N-30D 1 g6635bp_family.txt BOSTON PARTNERS FAMILY OF FUNDS SAR 02-28-03 [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 ALL-CAP VALUE FUND LONG/SHORT EQUITY FUND Semi-Annual Report February 28, 2003 [LOGO OMITTED] BP BOSTON PARTNERS ASSET MANAGEMENT, L.P. -------------------------------------------------- ONE PHILOSOPHY o ONE CULTURE o ONE FOCUS BOSTON PARTNERS FAMILY OF FUNDS PORTFOLIO MANAGER'S LETTER March 15, 2003 Dear Shareholder, As the equity market continues to produce negative returns, we thought it appropriate to reflect on recent market cycles. While the capital markets have indeed been unstable and investors are concerned about what the future holds, it is important to note that in our view the longer-term benchmark averages are in line with historical norms. This might seem surprising given the recent market turbulence, but although the volatility has been immense, we believe money can be made from here not by looking back and wringing our hands in worry, but by focusing on the opportunities that have been created. Had we told our clients at the inception of the firm in 1995 that the S&P 500 would return 10% on an annualized basis by the end of 2002, we believe the majority would have been pleased with that outcome. What no one could have predicted is the highly volatile manner that would lead to the 10% figure. As an example, the three-year return of the S&P 500 at the end of 1999 was 27.5%; clearly an excessive figure, yet many expected this trend to continue into perpetuity. The three-year return of the S&P at the end of 2002 is now NEGATIVE 14.5%, unsightly but not surprising in light of the prior three years. Combining the two periods gives us a six-year return of 4.4%, not necessarily a figure to get excited about but hardly a reason to call for the end of the modern economy. Taking the longer-term perspective, as smart investors do, the eight-year return of the S&P is now 10.3%, precisely in line with the longer-term historical norms. In the end, we believe the intra-cycle volatility tends to dissipate and the moral remains the same: Investing is a long-term process. Looking ahead, we see many reasons to be optimistic. One reason for optimism is the belief that the current low level of interest rates combined with aggressive balance sheet restructurings will begin to take hold. The result should support a return in the upward trajectory of corporate profits and eventually corporate earnings. While lower interest expense and continued cost cutting initiatives will aid profits, we remain skeptical of the many forecasts calling for sharp revenue growth. We see few industries with any level of pricing power, and even fewer where there is a strong case to be made that a high level of pent-up demand exists. We believe the return to profitability will occur, but we must be patient. We must adhere to the notion that investing is a long-term process. We have used the markets' correction in 2002 to identify new holdings for our various equity strategies. A common theme across all products, regardless of capitalization focus, has been the attention to profitability characteristics. With the compression in valuations over the past 18 months, many stocks that have been outside of our valuation parameters are now viable candidates for inclusion in a value portfolio. For example, we are now able to identify a number of highly profitable companies trading at a price-to-earnings ratio well below their historical averages as well as the broad market. Opportunities of this nature are available and we are excited at what the future holds for the disciplined investor. At the organizational level, we are pleased to report to our clients that late in 2002 we welcomed 11 new partners to the organization. These new partners represent a diverse group of professionals from different areas of the organization including investments, operations, client service and sales. As with all the partners, these new individuals have put their own money at risk and their commitment will help to continue the success of Boston Partners. Our association with Robeco Asset Management has been working very well and we are in the early stages of structuring the global value product that we discussed with you last year. We will keep all of our clients informed of the ongoing relationship with our new partner. As we enter 2003 we continue to pay close attention to the resources dedicated to all aspects of our clients' portfolios. Whether it is in investments, client service, operations or administration, we will add resources as we strive to meet our clients' long-term investment goals. As always, we appreciate your continued support. BOSTON PARTNERS LARGE CAP VALUE FUND The Boston Partners Large Cap Value Fund posted disappointing returns over the six-month period ending February 28, 2003. SIX MONTHS ENDED FEBRUARY 28, 2003 ----------------- Boston Partners Large Cap Value Fund --Institutional Shares (8.99)% --Investor Shares (9.22)% Russell 1000 Value (7.80)% S&P 500 (7.29)% Although the Boston Partners Large Cap Value Fund posted negative returns for this period, several sectors had positive returns, including Energy and Communications holdings. Strong stock selection in the Healthcare, Transportation, and Basics sectors added to performance over the period. Our Technology and Finance holdings detracted from performance. Looking forward, we believe two sectors will do particularly well in the coming months. One is Healthcare, which has historically been a safe place to be when economic conditions are uncertain. We have a significant overweight in this sector and have already reaped some rewards both from the weighting and from strong stock selection. Another sector that we are favorable towards is the Energy sector. As mentioned previously, investors are expecting that oil prices will plummet at the conclusion of the conflict in Iraq, and energy stocks are trading at levels that have already priced in declines in oil prices to levels we believe are too low. We believe that there is some upside to the sector as a whole as a result of this assumption. We believe that the larger cap segment of the market as a whole is fairly valued. With the S&P 500's earnings power at an estimated $51, the market is currently trading at 17x earnings, which is on the higher end of average for the index. Despite the aggregate large cap market being fairly valued, we are finding more investment opportunities than we did three years ago. Over the course of the down market, we have selectively been adding high quality companies at compelling prices to the portfolios. This has given us the opportunity to upgrade the quality of the portfolio. The valuation characteristics as measured by Price-to-Earnings and Price-to-Book have gone down, and the profitability characteristics as measured by Operating Return on Assets (OROA) and Return on Equity (ROE) have gone up. In addition, both our valuation and profitability characteristics are better than the benchmark's, as such we believe the long-term prospects for our Large Cap Value Fund look quite favorable. MID CAP VALUE EQUITY FUND The Boston Partners Mid Cap Value Fund posted strong relative returns over the past six months ending February 28, 2003. SIX MONTHS ENDED FEBRUARY 28, 2003 ----------------- Boston Partners Mid Cap Value Fund --Institutional Shares (6.19)% --Investor Shares (6.16)% Russell 2500 Value (8.42)% 2 Strong stock selection in the Consumer Non-Durable, Consumer Services, Technology, and Basics sectors added to performance during the six month period. Our Finance, Healthcare and Basics holdings detracted from performance for the period. Paramount to our success over the near and long term, has been (and will be) our continued focus on each company's financial health. In the past, we have discussed with our clients our focus on increasing the portfolio's profitability characteristics. As of February 28th, the Operating Return on Operating Assets (OROA) of the Mid Cap Value Fund exhibited a 31% premium versus the benchmark. The Return on Equity (ROE) metric exhibited a substantial premium at 46%. What has allowed us to create such a portfolio? It has been due to the demise of many quality, but richly valued, companies. Investments that would have been a stretch for a value manager 18 months ago, are now investments soundly within of our universe. We will continue to try to take advantage of the markets' downside volatility with the goal of creating a portfolio for the long term. BOSTON PARTNERS SMALL CAP VALUE FUND II The Boston Partners Small Cap Value Fund II posted negative returns and lagged the Russell 2000 Value for the period. The returns were as follows. SIX MONTHS ENDED FEBRUARY 28, 2003 ----------------- Boston Partners Small Cap Value Fund II --Institutional Shares (11.50)% --Investor Shares (11.63)% Russell 2000 Value (8.50)% During the six month period ending February 28, 2003, the Boston Partners Small Cap Value Fund II lagged the benchmark in the Finance, Technology, and Utilities sectors. Areas of strength for the portfolio this period included stock selection in Consumer Services and Consumer Non-Durable sectors, as well as a diverse collection of real estate investment trust holdings. The Small Cap Value Fund II continues to have better valuation and profitability characteristics than the broad market and the value benchmark. The composites' valuation and profitability characteristics at the end of February 2003 are at their most attractive levels in years. As of February 28th, the Operating Return on Operating Assets (OROA) of the Small Cap Value Fund II exhibited a 44% premium versus the benchmark. The Return on Equity (ROE) of the portfolio exhibited a substantial premium at 41%. Coupled with stock-specific catalysts, we believe the portfolio is well positioned to realize their return potential over a reasonable amount of time. BOSTON PARTNERS ALL-CAP VALUE FUND The Boston Partners All-Cap Value Fund posted negative returns and lagged the Russell 3000 Value for the period. The returns were as follows. SIX MONTHS ENDED FEBRUARY 28, 2003 ----------------- Boston Partners All-Cap Value Fund --Institutional Shares (8.30)% --Investor Shares (8.51)% Russell 3000 Value (7.85)% 3 During the six-month period ending February 28, 2003, areas of strength for the portfolio included stock selection in Finance and Capital Goods. Areas of disappointment included the Consumer Services and Utilities sectors. During the period ending February 28, 2003, as stock prices fell across the capitalization spectrum and 162 industries experienced negative returns, quality companies declined along with mediocre ones. In this environment, we selectively invested in companies, such as quality pharmaceutical businesses, with sound profitability characteristics that fell to the lower end of their valuation histories. We continued to enrich the portfolio's profitability characteristics while keeping its valuation levels intact. We believe that the portfolio is well positioned to realize its upside potential. BOSTON PARTNERS LONG/SHORT EQUITY FUND The Boston Partners' Long/Short Equity Fund performance was essentially flat for the six-month period ending February 2003. That said, the portfolio's returns for the period, were notably better than most equity benchmarks, value and growth alike, and the portfolio helped protect capital relatively well. SIX MONTHS ENDED FEBRUARY 28, 2003 ----------------- Boston Partners Long/Short Equity --Institutional Shares (0.23)% --Investor Shares (0.42)% Market rallies have also created a number of attractive opportunities for short positions in the Boston Partners Long/Short Equity Fund, especially in the Technology sector. At the end of February 2003, the portfolio carried a net short position in a number of technology holdings based on a shaky earnings outlook, negative business fundamentals, and valuations that we believe far exceed the underlying general business health. The "boom, bust" market cycle of the past four years has created opportunities for many long positions as well. A specific area of focus has been identifying companies that possess the proper criteria that make them prime candidates for a leveraged or management buyout. These companies are characterized by attractive valuations, positive free cash flow, profitability that is depressed relative to the company's history, and a valuable franchise. The thought process is that if the public market does accurately reflect the business opportunity than a strategic or financial buyer will by taking the company private. This work is bolstered by the catalyst of significant capital ready to be deployed by buyout funds that are flush with capital. The initial work has lead to specific investments in the Restaurant, Food, and Retail sectors. Warmest regards for a successful 2003, Boston Partners Asset Management, LP 4 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--98.9% AEROSPACE/DEFENSE--0.9% Lockheed Martin Corp. ......................... 9,000 $ 411,480 ----------- AUTOMOTIVE--1.4% Ford Motor Co. ................................ 47,300 393,536 Lear Corp.* ................................... 6,100 231,678 ----------- 625,214 ----------- BANKS & SAVINGS & LOANS--7.6% Banco Bilbao Vizcaya Argentaria, S.A. - ADR ... 27,300 230,139 Bank of New York Co., Inc., (The) ............. 19,600 446,488 Comerica, Inc. ................................ 11,000 450,780 FleetBoston Financial Corp. ................... 43,900 1,078,184 National City Corp. ........................... 9,000 248,580 Toronto-Dominion Bank, (The) .................. 12,700 286,385 Wachovia Corp. ................................ 19,600 695,408 ----------- 3,435,964 ----------- BROADCASTING & PUBLISHING--1.8% Liberty Media Corp., Class A* ................. 88,332 811,771 ----------- COMPUTERS, SOFTWARE & SERVICES--3.0% Computer Sciences Corp.* ...................... 14,300 447,018 Microsoft Corp. ............................... 38,200 905,340 ----------- 1,352,358 ----------- CONSUMER PRODUCTS & SERVICES--3.1% Avon Products, Inc. ........................... 8,600 447,200 Kimberly-Clark Corp. .......................... 7,900 362,057 Procter & Gamble Co., (The) ................... 7,200 589,392 ----------- 1,398,649 ----------- CONTAINERS--0.5% Smurfit-Stone Container Corp.* ................ 16,600 219,784 ----------- DISTRIBUTION--0.5% W.W. Grainger, Inc. ........................... 4,900 225,547 ----------- NUMBER OF SHARES VALUE --------- ----------- ELECTRIC UTILITIES--2.8% FirstEnergy Corp. ............................. 23,900 $ 705,050 Pinnacle West Capital Corp. ................... 18,500 564,990 ----------- 1,270,040 ----------- FINANCIAL SERVICES--13.0% Citigroup, Inc. ............................. 37,499 1,250,217 Countrywide Financial Corp. ................. 27,600 1,473,564 Fannie Mae .................................. 11,200 717,920 Freddie Mac ................................. 25,200 1,377,180 MBIA, Inc. .................................. 27,850 1,061,920 ----------- 5,880,801 ----------- FOOD & BEVERAGE--2.6% Archer-Daniels-Midland Co. .................. 25,800 281,220 Kraft Foods, Inc., Class A .................. 10,900 322,749 PepsiCo, Inc. ............................... 15,100 578,632 ----------- 1,182,601 ----------- HEALTHCARE--1.1% Tenet Healthcare Corp.* ....................... 27,000 490,590 ----------- INSURANCE--8.2% ACE Ltd. ...................................... 20,700 573,597 Allmerica Financial Corp.* .................... 6,380 90,277 American International Group, Inc. ............ 22,295 1,098,920 Berkshire Hathaway, Inc.* ..................... 485 1,001,525 Radian Group, Inc. ............................ 17,000 592,790 Travelers Property Casualty Corp., Class A .... 23,549 368,542 ----------- 3,725,651 ----------- LEISURE & ENTERTAINMENT--2.2% International Game Technology* ................ 6,700 526,486 Mandalay Resort Group* ........................ 17,900 451,796 ----------- 978,282 ----------- 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- MANUFACTURING--3.1% Illinois Tool Works, Inc. ................... 