-----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, GKgFX7WRShTO3Np6DF1gL7DLo4CdV10mboGLJVrmkTs/JvqpxnJBRR4UOHvoIrW2 n6KVRQpge1T/hN9iVOpH9g== 0000935069-02-000437.txt : 20020508 0000935069-02-000437.hdr.sgml : 20020508 ACCESSION NUMBER: 0000935069-02-000437 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020228 FILED AS OF DATE: 20020508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05518 FILM NUMBER: 02638409 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 g02-1037bp_sar.txt BOSTON PARTNERS SAR 2-28-02 [GRAPHIC OMITTED.] 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 Semi-Annual Report February 28, 2002 [LOGO OMITTED.] BOSTON PARTNERS ASSET MANAGEMENT, L.P. ONE PHILOSOPHY o ONE CULTURE o ONE FOCUS BOSTON PARTNERS FAMILY OF FUNDS PORTFOLIO MANAGER'S LETTER April 15, 2002 Dear Shareholder: The six-month period ending February 28, 2002, was highly volatile to say the least. The tragedies of September 11th caused an initial sell-off in the market, however patriotism promoted a dramatic recovery throughout the final months of the year. 2002 then began indecisively. As investors moved their focus from the year ending to the year beginning, we experienced a new wave of confidence. Investors chose to ignore some of the bad news of the recent quarter, and focus on recent positive indicators that the economy was poised to rebound. With this forward-looking approach, the markets began to rally in late February and into March of 2002. For the six month period ended February 28, 2002, the best performing segment of the market was small cap value with the Russell 2000 Value Index gaining 5.9%. Following closely behind was the Russell 2500 Value Index at 5.6%. In our opinion, the strength in the value indices coincides with investors' general concern and unwillingness to become aggressive in chasing earnings. We believe that the potential problem value investors face is that our universe of attractive investments is dwindling as growth investors begin to invade our territory. Despite positive indications, we are not convinced that the stronger economy will translate into higher earnings this year. Leading our thoughts on reasons why earnings estimates may still be too high begins with funding costs. Although interest rates are low, they have been edging upward. Additionally, with the Enron debacle and other accounting related problems, we observe that there has been an increased focus on debt levels, specifically on how companies fund daily operations with commercial paper. In our view, increased scrutiny coming from securities regulators and prominent investment managers may raise corporate America's cost of capital. It appears to us that another large factor soon to be lurking in the footnotes of annual reports is the cost of insurance. The tragedies of September 11 have caused insurance costs to skyrocket (one reason why we like the insurance business) and we believe that this will take a direct toll on earnings. A third major factor we continue to research is the effect of pension costs on the bottom line of many large companies. With recent stock market returns well below average and expectations still high, we believe that many companies could fail to meet their actuarial return expectations. In recent years the pension line item has been a contributor to earnings, but we believe that free ride is over. BOSTON PARTNERS LARGE CAP VALUE FUND The Boston Partners Large Cap Value Fund posted strong positive returns over the six months ended February 28, 2002, beating both the Russell 1000 Value style index and the broader S&P 500. FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 ----------------- Boston Partners Large Cap Value Fund --Institutional Shares 1.95% --Investor Shares 1.82% Russell 1000 Value (0.79)% S&P 500 (1.67)% The value style of investing outperformed the growth style over this six month period. Large cap value stocks, as measured by the Russell 1000 Value Index lost 0.8% while large cap growth, measured by the Russell 1000 Growth Index, lost 2.4%. Basic industries and energy contributed to strong returns this quarter. In basic industries, the chemical and paper companies posted solid returns to contribute to performance. In the energy sector, many of the large corporations benefited from rising oil prices. It appears to us that overall, consumers continue to prop up the economy with their spending as many consumer-oriented companies did very well and both the non-durables and services sectors posted strong performance. Boston Partners Large Cap Value Fund posted positive absolute returns for the six month period ended February 2002. We continue to add to our string of positive performance, which has provided some stability in uncertain times. Versus the S&P 500, our composite posted stronger returns for the period with a lower weight and better stock selection in the poor performing technology sector. In addition, a higher weighting and better performance in basic industries also added value. We outperformed the Russell 1000 Value for the period as well and are outperforming the benchmark on a one, three and five-year basis.
FOR THE FOR THE FOR THE THREE YEARS ENDED FIVE YEARS ENDED ONE YEAR ENDED FEBRUARY 28, 2002 FEBRUARY 28, 2002 FEBRUARY 28, 2002 (ANNUALIZED) (ANNUALIZED) ----------------- ----------------- ----------------- Boston Partners Large Cap Value Fund --Institutional Shares 1.06% 9.82% 9.08% --Investor Shares 0.86% 9.55% 8.87% Russell 1000 Value (3.84)% 2.75% 9.63% S&P 500 (9.52)% (2.45)% 8.45%
Although we are pleased with these results, the market's volatility is cause for continued concern. We believe the future holds optimism, but the future may be farther out than the next quarter and well into the second half of this year. We remain dedicated to our strict value discipline with a focus on fundamental research and stock selection. MID CAP VALUE EQUITY FUND The Boston Partners Mid Cap Value Fund posted strong positive returns over the six months ended February 2002, besting the Russell 2500 Value for the period.
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 ----------------- Boston Partners Mid Cap Value Fund --Institutional Shares 5.78% --Investor Shares 5.71% Russell 2500 Value 5.60% Russell 2500 Index 1.42%
The mid cap sector was home to both the strong and the weak this quarter. The Russell 2500 Value Index gained 5.6% for the six-month period, second only to the small cap value sector. The Russell 2500 Growth, however, fell almost 4.6% and was the worst of all the major indices. With a trailing one-year gain of over 11.5%, it appears to us that the Russell 2500 Value has rewarded patient mid cap value investors. 2 The Boston Partners Mid Cap Value Fund continued its resurgence over this period and has gained back all the ground lost in 1999 and 2000. The Fund is ahead of both the Russell 2500 Value Index and the Russell 2500 Index for the six months ended February 28, 2002 and the prior one year period, and is one of the best performing funds in our product offerings for these two time periods. The strategy did well over this six month period based on strong stock selection in a number of different sectors with technology, consumer durables, health care and utilities all contributing. Concurrent with the theme across all of our equity products, we have had recent success due to exposure to economically sensitive sectors of the market. With recent strong performance due in large part to the anticipated economic recovery, we have trimmed issues in the energy, basic industries and technology sectors in favor of less cyclical issues. Companies in the health care sector currently look attractive to us and we have made new investments in this area. We believe that energy, a sector which has been influenced by the Mideast crisis, still has pockets of opportunity and we are maintaining our commitment, albeit to a lesser degree. BOSTON PARTNERS SMALL CAP VALUE FUND II The Boston Partners Small Cap Value Fund II posted strong positive returns over the six months ended February 2002, while lagging the Russell 2000 Value for the period. The Fund was closed to new investors on December 28, 2001, in an effort to continue its strong performance. FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 ----------------- Boston Partners Small Cap Value Fund II --Institutional Shares 2.16% --Investor Shares 2.12% Russell 2000 Value 5.86% Small cap value investments provided the market's highest returns over this period with the Russell 2000 Value Index gaining 5.9%. Small cap growth stocks lost 4.6% per the Russell 2000 Growth Index. The overall small cap segment of the market gained 0.9% as measured by the Russell 2000 Index. As a result of the tragedies on September 11th, it appears to us that "flight to quality investing" brought small cap stocks to trough levels, and then in the fourth quarter 2001 recovered dramatically. Opportunities in Insurance and Consumer Service stocks provided for strong gains over the period. Enron-itis spread like the plague, in January 2002 and the Boston Partners Small Cap Value Fund II was not able to avoid this. A few stocks held by the fund suffered due to capital market constraints. During the period, we selectively sold some positions into strength in basic industries and capital goods. Within the technology sector we redeployed gains from various holdings into new positions which we felt had better upside potential. We also dispatched capital to quality health care opportunities, some of which had been orphaned by the market's appetite for more cyclical stocks. As a result, health care has become the portfolio's largest weighting behind consumer services. The Boston Partners Small Cap Value Fund II leads the benchmark on a one and three-year basis.
FOR THE FOR THE THREE YEARS ENDED ONE YEAR ENDED FEBRUARY 28, 2002 FEBRUARY 28, 2002 (ANNUALIZED) ----------------- ----------------- Boston Partners Small Cap Value Fund II --Institutional Shares 25.12% 33.05% --Investor Shares 24.92% 32.81% Russell 2000 Value 13.28% 15.58%
3 We believe that our disciplined approach that seeks to maintain the portfolio's upside potential and preserve its capital can produce attractive absolute and relative performance over the long-term. BOSTON PARTNERS LONG/SHORT EQUITY FUND Since its inception, Boston Partners' Long/Short Equity Fund boasts strong performance, exceeding its target return of 15% net of fees, and outperforming the S&P 500 on an annualized basis which was 0.47%. The Fund ended the six months through February 28, 2002 with a slightly positive return, with the short side detracting less than the long side gained. FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 ----------------- Boston Partners Long/Short Equity --Institutional Shares 0.20% --Investor Shares 0.06% Strong performance in consumer-related stocks, including two takeovers, added positively to the strategy this over the period. The short side of technology proved more difficult as there was a rally in over-valued technology stocks, especially in the month of February 2002. Several companies in the sector are experiencing top line growth but no profit as too much capacity has driven margins down. It appears to us that investors are still buying these companies on hope, causing them to rise and hurt our short portfolio performance. One area where capacity utilization is tight is in the bottling industry, and these companies have contributed handsomely to our long portfolio. Some interesting value opportunities have been created in the "post-Enron" period where investors seem to be adjusting their portfolios to increase focus on companies with low debt rather than companies that are good values. Many investors are shying away from these companies, causing their valuations to become unduly depressed. In response, we have invested in some high quality companies with moderate financial leverage. In our opinion these companies appear to have sufficient free cash flow to pay down their debt and increase shareholder value over the longer term. The Boston Partners Long/Short Equity Fund maintains three objectives: To produce a 15% return annualized over a full market cycle; To build a portfolio that has no-correlation to the US Equity Markets at all times; and To build a portfolio that has less volatility than the S&P 500 at all times. To this end, the fund invests long in companies that exhibit to us compelling valuations, strong fundamentals and positive earnings prospects. The fund simultaneously shorts companies that we believe are excessively valued, exhibit poor fundamentals and maintain weak earnings potential. 4 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--98.1% ADVERTISING SERVICES--1.4% Interpublic Group of Companies, Inc. (The) ............................ 