<PAGE>
THE BERGER INSTITUTIONAL PRODUCTS TRUST
[LOGO]
SEMI-ANNUAL REPORT
JUNE 30, 1999
BERGER IPT-100 FUND
BERGER IPT-GROWTH & INCOME FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER/BIAM IPT-INTERNATIONAL FUND
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
SEMI-ANNUAL REPORT
JUNE 30, 1999
BERGER IPT-100 FUND
BERGER IPT-GROWTH AND INCOME FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER/BIAM IPT-INTERNATIONAL FUND
------------------------
Table of Contents
<TABLE>
<S> <C>
BERGER IPT-100 FUND
Portfolio Manager's Letter............................................ 1
Schedule of Investments............................................... 3
BERGER IPT-GROWTH & INCOME FUND
Portfolio Manager's Letter............................................ 8
Schedule of Investments............................................... 10
BERGER IPT-SMALL COMPANY GROWTH FUND
Portfolio Manager's Letter............................................ 14
Schedule of Investments............................................... 16
BERGER/BIAM IPT-INTERNATIONAL FUND
Portfolio Manager's Letter............................................ 21
Schedule of Investments............................................... 23
Financial Statements...................................................... 27
Notes to Financial Statements............................................. 31
Financial Highlights...................................................... 35
</TABLE>
<PAGE>
BERGER IPT-100 FUND SEMI-ANNUAL
PORTFOLIO MANAGER'S COMMENTARY JOHN B. JARES & TINO R. SELLITTO
PERFORMANCE
The Berger IPT-100 Fund's (the "Fund") six-month return for the period ended
June 30, 1999, was 10.16%,(1) which bettered the 6.87% return for the S&P MidCap
400(2) index and lagged the 12.38% return for the Standard & Poor's (S&P) 500(3)
index.
The stock market was mixed over this six-month period. After favoring large
cap stocks early in the year, the market began to broaden in April as investors
ventured beyond large caps. Mid cap stocks, among others, became more
attractive.
The fact that our Fund outperformed the mid cap index but trailed the large
cap index reflects our balance between mid cap and large cap holdings in our
portfolio based on market opportunities. Portfolio moves made during this
reporting period attempted to take advantage of the second quarter market
broadening and enabled us to beat the mid cap index.
Our performance during this period was significantly dampened by two of our
larger holdings--Cadence Design Systems and McKesson HBOC. Cadence Design
Systems, a maker of chip design software, was our single largest stock holding
at the beginning of the year. The stock lost more than half its value on the
announcement that the company could not meet demand and that there was a
shake-up in key management. McKesson HBOC's stock value plummeted upon news of
significant accounting problems following an announced merger. We no longer have
positions in either of these companies in our portfolio.
PERIOD IN REVIEW
The energy sector continued to perform well as oil prices surged past $19 a
barrel, up from a low of $11. We increased our weighting in energy from 1.2% to
nearly 7% of Fund assets between December 31, 1998, and June 30, 1999. Our Fund
benefited from good performances from energy holdings Halliburton and Royal
Dutch Petroleum Company. We feel positive about future prospects for the energy
sector.
Our largest sector continues to be technology, which we slightly increased
this reporting period from 24% to 28% of Fund assets. We believe in this sector
for the long term because of the critical role it plays, and will continue to
play, in the operations of businesses around the world. We had particularly
strong performances from Motorola, Xilinx, and Texas Instruments in the second
quarter.
Among our consumer holdings, Best Buy turned in a strong performance in the
quarter ended June 30.
Our overweighting in financial stocks early in the year served as a drag on
Fund performance. Particularly in the second quarter, concerns about rising
interest rates and hints of potential inflation worried investors. Financial
stocks were negatively impacted by this move up in interest rates.
1
<PAGE>
LOOKING AHEAD
Domestic economic growth is robust, and international economies are
recovering from the financial crisis that began nearly two years ago. These
factors should bode well for corporate earnings in the months ahead, although,
as expected, the Federal Reserve Board raised rates by one-quarter percent on
the last day of June. We are concerned about the likelihood of rising interest
rates here at home. This could put pressure on price/earnings multiples and
eventually slow the U.S. economy. We believe that there will be rotation in the
market over the last six months of the year, with periods of outperformance by
growth stocks followed by slower periods.
