BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
BERGER IPT-100 FUND
BERGER IPT-GROWTH AND INCOME FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER/BIAM IPT-INTERNATIONAL FUND
Berger Institutional Products Trust is presenting a combined semi-annual report
which includes the Berger IPT-100 Fund, Berger IPT-Growth and Income Fund,
Berger IPT-Small Company Growth Fund and Berger/BIAM IPT-International Fund. The
report reflects the financial position of each Fund at June 30, 1997, and the
results of their operations for the period ended June 30, 1997, and changes in
their net assets for the period then ended and for the period May 1, 1996
(commencement of investment operations) through December 31, 1996 (except for
the Berger/BIAM IPT-International Fund), in a single document.
TABLE OF CONTENTS
BERGER IPT-100 FUND
Portfolio Manager's Letter 2
Schedule of Investments 5
BERGER IPT-GROWTH AND INCOME FUND
Portfolio Manager's Letter 8
Schedule of Investments 10
BERGER IPT-SMALL COMPANY GROWTH FUND
Portfolio Manager's Letter 13
Schedule of Investments 15
BERGER/BIAM IPT-INTERNATIONAL FUND
Portfolio Manager's Letter 19
Schedule of Investments 23
Financial Statements 26
Notes to Financial Statements 30
Financial Highlights 34
1
<PAGE>
BERGER IPT-100 FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder:
It was my privilege to assume portfolio management responsibilities for
the Berger IPT-100 Fund on February 3, 1997, just one month into this reporting
period. As a professional money manager, previously with Kemper and Founders
Funds, I have long respected the Berger philosophy that profitable, successful
companies are more apt to be profitable, successful investments. Although I have
made many changes in the portfolio, all decisions were made in accordance with
the Berger philosophy. By adhering to this proven investment philosophy, and by
seeking out reasonably valued, high quality, predictable growth companies, I
believe we can return this Fund to its proper place as a performance leader
among its peers.
MARKET PERFORMANCE
Between January 1 and June 30, 1997, market performance was like night
and day. Jitters about potential Federal Reserve Board interest rate hikes
depressed the market in the first quarter. Remarks by Fed Chairman Greenspan in
the second quarter calmed the fears and the market rebounded strongly. Thanks to
the second quarter bounce, the S&P 500 Stock Index rose 20.60% during the
six-month period ended June 30, 1997. Your Fund gained 8.28% over the same
period.*
One of the key reasons for the Fund's underperformance was the nature of
the market itself. This market has not raised all boats. The biggest gainers,
particularly in the first quarter, were the biggest companies--and only a
handful at that. These typically are not the companies in which your Fund
invests. That's because the largest companies are not growth companies; they
cannot sustain the consistent 20% annual growth rates that we seek for our
shareholders.
I was very encouraged by how the market broadened in the second quarter,
and believe this will continue throughout 1997. A broader market means that more
companies, particularly the mid-cap growth companies that we focus on in this
Fund, will have the opportunity to be among the market's leading performers.
PORTFOLIO REPOSITIONING
Investments held by the Fund also led to its underperformance. As I
mentioned earlier, I have made changes in the portfolio. In fact, I've created
an almost entirely new portfolio. Although these changes were not sufficient to
meet the Fund's performance targets this reporting period, they have improved
quality and will enable us to maintain our long-term growth rate target.
2
<PAGE>
We increased the number of stocks in the portfolio from 43 in early February to
65 on June 30, adding more diversification to the Fund overall. We also "weeded
the garden," removing stocks in sectors that we were shifting away from and poor
performers that were dragging down Fund performance.
Our biggest sector shift was away from energy and into consumer products.
Energy service holdings were reduced from 11% of Fund assets in early February
to 4.5% on June 30. We pulled back because we felt that the Fund was overexposed
to this volatile sector. We also elected to take some profits and redirect the
funds into more attractive opportunities in other sectors.
Consumer holdings increased from 4% to around 14% over the same period.
We believe the sector has good prospects for the next several quarters, driven
by strong consumer spending.
We reduced our healthcare holdings from 13% to approximately 11% in order
to take some profits. We also find that the large cap, premium names in this
sector have very high valuations and, thus, are not available at the prices we
seek.
We held steady on the technology sector, which makes up approximately 22%
of the portfolio. We continue to be able to find excellent companies at
reasonable value in this sector, which, over the long-term, is the key to growth
in the U.S.
economy.
GOING FORWARD
We believe the Fund has been repositioned appropriately and, going
forward in 1997, has the characteristics of a high quality,
growth-at-a-reasonable-price portfolio.
Our key challenge in the future is to carefully monitor the fundamentals
of the stocks in the portfolio. We will not hesitate to eliminate stocks when we
see negative changes. We will increase positions in securities in which we have
the most confidence on market pullbacks.
The Berger IPT-100 Fund has a new portfolio manager and a new drive and
determination to meet its performance goals. On behalf of myself, and the
dedicated team of analysts and institutional service people who work with me,
thank you for your investment in the Berger IPT-100 Fund.
Patrick Adams
Portfolio Manager
Berger IPT - 100 Fund
3
<PAGE>
* Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
(DESCRIPTION OF BERGER IPT-100 FUND PERFORMANCE CHART)
The following table reflects data presented in a line chart at this point in the
SemiAnnual Report to Shareholders. The chart compares the value of shares
invested in the Berger IPT-100 Fund to the S&P 500 Index and to the Cost of
Living Index. The chart is based on an initial investment of $10,000 on May 1,
1996, with all dividends and capital gains reinvested.
<TABLE>
<CAPTION>
Date Berger IPT-100 Fund S&P 500 Index Cost of Living Index
<S> <C> <C> <C>
5/1/96 $ 10,000 $ 10,000 $ 10,000
6/30/96 $ 9,780 $ 10,303 $ 10,026
9/30/96 $ 10,080 $ 10,619 $ 10,096
12/31/96 $ 10,390 $ 11,503 $ 10,147
3/31/97 $ 10,030 $ 11,813 $ 10,237
6/30/97 $ 11,250 $ 13,871 $ 10,243
</TABLE>
Past performance is not predictive of future performance.
TOP TEN HOLDINGS AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
% of Net Assets % of Net
Assets
6/30/97 12/31/96
<S> <C> <C>
1. Microsoft Corp. 2.1% 2.5%
2. Cadence Design Systems 1.9% 1.8%
3. Warner-Lambert Co. 1.6% 1.8%
4. Eli Lilly & Co. 1.5% 1.9%
5. Intel Corp. 1.5% 2.6%
6. Altlera Corp. 1.5% 2.0%
7. Pfizer, Inc. 1.5% 1.9%
8. Nokia Corp. ADR 1.2% 1.7%
9. AGCO Corp. 1.2% 1.7%
10. Solectron Corp. 1.2% 1.6%
</TABLE>
4
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
Shares, Units or
Principal Amount Market Value
COMMON STOCK -56.5%
<S> <C> <C>
Aerospace/Defense - 0.9%
100 Boeing Co. $ 5,306
---------
Auto/Truck - Original Equipment - 0.7%
100 Lear Corp. 4,430
---------
Banks - Money Center - 1.7%
40 Chase Manhattan Corp. 3,883
55 Citicorp 6,631
---------
10,514
---------
Beverages - Soft Drinks - 0.7%
115 Pepsico, Inc. 4,320
---------
Computer - Graphics - 1.9%
350 Cadence Design Systems* 11,725
---------
Computer - Local Networks -1.1%
175 Ascend Communications 6,891
---------
Computer - Services - 0.9%
80 HBO & Co. 5,510
---------
Computer - Software -4.7%
125 BMC Software, Inc.* 6,922
100 Microsoft Corp.* 12,638
85 Parametric Technology Corp.* 3,618
100 Peoplesoft, Inc.* 5,275
---------
