Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of June 30, 2018
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 3.39% 6.54% 6.10%
10-Year 17.12% 13.96% 10.16%
5-Year 25.03% 18.61% 13.40%
3-Year 21.83% 16.04% 11.92%
1-Year 46.18% 23.64% 14.36%
Q2 '18 (not annualized) 9.81% 6.61% 3.43%

Datasheet

The Fund's performance information assumes reinvestment of all dividends and includes all Fund expenses, but does not reflect the impact of taxes. Performance data quoted represent past performance, which is not a guarantee of future results, and current performance may be lower or higher than the performance quoted. Both the return from and the principal value of an investment in the Fund will fluctuate so that any investor's shares, when redeemed, may be worth more or less than their original cost. To obtain performance as of the most recent month-end, please contact Firsthand Funds by calling 1.888.884.2675 or go to www.firsthandfunds.com.

The Fund's total gross operating expenses are 1.86%. The Fund's total net operating expenses are 1.85%. Under the Investment Advisory Agreements, the Investment Adviser has agreed to reduce its fees and/or make expense reimbursements so that the Fund's total operating expenses (excluding independent trustees' compensation, brokerage and commission expenses, litigation costs and any extraordinary and non-recurring expenses) are limited to 1.85% of the Fund's average daily net assets up to $200 million, 1.80% of such assets from $200 million to $500 million, 1.75% of such assets from $500 million to $1 billion, and 1.70% of such assets in excess of $1 billion. The current expense waiver is in effect until 8/31/18.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through June 30, 2018

Chart represents the growth of a hypothetical $10,000 investment from Firsthand Technology Opportunities Fund inception date until the end of the quarter indicated. Firsthand Technology Opportunities Fund performance assumes reinvestment of all dividends and includes all Firsthand Technology Opportunities Fund expenses but does not reflect the impact of taxes.

Q1 '18 Contributors to Performance

Netflix (NFLX) was the top contributor to the Fund's performance for the first quarter, gaining 53.86%. The streaming media giant posted a strong Q4 revenue beat in January, adding more than 8 million subscribers worldwide, which marks a new quarterly record for the company. Netflix has seen strong growth based in part on its original programming, which includes hits such as Stranger Things, The Crown, and Black Mirror.

Nutanix (NTNX) was another strong contributor to performance in Q1. The enterprise cloud company reported revenue and earnings that exceeded analysts' expectations for its fiscal Q2 as it executes on its transition to a software-centric business model. The company's shares finished up 39.20% for the first quarter.

Amazon (AMZN) rounds out the Fund's top three performers for the first quarter of 2018, with shares finishing up 23.76%. The e-commerce giant had a very strong holiday season and continues to see strong growth in its Amazon Web Services (AWS) cloud division, both of which helped it post a revenue beat for Q4. AWS sales grew 45% year-over-year and generated $1.3 billion in operating income for the quarter.

Q1 '18 Detractors from Performance

The leading detractor from Fund performance for the first quarter was Overstock.com (OSTK), whose shares slid 43.27% in Q1. The e-commerce company reported Q4 losses of $95.7 million ($3.72 per share) compared to $3.1 million gain in Q4 2016. Additionally, the Securities and Exchange Commission announced it is investigating the initial coin offering of Overstock's subsidiary tZero.

Facebook (FB) reported a significant jump in revenue for 2017: $40.65 billion compared with $26.89 billion in 2016. Despite that growth, investors were rattled by Q4's year-over-year decline in daily active users in the U.S. and Canada: from 185 million to 184 million. Facebook also faced significant scrutiny for the Cambridge Analytica scandal, in which a political firm was able to gain access to Facebook user data through a third party. Facebook shares finished Q1 down 9.45%.

Roku (ROKU) was another detractor from Fund performance during the quarter. Although the company reported strong subscriber growth for Q4 2017 and reported a revenue beat for the fourth quarter, management offered a weak Q1 forecast and shares fell 39.94% for the first quarter of 2018.

Firsthand Technology Opportunities Fund is subject to greater risk than more diversified funds because of its investments in fewer securities and because of its concentration of investments in certain industries in the technology sector. Specific risks associated with investments in the technology industries (as described in the Fund's Prospectus) could cause the Fund's share price to fluctuate dramatically. The Fund's investments in small-cap companies present greater risk than investments in larger companies. The Fund invests in several industries within the technology sector and the relative weightings of these industries in the Fund's portfolio may change at any time. Equity investing involves risks, including the potential loss of the principal amount invested.

The NASDAQ Composite Index (NASDAQ) and the Standard & Poor's 500 Index (S&P 500) each represent an unmanaged, broad-based basket of stocks and are typically used as benchmarks for overall market performance. The indices' performance figures assume the reinvestment of all dividends (except where noted), but do not reflect the impact of taxes. Additionally, because an investor cannot invest in an index directly, indices' performance figures do not reflect the expenses associated with the management of an actual mutual fund portfolio.

As of 3/31/18: AMZN (4.40% of TEFQX), FB (4.37% of TEFQX), NFLX (6.28% of TEFQX), NTNX (7.46% of TEFQX), OSTK (0.88% of TEFQX), ROKU (3.78% of TEFQX). A complete list of portfolio holdings for Firsthand Funds is available on www.firsthandfunds.com and is updated 45 days after the end of the every calendar quarter. The portfolio holdings discussed are subject to change.

The information provided should not be considered a recommendation to purchase or sell a particular security and there is no assurance that, as of the date of publication, the securities purchased remain in a Fund's portfolio or that securities sold have not been repurchased. Also, you should note that the securities discussed, even if they have been purchased by a Fund, do not represent a Fund's entire portfolio and, in the aggregate, may represent only a small percentage of that Fund's holdings. There can be no assurance that any Firsthand Funds will buy, sell, or hold any particular security after the date referred to in the discussion.