<PAGE>
---------------------------------------------
THE BERGER INSTITUTIONAL PRODUCTS TRUST
[LOGO]
ANNUAL REPORT
DECEMBER 31, 1998
BERGER IPT-100 FUND
BERGER IPT-GROWTH AND INCOME FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER/BIAM IPT-INTERNATIONAL FUND
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
ANNUAL REPORT
DECEMBER 31, 1998
BERGER IPT-100 FUND
BERGER IPT-GROWTH & INCOME FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER/BIAM IPT-INTERNATIONAL FUND
Table of Contents
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Berger IPT-100 Fund
Portfolio Manager's Commentary...................................... 1
Schedule of Investments............................................. 3
Berger IPT-Growth and Income Fund
Portfolio Manager's 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 Manager's Commentary...................................... 19
Schedule of Investments............................................. 21
Financial Statements.................................................. 25
Financial Highlights.................................................. 29
Notes to Financial Statements......................................... 32
Report of Independent Accountants..................................... 37
</TABLE>
<PAGE>
BERGER IPT-100 FUND ANNUAL REPORT
PORTFOLIO MANAGER'S COMMENTARY PATRICK S. ADAMS
PERFORMANCE
Despite strong performances in the first and fourth quarters that bested
those of its indexes, the Berger IPT - 100 Fund (the "Fund") finished the year
with a return that lagged those of the indexes. Our Fund's total annual return
was 16.29%(1) for the year ended December 31, 1998, compared to 28.60% for the
Standard & Poor's (S&P) 500(2) and 19.11% for the S&P MidCap 400(3).
YEAR IN REVIEW
By many measures, the year now behind us was the most volatile in over a
decade. The market went up strongly in the first quarter, buoyed by confidence
in the recovery of Asian economies. Investors began to reinvest in some of the
stocks, particularly in the technology sector, that they had dismissed the
previous quarter over concerns (often unfounded) about exposure to Asia. Our
overweighting in technology stocks benefited first quarter performance.
Confidence plummeted in mid-April, however, when a second bout of Asian flu
hit hard. The market went into a tailspin, and investors scurried for the "safe
haven" of large index stocks. Technology, once again, felt the brunt of
investors' Asian fears, and our holdings in this sector, which we increased
during the quarter on the strength of its perceived long-term prospects, dragged
down performance.
The situation deteriorated further in the third quarter as investors
detected signs that Asian difficulties were spreading outwards and triggering a
decline in the global economy. By the end of August, the U.S. stock market, as
measured by the Dow Jones Industrial Average, was down almost 20% from its
previous high. The Fund suffered its worst decline for the year, reflecting the
wide gap that opened this quarter between large-company and small- to
mid-sized-company performance. The bears appeared to be awakening from their
long hibernation.
But the bulls came roaring back in the fourth quarter, aided by the Federal
Reserve Board, whose interest rate cuts helped stabilize U.S. financial markets.
Our Fund, too, came roaring back and significantly outperformed the S&P 500 and
the S&P MidCap 400 for this quarter.
The primary reason that we lagged the performance of our indexes for the
year is the same reason that we beat the indexes during the first and fourth
quarters. That is, we are more heavily weighted towards mid cap stocks. (Our
median market cap consistently has been under $10 billion.) During the first and
fourth quarters, investors felt more confident about the economy and, in turn,
about the market. They began to cast a wider net and invested in a broader range
of stocks; as a result, mid cap and small cap stock returns picked up. In the
second and third quarters, however, investors retreated to the big names, i.e.,
large cap stocks that dominate the S&P 500 that investors believe offer more
liquidity and security in turbulent markets. Mid cap and small cap stock returns
plummeted. We continued to avoid buying the largest companies this year because
we believed they were too expensive relative to projected growth prospects. We
remain true to our "growth at a reasonable price" philosophy.
LOOKING AHEAD
We are optimistic about the year ahead. The global economy appears to be on
much firmer ground than it was in 1998. The U.S. economy has moderate growth and
low inflation, and the Federal Reserve seems inclined to lower rates if growth
or credit spreads become undesirable. Europe's growth rate should accelerate
with the implemented new Euro currency.
Large cap growth stocks were very strong performers in 1998 as indicated by
the S&P 500's gain of 28.60% for the year. In contrast, the S&P MidCap 400 was
up 19.11%, and the Russell 2000(4) was down -2.55%. Because the market broadens
when the economy is relatively strong or improving, we would expect the overall
market to begin to catch up to the S&P 500 index in 1999. Our Fund is positioned
to take advantage of the anticipated outperformance of mid to large cap stocks
(compared to giant cap stocks) because of their substantial discount in
valuation and comparable fundamentals.
1
<PAGE>
We will maintain our focus on technology and consumer stocks because we
believe they will continue to be strong performers as global growth strengthens
in 1999. We have little exposure to commodity-oriented groups.
(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 MidCap 400 Stock Index is an unmanaged index, with dividends
reinvested, and is generally representative of the market for stocks for
mid-sized companies. One cannot invest directly in an index.
(4) The Russell 2000 index is an unmanaged index, with dividends reinvested,
which consists of common stocks of 2000 U.S. companies. It is a generally
recognized indicator used to measure overall performance of small company
stocks. 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
<S> <C> <C> <C>
BERGER IPT- S&P 500 COST OF
100 FUND LIVING INDEX
5/1/1996 $10,000 $10,000 $10,000
6/30/96 $9,780 $10,303 $10,026
9/30/96 $10,080 $10,619 $10,096
12/31/96 $10,390 $11,503 $10,147
3/31/97 $10,030 $11,813 $10,237
6/30/97 $11,250 $13,871 $10,256
9/30/97 $12,420 $14,909 $10,313
12/31/97 $11,820 $15,335 $10,320
3/31/98 $13,809 $17,470 $10,377
6/30/98 $13,097 $18,045 $10,429
9/30/98 $10,596 $16,253 $10,467
12/31/98 $13,746 $19,709 $10,493
Berger IPT-100 Fund
Average Annual Total Return
As of December 31, 1998
Since Inception
1 Year (5/1/96)
16.29% 12.65%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
2
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCK 83.39%
AUTO/TRUCK-ORIGINAL EQUIPMENT 0.62%
600 Lear Corp.* $ 23,100
-----------
AUTO/TRUCK-REPLACEMENT PARTS 2.41%
1,500 Federal-Mogul Corp. 89,250
-----------
BANKS-MONEY CENTER 1.37%
300 BankAmerica Corp. 18,037
480 Chase Manhattan Corp. 32,670
-----------
50,707
-----------
BANKS-SUPER REGIONAL 0.96%
100 Banc One Corp. 5,106
500 First Union Corp. 30,406
-----------
35,512
-----------
BEVERAGE-SOFT DRINKS 1.43%
1,300 Pepsico, Inc. 53,218
-----------
COMMERCIAL SERVICES-MISCELLANEOUS 0.01%
18 Sodexho Marriott Services, Inc.* 498
-----------
COMPUTER SOFTWARE-ENTERPRISE 1.49%
800 J.D. Edwards & Company* 22,700
600 Synopsys, Inc.* 32,550
-----------
55,250
-----------
COMPUTER-GRAPHICS 6.03%
6,500 Cadence Design Systems, Inc.* 193,375
1,800 CHS Electronics, Inc.* 30,487
-----------
223,862
-----------
COMPUTER-LOCAL NETWORKS 3.56%
750 3Com Corp.* 33,609
1,500 Ascend Communications, Inc.* 98,625
-----------
132,234
-----------
COMPUTER-MINI/MICRO 2.64%
1,600 Compaq Computer Corp. 67,100
200 Hewlett-Packard Company 13,662
200 Sun Microsystems, Inc.* 17,125
-----------
97,887
-----------
COMPUTER-SERVICES 0.52%
300 Computer Sciences Corp.* 19,331
-----------
DIVERSIFIED OPERATIONS 2.54%
1,250 Tyco International Ltd. 94,296
-----------
</TABLE>
3
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 0.48%
1,000 Lam Research Corp.* $ 17,812
-----------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 9.55%
1,700 Altera Corp.* 103,487
400 Intel Corp. 47,425
1,560 Maxim Integrated Products, Inc.* 68,152
400 Texas Instruments, Inc. 34,225
1,550 Xilinx, Inc.* 100,943
-----------
354,232
-----------
FINANCE-CONSUMER/COMMERCIAL LOANS 6.40%
1,300 Associates First Capital Corp. Class A 55,087
4,600 Household International, Inc. 182,275
-----------
237,362
-----------
FINANCE-PUBLICLY TRADED INVESTMENT FUND 3.65%
1,100 S&P Depositary Receipts 135,300
-----------
FINANCE-SAVINGS & LOANS 0.85%
900 GreenPoint Financial Corp. 31,612
-----------
FINANCIAL SERVICES-MISCELLANEOUS 2.63%
2,550 Heller Financial, Inc. 74,906