28,453
---------
Electronics - Miscellaneous Components -1.2%
100 Solectron Corp. 7,000
---------
Electronics - Semiconductor Equipment - 0.9%
75 Applied Materials, Inc.* 5,311
---------
Electronics - Semiconductor Manufacturing - 7.9%
180 Altera Corp.* 9,090
65 Intel Corp. 9,218
85 Linear Technology Corp. 4,399
80 Maxim Integrated Products* 4,550
65 Motorola, Inc. 4,940
150 National Semiconductor* 4,594
100 Sanmina Corp.* 6,350
100 Xilinx, Inc.* 4,906
---------
48,047
---------
Finance - Mortgage & Related Services - 3.0%
100 Federal Home Loan Mortgage Corp. 3,438
150 Federal National Mortgage Association 6,544
100 Green Tree Financial Corp. 3,563
165 Money Store, Inc. 4,733
---------
18,278
---------
Insurance - Life - 0.6%
100 Conseco, Inc. 3,700
---------
5
<PAGE>
Insurance - Multi Line - 0.8%
100 MGIC Investment Corp. $ 4,794
---------
Leisure - Hotels & Motels - 1.4%
70 HFS, Inc.* 4,060
75 Marriott International, Inc. 4,603
---------
8,663
---------
Leisure - Services - 0.7%
50 Disney (Walt) Co. 4,013
---------
Leisure - Toys/Games/Hobby - 0.9%
188 Hasbro, Inc. 5,320
---------
Machinery - Farm - 1.2%
200 AGCO Corp. 7,188
---------
Medical - Biomedical/Genetics - 0.6%
125 Centocor, Inc.* 3,883
---------
Medical - Dental - Supplies - 0.8%
160 Omnicare, Inc. 5,020
---------
Medical - Drug/Diversified - 1.6%
80 Warner-Lambert Co. 9,940
---------
Medical - Ethical Drugs - 3.0%
85 Eli Lilly & Co. 9,292
75 Pfizer, Inc. 8,963
---------
18,255
---------
Medical - Health Maintenance Organizations - 1.0%
85 Oxford Health Plans Corp.* 6,099
---------
Medical - Hospitals - 1.3%
120 Columbia HCA Healthcare 4,718
100 Tenet Healthcare Corp.* 2,956
---------
7,674
---------
Medical - Wholesale Drug/Sundries - 0.6%
60 Cardinal Health, Inc. 3,435
---------
Oil & Gas - Drilling - 2.2%
85 Diamond Offshore Drilling, Inc.* 6,641
90 Transocean Offshore, Inc. 6,536
---------
13,177
---------
Oil & Gas - Field Services - 0.9%
100 BJ Services Co.* 5,363
---------
Oil & Gas - Machinery/Equipment - 0.8%
125 Baker Hughes, Inc. 4,836
---------
Pollution Control - Equipment - 0.5%
120 U.S. Filter Corp.* 3,270
---------
Pollution Control - Services - 1.0%
150 USA Waste Services, Inc.* 5,794
---------
Retail - Apparel/Shoe - 0.5%
50 Gucci Group N. V. 3,219
---------
Retail - Department Stores - 0.6%
110 Federated Department Stores, Inc.* 3,823
---------
Retail - Drug Stores - 0.7%
85 CVS Corp. 4,356
---------
Retail - Major Discount Chains - 0.6%
100 Wal-Mart Stores, Inc. 3,381
---------
Retail - Restaurants - 0.7%
130 Boston Chicken, Inc.* 1,820
100 Lone Star Steakhouse* 2,600
---------
4,420
---------
6
<PAGE>
Retail - Supermarkets - 1.4%
100 American Stores Co. $ 4,938
75 Safeway, Inc.* 3,459
---------
8,397
---------
Retail/Wholesale - Building Products - 1.4%
70 Home Depot, Inc. 4,826
100 Lowes Companies, Inc. 3,712
---------
8,538
---------
Telecommunications - Equipment - 2.1%
100 Nokia Corp. ADR 7,375
100 Tellabs, Inc.* 5,588
---------
12,963
---------
Telecommunications - Services - 1.5%
475 Paging Network, Inc.* 4,171
160 Worldcom, Inc.* 5,120
---------
9,291
---------
Tobacco - 0.7%
100 Philip Morris Companies 4,438
---------
Transportation - Airline - 0.8%
50 AMR Corp.* 4,625
---------
TOTAL COMMON STOCK (Cost $273,475) 343,660
---------
U.S. GOVERNMENT OBLIGATIONS - 39.4%
$ 40,000 U.S. Treasury Bills due 07/03/97 39,986
160,000 U.S. Treasury Bills due 07/24/97 159,529
40,000 U.S. Treasury Bills due 08/14/97 39,747
---------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Amortized Cost $239,262) 239,262
---------
TOTAL INVESTMENTS (Cost $512,737 +) - 95.9% 582,922
OTHER ASSETS, LESS LIABILITIES - 4.1% 25,087
---------
NET ASSETS - 100% $ 608,009
=========
</TABLE>
* Non-income producing security
+ Also represents cost for tax purposes
ADR American Depository Receipt
See notes to financial statements.
7
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
PORTFOLIO MANAGERS' LETTER
Dear Shareholder:
The first half of 1997 has been very rewarding for stocks investors. All the
major averages such as the S&P 500 and the Dow Jones Industrial Average have
soared to record highs, led by the largest stocks in the market, which has made
keeping pace with the indices very difficult. That said, the Fund has had a
reasonable year so far in terms of absolute performance. Through June the Fund
returned 10.59%, compared to 20.60% for the S&P 500 index. However, when you
consider the Fund was less exposed to the largest stocks in the index for
valuation reasons, the performance looks better.
Looking forward, the Berger Growth and Income Fund is well diversified in
premiere companies with above-market rates of growth and steady dividend
streams. Our areas of interest are the consumer, healthcare and technology
sectors. We will stick with our discipline of buying companies with strong
long-term earnings growth rates, yet still selling at reasonable prices. Stocks
such as Coke, Procter & Gamble, Gillette, Merck, Pfizer, Disney, etc. are great
companies but, are trading at huge premiums to their growth rates because the
market seemingly is willing to pay any price for a quality, stable, growth
company. History has proven that over time economics prevail and investors will
find that overpaying for any one of these businesses will be a losing strategy.
In order to avoid excess risk in the Fund, we refuse to overpay for any company,
leaving us underexposed to many household names such as those listed above.
Therefore if money continues to flow into these "defensive" stocks the Fund may
continue to be somewhat vulnerable in the short run, although such a market
action should create great opportunities in other growth stocks for the long
run.
As far as technology stocks are concerned, the Fund is currently overweighted
slightly versus the S&P 500 index. We believe technology is driving the U.S. and
the world economies, and our Fund, like any growth- oriented fund, needs to
constantly monitor the technology sector for compelling buying opportunities. If
there were one area in which we would like to be more concentrated, it is
technology. We will continue to keep a sharp eye out for any buying
opportunities in this sector.
The charter of this Fund is to invest in high quality growth companies that also
offer modest current income. The Fund also will look to increase the overall
yield by purchasing convertible bonds when appropriate. The Fund focuses only on
the growth areas of the stock market such as technology, healthcare,
telecommunications finance and retail, ignoring sectors such as commodities,
utilities and heavy cyclicals. We will continue to seek out reasonably priced
leading growth companies and avoid expensive, slower growth index companies.
While the short-term performance has not been as good as we would have hoped
for, we remain very confident that in the long-term investors will be rewarded.
Thank you for the investment in the Berger IPT Growth & Income Fund and for your
continued confidence.
Mark McKinney
Patrick Adams
Co-Portfolio Managers
Berger IPT -- Growth and Income Fund
8
<PAGE>
(DESCRIPTION OF BERGER IPT-GROWTH AND INCOME FUND PERFORMANCE
CHART) - The following table reflects data presented in a line chart at this
point in the Semi-Annual Report to Shareholders. The chart compares the value of
shares invested in the Berger IPT-Growth and Income Fund to the S&P 500 Index
and to the Cost of Living Index. The chart is based on an initial investment of
$10,000 on May 1, 1996, with all dividends and capital gains reinvested.
<TABLE>
<CAPTION>
Date Berger IPT-G&I Fund S&P 500 Index Cost of Living Index
<S> <C> <C> <C>
5/1/96 $ 10,000 $ 10,000 $ 10,000
6/30/96 $ 10,020 $ 10,303 $ 10,026
9/30/96 $ 10,400 $ 10,619 $ 10,096
12/31/96 $ 11,140 $ 11,503 $ 10,147
3/31/97 $ 11,190 $ 11,813 $ 10,237
6/30/97 $ 12,320 $ 13,871 $ 10,243
</TABLE>
Past performance is not predictive of future performance.