8,000 $ 476,560 Tyco International Ltd. ..................... 62,400 923,520 ----------- 1,400,080 ----------- MANUFACTURING - APPAREL--1.1% Liz Claiborne, Inc. ......................... 17,600 496,320 ----------- MEDICAL EQUIPMENT AND SUPPLIES--3.1% Alcon, Inc.* ................................ 10,900 426,735 Beckman Coulter, Inc. ....................... 5,800 191,980 C.R. Bard, Inc. ............................. 8,500 502,350 Smith & Nephew PLC - ADR .................... 5,200 300,300 ----------- 1,421,365 ----------- OIL & GAS EXPLORATION--14.4% Burlington Resources, Inc. .................. 21,400 991,890 Canadian Natural Resources Ltd. ............. 19,800 682,110 ChevronTexaco Corp. ......................... 19,000 1,219,230 Exxon Mobil Corp. ........................... 23,600 802,872 Kerr-McGee Corp. ............................ 22,000 907,280 Marathon Oil Corp. .......................... 37,300 861,257 Petroleo Brasileiro S.A. - ADR .............. 19,600 262,052 Transocean, Inc.* ........................... 35,200 799,040 ----------- 6,525,731 ----------- PAPER & FORESTRY PRODUCTS--1.6% Abitibi-Consolidated, Inc. .................. 67,900 505,855 International Paper Co. ..................... 6,800 238,204 ----------- 744,059 ----------- PHARMACEUTICALS--9.2% AmerisourceBergen Corp. ..................... 4,500 247,500 King Pharmaceuticals, Inc.* ................. 15,900 266,325 Merck & Co., Inc. ........................... 20,300 1,070,825 Pharmacia Corp. ............................. 28,000 1,156,960 Shire Pharmaceuticals Group PLC - ADR* ...... 17,600 276,866 Wyeth ....................................... 32,500 1,145,625 ----------- 4,164,101 ----------- NUMBER OF SHARES VALUE --------- ----------- PUBLISHING & INFORMATION SERVICES--3.6% Gannett Co., Inc. ........................... 9,000 $ 649,530 Knight-Ridder, Inc. ......................... 10,900 695,529 Reader's Digest Association, Inc., (The) .... 25,900 279,979 ----------- 1,625,038 ----------- RESTAURANTS--0.8% McDonald's Corp. ............................ 27,100 368,831 ----------- RETAIL--1.6% Abercrombie & Fitch Co., Class A* ........... 5,700 156,750 Federated Department Stores, Inc.* .......... 22,300 568,650 ----------- 725,400 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--0.4% Advanced Mirco Devices, Inc.* ................. 36,700 201,483 ----------- STEEL--0.2% United States Steel Corp. ..................... 7,400 85,988 ----------- TELECOMMUNICATIONS & EQUIPMENT--5.4% 3Com Corp.* ................................. 139,900 586,181 ALLTEL Corp. ................................ 11,800 512,356 AT&T Corp. .................................. 10,935 202,735 CenturyTel, Inc. ............................ 8,400 230,160 Nokia Corp. - ADR ........................... 28,400 375,732 Sprint Corp. ................................ 42,100 534,670 ----------- 2,441,834 ----------- TOBACCO--3.1% Altria Group, Inc. ............................ 12,600 486,990 UST, Inc. ..................................... 31,300 902,379 ----------- 1,389,369 ----------- TRANSPORTATION--0.1% CP Ships Ltd. ................................. 5,525 69,063 ----------- TRAVEL SERVICES--0.9% Carnival Corp. ................................ 17,000 390,490 ----------- 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- WASTE MANAGEMENT--1.6% Republic Services, Inc.* ...................... 37,000 $ 705,590 ----------- TOTAL COMMON STOCK (Cost $50,072,599) ........................ 44,763,474 ----------- SHORT TERM INVESTMENTS--3.9% Galaxy Money Market Fund 0.890% 03/03/03 ............................. 886,919 886,919 Wilmington Prime Money Market Portfolio 0.799% 03/03/03 ............................. 886,920 886,920 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $1,773,839) ......................... 1,773,839 ----------- TOTAL INVESTMENTS--102.8% (Cost $51,846,438) ............................ 46,537,313 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(2.8)% .......................... (1,272,416) NET ASSETS--100.0% ............................... $45,264,897 =========== ------------- * Non-income producing. ADR -- American Depository Receipt. 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--103.3% ADVERTISING SERVICES--1.9% Lamar Advertising Co.* ...................... 31,805 $ 997,723 ----------- AGRICULTURE--2.3% Bunge Ltd. .................................. 12,800 331,520 Delta and Pine Land Co. ..................... 46,200 912,450 ----------- 1,243,970 ----------- AUTOMOTIVE--1.2% Lear Corp.* ................................. 17,000 645,660 ----------- BANKS & SAVINGS & LOANS--1.7% Associated Banc-Corp. ....................... 17,080 590,797 GreenPoint Financial Corp. .................. 7,000 297,360 ----------- 888,157 ----------- CELLULAR/WIRELESS--1.5% United States Cellular Corp.* ............... 33,050 804,767 ----------- CHEMICALS--0.9% Ashland, Inc. ............................... 17,600 489,456 ----------- COMPUTERS, SOFTWARE & SERVICES--2.5% Activision, Inc.* ........................... 23,900 356,110 Adaptec, Inc.* .............................. 55,500 337,995 Sybase, Inc.* ............................... 45,245 664,649 ----------- 1,358,754 ----------- CONTAINERS--2.5% Pactiv Corp.* ............................... 24,300 480,168 Sealed Air Corp.* ........................... 23,000 834,210 ----------- 1,314,378 ----------- DISTRIBUTION--1.6% W.W. Grainger, Inc. ......................... 18,195 837,516 ----------- DIVERSIFIED--3.1% ITT Industries, Inc. ........................ 12,200 686,006 Viad Corp. .................................. 45,500 950,950 ----------- 1,636,956 ----------- NUMBER OF SHARES VALUE --------- ----------- ELECTRIC UTILITIES--4.8% NSTAR ....................................... 18,000 $ 727,560 Pinnacle West Capital Corp. ................. 33,500 1,023,090 PPL Corp. ................................... 16,000 562,720 Sierra Pacific Resources* ................... 85,900 256,841 ----------- 2,570,211 ----------- ELECTRONIC COMPONENTS & INSTRUMENTS--1.4% Arrow Electronics, Inc.* .................... 14,300 205,634 Avnet, Inc.* ................................ 20,200 208,060 Molex, Inc. ................................. 10,600 236,062 Molex, Inc., Class A ........................ 5,770 109,630 ----------- 759,386 ----------- ENERGY--0.8% Constellation Energy Group, Inc. ............ 17,100 448,362 ----------- FINANCIAL SERVICES--5.2% A.G. Edwards, Inc. .......................... 23,700 632,079 Affiliated Managers Group, Inc.* ............ 13,000 551,330 Countrywide Financial Corp. ................. 14,400 768,816 MBIA, Inc. .................................. 15,300 583,389 Student Loan Corp., (The) ................... 2,600 245,180 ----------- 2,780,794 ----------- FOOD & BEVERAGE--5.0% Hormel Foods Corp. .......................... 32,000 672,320 McCormick & Co., Inc. ....................... 38,600 892,818 Smithfield Foods, Inc.* ..................... 59,500 1,102,535 ----------- 2,667,673 ----------- HEALTHCARE--3.8% Apria Healthcare Group, Inc.* ............... 37,105 817,423 Health Net, Inc.* ........................... 22,900 575,019 Manor Care, Inc.* ........................... 34,900 639,717 ----------- 2,032,159 ----------- HOTELS AND MOTELS--2.4% Hilton Hotels Corp. ......................... 86,200 947,338 Starwood Hotels & Resorts Worldwide, Inc. ........................... 15,130 342,089 ----------- 1,289,427 ----------- 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- INSURANCE--13.2% Ambac Financial Group, Inc. ................. 5,800 $ 283,330 CNA Financial Corp.* ........................ 11,075 254,614 Everest Re Group Ltd. ....................... 8,200 437,880 Jefferson-Pilot Corp. ....................... 6,600 248,820 Mercury General Corp. ....................... 54,165 1,961,315 Nationwide Financial Services, Inc., Class A ............................. 29,455 715,756 PartnerRe Ltd. .............................. 10,490 522,927 Radian Group, Inc. .......................... 32,000 1,115,840 WellChoice, Inc.* ........................... 37,600 763,280 White Mountains Insurance Group Ltd. ........ 2,255 730,620 ----------- 7,034,382 ----------- INTERNET--2.8% Network Associates, Inc.* ................... 56,587 837,487 ProQuest Co.* ............................... 33,845 636,963 ----------- 1,474,450 ----------- LEISURE & ENTERTAINMENT--5.2% Harrah's Entertainment, Inc.* ............... 25,400 834,136 Regal Entertainment Group, Class A .......... 58,375 1,167,500 WMS Industries, Inc.* ....................... 64,475 774,990 ----------- 2,776,626 ----------- MACHINERY--3.6% Dover Corp. ................................. 30,800 786,016 Pall Corp. .................................. 70,400 1,136,256 ----------- 1,922,272 ----------- MANUFACTURING - APPAREL--1.6% Jones Apparel Group, Inc.* .................. 29,200 828,112 ----------- MEDIA--1.3% Gemstar-TV Guide International, Inc.* ....... 198,400 702,336 ----------- MEDICAL EQUIPMENT AND SUPPLIES--2.0% C.R. Bard, Inc. ............................. 18,300 1,081,530 ----------- NUMBER OF SHARES VALUE --------- ----------- METALS - NON-FERROUS--1.0% Phelps Dodge Corp.* ......................... 14,500 $ 521,420 ----------- OIL & GAS EXPLORATION--4.5% Diamond Offshore Drilling, Inc. ............. 37,100 814,345 Kerr-McGee Corp. ............................ 21,000 866,040 Nabors Industries Ltd.* .................... 18,000 713,700 ----------- 2,394,085 ----------- OIL SERVICES--0.6% Grant Prideco, Inc.* ........................ 24,600 298,152 ----------- PAPER & FORESTRY PRODUCTS--3.8% Abitibi-Consolidated, Inc. .................. 115,200 858,240 Boise Cascade Corp. ....................... 24,500 590,940 Temple-Inland, Inc. ......................... 14,000 586,600 ----------- 2,035,780 ----------- PHARMACEUTICALS--2.3% Express Scripts, Inc.* ...................... 14,100 729,252 Shire Pharmaceuticals Group PLC - ADR* ...... 32,200 506,538 ----------- 1,235,790 ----------- PUBLISHING & INFORMATION SERVICES--5.2% Knight-Ridder, Inc. ......................... 18,600 1,186,866 Meredith Corp. .............................. 9,500 371,640 Reader's Digest Association, Inc., (The) .... 28,600 309,166 Valassis Communications, Inc.* .............. 38,800 883,864 ----------- 2,751,536 ----------- REAL ESTATE--1.2% Ventas, Inc. (REIT) ......................... 51,200 614,400 ----------- RESTAURANTS--0.9% Wendy's International, Inc. ................. 18,000 455,940 ----------- RETAIL--2.6% BJ's Wholesale Club, Inc.* .................. 52,000 726,960 Payless ShoeSource, Inc.* ................... 14,560 678,642 ----------- 1,405,602 ----------- 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--4.9% Axcelis Technologies, Inc. * ................ 80,410 $ 486,481 GlobespanVirata, Inc.* ...................... 160,000 745,600 National Semiconductor Corp.* ............... 60,000 1,027,800 Teradyne, Inc.* ............................. 32,780 379,920 ----------- 2,639,801 ----------- STEEL--2.0% Nucor Corp. ................................. 25,900 1,077,440 ----------- TOBACCO--2.0% Loews Corp. - Carolina Group ................ 50,500 1,080,700 ----------- TOTAL COMMON STOCK (Cost $59,587,000) ...................... 55,095,703 ----------- SHORT TERM INVESTMENTS--5.5% Galaxy Money Market Fund 0.890% 03/03/03 ........................... 1,468,219 1,468,219 Wilmington Prime Money Market Portfolio 0.799% 03/03/03 ........................... 1,468,220 1,468,220 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $2,936,439) ....................... 2,936,439 ----------- TOTAL INVESTMENTS--108.8% (Cost $62,523,439) .......................... 58,032,142 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(8.8)% ........................ (4,716,461) ----------- NET ASSETS--100.0% ............................. $53,315,681 =========== ------------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--96.8% ADVERTISING--1.0% ADVO, Inc. .................................. 73,965 $ 2,315,844 ------------ AIR TRANSPORT--0.4% ExpressJet Holdings, Inc., Class A* ......... 88,700 709,600 Mesaba Holdings, Inc.* ...................... 44,100 249,165 ------------ 958,765 ------------ AUTOMOTIVE--0.6% Lithia Motors, Inc., Class A* ............... 30,100 379,260 Monaco Coach Corp.* ......................... 39,000 433,680 National R.V. Holdings, Inc.* ............... 91,400 498,130 ------------ 1,311,070 ------------ BANKS & SAVINGS & LOANS--4.2% Bay View Capital Corp. ...................... 361,600 1,992,416 Brookline Bancorp, Inc. ..................... 66,737 834,213 Fidelity Bankshares, Inc. ................... 18,739 328,307 First Community Bancorp ..................... 16,600 479,906 Franklin Bank Corp., Class A 144A ........... 119,100 1,191,000 IndyMac Bancorp, Inc.* ...................... 199,100 3,802,810 ITLA Capital Corp.* ......................... 12,900 425,700 Local Financial Corp.* ...................... 20,600 304,674 ------------ 9,359,026 ------------ BEVERAGES--0.2% Robert Mondavi Corp., (The), Class A* ....... 20,900 528,979 ------------ BROADCASTING & PUBLISHING--1.5% Alliance Atlantis Communications, Inc., Class B* 312,970 2,885,583 Liberty Corp., (The) ........................ 10,800 424,008 ------------ 3,309,591 ------------ BUSINESS & PUBLIC SERVICES--4.6% American Management Systems, Inc.* .......... 62,900 666,740 Gevity HR, Inc. ............................. 173,700 936,243 NUMBER OF SHARES VALUE --------- ----------- BUSINESS & PUBLIC SERVICES--(CONTINUED) Hall, Kinion & Associates, Inc.* ............ 82,020 $ 85,301 Kendle International, Inc.* ................. 82,900 474,188 Kforce, Inc.* ............................... 201,100 482,640 Medical Staffing Network Holdings, Inc.* ........................... 55,000 642,400 MPS Group, Inc.* ............................ 468,500 2,300,335 National Processing, Inc.* .................. 35,200 501,600 Service Corporation International* .......... 1,131,500 3,473,705 Spherion Corp.* ............................. 94,400 573,008 ------------ 10,136,160 ------------ CHEMICALS--1.4% Olin Corp. .................................. 99,200 1,636,800 Spartech Corp. .............................. 82,000 1,402,200 ------------ 3,039,000 ------------ COMPUTERS, SOFTWARE & SERVICES--4.7% Activision, Inc.* ........................... 57,500 856,750 Adaptec, Inc.* .............................. 107,100 652,239 CompuCom Systems, Inc.* ..................... 118,000 449,580 Covansys Corp.* ............................. 135,400 419,740 DataTRAK International, Inc.* ............... 235,400 230,692 Insight Enterprises, Inc.* .................. 144,500 1,101,090 Keane, Inc.* ................................ 139,100 1,114,191 Maxtor Corp.* ............................... 304,856 1,829,136 MSC.Software Corp. .......................... 58,200 531,948 PC-Tel, Inc.* ............................... 97,600 697,840 Pomeroy Computer Resources, Inc.* ........... 89,396 643,651 SPSS, Inc.* ................................. 70,700 770,630 Tier Technologies, Inc., Class B* ........... 100,300 1,063,180 ------------ 10,360,667 ------------ CONSTRUCTION & BUILDING MATERIALS--1.1% Butler Manufacturing Co. .................... 27,400 493,200 Champion Enterprises, Inc.* ................. 386,800 796,808 Granite Construction, Inc. .................. 39,700 657,829 Modtech Holdings, Inc.* ..................... 75,100 497,913 ------------ 2,445,750 ------------ 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- CONSULTING SERVICES--3.0% DiamondCluster International, Inc., Class A* 184,555 $ 372,801 First Consulting Group, Inc.* ............... 105,740 613,292 Navigant Consulting, Inc.* .................. 562,600 3,319,340 Tetra Tech, Inc.* ........................... 176,900 2,328,004 ------------ 6,633,437 ------------ CONSUMER PRODUCTS & SERVICES--1.1% Playtex Products, Inc.* ..................... 121,300 958,270 Silgan Holdings, Inc.* ...................... 71,700 1,456,944 ------------ 2,415,214 ------------ CONTAINERS--0.3% Constar International, Inc.* ................ 77,100 592,128 ------------ DATA PROCESSING & REPRODUCTION--0.3% FileNET Corp.