<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1998
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, 1998,
the results of their operations for the periods ending June 30, 1998 and the
changes in net assets, and financial highlights for the periods indicated, in a
single document.
------------------------
Table of Contents
<TABLE>
<S> <C>
BERGER IPT-100 FUND
Portfolio Manager's Commentary........................................ 1
Schedule of Investments............................................... 3
BERGER IPT-GROWTH AND INCOME FUND
Co-Portfolio Managers' Commentary..................................... 7
Schedule of Investments............................................... 9
BERGER IPT-SMALL COMPANY GROWTH FUND
Portfolio Manager's Commentary........................................ 13
Schedule of Investments............................................... 15
BERGER/BIAM IPT-INTERNATIONAL FUND
Portfolio Managers' Commentary........................................ 20
Schedule of Investments............................................... 22
Financial Statements...................................................... 25
Financial Highlights...................................................... 29
Notes to Financial Statements............................................. 32
</TABLE>
<PAGE>
BERGER IPT-100 FUND
PORTFOLIO MANAGER'S COMMENTARY PATRICK S. ADAMS
PERFORMANCE
Market performance in the first two quarters of 1998 was like night and day.
The market turned in a healthy first-quarter performance, but renewed fears
about Asia and disappointing first-quarter earnings results created a turbulent
second quarter that again saw a rush to blue chip "defensive" stocks. As a
result, the Berger IPT-100 Fund (the "Fund") had a strong first quarter and a
disappointing second quarter. The Fund's six-month total return of 10.80%(1)
lagged the 17.72% return for the Standard & Poor's (S&P) 500(2) over the same
period but beat the 8.63% return for the S&P Mid Cap 400.(3)
PERIOD IN REVIEW
Buoyed by the market's apparent recovery from the Asian situation, our Fund
had excellent performance from a number of holdings in the first quarter,
particularly those in technology, consumer cyclicals and financials. A second
bout of "Asian flu" hit the market hard in mid-April, however, triggering
another flight to the large index stocks that investors perceive to be safer in
volatile markets.
As we saw in the fourth quarter 1997, the technology sector felt the brunt
of investors' Asian fears during the second quarter. The sector was hit hard
across the board, affecting even some companies with no direct connection to
Asia. We continue to believe technology is one of the most attractive sectors on
a long-term basis, however. As a result, the percentage of Fund assets invested
in this sector was virtually unchanged over the six-month period, and technology
remains our Fund's single largest holding (28.5%).
We have increased our investment in healthcare companies (8.4% of total
assets on June 30, 1998) as they have strong fundamentals and are a good
defensive play because the ones we are invested in have little or no Asian
exposure.
We slightly reduced our position in consumer cyclicals in 1998 to take
profits--from 12.5% on December 31, 1997, to 9.1% on June 30. Our
best-performing consumer stock has been one of our largest holdings, Tommy
Hilfiger, which is up nearly 78% year to date.
Sunbeam was a major disappointment this period. Turmoil at the company,
brought about by a disappointing earnings report, questionable accounting
practices and the firing of CEO Al Dunlap, caused the stock to drop and created
a drag on Fund performance. We have since sold our position in this security.
LOOKING AHEAD
While the market's second quarter move to large, defensive stocks was
understandable, we do not believe this will be a secular trend and feel very
comfortable with how we have the portfolio structured. We believe that there is
excessive valuation risk in many of the companies that comprise the S&P 500 and
we maintain our commitment to our proven growth at a reasonable price strategy.
While our Fund has the flexibility to invest in companies of any market
capitalization, in the current market environment we are weighted more heavily
toward the mid cap arena.
1
<PAGE>
We remain cautiously optimistic for the second half of 1998. Low interest
rates and strong economies in the U.S. and Europe are providing a favorable
business environment. The biggest concern is the Asian economic crisis and its
impact on future earnings of U.S. companies. As long as we see progress,
particularly in restructuring Japan's banking system and stimulating economic
growth, we will remain positive on worldwide GDP growth.
Thank you for your confidence in our Fund.
- ------------------------
(1) 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.
(2) The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the
U.S. stock market. One cannot invest directly in an index.
(3) The S&P Mid Cap 400 is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 400 publicly traded U.S. companies. It is a
generally recognized indicator used to measure mid cap stock performance in
the U.S. stock market. One cannot invest directly in an index.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN BERGER IPT-100 FUND
VS. S&P 500 AND COST OF LIVING INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INITIAL INVESTMENT $10,000 VALUE OF SHARES
COST OF LIVING
BERGER IPT-100 FUND S&P 500 INDEX
<S> <C> <C> <C>
5/1/96 $10,000 $10,000 $10,000
6/30/96 $9,780 $10,290 $10,026
9/30/96 $10,080 $10,608 $10,096
12/31/96 $10,390 $11,492 $10,147
3/31/97 $10,030 $11,801 $10,237
6/30/97 $11,250 $13,860 $10,256
9/30/97 $12,420 $14,897 $10,313
12/31/97 $11,820 $15,325 $10,320
3/31/98 $13,809 $17,462 $10,377
6/30/98 $13,097 $18,038 $10,416
Berger IPT-100 Fund
Average Annual Total Return
As of June 30, 1998
Since Inception
1 Year (5/1/96)
16.41% 13.24%
Past performance is not predictive of future
performance.
</TABLE>
2
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
COMMON STOCK 80.54%
AEROSPACE/DEFENSE 1.00%
600 The Boeing Company $ 26,737
-----------
AEROSPACE/DEFENSE-EQUIPMENT 1.11%
600 The B.F. Goodrich Company 29,775
-----------
AUTO MANUFACTURERS-DOMESTIC 0.95%
450 Chrysler Corporation 25,368
-----------
AUTO/TRUCK-ORIGINAL EQUIPMENT 0.77%
400 Lear Corporation* 20,525
-----------
BANKS-MONEY CENTER 2.73%
580 Chase Manhattan Corporation 43,790
500 First Union Corporation 29,125
-----------
72,915
-----------
BUILDING PRODUCTS-WOOD 1.20%
1,000 Willamette Industries, Inc. 32,000
-----------
COMPUTER-GRAPHICS 4.32%
3,700 Cadence Design Systems, Inc.* 115,625
-----------
COMPUTER-LOCAL NETWORKS 3.27%
2,850 3Com Corporation* 87,459
-----------
COMPUTER-MINI/MICRO 2.11%
1,300 Sun Microsystems, Inc.* 56,468
-----------
COMPUTER SOFTWARE-ENTERPRISE 6.94%
400 Computer Associates International, Inc. 22,225
4,170 Parametric Technology Corporation* 113,111
1,100 Synopsys, Inc.* 50,325
-----------
185,661
-----------
DIVERSIFIED OPERATIONS 2.24%
950 Tyco International, Ltd. 59,850
-----------
ELECTRICAL-EQUIPMENT 2.19%
700 Honeywell, Inc. 58,493
-----------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 1.56%
250 Applied Materials, Inc.* 7,375
1,800 Lam Research Corporation* 34,425
-----------
41,800
-----------
</TABLE>
3
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 8.51%
2,400 Altera Corporation* $ 70,950
2,960 Maxim Integrated Products, Inc.* 93,795
1,850 Xilinx, Inc.* 62,900
-----------
227,645
-----------
FINANCIAL SERVICES-MISCELLANEOUS 1.18%
1,050 Heller Financial, Inc.* 31,500
-----------
FOOD-FLOUR & GRAIN 2.11%
1,700 Interstate Bakeries Corporation 56,418
-----------
LEISURE-HOTELS & MOTELS 0.92%
627 Promus Hotel Corporation* 24,139
18 Sodexho Marriott Services, Inc.* 522
-----------
24,661
-----------
LEISURE-TOYS/GAMES/HOBBY 0.63%
400 Mattel, Inc. 16,925
-----------
MACHINE-TOOLS & RELATED PRODUCTS 1.09%
700 Kennametal, Inc. 29,225
-----------
MEDICAL-BIOMEDICAL/GENETICS 1.83%
1,350 Centocor, Inc.* 48,937
-----------
MEDICAL-DRUG/DIVERSIFIED 1.26%
650 American Home Products Corporation 33,637
-----------
MEDICAL-ETHICAL DRUGS 2.72%
1,100 Lilly (Eli) & Co. 72,668
-----------
MEDICAL-OUTPATIENT/HOME CARE 1.55%
1,550 HEALTHSOUTH Corporation* 41,365
-----------
MEDICAL-PRODUCTS 1.01%
500 Baxter International, Inc. 26,906
-----------
OIL & GAS-FIELD SERVICES 0.63%
200 B.J. Services Co.* 5,812
250 Halliburton Co. 11,140
-----------
16,952
-----------
PAPER & PAPER PRODUCTS 0.69%
400 Kimberly-Clark Corporation 18,350
-----------
POLLUTION CONTROL-EQUIPMENT 3.38%
3,220 United States Filter Corporation* 90,361
-----------
RETAIL-APPAREL/SHOE 1.53%
950 Ross Stores, Inc. 40,850
-----------
</TABLE>
4
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
RETAIL-DEPARTMENT STORES 0.69%
300 Sears Roebuck & Co. $ 18,318
-----------
RETAIL-MAIL ORDER & DIRECT 1.05%
1,350 Cendant Corporation* 28,181
-----------
RETAIL-MISCELLANEOUS/DIVERSIFIED 4.55%
2,300 Republic Industries, Inc.* 57,500
1,300 U.S.A. Waste Services, Inc.* 64,187
-----------
121,687
-----------
RETAIL-RESTAURANTS 0.77%
300 McDonalds Corporation 20,700
-----------
RETAIL/WHOLESALE-AUTO PARTS 3.70%
3,100 Autozone, Inc.* 99,006
-----------
RETAIL/WHOLESALE-COMPUTERS/CELLULAR 1.34%
2,000 CHS Electronics, Inc.* 35,750
-----------
RETAIL/WHOLESALE-OFFICE SUPPLIES 1.48%
2,400 Officemax, Inc.* 39,600
-----------
TELECOMMUNICATIONS-SERVICES 1.70%
950 Nextel Communications, Inc.* 23,631
450 Worldcom, Inc.* 21,796
-----------
45,427
-----------
TEXTILE-APPAREL MANUFACTURING 5.83%
1,250 Liz Claiborne, Inc. 65,312
1,450 Tommy Hilfiger Corporation* 90,637
-----------
155,949
-----------
TOTAL COMMON STOCK (COST $2,090,804) 2,153,694
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS 11.21%
$ 300,000 Federal Home Loan Mortgage Corporation
Discount Note-5.50%, 7/9/98 299,633
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $299,633) 299,633
-----------
</TABLE>
5
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT 4.52%
$ 121,000 Repurchase agreement with State Street
Bank, 5.60% dated June 30, 1998, to be
repurchased at $121,018 on July 1, 1998,
collateralized by U.S. Federal National
Mortgage Association Note, 7.42% - July
1, 2027, with a value of $127,400 $ 121,000
-----------
TOTAL REPURCHASE AGREEMENT (COST $121,000) 121,000
-----------
TOTAL INVESTMENTS (COST $2,511,437)** 96.27% 2,574,327
TOTAL CASH AND OTHER ASSETS, LESS LIABILITIES 3.73% 99,729
-----------
NET ASSETS 100.00% $2,674,056
-----------
-----------
</TABLE>
- ------------------------
* Non-income producing security.