25,300 $ 688,160 ----------- AEROSPACE/DEFENSE--0.9% Lockheed Martin Corp. ................... 7,300 411,793 ----------- AUTOMOTIVE--1.3% Ford Motor Company ...................... 42,300 629,424 ----------- BANKS & SAVINGS & LOANS--8.7% Comerica, Inc. .......................... 11,800 706,230 FleetBoston Financial Corp. ............. 25,300 844,514 Golden State Bancorp, Inc. .............. 15,700 478,536 Golden West Financial Corp. ............. 13,500 860,625 Toronto-Dominion Bank (The) ............. 10,300 272,744 Wachovia Corp. .......................... 29,300 973,639 ----------- 4,136,288 ----------- BROADCASTING & PUBLISHING--0.5% Clear Channels Communications, Inc.* ................. 5,600 261,072 ----------- BROKERAGE SERVICES--0.5% Aon Corporation ......................... 6,900 238,947 ----------- CEMENT MANUFACTURING--1.0% Cemex S.A. de C.V. - ADR* ............... 18,700 456,280 ----------- CHEMICALS--2.9% Praxair, Inc. ........................... 10,200 590,580 Syngenta AG - ADR* ...................... 68,100 768,168 ----------- 1,358,748 ----------- COMMUNICATIONS & MEDIA--0.7% Avaya, Inc.* ............................ 64,500 345,075 ----------- COMPUTERS, SOFTWARE & SERVICES--3.4% Compaq Computer Corp. ................... 42,700 432,978 Computer Sciences Corp.* ................ 9,300 441,843 Hewlett-Packard Co. ..................... 26,600 535,192 Parametric Technology Corp.* ............ 31,200 229,632 ----------- 1,639,645 ----------- NUMBER OF SHARES VALUE --------- ----------- CONSTRUCTION & HOUSING--0.6% Masco Corp. ............................. 10,400 $ 291,928 ----------- CONSUMER NON-DURABLES--1.1% Gillette Co. (The) ...................... 14,800 506,012 ----------- DIVERSIFIED--1.7% McGraw-Hill Cos., Inc. (The) ............ 12,000 789,600 ----------- ELECTRIC UTILITIES--1.0% Pinnacle West Capital Corp. ............. 12,000 486,720 ----------- ELECTRONIC COMPONENTS & INSTRUMENTS--2.9% Agilent Technologies, Inc.* ............. 28,700 894,005 Cypress Semiconductor Corp.* ............ 10,300 204,455 LSI Logic Corp.* ........................ 12,200 182,878 National Semiconductor Corp.* ........... 4,000 100,600 ----------- 1,381,938 ----------- FINANCIAL SERVICES--11.4% Citigroup, Inc. ......................... 24,820 1,123,105 Countrywide Credit Industries, Inc. ...................... 17,700 726,585 Fannie Mae .............................. 6,800 532,100 Freddie Mac ............................. 29,100 1,854,834 MBIA, Inc. .............................. 19,850 1,160,232 ----------- 5,396,856 ----------- FOOD & BEVERAGE--1.1% Kraft Foods, Inc., Class A .............. 14,000 547,400 ----------- GAMBLING--1.3% International Game Technology* .......... 9,100 614,432 ----------- HEALTHCARE--1.6% HEALTHSOUTH Corp.* ...................... 31,300 372,783 Lincare Holdings Inc.* .................. 14,800 372,368 ----------- 745,151 ----------- INSURANCE--10.3% ACE Ltd. ................................ 23,600 1,036,040 Allmerica Financial Corp. ............... 8,480 368,711 American International Group, Inc. ........................... 14,495 1,072,195 The accompanying notes are an integral part of the financial statements. 5 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- INSURANCE--(CONTINUED) Berkshire Hathaway, Inc.* ............... 335 $ 812,375 Loews Corp. ............................. 11,100 647,463 Phoenix Companies, Inc. (The)* .......... 13,500 241,650 Radian Group, Inc. ...................... 6,000 280,020 UnumProvident Corp. ..................... 15,900 450,288 ----------- 4,908,742 ----------- MANUFACTURING--1.7% Tyco International Ltd. ................. 28,400 826,440 ----------- MEDICAL SUPPLIES--1.4% Baxter International, Inc. .............. 4,000 221,920 Becton, Dickinson & Co. ................. 12,300 451,287 ----------- 673,207 ----------- OIL & GAS EXPLORATION--9.2% Burlington Resources, Inc. .............. 25,400 954,532 CNOOC Ltd. - ADR ........................ 12,200 260,470 Devon Energy Corp. ...................... 20,200 882,336 El Paso Corp. ........................... 27,364 1,069,385 Petroleo Brasileiro S.A. - ADR* ......... 16,000 392,000 Transocean Sedco Forex, Inc. ............ 28,400 795,484 ----------- 4,354,207 ----------- OIL SERVICES--5.0% Exxon Mobil Corp. ....................... 28,300 1,168,790 Marathon Oil Corp. ...................... 43,200 1,188,000 ----------- 2,356,790 ----------- PAPER & FORESTRY PRODUCTS--3.1% Abitibi-Consolidated, Inc. .............. 55,200 472,512 Boise Cascade Corp. ..................... 7,100 255,245 International Paper Co. ................. 17,600 770,000 ----------- 1,497,757 ----------- PHARMACEUTICALS--6.7% American Home Products Corp. ............ 18,700 1,188,385 Bristol-Myers Squibb Co. ................ 10,500 493,500 Johnson & Johnson ....................... 8,800 535,920 Pharmacia Corp. ......................... 14,300 587,015 Schering-Plough Corp. ................... 10,400 358,696 ----------- 3,163,516 ----------- NUMBER OF SHARES VALUE --------- ----------- PUBLISHING & INFORMATION SERVICES--3.0% Gannett Co., Inc. ....................... 7,400 $ 563,732 Knight-Ridder, Inc. ..................... 3,500 235,900 Reader's Digest Association, Inc. (The), Class A ........................ 29,200 609,696 ----------- 1,409,328 ----------- REAL ESTATE--1.6% Avalonbay Communities, Inc. (REIT) ........................... 4,900 226,086 Equity Residential Properties Trust (REIT) .......................... 8,800 237,160 TrizecHahn Corp. ........................ 20,000 319,000 ----------- 782,246 ----------- RETAIL--2.6% J.C. Penney Company, Inc. (Holding Co.) ......................... 25,600 500,224 May Department Stores Co. (The) ............................. 6,400 234,496 Sears, Roebuck & Co. .................... 9,600 504,768 ----------- 1,239,488 ----------- STEEL--1.3% AK Steel Holding Corp. .................. 26,200 366,538 United States Steel Corp. ............... 15,000 265,800 ----------- 632,338 ----------- TELECOMMUNICATIONS & EQUIPMENT--7.1% 3Com Corp.* ............................. 168,900 810,720 AT&T Corp. .............................. 30,477 473,612 Lucent Technologies, Inc.* .............. 39,100 218,569 SBC Communications, Inc. ................ 13,075 494,758 Sprint Corp. ............................ 62,000 873,580 Verizon Communications, Inc. ............ 10,342 484,006 ----------- 3,355,245 ----------- TOBACCO--1.0% UST, Inc. ............................... 13,000 453,180 ----------- The accompanying notes are an integral part of the financial statements. 6 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- TRANSPORTATION - SHIPPING--0.1% CP Ships Limited ........................ 4,825 $ 53,075 ----------- TOTAL COMMON STOCK (Cost $46,151,475) .................. 46,631,028 ----------- PAR (000) ------ SHORT TERM INVESTMENTS--1.2% Wilmington Fund Cash Sweep 1.491% 03/01/02 ....................... $ 548 548,129 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $548,129) ..................... 548,129 ----------- TOTAL INVESTMENTS--99.3% (Cost $46,699,604) ...................... 47,179,157 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.7% ....................... 346,472 ----------- NET ASSETS--100.0% ......................... $47,525,629 =========== - ----------------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 7 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--95.5% ADVERTISING SERVICES--1.8% Lamar Advertising Co.* .................. 34,105 $ 1,360,448 ----------- AUTOMOTIVE PARTS & EQUIPMENT--1.6% Lear Corp.* ............................. 28,200 1,260,540 ----------- BANKS & SAVINGS & LOANS--3.6% Associated Banc-Corp .................... 14,300 524,238 First Tennessee National Corp. .......... 10,900 376,050 Golden State Bancorp, Inc. .............. 33,300 1,014,984 GreenPoint Financial Corp. .............. 18,500 814,000 ----------- 2,729,272 ----------- CABLE--0.8% Cablevision Systems Corporation- Rainbow Media Group* .................. 23,000 581,900 ----------- CELLULAR/WIRELESS--1.5% United States Cellular Corp.* ........... 29,850 1,158,180 ----------- CHEMICALS--1.0% Ashland, Inc. ........................... 18,200 789,698 ----------- COMPUTERS, SOFTWARE & SERVICES--6.8% Adaptec, Inc.* .......................... 46,800 533,520 BMC Software, Inc.* ..................... 34,300 550,515 Lexmark International, Inc.* ............ 20,900 1,038,939 Maxtor Corp.* ........................... 49,700 355,355 Parametric Technology Corp.* ............ 115,100 847,136 SanDisk Corp.* .......................... 32,800 482,488 Sybase, Inc.* ........................... 62,700 1,057,749 Vignette Corp.* ......................... 135,900 380,520 ----------- 5,246,222 ----------- DIVERSIFIED--2.8% ITT Industries, Inc. .................... 12,100 713,900 Viad Corp. .............................. 57,100 1,421,790 ----------- 2,135,690 ----------- ELECTRIC UTILITIES--4.9% Allegheny Energy, Inc. .................. 12,600 435,582 NSTAR ................................... 17,300 758,432 Pinnacle West Capital Corp. ............. 42,900 1,740,024 NUMBER OF SHARES VALUE --------- ----------- ELECTRIC UTILITIES--(CONTINUED) PPL Corp. ............................... 13,000 $ 423,930 UtiliCorp United, Inc. .................. 16,600 365,864 ----------- 3,723,832 ----------- ELECTRONIC COMPONENTS & INSTRUMENTS--5.1% GlobespanVirata, Inc.* .................. 53,000 594,130 Molex, Inc. ............................. 19,300 571,280 Molex, Inc., Class A .................... 4,970 130,562 National Semiconductor Corp.* ........... 21,500 540,725 Rogers Corp.* ........................... 22,500 326,025 Teradyne, Inc.* ......................... 31,280 1,048,193 Thermo Electron Corp.* .................. 33,400 679,690 ----------- 3,890,605 ----------- ENERGY--2.8% Constellation Energy Group, Inc. ........................... 47,900 1,383,352 Sempra Energy ........................... 35,060 782,539 ----------- 2,165,891 ----------- FINANCIAL SERVICES--2.7% A.G. Edwards, Inc. ...................... 13,300 543,305 Affiliated Managers Group, Inc.* .......................... 8,000 533,040 Countrywide Credit Industries, Inc. ...................... 24,600 1,009,830 ----------- 2,086,175 ----------- FOOD & BEVERAGE--1.2% McCormick & Company, Inc. ............... 18,400 901,600 ----------- HEALTHCARE--7.1% Aetna, Inc. ............................. 18,900 662,634 Apria Healthcare Group, Inc.* ........... 70,905 1,530,839 Health Net, Inc.* ....................... 28,600 693,264 Kindred Healthcare, Inc.* ............... 8,400 335,916 Manor Care, Inc.* ....................... 65,600 1,230,000 Trigon Healthcare, Inc.* ................ 13,600 975,120 ----------- 5,427,773 ----------- The accompanying notes are an integral part of the financial statements. 8 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- HOTELS AND MOTELS--1.8% Hilton Hotels Corp. ..................... 42,800 $ 550,408 Starwood Hotel & Resorts Worldwide, Inc. ....................... 23,430 843,480 ----------- 1,393,888 ----------- INSURANCE--15.2% Allmerica Financial Corp. ............... 28,300 1,230,484 CNA Financial Corp.* .................... 39,575 1,148,071 Everest Re Group Ltd. ................... 10,800 786,780 Jefferson-Pilot Corp. ................... 17,300 874,861 Mercury General Corp. ................... 57,265 2,473,848 Nationwide Financial Services, Inc., Class A ......................... 18,255 738,962 PartnerRe Ltd. .......................... 14,490 820,134 Principal Financial Group, Inc. (The)* ........................... 55,630 1,355,147 Radian Group, Inc. ...................... 48,200 2,249,494 ----------- 11,677,781 ----------- LEISURE & ENTERTAINMENT--1.9% Harrah's Entertainment, Inc.* ........... 15,100 610,644 Six Flags, Inc.* ........................ 56,400 831,900 ----------- 1,442,544 ----------- MANUFACTURING--0.4% York International Corp. ................ 7,985 279,475 ----------- MEDICAL EQUIPMENT AND SUPPLIES--4.0% Apogent Technologies, Inc.* ............. 21,500 516,215 Bausch & Lomb, Inc. ..................... 11,900 451,962 C.R. Bard, Inc. ......................... 23,500 1,278,400 IMS Health, Inc. ........................ 39,400 788,000 ----------- 3,034,577 ----------- METALS - NON-FERROUS--1.0% Phelps Dodge Corp.* ..................... 20,300 769,573 ----------- OIL & GAS EXPLORATION--5.9% Devon Energy Corp. ...................... 20,800 908,544 Diamond Offshore Drilling, Inc. ......... 34,400 996,568 Kerr-McGee Corp. ........................ 19,500 1,078,155 Nabors Industries,Inc.* ................. 13,400 475,298 NUMBER OF SHARES VALUE --------- ----------- OIL & GAS EXPLORATION--(CONTINUED) Pioneer Natural Resources Co.* .......... 18,000 $ 356,760 Swift Energy Co.* ....................... 41,600 750,464 ----------- 4,565,789 ----------- OIL FIELD MACHINERY & EQUIPMENT--0.9% Grant Prideco, Inc.* .................... 