TOP TEN HOLDINGS AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
% of Net Assets % of Net Assets
6/30/97 12/31/96
<S> <C> <C>
1. McKesson Corp. 2.5% 1.6%
2. Sunbeam Corp. 2.5% 1.9%
3. Innkeepers USA Trust 2.2% 2.0%
4. Rite Aid Corp. 2.1% 0.0%
5. Motorola, Inc. 2.0% 0.0%
6. Starwood Lodging Trust 2.0% 2.8%
7. State Street Corp. 1.9% 1.4%
8. Patriot American Hospitality, Inc. 1.8% 2.2%
9. Diebold, Inc. 1.8% 2.3%
10. Adaptec, Inc. 1.8% 2.3%
</TABLE>
9
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
Shares, Units or
Principal Amount Market Value
COMMON STOCK -65.4%
Aerospace/Defense Equipment - 1.3%
170 B.F. Goodrich Company $ 7,363
---------
Banks - Money Center - 2.8%
65 Chase Manhattan Corp. 6,309
80 Citicorp 9,645
---------
15,954
---------
Banks - Northeast - 1.9%
240 State Street Corp. 11,100
---------
Commercial Services - Security/Safety - 1.8%
272 Diebold, Inc. 10,608
---------
Computer - Graphics - 1.3%
225 Cadence Design Systems* 7,538
---------
Computer - Local Networks - 1.4%
120 Cisco Systems, Inc.* 8,055
---------
Computer - Memory Devices - 0.7%
135 Microchip Technology* 4,016
---------
Computer - Peripheral Equipment - 1.8%
305 Adaptec, Inc.* 10,599
---------
Diversified Operations - 3.2%
100 Allied Signal, Inc. 8,400
230 American Standard Companies* 10,293
---------
18,693
---------
Electronics - Semiconductor Equipment -1.6 %
250 Lam Research Corp.* 9,266
---------
Electronics - Semiconductor Manufacturing - 4.7%
330 Atmel Corp.* 9,240
45 Intel Corp. 6,382
155 Motorola, Inc. 11,780
---------
27,402
---------
Finance - Equity Real Estate Investment Trust - 6.8%
150 Crescent Real Estate Equities Trust 4,763
850 Innkeepers USA Trust 12,750
420 Patriot American Hospitality, Inc. 10,710
265 Starwood Lodging Trust 11,312
---------
39,535
---------
Funeral Services & Related - 1.8%
300 Loewen Group, Inc. 10,425
---------
Household - Housewares - 2.5%
380 Sunbeam Corp. 14,345
---------
Insurance - Property/Casualty/Title - 1.8%
145 Mercury General Corp. 10,549
---------
Leisure - Movies & Related - 1.0%
450 Metromedia International Group* 5,709
---------
Medical - Ethical Drugs - 1.5%
80 Eli Lilly & Co. 8,745
---------
10
<PAGE>
Medical - Hospitals - 4.3%
225 Columbia HCA Healthcare $ 8,845
310 Tenet Healthcare Corp.* 9,164
160 Vencor, Inc.* 6,760
---------
24,769
---------
Medical - Wholesale Drug/Sundries - 2.8%
56 Bergen Brunswig Corp. - Class A 1,561
190 McKesson Corp. 14,725
---------
16,286
---------
Oil & Gas - Drilling - 1.4%
105 Diamond Offshore Drilling, Inc.* 8,203
---------
Oil & Gas - Field Services - 2.8%
345 McDermott International, Inc. 10,070
50 Schlumberger Ltd. 6,250
---------
16,320
---------
Paper & Paper Products - 1.3%
155 Kimberly-Clark Corp. 7,711
---------
Retail - Drug Stores - 2.1%
245 Rite Aid Corp. 12,219
---------
Retail - Major Discount Chains - 1.4%
150 Dayton Hudson Corp. 7,978
---------
Retail - Supermarkets - 2.1%
150 American Stores Co. 7,406
100 Safeway, Inc.* 4,613
---------
12,019
---------
Retail/Wholesale - Computer - 1.5%
160 Tandy Corp. 8,960
---------
Telecommunications - Equipment - 3.3%
340 ECI Telecom, Ltd. 10,115
100 Northern Telecom, Ltd. 9,100
---------
19,215
---------
Tobacco - 1.5%
195 Philip Morris Companies 8,652
---------
Utility - Telephone - 3.0%
150 Bellsouth Corp. 6,956
330 Cincinnati Bell, Inc. 10,395
---------
17,351
---------
TOTAL COMMON STOCK (Cost $320,044) 379,585
---------
U.S. GOVERNMENT OBLIGATIONS - 29.1%
$ 50,000 U.S. Treasury Bills due 07/03/97 49,983
50,000 U.S. Treasury Bills due 08/07/97 49,787
70,000 U.S. Treasury Bills due 08/14/97 69,557
---------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Amortized Cost $169,327) 169,327
---------
11
<PAGE>
CONVERTIBLE BONDS - 3.7%
Commercial Services - Miscellaneous - 1.5%
4,000 Career Horizons, Inc. 7.000% due 11/01/02 $ 8,625
---------
Pollution Control - Equipment - 1.1%
4,000 U.S. Filter Corp. 6.000% due 9/01/05 6,225
---------
Pollution Control - Services - 1.2%
5,000 United Waste Systems 4.500% due 6/01/01** 6,869
---------
TOTAL CONVERTIBLE BONDS (Cost $21,185) 21,719
---------
PREFERRED STOCK -1.7%
Transportation - Airline - 1.7%
115 U.S. Airways Group, Inc. 10,091
---------
TOTAL PREFERRED STOCK (Cost $10,084) 10,091
---------
TOTAL INVESTMENTS (Cost $520,640 +) -99.9% 580,722
OTHER ASSETS, LESS LIABILITIES - 0.1% 751
---------
NET ASSETS - 100% $ 581,473
=========
* Non-income producing security
** Pursuant to Rule 144A, resale is restricted to qualified institutional
buyers.
+ Also represents cost for tax purposes
See notes to financial statements.
12
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
The IPT -- Small Company Growth Fund has returned 4.32% to shareholders during
the first six months of 1997. This trails the Russell 2000 Index, which has
returned 10.20% year-to-date through 6/30/97. Compared to the growth component
of the Russell 2000 (a more narrow benchmark) which was up 5.14%, the Fund's
performance is more in line with the index.
1997 has been a tale of two markets. During the first three-and-a-half months of
the year, the market's performance was dominated by large capitalization, blue
chip "index" stocks. During this time the Dow Jones Industrial Average and S&P
500 were hitting new highs, while smaller caps stocks - the type of stock in
which this Fund invests - actually were declining. Indeed, it can be argued that
from about mid October, 1996, to late April, 1997, that small cap stocks were in
a "stealth" bear market.
This tremendous divergence of performance between large and small cap stocks was
so extreme by April, 1997, that a snap back became almost inevitable. The rally
in the small cap sector was quite dramatic and the IPT-SCG participated. The
month of May was particularly strong when the Fund rose 15.1%.
Most stocks were strong contributors to the Fund's performance, but some
standouts were Coventry Corp. and American Oncology Resources in the healthcare
sector; Allied Waste Industries and Newpark Resources among industrial
companies; Technology Solutions, Wind River Systems and Avid Technology were
strong in the technology sector; and Michael's Stores and On Sale, Inc. were
among the leaders on the consumer growth side.
While there were relatively few fundamental disappointments, among the
non-contributors to performance were Vertex Pharmaceuticals, Safeguard
Scientifics, Macromedia and Gartners Group.
The market continues to rocket to new highs, but generally has been broader than
early in the year. While absolute levels of valuation are high, we believe there
is further upside to the market. We also believe there is more appreciation
potential in both small and mid cap stocks than in the large, blue chip stocks,
which are expensive and over-owned, based on historical measures. The major
focus of investors is the action of the Federal Reserve Board. Fed Chairman
Greenspan's testimony to Congress in July was heartening to the markets and gave
investors comfort with respect to the Fed's intentions to raise interest rates.
The reduced likelihood of Fed rate hikes gives investors reason to bid-up share
prices, but following the recent market advance; a period of digestion is
likely. We remain watchful but cautiously optimistic regarding small cap growth
stocks. The fundamental underpinning for strong performance at the companies
your Fund owns remains strong. A continuation of recent market trends would be
positive for smaller caps; a shift away from index stocks could be very positive
for small caps.
Thank you for your confidence and your investment in the Fund.
Bill Keithler
Portfolio Manager
Berger IPT - Small Company Growth Fund
13
<PAGE>
(DESCRIPTION OF BERGER IPT-SMALL COMPANY GROWTH FUND PERFORMANCE CHART) - The
following table reflects data presented in a line chart at this point in the
Semi-Annual Report to Shareholders. The chart compares the value of shares
invested in the Berger IPT-Small Company Growth Fund to the Russell 2000 Index
and to the Cost of Living Index. The chart is based on an initial investment of
$10,000 on May 1, 1996, with all dividends and capital gains reinvested.
<TABLE>
<CAPTION>
Date Berger IPT-SCG Fund Russell 2000 Index Cost of Living Index
<S> <C> <C> <C>
5/1/96 $ 10,000 $ 10,000 $ 10,000
6/30/96 $ 10,530 $ 9,967 $ 10,026
9/30/96 $ 10,720 $ 10,001 $ 10,096
12/31/96 $ 9,950 $ 10,521 $ 10,147
3/31/97 $ 8,920 $ 9,977 $ 10,237
6/30/97 $ 10,380 $ 11,595 $ 10,243
</TABLE>
Past performance is not predictive of future performance.
