Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of December 31, 2022
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 1.40% 6.95% 6.83%
10-Year 8.09% 14.43% 12.56%
5-Year -2.53% 9.67% 9.42%
3-Year -13.09% 6.10% 7.66%
1-Year -59.91% -32.54% -18.11%
Q4 '22 (not annualized) -13.38% -0.79% 7.56%

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 1.83%. The Fund's total net operating expenses are 1.83%. 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 4/30/23.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through December 31, 2022

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.

Q3 '22 Contributors to Performance

Solar microinverter supplier Enphase (ENPH) was the largest contributor to the Fund’s performance in Q3. During the quarter, the company announced Q2 revenues that topped analysts’ expectations, with Europe revenues jumping 69% compared to the year-ago period.

Cloudflare (NET) was the second largest contributor to fund performance during the quarter. The cloud services provider disclosed in Q3 that second quarter revenues increased 54% year over year. Another significant contributor to the Fund’s performance in Q3 was cloud-based financial software firm Bill.com Holdings (BILL). The company beat revenue and earnings expectations for its fiscal fourth quarter.

Q3 '22 Detractors from Performance

Streaming media company Roku (ROKU) was the biggest detractor from the Fund’s performance in Q3. Roku announced its financial results for the second quarter that underperformed analysts’ expectation for revenues and earnings. The company’s guidance for third quarter revenues also fell below analysts’ estimates.

Pivotal Systems (ASX: PVS) was the second largest detractor from the Fund’s performance in the third quarter. The provider of flow control solutions to the semiconductor industry reported during the quarter that revenues for the first half of 2022 fell 35% compared with the same period in 2021.

Semiconductor equipment company Revasum (ASX: RVS) was the third largest detractor from fund performance in Q3. Revasum named its new CEO during the quarter but followed that announcement by withdrawing the full-year revenue guidance that it disclosed earlier in the year.

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 9/30/22: ENPH (10.37% of TEFQX), NET (4.65% of TEFQX), BILL (4.95% of TEFQX), ROKU (12.70% of TEFQX), ASX: PVS (2.25% of TEFQX), ASX: RVS (2.03% 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.