* .............................. 56,600 710,896 ------------ DISTRIBUTION--0.4% Bell Microproducts, Inc.* ................... 10,700 64,842 Daisytek International Corp.* ............... 46,400 93,264 Owens & Minor, Inc. ......................... 42,100 686,230 ------------ 844,336 ------------ DIVERSIFIED OPERATIONS--0.3% Pittston Brink's Group ...................... 40,800 578,136 ------------ ELECTRIC UTILITIES--1.1% El Paso Electric Co.* ....................... 48,800 502,640 Green Mountain Power Corp. .................. 16,100 326,347 Sierra Pacific Resources* ................... 559,200 1,672,008 ------------ 2,500,995 ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--2.4% Avnet, Inc.* ................................ 91,900 946,570 C&D Technologies, Inc. ...................... 45,900 785,349 GrafTech International Ltd.* ................ 148,900 524,128 Integrated Electrical Services, Inc.* ....... 384,100 1,474,944 Technitrol, Inc.* ........................... 38,100 581,787 Ultratech Stepper, Inc.* .................... 91,500 1,141,920 ------------ 5,454,698 ------------ NUMBER OF SHARES VALUE --------- ----------- ENERGY--0.3% Calpine Corp.* .............................. 245,327 $ 684,462 ------------ ENVIRONMENTAL SERVICES--0.1% Exponent, Inc.* ............................. 16,450 230,300 ------------ FINANCIAL SERVICES--7.4% Accredited Home Lenders Holding Co.* ........ 198,660 1,535,642 Advanta Corp., Class B ...................... 156,800 1,238,720 American Home Mortgage Holdings, Inc. ....... 87,800 935,070 AmeriCredit Corp.* .......................... 214,570 426,994 BKF Capital Group, Inc.* .................... 24,300 404,595 Century Business Services, Inc.* ............ 442,700 1,230,706 Federal Agricultural Mortgage Corp., Class C* ........................... 114,400 2,751,320 Friedman, Billings, Ramsey Group, Inc., Class A* .................................. 127,860 1,134,118 MCG Capital Corp. ........................... 135,600 1,338,372 Oxford Financial Corp. 144A ................. 130,000 1,040,000 Saxon Capital, Inc.* ........................ 356,200 3,921,762 Van der Moolen Holding N.V. ADR ............. 32,400 432,864 ------------ 16,390,163 ------------ GAMBLING--0.7% MTR Gaming Group, Inc.* ..................... 61,700 352,307 Scientific Games Corp., Class A* ............ 248,100 1,295,082 ------------ 1,647,389 ------------ HEALTHCARE--7.5% Apria Healthcare Group, Inc.* ............... 299,300 6,593,579 Kindred Healthcare, Inc.* ................... 63,900 1,032,043 NBTY, Inc.* ................................. 216,300 3,867,444 RehabCare Group, Inc.* ...................... 181,900 3,190,526 Renal Care Group, Inc.* ..................... 62,000 1,814,740 Res-Care, Inc.* ............................. 98,500 280,725 ------------ 16,779,057 ------------ 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- INSURANCE--14.1% Allmerica Financial Corp.* .................. 126,790 $ 1,794,078 American Physicians Capital, Inc.* .......... 76,800 1,502,208 AmerUs Group Co. ............................ 17,200 451,156 Arch Capital Group Ltd.* .................... 150,700 4,710,882 Hilb, Rogal & Hamilton Co. .................. 16,900 502,437 Hub International Ltd. ...................... 231,400 3,167,866 Infinity Property & Casualty Corp.* ......... 145,600 2,336,880 Insurance Auto Auctions, Inc.* .............. 55,914 508,817 IPC Holdings Ltd. ........................... 243,900 6,890,175 Max Re Capital Ltd. ......................... 87,600 981,120 Navigators Group, Inc., (The)* .............. 37,940 967,470 Odyssey Re Holdings Corp. ................... 140,220 2,528,167 Penn-America Group, Inc. .................... 48,600 487,944 Platinum Underwriters Holdings Ltd. ......... 22,860 520,065 PMA Capital Corp., Class A .................. 44,450 437,833 RLI Corp. ................................... 31,850 825,871 Scottish Annuity & Life Holdings Ltd. ....... 164,900 2,861,015 ------------ 31,473,984 ------------ INTERNET--2.6% DoubleClick, Inc.* .......................... 464,700 2,992,668 EarthLink, Inc.* ............................ 158,300 786,751 ProQuest Co.* ............................... 102,150 1,922,463 ------------ 5,701,882 ------------ LEISURE & ENTERTAINMENT--1.0% Multimedia Games, Inc.* ..................... 35,000 640,150 Racing Champions Ertl Corp.* ................ 55,000 789,250 Topps Co., Inc., (The)* ..................... 26,700 215,469 WMS Industries, Inc.* ....................... 42,600 512,052 ------------ 2,156,921 ------------ MACHINERY--1.1% Terex Corp.* ................................ 197,700 2,388,216 ------------ NUMBER OF SHARES VALUE --------- ----------- MANUFACTURING--1.4% Actuant Corp., Class A* ..................... 21,200 $ 784,400 Quixote Corp. ............................... 96,500 1,666,555 Rayovac Corp.* .............................. 51,900 635,775 ------------ 3,086,730 ------------ MEDIA--1.2% Gemstar-TV Guide International, Inc.* ....... 734,580 2,600,413 ------------ MEDICAL EQUIPMENT AND SUPPLIES--5.9% CONMED Corp.* ............................... 80,600 1,225,120 Cooper Companies, Inc., (The) ............... 56,400 1,638,420 D & K Healthcare Resources, Inc. ............ 151,300 1,417,681 INAMED Corp.* ............................... 38,200 1,244,556 Option Care, Inc.* .......................... 495,950 3,893,207 Priority Healthcare Corp., Class B* ......... 23,430 529,987 Sola International, Inc.* ................... 252,900 3,181,482 ------------ 13,130,453 ------------ METALS & MINING--0.4% Joy Global, Inc.* ........................... 92,800 945,632 ------------ MUTUAL FUNDS--2.0% Gladstone Capital Corp. ..................... 73,600 1,145,216 iShares Russell 2000 Value Index Fund ..... 32,000 3,372,800 ------------ 4,518,016 ------------ OIL & GAS EXPLORATION--0.9% EXCO Resources, Inc.* ....................... 14,200 244,240 Parker Drilling Co.* ........................ 184,800 458,304 Swift Energy Co.* ........................... 140,900 1,311,779 ------------ 2,014,323 ------------ OIL SERVICES--2.5% Cal Dive International, Inc.* ............... 90,700 1,693,369 Grant Prideco, Inc.* ........................ 90,800 1,100,496 Trico Marine Services, Inc.* ................ 355,200 934,176 World Fuel Services Corp. ................... 88,500 1,770,000 ------------ 5,498,041 ------------ 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 (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- PACKAGING & CONTAINERS--0.6% Packaging Dynamics Corp. .................... 54,660 $ 367,862 Tupperware Corp. ............................ 73,800 920,286 ------------ 1,288,148 ------------ PRINTING SERVICES--0.7% Consolidated Graphics, Inc.* ................ 38,800 937,020 Wallace Computer Services, Inc. ............. 26,500 675,485 ------------ 1,612,505 ------------ PUBLISHING & INFORMATION SERVICES--0.6% Pulitzer, Inc. .............................. 22,600 963,664 Value Line, Inc. ............................ 6,500 301,470 ------------ 1,265,134 ------------ RAILROADS--0.7% RailAmerica, Inc.* .......................... 328,200 1,601,616 ------------ REAL ESTATE--7.5% American Financial Realty Trust 144A ...................................... 202,300 2,346,680 Brandywine Realty Trust (REIT) .............. 27,650 568,761 Corporate Office Properties Trust (REIT) .................................... 99,205 1,391,846 FBR Asset Investment Corp. (REIT) .................................... 40,600 1,302,448 Insignia Financial Group, Inc.* ............. 105,389 1,149,794 Jones Lang LaSalle, Inc.* ................... 23,400 324,090 LNR Property Corp. .......................... 57,600 1,904,256 Redwood Trust, Inc. (REIT) .................. 126,200 3,883,174 RFS Hotel Investors, Inc. (REIT) ............ 91,700 881,237 Trammell Crow Co.* .......................... 269,500 2,290,750 Ventas, Inc. (REIT) ......................... 57,700 692,400 16,735,436 RETAIL--4.6% Charming Shoppes, Inc.* ..................... 385,800 1,118,820 Coldwater Creek, Inc.* ...................... 38,550 461,829 Duane Reade, Inc.* .......................... 69,680 860,548 Finish Line, Inc., (The), Class A* .......... 128,200 1,592,244 NUMBER OF SHARES VALUE --------- ----------- RETAIL--(CONTINUED) Friedman's, Inc., Class A ................... 134,900 $ 1,307,181 Galyan's Trading Co.* ....................... 38,900 409,617 J. Jill Group, Inc.* ........................ 84,700 873,257 Men's Wearhouse, Inc., (The)* ............... 53,400 758,280 Oakley, Inc.* ............................... 45,200 361,148 Pep Boys - Manny, Moe & Jack, (The) ......... 68,700 620,361 Rite Aid Corp.* ............................. 229,800 551,520 School Specialty, Inc.* ..................... 18,400 345,736 Steven Madden Ltd.* ......................... 44,800 759,360 Vans, Inc.* ................................. 80,700 325,221 ------------ 10,345,122 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--0.3% Brooks Automation, Inc.* .................... 27,600 279,312 Helix Technology Corp. ...................... 43,200 336,960 ------------ 616,272 ------------ STEEL--0.3% Ryerson Tull, Inc. .......................... 97,300 615,909 ------------ TELECOMMUNICATIONS--1.0% Lightbridge, Inc.* .......................... 182,200 1,104,132 Somera Communications, Inc.* ................ 314,500 339,660 Tekelec* .................................... 92,900 785,934 ------------ 2,229,726 ------------ TOBACCO--2.0% DIMON, Inc. ................................. 262,100 1,604,052 Standard Commercial Corp. ................... 83,400 1,401,120 Universal Corp. ............................. 37,900 1,444,369 ------------ 4,449,541 ------------ TRANSPORTATION--0.6% CP Ships Ltd. ............................... 93,700 1,171,250 Offshore Logistics, Inc.* ................... 15,000 276,900 ------------ 1,448,150 ------------ The accompanying notes are an integral part of the financial statements. 14 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ----------- TRAVEL SERVICES--0.2% Ambassadors Group, Inc.* .................... 26,000 $ 318,500 Ambassadors International, Inc.* ............ 25,900 221,445 ------------ 539,945 ------------ TOTAL COMMON STOCK (Cost $251,909,394) ..................... 215,488,178 ------------ PREFERRED STOCKS--0.2% OIL & GAS EXPLORATION--0.2% EXCO Resources, Inc. 5.0% 05/23/03 ............................. 29,700 522,423 ------------ TOTAL PREFERRED STOCKS (Cost $598,170) ......................... 522,423 ------------ NUMBER OF SHARES VALUE --------- ----------- SHORT TERM INVESTMENTS--0.6% Galaxy Money Market Fund 0.890% 03/03/03 ........................... 661,508 $ 661,508 Wilmington Prime Money Market Portfolio 0.799% 03/03/03 ........................... 661,509 661,509 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $1,323,017) ....................... 1,323,017 ------------ TOTAL INVESTMENTS--97.6% (Cost $253,830,581) ......................... 217,333,618 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--2.4% ........................... 5,240,778 ------------ NET ASSETS--100.0% ............................. $222,574,396 ============ ------------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. 144A -- Security was purchased pursuant to Rule 144A under Securities Act of 1933 and may not be resold except to qualified institutional buyers. As of February 28, 2003, these securities amounted to 2.1% of net assets. The accompanying notes are an integral part of the financial statements. 15 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ---------- COMMON STOCK--93.7% AIR TRANSPORT--0.6% ExpressJet Holdings, Inc., Class A* ........... 1,825 $ 14,600 --------- BEVERAGES--0.3% Constellation Brands, Inc., Class A* .......... 295 7,266 --------- BROADCASTING & PUBLISHING--1.0% Liberty Media Corp., Class A* ................. 2,504 23,012 --------- COMPUTERS, SOFTWARE & SERVICES--2.9% Activision, Inc.* ............................. 1,315 19,593 Hewlett-Packard Co. ........................... 1,090 17,277 Microsoft Corp. ............................... 630 14,931 Perot Systems Corp., Class A* ................. 1,775 17,768 --------- 69,569 --------- CONSUMER PRODUCTS & SERVICES--0.5% National Presto Industries, Inc. .............. 440 12,060 --------- DATA PROCESSING & REPRODUCTION--1.3% Dun & Bradstreet Corp., (The)* ................ 505 18,129 Global Payments, Inc. ......................... 490 13,691 --------- 31,820 --------- DISTRIBUTION--0.8% W.W. Grainger, Inc. ........................... 440 20,253 --------- DIVERSIFIED OPERATIONS--1.3% Chemed Corp. .................................. 275 9,130 Pittston Brink's Group ........................ 1,490 21,113 --------- 30,243 --------- ELECTRIC UTILITIES--2.8% Korea Electric Power (KEPCO) Corp. - ADR ...... 2,435 20,089 PG&E Corp.* ................................... 2,890 36,847 Sierra Pacific Resources* ..................... 3,090 9,239 --------- 66,175 --------- ELECTRICAL EQUIPMENT--0.6% Makita Corp. - ADR ............................ 2,240 15,098 --------- NUMBER OF SHARES VALUE --------- ---------- ELECTRONIC COMPONENTS & INSTRUMENTS--0.6% Altera Corp.* ................................. 510 $ 6,390 Xilinx, Inc.* ................................. 340 7,786 --------- 14,176 --------- FINANCIAL SERVICES--11.3% AmeriCredit Corp.* ............................ 3,485 6,935 BKF Capital Group, Inc.* ...................... 415 6,910 Countrywide Financial Corp. ................... 930 49,653 Fannie Mae .................................... 670 42,947 Freddie Mac ................................... 1,140 62,301 MBIA, Inc. .................................... 1,555 59,292 MCG Capital Corp. ............................. 605 5,971 Moody's Corp. ................................. 375 16,538 Saxon Capital, Inc.* .......................... 1,840 20,258 --------- 270,805 --------- FOOD & BEVERAGE--1.8% Chiquita Brands International, Inc.* .......... 1,570 15,119 Fresh Del Monte Produce, Inc. ................. 585 10,612 Nestle SA - ADR ............................... 330 16,609 --------- 42,340 --------- HEALTHCARE--3.0% Kindred Healthcare, Inc.* ..................... 525 8,479 Lincare Holdings, Inc.* ....................... 415 12,409 Renal Care Group, Inc.* ....................... 1,255 36,734 Tenet Healthcare Corp.* ....................... 800 14,536 --------- 72,158 --------- INSURANCE--19.2% ACE Ltd. ...................................... 3,050 84,515 Alleghany Corp.* .............................. 270 44,388 Allmerica Financial Corp.* .................... 920 13,018 AmerUs Group Co. .............................. 820 21,509 Arch Capital Group Ltd.* ...................... 230 7,190 IPC Holdings Ltd. ............................. 1,070 30,227 Leucadia National Corp. ....................... 630 21,181 Loews Corp. ................................... 1,865 81,519 Merchants Group, Inc. ......................... 60 1,360 Millea Holdings, Inc. - ADR* .................. 185 6,373 PartnerRe Ltd. ................................ 235 11,715 The accompanying notes are an integral part of the financial statements. 16 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ---------- INSURANCE--(CONTINUED) Radian Group, Inc. ............................ 1,175 $ 40,972 Scottish Annuity & Life Holdings Ltd. ......... 1,360 23,596 Travelers Property Casualty Corp., Class A .... 370 5,790 White Mountains Insurance Group Ltd. .......... 205 66,420 --------- 459,773 --------- MANUFACTURING--2.8% Lancaster Colony Corp.* ....................... 690 26,206 Tyco International Ltd. ....................... 2,760 40,848 --------- 67,054 --------- MANUFACTURING - APPAREL--3.2% Jones Apparel Group, Inc.* .................... 250 7,090 Liz Claiborne, Inc. ........................... 900 25,380 Polo Ralph Lauren Corp.* ...................... 690 13,931 Reebok International Ltd.* .................... 950 29,688 --------- 76,089 --------- MEDICAL EQUIPMENT AND SUPPLIES--4.6% Alcon, Inc.* .................................. 690 27,014 C.R. Bard, Inc. ............................... 380 22,458 INAMED Corp.* ................................. 1,760 57,341 Smith & Nephew PLC - ADR ...................... 