N-30D 1 g02-0904.txt BOSTON PARTNERS 2002 ANNUAL REPORT [GRAPHIC OMITTED] BOSTON PARTNERS FAMILY OF FUNDS OF THE RBB FUND, INC. LARGE CAP VALUE FUND MID CAP VALUE FUND SMALL CAP VALUE FUND II ALL-CAP VALUE FUND LONG/SHORT EQUITY FUND ANNUAL REPORT AUGUST 31, 2002 (LOGO) BP BOSTON PARTNERS ASSET MANAGEMENT, L.P. -------------------------------------------- ONE PHILOSOPHY o ONE CULTURE o ONE FOCUS [GRAPHIC OMITTED] BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LARGE CAP VALUE FUND MID CAP VALUE FUND SMALL CAP VALUE FUND II ALL-CAP VALUE FUND LONG/SHORT EQUITY FUND PRIVACY NOTICE (UNAUDITED) The Boston Partners Family of Funds of The RBB Fund, Inc. (the "Fund") is committed to protecting the confidentiality and security of your private investment records and personal information. Our policies and procedures are designed to safeguard your information and to permit only appropriate and authorized access to and use of this information. In order to carry out the functions necessary to service your investment account, our service providers collect certain nonpublic personal information from you from the following sources: o Information we receive from you over the telephone, on applications, e-mails or other forms (e.g., your name, social security number and address); and o Information about your transactions with the Fund We restrict access to your personal and account information to those service providers and their employees who need to know that information to service your account. The Fund may also share all of the information (as described above) that we collect with companies that perform marketing services on our behalf or with other financial institutions with whom we have joint marketing agreements who may suggest additional Fund services or other investment products which may be of interest to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information. You can be assured that the Fund considers your data to be private and confidential, and we will not disclose any nonpublic personal information about you to any unaffiliated third parties, except as permitted by law. If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice. If you have any questions or comments about our privacy practices, please call us at (888) 261-4073. October 2002 BOSTON PARTNERS FAMILY OF FUNDS PORTFOLIO MANAGER'S LETTER September 15, 2002 Dear Shareholder: The one year period ending August 31, 2002 continued one of the worst bear market periods ever on record. In our view the unwinding of the markets' excesses was disappointing, but warranted. Investors found few safe havens over this period, and we believe we are experiencing a change in market fundamentals and investors' attitudes that will benefit investors in the long run. As Warren Buffett recently stated, "You never know how dirty the laundry is until the rinse cycle." Well, the laundry is dirty! We believe that the current bear market is a result of the greed built up during the late 90's. One by one, investors have been eradicating the bubbles: first it was the dot-coms, then technology and telecommunications, followed closely by consumer stocks, then the untouchable, General Electric! In our view, much like 2000, investors remembered that valuations do matter, and many of the over-valued companies that had surged in the late 90's have dropped to more realistic valuations. Not only does valuation matter, but so does the way in which a company attains their valuation. To that end, we believe that investors are in the process of penalizing companies involved in aggressive accounting measures, egregious executive compensation, sloppy corporate governance and questionable relationships with Wall Street brokers and investment bankers. All of this cleansing has caused some short-term pain, but in our opinion will make way for a better investing environment in the longer term. Unfortunately, we anticipate that the pain may get worse, before it gets better. BOSTON PARTNERS LARGE CAP VALUE FUND The Boston Partners Large Cap Value Fund posted strong relative returns over the past year, beating both the Russell 1000 Value style index and the broader S&P 500. ONE YEAR ENDED AUGUST 31, 2002 --------------- Boston Partners Large Cap Value Fund --Institutional Shares (12.67)% --Investor Shares (12.87)% Russell 1000 Value (13.13)% S&P 500 (17.99)% Although the Boston Partners Large Cap Value Fund posted negative returns for this period, several sectors had positive returns including Consumer Non-Durables and Consumer Services. Strong stock selection in the Finance, Consumer Services, Healthcare and Energy sectors added to performance over the past year. Our Communications and Utility holdings, which accounted for less than a 10% weighting in total, were detractors from performance. We continue to pay very close attention to balance sheet and income statement items that measure financial stability and profitability. We look for companies with manageable debt loads, stable and rising free cash flow, attentive management, and a visible earnings stream. The valuation of our Large Cap Value Fund is at historically low levels yet the companies in the portfolio have a five-year average return-on-equity (ROE) of 20% and a five-year average operating return-on-assets (OROA) of 21%. In the long run, we believe that the Large Cap Value Fund is a better place to invest than in 10-year treasuries yielding 3.6%. 2 MID CAP VALUE EQUITY FUND The Boston Partners Mid Cap Value Fund posted disappointing returns both relative and absolute over the past year ended August 2002. ONE YEAR ENDED AUGUST 31, 2002 --------------- Boston Partners Mid Cap Value Fund --Institutional Shares (8.97)% --Investor Shares (9.26)% Russell 2500 Value (3.78)% Although the Boston Partners Mid Cap Value Fund returns were negative, several sectors had positive returns including Finance, Healthcare, Consumer Non-Durables, Consumer Durables, and Capital Goods. Strong stock selection in the Healthcare, Consumer Non-Durables, and Technology sectors added to relative performance over the past year. Our Consumer Services and Utility holdings, were detractors from performance. One of the biggest issues with performance over this period the Funds lack of REIT holdings. While the index holds more than 10% in REIT's, the Boston Partners Mid Cap Value Fund held barely 1% of its investments in REIT. The exceptional returns of the REIT holdings in the Russell 2500 Value index was the main reason for our underperformance for the year ended August 31, 2002. Apart from some of the more common valuation metrics such as price-to-earnings, price-to-sales and price-to-book, which are all currently attractive, we take more solace in the portfolio's profitability characteristics. Not only are the historical sales and earnings growth rates well above those of the financial markets, but the estimated earnings growth rates of the companies that make up the portfolio are also well above the benchmarks'. Other characteristics, such as return-on-assets and return-on-equity, are also multiple percentage points ahead of the same measures in the index. We believe these portfolio characteristics indicate that we have built a portfolio with very attractive prospects. In our opinion, the portfolio in totality is made up of companies that are well positioned in their industry and are structured in a financially sound manner. Over the long term, we believe this is the type of portfolio that will outperform. Recent additions to the Boston Partners Mid Cap Value Fund include stocks in the Finance, Consumer and Basic Industries sectors. In Finance, we added a private mortgage insurer whose inexpensive valuations were attractive. The decline in interest rates has hurt this industry as homeowners have refinanced. However, we believe that lower rates have allowed this particular company to add business at an accelerating rate, which bodes well for its future. In Consumer Services, we have added to one of the warehouse chains based primarily on its strong profitability characteristics. Competition from its peers is diminishing and we expect its strong position in the industry to help it gain additional market share. In Basic Industries, we added a company that specializes in rolled steel. Although the steel industry has had difficulties, this particular mini-mill company has made strategic acquisitions near the bottom of the cycle, which we believe should add to earnings in the future. BOSTON PARTNERS SMALL CAP VALUE FUND II The Boston Partners Small Cap Value Fund II posted negative returns and lagged the Russell 2000 Value for the period. The returns were as follows. ONE YEAR ENDED AUGUST 31, 2002 --------------- Boston Partners Small Cap Value Fund II --Institutional Shares (7.39)% --Investor Shares (7.54)% Russell 2000 Value (5.60)% 3 Although the Boston Partners Small Cap Value Fund II posted negative returns for this period, several sectors had positive returns including Consumer Services, Transportation, Technology, Capital Goods, Basics, and REIT's. Strong stock selection in the Consumer Services, Technology and Capital Goods sectors added to performance over the past year. Our Finance and Consumer Durable holdings were detractors from performance. Current areas of interest for us in the small cap universe include Cyclical Industrial and Financial Stocks which in our opinion have been returning to more compelling valuations. Despite the sell-off in the equity market, we believe there is more downside potential, and we are very cautious and particular about our entry points. A focus on profitability characteristics, more than just valuation metrics, gives us great faith in the current portfolios. BOSTON PARTNERS ALL-CAP VALUE FUND On July 1, 2002, Boston Partners All-Cap Value Fund commenced operations. This Fund adheres to our overall equity investment philosophy which emphasizes value, focused research and risk aversion. This philosophy is executed at the individual stock selection level by focusing on undervalued securities of companies that have sound fundamentals and positive business momentum. The Fund has the ability to invest across the capitalization spectrum, as well as invest in equity like debt securities and hedge overall portfolio exposure up to 40%, through the purchase and sale of individual stock and index put and call options. The All-Cap Value Fund has opportunistically invested a small percentage of its assets in non-equity instruments such as distressed debt or convertible bonds. Harry Rosenbluth is the lead portfolio manager of the All-Cap Value Fund and has been managing a similarly structured institutional separate account since the inception of Boston Partners Asset Management, L. P. in June 1995. He has over 20 years investment experience. During the two months of operation, the Boston Partners All-Cap Value Fund outperformed the Russell 3000 Value. TWO MONTHS ENDED AUGUST 31, 2002 --------------- Boston Partners All-Cap Value Fund --Institutional Shares (5.50)% --Investor Shares (5.60)% Russell 3000 Value (9.10)% Stock selection drove its performance. The portfolio's stock selection outmatched the benchmark in eleven of thirteen sectors. Areas of relative strength included positions in capital goods, consumer services, and health care. Areas of weakness included holdings among tobacco businesses and utilities. At August 31, 2002, the relative valuations of large, mid, and small companies were more in-line with historical norms. The market's price action during the period created opportunities on a case-by-case basis. Although no industries were egregiously mis-priced, we believe many stocks remained too expensive to warrant a wholesale buying opportunity. The market's destruction over the past two and one half years, and in particular this quarter, we believe has created opportunities that we believe support a more positive outlook for the longer term. In our opinion, prospective returns are higher today than at this time one year ago because the market has reverted to more reasonable valuations. Our areas of interest include insurance companies, merchant energy businesses, and pharmaceutical concerns. We will continue to endeavor to take advantage of the real absolute value created by these turbulent markets. 4 BOSTON PARTNERS LONG/SHORT EQUITY FUND The Boston Partners' Long/Short Equity Fund was down for the one year ended August 2002, with the short side's positive performance unable to completely offset the long portfolio's negative returns. That said, the Fund's returns for the year were notably better than all equity benchmarks, value and growth alike, and the portfolio helped protect capital relatively well. ONE YEAR ENDED AUGUST 31, 2002 --------------- Boston Partners Long/Short Equity --Institutional Shares (1.17)% --Investor Shares (1.44)% The short holdings rose nearly 20% during the year ended August 2002, which was ahead of expectations. As we monitor the portfolio on a stock-by-stock basis, our shorting process has successfully predicted many of the all too common negative pre-announcements and added value during the quarter. Leading sectors were Health Care, Technology and Transportation. Entering the late spring of this 2002, we felt that overall valuation levels were high, particularly in the large capitalization segment of the market. We were positioned to take advantage of some interesting opportunities in the smaller market capitalization spectrum. However, when the final curtain closed, it was large cap stocks that performed better than small cap stocks. During the market rout, we believe that returns were driven by liquidity and safety concerns, not valuation analysis. While our small cap focus contributed to down results over the past year, in our view this focus creates opportunity going forward. It has been our experience that in emotional markets, our fundamentally driven value philosophy may lag at first but will pay off over time. We believe the value created by fearful investors exiting solid companies accrues to the benefit of patient investors who hold stocks priced at attractive levels. 5 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LARGE CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners Large Cap Value Institutional Class (1)(2) vs. S&P 500 Stock Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Large Cap Value Fund - Institutional Class S&P 500 Stock Index 1/2/97 $10,000.00 $10,000.00 2/28/97 $10,620.00 $10,707.88 5/31/97 $11,360.00 $11,543.41 8/31/97 $12,460.00 $12,291.42 11/30/97 $12,810.00 $13,112.19 2/28/98 $13,786.06 $14,458.09 5/31/98 $13,828.35 $15,087.80 8/31/98 $11,185.31 $13,286.39 11/30/98 $12,728.84 $16,213.89 2/28/99 $12,383.01 $17,309.00 5/31/99 $13,678.04 $18,256.74 8/31/99 $13,100.09 $18,575.42 11/30/99 $13,282.00 $19,600.00 2/29/00 $11,901.91 $19,340.02 5/31/00 $13,881.74 $20,170.26 8/31/00 $14,671.39 $21,609.53 11/30/00 $15,312.26 $18,776.43 2/28/01 $16,230.26 $17,756.38 5/31/01 $16,825.21 $18,042.90 8/31/01 $16,087.48 $16,339.91 11/30/01 $16,301.70 $16,480.53 2/28/02 $16,401.83 $16,066.63 5/31/02 $16,633.03 $15,544.11 8/31/02 $14,049.00 $13,400.56 ------------------------------------------------------- Large Cap Value Fund -- Institutional Class $14,049 S&P 500 Stock Index $13,401 ------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Large Cap Value Fund -- Institutional Class (12.67)% 6.18% S&P 500 Stock Index (17.99)% 5.30% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on January 2, 1997 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the S&P 500 Stock Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period January 2, 1997 (commencement of operations) through August 31, 2002. 6 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LARGE CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners Large Cap Value Investor Class (1)(2) vs. S&P 500 Stock Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Large Cap Value Fund - Investor Class S&P 500 Stock Index 1/16/97 $10,000.00 $10,000.00 2/28/97 $10,411.76 $10,213.05 5/31/97 $11,127.45 $11,009.97 8/31/97 $12,205.88 $11,723.41 11/30/97 $12,549.02 $12,506.25 2/28/98 $13,499.53 $13,789.96 5/31/98 $13,550.70 $14,390.56 8/31/98 $10,951.10 $12,672.40 11/30/98 $12,455.59 $15,464.61 2/28/99 $12,113.72 $16,509.12 5/31/99 $13,366.51 $17,413.06 8/31/99 $12,797.06 $17,717.01 11/30/99 $12,962.70 $18,694.30 2/29/00 $11,601.88 $18,446.28 5/31/00 $13,533.69 $19,238.16 8/31/00 $14,291.05 $20,610.92 11/30/00 $14,905.72 $17,908.74 2/28/01 $15,789.59 $16,935.82 5/31/01 $16,359.20 $17,209.11 8/31/01 $15,641.49 $15,584.81 11/30/01 $15,835.20 $15,718.93 2/28/02 $15,925.40 $15,324.17 5/31/02 $16,133.07 $14,825.79 8/31/02 $13,628.10 $12,781.30 -------------------------------------------------------- Large Cap Value Fund -- Investor Class $13,628 S&P 500 Stock Index $12,781 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Large Cap Value Fund -- Investor Class (12.87)% 5.65% S&P 500 Stock Index (17.99)% 4.46% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on January 16, 1997 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the S&P 500 Stock Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period January 16, 1997 (commencement of operations) through August 31, 2002. 7 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS MID CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners Mid Cap Value Institutional Class (1)(2) vs. Russell 2500 Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Mid Cap Value Fund-- Institutional Class Russell 2500 Index Russell 2500 Value Index 6/2/97 $10,000.00 $10,000.00 $10,000.00 8/31/97 $11,010.00 $11,172.13 $11,099.03 11/30/97 $11,250.00 $11,419.51 $11,669.85 2/28/98 $12,638.73 $12,289.12 $12,638.26 5/31/98 $12,871.84 $12,279.85 $12,837.11 8/31/98 $ 9,608.27 $ 9,289.34 $10,091.69 11/30/98 $10,713.02 $11,012.50 $11,518.89 2/28/99 $10,568.86 $10,893.94 $10,942.25 5/31/99 $11,694.72 $12,310.85 $12,247.88 8/31/99 $11,633.86 $12,298.50 $11,954.64 11/30/99 $10,802.15 $13,080.07 $11,653.39 2/29/00 $ 9,762.10 $16,211.32 $11,749.26 5/31/00 $11,378.81 $14,379.45 $12,586.27 8/31/00 $12,006.97 $16,219.18 $13,481.80 11/30/00 $11,512.68 $13,919.03 $13,222.78 2/28/01 $12,208.03 $14,609.22 $14,635.43 5/31/01 $13,191.71 $15,478.65 $15,542.89 8/31/01 $12,994.97 $14,639.96 $15,454.47 11/30/01 $12,963.90 $14,488.92 $15,113.58 2/28/02 $13,745.66 $14,847.55 $16,320.40 5/31/02 $14,331.62 $15,369.90 $17,339.54 8/31/02 $11,829.08 $12,811.14 $14,871.96 -------------------------------------------------------- Mid Cap Value Fund -- Institutional Class $11,829 Russell 2500 Index $12,811 Russell 2500 Value Index $14,872 --------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Mid Cap Value Fund -- Institutional Class (8.97)% 3.25% Russell 2500 Index (12.49)% 4.83% Russell 2500 Value Index (3.78)% 7.85% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on June 2, 1997 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 2500 and Russell 2500 Value Indices are unmanaged, do not incur expenses and are not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period June 2, 1997 (commencement of operations) through August 31, 2002. 8 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS MID CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners Mid Cap Value Investor Class (1)(2) vs. Russell 2500 Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Mid Cap Value Fund-- Investor Class Russell 2500 Index Russell 2500 Value Index 6/2/97 $10,000.00 $10,000.00 $10,000.00 8/31/97 $11,010.00 $11,172.13 $11,099.00 11/30/97 $11,240.00 $11,419.51 $11,669.85 2/28/98 $12,632.31 $12,289.12 $12,638.26 5/31/98 $12,856.61 $12,279.85 $12,837.11 8/31/98 $ 9,604.23 $ 9,289.34 $10,091.69 11/30/98 $10,695.15 $11,012.50 $11,518.89 2/28/99 $10,552.61 $10,893.94 $10,942.25 5/31/99 $11,663.95 $12,310.85 $12,247.88 8/31/99 $11,602.77 $12,298.50 $11,954.64 11/30/99 $10,756.53 $13,080.07 $11,653.39 2/29/00 $ 9,727.54 $16,211.32 $11,749.26 5/31/00 $11,329.85 $14,379.45 $12,586.27 8/31/00 $11,939.75 $16,219.18 $13,481.80 11/30/00 $11,443.56 $13,919.03 $13,222.78 2/28/01 $12,132.65 $14,609.22 $14,635.43 5/31/01 $13,097.04 $15,478.65 $15,542.89 8/31/01 $12,889.65 $14,639.96 $15,454.47 11/30/01 $12,858.50 $14,488.92 $15,113.58 2/28/02 $13,625.08 $14,847.55 $16,320.40 5/31/02 $14,198.89 $15,369.90 $17,339.54 8/31/02 $11,696.08 $12,811.14 $14,871.96 -------------------------------------------------------- Mid Cap Value Fund -- Investor Class $11,696 Russell 2500 Index $12,811 Russell 2500 Value Index $14,872 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Mid Cap Value Fund -- Investor Class (9.26)% 3.03% Russell 2500 Index (12.49)% 4.83% Russell 2500 Value Index (3.78)% 7.85% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on June 2, 1997 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 2500 and Russell 2500 Value Indices are unmanaged, do not incur expenses and are not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period June 2, 1997 (commencement of operations) through August 31, 2002. 