54,800 685,548 ----------- PACKAGING & CONTAINERS--2.2% Pactiv Corp.* ........................... 40,700 774,521 Sealed Air Corp.* ....................... 20,300 913,094 ----------- 1,687,615 ----------- PAPER & FORESTRY PRODUCTS--4.0% Abitibi-Consolidated, Inc. .............. 155,300 1,329,368 Boise Cascade Corp. ..................... 26,300 945,485 Temple-Inland, Inc. ..................... 14,800 824,212 ----------- 3,099,065 ----------- PHARMACEUTICALS--0.3% Shire Pharmaceuticals Group PLC* ............................ 11,500 273,470 ----------- PUBLISHING & INFORMATION SERVICES--3.3% Knight-Ridder, Inc. ..................... 14,600 984,040 Reader's Digest Association, Inc. (The), Class A ................... 25,325 528,786 Valassis Communications, Inc.* .......... 26,500 1,019,190 ----------- 2,532,016 ----------- REAL ESTATE--0.8% TrizecHahn Corp. ........................ 37,200 593,340 ----------- RETAIL--6.1% Foot Locker, Inc.* ...................... 61,300 1,011,450 J.C. Penney Company, Inc. (Holding Co.) ......................... 24,300 474,822 Payless ShoeSource, Inc.* ............... 35,200 2,092,288 Tommy Hilfiger Corp.* ................... 86,700 1,136,637 ----------- 4,715,197 ----------- STEEL--1.4% United States Steel Corp. ............... 59,900 1,061,428 ----------- The accompanying notes are an integral part of the financial statements. 9 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- TEXTILES & APPAREL--1.7% Jones Apparel Group, Inc.* .............. 36,000 $ 1,283,760 ----------- TOBACCO--0.9% Loews Corp - Carolina Group* ............ 22,900 681,275 ----------- TOTAL COMMON STOCK (Cost $67,394,442) .................. 73,234,167 ----------- PAR (000) ------- SHORT TERM INVESTMENTS--0.8% Wilmington Fund Cash Sweep 1.491% 03/01/02 ....................... $ 577 577,140 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $577,140) ..................... 577,140 ----------- TOTAL INVESTMENTS--96.3% (Cost $67,971,582) ...................... 73,811,307 ----------- OTHER ASSETS IN EXCESS OF LIABILITIES--3.7% ....................... 2,818,452 ----------- NET ASSETS--100.0% ......................... $76,629,759 =========== - ------------- * Non-income producing. 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 FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ COMMON STOCK--97.2% ADVERTISING--1.4% ADVO, Inc. .............................. 144,700 $ 5,498,600 Penton Media, Inc.* ..................... 62,200 469,610 ----------- 5,968,210 ----------- AEROSPACE & DEFENSE--0.3% DRS Technologies, Inc.* ................. 34,600 1,384,000 ----------- AIR TRANSPORT--0.7% Frontier Airlines, Inc.* ................ 102,800 2,164,968 Mesaba Holdings, Inc.* .................. 77,600 692,192 ----------- 2,857,160 ----------- AUTOMOBILES--0.7% Lithia Motors, Inc.* .................... 143,800 2,818,480 ----------- AUTOMOTIVE--3.1% Coachmen Industries, Inc. ............... 122,200 2,187,380 Dollar Thrifty Automotive Group, Inc.* .......................... 154,344 2,623,848 National R.V. Holdings, Inc.* ........... 152,100 1,521,000 Oshkosh Truck Corp. ..................... 132,700 6,980,020 ----------- 13,312,248 ----------- BANKS & SAVINGS & LOANS--3.2% Bay View Capital Corp. .................. 687,000 4,479,240 BBVA Banco Frances SA - ADR* ............ 57,880 159,749 Fidelity Bankshares, Inc. ............... 12,900 220,590 Flagstar Bancorp, Inc. .................. 124,250 2,932,300 IndyMac Bancorp, Inc.* .................. 216,700 5,326,486 ITLA Capital Corp.* ..................... 7,000 162,323 Local Financial Corp.* .................. 35,200 546,656 ----------- 13,827,344 ----------- BROADCASTING & PUBLISHING--0.2% Liberty Corp. (The) ..................... 20,500 867,150 ----------- BUSINESS & PUBLIC SERVICES--3.1% American Management Systems, Inc.* ........................ 119,800 2,221,092 CDI Corp.* .............................. 95,100 2,006,610 Hall, Kinion & Associates, Inc.* ........ 156,100 1,092,700 NUMBER OF SHARES VALUE --------- ------------ BUSINESS & PUBLIC SERVICES--(CONTINUED) MPS Group, Inc.* ........................ 826,600 $ 5,447,294 Spherion Corp.* ......................... 105,000 976,500 Staff Leasing, Inc. ..................... 90,400 271,200 Wackenhut Corp. (The), Class B .......... 52,400 1,367,640 ----------- 13,383,036 ----------- COMPUTERS, SOFTWARE & SERVICES--6.9% CompuCom Systems, Inc.* ................. 825,700 2,468,843 Covansys Corp.* ......................... 228,200 1,864,394 DataTRACK International, Inc.* .......... 340,000 1,122,000 GameStop Corp.* ......................... 41,900 800,290 Hyperion Solutions Corp.* ............... 121,500 2,619,540 Imation Corp.* .......................... 69,900 1,641,252 Maxtor Corp.* ........................... 579,256 4,141,680 PC-Tel, Inc.* ........................... 542,700 4,363,308 Pomeroy Computer Resources, Inc.* ...................... 169,896 2,385,340 Recoton Corp.* .......................... 193,700 922,012 SPSS, Inc.* ............................. 112,500 1,974,375 Trident Microsystems, Inc.* ............. 97,900 642,224 Vignette Corp.* ......................... 1,585,100 4,438,280 ----------- 29,383,538 ----------- CONSTRUCTION & BUILDING MATERIALS--0.9% Butler Manufacturing Co. ................ 51,800 1,293,964 Insituform Technologies, Inc.* .......... 98,500 2,432,950 ----------- 3,726,914 ----------- CONSTRUCTION & HOUSING--0.8% Fleetwood Enterprises, Inc. ............. 112,700 1,124,746 Modtech Holdings, Inc.* ................. 209,000 1,985,500 Palm Harbor Homes, Inc.* ................ 18,400 382,720 ----------- 3,492,966 ----------- CONSULTING SERVICES--1.9% Navigant Consulting, Inc.* .............. 937,200 5,051,508 Right Management Consultants, Inc.* .................... 130,900 3,277,736 ----------- 8,329,244 ----------- 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 (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ CONSUMER PRODUCTS & SERVICES--4.3% Pennzoil-Quaker State Co. ............... 392,700 $ 5,537,070 Pittston Brink's Group .................. 61,900 1,437,937 Rent-A-Center, Inc.* .................... 126,700 5,427,828 Silgan Holdings, Inc.* .................. 192,900 5,929,746 ------------ 18,332,581 ------------ DATA PROCESSING & REPRODUCTION--0.4% FileNET Corp.* .......................... 102,900 1,686,531 ------------ DISTRIBUTION--2.0% Bell Microproducts, Inc.* ............... 222,200 2,441,978 Daisytek International Corp.* ........... 212,200 3,095,998 Owens & Minor, Inc. ..................... 169,800 3,226,200 ------------ 8,764,176 ------------ ELECTRIC UTILITIES--1.5% El Paso Electric Co.* ................... 81,300 1,167,468 Green Mountain Power Corp. .............. 27,700 480,595 Sierra Pacific Resources ................ 294,600 4,757,790 ------------ 6,405,853 ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--1.1% Therma-Wave, Inc.* ...................... 74,000 836,200 UCAR International, Inc.* ............... 231,200 2,490,024 Ultratech Stepper, Inc.* ................ 87,900 1,379,151 ------------ 4,705,375 ------------ ELECTRONICS--0.7% Integrated Electrical Services, Inc.* ....................... 707,100 3,075,885 ------------ ENTERTAINMENT--1.7% Acclaim Entertainment, Inc.* ............ 721,700 2,771,328 Topps Co., Inc. (The)* .................. 232,200 2,226,798 WMS Industries, Inc.* ................... 136,700 2,319,799 ------------ 7,317,925 ------------ ENVIRONMENTAL SERVICES--0.1% Exponent, Inc.* ......................... 43,500 563,325 ------------ NUMBER OF SHARES VALUE --------- ------------ FINANCIAL SERVICES--3.3% Advanta Corp., Class B .................. 125,300 $ 1,133,965 BKF Capital Group, Inc.* ................ 29,500 817,150 Brookline Bancorp, Inc. ................. 22,900 375,102 Century Business Services, Inc.* ........ 103,200 335,400 Charter Municipal Mtg. Accpt ............ 84,000 1,330,560 Gladstone Capital Corp. ................. 157,800 2,714,160 Saxon Capital, Inc.* .................... 676,500 7,509,150 ------------ 14,215,487 ------------ GAMBLING--0.8% Scientific Games Corp.* ................. 354,100 3,342,704 ------------ GAS & OIL SUPPLIER--0.4% World Fuel Services Corp. ............... 110,700 1,826,550 ------------ HEALTHCARE--8.5% Apria Healthcare Group, Inc.* ........... 615,800 13,295,122 Kindred Healthcare, Inc.* ............... 100,700 4,026,993 NBTY, Inc.* ............................. 503,300 7,468,972 RehabCare Group, Inc.* .................. 318,300 7,088,541 Renal Care Group, Inc.* ................. 103,200 3,168,240 Res-Care, Inc.* ......................... 146,500 1,196,905 ------------ 36,244,773 ------------ INSURANCE--12.0% American Physicians Capital, Inc.* ........................ 140,400 2,497,716 Annuity and Life Re (Holdings) Ltd. ....................... 332,900 5,519,482 Arch Capital Group Ltd.* ................ 126,800 3,410,920 CNA Surety Corp. ........................ 64,000 915,200 FPIC Insurance Group, Inc.* ............. 197,900 2,455,939 Hilb, Rogal & Hamilton Co. .............. 93,800 3,334,590 Insurance Auto Auctions, Inc.* .......... 111,914 1,701,093 IPC Holdings Ltd. ....................... 367,800 11,442,258 LandAmerica Financial Group, Inc. ........................... 35,000 1,048,950 Max Re Capital Ltd. ..................... 140,700 2,232,909 Mutual Risk Management Ltd. ............. 411,000 480,870 Odyssey Re Holdings Corp. ............... 259,400 4,298,258 PMA Capital Corp. ....................... 138,300 2,821,320 The accompanying notes are an integral part of the financial statements. 12 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ INSURANCE--(CONTINUED) RenaissanceRe Holdings Ltd. ............. 19,600 $ 2,123,268 Scottish Annuity & Life Holdings Ltd. ......................... 86,800 1,380,120 W.R. Berkley Corp. ...................... 103,000 5,613,500 ------------ 51,276,393 ------------ INTERNET--1.9% CheckFree Corp.* ........................ 87,100 1,215,045 DoubleClick, Inc.* ...................... 334,100 3,598,257 Earthlink, Inc.* ........................ 349,200 3,132,324 ------------ 7,945,626 ------------ MACHINERY & ENGINEERING--1.1% AGCO Corp.* ............................. 169,700 3,811,462 Lindsay Manufacturing Co. ............... 44,100 948,150 ------------ 4,759,612 ------------ MANUFACTURING--2.7% Actuant Corp., Class A* ................. 92,900 3,670,479 Foamex International, Inc.* ............. 277,500 2,236,650 Quixote Corp. ........................... 171,200 3,086,736 Toro Co. (The) .......................... 42,200 2,392,740 ------------ 11,386,605 ------------ MEDICAL EQUIPMENT AND SUPPLIES--3.9% Cooper Companies, Inc., (The) ........... 62,800 2,969,812 Option Care, Inc.* ...................... 425,200 6,080,360 Orthofix International N.V.* ............ 45,400 1,566,300 PAREXEL International Corp.* ............ 66,700 1,016,508 Sola International, Inc.* ............... 460,100 5,180,726 ------------ 16,813,706 ------------ MEDICAL PROVIDERS & SERVICES--0.4% VCA Antech, Inc.* ....................... 134,100 1,748,664 ------------ METALS & MINING--1.0% Joy Global, Inc.* ....................... 198,300 2,796,030 Massey Energy Co. ....................... 104,900 1,483,286 ------------ 4,279,316 ------------ NUMBER OF SHARES VALUE --------- ------------ OIL & GAS EXPLORATION--2.4% EXCO Resources, Inc.* ................... 21,700 $ 327,236 Gulf Indonesia Resources Ltd.* .......... 116,000 997,600 Parker Drilling Co.* .................... 333,700 1,404,877 Pride International, Inc.* .............. 266,000 3,426,080 Swift Energy Co.* ....................... 240,300 4,335,012 ------------ 10,490,805 ------------ OIL FIELD MACHINERY & EQUIPMENT--1.4% Grant Prideco, Inc.* .................... 484,100 6,056,091 ------------ OIL SERVICES--1.4% Cal Dive International, Inc.* ........... 178,400 4,089,285 Enbridge Energy Partners, L.P. .......... 45,600 1,922,040 ------------ 6,011,325 ------------ PACKAGING & CONTAINERS--0.6% Ivex Packaging Corp.* ................... 42,000 923,580 Tupperware Corp. ........................ 83,300 1,680,994 ------------ 2,604,574 ------------ PRINTING SERVICES--0.3% Consolidated Graphics, Inc.* ............ 73,500 1,368,570 ------------ PUBLISHING & INFORMATION SERVICES--1.3% Pulitzer, Inc. .......................... 25,800 1,315,542 R.H. Donnelley Corp.* ................... 133,700 3,849,223 Value Line, Inc. ........................ 10,100 470,660 ------------ 5,635,425 ------------ RAILROADS--0.9% RailAmerica, Inc.* ...................... 344,400 3,809,064 ------------ REAL ESTATE--6.5% Capital Automotive (REIT) ............... 99,800 2,142,706 Coldwater Creek, Inc.* .................. 45,000 698,850 Corporate Office Properties Trust (REIT) .......................... 251,275 3,065,555 FBR Asset Investment Corp. (REIT)* ......................... 93,200 2,551,816 Insignia Financial Group, Inc.