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%
Monthly Performance Update
As of October 31, 2020
Period Firsthand Technology
Opportunities Fund
Since inception (9/30/99) 5.34%
10-Year 17.74%
5-Year 26.06%
3-Year 25.36%
1-Year 46.63%
1-Month 2.45%

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.

Q3 '20 Contributors to Performance

The largest positive contributor to the Fund’s performance in Q3 was streaming video leader Roku (ROKU). The company continues to benefit from consumers’ stay-at-home practices during the COVID-19 crisis. As of the close of Roku’s second quarter ended June 30, 2020, the company’s active customer accounts have increased by 41% and revenues have increased by 42% since the year-ago period.

Pinterest (PINS) stock gained 87% in Q3 after the company reported a sharp increase in monthly average users during the quarter. The company credited users’ increasing reliance on its digital pinboard and shopping tool during the pandemic. Despite posting revenue growth of only 4% on a year-over-year basis, Pinterest exceeded analysts’ expectations for revenue and earnings.

After adding Peloton (PTON) to the Fund’s portfolio in Q2, the company was the third-largest contributor to fund performance in Q3. The company reported 172% year-over-year revenue growth for its fourth fiscal quarter ended June 30, 2020. Peloton’s stock was up approximately 72% during Q3.

Q3 '20 Detractors from Performance

The stock of Slack (WORK) slumped nearly 14% in Q3, reflecting investor concerns slowing growth and increasing competition. During the quarter, the company filed an antitrust complaint against Microsoft in Europe and announced financial results for its fiscal second quarter that failed to impress investors.

Another negative contributor to the Fund’s performance during the quarter was CytoDyn (CYDY). The Fund established a position in this biotech company after the company announced early trial success of its monoclonal antibody therapy, Leronlimab, in treatment of COVID-19 patients. In the absence of further material news, the company’s stock slid in the last two months of Q3.

Revasum (ASX: RVS) was another significant detractor from performance during Q3. During the quarter, the company announced that revenues for the first half of 2020 had declined 57%, as compared to the same period a year ago. Revasum stock reflected the poor results and finished the quarter down 38%.

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 9/30/20: ROKU (17.37% of TEFQX), PINS (4.14% of TEFQX), PTON (3.80% of TEFQX), WORK (3.19% of TEFQX), CYDY (0.36% of TEFQX), RVS.ASX (0.46% 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.