Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of June 30, 2019
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 3.82% 6.60% 6.32%
10-Year 19.07% 17.29% 14.69%
5-Year 17.87% 14.07% 10.71%
3-Year 32.73% 19.66% 14.21%
1-Year 12.38% 7.81% 10.41%
Q2 '19 (not annualized) -0.30% 3.88% 4.30%
Monthly Performance Update
As of July 31, 2019
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 3.91%
10-Year 18.67%
5-Year 18.96%
3-Year 30.59%
1-Year 16.92%
1-Month 2.02%

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 June 30, 2019

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.

Q2 '19 Contributors to Performance

The top contributor to the Fund’s performance in the second quarter of 2019 was Roku (ROKU). The streaming video hardware and software provider reported financial results for Q1’19 that exceeded analysts’ expectations. The company’s active user accounts grew 40% year-over-year, and its stock was up 40% during Q2.

Microsoft (MSFT) was another top contributor during Q2, with its stock up 14% during the quarter. The company reported its financial results for its fiscal third quarter in April and surpassed analysts’ expectations for revenues and earnings on the back of strong growth in its Azure (cloud) business unit, which posted year-over-year revenue growth of 73%.

A third major contributor to the Fund’s performance in Q2 was Facebook (FB). The company’s stock rose sharply in April after the social networking firm posted better-than-expected revenues for the first quarter of 2019 and monthly average users that were in line with expectations. The company also announced that it had booked a $3 million accrual for an anticipated settlement with the FTC over privacy issues.

Q2 '19 Detractors from Performance

Nutanix (NTNX) stock continued to slide in Q2, following a second consecutive disappointing earnings report from the company. Fiscal Q3 revenues declined 0.6% from the year-ago period and missed analysts’ expectations as the company transitions from a device-based to a subscription-based business model. Nutanix stock finished the quarter down 31%.

Another detractor from the Fund’s performance in Q2 was Arista Networks (ANET), as the company’s stock fell 17% during the quarter. The maker of networking equipment saw its shares drop dramatically in early May after providing softer-than-expected guidance to analysts for Q2, despite exceeding expectations in Q1 2019. The company cited orders being put on hold by a certain cloud customer as contributing to the lowered guidance.

2U (TWOU) was another major detractor from fund performance during the quarter, as the education technology company experienced a 47% decline in its stock during the quarter. Despite posting earnings and revenues for its first quarter that exceeded its own financial guidance, 2U stock plummeted after the company reduced its revenue outlook for the full year 2019, reflecting declining enrollments in its five most popular programs.

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 6/30/19: ROKU (6.3% of TEFQX), MSFT (3.9% of TEFQX), FB (2.8% of TEFQX), NTNX (3.4% of TEFQX), ANET (5.2% of TEFQX), TWOU (1.1% 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.