55 3,176 --------- 109,989 --------- MUTUAL FUNDS--0.1% Morgan Stanley Asia-Pacific Fund, Inc. ........ 250 1,750 --------- OIL & GAS EXPLORATION--7.2% Burlington Resources, Inc. .................... 605 28,042 Eni S.p.A. - ADR .............................. 330 24,321 EOG Resources, Inc. ........................... 485 20,030 Kerr-McGee Corp. .............................. 670 27,631 Marathon Oil Corp. ............................ 1,050 24,244 Occidental Petroleum Corp. .................... 1,350 40,365 Petroleo Brasileiro S.A. - ADR ................ 640 8,557 --------- 173,190 --------- NUMBER OF SHARES VALUE --------- ---------- OIL SERVICES--1.2% Enbridge Energy Management, LLC ............... 710 $ 27,706 --------- PHARMACEUTICALS--6.8% Bristol-Myers Squibb Co. ...................... 1,010 23,533 Johnson & Johnson ............................. 295 15,473 Merck & Co., Inc. ............................. 870 45,892 Pfizer, Inc. .................................. 375 11,183 Pharmacia Corp. ............................... 715 29,544 Shire Pharmaceuticals Group PLC - ADR* ........ 2,370 37,283 --------- 162,908 --------- PUBLISHING & INFORMATION SERVICES--1.4% Reader's Digest Association, Inc., (The) ...... 3,100 33,511 --------- REAL ESTATE--9.2% American Financial Realty Trust 144A .......... 2,850 33,060 Archstone-Smith Trust (REIT) .................. 735 16,207 Consolidated-Tomoka Land Co. .................. 265 5,324 FBR Asset Investment Corp. (REIT) ............. 1,060 34,005 LNR Property Corp. ............................ 1,530 50,582 National Health Investors, Inc. (REIT) ........ 550 8,662 Public Storage, Inc. (REIT) ................... 650 21,450 Trizec Properties, Inc. (REIT) ................ 2,915 25,098 Ventas, Inc. (REIT) ........................... 2,095 25,140 --------- 219,528 --------- RETAIL--3.4% Barnes & Noble, Inc.* ......................... 1,045 18,423 Borders Group, Inc.* .......................... 975 13,845 Home Depot, Inc., (The) ....................... 260 6,097 Payless ShoeSource, Inc.* ..................... 680 31,695 Tommy Hilfiger Corp.* ......................... 1,665 10,440 --------- 80,500 --------- The accompanying notes are an integral part of the financial statements. 17 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ---------- TELECOMMUNICATIONS & EQUIPMENT--1.1% 3Com Corp.* ................................... 3,940 $ 16,508 Telephone and Data Systems, Inc. .............. 255 10,218 ---------- 26,726 ---------- TOBACCO--4.4% Universal Corp. ............................... 660 25,153 UST, Inc. ..................................... 2,780 80,147 ---------- 105,300 ---------- TRANSPORTATION--0.3% Expeditors International of Washington, Inc. .............................. 240 8,206 ---------- TOTAL COMMON STOCK (Cost $2,415,615) ......................... 2,241,805 ---------- PAR (000) ----- CORPORATE BONDS--0.8% Sierra Pacific Resources 7.25% 02/14/10 .............................. $19 19,024 ---------- TOTAL CORPORATE BONDS (Cost $19,468) ............................ 19,024 ---------- NUMBER OF SHARES --------- OPTIONS--(0.2%) MBIA, Inc. Call Option $45.00 expires 01/17/04 ............................ (6) (1,980) Tenet Healthcare Corp. Call Option $15.00 expires 01/17/04 ..................... (8) (3,840) ---------- TOTAL OPTIONS (Cost $(4,852)) ........................... (5,820) ---------- PREFERRED STOCKS--0.8% AUTOMOBILES--0.4% Ford Capital Trust II 6.5% .................... 240 9,629 ---------- NUMBER OF SHARES VALUE --------- --------- BUILDING & BUILDING MATERIALS--0.2% Fleetwood Capital II 9.5% ..................... 135 $ 1,873 Fleetwood Capital Trust 6.0% .................. 285 4,168 ---------- 6,041 ---------- MEDICAL SUPPLIES--0.2% Baxter International, Inc. 7% ................. 90 4,542 ---------- TOTAL PREFERRED STOCKS (Cost $25,552) ............................ 20,212 ---------- RIGHTS/WARRANTS--0.2% BANKS & SAVINGS & LOANS--0.2% Citigroup, Inc. Litigation Tracking Warrants .................................... 6,055 5,571 ---------- TOTAL RIGHTS/WARRANTS (Cost $6,907) ............................. 5,571 ---------- SHORT TERM INVESTMENTS--4.5% Galaxy Money Market Fund 0.890% 03/03/03 ............................. 53,352 53,352 Wilmington Prime Money Market Portfolio 0.799% 03/03/03 ............................. 53,352 53,352 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $106,704) ........................... 106,704 ---------- TOTAL INVESTMENTS--99.8% (Cost $2,569,394) ............................. 2,387,496 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% ............................. 5,618 ---------- NET ASSETS--100.0% ............................... $2,393,114 ========== ------------- * Non-income producing. REIT -- Real Estate Investment Trust. ADR -- American Depository Receipt. 144A -- Security was purchased pursuant to Rule 144A under Securities Act of 1933 and may not be resold except to qualified institutional buyers. As of February 28, 2003, these securities amounted to 1.4% of net assets. The accompanying notes are an integral part of the financial statements. 18 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ LONG POSITIONS--91.4% DOMESTIC COMMON STOCK--89.4% AEROSPACE/DEFENSE--0.9% Raytheon Co. .................................. 36,000 $ 974,880 ------------ AGRICULTURE--0.9% Delta and Pine Land Co.+ ...................... 50,200 991,450 ------------ BANKS & SAVINGS & LOANS--2.2% Bay View Capital Corp.+ ....................... 157,179 866,056 FleetBoston Financial Corp.+ ................ 62,400 1,532,544 ------------ 2,398,600 ------------ BROADCASTING & PUBLISHING--0.9% Liberty Corp., (The)+ ......................... 24,800 973,648 ------------ BUSINESS & PUBLIC SERVICES--3.9% Alderwoods Group, Inc.+* ...................... 62,600 232,246 Gevity HR, Inc. ............................... 161,100 868,329 Interep National Radio Sales, Inc., Class A* .. 183,900 331,020 Kelly Services, Inc., Class A+ ................ 40,900 847,448 Kforce, Inc.* ................................. 179,400 430,560 On Assignment, Inc.* .......................... 37,010 149,520 Service Corporation International* ............ 341,700 1,049,019 VitalWorks, Inc.+* ............................ 96,000 368,640 ------------ 4,276,782 ------------ CHEMICALS--0.8% Ashland, Inc.+ ................................ 27,000 750,870 Southwall Technologies, Inc.* ................. 131,945 164,931 ------------ 915,801 ------------ COMPUTERS, SOFTWARE & SERVICES--9.3% Activision, Inc.+* ............................ 67,500 1,005,750 Apple Computer, Inc.+* ........................ 104,000 1,561,040 Insight Enterprises, Inc.+* ................... 110,300 840,486 Lexar Media, Inc.* ............................ 145,780 594,782 MAPICS, Inc.+* ................................ 90,500 624,450 NetIQ Corp.* .................................. 40,900 503,888 Parametric Technology Corp.* .................. 225,700 478,484 Pervasive Software, Inc.* ..................... 206,900 900,015 NUMBER OF SHARES VALUE --------- ------------ COMPUTERS, SOFTWARE & SERVICES--(CONTINUED) Roxio, Inc.* .................................. 220,900 $ 994,050 Siebel Systems, Inc.* ......................... 183,300 1,581,879 StorageNetworks, Inc.* ........................ 512,230 425,151 Sykes Enterprises, Inc.* ...................... 66,385 231,020 TechTeam Global, Inc.+* ....................... 73,500 477,750 ------------ 10,218,745 ------------ CONSULTING SERVICES--0.8% Navigant Consulting, Inc.* .................... 69,850 412,115 SITEL Corp.* .................................. 400,900 461,035 ------------ 873,150 ------------ CONSUMER PRODUCTS & SERVICES--5.1% Cendant Corp.* ................................ 84,700 1,042,657 Concord Camera Corp.* ......................... 125,800 777,444 Helen of Troy Ltd.+* .......................... 107,100 1,401,939 Kimberly-Clark Corp. .......................... 21,800 999,094 Nature's Sunshine Products, Inc. .............. 13,930 117,444 PepsiAmericas, Inc. ........................... 60,800 742,976 Rent-Way, Inc.* ............................... 145,700 533,262 ------------ 5,614,816 ------------ CONTAINERS--2.1% Constar International, Inc.* .................. 61,300 470,784 Crown Cork & Seal Co., Inc.* .................. 135,050 772,486 Graphic Packaging International Corp.+* ....... 120,500 619,370 Sealed Air Corp.+* ............................ 13,300 482,391 ------------ 2,345,031 ------------ DATA PROCESSING & REPRODUCTION--1.1% InfoUSA, Inc.* ................................ 48,900 221,517 InterCept, Inc.* .............................. 149,300 1,027,184 ------------ 1,248,701 ------------ DIVERSIFIED--2.1% Eaton Corp.+ .................................. 14,700 1,042,965 Viad Corp.+ ................................... 61,400 1,283,260 ------------ 2,326,225 ------------ 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, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ ELECTRIC UTILITIES--0.6% Green Mountain Power Corp. .................... 32,065 $ 649,958 ------------ ELECTRONICS--1.7% Cubic Corp.+ .................................. 52,900 814,660 Microtune, Inc.* .............................. 219,700 329,550 Tech Data Corp.+* ............................. 31,600 714,792 ------------ 1,859,002 ------------ ENVIRONMENTAL SERVICES--0.7% Exponent, Inc.+* .............................. 25,480 356,720 Fuel-Tech N.V.* ............................... 114,600 402,246 ------------ 758,966 ------------ FINANCIAL SERVICES--4.2% A.G. Edwards, Inc.+ ........................... 29,900 797,433 BKF Capital Group, Inc.+* 30,000 499,500 Century Business Services, Inc.* .............. 335,100 931,578 Equifax, Inc.+ ................................ 40,800 782,544 New Century Financial Corp. ................... 18,900 503,307 SoundView Technology Group, Inc.* ............. 894,500 1,136,015 ------------ 4,650,377 ------------ FOOD & BEVERAGE--4.0% Fleming Companies, Inc. ....................... 203,600 421,452 Interstate Bakeries Corp. ..................... 99,400 953,246 J & J Snack Foods Corp.+* ..................... 18,200 526,890 Kroger Co., (The)+ ............................ 62,100 820,962 SUPERVALU, Inc.+ .............................. 58,200 810,144 Tyson Foods, Inc., Class A+ ................... 89,800 826,160 ------------ 4,358,854 ------------ GAMBLING--0.8% Argosy Gaming Co.* ............................ 27,200 435,472 MTR Gaming Group, Inc.* ....................... 75,400 430,534 ------------ 866,006 ------------ HEALTHCARE--5.5% America Service Group, Inc.+* ................. 32,800 393,600 Apria Healthcare Group, Inc.+* ................ 44,600 982,538 Gentiva Health Services, Inc. ................. 124,900 1,211,530 NUMBER OF SHARES VALUE --------- ------------ HEALTHCARE--(CONTINUED) HEALTHSOUTH Corp.* ............................ 230,100 $ 823,758 PacifiCare Health Systems, Inc.+* ............. 24,450 528,120 Province Healthcare Co.* ...................... 161,620 1,076,389 Tenet Healthcare Corp.* ....................... 57,600 1,046,592 ------------ 6,062,527 ------------ INSURANCE--1.7% Hub International Ltd.+ ....................... 23,100 316,239 Infinity Property & Casualty Corp.* ........... 33,000 529,650 Radian Group, Inc.+ ........................... 27,800 969,386 ------------ 1,815,275 ------------ INTERNET SOFTWARE & SERVICES--2.7% Agile Software Corp.+* ........................ 69,900 457,845 Art Technology Group, Inc.* ................... 215,400 200,322 EDGAR Online, Inc.* ........................... 207,500 203,350 Pinnacor, Inc.* ............................... 145,900 189,670 RADVision Ltd.* ............................... 178,700 1,213,373 RADWARE Ltd.+* ................................ 74,400 698,616 ------------ 2,963,176 ------------ LEISURE & ENTERTAINMENT--2.8% Ameristar Casinos, Inc.* ...................... 56,700 496,692 Multimedia Games, Inc.+* ...................... 45,400 830,366 Racing Champions Ertl Corp.+* ................. 55,400 794,990 Royal Caribbean Cruises Ltd. .................. 73,600 997,280 ------------ 3,119,328 ------------ MACHINERY--1.5% Columbus McKinnon Corp.* ...................... 59,350 103,863 Dover Corp.+ .................................. 19,100 487,432 Kennametal, Inc.+ ............................. 30,800 921,536 Terex Corp.* .................................. 14,805 178,844 ------------ 1,691,675 ------------ MANUFACTURING--1.3% Craftmade International, Inc.+ ................ 34,900 489,298 Polycom, Inc.+* ............................... 94,000 942,820 ------------ 1,432,118 ------------ The accompanying notes are an integral part of the financial statements. 20 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ MANUFACTURING - APPAREL--2.2% Jones Apparel Group, Inc.+* ................... 34,300 $ 972,748 Liz Claiborne, Inc.+ .......................... 35,600 1,003,920 Nautica Enterprises, Inc.* .................... 50,200 477,904 ------------ 2,454,572 ------------ MEDICAL EQUIPMENT AND SUPPLIES--0.5% D & K Healthcare Resources, Inc.+ ............. 54,500 510,665 ------------ METALS - STEEL--0.2% Universal Stainless & Alloy Products, Inc.+* .. 34,900 183,400 ------------ OFFICE EQUIPMENT & SUPPLIES--2.4% Danka Business Systems PLC - ADR* ............. 231,565 956,363 Oak Technology, Inc. .......................... 194,100 601,710 Office Depot, Inc.+ ........................... 90,900 1,067,166 ------------ 2,625,239 ------------ OIL & GAS EXPLORATION--3.5% Chesapeake Energy Corp.+ ...................... 123,500 1,002,820 Newpark Resources, Inc.* ...................... 229,600 943,656 Pride International, Inc.* .................... 33,700 488,650 Swift Energy Co.+* ............................ 104,300 971,033 Transocean, Inc.+* ............................ 20,500 465,350 ------------ 3,871,509 ------------ OIL SERVICES--1.2% Global Industries Ltd.* ....................... 59,145 254,194 Horizon Offshore, Inc.* ....................... 67,470 259,085 Petroleo Brasileiro S.A. - ADR ................ 70,600 847,200 ------------ 1,360,479 ------------ PAPER & FORESTRY PRODUCTS--0.6% Caraustar Industries, Inc.+ ................... 83,300 621,418 ------------ PHARMACEUTICALS--3.0% Bristol-Myers Squibb Co.+ ..................... 43,000 1,001,900 Pfizer, Inc.+ ................................. 39,400 1,174,908 NUMBER OF SHARES VALUE --------- ------------ PHARMACEUTICALS--(CONTINUED) Shire Pharmaceuticals Group PLC - ADR* ........ 67,500 $ 1,061,843 ------------ 3,238,651 ------------ PUBLISHING & INFORMATION SERVICES--1.1% Knight-Ridder, Inc.+ .......................... 19,000 1,212,390 ------------ REAL ESTATE--0.5% American Financial Realty Trust 144A .......... 51,500 597,400 ------------ RECREATION--0.4% Bally Total Fitness Holding Corp.* ............ 69,400 395,580 ------------ RESTAURANTS--2.2% Friendly Ice Cream Corp.+* .................... 55,400 386,692 Lone Star Steakhouse & Saloon, Inc.+ .......... 51,400 1,042,906 Papa John's International, Inc.+* ............. 41,700 991,209 ------------ 2,420,807 ------------ RETAIL--7.7% Barnes & Noble, Inc.+* ........................ 57,900 1,020,777 BJ's Wholesale Club, Inc.+* ................... 69,300 968,814 Charming Shoppes, Inc.* ....................... 162,700 471,830 Footstar, Inc.* ............................... 109,700 952,196 Longs Drug Stores Corp. ....................... 61,900 854,839 Nautilus Group, Inc., (The) ................... 66,800 980,624 Payless ShoeSource, Inc.+* .................... 19,800 922,878 Tommy Hilfiger Corp.+* ........................ 192,600 1,207,602 Zale Corp.+* .................................. 36,600 1,121,790 ------------ 8,501,350 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--1.0% Zoran Corp.* .................................. 90,600 1,102,602 ------------ TELECOMMUNICATIONS & EQUIPMENT--2.2% Advanced Fibre Communications, Inc.+* ......... 52,200 832,590 Alvarion Ltd.* ................................ 123,900 241,605 Sprint Corp (Pcs Group) ....................... 220,200 871,992 Ulticom, Inc.+* ............................... 