-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GnOle5Z0Mu1vya2mI/AakW8lWYF3M/r29EQomHk1BKigrmDzo/iaqTRuXfw9sWWq 9Ks4om9+2Do9OlNFDa6uDA== 0000935069-03-001056.txt : 20030815 0000935069-03-001056.hdr.sgml : 20030815 20030815164754 ACCESSION NUMBER: 0000935069-03-001056 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030815 EFFECTIVENESS DATE: 20030815 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RS INVESTMENT TRUST CENTRAL INDEX KEY: 0000814232 IRS NUMBER: 946649069 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05159 FILM NUMBER: 03851154 BUSINESS ADDRESS: STREET 1: 555 CALIFORNIA ST STE 2600 CITY: SAN FRANCISCO STATE: CA ZIP: 94104 BUSINESS PHONE: 8007663863 MAIL ADDRESS: STREET 1: 555 CALIFORNIA ST. STREET 2: SUITE 2600 CITY: SAN FRANCISCO STATE: CA ZIP: 94104 FORMER COMPANY: FORMER CONFORMED NAME: ROBERTSON STEPHENS INVESTMENT TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ROBERTSON STEPHENS EMERGING GROWTH FD DATE OF NAME CHANGE: 19920315 FORMER COMPANY: FORMER CONFORMED NAME: ROBERTSON STEPHENS EMERGING GROWTH FUND DATE OF NAME CHANGE: 19920312 N-CSR 1 g9169.txt 2003 SEMI-ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05159 --------- Rs Investment Trust --------------------------------------------------------------- (Exact name of registrant as specified in charter) 388 Market Street San Francisco, CA 94111 --------------------------------------------------------------- (Address of principal executive offices) (Zip code) G. Randall Hecht c/o RS Investments 388 Market Street San Francisco, CA 94111 --------------------------------------------------------------- (Name and address of agent for service) registrant's telephone number, including area code: 800-766-3863 ------------ Date of fiscal year end: December 31, 2003 ----------------- Date of reporting period: June 30, 2003 -------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC OMITTED] RS INVESTMENTS 2003 SEMIANNUAL REPORT GROWTH RS DIVERSIFIED GROWTH FUND RS EMERGING GROWTH FUND THE INFORMATION AGE FUND(R) RS INTERNET AGE FUND(TM) RS MIDCAP OPPORTUNITIES FUND RS SMALLER COMPANY GROWTH FUND RS VALUE + GROWTH FUND VALUE THE CONTRARIAN FUND(TM) RS GLOBAL NATURAL RESOURCES FUND RS PARTNERS FUND (LOGO) RS INVESTMENTS [GRAPHIC OMITTED] RS FUNDS PHONE: 1-800-766-FUND (3863) WEB: WWW.RSINVESTMENTS.COM E-MAIL: FUNDS@RSINVESTMENTS.COM 24-HOUR ACCOUNT ACCESS PHONE: 1-800-624-8025 WEB: ENTER MY ACCOUNT ON THE RS INVESTMENTS WEB SITE - ----------------------------------- PERFORMANCE UPDATE As of 6/30/03 - -----------------------------------
Average 3-Year 5-Year 10-Year Annual Year-to- 1-Year Average Average Average Return Ticker Inception Date Total Annual Annual Annual Since RS GROWTH FUNDS Symbol Date Return Return Return Return Return Inception - -------------------------------------------------------------------------------------------------------------------------- RS Diversified Growth Fund RSDGX 8/1/96 22.10% 0.70% -18.06% 8.52% -- 14.75% - -------------------------------------------------------------------------------------------------------------------------- RS Emerging Growth Fund RSEGX 11/30/87 19.79% 0.31% -28.36% 3.20% 12.50% 15.90% - -------------------------------------------------------------------------------------------------------------------------- The Information Age Fund(R) RSIFX 11/15/95 47.02% 31.52% -29.44% 2.15% -- 6.90% - -------------------------------------------------------------------------------------------------------------------------- RS Internet Age Fund(TM) RIAFX 12/1/99 46.79% 32.60% -26.34% -- -- -18.53% - -------------------------------------------------------------------------------------------------------------------------- RS MidCap Opportunities Fund RSMOX 7/12/95 21.10% 9.00% -11.08% 3.06% -- 10.00% - -------------------------------------------------------------------------------------------------------------------------- RS Smaller Company Growth Fund RSSGX 8/15/96 22.13% -5.27% -11.94% 4.05% -- 9.62% - -------------------------------------------------------------------------------------------------------------------------- RS Value + Growth Fund RSVPX 5/12/92 19.48% 3.79% -17.05% -3.23% 9.87% 10.56% - -------------------------------------------------------------------------------------------------------------------------- RS VALUE FUNDS - -------------------------------------------------------------------------------------------------------------------------- The Contrarian Fund(TM) RSCOX 6/30/93 24.95% 17.40% 6.28% 5.62% 3.54% 3.54% - -------------------------------------------------------------------------------------------------------------------------- RS Global Natural Resources Fund RSNRX 11/15/95 14.78% 11.65% 14.59% 7.78% -- 6.49% - -------------------------------------------------------------------------------------------------------------------------- RS Partners Fund RSPFX 7/12/95 28.17% 21.11% 22.13% 8.96% -- 12.91% - --------------------------------------------------------------------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE, AND PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Rating and performance information is subject to change. Please contact RS Investments at 1-800-766-FUND or visit www.RSinvestments.com for current information. This information may be used only when preceded or accompanied by a prospectus. Refer to it for more information including management fees and expenses associated with an ongoing investment as well as the special risks associated with investing in small and mid-sized companies; overweighting investments in certain sectors or industries; investing in the technology sector; investing in a more limited number of issuers and sectors; investing internationally; and investing in companies in natural resources industries. Please read it carefully before investing. Except as noted, numbers are unaudited. TABLE OF CONTENTS FINANCIAL INFORMATION SCHEDULES OF INVESTMENTS ..................... 4 STATEMENT OF ASSETS AND LIABILITIES ..........26 STATEMENT OF OPERATIONS ......................28 STATEMENT OF CHANGES IN NET ASSETS ...........30 FINANCIAL HIGHLIGHTS .........................34 NOTES TO FINANCIAL STATEMENTS ................38 SUPPLEMENTAL INFORMATION .....................46 ADMINISTRATION ..................................48 This page left blank intentionally. FINANCIAL INFORMATION - -------------------------------------------------------------------------------- PERIOD ENDED JUNE 30, 2003 SCHEDULE OF INVESTMENTS - RS DIVERSIFIED GROWTH FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 93.0% AIR TRANSPORTATION -- 2.2% AirTran Holdings, Inc. 425,000 $ 4,449,750 AMR Corporation 538,500 5,923,500 Atlantic Coast Airlines Holdings, Inc. 450,000 6,070,500 - ------------------------------------------------------------------------------- 16,443,750 BEVERAGE - DISTILLERS -- 0.3% Todhunter International, Inc. 180,000 1,824,300 - ------------------------------------------------------------------------------- 1,824,300 BIOTECHNOLOGY RESEARCH & PRODUCTION -- 3.3% Allos Therapeutics, Inc. 200,000 602,000 Angiotech Pharmaceuticals, Inc. 115,000 4,685,100 Martek Biosciences Corporation 115,000 4,938,100 Regeneration Technologies, Inc. 600,000 7,974,000 Telik, Inc. 380,000 6,106,600 - ------------------------------------------------------------------------------- 24,305,800 BUILDING MATERIALS -- 0.8% Simpson Manufacturing Company, Inc. 160,000 5,856,000 - ------------------------------------------------------------------------------- 5,856,000 CABLE TELEVISION SERVICES -- 0.6% TiVo, Inc. 350,000 4,263,000 - ------------------------------------------------------------------------------- 4,263,000 CASINOS & GAMBLING -- 2.2% Aztar Corporation 250,000 4,027,500 Boyd Gaming Corporation 325,000 5,609,500 Station Casinos, Inc. 240,000 6,060,000 - ------------------------------------------------------------------------------- 15,697,000 COMMERCIAL INFORMATION SERVICES -- 0.6% Ask Jeeves, Inc. 300,000 4,125,000 - ------------------------------------------------------------------------------- 4,125,000 COMMUNICATIONS TECHNOLOGY -- 4.5% Corvis Corporation 1,550,000 2,325,000 Extreme Networks, Inc. 625,000 3,312,500 Secure Computing Corporation 1,627,400 14,207,202 Symbol Technologies, Inc. 1 423,950 5,515,589 Ulticom, Inc. 238,200 2,262,900 Verisity, Ltd. 425,000 5,074,500 - ------------------------------------------------------------------------------- 32,697,691 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 13.7% Altiris, Inc. 241,000 4,832,050 Cognizant Technology Solutions Corporation 175,000 4,263,000 Digimarc Corporation 419,500 6,586,150 iManage, Inc. 3,154,950 15,774,750 Legato Systems, Inc. 450,000 3,775,500 MicroStrategy, Inc., Class A 135,000 4,918,050 PEC Solutions, Inc. 300,000 4,830,000 RealNetworks, Inc. 650,000 4,407,000 Roxio, Inc. 1,125,000 7,526,250 Scansoft, Inc. 750,000 4,072,500 Sigma Designs, Inc. 625,000 6,787,500 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMPUTER SERVICES, SOFTWARE & SYSTEMS (Continued) SRA International, Inc., Class A 151,200 $ 4,838,400 SupportSoft, Inc. 3,745,600 24,308,944 Viewpoint Corporation 2,929,800 3,310,674 - ------------------------------------------------------------------------------- 100,230,768 COMPUTER TECHNOLOGY -- 0.5% McDATA Corporation, Class B 250,000 3,625,000 - ------------------------------------------------------------------------------- 3,625,000 CONSTRUCTION -- 0.5% Chicago Bridge & Iron Company N. V. 1 175,000 3,969,000 - ------------------------------------------------------------------------------- 3,969,000 CONSUMER ELECTRONICS -- 2.4% CNET Networks, Inc. 1,000,000 6,230,000 DoubleClick, Inc. 400,000 3,700,000 NetFlix, Inc. 285,700 7,299,635 - ------------------------------------------------------------------------------- 17,229,635 DRUGS & PHARMACEUTICALS -- 3.7% Able Laboratories, Inc. 250,000 4,950,000 Aphton Corporation 403,400 3,324,016 Ligand Pharmaceuticals, Inc., Class B 350,000 4,756,500 Nektar Therapeutics 475,000 4,384,250 Novavax, Inc. 789,900 4,399,743 Shire Pharmaceuticals Group PLC, ADR 3 275,000 5,417,500 - ------------------------------------------------------------------------------- 27,232,009 EDUCATION SERVICES -- 2.7% Career Education Corporation 80,100 5,480,442 Corinthian Colleges, Inc. 100,000 4,857,000 Education Management Corporation 140,000 7,445,200 SkillSoft PLC, ADR 3 350,000 1,767,500 - ------------------------------------------------------------------------------- 19,550,142 ELECTRONICS -- 0.5% HEI, Inc. 1,203,500 3,622,535 - ------------------------------------------------------------------------------- 3,622,535 ELECTRONICS -- MEDICAL SYSTEMS -- 0.4% EPIX Medical, Inc. 200,000 2,830,000 - ------------------------------------------------------------------------------- 2,830,000 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 4.1% Agere Systems, Inc., Class A 1,514,500 3,528,785 Marvell Technology Group, Ltd. 225,000 7,733,250 Microsemi Corporation 400,000 6,400,000 Monolithic System Technology, Inc. 775,000 7,021,500 TriQuint Semiconductor, Inc. 1,250,000 5,200,000 - ------------------------------------------------------------------------------- 29,883,535 ENTERTAINMENT -- 1.4% Alliance Gaming Corporation 300,000 5,673,000 Hollywood Entertainment Corporation 250,000 4,300,000 - ------------------------------------------------------------------------------- 9,973,000 FINANCE -- SMALL LOANS -- 0.7% AmeriCredit Corporation 600,000 5,130,000 - ------------------------------------------------------------------------------- 5,130,000 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 4 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- FINANCIAL -- MISCELLANEOUS -- 0.7% Metris Companies, Inc. 1 975,000 $ 5,411,250 - ------------------------------------------------------------------------------- 5,411,250 FINANCIAL INFORMATION SERVICES -- 0.3% TheStreet.com, Inc. 500,000 2,350,000 - ------------------------------------------------------------------------------- 2,350,000 HEALTH CARE FACILITIES -- 0.6% United Surgical Partners International, Inc. 200,000 4,518,000 - ------------------------------------------------------------------------------- 4,518,000 HEALTH CARE MANAGEMENT SERVICES -- 2.6% Centene Corporation 120,000 4,668,000 IMPAC Medical Systems, Inc. 140,000 2,923,200 Omnicell, Inc. 250,000 2,560,000 Sierra Health Services, Inc. 249,800 4,996,000 WebMD Corporation 385,000 4,169,550 - ------------------------------------------------------------------------------- 19,316,750 HEALTH CARE SERVICES -- 0.6% Odyssey Healthcare, Inc. 125,000 4,625,000 - ------------------------------------------------------------------------------- 4,625,000 INSURANCE -- LIFE -- 0.9% Scottish Annuity & Life Holdings, Ltd. 1 325,000 6,568,250 - ------------------------------------------------------------------------------- 6,568,250 INSURANCE -- PROPERTY & CASUALTY -- 1.9% Endurance Specialty Holdings, Limited 1 167,650 5,004,352 ProAssurance Corporation 125,000 3,373,750 W.R. Berkley Corporation 1 110,000 5,797,000 - ------------------------------------------------------------------------------- 14,175,102 LEISURE TIME -- 1.4% Penn National Gaming, Inc. 375,000 7,706,250 Six Flags, Inc. 400,000 2,712,000 - ------------------------------------------------------------------------------- 10,418,250 MACHINERY -- OIL/WELL EQUIPMENT & SERVICES -- 2.3% Global Industries, Ltd. 457,600 2,205,632 Hanover Compressor Company 150,000 1,695,000 Key Energy Services, Inc. 500,000 5,360,000 Patterson-UTI Energy, Inc. 125,000 4,050,000 Smith International, Inc. 100,000 3,674,000 - ------------------------------------------------------------------------------- 16,984,632 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 1.3% Cyberonics, Inc. 250,000 5,377,500 INAMED Corporation 70,000 3,758,300 - ------------------------------------------------------------------------------- 9,135,800 MEDICAL SERVICES -- 0.6% VCA Antech, Inc. 221,800 4,340,626 - ------------------------------------------------------------------------------- 4,340,626 METAL FABRICATING -- 1.6% Maverick Tube Corporation 300,000 5,745,000 Quanex Corporation 1 210,000 6,241,200 - ------------------------------------------------------------------------------- 11,986,200 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- MULTI-SECTOR COMPANIES -- 0.5% Trinity Industries, Inc. 1 200,000 $ 3,702,000 - ------------------------------------------------------------------------------- 3,702,000 OIL -- CRUDE PRODUCERS -- 0.8% Ultra Petroleum Corporation 440,700 5,689,437 - ------------------------------------------------------------------------------- 5,689,437 PRODUCTION TECHNOLOGY EQUIPMENT -- 3.3% ATMI, Inc. 175,000 4,369,750 Axcelis Technologies, Inc. 350,000 2,142,000 FEI Company 250,000 4,690,000 LTX Corporation 400,000 3,448,000 Mykrolis Corporation 500,000 5,075,000 Ultratech, Inc. 225,000 4,160,250 - ------------------------------------------------------------------------------- 23,885,000 RADIO & TV BROADCASTERS -- 1.3% Radio One, Inc., Class A 300,000 5,358,000 XM Satellite Radio Holdings, Inc., Class A 400,000 4,420,000 - ------------------------------------------------------------------------------- 9,778,000 REAL ESTATE INVESTMENT TRUSTS -- 1.6% American Financial Realty Trust 1 480,300 7,161,273 Novastar Financial, Inc. 1 80,600 4,815,850 - ------------------------------------------------------------------------------- 11,977,123 RESTAURANTS -- 1.4% CBRL Group, Inc. 1 150,000 5,829,000 Total Entertainment Restaurant Corporation 490,000 4,483,500 - ------------------------------------------------------------------------------- 10,312,500 RETAIL -- 3.4% Circuit City Stores, Inc. 1 750,000 6,600,000 Group 1 Automotive, Inc. 150,000 4,861,500 J. Jill Group, Inc. 350,000 5,894,000 PriceSmart, Inc. 164,500 2,182,915 Sonic Automotive, Inc. 250,000 5,477,500 - ------------------------------------------------------------------------------- 25,015,915 SAVINGS & LOAN -- 1.4% First Niagara Financial Group, Inc. 1 298,681 4,169,587 NetBank, Inc. 1 450,000 5,922,000 - ------------------------------------------------------------------------------- 10,091,587 SECURITIES BROKERAGE & SERVICES -- 2.6% Ameritrade Holding Corporation 700,000 5,187,000 E*TRADE Group, Inc. 800,000 6,800,000 Friedman, Billings, Ramsey Group, Inc., Class A 1 500,000 6,700,000 - ------------------------------------------------------------------------------- 18,687,000 SERVICES -- COMMERCIAL -- 4.3% Administaff, Inc. 810,000 8,343,000 Exult, Inc. 385,000 3,299,450 Overture Services, Inc. 485,000 8,793,050 Raindance Communications, Inc. 2,284,800 5,689,152 RMH Teleservices, Inc. 1,307,150 5,659,960 - ------------------------------------------------------------------------------- 31,784,612 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 5 SCHEDULE OF INVESTMENTS - RS DIVERSIFIED GROWTH FUND (Continued) June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- SHIPPING -- 0.5% UTI Worldwide, Inc. 1 125,000 $ 3,898,750 - ------------------------------------------------------------------------------- 3,898,750 STEEL -- 0.5% Oregon Steel Mills, Inc. 1,313,500 3,809,150 - ------------------------------------------------------------------------------- 3,809,150 TEXTILES -- APPAREL MANUFACTURES -- 0.5% The Warnaco Group, Inc. 274,400 3,690,680 - ------------------------------------------------------------------------------- 3,690,680 TOYS -- 2.2% Leapfrog Enterprises, Inc. 225,000 7,157,250 Marvel Enterprises, Inc. 450,000 8,595,000 - ------------------------------------------------------------------------------- 15,752,250 TRANSPORTATION -- MISCELLANEOUS -- 0.8% Pacer International, Inc. 273,800 5,163,868 Velocity Express Corporation 584,700 511,028 - ------------------------------------------------------------------------------- 5,674,896 TRUCKERS -- 2.1% Heartland Express, Inc. 173,900 3,869,275 Landstar System, Inc. 185,000 11,627,250 - ------------------------------------------------------------------------------- 15,496,525 UNCLASSIFIED -- 0.5% Financial Select Sector SPDR Fund 1 145,000 3,559,750 - ------------------------------------------------------------------------------- 3,559,750 UTILITIES -- CABLE TV & RADIO -- 0.7% Mediacom Communications Corporation 525,000 5,181,750 - ------------------------------------------------------------------------------- 5,181,750 UTILITIES -- GAS DISTRIBUTION -- 0.7% Western Gas Resources, Inc. 1 130,000 5,148,000 - ------------------------------------------------------------------------------- 5,148,000 UTILITIES -- GAS PIPELINES -- 0.6% The Williams Companies, Inc. 1 575,000 4,542,500 - ------------------------------------------------------------------------------- 4,542,500 UTILITIES -- TELECOMMUNICATIONS -- 3.4% Nextel Partners, Inc., Class A 1,110,000 8,103,000 Primus Telecommunications Group, Inc. 1,000,000 5,140,000 Sprint Corporation (PCS Group) 1,370,000 7,877,500 Startec Global Communications Corporation, Private Placement 4,5 275,000 0 Time Warner Telecom, Inc., Class A 600,000 3,822,000 - ------------------------------------------------------------------------------- 24,942,500 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $550,912,885) 680,937,950 - ------------------------------------------------------------------------------- CONVERTIBLE PREFERRED STOCKS -- 0.2% MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 0.2% Molecular Diagnostics, Inc. 4 730,000 1,277,500 - ------------------------------------------------------------------------------- 1,277,500 - ------------------------------------------------------------------------------- TOTAL CONVERTIBLE PREFERRED STOCKS (Cost $2,190,000) 1,277,500 June 30, 2003 (unaudited) Par Value - ------------------------------------------------------------------------------- CORPORATE BONDS -- 1.9% CABLE TELEVISION SERVICES -- 1.0% Charter Communications, Inc., 5.75%, Due 10/15/05 1 $10,000,000 $ 7,000,000 - ------------------------------------------------------------------------------- 7,000,000 ENERGY -- MISCELLANEOUS -- 0.6% Calpine Corporation, 4.00%, Due 12/26/06 1 5,000,000 4,525,000 - ------------------------------------------------------------------------------- 4,525,000 PRODUCTION TECHNOLOGY EQUIPMENT -- 0.3% Kulicke & Soffa Industries, Inc., 5.25%, Due 08/15/06 1 3,000,000 2,475,000 - ------------------------------------------------------------------------------- 2,475,000 - ------------------------------------------------------------------------------- TOTAL CORPORATE BONDS (Cost $9,262,085) 14,000,000 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 16.4% Short-Term Investments Held as Collateral for Loaned Securities 8 103,145,400 Temporary Investment Cash Fund 8,251,980 Temporary Investment Fund 8,251,981 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $119,649,361) 119,649,361 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 111.5% (Cost $682,014,331) 815,864,811 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (14.1%) (103,145,400) - ------------------------------------------------------------------------------- OTHER ASSETS, NET -- 2.6% 18,902,411 - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $ 731,621,822 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 6 | CALL 1-800-766-FUND SCHEDULE OF INVESTMENTS - RS EMERGING GROWTH FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 93.3% AEROSPACE -- 0.9% MTC Technologies, Inc. 546,200 $ 12,813,852 - ------------------------------------------------------------------------------- 12,813,852 AIR TRANSPORTATION -- 1.1% JetBlue Airways Corporation 356,400 15,072,156 - ------------------------------------------------------------------------------- 15,072,156 BANKS -- OUTSIDE NEW YORK CITY -- 1.4% Boston Private Financial Holdings, Inc. 1 301,250 6,350,350 UCBH Holdings, Inc. 1 477,800 13,703,304 - ------------------------------------------------------------------------------- 20,053,654 BEVERAGE -- SOFT DRINKS -- 0.2% Peet's Coffee & Tea, Inc. 139,600 2,437,416 - ------------------------------------------------------------------------------- 2,437,416 BIOTECHNOLOGY RESEARCH & PRODUCTION -- 6.3% Angiotech Pharmaceuticals, Inc. 282,800 11,521,272 Celgene Corporation 100,000 3,040,000 Exact Sciences Corporation 295,000 3,233,200 Integra LifeSciences Holdings Corporation 400,100 10,554,638 Martek Biosciences Corporation 405,450 17,410,023 Neurocrine Biosciences, Inc. 306,600 15,311,604 NPS Pharmaceuticals, Inc. 235,400 5,729,636 OSI Pharmaceuticals, Inc. 100,000 3,221,000 Regeneration Technologies, Inc. 288,700 3,836,823 Telik, Inc. 872,600 14,022,682 XOMA, Ltd. 97,200 518,076 - ------------------------------------------------------------------------------- 88,398,954 CASINOS & GAMBLING -- 0.7% Station Casinos, Inc. 393,200 9,928,300 - ------------------------------------------------------------------------------- 9,928,300 CHEMICALS -- 0.6% Wilson Greatbatch Technologies, Inc. 216,200 7,804,820 - ------------------------------------------------------------------------------- 7,804,820 COMMERCIAL INFORMATION SERVICES -- 0.8% Ask Jeeves, Inc. 781,300 10,742,875 - ------------------------------------------------------------------------------- 10,742,875 COMMUNICATIONS & MEDIA -- 1.0% AOL Time Warner, Inc. 400,000 6,436,000 Entravision Communications Corporation, Class A 732,600 8,315,010 - ------------------------------------------------------------------------------- 14,751,010 COMMUNICATIONS TECHNOLOGY -- 4.2% Avocent Corporation 272,300 8,149,939 CIENA Corporation 1,095,000 5,683,050 Comverse Technology, Inc. 302,400 4,545,072 Ixia 475,200 3,055,536 Packeteer, Inc. 751,200 11,696,184 Research In Motion Limited 500,000 10,805,000 UTStarcom, Inc. 295,600 10,514,492 Verisity, Ltd. 100,000 1,194,000 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMUNICATIONS TECHNOLOGY (Continued) WebEx Communications, Inc. 300,000 $ 4,185,000 - ------------------------------------------------------------------------------- 59,828,273 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 11.6% Agile Software Corporation 577,900 5,576,735 Altiris, Inc. 701,200 14,059,060 Anteon International Corporation 460,100 12,841,391 Ariba, Inc. 1,482,900 4,404,213 Business Objects S.A., ADR 3 554,900 12,180,055 Check Point Software Technologies, Ltd. 690,000 13,489,500 Cognizant Technology Solutions Corporation 749,400 18,255,384 Cognos, Inc. 316,300 8,540,100 Documentum, Inc. 401,050 7,888,653 Kana Software, Inc. 263,200 797,496 Mercury Interactive Corporation 48,000 1,853,280 Merge Technologies, Inc. 334,300 4,362,615 Micromuse, Inc. 300,000 2,397,000 MicroStrategy, Inc., Class A 316,150 11,517,345 NetScreen Technologies, Inc. 402,300 9,071,865 Pinnacle Systems, Inc. 635,700 6,801,990 Quest Software, Inc. 798,000 9,496,200 RealNetworks, Inc. 700,000 4,746,000 Retek, Inc. 1,452,200 9,294,080 SRA International, Inc., Class A 163,700 5,238,400 webMethods, Inc. 77,400 629,262 - ------------------------------------------------------------------------------- 163,440,624 COMPUTER TECHNOLOGY -- 1.9% Emulex Corporation 323,900 7,375,203 M-Systems Flash Disk Pioneers, Ltd. 1,685,000 18,754,050 - ------------------------------------------------------------------------------- 26,129,253 CONSUMER ELECTRONICS -- 3.4% CNET Networks, Inc. 1,149,300 7,160,139 DoubleClick, Inc. 698,000 6,456,500 InfoSpace, Inc. 657,800 8,926,346 VeriSign, Inc. 591,600 8,181,828 Yahoo! Inc. 529,700 17,352,972 - ------------------------------------------------------------------------------- 48,077,785 DRUGS & PHARMACEUTICALS -- 5.4% Andrx Group 406,050 8,080,395 AtheroGenics, Inc. 497,350 7,425,435 Barr Laboratories, Inc. 143,650 9,409,075 CIMA Labs, Inc. 435,300 11,705,217 Esperion Therapeutics, Inc. 100,000 1,959,000 K-V Pharmaceutical Company, Class A 343,500 9,549,300 Ligand Pharmaceuticals, Inc., Class B 499,500 6,788,205 Pharmaceutical Resources, Inc. 100,000 4,866,000 Priority Healthcare Corporation, Class B 151,750 2,814,963 Taro Pharmaceutical Industries, Ltd. 201,200 11,041,856 The Medicines Company 125,800 2,477,002 - ------------------------------------------------------------------------------- 76,116,448 - ------------------------------------------------------------------------------- See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 7 SCHEDULE OF INVESTMENTS - RS EMERGING GROWTH FUND (Continued) June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- EDUCATION SERVICES -- 2.8% Bright Horizons Family Solutions, Inc. 272,400 $ 9,141,744 Career Education Corporation 240,100 16,427,642 University of Phoenix Online 281,100 14,251,770 - ------------------------------------------------------------------------------- 39,821,156 ELECTRICAL & ELECTRONICS -- 0.9% Power Integrations, Inc. 500,400 12,169,728 - ------------------------------------------------------------------------------- 12,169,728 ELECTRONICS -- MEDICAL SYSTEMS -- 0.7% eResearch Technology, Inc. 429,400 9,515,504 - ------------------------------------------------------------------------------- 9,515,504 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 10.3% ASM International N.V 735,800 10,941,346 Cree, Inc. 483,900 7,877,892 DSP Group, Inc. 545,800 11,751,074 Exar Corporation 443,400 7,019,022 FormFactor, Inc. 23,050 407,985 GlobespanVirata, Inc. 928,300 7,658,475 Integrated Circuit Systems, Inc. 299,600 9,416,428 Integrated Device Technology, Inc. 328,000 3,624,400 Intersil Corporation, Class A 567,400 15,098,514 Marvell Technology Group, Ltd. 530,900 18,247,033 O2Micro International, Ltd. 2,405,603 38,754,264 OmniVision Technologies, Inc. 286,400 8,935,680 Silicon Laboratories, Inc. 100,000 2,664,000 Virage Logic Corporation 319,100 2,310,284 - ------------------------------------------------------------------------------- 144,706,397 FINANCIAL -- MISCELLANEOUS -- 1.2% Financial Federal Corporation 234,000 5,709,600 LendingTree, Inc. 484,500 11,860,560 - ------------------------------------------------------------------------------- 17,570,160 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 3.2% Alliance Data Systems Corporation 200,000 4,680,000 CheckFree Corporation 664,000 18,485,760 Digital Insight Corporation 299,900 5,713,095 eSPEED, Inc., Class A 425,600 8,409,856 Global Payments, Inc. 1 210,300 7,465,650 - ------------------------------------------------------------------------------- 44,754,361 HEALTH CARE FACILITIES -- 3.7% Pharmaceutical Product Development, Inc. 427,300 12,276,329 Sunrise Senior Living, Inc. 787,400 17,622,012 United Surgical Partners International, Inc. 1,000,500 22,601,295 - ------------------------------------------------------------------------------- 52,499,636 HEALTH CARE MANAGEMENT SERVICES -- 1.9% AMERIGROUP Corporation 300,700 11,186,040 Caremark Rx, Inc. 562,000 14,432,160 IMPAC Medical Systems, Inc. 30,300 632,664 - ------------------------------------------------------------------------------- 26,250,864 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- HEALTH CARE SERVICES -- 1.7% Accredo Health, Inc. 356,450 $ 7,770,610 Inveresk Research Group, Inc. 192,000 3,454,080 Odyssey Healthcare, Inc. 328,600 12,158,200 - ------------------------------------------------------------------------------- 23,382,890 HOTEL/MOTEL -- 0.6% Four Seasons Hotels, Inc. 1 207,700 8,985,102 - ------------------------------------------------------------------------------- 8,985,102 HOUSEHOLD FURNISHINGS -- 0.6% Kirkland's, Inc. 378,100 6,106,315 Select Comfort Corporation 182,050 2,981,979 - ------------------------------------------------------------------------------- 9,088,294 INVESTMENT MANAGEMENT COMPANIES -- 0.4% Federated Investors, Inc., Class B 1 215,400 5,906,268 - ------------------------------------------------------------------------------- 5,906,268 MACHINERY -- SPECIALTY -- 0.7% Applied Films Corporation 394,700 10,214,836 - ------------------------------------------------------------------------------- 10,214,836 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 2.2% Advanced Neuromodulation Systems, Inc. 180,000 9,318,600 Align Technology, Inc. 457,900 5,746,645 Biosite, Inc. 196,900 9,470,890 Osteotech, Inc. 456,900 6,209,271 - ------------------------------------------------------------------------------- 30,745,406 MEDICAL SERVICES -- 0.5% Covance, Inc. 400,000 7,240,000 - ------------------------------------------------------------------------------- 7,240,000 PRODUCTION TECHNOLOGY EQUIPMENT -- 2.5% August Technology Corporation 493,200 3,131,820 Cymer, Inc. 181,400 5,724,984 LTX Corporation 473,300 4,079,846 Photon Dynamics, Inc. 349,750 9,663,593 Rudolph Technologies, Inc. 330,100 5,268,396 Ultratech, Inc. 399,200 7,381,208 - ------------------------------------------------------------------------------- 35,249,847 RADIO & TV BROADCASTERS -- 2.6% Cox Radio, Inc., Class A 398,300 9,204,713 Entercom Communications Corporation 98,500 4,827,485 Gray Television, Inc. 1 550,500 6,826,200 Radio One, Inc. 867,800 15,420,806 - ------------------------------------------------------------------------------- 36,279,204 RESTAURANTS -- 0.1% Chicago Pizza & Brewery, Inc. 177,800 1,778,000 - ------------------------------------------------------------------------------- 1,778,000 RETAIL -- 4.8% Amazon.com, Inc. 250,800 9,151,692 Cost Plus, Inc. 602,600 21,488,716 Pacific Sunwear of California, Inc. 715,200 17,229,168 PETCO Animal Supplies, Inc. 146,400 3,182,736 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 8 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- RETAIL (Continued) Urban Outfitters, Inc. 456,700 $ 16,395,530 - ------------------------------------------------------------------------------- 67,447,842 SAVINGS & LOAN -- 0.9% NetBank, Inc. 1 919,500 12,100,620 - ------------------------------------------------------------------------------- 12,100,620 SECURITIES BROKERAGE & SERVICES -- 1.7% Ameritrade Holding Corporation 1,633,100 12,101,271 E*TRADE Group, Inc. 300,000 2,550,000 Legg Mason, Inc. 1 150,100 9,748,995 - ------------------------------------------------------------------------------- 24,400,266 SERVICES -- COMMERCIAL -- 6.1% CoStar Group, Inc. 277,700 8,292,122 FTI Consulting, Inc. 430,400 10,747,088 Kroll, Inc. 250,000 6,765,000 InterActiveCorp 372,003 14,720,159 Overture Services, Inc. 1,107,800 20,084,414 The Corporate Executive Board Company 356,400 14,444,892 West Corporation 401,800 10,707,970 - ------------------------------------------------------------------------------- 85,761,645 SHOES -- 0.5% K-Swiss, Inc., Class A 1 125,000 4,315,000 Kenneth Cole Productions, Inc., Class A 153,300 2,987,817 - ------------------------------------------------------------------------------- 7,302,817 TEXTILES -- APPAREL MANUFACTURES -- 1.4% Coach, Inc. 255,800 12,723,492 Quiksilver, Inc. 425,800 7,021,442 - ------------------------------------------------------------------------------- 19,744,934 TOYS -- 0.7% Leapfrog Enterprises, Inc. 299,800 9,536,638 - ------------------------------------------------------------------------------- 9,536,638 TRUCKERS -- 1.1% Forward Air Corporation 614,900 15,600,013 - ------------------------------------------------------------------------------- 15,600,013 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $982,314,834) 1,313,647,848 Warrants Value - ------------------------------------------------------------------------------- WARRANTS -- 0.5% SERVICES -- COMMERCIAL -- 0.5% Expedia, Inc., Strike 26.00, Expires 02/04/09 6 130,612 7,123,578 - ------------------------------------------------------------------------------- 7,123,578 - ------------------------------------------------------------------------------- TOTAL WARRANTS (Cost $508,960) 7,123,578 June 30, 2003 (unaudited) Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 20.3% Short-Term Investments Held as Collateral for Loaned Securities 8 $ 246,496,520 Temporary Investment Cash Fund 19,485,989 Temporary Investment Fund 19,485,989 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $285,468,498) 285,468,498 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 114.1% (Cost $1,268,292,292) 1,606,239,924 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (17.5%) (246,496,520) - ------------------------------------------------------------------------------- OTHER ASSETS, NET -- 3.4% 47,943,640 - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $1,407,687,044 - ------------------------------------------------------------------------------- See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 9 SCHEDULE OF INVESTMENTS - THE INFORMATION AGE FUND(R) June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 92.5% CABLE TELEVISION SERVICES -- 0.7% TiVo, Inc. 80,000 $ 974,400 - ------------------------------------------------------------------------------- 974,400 COMMERCIAL INFORMATION SERVICES -- 1.4% Ask Jeeves, Inc. 140,000 1,925,000 - ------------------------------------------------------------------------------- 1,925,000 COMMUNICATIONS TECHNOLOGY -- 8.7% CIENA Corporation 272,600 1,414,794 Finisar Corporation 563,200 872,960 Nuance Communications, Inc. 407,300 2,199,420 Packeteer, Inc. 39,200 610,344 Research In Motion Limited 47,100 1,017,831 Sonus Networks, Inc. 94,100 473,323 Stratex Networks, Inc. 507,000 1,622,400 UTStarcom, Inc. 45,100 1,604,207 Verisity, Ltd. 64,000 764,160 WebEx Communications, Inc. 114,400 1,595,880 - ------------------------------------------------------------------------------- 12,175,319 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 30.7% ActivCard Corporation 76,800 721,920 Altiris, Inc. 312,400 6,263,620 Ariba, Inc. 628,100 1,865,457 Business Objects S.A., ADR 3 49,700 1,090,915 Check Point Software Technologies, Ltd. 66,400 1,298,120 Chordiant Software, Inc. 537,900 1,000,494 Cognizant Technology Solutions Corporation 123,100 2,998,716 Cognos, Inc. 69,900 1,887,300 Digitas, Inc. 140,300 695,888 Documentum, Inc. 35,100 690,417 Kana Software, Inc. 881,600 2,671,248 Micromuse, Inc. 172,800 1,380,672 MicroStrategy, Inc., Class A 41,600 1,515,488 NetScreen Technologies, Inc. 141,600 3,193,080 Opsware, Inc. 45,500 182,910 Quest Software, Inc. 54,200 644,980 RADWARE, Ltd. 120,500 2,064,165 RealNetworks, Inc. 139,000 942,420 Retek, Inc. 622,100 3,981,440 SRA International, Inc., Class A 14,100 451,200 Symantec Corporation 38,000 1,666,680 Verity, Inc. 213,900 2,707,974 WatchGuard Technologies, Inc. 140,500 646,300 webMethods, Inc. 284,800 2,315,424 - ------------------------------------------------------------------------------- 42,876,828 COMPUTER TECHNOLOGY -- 5.0% Cray, Inc. 180,900 1,429,110 Emulex Corporation 26,500 603,405 M-Systems Flash Disk Pioneers, Ltd. 192,800 2,145,864 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMPUTER TECHNOLOGY (Continued) RSA Security, Inc. 31,800 $ 341,850 Trident Microsystems, Inc. 269,900 2,456,090 - ------------------------------------------------------------------------------- 6,976,319 CONSUMER ELECTRONICS -- 6.3% CNET Networks, Inc. 81,900 510,237 DoubleClick, Inc. 245,000 2,266,250 InfoSpace, Inc. 86,300 1,171,091 VeriSign, Inc. 109,400 1,513,002 Yahoo! Inc. 100,100 3,279,276 - ------------------------------------------------------------------------------- 8,739,856 EDUCATION SERVICES -- 1.8% University of Phoenix Online 49,600 2,514,720 - ------------------------------------------------------------------------------- 2,514,720 ELECTRICAL & ELECTRONICS -- 0.4% Power Integrations, Inc. 24,500 595,840 - ------------------------------------------------------------------------------- 595,840 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 14.5% Conexant Systems, Inc. 251,800 1,032,380 DSP Group, Inc. 60,400 1,300,412 Exar Corporation 55,900 884,897 Intersil Corporation, Class A 57,300 1,524,753 Marvell Technology Group, Ltd. 117,200 4,028,164 Mindspeed Technologies, Inc. 83,933 226,620 O2Micro International, Ltd. 306,700 4,940,937 Oak Technology, Inc. 219,200 1,361,232 OmniVision Technologies, Inc. 29,600 923,520 PLX Technology, Inc. 225,700 889,258 Virage Logic Corporation 155,600 1,126,544 Xicor, Inc. 328,100 2,057,187 - ------------------------------------------------------------------------------- 20,295,904 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 1.7% Portal Software, Inc. 1,203,600 2,407,200 - ------------------------------------------------------------------------------- 2,407,200 FINANCIAL INFORMATION SERVICES -- 0.7% HomeStore, Inc. 513,700 909,249 - ------------------------------------------------------------------------------- 909,249 HEALTH CARE MANAGEMENT SERVICES -- 0.8% WebMD Corporation 104,000 1,126,320 - ------------------------------------------------------------------------------- 1,126,320 IDENTIFICATION CONTROL & FILTER DEVICES -- 0.8% Asyst Technologies, Inc. 159,300 1,065,717 - ------------------------------------------------------------------------------- 1,065,717 PRODUCTION TECHNOLOGY EQUIPMENT -- 2.9% LTX Corporation 72,800 627,536 Rudolph Technologies, Inc. 132,200 2,109,912 Ultratech, Inc. 74,400 1,375,656 - ------------------------------------------------------------------------------- 4,113,104 RETAIL -- 0.9% Amazon.com, Inc. 34,800 1,269,852 - ------------------------------------------------------------------------------- 1,269,852 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 10 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- SAVINGS & LOAN -- 0.3% NetBank, Inc. 1 27,600 $ 363,216 - ------------------------------------------------------------------------------- 363,216 SECURITIES BROKERAGE & SERVICES -- 1.8% Ameritrade Holding Corporation 345,700 2,561,637 - ------------------------------------------------------------------------------- 2,561,637 SERVICES -- COMMERCIAL -- 11.8% eBay Inc. 22,400 2,333,632 ebookers PLC, ADR 3 135,500 2,175,046 Expedia, Inc., Class A 19,900 1,519,962 Harris Interactive, Inc. 238,900 1,574,351 InterActiveCorp 104,441 4,132,730 Monster Worldwide, Inc. 95,700 1,888,161 Overture Services, Inc. 157,900 2,862,727 - ------------------------------------------------------------------------------- 16,486,609 UTILITIES -- TELECOMMUNICATIONS -- 1.3% Sprint Corporation (PCS Group) 313,100 1,800,325 - ------------------------------------------------------------------------------- 1,800,325 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $104,298,234) 129,177,415 Warrants Value - ------------------------------------------------------------------------------- WARRANTS -- 0.0% COMMUNICATIONS TECHNOLOGY -- 0.0% Novatel Wireless, Inc., Strike 18.00, Expires 12/20/05 4,6 33,247 8,897 - ------------------------------------------------------------------------------- 8,897 - ------------------------------------------------------------------------------- TOTAL WARRANTS (Cost $156,260) 8,897 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 12.1% Short-Term Investments Held as Collateral for Loaned Securities 8 4,063,400 Temporary Investment Cash Fund 6,424,499 Temporary Investment Fund 6,424,498 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $16,912,397) 16,912,397 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 104.6% (Cost $121,366,891) 146,098,709 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (2.9%) (4,063,400) - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (1.7)% (2,351,807) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $139,683,502 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 11 SCHEDULE OF INVESTMENTS - RS INTERNET AGE FUND(TM) June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 106.2% CABLE TELEVISION SERVICES -- 0.8% TiVo, Inc. 45,700 $ 556,626 - ------------------------------------------------------------------------------- 556,626 COMMERCIAL INFORMATION SERVICES -- 1.6% Ask Jeeves, Inc. 83,000 1,141,250 - ------------------------------------------------------------------------------- 1,141,250 COMMUNICATIONS TECHNOLOGY -- 9.7% CIENA Corporation 146,200 758,778 Finisar Corporation 312,500 484,375 Nuance Communications, Inc. 226,100 1,220,940 Packeteer, Inc. 14,900 231,993 Research In Motion Limited 27,300 589,953 Sonus Networks, Inc. 65,400 328,962 Stratex Networks, Inc. 291,200 931,840 UTStarcom, Inc. 26,000 924,820 Verisity, Ltd. 37,100 442,974 WebEx Communications, Inc. 65,900 919,305 - ------------------------------------------------------------------------------- 6,833,940 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 33.8% ActivCard Corporation 44,500 418,300 Altiris, Inc. 157,400 3,155,870 Ariba, Inc. 252,000 748,440 Business Objects S.A., ADR 3 27,600 605,820 Check Point Software Technologies, Ltd. 38,300 748,765 Chordiant Software, Inc. 310,400 577,344 Cognizant Technology Solutions Corporation 72,200 1,758,792 Cognos, Inc. 37,600 1,015,200 Digitas, Inc. 81,400 403,744 Documentum, Inc. 19,400 381,598 Kana Software, Inc. 488,800 1,481,064 Micromuse, Inc. 95,600 763,844 MicroStrategy, Inc., Class A 22,700 826,961 NetScreen Technologies, Inc. 82,100 1,851,355 Opsware, Inc. 26,300 105,726 Quest Software, Inc. 31,400 373,660 RADWARE, Ltd. 69,900 1,197,387 RealNetworks, Inc. 85,000 576,300 Retek, Inc. 356,400 2,280,960 SRA International, Inc., Class A 9,300 297,600 Symantec Corporation 22,000 964,920 Verity, Inc. 118,400 1,498,944 WatchGuard Technologies, Inc. 82,000 377,200 webMethods, Inc. 164,600 1,338,198 - ------------------------------------------------------------------------------- 23,747,992 COMPUTER TECHNOLOGY -- 5.4% Cray, Inc. 103,400 816,860 Emulex Corporation 15,200 346,104 M-Systems Flash Disk Pioneers, Ltd. 115,500 1,285,515 Trident Microsystems, Inc. 149,800 1,363,180 - ------------------------------------------------------------------------------- 3,811,659 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- CONSUMER ELECTRONICS -- 7.4% CNET Networks, Inc. 57,800 $ 360,094 DoubleClick, Inc. 141,800 1,311,650 InfoSpace, Inc. 56,500 766,705 VeriSign, Inc. 60,600 838,098 Yahoo! Inc. 57,900 1,896,804 - ------------------------------------------------------------------------------- 5,173,351 EDUCATION SERVICES -- 2.1% University of Phoenix Online 29,000 1,470,300 - ------------------------------------------------------------------------------- 1,470,300 ELECTRICAL & ELECTRONICS -- 0.6% Power Integrations, Inc. 16,900 411,008 - ------------------------------------------------------------------------------- 411,008 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 17.0% Conexant Systems, Inc. 145,300 595,730 DSP Group, Inc. 30,800 663,124 Exar Corporation 32,400 512,892 Intersil Corporation, Class A 31,700 843,537 Marvell Technology Group, Ltd. 66,900 2,299,353 Mindspeed Technologies, Inc. 48,433 130,770 O2Micro International, Ltd. 174,100 2,804,751 Oak Technology, Inc. 152,400 946,404 OmniVision Technologies, Inc. 17,200 536,640 PLX Technology, Inc. 160,800 633,552 Virage Logic Corporation 83,900 607,436 Xicor, Inc. 212,900 1,334,883 - ------------------------------------------------------------------------------- 11,909,072 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 2.0% Portal Software, Inc. 689,200 1,378,400 - ------------------------------------------------------------------------------- 1,378,400 FINANCIAL INFORMATION SERVICES -- 0.8% HomeStore, Inc. 299,400 529,938 - ------------------------------------------------------------------------------- 529,938 HEALTH CARE MANAGEMENT SERVICES -- 0.9% WebMD Corporation 57,700 624,891 - ------------------------------------------------------------------------------- 624,891 IDENTIFICATION CONTROL & FILTER DEVICES-- 0.9% Asyst Technologies, Inc. 92,400 618,156 - ------------------------------------------------------------------------------- 618,156 PRODUCTION TECHNOLOGY EQUIPMENT -- 3.3% LTX Corporation 42,200 363,764 Rudolph Technologies, Inc. 65,000 1,037,400 Ultratech, Inc. 51,300 948,537 - ------------------------------------------------------------------------------- 2,349,701 RETAIL -- 1.1% Amazon.com, Inc. 20,200 737,098 - ------------------------------------------------------------------------------- 