300 Providian Financial Corp. 22,500
-----------
97,406
-----------
INSURANCE-DIVERSIFIED 0.93%
700 Citigroup Inc. 34,650
-----------
LEISURE-HOTELS & MOTELS 0.55%
627 Promus Hotel Corp.* 20,299
-----------
LEISURE-SERVICES 0.95%
500 Carnival Corp. 24,000
300 Royal Caribbean Cruises Ltd. 11,100
-----------
35,100
-----------
MEDIA-CABLE TV 1.00%
600 Time Warner, Inc. 37,237
-----------
MEDIA-RADIO/TV 2.58%
1,200 Chancellor Media Corp.* 57,450
700 Clear Channel Communications, Inc.* 38,150
-----------
95,600
-----------
MEDICAL-BIOMEDICAL/GENETICS 2.61%
2,150 Centocor, Inc.* 97,018
-----------
MEDICAL-DRUG/DIVERSIFIED 0.61%
300 Warner-Lambert Company 22,556
-----------
</TABLE>
4
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MEDICAL-ETHICAL DRUGS 1.04%
300 Elan Corp. PLC ADR* $ 20,868
200 Eli Lilly Co. 17,775
-----------
38,643
-----------
MEDICAL-HEALTH MAINTENANCE ORGANIZATIONS 0.93%
800 United HealthCare Corp. 34,450
-----------
MEDICAL-WHOLESALE DRUG/SUNDRIES 0.28%
300 Bergen Brunswig Corp. Class A 10,462
-----------
OIL & GAS-INTERNATIONAL INTEGRATED 1.18%
500 Texaco, Inc. 26,437
200 Mobil Corp. 17,425
-----------
43,862
-----------
PAPER & PAPER PRODUCTS 0.88%
599 Kimberly-Clark Corp. 32,645
-----------
POLLUTION CONTROL-SERVICES 5.72%
1,500 Eastern Environmental Services, Inc.* 44,437
3,600 Waste Management, Inc.* 167,850
-----------
212,287
-----------
RETAIL-APPAREL/SHOE 2.62%
900 Abercrombie & Fitch Co.* 63,675
850 Ross Stores Inc. 33,468
-----------
97,143
-----------
RETAIL-CONSUMER ELECTRONICS 0.66%
400 Best Buy Co., Inc.* 24,550
-----------
RETAIL-DEPARTMENT STORES 3.83%
3,600 Consolidated Stores Corp.* 72,675
2,200 Saks, Inc.* 69,437
-----------
142,112
-----------
RETAIL-MISCELLANEOUS/DIVERSIFIED 0.57%
500 Barnes & Noble, Inc.* 21,250
-----------
RETAIL/WHOLESALE-OFFICE SUPPLIES 1.69%
1,700 Office Depot, Inc.* 62,793
-----------
RETAIL/WHOLESALE-AUTO PARTS 1.24%
1,400 Autozone, Inc.* 46,112
-----------
RETAIL/WHOLESALE-BUILDING PRODUCTS 1.11%
800 Lowes Cos., Inc. 40,950
-----------
TELECOMMUNICATIONS-SERVICES 0.49%
250 MCI WorldCom, Inc.* 17,953
-----------
</TABLE>
5
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- -------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
TEXTILE-APPAREL MANUFACTURING 4.78%
2,950 Tommy Hilfiger Corp.* $ 177,000
-----------
TOTAL COMMON STOCK (COST $2,521,440) 3,093,541
-----------
U.S. GOVERNMENT AGENCY OBLIGATIONS 13.47%
$ 500,000 Federal Home Loan Mortgage Loan Corp.
4.50%, 1/4/99 499,812
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $499,812) 499,812
-----------
REPURCHASE AGREEMENT 3.23%
$ 120,000 State Street Repurchase Agreement, 4.40%
dated December 31, 1998, to be
repurchased at $120,059 on January 4,
1999, collateralized by Federal Home
Loan Bank Discount Note, December 4,
2000, with a value of $125,619 120,000
-----------
TOTAL REPURCHASE AGREEMENT (COST $120,000) 120,000
-----------
TOTAL INVESTMENTS (COST $3,141,252) 100.09% 3,713,353
TOTAL LIABILITIES, LESS CASH AND OTHER ASSETS -0.09% (3,244)
-----------
NET ASSETS 100.00% $3,710,109
-----------
-----------
</TABLE>
* Non-income producing security.
See notes to financial statements.
6
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND ANNUAL REPORT
PORTFOLIO MANAGER'S COMMENTARY TINO SELLITTO
PERFORMANCE
The Berger IPT-Growth and Income Fund (the "Fund") delivered a total annual
return of 25.03%(1) for the year ended December 31, 1998, compared to 28.60% for
the Standard & Poor's (S&P) 500(2).
YEAR IN REVIEW
We were very pleased with the performance of the Fund as it rallied in the
last two months of the year to end up only slightly behind the S&P 500.
In the first quarter of 1998, we were positioned conservatively and had a
smaller weighting in technology stocks. As a result, we did not fully
participate in the upward move of the market, and the Fund trailed the S&P 500
by nearly 4.0%. By the end of the first quarter, we had increased our technology
weighting sufficiently to make it our largest sector.
During the second quarter, concern about deteriorating economies in Asia
caused investors to move into large cap blue-chip stocks that dominate the S&P
500 because these stocks are perceived to be safer. Turmoil at Sunbeam
Corporation sent the stock price plummeting this quarter, which hurt Fund
performance. For these reasons, we modestly underperformed the S&P 500 by about
1.25%.
The third quarter was difficult for investors as concerns over Asia and
Latin America resurfaced. However, the Fund had a good quarter, relative to the
general market, incurring a loss of -7.45% versus -9.92% for the S&P 500. We
added to our electric utility holdings during this quarter. Their high yields
and good cash flows helped these stocks perform well in a tough market. A
relatively high cash position during the quarter also gave us the liquidity we
needed to add selectively to the portfolio on market weakness. We continued to
hold a large position in technology with a focus on those companies with the
most visible and consistent earnings.
The Fund, like the market, rebounded strongly in the fourth quarter, and our
gain of 20.35% only narrowly underperformed the 21.28% gain of the S&P 500. We
attribute this positive performance to our continued focus on large,
high-quality, consistent-growth companies and to the moves we made late in the
year to establish larger weightings in technology, healthcare and consumer
staples stocks. These sectors led the market recovery as investors rushed into
sectors that still had strong sales and profit growth. At the same time,
performance was enhanced by the fact that we had smaller positions in sectors
that did not perform as well, including basic materials, capital goods, energy
and transportation.
LOOKING AHEAD
There are signs that 1999 could be another good year for equities.
Expectations have been lowered for many companies, which could set the stage for
these stocks to exceed what the market is anticipating. Several other factors
also bode well for stocks in 1999, including low inflation, strong consumer
spending and solid GDP growth. In the absence of a catastrophic event, we could
see another year of good returns for the market.
(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.
7
<PAGE>
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
<S> <C> <C>
BERGER IPT-GROWTH & S&P 500
INCOME FUND
5/1/1996 $10,000 $10,000
6/30/96 $10,020 $10,303
9/30/96 $10,400 $10,619
12/31/96 $11,140 $11,503
3/31/97 $11,190 $11,813
6/30/97 $12,320 $13,871
9/30/97 $14,110 $14,909
12/31/97 $13,924 $15,335
3/31/98 $15,318 $17,470
6/30/98 $15,630 $18,045
9/30/98 $14,465 $16,253
12/31/98 $17,409 $19,709
Berger IPT-Growth & Income Fund
Average Annual Total Return
As of December 31, 1998
1 Year Since Inception
(5/1/96)
25.03% 23.08%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
<S> <C>
COST OF LIVING INDEX
5/1/1996 $10,000
6/30/96 $10,026
9/30/96 $10,096
12/31/96 $10,147
3/31/97 $10,237
6/30/97 $10,256
9/30/97 $10,313
12/31/97 $10,320
3/31/98 $10,377
6/30/98 $10,429
9/30/98 $10,467
12/31/98 $10,493
Berger IPT-Growth & Income Fund
Average Annual Total Return
As of December 31, 1998
1 Year
25.03%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
8
<PAGE>
BERGER IPT-GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCK 78.31%
AEROSPACE/DEFENSE 1.79%
1,400 Raytheon Company $ 74,550
1,500 General Dynamics Corp. 87,937
------------
162,487
------------
AGRICULTURAL OPERATIONS 0.79%
2,650 Pioneer Hi-Bred International, Inc. 71,550
------------
BANKS-SOUTHEAST 1.51%
3,600 First Tennessee National Corp. 137,025
------------
BANKS-SUPER REGIONAL 3.72%
1,650 Northern Trust Corp. 144,065
1,300 Wachovia Corp. 113,668
2,000 Wells Fargo Company 79,875
------------
337,608
------------
CHEMICALS-BASIC 1.42%
2,900 Akzo Nobel N.V. 129,412
------------
COMPUTER SOFTWARE-DESKTOP 2.86%
1,875 Microsoft Corp.* 260,039
------------
COMPUTER-LOCAL NETWORKS 3.92%
3,800 3Com Corp.* 170,287
2,000 Cisco Systems, Inc.* 185,625
------------
355,912
------------
COMPUTER-MINI/MICRO 2.11%
1,100 Dell Computer Corp.* 80,506
1,300 Sun Microsystems, Inc.* 111,312
------------
191,818
------------
COMPUTER-SERVICES 1.08%
1,300 IMS Health, Inc. 98,068
------------
ELECTRICAL PRODUCTS-MISCELLANEOUS 0.72%
1,350 Rockwell International Corp. 65,559
------------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 2.82%
3,100 Applied Materials, Inc.* 132,331
2,500 Novellus Systems, Inc.* 123,750
------------
256,081
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 5.63%
1,500 Intel Corp. 177,843
2,200 Linear Technology Corp. 197,037
1,600 Texas Instruments, Inc. 136,900
------------
511,780
------------
</TABLE>
9
<PAGE>
BERGER IPT-GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C>
FINANCE-INVESTMENT MANAGEMENT 1.49%
1,900 Morgan Stanley Dean Witter & Co. $ 134,900