9 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS SMALL CAP VALUE FUND II Comparison of Change in Value of $10,000 investment in Boston Partners Small Cap Value Institutional Class (1)(2) vs. Russell 2000 Value Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Small Cap Value Fund--Institutional Class Russell 2000 Value Index 7/1/98 $10,000.00 $10,000.00 8/31/98 $ 7,620.00 $ 7,773.62 11/30/98 $ 7,930.00 $ 8,685.93 2/28/99 $ 7,640.00 $ 8,157.32 5/31/99 $ 8,670.00 $ 9,099.22 8/31/99 $ 8,670.00 $ 8,868.24 11/30/99 $ 8,450.00 $ 8,561.35 2/29/00 $ 8,713.79 $ 9,118.02 5/31/00 $ 9,854.28 $ 9,073.93 8/31/00 $11,394.95 $10,081.23 11/30/00 $11,224.88 $ 9,783.93 2/28/01 $14,381.97 $11,118.18 5/31/01 $16,926.00 $11,741.00 8/31/01 $17,613.30 $11,897.63 11/30/01 $17,172.20 $11,641.24 2/28/02 $17,994.57 $12,594.35 5/31/02 $19,739.00 $13,550.32 8/31/02 $16,312.45 $11,232.14 -------------------------------------------------------- Small Cap Value Fund -- Institutional Class $16,312 Russell 2000 Value Index $11,232 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Small Cap Value Fund -- Institutional Class (7.39)% 12.44% Russell 2000 Value Index (5.60)% 2.82% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on July 1, 1998 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 2000 Value Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period July 1, 1998 (commencement of operations) through August 31, 2002. 10 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS SMALL CAP VALUE FUND II Comparison of Change in Value of $10,000 investment in Boston Partners Small Cap Value Investor Class (1)(2) vs. Russell 2000 Value Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Small Cap Value Fund--Investor Class Russell 2000 Value Index 7/1/98 $10,000.00 $10,000.00 8/31/98 $7,630.00 $7,773.62 11/30/98 $7,940.00 $8,685.93 2/28/99 $7,640.00 $8,157.32 5/31/99 $8,660.00 $9,099.22 8/31/99 $8,650.00 $8,868.24 11/30/99 $8,440.00 $8,561.35 2/29/00 $8,700.00 $9,118.02 5/31/00 $9,830.00 $9,073.93 8/31/00 $11,360.00 $10,081.23 11/30/00 $11,180.00 $9,783.93 2/28/02 $14,325.37 $11,118.18 5/31/01 $16,858.20 $11,741.00 8/31/01 $17,525.00 $11,897.63 11/30/01 $17,083.80 $11,641.24 2/28/02 $17,895.60 $12,594.35 5/31/02 $19,618.73 $13,550.32 8/31/02 $16,203.62 $11,232.14 -------------------------------------------------------- Small Cap Value Fund -- Investor Class $16,204 Russell 2000 Value Index $11,232 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Small Cap Value Fund -- Investor Class (7.54)% 12.26% Russell 2000 Value Index (5.60)% 2.82% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on July 1, 1998 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 2000 Value Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period July 1, 1998 (commencement of operations) through August 31, 2002. 11 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS ALL-CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners All-Cap Value Fund Institutional Class (1)(2) vs. Russell 3000 Value Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] All-Cap Value Fund--Institutional Class Russell 3000 Value Index 7/1/02 $10,000.00 $10,000.00 7/31/02 $ 9,240.00 $ 9,029.00 8/31/02 $ 9,450.00 $ 9,089.49 -------------------------------------------------------- All-Cap Value Fund -- Institutional Class $9,450 Russell 3000 Value Index $9,089 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns Period Ended Average August 31, 2002 Annual(3) --------------- --------- All-Cap Value Fund -- Institutional Class (5.50)% (28.33)% Russell 3000 Value Index (9.10)% (42.99)% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on July 1, 2002 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 3000 Value Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period July 1, 2002 (commencement of operations) through August 31, 2002. 12 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS ALL-CAP VALUE FUND Comparison of Change in Value of $10,000 investment in Boston Partners All-Cap Value Fund Investor Class (1)(2) vs. Russell 3000 Value Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] All-Cap Value Fund--Investor Class Russell 3000 Value Index 7/1/02 $10,000.00 $10,000.00 7/31/02 $ 9,230.00 $ 9,029.00 8/31/02 $ 9,440.00 $ 9,089.49 -------------------------------------------------------- All-Cap Value Fund -- Investor Class $9,440 Russell 3000 Value Index $9,089 -------------------------------------------------------- --------------------------------------------------------------------------- Total Returns Period Ended Average August 31, 2002 Annual(3) --------------- --------- All-Cap Value Fund -- Investor Class (5.60)% (28.77)% Russell 3000 Value Index (9.10)% (42.99)% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on July 1, 2002 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Russell 3000 Value Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period July 1, 2002 (commencement of operations) through August 31, 2002. 13 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LONG/SHORT EQUITY FUND Comparison of Change in Value of $10,000 investment in Boston Partners Long/Short Equity Fund Institutional Class (1)(2) vs. Salomon Brothers 30 Day T-Bill Aggregate Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Long/Short Equity Fund-- Salomon Brothers Institutional Class 30 Day T-Bill Aggregate Index 11/17/98 $10,000.00 $10,000.00 11/30/98 $ 9,580.00 $10,020.00 2/28/99 $ 9,080.00 $10,127.60 5/31/99 $ 9,500.00 $10,239.41 8/31/99 $ 9,460.00 $10,350.39 11/30/99 $ 8,100.00 $10,464.66 2/29/00 $ 8,153.76 $10,591.80 5/31/00 $10,311.81 $10,738.64 8/31/00 $10,759.71 $10,882.09 11/30/00 $11,798.02 $11,042.84 2/28/01 $14,558.61 $11,192.59 5/31/01 $15,093.63 $11,315.03 8/31/01 $16,338.57 $11,414.89 11/30/01 $16,081.40 $11,490.40 2/28/02 $16,370.81 $11,539.87 5/31/02 $17,456.52 $11,590.76 8/31/02 $16,147.28 $13,311.41 ---------------------------------------------------------------- Long/Short Equity Fund -- Institutional Class $16,147 Salomon Brothers 30 Day T-Bill Aggregate Index $13,311 ---------------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Long/Short Equity Fund -- Institutional Class (1.17)% 13.47% Salomon Brothers 30 Day T-Bill Aggregate Index 16.61% 7.84% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on November 17, 1998 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Salomon Brothers 30 Day T-Bill Aggregate Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period November 17, 1998 (commencement of operations) through August 31, 2002. 14 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LONG/SHORT EQUITY FUND Comparison of Change in Value of $10,000 investment in Boston Partners Long/Short Equity Fund Investor Class (1)(2) vs. Salomon Brothers 30 Day T-Bill Aggregate Index EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC [GRAPHIC OMITTED] Long/Short Equity Fund-- Salomon Brothers Investor Class 30 Day T-Bill Aggregate Index 11/17/98 $10,000.00 $10,000.00 11/30/98 $ 9,580.00 $10,020.00 2/28/99 $ 9,090.00 $10,127.60 5/31/99 $ 9,520.00 $10,239.41 8/31/99 $ 9,430.00 $10,350.39 11/30/99 $ 8,070.00 $10,464.66 2/29/00 $ 8,147.17 $10,591.80 5/31/00 $10,290.62 $10,738.64 8/31/00 $10,737.60 $10,882.09 11/30/00 $11,773.77 $11,042.84 2/28/01 $14,515.18 $11,192.59 5/31/01 $15,037.97 $11,315.03 8/31/01 $16,268.07 $11,414.89 11/30/01 $16,001.50 $11,490.40 2/28/02 $16,277.19 $11,539.87 5/31/02 $17,347.50 $11,590.76 8/31/02 $16,033.46 $13,311.41 --------------------------------------------------------------------------- Long/Short Equity Fund -- Investor Class $16,033 Salomon Brothers 30 Day T-Bill Aggregate Index $13,311 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Total Returns One Year Ended Average August 31, 2002 Annual(3) --------------- --------- Long/Short Equity Fund -- Investor Class (1.44)% 13.26% Salomon Brothers 30 Day T-Bill Aggregate Index 16.61% 7.84% --------------------------------------------------------------------------- ---------- (1) The chart assumes a hypothetical $10,000 initial investment in the Fund made on November 17, 1998 (inception) and reflects Fund expenses. Investors should note that the Fund is an aggressively managed mutual fund while the Salomon Brothers 30 Day T-Bill Aggregate Index is unmanaged, does not incur expenses and is not available for investment. (2) Boston Partners Asset Management L.P. waived a portion of its advisory fee and agreed to reimburse a portion of the Fund's operating expenses, if necessary, to maintain the expense limitation as set forth in the notes to the financial statements. Total returns shown include fee waivers and expense reimbursements, if any; total returns would have been lower had there been no assumption of fees and expenses in excess of expense limitations. Returns shown include the reinvestment of all dividends and other distributions. Past performance is not predictive of future performance. Investment return and principal value will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. (3) For the period November 17, 1998 (commencement of operations) through August 31, 2002. 15 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--97.1% ADVERTISING SERVICES--0.7% Interpublic Group of Companies, Inc. (The) .............................. 18,800 $ 342,724 ----------- AEROSPACE/DEFENSE--1.1% Lockheed Martin Corp. ..................... 9,300 588,876 ----------- AGRICULTURE--1.0% Archer-Daniels-Midland Co. ................ 43,900 535,141 ----------- AUTOMOTIVE--0.8% Ford Motor Co. ............................ 36,100 424,897 ----------- BANKS & SAVINGS & LOANS--7.5% Banco Bilbao Vizcaya Argentaria, S.A. - ADR .............................. 28,300 276,774 Bank of New York Co., Inc. (The) .......... 13,600 478,040 FleetBoston Financial Corp. ............... 45,500 1,097,915 Golden State Bancorp, Inc. ................ 15,700 541,650 Golden West Financial Corp. ............... 7,900 537,121 Toronto-Dominion Bank (The) ............... 13,100 290,427 Wachovia Corp. ............................ 20,200 744,370 ----------- 3,966,297 ----------- BROADCASTING & PUBLISHING--1.1% Liberty Media Corp., Class A* ............. 69,700 582,692 ----------- CEMENT MANUFACTURING--1.1% Cemex S.A. de C.V. - ADR .................. 23,900 562,845 ----------- CHEMICALS--2.3% Praxair, Inc. ............................. 16,500 924,495 Syngenta AG - ADR* ........................ 29,300 317,612 ----------- 1,242,107 ----------- COMPUTERS, SOFTWARE & SERVICES--3.0% Computer Sciences Corp.* .................. 17,100 629,793 Microsoft Corp.* .......................... 19,800 971,784 ----------- 1,601,577 ----------- NUMBER OF SHARES VALUE --------- ----------- CONSUMER PRODUCTS & SERVICES--1.3% Avon Products, Inc. ....................... 8,900 $ 433,786 Mattel, Inc. .............................. 13,200 256,476 ----------- 690,262 ----------- CONTAINERS--0.5% Smurfit-Stone Container Corp.* ............ 17,200 241,144 ----------- DIVERSIFIED--1.8% McGraw-Hill Cos., Inc. (The) .............. 15,200 963,832 ----------- ELECTRIC UTILITIES--0.5% Pinnacle West Capital Corp. ............... 7,700 257,257 ----------- ELECTRONIC COMPONENTS & INSTRUMENTS--0.9% Agilent Technologies, Inc.* ............... 36,600 491,538 ----------- ENERGY--1.3% Calpine Corp.* ............................ 138,600 676,368 ----------- FINANCIAL SERVICES--16.7% Citigroup, Inc. ........................... 55,420 1,815,005 Countrywide Credit Industries, Inc. .................................... 28,600 1,501,214 Fannie Mae ................................ 8,600 651,708 Freddie Mac ............................... 37,100 2,378,110 Goldman Sachs Group, Inc. (The) ........... 7,600 587,480 J.P. Morgan Chase & Co. ................... 22,300 588,720 MBIA, Inc. ................................ 28,850 1,325,946 ----------- 8,848,183 ----------- GAMBLING--2.3% International Game Technology* ............ 13,200 853,776 Mandalay Resort Group* .................... 12,400 373,240 ----------- 1,227,016 ----------- INSURANCE--9.3% ACE Ltd. .................................. 21,500 683,915 Allmerica Financial Corp. ................. 6,680 148,630 American International Group, Inc. .................................... 23,095 1,450,366 The accompanying notes are an integral part of the financial statements. 16 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- INSURANCE--(CONTINUED) Berkshire Hathaway, Inc.* ................. 500 $ 1,220,000 Phoenix Companies, Inc. (The) ............. 17,200 273,480 Radian Group, Inc. ........................ 17,600 764,896 Travelers Property Casualty Corp., Class A* ................................ 24,449 384,338 ----------- 4,925,625 ----------- LEISURE & ENTERTAINMENT--1.0% Harrah's Entertainment, Inc.* ............. 11,000 522,940 ----------- MANUFACTURING--1.1% Tyco International Ltd. ................... 36,300 569,547 ----------- MEDICAL EQUIPMENT AND SUPPLIES--3.4% Alcon, Inc.* .............................. 18,800 695,036 Beckman Coulter, Inc. ..................... 6,000 239,940 C.R. Bard, Inc. ........................... 5,300 290,122 Guidant Corp.* ............................ 7,600 279,680 Smith & Nephew plc - ADR .................. 5,400 316,440 ----------- 1,821,218 ----------- OIL & GAS EXPLORATION--6.9% Burlington Resources, Inc. ................ 43,800 1,684,986 Canadian Natural Resources Ltd. ........... 9,100 303,485 Devon Energy Corp. ........................ 6,200 291,400 Kerr-McGee Corp. .......................... 11,100 520,035 Petroleo Brasileiro S.A. - ADR ............ 20,400 325,380 Transocean, Inc.* ......................... 22,100 541,450 ----------- 3,666,736 ----------- OIL SERVICES--5.1% Exxon Mobil Corp. ......................... 37,500 1,329,375 Marathon Oil Corp. ........................ 55,200 1,366,200 ----------- 2,695,575 ----------- PAPER & FORESTRY PRODUCTS--2.2% Abitibi-Consolidated, Inc. ................ 70,400 522,368 Boise Cascade Corp. ....................... 9,000 243,450 International Paper Co. ................... 10,900 410,385 ----------- 1,176,203 ----------- NUMBER OF SHARES VALUE --------- ----------- PHARMACEUTICALS--6.2% Merck & Co., Inc. ......................... 17,500 $ 884,100 Pharmacia Corp. ........................... 29,000 1,267,300 Wyeth ..................................... 26,800 1,147,040 ----------- 3,298,440 ----------- PUBLISHING & INFORMATION SERVICES--3.8% Gannett Co., Inc. ......................... 9,400 714,024 Knight-Ridder, Inc. ....................... 11,300 686,249 Reader's Digest Association, Inc. (The), Class A .......................... 37,200 635,376 ----------- 2,035,649 ----------- REAL ESTATE--0.6% Equity Residential (REIT) ................. 11,100 309,912 ----------- RETAIL--3.0% Abercrombie & Fitch Co.* .................. 12,000 273,600 Federated Department Stores, Inc.* ................................... 17,600 631,840 Sears, Roebuck & Co. ...................... 15,000 682,650 ----------- 1,588,090 ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--0.3% Cypress Semiconductor Corp.* .............. 13,100 137,943 ----------- STEEL--0.5% United States Steel Corp. ................. 19,100 262,243 ----------- TELECOMMUNICATIONS & EQUIPMENT--6.0% 3Com Corp.* ............................... 215,300 1,061,429 ALLTEL Corp ............................... 16,700 702,402 AT&T Corp. ................................ 51,277 626,605 Motorola, Inc. ............................ 30,700 368,400 SBC Communications, Inc. .................. 16,675 412,539 ----------- 3,171,375 ----------- TOBACCO--3.2% Philip Morris Cos., Inc. .................. 10,900 545,000 UST, Inc. ................................. 32,500 1,128,075 ----------- 1,673,075 ----------- The accompanying notes are an integral part of the financial statements. 17 BOSTON PARTNERS FAMILY OF FUNDS LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- TRANSPORTATION--0.1% CP Ships Ltd.* ............................ 6,125 $ 66,518 ----------- WASTE MANAGEMENT--0.5% Republic Services, Inc., Class A* ......... 12,500 257,500 ----------- TOTAL COMMON STOCK (Cost $56,807,346) .................... 51,421,345 ----------- SHORT TERM INVESTMENTS--5.0% Wilmington Prime Money Market Portfolio 1.333% 09/03/02 ......................... 2,640,877 2,640,877 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $2,640,877) ..................... 2,640,877 ----------- TOTAL INVESTMENTS--102.1% (Cost $59,448,223) ........................ 54,062,222 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(2.1)% ...................... (1,102,654) ----------- NET ASSETS--100.0% ........................... $52,959,568 =========== ---------- * Non-income producing. ADR-- American Depository Receipt. REIT-- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 18 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- COMMON STOCK--96.6% ADVERTISING SERVICES--1.7% Lamar Advertising Co.* .................... 29,405 $ 939,784 ----------- AGRICULTURE--1.0% Delta and Pine Land Co. ................... 31,900 580,580 ----------- AUTOMOTIVE PARTS & EQUIPMENT--2.0% Lear Corp.* ............................... 24,400 1,137,040 ----------- BANKS & SAVINGS & LOANS--2.8% Associated Banc-Corp ...................... 11,480 399,619 Golden State Bancorp, Inc. ................ 18,300 631,350 GreenPoint Financial Corp. ................ 10,100 515,100 ----------- 1,546,069 ----------- CELLULAR/WIRELESS--1.8% Rogers Communications, Inc., Class B* ................................ 25,300 211,255 United States Cellular Corp.* ............. 25,750 809,837 ----------- 1,021,092 ----------- CHEMICALS--1.0% Ashland, Inc. ............................. 19,300 553,138 ----------- COMPUTERS, SOFTWARE & SERVICES--4.3% Adaptec, Inc.* ............................ 51,300 314,469 Lexmark International, Inc.* .............. 17,900 844,880 Parametric Technology Corp.* .............. 94,000 214,320 Sybase, Inc.* ............................. 66,000 924,660 Vignette Corp.* ........................... 127,100 113,119 ----------- 2,411,448 ----------- CONSULTING SERVICES--0.5% Hewitt Associates, Inc., Class A* ......... 9,975 281,096 ----------- DIVERSIFIED--2.5% ITT Industries, Inc. ...................... 9,000 611,820 Viad Corp. ................................ 37,100 821,023 ----------- 1,432,843 ----------- NUMBER OF SHARES VALUE --------- ----------- ELECTRIC UTILITIES--4.0% NSTAR ..................................... 14,800 $ 630,480 Pinnacle West Capital Corp. ............... 39,400 1,316,354 PPL Corp. ................................. 7,700 279,895 ----------- 2,226,729 ----------- ELECTRONIC COMPONENTS & INSTRUMENTS--1.3% Molex, Inc. ............................... 9,800 291,060 Molex, Inc., Class A ...................... 5,370 136,774 Thermo Electron Corp.* .................... 16,800 298,704 ----------- 726,538 ----------- ENERGY--0.8% Constellation Energy Group, Inc. .......... 15,800 442,558 ----------- FINANCIAL SERVICES--4.0% A.G. Edwards, Inc. ........................ 21,900 824,316 Affiliated Managers Group, Inc.* .......... 9,400 492,560 Countrywide Credit Industries, Inc. .................................... 18,100 950,069 ----------- 2,266,945 ----------- FOOD & BEVERAGE--5.8% Bunge Limited ............................. 51,600 1,104,240 Dean Foods Co.* ........................... 14,500 548,825 McCormick & Co., Inc. ..................... 35,700 826,455 Smithfield Foods, Inc.* ................... 45,400 804,942 ----------- 3,284,462 ----------- HEALTHCARE--7.7% Apria Healthcare Group, Inc.* ............. 51,905 1,197,967 Caremark Rx, Inc.* ........................ 19,200 311,040 Express Scripts, Inc., Class A* ........... 6,200 297,600 Health Net, Inc.* ......................... 39,900 928,872 Kindred Healthcare, Inc.* ................. 13,900 520,694 Manor Care, Inc.* ......................... 47,000 1,101,680 ----------- 4,357,853 ----------- The accompanying notes are an integral part of the financial statements. 19 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- HOTELS & MOTELS--2.2% Hilton Hotels Corp. ....................... 62,500 $ 719,375 Starwood Hotel & Resorts Worldwide, Inc. ......................... 20,330 524,107 ----------- 1,243,482 ----------- INSURANCE--14.3% Allmerica Financial Corp. ................. 17,000 378,250 CNA Financial Corp.* ...................... 18,175 498,177 Everest Re Group Ltd. ..................... 10,200 552,840 Jefferson-Pilot Corp. ..................... 15,000 631,800 Mercury General Corp. ..................... 49,465 2,225,925 Nationwide Financial Services, Inc., Class A ................................. 19,555 596,428 PartnerRe Ltd. ............................ 12,190 548,062 Radian Group, Inc. ........................ 46,200 2,007,852 White Mountains Insurance Group Ltd. .................................... 1,905 592,455 ----------- 8,031,789 ----------- INTERNET--3.5% McAfee.com Corp.* ......................... 22,500 374,625 Network Associates, Inc.* ................. 74,100 963,300 ProQuest Co.* ............................. 19,300 640,760 ----------- 1,978,685 ----------- LEISURE & ENTERTAINMENT--4.4% Harrah's Entertainment, Inc.