737,098 SAVINGS & LOAN -- 0.6% NetBank, Inc. 1 33,600 442,176 - ------------------------------------------------------------------------------- 442,176 SECURITIES BROKERS & SERVICES -- 2.1% Ameritrade Holding Corporation 200,600 1,486,446 - ------------------------------------------------------------------------------- 1,486,446 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 12 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- SERVICES -- COMMERCIAL -- 14.9% eBay Inc. 15,100 $ 1,573,118 ebookers PLC, ADR 3 78,600 1,261,687 Expedia, Inc., Class A 14,200 1,084,596 Harris Interactive, Inc. 158,900 1,047,151 InterActiveCorp 73,657 2,914,608 Monster Worldwide, Inc. 54,500 1,075,285 Overture Services, Inc. 84,700 1,535,611 - ------------------------------------------------------------------------------- 10,492,056 UTILITIES -- TELECOMMUNICATIONS -- 1.2% Sprint Corporation (PCS Group) 150,000 862,500 - ------------------------------------------------------------------------------- 862,500 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $57,144,350) 74,576,560 Warrants Value - ------------------------------------------------------------------------------- WARRANTS -- 0.0% COMMUNICATIONS TECHNOLOGY -- 0.0% Novatel Wireless, Inc., Strike 18.00, Expires 12/20/05 4,6 18,701 5,004 - ------------------------------------------------------------------------------- 5,004 - ------------------------------------------------------------------------------- TOTAL WARRANTS (Cost $87,896) 5,004 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 9.4% Short-Term Investments Held as Collateral for Loaned Securities 8 6,610,800 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $6,610,800) 6,610,800 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 115.6% (Cost $63,843,046) 81,192,364 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (9.4%) (6,610,800) - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (6.2)% (4,357,971) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $70,223,593 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 13 SCHEDULE OF INVESTMENTS - RS MIDCAP OPPORTUNITIES FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 90.5% ADVERTISING AGENCIES -- 0.9% The Interpublic Group of Companies, Inc. 1 71,500 $ 956,670 - ------------------------------------------------------------------------------- 956,670 AIR TRANSPORTATION -- 2.1% Delta Air Lines, Inc. 1 97,100 1,425,428 Ryanair Holdings, PLC, ADR 3 18,500 830,650 - ------------------------------------------------------------------------------- 2,256,078 BANKS -- OUTSIDE NEW YORK CITY -- 0.7% Bank of Hawaii Corporation 1 22,000 729,300 - ------------------------------------------------------------------------------- 729,300 BIOTECHNOLOGY RESEARCH & PRODUCTION -- 0.8% Genzyme Corporation 21,800 911,240 - ------------------------------------------------------------------------------- 911,240 CABLE TELEVISION SERVICES -- 1.1% EchoStar Communications Corporation, Class A 34,300 1,187,466 - ------------------------------------------------------------------------------- 1,187,466 CASINOS & GAMBLING -- 2.2% International Game Technology 1 12,000 1,227,960 MGM Mirage, Inc. 36,000 1,230,480 - ------------------------------------------------------------------------------- 2,458,440 CHEMICALS -- 1.5% Air Products & Chemicals, Inc. 1 15,000 624,000 Lyondell Chemical Company 1 73,300 991,749 - ------------------------------------------------------------------------------- 1,615,749 COMMUNICATIONS TECHNOLOGY -- 7.0% Comverse Technology, Inc. 92,500 1,390,275 Foundry Networks, Inc. 74,600 1,074,240 Nortel Networks Corporation 273,100 737,370 Research In Motion Limited 47,100 1,017,831 Secure Computing Corporation 160,600 1,402,038 Symbol Technologies, Inc. 1 156,900 2,041,269 - ------------------------------------------------------------------------------- 7,663,023 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 5.0% Amdocs, Ltd. 51,400 1,233,600 Check Point Software Technologies, Ltd. 45,300 885,615 Cognos, Inc. 36,750 992,250 iManage, Inc. 100,700 503,500 NetScreen Technologies, Inc. 42,000 947,100 VERITAS Software Corporation 31,200 894,504 - ------------------------------------------------------------------------------- 5,456,569 COMPUTER TECHNOLOGY -- 0.9% McDATA Corporation, Class B 65,200 945,400 - ------------------------------------------------------------------------------- 945,400 CONSUMER ELECTRONICS -- 1.9% Harman International Industries, Inc. 1 11,500 910,110 VeriSign, Inc. 81,000 1,120,230 - ------------------------------------------------------------------------------- 2,030,340 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COPPER -- 1.1% Freeport-McMoRan Copper & Gold, Inc., Class B 1 50,000 $ 1,225,000 - ------------------------------------------------------------------------------- 1,225,000 COSMETICS -- 0.7% Avon Products, Inc. 1 12,000 746,400 - ------------------------------------------------------------------------------- 746,400 DRUGS & PHARMACEUTICALS -- 5.0% Allergan, Inc. 1 15,900 1,225,890 Gilead Sciences, Inc. 20,800 1,156,064 Pharmaceutical Resources, Inc. 25,200 1,226,232 Shire Pharmaceuticals Group PLC, ADR 3 47,500 935,750 Teva Pharmaceutical Industries, Ltd., ADR 1,3 16,700 950,731 - ------------------------------------------------------------------------------- 5,494,667 EDUCATION SERVICES -- 2.5% Career Education Corporation 12,000 821,040 Corinthian Colleges, Inc. 20,000 971,400 University of Phoenix Online 19,000 963,300 - ------------------------------------------------------------------------------- 2,755,740 ELECTRONICS -- MEDICAL SYSTEMS -- 0.7% Varian Medical Systems, Inc. 12,800 736,896 - ------------------------------------------------------------------------------- 736,896 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 5.1% Agere Systems, Inc., Class A 400,000 932,000 Infineon Technologies AG, ADR 1,3 84,500 810,355 Marvell Technology Group, Ltd. 50,000 1,718,500 Micron Technology, Inc. 108,100 1,257,203 PMC-Sierra, Inc. 74,200 870,366 - ------------------------------------------------------------------------------- 5,588,424 ENGINEERING & CONTRACTING SERVICES -- 0.9% Jacobs Engineering Group Inc. 22,500 948,375 - ------------------------------------------------------------------------------- 948,375 ENTERTAINMENT -- 1.0% Pixar, Inc. 18,800 1,143,792 - ------------------------------------------------------------------------------- 1,143,792 FINANCE COMPANIES -- 0.9% Capital One Financial Corporation 1 20,800 1,022,944 - ------------------------------------------------------------------------------- 1,022,944 FINANCIAL -- MISCELLANEOUS -- 3.8% Fidelity National Financial, Inc. 1 37,125 1,141,965 Providian Financial Corporation 147,000 1,361,220 Willis Group Holdings Limited 1 52,250 1,606,688 - ------------------------------------------------------------------------------- 4,109,873 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 1.0% Alliance Data Systems Corporation 45,900 1,074,060 - ------------------------------------------------------------------------------- 1,074,060 HEALTH CARE MANAGEMENT SERVICES -- 3.8% First Health Group Corporation 37,400 1,032,240 Oxford Health Plans, Inc. 24,700 1,038,141 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 14 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- HEALTH CARE MANAGEMENT SERVICES (Continued) WebMD Corporation 119,500 $ 1,294,185 WellPoint Health Networks, Inc. 10,000 843,000 - ------------------------------------------------------------------------------- 4,207,566 HEALTH CARE SERVICES -- 3.7% Anthem, Inc. 13,500 1,041,525 Express Scripts, Inc. 16,000 1,093,120 Omnicare, Inc. 1 57,500 1,942,925 - ------------------------------------------------------------------------------- 4,077,570 HOMEBUILDING -- 0.9% NVR, Inc. 2,500 1,027,500 - ------------------------------------------------------------------------------- 1,027,500 HOUSEHOLD FURNISHINGS -- 0.8% Furniture Brands International, Inc. 31,700 827,370 - ------------------------------------------------------------------------------- 827,370 INSURANCE -- MULTI-LINE -- 1.8% Aon Corporation 1 45,900 1,105,272 UnumProvident Corporation 1 65,000 871,650 - ------------------------------------------------------------------------------- 1,976,922 INSURANCE -- PROPERTY & CASUALTY -- 0.9% W.R. Berkley Corporation 1 18,000 948,600 - ------------------------------------------------------------------------------- 948,600 INVESTMENT MANAGEMENT COMPANIES -- 1.0% Neuberger Berman, Inc. 1 27,300 1,089,543 - ------------------------------------------------------------------------------- 1,089,543 MACHINERY -- OIL/WELL EQUIPMENT & SERVICES -- 3.2% Halliburton Company 1 45,000 1,035,000 Nabors Industries, Ltd. 16,000 632,800 National-Oilwell, Inc. 41,000 902,000 Smith International, Inc. 24,700 907,478 - ------------------------------------------------------------------------------- 3,477,278 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 2.8% Alcon, Inc. 1 20,800 950,560 Boston Scientific Corporation 23,000 1,405,300 Zimmer Holdings, Inc. 16,500 743,325 - ------------------------------------------------------------------------------- 3,099,185 OFFICE FURNITURE & BUSINESS EQUIPMENT -- 1.0% Lexmark International, Inc. 15,000 1,061,550 - ------------------------------------------------------------------------------- 1,061,550 OIL -- INTEGRATED DOMESTIC -- 0.7% Murphy Oil Corporation 1 15,300 804,780 - ------------------------------------------------------------------------------- 804,780 PRODUCTION TECHNOLOGY EQUIPMENT -- 1.0% KLA-Tencor Corporation 22,600 1,050,674 - ------------------------------------------------------------------------------- 1,050,674 RADIO & TV BROADCASTERS -- 0.8% Hispanic Broadcasting Corporation 35,000 890,750 - ------------------------------------------------------------------------------- 890,750 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- RETAIL -- 6.6% AutoZone, Inc. 12,800 $ 972,416 Bed Bath & Beyond, Inc. 31,700 1,230,277 CarMax, Inc. 31,900 961,785 Family Dollar Stores, Inc. 1 27,700 1,056,755 Sears, Roebuck and Company 1 47,500 1,597,900 Williams-Sonoma, Inc. 46,100 1,346,120 - ------------------------------------------------------------------------------- 7,165,253 SAVINGS & LOAN -- 1.8% New York Community Bancorp, Inc. 1 32,000 930,880 Sovereign Bancorp, Inc. 1 65,000 1,017,250 - ------------------------------------------------------------------------------- 1,948,130 SERVICES -- COMMERCIAL -- 4.4% Allied Waste Industries, Inc. 120,800 1,214,040 Cendant Corporation 50,000 916,000 Expedia, Inc., Class A 10,000 763,800 InterActiveCorp 36,000 1,424,520 Iron Mountain Inc. 14,500 537,805 - ------------------------------------------------------------------------------- 4,856,165 TELECOMMUNICATIONS EQUIPMENT -- 0.8% Alcatel S.A., ADR 1,3 92,300 826,085 - ------------------------------------------------------------------------------- 826,085 TEXTILES -- APPAREL MANUFACTURERS -- 1.1% Coach, Inc. 23,500 1,168,890 - ------------------------------------------------------------------------------- 1,168,890 UNCLASSIFIED -- 0.7% Financial Select Sector SPDR Fund 1 30,000 736,500 - ------------------------------------------------------------------------------- 736,500 UTILITIES -- CABLE TV & RADIO -- 0.6% Comcast Corporation, Special Class A 23,500 677,505 - ------------------------------------------------------------------------------- 677,505 UTILITIES -- ELECTRICAL -- 1.9% Duke Energy Corporation 1 45,000 897,750 PPL Corporation 1 26,800 1,152,400 - ------------------------------------------------------------------------------- 2,050,150 UTILITIES -- GAS PIPELINES -- 0.8% The Williams Companies, Inc. 1 110,800 875,320 - ------------------------------------------------------------------------------- 875,320 UTILITIES -- TELECOMMUNICATIONS -- 2.6% AT&T Wireless Services, Inc. 146,200 1,200,302 Sprint Corporation (PCS Group) 284,400 1,635,300 - ------------------------------------------------------------------------------- 2,835,602 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $81,918,113) 98,735,334 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 15 SCHEDULE OF INVESTMENTS - RS MIDCAP OPPORTUNITIES FUND (Continued) June 30, 2003 (unaudited) Par Value - ------------------------------------------------------------------------------- CORPORATE BONDS -- 0.6% ENERGY -- MISCELLANEOUS -- 0.6% Calpine Corporation, 4.00%, Due 12/26/06 1 $ 750,000 $ 678,750 - ------------------------------------------------------------------------------- 678,750 - ------------------------------------------------------------------------------- TOTAL CORPORATE BONDS (Cost $327,995) 678,750 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 14.7% Short-Term Investments Held as Collateral for Loaned Securities 8 7,018,600 Temporary Investment Cash Fund 4,522,606 Temporary Investment Fund 4,522,606 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $16,063,812) 16,063,812 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 105.8% (Cost $98,309,920) 115,477,896 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (6.4%) (7,018,600) - ------------------------------------------------------------------------------- OTHER ASSETS, NET -- 0.6% 679,883 - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $109,139,179 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 16 | CALL 1-800-766-FUND SCHEDULE OF INVESTMENTS - RS SMALLER COMPANY GROWTH FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 88.7% AIR TRANSPORTATION -- 0.8% Atlantic Coast Airlines Holdings, Inc. 77,300 $ 1,042,777 - ------------------------------------------------------------------------------- 1,042,777 AUTO PARTS -- AFTERMARKET -- 1.3% TBC Corporation 89,600 1,706,880 - ------------------------------------------------------------------------------- 1,706,880 BEVERAGE -- SOFT DRINKS -- 1.0% Peet's Coffee & Tea, Inc. 76,800 1,340,928 - ------------------------------------------------------------------------------- 1,340,928 BIOTECHNOLOGY RESEARCH & PRODUCTION -- 2.1% Angiotech Pharmaceuticals, Inc. 23,700 965,538 Telik, Inc. 53,600 861,352 Vicuron Pharmaceuticals, Inc. 61,900 877,742 - ------------------------------------------------------------------------------- 2,704,632 CASINOS & GAMBLING -- 1.2% Scientific Games Corporation, Class A 168,100 1,580,140 - ------------------------------------------------------------------------------- 1,580,140 COMMUNICATIONS TECHNOLOGY -- 0.8% Verisity, Ltd. 90,800 1,084,152 - ------------------------------------------------------------------------------- 1,084,152 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 10.5% Altiris, Inc. 59,000 1,182,950 Concur Technologies, Inc. 114,000 1,147,980 Digitas, Inc. 309,700 1,536,112 Embarcadero Technologies, Inc. 185,200 1,296,400 Lionbridge Technologies, Inc. 158,800 808,292 Merge Technologies, Inc. 63,300 826,065 OPNET Technologies, Inc. 108,400 1,321,396 Pinnacle Systems, Inc. 111,500 1,193,050 RADWARE, Ltd. 56,800 972,984 Tumbleweed Communications Corporation 512,000 1,320,960 Verity, Inc. 41,600 526,656 webMethods, Inc. 16,400 133,332 Zoran Corporation 69,400 1,333,174 - ------------------------------------------------------------------------------- 13,599,351 COMPUTER TECHNOLOGY -- 2.8% Analogic Corporation 1 32,200 1,570,072 Cray, Inc. 164,600 1,300,340 Dot Hill Systems Corporation 60,400 791,240 - ------------------------------------------------------------------------------- 3,661,652 CONSUMER ELECTRONICS -- 2.8% CNET Networks, Inc. 174,900 1,089,627 DoubleClick, Inc. 56,000 518,000 FindWhat.com 42,714 809,003 InfoSpace, Inc. 93,200 1,264,724 - ------------------------------------------------------------------------------- 3,681,354 CONSUMER PRODUCTS -- 1.0% Jarden Corporation 45,400 1,256,218 - ------------------------------------------------------------------------------- 1,256,218 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- DRUGS & PHARMACEUTICALS -- 7.4% Able Laboratories, Inc. 70,000 $ 1,386,000 AtheroGenics, Inc. 87,100 1,300,403 Bradley Pharmaceuticals, Inc. 74,100 1,222,650 CIMA Labs, Inc. 45,000 1,210,050 CollaGenex Pharmaceuticals, Inc. 93,500 1,255,705 CV Therapeutics, Inc. 20,700 613,962 Ligand Pharmaceuticals, Inc., Class B 62,800 853,452 Penwest Pharmaceuticals Company 18,500 450,845 POZEN, Inc. 114,900 1,261,602 - ------------------------------------------------------------------------------- 9,554,669 EDUCATION SERVICES -- 1.9% Bright Horizons Family Solutions, Inc. 38,800 1,302,128 Sylvan Learning Systems, Inc. 51,900 1,185,396 - ------------------------------------------------------------------------------- 2,487,524 ELECTRICAL & ELECTRONICS -- 0.8% Power Integrations, Inc. 44,800 1,089,536 - ------------------------------------------------------------------------------- 1,089,536 ELECTRONICS -- 0.9% Kopin Corporation 193,000 1,181,160 - ------------------------------------------------------------------------------- 1,181,160 ELECTRONICS -- MEDICAL SYSTEMS -- 1.1% Zoll Medical Corporation 41,000 1,375,960 - ------------------------------------------------------------------------------- 1,375,960 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 3.2% ASE Test Limited 24,400 134,200 DSP Group, Inc. 54,100 1,164,773 Exar Corporation 81,300 1,286,979 LogicVision, Inc. 323,400 966,966 Monolithic System Technology, Inc. 70,000 634,200 - ------------------------------------------------------------------------------- 4,187,118 ENTERTAINMENT -- 0.9% Movie Gallery, Inc. 66,200 1,221,390 - ------------------------------------------------------------------------------- 1,221,390 FINANCE COMPANIES -- 0.8% Saxon Capital, Inc. 59,200 1,028,896 - ------------------------------------------------------------------------------- 1,028,896 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 0.6% eSPEED, Inc., Class A 38,100 752,856 - ------------------------------------------------------------------------------- 752,856 FINANCIAL INFORMATION SERVICES -- 0.7% Bankrate, Inc. 75,000 909,000 - ------------------------------------------------------------------------------- 909,000 HEALTH CARE FACILITIES -- 1.7% ICON PLC, ADR 3 47,800 1,520,996 Phychiatric Solutions, Inc. 70,000 679,000 - ------------------------------------------------------------------------------- 2,199,996 HEALTH CARE MANAGEMENT SERVICES -- 3.9% American Medical Security Group, Inc. 88,000 1,680,800 Computer Programs & Systems, Inc. 1 69,400 1,388,694 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 17 SCHEDULE OF INVESTMENTS - RS SMALLER COMPANY GROWTH FUND (Continued) June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- HEALTH CARE MANAGEMENT SERVICES (Continued) IMPAC Medical Systems, Inc. 48,400 $ 1,010,592 Per-Se Technologies, Inc. 82,200 923,106 - ------------------------------------------------------------------------------- 5,003,192 HEALTH CARE SERVICES -- 1.6% Inveresk Research Group, Inc. 61,400 1,104,586 Odyssey Healthcare, Inc. 26,600 984,200 - ------------------------------------------------------------------------------- 2,088,786 HOUSEHOLD FURNISHINGS -- 1.5% Kirkland's, Inc. 116,000 1,873,400 - ------------------------------------------------------------------------------- 1,873,400 IDENTIFICATION CONTROL & FILTER DEVICES -- 0.8% ESCO Technologies, Inc. 23,600 1,038,400 - ------------------------------------------------------------------------------- 1,038,400 INSURANCE -- LIFE -- 1.0% Scottish Annuity & Life Holdings, Ltd. 1 62,500 1,263,125 - ------------------------------------------------------------------------------- 1,263,125 INSURANCE -- PROPERTY & CASUALTY -- 1.8% Infinity Property & Casualty Corporation 1 60,000 1,418,400 ProAssurance Corporation 33,150 894,718 - ------------------------------------------------------------------------------- 2,313,118 LEISURE TIME -- 1.0% K2, Inc. 109,200 1,337,700 - ------------------------------------------------------------------------------- 1,337,700 MACHINERY -- OIL/WELL EQUIPMENT & SERVICES -- 3.0% Cal Dive International, Inc. 35,000 763,000 Key Energy Services, Inc. 67,300 721,456 Oil States International, Inc. 102,250 1,237,225 Superior Energy Services, Inc. 128,900 1,221,972 - ------------------------------------------------------------------------------- 3,943,653 MACHINERY -- SPECIALTY -- 0.9% Applied Films Corporation 45,600 1,180,128 - ------------------------------------------------------------------------------- 1,180,128 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 4.0% Conceptus, Inc. 49,800 699,690 Dade Behring Holdings, Inc. 33,500 769,495 Endologix, Inc. 225,000 769,500 INAMED Corporation 23,000 1,234,870 Laserscope 85,500 683,145 Osteotech, Inc. 67,100 911,889 Ventana Medical Systems, Inc. 4,900 133,182 - ------------------------------------------------------------------------------- 5,201,771 MEDICAL SERVICES -- 1.0% Option Care, Inc. 111,300 1,283,289 - ------------------------------------------------------------------------------- 1,283,289 OIL -- CRUDE PRODUCERS -- 1.7% Grey Wolf, Inc. 271,200 1,095,648 Unit Corporation 53,300 1,114,503 - ------------------------------------------------------------------------------- 2,210,151 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- PRODUCTION TECHNOLOGY EQUIPMENT -- 4.8% August Technology Corporation 244,500 $ 1,552,575 FEI Company 69,400 1,301,944 Genus, Inc. 403,800 1,090,260 Mykrolis Corporation 118,900 1,206,835 Ultratech, Inc. 60,200 1,113,098 - ------------------------------------------------------------------------------- 6,264,712 RENTAL & LEASING SERVICES -- CONSUMER -- 1.3% Aaron Rents, Inc. 1 64,400 1,661,520 - ------------------------------------------------------------------------------- 1,661,520 RESTAURANTS -- 0.5% Chicago Pizza & Brewery, Inc. 67,300 673,000 - ------------------------------------------------------------------------------- 673,000 RETAIL -- 3.7% Cost Plus, Inc. 13,600 484,976 Guitar Center, Inc. 44,800 1,299,200 Hot Topic, Inc. 29,500 793,845 J. Jill Group, Inc. 80,400 1,353,936 School Specialty, Inc. 32,500 924,950 - ------------------------------------------------------------------------------- 4,856,907 SAVINGS & LOAN -- 1.0% NetBank, Inc. 1 93,500 1,230,460 - ------------------------------------------------------------------------------- 1,230,460 SERVICES -- COMMERCIAL -- 5.2% Autobytel, Inc. 170,000 1,060,800 Coinstar, Inc. 53,100 1,001,466 DiamondCluster International, Inc., Class A 240,000 890,400 ebookers PLC, ADR 3 64,100 1,028,933 Regis Corporation 1 32,250 936,863 The Advisory Board Company 21,700 879,284 Wireless Facilities, Inc. 79,900 950,810 - ------------------------------------------------------------------------------- 6,748,556 SHIPPING -- 0.6% UTI Worldwide, Inc. 1 25,450 793,786 - ------------------------------------------------------------------------------- 793,786 TEXTILE -- APPAREL MANUFACTURERS -- 1.0% Ashworth, Inc. 177,600 1,259,184 - ------------------------------------------------------------------------------- 1,259,184 TRANSPORTATION -- MISCELLANEOUS -- 1.1% Vitran Corporation, Inc., Class A 200,000 1,400,000 - ------------------------------------------------------------------------------- 1,400,000 TRUCKERS -- 2.0% Forward Air Corporation 50,200 1,273,574 Old Dominion Freight Line, Inc. 58,300 1,260,446 - ------------------------------------------------------------------------------- 2,534,020 UTILITIES -- TELECOMMUNICATIONS -- 1.0% Intrado, Inc. 83,800 1,323,202 - ------------------------------------------------------------------------------- 1,323,202 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $91,064,205) 115,128,249 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 18 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 23.2% PNC Bank Money Market Account $ 956,621 Short-Term Investments Held as Collateral for Loaned Securities 8 14,061,100 Temporary Investment Cash Fund 7,566,655 Temporary Investment Fund 7,566,655 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $30,151,031) 30,151,031 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 111.9% (Cost $121,215,236) 145,279,280 - ------------------------------------------------------------------------------- COLLATERAL ON SECURITIES LOANED, AT VALUE -- (10.8%) (14,061,100) - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (1.1)% (1,350,648) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $129,867,532 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 19 SCHEDULE OF INVESTMENTS - RS VALUE + GROWTH FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 97.5% ADVERTISING AGENCIES -- 0.9% The Interpublic Group of Companies, Inc. 1 125,000 $ 1,672,500 - ------------------------------------------------------------------------------- 1,672,500 AIR TRANSPORTATION -- 3.0% Delta Air Lines, Inc. 1 179,600 2,636,528 FedEx Corporation 1 27,500 1,705,825 Ryanair Holdings, PLC, ADR 3 32,600 1,463,740 - ------------------------------------------------------------------------------- 5,806,093 BANKS -- OUTSIDE NEW YORK CITY -- 1.0% Wachovia Corporation 1 45,300 1,810,188 - ------------------------------------------------------------------------------- 1,810,188 BIOTECHNOLOGY RESEARCH & PRODUCTION -- 2.5% Amgen, Inc. 47,400 3,149,256 Genzyme Corporation 40,400 1,688,720 - ------------------------------------------------------------------------------- 4,837,976 CABLE TELEVISION SERVICES -- 2.2% EchoStar Communications Corporation, Class A 62,400 2,160,288 Liberty Media Corporation, Class A 185,000 2,138,600 - ------------------------------------------------------------------------------- 4,298,888 CASINOS & GAMBLING -- 2.4% International Game Technology 1 23,000 2,353,590 MGM Mirage, Inc. 66,500 2,272,970 - ------------------------------------------------------------------------------- 4,626,560 CHEMICALS -- 1.6% Air Products & Chemicals, Inc. 1 30,000 1,248,000 Lyondell Chemical Company 1 136,200 1,842,786 - ------------------------------------------------------------------------------- 3,090,786 COMMUNICATIONS TECHNOLOGY -- 8.4% Comverse Technology, Inc. 175,000 2,630,250 Foundry Networks, Inc. 137,000 1,972,800 Nortel Networks Corporation 519,900 1,403,730 QUALCOMM, Inc.1 45,000 1,608,750 Research In Motion Limited 86,100 1,860,621 Secure Computing Corporation 345,300 3,014,469 Symbol Technologies, Inc. 1 284,700 3,703,947 - ------------------------------------------------------------------------------- 16,194,567 COMPUTER SERVICES, SOFTWARE & SYSTEMS -- 5.5% Amdocs, Ltd. 95,000 2,280,000 Check Point Software Technologies, Ltd. 84,000 1,642,200 Cognos, Inc. 68,700 1,854,900 NetScreen Technologies, Inc. 77,800 1,754,390 Oracle Corporation 115,000 1,382,300 VERITAS Software Corporation 58,400 1,674,328 - ------------------------------------------------------------------------------- 10,588,118 COMPUTER TECHNOLOGY -- 1.0% McDATA Corporation, Class B 126,900 1,840,050 - ------------------------------------------------------------------------------- 1,840,050 CONSUMER ELECTRONICS -- 2.5% Harman International Industries, Inc. 1 21,700 1,717,338 VeriSign, Inc. 150,000 2,074,500 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- CONSUMER ELECTRONICS (Continued) Yahoo! Inc. 30,900 $ 1,012,284 - ------------------------------------------------------------------------------- 4,804,122 COPPER -- 1.3% Freeport-McMoRan Copper & Gold, Inc., Class B 1 102,000 2,499,000 - ------------------------------------------------------------------------------- 2,499,000 COSMETICS -- 0.7% Avon Products, Inc. 1 22,500 1,399,500 - ------------------------------------------------------------------------------- 1,399,500 DRUGS & PHARMACEUTICALS -- 5.3% Allergan, Inc. 1 29,100 2,243,610 Gilead Sciences, Inc. 38,700 2,150,946 Merck & Co., Inc. 1 30,000 1,816,500 Pharmaceutical Resources, Inc. 46,300 2,252,958 Teva Pharmaceutical Industries, Ltd., ADR 1,3 30,600 1,742,058 - ------------------------------------------------------------------------------- 10,206,072 EDUCATION SERVICES -- 2.9% Career Education Corporation 25,900 1,772,078 Corinthian Colleges, Inc. 41,000 1,991,370 University of Phoenix Online 36,800 1,865,760 - ------------------------------------------------------------------------------- 5,629,208 ELECTRONICS -- MEDICAL SYSTEMS -- 0.7% Varian Medical Systems, Inc. 24,000 1,381,680 - ------------------------------------------------------------------------------- 1,381,680 ELECTRONICS -- SEMICONDUCTORS & COMPONENTS -- 5.7% Agere Systems, Inc., Class A 800,000 1,864,000 Infineon Technologies AG, ADR 1,3 156,500 1,500,835 Marvell Technology Group, Ltd. 100,000 3,437,000 Micron Technology, Inc. 209,600 2,437,648 PMC-Sierra, Inc. 136,400 1,599,972 - ------------------------------------------------------------------------------- 10,839,455 ENGINEERING & CONTRACTING SERVICES -- 0.9% Jacobs Engineering Group, Inc. 42,200 1,778,730 - ------------------------------------------------------------------------------- 1,778,730 ENTERTAINMENT -- 1.1% Pixar, Inc. 35,200 2,141,568 - ------------------------------------------------------------------------------- 2,141,568 FINANCE COMPANIES -- 1.0% Capital One Financial Corporation 1 38,400 1,888,512 - ------------------------------------------------------------------------------- 1,888,512 FINANCIAL -- MISCELLANEOUS -- 4.0% Fidelity National Financial, Inc. 1 70,250 2,160,890 Providian Financial Corporation 264,100 2,445,566 Willis Group Holdings Limited 1 96,750 2,975,063 - ------------------------------------------------------------------------------- 7,581,519 FINANCIAL DATA PROCESSING SERVICES & SYSTEMS -- 0.1% Alliance Data Systems Corporation 7,500 175,500 - ------------------------------------------------------------------------------- 175,500 HEALTH CARE MANAGEMENT SERVICES -- 3.8% First Health Group Corporation 52,450 1,447,620 Oxford Health Plans, Inc. 45,800 1,924,974 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 20 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- HEALTH CARE MANAGEMENT SERVICES (Continued) WebMD Corporation 222,600 $ 2,410,758 WellPoint Health Networks, Inc. 18,500 1,559,550 - ------------------------------------------------------------------------------- 7,342,902 HEALTH CARE SERVICES -- 3.9% Anthem, Inc. 25,000 1,928,750 Express Scripts, Inc. 30,000 2,049,600 Omnicare, Inc. 1 105,600 3,568,224 - ------------------------------------------------------------------------------- 7,546,574 HOUSEHOLD FURNISHINGS -- 0.8% Furniture Brands International, Inc. 58,500 1,526,850 - ------------------------------------------------------------------------------- 1,526,850 INSURANCE -- MULTI-LINE -- 1.9% Aon Corporation 1 85,300 2,054,024 UnumProvident Corporation 1 119,400 1,601,154 - ------------------------------------------------------------------------------- 3,655,178 INSURANCE -- PROPERTY & CASUALTY -- 1.0% W.R. Berkley Corporation 1 37,500 1,976,250 - ------------------------------------------------------------------------------- 1,976,250 INVESTMENT MANAGEMENT COMPANIES -- 1.0% Neuberger Berman, Inc. 1 48,200 1,923,662 - ------------------------------------------------------------------------------- 1,923,662 MACHINERY -- OIL/WELL EQUIPMENT & SERVICES -- 3.2% Halliburton Company 1 90,000 2,070,000 Nabors Industries, Ltd. 30,000 1,186,500 National-Oilwell, Inc. 70,000 1,540,000 Smith International, Inc. 36,500 1,341,010 - ------------------------------------------------------------------------------- 6,137,510 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 3.0% Alcon, Inc. 1 38,900 1,777,730 Boston Scientific Corporation 42,200 2,578,420 Zimmer Holdings, Inc. 30,600 1,378,530 - ------------------------------------------------------------------------------- 5,734,680 OFFICE FURNITURE & BUSINESS EQUIPMENT -- 1.0% Lexmark International, Inc. 27,000 1,910,790 - ------------------------------------------------------------------------------- 1,910,790 OIL -- CRUDE PRODUCERS -- 1.3% EnCana Corporation 1 62,500 2,398,125 - ------------------------------------------------------------------------------- 2,398,125 OIL -- INTEGRATED DOMESTIC -- 0.8% Murphy Oil Corporation 1 28,300 1,488,580 - ------------------------------------------------------------------------------- 1,488,580 PRODUCTION TECHNOLOGY EQUIPMENT -- 1.0% KLA-Tencor Corporation 41,500 1,929,335 - ------------------------------------------------------------------------------- 1,929,335 RADIO & TV BROADCASTERS -- 0.9% Hispanic Broadcasting Corporation 66,500 1,692,425 - ------------------------------------------------------------------------------- 1,692,425 RETAIL -- 5.6% AutoZone, Inc. 23,700 1,800,489 CarMax, Inc. 59,200 1,784,880 Family Dollar Stores, Inc. 1 51,100 1,949,465 June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- RETAIL (Continued) Sears, Roebuck and Company 1 85,900 $ 2,889,676 Williams-Sonoma, Inc. 84,400 2,464,480 - ------------------------------------------------------------------------------- 10,888,990 SERVICES -- COMMERCIAL -- 4.7% Allied Waste Industries, Inc. 219,800 2,208,990 Cendant Corporation 100,000 1,832,000 Expedia, Inc., Class A 17,500 1,336,650 InterActiveCorp 66,000 2,611,620 Iron Mountain, Inc. 27,500 1,019,975 - ------------------------------------------------------------------------------- 9,009,235 TELECOMMUNICATIONS EQUIPMENT -- 0.8% Alcatel S.A., ADR 1,3 171,500 1,534,925 - ------------------------------------------------------------------------------- 1,534,925 TEXTILES - APPAREL MANUFACTURERS -- 1.2% Coach, Inc. 45,000 2,238,300 - ------------------------------------------------------------------------------- 2,238,300 UNCLASSIFIED -- 1.0% Financial Select Sector SPDR Fund 1 75,000 1,841,250 - ------------------------------------------------------------------------------- 1,841,250 UTILITIES -- CABLE TV & RADIO -- 1.1% Comcast Corporation, Special Class A 70,000 2,018,100 - ------------------------------------------------------------------------------- 2,018,100 UTILITIES -- ELECTRICAL -- 0.9% Duke Energy Corporation 1 90,000 1,795,500 - ------------------------------------------------------------------------------- 1,795,500 UTILITIES -- GAS PIPELINES -- 0.8% The Williams Companies, Inc. 1 200,000 1,580,000 - ------------------------------------------------------------------------------- 1,580,000 UTILITIES -- TELECOMMUNICATIONS -- 3.1% AT&T Wireless Services, Inc. 360,800 2,962,168 Sprint Corporation (PCS Group) 522,700 3,005,525 - ------------------------------------------------------------------------------- 5,967,693 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $156,426,293) 187,227,446 Par Value - ------------------------------------------------------------------------------- CORPORATE BONDS -- 0.8% ENERGY - MISCELLANEOUS -- 0.8% Calpine Corporation 1, 4.00% Due 12/26/06 1 $1,750,000 1,583,750 - ------------------------------------------------------------------------------- 1,583,750 - ------------------------------------------------------------------------------- TOTAL CORPORATE BONDS (Cost $751,118) 1,583,750 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 5.8% Temporary Investment Cash Fund 5,540,355 Temporary Investment Fund 5,540,355 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $11,080,710) 11,080,710 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 104.1% (Cost $168,258,121) 199,891,906 - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (4.1)% (7,952,027) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $191,939,879 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 21 SCHEDULE OF INVESTMENTS - THE CONTRARIAN FUND(TM) June 30, 2003 (unaudited) Foreign Currency 2 Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 83.5% AGRICULTURAL PRODUCTS -- 4.2% Bunge, Ltd. 1 181,000 $ 5,176,600 - ------------------------------------------------------------------------------- 5,176,600 APPAREL -- 1.8% Polo Ralph Lauren Corporation 1 85,000 2,192,150 - ------------------------------------------------------------------------------- 2,192,150 AUTOMOBILE PARTS & ACCESSORIES -- 3.3% Johnson Controls, Inc. 1 47,000 4,023,200 - ------------------------------------------------------------------------------- 4,023,200 COAL -- 4.0% CONSOL Energy, Inc. 1 75,100 1,707,774 Peabody Energy Corporation 1 82,050 2,756,059 Sherritt International Corporation CAD 133,600 445,415 - ------------------------------------------------------------------------------- 4,909,248 COMPUTER HARDWARE & COMPONENTS -- 5.2% Maxtor Corporation 549,000 4,122,990 Ingram Micro Inc., Class A 201,600 2,217,600 - ------------------------------------------------------------------------------- 6,340,590 COMPUTER SERVICES -- 1.6% VeriSign, Inc. 139,000 1,922,370 - ------------------------------------------------------------------------------- 1,922,370 CONSUMER GOODS -- 2.7% Mohawk Industries, Inc. 60,000 3,331,800 - ------------------------------------------------------------------------------- 3,331,800 DISTRIBUTION/WHOLESALE -- 2.1% Tech Data Corporation 98,000 2,617,580 - ------------------------------------------------------------------------------- 2,617,580 DIVERSIFIED OPERATIONS -- 2.8% Berkshire Hathaway, Inc., Class B 1,410 3,426,300 - ------------------------------------------------------------------------------- 3,426,300 DRUG & GROCERY STORE CHAINS -- 2.7% Safeway, Inc. 164,000 3,355,440 - ------------------------------------------------------------------------------- 3,355,440 FOOD -- 4.9% Fresh Del Monte Produce, Inc. 1 235,000 6,037,150 - ------------------------------------------------------------------------------- 6,037,150 HEALTH CARE SERVICES -- 6.9% Caremark Rx, Inc. 135,000 3,466,800 Omnicare, Inc. 1 87,000 2,939,730 Renal Care Group, Inc. 59,000 2,077,390 - ------------------------------------------------------------------------------- 8,483,920 INSURANCE -- 8.0% Endurance Specialty Holdings Limited 1 68,500 2,044,725 Erie Indemnity Company, Class A 1 72,000 2,970,000 The Chubb Corporation 1 31,000 1,860,000 W.R. Berkley Corporation 1 54,100 2,851,070 - ------------------------------------------------------------------------------- 9,725,795 June 30, 2003 (unaudited) Foreign Currency 2 Shares Value - ------------------------------------------------------------------------------- NETWORK SYSTEMS & PRODUCTS -- 2.3% 3Com Corporation 599,200 $ 2,804,256 - ------------------------------------------------------------------------------- 2,804,256 OIL & GAS EXPLORATION/PRODUCTION -- 8.9% ConocoPhillips 1 27,000 1,479,600 EnCana Corporation 1 CAD 85,000 3,234,223 Ivanhoe Energy, Inc. 1,403,880 1,431,958 Kerr-McGee Corporation 1 44,000 1,971,200 Penn West Petroleum, Ltd. CAD 85,000 2,721,251 - ------------------------------------------------------------------------------- 10,838,232 PAPER & FOREST PRODUCTS -- 4.5% Canfor Corporation 1 CAD 266,000 1,724,718 International Paper Company 1 107,000 3,823,110 - ------------------------------------------------------------------------------- 5,547,828 PHARMACEUTICALS -- 7.7% AmerisourceBergen Corporation 1 65,000 4,507,750 Barr Laboratories, Inc. 75,500 4,945,250 - ------------------------------------------------------------------------------- 9,453,000 PLATINUM GROUP METALS -- 2.0% African Minerals, Ltd. 4,5 698,422 2,444,477 - ------------------------------------------------------------------------------- 2,444,477 RADIO & TV BROADCASTERS -- 2.5% Liberty Media Corporation, Class A 264,000 3,051,840 - ------------------------------------------------------------------------------- 3,051,840 TRANSPORTATION SERVICES -- 5.4% China Yuchai International, Ltd. 1 988,100 6,570,865 - ------------------------------------------------------------------------------- 6,570,865 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $84,638,888) 102,252,641 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 20.3% PNC Bank Money Market Account 12,414,150 Temporary Investment Cash Fund 6,185,537 Temporary Investment Fund 6,185,537 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $24,785,224) 24,785,224 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 103.8% (Cost $109,424,112) 127,037,865 - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (3.8)% (4,643,983) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $122,393,882 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 22 | CALL 1-800-766-FUND SCHEDULE OF INVESTMENTS - RS GLOBAL NATURAL RESOURCES FUND June 30, 2003 (unaudited) Foreign Currency 2 Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 81.1% AGRICULTURAL PRODUCTS -- 3.0% Bunge, Ltd. 1 66,000 $ 1,887,600 - ------------------------------------------------------------------------------- 1,887,600 COAL -- 6.7% CONSOL Energy, Inc. 1 50,200 1,141,548 Peabody Energy Corporation 1 45,100 1,514,909 Sherritt International Corporation CAD 98,600 328,727 Westmoreland Coal Company 64,900 1,180,531 - ------------------------------------------------------------------------------- 4,165,715 FOOD -- 5.7% Fresh Del Monte Produce, Inc. 1 138,000 3,545,220 - ------------------------------------------------------------------------------- 3,545,220 MANUFACTURING -- 1.9% NS Group, Inc. 119,100 1,161,225 - ------------------------------------------------------------------------------- 1,161,225 NICKEL MINING -- 4.6% Falconbridge, Ltd. 1 CAD 215,500 2,842,142 - ------------------------------------------------------------------------------- 2,842,142 OIL & GAS EXPLORATION/PRODUCTION -- 45.4% Acclaim Energy Trust 1 CAD 151,826 1,238,073 Compton Petroleum Corporation CAD 571,000 2,471,007 ConocoPhillips 1 39,000 2,137,200 EnCana Corporation 1 CAD 90,000 3,424,471 EOG Resources, Inc. 1 59,000 2,468,560 Kerr-McGee Corporation 1 35,000 1,568,000 Noble Energy, Inc. 1 64,000 2,419,200 Oiltec Resources, Ltd. CAD 865,000 795,768 Oiltec Resources, Ltd., 144A 7 CAD 865,000 795,768 Paramount Resources, Ltd. CAD 174,100 1,185,226 Penn West Petroleum, Ltd. CAD 95,200 3,047,801 Precision Drilling Corporation 66,000 2,492,160 Talisman Energy, Inc. 1 CAD 38,000 1,719,963 Westport Resources Corporation 110,000 2,502,500 - ------------------------------------------------------------------------------- 28,265,697 PAPER & FOREST PRODUCTS -- 12.7% Canfor Corporation 1 CAD 267,800 1,736,388 International Paper Company 1 54,000 1,929,420 Norske Skog Canada, Ltd. CAD 630,000 1,599,632 Slocan Forest Products, Ltd. CAD 455,000 2,618,657 - ------------------------------------------------------------------------------- 7,884,097 PLATINUM GROUP METALS -- 1.1% African Minerals, Ltd. 4,5 203,624 712,684 - ------------------------------------------------------------------------------- 712,684 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $44,498,963) 50,464,380 June 30, 2003 (unaudited) Warrants Value - ------------------------------------------------------------------------------- WARRANTS -- 0.0% OIL & GAS EXPLORATION/PRODUCTION-- 0.0% PYR Energy Corporation, Strike 4.80, Expires 07/31/03 4,6 40,000 $ 0 - ------------------------------------------------------------------------------- TOTAL WARRANTS (Cost $79,872) 0 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 24.4% PNC Bank Money Market Account 8,622,731 Temporary Investment Cash Fund 3,275,836 Temporary Investment Fund 3,275,836 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $15,174,403) 15,174,403 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 105.5% (Cost $59,753,238) 65,638,783 - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (5.5)% (3,414,155) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $62,224,628 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 23 SCHEDULE OF INVESTMENTS - RS PARTNERS FUND June 30, 2003 (unaudited) Foreign Currency 2 Shares Value - ------------------------------------------------------------------------------- COMMON STOCKS -- 86.7% AGRICULTURAL PRODUCTS -- 3.6% Bunge, Ltd. 1 457,000 $ 13,070,200 - ------------------------------------------------------------------------------- 13,070,200 CLOSED-END FUNDS -- 0.1% The Cathay Investment Fund, Ltd. 4 HKD 525,000 500,182 - ------------------------------------------------------------------------------- 500,182 COAL -- 3.5% Peabody Energy Corporation 1 227,850 7,653,482 Westmoreland Coal Company 282,400 5,136,856 - ------------------------------------------------------------------------------- 12,790,338 COMPUTER HARDWARE & COMPONENTS -- 2.4% Ingram Micro Inc., Class A 52,600 578,600 Maxtor Corporation 1,084,000 8,140,840 - ------------------------------------------------------------------------------- 8,719,440 COMPUTER TECHNOLOGY -- 0.2% Neoforma, Inc. 69,000 753,480 - ------------------------------------------------------------------------------- 753,480 DATA PROCESSING SOFTWARE & SERVICES -- 3.7% CSG Systems International, Inc. 937,000 13,239,810 - ------------------------------------------------------------------------------- 13,239,810 DISTRIBUTION/WHOLESALE -- 0.7% Tech Data Corporation 100,800 2,692,368 - ------------------------------------------------------------------------------- 2,692,368 ELECTRONIC COMPONENTS -- 1.1% Gemstar-TV Guide International, Inc. 814,000 4,143,260 - ------------------------------------------------------------------------------- 4,143,260 FINANCIAL SERVICES -- 0.5% First Republic Bank 74,000 1,968,400 - ------------------------------------------------------------------------------- 1,968,400 FOOD -- 4.4% Fresh Del Monte Produce, Inc. 1 622,000 15,979,180 - ------------------------------------------------------------------------------- 15,979,180 HEALTH CARE MANAGEMENT SERVICES -- 3.0% AMERIGROUP Corporation 295,000 10,974,000 - ------------------------------------------------------------------------------- 10,974,000 HEALTH CARE SERVICES -- 3.2% Accredo Health, Inc. 528,000 11,510,400 - ------------------------------------------------------------------------------- 11,510,400 HOTELS & MOTELS -- 1.0% Prime Hospitality Corporation 528,000 3,542,880 - ------------------------------------------------------------------------------- 