87,200 504,888 ------------ 2,451,075 ------------ The accompanying notes are an integral part of the financial statements. 21 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ TOYS--0.9% Hasbro, Inc.+ ................................. 84,100 $ 1,018,451 ------------ TRANSPORTATION - SHIPPING--1.2% Hub Group, Inc., Class A+* .................... 61,300 314,469 OMI Corp.* .................................... 219,500 1,020,675 ------------ 1,335,144 ------------ WASTE MANAGEMENT--1.0% Republic Services, Inc.+* ..................... 56,500 1,077,455 ------------ TOTAL DOMESTIC COMMON STOCK (Cost $110,475,775) ....................... 98,363,278 ------------ PAR (000) ------- CONVERTIBLE BONDS--0.1% Interpool, Inc.+ 9.25% 12/27/22 .............................. $75 75,000 ------------ TOTAL CONVERTIBLE BONDS (Cost $75,000) ............................ 75,000 ------------ NUMBER OF SHARES --------- SHORT-TERM INVESTMENTS--1.9% Galaxy Money Market Fund 0.890% 03/03/03 ............................. 1,045,293 1,045,293 Wilmington Prime Money Market Portfolio 0.799% 03/03/03 ............................. 1,045,294 1,045,294 ------------ TOTAL SHORT-TERM INVESTMENTS (Cost $2,090,587) ......................... 2,090,587 ------------ TOTAL LONG POSITIONS--91.4% (Cost $112,641,362) ....................... 100,528,865 ------------ SECURITIES SOLD SHORT--(82.0%) AEROSPACE & DEFENSE--(0.1%) Environmental Tectonics Corp.* ................ (27,400) (162,756) ------------ NUMBER OF SHARES VALUE --------- ------------ AIR TRANSPORT--(1.1%) Alaska Air Group, Inc.* ....................... (40,100) $ (727,815) AMR Corp.* .................................... (210,500) (492,570) US Airways Group, Inc.* ....................... (185,200) (30,002) ------------ (1,250,387) ------------ AIRLINES--0.0% UAL Corp. ..................................... (4,800) (5,184) ------------ AUTOMOTIVE--(1.3%) Magna International, Inc., Class A ............ (16,100) (902,083) Sports Resorts International, Inc.* ........... (49,300) (295,307) United Auto Group, Inc.* ...................... (18,800) (209,244) ------------ (1,406,634) ------------ BANKING--(3.3%) Hudson City Bancorp, Inc. ..................... (55,400) (1,052,046) Kookmin Bank - ADR* ........................... (18,500) (564,620) New York Community Bancorp, Inc. .............. (32,700) (935,547) UCBH Holdings, Inc. ........................... (24,800) (1,044,080) ------------ (3,596,293) ------------ BUILDING & BUILDING MATERIALS--(3.4%) Beazer Homes USA, Inc. ........................ (6,600) (385,176) Kb Home ....................................... (17,500) (820,750) Martin Marietta Materials, Inc. ............... (19,700) (543,326) NVR, Inc.* .................................... (1,300) (431,535) Ryland Group, Inc., (The) ..................... (21,100) (871,430) Toll Brothers, Inc.* .......................... (34,200) (662,454) ------------ (3,714,671) ------------ BUSINESS & PUBLIC SERVICES--(2.9%) ARAMARK Corp., Class B* ....................... (36,400) (798,980) Gaiam, Inc.* .................................. (29,700) (134,274) Mobile Mini, Inc.* ............................ (25,400) (368,808) Paychex, Inc. ................................. (21,900) (574,218) SCP Pool Corp.* ............................... (47,400) (1,298,760) ------------ (3,175,040) ------------ The accompanying notes are an integral part of the financial statements. 22 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ CHEMICALS--(2.6%) Cabot Corp. ................................... (18,900) $ (413,910) Cabot Microelectronics Corp.* ................. (10,500) (441,000) Dow Chemical Co., (The) ....................... (32,900) (898,170) Sigma-Aldrich Corp. ........................... (25,600) (1,121,792) ------------ (2,874,872) ------------ COMPUTERS, SOFTWARE & SERVICES--(7.7%) Affiliated Computer Services, Inc., Class A* .. (14,400) (645,552) Anteon International Corp.* ................... (8,735) (200,730) Authentidate Holding Corp.* ................... (19,900) (60,496) Avid Technology, Inc.* ........................ (41,900) (871,101) CACI International, Inc., Class A* ............ (13,000) (440,310) CDW Computer Centers, Inc.* ................... (20,400) (890,664) Citrix Systems, Inc.* ......................... (66,700) (800,400) Cognizant Technology Solutions Corp.* ......... (16,200) (1,137,240) ConSyGen, Inc.* ............................... (200) 0 Electronic Arts, Inc.* ........................ (13,800) (728,640) Extended Systems, Inc.* ....................... (32,500) (50,375) FactSet Research Systems, Inc. ................ (16,000) (409,440) Intuit, Inc.* ................................. (15,000) (712,800) Kronos, Inc.* ................................. (2,900) (115,246) Research In Motion Ltd.* ...................... (7,200) (91,440) Symbol Technologies, Inc. ..................... (65,500) (692,990) TiVo, Inc.* ................................... (109,499) (614,290) Xybernaut Corp.* .............................. (64,100) (26,281) ------------ (8,487,995) ------------ CONSTRUCTION & HOUSING--(1.1%) Lennar Corp. .................................. (16,100) (869,239) Shaw Group, Inc., (The)* ...................... (39,600) (379,764) ------------ (1,249,003) ------------ CONSUMER PRODUCTS & SERVICES--(1.5%) Eastman Kodak Co. ............................. (24,800) (734,080) Ionics, Inc.* ................................. (41,600) (864,864) ------------ (1,598,944) ------------ NUMBER OF SHARES VALUE --------- ------------ DATA PROCESSING & REPRODUCTION--(1.5%) First Data Corp. .............................. (18,200) $ (630,630) NetScreen Technologies, Inc.* ................. (49,600) (968,688) ------------ (1,599,318) ------------ ELECTRIC UTILITIES--(0.4%) DQE, Inc. ..................................... (29,100) (392,850) ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--(5.1%) Amkor Technology, Inc.* ....................... (112,100) (532,475) Broadcom Corp., Class A ....................... (52,600) (761,648) EDO Corp. ..................................... (44,500) (716,450) Gentex Corp.* ................................. (47,600) (1,279,488) International Rectifier Corp.* ................ (33,300) (744,255) Micrel, Inc. .................................. (23,705) (233,257) Synopsys, Inc* ................................ (11,200) (456,736) Thomas & Betts Corp.* ......................... (56,300) (851,819) ------------ (5,576,128) ------------ ENERGY - OTHER--(3.2%) Ballard Power Systems, Inc.* .................. (85,700) (881,853) Dominion Resources, Inc. ...................... (14,600) (786,940) Duke Energy Corp. ............................. (39,300) (530,943) Dynegy, Inc. .................................. (225,900) (440,505) FuelCell Energy, Inc.* ........................ (109,900) (646,212) Plug Power, Inc.* ............................. (51,100) (273,385) ------------ (3,559,838) ------------ ENGINEERING--(0.6%) EMCOR Group, Inc. ............................. (14,100) (681,030) ------------ FINANCIAL SERVICES--(5.2%) Allied Capital Corp. .......................... (44,737) (896,977) American Express Co. .......................... (12,400) (416,392) BOK Financial Corp.* .......................... (8,000) (259,760) Financial Federal Corp. ....................... (27,700) (701,918) H&R Block, Inc. ............................... (23,400) (949,338) Investors Financial Services Corp. ............ (27,700) (692,500) LendingTree, Inc.* ............................ (37,700) (389,818) NextCard, Inc.* ............................... (128,500) (2,120) Sovereign Bancorp, Inc. ....................... (37,100) (503,818) Trustmark Corp. ............................... (37,200) (897,636) ------------ (5,710,277) ------------ The accompanying notes are an integral part of the financial statements. 23 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ FOOD & BEVERAGE--(1.7%) American Italian Pasta Co., Class A* .......... (11,000) $ (456,610) Sensient Technologies Corp. ................... (29,900) (618,930) Sysco Corp. ................................... (30,600) (829,872) ------------ (1,905,412) ------------ GAMBLING--(0.4%) Boyd Gaming Corp.* ............................ (36,100) (451,611) ------------ HEALTHCARE--(0.4%) Sierra Health Services, Inc.* ................. (35,900) (434,031) ------------ INSURANCE--(1.8%) Chubb Corp., (The) ............................ (9,200) (439,944) First American Corp. .......................... (22,600) (522,060) LandAmerica Financial Group, Inc. ............. (15,300) (576,810) St. Paul Cos., Inc., (The) .................... (11,700) (361,062) Trenwick Group Ltd. ........................... (135,235) (45,980) ------------ (1,945,856) ------------ INTERNET SOFTWARE & SERVICES--(3.9%) 1-800 CONTACTS, Inc.* ......................... (6,600) (117,942) Akamai Technologies, Inc.* .................... (78,500) (120,105) Answerthink, Inc.* ............................ (25,800) (65,790) Exult, Inc.* .................................. (64,470) (438,396) Interliant, Inc.* ............................. (600) (12) Juniper Networks, Inc.* ....................... (9,900) (89,001) NetFlix, Inc.* ................................ (41,400) (708,354) Overture Services, Inc.* ...................... (57,600) (916,992) Raindance Communications, Inc.* ............... (79,400) (115,924) SafeNet, Inc.* ................................ (26,500) (468,255) Secure Computing Corp.* ....................... (9,100) (41,405) SERENA Software, Inc.* ........................ (48,800) (732,000) TIBCO Software, Inc.* ......................... (112,800) (533,544) ------------ (4,347,720) ------------ LEISURE & ENTERTAINMENT--(1.3%) Marriott International, Inc., Class A ......... (24,800) (749,456) Polaris Industries, Inc. ...................... (13,100) (634,040) ------------ (1,383,496) ------------ NUMBER OF SHARES VALUE --------- ------------ MACHINERY--(0.6%) Surebeam Corporation, Class A* ................ (162,900) $ (716,760) ------------ MANUFACTURING--(1.7%) Applied Films Corp.* .......................... (32,800) (493,312) Danaher Corp. ................................. (8,000) (520,160) Weyerhaeuser Co. .............................. (17,900) (892,315) ------------ (1,905,787) ------------ MEDIA--(0.6%) Univision Communications, Inc.* ............... (27,000) (668,790) ------------ MEDICAL EQUIPMENT AND SUPPLIES--(6.3%) Aksys Ltd.* ................................... (137,500) (842,875) AstraZeneca PLC - ADR ......................... (29,900) (960,388) Bausch & Lomb, Inc. ........................... (23,300) (717,640) Bio-Rad Laboratories, Inc.* ................... (24,800) (891,560) DENTSPLY International, Inc. .................. (16,800) (585,984) Digital Angel Corp.* .......................... (13,400) (22,378) Haemonetics Corp.* ............................ (36,400) (764,036) Martek Biosciences Corp.* ..................... (51,100) (1,246,278) NexMed, Inc.* ................................. (57,800) (104,618) Techne Corp.* ................................. (30,200) (655,944) Vasomedical, Inc.* ............................ (244,400) (178,412) ------------ (6,970,113) ------------ MINING & METALS--(0.4%) Precision Castparts Corp. ..................... (19,100) (450,760) ------------ PHARMACEUTICALS--(3.7%) Amylin Pharmaceuticals, Inc.* ................. (40,700) (624,338) Eli Lilly & Co. ............................... (10,200) (576,912) Forest Laboratories, Inc.* .................... (17,600) (876,480) ICOS Corp.* ................................... (18,900) (377,055) Medicines Co., (The)* ......................... (25,400) (481,076) NaPro BioTherapeutics, Inc.* .................. (143,200) (64,440) Taro Pharmaceutical Industries Ltd.* .......... (29,200) (1,072,224) ------------ (4,072,525) ------------ The accompanying notes are an integral part of the financial statements. 24 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) FEBRUARY 28, 2003 (UNAUDITED) NUMBER OF SHARES VALUE --------- ------------ RESTAURANTS--(2.0%) Cheesecake Factory, Inc., (The)* .............. (22,600) $ (668,734) Chicago Pizza & Brewery, Inc.* ................ (120,100) (697,781) Outback Steakhouse, Inc.* ..................... (13,100) (421,820) Red Robin Gourmet Burgers* .................... (34,400) (395,600) ------------ (2,183,935) ------------ RETAIL--(6.6%) A.C. Moore Arts & Crafts, Inc.* ............... (70,200) (827,658) AutoZone, Inc.* ............................... (17,100) (1,125,180) Blue Rhino Corp.* ............................. (58,485) (558,532) Guitar Center, Inc.* .......................... (24,000) (490,080) Hollywood Entertainment Corp.* ................ (63,100) (887,186) Hot Topic, Inc.* .............................. (30,600) (676,260) Jo-Ann Stores, Inc., Class A* ................. (33,130) (666,244) Staples, Inc.* ................................ (35,800) (619,698) Talbots, Inc., (The) .......................... (20,300) (505,876) Tractor Supply Co.* ........................... (26,300) (869,741) ------------ (7,226,455) ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--(5.3%) Artisan Components, Inc.* ..................... (25,300) (415,932) Cree, Inc.* ................................... (4,300) (73,186) Cymer, Inc. ................................... (27,700) (836,540) Integrated Circuit Systems, Inc.* ............. (45,200) (1,078,472) Intersil Corp., Class A* ...................... (22,800) (356,820) Maxim Integrated Products, Inc. ............... (26,200) (904,948) MKS Instruments, Inc.* ........................ (37,300) (494,225) Rambus, Inc.* ................................. (9,900) (150,282) Standard Microsystems Corp.* .................. (21,800) (318,716) Texas Instruments, Inc. ....................... (28,200) (472,350) Veeco Instruments, Inc.* ...................... (49,100) (749,757) ------------ (5,851,228) ------------ TELECOMMUNICATIONS & EQUIPMENT--(1.3%) Adtran, Inc. .................................. (24,400) (785,436) Choice One Communications, Inc.* .............. (55,900) (15,093) CTC Communications Group, Inc. ................ (184,600) (932) Inter-Tel, Inc. ............................... (14,735) (269,061) InterDigital Communications Corp.* ............ (5,000) (71,900) NUMBER OF SHARES VALUE --------- ------------ TELECOMMUNICATIONS & EQUIPMENT--(CONTINUED) RCN Corp.* .................................... (141,700) $ (111,943) US LEC Corp., Class A* ........................ (59,300) (141,727) Worldcom, Inc. - Worldcom Group ............... (147,900) (20,337) ------------ (1,416,429) ------------ TRANSPORTATION--(2.6%) Hunt (J.B.) Transport Services, Inc.* ......... (15,300) (375,462) P.A.M. Transportation Services, Inc.* ......... (40,100) (896,235) United Parcel Service, Inc. ................... (11,000) (632,940) Werner Enterprises, Inc. ...................... (48,800) (915,000) ------------ (2,819,637) ------------ WASTE MANAGEMENT--(0.4%) Waste Connections, Inc.* ...................... (13,600) (452,608) ------------ TOTAL SECURITIES SOLD SHORT (Proceeds $103,220,882) ................... (90,244,373) ------------ NET INVESTMENTS IN SECURITIES--9.4% (Cost $9,420,480) ............................. 10,284,492 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--90.6% ............................ 99,705,140 ------------ NET ASSETS--100.0% ............................... $109,989,632 ============ ------------- * Non-income producing. + Security position is either entirely or partially held in a segregated account as collateral for securities sold short aggregating a total market value of $52,185,457. ADR -- American Depository Receipt. 144A -- Security was purchased pursuant to Rule 144A under Securities Act of 1933 and may not be resold except to qualified institutional buyers. As of February 28, 2003, these securities amounted to 0.5% of net assets. The accompanying notes are an integral part of the financial statements. 