TOP TEN HOLDINGS AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
% of Net Assets % of Net Assets
6/30/97 12/31/96
<S> <C> <C>
1. Technology Solutions Co. 1.5% 1.4%
2. Rexall Sundown, Inc. 1.4% 0.4%
3. Evergreen Media Corp. Class A 1.4% 0.5%
4. NCS Healthcare, Inc. 1.3% 0.8%
5. Stewart Enterprises, Inc. Class A 1.3% 0.7%
6. Newpark Resources, Inc. 1.2% 0.0%
7. Clear Channel Communications, Inc. 1.2% 0.5%
8. Parexel International Corp. 1.2% 1.1%
9. Healthcare Recoveries, Inc. 1.2% 0.0%
10. ACC Corp. 1.2% 0.0%
</TABLE>
14
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
Shares, Units or
Principal Amount Market Value
COMMON STOCK -92.3%
Building - Residential/Commercial - 1.0%
100 Hadco Corp.* $ 6,550
---------
Commercial Services - Miscellaneous - 2.7%
400 American Oncology Resources* 6,750
300 CMG Information Services* 3,938
300 FPA Medical Management, Inc.* 7,106
---------
17,794
---------
Commercial Services - Security/Safety - 0.7%
500 Ultrak, Inc.* 4,438
---------
Computer - Integrated Systems - 2.4%
230 HCIA, Inc.* 7,705
200 Wind River Systems, Inc.* 7,650
---------
15,355
---------
Computer - Local Networks - 0.8%
130 Ascend Communications* 5,119
---------
Computer - Memory Devices - 0.9%
200 Microchip Technology* 5,950
---------
Computer - Services - 10.7%
225 American Management Systems, Inc.* 6,019
150 Ciber, Inc.* 5,128
200 Gartner Group, Inc.* 7,188
101 HBO & Co. 6,938
319 Lycos, Inc.* 4,064
125 National Data Corp. 5,414
305 National Tech Team, Inc.* 6,519
120 Quick Response Services, Inc.* 4,350
250 Technology Solutions Co.* 9,875
250 Whittman-Hart, Inc.* 7,031
200 Yahoo, Inc.* 7,050
---------
69,576
---------
Computer - Software - 7.5%
100 Baan N.V.* 6,888
220 Cambridge Technology* 7,040
100 CBT Group PLC ADR* 6,313
200 Cognos, Inc.* 6,225
600 Macromedia, Inc.* 5,175
150 Remedy Corp.* 6,000
225 Scopus Technology, Inc.* 5,034
130 Viasoft, Inc.* 6,598
---------
49,273
---------
Cosmetics/Personal Care - 1.4%
230 Rexall Sundown, Inc.* 8,970
---------
Diversified Operations - 0.8%
40 Pittway Corp. 1,990
70 Pittway Corp. - Class A 3,483
---------
5,473
---------
15
<PAGE>
Electronics - Misc. Components - 1.0%
250 Chicago Miniature Lamp, Inc.* $ 6,219
---------
Electronics - Parts Distributors - 1.0%
170 Kent Electronics Corp.* 6,237
---------
Electronics - Semiconductor Equipment - 2.5%
130 Etec Systems, Inc.* 5,574
160 Kulicke & Soffa Industries, Inc.* 5,195
100 Lattice Semiconductor* 5,650
---------
16,419
---------
Electronics - Semiconductor Manufacturing - 3.1%
400 Cypress Semiconductor* 5,800
100 Dallas Semiconductor Corp.* 3,925
100 Maxim Integrated Products* 5,688
400 Tower Semiconductor, Ltd.* 4,800
---------
20,213
---------
Finance - Consumer Loans - 1.1%
380 Delta Financial Corp.* 7,268
---------
Finance - Small Business Investment Company & Commercial - 1.9%
200 Safeguard Scientifics* 6,363
170 Sirrom Capital Corp. 5,865
---------
12,228
---------
Financial Services - Miscellaneous - 1.0%
650 Medaphis Corp.* 6,541
---------
Funeral Services & Related - 1.3%
200 Stewart Enterprises, Inc. - Class A 8,400
---------
Household/Office Furniture - 1.1%
300 Knoll, Inc.* 7,125
---------
Insurance - Accident & Health - 1.2%
400 Healthcare Recoveries, Inc.* 7,750
---------
Insurance - Brokers - 1.0%
300 Prepaid Legal Services* 6,338
---------
Leisure - Movies & Related - 2.7%
200 Avid Technology, Inc.* 5,275
475 Metromedia International Group* 6,026
200 Regal Cinemas, Inc.* 6,600
---------
17,901
---------
Leisure - Products - 0.8%
300 North Face, Inc.* 5,475
---------
Machinery - General/Industrial - 0.5%
150 Hirsch International Corp. - Class A* 3,338
---------
Media - Radio/TV - 4.2%
100 Chancellor Corp. - Class A* 4,000
130 Clear Channel Communications, Inc.* 7,995
150 Emmis Broadcasting Corp. - Class A* 6,544
200 Evergreen Media Corp. - Class A* 8,925
---------
27,464
---------
Medical - Biomedical/Genetics - 2.3%
240 BioChem Pharmaceuticals, Inc.* 5,340
70 Incyte Pharmaceuticals, Inc.* 4,690
125 Vertex Pharmaceuticals* 4,781
---------
14,811
---------
Medical - Dental - Supplies - 1.0%
200 Omnicare, Inc. 6,275
---------
16
<PAGE>
Medical - Ethical Drugs - 2.2%
150 Medicis Pharmaceutical Corp.* $ 7,481
300 Theragenics Corp.* 6,900
---------
14,381
---------
Medical - Health Maintenance Organizations - 0.9%
400 Coventry Corp.* 6,050
---------
Medical - Outpatient/Home Care - 6.0%
250 American HomePatient, Inc.* 6,250
300 Healthsouth Corp.* 7,481
200 PhyCor, Inc.* 6,888
130 Renal Care Group, Inc.* 5,419
350 RoTech Medical Corp.* 7,022
160 Total Renal Care Holdings* 6,430
---------
39,490
---------
Medical - Products - 1.2%
250 Parexel International Corp.* 7,938
---------
Medical - Wholesale Drug/Sundries - 1.3%
280 NCS HealthCare, Inc.* 8,505
---------
Oil & Gas - Drilling - 0.8%
250 Marine Drilling Companies, Inc.* 4,906
---------
Oil & Gas - Field Services - 1.0%
120 BJ Services Co.* 6,435
---------
Oil & Gas - U.S. Exploration & Production - 1.8%
200 Barrett Resources Corp.* 5,987
165 St. Mary Land & Exploration* 5,796
---------
11,783
---------
Pollution Control - Services - 3.4%
400 Allied Waste Industries, Inc.* 6,950
240 Newpark Resources, Inc.* 8,100
300 Tetra Tech, Inc.* 7,238
---------
22,288
---------
Real Estate Operations - 1.0%
200 Fairfield Communities* 6,725
---------
Retail - Apparel/Shoe - 3.0%
200 Men's Wearhouse, Inc.* 6,300
215 Ross Stores, Inc. 7,028
200 Wet Seal, Inc. - Class A* 6,312
---------
19,640
---------
Retail - Mail Order & Direct - 1.6%
150 Black Box Corp.* 6,038
500 Onsale, Inc.* 4,625
---------
10,663
---------
Retail - Miscellaneous/Diversified - 2.8%
365 Guitar Center, Inc.* 6,159
300 Michaels Stores, Inc.* 6,356
200 Petco Animal Supplies* 6,000
---------
18,515
---------
Retail/Wholesale - Building Products - 0.9%
250 Eagle Hardware & Garden* 5,719
---------
17
<PAGE>
Telecommunications - Equipment - 3.8%
200 Brightpoint, Inc.* $ 6,513
125 Cascade Communications Corp.* 3,453
130 Comverse Technology, Inc.* 6,760
180 P-Com, Inc.* 5,940
150 PairGain Technologies* 2,325
---------
24,991
---------
Telecommunications - Services - 2.2%
250 ACC Corp.* 7,719
350 ICG Communications, Inc.* 6,737
---------
14,456
---------
Tobacco - 0.9%
200 Consolidated Cigar Holdings, Inc.* 5,562
---------
Trucks & Parts - Heavy Duty - 0.9%
235 Stewart & Stevenson Services 6,110
---------
TOTAL COMMON STOCK (Cost $528,760) 602,657
---------
U.S. GOVERNMENT OBLIGATIONS - 6.9%
$ 45,000 U.S. Treasury Bills due 08/21/97
(Amortized cost $44,680) 44,680
---------
TOTAL INVESTMENTS (Cost $573,440 +)-99.2% 647,337
OTHER ASSETS, LESS LIABILITIES - 0.8% 5,412
---------
NET ASSETS - 100% $ 652,749
=========
* Non-income producing security
+ Also represents cost for tax purposes
See notes to financial statements.
18
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
Bank of Ireland Asset Management (U.S.) Limited (BIAM) serves as the sub-advisor
to the Berger/BIAM IPT - International Fund. As the Fund began operations on May
1, 1997, we would like to discuss what occurred during the second quarter within
our identified global economic and business themes. We hope you will use this
opportunity to familiarize yourself with the themes and companies positioned in
your Fund. In addition, included is our review of the worldwide markets and our
outlook for the remainder of the year.
The thematic highlight of the second quarter was Positive Banking Environment,
which continued to prosper from the global low-growth, low-inflationary
environment. National Australia Bank was boosted by a further reduction in
domestic interest rates, as well as a liberalization of Australian banking laws,
fueling rumors of merger and acquisition activity in the banking and insurance
sectors. In Europe, ABN-Amro Holdings, Lloyds TSB and Banco de Santander all
reported solid first quarter results, as did HSBC Holdings in Hong Kong.
Within Healthcare Needs, the star performer was Novartis which recorded robust
gains over the period. The company's share price was bolstered considerably by
reaction to its projected double-digit pharmaceutical sales growth from a strong
product pipeline. Similarly, Glaxo-Wellcome and Zeneca are benefiting from
optimism on their strong product development plans.
In Growth in Telecommunications, STET, the Italian phone company, performed well
in advance of its anticipated full privatization later this year. Ahead of the
privatization, STET's number one priority has been to strengthen its
international focus through strategic alliances with AT&T, among others. Cable &
Wireless performed well over the quarter on the back of an agreement to give up
majority control of Hong Kong Telecom in return for the opportunity to expand
into China, potentially the world's largest telecom market.