**The cost of investments for federal tax purposes amounts to $2,511,437.
See notes to financial statements.
6
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
CO-PORTFOLIO MANAGERS' COMMENTARY SHEILA J. OHLSSON & PATRICK S. ADAMS
PERFORMANCE
Renewed Asian concerns in the second quarter provided for a volatile first
half of the year in the market. The Berger IPT-Berger Growth and Income Fund
(the "Fund") returned 12.25%(1) for the six-month period ended June 30, 1998,
compared with 17.72% for the Standard & Poor's (S&P) 500(2). The lagging
performance is attributable primarily to two factors. First, investors were once
again concerned about deteriorating prospects in Asia and flocked to blue chip,
liquid stocks that dominate the S&P 500. These types of stocks are perceived as
"safe harbors" in difficult times. Second, we were hurt in the first quarter by
energy stocks, which continued to underperform because of the implications of
weak commodity prices. We have since reduced our energy exposure from 8.7% on
December 31, 1997 to 5.4% on June 30.
PERIOD IN REVIEW
We increased consumer cyclicals and consumer staples from 5.4% of total Fund
assets on December 31, 1997 to 12.3% on June 30. Consumer stocks, particularly
apparel and food retailers, are benefiting from a strong U.S. economy.
Additionally, they have little to no exposure to Asia, and conversely some are
gaining sourcing benefits from inexpensive Asian manufacturing. Dayton Hudson
was an outstanding performer for our Fund the past six months. Other names added
were Albertsons and Walgreens.
We continue to be bullish on healthcare. The names we hold tend to be a good
defensive play in a volatile environment. And like consumer stocks, they have
relatively little Asian exposure. We continue to like the drug stocks, although
we are watching the valuations closely.
The largest sector weighting in the Fund, 24.7%, is invested in technology,
which includes telecommunications equipment and services. During 1998, we have
shifted assets to the telecommunications-related stocks to take advantage of the
strong underlying trends in that industry. Lucent Technologies and WorldCom were
tremendous performers during this reporting period. We added Tellabs in the
second quarter, feeling that its acquisition of Ciena enhanced an already strong
existing fundamental business. Technology continues to be highly volatile
because of Asia and Year 2000 issues. Many companies are directing information
systems capital expenditure budgets toward Year 2000 issues and postponing
purchases in other areas. We continue our focus on high-quality technology
companies with solid product lines that we believe can weather the Asian crisis.
We particularly like companies such as Compuware, which are on the software and
service side of technology instead of the more volatile hardware side.
We reduced holdings in the financial sector, from 23.7% of total Fund assets
on December 31, 1997, to 11.4% on June 30. Specifically, we shifted out of
regional banks and mortgage-related stocks and concentrated our holdings in
investment banks/brokerage firms, which are benefiting from both a strong U.S.
equity market and tremendous merger and acquisition activity. Morgan Stanley
Dean Witter and American Express aided Fund performance this six-month period.
We established a position in the electric utilities sector, which includes
Duke Energy and Carolina Power & Light, in the second quarter because this
sector combines good dividend income with low volatility. Convertible bonds and
preferred stocks, which make up 13% of total Fund assets, continue to provide
income as well.
Sunbeam was a major disappointment this period. Turmoil at the company,
brought about by a disappointing earnings report, questionable accounting
practices and the firing of CEO Al Dunlap, caused the stock to drop and created
a drag on Fund performance. We have since sold our position in this security.
7
<PAGE>
LOOKING AHEAD
We are generally positive with respect to the market, given the strong U.S.
economy and benign interest rate environment. We continue to be concerned about
the situation in Asia, feeling that the weakness will continue for some time. In
terms of the U.S. equity market, valuations are high, but we remain cautiously
optimistic given the strength in underlying market fundamentals.
Thank you for your confidence in our Fund.
- ------------------------
(1) 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.
(2) The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the
U.S. stock market. One cannot invest directly in an index.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN BERGER IPT-GROWTH AND INCOME FUND
VS. S&P 500 AND COST OF LIVING INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INITIAL INVESTMENT $10,000 VALUE OF SHARES
COST OF LIVING
BERGER IPT-GROWTH & INCOME FUND S&P 500 INDEX
<S> <C> <C> <C>
5/1/96 $10,000 $10,000 $10,000
6/30/96 $10,020 $10,290 $10,026
9/30/96 $10,400 $10,608 $10,096
12/31/96 $11,140 $11,492 $10,147
3/31/97 $11,190 $11,801 $10,237
6/30/97 $12,320 $13,860 $10,256
9/30/97 $14,110 $14,897 $10,313
12/31/97 $13,924 $15,325 $10,320
3/31/98 $15,318 $17,462 $10,377
6/30/98 $15,630 $18,038 $10,416
Berger IPT-Growth & Income Fund
Average Annual Total Return
As of June 30, 1998
1 Year Since Inception (5/1/96)
26.86% 22.85%
Past performance is not predictive of future
performance.