25 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF ASSETS AND LIABILITIES FEBRUARY 28, 2003 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP ALL-CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II VALUE FUND EQUITY FUND ----------- ----------- ------------- ---------- ----------- ASSETS Investments, at value (cost-- $51,846,438 $62,523,439, $253,830,581, $2,569,394, and $112,641,362, respectively) .............. $46,537,313 $58,032,142 $217,333,618 $2,387,496 $100,528,865 Receivable from Investment Advisor ............. -- -- -- 8,020 -- Deposits with brokers for securities sold short -- -- -- -- 96,640,988 Receivable for investments sold ................ 294,530 198,843 6,174,383 -- 11,504,837 Receivable for fund shares sold ................ 15,627 -- 177,188 -- 104,875 Prepaid expenses ............................... 15,768 14,254 29,570 9,543 23,563 Dividends and interest receivable .............. 96,024 94,570 133,518 2,855 105,759 ----------- ----------- ------------ ---------- ------------ Total assets ................................. 46,959,262 58,339,809 223,848,277 2,407,914 208,908,887 ----------- ----------- ------------ ---------- ------------ LIABILITIES Payable for investments purchased .............. -- 1,837,271 661,420 -- 7,885,490 Securities sold short (proceeds $103,220,882) .. -- -- -- -- 90,244,373 Payable for fund shares redeemed ............... 1,637,725 3,118,872 192,799 -- 455,548 Accrued expenses and other liabilities ......... 56,640 67,985 419,662 14,800 256,386 Payable for dividends on securities sold short . -- -- -- -- 77,458 ----------- ----------- ------------ ---------- ------------ Total liabilities ............................ 1,694,365 5,024,128 1,273,881 14,800 98,919,255 ----------- ----------- ------------ ---------- ------------ NET ASSETS Capital stock, $0.001 par value ................ 4,882 5,865 16,112 277 7,626 Additional Paid-in capital ..................... 57,789,136 62,142,211 282,259,524 2,648,359 118,547,186 Undistributed net investment income/(loss) ..... 208,452 114,861 (882,336) 241 (1,052,174) Accumulated net realized loss from investments and foreign currency translations, if any .... (7,428,448) (4,455,959) (22,321,941) (73,865) (8,377,018) Net unrealized depreciation on investments and foreign currency translations, if any ........ (5,309,125) (4,491,297) (36,496,963) (181,898) (12,112,497) Net unrealized appreciation on investments sold short ................................... -- -- -- -- 12,976,509 ----------- ----------- ------------ ---------- ------------ Net assets ................................... $45,264,897 $53,315,681 $222,574,396 $2,393,114 $109,989,632 =========== =========== ============ ========== ============ INSTITUTIONAL CLASS Net assets ..................................... $40,898,832 $50,896,955 $ 52,017,143 $2,295,484 $ 67,382,953 ----------- ----------- ------------ ---------- ------------ Shares outstanding ............................. 4,418,385 5,596,340 3,741,910 265,790 4,668,010 ----------- ----------- ------------ ---------- ------------ Net asset value, offering and redemption price per share .............................. $9.26 $9.09 $13.90 $8.64 $14.44 ----------- ----------- ------------ ---------- ------------ INVESTOR CLASS Net assets.... ................................. $ 4,366,065 $ 2,418,726 $170,557,253 $ 97,630 $ 42,606,679 ----------- ----------- ------------ ---------- ------------ Shares outstanding ............................. 463,775 268,950 12,370,577 11,320 2,957,812 ----------- ----------- ------------ ---------- ------------ Net asset value, offering and redemption price per share .............................. $9.41 $8.99 $13.79 $8.62 $14.40 =========== =========== ============ ========== ============
The accompanying notes are an integral part of the financial statements. 26 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2003 (UNAUDITED)
LARGE CAP MID CAP SMALL CAP ALL-CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II VALUE FUND EQUITY FUND ----------- ----------- ------------- ------------ ------------ INVESTMENT INCOME Dividends(1) ................................... $ 460,692 $ 391,318 $ 1,323,907 $ 21,491 $ 405,611 Interest ....................................... 7,367 327 1,061 133 272,433 ----------- ----------- ------------ ------------ ------------ 468,059 391,645 1,324,968 21,624 678,044 ----------- ----------- ------------ ------------ ------------ EXPENSES Advisory fees .................................. 188,996 216,145 1,570,884 11,642 1,207,897 Administration fees ............................ 39,453 39,489 161,025 39,545 73,039 Administrative Services fees ................... 37,810 40,527 188,506 1,746 80,526 Transfer Agent fees and expenses ............... 37,450 38,790 103,344 37,136 42,726 Custodian fees and expenses .................... 11,075 9,370 32,179 10,889 29,259 Printing ....................................... 11,117 5,131 105,263 4,827 31,756 Federal and State Registration fees ............ 10,459 12,042 19,713 20,976 15,179 Audit and Legal fees ........................... 15,543 14,910 99,880 399 34,224 Distribution fees .............................. 8,074 6,878 259,408 112 56,798 Directors ...................................... 3,415 2,904 19,272 330 8,327 Insurance ...................................... 1,303 1,561 6,109 49 2,300 Dividend expense ............................... -- -- -- -- 331,275 Other .......................................... 639 623 551 533 127 ----------- ----------- ------------ ------------ ------------ Total expenses before waivers and reimbursements ............................. 365,334 388,370 2,566,134 128,184 1,913,433 Less: waivers and reimbursements ............. (105,192) (111,311) (358,830) (113,520) (183,253) ----------- ----------- ------------ ------------ ------------ Net expenses after waivers and reimbursements ............................. 260,142 277,059 2,207,304 14,664 1,730,180 ----------- ----------- ------------ ------------ ------------ Net investment income/(loss) ................... 207,917 114,586 (882,336) 6,960 (1,052,136) ----------- ----------- ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized gain/(loss) from: Investments .................................. (4,942,497) (3,151,936) (15,933,501) (64,506) (16,040,206) Investments sold short -- -- -- -- 9,360,198 Net change in unrealized appreciation/ (depreciation) from investments .............. 76,876 (587,027) (16,868,010) (96,581) 6,965,250 ----------- ----------- ------------ ------------ ------------ Net realized and unrealized gain/(loss) from investments .................................. (4,865,621) (3,738,963) (32,801,511) (161,087) 285,242 ----------- ----------- ------------ ------------ ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ................................ $(4,657,704) $(3,624,377) $(33,683,847) $ (154,127) $ (766,894) =========== =========== ============ ============ ============ ---------------- (1) Net of foreign taxes of $4,511, $2,236, $3,284, $146 and $302 for the Large Cap Value Fund, Mid Cap Value Fund, Small Cap Value Fund, All-Cap Value Fund, and Long/Short Equity Fund, respectively.
The accompanying notes are an integral part of the financial statements. 27 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, 2003 AUGUST 31, 2002 FEBRUARY 28, 2003 AUGUST 31, 2002 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) .................... $ 207,917 $ 289,027 $ 114,586 $ 1,851 Net realized gain/(loss) from: Investments ................................... (4,942,497) (1,579,180) (3,151,936) (452,083) Net change in unrealized appreciation/ (depreciation) from: Investments ................................... 76,876 (6,436,851) (587,027) (4,831,959) ----------- ----------- ----------- ------------ Net increase/(decrease) in net assets resulting from operations ............................... (4,657,704) (7,727,004) (3,624,377) (5,282,191) ----------- ----------- ----------- ------------ LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ...... (262,849) (361,284) (1,576) (411,500) Net investment income Investor shares ........... (26,147) (36,647) -- (3,588) Net realized capital gains Institutional shares . (380,478) (4,895,102) -- (12,409,583) Net realized capital gains Investor shares ...... (56,805) (568,772) -- (233,825) ----------- ----------- ----------- ------------ Total dividends and distributions to shareholders (726,279) (5,861,805) (1,576) (13,058,496) ----------- ----------- ----------- ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ............. (2,310,688) 22,434,063 636,972 (43,746,861) ----------- ----------- ----------- ------------ Total increase/(decrease) in net assets ......... (7,694,671) 8,845,254 (2,988,981) (62,087,548) ----------- ----------- ----------- ------------ NET ASSETS Beginning of period ............................. 52,959,568 44,114,314 56,304,662 118,392,210 ----------- ----------- ----------- ------------ End of period ................................... $45,264,897 $52,959,568 $53,315,681 $ 56,304,662 =========== =========== =========== ============
BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
SMALL CAP VALUE FUND II ALL-CAP VALUE FUND ------------------------------------- ----------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR SIX MONTHS JULY 1, 2002* ENDED ENDED ENDED THROUGH FEBRUARY 28, 2003 AUGUST 31, 2002 FEBRUARY 28, 2003 AUGUST 31, 2002 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) .................... $ (882,336) $ (3,627,787) $ 6,960 $ 452 Net realized gain/(loss) from: Investments ................................... (15,933,501) (5,379,748) (64,506) (9,359) Net change in unrealized appreciation/ (depreciation) from: Investments ................................... (16,868,010) (28,294,854) (96,581) (85,317) ------------ ------------ ---------- ---------- Net increase/(decrease) in net assets resulting from operations ............................... (33,683,847) (37,302,389) (154,127) (94,224) ------------ ------------ ---------- ---------- LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ...... -- -- (6,990) -- Net investment income Investor shares ........... -- -- (181) -- Net realized capital gains Institutional shares . (13,998) (445,911) -- -- Net realized capital gains Investor shares ...... (57,054) (3,891,940) -- -- ------------ ------------ ---------- ---------- Total dividends and distributions to shareholders (71,052) (4,337,851) (7,171) -- ------------ ------------ ---------- ---------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ............. (37,984,319) 83,900,063 660,481 1,988,155 ------------ ------------ ---------- ---------- Total increase/(decrease) in net assets ......... (71,739,218) 42,259,823 499,183 1,893,931 ------------ ------------ ---------- ---------- NET ASSETS Beginning of period ............................. 294,313,614 252,053,791 1,893,931 -- ------------ ------------ ---------- ---------- End of period ................................... $222,574,396 $294,313,614 $2,393,114 $1,893,931 ============ ============ ========== ========== LONG/SHORT EQUITY FUND ---------------------------------------- FOR THE FOR THE SIX MONTHS YEAR ENDED ENDED FEBRUARY 28, 2003 AUGUST 31, 2002 ----------------- --------------- (UNAUDITED) INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) .................... $ (1,052,136) $ 238,670 Net realized gain/(loss) from: Investments ................................... (6,680,008) 5,075,063 Net change in unrealized appreciation/ (depreciation) from: Investments ................................... 6,965,250 (9,096,130) ------------ ------------ Net increase/(decrease) in net assets resulting from operations ............................... (766,894) (3,782,397) ------------ ------------ LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ...... (186,216) (42,723) Net investment income Investor shares ........... (52,048) (6,861) Net realized capital gains Institutional shares . (2,687,967) (980,277) Net realized capital gains Investor shares ...... (1,975,827) (346,641) ------------ ------------ Total dividends and distributions to shareholders (4,902,058) (1,376,502) ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ............. 423,278 83,293,127 ------------ ------------ Total increase/(decrease) in net assets ......... (5,245,674) 78,134,228 ------------ ------------ NET ASSETS Beginning of period ............................. 115,235,306 37,101,078 ------------ ------------ End of period ................................... $109,989,632 $115,235,306 ============ ============
----------------------------- *Commencement of operations. The accompanying notes are anintegral part of the financial statements. 28 and 29 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 - INSTITUTIONAL CLASS -------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .. $ 10.33 $ 13.52 $ 12.82 $ 12.24 $ 10.58 $ 12.46 ------- ------- ------- ------- ------- ------- Net investment income ................. 0.04** 0.08** 0.12** 0.14 0.05 0.12 Net realized and unrealized gain/(loss) on investments ......... (0.96)** (1.54)** 1.10** 1.25 1.76 (1.31) ------- ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ... (0.92) (1.46) 1.22 1.39 1.81 (1.19) ------- ------- ------- ------- ------- ------- Dividends to shareholders from Net investment income ................. (0.06) (0.12) (0.13) (0.11) (0.04) (0.08) Net realized capital gains ............ (0.09) (1.61) (0.39) (0.70) (0.11) (0.61) ------- ------- ------- ------- ------- ------- Total dividends and distributions to shareholders ....................... (0.15) (1.73) (0.52) (0.81) (0.15) (0.69) ------- ------- ------- ------- ------- ------- Net asset value, end of period ........ $ 9.26 $10.33 $ 13.52 $ 12.82 $ 12.24 $ 10.58 ======= ====== ======= ======= ======= ======= Total investment return(1) ............ (8.99%) (12.67%) 9.65% 11.99% 17.12% (10.23%) ======= ====== ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .................... $40,899 $45,067 $40,368 $39,897 $53,112 $50,724 Ratio of expenses to average net assets with waivers and reimbursements ..................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and reimbursements ..................... 1.42% 1.40% 1.43% 1.43% 1.30% 1.49% Ratio of net investment income to average net assets ................. 0.86% 0.62% 0.89% 0.92% 0.61% 0.87% Portfolio turnover rate ............... 49.95% 88.65% 105.71% 120.99% 156.16% 111.68% LARGE CAP VALUE FUND - INVESTOR CLASS -------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .. $ 10.50 $ 13.73 $13.02 $12.36 $10.70 $12.45 ------- ------- ------ ------ ------ ------ Net investment income ................. 0.03** 0.04** 0.09** 0.10 0.15 0.06 Net realized and unrealized gain/(loss) on investments ......... (0.99)** (1.56)** 1.13** 1.27 1.65 (1.27) ------- ------- ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ... (0.96) (1.52) 1.22 1.37 1.80 (1.21) ------- ------- ------ ------ ------ ------ Dividends to shareholders from Net investment income ................. (0.04) (0.10) (0.12) (0.01) (0.03) (0.06) Net realized capital gains ............ (0.09) (1.61) (0.39) (0.70) (0.11) (0.48) ------- ------- ------ ------ ------ ------ Total dividends and distributions to shareholders ....................... (0.13) (1.71) (0.51) (0.71) (0.14) (0.54) ------- ------- ------ ------ ------ ------ Net asset value, end of period ........ $ 9.41 $ 10.50 $13.73 $13.02 $12.36 $10.70 ======= ======= ====== ====== ====== ====== Total investment return(1) ............ (9.22%) (12.87%) 9.45% 11.67% 16.86% (10.28%) ======= ======= ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .................... $4,366 $ 7,893 $3,746 $1,414 $1,637 $6,150 Ratio of expenses to average net assets with waivers and reimbursements ..................... 1.25% 1.25% 1.22% 1.22% 1.25% 1.19% Ratio of expenses to average net assets without waivers and reimbursements ..................... 1.67% 1.61% 1.53% 1.53% 1.55% 1.74% Ratio of net investment income to average net assets ................. 0.59% 0.37% 0.67% 0.70% 0.36% 0.68% Portfolio turnover rate ............... 49.95% 88.65% 105.71% 120.99% 156.16% 111.68% --------------- ** Calculated based on average shares outstanding for the period. (1) 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.