* ......... 356,500 3,600,650 The accompanying notes are an integral part of the financial statements. 13 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ REAL ESTATE--(CONTINUED) Jones Lang LaSalle, Inc.* ............... 91,500 $ 1,690,920 LNR Property Corp. ...................... 109,200 3,614,520 Redwood Trust, Inc. (REIT) .............. 191,200 4,955,904 Trammell Crow Co.* ...................... 448,800 5,394,576 ------------ 27,715,497 ------------ RETAIL--7.9% Charming Shoppes, Inc.* ................. 606,500 4,573,010 Claire's Stores, Inc. ................... 152,400 2,889,504 Duane Reade, Inc.* ...................... 51,100 1,599,430 Friedman's, Inc. ........................ 256,300 2,534,807 InterTAN, Inc.* ......................... 107,000 1,279,720 J. Jill Group, Inc.* .................... 131,700 3,048,855 Men's Wearhouse, Inc. (The)* ............ 267,900 6,579,624 Oakley, Inc.* ........................... 199,100 3,221,438 Pier 1 Imports, Inc. .................... 267,625 5,344,471 School Specialty, Inc.* ................. 21,700 608,034 Steven Madden Ltd.* ..................... 85,100 1,276,500 Tommy Hilfiger Corp.* ................... 78,300 1,026,513 ------------ 33,981,906 ------------ TELECOMMUNICATIONS--0.9% Lightbridge, Inc.* ...................... 346,100 3,384,858 Netro Corp.* ............................ 210,900 624,264 ------------ 4,009,122 ------------ TOBACCO--2.1% DIMON, Inc. ............................. 418,800 3,120,060 Standard Commercial Corp. ............... 166,900 3,121,030 Universal Corp. ......................... 71,800 2,636,496 ------------ 8,877,586 ------------ TRANSPORTATION--0.3% UTI Worldwide, Inc.* .................... 79,400 1,349,800 ------------ TRAVEL SERVICES--0.2% Ambassadors International, Inc.* ........ 44,500 912,250 ------------ TOTAL COMMON STOCK (Cost $398,507,028) ................. 416,863,392 ------------ NUMBER OF SHARES VALUE --------- ------------ PREFERRED STOCKS--0.2% OIL & GAS EXPLORATION--0.2% EXCO Resources, Inc. 5.00% 05/23/03* ....................... 43 $ 715,015 ------------ TOTAL PREFERRED STOCKS (Cost $886,315) ..................... 715,015 ------------ PAR (000) -------- SHORT TERM INVESTMENTS--3.1% Wilmington Fund Cash Sweep 1.491% 03/01/02 ....................... $ 13,250 13,250,404 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $13,250,404) .................. 13,250,404 ------------ TOTAL INVESTMENTS--100.5% (Cost $412,643,747) ..................... 430,828,811 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS--(0.5%) .................... (2,136,669) ------------ NET ASSETS--100.0% ......................... $428,692,142 ============ - -------------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 14 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- LONG POSITIONS--91.7% DOMESTIC COMMON STOCK--87.0% ADVERTISING SERVICES--1.0% Lamar Advertising Co.* .................. 25,900 $ 1,033,151 ------------ AEROSPACE/DEFENSE--2.2% Ducommun, Inc.* ......................... 61,300 852,070 Empresa Brasileira de Aeronautica S.A. - ADR ............................ 55,400 1,216,030 Rockwell Collins, Inc. .................. 9,800 227,850 ------------ 2,295,950 ------------ BANKS & SAVINGS & LOANS--3.4% Bay View Capital Corp. .................. 150,079 978,515 First International Bancorp, Inc. - Restricted Escrow Shares .............. 11,100 0 Unibanco - Uniao de Bancos Brasileiros S.A. - GDR ................ 66,600 1,611,720 Wintrust Financial Corp. ................ 30,800 1,003,156 ------------ 3,593,391 ------------ BROADCASTING & PUBLISHING--6.3% Acme Communications, Inc.* .............. 108,700 907,645 Gemstar-TV Guide International, Inc.* .................. 72,300 1,322,367 Liberty Corp. (The) ..................... 23,900 1,010,970 Liberty Media Corp., Class A* ........... 69,400 888,320 Lynch Interactive Corp.* ................ 13,700 561,700 Sinclair Broadcasting Group, Inc., Class A* .............................. 92,000 1,058,920 USA Networks, Inc.* ..................... 27,600 815,856 ------------ 6,565,778 ------------ BUSINESS & PUBLIC SERVICES--4.9% Hall, Kinion & Associates, Inc.* ........ 106,100 742,700 Interep National Radio Sales, Inc., Class A* .............................. 270,900 1,151,325 Spherion Corp.* ......................... 44,000 409,200 Staff Leasing, Inc. ..................... 362,400 1,087,200 Wackenhut Corp. (The), Class B .......... 67,300 1,756,530 ------------ 5,146,955 ------------ NUMBER OF SHARES VALUE --------- ----------- CHEMICALS--0.4% Southwall Technologies, Inc.* ........... 56,800 $ 453,236 ------------ COMPUTERS, SOFTWARE & SERVICES--10.1% Ascential Software Corp.* ............... 147,300 574,470 Compuware Corp.* ........................ 83,000 947,030 Hoover's, Inc.* ......................... 66,900 304,395 NEON Systems, Inc.* ..................... 58,150 393,094 NetIQ Corp.* ............................ 39,400 854,980 Netopia, Inc.* .......................... 194,700 776,853 Ontrack Data International, Inc.* ....... 51,900 467,100 Oracle Corp.* ........................... 66,700 1,108,554 Parametric Technology Corp.* ............ 103,800 763,968 RADVision Ltd.* ......................... 169,800 959,370 SilverStream Software, Inc.* ............ 52,000 249,600 Sun Microsystems, Inc.* ................. 59,100 502,941 Trident Microsystems, Inc.* ............. 176,900 1,160,464 Vignette Corp.* ......................... 168,000 470,400 Wipro Ltd. - ADR ........................ 27,700 1,008,280 ------------ 10,541,499 ------------ CONSTRUCTION & HOUSING--1.5% Cavalier Homes, Inc.* ................... 148,400 555,016 Shaw Group, Inc. (The)* ................. 34,400 835,576 Southern Energy Homes, Inc.* ............ 79,000 184,860 ------------ 1,575,452 ------------ CONSULTING SERVICES--1.8% Navigant Consulting, Inc.* .............. 280,700 1,512,973 SITEL Corp.* ............................ 147,700 367,773 ------------ 1,880,746 ------------ CONSUMER PRODUCTS & SERVICES--2.0% Pennzoil-Quaker State Co. ............... 61,600 868,560 Rent-Way, Inc.* ......................... 130,200 716,100 Service Corp. International* ............ 93,800 453,054 ------------ 2,037,714 ------------ ELECTRIC UTILITIES--0.3% Green Mountain Power Corp. .............. 15,600 270,660 ------------ 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, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--0.2% PCD, Inc.* .............................. 21,600 $ 28,080 Rockwell Automation, Inc. ............... 8,500 167,875 ------------ 195,955 ------------ ENERGY EQUIPMENT & SERVICES--0.1% Rentech, Inc.* .......................... 234,500 131,320 ------------ ENVIRONMENTAL SERVICES--0.6% Exponent, Inc.* ......................... 47,000 608,650 ------------ FINANCIAL SERVICES--7.1% A.G. Edwards, Inc. ...................... 25,800 1,053,930 American Express Co. .................... 30,600 1,115,370 BKF Capital Group, Inc.* ................ 32,700 905,790 Century Business Services, Inc.* ....................... 59,900 194,675 Gladstone Capital Corp. ................. 64,500 1,109,400 London Pacific Group Ltd. - ADR ............................ 246,600 826,110 SoundView Technology Group, Inc.* .......................... 870,500 2,176,250 ------------ 7,381,525 ------------ HEALTHCARE--1.8% Kindred Healthcare, Inc.* ............... 12,000 479,880 Pediatric Services of America, Inc.* ........................ 42,000 543,900 RehabCare Group, Inc.* .................. 37,700 839,579 ------------ 1,863,359 ------------ INSURANCE--11.0% Allmerica Financial Corp. ............... 34,600 1,504,408 American International Group, Inc. ........................... 17,900 1,324,063 American Physicians Capital, Inc.* ........................ 25,100 446,529 Annuity and Life Re (Holdings) Ltd. ....................... 37,700 625,066 Highlands Insurance Group, Inc.* .......................... 41,100 1,438 Hub International Ltd.* ................. 78,400 831,040 NUMBER OF SHARES VALUE --------- ----------- INSURANCE--(CONTINUED) IPC Holdings Ltd. ....................... 58,500 $ 1,819,935 Loews Corp. ............................. 16,900 985,777 Nationwide Financial Services, Inc., Class A ............................... 21,800 882,464 Phoenix Companies, Inc. (The)* ........................... 53,500 957,650 Radian Group, Inc. ...................... 26,900 1,255,423 Trenwick Group Ltd. ..................... 101,900 835,580 ------------ 11,469,373 ------------ INTERNET--4.3% CheckFree Corp.* ........................ 54,800 764,460 ePresence, Inc.* ........................ 63,600 236,592 Keynote Systems, Inc.* .................. 99,600 870,504 NetRatings, Inc.* ....................... 52,800 609,840 Packeteer, Inc.* ........................ 153,000 887,400 RADWARE Ltd.* ........................... 71,800 773,286 WebEx Communications, Inc.* ............. 29,600 338,032 ------------ 4,480,114 ------------ LEISURE & ENTERTAINMENT--2.0% Concord Camera Corp.* ................... 307,600 2,103,984 ------------ MANUFACTURING--2.7% Columbus McKinnon Corp. ................. 2,800 28,000 Foamex International, Inc.* ............. 19,100 153,946 Rexam PLC - ADR ......................... 30,700 948,630 Tyco International Ltd. ................. 56,202 1,635,478 ------------ 2,766,054 ------------ MEDICAL EQUIPMENT AND SUPPLIES--2.4% IMS Health, Inc. ........................ 47,400 948,000 Lynx Therapeutics, Inc.* ................ 185,900 492,635 VitalWorks, Inc.* ....................... 209,900 1,024,312 Zimmer Holdings, Inc.* .................. 2,060 73,666 ------------ 2,538,613 ------------ OFFICE EQUIPMENT & SUPPLIES--0.9% Danka Business Systems PLC - ADR* ............................ 422,400 887,040 ------------ 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, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- OIL & GAS EXPLORATION--5.6% Cooper Cameron Corp.* ................... 22,700 $ 1,019,230 EXCO Resources, Inc.* ................... 38,900 586,612 Gulf Indonesia Resources Ltd.* .......... 74,800 643,280 Ocean Energy, Inc. ...................... 51,200 934,400 Pioneer Natural Resources Co.* .......... 47,400 939,468 Swift Energy Co.* ....................... 50,300 907,412 Transocean Sedco Forex, Inc. ............ 30,600 857,106 ------------ 5,887,508 ------------ PAPER & FORESTRY PRODUCTS--3.4% Abitibi-Consolidated, Inc. .............. 78,100 668,536 Buckeye Technologies, Inc.* ............. 87,000 1,022,250 Caraustar Industries, Inc. .............. 96,000 837,120 Louisiana-Pacific Corp.* ................ 105,500 1,064,495 ------------ 3,592,401 ------------ PUBLISHING & INFORMATION SERVICES--1.1% Knight-Ridder, Inc. ..................... 7,100 478,540 Value Line, Inc. ........................ 14,700 685,020 ------------ 1,163,560 ------------ RAILROADS--1.0% Canadian Pacific Railway Ltd. ........... 54,300 1,091,430 ------------ RESTAURANTS--0.9% Triarc Companies, Inc. .................. 36,600 982,710 ------------ RETAIL--4.0% Dillard's, Inc., Class A ................ 59,500 1,195,950 Men's Wearhouse, Inc. (The)* ............ 49,500 1,215,720 RDO Equipment Co., Class A* ............. 73,200 325,740 Shop At Home, Inc.* ..................... 155,100 418,770 Vans, Inc.* ............................. 77,000 1,062,600 ------------ 4,218,780 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--1.2% OmniVision Technologies, Inc.* .......... 70,900 510,480 Pericom Semiconductor Corp.* ............ 68,300 785,450 ------------ 1,295,930 ------------ NUMBER OF SHARES VALUE --------- ----------- STEEL--1.3% United States Steel Corp. ............... 78,000 $ 1,382,160 ------------ TELECOMMUNICATIONS & EQUIPMENT--1.1% Lucent Technologies, Inc.* .............. 140,700 786,513 Optical Cable Corp.* .................... 501,400 350,980 WorldCom, Inc., - MCI Group ............. 1,464 10,087 ------------ 1,147,580 ------------ TRANSPORTATION--0.4% Hub Group, Inc., Class A* ............... 53,700 443,025 Morgan Group Holding Co.* ............... 12,900 15,544 ------------ 458,569 ------------ TOTAL DOMESTIC COMMON STOCK (Cost $92,769,135) .................. 91,041,147 ------------ FOREIGN COMMON STOCKS--0.1% CANADA--0.1% OIL & GAS EXPLORATION--0.1% Antrim Energy, Inc.* .................... 113,766 41,125 ------------ TOTAL FOREIGN COMMON STOCKS (Cost $87,857) ...................... 41,125 ------------ PREFERRED STOCKS--0.6% OIL & GAS EXPLORATION--0.6% EXCO Resources, Inc. 5.00% 05/23/03* ....................... 37,900 624,402 ------------ TOTAL PREFERRED STOCKS (Cost $759,118) ..................... 624,402 ------------ PAR (000) ----- SHORT-TERM INVESTMENTS--4.0% Wilmington Fund Cash Sweep .............. $ 4,215 4,215,203 ------------ TOTAL SHORT-TERM INVESTMENTS (Cost $4,215,203) ................... 4,215,203 ------------ TOTAL LONG POSITIONS--91.7% (Cost $97,831,313) .................. 