</TABLE>
8
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
COMMON STOCK 79.51%
AUTO MANUFACTURERS-DOMESTIC 1.76%
1,800 Ford Motor Company $ 106,200
------------
AUTO/TRUCK-ORIGINAL EQUIPMENT 1.34%
1,175 Magna International, Inc. Class A 80,634
------------
BANKS-SUPER REGIONAL 0.56%
900 Norwest Corporation 33,637
------------
BUILDING-HAND TOOLS 1.58%
2,600 Danaher Corporation 95,387
------------
COMPUTER-GRAPHICS 1.32%
2,550 Cadence Design Systems, Inc.* 79,687
------------
COMPUTER-LOCAL NETWORKS 1.64%
1,075 Cisco Systems, Inc.* 98,967
------------
COMPUTER-MINI/MICRO 1.44%
2,000 Sun Microsystems, Inc.* 86,875
------------
COMPUTER-SERVICES 1.00%
1,100 Cambridge Technology Partners, Inc.* 60,087
------------
COMPUTER SOFTWARE-DESKTOP 1.12%
625 Microsoft Corporation* 67,734
------------
COMPUTER SOFTWARE-ENTERPRISE 4.64%
1,700 Computer Associates International, Inc. 94,456
2,500 Compuware Corporation* 127,812
2,100 Parametric Technology Corporation* 56,962
------------
279,230
------------
COMPUTER SOFTWARE-MEDICAL 2.05%
3,500 HBO & Company 123,375
------------
COMPUTER SOFTWARE-SECURITY 1.79%
2,250 Network Associates, Inc.* 107,718
------------
DIVERSIFIED OPERATIONS 0.88%
950 Monsanto Company 53,081
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 2.05%
2,050 Maxim Integrated Products, Inc.* 64,959
1,000 Texas Instruments, Inc. 58,312
------------
123,271
------------
FINANCE-CONSUMER/COMMERCIAL LOANS 1.47%
3,400 Sirrom Capital Corporation 88,400
------------
</TABLE>
9
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
FINANCE-INVESTMENT BANKERS 1.46%
950 Merrill Lynch & Co., Inc. $ 87,637
------------
FINANCE-INVESTMENT MANAGEMENT 1.97%
1,300 Morgan Stanley Dean Witter Discovery &
Company 118,787
------------
FINANCIAL SERVICES-MISCELLANEOUS 2.90%
925 American Express Company 105,450
1,400 Newcourt Credit Group, Inc. 68,862
------------
174,312
------------
INSURANCE-DIVERSIFIED 1.76%
1,750 Travelers Group, Inc. 106,093
------------
INSURANCE-PROPERTY/CASUALTY/TITLE 1.29%
1,210 Mercury General Corporation 77,818
------------
LEISURE-PRODUCTS 1.42%
2,200 Harley-Davidson, Inc. 85,250
------------
LEISURE-TOYS/GAMES/HOBBY 1.48%
2,100 Mattel, Inc. 88,856
------------
MEDICAL-DRUG/DIVERSIFIED 3.02%
1,100 American Home Products Corporation 56,925
1,800 Warner-Lambert Company 124,875
------------
181,800
------------
MEDICAL-ETHICAL DRUGS 1.17%
650 Pfizer, Inc. 70,646
------------
MEDICAL-GENERIC DRUGS 1.35%
2,700 Mylan Laboratories, Inc. 81,168
------------
MEDICAL-HOSPITALS 1.40%
2,700 Tenet Healthcare Corporation* 84,375
------------
MEDICAL-OUTPATIENT/HOME CARE 1.31%
2,950 HEALTHSOUTH Corporation* 78,728
------------
MEDICAL-WHOLESALE DRUG/SUNDRIES 2.32%
1,720 McKesson Corporation 139,750
------------
MEDICAL/DENTAL-SUPPLIES 1.06%
1,000 Steris Corporation* 63,593
------------
OFFICE-EQUIPMENT & AUTOMATION 1.27%
750 Xerox Corporation 76,218
------------
OIL & GAS-FIELD SERVICES 1.30%
1,750 Halliburton Company 77,984
------------
</TABLE>
10
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
OIL & GAS-INTERNATIONAL INTEGRATED 1.53%
1,200 Mobil Corporation $ 91,950
------------
OIL & GAS-PRODUCTION/PIPELINE 1.46%
2,600 The Williams Companies, Inc. 87,750
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 1.58%
4,854 Ocean Energy, Inc.* 94,956
------------
OIL & GAS-U.S. INTEGRATED 1.04%
1,500 Amoco Corporation 62,437
------------
RETAIL-APPAREL/SHOE 2.85%
1,000 Nordstrom, Inc. 77,250
3,900 TJX Companies, Inc. 94,087
------------
171,337
------------
RETAIL-DEPARTMENT STORES 3.11%
2,600 Proffitts, Inc.* 104,975
1,350 Sears Roebuck & Company 82,434
------------
187,409
------------
RETAIL-DRUG STORES 1.54%
2,250 Walgreen Company 92,953
------------
RETAIL-MAJOR DISCOUNT CHAINS 1.92%
2,380 Dayton-Hudson Corporation 115,430
------------
RETAIL-SUPER/MINI MARKETS 1.72%
2,000 Albertson's, Inc. 103,625
------------
RETAIL/WHOLESALE-OFFICE SUPPLIES 1.86%
6,800 Officemax, Inc.* 112,200
------------
TELECOMMUNICATIONS-EQUIPMENT 2.97%
950 Lucent Technologies, Inc. 79,028
1,400 Tellabs, Inc.* 100,275
------------
179,303
------------
TELECOMMUNICATIONS-SERVICES 2.79%
2,700 Teleglobe, Inc. 71,550
2,000 Worldcom, Inc.* 96,875
------------
168,425
------------
UTILITY-ELECTRIC POWER 4.02%
2,300 Carolina Power & Light Company 99,762
1,700 Duke Energy Corporation 100,725
500 New Century Energies, Inc. 22,718
500 Western Resources, Inc. 19,406
------------
242,611
------------
TOTAL COMMON STOCK (COST $4,446,258) 4,787,684
------------
</TABLE>
11
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
CONVERTIBLE DEBENTURES 6.49%
COMMERCIAL SERVICES-STAFFING 1.21%
70,000 Interim Services, Inc.-4.50%, 6/1/05 $ 73,062
------------
COMPUTER-MEMORY DEVICES 1.89%
55,000 EMC Corporation-3.25%, 3/15/02 113,506
------------
POLLUTION CONTROL-EQUIPMENT 1.13%
44,000 United States Filter Corporation-6.00%,
9/15/05 67,762
------------
POLLUTION CONTROL-SERVICES 2.26%
81,000 U.S.A. Waste Services, Inc.-4.50%,
6/1/01 136,181
------------
TOTAL CONVERTIBLE DEBENTURES (COST $385,795) 390,511
------------
PREFERRED STOCK 5.78%
AUTO/TRUCK-REPLACEMENT PARTS 1.36%
1,100 Federal-Mogul Financial Trust 7.00% (r) 81,675
------------
LEISURE-SERVICES 1.20%
575 Royal Caribbean Cruises, Ltd. 7.25% 72,450
------------
MEDIA-RADIO/TV 2.06%
875 Chancellor Media 7.00% 124,048
------------
RETAIL-MAJOR DISCOUNT CHAINS 1.16%
1,000 K-Mart Financing I 7.75% 70,000
------------
TOTAL PREFERRED STOCK (COST $313,430) 348,173
------------
TOTAL INVESTMENTS (COST $5,145,483)** 91.78% 5,526,368
TOTAL CASH AND OTHER ASSETS, LESS LIABILITIES 8.22% 494,757
------------
NET ASSETS 100.00% $6,021,125
------------
------------
</TABLE>
- ------------------------
(r) Pursuant to Rule 144A, resale is restricted to qualified buyers.
* Non-income producing security.
** The cost of investments for federal tax purposes amounts to $5,145,646.
See notes to financial statements.
12
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
PORTFOLIO MANAGER'S COMMENTARY WILLIAM KEITHLER
PERFORMANCE
The six-month period ending June 30, 1998, was a turbulent time for
investors in small capitalization/emerging growth stocks. Small stocks sold off
sharply in October 1997 as investors sought safety and liquidity in U.S.
Government bonds and large cap stocks. Underperformance persisted until the
second half of January 1998 when investors felt it was safe to go back in the
water with smaller stocks. Small stocks then were on the upswing until early
April 1998 when the market suffered its second bout of "Asian flu." Small stocks
once again underperformed their larger brethren through the end of the quarter.
Against this backdrop, the Berger IPT - Small Company Growth Fund (the
"Fund") delivered a total return of 12.85%(1) for the six-month period ended
June 30, which substantially outpaced the 4.93% total return for the Russell
2000(2) and 5.46% for the Russell 2000-Growth Index(3) over the same period.
(The Russell 2000-Growth Index is a more accurate comparison for our Fund.)
PERIOD IN REVIEW
In the consumer sector media stocks, especially radio stocks that had been
very strong performers in the first half of this reporting period, gave ground
because of higher valuations and concerns over interest rate risk. For the six
months, however, radio, outdoor advertising and particularly Internet-related
consumer stocks made a strong contribution to performance.
Other consumer stocks that performed relatively well include retailers Just
For Feet and Men's Wearhouse. Specialty retailers such as Wild Oats Markets and
Pacific Sunwear of California also were good performers.
Among our finance holdings, companies such as Resource America, a specialty
finance company, and Nova Corporation, a transaction processor, performed
particularly well. Nova's business is driven by stronger consumer spending and
consolidation of a fragmented industry.
Technology stocks, which were hardest hit by the Asian crisis, continue to
suffer from an uncertain outlook. We have greatly reduced our normal high
weighting in this sector and are focused on software, security,
telecommunications and Internet-related technology companies. We attribute the
exceedingly strong performance of Internet stocks to weak fundamentals elsewhere
in the sector and to a relative scarcity value to these stocks. Our concern with
Internet stocks is valuation, not fundamentals. We have only minimal positions
in semiconductor and semiconductor capital equipment stocks.
Long a significant portion of our Fund, computer services stocks until
recently have been among the best performers in the technology group. While
these stocks have been weak recently, we believe the bulk of the correction in
this industry is behind us; indeed, many of these stocks have led the way up
during the recent rally. Stocks such as Sapient, Whitman-Hart and Cambridge
Technology Partners are among our leading holdings in this sector.
Performance in the energy sector has been difficult for both service- and
drilling-related companies because of the free fall in oil prices. We erred in
retaining our positions in energy because we underestimated how far the price of
oil would drop. At June 30 stock price levels, however, we see signs that
investors are beginning to be attracted to the better valuations among energy
stocks, so we may have reached a bottom.
Healthcare stocks generally performed well during the first half of 1998,
with self-care stocks such as NBTY, TwinLabs and Rexall Sundown moving up. Renal
care companies, which have been long-term holdings in our Fund, also were solid
performers. While not a large weighting, biotechnology stocks made a positive
contribution to Fund performance. Medimmune was especially strong. HBO & Co.
also was a stalwart, although Daou Systems lost ground despite performing in
line with our expectations.
13
<PAGE>
LOOKING AHEAD
The outlook for the second half of 1998 is cloudy. We don't expect any
change in interest rates because the crisis in Asia continues to restrain the
more hawkish Federal Reserve Board members. In addition, there are more signs
that the U.S. economy may be slowing. Inflation remains benign. However, analyst
forecasts of earnings growth look too high to us and far exceed most "top-down"
forecasts for the economy.
We believe that the market will remain choppy and fairly narrow. The high
valuations of stocks allow no margin for earnings estimate errors. Consequently,
we are strongly focused on how well our companies are performing versus the
market's expectations.
While we don't expect the resumption of a small cap bull market anytime
soon, we also see no reason to expect a change in the pattern of alternating
periods of small cap outperformance followed by underperformance, both at fairly
extreme levels.
Thank you for your confidence in our Fund.
- ------------------------
(1) 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.
