2.9% Capital One Bank Senior Notes (Baa2, BBB-) 6.150% 06/01/01 ........................ $ 20 20,048 Intl. Bank Recon. & Develop Unsubordinated (Aaa, AAA) 7.000% 01/27/05 ........................ 120 127,547 Old Kent Bank Subordinated Notes (N/A, A-) 6.625% 11/15/05 ........................ 110 112,644 ---------- 260,239 ---------- CHEMICALS--0.3% Union Carbide Corp. Notes (A2, A) 6.250% 06/15/03 ........................ 25 25,218 ---------- ENERGY--2.6% CMS Energy Corp. Senior Notes (Ba3, BB) 8.125% 05/15/02 ........................ 25 25,122 PAR (000) VALUE ----- ---------- ENERGY--(CONTINUED) Consumers Energy Co. First Mortgage (Baa3, BBB+) 6.375% 09/15/03 ........................ $100 $ 100,334 Texas-New Mexico Power Senior Notes (Baa3, BBB-) 6.250% 01/15/09 ........................ 25 22,923 Tosco Corp. First Mortgage Notes (Baa1, BBB) 8.250% 05/15/03 ........................ 25 26,403 Union Oil Co. of California Notes (Baa1, BBB+) 6.500% 05/01/08 ........................ 30 30,277 Union Texas Petroleum Senior Notes (Aa2, AA+) 8.375% 03/15/05 ........................ 20 21,920 ---------- 226,979 ---------- FINANCIAL SERVICES--3.8% Equitable Companies Senior Notes (A2, A+) 9.000% 12/15/04 ........................ 80 88,172 Ford Motor Credit Corp. Notes (A2, A) 6.700% 07/16/04 ........................ 50 50,718 Limestone Electron Trust Senior Notes Series 144A (Baa3, BBB-) 8.625% 03/15/03 ........................ 25 26,050 Security Capital U.S. Realty Bonds Series 144A (Baa3, BBB-) 2.000% 05/22/03 ........................ 170 149,600 Sprint Spectrum L.P. Senior Discount Notes (Baa2, BBB+) 12.500%** 08/15/06 ..................... 20 20,200 ---------- 334,740 ---------- HEALTH CARE--0.9% Tenet Healthcare Corp. Senior Notes (Ba1, BB+) 8.625% 12/01/03 ........................ 75 76,970 ---------- The accompanying notes are an integral part of the financial statements. 20 BOSTON PARTNERS FAMILY OF FUNDS BOND FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ----- ---------- OIL & GAS EXPLORATION--1.0% BP Amoco PLC (Aa2, AA+) 5.900% 04/15/09 ........................ $ 20 $ 19,973 Conoco Inc. Senior Notes (A3, A-) 6.350% 04/15/09 ........................ 50 50,649 Occidental Petroleum Corp. Senior Notes (Baa3, BBB-) 6.750% 11/15/02 ........................ 20 20,342 ---------- 90,964 ---------- RADIO & TELEVISION MEDIA--2.5% Chancellor Media Corp. Company Guarantee Notes Series B (B1, B) 8.750% 06/15/07 ........................ 25 26,187 Clear Channel Communication (Baa3, BBB-) 7.250% 09/15/03 ........................ 25 25,782 CSC Holdings, Inc. Senior Notes (Ba1, BB+) 7.875% 12/15/07 ........................ 50 51,763 CSC Holdings, Inc. Senior Subordinate Debentures (Ba3, BB-) 9.875% 02/15/13 ........................ 10 10,750 Jones Intercable, Inc. Senior Notes (Baa2, BBB) 9.625% 03/15/02 ........................ 100 103,500 ---------- 217,982 ---------- RETAIL TRADE--0.9% Federated Department Stores, Inc. ........ Senior Notes (Baa1, BBB+) 8.125% 10/15/02 ........................ 25 25,847 Safeway, Inc. Notes (Baa2, BBB) 6.050% 11/15/03 ........................ 50 50,523 ---------- 76,370 ---------- SOVEREIGN GOVERNMENT BONDS--5.0% Ontario (Province Of) Bonds (Aa3, AA) 6.000% 02/21/06 ........................ 40 40,793 Ontario (Province Of) Senior Unsubordinated (Aa3, AA) 5.500% 10/01/08 ........................ 20 19,816 PAR (000) VALUE ----- ---------- SOVEREIGN GOVERNMENT BONDS--(CONTINUED) Panama (Republic Of) Notes Series 144A (Ba1, BB+) 7.875% 02/13/02 ........................ $300 $ 302,550 Quebec Province Senior Unsubordinated (A2, A+) 5.750% 02/15/09 ........................ 50 49,403 United Mexican States Bonds (Baa3, BB+) 8.625% 03/12/08 ........................ 25 25,263 ---------- 437,825 ---------- TELECOMMUNICATIONS--2.6% CCPR Services, Inc. Company Guarantee Notes (B2, N/A) 10.000% 02/01/07 ....................... 35 35,175 LCI International, Inc. Senior Notes (Baa1, BBB+) 7.250% 06/15/07 ........................ 80 80,965 MetroNet Communications Corp. ............ Senior Discount Notes (Baa3, BBB) 9.950% 06/15/08 ........................ 45 38,475 US Cellular Corp. Notes (A3, A-) 7.250% 08/15/07 ........................ 75 77,214 ---------- 231,829 ---------- TRANSPORTATION--0.3% Union Pacific Co. Debentures (Baa3, BBB-) 9.625% 12/15/02 ........................ 25 26,709 ---------- TOTAL CORPORATE BONDS (Cost $1,984,313) .................... 2,005,825 ---------- AGENCY OBLIGATIONS--46.6% AGENCY DEBENTURES--9.2% FHLMC (Aaa, N/A) 5.750% 04/15/08 ........................ 25 25,251 FNMA Benchmark Note 6.000% 05/15/08 ........................ 110 112,691 FNMA Benchmark Note 7.250% 01/15/10 ........................ 610 676,808 ---------- 814,750 ---------- The accompanying notes are an integral part of the financial statements. 21 BOSTON PARTNERS FAMILY OF FUNDS BOND FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ----- ---------- FEDERAL NATIONAL MORTGAGE ASSOCIATION--7.9% FNMA 190945 6.000% 05/01/24 ........................ $323 $ 316,516 FNMA 281054 6.500% 04/01/24 ........................ 308 307,429 FNMA 252925 7.500% 12/01/29 ........................ 68 69,627 ---------- 693,572 ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--29 5% GNMA 354662 6.500% 09/15/08 ........................ 64 65,642 GNMA 780303 6.500% 02/15/09 ........................ 184 187,412 GNMA 407234 6.500% 01/15/13 ........................ 64 65,481 GNMA 457737 6.500% 03/15/13 ........................ 81 82,959 GNMA 469128 6.500% 02/15/28 ........................ 338 338,439 GNMA 447928 6.500% 05/15/28 ........................ 32 31,579 GNMA 473797 6.500% 06/15/28 ........................ 27 26,537 GNMA 468090 6.500% 07/15/28 ........................ 30 30,412 GNMA 482119 6.500% 08/15/28 ........................ 86 86,274 GNMA 376528 7.000% 05/15/09 ........................ 140 143,355 GNMA 454925 7.000% 12/15/12 ........................ 171 175,457 GNMA 780921 7.000% 11/15/13 ........................ 112 114,696 GNMA 366816 7.000% 06/15/24 ........................ 85 86,296 GNMA 452645 7.000% 11/15/27 ........................ 39 39,768 GNMA 450446 7.000% 12/15/27 ........................ 45 45,256 GNMA 372475 7.000% 01/15/28 ........................ 287 291,784 GNMA 469129 7.000% 02/15/28 ........................ 59 59,896 PAR (000) VALUE ----- ---------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION--(CONTINUED) GNMA 461450 7.000% 04/15/28 ........................ $ 56 $ 56,571 GNMA 780859 7.500% 09/15/13 ........................ 17 17,808 GNMA 780498 7.500% 01/15/27 ........................ 69 71,116 GNMA 449474 7.500% 09/15/27 ........................ 59 60,703 GNMA 453892 7.500% 11/15/27 ........................ 232 237,901 GNMA 780687 8.000% 12/15/12 ........................ 202 210,729 GNMA 442120 8.000% 11/15/26 ........................ 