3,542,880 INSURANCE -- 15.2% Endurance Specialty Holdings Limited 1 275,000 8,208,750 Erie Indemnity Company, Class A 1 131,000 5,403,750 Infinity Property & Casualty Corporation 1 237,000 5,602,680 Kingsway Financial Services, Inc. CAD 49,100 590,826 Ohio Casualty Corporation 524,000 6,906,320 PMA Capital Corporation, Class A 1 594,700 7,475,379 Scottish Annuity & Life Holdings, Ltd. 1 360,000 7,275,600 W.R. Berkley Corporation 1 128,000 6,745,600 June 30, 2003 (unaudited) Foreign Currency 2 Shares Value - ------------------------------------------------------------------------------- INSURANCE (Continued) Zenith National Insurance Corporation 1 246,900 $ 7,036,650 - ------------------------------------------------------------------------------- 55,245,555 INTERNET CAPITAL SERVICES -- 1.0% S1 Corporation 930,000 3,757,200 - ------------------------------------------------------------------------------- 3,757,200 MEDICAL & DENTAL INSTRUMENTS & SUPPLIES -- 1.3% Cytyc Corporation 435,000 4,576,200 - ------------------------------------------------------------------------------- 4,576,200 MEDICAL PRODUCTS & SERVICES -- 2.1% DaVita, Inc. 232,000 6,212,960 Impax Laboratories, Inc. 117,000 1,402,830 - ------------------------------------------------------------------------------- 7,615,790 NETWORK SYSTEMS & PRODUCTS -- 1.4% 3Com Corporation 1,052,800 4,927,104 - ------------------------------------------------------------------------------- 4,927,104 NICKEL MINING -- 1.2% Falconbridge, Ltd. 1 CAD 315,000 4,154,407 - ------------------------------------------------------------------------------- 4,154,407 OIL & GAS EXPLORATION/PRODUCTION -- 6.3% Compton Petroleum Corporation CAD 1,625,000 7,032,199 Oiltec Resources, Ltd. CAD 876,000 805,888 Oiltec Resources, Ltd., 144A 7 CAD 770,000 708,371 Paramount Resources, Ltd. CAD 81,900 557,553 Penn West Petroleum, Ltd. CAD 211,900 6,783,919 Westport Resources Corporation 303,000 6,893,250 - ------------------------------------------------------------------------------- 22,781,180 PAPER & FOREST PRODUCTS -- 2.9% Canfor Corporation 1 CAD 418,000 2,710,270 Norske Skog Canada, Ltd. CAD 947,000 2,404,526 Slocan Forest Products, Ltd. CAD 908,100 5,226,379 - ------------------------------------------------------------------------------- 10,341,175 PHARMACEUTICALS -- 4.1% Barr Laboratories, Inc. 163,000 10,676,500 Pharmaceutical Resources, Inc. 36,800 1,790,688 ProMetic Life Sciences, Inc. CAD 1,482,000 2,508,629 - ------------------------------------------------------------------------------- 14,975,817 PRINTING & PUBLISHING -- 1.9% Hollinger International, Inc., Class A 1 640,000 6,892,800 - ------------------------------------------------------------------------------- 6,892,800 RADIO & TV BROADCASTERS -- 4.6% Liberty Media Corporation, Class A 478,000 5,525,680 UnitedGlobalCom, Inc., Class A 2,150,000 11,115,500 - ------------------------------------------------------------------------------- 16,641,180 REAL ESTATE INVESTMENT TRUSTS -- 2.0% Ventas, Inc. 1 485,000 7,347,750 - ------------------------------------------------------------------------------- 7,347,750 RESTAURANTS -- 3.7% IHOP Corporation 1 79,400 2,506,658 Triarc Companies, Inc. 368,000 11,036,320 - ------------------------------------------------------------------------------- 13,542,978 See notes to Schedule of Investments on page 25. The accompanying notes are an integral part of these financial statements. 24 | CALL 1-800-766-FUND June 30, 2003 (unaudited) Shares Value - ------------------------------------------------------------------------------- RETAIL -- 7.1% Electronics Boutique Holdings Corporation 348,000 $ 8,042,280 GameStop Corporation 780,000 10,077,600 Global Imaging Systems, Inc. 172,100 3,985,836 Party City Corporation 349,000 3,584,230 - ------------------------------------------------------------------------------- 25,689,946 SEMICONDUCTORS & COMPONENTS -- 1.0% Monolithic System Technology, Inc. 383,000 3,469,980 - ------------------------------------------------------------------------------- 3,469,980 STEEL -- 1.2% United States Steel Corporation 1 261,000 4,272,570 - ------------------------------------------------------------------------------- 4,272,570 TELECOMMUNICATIONS SERVICES -- 0.8% IDT Corporation, Class B 161,800 2,847,680 - ------------------------------------------------------------------------------- 2,847,680 TRANSPORTATION SERVICES -- 1.5% China Yuchai International, Ltd. 1 829,000 5,512,850 - ------------------------------------------------------------------------------- 5,512,850 - ------------------------------------------------------------------------------- TOTAL COMMON STOCKS (Cost $261,917,862) 314,476,100 Value - ------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS -- 14.0% PNC Bank Money Market Account 14,061,930 Temporary Investment Cash Fund 18,339,881 Temporary Investment Fund 18,339,881 - ------------------------------------------------------------------------------- TOTAL SHORT-TERM INVESTMENTS (Cost $50,741,692) 50,741,692 - ------------------------------------------------------------------------------- TOTAL INVESTMENTS -- 100.7% (Cost $312,659,554) 365,217,792 - ------------------------------------------------------------------------------- OTHER LIABILITIES, NET -- (0.7)% (2,685,699) - ------------------------------------------------------------------------------- TOTAL NET ASSETS -- 100.0% $362,532,093 1 Income-producing security. 2 Foreign-denominated security: CAD -- Canadian Dollar, HKD -- Hong Kong Dollar. 3 ADR -- American Depository Receipt. 4 Fair value security. See 1a in Notes to Financial Statements. 5 Restricted security. See 4e in Notes to Financial Statements. 6 See 4f in Notes to Financial Statements. 7 These securities may be resold in transactions under rule 144A of the Securities Act of 1933, normally to qualified institutional buyers. 8 See 5 in Notes to Financial Statements. The accompanying notes are an integral part of these financial statements. WWW.RSINVESTMENTS.COM | 25 FINANCIAL INFORMATION - -------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES As of June 30, 2003 (unaudited) All numbers in thousands except for Pricing of Shares section - -------------------------------------------------------------
THE DIVERSIFIED EMERGING INFORMATION GROWTH GROWTH AGE FUND(R) ASSETS Investments (including securities on loan), at value $ 815,865 $ 1,606,240 $ 146,099 Cash 28 94 5 Receivable for investments sold 22,983 79,304 4,757 Receivable for fund shares subscribed 20,668 4,224 668 Dividends/interest receivable 415 64 8 Prepaid expenses 38 97 4 Other 191 570 15 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 860,188 1,690,593 151,556 - ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Temporary borrowings -- -- -- Collateral on securities loaned, at value 103,145 246,497 4,063 Payable for investments purchased 13,053 25,975 3,585 Payable for fund shares redeemed 10,966 6,979 3,987 Payable to adviser 567 1,191 116 Payable to distributor 142 298 29 Deferred trustees' compensation 40 103 5 Accrued expenses/other liabilities 653 1,863 87 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 128,566 282,906 11,872 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 731,622 $ 1,407,687 $ 139,684 - ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 1,093,699 3,371,973 179,845 Accumulated undistributed net investment income/(loss) (2,473) (9,303) (600) Accumulated net realized gain/(loss) from investments, securities sold short, options written and foreign currency transactions (493,461) (2,292,948) (64,294) Net unrealized appreciation/(depreciation) on investments, securities sold short, options written, and translation of assets and liabilities in foreign currencies 133,857 337,965 24,733 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 731,622 $ 1,407,687 $ 139,684 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT COST $ 682,014 $ 1,268,292 $ 121,367 - ------------------------------------------------------------------------------------------------------------------------------- PRICING OF SHARES Net Asset Value, offering, and redemption price per share $ 17.29 $ 22.94 $ 11.10 Net Assets $731,621,822 $1,407,687,044 $139,683,502 Shares of beneficial interest outstanding with no par value 42,319,160 61,353,595 12,588,694 SMALLER RS INTERNET MIDCAP COMPANY AGE FUND(TM) OPPORTUNITIES GROWTH ASSETS Investments (including securities on loan), at value $ 81,192 $ 115,478 $ 145,279 Cash -- 7 7 Receivable for investments sold 4,058 674 4,940 Receivable for fund shares subscribed 1,343 5,358 1,723 Dividends/interest receivable 2 44 14 Prepaid expenses 3 6 8 Other 13 11 18 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 86,611 121,578 151,989 - ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Temporary borrowings 3,512 -- -- Collateral on securities loaned, at value 6,611 7,019 14,061 Payable for investments purchased 1,915 5,059 4,560 Payable for fund shares redeemed 4,172 134 3,222 Payable to adviser 82 86 129 Payable to distributor 16 21 26 Deferred trustees' compensation 3 7 7 Accrued expenses/other liabilities 76 113 116 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 16,387 12,439 22,121 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 70,224 $ 109,139 $ 129,868 - ------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 219,695 158,651 132,949 Accumulated undistributed net investment income/(loss) (481) (237) (884) Accumulated net realized gain/(loss) from investments, securities sold short, options written and foreign currency transactions (166,340) (66,444) (26,262) Net unrealized appreciation/(depreciation) on investments, securities sold short, options written, and translation of assets and liabilities in foreign currencies 17,350 17,169 24,065 - ------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 70,224 $ 109,139 $ 129,868 - ------------------------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT COST $ 63,843 $ 98,310 $ 121,215 - ------------------------------------------------------------------------------------------------------------------------------- PRICING OF SHARES Net Asset Value, offering, and redemption price per share $ 4.80 $ 8.84 $ 15.62 Net Assets $ 70,223,593 $109,139,179 $129,867,532 Shares of beneficial interest outstanding with no par value 14,639,112 12,352,167 8,316,801 THE GLOBAL VALUE + CONTRARIAN NATURAL GROWTH FUND(TM) RESOURCES PARTNERS ASSETS Investments (including securities on loan), at value $ 199,892 $ 127,038 $ 65,639 $ 365,218 Cash 12 5 3 9 Receivable for investments sold 1,141 -- -- -- Receivable for fund shares subscribed 52 2,437 400 4,421 Dividends/interest receivable 67 65 90 233 Prepaid expenses 13 4 3 9 Other 13 6 3 8 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 201,190 129,555 66,138 369,898 - ----------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Temporary borrowings -- -- -- -- Collateral on securities loaned, at value -- -- -- -- Payable for investments purchased 8,384 6,799 3,695 5,512 Payable for fund shares redeemed 445 162 86 1,363 Payable to adviser 158 89 50 266 Payable to distributor 40 22 12 68 Deferred trustees' compensation 13 4 3 8 Accrued expenses/other liabilities 210 85 67 149 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES 9,250 7,161 3,913 7,366 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 191,940 $ 122,394 $ 62,225 $ 362,532 - ----------------------------------------------------------------------------------------------------------------------------------- NET ASSETS CONSIST OF: Paid-in capital 172,699 251,788 67,662 302,103 Accumulated undistributed net investment income/(loss) (500) 269 22 (317) Accumulated net realized gain/(loss) from investments, securities sold short, options written and foreign currency transactions (11,895) (147,277) (11,349) 8,167 Net unrealized appreciation/(depreciation) on investments, securities sold short, options written, and translation of assets and liabilities in foreign currencies 31,636 17,614 5,890 52,579 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL NET ASSETS $ 191,940 $ 122,394 $ 62,225 $ 362,532 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS, AT COST $ 168,258 $ 109,424 $ 59,753 $ 312,660 - ----------------------------------------------------------------------------------------------------------------------------------- PRICING OF SHARES Net Asset Value, offering, and redemption price per share $ 14.78 $ 12.82 $ 15.53 $ 22.84 Net Assets $191,939,879 $122,393,882 $62,224,628 $362,532,093 Shares of beneficial interest outstanding with no par value 12,987,534 9,543,728 4,005,934 15,874,810
The accompanying notes are an integral part of these financial statements. 26 & 27 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM FINANCIAL INFORMATION - -------------------------------------------------- STATEMENT OF OPERATIONS For the six months ended June 30, 2003 (unaudited) All numbers in thousands - --------------------------------------------------
THE DIVERSIFIED EMERGING INFORMATION GROWTH GROWTH AGE FUND(R) INVESTMENT INCOME Interest $ 908 $ 490 $ 26 Dividends 677 232 1 Other income -- -- -- Withholding taxes on foreign dividends (4) (1) -- - ----------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 1,581 721 27 - ----------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fees 2,763 6,649 390 Distribution fees 691 1,662 98 Transfer agent fees 530 1,447 71 Custodian fees 53 75 11 Accounting/administrative service fees 294 511 47 Shareholder reports 179 443 21 Professional fees 85 271 12 Registration fees 23 1 5 Interest expense 16 7 -- Trustees' fees and expenses 24 60 3 Other expense 18 73 2 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 4,676 11,199 660 - ----------------------------------------------------------------------------------------------------------------------------- Less: Expense waiver by adviser -- -- -- Expense offsets and other waivers (622) (1,175) (33) - ----------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES, NET 4,054 10,024 627 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/(LOSS) (2,473) (9,303) (600) - ----------------------------------------------------------------------------------------------------------------------------- REALIZED GAIN/(LOSS) AND CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS, SECURITIES SOLD SHORT AND OPTIONS WRITTEN Net realized gain/(loss) from investments and foreign currency transactions (50,976) (6,276) 6,579 Net realized gain/(loss) from securities sold short and options written 466 -- -- Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 177,495 278,330 23,218 Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- NET GAIN/(LOSS) ON INVESTMENTS AND SECURITIES SOLD SHORT AND OPTIONS WRITTEN 126,985 272,054 29,797 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $124,512 $262,751 $29,197 - ----------------------------------------------------------------------------------------------------------------------------- SMALLER RS INTERNET MIDCAP COMPANY VALUE + AGE FUND(TM) OPPORTUNITIES GROWTH GROWTH INVESTMENT INCOME Interest $ 15 $ 278 $ 41 $ 489 Dividends 2 200 40 423 Other income -- -- -- -- Withholding taxes on foreign dividends -- (3) (1) (7) - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 17 475 80 905 - ----------------------------------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fees 312 456 656 858 Distribution fees 63 114 131 214 Transfer agent fees 82 59 69 150 Custodian fees 10 18 22 21 Accounting/administrative service fees 31 55 63 101 Shareholder reports 17 28 34 51 Professional fees 8 17 19 28 Registration fees 9 11 15 7 Interest expense 1 -- -- -- Trustees' fees and expenses 2 4 4 8 Other expense 2 3 3 6 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 537 765 1,016 1,444 - ----------------------------------------------------------------------------------------------------------------------------------- Less: Expense waiver by adviser -- -- -- -- Expense offsets and other waivers (46) (53) (52) (39) - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES, NET 491 712 964 1,405 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/(LOSS) (474) (237) (884) (500) - ----------------------------------------------------------------------------------------------------------------------------------- REALIZED GAIN/(LOSS) AND CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS, SECURITIES SOLD SHORT AND OPTIONS WRITTEN Net realized gain/(loss) from investments and foreign currency transactions 5,622 2,558 (5,543) 6,184 Net realized gain/(loss) from securities sold short and options written 239 50 -- 110 Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 14,084 15,615 28,646 25,248 Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- 1 - ----------------------------------------------------------------------------------------------------------------------------------- NET GAIN/(LOSS) ON INVESTMENTS AND SECURITIES SOLD SHORT AND OPTIONS WRITTEN 19,945 18,223 23,103 31,543 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $19,471 $17,986 $22,219 $31,043 - ----------------------------------------------------------------------------------------------------------------------------------- THE GLOBAL CONTRARIAN NATURAL FUND(TM) RESOURCES PARTNERS INVESTMENT INCOME Interest $ 56 $ 45 $ 137 Dividends 878 444 1,419 Other income -- -- -- Withholding taxes on foreign dividends (27) (24) (87) - ----------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT INCOME 907 465 1,469 - ----------------------------------------------------------------------------------------------------------------------- EXPENSES Investment advisory fees 391 250 1,048 Distribution fees 98 62 239 Transfer agent fees 53 53 101 Custodian fees 9 14 20 Accounting/administrative service fees 47 31 112 Shareholder reports 23 17 57 Professional fees 14 10 26 Registration fees 10 10 39 Interest expense -- -- -- Trustees' fees and expenses 3 2 5 Other expense 1 1 3 - ----------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES 649 450 1,650 - ----------------------------------------------------------------------------------------------------------------------- Less: Expense waiver by adviser -- -- -- Expense offsets and other waivers (22) (21) (43) - ----------------------------------------------------------------------------------------------------------------------- TOTAL EXPENSES, NET 627 429 1,607 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- NET INVESTMENT INCOME/(LOSS) 280 36 (138) - ----------------------------------------------------------------------------------------------------------------------- REALIZED GAIN/(LOSS) AND CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS, SECURITIES SOLD SHORT AND OPTIONS WRITTEN Net realized gain/(loss) from investments and foreign currency transactions (20,401) 2,219 10,762 Net realized gain/(loss) from securities sold short and options written -- -- -- Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 38,149 4,632 44,649 Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- - ----------------------------------------------------------------------------------------------------------------------- NET GAIN/(LOSS) ON INVESTMENTS AND SECURITIES SOLD SHORT AND OPTIONS WRITTEN 17,748 6,851 55,411 - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $18,028 $6,887 $55,273 - -----------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 28 & 29 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM FINANCIAL INFORMATION - --------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS All numbers in thousands, six-month-ended numbers are unaudited - ---------------------------------------------------------------
DIVERSIFIED GROWTH EMERGING GROWTH ---------------------------- ---------------------------- For the Six For the For the Six For the Months Ended Year Ended Months Ended Year Ended June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ (2,473) $ (7,492) $ (9,303) $ (23,218) Net realized gain/(loss) from investments and foreign currency transactions (50,976) (253,993) (6,276) (623,114) Net realized gain/(loss) from securities sold short and options written 466 866 -- -- Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 177,495 (97,582) 278,330 (305,492) Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 124,512 (358,201) 262,751 (951,824) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- -- -- Realized gain on investments and securities sold short -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sales of shares 250,454 800,483 1,921,567 5,150,294 Proceeds from shares issued upon merger 1 -- -- 38,047 -- Reinvestment of distributions -- -- -- -- Cost of shares redeemed (214,158) (724,777) (2,122,452) (5,364,479) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 36,296 75,706 (162,838) (214,185) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS 160,808 (282,495) 99,913 (1,166,009) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of Period 570,814 853,309 1,307,774 2,473,783 End of Period $ 731,622 $ 570,814 $ 1,407,687 $ 1,307,774 - ------------------------------------------------------------------------------------------------------------------------------------ UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS (2,473) -- (9,303) -- - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INFORMATION: SHARES Sold 17,328 47,586 98,022 222,875 Issued upon merger 1 -- -- 2,176 -- Reinvested -- -- -- -- Redeemed (15,325) (43,957) (107,153) (231,882) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) 2,003 3,629 (6,955) (9,007) - ------------------------------------------------------------------------------------------------------------------------------------ THE INFORMATION AGE FUND(R) RS INTERNET AGE FUND(TM) ----------------------------- ----------------------------- For the Six For the For the Six For the Months Ended Year Ended Months Ended Year Ended June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ (600) $ (1,175) $ (474) $ (867) Net realized gain/(loss) from investments and foreign currency transactions 6,579 (35,035) 5,622 (15,839) Net realized gain/(loss) from securities sold short and options written -- -- 239 (384) Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 23,218 (20,047) 14,084 (11,953) Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- 60 - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 29,197 (56,257) 19,471 (28,983) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- -- -- Realized gain on investments and securities sold short -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sales of shares 106,218 148,031 53,704 47,090 Proceeds from shares issued upon merger 1 -- -- -- -- Reinvestment of distributions -- -- -- -- Cost of shares redeemed (46,085) (166,519) (38,010) (52,117) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 60,133 (18,488) 15,694 (5,027) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS 89,330 (74,745) 35,165 (34,010) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of Period 50,354 125,099 35,059 69,069 End of Period $ 139,684 $ 50,354 $ 70,224 $ 35,059 - ------------------------------------------------------------------------------------------------------------------------------------ UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS (600) -- (481) (7) - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INFORMATION: SHARES Sold 10,798 16,105 12,806 12,480 Issued upon merger 1 -- -- -- -- Reinvested -- -- -- -- Redeemed (4,882) (18,042) (8,880) (13,749) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) 5,916 (1,937) 3,926 (1,269) - ------------------------------------------------------------------------------------------------------------------------------------ MIDCAP OPPORTUNITIES ------------------------------ For the Six For the Months Ended Year Ended June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ (237) $ (683) Net realized gain/(loss) from investments and foreign currency transactions 2,558 (33,135) Net realized gain/(loss) from securities sold short and options written 50 684 Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 15,615 (4,741) Net change in unrealized appreciation/depreciation on securities sold short and options written -- (14) - ------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 17,986 (37,889) - ------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- Realized gain on investments and securities sold short -- -- - ------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS -- -- - ------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Proceeds from sales of shares 21,942 82,685 Proceeds from shares issued upon merger 1 -- -- Reinvestment of distributions -- -- Cost of shares redeemed (19,296) (112,615) - ------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 2,646 (29,930) - ------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS 20,632 (67,819) - ------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of Period 88,507 156,326 End of Period $109,139 $ 88,507 - ------------------------------------------------------------------------------------------------------ UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS (237) -- - ------------------------------------------------------------------------------------------------------ OTHER INFORMATION: SHARES Sold 2,755 10,072 Issued upon merger 1 -- -- Reinvested -- -- Redeemed (2,527) (13,700) - ------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) 228 (3,628) - ------------------------------------------------------------------------------------------------------ 1 RS Aggressive Growth Fund merged with RS Emerging Growth Fund on March 7, 2003. See 6 in Notes to Financial Statements.