------------
FINANCE-MORTGAGE & RELATED SERVICES 2.75%
2,500 Freddie Mac 161,093
1,200 Fannie Mae 88,800
------------
249,893
------------
LEISURE-MOVIES & RELATED 0.97%
3,500 Fox Entertainment Group, Inc.* 88,156
------------
MEDIA-CABLE TV 1.81%
2,800 Comcast Corp. 164,325
------------
MEDIA-RADIO/TV 1.75%
5,800 Infinity Broadcasting Corp.* 158,775
------------
MEDICAL-BIOMED/GENETICS 1.27%
1,100 Amgen, Inc.* 115,018
------------
MEDICAL-DRUG/DIVERSIFIED 1.12%
1,350 Warner-Lambert Company 101,503
------------
MEDICAL-ETHICAL DRUGS 2.41%
1,700 Eli Lilly Co. 151,087
1,200 Pharmacia & Upjohn, Inc. 67,950
------------
219,037
------------
MEDICAL-PRODUCTS 1.85%
2,600 Allergan, Inc. 168,350
------------
MEDICAL-WHOLESALE DRUG/SUNDRIES 1.82%
2,175 Cardinal Health, Inc. 165,028
------------
MEDICAL/DENTAL-SUPPLIES 1.39%
2,700 Allegiance Corp. 125,887
------------
OIL & GAS-FIELD SERVICES 1.02%
1,950 Halliburton Co. 57,768
750 Schlumberger Ltd. 34,593
------------
92,361
------------
OIL & GAS-INTERNATIONAL INTEGRATED 2.86%
3,200 Conoco Inc.* 66,800
1,000 Mobil Corp. 87,125
2,000 Texaco, Inc. 105,750
------------
259,675
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 2.03%
3,150 Anadarko Petroleum Corp. 97,256
4,900 Evergreen Resources, Inc.* 86,975
------------
184,231
------------
</TABLE>
10
<PAGE>
BERGER IPT-GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C>
RETAIL-DEPARTMENT STORES 0.88%
1,300 Kohls Corp.* $ 79,868
------------
RETAIL-DRUG STORES 2.96%
2,600 CVS Corp. 143,000
2,150 Walgreen Co. 125,909
------------
268,909
------------
RETAIL-MAJOR DISCOUNT CHAINS 2.15%
3,600 Dayton Hudson Corp. 195,300
------------
RETAIL-SUPER/MINI-MARKETS 3.47%
2,850 Albertson's, Inc. 181,509
2,200 Safeway, Inc.* 134,062
------------
315,571
------------
TELECOMMUNICATIONS-EQUIPMENT 3.29%
1,350 Lucent Technologies, Inc. 148,500
1,250 Nokia Corp. ADR 150,546
------------
299,046
------------
TELECOMMUNICATIONS-SERVICES 5.28%
1,500 Bell Atlantic Corp. 85,218
1,200 Global Crossing Ltd.* 54,150
2,500 MCI WorldCom, Inc.* 179,375
3,800 Swisscom A.G.* 161,737
------------
480,480
------------
TOBACCO 2.09%
3,550 Philip Morris Companies, Inc. 189,925
------------
UTILITY-ELECTRIC POWER 2.32%
2,600 Carolina Power & Light Company 122,362
100 FPL Group, Inc. 6,162
1,700 New England Electrical Systems 81,812
------------
210,336
------------
UTILITY-TELEPHONE 2.96%
2,250 Alltel Corp. 134,586
2,500 SBC Communications Inc. 134,071
------------
268,657
------------
TOTAL COMMON STOCK (COST $5,679,750) 7,112,570
------------
CONVERTIBLE CORPORATE DEBT 7.76%
COMPUTER SOFTWARE-INTERNET 3.38%
55,000 America Online, Inc. 4.00%, 11/15/02 308,138
------------
COMPUTER-MEMORY DEVICES 2.02%
49,000 EMC Corp. 3.25%, 3/15/02 183,382
------------
</TABLE>
11
<PAGE>
BERGER IPT-GROWTH & INCOME FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- -------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDICAL-OUTPATIENT/HOME CARE 1.34%
112,000 Total Renal Care Holdings, Inc. 7.00%,
5/15/09 $ 121,380
------------
RETAIL/WHOLESALE-BUILDING PRODUCTS 1.02%
35,000 The Home Depot, Inc. 3.25%, 10/1/01 92,400
------------
TOTAL CONVERTIBLE CORPORATE DEBT (COST $389,111) 705,300
------------
CONVERTIBLE PREFERRED STOCK 5.88%
MEDIA-RADIO/TV 1.49%
1,000 Chancellor Media Corp. 135,500
------------
UTILITY-ELECTRIC POWER 4.39%
2,400 Houston Industries, Inc. 255,300
2,550 Texas Utilities Co. 143,756
------------
399,056
------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $427,785) 534,556
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 4.39%
$ 400,000 Federal Home Loan Mortgage Corp.
Discount Note 5.08%, 1/29/99 398,419
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $398,419) 398,419
------------
REPURCHASE AGREEMENT 3.75%
$ 341,000 State Street Repurchase Agreement,
4.40% dated December 31, 1998, to be
repurchased at $341,167 on January 4,
1999, collateralized by Federal Home
Loan Bank Note, March 10, 2000, with a
value of $351,696 341,000
------------
TOTAL REPURCHASE AGREEMENT (COST $341,000) 341,000
------------
TOTAL INVESTMENTS (COST $7,236,065) 100.09% 9,091,845
TOTAL LIABILITIES, LESS CASH AND OTHER ASSETS -0.09% (7,823)
------------
NET ASSETS 100.00% $9,084,022
------------
------------
</TABLE>
* Non-income producing security.
See notes to financial statements.
12
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND ANNUAL REPORT
PORTFOLIO MANAGER'S COMMENTARY AMY K. SELNER
PERFORMANCE
Despite a strong finish, small cap stocks did not have a good year overall.
As a result, the Berger IPT - Small Company Growth Fund's (the "Fund") total
return was only 1.87%(1) for the year ended December 31, 1998, compared to a
loss of -2.55% for the Russell 2000(2).
YEAR IN REVIEW
Small cap stocks started the year weakly, but gained strength in February
and March, driven by a resurgence in investor willingness to venture beyond
large index stocks after an apparent recovery in Asian economies. Holdings in
the following industries helped the Fund outperform its index in the first
quarter: media, computer service and consulting, outsourcing and select
healthcare and telecommunications.
Second quarter small stock performance was a mirror image of the first
quarter's performance. Small stocks started the quarter strongly, but prices
fell back on renewed investor concerns about Asia and weaker than expected first
quarter earnings reports. The Fund's media stocks gave ground because of higher
valuations and concerns over higher interest rates. Technology stocks also were
a drag on Fund performance, as business fundamentals remained cloudy. Consumer
stocks, particularly retailers, and healthcare stocks generally performed well.
The third quarter of 1998 was the most difficult quarter for stocks of all
sizes since the current bull market cycle began. Small cap stocks were
particularly hit hard as volatility soared and investors preferred the liquidity
and predictability of large cap stocks. Stocks that had been strong in the first
half of the year were crushed. Sectors in which we maintained long-term
positions, including broadcasting and information technology services, sold off
dramatically as investors reevaluated stocks in light of what they perceived to
be an impending global recession. There was one consolation amidst the small cap
gloom: at quarter end, many stocks were selling at levels that offered the
possibility of significant gains going forward.
Just eight days into the fourth quarter the stock market stabilized. Small
cap stocks staged an impressive rally, and our Fund's fourth quarter return
handily outpaced that of its benchmark, the Russell 2000, 23.35% to 16.31%.
Technology smartly outperformed other industry groups, and our holdings in this
sector bolstered Fund performance. Internet stocks led the way up;
semiconductors and information technology services also turned in strong
returns, as did biotechnology companies in the healthcare sector. We trimmed our
exposure to Internet stocks after their explosive move upward from the October 8
low.
LOOKING AHEAD
As of year-end, world markets have been resilient, given impeachment of the
American President, rekindled military hostilities in the Middle East, rising
risks in Brazil and sharp depreciation of the dollar. The 75-basis-point easing
in interest rates from late September to mid-November has served as a stiff wind
at the back of this market. We believe the Federal Reserve Board will continue
to ease rates in the first half of 1999. The underlying trend in real income
growth remains strong, consumer spending is robust, and the labor market remains
tight. Corporate profits are falling, and we expect growth to decelerate in 1999
and inflation to remain suppressed. We continue to monitor Brazil's recession
and its possible effects on Mexico and, eventually, the U.S.
Looking ahead, there are optimistic signs for small caps. As of December 31,
1998, the ratio of price-to-earnings of the Russell 2000 Index when compared to
the S&P 500(3) Index was .78. This ratio is well below the ratio of 1.03 reached
in 1990, a year in which small caps outperformed large caps. Although this
relative valuation is quite bullish for small caps, absolute valuations for both
indexes are not cheap. We expect the market to move sideways over the near term
as it digests fourth quarter gains. We believe the current market's narrow
leadership will need to broaden in order to sustain an upward trend. High stock
valuations allow no margin for error in earnings estimates for 1999.
(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 Russell 2000 index is an unmanaged index, with dividends reinvested,
which consists of common stocks of 2000 U.S. companies. It is a generally
recognized indicator used to measure overall performance of small company
stocks. One cannot invest directly in an index.