* ............. 9,800 465,892 Regal Entertainment Group, Class A* ................................ 53,975 947,261 WMS Industries, Inc.* ..................... 74,675 1,079,054 ----------- 2,492,207 ----------- MEDIA--0.4% Gemstar-TV Guide International, Inc.* ................................... 59,500 245,140 ----------- MEDICAL EQUIPMENT & SUPPLIES--2.8% C.R. Bard, Inc. ........................... 20,300 1,111,222 Invitrogen Corp.* ......................... 12,900 459,240 ----------- 1,570,462 ----------- NUMBER OF SHARES VALUE --------- ----------- METALS - NON-FERROUS--1.0% Phelps Dodge Corp.* ....................... 17,700 $ 571,887 ----------- OIL & GAS EXPLORATION--5.4% Devon Energy Corp. ........................ 14,300 672,100 Diamond Offshore Drilling, Inc. ........... 29,800 665,732 Kerr-McGee Corp. .......................... 15,000 702,750 Nabors Industries, Ltd* ................... 16,600 548,132 Swift Energy Co.* ......................... 36,100 475,076 ----------- 3,063,790 ----------- PACKAGING & CONTAINERS--1.3% Pactiv Corp.* ............................. 40,800 740,928 ----------- PAPER & FORESTRY PRODUCTS--3.2% Abitibi-Consolidated, Inc. ................ 129,100 957,922 Boise Cascade Corp. ....................... 14,800 400,340 Temple-Inland, Inc. ....................... 8,900 455,235 ----------- 1,813,497 ----------- PHARMACEUTICALS--0.8% Shire Pharmaceuticals Group PLC - ADR* .................................... 15,200 443,688 ----------- PUBLISHING & INFORMATION SERVICES--3.5% Knight-Ridder, Inc. ....................... 17,200 1,044,556 Meredith Corp. ............................ 12,800 507,136 Reader's Digest Association, Inc. (The), Class A .......................... 23,500 401,380 ----------- 1,953,072 ----------- REAL ESTATE--0.9% Trizec Properties, Inc. (REIT) ............ 17,000 203,660 Ventas, Inc. (REIT) ....................... 24,100 313,300 ----------- 516,960 ----------- RETAIL--4.6% Foot Locker, Inc.* ........................ 39,800 378,100 Payless ShoeSource, Inc.* ................. 25,100 1,327,790 Toys "R" Us, Inc.* ........................ 66,000 879,780 ----------- 2,585,670 ----------- The accompanying notes are an integral part of the financial statements. 20 BOSTON PARTNERS FAMILY OF FUNDS MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ----------- SEMICONDUCTOR EQUIPMENT & PRODUCTS--2.7% GlobespanVirata, Inc.* .................... 259,000 $ 911,680 National Semiconductor Corp.* ............. 22,100 353,379 Teradyne, Inc.* ........................... 18,580 235,037 ----------- 1,500,096 ----------- STEEL--0.6% United States Steel Corp. ................. 23,700 325,401 ----------- TELECOMMUNICATIONS--0.5% Nortel Networks Corp.* .................... 271,235 284,797 ----------- TEXTILES & APPAREL--1.6% Jones Apparel Group, Inc.* ................ 24,600 887,814 ----------- TOBACCO--1.7% Loews Corp. - Carolina Group .............. 37,100 960,890 ----------- TOTAL COMMON STOCK (Cost $58,322,700) .................... 54,418,430 ----------- SHORT TERM INVESTMENTS--4.0% Wilmington Prime Money Market Portfolio 1.333% 09/03/02 ......................... 2,237,287 2,237,287 ----------- TOTAL SHORT TERM INVESTMENTS (Cost $2,237,287) ..................... 2,237,287 ----------- TOTAL INVESTMENTS--100.6% (Cost $60,559,987) ........................ 56,655,717 ----------- LIABILITIES IN EXCESS OF OTHER ASSETS--(0.6)% ...................... (351,055) ----------- NET ASSETS--100.0% ........................... $56,304,662 =========== ---------- * Non-income producing. REIT-- Real Estate Investment Trust. ADR-- American Depository Receipt. The accompanying notes are an integral part of the financial statements. 21 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ COMMON STOCK--93.9% ADVERTISING--1.1% ADVO, Inc. ................................ 94,165 $ 3,276,000 ------------ AIR TRANSPORT--0.6% ExpressJet Holdings, Inc.* ................ 112,800 1,291,560 Mesaba Holdings, Inc.* .................... 53,200 319,200 ------------ 1,610,760 ------------ AUTOMOTIVE--1.2% Dollar Thrifty Automotive Group, Inc.* ................................... 47,244 829,132 Lithia Motors, Inc.* ...................... 36,500 740,220 National R.V. Holdings, Inc.* ............. 116,300 1,011,810 Oshkosh Truck Corp. ....................... 16,100 907,235 ------------ 3,488,397 ------------ BANKS & SAVINGS & LOANS--3.4% Bay View Capital Corp. .................... 460,300 2,646,725 Brookline Bancorp, Inc. ................... 80,737 1,010,020 Fidelity Bankshares, Inc. ................. 21,600 430,488 First Community Bancorp ................... 21,100 664,650 Flagstar Bancorp, Inc. .................... 25,425 583,504 IndyMac Bancorp, Inc.* .................... 187,200 4,268,160 ITLA Capital Corp.* ....................... 4,800 141,936 Local Financial Corp.* .................... 24,100 356,439 ------------ 10,101,922 ------------ BEVERAGES--0.3% Robert Mondavi Corp. (The), Class A* ................................ 25,700 809,036 ------------ BROADCASTING & PUBLISHING--1.5% Alliance Atlantis Communications, Inc.* ................................... 332,900 3,791,731 Liberty Corp. (The) ....................... 13,700 486,350 ------------ 4,278,081 ------------ BUSINESS & PUBLIC SERVICES--5.8% Administaff, Inc.* ........................ 620,500 1,675,350 American Management Systems, Inc.* ................................... 80,200 1,203,000 NUMBER OF SHARES VALUE --------- ------------ BUSINESS & PUBLIC SERVICES--(CONTINUED) Gevity HR, Inc. ........................... 69,100 $ 224,575 Hall, Kinion & Associates, Inc.* .......... 89,800 449,000 Kendle International, Inc.* ............... 105,600 865,920 Kforce, Inc.* ............................. 226,400 837,680 Medical Staffing Network Holdings, Inc.* ................................... 67,900 1,216,089 MPS Group, Inc.* .......................... 550,700 2,946,245 National Processing, Inc.* ................ 27,700 567,019 Service Corporation International* .......................... 1,440,300 5,357,916 Spherion Corp.* ........................... 120,100 990,825 TMP Worldwide, Inc.* ...................... 70,700 772,044 ------------ 17,105,663 ------------ CHEMICALS--1.6% Olin Corp. ................................ 126,400 2,401,600 Spartech Corp. ............................ 104,300 2,232,020 ------------ 4,633,620 ------------ COMPUTERS, SOFTWARE & SERVICES--5.2% Adaptec, Inc.* ............................ 136,300 835,519 CompuCom Systems, Inc.* ................... 279,200 1,624,385 Covansys Corp.* ........................... 158,700 469,752 DataTRACK International, Inc.* ............ 275,900 518,692 Hyperion Solutions Corp.* ................. 98,000 2,224,600 Keane, Inc.* .............................. 16,300 132,030 Maxtor Corp.* ............................. 388,156 1,440,059 MSC.Software Corp. ........................ 74,000 777,000 Parametric Technology Corp.* .............. 554,100 1,263,348 PC-Tel, Inc.* ............................. 261,100 1,556,156 Pomeroy Computer Resources, Inc.* ................................... 113,796 1,347,345 SPSS, Inc.* ............................... 90,000 1,035,000 Tier Technologies, Inc. ................... 69,200 1,323,796 Trident Microsystems, Inc.* ............... 67,100 253,638 Verint Systems, Inc.* ..................... 53,800 462,680 ------------ 15,264,000 ------------ CONSTRUCTION & BUILDING MATERIALS--1.4% Butler Manufacturing Co. .................. 34,900 855,050 Champion Enterprises, Inc.* ............... 492,300 1,319,364 The accompanying notes are an integral part of the financial statements. 22 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ CONSTRUCTION & BUILDING MATERIALS--(CONTINUED) Granite Construction, Inc. ................ 50,500 $ 924,150 Modtech Holdings, Inc.* ................... 88,000 902,000 ------------ 4,000,564 ------------ CONSULTING SERVICES--2.7% DiamondCluster International, Inc.* ................................... 208,055 724,031 First Consulting Group, Inc.* ............. 134,640 976,140 Navigant Consulting, Inc.* ................ 716,100 4,167,702 Tetra Tech, Inc.* ......................... 225,300 2,045,724 ------------ 7,913,597 ------------ CONSUMER PRODUCTS & SERVICES--2.1% Pennzoil-Quaker State Co. ................. 68,300 1,490,989 Pittston Brink's Group .................... 61,000 1,470,100 Rent-A-Center, Inc.* ...................... 31,200 1,704,768 Silgan Holdings, Inc.* .................... 44,200 1,397,162 ------------ 6,063,019 ------------ DATA PROCESSING & REPRODUCTION--0.3% FileNET Corp.* ............................ 72,100 979,118 ------------ DISTRIBUTION--0.8% Bell Microproducts, Inc.* ................. 12,600 68,796 Daisytek International Corp.* ............. 54,400 720,800 Owens & Minor, Inc. ....................... 113,700 1,642,965 ------------ 2,432,561 ------------ ELECTRIC UTILITIES--2.2% El Paso Electric Co.* ..................... 62,100 729,675 Green Mountain Power Corp. ................ 18,900 331,695 Sierra Pacific Resources .................. 711,800 5,267,320 ------------ 6,328,690 ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--1.4% C&D Technologies, Inc. .................... 50,200 815,750 GrafTech International Ltd.* .............. 183,700 1,590,842 Technitrol, Inc. .......................... 46,100 917,851 Ultratech Stepper, Inc.* .................. 61,400 780,394 ------------ 4,104,837 ------------ NUMBER OF SHARES VALUE --------- ------------ ELECTRONICS--0.8% Integrated Electrical Services, Inc.* ................................... 473,700 $ 2,340,078 ------------ ENERGY--0.6% Calpine Corp.* ............................ 340,900 1,663,592 ------------ ENVIRONMENTAL SERVICES--0.1% Exponent, Inc.* ........................... 33,300 413,586 ------------ FINANCIAL SERVICES--6.8% Advanta Corp., Class B .................... 199,600 1,668,656 BKF Capital Group, Inc. ................... 29,300 645,479 Century Business Services, Inc.* .......... 343,200 926,640 Charter Municipal Mtg. Accpt. Co. ......... 51,500 898,675 Federal Agricultural Mortgage Corp., Class C* ......................... 145,900 4,085,200 Gladstone Capital Corp. ................... 105,800 1,825,050 Metris Companies, Inc. .................... 234,700 938,800 MicroFinancial, Inc. ...................... 139,900 698,101 Oxford Financial Corp. .................... 130,000 1,235,000 Saxon Capital, Inc.* ...................... 453,400 6,392,940 Van der Moolen Holding N.V. - ADR* .................................... 38,000 820,800 ------------ 20,135,341 ------------ GAMBLING--1.0% MTR Gaming Group, Inc.* ................... 74,700 644,661 Scientific Games Corp.* ................... 315,800 2,286,392 ------------ 2,931,053 ------------ GAS & OIL SUPPLIER--0.3% World Fuel Services Corp. ................. 47,200 904,352 ------------ HEALTHCARE--8.4% Apria Healthcare Group, Inc.* ............. 369,300 8,523,444 Kindred Healthcare, Inc.* ................. 75,700 2,835,722 NBTY, Inc.* ............................... 312,200 4,751,684 RehabCare Group, Inc.* .................... 231,400 5,391,620 Renal Care Group, Inc.* ................... 78,900 2,590,287 Res-Care, Inc.* ........................... 115,400 553,920 ------------ 24,646,677 ------------ The accompanying notes are an integral part of the financial statements. 23 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ INSURANCE--10.0% American Physicians Capital, Inc.* ................................... 92,900 $ 1,696,354 Annuity and Life Re (Holdings) Ltd. .................................... 159,500 586,960 Arch Capital Group Ltd.* .................. 183,900 5,151,039 CNA Surety Corp. .......................... 73,000 965,060 FPIC Insurance Group, Inc.* ............... 83,700 760,833 Hilb, Rogal & Hamilton Co. ................ 62,900 2,764,455 Hub International Ltd.* ................... 63,900 980,865 Insurance Auto Auctions, Inc.* ............ 65,514 1,143,219 IPC Holdings Ltd.* ........................ 209,500 6,322,710 Max Re Capital Ltd. ....................... 111,500 1,367,993 Odyssey Re Holdings Corp. ................. 198,300 3,422,658 PMA Capital Corp. ......................... 52,150 976,770 Scottish Annuity & Life Holdings Ltd. .................................... 115,200 1,937,664 W.R. Berkley Corp. ........................ 44,200 1,487,772 ------------ 29,564,352 ------------ INTERNET--2.0% Centra Software, Inc.* .................... 224,800 310,224 DoubleClick, Inc.* ........................ 591,500 3,330,145 Earthlink, Inc.* .......................... 191,500 1,168,150 ProQuest Co.* ............................. 36,200 1,201,840 ------------ 6,010,359 ------------ LEISURE & ENTERTAINMENT--1.2% Multimedia Games, Inc.* ................... 44,500 945,625 Topps Co., Inc. (The)* .................... 34,600 304,480 WMS Industries, Inc.* ..................... 151,300 2,186,285 ------------ 3,436,390 ------------ MACHINERY--0.4% AGCO Corp.* ............................... 58,600 1,120,432 ------------ MANUFACTURING--2.2% Actuant Corp., Class A* ................... 26,900 1,028,925 Foamex International, Inc.* ............... 186,000 1,023,000 Quixote Corp. ............................. 120,300 2,039,085 Rayovac Corp.* ............................ 66,100 898,960 Toro Co. (The) ............................ 28,300 1,577,725 ------------ 6,567,695 ------------ NUMBER OF SHARES VALUE --------- ------------ MEDICAL EQUIPMENT & SUPPLIES--4.4% Cooper Companies, Inc., (The) ............. 46,400 $ 2,106,096 Cytyc Corp.* .............................. 193,600 1,905,024 INAMED Corp.* ............................. 48,700 1,142,015 Option Care, Inc.* ........................ 428,150 4,808,124 Sola International, Inc.* ................. 321,900 3,009,765 ------------ 12,971,024 ------------ METALS & MINING--0.5% Joy Global, Inc.* ......................... 112,300 1,457,654 ------------ OIL & GAS EXPLORATION--1.1% EXCO Resources, Inc.* ..................... 16,600 265,600 Parker Drilling Co.* ...................... 223,500 525,225 Swift Energy Co.* ......................... 179,400 2,360,904 ------------ 3,151,729 ------------ OIL FIELD MACHINERY & EQUIPMENT--0.4% Grant Prideco, Inc.* ...................... 115,600 1,134,036 ------------ OIL SERVICES--1.6% Cal Dive International, Inc.* ............. 217,100 4,048,915 Enbridge Energy Partners, L.P. ............ 13,700 608,965 ------------ 4,657,880 ------------ PACKAGING & CONTAINERS--0.7% Packaging Dynamics Corp. .................. 64,060 421,515 Tupperware Corp. .......................... 94,000 1,714,560 ------------ 2,136,075 ------------ PRINTING SERVICES--0.6% Consolidated Graphics, Inc.* .............. 49,300 844,016 Wallace Computer Services, Inc. ........... 56,100 1,038,972 ------------ 1,882,988 ------------ PUBLISHING & INFORMATION SERVICES--1.0% Pulitzer, Inc. ............................ 28,700 1,267,105 R.H. Donnelley Corp.* ..................... 59,300 1,474,198 Value Line, Inc. .......................... 7,700 327,951 ------------ 3,069,254 ------------ RAILROADS--1.3% RailAmerica, Inc.* ........................ 417,600 3,904,560 ------------ The accompanying notes are an integral part of the financial statements. 24 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ REAL ESTATE--6.7% Coldwater Creek, Inc.* .................... 31,000 $ 470,580 Corporate Office Properties Trust (REIT) .................................. 182,575 2,574,308 FBR Asset Investment Corp. (REIT) .................................. 51,700 1,747,460 Insignia Financial Group, Inc.* ........... 272,400 2,206,440 Jones Lang LaSalle, Inc.* ................. 27,400 577,318 LNR Property Corp. ........................ 73,200 2,543,700 Redwood Trust, Inc. (REIT) ................ 160,600 4,792,304 RFS Hotel Investors, Inc. (REIT) .......... 116,700 1,487,925 Trammell Crow Co.* ........................ 342,900 3,429,000 ------------ 19,829,035 ------------ RETAIL--5.4% Charming Shoppes, Inc.* ................... 408,400 2,801,624 Claire's Stores, Inc. ..................... 49,300 1,049,104 Duane Reade, Inc.* ........................ 174,400 2,764,240 F.A.O., Inc.* ............................. 184,810 685,645 Finish Line, Inc. (The), Class A* ......... 163,100 1,451,590 Friedman's, Inc. .......................... 171,700 1,407,940 Galyan's Trading Co.* ..................... 47,200 502,208 Men's Wearhouse, Inc. (The)* .............. 68,000 1,285,200 Mothers Work, Inc.* ....................... 14,600 509,540 Oakley, Inc.* ............................. 54,600 715,260 Rite Aid Corp.* ........................... 292,500 614,250 School Specialty, Inc.* ................... 21,600 509,544 Steven Madden Ltd.* ....................... 57,000 1,033,410 Tommy Hilfiger Corp.* ..................... 52,500 630,000 Vans, Inc.* ............................... 11,000 69,960 ------------ 16,029,515 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--0.4% Brooks-PRI Automation, Inc.* .............. 32,300 552,330 Helix Technology Corp. .................... 53,400 574,050 ------------ 1,126,380 ------------ NUMBER OF SHARES VALUE --------- ------------ TELECOMMUNICATIONS--1.2% Lightbridge, Inc.* ........................ 231,900 $ 1,653,447 Metro One Telecommunications, Inc.* ................................... 65,700 800,883 Somera Communications, Inc* ............... 400,400 1,101,100 ------------ 3,555,430 ------------ TOBACCO--2.1% DIMON, Inc. ............................... 333,600 2,205,096 Standard Commercial Corp. ................. 115,700 2,205,242 Universal Corp. ........................... 48,200 1,848,470 ------------ 6,258,808 ------------ TRANSPORTATION--0.9% CP Ships Ltd.* ............................ 119,300 1,295,598 Offshore Logistics, Inc.* ................. 19,100 343,991 UTI Worldwide, Inc.* ...................... 53,200 881,524 ------------ 2,521,113 ------------ TRAVEL SERVICES--0.2% Ambassadors Group, Inc.* .................. 30,500 345,260 Ambassadors International, Inc.* .......... 30,500 260,775 ------------ 606,035 ------------ TOTAL COMMON STOCK (Cost $295,930,387) ................... 276,415,288 ------------ PREFERRED STOCKS--0.2% OIL & GAS EXPLORATION--0.2% EXCO Resources, Inc. 5.0% 05/23/03 ........................... 33,160 557,088 ------------ TOTAL PREFERRED STOCKS (Cost $670,942) ....................... 557,088 ------------ The accompanying notes are an integral part of the financial statements. 25 BOSTON PARTNERS FAMILY OF FUNDS SMALL CAP VALUE FUND II PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ SHORT TERM INVESTMENTS--3.7% Wilmington Prime Money Market Portfolio 1.333% 09/03/02 ......................... 10,773,821 $ 10,773,821 ------------ TOTAL SHORT TERM INVESTMENTS (Cost $10,773,821) .................... 10,773,821 ------------ TOTAL INVESTMENTS--97.8% (Cost $307,375,150) ....................... 287,746,197 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--2.2% ......................... 6,567,417 ------------ NET ASSETS--100.0% ........................... $294,313,614 ============ ---------- * Non-income producing. ADR -- American Depository Receipt. REIT -- Real Estate Investment Trust. The accompanying notes are an integral part of the financial statements. 26 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ---------- COMMON STOCK--90.5% AIR TRANSPORT--0.8% ExpressJet Holdings, Inc.* ................ 1,275 $ 14,599 ---------- BROADCASTING & PUBLISHING--0.7% Liberty Media Corp., Class A* ............. 1,680 14,045 ---------- CHEMICALS--0.2% Spartech Corp. ............................ 205 4,387 ---------- COMPUTERS, SOFTWARE & SERVICES--2.2% Adaptec, Inc.* ............................ 330 2,023 E.piphany, Inc.* .......................... 150 495 Hewlett-Packard Co. ....................... 760 10,207 Microsoft Corp.* .......................... 220 10,797 Perot Systems Corp., Class A* ............. 1,235 14,635 Vignette Corp.* ........................... 4,370 3,889 ---------- 42,046 ---------- CONSUMER PRODUCTS & SERVICES--2.0% Pittston Brink's Group .................... 1,550 37,355 ---------- DATA PROCESSING & REPRODUCTION--1.1% Dun & Bradstreet Corp. (The)* ............. 350 12,352 Global Payments, Inc. ..................... 340 9,472 ---------- 21,824 ---------- DISTRIBUTION--0.7% W.W. Grainger, Inc. ....................... 305 13,740 ---------- DIVERSIFIED OPERATIONS--0.5% Chemed Corp. .............................. 305 10,233 ---------- ELECTRIC UTILITIES--1.7% Korea Electric Power (KEPCO) Corp. - ADR ............................. 1,210 12,100 PG&E Corp. ................................ 900 10,215 Sierra Pacific Resources .................. 1,245 9,213 ---------- 31,528 ---------- ELECTRICAL EQUIPMENT--0.5% Makita Corp. - ADR ........................ 1,560 9,383 ---------- NUMBER OF SHARES VALUE --------- ---------- ELECTRONIC COMPONENTS & INSTRUMENTS--0.7% Agere Systems, Inc., Class A* ............. 2,535 $ 4,030 Altera Corp.* ............................. 355 3,802 Xilinx, Inc.* ............................. 240 4,637 ---------- 12,469 ---------- ENERGY--1.5% Aquila, Inc. .............................. 