The accompanying notes are an integral part of the financial statements. 30 and 31 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
MID CAP VALUE FUND -- INSTITUTIONAL CLASS ---------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period . $ 9.69 $ 12.55 $ 11.66 $ 11.47 $ 9.48 $ 11.01 ------- ------- -------- -------- -------- ------- Net investment income/(loss) ......... 0.02** 0.00** 0.04** 0.06 0.02 0.01 Net realized and unrealized gain/(loss) on investments ........ (0.62)** (0.94)** 0.91** 0.29 1.98 (1.39) ------- ------- -------- -------- -------- ------- Net increase/(decrease) in net assets resulting from operations .. (0.60) (0.94) 0.95 0.35 2.00 (1.38) ------- ------- -------- -------- -------- ------- 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 ....... $ 9.09 $ 9.69 $ 12.55 $ 11.66 $ 11.47 $ 9.48 ======= ======= ======== ======== ======== ======= Total investment return(1) ........... (6.19%) (8.97%) 8.23% 3.21% 21.08% (12.73%) ======= ======= ======== ======== ======== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................... $50,897 $50,073 $116,605 $152,696 $173,224 $67,568 Ratio of expenses to average net assets with waivers and reimbursements .................... 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and reimbursements .................... 1.41% 1.33% 1.30% 1.24% 1.25% 1.57% Ratio of net investment income to average net assets ................ 0.46% 0.01% 0.29% 0.53% 0.17% 0.13% Portfolio turnover rate .............. 36.18% 99.23% 234.52% 206.65% 200.09% 167.86% MID CAP VALUE FUND -- INVESTOR CLASS -------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period . $ 9.58 $12.43 $11.55 $11.38 $ 9.42 $11.01 ------- ------ ------ ------ ------ ------ Net investment income/(loss) ......... 0.01** (0.02)** 0.01** 0.03 (0.01) 0.01 Net realized and unrealized gain/(loss) on investments ........ (0.60)** (0.94)** 0.91** 0.28 1.97 (1.38) ------- ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .. (0.59) (0.96) 0.92 0.31 1.96 (1.37) ------- ------ ------ ------ ------ ------ 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 ....... $ 8.99 $ 9.58 $12.43 $11.55 $11.38 $ 9.42 ======= ====== ====== ====== ====== ====== Total investment return(1) ........... (6.16%) (9.26%) 7.96% 2.90% 20.81% (12.77%) ======= ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ................... $ 2,419 $6,232 $1,787 $1,929 $2,762 $1,828 Ratio of expenses to average net assets with waivers and reimbursements .................... 1.25% 1.25% 1.22% 1.22% 1.25% 1.15% Ratio of expenses to average net assets without waivers and reimbursements .................... 1.66% 1.57% 1.40% 1.34% 1.50% 1.82% Ratio of net investment income to average net assets ................ 0.12% (0.18%) 0.07% 0.31% 0.01% (0.02%) Portfolio turnover rate .............. 36.18% 99.23% 234.52% 206.65% 200.09% 167.86% ------------------ ** Calculated based on average shares outstanding for the period. (1) 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.
The accompanying notes are an integral part of the financial statements. 32 and 33 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
SMALL CAP VALUE FUND II - INSTITUTIONAL CLASS -------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- -------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ... $ 15.71 $ 17.17 $ 11.39 $ 8.67 $ 7.62 $10.00 ------- ------- ------- ------ ------ ------ Net investment income/(loss) ........... (0.04)** (0.13)** (0.05)** (0.01) (0.01) (0.01) Net realized and unrealized gain/(loss) on investments ...................... (1.79)** (1.23)** 6.05** 2.73 1.06 (2.37) ------- ------- ------- ------ ------ ------ Net increase/(decrease) in net assets resulting from operations .... (1.83) (1.36) 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 0.11** 0.07** -- -- -- ------- ------- ------- ------ ------ ------ Net asset value, end of period ......... $ 13.90 $ 15.71 $ 17.17 $11.39 $ 8.67 $ 7.62 ======= ======= ======= ====== ====== ====== Total investment return(1)(3) .......... (11.50%) (7.39%) 54.57% 31.43% 13.78% (23.80%) ======= ======= ======= ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ..................... $52,017 $40,475 $21,547 $1,965 $1,309 $1,120 Ratio of expenses to average net assets with waivers and reimbursements ...................... 1.55% 1.55% 1.55% 1.55% 1.55% 1.55%(2) Ratio of expenses to average net assets without waivers and reimbursements ...................... 1.84% 1.71% 2.03% 14.23% 17.84% 17.63%(2) Ratio of net investment income to average net assets ............... (0.51%) (0.76%) (0.32%) (0.18%) (0.17%) (0.34%)(2) Portfolio turnover rate ................ 29.38% 119.30% 35.50% 161.75% 87.48% 11.97% SMALL CAP VALUE FUND II - INSTITUTIONAL CLASS -------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS YEAR YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED ENDED THROUGH FEBRUARY 28, 2003 AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, (UNAUDITED) 2002 2001 2000 1999 1998 ----------------- ---------- ---------- ---------- ---------- ------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period $ 15.61 $ 17.09 $ 11.36 $ 8.65 $ 7.63 $10.00 -------- -------- -------- ------- ------- ------ Net investment income/(loss) ........ (0.06)** (0.17)** (0.09)** (0.03) (0.02) (0.01) Net realized and unrealized gain/ (loss) on investments ............ (1.78)** (1.21)** 6.04** 2.74 1.04 (2.36) -------- -------- -------- ------- ------- ------ Net increase/(decrease) in net assets resulting from operations . (1.84) (1.38) 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 ..................... 0.02 0.11** 0.07** -- -- -- -------- -------- -------- ------- ------- ------ Net asset value, end of period ...... $ 13.79 $ 15.61 $ 17.09 $ 11.36 $ 8.65 $ 7.63 ======== ======== ======== ======= ======= ====== Total investment return(1)(3) ....... (11.64%) (7.54%) 54.27% 31.33% 13.37% (23.70%) ======== ======== ======== ======= ======= ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .................. $170,557 $253,838 $230,507 $ 382 $ 293 $ 129 Ratio of expenses to average net assets with waivers and reimbursements ................... 1.80% 1.79% 1.77% 1.77% 1.80% 1.80%(2) Ratio of expenses to average net assets without waivers and reimbursements ................... 2.09% 1.92% 2.13% 14.33% 18.09% 18.61%(2) Ratio of net investment income to average net assets ............ (0.74%) (1.00%) (0.54%) (0.40%) (0.42%) (0.66%)(2) Portfolio turnover rate ............. 29.38% 119.30% 35.50% 161.75% 87.48% 11.97% ------------------- * Commencement of operations. ** Calculated based on average shares outstanding for the period. (1) 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. (2) Annualized. (3) Redemption fees are reflected in total return calculations.
The accompanying notes are an integral part of the financial statements. 34 and 35 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
ALL-CAP VALUE FUND -------------------------------------------------------------------------- FOR THE FOR THE PERIOD FOR THE FOR THE PERIOD SIX MONTHS ENDED JULY 1, 2002* SIX MONTHS ENDED JULY 1, 2002* FEBRUARY 28, 2003 THROUGH FEBRUARY 28, 2003 THROUGH (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ----------------- --------------- ----------------- --------------- INSTITUTIONAL INSTITUTIONAL INVESTOR INVESTOR CLASS CLASS CLASS CLASS ----------------- --------------- ----------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........... $ 9.45 $10.00 $ 9.44 $10.00 ------ ------ ------ ------ Net investment income/(loss) ................... -- -- -- -- Net realized and unrealized gain/(loss) on investments .............................. (0.81) (0.55) (0.82) (0.56) ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ............ (0.81) (0.55) (0.82) (0.56) ------ ------ ------ ------ Dividends to shareholders from: Net investment income .......................... -- -- -- -- Net realized capital gains ..................... -- -- -- -- ------ ------ ------ ------ Total dividends and distributions to shareholders ............................. -- -- -- -- ------ ------ ------ ------ Redemption fees ................................ -- -- -- -- ------ ------ ------ ------ Net asset value, end of period ................. $ 8.64 $ 9.45 $ 8.62 $ 9.44 ====== ====== ====== ====== Total investment return(1) ..................... (8.30%) (5.50)% (8.51%) (5.60%) ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ...... $2,295 $1,810 $ 98 $ 84 Ratio of expenses to average net assets with waivers and reimbursements .................. 1.25% 1.25%(4) 1.50% 1.50%(2) Ratio of expenses to average net assets without waivers and reimbursements .......... 5.78% 14.54%(4) 6.03% 15.34%(2) Ratio of net investment income to average net assets ....................... 0.61% 0.16%(4) 0.39% (0.01%)(2) Portfolio turnover rate ........................ 22.98% 6.61%(4) 22.98% 6.61%(2) ---------------- * Commencement of operations. (1) 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. (2) Annualized.
The accompanying notes are an integral part of the financial statements. 36 [THIS PAGE INTENTIONALLY LEFT BLANK] 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 - INSTITUTIONAL CLASS ------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2003 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 ---------------- --------------- --------------- --------------- ------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .... $ 15.17 $ 15.88 $ 10.57 $ 9.46 $10.00 ------- ------- ------- ------ ------ Net investment income/(loss) ............ (0.13) 0.05** 0.07** 0.13 0.12 Net realized and unrealized gain/(loss) on investments ....................... 0.08 (0.31)** 5.14** 1.12 (0.66) ------- ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations ............ (0.05) (0.26) 5.21 1.25 (0.54) ------- ------- ------- ------ ------ Dividends to shareholders from: Net investment income ................... (0.04) (0.02) (0.13) (0.14) -- Net realized capital gains .............. (0.66) (0.50) -- -- -- ------- ------- ------- ------ ------ Total dividends and distributions to shareholders ......................... (0.70) (0.52) (0.13) (0.14) -- ------- ------- ------- ------ ------ Redemption fee .......................... 0.02 0.07** 0.23** -- -- ------- ------- ------- ------ ------ Net asset value, end of period .......... $ 14.44 $ 15.17 $ 15.88 $10.57 $ 9.46 ======= ======= ======= ====== ====== Total investment return(1)(3) ........... (0.24%) (1.17%) 51.85% 13.74% (5.40%) ======= ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $67,383 $65,951 $25,857 $1,080 $ 941 Ratio of expenses to average net assets with waivers and reimbursements (including dividend expense) ......... 3.12% 3.04% 3.22% 3.22% 2.91%(2) Ratio of expenses to average net assets with waivers and reimbursements (excluding dividend expense) ......... 2.50% 2.50% 2.50% 2.86% 2.50%(2) Ratio of expenses to average net assets without waivers and reimbursements (excluding dividend expense) ......... 2.84% 2.85% 4.25% 21.86% 26.36%(2) Ratio of expenses to average net assets without waivers and reimbursements (including dividend expense) ......... 3.46% 3.39% 4.97% 22.22% 26.77% Ratio of net investment income to average net assets ........................... (1.86%) 0.30% 0.46% 1.12% 1.57%(2) Portfolio turnover rate ................. 117.66% 219.52% 332.25% 363.34% 218.41%
BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONCLUDED)
LONG/SHORT EQUITY FUND - INVESTOR CLASS ------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD SIX MONTHS ENDED YEAR YEAR YEAR NOVEMBER 17, 1998* FEBRUARY 28, 2003 ENDED ENDED ENDED THROUGH (UNAUDITED) AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 ----------------- --------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .... $ 15.13 $ 15.87 $ 10.57 $ 9.43 $10.00 ------- ------- ------- ------ ------ Net investment income/(loss) ............ (0.15) 0.04** 0.03** 0.11 0.06 Net realized and unrealized gain/(loss) on investments ....................... 0.08 (0.33)** 5.18** 1.16 (0.63) ------- ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations ............ (0.07) (0.29) 5.21 1.27 (0.57) ------- ------- ------- ------ ------ Dividends to shareholders from: Net investment income ................... (0.02) (0.01) (0.11) (0.13) -- Net realized capital gains .............. (0.66) (0.50) -- -- -- ------- ------- ------- ------ ------ Total dividends and distributions to shareholders ......................... (0.68) (0.51) (0.11) (0.13) -- ------- ------- ------- ------ ------ Redemption fee .......................... 0.02 0.06** 0.20** -- -- ------- ------- ------- ------ ------ Net asset value, end of period .......... $ 14.40 $ 15.13 $ 15.87 $10.57 $ 9.43 ======= ======= ======= ====== ====== Total investment return(1)(3) ........... (0.42%) (1.44%) 51.51% 13.87% (5.70%) ======= ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) $42,607 $49,284 $11,244 $ 310 $ 231 Ratio of expenses to average net assets with waivers and reimbursements (including dividend expense) ......... 3.37% 3.29% 3.44% 3.44% 3.16%(2) Ratio of expenses to average net assets with waivers and reimbursements (excluding dividend expense) ......... 2.75% 2.75% 2.72% 3.08% 2.75%(2) Ratio of expenses to average net assets without waivers and reimbursements (excluding dividend expense) ......... 3.09% 3.06% 4.35% 21.96% 26.61%(2) Ratio of expenses to average net assets without waivers and reimbursements (including dividend expense) ......... 3.71% 3.60% 5.07% 22.32% 27.02% Ratio of net investment income to average net assets ........................... (2.10%) 0.27% 0.24% 0.90% 1.32%(2) Portfolio turnover rate ................. 117.66% 219.52% 332.25% 363.34% 218.41% ---------- * Commencement of operations. ** Calculated based on average shares outstanding for the period. (1) 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. (2) Annualized. (3) Redemption fees are reflected in total return calculations.