Effective May 10, 1999, John Jares and Tino Sellitto became the co-managers
of the Fund replacing Patrick Adams. John has been a portfolio manager for the
Berger Balanced Fund since its inception in 1997. Tino has been the portfolio
manager of the Berger Growth & Income Fund since November 1998. Additionally,
John and Tino have been co-portfolio managers of the Berger 100 Fund since May
10, 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 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.
(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.
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
BERGER IPT-100 FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C> <C>
Since Inception
1-Year (5/1/96))
15.62% 14.03%
Berger IPT - 100 Fund S & P 500
5/1/96 $10,000 $10,000
6/30/96 $9,780 $10,290
9/30/96 $10,080 $10,608
12/31/96 $10,390 $11,492
3/31/97 $10,030 $11,801
6/30/97 $11,250 $13,860
9/30/97 $12,420 $14,897
12/31/97 $11,820 $15,325
3/31/98 $13,809 $17,462
6/30/98 $13,097 $18,038
9/30/98 $10,596 $16,247
12/31/98 $13,746 $19,704
3/31/99 $14,215 $20,686
6/30/99 $15,143 $22,143
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
BERGER IPT-100 FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C>
1-Year
15.62%
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 $10,486
3/31/99 $10,557
6/30/99 $10,633
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
2
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
COMMON STOCK 87.65%
BANKS-MONEY CENTER 1.93%
1,300 Bank of America Corp. $ 95,306
-----------
BANKS-SUPER REGIONAL 3.45%
1,200 Bank One Corp. 71,475
1,400 Fleet Financial Group, Inc. 62,125
1,000 The Bank of New York Co., Inc. 36,687
-----------
170,287
-----------
BEVERAGE-SOFT DRINKS 2.66%
1,200 PepsiCo, Inc. 46,425
3,700 The Pepsi Bottling Group, Inc. 85,331
-----------
131,756
-----------
BUILDING PRODUCTS-WOOD 0.85%
400 Georgia-Pacific Group 18,950
500 Willamette Industries, Inc. 23,031
-----------
41,981
-----------
COMPUTER-MANUFACTURERS 0.37%
400 Apple Computer, Inc.* 18,525
-----------
COMPUTER-SERVICES 1.12%
300 Computer Sciences Corp.* 20,756
1,100 IMS Health, Inc. 34,375
-----------
55,131
-----------
COMPUTER SOFTWARE-DESKTOP 2.19%
1,200 Microsoft Corp.* 108,225
-----------
COMPUTER SOFTWARE-ENTERPRISE 2.10%
800 J.D. Edwards & Co.* 14,800
900 Legato Systems, Inc.* 51,975
1,000 Oracle Corp.* 37,125
-----------
103,900
-----------
DIVERSIFIED OPERATIONS 2.97%
1,550 Tyco International, Ltd. 146,862
-----------
ELECTRONIC-MILITARY SYSTEMS 0.57%
500 General Motors Corp. Class H* 28,125
-----------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 3.09%
700 Applied Materials, Inc.* 51,712
500 Teradyne, Inc.* 35,875
500 KLA-Tencor Corp.* 32,437
700 Lam Research Corp.* 32,681
-----------
152,705
-----------
</TABLE>
3
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 11.53%
1,400 Intel Corp. $ 83,300
660 Maxim Integrated Products, Inc.* 43,890
2,700 Motorola, Inc. 255,825
500 Texas Instruments, Inc. 72,500
2,000 Xilinx, Inc.* 114,500
-----------
570,015
-----------
FINANCE-CONSUMER/COMMERCIAL LOANS 1.32%
400 Associates First Capital Corp. Class A 17,725
1,000 Household International, Inc. 47,375
-----------
65,100
-----------
FINANCE-MORTGAGE & RELATED SERVICES 3.24%
1,300 Freddie Mac 75,400
700 Fannie Mae 47,862
700 The FINOVA Group, Inc. 36,837
-----------
160,099
-----------
INTERNET-E*COMMERCE 0.56%
1,100 TD Waterhouse Group, Inc.* 27,568
-----------
INTERNET-ISP/CONTENT 0.67%
300 America Online, Inc.* 33,150
-----------
INTERNET-NETWORK SECURITY/SOLUTIONS 0.60%