The negative impact on the portfolio came from the themes directed at the Far
East, such as Increased Consumer Spending in the Pacific Basin, Infrastructural
Development and Expanding Financial Services in Developing Markets. These
disappointments have taken place for a variety of reasons ranging from poor
company results - as was the case with HM Sampoerna which announced poor sales
forecasts - to the knock-on effect of financial crises, which caused poor
performance by Bangkok Bank.
ECONOMIC AND MARKET REVIEW
Markets worldwide, with the exception of Singapore, Malaysia and Thailand,
surged forward during the second quarter. The ongoing U.S. bull market continues
to boost international markets, and with American inflation apparently under
control and no sign of imminent interest-rate increases, European bourses have
been hitting all-time highs over the last three months.
19
<PAGE>
Continental European markets recorded these strong returns against a background
of instability. Indeed there were a number of potential negative influences
which occurred during the quarter, including the German gold revaluation furor,
the election of a left-wing government in France and an inconclusive European
heads-of-government summit on monetary union. However, none of these events
materially detracted from market performance.
The less hostile approach to Europe by the new Labour government in Britain, and
its almost immediate granting of independence on interest-rate policy to the
Bank of England led to a significant rally in the U.K. market. The economy
continues to grow at an above-trend pace with domestic demand leading the way.
The export sector is cooling down due to the strength of the British currency,
which in turn is causing a reduction in inflation.
In Germany, the economic picture remains the same. The weak Deutchemark has
triggered an upturn in the export sector. Foreign orders have increased at a
steady pace and exports are expected to grow by 6.5% in 1997. But, this buoyancy
on the external side has yet to feed through to the domestic side which has seen
very slow growth. For example, in the construction sector building permits and
orders are in steady decline.
In the Far Eastern markets, Malaysia and Thailand fared poorly. In Malaysia,
concern about strong consumer spending, rising imports of consumer goods, high
labor costs and overbuilding in the property market, all contributed to depress
stock-market sentiment. Negative news again dominated the Thai market as worries
over the ongoing problems of finance companies and the level of property prices
persisted.
It has become a seasonal pattern in Japan for the equity market to rise in April
and May, the first two months of the country's fiscal year. This is partly due
to the fact that Japan's huge public pension funds and insurance companies get
annual inflows of liquidity at this time of year and a portion of this is
invested in the market. The Tankan report, which indicates the overall level of
confidence in the Japanese economy, came in stronger than anticipated during the
quarter. Despite continued speculation that interest rates are set to rise in
Japan and conflicting data on the domestic economy's future growth prospects,
the market rose as a consequence of increased foreign investment. The Yen also
strengthened against the Dollar, which boosted Japanese returns when quoted in
U.S. - Dollar terms.
OUTLOOK
Our outlook for the rest of the year remains unchanged. The low-growth,
low-inflationary environment that exists globally will continue to provide a
favorable backdrop for equity investments. Nevertheless, the relentless upward
movement of most markets has driven up valuations relative to earnings growth,
and this fact is to the forefront of our thinking, while we continue to look for
undervalued opportunities.
20
<PAGE>
The July budget in the U.K. will be a key determining factor on how that market
fares for the remainder of the year. To date, analysts have been pleasantly
surprised by the policies of the Labour government but all that could quickly
change. The ongoing uncertainty regarding European Monetary Union will affect
the performance of European markets. Bond yields are likely to move based on the
prevailing consensus as to which countries are likely to be founding members of
the new single currency.
We will continue to have a very selective approach to investments in the Far
East. These markets still show few signs of emerging from the grip of the
bearish trend they have experienced for the past three years. The recent
political and economic turmoil in Thailand is likely to further delay the
renewal of investor interest in the region.
We remain convinced that, on a fundamental basis, the Japanese market is
overvalued, though we continue to monitor companies there in search of
worthwhile investment opportunities.
We do not believe any significant change has taken place in the underlying
fundamentals of the portfolio and accordingly our strategy remains unaltered.
Bank of Ireland U.S. Management (U.S.) Limited
Portfolio Managers
Berger/BIAM IPT-International Fund
21
<PAGE>
(DESCRIPTION OF BERGER/BIAM IPT-INTERNATIONAL FUND PERFORMANCE CHART) - The
following table reflects data presented in a line chart at this point in the
Semi-Annual Report to Shareholders. The chart compares the value of shares
invested in the Berger/BIAM IPT-International Fund to the EAFE Index and to the
Cost of Living Index. The chart is based on an initial investment of $10,000 on
May 1, 1997, with all dividends and capital gains reinvested.
<TABLE>
<CAPTION>
Berger/BIAM IPT-
Date International Fund EAFE Index Cost of Living Index
<S> <C> <C> <C>
5/1/97 $ 10,000 $ 10,000 $ 10,000
5/30/97 $ 9,940 $ 10,653 $ 9,994
6/30/97 $ 10,170 $ 11,243 $ 10,006
</TABLE>
Past performance is not predictive of future performance.
TOP TEN HOLDINGS AS OF JUNE 30, 1997
% of Net Assets
6/30/97
1. Novartis 5.0%
2. National Australia Bank 3.0%
3. BAT Industries 3.0%
4. Canon, Inc. 3.0%
5. ING Groep 3.0%
6. Schw Ruckverischer 2.0%
7. Barclays Bank 2.0%
8. Lloyds TSB Group 2.0%
9. ABN-Amro Holdings 2.0%
10. Mannesman 2.0%
22
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1997
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
COMMON STOCK -94.2%
<S> <C> <C>
Australia - 7.4%
2,300 Broken Hill Proprietary Resources $ 33,821
4,650 National Australia Bank Financials 66,577
7,750 News Corporation Media 31,173
3,300 Western Mining Resources 20,797
----------
152,368
----------
Finland - 0.6%
550 Upm Kymmene Paper, Packaging & Printing 12,719
----------
France - 1.5%
350 Michelin Auto Goods 21,021
100 Total Co. Francaise Petrole 'B' Utilities 10,109
----------
31,130
----------
Germany - 6.1%
700 Hoechst Healthcare 29,709
94 Mannesmann Electrical/Engineering 41,901
310 Siemens Electrical/Engineering 18,416
610 Veba Utilities 34,295
----------
124,321
----------
Great Britain - 33.2%
6,500 B.A.T. Industries Tobacco/Financial Services 58,119
2,500 Barclays Bank Financials 49,572
7,700 BTR Conglomerates 26,322
2,500 Cable & Wireless Telecommunications 22,873
3,300 Cadbury Schweppes Food Manufacturing 29,424
1,500 EMI Group Leisure & Entertainment 26,949
5,400 General Electric Co. Electrical/Engineering 32,249
1,900 Glaxo Wellcome Healthcare 39,271
2,600 Granada Group Leisure & Entertainment 34,168
3,600 Grand Metropolitan Retailer/Consumer Goods 34,614
1,020 Kingfisher Retailer/Consumer Goods 11,572
4,000 Ladbroke Group Leisure & Entertainment 15,703
4,800 Lloyds TSB Group Financials 49,266
1,100 Premier Farnell Distributor of Components 8,545
3,600 Prudential Corporation Insurance 35,148
4,000 Safeway Retailer/Consumer Goods 23,123
3,500 Scottish Power Utilities 22,707
6,000 Shell Transport & Trading Company Utilities 40,922
2,000 Siebe Electrical/Engineering 33,869
3,000 TI Group Electrical/Engineering 26,125
4,500 Vodafone Group Telecommunications 21,933
1,200 Zeneca Group Healthcare 39,645
----------
682,119
----------
23
<PAGE>
Hong Kong - 1.8%
1,200 HSBC Holdings Financials $ 36,091
----------
Indonesia - 2.8%
5,000 Gudang Garam Tobacco 20,970
6,000 HM Sampoerna Tobacco 22,882
8,000 Telekomunikasi Telecommunications 13,076
----------
56,928
----------
Ireland - 0.7%
1,800 Allied Irish Banks Financials 13,817
----------
Italy - 1.3%
4,650 STET Telecommunications 27,127
----------
Japan - 2.7%
2,000 Canon, Inc. Retailer/Consumer Goods 54,498
----------
Malaysia - 3.4%
5,000 DCB Holdings Financials 15,848
2,000 Hume Industries Malaysia Infrastructure/Property 9,192
7,000 Sime - Darby Conglomerates 23,296
3,000 United Engineers Infrastructure/Property 21,632
----------
69,968
----------
Mexico - 0.6%
4,650 Grupo Financiero Banamex Financials 12,201
----------
Netherlands - 10.4%
2,400 ABN-Amro Holdings Financials 44,773
130 DSM Chemicals 12,941
1,800 Elsevier Media 30,093
1,175 ING Groep Financials 54,201
700 KON PPT Nederland Telecommunications 27,474
150 Nutricia Ver Bedrijven Food Manufacturing 23,702
420 Royal Dutch Petroleum Utilities 21,857
----------
215,041
----------
Philippines - 0.5%
4,000 San Miguel 'B' Food & Drinks 10,544
----------
Singapore - 6.8%
4,000 City Developments Infrastructure/Property 39,169
3,000 Development Bank of Singapore Financials 37,770
3,000 Fraser and Neave Food & Drinks 21,403
2,000 Singapore Press Holdings Media 40,288
----------
138,630
----------
Spain -1.0%
660 Banco De Santander Financials 20,344
----------
Switzerland - 12.7%
40 Alusuisse Lonza Holdings Conglomerates 41,439
27 Nestle Food Manufacturing 35,630
61 Novartis Healthcare 97,550
4 Roche Holdings Healthcare 36,190
36 Schw Ruckverischer Insurance 50,935
----------
261,744
----------
24
<PAGE>
Thailand -0.7%
2,000 Bangkok Bank Financials $ 14,326
----------
TOTAL COMMON STOCK (Cost $1,908,797) 1,933,916
----------
REPURCHASE AGREEMENT - 3.3%
Repurchase agreement with State Street Bank, 4.25%, dated June 30, 1997,
to be purchased at $68,008 on July 1, 1997, collateralized by U.S. Treasury
Notes, 8.5% - February 15, 2020, with a value of $73,264 68,000
----------
TOTAL INVESTMENTS (Cost $1,976,797 +)-97.5% 2,001,916
OTHER ASSETS, LESS LIABILITIES - 2.5% 51,060
----------
NET ASSETS - 100% $2,052,976
==========
</TABLE>
+ Also represents cost for tax purposes
See notes to financial statements.