(3) 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.
13
<PAGE>
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
<S> <C> <C>
BERGER IPT-SMALL RUSSELL 2000
COMPANY GROWTH FUND STOCK INDEX
5/1/96 $10,000 $10,000
6/30/96 $10,530 $9,967
9/30/96 $10,720 $10,001
12/31/96 $9,950 $10,521
3/31/97 $8,920 $9,977
6/30/97 $10,380 $11,595
9/30/97 $12,380 $13,320
12/31/97 $12,060 $12,874
3/31/98 $13,580 $14,169
6/30/98 $13,610 $13,509
9/30/98 $9,960 $10,787
12/31/98 $12,285 $12,546
Berger IPT-Small Company Growth Fund
Average Annual Total Return
As of December 31, 1998
1 Year Since Inception (5/1/96)
1.87% 8.01%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
<S> <C>
COST OF LIVING INDEX
5/1/96 $10,000
6/30/96 $10,026
9/30/96 $10,096
12/31/96 $10,147
3/31/97 $10,237
6/30/97 $10,256
9/30/97 $10,313
12/31/97 $10,320
3/31/98 $10,377
6/30/98 $10,429
9/30/98 $10,467
12/31/98 $10,493
Berger IPT-Small Company Growth Fund
Average Annual Total Return
As of December 31, 1998
1 Year
1.87%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
14
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCK 86.38%
COMMERCIAL SERVICES-ADVERTISING 2.87%
3,900 HA-LO Industries, Inc.* $ 146,737
3,650 Lamar Advertising Company* 135,962
------------
282,699
------------
COMMERCIAL SERVICES-MISCELLANEOUS 2.48%
300 CMGI Inc.* 31,950
2,950 MedQuist Inc.* 116,525
2,100 ProBusiness Services, Inc.* 95,550
------------
244,025
------------
COMMERCIAL SERVICES-SCHOOLS 2.00%
6,450 Devry, Inc.* 197,531
------------
COMMERCIAL SERVICES-STAFFING 3.16%
3,400 AHL Services, Inc.* 106,250
5,700 Labor Ready, Inc.* 112,218
4,350 Select Appointments PLC ADR 93,525
------------
311,993
------------
COMPUTER SOFTWARE-DESKTOP 1.16%
3,400 Macromedia, Inc.* 114,537
------------
COMPUTER SOFTWARE-EDUCATIONAL/ENTERTAINMENT 1.03%
6,800 CBT Group PLC ADR* 101,150
------------
COMPUTER SOFTWARE-ENTERPRISE 10.60%
4,850 Aspen Technology, Inc.* 70,325
700 Engineering Animation, Inc.* 37,800
150 Inktomi Corporation* 19,406
1,900 Mercury Interactive Corp.* 120,175
2,100 Peregrine Systems, Inc.* 97,387
3,900 Rational Software Corp.* 103,350
2,100 Sapient Corp.* 117,600
4,250 Software AG Systems, Inc.* 77,031
1,900 Synopsys, Inc.* 103,075
4,000 TSI International Software Ltd.* 191,500
1,800 VERITAS Software Corp.* 107,887
------------
1,045,536
------------
COMPUTER SOFTWARE-INTERNET 3.76%
50 eBay, Inc.* 12,062
1,600 Exodus Communication, Inc.* 102,800
1,150 Infoseek, Corp.* 56,781
600 Lycos, Inc.* 33,337
5,950 Spyglass, Inc.* 130,900
150 Yahoo, Inc.* 35,259
------------
371,139
------------
</TABLE>
15
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMPUTER SOFTWARE-MEDICAL 1.45%
2,850 Eclipsys Corp.* $ 82,650
2,950 Quadramed Corp.* 60,475
------------
143,125
------------
COMPUTER-MEMORY DEVICES 2.40%
3,000 Microchip Technology, Inc.* 111,000
2,800 Network Appliance, Inc.* 126,000
------------
237,000
------------
COMPUTER-SERVICES 5.38%
5,700 Ciber, Inc.* 159,243
2,200 Icon CMT Corp.* 35,200
6,050 USWeb Corp.* 159,568
6,400 Whittman-Hart, Inc.* 176,800
------------
530,811
------------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 5.89%
5,050 Credence Systems Corp.* 93,425
1,800 DuPont Photomasks, Inc.* 76,387
3,650 Etec Systems, Inc.* 146,000
2,700 Novellus Systems, Inc.* 133,650
3,100 Teradyne, Inc.* 131,362
------------
580,824
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 3.07%
2,850 Maxim Integrated Products, Inc.* 124,509
3,900 Vitesse Semiconductor Corp.* 177,937
------------
302,446
------------
FINANCE-CONSUMER/COMMERCIAL LOANS 1.20%
4,300 Safeguard Scientifics, Inc.* 117,981
------------
FINANCE-MORTGAGE & RELATED SERVICES 0.31%
3,400 Resource America, Inc. 30,812
------------
FINANCIAL SERVICES-MISCELLANEOUS 2.53%
2,450 Concord EFS, Inc.* 103,818
4,200 Nova Corp.* 145,687
------------
249,505
------------
FUNERAL SERVICES & RELATED 1.20%
5,300 Stewart Enterprises, Inc. 117,925
------------
HOUSEHOLD/OFFICE FURNITURE 2.30%
4,400 Herman Miller, Inc. 118,250
3,650 Knoll, Inc.* 108,131
------------
226,381
------------
</TABLE>
16
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MEDIA-RADIO/TV 6.89%
2,350 Chancellor Media Corp.* $ 112,506
2,050 Clear Channel Communications, Inc.* 111,725
3,700 Cox Radio, Inc.* 156,325
1,100 Emmis Communications Corp.* 47,712
3,100 Heftel Broadcasting Corp.* 152,675
3,650 Scandinavian Broadcasting Systems S.A.* 98,550
------------
679,493
------------
MEDICAL-BIOMEDICAL/GENETICS 1.74%
1,730 Medimmune, Inc.* 172,026
------------
MEDICAL-ETHICAL DRUGS 3.83%
2,250 Forest Laboratories, Inc.* 119,671
3,800 Jones Pharma, Inc. 138,700
7,100 Theragenics Corp.* 119,368
------------
377,739
------------
MEDICAL-INSTRUMENTS 1.60%
5,850 IDEXX Laboratories, Inc.* 157,401
------------
MEDICAL-OUTPATIENT/HOME CARE 1.63%
5,450 Total Renal Care Holdings, Inc.* 161,115
------------
MEDICAL/DENTAL SERVICES 1.70%
5,800 Renal Care Group, Inc.* 167,112
------------
OIL & GAS-DRILLING 0.36%
2,100 Atwood Oceanics, Inc.* 35,700
------------
OIL & GAS-FIELD SERVICES 0.81%
1,450 BJ Services Co.* 22,656
4,000 Paradigm Geophysical Ltd.* 20,500
2,800 Veritas DGC, Inc.* 36,400
------------
79,556
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 0.64%
2,550 Noble Affiliates, Inc. 62,793
------------
POLLUTION CONTROL-SERVICES 1.99%
7,250 Tetra Tech, Inc.* 196,203
------------
RETAIL-APPAREL/SHOE 1.96%
1,700 Payless Shoe Source, Inc.* 80,537
3,550 The Men's Wearhouse, Inc.* 112,712
------------
193,249
------------
RETAIL-MAIL ORDER & DIRECT 0.56%
1,450 Black Box Corp.* 54,918
------------
RETAIL-MISCELLANEOUS/DIVERSIFIED 0.47%
3,050 Cash America International, Inc. 46,321
------------
</TABLE>
17
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- --------------------------------------------------------------------------------------------
<C> <S> <C> <C>
TELECOMMUNICATIONS-EQUIPMENT 3.49%
2,550 ADTRAN, Inc.* $ 46,696
1,850 Antec Corp.* 37,231
2,000 Gilat Satellite Networks, Ltd.* 110,250
2,150 Uniphase Corp.* 149,156
------------
343,333
------------
TELECOMMUNICATIONS-SERVICES 5.92%
5,800 Globalstar Telecommunications Ltd.* 116,725
3,400 ICG Communications, Inc.* 73,100
4,400 Metromedia Fiber Network, Inc.* 147,400
6,300 Viatel, Inc.* 144,112
2,600 Winstar Communications, Inc.* 101,422
------------
582,759
------------
TOTAL COMMON STOCK (COST $6,925,884) 8,515,138
------------
U.S. GOVERNMENT AGENCY OBLIGATIONS 10.13%
1$,000,000 Federal Home Loan Mortgage Corp.
Discount Note 4.50%, 1/4/99 999,625
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (COST $999,625) 999,625
------------
REPURCHASE AGREEMENT 3.38%
$333,000 State Street Repurchase Agreement, 4.40%
dated December 31, 1998, to be
repurchased at $333,163 on January 4,
1999, collateralized by Federal Home
Loan Mortgage Corporation Note, November
5, 1999, with a value of $342,803 333,000
------------
TOTAL REPURCHASE AGREEMENT (COST $333,000) 333,000
------------
TOTAL INVESTMENTS (COST $8,258,509) 99.89% 9,847,763
OTHER ASSETS, LESS LIABILITIES 0.11% 10,540
------------
NET ASSETS 100.00% $9,858,303
------------
------------
</TABLE>
* Non-income producing security.
See notes to financial statements.
18
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND ANNUAL REPORT
PORTFOLIO MANAGER'S COMMENTARY BANK OF IRELAND ASSET MANAGEMENT (U.S.) LTD.