95,921,877 ------------ 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, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ SECURITIES SOLD SHORT--(76.8%) AEROSPACE & DEFENSE--(0.2%) Environmental Tectonics Corp.* .......... (25,200) $ (162,540) ------------ AIR TRANSPORT--(1.1%) America West Holdings Corp., Class B* .............................. (64,700) (233,567) US Airways Group, Inc.* ................. (176,600) (939,512) ------------ (1,173,079) ------------ AUTOMOTIVE--(2.8%) Group 1 Automotive, Inc.* ............... (37,600) (1,411,128) Harley-Davidson, Inc. ................... (7,900) (404,954) Sonic Automotive, Inc. .................. (18,800) (494,064) Sports Resorts International, Inc.* .................. (45,600) (293,208) United Auto Group, Inc.* ................ (16,800) (360,528) ------------ (2,963,882) ------------ BANKING--(2.7%) Charter One Financial, Inc. ............. (14,800) (450,808) Great Southern Bancorp, Inc. ............ (31,500) (943,425) Hudson United Bancorp ................... (13,800) (423,660) Roslyn Bancorp, Inc. .................... (48,500) (973,880) ------------ (2,791,773) ------------ BUILDING & BUILDING MATERIALS--(3.1%) M.D.C. Holdings, Inc. ................... (12,495) (548,406) Meritage Corp.* ......................... (21,950) (1,376,484) Sherwin-Williams Co. (The) .............. (23,700) (626,154) Universal Forest Products, Inc. ......... (28,700) (652,638) ------------ (3,203,682) ------------ BUSINESS & PUBLIC SERVICES--(2.9%) Administaff, Inc.* ...................... (21,700) (520,583) Corporate Executive Board Co. (The)* ............................ (30,100) (948,451) Gaiam, Inc.* ............................ (25,700) (461,572) Mobile Mini, Inc.* ...................... (11,900) (411,621) Paychex, Inc. ........................... (19,800) (731,610) ------------ (3,073,837) ------------ NUMBER OF SHARES VALUE --------- ----------- CHEMICALS--(2.3%) Albemarle Corp. ......................... (24,700) $ (585,637) Cabot Microelectronics Corp.* ........... (11,900) (654,976) Ferro Corp. ............................. (10,900) (291,684) PPG Industries, Inc. .................... (16,800) (862,680) ------------ (2,394,977) ------------ COMPUTERS, SOFTWARE & SERVICES--(11.5%) Advent Software, Inc.* .................. (14,900) (722,799) Apple Computer, Inc.* ................... (28,400) (616,280) CACI International, Inc., Class A* ...... (21,800) (740,110) Cognizant Technology Solutions Corp.* ...................... (18,800) (666,648) Concurrent Computer Corp.* .............. (10,700) (107,107) ConSyGen, Inc.* ......................... (200) 0 Drexler Technology Corp.* ............... (19,700) (390,848) Echelon Corp.* .......................... (24,400) (387,960) Electronic Arts, Inc.* .................. (16,900) (909,558) Extended Systems, Inc.* ................. (30,400) (184,990) InFocus Corp.* .......................... (6,800) (118,048) Kronos, Inc.* ........................... (18,400) (823,768) Macrovision Corp.* ...................... (17,000) (396,950) Mentor Graphics Corp.* .................. (32,600) (707,746) Midway Games, Inc.* ..................... (83,400) (976,614) OPNET Technologies, Inc.* ............... (43,400) (381,920) Overland Data, Inc.* .................... (8,300) (102,920) PEC Soulutions, Inc.* ................... (11,800) (270,338) Precise Software Solutions Ltd. ......... (33,600) (710,976) Retek, Inc.* ............................ (33,000) (660,660) Secure Computing Corp.* ................. (7,800) (118,794) Take-Two Interactive Software, Inc.* ....................... (16,800) (312,984) Veritas Software Corp. .................. (17,800) (631,722) Wipro Ltd. - ADR ........................ (27,700) (1,008,280) Xybernaut Corp.* ........................ (59,300) (116,228) ------------ (12,064,248) ------------ CONSTRUCTION & HOUSING--(0.7%) American Woodmark Corp. ................. (3,000) (198,000) Standard Pacific Corp. .................. (18,800) (537,304) ------------ (735,304) ------------ The accompanying notes are an integral part of the financial statements. 18 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- CONSUMER PRODUCTS--(3.2%) American Greetings Corp., Class A* .............................. (62,300) $ (857,871) Eastman Kodak Co. ....................... (44,600) (1,404,900) Minnesota Mining and Manufacturing Co. (3M) ................ (6,000) (707,580) Scotts Co. (The), Class A* .............. (8,900) (418,389) ------------ (3,388,740) ------------ DATA PROCESSING & REPRODUCTION--(0.6%) Total Systems Services, Inc. ............ (26,700) (616,770) ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--(1.4%) Alpha Industries, Inc.* ................. (23,700) (365,217) Micron Technology, Inc.* ................ (13,900) (446,885) Pixelworks, Inc.* ....................... (63,300) (665,283) ------------ (1,477,385) ------------ ELECTRONIC EQUIPMENT & PRODUCTS--(2.1%) Eletro Scientific Industries, Inc.* ..................... (13,000) (415,480) KEMET Corp.* ............................ (23,700) (386,073) KLA-Tencor Corp.* ....................... (12,900) (747,039) Trimble Navigation Ltd.* ................ (49,400) (642,200) ------------ (2,190,792) ------------ ENERGY--(0.4%) FuelCell Energy, Inc.* .................. (27,300) (416,598) ------------ FINANCIAL SERVICES--(0.8%) Morgan Stanley Dean Witter & Co. .......................... (16,800) (825,216) Nextcard, Inc. .......................... (128,500) (17,990) ------------ (843,206) ------------ FOOD & BEVERAGE--(2.2%) Fleming Companies, Inc. ................. (46,200) (753,060) Great Atlantic & Pacific Tea Company, Inc. (The) ................... (13,300) (360,430) Safeway, Inc.* .......................... (14,900) (640,402) Sensient Technologies Corp. ............. (27,700) (589,733) ------------ (2,343,625) ------------ NUMBER OF SHARES VALUE --------- ----------- HEALTHCARE--(0.7%) UnitedHealth Group, Inc. ................ (9,900) $ (717,651) INSURANCE--(1.9%) Conseco, Inc.* ........................... (259,900) (974,625) Sun Life Financial Services of Canada, Inc. .......................... (47,500) (988,000) ------------ (1,962,625) ------------ INTERNET SOFTWARE & SERVICES--(4.1%) 1-800 CONTACTS, Inc.* ................... (27,600) (307,188) Akamai Technologies, Inc.* .............. (71,700) (222,987) Answerthink, Inc.* ...................... (25,400) (124,460) Exult, Inc.* ............................ (84,100) (921,736) Interliant, Inc.* ....................... (600) (234) Manugistics Group, Inc.* ................ (25,500) (330,480) MatrixOne, Inc.* ........................ (39,700) (449,404) PayPal, Inc.* ........................... (54,200) (811,916) Raindance Communications, Inc.* ................................. (75,700) (230,885) Stellent, Inc.* ......................... (31,100) (466,189) Support.com, Inc.* ...................... (29,900) (115,115) WebEx Communications, Inc.* ............. (29,600) (338,032) ------------ (4,318,626) ------------ MACHINERY & ENGINEERING--(1.5%) Brooks Automation, Inc.* ................ (18,800) (822,876) JLG Industries, Inc. .................... (50,400) (709,632) ------------ (1,532,508) ------------ MEDICAL EQUIPMENT--(3.9%) Cerus Corp.* ............................ (8,900) (418,567) Computerized Thermal Imaging, Inc.* ........................ (35,700) (49,266) Endocare, Inc.* ......................... (30,400) (458,432) Haemonetics Corp.* ...................... (12,800) (385,024) Human Genome Sciences, Inc.* ............ (16,600) (340,632) Hycor Biomedical, Inc.* ................. (25,400) (135,890) IMPATH, Inc.* ........................... (40,700) (1,413,511) Intuitive Surgical, Inc.* ............... (45,400) (417,680) Vasomedical, Inc.* ...................... (146,900) (408,382) ------------ (4,027,384) ------------ The accompanying notes are an integral part of the financial statements. 19 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- MEDICAL SUPPLIES--(1.1%) D & K Healthcare Resources, Inc. ....................... (300) $ (16,224) ICU Medical, Inc.* ...................... (4,400) (239,140) InterMune, Inc.* ........................ (7,900) (286,849) Martek Biosciences Corp.* ............... (19,800) (532,224) Myriad Genetics, Inc.* .................. (3,000) (98,250) ------------ (1,172,687) ------------ MINING & METALS--(1.4%) Arch Coal, Inc. ......................... (19,700) (357,555) CONSOL Energy, Inc. ..................... (17,800) (413,850) Westmoreland Coal Co. ................... (52,400) (689,060) ------------ (1,460,465) ------------ OIL & GAS EXPLORATION--(0.5%) Penn Virginia Corp. ..................... (12,800) (462,208) ------------ OIL SERVICES--(1.8%) Baker Hughes, Inc. ...................... (25,700) (907,467) Hanover Compressor Co.* ................. (400) (7,020) Schlumberger Ltd. ....................... (16,900) (983,749) ------------ (1,898,236) ------------ PHARMACEUTICALS--(4.7%) Cardinal Health, Inc. ................... (12,900) (852,561) Forest Laboratories, Inc.* .............. (5,000) (397,600) Gilead Sciences, Inc.* .................. (6,900) (486,174) ICOS Corp.* ............................. (14,900) (639,210) Kos Pharmaceuticals, Inc.* .............. (12,800) (291,712) Scios, Inc.* ............................ (42,500) (849,575) Syncor International Corp.* ............. (35,650) (935,812) Tularik, Inc.* .......................... (25,700) (462,600) ------------ (4,915,244) ------------ PRINTING SERVICES--(0.2%) Multi-Color Corp.* ...................... (14,750) (195,438) ------------ REAL ESTATE--(0.6%) Alexandria Real Estate Equities, Inc. (REIT) ........................... (13,900) (574,765) NUMBER OF SHARES VALUE --------- ----------- RECREATION--(0.4%) Bally Total Fitness Holding Corp.* ................................ (25,100) $ (425,445) ------------ RESTAURANTS, HOTELS & CASINOS--(1.4%) Outback Steakhouse, Inc.* ............... (10,100) (360,166) Panera Bread Co., Class A* .............. (7,900) (407,956) Papa John's International, Inc.* ........ (27,700) (717,707) ------------ (1,485,829) ------------ RETAIL--(3.5%) AutoZone, Inc.* ......................... (7,900) (524,244) Best Buy Co., Inc.* ..................... (12,000) (808,800) Cost Plus, Inc.* ........................ (15,800) (402,900) Dollar General Corp. .................... (23,700) (349,575) Longs Drug Stores Corp. ................. (33,000) (864,600) Movie Gallery, Inc.* .................... (55,300) (732,172) ------------ (3,682,291) ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--(6.5%) Advanced Energy Industries, Inc.* ..................... (15,400) (386,540) ASML Holding N.V.* ...................... (46,500) (946,275) Asyst Technologies, Inc.* ............... (25,800) (432,924) Credence Systems Corp.* ................. (35,600) (558,208) Entegris, Inc.* ......................... (37,500) (387,000) Integrated Circuit Systems, Inc.* ....... (40,600) (751,506) IXYS Corp.* ............................. (50,300) (453,203) Linear Technology Corp. ................. (13,900) (511,937) MKS Instruments, Inc.* .................. (26,550) (713,133) Novellus Systems, Inc.* ................. (18,800) (800,692) Rudolph Technologies, Inc.* ............. (23,800) (882,980) ------------ (6,824,398) ------------ TELECOMMUNICATIONS & EQUIPMENT--(2.6%) CIENA Corp.* ............................ (58,200) (451,632) Choice One Communications, Inc.* ................................. (55,900) (81,055) Digital Lightwave, Inc.* ................ (58,000) (280,140) Finisar Corp.* .......................... (34,400) (209,840) Level 3 Communications, Inc.* ........... (168,800) (509,776) The accompanying notes are an integral part of the financial statements. 20 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2002 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- TELECOMMUNICATIONS & EQUIPMENT--(CONTINUED) Metro One Telecommunications, Inc.* ................................. (400) $ (8,940) Network Plus Corp.* ..................... (1,100) 0 NTELOS, Inc.* ........................... (16,700) (69,305) RCN Corp.* .............................. (145,200) (190,212) SeaChange International, Inc.* .......... (22,700) (463,761) Spectrian Corp.* ........................ (15,000) (184,050) US LEC Corp., Class A* .................. (57,400) (268,058) ------------ (2,716,769) ------------ TEXTILES & APPAREL--(0.8%) Cintas Corp. ............................ (17,800) (788,362) ------------ TRANSPORTATION--(0.6%) Consolidated Freightways Corp.* ................................ (44,000) (207,680) Kirby Corp.* ............................ (14,800) (450,660) ------------ (658,340) ------------ WHOLESALE-WAREHOUSE--(0.6%) Watsco, Inc. ............................ (42,500) (635,375) ------------ TOTAL SECURITIES SOLD SHORT (Proceeds $84,064,690) .............. (80,295,084) ------------ NET INVESTMENTS IN SECURITIES--14.9% (Cost $13,766,623) ...................... 