25
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
June 30, 1997
<TABLE>
<CAPTION>
Berger/BIAM
Berger IPT- Berger IPT- IPT-
Berger IPT- Growth and Small Company International
100 Fund Income Fund Growth Fund Fund
ASSETS
<S> <C> <C> <C> <C>
Investments at cost $ 512,737 $ 520,640 $ 573,440 $ 1,976,797
==========================================================================================================================
Investments at value $ 582,922 $ 580,722 $ 647,337 $ 2,001,916
Cash 22,361 10,507 5,979 89,314
Foreign currency at value (cost $0, $0, $0
and $14,143) 0 0 0 14,134
Receivables:
Investment securities sold 3,433 0 0 947
Fund shares sold 94 1,714 420 0
Due from management company 2,075 2,379 2,204 0
Dividends and interest 86 778 18 4,561
- --------------------------------------------------------------------------------------------------------------------------
Total Assets 610,971 596,100 655,958 2,110,872
- --------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 0 11,637 0 54,720
Accrued investment advisory fees (Note 2) 363 331 445 1,551
Other accrued expenses 2,599 2,659 2,764 17
Net unrealized depreciation on open
forward currency contracts 0 0 0 1,608
- --------------------------------------------------------------------------------------------------------------------------
Total Liabilities 2,962 14,627 3,209 57,896
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES
OUTSTANDING $ 608,009 $ 581,473 $ 652,749 $ 2,052,976
==========================================================================================================================
Capital Shares:
Authorized (Par Value $0.01) unlimited unlimited unlimited unlimited
==========================================================================================================================
Shares Outstanding 54,028 47,213 62,860 201,908
==========================================================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $ 11.25 $ 12.32 $ 10.38 $ 10.17
==========================================================================================================================
</TABLE>
See notes to financial statements.
26
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
Berger/BIAM
Berger IPT- Berger IPT- IPT-
Berger IPT- Growth and Small Company International
100 Fund Income Fund Growth Fund Fund*
Investment Income
Income:
<S> <C> <C> <C> <C>
Dividends (net of foreign withholding taxes
of $0, $0, $0 and $1,036, respectively) $ 766 $ 2,630 $ 120 $ 6,263
Interest 1,968 2,364 687 3,947
- ---------------------------------------------------------------------------------------------------------------------
Total Income 2,734 4,994 807 10,210
- ---------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees (Note 2) 1,535 1,628 1,570 2,836
Accounting fees 4,500 4,500 4,500 0
Legal fees 12,960 14,262 10,107 0
Custodian fees 1,192 2,009 2,188 0
Audit Fees 4,375 4,375 4,375 375
Trustees' fees and expenses 207 226 168 0
Transfer agent fees 3,872 3,760 3,754 0
Postage, printing and reports 1,294 1,204 1,308 4
Insurance & bonds 0 0 0 0
Registration fees 0 0 0 100
Administrative services (Note 2) 20 22 16 32
- ---------------------------------------------------------------------------------------------------------------------
Total Expenses 29,955 31,986 27,986 3,347
Less expenses reimbursed by adviser
(Note 2) (27,877) (29,811) (25,977) 0
Less earnings credits (Note 2) (305) (363) (518) 0
- ---------------------------------------------------------------------------------------------------------------------
Expenses - Net 1,773 1,812 1,491 3,347
- ---------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 961 3,182 (684) 6,863
- ---------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS
Net realized gain (loss) on securities and
foreign currency transactions (5,579) 14,530 (20,149) 3,766
Net change in unrealized appreciation
(depreciation) on securities and foreign
currency transactions 42,906 28,060 53,368 23,276
- ---------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions 37,327 42,590 33,219 27,042
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 38,288 $ 45,772 $ 32,535 $ 33,905
=====================================================================================================================
</TABLE>
* Represents the period from May 1, 1997 (commencement of investment
operations) through June 30, 1997.
See notes to financial statements.
27
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT-100 Fund
Six Months Ended For the Period
6/30/97 5/1/96* to
(Unaudited) 12/31/96
FROM OPERATIONS
<S> <C> <C>
Net investment income (loss) $ 961 $ 933
Net realized gain (loss) on securities and foreign currency
transactions (5,579) (15,089)
Net change in unrealized appreciation (depreciation) on securities
and foreign currency transactions 42,906 27,278
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations 38,288 13,122
- --------------------------------------------------------------------------------------------------------------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0 0
Net realized gains on investments 0 0
- --------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders 0 0
- --------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 273,565 333,121
Net asset value of shares issued in reinvestment of dividends 0 0
- --------------------------------------------------------------------------------------------------------------------------
Total 273,565 333,121
Payments for shares redeemed (35,140) (14,947)
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Derived From Fund Share Transactions 238,425 318,174
- --------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 276,713 331,296
Net Assets:
Beginning of period 331,296 0
- --------------------------------------------------------------------------------------------------------------------------
End of period $ 608,009 $ 331,296
==========================================================================================================================
Undistributed net investment income included in the above $ 1,894 $ 933
==========================================================================================================================
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $ 556,598 $ 318,174
Undistributed net investment income (loss) 1,894 933
Accumulated net realized gain (loss) from investments (20,668) (15,089)
Unrealized appreciation (depreciation) on investments 70,185 27,278
- --------------------------------------------------------------------------------------------------------------------------
Total $ 608,009 $ 331,296
==========================================================================================================================
Transactions in Fund Shares:
Shares sold 25,352 33,339
Shares issued to shareholders in reinvestment of dividends 0 0
Total 25,352 33,339
Shares repurchased (3,209) (1,454)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 22,143 31,885
Shares outstanding, beginning of period 31,885 0
- --------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 54,028 31,885
==========================================================================================================================
</TABLE>
* Commencement of investment operations.
See notes to financial statements.
28
<PAGE>
<TABLE>
<CAPTION>
Berger Berger Berger/BIAM IPT-
IPT-Growth and Income Fund IPT-Small Company Growth Fund International Fund
Six Months Ended For the Period Six Months Ended For the Period For the Period
6/30/97 5/1/96* to 6/30/97 5/1/96* to 5/1/97* to 6/30/97
(Unaudited) 12/31/96 (Unaudited) 12/31/96 (Unaudited)
<S> <C> <C> <C> <C>
$ 3,182 $ 3,245 $ (684) $ 256 $ 6,863
14,530 (5,205) (20,149) (24,136) 3,766
28,060 32,022 53,368 20,530 23,276
- --------------------------------------------------------------------------------------------------------------------------
45,772 30,062 32,535 (3,350) 33,905
- --------------------------------------------------------------------------------------------------------------------------
0 0 0 0 0
0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
216,991 314,330 389,234 294,712 2,021,284
0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
216,991 314,330 389,234 294,712 2,021,284
(25,663) (19) (60,382) 0 (2,213)
- --------------------------------------------------------------------------------------------------------------------------
191,328 314,311 328,852 294,712 2,019,071
- --------------------------------------------------------------------------------------------------------------------------
237,100 344,373 361,387 291,362 2,052,976
- --------------------------------------------------------------------------------------------------------------------------
344,373 0 291,362 0 0
- --------------------------------------------------------------------------------------------------------------------------
$ 581,473 $ 344,373 $ 652,749 $ 291,362 $ 2,052,976
==========================================================================================================================
$ 6,427 $ 3,245 $ (428) $ 256 $ 6,863
==========================================================================================================================
$ 505,639 $ 314,311 $ 623,565 $ 294,712 $ 2,019,071
6,427 3,245 (428) 256 6,863
9,325 (5,205) (44,285) (24,136) 3,766
60,082 32,022 73,897 20,530 23,276
- --------------------------------------------------------------------------------------------------------------------------
$ 581,473 $ 344,373 $ 652,749 $ 291,362 $ 2,052,976
==========================================================================================================================
18,491 30,917 39,654 29,268 202,130
0 0 0 0 0
- --------------------------------------------------------------------------------------------------------------------------
18,491 30,917 39,654 29,268 202,130
(2,193) (2) (6,062) 0 (222)
- --------------------------------------------------------------------------------------------------------------------------
16,298 30,915 33,592 29,268 201,908
30,915 0 29,268 0 0
- --------------------------------------------------------------------------------------------------------------------------
47,213 30,915 62,860 29,268 201,908
==========================================================================================================================
</TABLE>
29
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization
Berger Institutional Products Trust (the "Trust"), a Delaware business
trust, was established on October 17, 1995 as a diversified open-end management
investment company. The Trust is authorized to issue an unlimited number of
shares of beneficial interest in series or portfolios. Currently, the series
comprising Berger IPT-100 Fund ("IPT-100"), Berger IPT-Growth and Income Fund
("IPT-G&I"), Berger IPT-Small Company Growth Fund ("IPT-SCG") and Berger/BIAM
IPT-International Fund ("IPT- International"), (individually the "Fund" and
collectively the "Funds") are the only portfolios established under the Trust,
although others may be added in the future. The Funds commenced investment
operations on May 1, 1996, except for the Berger/BIAM IPT-International Fund
which commenced operations on May 1, 1997.