PERFORMANCE
The Berger/BIAM IPT-International Fund (the "Fund") had a total return of
16.13%(1) for the year ended December 31, 1998, compared to 20.33% for the MSCI
EAFE Index(2). Our Fund's performance lagged that of the index primarily because
of our holdings in the themes of Infrastructural Development, Technological
Innovation and Expanding Financial Services in Developing Markets. Two
themes--Technological Innovation and Expanding Financial Services--had the
highest concentrations in the Far East and, thus, were hardest hit by that
area's economic downturn.
YEAR IN REVIEW
During 1998, Growth in Telecommunications outperformed all other themes,
thanks to mobile phone growth and privatization of Europe's telecommunications
companies. The need to develop new technologies to keep pace with growth drove
the formation of new partnerships and joint ventures. Mannesmann of Germany and
Vodafone of the United Kingdom outperformed all stocks in the portfolio for the
year. Mannesmann and the Italian company Olivetti teamed up to provide
international phone service through a new network operator. Vodafone announced
cooperative links with Lucent Technologies to bring to market a new generation
of wireless technology and to promote "pay as you talk" mobile phones.
Stocks in the Healthcare Needs theme also performed well. Glaxo Wellcome and
Hoechst made strong contributions. Following the third quarter market
turbulence, interest in pharmaceutical companies rebounded as investors sought
companies with stable earnings that make their stocks less vulnerable to
economic downturns. In addition, merger and acquisition activity resumed. A
year-end wave of mergers was fueled by the high cost of bringing new drugs to
the market, which averages $500 million per drug. Two significant mergers
announced in the fourth quarter were Zeneca and Astra and Hoechst and
Rhone-Poulenc.
In the Leading Consumer Franchises theme, British American Tobacco and
Nestle received top marks. British American Tobacco outperformed other companies
in this theme, led by news of the successful spin-off of Allied Zurich, its
financial/insurance business, and by favorable news in the U.S. concerning a
settlement of significant tobacco litigation. Nestle, which does not issue
third-quarter results, said sales in the first 10 months of 1998 grew 4%, to
$42.1 billion. Despite unfavorable currency movements, Nestle's real rate of
sales growth was 4.6%, well above the company's 4% long-term target.
One other theme worth mentioning is Growth in Personal Savings Products.
This theme was led by financial service companies such as Allied Zurich and
AXA-UAP, which saw their share prices rise in anticipation of a January interest
rate cut by the European Central Bank. The cut was expected to lift the value of
these companies' bond prices and cut their borrowing costs, thus increasing
corporate profits.
LOOKING AHEAD
Global equity markets rebounded strongly after a weak third quarter,
prompted primarily by reductions in interest rates in the U.S. and Europe. The
general consensus appears to be that a lower interest rate environment is
sufficient to ensure continued corporate earnings growth. We do not subscribe to
this theory because of alarms about the trading environment being raised by
global companies as diverse as Boeing, Ericsson, Marks & Spencer's, Proctor &
Gamble and Coca-Cola. Despite these alarms, indexes continue to reach new
all-time highs. Evidently, these markets are being driven by increased levels of
liquidity chasing fewer and fewer stocks, driving them up to valuation levels
which we consider very risky.
Nevertheless, there are some bright spots on the international equity
horizon. The advent of the new single European currency, the Euro, should be
broadly positive for large pan-European companies. The resurgence in mergers and
acquisitions activity should accelerate in Europe over the near term. Given
where Europe is in the current economic cycle, opportunities for increasing
synergies and cost cutting through consolidation in Europe are significantly
greater than those that exist in the U.S.
There continues to be evidence that reform is taking place in Japan, albeit
at the margins. The evidence was the most recent privatization of NTT Mobile
Communications Network. This deal, with a market capitalization of more than US
$18 billion, was the largest Initial Public Offering (IPO) of all time. It was
particularly striking because Western investment banks were the lead
underwriters--something that would not have occurred a few years ago.
Nevertheless, despite some
19
<PAGE>
nice rhetoric, the Japanese government has failed to deliver the reform package
that the markets deem necessary to revive the country's moribund domestic
economy.
There are signs of value emerging in the mid- to large-cap sectors in Europe
and the UK, particularly in some economically sensitive areas. Additionally,
reform-minded Japanese corporations hold considerable potential for long-term
investors. Accordingly, we will continue to concentrate on European stocks that
have the ability to prosper in the single-currency environment and on selected
stocks in Japan.
(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/BIAM IPT- EAFE
<S> <C> <C>
INTERNATIONAL FUND
5/1/97 $10,000 $10,000
6/30/97 $10,170 $11,243
9/30/97 $10,300 $11,171
12/31/97 $9,790 $10,304
3/31/98 $11,100 $11,827
6/30/98 $11,370 $11,961
9/30/98 $9,490 $10,268
12/31/98 $11,369 $12,399
Since Inception
(5/1/97)
7.99%
Berger/BIAM IPT-International Fund
Average Annual Total Return
As of December 31, 1998
1 Year
16.13%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
COST OF LIVING INDEX
<S> <C>
5/1/97 $10,000
6/30/97 $10,006
9/30/97 $10,062
12/31/97 $10,069
3/31/98 $10,125
6/30/98 $10,175
9/30/98 $10,212
12/31/98 $10,237
Since Inception
(5/1/97)
7.99%
Berger/BIAM IPT-International Fund
Average Annual Total Return
As of December 31, 1998
1 Year
16.13%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
20
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/ COUNTRY/ PERCENT OF
PAR VALUE COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
COMMON STOCK 94.78%
AUSTRALIA 4.21%
5,800 National Australia Bank Ltd. Commercial Banks & Other Banks $ 87,248
13,361 News Corporation Ltd. Media 88,075
11,390 Telstra Corporation Ltd. Utilities 53,142
--------------
228,465
--------------
CANADA 0.08%
90 Royal Bank of Canada Commercial Banks & Other Banks 4,500
--------------
DENMARK 0.53%
215 Tele Danmark A.S. Utilities 29,019
--------------
FRANCE 8.31%
497 Alcatel Alsthom Computer/Communications/Office Equipment 60,816
840 AXA-UAP Insurance-Multi/Property/Casualty 121,722
830 Michelin Automobile Components 33,186
860 Total S.A.-B Oil 87,080
573 Vivendi Diversified Holdings Companies 148,638
--------------
451,442
--------------
GERMANY 8.97%
73 Bayerische Motoren Werke (BMW) A.G. Automobiles 56,691
6 Bayerische Motoren Werke (BMW) A.G. (1)* Automobiles 4,450
730 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 57,217
1,235 Hoechst A.G. Chemicals 51,255
1,920 Mannesmann A.G. Machinery & Engineering Services 220,258
1,170 Veba A.G.+ Diversified Industrials 70,061
46 Viag A.G. Utilities 26,993
--------------
486,925
--------------
ITALY 2.83%
4,273 ENI S.p.A. Oil 27,940
14,702 Telecom Italia S.p.A. Utilities 125,507
--------------
153,447
--------------
JAPAN 12.93%
5,000 Canon, Inc. Computer/Communications/Office Equipment 106,411
1,000 Dai Nippon Printing Co. Ltd. Media 15,880
1,000 Fuji Photo Film Photo Equipment & Supplies 37,012
1,000 Honda Motor Co. Ltd. Automobiles 32,694
3,000 Kao Corporation Food & Grocery 67,415
200 Keyence Corporation Electronics & Instruments 24,498
1,000 Murata Manufacturing Co. Ltd.+ Electronics & Instruments 41,330
2 NTT Mobile Communication Network, Inc.+ Utilities 81,956
2,000 Shiseido Co. Ltd.+ Health & Personal Care 25,591
1,600 Sony Corporation+ Household Durables & Appliances 116,043
4,000 Takeda Chemical Industries+ Health & Personal Care 153,337
--------------
702,167
--------------
</TABLE>
21
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/ COUNTRY/ PERCENT OF
PAR VALUE COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
MEXICO 0.15%
6,198 Grupo Financiero Banamex Accival-B* Commercial Banks & Other Banks $ 8,122
--------------
NETHERLANDS 9.47%
1,725 ABN Amro Holdings N.V. Commercial Banks & Other Banks 36,247
2,450 Elsevier N.V. Media 34,277
3,425 ING Groep N.V. Insurance-Multi/Property/Casualty 208,619
1,680 Koninklijke Ahold N.V. Retail Trade 62,023
1,515 Koninklijke KPN N.V. Utilities 75,758
1,105 Royal Dutch Petroleum Company Oil 54,961
1,315 TNT Post Groep N.V. Utilities 42,322
--------------
514,207
--------------
PHILIPPINES 0.18%
5,000 San Miguel Corp. Class B Beverage Industry/Tobacco Manufacturing 9,640
--------------
PORTUGAL 0.28%
685 Electricidade de Portugal S.A. Utilities 15,056
--------------
SINGAPORE 1.67%
6,200 Development Bank of Singapore Ltd. Commercial Banks & Other Banks 55,953
3,197 Singapore Press Holdings Ltd. Media 34,853
--------------
90,806
--------------
SPAIN 1.87%
3,197 Banco De Santander S.A. Commercial Banks & Other Banks 63,518
860 Telefonica S.A. Utilities 38,232
--------------
101,750
--------------
SWITZERLAND 12.89%
46 Alusuisse Lonza Holdings Group A.G. Fabricated Metal Products 53,566
76 Nestle S.A. Food & Grocery 165,385
71 Novartis A.G. Health & Personal Care 139,519
8 Roche Holding A.G.+ Health & Personal Care 97,583
58 Schweizerische Rueckversicherungs Insurance-Multi/Property/Casualty 151,163
301 Union Bank of Switzerland A.G. Commercial Banks & Other Banks 92,446
--------------
699,662
--------------
THAILAND 0.34%
9,000 Bangkok Bank Public Company Ltd.* Commercial Banks & Other Banks 18,569
--------------
</TABLE>
22
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
<TABLE>
<CAPTION>
SHARES/ COUNTRY/ PERCENT OF
PAR VALUE COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
UNITED KINGDOM 30.07%
7,675 Allied Zurich PLC* Insurance Life & Agents/Brokers $ 114,098
5,425 Barclays Bank PLC Commercial Banks & Other Banks 116,588
8,475 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 74,273
6,470 Cable & Wireless PLC Utilities 79,286
4,030 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 68,498
8,170 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 92,667