200 Juniper Networks, Inc.* 29,800
-----------
INTERNET-SOFTWARE 0.83%
250 CMGI, Inc.* 28,515
225 Phone.com, Inc.* 12,600
-----------
41,115
-----------
LEISURE-PRODUCTS 1.58%
1,550 The Seagram Co., Ltd. 78,081
-----------
LEISURE-SERVICES 3.29%
500 Carnival Corp. 24,250
2,600 Royal Caribbean Cruises Ltd. 113,750
800 The Walt Disney Co. 24,650
-----------
162,650
-----------
LEISURE-TOYS/GAMES/HOBBY 0.43%
800 Mattel, Inc. 21,150
-----------
MEDIA-CABLE TELEVISION 4.29%
1,500 Adelphia Communications Corp.* 95,437
400 EchoStar Communications Corp.* 61,375
750 Time Warner, Inc. 55,125
-----------
211,937
-----------
</TABLE>
4
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
MEDIA-RADIO/TELEVISION 3.30%
1,550 Clear Channel Communications, Inc.* $ 106,853
1,900 Infinity Broadcasting Corp.* 56,525
-----------
163,378
-----------
MEDICAL-DRUG/DIVERSIFIED 1.40%
1,000 Warner-Lambert Co. 69,375
-----------
MEDICAL-ETHICAL DRUGS 3.25%
1,550 American Home Products Corp. 89,125
1,000 Eli Lilly & Co. 71,625
-----------
160,750
-----------
MEDICAL-MEDICAL/DENTAL SERVICES 0.93%
1,100 Quintiles Transnational Corp.* 46,200
-----------
OIL & GAS-DRILLING 1.31%
2,200 ENSCO International, Inc. 43,862
800 Transocean Offshore, Inc. 21,000
-----------
64,862
-----------
OIL & GAS-FIELD SERVICES 1.01%
1,100 Halliburton Co. 49,775
-----------
OIL & GAS-INTERNATIONAL INTEGRATED 0.97%
800 Royal Dutch Petroleum Co. 48,200
-----------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 2.01%
2,300 Burlington Resources, Inc. 99,475
-----------
OIL & GAS-U.S. INTEGRATED 1.51%
2,300 USX-Marathon Group 74,893
-----------
PAPER & PAPER PRODUCTS 1.23%
1,200 International Paper Co. 60,600
-----------
POLLUTION CONTROL-SERVICES 3.65%
3,360 Waste Management, Inc.* 180,600
-----------
RETAIL-APPAREL/SHOE 1.17%
1,200 Abercrombie & Fitch Co.* 57,600
-----------
RETAIL-CONSUMER ELECTRONICS 1.74%
1,000 Best Buy Co., Inc.* 67,500
200 Circuit City Stores 18,600
-----------
86,100
-----------
RETAIL-DEPARTMENT STORES 2.08%
3,800 Consolidated Stores Corp.* 102,600
-----------
</TABLE>
5
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
RETAIL-MAJOR DISCOUNT CHAINS 0.66%
500 Dayton-Hudson Corp. $ 32,500
-----------
RETAIL-SUPER/MINI-MARKETS 0.79%
1,400 The Kroger Co.* 39,112
-----------
RETAIL/WHOLESALE-BUILDING PRODUCTS 0.69%
600 Lowes Cos., Inc. 34,012
-----------
RETAIL/WHOLESALE-OFFICE SUPPLIES 1.07%
2,400 Office Depot, Inc.* 52,950
-----------
SOAP & CLEANING PREPARATIONS 0.90%
500 Procter & Gamble Co. 44,625
-----------
TELECOMMUNICATIONS-EQUIPMENT 3.11%
800 CIENA Corp.* 24,150
1,925 Lucent Technologies, Inc. 129,817
-----------
153,967
-----------
TELECOMMUNICATIONS-SERVICES 2.30%
300 AT&T Corp. 16,743
820 MCI WorldCom, Inc.* 70,725
800 Qwest Communications International, Inc.* 26,450
-----------
113,918
-----------
TEXTILE-APPAREL MANUFACTURING 0.82%
550 Tommy Hilfiger Corp.* 40,434
-----------
TRANSPORTATION-AIR FREIGHT 1.10%
1,000 FDX Corp.* 54,250
-----------
UTILITY-WATER SUPPLY 1.01%
2,500 Azurix Corp.* 50,000
-----------
TOTAL COMMON STOCK (COST $3,589,557) 4,333,644
-----------
U.S. GOVERNMENT AGENCY OBLIGATION 9.61%
$ 475,000 Federal National Mortgage Association
Discount Note
4.49%, 7/1/99 475,000
-----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (COST $475,000) 475,000
-----------
CONVERTIBLE PREFERRED STOCK 0.39%
MEDIA-CABLE TV 0.39%
100 Adelphia Communications Corp. 19,300
-----------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $20,000) 19,300
-----------
</TABLE>
6
<PAGE>
BERGER IPT-100 FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF MARKET
