Firsthand Technology Opportunities Fund

Firsthand Technology Opportunities Fund

Average Annual Total Returns vs. Indices
As of March 31, 2019
Period Firsthand Technology
Opportunities Fund
NASDAQ Composite Index S&P 500 Index
Since inception (9/30/99) 3.89% 6.48% 6.17%
10-Year 21.63% 19.02% 15.91%
5-Year 19.24% 14.38% 10.90%
3-Year 33.17% 18.06% 13.52%
1-Year 23.77% 10.65% 9.48%
Q1 '19 (not annualized) 28.53% 16.81% 13.65%
Monthly Performance Update
As of May 31, 2019
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 3.68%
10-Year 18.83%
5-Year 18.76%
3-Year 30.62%
1-Year 10.13%
1-Month -6.77%

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 March 31, 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.

Q1 '19 Contributors to Performance

The top contributor to the Fund’s performance in the first quarter of 2019 was Roku (ROKU). The streaming video hardware and software provider reported Q4’18 revenue and earnings that beat analysts’ expectations, and its stock finished the quarter up 110.5%.

Networking equipment maker Arista Networks (ANET) was another strong contributor to fund performance during the quarter. Arista stock was up 49.2% during the quarter, after reporting Q4’18 earnings in mid-February that exceeded analysts’ expectations.

Twilio (TWLO) stock was up 44.7% for the quarter ended March 31, 2019, and was also a major contributor to the Fund’s Q1 performance. The stock benefitted from a number of analyst upgrades during the quarter.

Q1 '19 Detractors from Performance

Nutanix (NTNX) was one of the few negative performers for the Fund during the first quarter of 2019. The company’s stock fell sharply in early March after Nutanix reported a sales forecast for its fiscal third quarter that was much weaker than analysts were expecting.

We purchased On Semiconductor (ON), a supplier of semiconductors to the automotive, industrial, and communications markets, during the quarter. Shortly after our purchase, the stock dropped approximately 10% and we exited our position prior to the end of the quarter, realizing a small loss in the process.

SolarEdge (SEDG) is a manufacturer of DC optimized power inverters for solar photovoltaic systems. We purchased shares of SolarEdge in February after the company missed analysts’ earnings expectations for Q4 2018. The company’s stock suffered a modest decline between our purchase date and the end of the quarter.

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 3/31/19: ROKU (4.7% of TEFQX), ANET (6.7% of TEFQX), TWLO (5.5% of TEFQX), NTNX (2.9% of TEFQX), SEDG (0.5% 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.