The accompanying notes are an integral part of these financial statements. 30 & 31 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM FINANCIAL INFORMATION - --------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS (Continued) All numbers in thousands, six-month-ended numbers are unaudited - ---------------------------------------------------------------
SMALLER COMPANY GROWTH VALUE + GROWTH ----------------------------- ---------------------------- For the Six For the For the Six For the Months Ended Year Ended Months Ended Year Ended June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ (884) $ (1,727) $ (500) $ (2,012) Net realized gain/(loss) from investments and foreign currency transactions (5,543) (19,896) 6,184 (14,531) Net realized gain/(loss) from securities sold short and options written -- -- 110 1,521 Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 28,646 (32,383) 25,248 (62,052) Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- 1 (1) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 22,219 (54,006) 31,043 (77,075) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- -- -- Realized gain on investments and securities sold short -- (4,138) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS -- (4,138) -- -- - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from sales of shares 44,836 151,511 42,594 309,756 Reinvestment of distributions -- 3,700 -- -- Cost of shares redeemed (46,528) (104,216) (52,128) (359,863) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (1,692) 50,995 (9,534) (50,107) - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS 20,527 (7,149) 21,509 (127,182) - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of Period 109,341 116,490 170,431 297,613 End of Period $ 129,868 $ 109,341 $ 191,940 $ 170,431 - ------------------------------------------------------------------------------------------------------------------------------------ UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS (884) -- (500) -- - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INFORMATION: SHARES Sold 3,343 9,820 3,419 21,329 Reinvested -- 282 -- -- Redeemed (3,572) (6,903) (4,208) (24,989) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) (229) 3,199 (789) (3,660) - ------------------------------------------------------------------------------------------------------------------------------------ THE CONTRARIAN FUND(TM) GLOBAL NATURAL RESOURCES ----------------------------- ---------------------------- For the Six For the For the Six For the Months Ended Year Ended Months Ended Year Ended June 30, 2003 Dec. 31, 2002 June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ 280 $ (251) $ 36 $ (163) Net realized gain/(loss) from investments and foreign currency transactions (20,401) 5,896 2,219 2,930 Net realized gain/(loss) from securities sold short and options written -- -- -- -- Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 38,149 (4,782) 4,632 1,334 Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 18,028 863 6,887 4,101 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- -- -- Realized gain on investments and securities sold short -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL DISTRIBUTIONS -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from sales of shares 109,305 65,468 55,859 39,470 Reinvestment of distributions -- -- -- -- Cost of shares redeemed (62,855) (75,349) (39,284) (26,585) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 46,450 (9,881) 16,575 12,885 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) IN NET ASSETS 64,478 (9,018) 23,462 16,986 - ------------------------------------------------------------------------------------------------------------------------------------ NET ASSETS Beginning of Period 57,916 66,934 38,763 21,777 End of Period $ 122,394 $ 57,916 $ 62,225 $ 38,763 - ------------------------------------------------------------------------------------------------------------------------------------ UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS 269 (11) 22 (14) - ------------------------------------------------------------------------------------------------------------------------------------ OTHER INFORMATION: SHARES Sold 9,585 6,448 3,974 3,030 Reinvested -- -- -- -- Redeemed (5,686) (7,418) (2,833) (2,050) - ------------------------------------------------------------------------------------------------------------------------------------ NET INCREASE/(DECREASE) 3,899 (970) 1,141 980 - ------------------------------------------------------------------------------------------------------------------------------------ PARTNERS ------------------------------ For the Six For the Months Ended Year Ended June 30, 2003 Dec. 31, 2002 OPERATIONS Net investment income/(loss) $ (138) $ (832) Net realized gain/(loss) from investments and foreign currency transactions 10,762 (1,652) Net realized gain/(loss) from securities sold short and options written -- -- Net change in unrealized appreciation/depreciation on investments and on translation of assets and liabilities in foreign currency 44,649 1,740 Net change in unrealized appreciation/depreciation on securities sold short and options written -- -- - -------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 55,273 (744) - -------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO SHAREHOLDERS Net investment income -- -- Realized gain on investments and securities sold short -- (410) - -------------------------------------------------------------------------------------------------------- TOTAL DISTRIBUTIONS -- (410) - -------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Net proceeds from sales of shares 297,039 160,523 Reinvestment of distributions -- 393 Cost of shares redeemed (103,247) (117,862) - -------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS 193,792 43,054 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) IN NET ASSETS 249,065 41,900 - -------------------------------------------------------------------------------------------------------- NET ASSETS Beginning of Period 113,467 71,567 End of Period $ 362,532 $ 113,467 - -------------------------------------------------------------------------------------------------------- UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) INCLUDED IN NET ASSETS (317) (179) - -------------------------------------------------------------------------------------------------------- OTHER INFORMATION: SHARES Sold 14,808 8,926 Reinvested -- 22 Redeemed (5,299) (6,633) - -------------------------------------------------------------------------------------------------------- NET INCREASE/(DECREASE) 9,509 2,315 - --------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements. 32 & 33 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM FINANCIAL INFORMATION - ------------------------------------- FINANCIAL HIGHLIGHTS Six-month-ended numbers are unaudited - -------------------------------------
Distributions Distributions Net Net Realized From Net From Net Net Asset Value, Investment and Unrealized Total Investment Realized Beginning of Period Income/(Loss) Gain/(Loss) Operations Income Capital Gains DIVERSIFIED GROWTH Six Months Ended 6/30/03 $14.16 $(0.06) $ 3.19 $ 3.13 $ -- $ -- Year Ended 12/31/02 23.26 (0.19) (8.91) (9.10) -- -- Year Ended 12/31/01 22.83 (0.18) 0.61 0.43 -- -- Year Ended 12/31/00 32.99 (0.25) (8.69) (8.94) -- (1.22) Year Ended 12/31/99 15.89 -- 22.58 22.58 -- (5.48) Year Ended 12/31/98 3 14.04 (0.19) 2.43 2.24 -- (0.39) - ------------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Six Months Ended 6/30/03 19.15 (0.15) 3.94 3.79 -- -- Year Ended 12/31/02 32.00 (0.34) (12.51) (12.85) -- -- Year Ended 12/31/01 44.02 (0.29) (11.73) (12.02) -- -- Year Ended 12/31/00 60.67 (0.47) (14.74) (15.21) -- (1.44) Year Ended 12/31/99 22.95 0.14 40.89 41.03 -- (3.31) Year Ended 12/31/98 3 18.71 (0.20) 5.32 5.12 -- (0.88) - ------------------------------------------------------------------------------------------------------------------------------- THE INFORMATION AGE FUND(R) Six Months Ended 6/30/03 7.55 (0.05) 3.60 3.55 -- -- Year Ended 12/31/02 14.53 (0.18) (6.80) (6.98) -- -- Year Ended 12/31/01 19.01 (0.14) (4.05) (4.19) -- (0.29) Year Ended 12/31/00 35.79 (0.40) (12.05) (12.45) -- (4.33) Year Ended 12/31/99 17.96 -- 21.72 21.72 -- (3.89) Year Ended 12/31/98 3 11.80 (0.20) 6.36 6.16 -- -- - ------------------------------------------------------------------------------------------------------------------------------- RS INTERNET AGE FUND(TM) Six Months Ended 6/30/03 3.27 (0.03) 1.56 1.53 -- -- Year Ended 12/31/02 5.76 (0.08) (2.41) (2.49) -- -- Year Ended 12/31/01 6.53 (0.05) (0.72) (0.77) -- -- Year Ended 12/31/00 12.18 (0.20) (5.45) (5.65) -- -- Period Ended 12/31/99 2 10.00 -- 2.18 2.18 -- -- - ------------------------------------------------------------------------------------------------------------------------------- MIDCAP OPPORTUNITIES Six Months Ended 6/30/03 7.30 (0.02) 1.56 1.54 -- -- Year Ended 12/31/02 9.92 (0.06) (2.56) (2.62) -- -- Year Ended 12/31/01 11.65 0.10 (1.73) (1.63) (0.10) -- Year Ended 12/31/00 15.92 (0.02) (1.09) (1.11) (0.02) (3.14) Year Ended 12/31/99 14.04 0.04 6.95 6.99 (0.05) (5.06) Year Ended 12/31/98 3 13.52 0.14 1.34 1.48 (0.19) (0.77) Net Ratio Gross Ratio Net Ratio of Net Asset Net Assets of Expenses of Expenses Net Investment Value, End Total End of to Average to Average Income/(Loss) to of Period Return 1 Period (000s) Net Assets 1 Net Assets 1 Average Net Assets 1 DIVERSIFIED GROWTH Six Months Ended 6/30/03 $17.29 22.10% $ 731,622 1.46% 1.69% (0.90)% Year Ended 12/31/02 14.16 (39.12)% 570,814 1.50% 1.69% (1.11)% Year Ended 12/31/01 23.26 1.88% 853,309 1.52% 1.71% (1.03)% Year Ended 12/31/00 22.83 (26.91)% 567,888 1.51% 1.66% (1.01)% Year Ended 12/31/99 32.99 150.21% 304,746 1.84% 1.89% (1.40)% Year Ended 12/31/98 3 15.89 16.28% 69,031 1.89% 1.95% (1.29)% - ---------------------------------------------------------------------------------------------------------------------------- EMERGING GROWTH Six Months Ended 6/30/03 22.94 19.79% 1,407,687 1.50% 1.68% (1.40)% Year Ended 12/31/02 19.15 (40.16)% 1,307,774 1.53% 1.68% (1.35)% Year Ended 12/31/01 32.00 (27.31)% 2,473,783 1.37% 1.59% (0.79)% Year Ended 12/31/00 44.02 (25.04)% 3,867,028 1.29% 1.50% (0.82)% Year Ended 12/31/99 60.67 182.56% 3,579,620 1.51% 1.51% (1.19)% Year Ended 12/31/98 3 22.95 28.02% 403,330 1.47% 1.47% (1.03)% - ---------------------------------------------------------------------------------------------------------------------------- THE INFORMATION AGE FUND(R) Six Months Ended 6/30/03 11.10 47.02% 139,684 1.61% 1.69% (1.54)% Year Ended 12/31/02 7.55 (48.04)% 50,354 1.74% 1.80% (1.59)% Year Ended 12/31/01 14.53 (22.11)% 125,099 1.67% 1.70% (0.87)% Year Ended 12/31/00 19.01 (35.09)% 201,820 1.54% 1.54% (1.22)% Year Ended 12/31/99 35.79 126.22% 354,636 1.68% 1.69% (1.54)% Year Ended 12/31/98 3 17.96 52.20% 159,604 1.74% 1.74% (1.55)% - ---------------------------------------------------------------------------------------------------------------------------- RS INTERNET AGE FUND(TM) Six Months Ended 6/30/03 4.80 46.79% 70,224 1.96% 2.15% (1.89)% Year Ended 12/31/02 3.27 (43.23)% 35,059 2.08% 2.31% (1.96)% Year Ended 12/31/01 5.76 (11.79)% 69,069 1.85% 2.16% (0.81)% Year Ended 12/31/00 6.53 (46.39)% 100,281 1.78% 2.00% (1.52)% Period Ended 12/31/99 2 12.18 21.80% 103,585 1.76% 1.82% (1.34)% - ---------------------------------------------------------------------------------------------------------------------------- MIDCAP OPPORTUNITIES Six Months Ended 6/30/03 8.84 21.10% 109,139 1.56% 1.68% (0.52)% Year Ended 12/31/02 7.30 (26.41)% 88,507 1.53% 1.67% (0.60)% Year Ended 12/31/01 9.92 (14.01)% 156,326 1.47% 1.67% 0.87% Year Ended 12/31/00 11.65 (6.28)% 197,915 1.39% 1.58% (0.14)% Year Ended 12/31/99 15.92 56.12% 226,529 1.59% 1.67% 0.31% Year Ended 12/31/98 3 14.04 11.65% 183,910 1.30% 1.64% 1.00% Gross Ratio of Net Investment Portfolio Income/(Loss) to Turnover Average Net Assets 1 Rate 1 DIVERSIFIED GROWTH Six Months Ended 6/30/03 (1.12)% 140% Year Ended 12/31/02 (1.30)% 223% Year Ended 12/31/01 (1.22)% 255% Year Ended 12/31/00 (1.16)% 383% Year Ended 12/31/99 (1.44)% 473% Year Ended 12/31/98 3 (1.35)% 403% - ---------------------------------------------------------------- EMERGING GROWTH Six Months Ended 6/30/03 (1.58)% 70% Year Ended 12/31/02 (1.50)% 166% Year Ended 12/31/01 (1.01)% 148% Year Ended 12/31/00 (1.03)% 157% Year Ended 12/31/99 (1.19)% 177% Year Ended 12/31/98 3 (1.03)% 291% - ---------------------------------------------------------------- THE INFORMATION AGE FUND(R) Six Months Ended 6/30/03 (1.62)% 105% Year Ended 12/31/02 (1.65)% 219% Year Ended 12/31/01 (0.90)% 318% Year Ended 12/31/00 (1.22)% 185% Year Ended 12/31/99 (1.55)% 182% Year Ended 12/31/98 3 (1.55)% 224% - ---------------------------------------------------------------- RS INTERNET AGE FUND(TM) Six Months Ended 6/30/03 (2.08)% 113% Year Ended 12/31/02 (2.19)% 203% Year Ended 12/31/01 (1.12)% 315% Year Ended 12/31/00 (1.74)% 238% Period Ended 12/31/99 2 (1.40)% 2% - ---------------------------------------------------------------- MIDCAP OPPORTUNITIES Six Months Ended 6/30/03 (0.64)% 156% Year Ended 12/31/02 (0.74)% 401% Year Ended 12/31/01 0.67% 409% Year Ended 12/31/00 (0.33)% 542% Year Ended 12/31/99 0.23% 408% Year Ended 12/31/98 3 0.65% 212%
See notes to Financial Highlights on page 37. The accompanying notes are an integral part of these financial statements. 34 & 35 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM FINANCIAL INFORMATION - ------------------------------------- FINANCIAL HIGHLIGHTS (Continued) Six-month-ended numbers are unaudited - -------------------------------------
Distributions Distributions Net Net Realized From Net From Net Net Asset Value, Investment and Unrealized Total Investment Realized Beginning of Period Income/(Loss) Gain/(Loss) Operations Income Capital Gains SMALLER COMPANY GROWTH Six Months Ended 6/30/03 $12.79 $(0.11) $ 2.94 $ 2.83 $ -- $ -- Year Ended 12/31/02 21.78 (0.20) (8.30) (8.50) -- (0.49) Year Ended 12/31/01 20.69 (0.21) 1.90 1.69 -- (0.60) Year Ended 12/31/00 22.34 (0.33) 1.24 0.91 -- (2.56) Year Ended 12/31/99 14.26 -- 8.08 8.08 -- -- Year Ended 12/31/98 3 14.35 (0.21) 0.12 (0.09) -- -- - ------------------------------------------------------------------------------------------------------------------------------- VALUE + GROWTH Six Months Ended 6/30/03 12.37 (0.04) 2.45 2.41 -- -- Year Ended 12/31/02 17.07 (0.15) (4.55) (4.70) -- -- Year Ended 12/31/01 24.62 (0.21) (4.80) (5.01) -- (2.54) Year Ended 12/31/00 30.43 (0.33) (3.14) (3.47) -- (2.34) Year Ended 12/31/99 25.92 -- 7.16 7.16 -- (2.65) Year Ended 12/31/98 3 23.18 (0.25) 6.33 6.08 -- (3.34) - ------------------------------------------------------------------------------------------------------------------------------- THE CONTRARIAN FUND(TM) Six Months Ended 6/30/03 10.26 0.03 2.53 2.56 -- -- Year Ended 12/31/02 10.12 (0.05) 0.19 0.14 -- -- Year Ended 12/31/01 11.03 (0.07) (0.84) (0.91) -- -- Year Ended 12/31/00 10.00 0.02 1.01 1.03 -- -- Year Ended 12/31/99 7.23 0.20 2.57 2.77 -- -- Year Ended 12/31/98 3 11.61 (0.08) (3.72) (3.80) -- (0.58) - ------------------------------------------------------------------------------------------------------------------------------- GLOBAL NATURAL RESOURCES Six Months Ended 6/30/03 13.53 0.01 1.99 2.00 -- -- Year Ended 12/31/02 11.56 (0.06) 2.03 1.97 -- -- Year Ended 12/31/01 11.49 (0.09) 0.16 0.07 -- -- Year Ended 12/31/00 9.13 (0.06) 2.42 2.36 -- -- Year Ended 12/31/99 7.46 (0.01) 1.68 1.67 -- -- Year Ended 12/31/98 3 11.67 (0.07) (3.95) (4.02) -- (0.19) - ------------------------------------------------------------------------------------------------------------------------------- PARTNERS Six Months Ended 6/30/03 17.82 0.01 5.01 5.02 -- -- Year Ended 12/31/02 17.67 (0.11) 0.33 0.22 -- (0.07) Year Ended 12/31/01 15.72 0.04 2.57 2.61 -- (0.66) Year Ended 12/31/00 11.96 0.09 3.67 3.76 -- -- Year Ended 12/31/99 11.53 (0.04) 0.47 0.43 -- -- Year Ended 12/31/98 3 16.49 (0.04) (4.31) (4.35) (0.38) (0.23) Net Ratio Gross Ratio Net Ratio of Net Asset Net Assets of Expenses of Expenses Net Investment Value, End Total End of to Average to Average Income/(Loss) to of Period Return 1 Period (000s) Net Assets 1 Net Assets 1 Average Net Assets 1 SMALLER COMPANY GROWTH Six Months Ended 6/30/03 $15.62 22.13% $129,868 1.83% 1.93% (1.69)% Year Ended 12/31/02 12.79 (39.07)% 109,341 1.81% 1.95% (1.52)% Year Ended 12/31/01 21.78 8.31% 116,490 1.66% 1.97% (1.10)% Year Ended 12/31/00 20.69 4.44% 106,349 1.67% 1.93% (1.41)% Year Ended 12/31/99 22.34 56.66% 103,312 1.92% 1.97% (1.67)% Year Ended 12/31/98 3 14.26 (0.63)% 94,723 1.91% 2.01% (1.46)% - --------------------------------------------------------------------------------------------------------------------------- VALUE + GROWTH Six Months Ended 6/30/03 14.78 19.48% 191,940 1.64% 1.69% (0.58)% Year Ended 12/31/02 12.37 (27.53)% 170,431 1.62% 1.67% (0.87)% Year Ended 12/31/01 17.07 (20.43)% 297,613 1.60% 1.61% (0.96)% Year Ended 12/31/00 24.62 (11.09)% 482,194 1.53% 1.53% (1.05)% Year Ended 12/31/99 30.43 28.43% 673,900 1.59% 1.59% (1.20)% Year Ended 12/31/98 3 25.92 27.44% 677,505 1.46% 1.46% (0.96)% - --------------------------------------------------------------------------------------------------------------------------- THE CONTRARIAN FUND(TM) Six Months Ended 6/30/03 12.82 24.95% 122,394 1.60% 1.66% 0.71% Year Ended 12/31/02 10.26 1.38% 57,916 1.67% 1.74% (0.40)% Year Ended 12/31/01 10.12 (8.25)% 66,934 2.22% 2.26% (0.59)% Year Ended 12/31/00 11.03 10.30% 91,919 2.22% 2.25% 0.19% Year Ended 12/31/99 10.00 38.31% 115,911 2.17% 2.43% (1.17)% Year Ended 12/31/98 3 7.23 (32.69)% 124,666 2.83% 2.83% (0.80)% - --------------------------------------------------------------------------------------------------------------------------- GLOBAL NATURAL RESOURCES Six Months Ended 6/30/03 15.53 14.78% 62,225 1.72% 1.80% 0.14% Year Ended 12/31/02 13.53 17.04% 38,763 1.77% 1.86% (0.55)% Year Ended 12/31/01 11.56 0.61% 21,777 1.86% 1.97% (0.58)% Year Ended 12/31/00 11.49 25.85% 29,371 1.98% 2.10% (0.53)% Year Ended 12/31/99 9.13 22.39% 22,818 2.09% 2.42% (1.72)% Year Ended 12/31/98 3 7.46 (34.45)% 23,467 1.95% 2.21% (0.69)% - --------------------------------------------------------------------------------------------------------------------------- PARTNERS Six Months Ended 6/30/03 22.84 28.17% 362,532 1.68% 1.73% (0.14)% Year Ended 12/31/02 17.82 1.23% 113,467 1.88% 1.97% (0.90)% Year Ended 12/31/01 17.67 16.72% 71,567 1.88% 2.04% (0.07)% Year Ended 12/31/00 15.72 31.44% 28,297 1.90% 2.22% 0.73% Year Ended 12/31/99 11.96 3.73% 22,374 2.13% 2.79% (1.24)% Year Ended 12/31/98 3 11.53 (27.38)% 47,936 1.88% 2.07% (0.26)% Gross Ratio of Net Investment Portfolio Income/(Loss) to Turnover Average Net Assets 1 Rate 1 SMALLER COMPANY GROWTH Six Months Ended 6/30/03 (1.80)% 105% Year Ended 12/31/02 (1.66)% 128% Year Ended 12/31/01 (1.41)% 167% Year Ended 12/31/00 (1.67)% 126% Year Ended 12/31/99 (1.72)% 90% Year Ended 12/31/98 3 (1.56)% 108% - -------------------------------------------------------------- VALUE + GROWTH Six Months Ended 6/30/03 (0.63)% 158% Year Ended 12/31/02 (0.92)% 346% Year Ended 12/31/01 (0.97)% 172% Year Ended 12/31/00 (1.05)% 71% Year Ended 12/31/99 (1.20)% 80% Year Ended 12/31/98 3 (0.96)% 190% - -------------------------------------------------------------- THE CONTRARIAN FUND(TM) Six Months Ended 6/30/03 0.66% 51% Year Ended 12/31/02 (0.47)% 125% Year Ended 12/31/01 (0.63)% 131% Year Ended 12/31/00 0.16% 117% Year Ended 12/31/99 (1.43)% 86% Year Ended 12/31/98 3 (0.80)% 39% - -------------------------------------------------------------- GLOBAL NATURAL RESOURCES Six Months Ended 6/30/03 0.06% 52% Year Ended 12/31/02 (0.64)% 159% Year Ended 12/31/01 (0.69)% 167% Year Ended 12/31/00 (0.65)% 159% Year Ended 12/31/99 (2.05)% 140% Year Ended 12/31/98 3 (0.96)% 63% - -------------------------------------------------------------- PARTNERS Six Months Ended 6/30/03 (0.21)% 55% Year Ended 12/31/02 (0.99)% 166% Year Ended 12/31/01 (0.23)% 198% Year Ended 12/31/00 0.41% 134% Year Ended 12/31/99 (1.90)% 84% Year Ended 12/31/98 3 (0.46)% 73% Distributions reflect actual per-share amounts distributed for the period. 1 Ratios for periods less than one year have been annualized, except for total return and portfolio turnover rate. 2 RS Internet Age Fund(TM) shares were first issued on December 1, 1999. 3 Per-share data has been determined by using the average number of shares outstanding throughout the period.