PRINCIPAL AMOUNT NET ASSETS VALUE
- --------------------- ------------- -----------
<C> <S> <C> <C> <C>
REPURCHASE AGREEMENT 4.39%
$ 217,000 State Street Bank & Trust Repurchase
Agreement, 4.70%, dated June 30, 1999, to be
repurchased at $217,028 on July 1, 1999,
collateralized by Federal Home Loan Mortgage
Association Discount Note, November 15, 2028,
with a value of $223,200. $ 217,000
-----------
TOTAL REPURCHASE AGREEMENT (COST $217,000) 217,000
-----------
TOTAL INVESTMENTS (COST $4,301,557) 102.04% 5,044,944
TOTAL LIABILITIES, LESS CASH AND OTHER ASSETS -2.04% (100,899)
-----------
NET ASSETS 100.00% $4,944,045
-----------
-----------
</TABLE>
- ------------------------
* Non-income producing security.
See notes to financial statements.
7
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND SEMI-ANNUAL
PORTFOLIO MANAGER'S COMMENTARY TINO R. SELLITTO
PERFORMANCE
The Berger IPT-Growth and Income Fund (the "Fund") gained 18.34%(1) for the
six-month period ended June 30, 1999, and significantly outperformed the
Standard & Poor's (S&P) 500(2) index, which gained 12.38% over the same period.
It was a very mixed market in the first half of 1999. During the first
quarter, the market continued to favor the large, high-quality growth companies
that dominate our portfolio. As a result, Fund performance benefited from
holdings in such large cap companies as America Online, At Home and Amgen.
The market broadened considerably and moved away from these companies during
the second quarter. As a result, Fund performance was dragged down by some of
the same stocks that had buoyed it the previous quarter. However, because of our
emphasis in the technology, energy and consumer sectors, our Fund's six-month
performance was still able to better that of the index.
PERIOD IN REVIEW
Our sector weighting in technology was virtually unchanged during this
reporting period. We continue to believe in technology's long-term prospects
because of the vital role that it plays in the operations of businesses around
the world. Texas Instruments had a particularly strong first half of the year,
selling its money-losing memory business and increasing its presence in wireless
with digital signal processors.
The energy sector continued to perform well as oil prices surged past $19 a
barrel, up from a low of $11. We increased our weighting in energy from nearly
6% to 9% of Fund assets between December 31, 1998, and June 30, 1999. Our Fund
benefited from good performances from energy holdings Baker Hughes and
Burlington Resources. We feel positive about future prospects for the energy
sector.
We also significantly added to our holdings in consumer cyclicals,
increasing investment in that sector from 6% of Fund assets to more than 10%.
Several stocks in this sector, including Dayton-Hudson and Intimate Brands
reported good gains.
Some of our holdings in the financial sector were volatile this year because
of increasing investor concerns about rising interest rates. This was not the
case, however, for industry leader Charles Schwab. Schwab continued to gain an
impressive share of the market and is now the third-largest financial
institution in terms of U.S. household financial assets. Schwab is also a leader
in online trading and continues to have a low-cost operating structure compared
with full-service brokerage competitors. We believe Charles Schwab is one of the
premier growth companies in the U.S. and look for the company to continue to
expand market share and increase assets in the next few years.