15,626,793 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--85.1% ................... 88,991,410 ------------ NET ASSETS--100.0% ......................... $104,618,203 ============ - ------------- * Non-income producing. ADR -- American Depository Receipt. GDR -- Global Depository Receipt. REIT -- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 21 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 28, 2002 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II EQUITY FUND ----------- ------------ ------------- ------------- ASSETS Investments, at value (cost-- $46,699,604, $67,971,582, $412,643,747, and $97,831,313, respectively) ..................... $47,179,157 $73,811,307 $430,828,811 $ 95,921,877 Receivable from Transfer Agent -- -- -- 486 Deposits with brokers and custodian bank for securities sold short -- -- -- 91,684,364 Receivable for investments sold .................. 376,977 6,424,489 7,919,419 7,215,983 Receivable for fund shares sold .................. 277,078 28,172 830,281 300,533 Prepaid expenses ................................. 16,148 14,937 28,340 12,229 Dividends and interest receivable ................ 79,967 76,664 148,660 100,884 ----------- ------------ ------------ ------------ Total assets ................................... 47,929,327 80,355,569 439,755,511 195,236,356 ----------- ------------ ------------ ------------ LIABILITIES Payable for investments purchased ................ 361,007 1,523,048 8,513,621 9,919,538 Securities sold short (proceeds $84,064,690) ..... -- -- -- 80,295,084 Payable for fund shares redeemed ................. -- 2,119,037 1,991,810 157,974 Accrued expenses and other liabilities ........... 42,691 83,725 557,938 203,431 Payable for dividends on securities sold short ... -- -- -- 42,126 ----------- ------------ ------------ ------------ Total liabilities .............................. 403,698 3,725,810 11,063,369 90,618,153 ----------- ------------ ------------ ------------ NET ASSETS Capital stock, $0.001 par value .................. 3,934 6,804 24,855 6,807 Paid-in capital .................................. 46,058,141 73,482,864 417,270,003 104,766,313 Undistributed net investment income/(loss) ....... 139,797 -- -- 7 Accumulated net realized gain/(loss) from investments and foreign exchange transactions, if any ........................... 844,204 (2,699,634) (6,787,780) (1,353,108) Accumulated net realized gain from investments sold short ......................... -- -- -- (661,986) Net unrealized appreciation on investments and foreign exchange transactions, if any .......... 479,553 5,839,725 18,185,064 1,860,170 ----------- ------------ ------------ ------------ Net assets ..................................... $47,525,629 $76,629,759 $428,692,142 $104,618,203 =========== =========== ============ ============ INSTITUTIONAL CLASS Net assets ....................................... $42,421,526 $74,802,036 $ 47,419,213 $ 54,795,120 ----------- ------------ ------------ ------------ Shares outstanding ............................... 3,517,547 6,640,354 2,735,753 3,563,608 ----------- ------------ ------------ ------------ Net asset value, offering and redemption price per share ................................ $12.06 $11.26 $17.33 $15.38 =========== =========== ============ ============ INVESTOR CLASS Net assets ....................................... $ 5,104,103 $ 1,827,723 $381,272,929 $ 49,823,083 ----------- ------------ ------------ ------------ Shares outstanding ............................... 416,006 163,722 22,119,383 3,243,485 ----------- ------------ ------------ ------------ Net asset value, offering and redemption price per share ................................ $12.27 $11.16 $17.24 $15.36 =========== =========== ============ ============
The accompanying notes are an integral part of the financial statements. 22 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II EQUITY FUND ---------- ---------- ------------- ----------- INVESTMENT INCOME Dividends ........................................ $ 348,463 $ 424,195 $ 975,292 $ 155,223 Interest ......................................... 18,077 23,401 249,655 340,503 ---------- --------- --------- --------- 366,540 447,596 1,224,947 495,726 ---------- --------- --------- --------- EXPENSES Advisory fees .................................... 166,987 364,997 1,945,043 589,438 Administration fees .............................. 39,110 58,484 197,067 45,907 Administrative Services fees ..................... 31,358 67,363 119,019 33,765 Transfer Agent fees and expenses ................. 37,711 39,267 94,702 41,338 Custodian fees and expenses ...................... 11,509 13,242 44,065 35,301 Printing ......................................... 5,344 9,207 45,150 4,246 Federal and State Registration fees .............. 8,422 8,660 9,334 8,060 Audit and Legal fees ............................. 10,843 32,037 30,514 4,394 Distribution fees ................................ 5,033 1,891 348,591 20,583 Directors ........................................ 1,653 3,171 7,968 1,291 Insurance ........................................ 511 1,432 1,314 106 Dividend expense ................................. -- -- -- 154,755 Other ............................................ 771 1,234 1,625 797 ---------- --------- --------- --------- Total expenses before waivers and reimbursements ............................... 319,252 600,985 2,844,392 939,981 Less: waivers and reimbursements ............... (92,005) (142,994) (107,087) (110,769) ---------- --------- --------- --------- Net expenses after waivers and reimbursements ............................... 227,247 457,991 2,737,305 829,212 ---------- --------- --------- --------- Net investment income/(loss) ..................... 139,293 (10,395) (1,512,358) (333,486) ---------- --------- --------- --------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized gain/(loss) from: Investments .................................... 1,313,692 (1,891,364) (5,220,335) 427,122 Net change in unrealized appreciation/ (depreciation) on: Investments .................................... (571,297) 4,912,036 9,519,163 (1,134,722) ---------- --------- --------- --------- Net realized and unrealized gain/(loss) from investments ............................... 742,395 3,020,672 4,298,828 (707,600) ---------- --------- --------- --------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS .................................. $ 881,688 $ 3,010,277 $ 2,786,470 $(1,041,086) ========== =========== =========== ===========
The accompanying notes are an integral part of the financial statements. 23 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, 2002 AUGUST 31, 2001 FEBRUARY 28, 2002 AUGUST 31, 2001 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE IN NET ASSETS FROM OPERATIONS Net investment income/(loss) .................. $ 139,293 $ 397,894 $ (10,395) $ 415,078 Net realized gain/(loss) from: Investments ................................. 1,313,692 5,828,189 (1,891,364) 16,599,655 Foreign currency related transactions ....... -- -- -- -- Net change in unrealized appreciation/ (depreciation) on Investments ............... (571,297) (2,098,522) 4,912,036 (6,124,017) ----------- ----------- ------------ ------------ Net increase in net assets resulting from operations ............................. 881,688 4,127,561 3,010,277 10,890,716 ----------- ----------- ------------ ------------ LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares .... (361,284) (409,805) (411,500) (799,688) Net investment income Investor shares ......... (36,647) (20,229) (3,588) (5,908) Net realized capital gains Institutional shares (4,895,102) (1,216,633) (12,409,583) -- Net realized capital gains Investor shares .... (568,772) (68,541) (233,825) -- ----------- ----------- ------------ ------------ Total dividends and distributions to shareholders ................................ (5,861,805) (1,715,208) (13,058,496) (805,596) ----------- ----------- ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 8,391,432 390,822 (31,714,232) (46,318,592) ----------- ----------- ------------ ------------ Total increase/(decrease) in net assets ....... 3,411,315 2,803,175 (41,762,451) (36,233,472) ----------- ----------- ------------ ------------ NET ASSETS Beginning of period ........................... 44,114,314 41,311,139 118,392,210 154,625,682 ----------- ----------- ------------ ------------ End of period ................................. $47,525,629 $44,114,314 $ 76,629,759 $118,392,210 =========== =========== ============ ============
The accompanying notes are an integral part of the financial statements. 24 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
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, 2002 AUGUST 31, 2001 FEBRUARY 28, 2002 AUGUST 31, 2001 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE IN NET ASSETS FROM OPERATIONS Net investment income/(loss) .................. $ (1,512,358) $ (253,124) $ (333,486) $ 58,432 Net realized gain/(loss) from: Investments ................................. (5,220,335) 4,612,635 427,122 (692,560) Foreign currency related transactions ....... -- -- -- (144) Net change in unrealized appreciation/ (depreciation) on Investments ............... 9,519,163 8,397,602 (1,134,722) 2,812,708 ------------ ------------ ------------ ----------- Net increase in net assets resulting from operations ............................. 2,786,470 12,757,113 (1,041,086) 2,178,436 ------------ ------------ ------------ ----------- LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares .... -- -- (42,723) (13,874) Net investment income Investor shares ......... -- -- (6,861) (3,422) Net realized capital gains Institutional shares (445,911) (99,306) (980,277) -- Net realized capital gains Investor shares .... (3,891,940) (15,590) (346,641) -- ------------ ------------ ------------ ----------- Total dividends and distributions to shareholders ................................ (4,337,851) (114,896) (1,376,502) (17,296) ------------ ------------ ------------ ----------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ........... 178,189,732 237,063,903 69,934,713 33,549,837 ------------ ------------ ------------ ----------- Total increase/(decrease) in net assets ....... 176,638,351 249,706,120 67,517,125 35,710,977 ------------ ------------ ------------ ----------- NET ASSETS Beginning of period ........................... 252,053,791 2,347,671 37,101,078 1,390,101 ------------ ------------ ------------ ----------- End of period ................................. $428,692,142 $252,053,791 $104,618,203 $37,101,078 ============ ============ ============ ===========
The accompanying notes are an integral part of the financial statements. 25 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 FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JANUARY 2, 1997* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 1997 ----------------- ------------- ------------- ------------- ------------- --------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS CLASS ----------------- ------------- ------------- ------------- ------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 13.52 $ 12.82 $ 12.24 $ 10.58 $ 12.46 $ 10.00 ------- ------- ------- ------- ------- ------- Net investment income(1)** ......... 0.04 0.12 0.14 0.05 0.12 0.05 Net realized and unrealized gain/(loss) on investments(2)** . 0.23 1.10 1.25 1.76 (1.31) 2.41 ------- ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations 0.27 1.22 1.39 1.81 (1.19) 2.46 ------- ------- ------- ------- ------- ------- Dividends to shareholders from Net investment income .............. (0.12) (0.13) (0.11) (0.04) (0.08) -- Net realized capital gains ......... (1.61) (0.39) (0.70) (0.11) (0.61) -- ------- ------- ------- ------- ------- ------- Total dividends and distributions to shareholders .................... (1.73) (0.52) (0.81) (0.15) (0.69) -- ------- ------- ------- ------- ------- ------- Net asset value, end of period ..... $ 12.06 $ 13.52 $ 12.82 $ 12.24 $ 10.58 $ 12.46 ======= ======= ======= ======= ======= ======= Total investment return(3) ......... 1.95% 9.65% 11.99% 17.12% (10.23%) 24.60% ======= ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................. $42,422 $40,368 $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% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements .......... 1.42% 1.43% 1.43% 1.30% 1.49% 2.64%(4) Ratio of net investment income to average net assets(1) ........... 0.65% 0.89% 0.92% 0.61% 0.87% 1.19%(4) Portfolio turnover rate ............ 46.98% 105.71% 120.99% 156.16% 111.68% 67.16% - -------------- * Commencement of operations. ** Calculated based on average shares method. (1) Reflects waivers and reimbursements.