74 75,842 ---------- 2,601,913 ---------- TOTAL AGENCY OBLIGATIONS (Cost $4,048,702) .................... 4,110,235 ---------- ASSET BACKED SECURITIES--1.3% Illinois Power Special Purpose Trust Series 1998-1 Class A6 (Aaa, AAA) 5.540% 06/25/09 ........................ 50 49,670 MBNA Master Credit Card Trust Series 1995-C Class A (Aaa, AAA) 6.450% 02/15/08 ........................ 60 62,071 ---------- TOTAL ASSET BACKED SECURITIES (Cost $111,052) ...................... 111,741 ---------- U.S. TREASURY OBLIGATIONS--20.2% U.S. TREASURY BONDS--18.6% U.S. Treasury Bonds 6.000% 08/15/09 ........................ 235 251,058 7.125% 02/15/23 ........................ 830 997,663 7.250% 05/15/16 ........................ 325 386,364 ---------- 1,635,085 ---------- U.S. TREASURY STRIP--1.6% U.S. Treasury Strip 5.735% 11/15/21 ........................ 455 141,808 ---------- TOTAL U.S. TREASURY OBLIGATIONS (Cost $1,683,139) .................... 1,776,893 ---------- The accompanying notes are an integral part of the financial statements. 22 BOSTON PARTNERS FAMILY OF FUNDS BOND FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ----- ---------- SHORT-TERM INVESTMENT--2.9% Wilmington Fund Cash Sweep 5.257% 03/01/01 ........................ $258 $ 258,075 ---------- TOTAL SHORT-TERM INVESTMENT (Cost $258,075) ...................... 258,075 ---------- TOTAL INVESTMENTS--98.9% (Cost $8,621,164) ........................ 8,715,454 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--1.1% ..................... 97,515 ---------- NET ASSETS--100.0% .......................... $8,812,969 ========== - ---------- * Non-income producing. **The rate shown represents yield to maturity on zero coupon bonds. REIT -- Real Estate Investment Trust. FHLMC -- Federal Home Loan Mortgage Corporation. The Moody's Investor Service, Inc. and Standard and Poor's Ratings Group's ratings indicated are the most recent ratings available at February 28, 2001 (Unaudited). The accompanying notes are an integral part of the financial statements. 23 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 28, 2001 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP VALUE FUND VALUE FUND VALUE FUND II ----------- ------------ ------------- ASSETS Investments, at value (cost -- $44,592,057, $140,473,952, $16,163,927, $4,034,384, and $8,621,164 respectively) .................................. $49,594,088 $143,855,156 $16,927,329 Receivable from Investment Advisor .............................. -- -- 16,038 Deposits with brokers and custodian bank for securities sold short ......................................... -- -- -- Receivable for investments sold ................................. 101,131 5,663,214 138,986 Unrealized gain on forward exchange contracts ................... -- -- -- Receivable for fund shares sold ................................. -- 58,544 579,370 Dividends and interest receivable ............................... 92,735 227,275 7,174 ----------- ------------ ----------- Total assets .................................................. 49,787,954 149,804,189 17,668,897 ----------- ------------ ----------- LIABILITIES Payable for investments purchased ............................... 1,133,688 2,449,531 1,853,522 Securities sold short (proceeds $3,018,064) ..................... -- -- -- Payable for fund shares redeemed ................................ -- 1,052,751 25,340 Accrued expenses and other liabilities .......................... 30,941 95,261 49,155 Payable for dividends on securities sold short .................. -- -- -- ----------- ------------ ----------- Total liabilities ............................................. 1,164,629 3,597,543 1,928,017 ----------- ------------ ----------- NET ASSETS Capital stock, $0.001 par value ................................. 3,562 12,398 1,126 Paid-in capital ................................................. 41,826,461 141,249,493 14,311,052 Undistributed net investment income/(loss) ...................... 203,989 321,579 -- Accumulated net realized gain/(loss) from investments and foreign exchange transactions, if any ..................... 1,587,282 1,241,972 665,300 Net unrealized appreciation on investments and foreign exchange transactions, if any ......................... 5,002,031 3,381,204 763,402 ----------- ------------ ----------- Net assets .................................................... $48,623,325 $146,206,646 $15,740,880 =========== ============ =========== INSTITUTIONAL CLASS Net assets ...................................................... $45,221,639 $144,358,283 $ 5,895,130 ----------- ------------ ----------- Shares outstanding .............................................. 3,316,551 12,239,788 420,635 ----------- ------------ ----------- Net asset value, offering and redemption price per share ............................................... $13.64 $11.79 $14.01 =========== ============ =========== INVESTOR CLASS Net assets ...................................................... $ 3,401,686 $ 1,848,363 $ 9,845,750 ----------- ------------ ----------- Shares outstanding .............................................. 245,490 157,983 705,035 ----------- ------------ ----------- Net asset value, offering and redemption price per share ............................................... $13.86 $11.70 $13.96 =========== ============ =========== LONG/SHORT EQUITY FUND BOND FUND ----------- ---------- ASSETS Investments, at value (cost -- $44,592,057, $140,473,952, $16,163,927, $4,034,384, and $8,621,164 respectively) .................................. $4,207,622 $8,715,454 Receivable from Investment Advisor .............................. 14,856 11,627 Deposits with brokers and custodian bank for securities sold short ......................................... 2,146,127 -- Receivable for investments sold ................................. 736,307* 113,430 Unrealized gain on forward exchange contracts ................... 6 -- Receivable for fund shares sold ................................. 62,500 -- Dividends and interest receivable ............................... 18,177 66,813 ---------- ---------- Total assets .................................................. 7,185,595 8,907,324 ---------- ---------- LIABILITIES Payable for investments purchased ............................... 784,130 51,658 Securities sold short (proceeds $3,018,064) ..................... 2,732,742 -- Payable for fund shares redeemed ................................ -- 231 Accrued expenses and other liabilities .......................... 24,088 42,466 Payable for dividends on securities sold short .................. 905 -- ---------- ---------- Total liabilities ............................................. 3,541,865 94,355 ---------- ---------- NET ASSETS Capital stock, $0.001 par value ................................. 