8
<PAGE>
LOOKING AHEAD
In the second half of the year, we expect the market to be focused on the
direction of interest rates. If inflation continues higher, the Federal Reserve
Board will have to raise rates again, which could hurt the market as a whole.
Given the Fed's announced "neutral" stance on interest rates going forward and
our market analysis, we don't foresee that happening. We do, however, believe
that there will be rotation in the market over the last six months of the year,
with periods of outperformance by growth stocks followed by slower periods.
- ------------------------
(1) Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
(2) The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the
U.S. stock market. One cannot invest directly in an index.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN BERGER IPT-GROWTH & 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
BERGER IPT-GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C> <C>
Since Inception
1 Year (5/1/96)
31.82% 25.70%
BERGER IPT- GROWTH
& INCOME FUND S&P 500
5/1/96 $10,000 $10,000
6/30/96 $10,020 $10,290
9/30/96 $10,200 $10,608
12/31/96 $11,140 $11,492
3/31/97 $11,190 $11,801
6/30/97 $12,320 $14,000
9/30/97 $14,110 $14,897
12/31/97 $13,924 $15,325
3/31/98 $15,318 $17,462
6/30/98 $15,630 $18,000
9/30/98 $14,465 $16,247
12/31/98 $17,500 $19,704
3/31/99 $19,545 $20,686
6/30/99 $20,602 $22,143
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
BERGER IPT-GROWTH & INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C>
1 Year
31.82%
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 $10,486
3/31/99 $10,557
6/30/99 $10,633
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
9
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
COMMON STOCK 77.32%
AEROSPACE/DEFENSE 1.83%
3,900 Ratheon Co. $ 274,462
------------
BANKS-SOUTHEAST 1.28%
5,000 First Tennessee National Corp. 191,562
------------
BANKS-SUPER REGIONAL 2.67%
2,350 Northern Trust Corp. 227,950
4,700 The Bank of New York Co., Inc. 172,431
------------
400,381
------------
BANKS-WEST/SOUTHWEST 1.10%
2,600 Zions Bancorp. 165,100
------------
CHEMICALS-BASIC 1.21%
4,300 Akzo Nobel N.V. ADR 182,212
------------
COMPUTER-LOCAL NETWORKS 1.80%
4,200 Cisco Systems, Inc.* 270,900
------------
COMPUTER-MANUFACTURERS 1.51%
3,300 Sun Microsystems, Inc.* 227,287
------------
COMPUTER-MEMORY DEVICES 0.86%
2,300 Network Appliance, Inc.* 128,512
------------
COMPUTER-SERVICES 1.91%
9,200 IMS Health, Inc. 287,500
------------
COMMERCIAL SERVICES-MISCELLANEOUS 0.60%
2,850 Paychex, Inc. 90,843
------------
COMPUTER SOFTWARE-DESKTOP 3.21%
5,350 Microsoft Corp.* 482,503
------------
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 1.48%
3,000 Applied Materials, Inc.* 221,625
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 4.07%
4,500 Intel Corp. 267,750
2,300 Linear Technology Corp. 154,675
1,300 Texas Instruments, Inc. 188,500
------------
610,925
------------
FINANCE-INVESTMENT BANKERS 2.60%
2,500 Charles Schwab Corp. 274,687
1,600 The Goldman Sachs Group, Inc. 115,600
------------
390,287
------------
FINANCE-INVESTMENT MANAGEMENT 1.02%
1,500 Morgan Stanley Dean Witter & Co. 153,750
------------
</TABLE>
10
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
INTERNET-ISP/CONTENT 0.46%
400 Yahoo!, Inc.* $ 68,900
------------
INTERNET-NETWORK SECURITY/SOLUTIONS 1.09%