The Trust is registered under the Investment Company Act of 1940 and its
securities are registered under the Securities Act of 1933 (the "Acts"). Shares
of each Fund are fully paid and non-assessable when issued. All shares issued by
a particular Fund participate equally in dividends and other distributions by
that Fund. The Trust's shares are not offered directly to the public, but are
sold exclusively to insurance companies ("Participating Insurance Companies") as
a pooled funding vehicle for variable annuity and variable life insurance
contracts issued by separate accounts of Participating Insurance Companies and
to qualified plans. All costs incurred in organizing the Trust were paid by
Berger Associates, Inc. ("Berger"), the investment advisor to IPT-100, IPT-G&I
and the IPT-SCG.
On April 15, 1996, Berger purchased 25,000 shares of each of the IPT-100,
IPT-G&I and IPT-SCG at a net asset value of $10.00 per share. On May 1, 1997,
Berger purchased a variable annuity contract through which it indirectly owns
200,000 shares of the IPT-International for $2 million. At June 30, 1997, Berger
directly or indirectly owned 46%, 53%, 40% and 99% of the outstanding shares of
IPT-100, IPT-G&I, IPT-SCG and IPT-International, respectively.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Securities are valued at the close of the regular trading session of the
New York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges, the NASDAQ Stock Market and foreign
exchanges are valued at the last sale price on such markets, or, if no last sale
price is available, they are valued using the mean between their current bid and
asked prices. Securities that are traded on the over-the-counter market are
valued at the mean between their current bid and asked prices. Short-term
obligations maturing within sixty days are valued at amortized cost, which
approximates market value. Securities for which quotations are not readily
available are valued at fair values determined in good faith pursuant to
consistently applied procedures established by the trustees.
Foreign securities are converted to U.S. dollars using exchange rates
determined prior to the close of the Exchange. Generally, trading in foreign
securities markets is substantially completed each day at various times prior to
the close of the Exchange. The values of foreign securities used in computing
the net asset value of the shares in the portfolio are determined as of the
earlier of such market close or the closing time of the Exchange. Occasionally,
events affecting the value of such securities may occur between the times at
which they are determined and the close of the Exchange, or when the foreign
market on which such securities trade is closed but the Exchange is open, which
will not be reflected in the computation of net asset value. If during such
periods, events occur which materially affect the value of such securities, the
securities will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the trustees.
30
<PAGE>
Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of their taxable income to shareholders. Therefore, no income tax provision is
required.
Security Gains and Losses
Gains and losses are computed on the identified cost basis for both
financial statement and Federal income tax purposes for all securities. Assets
and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
Investment Transactions and Investment Income
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts.
Common Expenses
Certain expenses which are not directly allocable to a specific Fund are
allocated to the Funds' on the basis of relative net assets.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
2. AGREEMENTS
Berger serves as the investment advisor to the IPT-100, IPT-G&I and IPT-SCG
and BBOI Worldwide LLC ("BBOI") serves as the investment advisor to the
IPT-International. BBOI has delegated the day-to-day portfolio management of the
IPT-International to Bank of Ireland Asset Management (U.S.) Limited ("BIAM").
As compensation for their services to the Funds, Berger and BBOI receive an
investment advisory fee which is accrued daily at the applicable rate and paid
monthly. The fees are based on an annual rate of each Fund's average daily net
assets as follows: IPT-100 and IPT-G&I at .75 of 1% of average daily net assets;
IPT-SCG and IPT-International at .90 of 1% of average daily net assets. As
sub-advisor to IPT-International, BIAM receives a sub-advisory fee from BBOI at
an annual rate of .40 of 1% of the average daily net assets of the Fund. Such
advisory and sub-advisory fees have been voluntarily waived by Berger and BIAM
during the six months ended June 30, 1997 and for the period from May 1, 1997 to
June 30, 1997, respectively. Berger and BBOI have agreed to waive their advisory
fees and reimburse expenses to the Funds to the extent that normal operating
expenses in any fiscal year (including the advisory fee but excluding brokerage
commissions, interest, taxes and extraordinary expenses) exceed 1.00% of the
average daily net assets of each of the IPT-100 and the IPT-G&I, 1.15% of the
average daily net assets of the IPT-SCG and 1.20% of the average daily net
assets of the IPT-International .
The IPT-100, IPT-G&I and IPT-SCG have entered into an administrative
services agreement with Berger. The administrative services agreements provide
for an annual fee of .01 of 1% of the average daily net assets of each Fund
accrued daily and paid monthly. The IPT-International has entered into an
administrative services agreement with BBOI. The administrative services
agreement provides for a fee at an annual rate of .01 of 1% of the average daily
net assets of the Fund accrued daily and paid monthly. BBOI has delegated the
day-to-day administrative duties to Berger. Berger receives a sub-administration
fee from BBOI at an annual rate of .20 of 1% of the average daily net assets of
the IPT-International. Such sub-administration fee was voluntarily waived by
Berger for the period from May 1, 1997 to June 30, 1997.
31
<PAGE>
The Trust has entered into a recordkeeping and pricing agreement with
Investors Fiduciary Trust Company ("IFTC"), who also serves as each Fund's
custodian and transfer agent. The recordkeeping and pricing agreement provides
for the monthly payment of a base fee per Fund plus a fee computed as a
percentage of average daily net assets on a total relationship basis. IFTC's
fees for custody, recordkeeping and pricing, or transfer agency services are
subject to reduction by credits earned by each Fund, based on the cash balances
of the Fund held by IFTC as custodian or by credits received from directed
brokerage transactions. For the six months ended June 30, 1997, the IPT-100,
IPT-G&I, IPT-SCG and the IPT-International Funds received $305, $363, $518 and
$0, respectively, in earnings and brokerage credits and paid IFTC fees (after
earnings and brokerage credits) of $9,259, $9,906, $9,924, and $0, respectively,
for services rendered.
Certain officers and directors of Berger are also officers and trustees of
the Trust. Trustees who are not affiliated with Berger received trustees' fees
totaling $207, $226 and $168 from the IPT-100, IPT-G&I and IPT-SCG Funds for the
six months ended June 30, 1997. Unaffiliated trustees received no compensation
from the IPT-International Fund for the period from May 1, 1997 (commencement of
investment operations) to June 30, 1997.
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities for the six months ended
June 30, 1997, were as follows:
<TABLE>
<CAPTION>
Berger/BIAM
Berger IPT- Berger IPT- IPT-
Berger IPT- Growth and Small Company International
100 Fund Income Fund Growth Fund Fund*
<S> <C> <C> <C> <C>
Purchases of investment securities
(excluding short-term securities) $ 247,713 $ 512,135 $ 496,903 $ 1,909,657
=========================================================================================================================
Sales of investment securities
(excluding short-term securities) $ 234,280 $ 418,335 $ 161,945 $ 947
=========================================================================================================================
</TABLE>
* Represents the period from May 1, 1997 (commencement of operations)
through June 30, 1997.
There were no purchases or sales of long-term U.S. Government securities
during the period.