258 895 Paid-in capital ................................................. 3,027,378 9,346,502 Undistributed net investment income/(loss) ...................... 5,710 7,085 Accumulated net realized gain/(loss) from investments and foreign exchange transactions, if any ..................... 151,818 (635,803) Net unrealized appreciation on investments and foreign exchange transactions, if any ......................... 458,566 94,290 ---------- ---------- Net assets .................................................... $3,643,730 $8,812,969 ========== ========== INSTITUTIONAL CLASS Net assets ...................................................... $2,163,181 $8,564,273 ---------- ---------- Shares outstanding .............................................. 152,922 870,078 ---------- ---------- Net asset value, offering and redemption price per share ............................................... $14.15 $9.84 ========== ========== INVESTOR CLASS Net assets ...................................................... $1,480,549 $ 248,696 ---------- ---------- Shares outstanding .............................................. 104,584 25,089 ---------- ---------- Net asset value, offering and redemption price per share ............................................... $14.16 $9.91 ========== ========== * Includes $717,548 designated as short sale collateral with broker.
The accompanying notes are an integral part of the financial statements. 24 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2001 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II EQUITY FUND BOND FUND ---------- ---------- ------------- ----------- --------- INVESTMENT INCOME Dividends ............................. $ 369,875 $ 986,048 $ 20,349 $ 5,709 $ 19,102 Interest .............................. 59,069 144,714 9,662 34,641 268,684 ---------- ---------- ---------- -------- -------- 428,944 1,130,762 30,011 40,350 287,786 ---------- ---------- ---------- -------- -------- EXPENSES Advisory fees ......................... 167,146 610,759 28,331 19,251 16,903 Administration fees ................... 37,500 95,431 37,500 37,500 37,500 Administrative services fees .......... 31,928 113,310 2,440 932 6,215 Transfer agent fees and expenses ...... 37,785 39,273 36,849 36,892 36,497 Custodian fees and expenses ........... 11,976 22,695 28,824 18,156 7,635 Printing .............................. 12,798 47,804 742 413 2,773 Federal and state registration fees ... 7,439 7,439 5,095 8,045 3,265 Audit and legal fees .................. 6,001 22,769 311 174 1,066 Distribution fees ..................... 2,932 2,358 1,707 585 238 Directors ............................. 1,964 7,336 114 69 425 Insurance ............................. 514 1,799 69 16 105 Dividend expense ...................... -- -- -- 4,049 -- Other ................................. 3,069 3,075 3,224 7,198 6,640 ---------- ---------- ---------- -------- -------- Total expenses before waivers and reimbursements .................... 321,052 974,048 145,206 133,280 119,262 Less: waivers and reimbursements .... (95,578) (208,525) (108,573) (107,325) (93,698) ---------- ---------- ---------- -------- -------- Total expenses after waivers and reimbursements .................... 225,474 765,523 36,633 25,955 25,564 ---------- ---------- ---------- -------- -------- Net investment income/(loss) .......... 203,470 365,239 (6,622) 14,395 262,222 ---------- ---------- ---------- -------- -------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized gain/(loss) from: Investments ......................... 2,421,084 6,006,489 752,708 241,418 (79,041) Foreign currency related transactions -- -- -- (348) -- Net change in unrealized appreciation/ (depreciation) on: Investments ......................... 1,852,659 (3,670,502) 495,103 276,376 391,076 Foreign currency related transactions -- -- -- 6 -- ---------- ---------- ---------- -------- -------- Net realized and unrealized gain from investments .................... 4,273,743 2,335,987 1,247,811 517,452 312,035 ---------- ---------- ---------- -------- -------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................... $4,477,213 $2,701,226 $1,241,189 $531,847 $574,257 ========== ========== ========== ======== ========
The accompanying notes are an integral part of the financial statements. 25 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF CHANGES IN NET ASSETS
LARGE CAP VALUE FUND MID CAP VALUE FUND ------------------------------------- ----------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED FEBRUARY 28, 2001 AUGUST 31, 2000 FEBRUARY 28, 2001 AUGUST 31, 2000 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............. $ 203,470 $ 430,781 $ 365,239 $ 808,479 Net realized gain/(loss) from: Investments ............................ 2,421,084 944,060 6,006,489 (3,737,165) Foreign currency related transactions .. -- -- -- -- Net change in unrealized appreciation/(depreciation) on: Investments ............................ 1,852,659 3,064,061 (3,670,502) 5,866,818 Foreign currency related transactions .. -- -- -- -- ----------- ----------- ------------ ------------ Net increase in net assets resulting from operations ........................ 4,477,213 4,438,902 2,701,226 2,938,132 ----------- ----------- ------------ ------------ LESS DIVIDEND AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares (409,827) (437,974) (799,688) (221,577) Net investment income Investor shares .... (20,229) (1,520) (5,908) -- Net realized capital gains Institutional shares ................... (1,216,633) (2,897,847) -- (2,085,782) Net realized capital gains Investor shares (68,540) (92,351) -- (30,829) ----------- ----------- ------------ ------------ Total dividends and distributions to shareholders ........................ (1,715,229) (3,429,692) (805,596) (2,338,188) ----------- ----------- ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) .................... 4,550,202 (14,447,130) (10,314,666) (21,959,933) ----------- ----------- ------------ ------------ Total increase/(decrease) in net assets .......................... 7,312,186 (13,437,920) (8,419,036) (21,359,989) NET ASSETS Beginning of period ...................... 41,311,139 54,749,059 154,625,682 175,985,671 ----------- ----------- ------------ ------------ End of period ............................ $48,623,325 $41,311,139 $146,206,646 $154,625,682 =========== =========== ============ ============ SMALL CAP VALUE FUND II LONG/SHORT EQUITY FUND ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED FEBRUARY 28, 2001 AUGUST 31, 2000 FEBRUARY 28, 2001 AUGUST 31, 2000 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............. $ (6,622) $ (3,629) $ 14,395 $ 16,519 Net realized gain/(loss) from: Investments ............................ 