26 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
LARGE CAP VALUE FUND --------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JANUARY 16, 1997* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 1997 ----------------- ----------- --------- --------- ---------- ----------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS CLASS ----------------- ---------- --------- --------- ---------- ----------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $13.73 $13.02 $12.36 $10.70 $12.45 $10.20 ------ ------ ------ ------ ------ ------ Net investment income(1)** ......... 0.02 0.09 0.10 0.15 0.06 0.02 Net realized and unrealized gain/(loss) on investments(2)** . 0.23 1.13 1.27 1.65 (1.27) 2.23 ------ ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations 0.25 1.22 1.37 1.80 (1.21) 2.25 ------ ------ ------ ------ ------ ------ Dividends to shareholders from Net investment income .............. (0.10) (0.12) (0.01) (0.03) (0.06) -- Net realized capital gains ......... (1.61) (0.39) (0.70) (0.11) (0.48) -- ------ ------ ------ ------ ------ ------ Total dividends and distributions to shareholders .................... (1.71) (0.51) (0.71) (0.14) (0.54) -- ------ ------ ------ ------ ------ ------ Net asset value, end of period ..... $12.27 $13.73 $13.02 $12.36 $10.70 $12.45 ====== ====== ====== ====== ====== ====== Total investment return(3) ......... 1.82% 9.45% 11.67% 16.86% (10.28%) 22.06% ====== ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................. $5,104 $3,746 $1,414 $1,637 $6,150 $ 683 Ratio of expenses to average net assets(1) ................... 1.23% 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% 1.53% 1.55% 1.74% 3.05%(4) Ratio of net investment income to average net assets(1) ........... 0.42% 0.67% 0.70% 0.36% 0.68% 0.91%(4) Portfolio turnover rate ............ 46.98% 105.71% 120.99% 156.16% 111.68% 67.16% (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is 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. 27 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 FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JUNE 2, 1997* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 1997 ----------------- ------------- ------------- ------------- ------------- -------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS CLASS ----------------- ------------- ------------- ------------- ------------- -------------- Net asset value, beginning of period $ 12.55 $ 11.66 $ 11.47 $ 9.48 $ 11.01 $10.00 ------- -------- -------- -------- ------- ------ Net investment income/(loss)(1)** . 0.00 0.04 0.06 0.02 0.01 0.01 Net realized and unrealized gain/(loss) on investments(2)** 0.63 0.91 0.29 1.98 (1.39) 1.00 -------- -------- -------- -------- ------- ------ Net increase/(decrease) in net assets resulting from operations 0.63 0.95 0.35 2.00 (1.38) 1.01 ------- -------- -------- -------- ------- ------ Dividends to shareholders from: Net investment income ............. (0.06) (0.06) (0.02) (0.01) (0.01) -- Net realized capital gains ........ (1.86) -- (0.14) -- (0.14) -- ------- -------- -------- -------- ------- ------ Total dividends and distributions to shareholders ................... (1.92) (0.06) (0.16) (0.01) (0.15) -- ------- -------- -------- -------- ------- ------ Net asset value, end of period .... $ 11.26 $ 12.55 $ 11.66 $ 11.47 $ 9.48 $11.01 ======= ======= ======== ======== ======= ====== Total investment return(3) ........ 5.78% 8.23% 3.21% 21.08% (12.73%) 10.10% ======= ======= ======== ======== ======= ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................ $74,802 $116,605 $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% 1.00%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ......... 1.31% 1.30% 1.24% 1.25% 1.57% 12.37%(4) Ratio of net investment income to average net assets(1) .......... (0.02%) 0.29% 0.53% 0.17% 0.13% 1.08%(4) Portfolio turnover rate ........... 50.48% 234.52% 206.65% 200.09% 167.86% 21.80% - -------------- * Commencement of operations. ** Calculated based on average shares method. (1) Reflects waivers and reimbursements.
The accompanying notes are an integral part of the financial statements. 28 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
MID CAP VALUE FUND ------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JUNE 2, 1997* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 1997 ----------------- ---------- ---------- ---------- ---------- -------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS CLASS ----------------- ---------- ---------- ---------- ---------- -------------- Net asset value, beginning of period $12.43 $11.55 $11.38 $ 9.42 $11.01 $10.00 ------ ------ ------ ------ ------ ------ Net investment income/(loss)(1)** . (0.01) 0.01 0.03 (0.01) 0.01 0.01 Net realized and unrealized gain/(loss) on investments(2)** 0.63 0.91 0.28 1.97 (1.38) 1.00 ------ ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations 0.62 0.92 0.31 1.96 (1.37) 1.01 ------ ------ ------ ------ ------ ----- Dividends to shareholders from: Net investment income ............. (0.03) (0.04) -- -- (0.01) -- Net realized capital gains ........ (1.86) -- (0.14) -- (0.21) -- ------ ------ ------ ------ ------ Total dividends and distributions to shareholders ................... (1.89) (0.04) (0.14) -- (0.22) -- ------ ------ ------ ------ ------ Net asset value, end of period .... $11.16 $12.43 $11.55 $11.38 $ 9.42 $11.01 ====== ====== ====== ====== ====== ====== Total investment return(3) ........ 5.71% 7.96% 2.90% 20.81% (12.77%) 10.10% ====== ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................ $1,828 $1,787 $1,929 $2,762 $1,828 $ 598 Ratio of expenses to average net assets(1) .................. 1.23% 1.22% 1.22% 1.25% 1.15% 1.10%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ......... 1.47% 1.40% 1.34% 1.50% 1.82% 12.62%(4) Ratio of net investment income to average net assets(1) .......... (0.25%) 0.07% 0.31% 0.01% (0.02%) 0.61%(4) Portfolio turnover rate ........... 50.48% 234.52% 206.65% 200.09% 167.86% 21.80% (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is 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) Anualized.
The accompanying notes are an integral part of the financial statements. 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. - --------------------------------------------------------------------------------
SMALL CAP VALUE FUND II --------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 ----------------- ------------- ------------- ------------- -------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS ----------------- ------------- ------------- ------------- -------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .. $ 17.17 $ 11.39 $ 8.67 $ 7.62 $10.00 ------- ------- ------ ------ ------ Net investment income/(loss)(1)** ..... (0.06) (0.05) (0.01) (0.01) (0.01) Net realized and unrealized gain/(loss) on investments(2)** ................ 0.41 6.05 2.73 1.06 (2.37) ------- ------- ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ... 0.35 6.00 2.72 1.05 (2.38) ------- ------- ------ ------ ------ Dividends to shareholders from: Net investment income ................. -- -- -- -- -- Net realized capital gains ............ (0.21) (0.29) -- -- -- ------- ------- ------ ------ ------ Total dividends and distributions to shareholders .................... (0.21) (0.29) -- -- -- ------- ------- ------ ------ ------ Redemption fees ....................... 0.02 0.07 -- -- -- ------- ------- ------ ------ ------ Net asset value, end of period ........ $ 17.33 $ 17.17 $11.39 $ 8.67 $ 7.62 ======= ======= ====== ====== ======= Total investment return(3) ............ 2.16% 54.57% 31.43% 13.78% (23.80%) ======= ======= ====== ====== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $47,419 $21,547 $1,965 $1,309 $1,120 Ratio of expenses to average net assets(1) 1.55% 1.55% 1.55% 1.55% 1.55%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ............. 1.67% 2.03% 14.23% 17.84% 17.63%(4) Ratio of net investment income to average net assets(1) ........... (0.76%) (0.32%) (0.18%) (0.17%) (0.34%)(4) Portfolio turnover rate ............... 41.94% 35.50% 161.75% 87.48% 11.97% - -------------- * Commencement of operations. ** Calculated based on average shares method. (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.
The accompanying notes are an integral part of the financial statements. 30 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
SMALL CAP VALUE FUND II -------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2002 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2001 2000 1999 1998 ----------------- ------------- ------------- ------------- -------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS ----------------- ------------- ------------- ------------- -------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .. $ 17.09 $ 11.36 $ 8.65 $ 7.63 $10.00 -------- -------- ------ ------ ------ Net investment income/(loss)(1)** ..... (0.08) (0.09) (0.03) (0.02) (0.01) Net realized and unrealized gain/(loss) on investments(2)** ................ 0.43 6.04 2.74 1.04 (2.36) -------- -------- ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ... 0.35 5.95 2.71 1.02 (2.37) -------- -------- ------ ------ ------ Dividends to shareholders from: Net investment income ................. -- -- -- -- -- Net realized capital gains ............ (0.21) (0.29) -- -- -- -------- -------- ------ ------ ------ Total dividends and distributions to shareholders .................... (0.21) (0.29) -- -- -- -------- -------- ------ ------ ------ Redemption fees ....................... 0.01 0.07 -- -- -- -------- -------- ------ ------ ------ Net asset value, end of period ........ $ 17.24 $ 17.09 $11.36 $ 8.65 $ 7.63 ======== ======== ====== ====== ====== Total investment return(3)............. 2.12% 54.27% 31.33% 13.37% (23.70%) ======== ======== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $381,273 $230,507 $ 382 $ 293 $ 129 Ratio of expenses to average net assets(1) 1.78% 1.77% 1.77% 1.80% 1.80%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ............. 1.85% 2.13% 14.33% 18.09% 18.61%(4) Ratio of net investment income to average net assets(1) ........... (1.00%) (0.54%) (0.40%) (0.42%) (0.66%)(4) Portfolio turnover rate ............... 41.94% 35.50% 161.75% 87.48% 11.97% (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. 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. - --------------------------------------------------------------------------------
LONG/SHORT EQUITY FUND ---------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2002 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 ----------------- --------------- --------------- ------------------ INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS ----------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............ $ 15.88 $ 10.57 $ 9.46 $10.00 ------- ------- ------ ------ Net investment income/(loss)(1)** ............... (0.09) 0.07 0.13 0.12 Net realized and unrealized gain/(loss) on investments(2)** ............................. 0.04 5.14 1.12 (0.66) ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations .............................. (0.05) 5.21 1.25 (0.54) ------- ------- ------ ------ Dividends to shareholders from: Net investment income ........................... (0.02) (0.13) (0.14) -- Net realized capital gains ...................... (0.50) -- -- -- ------- ------- ------ ------ Total dividends and distributions to shareholders (0.52) (0.13) (0.14) -- ------- ------- ------ ------ Redemption fee .................................. 0.07 0.23 -- -- ------- ------- ------ ------ Net asset value, end of period .................. $ 15.38 $ 15.88 $10.57 $ 9.46 ======= ======= ====== ====== Total investment return(3) ...................... 0.20% 51.85% 13.74% (5.40%) ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ....... $54,795 $25,857 $1,080 $ 941 Ratio of expenses to average net assets (including dividend expense)(1) ............. 3.09% 3.22% 3.22% 2.91%(4) Ratio of expenses to average net assets (excluding dividend expense)(1) .............. 2.50% 2.50% 2.86% 2.50%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ... 2.94% 4.25% 21.86% 26.36%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) ................. 3.53% 4.97% 22.22% 26.77% Ratio of net investment income to average net assets(1) ................................ (1.20%) 0.46% 1.12% 1.57%(4) Portfolio turnover rate ......................... 102.56% 332.25% 363.34% 218.41% - -------------- * Commencement of operations. ** Calculated based on average shares method. (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.