(2) Russell 2000 Index is an unmanaged index, with dividends reinvested, which
consists of common stocks of 2000 publicly traded U.S. companies. It is a
generally recognized indicator used to measure small company stock
performance in the U.S. stock market. One cannot invest directly in an
index.
(3) Russell 2000 Growth Index is an unmanaged index, with dividends reinvested,
which consists of common stocks included in the Russell 2000 Index.
Companies in this index tend to exhibit higher price to book and
price-earning ratios. It is a generally recognized indicator used to measure
small company growth stock performance in the U.S. stock market. One cannot
invest directly in an index.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN BERGER IPT-SMALL COMPANY GROWTH FUND
VS. RUSSELL 2000 AND COST OF LIVING INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INITIAL INVESTMENT $10,000 VALUE OF SHARES
COST OF LIVING
BERGER IPT-SMALL COMPANY GROWTH FUND RUSSELL 2000 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 $10,256
9/30/97 $12,380 $13,320 $10,313
12/31/97 $12,060 $12,874 $10,320
3/31/98 $13,580 $14,169 $10,377
6/30/98 $13,610 $13,509 $10,416
Berger IPT-Small Company Growth Fund
Average Annual Total Return
As of June 30, 1998
1 Year Since Inception (5/1/96)
31.12% 15.26%
Past performance is not predictive of future
performance.
</TABLE>
14
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ----------------- -------------- ------------
<C> <S> <C> <C>
COMMON STOCK 80.80%
CHEMICALS-SPECIALTY 0.65%
2,000 North American Scientific, Inc.* $ 41,250
------------
COMMERCIAL SERVICES-ADVERTISING 2.13%
2,000 HA-LO Industries, Inc.* 62,250
2,000 Lamar Advertising Company* 71,750
------------
134,000
------------
COMMERCIAL SERVICES-MISCELLANEOUS 1.46%
1,300 CMG Information Services, Inc.* 91,975
------------
COMMERCIAL SERVICES-SCHOOLS 2.23%
3,000 Computer Learning Centers, Inc.* 74,625
3,000 Devry, Inc.* 65,812
------------
140,437
------------
COMMERCIAL SERVICES-STAFFING 3.49%
1,600 AHL Services, Inc.* 63,000
2,550 Labor Ready, Inc.* 76,978
1,500 Personnel Group of America, Inc.* 30,000
1,700 Select Appointments PLC ADR 50,150
------------
220,128
------------
COMPUTER SOFTWARE-DESKTOP 1.49%
4,320 Docucorp International, Inc.* 28,350
3,500 Macromedia, Inc.* 65,406
------------
93,756
------------
COMPUTER SOFTWARE-EDUCATIONAL/ENTERTAINMENT 1.19%
1,400 CBT Group PLC ADR* 74,900
------------
COMPUTER SOFTWARE-ENTERPRISE 3.20%
1,200 Aspen Technology, Inc.* 60,600
600 Mercury Interactive Corporation* 26,775
1,000 Sapient Corporation* 52,750
2,700 TSI International Software Ltd.* 61,762
------------
201,887
------------
COMPUTER SOFTWARE-INTERNET 3.22%
800 Lycos, Inc.* 60,300
1,700 Onsale, Inc.* 42,075
1,500 USWeb Corporation* 35,531
2,600 Verio, Inc.* 64,675
------------
202,581
------------
</TABLE>
15
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ----------------- -------------- ------------
<C> <S> <C> <C>
COMPUTER SOFTWARE-MEDICAL 1.99%
2,000 HBO & Company $ 70,500
2,000 Quadramed Corporation* 54,625
------------
125,125
------------
COMPUTER-LOCAL NETWORKS 1.09%
3,000 Daou Systems, Inc.* 68,625
------------
COMPUTER-SERVICES 6.60%
1,000 Cambridge Technology Partners, Inc.* 54,625
2,200 Ciber, Inc.* 83,600
2,400 Harbinger Corporation* 58,050
3,600 Icon CMT Corporation* 66,600
2,400 Technology Solutions Company* 76,050
1,600 Whittman-Hart, Inc.* 77,400
------------
416,325
------------
COMPUTER SERVICES-INTERNET 0.50%
200 Yahoo, Inc.* 31,500
------------
COSMETICS/PERSONAL CARE 2.31%
2,400 Natures Bounty, Inc.* 44,100
900 Rexall Sundown, Inc.* 31,725
1,600 Twin Lab Corporation* 69,900
------------
145,725
------------
ELECTRONIC-MEASURING INSTRUMENTS 1.12%
1,200 Waters Corporation* 70,725
------------
ELECTRONIC-MISCELLANEOUS COMPONENTS 0.41%
1,000 SLI, Inc.* 26,125
------------
ELECTRONIC-PARTS DISTRIBUTORS 0.29%
1,000 Kent Electronics Corporation* 18,312
------------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 1.10%
600 ETEC Systems, Inc.* 21,112
2,600 Integrated Process Equipment Co.* 29,250
1,100 PRI Automation, Inc.* 18,768
------------
69,130
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 1.10%
1,600 Maxim Integrated Products, Inc.* 50,700
600 Vitesse Semiconductor Corporation* 18,525
------------
69,225
------------
FINANCE-CONSUMER/COMMERCIAL LOANS 1.91%
1,700 Safeguard Scientifics, Inc.* 70,868
1,900 Sirrom Capital Corporation 49,400
------------
120,268
------------
</TABLE>
16
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ----------------- -------------- ------------
<C> <S> <C> <C>
FINANCE-INVESTMENT MANAGEMENT 0.88%
1,500 Affiliated Managers Group, Inc.* $ 55,687
------------
FINANCE-MORTGAGE RELATED SERVICES 0.98%
2,100 Resource America, Inc. 62,212
------------
FINANCIAL SERVICES-MISCELLANEOUS 1.39%
2,000 Nova Corporation* 71,500
500 Pre-Paid Legal Services, Inc.* 15,781
------------
87,281
------------
HOUSEHOLD/OFFICE FURNITURE 1.45%
1,500 CompX International Inc.* 32,437
2,000 Knoll, Inc.* 59,000
------------
91,437
------------
INSURANCE-ACCIDENT & HEALTH 0.63%
2,000 Healthcare Recoveries, Inc.* 39,500
------------
MEDIA-RADIO/TV 7.04%
2,100 Chancellor Media Corporation* 104,278
700 Clear Channel Communications, Inc.* 76,387
2,100 Cox Radio, Inc.* 90,825
1,200 Emmis Broadcasting Corporation* 57,375
1,500 Heftel Broadcasting Corporation* 67,125
1,600 Scandinavian Broadcasting Systems S.A.* 48,300
------------
444,290
------------
MEDICAL-BIOMEDICAL/GENETICS 0.90%
200 Incyte Pharmaceuticals, Inc.* 6,825
800 Medimmune, Inc.* 49,900
------------
56,725
------------
MEDICAL/DENTAL/SERVICES 2.27%
1,800 Boron Lepore and Associates* 68,400
1,700 Renal Care Group, Inc.* 74,906
------------
143,306
------------
MEDICAL/DENTAL/SUPPLIES 0.24%
400 Omnicare, Inc. 15,250
------------
MEDICAL-DRUGS/DIVERSIFIED 1.02%
3,000 Shire Pharmaceuticals Group ADR* 64,125
------------
MEDICAL-ETHICAL DRUGS 1.88%
1,600 Jones Pharma, Inc. 53,000
2,500 Theragenics Corporation* 65,156
------------
118,156
------------
</TABLE>
17
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ----------------- -------------- ------------
<C> <S> <C> <C>
MEDICAL-INSTRUMENTS 0.67%
1,700 IDEXX Laboratories, Inc.* $ 42,287
------------
MEDICAL-OUTPATIENT/HOME CARE 1.10%
2,000 Total Renal Care Holdings, Inc.* 69,000
------------
OFFICE-EQUIPMENT & AUTOMATION 0.81%
2,000 Daisytek International Corporation* 50,875
------------
OIL & GAS-DRILLING 0.63%
1,000 Atwood Oceanics, Inc.* 39,812
------------
OIL & GAS-FIELD SERVICES 1.90%
1,500 B.J. Services Co.* 43,593
3,700 Paradigm Geophysical Ltd.* 26,015
1,000 Veritas DGC, Inc.* 49,937
------------
119,545
------------
OIL & GAS-MACHINERY/EQUIPMENT 0.63%
2,000 Varco International, Inc.* 39,625
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 1.00%
1,000 Ocean Energy Inc.* 19,562
2,700 Swift Energy Company* 43,031
------------
62,593
------------
POLLUTION CONTROL-SERVICES 4.81%
2,200 Allied Waste Industries, Inc.* 52,800
1,100 American Disposal Services, Inc.* 51,562
2,400 Eastern Environmental Services, Inc.* 81,600
4,000 Newpark Resources, Inc.* 44,500
3,000 Tetra Tech, Inc.* 72,750
------------
303,212
------------
REAL ESTATE OPERATIONS 0.61%
2,000 Fairfield Communities, Inc.* 38,375
------------
RETAIL-APPAREL/SHOE 3.76%
2,400 Just For Feet, Inc.* 68,400
2,500 K & G Men's Center, Inc.* 56,562
1,650 Men's Wearhouse, Inc.* 54,450
1,650 Pacific Sunwear of California, Inc.* 57,750
------------
237,162
------------
RETAIL-HOME FURNISHINGS 0.80%
1,700 Cost Plus, Inc.* 50,575
------------
RETAIL-MAIL ORDER & DIRECT 0.37%
700 Black Box Corporation* 23,231
------------
</TABLE>
18
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ----------------- -------------- ------------
<C> <S> <C> <C>
RETAIL-MISCELLANEOUS/DIVERSIFIED 0.41%
1,700 Cash America International, Inc. $ 25,925
------------
RETAIL-SUPER/MINI MARKETS 0.72%
1,500 Wild Oats Markets, Inc.* 45,562
------------
TELECOMMUNICATIONS-EQUIPMENT 3.51%
1,500 ADTRAN, Inc.* 39,187
3,000 Antec Corporation* 69,562
3,500 Pairgain Technologies, Inc.* 61,031
1,700 World Access, Inc.* 51,000
------------
220,780
------------
TELECOMMUNICATIONS-SERVICES 2.91%
1,700 ICG Communications, Inc.* 62,156
1,500 Metromedia Fiber Network, Inc.* 69,937
1,200 Winstar Communications, Inc.* 51,541
------------
183,634
------------
TOTAL COMMON STOCK (COST $4,337,686) 5,092,161
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 15.84%
$250,000 Federal Home Loan Mortgage Corporation
Discount Note-5.45%, 7/24/98 249,129
250,000 Federal National Mortgage Association
Discount Note-5.50%, 7/7/98 249,770
500,000 Federal National Mortgage Association
Discount Note-5.44%, 7/13/98 499,093
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $997,992) 997,992
------------
REPURCHASE AGREEMENT 4.43%
$279,000 Repurchase agreement with State Street
Bank, 5.60% dated June 30, 1998, to be
repurchased at $279,043 on July 1, 1998,
collateralized by U.S. Treasury Note,
7.25% - May 5, 2016, with a value of
$287,837 279,000
------------
TOTAL REPURCHASE AGREEMENT (COST $279,000) 279,000
------------
TOTAL INVESTMENTS (COST $5,614,678)** 101.07% 6,369,153
TOTAL LIABILITIES, LESS CASH AND OTHER ASSETS -1.07% (67,609)
------------
NET ASSETS 100.00% $6,301,544
------------
------------
</TABLE>
- ------------------------
* Non-income producing security.