752,708 233,585 241,418 13,763 Foreign currency related transactions .. -- -- (348) -- Net change in unrealized appreciation/(depreciation) on: Investments ............................ 495,103 269,009 276,376 135,228 Foreign currency related transactions .. -- -- 6 -- ----------- ---------- ---------- ---------- Net increase in net assets resulting from operations ........................ 1,241,189 498,965 531,847 165,510 ----------- ---------- ---------- ---------- LESS DIVIDEND AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares -- (539) (13,862) (14,358) Net investment income Investor shares .... -- -- (3,422) (3,128) Net realized capital gains Institutional shares ................... (99,306) -- -- -- Net realized capital gains Investor shares (15,590) -- -- -- ----------- ---------- ---------- ---------- Total dividends and distributions to shareholders ........................ (114,896) (539) (17,284) (17,486) ----------- ---------- ---------- ---------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) .................... 12,266,916 247,715 1,739,066 70,570 ----------- ---------- ---------- ---------- Total increase/(decrease) in net assets .......................... 13,393,209 746,141 2,253,629 218,594 NET ASSETS Beginning of period ...................... 2,347,671 1,601,530 1,390,101 1,171,507 ----------- ---------- ---------- ---------- End of period ............................ $15,740,880 $2,347,671 $3,643,730 $1,390,101 =========== ========== ========== ========== BOND FUND ---------------------------------- FOR THE FOR THE SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2001 AUGUST 31, 2000 ----------------- --------------- UNAUDITED) INCREASE IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............. $ 262,222 $ 727,913 Net realized gain/(loss) from: Investments ............................ (79,041) (416,718) Foreign currency related transactions .. -- -- Net change in unrealized appreciation/(depreciation) on: Investments ............................ 391,076 439,880 Foreign currency related transactions .. -- -- ---------- ---------- Net increase in net assets resulting from operations ........................ 574,257 751,075 ---------- ---------- LESS DIVIDEND AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares (256,570) (718,841) Net investment income Investor shares .... (5,739) (11,314) Net realized capital gains Institutional shares ................... -- -- Net realized capital gains Investor shares -- -- ---------- ---------- Total dividends and distributions to shareholders ........................ (262,309) (730,155) ---------- ---------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) .................... (397,241) (3,352,068) ---------- ---------- Total increase/(decrease) in net assets .......................... (85,293) (3,331,148) NET ASSETS Beginning of period ...................... 8,898,262 12,229,410 ---------- ---------- End of period ............................ $8,812,969 $8,898,262 ========== ==========
The accompanying notes are an integral part of the financial statements. 26 and 27 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. - --------------------------------------------------------------------------------
LARGE CAP VALUE FUND ------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR JANUARY 2, 1997* FEBRUARY 28, 2001 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 ----------------- --------------- --------------- --------------- --------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS ----------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $ 12.82 $ 12.24 $ 10.58 $ 12.46 $ 10.00 ------- ------- ------- ------- ------- Net investment income(1) ................. 0.06 0.14 0.05 0.12 0.05 Net realized and unrealized gain/(loss) on investments(2) ......... 1.28 1.25 1.76 (1.31) 2.41 ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ...... 1.34 1.39 1.81 (1.19) 2.46 ------- ------- ------- ------- ------- Dividends to shareholders from Net investment income .................... (0.13) (0.11) (0.04) (0.08) -- Net realized capital gains ............... (0.39) (0.70) (0.11) (0.61) -- ------- ------- ------- ------- ------- Total dividends and distributions to shareholders .......................... (0.52) (0.81) (0.15) (0.69) -- ------- ------- ------- ------- ------- Net asset value, end of period ........... $ 13.64 $ 12.82 $ 12.24 $ 10.58 $ 12.46 ======= ======= ======= ======= ======= Total investment return(3) ............... 10.63% 11.99% 17.12% (10.23%) 24.60% ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $45,222 $39,897 $53,112 $50,724 $24,603 Ratio of expenses to average net assets(1) 1.00% 1.00% 1.00% 1.00% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................ 1.43% 1.43% 1.30% 1.49% 2.64%(4) Ratio of net investment income to average net assets(1) ................. 0.92% 0.92% 0.61% 0.87% 1.19%(4) Portfolio turnover rate .................. 64.23% 120.99% 156.16% 111.68% 67.16% LARGE CAP VALUE FUND ------------------ ------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR JANUARY 16, 1997* FEBRUARY 28, 2001 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 ----------------- ---------------- --------------- --------------- ----------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS ----------------- ---------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ... $13.02 $12.36 $10.70 $12.45 $10.20 ------ ------ ------ ------ ------ Net investment income(1) ............... 0.05 0.10 0.15 0.06 0.02 Net realized and unrealized gain/(loss) on investments(2) ....... 1.29 1.27 1.65 (1.27) 2.23 ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .... 1.34 1.37 1.80 (1.21) 2.25 ------ ------ ------ ------ ------ Dividends to shareholders from Net investment income .................. (0.11) (0.01) (0.03) (0.06) -- Net realized capital gains ............. (0.39) (0.70) (0.11) (0.48) -- ------ ------ ------ ------ ------ Total dividends and distributions to shareholders ........................ (0.50) (0.71) (0.14) (0.54) -- ------ ------ ------ ------ ------ Net asset value, end of period ......... $13.86 $13.02 $12.36 $10.70 $12.45 ====== ====== ====== ====== ====== Total investment return(3) ............. 10.49% 11.67% 16.86% (10.28%) 22.06% ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $3,402 $1,414 $1,637 $6,150 $ 683 Ratio of expenses to average net assets(1) 1.22% 1.22% 1.25% 1.19% 1.11%(4) Ratio of expenses to average net assets without waivers and expense reimbursements .............. 1.53% 1.53% 1.55% 1.74% 3.05%(4) Ratio of net investment income to average net assets(1) ............... 0.70% 0.70% 0.36% 0.68% 0.91%(4) Portfolio turnover rate ................ 64.23% 120.99% 156.16% 111.68% 67.16% - ---------- * 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. (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.