See notes to Financial Highlights on page 37. The accompanying notes are an integral part of these financial statements. 36 & 37 | CALL 1-800-766-FUND WWW.RSINVESTMENTS.COM NOTES TO FINANCIAL STATEMENTS The RS Mutual Funds (each a "Fund," collectively the "Funds") are series of RS Investment Trust (the "Trust"), a Massachusetts business trust organized on May 11, 1987. The Funds are registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as open-end management investment companies. The Trust currently offers 11 portfolios. All of the Funds are registered as diversified funds, other than the RS Partners Fund which is registered as a nondiversified fund. Each Fund consists of a single class of shares. Financial statements for the RS Money Market Fund for the period ended June 30, 2003, are issued separately. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES The following policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. A. INVESTMENT VALUATIONS Marketable securities are valued at the last sale price on the principal exchange or market on which they are traded; or, if there were no sales that day, at the mean between the closing bid and asked prices. Securities traded on the Nasdaq Stock Market, Inc. ("Nasdaq") are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sale price. Short-term investments that will mature in 60 days or less are stated at amortized cost, which approximates market value. Foreign securities are generally denominated in foreign currencies. The currencies are translated into U.S. dollars by using the exchange rates quoted at the close of the London Stock Exchange prior to when each Fund's net asset value is next determined. Securities for which market quotations are not readily available are valued at their fair value as determined in accordance with the guidelines and procedures adopted by the Funds' Board of Trustees. The guidelines and procedures use fundamental valuation methods that include, but are not limited to, the analysis of: the effect of any restrictions on the sale of the security, product development and trends of the security's issuer, changes in the industry and other competing companies, significant changes in the issuer's financial position, and any other event that could have a significant impact on the value of the security. The approximate percentages of the Funds' investments valued using these guidelines and procedures at June 30, 2003, were as follows: - -------------------------------------------------------------------------------- Fund Percentage Fund Percentage Diversified Growth 0.2% Smaller Company Growth -- - -------------------------------------------------------------------------------- Emerging Growth -- Value + Growth -- - -------------------------------------------------------------------------------- The Information Age Fund(R) -- The Contrarian Fund(TM) 2.0% - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- Global Natural Resources 1.1% - -------------------------------------------------------------------------------- MidCap Opportunities -- Partners 0.1% - -------------------------------------------------------------------------------- In their normal course of business, some of the Funds may invest a significant portion of their assets in companies concentrated within a number of industries. Accordingly, the performance of these Funds may be subject to a greater risk of market fluctuation than that of a fund invested in a wider spectrum of market or industrial sectors. Options and warrants for which market quotations are not readily available are priced using the modified Black-Scholes Valuation Formula. The Black-Scholes Valuation Formula values an option or warrant by determining the differential between the exercise price of the option or warrant and the current price of the underlying stock, based on a number of factors. These factors include, but are not limited to, the current price of the underlying stock, the exercise price of the option or warrant, the time to expiration, the assumed riskless rate of return, the compounded rate of return on the stock, and the standard deviation of the return on the stock. This valuation method is in accordance with the guidelines and procedures adopted by the Funds' Board of Trustees. B. FEDERAL INCOME TAXES The Funds intend to continue complying with the requirements of the Internal 38 | CALL 1-800-766-FUND Revenue Code to qualify as regulated investment companies, and to distribute all net investment income and realized net capital gains, if any, to shareholders. Therefore, the Funds do not expect to be subject to income tax, and no provision for such tax has been made. C. SECURITIES TRANSACTIONS Securities transactions are accounted for on the date securities are purchased, sold, or sold short (trade date). Realized gains or losses on securities transactions are determined on the basis of specific identification. D. FOREIGN CURRENCY TRANSLATION The accounting records of the Funds are maintained in U.S. dollars. Investment securities and all other assets and liabilities of the Funds denominated in a foreign currency are translated into U.S. dollars at the exchange rate quoted each day. Purchases and sales of securities, income receipts, and expense payments are translated into U.S. dollars at the exchange rate in effect on the dates of the respective transactions. The Funds do not isolate the portion of the fluctuations on investments resulting from changes in foreign currency exchange rates from the fluctuations in market prices of investments held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. E. INVESTMENT INCOME Dividend income is recorded on the ex-dividend date, except certain cash dividends from foreign securities, which are recorded as soon as the Funds are informed of the ex-dividend date. Interest income, which includes accretion, is accrued and recorded daily. F. EXPENSES Most expenses of the Trust can be directly attributed to a specific Fund. Expenses that cannot be directly attributed to a specific Fund are apportioned among all the Funds in the Trust, based on relative net assets. Expense offsets and other waivers represent expense offsets due to securities lending and the waiver of fees by the Funds' accounting agent/administrator and custodian. (See Note 5.) G. DISTRIBUTIONS TO SHAREHOLDERS Dividends to shareholders are recorded on the ex-dividend date. See charts below for the tax character of distributions from realized gains during the years ended December 31, 2002 and December 31, 2001. - -------------------------------------------------------------------------------- 2002 2001 Ordinary Ordinary Income Income Fund Total Total Diversified Growth $ -- $ -- - -------------------------------------------------------------------------------- Emerging Growth -- -- - -------------------------------------------------------------------------------- The Information Age Fund(R) -- -- - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- -- - -------------------------------------------------------------------------------- MidCap Opportunities -- 1,497,481 - -------------------------------------------------------------------------------- Smaller Company Growth 4,028,215 -- - -------------------------------------------------------------------------------- Value + Growth -- -- - -------------------------------------------------------------------------------- The Contrarian Fund(TM) -- -- - -------------------------------------------------------------------------------- Global Natural Resources -- -- - -------------------------------------------------------------------------------- Partners -- 1,833,415 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 2002 2001 Long-Term Long-Term Capital Gain Capital Gain Fund Total Total Diversified Growth $ -- $ -- - -------------------------------------------------------------------------------- Emerging Growth -- -- - -------------------------------------------------------------------------------- The Information Age Fund(R) -- 2,587,440 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- -- - -------------------------------------------------------------------------------- MidCap Opportunities -- -- - -------------------------------------------------------------------------------- Smaller Company Growth 110,220 2,812,680 - -------------------------------------------------------------------------------- Value + Growth -- 41,009,441 - -------------------------------------------------------------------------------- The Contrarian Fund(TM) -- -- - -------------------------------------------------------------------------------- Global Natural Resources -- -- - -------------------------------------------------------------------------------- Partners 410,066 773,398 - -------------------------------------------------------------------------------- Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments of income and gains on various investment securities held by the Funds, timing differences, and differing characterizations of distributions made by the Funds. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid-in capital. Undistributed net investment income and accumulated undistributed net realized gain/(loss) on investments and foreign currency transactions may WWW.RSINVESTMENTS.COM | 39 NOTES TO FINANCIAL STATEMENTS include temporary book and tax differences, which will reverse in a subsequent period. See chart below for tax basis of accumulated realized gains as of December 31, 2002, which is the most recently completed tax year. - -------------------------------------------------------------------------------- Undistributed Undistributed Ordinary Long-Term Fund Income Gains Diversified Growth $ -- $ -- - -------------------------------------------------------------------------------- Emerging Growth -- -- - -------------------------------------------------------------------------------- The Information Age Fund(R) -- -- - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- -- - -------------------------------------------------------------------------------- MidCap Opportunities -- -- - -------------------------------------------------------------------------------- Smaller Company Growth -- -- - -------------------------------------------------------------------------------- Value + Growth -- -- - -------------------------------------------------------------------------------- The Contrarian Fund(TM) -- -- - -------------------------------------------------------------------------------- Global Natural Resources -- -- - -------------------------------------------------------------------------------- Partners -- -- - -------------------------------------------------------------------------------- During any particular year, net realized gains from investment transactions, in excess of available capital loss carryforwards, would be taxable to the Funds if not distributed and, therefore, would be distributed to shareholders annually. See chart below for capital loss carryovers available to the Funds at December 31, 2002, which is the most recently completed tax year. During the year ended December 31, 2002, the Funds utilized capital loss carryovers as follows: - -------------------------------------------------------------------------------- Fund Diversified Growth $ -- - -------------------------------------------------------------------------------- Emerging Growth -- - -------------------------------------------------------------------------------- The Information Age Fund(R) -- - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- - -------------------------------------------------------------------------------- MidCap Opportunities -- - -------------------------------------------------------------------------------- Smaller Company Growth -- - -------------------------------------------------------------------------------- Value + Growth -- - -------------------------------------------------------------------------------- The Contrarian Fund(TM) 5,924,115 - -------------------------------------------------------------------------------- Global Natural Resources 3,007,788 - -------------------------------------------------------------------------------- Partners -- - -------------------------------------------------------------------------------- Under the current income tax law, net capital and currency losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. For the year ended December 31, 2002, the Funds elected to defer net capital and currency losses as follows: - -------------------------------------------------------------------------------- Fund Diversified Growth $49,060,620 - -------------------------------------------------------------------------------- Emerging Growth -- - -------------------------------------------------------------------------------- The Information Age Fund(R) 2,949,772 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 599,764 - -------------------------------------------------------------------------------- MidCap Opportunities 361,131 - -------------------------------------------------------------------------------- Smaller Company Growth 2,932,088 - -------------------------------------------------------------------------------- Value + Growth -- - -------------------------------------------------------------------------------- The Contrarian Fund(TM) 10,624 - -------------------------------------------------------------------------------- Global Natural Resources 13,581 - -------------------------------------------------------------------------------- Partners 12,111 - --------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------- CAPITAL LOSS CARRYOVERS (see Note 1g) Expiring -------------------------------------------------------------------------------------------------- Fund 2005 2006 2007 2008 2009 2010 Total Diversified Growth $ -- $ -- $ -- $16,606,435 $ 147,321,522 $196,604,455 $ 360,532,412 - -------------------------------------------------------------------------------------------------------------------------------- Emerging Growth -- -- -- -- 1,375,277,306 710,284,093 2,085,561,399 - -------------------------------------------------------------------------------------------------------------------------------- The Information Age Fund(R) -- -- -- -- 33,466,951 30,992,871 64,459,822 - -------------------------------------------------------------------------------------------------------------------------------- RS Internet Age Fund(TM) -- -- -- 38,065,629 113,383,070 17,305,520 168,754,219 - -------------------------------------------------------------------------------------------------------------------------------- MidCap Opportunities -- -- -- -- 33,683,576 31,217,416 64,900,992 - -------------------------------------------------------------------------------------------------------------------------------- Smaller Company Growth -- -- -- -- -- 16,318,189 16,318,189 - -------------------------------------------------------------------------------------------------------------------------------- Value + Growth -- -- -- -- -- 12,722,790 12,722,790 - -------------------------------------------------------------------------------------------------------------------------------- The Contrarian Fund(TM) -- 42,657,937 67,677,287 9,344,761 7,190,816 -- 126,870,801 - -------------------------------------------------------------------------------------------------------------------------------- Global Natural Resources -- 2,991,238 10,576,876 -- -- -- 13,568,114 - -------------------------------------------------------------------------------------------------------------------------------- Partners 956,999 -- -- -- -- 1,564,686 2,521,685 - --------------------------------------------------------------------------------------------------------------------------------
40 | CALL 1-800-766-FUND H. CAPITAL ACCOUNTS Due to the timing of dividend distributions and the differences in accounting for income and realized gains/(losses) for financial statement and federal income tax purposes, the fiscal year in which amounts are distributed may differ from the year in which the income and realized gains/(losses) were recorded by the Funds. I. TEMPORARY BORROWINGS All Funds within the Trust, excluding the RS Money Market Fund, share in a $25 million committed revolving credit/overdraft protection facility from PNC Bank for temporary purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. In addition, the RS Emerging Growth Fund and RS Diversified Growth Fund have access to separate $25 million facilities from PNC Bank, with the same terms. Interest is calculated based on the market rates at the time of borrowing. Each Fund may borrow up to the lesser of one-third of its total assets (including amounts borrowed) or any lower limit defined in the Fund's Statement of Additional Information or the Prospectus. - -------------------------------------------------------------------------------- Amount Average Outstanding Average Interest Fund at 6/30/03 Borrowing* Rate (%) Diversified Growth $ -- $1,521,058 2.13 - -------------------------------------------------------------------------------- Emerging Growth -- 686,151 2.11 - -------------------------------------------------------------------------------- The Information Age Fund(R) -- 11,829 2.11 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 3,512,633 236,286 2.00 - -------------------------------------------------------------------------------- MidCap Opportunities -- -- -- - -------------------------------------------------------------------------------- Smaller Company Growth -- -- -- - -------------------------------------------------------------------------------- Value + Growth -- 21,852 2.12 - -------------------------------------------------------------------------------- The Contrarian Fund(TM) -- -- -- - -------------------------------------------------------------------------------- Global Natural Resources -- -- -- - -------------------------------------------------------------------------------- Partners -- -- -- - -------------------------------------------------------------------------------- * For the six months ended June 30, 2003. NOTE 2 CAPITAL SHARES A. TRANSACTIONS The Funds have authorized an unlimited number of shares of beneficial interest with no par value. Transactions in capital shares for the Funds are shown in detail in the STATEMENT OF CHANGES IN NET ASSETS (see pages 30-33). NOTE 3 TRANSACTIONS WITH AFFILIATES A. ADVISORY FEES AND EXPENSE LIMITATION Under the terms of advisory agreements, which are generally reviewed and approved annually by the Board of Trustees, the Funds pay RS Investment Management, L.P. ("RS Investments"), an investment advisory fee calculated at an annual rate of the average daily net assets of the Funds as disclosed below: - -------------------------------------------------------------------------------- Investment Fund Advisory Fees Diversified Growth 1.00% - -------------------------------------------------------------------------------- Emerging Growth 1.00% - -------------------------------------------------------------------------------- The Information Age Fund(R) 1.00% - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 1.25% - -------------------------------------------------------------------------------- MidCap Opportunities 1.00% - -------------------------------------------------------------------------------- Smaller Company Growth 1.25% - -------------------------------------------------------------------------------- Value + Growth 1.00% - -------------------------------------------------------------------------------- The Contrarian Fund(TM) 1.00% - -------------------------------------------------------------------------------- Global Natural Resources 1.00% - -------------------------------------------------------------------------------- Partners 1.00% - -------------------------------------------------------------------------------- RS Investments may voluntarily agree to bear operating expenses of a Fund to the extent they exceed a stated limit, either by reimbursement of expenses to the Fund or by means of an advisory fee waiver. B. COMPENSATION OF TRUSTEES AND OFFICERS Trustees and officers of the Funds who are interested persons of RS Investments, as defined in the 1940 Act, receive no compensation from the Funds. Trustees of the Funds who are not interested persons of RS Investments, as defined in the 1940 Act, received compensation and reimbursement of expenses for the period ended June 30, 2003. Each of the disinterested Trustees received compensation from the Trust for the period ended June 30, 2003 in the amount of $30,000; collectively the disinterested trustees received compensation in the amount of $90,000. Under a Deferred Compensation Plan (the Plan) adopted May 6, 2002, a disinterested Trustee may elect to defer receipt of all, or a portion, of his annual compensation. The amount of a Fund's deferred compensation obligation to a Trustee is determined by adjusting the amount of the deferred compensation to reflect the WWW.RSINVESTMENTS.COM | 41 NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------------------------------------------------------- TAX COST OF INVESTMENTS (see Note 4a below) Net Unrealized Appreciation/ Gross Unrealized Gross Unrealized Cost of Investments (Depreciation) on Investments Appreciation Depreciation Diversified Growth $ 682,014,331 $133,850,480 $157,420,075 $23,569,595 - -------------------------------------------------------------------------------------------------------------------------------- Emerging Growth 1,268,292,292 337,947,632 346,222,603 8,274,971 - -------------------------------------------------------------------------------------------------------------------------------- The Information Age Fund(R) 121,366,891 24,731,818 26,949,181 2,217,363 - -------------------------------------------------------------------------------------------------------------------------------- RS Internet Age Fund(TM) 63,843,046 17,349,318 18,377,080 1,027,762 - -------------------------------------------------------------------------------------------------------------------------------- MidCap Opportunities 98,309,920 17,167,976 17,640,739 472,763 - -------------------------------------------------------------------------------------------------------------------------------- Smaller Company Growth 121,215,236 24,064,044 24,652,970 588,926 - -------------------------------------------------------------------------------------------------------------------------------- Value + Growth 168,258,121 31,633,785 32,543,425 909,640 - -------------------------------------------------------------------------------------------------------------------------------- The Contrarian Fund(TM) 109,424,112 17,613,753 18,714,552 1,100,799 - -------------------------------------------------------------------------------------------------------------------------------- Global Natural Resources 59,753,238 5,885,545 6,921,472 1,035,927 - -------------------------------------------------------------------------------------------------------------------------------- Partners 312,659,554 52,558,238 54,542,956 1,984,718 - -------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------