At June 30, 1997, the composition of unrealized appreciation (the excess of
value over tax cost) and unrealized depreciation (the excess of tax cost over
value) for securities was as follows:
<TABLE>
<CAPTION>
Berger/BIAM
Berger IPT- Berger IPT- IPT-
Berger IPT- Growth and Small Company International
100 Fund Income Fund Growth Fund Fund
<S> <C> <C> <C> <C>
Appreciation $ 75,058 $ 61,602 $ 84,260 $ 59,010
Depreciation (4,873) (1,520) (10,363) (33,891)
- ---------------------------------------------------------------------------------------------------------------------------
Net $ 70,185 $ 60,082 $ 73,897 $ 25,119
===========================================================================================================================
</TABLE>
The Funds are permitted to hold certain types of futures, forwards and
options (except for the IPT-International, which may only hold forward foreign
currency exchange contracts) for the purpose of hedging the portfolio against
exposure to market value fluctuations. The use of such instruments may involve
certain risks as a result of unanticipated movements in the market. A lack of
correlation between the value of such investments and the assets being hedged,
or unexpected price movements, could render a Funds' hedging strategy
unsuccessful. In addition, there can be no assurance that a liquid secondary
market will exist for the instrument. Realized gains or losses on these
securities, if any, are included in Net Realized Gain (Loss) on Securities
Transactions in the Statements of Operations.
32
<PAGE>
B. Federal Income Tax Status
Dividends paid by the Funds from net investment income and distributions of
net realized short-term capital gains are, for Federal income tax purposes,
taxable as ordinary income to shareholders.
The Funds distribute net realized capital gains, if any, to their
shareholders at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatments for
net operating losses and expiring capital loss carryforwards. Accordingly, these
permanent differences in the character of income and distributions between
financial statements and tax basis will be reclassified to paid-in-capital. At
June 30, 1997, no such differences existed.
At June 30, 1997, the Funds, except for the IPT-International, had capital
loss carryovers, which may be used to offset future realized capital gains for
Federal income tax purposes. Additionally, the Funds incurred and elected to
defer post-October 31 net capital losses incurred during the year ended December
31, 1996 to the year ended December 31, 1997. The capital loss carryovers and
post-October 31 net capital losses for the Funds are as follows:
Capital Loss
Carryovers Post-October
Fund (expire 12/31/04) Losses
IPT - 100 $ 8,758 $ 6,331
IPT - G&I $ 5,025 $ 180
IPT - SCG $ 16,903 $ 7,233
IPT - International N/A N/A
33
<PAGE>
BERGER IPT-100 FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period Ended
June 30, 1997
(Unaudited) December 31, 1996
<S> <C> <C>
Net asset value, beginning of period $ 10.39 $ 10.00
- ---------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01 0.03
Net realized and unrealized gain (loss) on securities 0.85 0.36
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.86 0.39
- ---------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------------
Total Distributions 0.00 0.00
- ---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.25 $ 10.39
=====================================================================================================================
Total Return^* 8.28% 3.90%
=====================================================================================================================
Ratios:
Net assets, end of period $ 608,009 $ 331,296
Ratio of expenses to average net assets:~+
Net expenses 0.86% 0.93%
Gross expenses 14.59% 7.69%
Ratio of net income to average net assets~ 0.47% 0.50%
Portfolio turnover rate* 77% 56%
Average commission rate $ .0598 $ .0590
</TABLE>
^ Total return reflects the effect of fees offset by earnings credits, fee
waivers and expense reimbursements, and does not reflect expenses that
apply to related variable insurance contracts. Had the fee offsets, waivers
and reimbursements not been made, and had variable contract charges been
included, total return would have been lower for the period shown.
* Based on operations for the period shown and, accordingly, is not
representative of a full year.
~ Annualized.
+ Net expenses reflect the Fund's gross (total) expenses, reduced by fees
offset by earnings credits, fee waivers and expense reimbursements. Gross
expenses and net expenses do not include the deduction of any charges or
expenses attributable to any particular variable insurance contract.
See notes to financial statements.
34
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period Ended
June 30, 1997
(Unaudited) December 31, 1996
<S> <C> <C>
Net asset value, beginning of period $ 11.14 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.03 0.10
Net realized and unrealized gain (loss) on securities 1.15 1.04
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.18 1.14
- -----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 12.32 $ 11.14
=======================================================================================================================
Total Return^* 10.59% 11.40%
=======================================================================================================================
Ratios:
Net assets, end of period $ 581,473 $ 344,373
Ratio of expenses to average net assets:~+
Net expenses .83% .94%
Gross expenses 14.71% 7.70%
Ratio of net income to average net assets~ 1.46% 1.80%
Portfolio turnover rate* 122% 60%
Average commission rate $ .0597 $ .0756
</TABLE>
^ Total return reflects the effect of fees offset by earnings credits, fee
waivers and expense reimbursements, and does not reflect expenses that
apply to related variable insurance contracts. Had the fee offsets, waivers
and reimbursements not been made, and had variable contract charges been
included, total return would have been lower for the period shown.
* Based on operations for the period shown and, accordingly, is not
representative of a full year.
~ Annualized.
+ Net expenses reflect the Fund's gross (total) expenses, reduced by fees
offset by earnings credits, fee waivers and expense reimbursements. Gross
expenses and net expenses do not include the deduction of any charges or
expenses attributable to any particular variable insurance contract.
See notes to financial statements.
35
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period Ended
June 30, 1997
(Unaudited) December 31, 1996
<S> <C> <C>
Net asset value, beginning of period $ 9.95 $ 10.00
- -----------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (0.02) 0.01
Net realized and unrealized gain (loss) on securities 0.45 (0.06)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.43 (0.05)
- -----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income) 0.00 0.00
Distributions (from capital gains) 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
Total Distributions 0.00 0.00
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.38 $ 9.95
- -----------------------------------------------------------------------------------------------------------------------
Total Return^* 4.32% (0.50)%
=======================================================================================================================
Ratios:
Net assets, end of period $ 652,749 $ 291,362
Ratio of expenses to average net assets:~+
Net expenses .85% .95%
Gross expenses 16.00% 8.57%
Ratio of net income (loss) to average net assets~ (0.39)% 0.14%
Portfolio turnover rate* 51% 80%
Average commission rate $ .0609 $ .0392
</TABLE>
^ Total return reflects the effect of fees offset by earnings credits, fee
waivers and expense reimbursements, and does not reflect expenses that
apply to related variable insurance contracts. Had the fee offsets, waivers
and reimbursements not been made, and had variable contract charges been
included, total return would have been lower for the period shown.
* Based on operations for the period shown and, accordingly, is not
representative of a full year.
~ Annualized.
+ Net expenses reflect the Fund's gross (total) expenses, reduced by fees
offset by earnings credits, fee waivers and expense reimbursements. Gross
expenses and net expenses do not include the deduction of any charges or
expenses attributable to any particular variable insurance contract.
See notes to financial statements.
36
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period
From May 1, 1997 (Commencement Of Operations)
Through June 30, 1997 (Unaudited)
- -------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
- -------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.03
Net realized and unrealized gain (loss) on securities 0.14
- -------------------------------------------------------------------------------
Total from investment operations 0.17
- -------------------------------------------------------------------------------
Less distributions:
Dividends (from net investment income) 0.00
Distributions (from capital gains) 0.00
- -------------------------------------------------------------------------------
Total Distributions 0.00
- -------------------------------------------------------------------------------
Net asset value, end of period $ 10.17
===============================================================================
Total Return^* 1.70%
===============================================================================
Ratios:
Net assets, end of period $ 2,052,976
Ratio of expenses to average net assets:~+
Net expenses 1.06%
Gross expenses 1.06%
Ratio of net income to average net assets~ 2.18%
Portfolio turnover rate* .08%
Average commission rate $ .0240
^ Total return reflects the effect of fees offset by earnings credits, fee
waivers and expense reimbursements, and does not reflect expenses that
apply to related variable insurance contracts. Had the fee offsets, waivers
and reimbursements not been made, and had variable contract charges been
included, total return would have been lower for the period shown.
* Based on operations for the period shown and, accordingly, is not
representative of a full year.
~ Annualized.
+ Net expenses reflect the Fund's gross (total) expenses, reduced by fees
offset by earnings credits, fee waivers and expense reimbursements. Gross
expenses and net expenses do not include the deduction of any charges or
expenses attributable to any particular variable insurance contract.
See notes to financial statements.
37
<PAGE>
TRUSTEES OF BERGER INSTITUTIONAL PRODUCTS TRUST
MICHAEL OWEN, CHAIRMAN * DENNIS E. BALDWIN
WILLIAM M.B. BERGER * LOUIS R. BINDNER, P.E. * KATHERINE A. CATTANACH
LUCY BLACK CREIGHTON * PAUL R. KNAPP * GERARD M. LAVIN *
HARRY T. LEWIS, JR. * WILLIAM SINCLAIRE
OFFICERS:
GERARD M. LAVIN
President
Berger Institutional Products Trust
WILLIAM R. KEITHLER
President
Berger IPT-Small Company Growth Fund
PATRICK S. ADAMS
President
Berger IPT-100 Fund
Berger IPT-Growth & Income Fund
MARK R. MCKINNEY
Vice President
Berger IPT-Growth & Income Fund
KEVIN R. FAY
Vice President, Secretary and Treasurer
Berger Institutional Products Trust
JANICE M. TEAGUE
Assistant Secretary
Berger Institutional Products Trust
DAVID J. SCHULTZ
Assistant Treasurer
Berger Institutional Products Trust
INVESTMENT ADVISORS
Berger Associates, Inc.
BBOI Worldwide LLC
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS
Together we can move mountains.(TM)
(C)1997 Berger Associates, Inc.
38