** The cost of investments for federal tax purposes amounts to $5,614,678.
PLC -- Public Limited Company.
ADR -- American Depository Receipts.
See notes to financial statements.
19
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
PORTFOLIO MANAGERS' COMMENTARY BANK OF IRELAND ASSET MANAGEMENT (U.S.) LTD.
PERFORMANCE
The Berger/BIAM IPT-International Fund (the "Fund") had a total return of
16.14%(1) for the six-month period ended June 30, 1998, compared with 16.08% for
the MSCI EAFE Index.(2)
Stocks in the Growth in Telecommunications theme were the biggest
contributors to the portfolio. German-quoted Mannesmann led the charge of
telecommunications-related stocks on the strength of ever-increasing earnings
attributable to massive expansion of its customer base. British mobile phone
operator Vodafone also is benefiting from the increasing cellular penetration
around the world, recording new customer growth for the third consecutive
quarter.
There was also good news from stocks in the Leading Consumer Franchises
theme. Nestle, the world's largest food company, announced a 6.2% sales increase
for the first four months of 1998. Analysts are predicting that Nestle will reap
substantial cost savings from some recent acquisitions that will drive future
profit growth. Cadbury Schweppes, aided by rising beverage sales and recent
acquisitions of two U.S. bottlers, continued its good 1998 performance.
European financial stocks have been the linchpins of the strong equity
market performance for the past two years, driven by prospects for continued
economic recovery, low interest rates and investor expectations of further
consolidation in the overbanked European region. Banco de Santander, whose
decision to acquire another Spanish bank was greeted very positively by the
market, was a portfolio stand-out.
Stocks in Healthcare Needs had a good first quarter, led by Zeneca. Other
portfolio holdings that did well during the quarter included Swiss Reinsurance,
Hoechst and ING Groep.
For the fourth consecutive quarter, most of the portfolio's negative
contribution came from stocks either quoted in Asia or those with significant
earnings exposure to Asia. Topping the list of disappointments were stocks in
the Expanding Financial Services in Developing Markets theme, which include
Development Bank of Singapore and Mexico's Grupo Financiero Banamex.
PERIOD IN REVIEW
UK equities began the year strongly, powered ahead and fell back in May,
although the mid cap sector continued to outperform large cap stocks.
Peripheral European markets were the biggest gainers early in the year,
aided by satisfactory corporate earnings announcements and prospects of further
merger and acquisition activity. Interest rate fears resulted in a mixed start
to the second quarter, however, May was a strong month for continental European
equity markets with Germany and Italy leading the way. Economic activity in
Germany remained strong during June, but there were signs that this strength was
somewhat abating.
The Japanese market fell back during March, and this decline was exacerbated
for U.S. investors by the fact that the yen continued to weaken against the
dollar.
Asian markets rebounded during February, helped significantly by a degree of
currency strength, a decline in interest rates and some strong capital flows
from U.S. investors. The majority of the year's gains were erased during April
as markets moved lower, led by Indonesia and Hong Kong. Asian markets continued
their downward spiral during June, dragged down by weaker currencies, falling
property prices and an ever-rising number of nonperforming loans in the
financial sector.
20
<PAGE>
LOOKING AHEAD
European economies remain on the recovery track and industrial production is
growing strong, particularly in Spain, France and the Netherlands. The recovery
in the German domestic economy continues, and consumer and business confidence
is buoyant. On the negative side, however, inflation in the Netherlands during
the quarter was somewhat disappointing, and order books also dipped across the
European Union. Notwithstanding this, Europe continues to be the beneficiary of
global cash flows. International fund managers have cut back their allocations
to Asia, and as result, Europe is acting as a magnet for this surplus liquidity.
Asia remains mired in turmoil, and performance there has been dragged down
by weaker currencies, falling property prices and an ever-rising number of
nonperforming loans in the financial sector. Investors will be closely watching
Japan to see what changes, if any, are implemented in the aftermath of July
elections. The big news concerning Japan during June was the intervention by the
U.S. in the currency markets in a move aimed at bolstering the yen. Expectations
of a resolution to Japan's banking problem and some further tax cuts pushed
Japan's equity market up toward the end of June. The current raft of mergers and
acquisitions, together with ongoing corporate restructuring, gives us cause for
optimism about Japan on a company-by-company basis. However, we will remain very
selective in our approach to the rest of Asia for the medium term.
Our outlook for international equity markets remains much as it was at the
start of 1998. Our focus remains primarily on European-quoted companies,
particularly in the telecommunications, pharmaceutical and financial sectors. We
believe that, in the short-term, these companies are best poised to benefit from
improved earnings and the convergence of valuations in the forthcoming
single-currency environment.
Thank you for your confidence in our Fund.
- ------------------------
(1) 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.
(2) The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index. One cannot invest directly
in an index.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN BERGER/BIAM IPT-INTERNATIONAL FUND
VS. EAFE AND COST OF LIVING INDEX
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INITIAL INVESTMENT $10,000 VALUE OF SHARES
BERGER IPT-INTERNATIONAL COST OF LIVING
FUND EAFE INDEX
<S> <C> <C> <C>
5/1/97 $10,000 $10,000 $10,000
6/30/97 $10,170 $11,238 $10,006
9/30/97 $10,300 $11,159 $10,062
12/31/97 $9,790 $10,285 $10,069
3/31/98 $11,100 $11,798 $10,125
6/30/98 $11,370 $11,923 $10,162
Berger IPT-International Fund
Average Annual Total Return
As of June 30, 1998
1 Year Since Inception (5/1/97)
11.80% 11.60%
Past performance is not predictive of future
performance.