4,675 Glaxo Wellcome PLC Health & Personal Care 160,317
6,430 Granada Group PLC Entertainment/Leisure/Toys 113,289
5,132 Kingfisher PLC Retail Trade 55,358
9,010 Ladbroke Group PLC Entertainment/Leisure/Toys 36,082
8,920 Lloyds TSB Group PLC Commercial Banks & Other Banks 126,468
2,070 National Westminster Bank PLC Commercial Banks & Other Banks 39,783
7,725 Prudential Corporation PLC Insurance-Life & Agents/Brokers 116,250
7,300 Safeway PLC Retail Trade 36,557
12,250 Shell Transport & Trading Company PLC Oil 74,997
15,630 Siebe PLC Machinery & Engineering Services 61,426
4,150 TI Group PLC Machinery & Engineering Services 22,276
8,650 Vodafone Group PLC Utilities 139,996
2,405 Zeneca Group PLC Health & Personal Care 104,402
--------------
1,632,611
--------------
TOTAL COMMON STOCK (COST $4,544,542) 5,146,388
--------------
REPURCHASE AGREEMENT 4.51%
State Street Repurchase Agreement, 4.40% dated December 31, 1998 to be repurchased at
$245,120 on January 4, 1999, collateralized by Federal National Mortgage Association
$ 245,000 Note April 20, 2000, with a value of $249,968
245,000
--------------
TOTAL REPURCHASE AGREEMENT (COST $245,000) 245,000
--------------
STOCK RIGHT 0.01%
SPAIN
860 Telefonica S.A. Utilities 763
--------------
TOTAL STOCK RIGHTS (COST $0) 763
--------------
TOTAL INVESTMENTS (COST $4,789,542) 99.30% 5,392,151
OTHER ASSETS, LESS LIABILITIES 0.70% 37,925
--------------
NET ASSETS 100.00% $5,430,076
--------------
--------------
</TABLE>
* Non-income producing security.
+ Security is designated as collateral for forward foreign currency contracts.
(1) Shares have reduced dividend rights of ordinary shares.
23
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS DECEMBER 31, 1998
The table below indicates the IPT-International's outstanding forward
currency contracts at December 31, 1998:
<TABLE>
<CAPTION>
VALUE ON UNREALIZED
CONTRACT MATURITY DECEMBER 31, APPRECIATION
CURRENCY AMOUNT DATE 1998 (DEPRECIATION)
- -------------------------------------------------------------------- ------------ --------- ------------- -------------
<S> <C> <C> <C> <C>
Sell Swiss Franc.................................................... 123,000 1/14/99 $ 89,674 $ 2,419
Sell Japanese Yen................................................... 5,164,000 1/19/99 45,633 (5,686)
Sell Japanese Yen................................................... 5,977,000 1/20/99 52,825 (1,192)
Sell Japanese Yen................................................... 7,462,000 1/22/99 65,969 (50)
Sell German Deutschemark............................................ 50,000 1/26/99 30,086 625
Sell Japanese Yen................................................... 6,476,000 2/18/99 57,458 (3,604)
Sell Japanese Yen................................................... 4,698,000 2/26/99 41,725 (2,598)
Sell Japanese Yen................................................... 5,369,000 3/9/99 47,758 (1,947)
Sell Japanese Yen................................................... 10,616,000 3/15/99 94,511 (2,938)
-------------
$ (14,971)
-------------
-------------
</TABLE>
See notes to financial statements.
24
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<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.............................................. $ 3,141,252 $ 7,236,065 $ 8,258,509 $ 4,789,542
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
Investments, at value............................................. $ 3,713,353 $ 9,091,845 $ 9,847,763 $ 5,392,151
Cash.............................................................. 23,365 242 57,709 36,795
Foreign Cash (Cost-IPT-International $25,701)..................... -- -- -- 24,884
Receivables
Investment securities sold...................................... -- -- 114,864 9,827
Fund shares sold................................................ 23,582 18,552 69,820 4,930
Dividends....................................................... 1,747 6,360 265 6,381
Interest........................................................ 15 2,012 41 31
Due from Investment Advisor....................................... 7,104 3,992 8,018 13,833
------------ ------------- -------------- ----------------
TOTAL ASSETS........................................................ 3,769,166 9,123,003 10,098,480 5,488,832
------------ ------------- -------------- ----------------
LIABILITIES
Payables
Investment securities purchased................................. 22,142 5,231 177,463 16,291
Fund shares redeemed............................................ 22,522 14,405 43,301 3,823
Accrued investment advisory fees.................................. 2,181 5,415 6,268 3,794
Accrued custodian and accounting fees............................. 4,357 6,518 4,967 9,236
Accrued transfer agent fees....................................... 1,554 1,235 1,849 2,110
Accrued audit fees................................................ 6,050 6,050 6,050 8,000
Accrued administrative services fees.............................. 29 73 70 42
Accrued shareholder reports....................................... 222 54 209 489
Foreign currency contracts........................................ -- -- -- 14,971
------------ ------------- -------------- ----------------
TOTAL LIABILITIES................................................... 59,057 38,981 240,177 58,756
------------ ------------- -------------- ----------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $ 3,710,109 $ 9,084,022 $ 9,858,303 $ 5,430,076
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
CAPITAL SHARES
Authorized (Par Value $0.01)...................................... Unlimited Unlimited Unlimited Unlimited
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
Shares Outstanding................................................ 287,825 546,246 802,493 484,471
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............ $ 12.89 $ 16.63 $ 12.28 $ 11.21
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
</TABLE>
See notes to financial statements.
25
<PAGE>
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
<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......................................................... $ 12,769 $ 53,463 $ 3,395 $150,442
Interest.......................................................... 18,084 56,645 55,343 12,600
Foreign tax withholding........................................... -- -- -- (7,653)
-------- ------------ ------------- --------
Total Income.................................................... 30,853 110,108 58,738 155,389
-------- ------------ ------------- --------
EXPENSES
Investment advisory fees.......................................... 18,445 39,709 51,369 34,853
Administrative services fee....................................... 246 529 571 387
Accounting fees................................................... 15,083 15,083 15,083 12,994
Custodian fees.................................................... 12,221 21,818 13,863 30,468
Transfer agent fees............................................... 10,478 8,810 12,199 9,352
Audit fees........................................................ 8,551 8,551 9,552 10,002
Legal fees........................................................ 2,334 4,181 5,189 3,907
Trustees' fees and expenses....................................... 322 482 744 522
Reports to shareholders........................................... 3,082 5,872 16,138 7,826
Other expenses.................................................... 72 142 171 120
-------- ------------ ------------- --------
GROSS EXPENSES...................................................... 70,834 105,177 124,879 110,431
Less fees waived and expenses reimbursed by advisor............... (46,234) (52,203) (59,275) (64,078)
Less fees paid indirectly......................................... (269) (305) -- --
Less earnings credits............................................. (691) (698) (484) (1,358)
-------- ------------ ------------- --------
NET EXPENSES...................................................... 23,640 51,971 65,120 44,995
-------- ------------ ------------- --------
NET INVESTMENT INCOME (LOSS).................................... 7,213 58,137 (6,382) 110,394
-------- ------------ ------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency
transactions...................................................... (199,333) (546,982) (1,141,963) (229,058)
Net change in unrealized appreciation (depreciation) on securities
and foreign currency transactions................................. 567,945 1,742,890 1,414,843 645,925
-------- ------------ ------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS................................................ 368,612 1,195,908 272,880 416,867
-------- ------------ ------------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $375,825 $1,254,045 $ 266,498 $527,261
-------- ------------ ------------- --------
-------- ------------ ------------- --------
</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
-------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
12/31/98 12/31/97 12/31/98 12/31/97
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss).......... $ 7,213 $ 3,505 $ 58,137 $ 9,021
Net realized gain (loss) on securities
and foreign currency transactions... (199,333) 81,346 (546,982) 46,735
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 567,945 (23,122) 1,742,890 80,868
------------- ---------- ------------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. 375,825 61,729 1,254,045 136,624
------------- ---------- ------------- ----------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................. (6,568) (4,291) (59,415) (10,988)
In excess of net investment income.... -- -- (218) --
Net realized gains on investments..... -- (66,421) -- (41,693)
In excess of net realized gains on
investments......................... (1,714) -- -- (1,809)
------------- ---------- ------------- ----------
NET DECREASE IN NET ASSETS FROM
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS........................... (8,282) (70,712) (59,633) (54,490)
------------- ---------- ------------- ----------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold............... 3,139,142 901,641 7,293,615 1,091,415
Net asset value of shares issued in
reinvestment of distributions.......... 8,282 70,710 59,633 54,489
Payments for shares redeemed............ (1,038,750) (60,772) (964,756) (71,293)