1,100 Juniper Networks, Inc.* 163,900
------------
INTERNET-SOFTWARE 0.60%
1,200 Vignette Corp.* 90,000
------------
LEISURE-PRODUCTS 2.08%
3,400 Galileo International, Inc. 181,687
2,600 The Seagram Co. Ltd. 130,975
------------
312,662
------------
MEDIA-CABLE TELEVISION 2.48%
7,300 Comcast Corp. 280,593
600 EchoStar Communications Corp.* 92,062
------------
372,655
------------
MEDIA-RADIO/TELEVISION 2.84%
2,300 Clear Channel Communications, Inc.* 158,556
9,000 Infinity Broadcasting Corp.* 267,750
------------
426,306
------------
MEDICAL-BIOMED/GENETICS 1.70%
4,200 Amgen, Inc.* 255,675
------------
MEDICAL-ETHICAL DRUGS 4.36%
3,800 American Home Products Corp. 218,500
1,950 Eli Lilly & Co. 139,668
2,000 Merck & Co., Inc. 148,000
2,600 Pharmacia & Upjohn, Inc. 147,712
------------
653,880
------------
MEDICAL-PRODUCTS 3.45%
2,300 Allergan, Inc. 255,300
5,100 Guidant Corp.* 262,331
------------
517,631
------------
METAL ORES-NON FERROUS 0.87%
2,100 Alcoa, Inc. 129,937
------------
OIL & GAS-DRILLING 1.02%
7,700 ENSCO International, Inc. 153,518
------------
OIL & GAS-FIELD SERVICES 0.98%
3,250 Halliburton Co. 147,062
------------
OIL & GAS-INTERNATIONAL INTEGRATED 1.04%
2,600 Royal Dutch Petroleum Co. 156,650
------------
</TABLE>
11
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
OIL & GAS-MACHINERY/EQUIPMENT 0.98%
4,400 Baker Hughes, Inc. $ 147,400
------------
OIL & GAS-PRODUCTION/PIPELINE 1.30%
4,600 The Williams Companies, Inc. 195,787
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 3.99%
4,050 Anadarko Petroleum Corp. 149,090
6,400 Burlington Resources, Inc. 276,800
6,900 Evergreen Resources, Inc.* 173,793
------------
599,683
------------
OIL & GAS-U.S. INTEGRATED 0.98%
4,500 USX-Marathon Group 146,531
------------
RETAIL-APPAREL/SHOE 2.28%
4,095 Intimate Brands, Inc. 194,000
2,950 The Gap, Inc. 148,606
------------
342,606
------------
RETAIL-DEPARTMENT STORES 0.77%
1,500 Kohl's Corp.* 115,781
------------
RETAIL-MAJOR DISCOUNT CHAINS 3.09%
2,300 Costco, Inc.* 184,143
4,300 Dayton-Hudson Corp. 279,500
------------
463,643
------------
TELECOMMUNICATIONS-CELLULAR 1.03%
2,700 Sprint Corp. (PCS Group)* 154,237
------------
TELECOMMUNICATIONS-EQUIPMENT 4.42%
3,600 Lucent Technologies, Inc. 242,775
4,600 Nokia Corp. ADR 421,187
------------
663,962
------------
TELECOMMUNICATIONS-SERVICES 4.59%
4,101 Corning, Inc. 287,582
2,600 Global Crossing Ltd.* 110,825
1,500 MCI WorldCom, Inc.* 129,375
2,300 Montana Power Co. 162,150
------------
689,932
------------
UTILITY-TELEPHONE 2.40%
5,050 Alltel Corp. 361,075
------------
UTILITY-WATER SUPPLY 1.37%
10,300 Azurix Corp.* 206,000
------------
TOTAL COMMON STOCK (COST $9,220,812) 11,613,262
------------
</TABLE>
12
<PAGE>
BERGER IPT-GROWTH AND INCOME FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS OR PERCENT OF
PRINCIPAL AMOUNT NET ASSETS MARKET VALUE
- ---------------- -------------- ------------
<C> <S> <C> <C>
CONVERTIBLE CORPORATE DEBT 8.27%
COMPUTER-MEMORY DEVICES 2.00%
61,000 EMC Corp. 3.25%, 3/15/02 $ 300,882
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 1.28%
135,000 Conexant Systems 4.25%, 5/1/06 144A 191,875
------------
INTERNET-ISP/CONTENT 2.34%
28,000 America Online, Inc. 4.00%, 11/15/00 236,565
146,000 At Home Corporation 0.52%, 12/28/01 144A 114,245
------------
350,810
------------
MEDIA-RADIO/TELEVISION 1.82%
215,000 Clear Channel Communications, Inc.
