Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of December 31, 2018
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 2.59% 5.71% 5.55%
10-Year 19.72% 16.85% 13.10%
5-Year 14.39% 11.05% 8.48%
3-Year 19.78% 11.16% 9.24%
1-Year 4.31% -2.81% -4.39%
Q4 '18 (not annualized) -17.32% -17.28% -13.52%
Monthly Performance Update
As of February 28, 2019
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 3.86%
10-Year 23.22%
5-Year 18.55%
3-Year 35.28%
1-Year 21.08%
1-Month 8.68%

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 8/31/19.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through December 31, 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.

Q4 '18 Contributors to Performance

Cree (CREE) was the top contributor to the Fund’s performance in the fourth quarter. The manufacturer of LEDs, lighting products, and silicon carbide semiconductors topped analysts’ expectations for its first fiscal quarter of 2019. Cree has been reducing its exposure to the lighting industry and focusing on higher-margin businesses such as power and radio frequency semiconductors.

Database software provider MongoDB (MDB) was another top contributor to the Fund’s performance during the quarter. Although the company’s stock was up only modestly during the quarter, we made our first purchase of MongoDB shares in mid October, after a sharp sell off in the market. As of December 31, 2018, our investment in MongoDB was up 19.71% since that initial purchase.

Twilio (TWLO) stock was up only 3.50% during Q4, but it was one of the few positive contributors during Q4. During the quarter, the company reported revenue and earnings that topped consensus estimates and announced that its client base continues to grow.

Q4 '18 Detractors from Performance

Roku (ROKU) stock declined sharply during the fourth quarter and was the largest detractor from fund performance for the quarter. In early November, the company announced third quarter revenue and earnings that beat analysts’ expectations, but disappointed investors with lower-than-expected guidance for its fourth fiscal quarter.

Another big detractor from the Fund’s performance during the quarter was Arista Networks (ANET). Despite third quarter financial results that topped analysts’ expectations, the company cautioned that uptake of its newly-announced 400 gigabit Ethernet product would take some time.

Netflix (NFLX) was a third major detractor from the Fund’s performance during Q4. Even though the stock was up for the year, it slid in the fourth quarter along with other FAANG stocks. The company reported strong growth in new subscriber additions in Q3 and predicted even stronger additions in Q4.

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 12/31/18: CREE (3.52% of TEFQX), MDB (2.12% of TEFQX), TWLO (7.91% of TEFQX), ROKU (4.65% of TEFQX), ANET (9.33% of TEFQX), NFLX (5.93% 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 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.