</TABLE>
21
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY/SHARES COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
COMMON STOCK 92.55%
AUSTRALIA 4.70%
5,850 National Australia Bank, Ltd. Commercial Banks & Other Banks $ 77,130
11,832 News Corporation Ltd. Media 96,530
9,750 Telstra Corporation Ltd.* Utilities 24,985
--------------
198,645
--------------
CANADA 0.57%
400 Royal Bank Of Canada Commercial Banks & Other Banks 24,108
--------------
DENMARK 0.39%
175 Tele Danmark Utilities 16,771
--------------
FRANCE 6.08%
218 Alcatel Alsthom Computer/Commercial/Office Equipment 44,276
390 AXA-UAP Insurance-Multi/Property/Casualty 43,755
630 Michelin Auto Components 36,276
610 Total S.A. Oil 79,107
250 Vivendi Diversified Holding Companies 53,251
--------------
256,665
--------------
GERMANY 8.87%
31 Bayerische Motoren Werke (BMW) Automobiles 30,969
520 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 44,004
1,100 Hoechst A.G. Chemicals 55,212
1,620 Mannesmann A.G. Machinery & Engineering Services 166,211
760 Veba A.G. Diversified Industrials 51,009
39 Viag A.G. Utilities 26,790
--------------
374,195
--------------
HONG KONG 1.16%
2,000 HSBC Holdings PLC Commercial Banks & Other Banks 48,922
--------------
IRELAND 0.12%
1,660 Smurfit (Jefferson) Group Forestry & Paper Products 4,926
--------------
ITALY 1.77%
1,123 ENI S.p.A. Oil 7,346
9,150 Telecom Italia S.p.A. Utilities 67,234
--------------
74,580
--------------
</TABLE>
22
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY/SHARES COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
JAPAN 12.35%
5,000 Canon, Inc. Computer/Commercial/Office Equipment $ 113,183
2,000 Dai Nippon Printing Co., Ltd. Media 31,835
2,000 Honda Motor Co., Ltd. Automobiles 70,999
3,000 Kao Corporation Food & Grocery Products 46,135
200 Keyence Corporation Electronics & Instruments 21,702
1,000 Murata Manufacturing Co., Ltd. Electronics & Instruments 32,338
2,000 Shiseido Co., Ltd.+ Health & Personal Care 22,651
1,200 Sony Corporation+ Household Durables & Appliances 103,050
3,000 Takeda Chemical Industries+ Health & Personal Care 79,551
--------------
521,444
--------------
MALAYSIA 0.15%
2,000 Hume Industries Bhd Construction & Building Materials 1,509
7,000 Sime Darby Bhd Diversified Holding Companies 4,841
--------------
6,350
--------------
MEXICO 0.32%
7,150 Grupo Financiero Banamex
Accival* Commercial Banks & Other Banks 13,569
--------------
NETHERLANDS 9.38%
1,425 ABN-Amro Holdings N.V. Commercial Banks & Other Banks 33,278
845 Ahold N.V. Retail Trade 27,071
2,050 Elsevier N.V. Media 30,876
2,655 ING Groep N.V. Insurance-Multi/Property/Casualty 173,504
1,065 Koninklijke PTT Utilities 40,912
625 Numico Food Manufacturing 19,532
790 Royal Dutch Petroleum Oil 43,719
1,065 TNT Post Group N.V.* Utilities 27,170
--------------
396,062
--------------
PHILIPPINES 0.16%
5,000 San Miguel Corporation Class B Beverage Industry/Tobacco Manufacturing 6,594
--------------
PORTUGAL 0.25%
450 Electricidade de Portugal S.A. Utilities 10,439
--------------
SINGAPORE 1.97%
6,000 City Developments, Ltd. Real Estate 16,792
6,200 Development Bank of Singapore,
Ltd. Commercial Banks & Other Banks 34,372
3,000 Fraser & Neave, Ltd. Beverage Industry/Tobacco Manufacturing 8,075
3,552 Singapore Press Holdings, Ltd. Media 23,799
--------------
83,038
--------------
SPAIN 1.86%
2,890 Banco de Santander Commercial Banks & Other Banks 73,907
100 Telefonica S.A. Utilities 4,619
--------------
78,526
--------------
</TABLE>
23
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1998
<TABLE>
<CAPTION>
PERCENT OF
COUNTRY/SHARES COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
SWITZERLAND 12.29%
29 Alusuisse Lonza Holdings Group
A.G. Fabricated Metal Products $ 36,719
58 Nestle S.A. Food & Grocery Products 123,901
74 Novartis Health & Personal Care 122,919
5 Roche Holding A.G. Health & Personal Care 49,012
45 Schweizerische
Rueckversicherungs+ Insurance-Multi/Property/Casualty 113,603
195 Union Bank of Switzerland*+ Commercial Banks & Other Banks 72,379
--------------
518,533
--------------
THAILAND 0.26%
9,000 Bangkok Bank PLC Commercial Banks & Other Banks 11,116
--------------
UNITED KINGDOM 29.90%
11,750 B.A.T. Industries PLC Diversified Industrials 117,551
4,150 Barclays Bank PLC Commercial Banks & Other Banks 119,572
4,500 Cable & Wireless PLC Utilities 54,624
3,050 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 47,168
5,930 Diageo Ordinary PLC* Beverage Industry/Tobacco Manufacturing 70,202
3,525 Glaxo Wellcome PLC Health & Personal Care 105,737
5,050 Granada Group PLC Entertainment/Leisure/Toys 92,792
1,780 Kingfisher PLC Retail Trade 28,640
6,574 Ladbroke Group PLC Entertainment/Leisure/Toys 36,063
6,270 Lloyds TSB Group PLC Commercial Banks & Other Banks 87,661
980 National Westminster Bank PLC Commercial Banks & Other Banks 17,500
6,475 Prudential Corporation PLC Insurance-Life & Agents/Brokers 85,237
5,500 Safeway PLC Retail Trade 35,995
1,550 Scottish Power PLC Utilities 13,568
10,690 Shell Transport & Trading
Company Oil 75,219
3,200 Siebe PLC Machinery & Engineering Services 63,868
4,150 TI Group PLC Machinery & Engineering Services 31,484
7,250 Vodafone Group PLC Utilities 91,934
2,030 Zeneca Group PLC+ Health & Personal Care 87,097
--------------
1,261,912
--------------
TOTAL COMMON STOCK (COST $3,433,865) 3,906,395
--------------
UNITED STATES
REPURCHASE AGREEMENT 4.69%
Repurchase agreement with State Street Bank, 5.60% dated June 30, 1998, to be
$ 198,000 repurchased at $198,031 on July 1, 1998, collatoralized by U.S. Federal Home Loan
Bank Bond, 5.75% - May 12, 2002, with a value of $206,315. 198,000
--------------
TOTAL REPURCHASE AGREEMENT (COST $198,000) 198,000
--------------
TOTAL INVESTMENTS (COST $3,631,865)** 97.24% 4,104,395
TOTAL CASH AND OTHER ASSETS, LESS LIABILITIES 2.76% 116,429
--------------
NET ASSETS 100.00% $4,220,824
--------------
--------------
</TABLE>
- ------------------------
* Non-income producing security.
**The cost of investments for federal tax purposes amounts to $3,631,865.
+ Security has been designated as collateral for forward foreign currency
contracts.
See notes to financial statements.
24
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
BERGER BERGER IPT- BERGER/BIAM
BERGER IPT-GROWTH & SMALL COMPANY IPT-INTERNATIONAL
IPT-100 FUND INCOME FUND GROWTH FUND FUND
------------ ------------- -------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at cost.............................................. $ 2,511,437 $ 5,145,483 $ 5,614,678 $ 3,631,865
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
Investments, at value............................................. $ 2,574,327 $ 5,526,368 $ 6,369,153 $ 4,104,395
Cash.............................................................. 75,681 -- 96,571 240,829
Foreign cash (Cost-IPT-International $22,053)..................... -- -- -- 21,970
Receivables
Investment securities sold...................................... 43,962 544,639 22,517 --
Fund shares sold................................................ 16,738 10,853 159,792 3,715
Dividends....................................................... 782 3,059 88 13,163
Interest........................................................ 19 1,905 43 31
Due from management company..................................... 4,987 3,403 6,658 7,461
Forward currency contracts........................................ -- -- -- 6,781
------------ ------------- -------------- ----------------
TOTAL ASSETS........................................................ 2,716,496 6,090,227 6,654,822 4,398,345
------------ ------------- -------------- ----------------
LIABILITIES
Payables
Investment securities purchased................................. 29,270 46,974 338,344 157,718
Fund shares redeemed............................................ 462 -- 253 --
Accrued investment advisory fees.................................. 1,579 3,657 3,802 2,941
Accrued custodian and accounting fees............................. 4,752 4,775 5,074 6,250
Accrued transfer agent fees....................................... 1,379 1,147 1,692 1,905
Accrued audit fees................................................ 4,841 4,841 3,841 8,202
Accrued administrative service fees............................... 21 49 42 32
Accrued shareholder reports....................................... 136 102 230 473
Other accrued liabilities......................................... -- 7,557 -- --
------------ ------------- -------------- ----------------
TOTAL LIABILITIES................................................... 42,440 69,102 353,278 177,521
------------ ------------- -------------- ----------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $ 2,674,056 $ 6,021,125 $ 6,301,544 $ 4,220,824
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
CAPITAL SHARES
Authorized (Par Value $0.01)...................................... Unlimited Unlimited Unlimited Unlimited
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
Shares Outstanding................................................ 217,283 400,707 462,887 371,206
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............ $ 12.31 $ 15.03 $ 13.61 $ 11.37
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
BERGER BERGER BERGER IPT- BERGER/BIAM
IPT-100 IPT-GROWTH & SMALL COMPANY IPT-INTERNATIONAL
FUND INCOME FUND GROWTH FUND FUND
---------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends......................................................... $ 4,838 $ 13,067 $ 1,824 $ 41,808
Interest.......................................................... 9,486 23,775 22,787 5,629
Foreign tax withholding........................................... -- -- -- (5,330)
---------- ------------- -------------- --------
Total income.................................................... 14,324 36,842 24,611 42,107
---------- ------------- -------------- --------
EXPENSES
Investment advisory fees.......................................... 7,823 12,262 19,550 15,401
Administrative services fee....................................... 104 163 217 171
Accounting fees................................................... 7,542 7,542 7,541 4,690
Custodian fees.................................................... 5,355 7,936 5,596 13,829
Transfer agent fees............................................... 4,984 4,320 5,815 4,414
Audit fees........................................................ 4,091 4,091 4,093 5,704
Legal fees........................................................ 1,475 2,454 3,678 2,796
Trustees' fees and expenses....................................... 213 199 443 354
Reports to shareholders........................................... 981 922 5,749 2,739