3,805 14,954 Calpine Corp.* ............................ 2,700 13,176 ---------- 28,130 ---------- FINANCIAL SERVICES--12.6% BKF Capital Group, Inc. ................... 290 6,389 Countrywide Credit Industries, Inc. .................................... 650 34,118 Deluxe Corp. .............................. 345 15,684 Fannie Mae ................................ 260 19,703 Freddie Mac ............................... 795 50,959 MBIA, Inc. ................................ 1,055 48,488 MCG Capital Corp. ......................... 605 9,952 Moody's Corp. ............................. 260 12,563 Saxon Capital, Inc.* ...................... 1,445 20,375 SLM Corp. ................................. 220 20,163 ---------- 238,394 ---------- FOOD & BEVERAGE--1.5% Chiquita Brands International, Inc.* ................................... 655 10,709 Nestle SA - ADR ........................... 230 11,926 Tyson Foods, Inc., Class A ................ 405 5,030 ---------- 27,665 ---------- HEALTHCARE--3.4% Kindred Healthcare, Inc.* ................. 365 13,673 Lincare Holdings, Inc.* ................... 560 17,948 Renal Care Group, Inc.* ................... 1,005 32,994 ---------- 64,615 ---------- HOUSEHOLD PRODUCTS--0.5% National Presto Industries, Inc. .......... 305 9,040 ---------- The accompanying notes are an integral part of the financial statements. 27 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ---------- INSURANCE--18.7% ACE Ltd. .................................. 2,005 $ 63,779 Alleghany Corp.* .......................... 155 28,326 Allmerica Financial Corp. ................. 670 14,908 AmerUs Group Co. .......................... 570 18,234 Arch Capital Group Ltd.* .................. 160 4,482 CNA Financial Corp.* ...................... 460 12,609 IPC Holdings Ltd.* ........................ 635 19,164 Leucadia National Corp. ................... 655 22,722 Loews Corp. ............................... 1,185 62,224 Merchants Group, Inc. ..................... 55 1,273 Millea Holdings, Inc. - ADR* .............. 130 5,291 PartnerRe Ltd. ............................ 285 12,814 Radian Group, Inc. ........................ 440 19,122 Scottish Annuity & Life Holdings Ltd. .................................... 810 13,624 Travelers Property Casualty Corp., Class A* ................................ 255 4,009 UnumProvident Corp. ....................... 300 6,948 White Mountains Insurance Group Ltd. .................................... 145 45,095 ---------- 354,624 ---------- MANUFACTURING--3.4% Lancaster Colony Corp. .................... 480 19,771 Reebok International Ltd.* ................ 660 16,144 Tyco International Ltd. ................... 1,800 28,242 ---------- 64,157 ---------- MEDICAL EQUIPMENT & SUPPLIES--4.0% Alcon, Inc.* .............................. 480 17,746 C.R. Bard, Inc. ........................... 265 14,506 Guidant Corp.* ............................ 165 6,072 INAMED Corp.* ............................. 1,230 28,843 Smith & Nephew plc - ADR .................. 160 9,376 ---------- 76,543 ---------- OIL & GAS EXPLORATION--4.6% Burlington Resources, Inc. ................ 250 9,617 El Paso Corp. ............................. 1,125 19,024 ENI S.p.A. - ADR .......................... 230 17,342 NUMBER OF SHARES VALUE --------- ---------- OIL & GAS EXPLORATION--(CONTINUED) EOG Resources, Inc. ....................... 310 $ 10,800 Occidental Petroleum Corp. ................ 755 22,424 Petroleo Brasileiro S.A. - ADR ............ 445 7,098 ---------- 86,305 ---------- OIL SERVICES--3.3% Conoco, Inc. .............................. 1,795 44,068 Marathon Oil Corp. ........................ 735 18,191 ---------- 62,259 ---------- PHARMACEUTICALS--4.0% Bristol-Myers Squibb Co. .................. 545 13,598 Johnson & Johnson ......................... 205 11,134 Merck & Co., Inc. ......................... 795 40,163 Schering-Plough Corp. ..................... 500 11,540 ---------- 76,435 ---------- PUBLISHING & INFORMATION SERVICES--2.1% Reader's Digest Association, Inc. (The), Class A .......................... 2,345 40,053 ---------- REAL ESTATE--8.0% Archstone-Smith Trust (REIT) .............. 515 13,570 Camden Property Trust (REIT) .............. 115 4,123 Consolidated-Tomoka Land Co. .............. 185 3,352 Equity Office Properties Trust (REIT) .................................. 55 1,534 FBR Asset Investment Corp. (REIT) ................................. 740 25,012 LNR Property Corp. ........................ 1,320 45,870 Mid-America Apartment Communities, Inc. (REIT) ................ 70 1,764 National Health Investors, Inc. (REIT) .................................. 550 8,041 Public Storage, Inc. (REIT) ............... 280 8,932 Trizec Properties, Inc. (REIT) ............ 2,035 24,379 Ventas, Inc. (REIT) ....................... 1,230 15,990 ---------- 152,567 ---------- The accompanying notes are an integral part of the financial statements. 28 BOSTON PARTNERS FAMILY OF FUNDS ALL-CAP VALUE FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ---------- RETAIL--2.9% Barnes & Noble, Inc.* ..................... 535 $ 12,246 Borders Group, Inc.* ...................... 680 12,825 Payless ShoeSource, Inc.* ................. 405 21,424 Tommy Hilfiger Corp.* ..................... 730 8,760 ---------- 55,255 ---------- TELECOMMUNICATIONS & EQUIPMENT--3.9% 3Com Corp.* ............................... 3,375 16,638 AT&T Canada Inc.* ......................... 1,160 37,155 Telephone and Data Systems, Inc. .......... 325 19,419 ---------- 73,212 ---------- TOBACCO--4.5% Universal Corp. ........................... 460 17,641 UST, Inc. ................................. 1,940 67,337 ---------- 84,978 ---------- TRANSPORTATION--0.5% Expeditors International of Washington, Inc. ........................ 165 4,348 Knightsbridge Tankers Ltd. ................ 350 4,679 ---------- 9,027 ---------- TOTAL COMMON STOCK (Cost $1,795,231) ..................... 1,714,868 ---------- PREFERRED STOCKS--1.2% AUTOMOBILES--0.6% Ford Capital Trust II 6.5% ................ 240 11,028 ---------- BUILDING & BUILDING MATERIALS--0.2% Fleetwood Capital II 9.5% ................. 95 1,591 Fleetwood Capital Trust 6.0% .............. 200 2,450 ---------- 4,041 ---------- COMPUTERS--0.2% Lucent Technologies 8.0% .................. 10 4,449 ---------- OIL & GAS EXPLORATION--0.2% El Paso Corp. 9.0% ........................ 95 4,190 ---------- TOTAL PREFERRED STOCKS (Cost $28,965) ........................ 23,708 ---------- NUMBER OF SHARES VALUE --------- ---------- RIGHTS/WARRANTS--0.3% BANKS & SAVINGS & LOANS--0.3% Golden State Bancorp Litigation Tracking Warrants expire 12/31/60 ......................... 4,280 $ 5,008 ---------- TOTAL RIGHTS/WARRANTS (Cost $4,965) ......................... 5,008 ---------- REGISTERED INVESTMENT COMPANY--0.1% Morgan Stanley Asia-Pacific Fund, Inc. .................................... 175 1,442 ---------- TOTAL REGISTERED INVESTENT COMPANY (Cost $1,509) ......................... 1,442 ---------- PAR (000) ----- ZERO COUPON BONDS--0.3% Shaw Group, Inc., (The) 0.0% 05/01/21 ........................... $10 5,187 ---------- TOTAL ZERO COUPON BONDS (Cost $4,860) ......................... 5,187 ---------- NUMBER OF SHARES --------- SHORT TERM INVESTMENTS--6.5% Wilmington Prime Money Market Portfolio 1.333% 09/03/02 ......................... 122,601 122,601 ---------- TOTAL SHORT TERM INVESTMENTS (Cost $122,601) ....................... 122,601 ---------- TOTAL INVESTMENTS--98.9% (Cost $1,958,131) ......................... 1,872,814 ---------- OTHER ASSETS IN EXCESS OF LIABILITIES--1.1% ......................... 21,117 ---------- NET ASSETS--100.0% ........................... $1,893,931 ========== ---------- * Non-income producing. REIT -- Real Estate Investment Trust. ADR -- American Depository Receipt. The accompanying notes are an integral part of the financial statements. 29 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ LONG POSITIONS--103.2% DOMESTIC COMMON STOCK--90.8% AEROSPACE/DEFENSE--0.6% GenCorp, Inc. ............................. 65,800 $ 713,930 ------------ BANKS & SAVINGS & LOANS--1.8% Bay View Capital Corp.+ ................... 170,779 981,979 First International Bancorp, Inc. - Restricted Escrow Shares(1) ............. 11,100 0 FleetBoston Financial Corp.+ .............. 44,500 1,073,785 ------------ 2,055,764 ------------ BROADCASTING & PUBLISHING--0.8% Liberty Corp. (The)+ ...................... 27,000 958,500 ------------ BUSINESS & PUBLIC SERVICES--6.6% Alderwoods Group, Inc.*+ .................. 66,800 428,188 Gevity HR, Inc. ........................... 178,100 578,825 Interep National Radio Sales, Inc., Class A* ................................ 283,700 950,395 Interpool, Inc.+ .......................... 27,000 359,370 Kelly Services, Inc., Class A+ ............ 44,100 1,040,319 Kforce, Inc.* ............................. 218,500 808,450 Medical Staffing Network Holdings, Inc.*+ .................................. 36,100 646,551 Service Corporation International* ........ 383,000 1,424,760 Spherion Corp.*+ .......................... 49,400 407,550 VitalWorks, Inc.* ......................... 98,000 786,940 Workflow Management, Inc.* ................ 77,600 194,000 ------------ 7,625,348 ------------ CHEMICALS--0.6% Southwall Technologies, Inc.* ............. 243,400 661,805 ------------ COMPUTERS, SOFTWARE & SERVICES--7.9% Computer Network Technology Corp.*+ ................................. 120,300 743,454 Compuware Corp.* .......................... 300,500 1,090,815 Fidelity National Information Solutions, Inc.* ........................ 39,046 901,953 Intuit, Inc.*+ ............................ 23,600 1,053,268 MAPICS, Inc.*+ ............................ 101,800 635,334 Parametric Technology Corp.* .............. 227,800 519,384 Pervasive Software, Inc.* ................. 225,300 732,225 NUMBER OF SHARES VALUE --------- ------------ COMPUTERS, SOFTWARE & SERVICES--(CONTINUED) Storage Technology Corp.* ................. 77,800 $ 1,061,970 TechTeam Global, Inc.*+ ................... 78,400 540,176 Trident Microsystems, Inc.* ............... 201,700 762,426 Vignette Corp.* ........................... 276,500 246,085 Wipro Ltd.+ - ADR ......................... 31,000 809,100 ------------ 9,096,190 ------------ CONSTRUCTION & HOUSING--0.5% Cavalier Homes, Inc.* ..................... 157,300 407,407 Southern Energy Homes, Inc.* .............. 68,040 102,808 ------------ 510,215 ------------ CONSULTING SERVICES--1.1% Navigant Consulting, Inc.*+ ............... 75,450 439,119 SITEL Corp.* .............................. 494,900 816,585 ------------ 1,255,704 ------------ CONSUMER PRODUCTS & SERVICES--3.4% Concord Camera Corp.* ..................... 210,700 990,290 Helen of Troy Ltd.*+ ...................... 83,900 1,003,444 Mattel, Inc.+ ............................. 60,100 1,167,743 Rent-Way, Inc.*+ .......................... 195,200 780,800 ------------ 3,942,277 ------------ CONTAINERS--2.6% BWAY Corp.*+ .............................. 70,100 1,082,344 Crown Cork & Seal Co., Inc.*+ ............. 148,500 864,270 Graphic Packaging International Corp.*+ ................................. 135,600 1,091,580 ------------ 3,038,194 ------------ DATA PROCESSING & REPRODUCTION--0.2% InfoUSA, Inc.* ............................ 42,600 217,260 ------------ DIVERSIFIED--2.1% Eaton Corp.+ .............................. 14,600 1,032,804 Viad Corp.+ ............................... 63,800 1,411,894 ------------ 2,444,698 ------------ ELECTRIC UTILITIES--0.6% Green Mountain Power Corp.+ ............... 40,100 703,755 ------------ The accompanying notes are an integral part of the financial statements. 30 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ ELECTRONICS--0.9% Tech Data Corp.*+ ......................... 32,200 $ 1,064,854 ------------ ENGINE MANUFACTURING--0.9% Briggs & Stratton Corp.+ .................. 26,200 1,028,350 ------------ ENGINEERING--0.9% Fluor Corp.+ .............................. 38,400 1,062,144 ------------ ENVIRONMENTAL SERVICES--2.0% Clean Harbors, Inc.*+ ..................... 73,500 739,403 Exponent, Inc.*+ .......................... 52,800 655,776 Fuel-Tech N.V.* ........................... 188,200 950,410 ------------ 2,345,589 ------------ FINANCIAL SERVICES--6.9% A.G. Edwards, Inc.+ ....................... 29,400 1,106,616 Ameritrade Holding Corp., Class A* ................................ 314,800 1,142,724 BKF Capital Group, Inc.+ .................. 37,400 823,922 Century Business Services, Inc.* .......... 191,800 517,860 London Pacific Group Ltd. - ADR ........... 20,670 51,675 Metris Companies, Inc.+ ................... 429,200 1,716,800 MicroFinancial, Inc. ...................... 42,700 213,073 SoundView Technology Group, Inc.* ................................... 1,099,600 1,472,364 SWS Group, Inc.+ .......................... 51,700 709,324 Westwood Holdings Group, Inc.+ ............ 12,925 187,413 ------------ 7,941,771 ------------ FOOD & BEVERAGE--1.0% Tyson Foods, Inc., Class A+ ............... 93,300 1,158,786 ------------ HEALTHCARE--6.7% America Service Group, Inc.*+ ............. 35,300 442,309 Conventry Health Care, Inc.* .............. 33,900 1,058,358 Gentiva Health Services, Inc.+ ............ 199,800 1,618,380 HEALTHSOUTH Corp.* ........................ 93,600 504,504 Kindred Healthcare, Inc.*+ ................ 50,000 1,873,000 Oxford Health Plans, Inc.*+ ............... 27,100 1,098,905 PacifiCare Health Systems, Inc.*+ ......... 50,500 1,160,995 ------------ 7,756,451 ------------ NUMBER OF SHARES VALUE --------- ------------ INSURANCE--6.3% ACE Ltd.+ ................................. 39,700 $ 1,262,857 Allmerica Financial Corp.+ ................ 39,700 883,325 American Physicians Capital, Inc.*+ .................................. 25,100 458,326 Annuity and Life Re (Holdings) Ltd.+ ................................... 118,000 434,240 Highlands Insurance Group, Inc.* .......... 41,100 123 Nationwide Financial Services, Inc., Class A+ ................................ 32,300 985,150 Phoenix Companies, Inc. (The)+ ............ 61,200 973,080 Radian Group, Inc.+ ....................... 51,900 2,255,574 ------------ 7,252,675 ------------ INTERNET SOFTWARE & SERVICES--8.3% Agile Software Corp.*+ .................... 175,500 1,182,870 Art Technology Group, Inc.* ............... 808,100 751,533 Avocent Corp.*+ ........................... 61,800 1,001,778 Corillian Corp.* .......................... 166,900 168,402 EDGAR Online, Inc.* ....................... 261,500 353,025 ePresence, Inc.* .......................... 74,100 129,675 Hoover's, Inc.* ........................... 74,500 464,135 Keynote Systems, Inc.*+ ................... 146,500 1,067,985 Netopia, Inc.* ............................ 115,300 223,682 Packeteer, Inc.* .......................... 172,600 785,330 RADVision Ltd.* ........................... 195,000 975,000 RADWARE Ltd.*+ ............................ 82,000 707,660 Register.com, Inc.* ....................... 105,200 468,140 ScreamingMedia, Inc.* ..................... 164,400 212,076 SmartForce Public Limited Co. - ADR* .................................... 249,800 1,081,634 ------------ 9,572,925 ------------ LEISURE & ENTERTAINMENT--3.3% Ameristar Casinos, Inc.*+ ................. 45,300 764,664 Multimedia Games, Inc.*+ .................. 45,600 969,000 Regal Entertainment Group, Class A*+ ............................... 24,700 433,485 WMS Industries, Inc.*+ .................... 110,000 1,589,500 ------------ 3,756,649 ------------ The accompanying notes are an integral part of the financial statements. 31 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ MACHINERY--1.6% Columbus McKinnon Corp.*+ ................. 118,000 $ 738,680 Kennametal, Inc.+ ......................... 30,900 1,073,775 ------------ 1,812,455 ------------ MANUFACTURING--1.2% Foamex International, Inc.*+ .............. 65,400 359,700 Saucony, Inc., Class B*+ .................. 74,500 490,910 York International Corp.+ ................. 17,000 542,300 ------------ 1,392,910 ------------ MEDICAL EQUIPMENT AND SUPPLIES--1.4% INAMED Corp.*+ ............................ 35,600 834,820 Prime Medical Services, Inc.*+ ............ 74,400 796,080 ------------ 1,630,900 ------------ METALS - STEEL--0.2% Universal Stainless & Alloy Products, Inc.*+ .................................. 38,300 279,590 ------------ OFFICE EQUIPMENT & SUPPLIES--2.8% Danka Business Systems PLC - ADR* .................................... 480,900 1,298,430 Office Depot, Inc.+ ....................... 94,700 1,223,524 Staples, Inc.*+ ........................... 50,900 707,510 ------------ 3,229,464 ------------ PAPER & FORESTRY PRODUCTS--1.0% Caraustar Industries, Inc.+ ............... 109,600 1,161,760 ------------ PHARMACEUTICALS--3.8% Medarex, Inc.*+ ........................... 109,700 669,170 Pfizer, Inc.+ ............................. 42,600 1,409,208 Pharmaceutical Resources, Inc.+ ........... 47,700 1,247,355 Telik, Inc.*+ ............................. 76,400 1,071,892 ------------ 4,397,625 ------------ PUBLISHING & INFORMATION SERVICES--1.0% Knight-Ridder, Inc.+ ...................... 19,100 1,159,943 ------------ NUMBER OF SHARES VALUE --------- ------------ RESTAURANTS--1.4% Friendly Ice Cream Corp.*+ ................ 74,500 $ 551,300 Triarc Companies, Inc.+ ................... 41,700 1,029,990 ------------ 1,581,290 ------------ RETAIL--5.0% Dan River, Inc., Class A* ................. 79,800 259,350 Insight Enterprises, Inc.*+ ............... 114,700 1,291,522 Payless ShoeSource, Inc.*+ ................ 20,200 1,068,580 Pep Boys - Manny, Moe & Jack, (The)+ .................................. 99,300 1,410,060 Sports Authority, Inc. (The)+ ............. 147,600 794,088 Zale Corp.*+ .............................. 29,000 880,150 ------------ 5,703,750 ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--0.5% hi/fn, Inc.*+ ............................. 92,500 516,391 ------------ TELECOMMUNICATIONS & EQUIPMENT--2.4% Alvarion Ltd.* ............................ 132,000 297,000 Glenayre Technologies, Inc.* .............. 178,300 205,045 Harmonic, Inc* ............................ 296,200 755,310 Paradyne Networks, Inc.* .................. 73,350 156,969 Scientific-Atlanta, Inc.+ ................. 51,600 760,584 Sunshine PCS Corp., Class A* .............. 2,525 1,086 Ulticom, Inc.*+ ........................... 92,000 550,160 ------------ 2,726,154 ------------ TEXTILES & APPAREL--0.7% Jones Apparel Group, Inc.*+ ............... 23,100 833,679 ------------ TRANSPORTATION - SHIPPING--0.8% Hub Group, Inc., Class A*+ ................ 60,700 300,465 Sea Containers Ltd., Class A+ ............. 52,700 579,700 ------------ 880,165 ------------ WASTE MANAGEMENT--1.0% Republic Services, Inc., Class A*+ ........ 57,300 1,180,380 ------------ TOTAL DOMESTIC COMMON STOCK (Cost $125,737,637) ................... 104,650,290 ------------ The accompanying notes are an integral part of the financial statements. 32 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ SHORT-TERM INVESTMENTS--12.4% Wilmington Prime Money Market Portfolio 1.333% 09/03/02 ......................... 14,270,735 $ 14,270,735 ------------ TOTAL SHORT-TERM INVESTMENTS (Cost $14,270,735) .................... 14,270,735 ------------ TOTAL LONG POSITIONS--103.2% (Cost $140,008,372) ................... 118,921,025 ------------ SECURITIES SOLD SHORT--(82.1%) ADVERTISING SERVICES--(0.3%) Getty Images, Inc. ........................ (17,200) (309,944) ------------ AEROSPACE & DEFENSE--(0.1%) Environmental Tectonics Corp. ............. (28,600) (178,750) ------------ AIR TRANSPORT--(1.3%) Alaska Air Group, Inc. .................... (13,700) (334,691) JetBlue Airways Corp. ..................... (25,500) (981,750) US Airways Group, Inc. .................... (187,500) (131,250) ------------ (1,447,691) ------------ AUTOMOTIVE--(1.3%) Autoliv, Inc. ............................. (32,000) (700,800) Group 1 Automotive, Inc. .................. (11,500) (313,950) Sports Resorts International, Inc. .................................... (51,600) (188,340) United Auto Group, Inc. ................... (19,500) (310,245) ------------ (1,513,335) ------------ BUILDING & BUILDING MATERIALS--(3.8%) Astec Industries, Inc. .................... (26,400) (350,328) Beazer Homes USA, Inc. .................... (5,700) (365,826) Hovanian Enterprises, Inc. ................ (30,600) (952,272) Kb Home ................................... (18,400) (882,280) Ryland Group, Inc. (The) .................. (20,900) (891,385) Toll Brothers, Inc. ....................... (36,200) (905,000) ------------ (4,347,091) ------------ NUMBER OF SHARES VALUE --------- ------------ BUSINESS & PUBLIC SERVICES--(3.9%) ARAMARK Corp., Class B .................... (38,800) $ (878,820) Gaiam, Inc. ............................... (28,700) (321,727) Goodyear Tire & Rubber Co., (The) ................................... (37,700) (509,704) Mobile Mini, Inc. ......................... (26,400) (405,240) Paychex, Inc. ............................. (22,900) (535,860) SCP Pool Corp. ............................ (26,300) (726,406) TRC Companies, Inc. ....................... (19,500) (340,665) Xerox Corp. ............................... (110,700) (776,007) ------------ (4,494,429) ------------ CHEMICALS--(0.4%) Cabot Corp. ............................... (18,300) (436,272) ------------ COMPUTERS, SOFTWARE & SERVICES--(6.0%) Authentidate Holding Corp. ................ (24,500) (55,125) Brocade Communications Systems, Inc. ........................... (60,400) (873,988) CACI International, Inc., Class A ......... (35,800) (1,333,550) CDW Computer Centers, Inc. ................ (21,000) (901,320) ConSyGen, Inc. ............................ (200) 0 Echelon Corp. ............................. (74,200) (954,212) Extended Systems, Inc. .................... (35,900) (93,340) InFocus Corp. ............................. (70,800) (789,420) OPNET Technologies, Inc. .................. (38,200) (249,828) Pegasystems, Inc. ......................... (32,700) (291,030) Precise Software Solutions Ltd. ........... (48,200) (578,400) Wipro Ltd. - ADR .......................... (31,000) (809,100) Xybernaut Corp. ........................... (66,700) (26,013) ------------ (6,955,326) ------------ CONSTRUCTION & HOUSING--(0.8%) Lennar Corp. .............................. (17,600) (929,280) ------------ CONSUMER PRODUCTS & SERVICES--(2.6%) Callaway Golf Co. ......................... (28,600) (424,138) Coinstar, Inc. ............................ (31,300) (845,100) Ionics, Inc. .............................. (45,100) (998,965) MemberWorks, Inc. ......................... (42,300) (676,800) ------------ (2,945,003) ------------ The accompanying notes are an integral part of the financial statements. 33 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ ELECTRONIC COMPONENTS & INSTRUMENTS--(1.4%) L-3 Communications Holdings, Inc. .................................... (29,700) $ (1,511,433) Skyworks Solutions, Inc. .................. (27,700) (116,340) ------------ (1,627,773) ------------ ELECTRONICS--(1.6%) EDO Corp. ................................. (46,300) (1,104,255) Micron Technology, Inc. ................... (14,900) (257,025) Verisity Ltd .............................. (32,800) (434,600) ------------ (1,795,880) ------------ ENERGY - OTHER--(2.6%) Ballard Power Systems, Inc. ............... (16,100) (225,561) Dominion Resources, Inc. .................. (14,900) (934,379) Duke Energy Corp. ......................... (41,100) (1,102,713) Dynegy, Inc. .............................. (223,200) (464,256) FuelCell Energy, Inc. ..................... (31,000) (217,000) Plug Power, Inc. .......................... (17,000) (99,960) ------------ (3,043,869) ------------ FINANCIAL SERVICES--(7.2%) Allied Capital Corp. ...................... (48,000) (1,149,600) Clark/Bardes, Inc. ........................ (34,100) (579,700) Fremont General Corp. ..................... (336,500) (1,766,625) Greater Bay Bancorp ....................... (35,800) (902,160) Household International, Inc. ............. (13,800) (498,318) Kookmin Bank - ADR ........................ (20,200) (945,360) NextCard, Inc. ............................ (128,500) (2,184) Providian Financial Corp. ................. (152,900) (868,472) Sovereign Bancorp, Inc. ................... (38,600) (591,352) Trustmark Corp. ........................... (38,800) (963,404) ------------ (8,267,175) ------------ FOOD & BEVERAGE--(3.4%) American Italian Pasta Co., Class A ................................. (47,700) (1,768,716) Safeway, Inc. ............................. (17,200) (444,104) Sensient Technologies Corp. ............... (32,000) (715,840) United Natural Foods, Inc. ................ (46,800) (947,700) ------------ (3,876,360) ------------ NUMBER OF SHARES VALUE --------- ------------ INSURANCE--(3.6%) First American Corp. ...................... (24,000) $ (515,280) LandAmerica Financial Group, Inc. ......... (16,200) (586,440) Manulife Financial Corp. .................. (85,000) (1,964,350) St. Paul Cos., Inc., (The) ................ (12,600) (383,292) Trenwick Group Ltd. ....................... (155,035) (658,899) ------------ (4,108,261) ------------ INTERNET SOFTWARE & SERVICES--(3.0%) 1-800 CONTACTS, Inc. ...................... (7,000) (71,750) Akamai Technologies, Inc. ................. (84,900) (80,655) Answerthink, Inc. ......................... (30,100) (61,705) eBay, Inc. ................................ (17,200) (972,144) Exult, Inc. ............................... (97,100) (286,445) Interliant, Inc. .......................... (600) (17) Internet Security Systems, Inc. ........... (42,300) (642,114) Raindance Communications, Inc. ............ (88,100) (189,415) Secure Computing Corp. .................... (9,400) (41,548) WebEx Communications, Inc. ................ (72,400) (1,066,452) ------------ (3,412,245) ------------ LEISURE & ENTERTAINMENT--(2.0%) Escalade, Inc. ............................ (11,450) (234,496) Polaris Industries, Inc. ................ (16,400) (1,202,940) Royal Caribbean Cruises Ltd. ............ (49,300) (872,610) ------------ (2,310,046) ------------ MANUFACTURING--(0.5%) Singing Machine Co., Inc. (The) ........... (45,420) (433,761) Woodward Governor Co. ..................... (4,300) (206,400) ------------ (640,161) ------------ MEDIA--(0.6%) Univision Communications, Inc. ............ (28,300) (659,390) ------------ MEDICAL EQUIPMENT & SUPPLIES--(10.1%) Affymetrix, Inc. .......................... (56,100) (1,010,361) Aksys Ltd. ................................ (103,500) (644,805) AstraZeneca PLC - ADR ..................... (32,300) (941,545) Bausch & Lomb, Inc. ....................... (24,000) (755,760) Bio-Rad Laboratories, Inc. ................ (25,100) (1,052,945) Cerus Corp. ............................... (52,800) (916,080) DENTSPLY International, Inc. .............. (16,500) (654,555) The accompanying notes are an integral part of the financial statements. 34 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONTINUED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ MEDICAL EQUIPMENT & SUPPLIES--(CONTINUED) Haemonetics Corp. ......................... (38,700) $ (1,062,702) IMPATH, Inc. .............................. (65,900) (810,570) Intuitive Surgical, Inc. .................. (67,700) (499,626) Luminex Corp. ............................. (134,100) (1,072,800) Martek Biosciences Corp. .................. (58,600) (1,054,800) NexMed, Inc. .............................. (114,200) (216,980) United Surgical Partners International, Inc. ..................... (16,800) (485,016) Vasomedical, Inc. ......................... (267,700) (473,829) ------------ (11,652,374) ------------ MINING & METALS--(0.3%) Arch Coal, Inc. ........................... (22,100) (404,430) ------------ OIL & GAS EXPLORATION--(0.4%) Penn Virginia Corp. ....................... (14,900) (522,990) ------------ OIL SERVICES--(0.3%) Baker Hughes, Inc. ........................ (12,600) (346,500) ------------ PHARMACEUTICALS--(4.2%) Celgene Corp. ............................. (56,000) (973,280) Forest Laboratories, Inc. ................. (5,800) (423,400) Medicines Co. (The) ....................... (48,700) (477,260) NaPro BioTherapeutics, Inc. ............... (160,700) (305,330) Regeneron Pharmaceuticals, Inc. ........... (46,000) (710,700) Taro Pharmaceutical Industries Ltd. .................................... (30,300) (909,000) Trimeris, Inc. ............................ (23,300) (1,060,150) Tularik, Inc. ............................. (2,700) (18,900) ------------ (4,878,020) ------------ PRINTING SERVICES--(0.2%) Multi-Color Corp. ......................... (16,550) (236,665) ------------ PUBLISHING--(0.8%) Scholastic Corp. .......................... (21,700) (915,306) ------------ REAL ESTATE--(0.4%) Tejon Ranch Co. ........................... (19,600) (479,024) ------------ RECREATION--(0.3%) Bally Total Fitness Holding Corp. ......... (28,600) (335,478) ------------ NUMBER OF SHARES VALUE --------- ------------ RESTAURANTS--(2.4%) CEC Entertainment, Inc. ................... (10,300) $ (376,156) Cheesecake Factory, Inc. (The) ............ (22,500) (641,025) Chicago Pizza & Brewery, Inc. ............. (130,000) (943,800) Outback Steakhouse, Inc. .................. (13,800) (405,168) P.F. Chang's China Bistro, Inc. ........... (13,500) (427,140) ------------ (2,793,289) ------------ RETAIL--(7.9%) A.C. Moore Arts & Crafts, Inc. ............ (84,200) (1,793,460) AutoZone, Inc. ............................ (12,600) (911,610) Circuit City Stores, Inc. - CarMax Group ................................... (17,200) (277,780) Cost Plus, Inc. ........................... (40,400) (987,780) Dollar General Corp. ...................... (61,800) (925,764) Hot Topic, Inc. ........................... (33,100) (575,940) Michaels Stores, Inc. ..................... (26,100) (1,213,389) Pacific Sunwear of California, Inc. .................................... (27,200) (591,600) PriceSmart, Inc. .......................... (10,000) (258,000) Sharper Image Corp. ....................... (64,200) (1,156,884) Wild Oats Markets, Inc. ................... (32,100) (360,804) ------------ (9,053,011) ------------ SEMICONDUCTOR EQUIPMENT & PRODUCTS--(2.5%) AstroPower, Inc. .......................... (29,375) (207,975) Credence Systems Corp. .................... (79,000) (912,450) Cree, Inc. ................................ (46,400) (638,464) Integrated Circuit Systems, Inc. .......... (23,500) (419,005) Intersil Corp., Class A ................... (22,900) (387,468) KLA-Tencor Corp. .......................... (10,300) (338,561) ------------ (2,903,923) ------------ TELECOMMUNICATIONS & EQUIPMENT--(2.6%) Choice One Communications, Inc. .................................... (55,900) (27,950) CTC Communications Group, Inc. ............ (211,600) (33,856) Finisar Corp. ............................. (40,900) (56,401) Inter-Tel, Inc. Class A ................... (38,100) (906,018) Nextel Communications, Inc., Class A ................................. (90,600) (689,466) QUALCOMM, Inc. ............................ (24,500) (678,895) RCN Corp. ................................. (145,200) (120,516) The accompanying notes are an integral part of the financial statements. 35 BOSTON PARTNERS FAMILY OF FUNDS LONG/SHORT EQUITY FUND PORTFOLIO OF INVESTMENTS (CONCLUDED) AUGUST 31, 2002 NUMBER OF SHARES VALUE --------- ------------ TELECOMMUNICATIONS & EQUIPMENT--(CONTINUED) Shaw Communications, Inc., Class B ................................. (28,700) $ (287,000) US LEC Corp., Class A ..................... (66,900) (161,229) ------------ (2,961,331) ------------ TEXTILES & APPAREL--(0.8%) Cintas Corp. .............................. (20,600) (906,606) ------------ TRANSPORTATION--(2.5%) Hunt (J.B.) Transport Services, Inc. .................................... (16,200) (384,102) Kirby Corp. ............................... (17,200) (388,720) P.A.M. Transportation Services, Inc. .................................... (23,700) (504,573) United Parcel Service, Inc. ............... (10,700) (683,837) Werner Enterprises, Inc. .................. (50,800) (908,304) ------------ (2,869,536) ------------ TOTAL SECURITIES SOLD SHORT (Proceeds $109,542,873) ............... (94,556,764) ------------ NET INVESTMENTS IN SECURITIES--21.1% (Cost $30,465,499) ........................ 24,364,261 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--78.9% ........................ 90,871,045 ------------ NET ASSETS--100.0% ........................... $115,235,306 ============ ---------- * Non-income producing. + Security position is either entirely or partially held in a segregated account as collateral for securities sold short aggregating a total market value of $73,418,295. (1) This security is currently fair valued. ADR -- American Depository Receipt. The accompanying notes are an integral part of the financial statements. 36 [THIS PAGE INTENTIONALLY LEFT BLANK] BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF ASSETS AND LIABILITIES AUGUST 31, 2002
LARGE CAP MID CAP SMALL CAP ALL-CAP VALUE FUND VALUE FUND VALUE FUND II VALUE FUND ----------- ----------- ------------- ----------- ASSETS Investments, at value (cost-- $59,448,223, $60,559,987, $307,375,150, $1,958,131, and $140,008,372, respectively) ..................... $54,062,222 $56,655,717 $287,746,197 $ 1,872,814 Receivable from Investment Advisor .................... -- -- -- 11,900 Deposits with brokers for securities sold short ....... -- -- -- -- Receivable for investments sold ....................... 484,607 11,204 11,274,562 13,699 Receivable for fund shares sold ....................... 17,913 -- 44,523 -- Prepaid expenses ...................................... 7,438 11,285 21,746 24,535 Dividends and interest receivable ..................... 76,037 69,022 142,032 2,313 ----------- ----------- ------------ ----------- Total assets ........................................ 54,648,217 56,747,228 299,229,060 1,925,261 ----------- ----------- ------------ ----------- LIABILITIES Payable for investments purchased ..................... 1,493,129 360,301 4,040,667 18,123 Securities sold short (proceeds $109,542,873) ......... -- -- -- -- Payable for fund shares redeemed ...................... 137,394 2,537 364,551 -- Accrued expenses and other liabilities ................ 58,126 79,728 510,228 13,207 Payable for dividends on securities sold short ........ -- -- -- -- ----------- ----------- ------------ ----------- Total liabilities ................................... 1,688,649 442,566 4,915,446 31,330 ----------- ----------- ------------ ----------- NET ASSETS Capital stock, $0.001 par value ....................... 5,113 5,820 18,842 200 Additional Paid-in capital ............................ 60,099,593 61,505,284 320,241,113 1,987,955 Undistributed net investment income/(loss) ............ 289,531 1,851 -- 452 Accumulated net realized loss from investments and foreign currency translations, if any ........... (2,048,668) (1,304,023) (6,317,388) (9,359) Net unrealized depreciation on investments and foreign currency translations, if any ............... (5,386,001) (3,904,270) (19,628,953) (85,317) Net unrealized appreciation on investments sold short.. -- -- -- -- ----------- ----------- ------------ ----------- Net assets .......................................... $52,959,568 $56,304,662 $294,313,614 $ 1,893,931 =========== =========== ============ =========== INSTITUTIONAL CLASS Net assets ............................................ $45,066,949 $50,072,662 $ 40,475,341 $ 1,810,081 ----------- ----------- ------------ ----------- Shares outstanding .................................... 4,361,276 5,170,161 2,575,915 191,534 ----------- ----------- ------------ ----------- Net asset value, offering and redemption price per share ..................................... $10.33 $9.69 $15.71 $9.45 =========== =========== ============ =========== INVESTOR CLASS Net assets ............................................ $ 7,892,619 $ 6,232,000 $253,838,273 $ 83,850 ----------- ----------- ------------ ----------- Shares outstanding .................................... 751,711 650,250 16,266,320 8,881 ----------- ----------- ------------ ----------- Net asset value, offering and redemption price per share ..................................... $10.50 $9.58 $15.61 $9.44 =========== =========== ============ =========== LONG/SHORT EQUITY FUND ------------ ASSETS Investments, at value (cost-- $59,448,223, $60,559,987, $307,375,150, $1,958,131, and $140,008,372, respectively) ..................... $118,921,025 Receivable from Investment Advisor .................... -- Deposits with brokers for securities sold short ....... 95,857,198 Receivable for investments sold ....................... 6,937,400 Receivable for fund shares sold ....................... 16,095 Prepaid expenses ...................................... 9,951 Dividends and interest receivable ..................... 108,335 ------------ Total assets ........................................ 221,850,004 ------------ LIABILITIES Payable for investments purchased ..................... 11,638,293 Securities sold short (proceeds $109,542,873) ......... 94,556,764 Payable for fund shares redeemed ...................... 52,316 Accrued expenses and other liabilities ................ 281,070 Payable for dividends on securities sold short ........ 86,255 ------------ Total liabilities ................................... 106,614,698 ------------ NET ASSETS Capital stock, $0.001 par value ....................... 7,605 Additional Paid-in capital ............................ 118,123,929 Undistributed net investment income/(loss) ............ 238,226 Accumulated net realized loss from investments and foreign currency translations, if any ........... 2,966,784 Net unrealized depreciation on investments and foreign currency translations, if any ............... (21,087,347) Net unrealized appreciation on investments sold short.. 14,986,109 ------------ Net assets .......................................... $115,235,306 ============ INSTITUTIONAL CLASS Net assets ............................................ $ 65,951,385 ------------ Shares outstanding .................................... 4,347,650 ------------ Net asset value, offering and redemption price per share ..................................... $15.17 ============ INVESTOR CLASS Net assets ............................................ $ 49,283,921 ------------ Shares outstanding .................................... 3,257,281 ------------ Net asset value, offering and redemption price per share ..................................... $15.13 ============
The accompanying notes are an integral part of the financial statements. 38 BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2002
LARGE CAP MID CAP SMALL CAP ALL-CAP LONG/SHORT VALUE FUND VALUE FUND VALUE FUND II VALUE FUND* EQUITY FUND ----------- ----------- ------------- ----------- ----------- INVESTMENT INCOME Dividends(1) .............................. $ 789,513 $ 797,510 $ 2,958,757 $ 4,231 $ 2,083,614 Interest .................................. -- -- -- 10 787,546 ----------- ----------- ------------ -------- ----------- 789,513 797,510 2,958,757 4,241 2,871,160 ----------- ----------- ------------ -------- ----------- EXPENSES Advisory fees ............................. 365,361 630,413 4,664,156 3,012 1,886,161 Administration fees ....................... 75,000 99,100 466,416 12,298 112,924 Administrative Services fees .............. 71,162 117,482 445,382 452 120,309 Transfer Agent fees and expenses .......... 74,236 76,729 190,263 11,928 93,395 Custodian fees and expenses ............... 23,739 25,063 99,592 3,978 68,751 Printing .................................. 14,843 20,503 123,171 2,006 23,475 Federal and State Registration fees ....... 20,062 21,584 34,506 5,550 17,956 Audit and Legal fees ...................... 22,408 42,922 170,618 2,507 34,244 Distribution fees ......................... 13,773 7,789 826,252 24 86,659 Directors ................................. 5,041 6,556 37,047 836 8,204 Insurance ................................. 1,028 2,591 3,688 -- 287 Dividend expense .......................... -- -- -- -- 451,154 Other ..................................... 5,183 5,600 10,125 1,277 11,121 ----------- ----------- ------------ -------- ----------- Total expenses before waivers and reimbursements ........................ 691,836 1,056,332 7,071,216 43,868 2,914,640 Less: waivers and reimbursements ........ (191,350) (260,673) (484,672) (40,079) (282,150) ----------- ----------- ------------ -------- ----------- Net expenses after waivers and reimbursements ........................ 500,486 795,659 6,586,544 3,789 2,632,490 ----------- ----------- ------------ -------- ----------- Net investment income/(loss) .............. 289,027 1,851 (3,627,787) 452 238,670 ----------- ----------- ------------ -------- ----------- NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS Net realized gain/(loss) from: Investments ............................. (1,579,180) (452,083) (5,379,748) (9,359) (3,868,255) Investments sold short .................. -- -- -- -- 8,943,318 Net change in unrealized depreciation from: Investments ............................. (6,436,851) (4,831,959) (28,294,854) (85,317) (9,096,130) ----------- ----------- ------------ -------- ----------- Net realized and unrealized loss from investments ............................. (8,016,031) (5,284,042) (33,674,602) (94,676) (4,021,067) ----------- ----------- ------------ -------- ----------- NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ........................... $(7,727,004) $(5,282,191) $(37,302,389) $(94,224) $(3,782,397) =========== =========== ============ ======== =========== ----------- * For the period July 1, 2002 (commencement of operations) to August 31, 2002. (1) Net of foreign taxes of $6,765, $8,843, $731, and $8,366 for the Large Cap Value Fund, Mid Cap Value Fund, Small Cap Value Fund, and Long/Short Equity Fund, respectively.