------------- ---------- ------------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM FUND SHARE TRANSACTIONS... 2,108,674 911,579 6,388,492 1,074,611
------------- ---------- ------------- ----------
NET INCREASE (DECREASE) IN NET ASSETS... 2,476,217 902,596 7,582,904 1,156,745
NET ASSETS
Beginning of period..................... 1,233,892 331,296 1,501,118 344,373
------------- ---------- ------------- ----------
END OF PERIOD........................... $ 3,710,109 $1,233,892 $ 9,084,022 $1,501,118
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $ 3,338,427 $1,229,753 $ 7,776,042 $1,388,922
Undistributed net investment income
(loss)................................. 919 147 -- 1,278
Undistributed net realized gain (loss)
from investments....................... (201,338) (164) (547,800) (1,972)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 572,101 4,156 1,855,780 112,890
------------- ---------- ------------- ----------
TOTAL................................. $ 3,710,109 $1,233,892 $ 9,084,022 $1,501,118
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 260,915 77,915 496,555 82,469
Shares issued to shareholders in
reinvestment of dividends and
distributions.......................... 664 6,664 3,627 4,280
Shares repurchased...................... (84,839) (5,379) (66,025) (5,575)
------------- ---------- ------------- ----------
NET INCREASE (DECREASE) IN SHARES....... 176,740 79,200 434,157 81,174
Shares outstanding, beginning of
period................................. 111,085 31,885 112,089 30,915
------------- ---------- ------------- ----------
SHARES OUTSTANDING, END OF PERIOD....... 287,825 111,085 546,246 112,089
------------- ---------- ------------- ----------
------------- ---------- ------------- ----------
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BERGER IPT-SMALL COMPANY GROWTH BERGER/BIAM
FUND IPT-INTERNATIONAL FUND
-------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
12/31/98 12/31/97 12/31/98 12/31/97(1)
--------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss).......... $ (6,382) $ 610 $ 110,394 $ 12,844
Net realized gain (loss) on securities
and foreign currency transactions... (1,141,963) (73,776) (229,058) 4,516
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 1,414,843 153,881 645,925 (58,827)
--------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. 266,498 80,715 527,261 (41,467)
--------------- -------------- ------------- -------------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................. -- -- (66,063) --
In excess of net investment income.... (3,942) -- -- --
Net realized gains on investments..... -- -- -- --
In excess of net realized gains on
investments......................... -- -- (8,494) --
--------------- -------------- ------------- -------------
NET DECREASE IN NET ASSETS FROM
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS........................... (3,942) -- (74,557) --
--------------- -------------- ------------- -------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold............... 17,333,156 5,788,243 2,511,975 2,827,321
Net asset value of shares issued in
reinvestment of dividends and
distributions.......................... 3,921 -- 69,387 --
Payments for shares redeemed............ (10,460,889) (3,440,761) (309,821) (80,023)
--------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
DERIVED FROM FUND SHARE TRANSACTIONS... 6,876,188 2,347,482 2,271,541 2,747,298
--------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS... 7,138,744 2,428,197 2,724,245 2,705,831
NET ASSETS
Beginning of period..................... 2,719,559 291,362 2,705,831 --
--------------- -------------- ------------- -------------
END OF PERIOD........................... $ 9,858,303 $ 2,719,559 $ 5,430,076 $ 2,705,831
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $ 9,510,772 $ 2,642,040 $ 5,018,839 $ 2,747,298
Undistributed net investment income
(loss)................................. -- 1,020 43,128 40,266
Undistributed net realized gain (loss)
from investments....................... (1,241,723) (97,912) (218,989) (22,906)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 1,589,254 174,411 587,098 (58,827)
--------------- -------------- ------------- -------------
TOTAL................................. $ 9,858,303 $ 2,719,559 $ 5,430,076 $ 2,705,831
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 1,480,619 494,997 231,445 284,348
Shares issued to shareholders in
reinvestment of dividends and
distributions.......................... 331 -- 6,229 --
Shares repurchased...................... (903,929) (298,793) (29,584) (7,967)
--------------- -------------- ------------- -------------
NET INCREASE (DECREASE) IN SHARES....... 577,021 196,204 208,090 276,381
Shares outstanding, beginning of
period................................. 225,472 29,268 276,381 --
--------------- -------------- ------------- -------------
SHARES OUTSTANDING, END OF PERIOD....... 802,493 225,472 484,471 276,381
--------------- -------------- ------------- -------------
--------------- -------------- ------------- -------------
</TABLE>
(1) For the period from May 1, 1997 (commencement of investment operations) to
December 31, 1997.
See notes to financial statements.
28
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
BERGER IPT-100 FUND BERGER IPT-GROWTH & INCOME FUND
FOR A SHARE OUTSTANDING THROUGHOUT FOR A SHARE OUTSTANDING THROUGHOUT
THE PERIODS PRESENTED THE PERIODS PRESENTED
------------------------------------------------------ ------------------------------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, YEAR ENDED PERIOD ENDED DECEMBER 31, YEAR ENDED PERIOD ENDED
1998 DECEMBER 31, 1997 DECEMBER 31, 1996(1) 1998 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
------------- ----------------- -------- ------------- ----------------- --------
From investment
operations
Net investment
income (loss)... 0.02 0.01 0.03 0.10 0.01 0.10
Net realized and
unrealized gains
(losses) from
investments..... 1.79 1.39 0.36 3.25 2.75 1.04
------------- ----------------- -------- ------------- ----------------- --------
Total from
investment
operations......... 1.81 1.40 0.39 3.35 2.76 1.14
------------- ----------------- -------- ------------- ----------------- --------
Less dividends and
distributions
Dividends (from
net investment
income)......... (0.02) (0.04) -- (0.11)^ (0.10) --
Distributions
(from capital
gains).......... -- (0.64) -- -- (0.39) --
Distributions (in
excess of
capital
gains).......... (0.01) -- -- -- (0.02) --
------------- ----------------- -------- ------------- ----------------- --------
Total dividends
and
distributions... (0.03) (0.68) -- (0.11) (0.51) --
------------- ----------------- -------- ------------- ----------------- --------
Net asset value, end
of period.......... $ 12.89 $ 11.11 $ 10.39 $ 16.63 $ 13.39 $ 11.14
------------- ----------------- -------- ------------- ----------------- --------
------------- ----------------- -------- ------------- ----------------- --------
Total Return (2).... 16.29% 13.76% 3.90% 25.03% 24.99% 11.40%
------------- ----------------- -------- ------------- ----------------- --------
------------- ----------------- -------- ------------- ----------------- --------
Ratios/Supplemental
Data:
Net assets, end of
period.......... $3,710,109 $1,233,892 $331,296 $9,084,022 $1,501,118 $344,373
Net expense ratio
to average net
assets (3)...... 1.00% 1.00%(5) 1.00%(4)(5) 1.00% 1.00%(5) 1.00%(4)(5)
Ratio of net
income (loss) to
average net
assets.......... 0.29% 0.51% 0.50%(4) 1.10% 1.39% 1.80%(4)
Gross expense
ratio to average
net assets...... 2.88% 9.18% 7.69%(4) 1.99% 9.62% 7.70%(4)
Portfolio turnover
rate............ 258% 246% 56% 426% 215% 60%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Total return not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived and expenses
reimbursed by the advisor. Gross and net expenses do not include the
deduction of any charges attributable to any particular variable insurance
contract.
4. Annualized.
5. Restated to conform with new presentation standards.
^ Distributions in excess of net investment income for the year ended December
31, 1998, amounted to less than $0.01 on a per share basis.
See notes to financial statements.
29
<PAGE>
FINANCIAL HIGHLIGHTS
BERGER IPT-SMALL COMPANY GROWTH FUND
For a Share Outstanding Throughout the Periods Presented
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, YEAR ENDED PERIOD ENDED
1998 DECEMBER 31, 1997 DECEMBER 31, 1996(1)
------------- ----------------- --------------------
<S> <C> <C> <C>
Net asset value, beginning of
period....................... $ 12.06 $ 9.95 $ 10.00
------------- ----------------- --------
From investment operations
Net investment income
(loss).................... -- -- 0.01
Net realized and unrealized
gains (losses) from
investments............... 0.23 2.11 (0.06)
------------- ----------------- --------
Total from investment
operations................... 0.23 2.11 (0.05)
------------- ----------------- --------
Less dividends and
distributions
Dividends (from net
investment income)........ -- -- --
Dividends (in excess of net
investment income)........ (0.01) -- --
Distributions (from capital
gains).................... -- -- --
------------- ----------------- --------
Total dividends and
distributions................ (0.01) -- --
------------- ----------------- --------
Net asset value, end of
period....................... $ 12.28 $ 12.06 $ 9.95
------------- ----------------- --------
------------- ----------------- --------
Total Return (2).............. 1.87% 21.21% (0.50%)
------------- ----------------- --------
------------- ----------------- --------
Ratios/Supplemental Data:
Net assets, end of period... $9,858,303 $2,719,559 $291,362
Net expense ratio to average
net assets (3)............ 1.15% 1.15%(5) 1.15%(4)(5)
Ratio of net income (loss)
to average net assets..... (0.11%) 0.05% 0.14%(4)
Gross expense ratio to
average net assets........ 2.19% 5.81% 8.57%(4)
Portfolio turnover rate..... 147% 194% 80%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Total return not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived and expenses
reimbursed by the advisor. Gross and net expenses do not include the
deduction of any charges attributable to any particular variable insurance
contract.