The accompanying notes are an integral part of the financial statements. 38 and 39 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. Each portfolio is treated as a separate entity for certain matters under the Investment Company Act, and for other purposes, and a shareholder of one portfolio is not deemed to be a shareholder of any other portfolio. Currently RBB has fourteen investment portfolios, including Boston Partners Large Cap Value Fund ("Large Cap Value Fund"), Boston Partners Mid Cap Value Fund ("Mid Cap Value Fund"), Boston Partners Small Cap Value Fund II ("Small Cap Value Fund II"), Boston Partners All-Cap Value Fund ("All-Cap Value Fund") 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 21.073 billion are currently classified into ninety-five classes of common stock. Each class represents an interest in an active or inactive RBB investment portfolio. The active classes have been grouped into seven separate "families," all of which have begun investment operations. 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 closing price or the last reported sale 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. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. REPURCHASE AGREEMENTS -- The Funds may agree 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 deposit additional collateral by the next day of business, 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 -- The Fund records security transactions based on 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 accrued when earned. Dividend income 40 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 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. 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. 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. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income and net realized capital gains, if any, are declared and paid at least annually to shareholders and recorded on ex-date. 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, 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. TAX STATUS -- No provision is made for U.S. 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. income and excise taxes. 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 borrowed security, it will maintain at all times cash, U.S. Government securities, or other liquid securities in an amount which, when added to any amount deposited with a broker as collateral will at least equal the current market value of the security sold short. Depending on arrangements made with brokers, a Fund may not receive any payments (including interest) on collateral deposited with them. FOREIGN CURRENCY TRANSLATION -- The books and records of the Portfolios are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated at the exchange rate prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included in the Statement of Operations. LINE OF CREDIT -- Each Portfolio may borrow an amount up to its prospectus-defined limitations, from a committed line of credit available to the Funds in the Boston Partners Fund Family. Borrowings from the line of credit will bear interest at the Federal Funds Rate. The Boston Partners Fund Family paid an annual initiation fee of $5,000. Each Fund is allocated a portion of this fee based on its net assets relative to the net assets of the Boston Partners Fund Family. The Funds had no outstanding borrowings at February 28, 2003 or at any time during the year or period ended February 28, 2003. 41 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Boston Partners Asset Management, L.P. serves as the Funds' investment adviser. For its advisory services, Boston Partners is entitled to receive 0.75% of the Large Cap Value Fund's average daily net assets, 0.80% of the Mid Cap Value Fund's average daily net assets, 1.25% of the Small Cap Value Fund II's average daily net assets, 1.00% of the All-Cap Value Fund'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 Value Fund and the Mid Cap Value Fund's total operating expenses to the extent that such expenses exceeded 1.00% and 1.25% of the Large Cap Value Fund and the Mid Cap Value Funds' average daily net assets for the Institutional and Investor Classes, respectively. The adviser has agreed to limit the Small Cap Value Fund II's total operating expenses to the extent that such expenses exceed 1.55% and 1.80% of the Small Cap Value Fund II's average daily net assets for the Institutional and Investor Classes, respectively. The adviser has agreed to limit the All-Cap Value Fund's total operating expenses to the extent that such expenses exceeded 1.25% and 1.50% of the All-Cap Value Fund's average daily net assets for the Institutional and Investor Classes, respectively. The adviser has agreed to limit the Long/Short Equity Fund's total operating expenses 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. This limitation is effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee as necessary. For the six months ended February 28, 2003, investment advisory fees, waivers and reimbursements of expenses were as follows:
GROSS NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT ---- ------------- ---------- ------------- ------------- Large Cap Value Fund $ 188,996 $ (69,923) $ 119,073 $ -- Mid Cap Value Fund 216,145 (73,687) 142,458 -- Small Cap Value Fund II 1,570,884 (179,749) 1,391,135 -- All-Cap Value Fund 11,642 (11,642) -- 60,731 Long/Short Equity Fund 1,207,897 (106,753) 1,101,144 --
The Funds will not pay Boston Partners at a later time for any amounts they may waive or any amounts which Boston Partners has assumed. PFPC Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide Inc., an indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc., serves as administrator for the Funds. For providing accounting and 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. PFPC, at its discretion, voluntarily agreed to waive a portion of its accounting and administrative services fees for the Funds. For the six months ended February 28, 2003, fees and waivers were as follows: GROSS ACCOUNTING NET ACCOUNTING AND ADMINISTRATIVE AND ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES ---- ----------------- --------- ------------------ Large Cap Value Fund $ 37,500 $ (2,500) $ 35,000 Mid Cap Value Fund 37,500 (2,500) 35,000 Small Cap Value Fund II 157,088 (15,709) 141,379 All-Cap Value Fund 37,500 (18,750) 18,750 Long/Short Equity Fund 67,105 (6,710) 60,395 42 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) In addition, PFPC serves as the Funds' transfer and disbursing agent. PFPC, at their discretion, voluntarily agreed to waive a portion of their transfer agency fees for the All-Cap Value Fund. For the six months ended February 28, 2003, PFPC's transfer agency fees and waivers were as follows: GROSS TRANSFER NET TRANSFER FUND AGENCY FEES WAIVERS AGENCY FEES ---- -------------- --------- ------------ All-Cap Value Fund $36,000 $(18,000) $18,000 PFPC Distributors, Inc., provides certain administrative services to 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 Funds' average daily net assets. PFPC Distributors, Inc., at its discretion, voluntarily agreed to waive a portion of its administrative services fees for the Funds. For the six months ended February 28, 2003, administrative services fees and waivers were as follows: GROSS ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES ---- -------------------- ---------- ------------------ Large Cap Value Fund $ 37,810 $ (32,769) $ 5,041 Mid Cap Value Fund 40,527 (35,124) 5,403 Small Cap Value Fund II 188,506 (163,372) 25,134 All-Cap Value Fund 1,746 (1,397) 349 Long/Short Equity Fund 80,526 (69,790) 10,736 PFPC Trust Co., a wholly owned subsidiary of PFPC Worldwide Inc., an indirect wholly-owned subsidiary of The PNC Financial Services Group, Inc., provides certain custodial services to the Funds. As compensation for such custodial services, PFPC Trust Co. is entitled to receive a monthly fee equal to an annual rate of 0.015% of the Funds' average daily gross assets. PFPC Trust Co. has, at its discretion, voluntarily agreed to waive a portion of its custodial fees for the All-Cap Value Fund. For the six months ended February 28, 3003, custodial fees and waivers were as follows: GROSS CUSTODIAL NET CUSTODIAL FUND FEES WAIVERS FEES ---- --------------- -------- ------------- All-Cap Value Fund $6,000 $(3,000) $3,000 3. INVESTMENT IN SECURITIES For the six months ended February 28, 2003, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: INVESTMENT SECURITIES ------------------------------- FUND PURCHASES SALES ---- ------------ ------------ Large Cap Value Fund $ 21,541,502 $ 23,333,753 Mid Cap Value Fund 23,704,461 19,288,222 Small Cap Value Fund II 71,550,023 99,710,288 All-Cap Value Fund 1,138,182 496,333 Long/Short Equity Fund* 118,285,562 116,579,576 ------------- * The Long/Short Equity Fund does not include purchases of $122,039,049 to cover short sales and does not include in sales, proceeds of $125,077,256 from sales of short securities. 43 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) 4. CAPITAL SHARE TRANSACTIONS As of February 28, 2003, 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, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------- ------------------------ ------------------------ INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------- ----------------------- ------------------------ SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ----------- --------- ----------- ---------- ----------- Sales ............ 784,934 $ 7,674,744 1,283,916 $15,322,244 89,938 $ 880,224 1,115,565 $13,942,691 Repurchases ...... (793,506) (7,873,404) (341,318) (4,087,870) (385,955) (3,715,103) (685,909) (8,593,260) Reinvestments .... 65,681 642,365 433,492 5,245,258 8,081 80,486 49,147 605,000 ------- ----------- --------- ----------- -------- ----------- --------- ----------- Net Increase / (Decrease) .... 57,109 $ 443,705 1,376,090 $16,479,632 (287,936) $(2,754,393) 478,803 $ 5,954,431 ======= =========== ========= =========== ======= =========== ========= ===========
MID CAP VALUE FUND --------------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------- ------------------------ ------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------- ----------------------- ------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ----------- --------- ------------- ---------- ----------- Sales ............ 1,241,280 $11,542,814 582,556 $ 7,006,160 20,291 $ 189,813 1,100,689 $12,048,299 Repurchases ...... (815,228) (7,533,308) (5,861,115) (68,878,769) (401,591) (3,563,549) (615,479) (6,598,787) Reinvestments .... 127 1,202 1,156,939 12,448,662 -- -- 21,328 227,574 --------- ----------- --------- ------------ ------- ----------- --------- ----------- Net Increase / (Decrease) .... 426,179 $ 4,010,708 (4,121,620) $(49,423,947) (381,300) $(3,373,736) 506,538 $ 5,677,086 ========= =========== ========== ============ ======== =========== ======= ===========
44 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, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------- -------------------------- --------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------- ------------------------- --------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ------------ ----------- ------------- ----------- ------------- Sales ............ 1,994,609 $29,474,935 3,033,259 $ 52,387,864 1,367,675 $ 20,085,874 19,694,143 $ 335,108,023 Repurchases ...... (829,424) (12,242,524) (1,737,491) (29,229,512) (5,267,175) (75,683,636) (17,135,130) (281,011,266) Redemption Fees ........ -- 49,629 -- 278,508 -- 263,532 -- 2,160,483 Reinvestments .... 810 12,113 25,072 433,751 3,757 55,758 219,187 3,772,212 --------- ----------- ---------- ------------ ---------- ------------ ----------- ------------- Net Increase / (Decrease) .... 1,165,995 $17,294,153 1,320,840 $ 23,870,611 (3,895,743) $(55,278,472) 2,778,200 $ 60,029,452 ========= =========== ========== ============ ========== ============ =========== ============= ALL-CAP VALUE FUND --------------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------- -------------------------- --------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------- ------------------------- --------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ------------ ----------- ------------- ----------- ------------- Sales ............ 76,932 $663,116 191,804 $1,912,736 2,421 $21,746 14,591 $129,506 Repurchases ...... (3,280) (30,032) (270) (2,468) (2) (20) (5,710) (51,619) Reinvestments .... 604 5,490 -- -- 20 181 -- -- ------ -------- ------- ---------- ----- ------- ------ -------- Net Increase ..... 74,256 $638,574 191,534 $1,910,268 2,439 $21,907 8,881 $ 77,887 ====== ======== ======= ========== ===== ======= ====== ======== LONG/SHORT EQUITY FUND --------------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE FOR THE SIX MONTHS ENDED FOR THE FEBRUARY 28, 2003 YEAR ENDED FEBRUARY 28, 2003 YEAR ENDED (UNAUDITED) AUGUST 31, 2002 (UNAUDITED) AUGUST 31, 2002 ------------------------ ------------------------- -------------------------- --------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------ ------------------------- ------------------------- --------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ----------- ---------- ------------ ----------- ------------- ----------- ------------- Sales ............ 1,069,676 $ 15,777,991 3,801,272 $ 59,876,593 209,779 $ 3,082,745 3,481,685 $ 54,398,970 Repurchases ...... (942,741) (13,926,747) (1,149,614) (17,812,016) (645,731) (9,483,765) (954,581) (14,880,977) Redemption Fees ........ -- 88,025 -- 229,813 -- 66,058 -- 135,613 Reinvestments .... 193,425 2,827,683 67,469 1,019,462 136,483 1,991,288 21,567 325,669 --------- ------------ ---------- ------------ -------- ----------- --------- ------------ Net Increase / (Decrease) .... 320,360 $ 4,766,952 2,719,127 $ 43,313,852 (299,469) $(4,343,674) 2,548,671 $ 39,979,275 ========= ============ ========== ============ ======== =========== ========= ============ ---------------------------- *Commencement of operations.
45 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED) There is a 1.00% redemption fee on shares redeemed which have been held 365 days or less on the Small Cap Fund II. There is a 2.00% redemption fee on shares redeemed which have been held 365 days or less on the Long/Short Equity Fund. The redemption fees are retained by the Fund for the benefit of the remaining shareholders and recorded as paid in capital. On February 28, 2003, one shareholder held approximately 21% of the All-Cap Value Fund Institutional Class, two shareholders held 88% of the All-Cap Value Fund Investor Class, one shareholder held approximately 9% of the Mid Cap Value Fund Institutional Class, and one shareholder held approximately 10% of the Small Cap Value Fund Institutional Class. 5. FEDERAL INCOME TAX INFORMATION At February 28, 2003, Federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund were as follows:
NET UNREALIZED FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/ FUND COST APPRECIATION DEPRECIATION DEPRECIATION ---- ------------ ------------ -------------- -------------- Large Cap Value Fund $ 52,235,616 $ 1,191,330 $ (6,889,633) $ (5,698,303) Mid Cap Value Fund 63,020,536 1,746,216 (6,734,610) (4,988,394) Small Cap Value Fund 257,726,662 10,058,014 (50,451,058) (40,393,044) All-Cap Value Fund 2,570,037 87,165 (269,706) (182,541) Long/Short Equity Fund 9,941,447 19,158,824 (18,817,054) 341,770
As of August 31, 2002, the components of distributable earnings on a tax basis were as follows: UNDISTRIBUTED UNDISTRIBUTED ORDINARY LONG-TERM FUND INCOME GAINS ---- ------------- ------------- Large Cap Value Fund $ 289,951 $436,278 Mid Cap Value Fund 1,596 -- Small Cap Value Fund -- 71,052 All-Cap Value Fund 476 -- Long/Short Equity Fund 4,901,696 -- At August 31, 2002, the Funds had capital loss carryforwards available to offset future capital gains through the indicated expiration dates: EXPIRING AUGUST 31, FUND 2009 2010 ---- ---------- ---------- Mid Cap Value Fund $-- $419,138 Under Federal tax law, foreign currency and capital losses realized after October 31 may be deferred and treated as having arisen on the first day of the following fiscal year. For the year ended August 31, 2002, the Large Cap Value Fund, Small Cap Value Fund, All-Cap Value Fund and Long/Short Equity Fund incurred post-October capital losses of $1,972,139, $1,252,149, $9,359 and $526,524, respectively. For the year ended August 31, 2002, the Long/Short Equity Fund incurred post-October currency losses of $451. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term and foreign currency gains are reported as ordinary income for federal tax purposes. 46 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONCLUDED) (UNAUDITED) The tax character of dividends and distributions paid during the last two fiscal years were as follows:
ORDINARY LONG-TERM FUND INCOME GAINS TOTAL ---- ----------- ---------- ----------- Large Cap Value Fund 2002 $ 3,666,759 $2,195,046 $ 5,861,805 2001 $ 1,715,208 $ -- $ 1,715,208 Mid Cap Value Fund 2002 $13,058,496 $ -- $13,058,496 2001 $805,596 $ -- $ 805,596 Small Cap Value Fund 2002 $ 4,099,661 $ 238,190 $ 4,337,851 2001 $ 114,896 $ -- $ 114,896 All-Cap Value Fund 2002 $ -- $ -- $ -- 2001 N/A N/A N/A Long/Short Equity Fund 2002 $ 1,290,287 $ 86,215 $ 1,376,502 2001 $ 17,296 $ -- $ 17,296
47 [THIS PAGE INTENTIONALLY LEFT BLANK] 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. 760 Moore Rd. King of Prussia, PA 19406 CUSTODIAN PFPC Trust Company 8800 Tinicum Blvd. Suite 200 Philadelphia, PA 19153 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Two Commerce Square, Suite 1700 2001 Market Street Philadelphia, PA 19103-7042 COUNSEL Drinker Biddle & Reath LLP One Logan Square 18th and Cherry Streets Philadelphia, PA 19103-6996 This report is submitted for the general information of the shareholders of each Fund. It is not authorized for the distribution to prospective investors in the Funds unless it is preceded or accompanied by a current prospectus which includes details regarding the Fund's objectives, policies and other information. Total investment return is based on historical results and is not intended to indicate future performance. The investment return and principal value of an investment in the Funds will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than original cost. [UNION BUG OMITTED]