The accompanying notes are an integral part of the financial statements. 39
BOSTON PARTNERS FAMILY OF FUNDS STATEMENTS OF CHANGES IN NET ASSETS LARGE CAP VALUE FUND MID CAP VALUE FUND -------------------------------- -------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 AUGUST 31, 2001 --------------- --------------- --------------- --------------- INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............................. $ 289,027 $ 397,894 $ 1,851 $ 415,078 Net realized gain/(loss) from: Investments ............................................ (1,579,180) 5,828,189 (452,083) 16,599,655 Net change in unrealized appreciation/(depreciation) from: Investments ............................................ (6,436,851) (2,098,522) (4,831,959) (6,124,017) ----------- ----------- ------------ ------------ Net increase/(decrease) in net assets resulting from operations ............................................. (7,727,004) 4,127,561 (5,282,191) 10,890,716 ----------- ----------- ------------ ------------ LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ............... (361,284) (409,805) (411,500) (799,688) Net investment income Investor shares .................... (36,647) (20,229) (3,588) (5,908) Net realized capital gains Institutional shares .......... (4,895,102) (1,216,633) (12,409,583) -- Net realized capital gains Investor shares ............... (568,772) (68,541) (233,825) -- ----------- ----------- ------------ ------------ Total dividends and distributions to shareholders ........ (5,861,805) (1,715,208) (13,058,496) (805,596) ----------- ----------- ------------ ------------ INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ...................... 22,434,063 390,822 (43,746,861) (46,318,592) ----------- ----------- ------------ ------------ Total increase/(decrease) in net assets .................. 8,845,254 2,803,175 (62,087,548) (36,233,472) ----------- ----------- ------------ ------------ NET ASSETS Beginning of period ...................................... 44,114,314 41,311,139 118,392,210 154,625,682 ----------- ----------- ------------ ------------ End of period ............................................ $52,959,568 $44,114,314 $ 56,304,662 $118,392,210 =========== =========== ============ ============ SMALL CAP VALUE FUND II ALL-CAP VALUE FUND ---------------------------------- --------------------- FOR THE FOR THE FOR THE PERIOD YEAR ENDED YEAR ENDED JULY 1, 2002* THROUGH AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 --------------- --------------- --------------------- INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............................. $ (3,627,787) $ (253,124) $ 452 Net realized gain/(loss) from: Investments ............................................ (5,379,748) 4,612,635 (9,359) Net change in unrealized appreciation/(depreciation) from: Investments ............................................ (28,294,854) 8,397,602 (85,317) ------------ ------------ ---------- Net increase/(decrease) in net assets resulting from operations ............................................. (37,302,389) 12,757,113 (94,224) ------------ ------------ ---------- LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ............... -- -- -- Net investment income Investor shares .................... -- -- -- Net realized capital gains Institutional shares .......... (445,911) (99,306) -- Net realized capital gains Investor shares ............... (3,891,940) (15,590) -- ------------ ------------ ---------- Total dividends and distributions to shareholders ........ (4,337,851) (114,896) -- ------------ ------------ ---------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ...................... 83,900,063 237,063,903 1,988,155 ------------ ------------ ---------- Total increase/(decrease) in net assets .................. 42,259,823 249,706,120 1,893,931 ------------ ------------ ---------- NET ASSETS Beginning of period ...................................... 252,053,791 2,347,671 -- ------------ ------------ ---------- End of period ............................................ $294,313,614 $252,053,791 $1,893,931 ============ ============ ========== LONG/SHORT EQUITY FUND ---------------------------------- FOR THE FOR THE YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 --------------- --------------- INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income/(loss) ............................. $ 238,670 $ 58,432 Net realized gain/(loss) from: Investments ............................................ 5,075,063 (692,704) Net change in unrealized appreciation/(depreciation) from: Investments ............................................ (9,096,130) 2,812,708 ------------ ----------- Net increase/(decrease) in net assets resulting from operations ............................................. (3,782,397) 2,178,436 ------------ ----------- LESS DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income Institutional shares ............... (42,723) (13,874) Net investment income Investor shares .................... (6,861) (3,422) Net realized capital gains Institutional shares .......... (980,277) -- Net realized capital gains Investor shares ............... (346,641) -- ------------ ----------- Total dividends and distributions to shareholders ........ (1,376,502) (17,296) ------------ ----------- INCREASE/(DECREASE) IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS (NOTE 4) ...................... 83,293,127 33,549,837 ------------ ----------- Total increase/(decrease) in net assets .................. 78,134,228 35,710,977 ------------ ----------- NET ASSETS Beginning of period ...................................... 37,101,078 1,390,101 ------------ ----------- End of period ............................................ $115,235,306 $37,101,078 ============ =========== ---------------------------- *Commencement of operations.
The accompanying notes are an integral part of the financial statements. 40 & 41 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
LARGE CAP VALUE FUND ------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2002 2001 2000 1999 1998 ------------- ------------- ------------- ------------- ------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS ------------- ------------- ------------- ------------- ------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $ 13.52 $ 12.82 $ 12.24 $ 10.58 $ 12.46 ------- ------- ------- ------- ------- Net investment income(1) .................... 0.08** 0.12** 0.14 0.05 0.12 Net realized and unrealized gain/(loss) on investments(2) ............ (1.54)** 1.10** 1.25 1.76 (1.31) ------- ------- ------- ------- ------- Net increase/(decrease) in net assets resulting from operations ......... (1.46) 1.22 1.39 1.81 (1.19) ------- ------- ------- ------- ------- Dividends to shareholders from Net investment income ....................... (0.12) (0.13) (0.11) (0.04) (0.08) Net realized capital gains .................. (1.61) (0.39) (0.70) (0.11) (0.61) ------- ------- ------- ------- ------- Total dividends and distributions to shareholders ............................. (1.73) (0.52) (0.81) (0.15) (0.69) ------- ------- ------- ------- ------- Net asset value, end of period .............. $ 10.33 $ 13.52 $ 12.82 $ 12.24 $ 10.58 ======= ======= ======= ======= ======= Total investment return(3) .................. (12.67%) 9.65% 11.99% 17.12% (10.23%) ======= ======= ======= ======= ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......................... $45,067 $40,368 $39,897 $53,112 $50,724 Ratio of expenses to average net assets(1) ............................ 1.00% 1.00% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.40% 1.43% 1.43% 1.30% 1.49% Ratio of net investment income to average net assets(1) .................... 0.62% 0.89% 0.92% 0.61% 0.87% Portfolio turnover rate ..................... 88.65% 105.71% 120.99% 156.16% 111.68% LARGE CAP VALUE FUND ----------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2002 2001 2000 1999 1998 ---------- ---------- ---------- ---------- ---------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $13.73 $13.02 $12.36 $10.70 $12.45 ------ ------ ------ ------ ------ Net investment income(1) .................... 0.04** 0.09** 0.10 0.15 0.06 Net realized and unrealized gain/(loss) on investments(2) ............ (1.56)** 1.13** 1.27 1.65 (1.27) ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ......... (1.52) 1.22 1.37 1.80 (1.21) ------ ------ ------ ------ ------ Dividends to shareholders from Net investment income ....................... (0.10) (0.12) (0.01) (0.03) (0.06) Net realized capital gains .................. (1.61) (0.39) (0.70) (0.11) (0.48) ------ ------ ------ ------ ------ Total dividends and distributions to shareholders ............................. (1.71) (0.51) (0.71) (0.14) (0.54) ------ ------ ------ ------ ------ Net asset value, end of period .............. $10.50 $13.73 $13.02 $12.36 $10.70 ====== ====== ====== ====== ====== Total investment return(3) .................. (12.87%) 9.45% 11.67% 16.86% (10.28%) ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......................... $7,893 $3,746 $1,414 $1,637 $6,150 Ratio of expenses to average net assets(1) ............................ 1.25% 1.22% 1.22% 1.25% 1.19% Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.61% 1.53% 1.53% 1.55% 1.74% Ratio of net investment income to average net assets(1) .................... 0.37% 0.67% 0.70% 0.36% 0.68% Portfolio turnover rate ..................... 88.65% 105.71% 120.99% 156.16% 111.68% ----------------- ** Calculated based on average shares outstanding for the period. (1) Reflects waivers and reimbursements. (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and will include reinvestments of dividends and distributions, if any. Total return is not annualized.
The accompanying notes are an integral part of the financial statements. 42 & 43 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
MID CAP VALUE FUND ------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2002 2001 2000 1999 1998 ------------- ------------- ------------- ------------- ------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS ------------- ------------- ------------- ------------- ------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $ 12.55 $ 11.66 $ 11.47 $ 9.48 $ 11.01 ------- -------- -------- -------- ------- Net investment income/(loss)(1) ............. 0.00** 0.04** 0.06 0.02 0.01 Net realized and unrealized gain/(loss) on investments(2) ............ (0.94)** 0.91** 0.29 1.98 (1.39) ------- -------- -------- -------- ------- Net increase/(decrease) in net assets resulting from operations ......... (0.94) 0.95 0.35 2.00 (1.38) ------- -------- -------- -------- ------- Dividends to shareholders from: Net investment income ....................... (0.06) (0.06) (0.02) (0.01) (0.01) Net realized capital gains .................. (1.86) -- (0.14) -- (0.14) ------- -------- -------- -------- ------- Total dividends and distributions to shareholders ............................. (1.92) (0.06) (0.16) (0.01) (0.15) ------- -------- -------- -------- ------- Net asset value, end of period .............. $ 9.69 $ 12.55 $ 11.66 $ 11.47 $ 9.48 ======= ======== ======== ======== ======= Total investment return(3) .................. (8.97%) 8.23% 3.21% 21.08% (12.73%) ======= ======== ======== ======== ======= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......................... $50,073 $116,605 $152,696 $173,224 $67,568 Ratio of expenses to average net assets(1) ............................ 1.00% 1.00% 1.00% 1.00% 1.00% Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.33% 1.30% 1.24% 1.25% 1.57% Ratio of net investment income to average net assets(1) .................... 0.01% 0.29% 0.53% 0.17% 0.13% Portfolio turnover rate ..................... 99.23% 234.52% 206.65% 200.09% 167.86% MID CAP VALUE FUND ----------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2002 2001 2000 1999 1998 ---------- ---------- ---------- ---------- ---------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS ---------- ---------- ---------- ---------- ---------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $12.43 $11.55 $11.38 $ 9.42 $11.01 ------ ------ ------ ------ ------ Net investment income/(loss)(1) ............. (0.02)** 0.01** 0.03 (0.01) 0.01 Net realized and unrealized gain/(loss) on investments(2) ............ (0.94)** 0.91** 0.28 1.97 (1.38) ------ ------ ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ......... (0.96) 0.92 0.31 1.96 (1.37) ------ ------ ------ ------ ------ Dividends to shareholders from: Net investment income ....................... (0.03) (0.04) -- -- (0.01) Net realized capital gains .................. (1.86) -- (0.14) -- (0.21) ------ ------ ------ ------ ------ Total dividends and distributions to shareholders ............................. (1.89) (0.04) (0.14) -- (0.22) ------ ------ ------ ------ ------ Net asset value, end of period .............. $ 9.58 $12.43 $11.55 $11.38 $ 9.42 ====== ====== ====== ====== ====== Total investment return(3) .................. (9.26%) 7.96% 2.90% 20.81% (12.77%) ====== ====== ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) .......................... $6,232 $1,787 $1,929 $2,762 $1,828 Ratio of expenses to average net assets(1) ............................ 1.25% 1.22% 1.22% 1.25% 1.15% Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.57% 1.40% 1.34% 1.50% 1.82% Ratio of net investment income to average net assets(1) .................... (0.18%) 0.07% 0.31% 0.01% (0.02%) Portfolio turnover rate ..................... 99.23% 234.52% 206.65% 200.09% 167.86% ----------------- ** Calculated based on average shares outstanding for the period. (1) Reflects waivers and reimbursements. (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestments of dividends and distributions, if any. Total return is not annualized.
The accompanying notes are an integral part of the financial statements. 44 & 45 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
SMALL CAP VALUE FUND II --------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD YEAR YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED THROUGH AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 --------------- --------------- --------------- --------------- --------------- INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS CLASS --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $ 17.17 $ 11.39 $ 8.67 $ 7.62 $10.00 ------- ------- ------ ------ ------ Net investment income/(loss)(1) ............. (0.13)** (0.05)** (0.01) (0.01) (0.01) Net realized and unrealized gain/(loss) on investments(2) ........................ (1.23)** 6.05** 2.73 1.06 (2.37) ------- ------- ------ ------ ------ Net increase/(decrease) in net assets resulting from operations ......... (1.36) 6.00 2.72 1.05 (2.38) ------- ------- ------ ------ ------ Dividends to shareholders from: Net investment income ....................... -- -- -- -- -- Net realized capital gains .................. (0.21) (0.29) -- -- -- ------- ------- ------ ------ ------ Total dividends and distributions to shareholders .......................... (0.21) (0.29) -- -- -- ------- ------- ------ ------ ------ Redemption fees ............................. 0.11** 0.07** -- -- -- ------- ------- ------ ------ ------ Net asset value, end of period .............. $ 15.71 $ 17.17 $11.39 $ 8.67 $ 7.62 ======= ======= ====== ====== ====== Total investment return(3)(5) ............... (7.39%) 54.57% 31.43% 13.78% (23.80%) ======= ======= ====== ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ... $40,475 $21,547 $1,965 $1,309 $1,120 Ratio of expenses to average net assets(1) .. 1.55% 1.55% 1.55% 1.55% 1.55%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.71% 2.03% 14.23% 17.84% 17.63%(4) Ratio of net investment income to average net assets(1) ................. (0.76%) (0.32%) (0.18%) (0.17%) (0.34%)(4) Portfolio turnover rate ..................... 119.30% 35.50% 161.75% 87.48% 11.97% SMALL CAP VALUE FUND II --------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD YEAR YEAR YEAR YEAR JULY 1, 1998* ENDED ENDED ENDED ENDED THROUGH AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998 --------------- --------------- --------------- --------------- --------------- INVESTOR INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS CLASS --------------- --------------- --------------- --------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $ 17.09 $ 11.36 $ 8.65 $ 7.63 $10.00 -------- -------- ------ ------- ------ Net investment income/(loss)(1) ............. (0.17)** (0.09)** (0.03) (0.02) (0.01) Net realized and unrealized gain/(loss) on investments(2) ........................ (1.21)** 6.04** 2.74 1.04 (2.36) -------- -------- ------ ------- ------ Net increase/(decrease) in net assets resulting from operations ......... (1.38) 5.95 2.71 1.02 (2.37) -------- -------- ------ ------- ------ Dividends to shareholders from: Net investment income ....................... -- -- -- -- -- Net realized capital gains .................. (0.21) (0.29) -- -- -- -------- -------- ------ ------- ------ Total dividends and distributions to shareholders .......................... (0.21) (0.29) -- -- -- -------- -------- ------ ------- ------ Redemption fees ............................. 0.11** 0.07** -- -- -- -------- -------- ------ ------- ------ Net asset value, end of period .............. $ 15.61 $ 17.09 $11.36 $ 8.65 $ 7.63 ======== ======== ====== ======= ====== Total investment return(3)(5) ............... (7.54%) 54.27% 31.33% 13.37% (23.70%) ======== ======== ====== ======= ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ... $253,838 $230,507 $ 382 $ 293 $ 129 Ratio of expenses to average net assets(1) .. 1.79% 1.77% 1.77% 1.80% 1.80%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................... 1.92% 2.13% 14.33% 18.09% 18.61%(4) Ratio of net investment income to average net assets(1) ................. (1.00%) (0.54%) (0.40%) (0.42%) (0.66%)(4) Portfolio turnover rate ..................... 119.30% 35.50% 161.75% 87.48% 11.97% ALL-CAP VALUE FUND ---------------------------------- FOR THE PERIOD FOR THE PERIOD JULY 1, 2002* JULY 1, 2002* THROUGH THROUGH AUGUST 31, 2002 AUGUST 31, 2002 ---------------- --------------- INSTITUTIONAL INVESTOR CLASS CLASS ---------------- --------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ........ $10.00 $10.00 ------ ------ Net investment income/(loss)(1) ............. -- -- Net realized and unrealized gain/(loss) on investments(2) ........................ (0.55) (0.56) ------ ------ Net increase/(decrease) in net assets resulting from operations ......... (0.55) (0.56) ------ ------ Dividends to shareholders from: Net investment income ....................... -- -- Net realized capital gains .................. -- -- ------ ------ Total dividends and distributions to shareholders .......................... -- -- ------ ------ Redemption fees ............................. -- -- ------ ------ Net asset value, end of period .............. $ 9.45 $ 9.44 ====== ====== Total investment return(3)(5) ............... (5.50%) (5.60%) ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ... $1,810 $ 84 Ratio of expenses to average net assets(1) .. 1.25%(4) 1.50%(4) Ratio of expenses to average net assets without waivers and expense reimbursements ................... 14.54%(4) 15.34%(4) Ratio of net investment income to average net assets(1) ................. 0.16%(4) (0.01%)(4) Portfolio turnover rate ..................... 6.61%(4) 6.61%(4) ---------------- * Commencement of operations. ** Calculated based on average shares outstanding for the period. (1) Reflects waivers and reimbursements. (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestments of dividends and distributions, if any. Total return is not annualized. (4) Annualized. (5) Redemption fees are reflected in total return calculations.