investment return of one or more RS Funds designated for the purpose by the Trustee. A Fund may cover its deferred compensation obligation to a Trustee by investing in one or more of such designated Funds. Each Fund's liability for deferred compensation to a Trustee is adjusted periodically to reflect the investment performance of the Funds designated by the Trustee. Deferred amounts remain in a Fund until distributed in accordance with the Plan. Trustees' fees in the accompanying financial statements include the current fees, either paid in cash or deferred, and the net increase or decrease in the value of the deferred amounts. C. DISTRIBUTION FEES PFPC Distributors, Inc. ("PFPC"), a nonaffiliate of RS Investments, is the Funds' distributor. The Funds have entered into agreements with PFPC for distribution services with respect to their shares and have adopted Plans of Distribution pursuant to Rule 12b-1 under the 1940 Act, whose continuance is reviewed annually by the Funds' Board of Trustees. Under these Plans, PFPC is compensated for services in such capacity, including its expenses in connection with the promotion and distribution of each Fund, at an annual rate of 0.25% of the Fund's average daily net assets. RS Investments or its affiliates provide certain services to PFPC in respect of the promotion of the Funds' shares and are compensated by PFPC for those services. NOTE 4 INVESTMENTS A. TAX BASIS OF INVESTMENTS The cost of investments for federal income tax purposes at June 30, 2003, for each Fund is listed above. The net unrealized appreciation/(depreciation) on investments and securities sold short, which consists of gross unrealized appreciation and depreciation, is also disclosed in the chart above. B. INVESTMENT PURCHASES AND SALES The cost of investments purchased and the proceeds from investments sold (excluding options, securities sold short, and short-term investments) at June 30, 2003, were as follows: - -------------------------------------------------------------------------------- Cost of Investments Proceeds from Fund Purchased Investments Sold Diversified Growth $786,558,032 $ 782,903,093 - -------------------------------------------------------------------------------- Emerging Growth 868,897,901 1,114,171,645 - -------------------------------------------------------------------------------- The Information Age Fund(R) 128,431,116 79,269,349 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 74,976,521 53,935,177 - -------------------------------------------------------------------------------- MidCap Opportunities 129,624,700 132,082,490 - -------------------------------------------------------------------------------- Smaller Company Growth 104,874,890 117,993,497 - -------------------------------------------------------------------------------- Value + Growth 258,492,171 263,976,366 - -------------------------------------------------------------------------------- The Contrarian Fund(TM) 66,825,551 34,937,805 - -------------------------------------------------------------------------------- Global Natural Resources 31,421,870 20,774,531 - -------------------------------------------------------------------------------- Partners 246,274,363 92,342,751 - -------------------------------------------------------------------------------- 42 | CALL 1-800-766-FUND
- ------------------------------------------------------------------------------------------------------------------------- RESTRICTED SECURITIES (see Note 4e below) Acquisition % of Funds' Fund Security Shares Cost Value Date Net Assets - ------------------------------------------------------------------------------------------------------------------------- Diversified Growth Startec Global Communications Corp. 275,000 $ 968,750 $ 0 3/26/01 - ------------------------------------------------------------------------------------------------------------------------- 968,750 0 0.00% - ------------------------------------------------------------------------------------------------------------------------- The Contrarian Fund(TM) African Minerals, Ltd. 4/25/97- 698,422 2,837,501 2,444,477 5/7/98 - ------------------------------------------------------------------------------------------------------------------------- 2,837,501 2,444,477 2.00% - ------------------------------------------------------------------------------------------------------------------------- Global Natural Resources African Minerals, Ltd. 4/25/97- 203,624 784,997 712,684 5/7/98 - ------------------------------------------------------------------------------------------------------------------------- 784,997 712,684 1.15% - -------------------------------------------------------------------------------------------------------------------------
C. FOREIGN SECURITIES Foreign securities investments involve special risks and considerations not typically associated with those of U.S. origin. These risks include, but are not limited to, revaluation of currencies; adverse political, social, and economic developments; and less reliable information about issuers. Moreover, securities of many foreign companies and markets may be less liquid and their prices more volatile than those of U.S. companies and markets. D. SHORT SALES Short sales are transactions in which a Fund sells a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to deliver to the buyer upon the short sale; the Fund then is obligated to replace the security borrowed by purchasing it in the open market at some later date. The Fund will incur a loss if the market price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund will typically realize a gain if the security declines in value between those dates. All short sales must be collateralized as required by law or agreement with the Fund's broker. The Fund maintains collateral in a segregated account consisting of cash, equities, and/or U.S. government securities sufficient to collateralize the obligation on the short positions. Only RS Internet Age Fund(TM) lists short sales among its principal investment strategies in the Trust's prospectus, which it may enter into up to a value of 25% of the Fund's total assets. For the period ended June 30, 2003, the cost of investments purchased to cover short sales and the proceeds from investments sold short in the RS Internet Age Fund(TM) were $2,227,876 and $2,467,042, respectively. During the period ended June 30, 2003, there was no dividend expense on short sales. E. RESTRICTED SECURITIES A restricted security cannot be resold to the general public without prior registration under the Securities Act of 1933. If the security is subsequently registered and resold, the issuers would typically bear the expense of all registrations at no cost to the Fund. Restricted securities are valued according to the guidelines and procedures adopted by the Funds' Board of Trustees as outlined in Note 1a, paragraph 2. See table above for restricted securities held at June 30, 2003. F. OPTIONS AND WARRANTS Options and warrants normally entitle the holder to purchase specified securities at a WWW.RSINVESTMENTS.COM |43 NOTES TO FINANCIAL STATEMENTS predetermined price during a specific period. The writer of an option grants the buyer of the option the right to purchase from (call option), or sell to (put option), the writer a designated instrument or, in the case of an index option, a notional index amount at a specified price within a specified period of time. Certain options, including options on indexes, will require cash settlement by the Fund if the option is exercised. Transactions in written options for the period ended June 30, 2003, were as follows: - -------------------------------------------------------------------------------- DIVERSIFIED GROWTH: WRITTEN OPTIONS Amount of Number of Premiums Contracts Outstanding at 12/31/02 $ -- -- Options written 2,536,859 16,570 Options expired -- -- Options exercised -- -- Options closed (2,536,859) (16,570) - -------------------------------------------------------------------------------- OUTSTANDING AT 6/30/03 $ 0 0 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- MIDCAP OPPORTUNITIES: WRITTEN OPTIONS Amount of Number of Premiums Contracts Outstanding at 12/31/02 $ -- -- Options written 210,160 862 Options expired -- -- Options exercised -- -- Options closed (210,160) (862) - -------------------------------------------------------------------------------- OUTSTANDING AT 6/30/03 $ 0 0 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- VALUE + GROWTH: WRITTEN OPTIONS Amount of Number of Premiums Contracts Outstanding at 12/31/02 $ 18,429 190 Options written 396,943 1,590 Options expired -- -- Options exercised -- -- Options closed (415,372) (1,780) - -------------------------------------------------------------------------------- OUTSTANDING AT 6/30/03 $ 0 0 - -------------------------------------------------------------------------------- NOTE 5 SECURITIES LENDING Certain Funds lend their portfolio securities. The borrower pays fees, at the Funds' direction, to service providers of those Funds, including RS Investments. Those payments are applied to offset amounts owed to the service providers by the Funds. Such amounts are shown as expense offsets and other waivers in the STATEMENT OF OPERATIONS (see pages 28-29). During the period ended June 30, 2003, the following Funds had securities lending fees as described below: - -------------------------------------------------------------------------------- Fund Fees Diversified Growth $ 524,028 - -------------------------------------------------------------------------------- Emerging Growth 1,058,813 - -------------------------------------------------------------------------------- The Information Age Fund(R) 9,987 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 27,279 - -------------------------------------------------------------------------------- MidCap Opportunities 32,511 - -------------------------------------------------------------------------------- Smaller Company Growth 28,726 - -------------------------------------------------------------------------------- Funds that lend securities receive cash as collateral in an amount at least equal to 102% of the current market value of the loaned securities. The cash collateral is substantially invested in institutional money market pooled accounts. The market value of the loaned securities is determined at the close of business of the Funds, and any additional required collateral is delivered to the Funds on the next business day. The value of loaned securities and the value of collateral at June 30, 2003, were as follows: - -------------------------------------------------------------------------------- Value of Loaned Value of Fund Securities Collateral Diversified Growth $ 96,784,497 $103,145,400 - -------------------------------------------------------------------------------- Emerging Growth 234,089,163 246,496,520 The Information Age Fund(R) 3,671,072 4,063,400 - -------------------------------------------------------------------------------- RS Internet Age Fund(TM) 5,674,840 6,610,800 MidCap Opportunities 6,590,149 7,018,600 - -------------------------------------------------------------------------------- Smaller Company Growth 13,290,756 14,061,100 - -------------------------------------------------------------------------------- 44 | CALL 1-800-766-FUND NOTE 6 FUND MERGER On March 7, 2003, RS Emerging Growth Fund acquired the assets and liabilities of RS Aggressive Growth Fund through a tax-free merger pursuant to a plan of reorganization approved by the Board of Trustees. Shareholders of RSAggressive Growth Fund approved the merger at a meeting held on January 9, 2003, and adjourned through March 3, 2003. 5,678,434 shares were voted in favor of the merger, 632,580 shares were voted against the merger, and 202,750 shares were voted to abstain. The following is a summary of shares outstanding, net assets, net asset value per share, net unrealized appreciation/(depreciation), and accumulated net realized losses, before and after the reorganization:
- ---------------------------------------------------------------------------------------------------------------------------------- BEFORE REORGANIZATION AFTER REORGANIZATION - ---------------------------------------------------------------------------------------------------------------------------------- RS Aggressive Growth RSEmerging Growth RSEmerging Growth - ---------------------------------------------------------------------------------------------------------------------------------- Shares outstanding 9,643,511 65,577,435 67,753,098 Net assets $38,046,763 $1,146,660,916 $1,184,707,679 Net asset value per share $3.95 $17.49 $17.49 Net unrealized appreciation/(depreciation) $(630,910) $2,471,161 $1,840,251 Accumulated net realized losses $(124,832,478) $(2,212,045,876) $(2,336,878,354) - ----------------------------------------------------------------------------------------------------------------------------------
WWW.RSINVESTMENTS.COM | 45 SUPPLEMENTAL INFORMATION - UNAUDITED - -------------------------- TRUSTEES INFORMATION TABLE - --------------------------
Term of Office* Name, Address Position(s) Held and Length of Principal Occupations and Age with Trust Time Served During Past 5 Years - ------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEES & PRINCIPAL OFFICERS:** G. Randall Hecht Trustee, President, Served as Trustee: CEO, RS Investments; RS Investments Principal Executive June 2001 - present; CEO, Member, RS 388 Market Street Officer May 1999 - February Investment Management San Francisco, 2001; June 1987 - Co., LLC; Formerly, COO, CA 94111 December 1997 Member of the Management 52 years old and Executive Committees, Robertson, Stephens & Company, Inc, an investment banking firm; CFO, Limited Partner, Robertson, Stephens & Company, LLC. Michael McCaffery Trustee Since May 2002 President and CEO RS Investments Stanford Management 388 Market Street Company; Formerly, San Francisco, Chairman, President & CEO, CA 94111 Robertson, Stephens 49 years old & Company, Inc., an investment banking firm. Steven M. Cohen Treasurer, Since April 1999 CFO, RS Investments; RS Investments Secretary Formerly, Trading 388 Market Street Operations Manager, San Francisco, Ziff Brothers Investments. CA 94111 36 years old Number of Portfolios in Fund complex Name, Address Overseen by Other Directorships and Age Trustee Held by Trustee - ------------------------------------------------------------------ INTERESTED TRUSTEES & PRINCIPAL OFFICERS:** G. Randall Hecht 11 N/A RS Investments 388 Market Street San Francisco, 2001; CA 94111 52 years old Michael McCaffery 11 N/A RS Investments 388 Market Street San Francisco, CA 94111 49 years old Steven M. Cohen N/A N/A RS Investments 388 Market Street San Francisco, CA 94111 36 years old
46 | CALL 1-800-766-FUND -------------------------------------- TRUSTEES INFORMATION TABLE (Continued) --------------------------------------
Term of Office* Name, Address Position(s) Held and Length of Principal Occupations and Age with Trust Time Served During Past 5 Years - ------------------------------------------------------------------------------------------------------------- DISINTERESTED TRUSTEES: Leonard B. Auerbach Trustee Since June 1987 Chairman and CEO, L, B, RS Investments A&C, Inc., a consulting 388 Market Street firm; Formerly, Managing San Francisco, Director and CEO, CA 94111 CentreCapital Group, Inc., 56 years old a member company of American International Group, Inc.; and General Partner, Tuttle & Company, a financial services company. Jerome S. Contro Trustee Since June 2001 Partner, Tango Group, RS Investments an investment company; 388 Market Street Formerly, Managing Director, San Francisco, Nuveen, an investment CA 94111 company. 46 years old John W. Glynn, Jr. Trustee Since July 1997 President, Glynn Capital RS Investments Management. 388 Market Street San Francisco, CA 94111 62 years old Number of Portfolios in Fund complex Name, Address Overseen by Other Directorships and Age Trustee Held by Trustee - ------------------------------------------------------------------- DISINTERESTED TRUSTEES: Leonard B. Auerbach 11 Sequoia RS Investments National Bank 388 Market Street San Francisco, CA 94111 56 years old Jerome S. Contro 11 N/A RS Investments 388 Market Street San Francisco, CA 94111 46 years old John W. Glynn, Jr. 11 N/A RS Investments 388 Market Street San Francisco, CA 94111 62 years old * Each Trustee shall serve during the continued lifetime of the Trust until he or she dies, resigns, is declared bankrupt or incompetent by a court of appropriate jurisdiction, or is removed, or, if sooner, until the next meeting of Shareholders called for the purpose of electing Trustees and until the election and qualification of his successor. Officers hold office at the pleasure of the Trustees. ** Interested persons as defined by the 1940 Act. The Statement of Additional Information relating to the Fund includes additional information about Trustees and is available, without charge, upon request, by writing to the Fund or calling 1-800-766-FUND (3863).
WWW.RSINVESTMENTS.COM | 47 ADMINISTRATION OFFICERS AND TRUSTEES G. RANDALL HECHT, TRUSTEE, PRESIDENT AND PRINCIPAL EXECUTIVE OFFICER LEONARD B. AUERBACH, TRUSTEE Chairman and CEO, L,B, A&C, Inc., a consulting firm JEROME S. CONTRO, TRUSTEE Partner, Tango Group JOHN W. GLYNN JR., TRUSTEE President, Glynn Capital Management MICHAEL MCCAFFERY, TRUSTEE President and CEO of Stanford Management Company STEVEN M. COHEN, TREASURER AND SECRETARY INVESTMENT ADVISER RS INVESTMENT MANAGEMENT, L.P. 388 Market Street San Francisco, CA 94111 DISTRIBUTOR PFPC DISTRIBUTORS, INC. 760 Moore Road King of Prussia, PA 19406 TRANSFER AGENT AND DISBURSING AGENT NATIONAL FINANCIAL DATA SERVICES Kansas City, MO 1-800-624-8025 CUSTODIAN PFPC TRUST COMPANY Philadelphia, PA INDEPENDENT ACCOUNTANTS PRICEWATERHOUSECOOPERS LLP San Francisco, CA LEGAL COUNSEL ROPES & GRAY Boston, MA 48 | CALL 1-800-766-FUND SR331-F 388 MARKET STREET SAN FRANCISCO CA 94111 | WWW.RSINVESTMENTS.COM | CALL 1-800-766-FUND (LOGO) RS INVESTMENTS [GRAPHIC OMITTED] ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. [RESERVED] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. [RESERVED] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))), required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 15d-15(b)), that the design and operation of such procedures are effective to provide reasonable assurance that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized, and reported within the time periods specified in the Commission's rules and forms. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) RS Investment Trust ------------------- By (Signature and Title)* /S/G. RANDALL HECHT ------------------------------------------------------- G. Randall Hecht, Principal Executive Officer Date August 15, 2003 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /S/G. RANDALL HECHT ------------------------------------------------------- G. Randall Hecht, Principal Executive Officer Date August 15, 2003 ---------------------------------------------------------------------------- By (Signature and Title)* /S/STEVEN COHEN ------------------------------------------------------- Steven Cohen, Treasurer & Chief Financial Officer Date August 15, 2003 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 ex99_302cert.txt EXHIBIT 302 CERT CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, G. Randall Hecht, certify that: 1. I have reviewed this report on Form N-CSR of RS Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [Omitted] (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 15, 2003 /S/G. RANDALL HECHT - ------------------------------- G. Randall Hecht Principal Executive Officer RS Investment Trust CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Steven M. Cohen, certify that: 1. I have reviewed this report on Form N-CSR of RS Investment Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) [Omitted] (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: August 15, 2003 /S/STEVEN COHEN - ------------------------------------- Steven Cohen Treasurer & Chief Financial Officer RS Investment Trust EX-99.906CERT 4 ex99_906cert.txt EXHIBIT 906 CERT CERTIFICATION PURSUANT TO SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned, as Principal Executive Officer of RS Investment Trust (the "Trust"), with respect to the report on Form N-CSR of the Trust for the period ended June 30, 2003 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the undersigned's knowledge: 1. such report on Form N-CSR for the period ended June 30, 2003 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such report on Form N-CSR for the period ended June 30, 2003 fairly presents, in all material respects, the financial condition and results of operations of the Trust. Dated: August 15, 2003 /S/G. RANDALL HECHT ------------------------ G. Randall Hecht Principal Executive Officer RS Investment Trust A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING, OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO RS INVESTMENT TRUST AND WILL BE RETAINED BY RS INVESTMENT TRUST AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. CERTIFICATION PURSUANT TO SECTION 1350, CHAPTER 63 OF TITLE 18, UNITED STATES CODE, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 The undersigned, as Treasurer and Chief Financial Officer of RS Investment Trust (the "Trust"), with respect to the report on Form N-CSR of the Trust for the period ended June 30, 2003 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the undersigned's knowledge: 1. such report on Form N-CSR for the period ended June 30, 2003 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such report on Form N-CSR for the period ended June 30, 2003 fairly presents, in all material respects, the financial condition and results of operations of the Trust. Dated: August 15, 2003 /S/STEVEN COHEN ------------------------ Steven Cohen Treasurer and Chief Financial Officer RS Investment Trust A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING, OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO RS INVESTMENT TRUST AND WILL BE RETAINED BY RS INVESTMENT TRUST AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. -----END PRIVACY-ENHANCED MESSAGE-----