The accompanying notes are an integral part of the financial statements. 32 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED)
LONG/SHORT EQUITY FUND --------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2002 ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 ----------------- --------------- --------------- ------------------ INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS ----------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ............ $ 15.87 $ 10.57 $ 9.43 $10.00 ------- ------- ------ ------ Net investment income/(loss)(1)** ............... (0.11) 0.03 0.11 0.06 Net realized and unrealized gain/(loss) on investments(2)** ............................. 0.06 5.18 1.16 (0.63) ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations .............................. (0.05) 5.21 1.28 (0.57) ------- ------- ------ ------ Dividends to shareholders from: Net investment income ........................... (0.01) (0.11) (0.13) -- Net realized capital gains ...................... (0.50) -- -- -- ------- ------- ------ ------ Total dividends and distributions to shareholders (0.51) (0.11) (0.13) -- ------- ------- ------ ------ Redemption fee .................................. 0.05 0.20 -- -- ------- ------- ------ ------ Net asset value, end of period .................. $ 15.36 $ 15.87 $10.57 $ 9.43 ======= ======= ====== ====== Total investment return(3) ...................... 0.06% 51.51% 13.87% (5.70%) ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ....... $49,823 $11,244 $ 310 $ 231 Ratio of expenses to average net assets (including dividend expense)(1) ............. 3.33% 3.44% 3.44% 3.16%(4) Ratio of expenses to average net assets (excluding dividend expense)(1) .............. 2.74% 2.72% 3.08% 2.75%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ... 3.12% 4.35% 21.96% 26.61%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) ................. 3.71% 5.07% 22.32% 27.02% Ratio of net investment income to average net assets(1) ................................ (1.44%) 0.24% 0.90% 1.32%(4) Portfolio turnover rate ......................... 102.56% 332.25% 363.34% 218.41% (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. 33 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 thirteen 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") and Boston Partners Long/Short Equity Fund ("Long/Short Equity Fund") (each a "Fund", collectively the "Funds"). The Funds each offer two classes of shares, Institutional Class and Investor Class. RBB has authorized capital of thirty billion shares of common stock of which 20.97 billion are currently classified into ninety-four classes. Each class represents an interest in one of thirteen investment portfolios of RBB. The classes have been grouped into fourteen separate "families," nine of which have begun investment operations. The Boston Partners Family of Funds includes the Large Cap Fund, which commenced investment operations on January 2, 1997, the Mid Cap Fund, which commenced operations on June 2, 1997, the Small Cap Fund II, which commenced investment operations on July 1, 1998 and the Long/Short Equity Fund, which commenced investment operations on November 17, 1998. At a Special Meeting of Shareholders held on February 25, 2002, the shareholders of the Boston Partners Bond Fund (the "Bond Fund"), a series of RBB, approved the liquidation and termination of the Bond Fund pursuant to a Plan of Liquidation and Termination. As a result, the Bond Fund was liquidated and its assets distributed to shareholders on February 25, 2002. 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. In determining the approximate market value of portfolio investments, the Funds may employ outside organizations, which may use a matrix or formula method that takes into consideration market indices, matrices, yield curves and other specific adjustments. Securities for which market quotations are not readily available are valued at fair market value as determined in good faith by or under the direction of RBB's Board of Directors. With the approval of RBB's Board of Directors, each Fund may use a pricing service, bank or broker-dealer experienced in such matters to value its securities. Short-term obligations with maturities of 60 days or less are valued at amortized cost which approximates market value. Expenses and fees, including investment advisory and administration fees are accrued daily and taken into account for the purpose of determining the net asset value of the Funds. USE OF ESTIMATES -- The preparation of financial statements in conformity with 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. 34 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) REPURCHASE AGREEMENTS -- The Funds have agreed to purchase securities from financial institutions subject to the seller's agreement to repurchase them at an agreed-upon time and price ("repurchase agreements"). The financial institutions with whom the Funds enter into repurchase agreements are banks and broker/dealers that Boston Partners Asset Management, L.P. (the Funds' investment adviser or "Boston Partners") considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral, subject to the agreement at not less than the repurchase price plus accrued interest. Boston Partners marks to market daily the value of the collateral, and, if necessary, requires the seller to maintain additional securities, to ensure that the value is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose the Funds to possible loss because of adverse market action or delays in connection with the disposition of the underlying securities. INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- Transactions are accounted for on the trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes in determining realized gains and losses on investments. Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date. The Funds' investment income, expenses (other than class specific distribution fees) and unrealized and realized gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day (after adjusting for current capital share activity of the respective classes). Expenses incurred on behalf of a specific class, fund or fund family are charged directly to the class, fund or fund family (in proportion to net assets). Expenses incurred for all of the RBB families (such as director or professional fees) are charged to all funds in proportion to their net assets of the RBB Funds. DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income, if any, are declared and paid at least annually to shareholders. 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. For U.S. federal income tax purposes, realized capital losses incurred after October 31, 2000, within the fiscal year ("post-October losses"), are deemed to arise on the first day of the following fiscal year (September 1, 2001). SHORT SALES -- When the Adviser anticipates that a security is overvalued, it may sell the security short by borrowing the same security from a broker or other institution and selling the security. A Fund will incur a loss as a result of a short sale if the price of the borrowed security increases between the date of the short sale and the date on which the Fund 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 bor- 35 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) rowed 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 aretranslated 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. 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 and 2.25% of the Long/Short Equity Fund's average daily net assets, each accrued daily and payable monthly. The adviser has agreed to limit the Large Cap Fund and the Mid Cap Fund's total operating expenses to the extent that such expenses exceeded 1.00% and 1.25% of the Large Cap Fund and the Mid Cap Funds' average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 1.22%. The adviser has agreed to limit the Small Cap Fund II's total operating expenses to the extent that such expenses exceed 1.55% and 1.80% of the Small Cap Fund II's average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 1.77%. The adviser has agreed to limit the Long/Short Equity Fund's total operating expenses to the extent that such expenses exceed 2.50% and 2.75%, excluding short sale dividend expense of the Long/Short Equity Fund's average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 2.72%. This limitation is effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee as necessary. For the year ended August 31, 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 $ 166,987 $(66,945) $100,042 $-- Mid Cap Fund 364,997 (89,175) 275,822 -- Small Cap Fund II 1,945,043 (11,887) 1,933,156 -- Long/Short Equity Fund 589,438 (83,777) 505,661 --
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. 36 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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 with a minimum of $75,000 annually. In addition, PFPC serves as the Funds' transfer and dividend disbursing agent. 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. Since January 1, 2002, PFPC Distributors, Inc., provides certain administrative services to the Investor 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 Investor Class Shares. PFPC Distributors, Inc. is currently waiving fees in excess of 0.03% of the average daily net assets of each Fund's Investor 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 $ 31,358 $(25,060) $ 6,298 Mid Cap Fund 67,363 (53,819) 13,544 Small Cap Fund II 119,019 (95,200) 23,819 Long/Short Equity Fund 33,765 (26,992) 6,773
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 held, both long and/or short, at February 28, 2002, were $47,313,815, $68,838,992, $416,464,020 and $14,448,017, respectively, for the Large Cap Fund, the Mid Cap Fund, the Small Cap Fund II and the Long/Short Equity Fund. Accordingly, the net unrealized appreciation/(depreciation) of investments are as follows:
NET APPRECIATION/ FUND APPRECIATION DEPRECIATION (DEPRECIATION) - ---- ------------ ------------ ----------------- Large Cap Fund $ 3,679,060 $ (3,813,718) $ (134,658) Mid Cap Fund 7,803,099 (2,830,784) 4,972,315 Small Cap Fund II 41,564,353 (27,199,562) 14,364,791 Long/Short Equity Fund 10,478,912 (9,300,136) 1,178,776
37 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) For the six months ended February 28, 2002, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: INVESTMENT SECURITIES ------------------------------- FUND PURCHASES SALES - ---- ------------ ------------ Large Cap Fund $ 23,880,213 $ 20,542,272 Mid Cap Fund 45,012,117 89,619,487 Small Cap Fund II 302,827,974 123,778,230 Long/Short Equity Fund* 112,524,506 49,029,374 - -------------- * The Long/Short Equity Fund does not include purchases of $137,652,643 to cover short sales and received proceeds of $83,360,791 from sales of short securities. 4. CAPITAL SHARE TRANSACTIONS As of February 28, 2002, 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, 2002 YEAR ENDED FEBRUARY 28, 2002 YEAR ENDED (UNAUDITED) AUGUST 31, 2001 (UNAUDITED) AUGUST 31, 2001 ------------------------ ------------------------ ------------------------ ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------ ------------------------ ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ----------- -------- ----------- -------- ----------- Sales ............ 316,934 $ 3,935,467 190,878 $ 2,585,670 542,048 $ 7,209,662 312,891 $ 4,282,818 Repurchases ...... (218,065) (2,664,262) (441,950) (6,104,319) (448,097) (5,939,693) (155,263) (2,085,842) Reinvestments .... 433,492 5,245,258 124,328 1,623,726 49,147 605,000 6,690 88,769 -------- ----------- -------- ----------- -------- ----------- -------- ----------- Net Increase / (Decrease) .. 532,361 $ 6,516,463 (126,744) $(1,894,923) 143,098 $ 1,874,969 164,318 $ 2,285,745 ======== =========== ======== =========== ======== =========== ======== =========== MID CAP VALUE FUND --------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2002 YEAR ENDED FEBRUARY 28, 2002 YEAR ENDED (UNAUDITED) AUGUST 31, 2001 (UNAUDITED) AUGUST 31, 2001 ------------------------ ------------------------ ------------------------ ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------ ------------------------ ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ------------ ---------- ------------ -------- --------- -------- --------- Sales ............ 405,034 $ 4,972,940 1,222,056 $ 14,291,790 48,818 $ 562,508 56,432 $ 700,197 Repurchases ...... (4,213,400) (49,342,857) (5,084,310) (60,950,610) (50,136) (583,059) (80,261) (986,871) Reinvestments .... 1,156,939 12,448,662 54,922 621,164 21,328 227,574 512 5,738 ---------- ------------ ---------- ------------ ------- --------- -------- --------- Net Increase / (Decrease) .. (2,651,427) $(31,921,255) (3,807,332) $(46,037,656) 20,010 $ 207,023 (23,317) $(280,936) ========== ============ ========== ============ ======= ========= ======== =========
38 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
SMALL CAP VALUE FUND II ----------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2002 YEAR ENDED FEBRUARY 28, 2002 YEAR ENDED (UNAUDITED) AUGUST 31, 2001 (UNAUDITED) AUGUST 31, 2001 ------------------------ ------------------------ ------------------------ ------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------ ------------------------ ------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ----------- ---------- ------------ ---------- ------------ Sales ............ 1,807,849 $30,651,683 1,320,141 $20,704,925 16,457,464 $275,384,101 14,835,063 $242,115,972 Repurchases ...... (352,243) (5,536,003) (246,348) (3,836,473) (8,045,388) (126,516,012) (1,381,975) (22,035,417) Reinvestments .... 25,072 433,751 8,673 99,306 219,187 3,772,212 1,365 15,590 ---------- ----------- ---------- ----------- ---------- ------------ ---------- ------------ Net Increase ..... 1,480,678 $25,549,431 1,082,466 $16,967,758 8,631,263 $152,640,301 13,454,453 $220,096,145 ========= =========== ========= =========== ========= ============ ========== ============ LONG/SHORT EQUITY FUND ----------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2002 YEAR ENDED FEBRUARY 28, 2002 YEAR ENDED (UNAUDITED) AUGUST 31, 2001 (UNAUDITED) AUGUST 31, 2001 ------------------------ ------------------------ ------------------------ ------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------ ------------------------ ------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ------------ ---------- ------------ ---------- ------------ Sales ............ 2,429,766 $38,015,244 2,759,006 $ 40,812,603 2,881,087 $44,871,907 1,091,725 $16,103,937 Repurchases ...... (562,149) (8,616,906) (1,233,732) (17,535,722) (367,779) (5,680,663) (412,662) (5,847,691) Reinvestments .... 67,469 1,019,462 1,097 13,874 21,567 325,669 224 2,836 --------- ----------- ---------- ------------ --------- ----------- --------- ------------ Net Increase ..... 1,935,086 $30,417,800 1,526,371 $ 23,290,755 2,534,875 $39,516,913 679,287 $10,259,082 ========= =========== ========= ============ ========= =========== ========= ===========
There is a 1.00% redemption fee on shares redeemed which have been held 365 days or less on the Small Cap Fund II. For the period September 1, 2001 through February 28, 2002 these fees amounted to $124,905 in the Institutional class and $1,043,829 in the Investor class. There is a 2.00% redemption fee on shares redeemed which have been held 365 days or less on the Long/Short Equity Fund. For the period September 1, 2001 through February 28, 2002 these fees amounted to $133,722 in the Institutional class and $56,432 in the Investor class. 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, 2002 one shareholder held approximately 18% of the outstanding shares of the Large Cap Value Fund Institutional Class, and one shareholder held approximately 7% of the outstanding shares of the Mid Cap Value Fund Institutional Class. 39 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 5. 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, 2002, the Fund recorded the following reclassifications to increase (decrease) the accounts listed below:
ACCUMULATED UNDISTRIBUTED NET REALIZED ADDITIONAL NET INVESTMENT GAIN/(LOSS) PAID-IN INCOME (LOSS) ON INVESTMENTS CAPITAL -------------- -------------- --------- Mid Cap Value Fund ................ $ 54,065 -- $(54,065) Small Cap Value Fund II ........... 1,512,358 $(1,512,358) -- Long/Short Equity Fund ............ 333,486 (333,486) --
40 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. UNION BUG HERE -----END PRIVACY-ENHANCED MESSAGE-----