The accompanying notes are an integral part of the financial statements. 46 & 47 BOSTON PARTNERS FAMILY OF FUNDS FINANCIAL HIGHLIGHTS (CONTINUED) -------------------------------------------------------------------------------- Contained below is per share operating performance data for each class of shares outstanding, total investment return, ratios to average net assets and other supplemental data for the respective periods. This information has been derived from information provided in the financial statements. --------------------------------------------------------------------------------
LONG/SHORT EQUITY FUND ------------------------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE PERIOD YEAR YEAR YEAR NOVEMBER 17, 1998* ENDED ENDED ENDED THROUGH AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 --------------- --------------- --------------- ------------------ INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CLASS CLASS CLASS CLASS --------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ................ $ 15.88 $ 10.57 $ 9.46 $10.00 ------- ------- ------ ------ Net investment income/(loss)(1) ..................... 0.05** 0.07** 0.13 0.12 Net realized and unrealized gain/(loss) on investments(2) ................................... (0.31)** 5.14** 1.12 (0.66) ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations .................................. (0.26) 5.21 1.25 (0.54) ------- ------- ------ ------ Dividends to shareholders from: Net investment income ............................... (0.02) (0.13) (0.14) -- Net realized capital gains .......................... (0.50) -- -- -- ------- ------- ------ ------ Total dividends and distributions to shareholders ... (0.52) (0.13) (0.14) -- ------- ------- ------ ------ Redemption fee ...................................... 0.07** 0.23** -- -- ------- ------- ------ ------ Net asset value, end of period ...................... $ 15.17 $ 15.88 $10.57 $ 9.46 ======= ======= ====== ====== Total investment return(3)(5) ....................... (1.17%) 51.85% 13.74% (5.40%) ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ........... $65,951 $25,857 $1,080 $ 941 Ratio of expenses to average net assets (including dividend expense)(1) .................. 3.04% 3.22% 3.22% 2.91%(4) Ratio of expenses to average net assets (excluding dividend expense)(1) .................. 2.50% 2.50% 2.86% 2.50%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (excluding dividend expense) ..................... 2.85% 4.25% 21.86% 26.36%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) ..................... 3.39% 4.97% 22.22% 26.77% Ratio of net investment income to average net assets(1) .................................... 0.30% 0.46% 1.12% 1.57%(4) Portfolio turnover rate ............................. 219.52% 332.25% 363.34% 218.41% LONG/SHORT EQUITY FUND --------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE PERIOD YEAR YEAR YEAR NOVEMBER 17, 1998* ENDED ENDED ENDED THROUGH AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 --------------- --------------- --------------- ------------------ INVESTOR INVESTOR INVESTOR INVESTOR CLASS CLASS CLASS CLASS --------------- --------------- --------------- ------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ................ $ 15.87 $ 10.57 $ 9.43 $10.00 ------- ------- ------ ------ Net investment income/(loss)(1) ..................... 0.04** 0.03** 0.11 0.06 Net realized and unrealized gain/(loss) on investments(2) ................................... (0.33)** 5.18** 1.16 (0.63) ------- ------- ------ ------ Net increase/(decrease) in net assets resulting from operations .................................. (0.29) 5.21 1.28 (0.57) ------- ------- ------ ------ Dividends to shareholders from: Net investment income ............................... (0.01) (0.11) (0.13) -- Net realized capital gains .......................... (0.50) -- -- -- ------- ------- ------ ------ Total dividends and distributions to shareholders ... (0.51) (0.11) (0.13) -- ------- ------- ------ ------ Redemption fee ...................................... 0.06** 0.20** -- -- ------- ------- ------ ------ Net asset value, end of period ...................... $ 15.13 $ 15.87 $10.57 $ 9.43 ======= ======= ====== ====== Total investment return(3)(5) ....................... (1.44%) 51.51% 13.87% (5.70%) ======= ======= ====== ====== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's omitted) ........... $49,284 $11,244 $ 310 $ 231 Ratio of expenses to average net assets (including dividend expense)(1) ................. 3.29% 3.44% 3.44% 3.16%(4) Ratio of expenses to average net assets (excluding dividend expense)(1) .................. 2.75% 2.72% 3.08% 2.75%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (excluding dividend expense) ..................... 3.06% 4.35% 21.96% 26.61%(4) Ratio of expenses to average net assets without waivers and expense reimbursements (including dividend expense) ..................... 3.60% 5.07% 22.32% 27.02% Ratio of net investment income to average net assets(1) .................................... 0.27% 0.24% 0.90% 1.32%(4) Portfolio turnover rate ............................. 219.52% 332.25% 363.34% 218.41% -------------- * Commencement of operations. ** Calculated based on average shares outstanding for the period. (1) Reflects waivers and reimbursements. (2) The amount shown for a share outstanding throughout the period is not in accord with the change in the aggregate gains and losses in investments during the period because of the timing of sales and repurchases of Fund shares in relation to fluctuating net asset value during the period. (3) Total return is calculated assuming a purchase of shares on the first day and a sale of shares on the last day of each period reported and includes reinvestments of dividends and distributions, if any. Total return is not annualized. (4) Annualized. (5) Redemption fees are reflected in total return calculations.
The accompanying notes are an integral part of the financial statements. 48 & 49 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of Maryland on February 29, 1988 and is registered under the Investment Company Act of 1940, as amended, (the "Investment Company Act") as an open-end management investment company. RBB is a "series fund", which is a mutual fund divided into separate portfolios. Each portfolio is treated as a separate entity for certain matters under the Investment Company Act, and for other purposes, and a shareholder of one portfolio is not deemed to be a shareholder of any other portfolio. Currently RBB has thirteen investment portfolios, including Boston Partners Large Cap Value Fund ("Large Cap Value Fund"), Boston Partners Mid Cap Value Fund ("Mid Cap Value Fund"), Boston Partners Small Cap Value Fund II ("Small Cap Value Fund II"), Boston Partners All-Cap Value Fund ("All-Cap Value Fund") and Boston Partners Long/Short Equity Fund ("Long/Short Equity Fund") (each a "Fund", collectively the "Funds"). The Funds each offer two classes of shares, Institutional Class and Investor Class. RBB has authorized capital of thirty billion shares of common stock of which 21.073 billion are currently classified into ninety-five classes of common stock. Each class represents an interest in an active or inactive RBB investment portfolio. The classes have been grouped into six separate "families," all of which have begun investment operations. PORTFOLIO VALUATION -- The net asset value of the Fund is determined as of 4:00 p.m. eastern time on each business day. Each Fund's securities are valued at the last reported sales price on the national securities exchange or national securities market on which such shares are primarily traded. If no sales are reported, and in the case of some securities traded over-the-counter, portfolio securities are valued at the mean between the last reported bid and asked prices. In determining the approximate market value of portfolio investments, the Funds may employ outside organizations, which may use a matrix or formula method that takes into consideration market indices, matrices, yield curves and other specific adjustments. Securities for which market quotations are not readily available are valued at fair market value as determined in good faith by or under the direction of RBB's Board of Directors. With the approval of RBB's Board of Directors, each Fund may use a pricing service, bank or broker-dealer experienced in such matters to value its securities. Short-term obligations with maturities of 60 days or less are valued at amortized cost which approximates market value. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. REPURCHASE AGREEMENTS -- The Funds may agree to purchase securities from financial institutions subject to the seller's agreement to repurchase them at an agreed-upon time and price ("repurchase agreements"). The financial institutions with whom the Funds enter into repurchase agreements are banks and broker/dealers that Boston Partners Asset Management, L.P. (the Funds' investment adviser or "Boston Partners") considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral, subject to the agreement, at not less than the repurchase price plus accrued interest. Boston Partners marks to market daily the value of the collateral, and, if necessary, requires the seller to deposit additional collateral by the next day of business, to ensure that the value is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose the Funds to possible loss because of adverse market action or delays in connection with the disposition of the underlying securities. 50 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- The Fund records security transactions based on trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes in determining realized gains and losses on investments. Interest income is accrued when earned. Dividend income is recorded on the ex-dividend date. The Funds' investment income, expenses (other than class specific distribution fees) and unrealized and realized gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day. Expenses incurred on behalf of a specific class, fund or fund family are charged directly to the class, fund or fund family (in proportion to net assets). Expenses incurred for all of the RBB families (such as director or professional fees) are charged to all funds in proportion to their net assets of the RBB Funds. Expenses and fees, including investment advisory and administration fees are accrued daily and taken into account for the purpose of determining the net asset value of the Funds. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income and net realized capital gains, if any, are declared and paid at least annually to shareholders and recorded on ex-date. Income and capital gain distributions are determined in accordance with U.S. federal income tax regulations which may differ from generally accepted accounting principles. These differences include the treatment of non-taxable dividends, expiring capital loss carryforwards, foreign currency gain/loss, and losses deferred due to wash sales and excise tax regulations. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. As of August 31, 2002, the Fund recorded the following reclassifications to increase (decrease) the accounts listed below: ACCUMULATED UNDISTRIBUTED NET REALIZED ADDITIONAL NET INVESTMENT GAIN/(LOSS) PAID-IN INCOME (LOSS) ON INVESTMENTS CAPITAL -------------- -------------- ----------- Small Cap Value Fund II ... $3,627,787 $(882,553) $(2,745,234) Long/Short Equity Fund .... (451) 451 -- Mid Cap Value Fund ........ 43,670 (43,670) -- U.S. TAX STATUS -- No provision is made for U.S. income taxes as it is the Funds' intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under Subchapter M of the Internal Revenue Code of 1986, as amended, and make the requisite distributions to its shareholders which will be sufficient to relieve it from U.S. income and excise taxes. SHORT SALES -- When the Adviser anticipates that a security is overvalued, it may sell the security short by borrowing the same security from a broker or other institution and selling the security. A Fund will incur a loss as a result of a short sale if the price of the borrowed security increases between the date of the short sale and the date on which the Fund buys and replaces such borrowed security. A Fund will realize a gain if there is a decline in price of the security between those dates where decline exceeds costs of the borrowing the security and other transaction costs. There can be no assurance that a Fund will be able to close out a short position at any particular time or at an acceptable price. Although a Fund's gain is limited to the amount at which it sold a security short, its potential loss is unlimited in size. Until a Fund replaces a borrowed security, it will maintain at all times cash, U.S. Government securities, or other liquid securities in an amount which, when added to any amount deposited with a broker as collateral will at least equal the current market value of the security sold short. Depending on arrangements made with brokers, a Fund may not receive any payments (including interest) on collateral deposited with them. 51 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOREIGN CURRENCY TRANSLATION -- The books and records of the Portfolios are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities and other assets and liabilities stated in foreign currencies are translated at the exchange rate prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions. The resulting exchange gains and losses are included in the Statement of Operations. LINE OF CREDIT -- Each Portfolio may borrow an amount up to its prospectus-defined limitations, from a committed line of credit available to the Funds in the Boston Partners Fund Family. Borrowings from the line of credit will bear interest at the Federal Funds Rate. The Boston Partners Fund Family paid an annual initiation fee of $5,000. Each Fund is allocated a portion of this fee based on its net assets relative to the net assets of the Boston Partners Fund Family. The Funds had no outstanding borrowings at August 31, 2002 or at any time during the year or period ended August 31, 2002. 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Boston Partners Asset Management, L.P. serves as the Funds' investment adviser. For its advisory services, Boston Partners is entitled to receive 0.75% of the Large Cap Value Fund's average daily net assets, 0.80% of the Mid Cap Value Fund's average daily net assets, 1.25% of the Small Cap Value Fund II's average daily net assets, 1.00% of the All-Cap Value Fund's average daily net assets and 2.25% of the Long/Short Equity Fund's average daily net assets, each accrued daily and payable monthly. The adviser has agreed to limit the Large Cap Value Fund and the Mid Cap Value Fund's total operating expenses to the extent that such expenses exceeded 1.00% and 1.25% of the Large Cap Value Fund and the Mid Cap Value Funds' average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 1.22%. The adviser has agreed to limit the Small Cap Value Fund II's total operating expenses to the extent that such expenses exceed 1.55% and 1.80% of the Small Cap Value Fund II's average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 1.77%. The adviser has agreed to limit the All-Cap Value Fund's total operating expenses to the extent that such expenses exceeded 1.25% and 1.50% of the All-Cap Value Fund's average daily net assets for the Institutional and Investor Classes, respectively. The adviser has agreed to limit the Long/Short Equity Fund's total operating expenses to the extent that such expenses exceed 2.50% and 2.75%, excluding short sale dividend expense of the Long/Short Equity Fund's average daily net assets for the Institutional and Investor Classes, respectively. Prior to January 1, 2002, the adviser agreed to waive advisory fees and reimburse expenses to the Investor Class to the extent that total annual Fund operating expenses exceeded 2.72%. This limitation is effected in waivers of advisory fees and reimbursements of expenses exceeding the advisory fee as necessary. For the year ended August 31, 2002, investment advisory fees, waivers and reimbursements of expenses were as follows:
GROSS NET EXPENSE FUND ADVISORY FEES WAIVERS ADVISORY FEES REIMBURSEMENT ---- ------------- --------- ------------- ------------- Large Cap Value Fund $ 365,361 $(130,116) $ 235,245 $ -- Mid Cap Value Fund 630,413 (161,133) 469,280 -- Small Cap Value Fund II 4,664,156 (88,156) 4,576,000 -- All-Cap Value Fund 3,012 (3,012) -- 23,670 Long/Short Equity Fund 1,886,161 (174,900) 1,711,261 --
52 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) The Funds will not pay Boston Partners at a later time for any amounts they may waive or any amounts which Boston Partners has assumed. PFPC Inc. ("PFPC"), a wholly-owned subsidiary of PFPC Worldwide Inc., an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc., serves as administrator for the Funds. For providing accounting and administrative services, PFPC is entitled to receive a monthly fee equal to an annual rate of 0.125% of the Funds' average daily net assets with a minimum of $75,000 annually. PFPC, at its discretion, voluntarily agreed to waive a portion of its accounting and administrative services fees for the Funds. For the year ended August 31, 2002, fees and waivers were as follows: GROSS ACCOUNTING NET ACCOUNTING AND ADMINISTRATIVE AND ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES ---- ------------------ -------- ------------------ Large Cap Value Fund $ 75,000 $ (2,083) $ 72,917 Mid Cap Value Fund 99,100 (2,927) 96,173 Small Cap Value Fund II 466,416 (22,339) 444,077 All-Cap Value Fund 12,298 (6,149) 6,149 Long/Short Equity Fund 112,924 (6,113) 106,811 In addition, PFPC serves as the Funds' transfer and disbursing agent. PFPC, at their discretion, voluntarily agreed to waive a portion of their transfer agency fees for the All-Cap Value Fund. For the period July 1, 2002 (inception) through August 31, 2002, PFPC's transfer agency fees and waivers were as follows: GROSS TRANSFER NET TRANSFER FUND AGENCY FEES WAIVERS AGENCY FEES ---- -------------- ------- ------------ All-Cap Value Fund $11,928 $(5,903) $6,025 PFPC Distributors, Inc., provides certain administrative services to the Institutional Class of the Funds. As compensation for such administrative services, PFPC Distributors, Inc. is entitled to receive a monthly fee calculated at the annual rate of 0.15% of the average daily net assets of each Fund's Institutional Class Shares. Since January 1, 2002, PFPC Distributors, Inc. provides certain administrative services to the Investor Class of the Funds. PFPC Distributors, Inc., at its discretion, voluntarily agreed to waive a portion of its administrative services fees for the Funds. For the year ended August 31, 2002, administrative services fees and waivers were as follows: GROSS ADMINISTRATIVE NET ADMINISTRATIVE FUND SERVICES FEES WAIVERS SERVICES FEES ---- -------------------- --------- ------------------ Large Cap Value Fund $ 71,162 $ (59,151) $12,011 Mid Cap Value Fund 117,482 (96,613) 20,869 Small Cap Value Fund II 445,382 (374,177) 71,205 All-Cap Value Fund 452 (361) 91 Long/Short Equity Fund 120,309 (101,137) 19,172 53 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED) PFPC Trust Co., a wholly owned subsidiary of PFPC Worldwide Inc., an indirect majority owned subsidiary of The PNC Financial Services Group, Inc., provides certain custodial services to the Funds. As compensation for such custodial services, PFPC Trust Co. is entitled to receive a monthly fee equal to an annual rate of 0.015% of the Funds' average daily gross assets. PFPC Trust Co. has, at its discretion, voluntarily agreed to waive a portion of its custodial fees for the All-Cap Value Fund. For the period July 1, 2002 (inception) through August 31, 2002, custodial fees and waivers were as follows: GROSS CUSTODIAL NET CUSTODIAL FUND FEES WAIVERS FEES ---- --------------- ------- ------------- All-Cap Value Fund $3,978 $(984) $2,994 3. INVESTMENT IN SECURITIES For the year ended August 31, 2002, aggregate purchases and sales of investment securities (excluding short-term investments) were as follows: INVESTMENT SECURITIES ------------------------------- FUND PURCHASES SALES ---- ------------ ------------ Large Cap Value Fund $ 58,917,138 $ 42,024,617 Mid Cap Value Fund 76,542,770 133,958,157 Small Cap Value Fund II 487,583,175 412,806,186 All-Cap Value Fund 1,958,342 113,463 Long/Short Equity Fund* 259,819,600 162,663,681 ---------- * The Long/Short Equity Fund does not include purchases of $276,190,884 to cover short sales and does not include in sales, proceeds of $354,232,273 from sales of short securities. 4. CAPITAL SHARE TRANSACTIONS As of August 31, 2002, each class of each Fund has 100,000,000 shares of $0.001 par value common stock authorized. Transactions in capital shares for the respective periods were as follows:
LARGE CAP VALUE FUND ---------------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 AUGUST 31, 2001 ----------------------- ---------------------- ------------------------ ---------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ----------------------- ---------------------- ------------------------ ---------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE --------- ----------- -------- ----------- --------- ----------- -------- ----------- Sales ............. 1,283,916 $15,322,244 190,878 $ 2,585,670 1,115,565 $13,942,691 312,891 $ 4,282,818 Repurchases ....... (341,318) (4,087,870) (441,950) (6,104,319) (685,909) (8,593,260) (155,263) (2,085,842) Reinvestments ..... 433,492 5,245,258 124,328 1,623,726 49,147 605,000 6,690 88,769 --------- ----------- -------- ----------- --------- ----------- -------- ----------- Net Increase / (Decrease) ..... 1,376,090 $16,479,632 (126,744) $(1,894,923) 478,803 $ 5,954,431 164,318 $ 2,285,745 ========= =========== ======== =========== ========= =========== ======== ===========