2.62%, 4/1/03 273,050
------------
RETAIL/WHOLESALE-BUILDING PRODUCTS 0.83%
45,000 The Home Depot, Inc. 3.25%, 10/1/01 125,381
------------
TOTAL CONVERTIBLE CORPORATE DEBT (COST $865,990) 1,241,998
------------
U.S. GOVERNMENT AGENCY OBLIGATION 7.32%
1,$100,000 Federal Home Loan Mortgage Association
Discount Note 4.49%, 7/1/99 1,100,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (COST $1,100,000) 1,100,000
------------
CONVERTIBLE PREFERRED STOCK 6.56%
TELECOMMUNICATIONS-SERVICES 0.65%
1,700 Qwest Communications International 144A 96,900
------------
MEDIA-CABLE TELEVISION 4.13%
1,050 Adelphia Communications Corp. 202,650
3,500 Houston Industries, Inc. 417,391
------------
620,041
------------
UTILITY-ELECTRIC POWER 1.78%
4,850 Texas Utilities Co. 266,750
------------
TOTAL CONVERTIBLE PREFERRED STOCK (COST $920,542) 983,691
------------
REPURCHASE AGREEMENT 4.01%
$603,000 State Street Bank & Trust Repurchase
Agreement, 4.70% dated June 30, 1999, to
be repurchased at $603,079 on July 1,
1999, collateralized by Federal Home
Loan Mortgage Note, May 18, 2001, with a
value of $615,819. 603,000
------------
TOTAL REPURCHASE AGREEMENT (COST $603,000) 603,000
------------
TOTAL INVESTMENTS (COST $12,710,344) 103.48% 15,541,951
TOTAL LIABILITIES, LESS CASH AND OTHER ASSETS -3.48% (522,219)
------------
NET ASSETS 100.00% $15,019,732
------------
------------
</TABLE>
- ------------------------
* Non-income producing security.
ADR -- American Depositary Receipt.
144A -- Designates the resale of this security is restricted to qualified
institutional buyers.
See notes to financial statements.
13
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND SEMI-ANNUAL
PORTFOLIO MANAGER'S COMMENTARY AMY K. SELNER
PERFORMANCE
For the six-month period ended June 30, 1999, the Berger IPT-Small Company
Growth Fund gained 15.72%(1) compared with 9.28% for the Russell 2000 index.(2)
In the first quarter of 1999, small cap performance, as measured by the
Russell 2000, lagged that of large caps, as measured by the Standard & Poor's
(S&P) 500,(3) by 10.4%. Tables were turned in the second quarter, however, as
small caps outperformed by 8.5%. This was the best quarterly outperformance for
small caps since the fourth quarter 1992 when the spread was 9.4%. Also, second
quarter was the first consecutive three-month period of outperformance by small
cap stocks since the spring of 1996.
Strength in the Russell 2000 occurred despite general weakness in Internet
stocks, which accounted for 10% of the index. Within the small cap group, growth
stocks outperformed value stocks in the first quarter, and value stocks had a
very strong second quarter. Small cap value stocks had been pummeled in the
first quarter and were due for a short-term bounce.
In June, small cap funds had positive inflows reversing five months of large
cash outflows in 1999. This is a trend we would like to see continue, along with
a broadening of the market. Rising interest rates in the short term may have
increased the attention given to small caps, which are much cheaper than large
caps on a relative valuation basis.
PERIOD IN REVIEW
After taking a breather in April and May, technology stocks roared back in
June. Growth prospects remained explosive for the Internet infrastructure and
telecommunication and broadband companies. These are companies that provide the
"plumbing" that enables broad acceptance for Internet applications and services.
Within the semiconductor capital equipment stocks, we prefer the photomask,
Dupont Photomasks, and automation, PRI Automation, verticals. These companies
make the equipment to build semiconductors. Their customers are moving to
next-generation technologies, which bodes well for spending on equipment.