The accompanying notes are an integral part of the financial statements. 28 and 29 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. - --------------------------------------------------------------------------------
MID CAP VALUE FUND -------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR JUNE 2, 1997* FEBRUARY 28, 2001 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 ----------------- --------------- --------------- --------------- --------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS ----------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period .... $ 11.66 $ 11.47 $ 9.48 $ 11.01 $10.00 -------- -------- -------- ------- ------ Net investment income/(loss)(1) ......... 0.03 0.06 0.02 0.01 0.01 Net realized and unrealized gain/(loss) on investments(2) ........ 0.16 0.29 1.98 (1.39) 1.00 -------- -------- -------- ------- ------ Net increase/(decrease) in net assets resulting from operations ..... 0.19 0.35 2.00 (1.38) 1.01 -------- -------- -------- ------- ------ Dividends to shareholders from: Net investment income ................... (0.06) (0.02) (0.01) (0.01) -- Net realized capital gains .............. -- (0.14) -- (0.14) -- -------- -------- -------- ------- ------ Total dividends and distributions to shareholders ...................... (0.06) (0.16) (0.01) (0.15) -- -------- -------- -------- ------- ------ Net asset value, end of period .......... $ 11.79 $ 11.66 $ 11.47 $ 9.48 $11.01 ======== ======== ======== ======= ====== Total investment return(3) .............. 1.67% 3.21% 21.08% (12.73%) 10.10% ======== ======== ======== ======= ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $144,359 $152,696 $173,224 $67,568 $3,750 Ratio of expenses to average net assets(1) ................. 1.00% 1.00% 1.00% 1.00% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ........... 1.27% 1.24% 1.25% 1.57% 12.37%(4) Ratio of net investment income to average net assets(1) ............. 0.48% 0.53% 0.17% 0.13% 1.08%(4) Portfolio turnover rate ................. 141.43% 206.65% 200.09% 167.86% 21.80% MID CAP VALUE FUND ------------------------------------------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR JUNE 2, 1997* FEBRUARY 28, 2001 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 ----------------- --------------- --------------- --------------- --------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS ----------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ... $11.55 $11.38 $ 9.42 $11.01 $10.00 ------ ------ ------ ------ ------ Net investment income/(loss)(1) ........ 0.01 0.03 (0.01) 0.01 0.01 Net realized and unrealized gain/(loss) on investments(2) ....... 0.18 0.28 1.97 (1.38) 1.00 ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .... 0.19 0.31 1.96 (1.37) 1.01 ------ ------ ------ ------ ------ Dividends to shareholders from: Net investment income .................. (0.04) -- -- (0.01) -- Net realized capital gains ............. -- (0.14) -- (0.21) -- ------ ------ ------ ------ ------ Total dividends and distributions to shareholders ..................... (0.04) (0.14) -- (0.22) -- ------ ------ ------ ------ ------ Net asset value, end of period ......... $11.70 $11.55 $11.38 $9.42 $11.01 ====== ====== ====== ====== ====== Total investment return(3) ............. 1.62% 2.90% 20.81% (12.77%) 10.10% ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted $1,848 $1,929 $2,762 $1,828 $ 598 Ratio of expenses to average net assets(1) ................ 1.22% 1.22% 1.25% 1.15% 1.10%(4) Ratio of expenses to average net assets without waivers and expense reimbursements .......... 1.37% 1.34% 1.50% 1.82% 12.62%(4) Ratio of net investment income to average net assets(1) ............ 0.26% 0.31% 0.01% (0.02%) 0.61%(4) Portfolio turnover rate ................ 141.43% 206.65% 200.09% 167.86% 21.80% - ---------- * 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. (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.
The accompanying notes are an integral part of the financial statements. 30 and 31 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. - --------------------------------------------------------------------------------
SMALL CAP VALUE FUND II ------------------------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR JULY 1, 1998* FEBRUARY 28, 2001 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 ----------------- --------------- --------------- --------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS ----------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $11.39 $ 8.67 $ 7.62 $10.00 ------ ------ ------ ------ Net investment income/(loss)(1) .......... (0.01) (0.01) (0.01) (0.01) Net realized and unrealized gain/(loss) on investments(2) .......... 2.92 2.73 1.06 (2.37) ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ....... 2.91 2.72 1.05 (2.38) ------ ------ ------ ------ Dividends to shareholders from: Net investment income .................... -- -- -- -- Net realized capital gains ............... (0.29) -- -- -- ------ ------ ------ ------ Total dividends and distributions to shareholders ........................ (0.29) -- -- -- ------ ------ ------ ------ Net asset value, end of period ........... $14.01 $11.39 $ 8.67 $ 7.62 ====== ====== ====== ====== Total investment return(3) (5) ........... 26.21% 31.43% 13.78% (23.80%) ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $5,895 $1,965 $1,309 $1,120 Ratio of expenses to average net assets(1) 1.55% 1.55% 1.55% 1.55%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................ 6.37% 14.23% 17.84% 17.63%(4) Ratio of net investment income to average net assets(1) ............... (0.23%) (0.18%) (0.17%) (0.34%)(4) Portfolio turnover rate .................. 55.79% 161.75% 87.48% 11.97% SMALL CAP VALUE FUND II ------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR JULY 1, 1998* FEBRUARY 28, 2001 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 ----------------- --------------- --------------- --------------- INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS ----------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $11.36 $ 8.65 $ 7.63 $10.00 ------ ------ ------ ------ Net investment income/(loss)(1) .......... (0.03) (0.03) (0.02) (0.01) Net realized and unrealized gain/(loss) on investments(2) .......... 2.92 2.74 1.04 (2.36) ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ....... 2.89 2.71 1.02 (2.37) ------ ------ ------ ------ Dividends to shareholders from: Net investment income .................... -- -- -- -- Net realized capital gains ............... (0.29) -- -- -- ------ ------ ------ ------ Total dividends and distributions to shareholders ........................ (0.29) -- -- -- ------ ------ ------ ------ Net asset value, end of period ........... $13.96 $11.36 $ 8.65 $ 7.63 ====== ====== ====== ====== Total investment return(3) (5) ........... 26.10% 31.33% 13.37% (23.70%) ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $9,846 $ 382 $ 293 $ 129 Ratio of expenses to average net assets(1) 1.77% 1.77% 1.80% 1.80%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................ 6.47% 14.33% 18.09% 18.61%(4) Ratio of net investment income to average net assets(1) ............... (0.45%) (0.40%) (0.42%) (0.66%)(4) Portfolio turnover rate .................. 55.79% 161.75% 87.48% 11.97% - ---------- * 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. (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.