---------- ------------- -------------- --------
TOTAL EXPENSES...................................................... 32,568 39,889 52,682 50,098
---------- ------------- -------------- --------
Less expenses reimbursed by advisor............................... (22,127) (23,539) (27,658) (29,587)
Less fees paid indirectly......................................... (147) (23) -- --
Less earnings credits............................................. (385) (439) (258) (1,078)
---------- ------------- -------------- --------
Total expenses, net............................................... 9,909 15,888 24,766 19,433
---------- ------------- -------------- --------
NET INVESTMENT INCOME (LOSS).................................... 4,415 20,954 (155) 22,674
---------- ------------- -------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency
transactions...................................................... 58,823 (12,745) (76,311) (73,364)
Net change in unrealized appreciation (depreciation) on securities
and foreign currency transactions................................. 58,734 267,995 580,064 537,769
---------- ------------- -------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS................................................ 117,557 255,250 503,753 464,405
---------- ------------- -------------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 121,972 $ 276,204 $ 503,598 $ 487,079
---------- ------------- -------------- --------
---------- ------------- -------------- --------
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BERGER IPT-GROWTH & INCOME
BERGER IPT-100 FUND FUND
-------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED 6/30/98 YEAR ENDED ENDED 6/30/98 YEAR ENDED
(UNAUDITED) 12/31/97 (UNAUDITED) 12/31/97
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ 4,415 $ 3,505 $ 20,954 $ 9,021
Net realized gain (loss) on securities
and foreign currency transactions... 58,823 81,346 (12,745) 46,735
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 58,734 (23,122) 267,995 80,868
------------- ---------- ------------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Operations.............. 121,972 61,729 276,204 136,624
------------- ---------- ------------- ----------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................. -- (4,291) -- (10,988)
Net realized gains on investments..... -- (66,421) -- (41,693)
In excess of net realized gains on
investments......................... -- -- -- (1,809)
------------- ---------- ------------- ----------
Net Decrease in Net Assets from
Dividends and Distributions to
Shareholders........................... -- (70,712) -- (54,490)
------------- ---------- ------------- ----------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold............... 1,932,147 901,641 4,623,171 1,091,415
Net asset value of shares issued in
reinvestment of distributions.......... -- 70,710 -- 54,489
Payments for shares redeemed............ (613,955) (60,772) (379,368) (71,293)
------------- ---------- ------------- ----------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions... 1,318,192 911,579 4,243,803 1,074,611
------------- ---------- ------------- ----------
Net Increase (Decrease) in Net Assets... 1,440,164 902,596 4,520,007 1,156,745
NET ASSETS
Beginning of period..................... 1,233,892 331,296 1,501,118 344,373
------------- ---------- ------------- ----------
End of period........................... $2,674,056 $1,233,892 $6,021,125 $1,501,118
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $2,547,945 $1,229,753 $5,632,725 $1,388,922
Undistributed net investment income
(loss)................................. 4,562 147 22,232 1,278
Undistributed net realized gain (loss)
from investments....................... 58,659 (164) (14,717) (1,972)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 62,890 4,156 380,885 112,890
------------- ---------- ------------- ----------
Total................................. $2,674,056 $1,233,892 $6,021,125 $1,501,118
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 153,214 77,915 314,538 82,469
Shares issued to shareholders in
reinvestment of distributions.......... -- 6,664 -- 4,280
Shares repurchased...................... (47,016) (5,379) (25,920) (5,575)
------------- ---------- ------------- ----------
Net Increase (Decrease) in Shares....... 106,198 79,200 288,618 81,174
Shares outstanding, beginning of
period................................. 111,085 31,885 112,089 30,915
------------- ---------- ------------- ----------
Shares Outstanding, End of Period....... 217,283 111,085 400,707 112,089
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BERGER IPT-SMALL COMPANY BERGER/BIAM
GROWTH FUND IPT-INTERNATIONAL FUND
----------------------------- -----------------------------
FOR THE
PERIOD FROM
SIX MONTHS SIX MONTHS MAY 1, 1997*
ENDED 6/30/98 YEAR ENDED ENDED 6/30/98 TO DECEMBER
(UNAUDITED) 12/31/97 (UNAUDITED) 31, 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income (loss).......... $ (155) $ 610 $ 22,674 $ 12,844
Net realized gain (loss) on securities
and foreign currency transactions... (76,311) (73,776) (73,364) 4,516
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 580,064 153,881 537,769 (58,827)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations.............. 503,598 80,715 487,079 (41,467)
------------- ------------- ------------- -------------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................. -- -- -- --
Net realized gains on investments..... -- -- -- --
------------- ------------- ------------- -------------
Net Decrease in Net Assets from
Dividends and Distributions to
Shareholders........................... -- -- -- --
------------- ------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold............... 5,146,897 5,788,243 1,092,341 2,827,321
Net asset value of shares issued in
reinvestment of distributions.......... -- -- -- --
Payments for shares redeemed............ (2,068,510) (3,440,761) (64,427) (80,023)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions... 3,078,387 2,347,482 1,027,914 2,747,298
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets... 3,581,985 2,428,197 1,514,993 2,705,831
NET ASSETS
Beginning of period..................... 2,719,559 291,362 2,705,831 --
------------- ------------- ------------- -------------
End of period........................... $6,301,544 $ 2,719,559 $4,220,824 $2,705,831
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $5,720,427 $ 2,642,040 $3,775,212 $2,747,298
Undistributed net investment income
(loss)................................. 865 1,020 62,940 40,266
Undistributed net realized gain (loss)
from investments....................... (174,223) (97,912) (96,270) (22,906)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 754,475 174,411 478,942 (58,827)
------------- ------------- ------------- -------------
Total................................. $6,301,544 $ 2,719,559 $4,220,824 $2,705,831
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 395,588 494,997 100,855 284,348
Shares issued to shareholders in
reinvestment of distributions.......... -- -- -- --
Shares repurchased...................... (158,173) (298,793) (6,030) (7,967)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Shares....... 237,415 196,204 94,825 276,381
Shares outstanding, beginning of
period................................. 225,472 29,268 276,381 --
------------- ------------- ------------- -------------
Shares Outstanding, End of Period....... 462,887 225,472 371,206 276,381
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
- ------------------------
* Commencement of investment operations.
See notes to financial statements.
28
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
BERGER IPT-100 FUND BERGER IPT-GROWTH & INCOME FUND
------------------------------------------------------ ------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED JUNE ENDED JUNE
30, 1998 YEAR ENDED PERIOD ENDED 30, 1998 YEAR ENDED PERIOD ENDED
(UNAUDITED) DECEMBER 31, 1997 DECEMBER 31, 1996(1) (UNAUDITED) DECEMBER 31, 1997 DECEMBER 31, 1996(1)
------------- ----------------- -------------------- ------------- ----------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............. $ 11.11 $ 10.39 $ 10.00 $ 13.39 $ 11.14 $ 10.00
------------- ----------------- -------- ------------- ----------------- --------
Income from
investment
operations
Net investment
income (loss)... 0.02 0.01 0.03 0.04 0.01 0.10
Net realized and
unrealized gains
(losses) from
investments..... 1.18 1.39 0.36 1.60 2.75 1.04
------------- ----------------- -------- ------------- ----------------- --------
Total from
investment
operations......... 1.20 1.40 0.39 1.64 2.76 1.14
------------- ----------------- -------- ------------- ----------------- --------
Less dividends and
distributions
Dividends (from
net investment
income)......... -- (0.04) -- -- (0.10) --
Distributions
(from capital
gains).......... -- (0.64) -- -- (0.39) --
Distributions in
excess of
capital gains... -- -- -- -- (0.02) --
------------- ----------------- -------- ------------- ----------------- --------
Total dividends and
distributions...... -- (0.68) -- -- (0.51) --
------------- ----------------- -------- ------------- ----------------- --------
Net asset value, end
of period.......... $ 12.31 $ 11.11 $ 10.39 $ 15.03 $ 13.39 $ 11.14
------------- ----------------- -------- ------------- ----------------- --------
------------- ----------------- -------- ------------- ----------------- --------
Total return........ 10.80% 13.76% 3.90% 12.25% 24.99% 11.40%
------------- ----------------- -------- ------------- ----------------- --------
------------- ----------------- -------- ------------- ----------------- --------
Ratios/Supplemental
Data:
Net assets, end of
period.......... $2,674,056 $1,233,892 $331,296 $6,021,125 $1,501,118 $344,373
Net expense ratio
to average net
assets.......... 0.95%(2) 0.88% 0.93%(2) 0.97%(2) 0.87% 0.94%(2)
Ratio of net
income (loss) to
average net
assets.......... 0.42%(2) 0.51% 0.50%(2) 1.28%(2) 1.39% 1.80%(2)
Gross expenses to
average net
assets(3)....... 3.12%(2) 9.18% 7.69%(2) 2.44%(2) 9.62% 7.70%(2)
Portfolio turnover
rate............ 141% 246% 56% 181% 215% 60%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Annualized.
3. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earnings credits. If such earnings credits and voluntary
fee reductions had not occurred, the ratios would have been as indicated.
Gross and net expenses do not include the deduction of any charges
attributable to any variable insurance contract.
See notes to financial statements.