54 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
MID CAP VALUE FUND --------------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 AUGUST 31, 2001 ------------------------- ------------------------ ------------------------ ------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------- ------------------------ ------------------------ ------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ------------ ---------- ------------ --------- ----------- ------- --------- Sales ............ 582,556 $ 7,006,160 1,222,056 $ 14,291,790 1,100,689 $12,048,299 56,432 $ 700,197 Repurchases ...... (5,861,115) (68,878,769) (5,084,310) (60,950,610) (615,479) (6,598,787) (80,261) (986,871) Reinvestments .... 1,156,939 12,448,662 54,922 621,164 21,328 227,574 512 5,738 ---------- ------------ ---------- ------------ --------- ----------- ------- --------- Net Increase / (Decrease) .... (4,121,620) $(49,423,947) (3,807,332) $(46,037,656) 506,538 $ 5,677,086 (23,317) $(280,936) ========== ============ ========== ============ ========= =========== ======= =========
SMALL CAP VALUE FUND II ---------------------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 AUGUST 31, 2001 ------------------------- ------------------------ -------------------------- ------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------- ------------------------ -------------------------- ------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ------------ ---------- ----------- ----------- ------------- ---------- ------------ Sales ............ 3,033,259 $ 52,387,864 1,320,141 $20,704,925 19,694,143 $ 335,108,023 14,835,063 $242,115,972 Repurchases ...... (1,737,491) (29,229,512) (246,348) (3,871,375) (17,135,130) (281,011,266) (1,381,975) (22,216,233) Redemption Fees ........ -- 278,508 -- 34,902 -- 2,160,483 -- 180,816 Reinvestments .... 25,072 433,751 8,673 99,306 219,187 3,772,212 1,365 15,590 ---------- ------------ ---------- ----------- ----------- ------------- ---------- ------------ Net Increase ..... 1,320,840 $ 23,870,611 1,082,466 $16,967,758 2,778,200 $ 60,029,452 13,454,453 $220,096,145 ========== ============ ========== =========== =========== ============= ========== ============
ALL-CAP VALUE FUND --------------------------------------------- FOR THE PERIOD FOR THE PERIOD JULY 1, 2002* THROUGH JULY 1, 2002* THROUGH AUGUST 31, 2002 AUGUST 31, 2002 --------------------- --------------------- INSTITUTIONAL CLASS INVESTOR CLASS --------------------- --------------------- SHARES VALUE SHARES VALUE -------- ---------- -------- -------- Sales ............ 191,804 $1,912,736 14,591 $129,506 Repurchases ...... (270) (2,468) (5,710) (51,619) Reinvestments .... -- -- -- -- -------- ---------- -------- -------- Net Increase ..... 191,534 $1,910,268 8,881 $ 77,887 ======== ========== ======== ======== ------------ *Commencement of operations. 55 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONTINUED)
LONG/SHORT EQUITY FUND -------------------------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 2002 AUGUST 31, 2001 AUGUST 31, 2002 AUGUST 31, 2001 ------------------------- ------------------------ ------------------------ ------------------------- INSTITUTIONAL CLASS INSTITUTIONAL CLASS INVESTOR CLASS INVESTOR CLASS ------------------------- ------------------------ ------------------------ ------------------------- SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE ---------- ------------ ---------- ------------ --------- ------------ ---------- ----------- Sales ............ 3,801,272 $ 59,876,593 2,759,006 $ 40,812,603 3,481,685 $ 54,398,970 1,091,725 $16,103,937 Repurchases ...... (1,149,614) (17,812,016) (1,233,732) (17,707,652) (954,581) (14,880,977) (412,662) (5,899,701) Redemption Fees ........ -- 229,813 -- 171,930 -- 135,613 -- 52,010 Reinvestments .... 67,469 1,019,462 1,097 13,874 21,567 325,669 224 2,836 ---------- ------------ ---------- ------------ --------- ------------ --------- ----------- Net Increase ..... 2,719,127 $ 43,313,852 1,526,371 $ 23,290,755 2,548,671 $ 39,979,275 679,287 $10,259,082 ========== ============ ========== ============ ========= ============ ========= ===========
There is a 1.00% redemption fee on shares redeemed which have been held 365 days or less on the Small Cap Fund II. There is a 2.00% redemption fee on shares redeemed which have been held 365 days or less on the Long/Short Equity Fund. The redemption fees are retained by the Fund for the benefit of the remaining shareholders and recorded as paid in capital. On August 31, 2002 one shareholder held approximately 97% of the All-Cap Value Fund Institutional Class, and two shareholders held 100% of the All-Cap Value Fund Investor Class, and one shareholder held approximately 9% of the Mid Cap Value Fund Institutional Class. 5. FEDERAL INCOME TAX INFORMATION At August 31, 2002 Federal tax cost, aggregate gross unrealized appreciation and depreciation of securities held by each Fund were as follows:
NET UNREALIZED FEDERAL TAX UNREALIZED UNREALIZED APPRECIATION/ FUND COST APPRECIATION DEPRECIATION DEPRECIATION ---- ------------ ------------- ------------- -------------- Large Cap Value Fund $ 59,961,453 $ 2,081,317 $ (7,980,548) $ (5,899,231) Mid Cap Value Fund 61,444,634 3,409,893 (8,198,810) (4,788,917) Small Cap Value Fund 312,494,448 16,036,271 (40,801,514) (24,765,243) All-Cap Value Fund 1,958,131 32,307 (117,624) (85,317) Long/Short Equity Fund 31,635,210 21,865,608 (29,136,557) (7,270,949)
As of August 31, 2002, the components of distributable earnings on a tax basis were as follows: UNDISTRIBUTED UNDISTRIBUTED ORDINARY LONG-TERM FUND INCOME GAINS ---- ------------- ------------- Large Cap Value Fund $ 289,951 $436,278 Mid Cap Value Fund 1,596 -- Small Cap Value Fund -- 71,052 All-Cap Value Fund 476 -- Long/Short Equity Fund 4,901,696 -- 56 BOSTON PARTNERS FAMILY OF FUNDS NOTES TO FINANCIAL STATEMENTS (CONCLUDED) At August 31, 2002, the Funds had capital loss carryforwards available to offset future capital gains through the indicated expiration dates: EXPIRING AUGUST 31, FUND 2009 2010 ---- ---------- ----------- Mid Cap Value Fund $-- $419,138 Under Federal tax law, foreign currency and capital losses realized after October 31 may be deferred and treated as having arisen on the first day of the following fiscal year. For the year ended August 31, 2002, the Large Cap Value Fund, Small Cap Value Fund, All-Cap Value Fund and Long/Short Equity Fund incurred post-October capital losses of $1,972,139, $1,252,149, $9,359 and $526,524, respectively. For the year ended August 31, 2002, the Long/Short Equity Fund incurred post-October currency losses of $451. The differences between the book and tax basis components of distributable earnings relate principally to the timing of recognition of income and gains for federal income tax purposes. Short-term and foreign currency gains are reported as ordinary income for federal tax purposes. The tax character of dividends and distributions paid during the last two fiscal years were as follows: ORDINARY LONG-TERM FUND INCOME GAINS TOTAL ---- ----------- ---------- ----------- Large Cap Value Fund 2002 $ 3,666,759 $2,195,046 $ 5,861,805 2001 $ 1,715,208 $ -- $ 1,715,208 Mid Cap Value Fund 2002 $13,058,496 $ -- $13,058,496 2001 $ 805,596 $ -- $ 805,596 Small Cap Value Fund 2002 $ 4,099,661 $ 238,190 $ 4,337,851 2001 $ 114,896 $ -- $ 114,896 All-Cap Value Fund 2002 $ -- $ -- $ -- 2001 N/A N/A N/A Long/Short Equity Fund 2002 $ 1,290,287 $ 86,215 $ 1,376,502 2001 $ 17,296 $ -- $ 17,296 57 REPORT OF INDEPENDENT ACCOUNTANTS To the Shareholders and Board of Directors of The RBB Fund,Inc.: In our opinion, the accompanying statements of assets and liabilities, including the portfolios of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Boston Partners Large Cap Value Fund, Boston Partners Mid Cap Value Fund, Boston Partners Small Cap Value Fund II, Boston Partners Long/Short Equity Fund and Boston Partners All-Cap Value Fund, separately managed portfolios of The RBB Fund, Inc. (the "Fund") at August 31, 2002, the results of each of their operations for the year then ended (for the All-Cap Value Fund for the period July 1, 2002 (commencement of operations) through August 31, 2002) and the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2002, by correspondence with the custodians and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania October 16, 2002 58 BOSTON PARTNERS FAMILY OF MUTUAL FUNDS LARGE CAP VALUE FUND MID CAP VALUE FUND SMALL CAP VALUE FUND II ALL-CAP VALUE FUND LONG/SHORT EQUITY FUND SHAREHOLDER TAX INFORMATION (UNAUDITED) Each Fund is required by subchapter M of the Internal Revenue Code of 1986, as amended, to advise its shareholders within 60 days of each Fund's fiscal year end (August 31, 2002) as to the U.S. federal tax status of distributions received by each Fund's shareholders in respect of such fiscal year. During the fiscal year ended August 31, 2002, the following dividends and distributions per share were paid by each of the Funds:
ORDINARY INCOME CAPITAL GAINS ------------------------ ------------------------- INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTOR FUND CLASS CLASS CLASS CLASS ---- ------------- -------- ------------- -------- Boston Partners Large Cap Value Fund ............... $1.08 $1.07 $0.65 $0.65 Boston Partners Mid Cap Value Fund ................. 1.93 1.89 -- -- Boston Partners Small Cap Value Fund II ............ 0.20 0.20 0.01 0.01 Boston Partners All-Cap Value Fund ................. -- -- -- -- Boston Partners Long/Short Equity Fund ............. 0.49 0.48 0.03 0.03
The percentage of total ordinary income dividends qualifying for the corporate dividends received deduction for each Fund is as follows: Boston Partners Large Cap Value Fund ................. 20.8% Boston Partners Mid Cap Value Fund ................... 5.8% Boston Partners Small Cap Value Fund II .............. 62.2% Boston Partners All-Cap Value Fund ................... --% Boston Partners Long/Short Equity Fund ............... 100.0% These amounts were reported to shareholders as income in 2001. Because the Fund's fiscal year is not the calendar year, another notification will be sent with respect to calendar year 2002. The second notification, which will reflect the amount, if any, to be used by calendar year taxpayers on their U.S. federal income tax returns, will be made in conjunction with Form 1099-DIV and will be mailed in January 2003. Foreign shareholders will generally be subject to U.S. withholding tax on the amount of their dividend. They will generally not be entitled to a foreign tax credit or deduction for the withholding taxes paid by the Fund, if any. In general, dividends received by tax exempt recipients (e.g., IRAs and Keoghs) need not be reported as taxable income for U.S. federal income tax purposes. However, some retirement trusts (e.g., corporate, Keogh and 403(b)(7) plans) may need this information for their annual information reporting. Shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in the Fund. 59 BOSTON PARTNERS FAMILY OF FUNDS FUND MANAGEMENT (UNAUDITED) Information pertaining to the Directors and Officers of the Fund is set forth below. The statement of additional information (SAI) includes additional information about the Directors and is available without charge, upon request, by calling (888) 261-4073.
------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF TERM OF OFFICE PORTFOLIOS IN OTHER NAME, ADDRESS, POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) DURING FUND COMPLEX DIRECTORSHIPS AND AGE WITH FUND TIME SERVED PAST 5 YEARS OVERSEEN BY HELD BY DIRECTOR DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT DIRECTORS ------------------------------------------------------------------------------------------------------------------------------------ Julian A. Brodsky - 69 Director - Until successor is Director and Vice Chairman, 13 Director, Comcast Corporation elected and Comcast Corporation (cable Comcast 1500 Market Street, 35th Fl. qualified or until television and communications) Corporation; Philadelphia, PA 19102 his death, since 1969. Director, NDS resignation or Group, PLC removal. (provider of systems and - 1988 to present applications for digital pay TV). ------------------------------------------------------------------------------------------------------------------------------------ Francis J. McKay - 66 Director - Until successor is Executive Vice President, 13 None Fox Chase Cancer Center elected and Fox Chase Cancer Center 7701 Burholme Avenue qualified or until (biomedical research and Philadelphia, PA 19111 his death, medical care) since 1963. resignation or removal. - 1988 to present ------------------------------------------------------------------------------------------------------------------------------------ Arnold M. Reichman - 54 Director - Until successor is Director, Gabelli Partners, 13 None 106 Pierreport Street elected and L.P. (an investment Brooklyn, NY 11201 qualified or until partnership) since December his death, 2000; Chief Operating Officer resignation or and member of the Board of removal. Directors of Outercurve Technologies (wireless - 1991 to present enabling services) until April 2001; Chief Operating Officer and member of the Executive Operating Committee of Warburg Pincus Asset Management, Inc.; Executive Officer and Director of Credit Suisse Asset Management Securities, Inc. (formerly Counsellors Securities, Inc.) and Director/Trustee of various investment companies advised by Warburg Pincus Asset Management, Inc. until September 15, 1999; Managing Director of Warburg Pincus Asset Management, Inc. until 1997. ------------------------------------------------------------------------------------------------------------------------------------ Marvin E. Sternberg - 68 Director - Until successor is Chairman, Director and 13 Chairman and Moyco Technologies, Inc. elected and President, Moyco Technologies, Director, Moyco 200 Commerce Drive qualified or until Inc. (manufacturer of Technologies, Montgomeryville, PA 18936 his death, precision coated and Inc. resignation or industrial abrasives) since removal. 1974; Director, Pennsylvania Business Bank since 1999. - 1988 to present ------------------------------------------------------------------------------------------------------------------------------------
60 BOSTON PARTNERS FAMILY OF FUNDS FUND MANAGEMENT (CONTINUED) (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF TERM OF OFFICE PORTFOLIOS IN OTHER NAME, ADDRESS, POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) DURING FUND COMPLEX DIRECTORSHIPS AND AGE WITH FUND TIME SERVED PAST 5 YEARS OVERSEEN BY HELD BY DIRECTOR DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED DIRECTORS ------------------------------------------------------------------------------------------------------------------------------------ Robert Sablowsky** - 64 Director - Until successor is Senior Vice President of 13 None Fahnestock & Company, Inc. elected and Fahnestock & Co., Inc. 125 Broad Street qualified or until (financial services) since New York, NY 10004 his death, 2002 and employed by resignation or Fahnestock & Co., Inc. for removal. greater than 5 years. - 1991 to present ------------------------------------------------------------------------------------------------------------------------------------ J. Richard Carnall** - 64 Director and - Until successor is Director of PFPC Inc. 13 None 86 New Freedom Road Chairman of elected and (financial services) since Medford, NJ 08055 the Board qualified or until 1987; Chairman and Chief his death, Executive Officer of PFPC Inc. resignation or from 1987 to 2002; Executive removal. Vice President of PNC Bank, National Association from 1981 - August 2002 to to 2002; Director of PFPC present International Ltd. (financial services) from 1993 to 2002; Director of PFPC International (Cayman) Ltd. (financial services) from 1996 to 2002; Director of International Dollar Reserve Fund, Ltd. (Cayman Mutual Fund Company) from 1993 to 2002; Governor of the Investment Company Institute (investment company industry trade organization) from 1996 to 2002; Director of PNC Asset Management, Inc. (investment advisory) from 1994 to 1998; Director of PNC National Bank from 1995 to 1997; Director of Haydon Bolts, Inc. (bolt manufacturer) and Parkway Real Estate Company (subsidiary of Haydon Bolts, Inc.) since 1984. Mr. Carnall provides consulting services from time to time to PFPC Inc. ------------------------------------------------------------------------------------------------------------------------------------ ** Mr. Carnall is considered an "interested Director" of the Company because he owns shares of The PNC Financial Services Group, Inc. The investment adviser to the Company's Money Market Portfolio, BlackRock Institutional Management Corporation, and the Company's principal underwriter, PFPC Distributors, Inc., are indirect subsidiaries of the PNC Financial Services Group, Inc. Mr. Carnall also owns shares of PFPC Inc., the Company's administrator. Mr. Sablowsky is considered an "interested Director" of the Company by virtue of his position as an officer of a registered broker-dealer.
61 BOSTON PARTNERS FAMILY OF FUNDS FUND MANAGEMENT (CONCLUDED) (UNAUDITED)
------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF TERM OF OFFICE PORTFOLIOS IN OTHER NAME, ADDRESS, POSITION(S) HELD AND LENGTH OF PRINCIPAL OCCUPATION(S) DURING FUND COMPLEX DIRECTORSHIPS AND AGE WITH FUND TIME SERVED PAST 5 YEARS OVERSEEN BY HELD BY DIRECTOR DIRECTOR ------------------------------------------------------------------------------------------------------------------------------------ OFFICER(S) WHO ARE NOT DIRECTORS ------------------------------------------------------------------------------------------------------------------------------------ Edward J. Roach - 78 President and - Until successor is Certified Public Accountant; N/A N/A 400 Bellevue Parkway Treasurer elected by the Vice Chairman of the Board, 4th Floor board. Fox Chase Cancer Center Wilmington, DE 19809 (biomedical research and - 1991 and 1988 medical care); Trustee respectively Emeritus, Pennsylvania School for the Deaf; Trustee Emeritus, Immaculata University; President or Vice President and Treasurer of various investment companies advised by subsidiaries of PNC Bank Corp. from 1981 to 1997; Managing General Partner and President of Chestnut Street Exchange Fund; Director of the Bradford Funds, Inc. from 1996 to 2000. ------------------------------------------------------------------------------------------------------------------------------------ Timothy K. Biedrzycki - 54 Secretary and - Until successor is Director and Vice President, N/A N/A 400 Bellevue Parkway Assistant elected by the Fund Accounting and 4th Floor Treasurer board. Administration of PFPC Inc. Wilmington, DE 19809 since 1998; Director and Vice - 2000 and 1998 President, Fund Accounting and respectively Administration of Federated Services Company (financial services) from 1994 to 1997. ------------------------------------------------------------------------------------------------------------------------------------
62 BOSTON PARTNERS FAMILY OF FUNDS SHAREHOLDER VOTING RESULTS (UNAUDITED) On August 30, 2002 a meeting of shareholders of The RBB Fund, Inc. (the "Fund") was held. The purpose of the meeting was to elect the following individuals as directors of the Fund: Julian A. Brodsky J. Richard Carnall Francis J. McKay Arnold M. Reichman Robert Sablowsky Marvin E. Sternberg The results were as follows:
SHARES VOTED SHARES VOTED SHARES TOTAL SHARE DIRECTOR: IN FAVOR: AGAINST: ABSTAINED: VOTES: ---------------------- --------------- ------------ ----------- --------------- Julian A. Brodsky 211,501,409.867 0 498,490.822 211,999,900.689 J. Richard Carnall 211,476,781.686 0 523,119.003 211,999,900.689 Francis J. McKay 211,582,965.318 0 416,935.371 211,999,900.689 Arnold M. Reichman 211,544,328.943 0 455,571.746 211,999,900.689 Robert Sablowsky 211,574,208.446 0 425,692.243 211,999,900.689 Marvin E. Sternberg 211,510,809.394 0 489,091.295 211,999,900.689
63 [THIS PAGE INTENTIONALLY LEFT BLANK] INVESTMENT ADVISER Boston Partners Asset Management, L.P. 28 State Street Boston, MA 02109 ADMINISTRATOR/TRANSFER AGENT PFPC Inc. 400 Bellevue Parkway Wilmington, DE 19809 DISTRIBUTOR PFPC Distributors, Inc. 3200 Horizon Dr. King of Prussia, PA 19406 CUSTODIAN PFPC Trust Company 8800 Tinicum Blvd. Suite 200 Philadelphia, PA 19153 INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP Two Commerce Square, Suite 1700 2001 Market Street Philadelphia, PA 19103-7042 COUNSEL Drinker Biddle & Reath LLP One Logan Square 18th and Cherry Streets Philadelphia, PA 19103-6996 This report is submitted for the general information of the shareholders of each Fund. It is not authorized for the distribution to prospective investors in the Funds unless it is preceded or accompanied by a current prospectus which includes details regarding the Fund's objectives, policies and other information. Total investment return is based on historical results and is not intended to indicate future performance. The investment return and principal value of an investment in the Funds will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than original cost. UNION BUG