The accompanying notes are an integral part of the financial statements. 32 and 33 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. - --------------------------------------------------------------------------------
LONG/SHORT EQUITY FUND ------------------------------------------------------ FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2001 ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 ----------------- --------------- ------------------ INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS --------------- ------------------ PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $10.57 $ 9.46 $10.00 ------ ------ ------ Net investment income/(loss)(1) .......... 0.13 0.13 0.12 Net realized and unrealized gain/(loss) on investments(2) .......... 3.59 1.12 (0.66) ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .............. 3.72 1.25 (0.54) ------ ------ ------ Dividends to shareholders from: Net investment income .................... (0.14) (0.14) -- Net realized capital gains ............... -- -- -- ------ ------ ------ Total dividends and distributions to shareholders ........................ (0.14) (0.14) -- ------ ------ ------ Net asset value, end of period ........... $14.15 $10.57 $ 9.46 ====== ====== ====== Total investment return(3) (5) ........... 35.31% 13.74% (5.40%) ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $2,163 $1,080 $ 941 Ratio of expenses to average net assets(1) 2.97% 2.86% 2.50%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ........................ 15.55% 21.86% 26.36%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) .......... 16.02% 22.22% 26.77% Ratio of net investment income to average net assets(1) ................. 1.23% 1.12% 1.57%(4) Portfolio turnover rate .................. 108.89% 363.34% 218.41% LONG/SHORT EQUITY FUND ----------------------------------------------------- FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2001 ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 ----------------- --------------- ------------------ INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS ----------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $10.57 $ 9.43 $10.00 ------ ------ ------ Net investment income/(loss)(1) .......... 0.11 0.11 0.06 Net realized and unrealized gain/(loss) on investments(2) .......... 3.59 1.16 (0.63) ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .............. 3.70 1.28 (0.57) ------ ------ ------ Dividends to shareholders from: Net investment income .................... (0.11) (0.13) -- Net realized capital gains ............... -- -- -- ------ ------ ------ Total dividends and distributions to shareholders ........................ (0.11) (0.13) -- ------ ------ ------ Net asset value, end of period ........... $14.16 $10.57 $ 9.43 ====== ====== ====== Total investment return(3) (5) ........... 35.18% 13.87% (5.70%) ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $1,481 $ 310 $ 231 Ratio of expenses to average net assets(1) 3.19% 3.08% 2.75%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ........................ 15.65% 21.96% 26.61%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) .......... 16.12% 22.32% 27.02% Ratio of net investment income to average net assets(1) ................. 1.01% 0.90% 1.32%(4) Portfolio turnover rate .................. 108.89% 363.34% 218.41% - ---------- * 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. (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.
The accompanying notes are an integral part of the financial statements. 34 and 35 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. - --------------------------------------------------------------------------------
BOND FUND --------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR DECEMBER 30, 1997* FEBRUARY 28, 2001 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 ------------- --------------- --------------- ------------------ INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS ------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $ 9.49 $ 9.41 $ 10.08 $ 10.00 ------ ------ ------- ------- Net investment income(1) ................. 0.30 0.64 0.96 0.78 Net realized and unrealized gain/(loss) on investments(2) .......... 0.35 0.08 (0.90) (0.31) ------ ------ ------- ------- Net increase/(decrease) in net assets resulting from operations ...... 0.65 0.72 0.06 0.47 ------ ------ ------- ------- Dividends to shareholders from: Net investment income .................... (0.30) (0.64) (0.62) (0.39) Net realized capital gains ............... -- -- (0.11) -- ------ ------ ------- ------- Total dividends and distributions to shareholders ........................ (0.30) (0.64) (0.73) (0.39) ------ ------ ------- ------- Net asset value, end of period ........... $ 9.84 $ 9.49 $ 9.41 $ 10.08 ====== ====== ======= ======= Total investment return(3) ............... 6.94% 8.01% 0.42% 4.79% ====== ====== ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $8,564 $8,728 $12,041 $15,509 Ratio of expenses to average net assets(1) 0.60% 0.60% 0.60% 0.60%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................ 2.82% 2.45% 2.22% 2.82%(4) Ratio of net investment income to average net assets(1) .................. 6.21% 6.72% 6.22% 6.06%(4) Portfolio turnover rate .................. 16.89% 34.59% 57.60% 45.27% BOND FUND ---------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR DECEMBER 30, 1997* FEBRUARY 28, 2001 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 ----------------- --------------- --------------- ------------------ INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS ----------------- --------------- --------------- ----------------- PER SHARE OPERATING PERFORMANCE** Net asset value, beginning of period ..... $9.55 $9.47 $10.10 $10.00 ----- ----- ------ ------ Net investment income(1) ................. 0.29 0.62 0.93 0.62 Net realized and unrealized gain/(loss) on investments(2) .......... 0.36 0.08 (0.90) (0.16) ----- ----- ------ ------ Net increase/(decrease) in net assets resulting from operations ...... 0.65 0.70 0.03 0.46 ----- ----- ------ ------ Dividends to shareholders from: Net investment income .................... (0.29) (0.62) (0.55) (0.36) Net realized capital gains ............... -- -- (0.11) -- ----- ----- ------ ------ Total dividends and distributions to shareholders ........................ (0.29) (0.62) (0.66) (0.36) ----- ----- ------ ------ Net asset value, end of period ........... $9.91 $9.55 $ 9.47 $10.10 ===== ===== ====== ====== Total investment return(3) ............... 6.89% 7.72% 0.17% 4.63% ===== ===== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $ 249 $ 170 $ 188 $ 198 Ratio of expenses to average net assets(1) 0.82% 0.82% 0.85% 0.85%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................ 2.92% 2.55% 2.47% 2.72%(4) Ratio of net investment income to average net assets(1) .................. 5.99% 6.50% 5.97% 5.83%(4) Portfolio turnover rate .................. 16.89% 34.59% 57.60% 45.27% - ---------- * 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. (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.