29
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
BERGER IPT-SMALL COMPANY GROWTH FUND
--------------------------------------------------------
SIX MONTHS
ENDED JUNE
30, 1998 YEAR ENDED PERIOD ENDED
(UNAUDITED) DECEMBER 31, 1997 DECEMBER 31, 1996(1)
------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of
period....................... $ 12.06 $ 9.95 $ 10.00
------------- ----------------- --------
Income from investment
operations
Net investment income
(loss).................... (0.01) -- 0.01
Net realized and unrealized
gains (losses) from
investments............... 1.56 2.11 (0.06)
------------- ----------------- --------
Total from investment
operations................... 1.55 2.11 (0.05)
------------- ----------------- --------
Less dividends and
distributions
Dividends (from net
investment income)........ -- -- --
Distributions (from capital
gains).................... -- -- --
------------- ----------------- --------
Total dividends and
distributions................ -- -- --
------------- ----------------- --------
Net asset value, end of
period....................... $ 13.61 $ 12.06 $ 9.95
------------- ----------------- --------
------------- ----------------- --------
Total return.................. 12.85% 21.21% (0.50%)
------------- ----------------- --------
------------- ----------------- --------
Ratios/Supplemental Data:
Net assets, end of period... $6,301,544 $2,719,559 $291,362
Net expense ratio to average
net assets................ 1.14%(2) 1.06% 0.95%(2)
Ratio of net income (loss)
to average net assets..... (0.01%)(2) 0.05% 0.14%(2)
Gross expenses to average
net assets(3)............. 2.42%(2) 5.81% 8.57%(2)
Portfolio turnover rate..... 59% 194% 80%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Annualized.
3. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earnings credits. If such earnings credits and voluntary
fee reductions had not occurred, the ratios would have been as indicated.
Gross and net expenses does not include the deduction of any charges
attributable to any variable insurance contract.
See notes to financial statements.
30
<PAGE>
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
BERGER/BIAM
IPT-INTERNATIONAL FUND
------------------------------
SIX MONTHS
ENDED JUNE PERIOD ENDED
30, 1998 DECEMBER 31,
(UNAUDITED) 1997(1)
----------- -----------------
<S> <C> <C>
Net asset value, beginning of period.......................................... $ 9.79 $ 10.00
----------- -----------------
Income from investment operations
Net investment income (loss)................................................ 0.02 0.05
Net realized and unrealized gains (losses) from investments................. 1.56 (0.26)
----------- -----------------
Total from investment operations.............................................. 1.58 (0.21)
----------- -----------------
Less dividends and distributions
Dividends (from net investment income)...................................... -- --
Distributions (from capital gains).......................................... -- --
----------- -----------------
Total dividends and distributions............................................. -- --
----------- -----------------
Net asset value, end of period................................................ $ 11.37 $ 9.79
----------- -----------------
----------- -----------------
Total return.................................................................. 16.14% (2.10%)
----------- -----------------
----------- -----------------
Ratios/Supplemental Data:
Net assets, end of period................................................... $4,220,824 $2,705,831
Net expense ratio to average net assets..................................... 1.14%(2) 0.98%(2)
Ratio of net income (loss) to average net assets............................ 1.32%(2) 0.86%(2)
Gross expenses to average net assets(3)..................................... 2.93%(2) 3.83%(2)
Portfolio turnover rate..................................................... 11% 14%
</TABLE>
- ------------------------------
1. For the period from May 1, 1997 (commencement of investment operations) to
December 31, 1997.
2. Annualized.
3. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earnings credits. If such earnings credits and voluntary
fee reductions had not occurred, the ratios would have been as indicated.
Gross and net expenses does not include the deduction of any charges
attributable to any variable insurance contract.
See notes to financial statements.
31
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
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 IPT-International which commenced
investment operations on May 1, 1997.
The Trust is registered under the Investment Company Act of 1940 and its
shares are registered under the Securities Act of 1933. 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 IPT-SCG and by BBOI
Worldwide LLC ("BBOI"), the investment advisor to IPT-International.
On April 15, 1996, Berger purchased 25,000 shares of each of 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, 1998,
Berger, directly or indirectly, owned 12%, 6%, 5% and 54% 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.
The Funds are permitted to hold certain types of futures, forwards and
options (except for IPT-International, which may only hold forward foreign
currency exchange contracts) for the purpose of hedging the fund 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 Fund's 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 Gains (Losses) from Securities
and Foreign Currency Transactions in the Statements of Operations.
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.
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
Funds 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
32
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
securities will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the trustees.
CALCULATION OF NET ASSET VALUE
The per share calculation of net asset value is determined by dividing the
total value of assets, less liabilities, by total number of shares outstanding.
FEDERAL INCOME TAXES
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code (the "Code") applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no income tax
provision is required.
Dividends received by shareholders of the Funds which are derived from
foreign source income and foreign taxes paid by the Funds are to be treated, to
the extent allowable under the Code, as if received and paid by the shareholders
of the Fund.
FOREIGN CURRENCY TRANSLATION
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 is recorded on the ex-dividend date, except
if the ex-dividend date has passed, certain dividends from foreign securities
are reported as soon as the fund is informed of the ex-dividend date. Interest
income is recorded on the accrual basis and includes amortization of discounts
and premiums. Gains and losses are computed on the identified cost basis for
both financial statement and Federal income tax purposes for all securities.
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 IPT-100, IPT-G&I and IPT-SCG and
BBOI serves as the investment advisor to IPT-International. Berger and Bank of
Ireland Asset Management (U.S.) Limited ("BIAM") each own 50% of BBOI. BBOI has
delegated the day-to-day portfolio management of IPT-International to 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-
33
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
2. AGREEMENTS (CONTINUED)
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
sub-advisory fees have been voluntarily waived by BIAM for the period from May
1, 1997 to October 15, 2000. 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 both IPT-100 and IPT-G&I, 1.15% of the average daily
net assets of IPT-SCG and 1.20% of the average daily net assets of
IPT-International.
IPT-100, IPT-G&I and IPT-SCG have entered into administrative services
agreements 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. 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 IPT-International.
Berger has voluntarily waived such sub-administration fee for the period from
May 1, 1997 to October 15, 2000.
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, and 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.
DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common
ownership, provides shareholder accounting services to the Funds. DST
Securities, Inc., a wholly owned subsidiary of DST, is designated as an
introductory broker on certain portfolio transactions. The Funds receive an
amount equal to the brokerage commissions paid to DST Securities, Inc. as
credits against transfer agent fees and expenses. For the six months ended June
30, 1998, the IPT-100 earned $147 and IPT-G&I earned $23 of brokerage credits.
The IPT-SCG and IPT-International earned no credits during such period.
Certain officers and directors of Berger and BBOI are also officers and
trustees of the Trust. Trustees who are not affiliated with Berger or BBOI
received trustees' fees totaling $213, $199, $443 and $354 from IPT-100,
IPT-G&I, IPT-SCG, and IPT-International Fund, respectively, for the six months
ended June 30, 1998.
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities for the six months ended June
30, 1998, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---------------------------------------------------------------- ------------ ------------
<S> <C> <C>
IPT-100......................................................... $ 3,410,366 $ 2,464,397
IPT-G&I......................................................... 8,917,660 4,883,203
IPT-SCG......................................................... 4,485,786 2,097,597
IPT-International............................................... 1,228,446 357,997
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the period.
34
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1998 (UNAUDITED)
3. INVESTMENT TRANSACTIONS (CONTINUED)
B. Net Appreciation (Depreciation)
At June 30, 1998, 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>
UNREALIZED UNREALIZED
FUND APPRECIATION DEPRECIATION NET
- ---------------------------------------------------- ------------ ------------ ----------
<S> <C> <C> <C>
IPT-100............................................. $ 142,225 $ (79,335) $ 62,890
IPT-G&I............................................. 436,824 (56,102) 380,722
IPT-SCG............................................. 957,772 (203,297) 754,475
IPT-International................................... 689,710 (217,180) 472,530
</TABLE>
C. Outstanding Forward Foreign Currency Contracts
The table below indicates the IPT-International's outstanding forward
currency contracts at June 30, 1998:
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON JUNE APPRECIATION
CURRENCY AMOUNT DATE 30, 1998 (DEPRECIATION)
- ------------------------------------------------------------------- ---------- --------- ------------- -------------
<S> <C> <C> <C> <C>
Buy Japanese Yen................................................... 2,080,000 7/1/98 $ 14,947 $ (45)
Buy Italian Lira................................................... 7,171,000 7/2/98 4,027 (9)
Sell Swiss Franc................................................... 156,000 7/7/98 102,472 466
Sell Japanese Yen.................................................. 5,217,000 7/13/98 37,245 3,378
Sell German Deutschemark........................................... 84,000 7/17/98 46,454 439
Sell British Pound................................................. 28,000 7/27/98 46,638 (140)
Sell Swiss Franc................................................... 58,000 7/31/98 38,345 988
Sell Swiss Franc................................................... 56,000 8/13/98 37,071 1,272
Sell Japanese Yen.................................................. 4,914,000 8/18/98 35,730 1,329
Sell Japanese Yen.................................................. 5,027,000 8/28/98 36,604 381
Sell Japanese Yen.................................................. 4,764,000 9/9/98 34,749 (100)
Sell Japanese Yen.................................................. 5,287,000 9/16/98 38,603 (1,501)
Sell German Deutschemark........................................... 64,000 9/25/98 35,590 323
-------------
$ 6,781
</TABLE>
D. Federal Income Tax Status
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.
At June 30, 1998, the IPT-SCG had $16,903 and $39,861 in capital loss
carryovers which expire in the years 2004 and 2005 respectively, which may be
used to offset future realized capital gains for Federal income tax purposes.
Additionally, IPT-SCG incurred and elected to defer post-October 31 net capital
losses of $43,056 to the year ended December 31, 1998. IPT-International
incurred and elected to defer post-October 31 net capital losses and currency
losses amounting to $31,115 to the year ended December 31, 1998.
35
<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
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
SHEILA J. OHLSSON
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-1998 Berger Associates, Inc.