4. Annualized.
5. Restated to conform with new presentation standards.
See notes to financial statements.
30
<PAGE>
FINANCIAL HIGHLIGHTS
BERGER/BIAM IPT-INTERNATIONAL FUND
For a Share Outstanding Throughout the Periods Presented
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
DECEMBER 31, 1998 DECEMBER 31, 1997(1)
----------------- --------------------
<S> <C> <C>
Net asset value, beginning of period.................................. $ 9.79 $ 10.00
----------------- -----------
From investment operations
Net investment income (loss)........................................ 0.08 0.05
Net realized and unrealized gains (losses) from investments 1.50 (0.26)
----------------- -----------
Total from investment operations.................................... 1.58 (0.21)
----------------- -----------
Less dividends and distributions
Dividends (from net investment income).............................. (0.14) --
Distributions (from capital gains).................................. -- --
Distributions (in excess of capital gains).......................... (0.02) --
----------------- -----------
Total dividends and distributions................................... (0.16) --
----------------- -----------
Net asset value, end of period...................................... $ 11.21 $ 9.79
----------------- -----------
----------------- -----------
Total Return (2).................................................... 16.13% (2.10%)
----------------- -----------
----------------- -----------
Ratios/Supplemental Data:
Net assets, end of period........................................... $5,430,076 $2,705,831
Net expense ratio to average net assets (3)......................... 1.20% 1.20%(4)(5)
Ratio of net income (loss) to average net assets.................... 2.85% 0.86%(4)
Gross expense ratio to average net assets........................... 2.85% 3.83%(4)
Portfolio turnover rate............................................. 20% 14%
</TABLE>
- ------------------------------
1. For the period from May 1, 1997 (commencement of investment operations) to
December 31, 1997.
2. Total return not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived and expenses
reimbursed by the Advisor. Gross and net expenses do not include the
deduction of any charges attributable to any particular variable insurance
contract.
4. Annualized.
5. Restated to conform with new presentation standards.
See notes to financial statements.
31
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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 (the "Acts"). Shares of
each Fund are fully paid and non-assessable when issued. All shares issued by a
particular Fund participate equally in dividends and other distributions by that
Fund. The Trust's shares are not offered directly to the public, but are sold
exclusively to insurance companies ("Participating Insurance Companies") as a
pooled funding vehicle for variable annuity and variable life insurance
contracts issued by separate accounts of Participating Insurance Companies and
to qualified plans. All costs incurred in organizing the Trust were paid by
Berger Associates, Inc. ("Berger"), the investment advisor to IPT-100, IPT-G&I
and 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 December 31, 1998,
Berger, directly or indirectly, owned 9%, 5%, 3% and 42% of the outstanding
shares of IPT-100, IPT-G&I, IPT-SCG and IPT-International, respectively.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges 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. Prices of
foreign securities are converted to U.S. dollars using exchange rates determined
prior to the close of the exchange. 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 of the
Funds.
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 securities will be valued at their fair market
value as determined in good faith pursuant to consistently applied procedures
established by the trustees.
FORWARD CONTRACTS AND OPTIONS
Each Fund may hold certain types of forward foreign currency contracts
and/or options (except for IPT-International, which may only hold forward
foreign currency exchange contracts) for the purpose of hedging each portfolio
against
32
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (CONTINUED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
exposure to market 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 instruments and the assets being hedged,
or unexpected adverse 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 are included in Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions in the Statement of Operations.
CONCENTRATION OF RISK
The Funds may have elements of risk due to concentrated investments in
specific industries or foreign issuers located in a specific country. Such
concentrations may subject the Funds to additional risks resulting from future
political or economic conditions and/or possible impositions of adverse foreign
governmental laws or currency exchange restrictions. Net realized and unrealized
gain or loss from investment securities includes fluctuations from currency
exchange rates and fluctuations in market value.
CALCULATION OF NET ASSET VALUE
Each Fund's per share calculation of net asset value is determined by
dividing the total value of its assets, less liabilities, by the total number of
shares outstanding.
FEDERAL INCOME TAX STATUS
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code ("Code") applicable to regulated investment companies and to
distribute all of their taxable income to shareholders. Therefore, no income tax
provision is required.
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. Certain
dividends from foreign securities will be recorded as soon as the Fund is
informed of the dividend if such information is obtained subsequent to 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 of the
Trust, 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.
33
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (CONTINUED)
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%; IPT-SCG and IPT-International at
.90%. As sub-advisor to IPT-International, BIAM receives a sub-advisory fee from
BBOI at an annual rate of .40% 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 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 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 the average daily net assets of IPT-International. Berger has
voluntarily waived such sub-administration fee for the period from May 1, 1997
to December 31, 1998.
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, 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 year ended December
31, 1998, the Funds received the following earnings credits totaling $269 and
$305 from IPT-100 and IPT-G&I, respectively. IPT-SCG and IPT-International had
no earnings credits.
Certain officers and/or directors of Berger and BBOI are also officers
and/or trustees of the Trust. Trustees who are not affiliated with Berger or
BBOI received trustees' fees totaling $322, $482, $744 and $522 from IPT-100,
IPT-G&I, IPT-SCG, and IPT-International Fund, respectively, for the year ended
December 31, 1998.
The Funds adopted a director/trustee fee deferral plan (the "Plan") which
allows the directors/trustees to defer the receipt of all or a portion of the
trustee fees payable. The deferred fees remain in the Berger Funds and are
invested in various Berger Funds until distribution in accordance with the Plan.
34
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (CONTINUED)
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities, by Fund (excluding short-term
securities) for the year ended December 31, 1998, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ------------------------------------------------------------- ------------- -------------
<S> <C> <C>
IPT-100...................................................... $ 7,054,699 $ 5,419,314
IPT-G&I...................................................... 24,661,727 18,741,871
IPT-SCG...................................................... 13,030,377 6,993,344
IPT-International............................................ 2,709,803 726,644
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the period.
B. Unrealized Appreciation, Unrealized Depreciation and Federal Tax Cost of
Securities
At December 31, 1998, the federal tax cost of securities and 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>
GROSS GROSS
FEDERAL TAX UNREALIZED UNREALIZED
FUND COST APPRECIATION DEPRECIATION NET
- ------------------------------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
IPT-100............................. $ 3,179,412 $ 580,795 $ (46,854) $ 533,941
IPT-G&I............................. 7,364,904 1,804,169 (77,228) 1,726,941
IPT-SCG............................. 8,477,686 1,754,985 (384,908) 1,370,077
IPT-International................... 4,796,386 870,162 (274,397) 595,765
</TABLE>
C. Federal Income Taxes
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 Funds.
For the fiscal year ended December 31, 1998, 78% and 81% of the ordinary
income distributions declared by the IPT-100, and IPT-G&I respectively,
qualified for the dividends received deduction available to corporate
shareholders. The IPT-SCG and IPT-International distributions from ordinary
income did not qualify for the dividends received deduction to corporate
shareholders for the fiscal year ended December 31, 1998.
At December 31, 1998, the IPT-100, IPT G&I and IPT-International had
$156,868, $418,961 and $172,062, respectively, in net capital loss carryovers
which expire in the year 2006. IPT-SCG had $16,903, $39,451 and $931,350 in
capital loss carryovers, which expire in the years 2004, 2005, and 2006
respectively. The capital loss carryovers may be used to offset future realized
capital gains for federal income tax purposes.
Additionally, IPT-100 and IPT-SCG incurred and elected to defer post-October
31 net capital losses of $6,312 and $34,842, respectively, to the year ended
December 31, 1999. IPT-International incurred and elected to defer post-October
31 net capital losses and currency losses amounting to $45,992 to the year ended
December 31, 1999.
During the year ended December 31, 1998, IPT-International Fund paid $7,653
of foreign taxes on $52,105 of foreign source income. The IPT-International will
make the foreign tax credit election to pass through these taxes to the
shareholders.
The Funds distribute net realized capital gains, if any, to their
shareholders at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. The differences are primarily due to the differing treatment of net
operating losses, wash sale deferrals, capital loss carryforwards and foreign
currency transactions. Accordingly, these
35
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998 (CONTINUED)
3. INVESTMENT TRANSACTIONS (CONTINUED)
permanent differences in the character of income and distributions between
financial statements and tax basis have been reclassified to paid-in-capital.
During the year ended December 31, 1998, the following reclassifications were
made.
<TABLE>
<CAPTION>
IPT-100 IPT-G&I IPT-SCG IPT-INTERNATIONAL
----------- --------- --------- ----------------
<S> <C> <C> <C> <C>
Paid in Capital.......................................................... $ -- $ (1,372) $ (7,456) $ --
Undistributed Net Investment Income...................................... 127 218 9,304 (41,469)
Undistributed Net Realized Gain.......................................... (127) 1,154 (1,848) 41,469
</TABLE>
36
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Trustees and Shareholders of
Berger Institutional Products Trust
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger IPT-100 Fund, Berger
IPT-Growth and Income Fund, Berger IPT-Small Company Growth Fund and Berger/BIAM
IPT-International Fund (constituting Berger Institutional Products Trust,
hereafter referred to as the "Trust") at December 31, 1998, the results of each
of their operations for the year then ended, the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1998 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Denver, Colorado
January 29, 1999
37