The accompanying notes are an integral part of the financial statements. 36 and 37 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of Maryland on February 29, 1988 and is registered under the Investment Company Act of 1940, as amended, (the "Investment Company Act") as an open-end management investment company. RBB is a "series fund", which is a mutual fund divided into separate portfolios. The portfolio is treated as a separate entity for certain matters under the Investment Company Act, and for other purposes, and a shareholder of one portfolio is not deemed to be a shareholder of any other portfolio. Currently RBB has 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 15.98 billion are currently classified into ninety-four classes. Each class represents an interest in one of fourteen investment portfolios of RBB. The classes have been grouped into thirteen separate "families," eight 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, which commenced investment operations on July 1, 1998, the Long/Short Equity 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. 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 38 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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. FOREIGN CURRENCY TRANSLATION -- The books and records of the Portfolios are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated at the exchange rate prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included in the Statement of Operations. 39 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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 six months ended February 28, 2001, investment advisory fees, waivers and reimbursements of expenses were as follows:
GROSS NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT - ---- ------------- ---------- ------------ ------------- Large Cap Fund $167,146 $ (69,985) $ 97,161 $ -- Mid Cap Fund 610,759 (117,835) 492,924 -- Small Cap Fund II 28,331 (28,331) -- (78,277) Long/Short Equity Fund 19,251 (19,251) -- (71,607) Bond Fund 16,903 (16,903) -- (71,819)
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 six months ended February 28, 2001, PFPC, at its discretion, voluntarily agreed to waive a portion of its administration fees for the Funds. For the six months ended February 28, 2001, PFPC's administration fees and related waivers were as follows:
PFPC GROSS NET PFPC FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES - ---- ------------------ ------- ------------------- Large Cap Fund $37,500 $ -- $37,500 Mid Cap Fund 95,431 -- 95,431 Small Cap Fund II 37,500 -- 37,500 Long/Short Equity Fund 37,500 (8,021) 29,479 Bond Fund 37,500 -- 37,500
40 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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 six months ended February 28, 2001, transfer agency fees and waivers were as follows:
GROSS TRANSFER NET TRANSFER FUND AGENCY FEES WAIVERS AGENCY FEES - ---- -------------- ------- ------------ Large Cap Fund $37,785 $ -- $37,785 Mid Cap Fund 39,273 -- 39,273 Small Cap Fund II 36,849 -- 36,849 Long/Short Equity Fund 36,892 (7,700) 29,192 Bond Fund 36,497 -- 36,497
From September 1, 2000 through January 1, 2001, Provident Distributors, Inc. (PDI), provided certain administrative services to the Institutional Class of the Funds. As compensation for such administrative services, PDI was 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 was waiving fees in excess of 0.03% of the average daily net assets of each Fund's Institutional Class Shares. Additionally, PDI received 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 this period, administrative services fees and waivers were as follows:
GROSS ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES - ---- -------------------- --------- ------------------ Large Cap Fund $21,097 $(16,870) $ 4,227 Mid Cap Fund 77,051 (61,479) 15,572 Small Cap Fund II 1,225 (987) 238 Long/Short Equity Fund 620 (501) 119 Bond Fund 4,180 (3,337) 843
Since January 2, 2001, PFPC Distributors, Inc., provides certain administrative services to the Institutional Class of the Funds. As compensation for such administrative services, PFPC Distributors, Inc. 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. PFPC Distributors, Inc. is currently waiving fees in excess of 0.03% of the average daily net assets of each Fund's Institutional Class Shares. Additionally, PFPC Distributors, Inc. 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 this period, administrative services fees and waivers were as follows:
GROSS ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES - ---- -------------------- -------- ------------------ Large Cap Fund $10,831 $ (8,723) $2,108 Mid Cap Fund 36,259 (29,211) 7,048 Small Cap Fund II 1,215 (978) 237 Long/Short Equity Fund 312 (245) 67 Bond Fund 2,035 (1,639) 396
41 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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. 3. INVESTMENT IN SECURITIES For U.S. federal income tax purposes, the costs of securities owned at February 28, 2001, were $44,519,321, $139,657,554, $16,122,342, $990,804 and $8,621,164, 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 $ 6,400,791 $(1,326,024) $5,074,767 Mid Cap Fund 11,758,009 (7,560,407) 4,197,602 Small Cap Fund II 1,142,614 (337,627) 804,987 Long/Short Equity Fund 665,406 (181,330) 484,076 Bond Fund 204,936 (110,646) 94,290
For the six months ended February 28, 2001, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: INVESTMENT SECURITIES ------------------------------ FUND PURCHASES SALES - ---- ----------- ----------- Large Cap Fund $29,226,767 $28,216,300 Mid Cap Fund 26,249,357 26,473,008 Small Cap Fund II 14,266,863 3,102,113 Long/Short Equity Fund* 4,359,908 2,099,128 Bond Fund** 1,407,047 1,958,419 - ---------- * The Long/Short Equity Fund had purchases of $4,154,570 to cover short sales and received proceeds of $2,074,437 from sales of short securities. ** The Bond Fund had purchases and sales of U.S. Government Obligations of $305,032 and $557,435, respectively. 42 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 4. CAPITAL SHARE TRANSACTIONS As of February 28, 2001, each class of each Fund has 100,000,000 shares of $0.001 par value common stock authorized. Transactions in capital shares for the respective periods were as follows:
LARGE CAP VALUE FUND ------------------------------------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2001 YEAR ENDED FEBRUARY 28, 2001 YEAR ENDED (UNAUDITED) AUGUST 31, 2000 (UNAUDITED) AUGUST 31, 2000 ---------------------- -------------------------- --------------------- --------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ---------------------- -------------------------- --------------------- --------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ------- ---------- ---------- ------------ ------- ---------- ------- ----------- Sales ............. 102,084 $1,362,917 376,965 $4,440,366 184,540 $2,502,754 55,370 $ 660,735 Repurchases ....... (21,791) (294,602) (1,891,018) (21,940,103) (54,330) (733,362) (87,214) (1,037,421) Reinvestments ..... 124,328 1,623,726 287,323 3,335,821 6,690 88,769 7,914 93,472 ------- ---------- ---------- ------------ ------- ---------- ------- ----------- Net Increase / (Decrease) 204,621 $2,692,041 (1,226,730) $(14,163,916) 136,900 $1,858,161 (23,930) $ (283,214) ======= ========== ========== ============ ======= ========== ======= ===========
MID CAP VALUE FUND ------------------------------------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2001 YEAR ENDED FEBRUARY 28, 2001 YEAR ENDED (UNAUDITED) AUGUST 31, 2000 (UNAUDITED) AUGUST 31, 2000 ------------------------- -------------------------- --------------------- --------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------- -------------------------- --------------------- --------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ---------- ---------- ------------ ------- ---------- ------- ----------- Sales .......... 1,016,708 $ 11,790,907 1,634,352 $17,217,335 8,929 $ 106,356 20,700 $ 218,093 Repurchases .... (1,930,955) (22,618,346) (3,826,167) (40,348,935) (18,487) (220,485) (99,480) (1,030,678) Reinvestments .. 54,922 621,164 190,810 1,953,896 512 5,738 2,988 30,356 ---------- ------------ ---------- ------------ ------- --------- ------- ----------- Net Decrease ... (859,325) $(10,206,275) (2,001,005) $(21,177,704) (9,046) $(108,391) (75,792) $ (782,229) ========== ============ ========== ============ ======= ========= ======= ===========
43 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONCLUDED) (UNAUDITED)
SMALL CAP VALUE FUND II ------------------------------------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2001 YEAR ENDED FEBRUARY 28, 2001 YEAR ENDED (UNAUDITED) AUGUST 31, 2000 (UNAUDITED) AUGUST 31, 2000 ----------------------- ---------------------- ----------------------- ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ----------------------- ---------------------- ----------------------- ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ------- ---------- ------ -------- ------- ---------- ------- ------- Sales .......... 257,227 $3,213,211 23,284 $250,560 720,781 $9,864,191 20,104 $196,705 Repurchases .... (17,874) (230,424) (1,729) (15,340) (50,778) (694,958) (20,295) (184,749) Reinvestments .. 8,673 99,306 65 539 1,365 15,590 -- -- ------- ---------- ------ -------- ------- ---------- ---- ------- Net Increase / (Decrease) 248,026 $3,082,093 21,620 $235,759 671,368 $9,184,823 (191) $ 11,956 ======= ========== ====== ======== ======= ========== ======= ========
LONG/SHORT EQUITY FUND ------------------------------------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2001 YEAR ENDED FEBRUARY 28, 2001 YEAR ENDED (UNAUDITED) AUGUST 31, 2000 (UNAUDITED) AUGUST 31, 2000 ----------------------- ---------------------- ----------------------- ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ----------------------- ---------------------- ----------------------- ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ------- ---------- ------ -------- ------- ---------- ------- ------- Sales .......... 51,760 $716,542 866 $ 7,000 95,362 $1,297,055 12,114 $120,676 Repurchases .... (2,087) (25,008) -- -- (20,325) (266,233) (7,656) (74,592) Reinvestments .. 1,097 13,874 1,786 14,358 224 2,836 388 3,128 ------ -------- ----- ------- ------- ---------- ------ -------- Net Increase ... 50,770 $705,408 2,652 $21,358 75,261 $1,033,658 4,846 $ 49,212 ====== ======== ===== ======= ======= ========== ====== ========
BOND FUND ------------------------------------------------------------------------------------------------------------ FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2001 YEAR ENDED FEBRUARY 28, 2001 YEAR ENDED (UNAUDITED) AUGUST 31, 2000 (UNAUDITED) AUGUST 31, 2000 ----------------------- ---------------------- ----------------------- ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ----------------------- ---------------------- ----------------------- ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ------- ---------- ------ -------- ------- ---------- ------- ------- Sales .......... -- $ -- 4,162 $ 39,500 6,707 $65,741 -- -- Repurchases .... (76,554) (725,000) (441,512) (4,091,156) (44) (438) (3,273) $(30,335) Reinvestments .. 26,683 256,718 77,278 718,608 591 5,738 1,208 11,315 ------- --------- -------- ----------- ----- ------- ------ -------- Net Increase / (Decrease) (49,871) $(468,282) (360,072) $(3,333,048) 7,254 $71,041 (2,065) $(19,020) ======= ========= ======== =========== ===== ======= ====== ========
44 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) There is a 1.00% redemption fee on shares redeemed which have been held 365 days or less on the Small Cap Fund II and the Long/Short Equity Fund. For the period September 1, 2000 through February 28, 2001 these fees amounted to $10,976 and $2,715, respectively. The redemption fees are collected and retained by the Fund for the benefit of the remaining shareholders and recorded as paid in capital. On February 28, 2001 one shareholder held approximately 24% 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, one shareholder held approximately 9% of the outstanding shares of the Small Cap Fund II Institutional Class, one shareholder held approximately 9% of the outstanding shares of the Long/Short Equity Fund Institutional Class and two shareholders held approximately 27% 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 February 28, 2001, 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 $14,829 $(14,829) -- 45 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 PFPC 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 The financial information included herein is taken from the records of each Fund without examination by independent accountants who do not express an opinion thereon. This report is submitted for the general information of the shareholders of each Fund. It is not authorized for the distribution to prospective investors in the Funds unless it is preceded or accompanied by a current prospectus which includes details regarding the Fund's objectives, policies and other information. Total investment return is based on historical results and is not intended to indicate future performance. The investment return and principal value of an investment in the Funds will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than original cost. -----END PRIVACY-ENHANCED MESSAGE-----