Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of September 30, 2020
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 5.24% 7.96% 6.74%
10-Year 17.86% 18.12% 13.74%
5-Year 26.65% 20.63% 14.15%
3-Year 26.95% 21.05% 12.28%
1-Year 49.21% 40.96% 15.15
Q3 '20 (not annualized) 16.73% 11.24% 8.93%

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 4/30/21.

Growth of a Hypothetical $10,000 Investment

September 30, 1999 through September 30, 2020

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 '20 Contributors to Performance

The largest positive contributor to the Fund’s performance in Q2 was online education leader Chegg (CHGG). The company has benefited from the shift to remote learning and reported a 35% increase in Q1 revenues over the same period a year ago. The company’s stock soared as well, closing the quarter up nearly 88%.

Roku (ROKU) was another beneficiary of stay-at-home policies, and its stock gained 33% during the second quarter. The company reported strong growth in active accounts, new accounts, and streaming hours during the quarter, though its warned that it experienced an increase in advertising cancellations due to the COVID-19 crisis.

Business intelligence software company Domo (DOMO) was a third major contributor to the Fund’s performance during the quarter. The company has delivered steady increases in revenues over the past several quarters and its stock appreciated over 200% during the quarter.

Q2 '20 Detractors from Performance

The equity markets staged a powerful rally in Q2 and, as a result, there were few negative contributors to fund performance during the quarter. The biggest detractor from the Fund’s performance was the Fund’s hedging strategy, designed to soften the blow of negative market movements. As the market rallied in April, the Fund realized losses resulting from the expiration of various options.

Another negative contributor to the Fund’s performance during the quarter was II-VI (IIVI). The Fund sold its position in the semiconductor company early in the quarter at a price below the closing price as of the end of Q1. Similarly, the Fund also liquidated its position in NVIDIA (NVDA) in early April, at prices below the market value as of March 31, 2020.

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 6/30/20: CHGG (9.9% of TEFQX), ROKU (12.1% of TEFQX), DOMO (3.5% of TEFQX), IIVI (0.0% of TEFQX), NVDA (0.0% 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.