Although small cap health care stocks lagged the index in performance, our
holdings turned in respectable performances. As uncertainty surrounding
prescription drug benefits and the government's impact on pricing within the
drug industry lifts, we expect performance to be even stronger. We continued to
emphasize growth companies in the bio-tech area such as Cephalon, which focuses
on treatment of neurological disorders and cancer, and on companies with strong
pipelines, consistent earnings growth and strong management.
We also continued our heavy weighting in energy, which began mid first
quarter 1999. This has proved advantageous. Supply/demand dynamics within the
sector have improved, energy prices have risen, and energy stocks have been
strong. Since the first of the year, crude oil prices are up close to 60%,
driven largely by high levels of OPEC compliance and an improving outlook for
demand in 2000/2001. Natural gas prices also remain strong. Both Veritas DGC and
Basin Exploration have been strong performers for our Fund.
LOOKING AHEAD
The market has quickly discounted the Federal Reserve Board's one-quarter
percent increase in interest rates and is assuming the Fed will remain neutral
during the second half of the year. We expect consumption growth will moderate
to more sustainable levels and housing growth to slow. Even with this
moderation, there is a risk the Fed may raise rates again to squelch any
inflation fears, which today are nonexistent. We believe market leadership will
continue to rotate from sector to sector, and we look for growth stocks to
continue to outperform.
14
<PAGE>
While relative valuation currently favors small caps, the operating profit
growth of small caps must improve relative to large caps in order for this
outperformance to be sustained. This may be difficult when GDP growth
internationally may be accelerating relative to domestic growth in 2000. Larger
cap stocks would generally have better profit prospects under that scenario. We
continue to focus on exceptional stock selection to distinguish the relative
performance of our Fund.
- ------------------------
(1) Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
(2) The Russell 2000 is an unmanaged index, with dividends reinvested, which
consists of the 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.
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
BERGER IPT-SMALL COMPANY GROWTH FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C> <C>
1-Year Since Inception (5/1/96)
4.45% 11.78%
BERGER IPT-SMALL COMPANY
GROWTH FUND RUSSELL 2000
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 $10,000 $11,595
9/30/97 $12,380 $13,320
12/31/97 $12,060 $12,874
3/31/98 $13,000 $14,169
6/30/98 $13,610 $13,509
9/30/98 $9,960 $10,787
12/31/98 $12,285 $12,546
3/31/99 $11,985 $11,866
6/30/99 $14,216 $13,711
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
<CAPTION>
INITIAL INVESTMENT $10,000
BERGER IPT-SMALL COMPANY GROWTH FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C>
1-Year
4.45%
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 $10,486
3/31/99 $10,557
6/30/99 $10,633
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
15
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS
OR
PRINCIPAL PERCENT OF
AMOUNT NET ASSETS MARKET VALUE
- ----------- -------------- ------------
<C> <S> <C> <C>
COMMON STOCK 86.26%
AEROSPACE/DEFENSE EQUIPMENT 1.10%
4,100 Aviation Sales Co.* $ 161,950
------------
COMPUTER-SERVICES 2.94%
1,000 Globix Corp.* 44,187
6,050 International Integration, Inc.* 136,125
4,250 USWeb Corp.* 94,296
5,050 Whittman-Hart, Inc.* 160,337
------------
434,945
------------
COMMERCIAL SERVICES-ADVERTISING 1.38%
5,000 Lamar Advertising Co.* 204,687
------------
COMMERCIAL SERVICES-MISCELLANEOUS 0.77%
2,600 MedQuist Inc.* 113,750
------------
COMMERCIAL SERVICES-SCHOOLS 1.51%
10,000 Devry, Inc.* 223,750
------------
COMMERCIAL SERVICES-STAFFING 1.71%
4,300 Labor Ready, Inc.* 139,750
4,700 Select Appointments PLC ADR 112,800
------------
252,550
------------
COMPUTER SOFTWARE-DESKTOP 0.74%
3,100 Macromedia, Inc.* 109,275
------------
COMPUTER SOFTWARE-EDUCATIONAL/ENTERTAINMENT 1.13%
10,150 CBT Group PLC ADR* 167,475
------------
COMPUTER SOFTWARE-ENTERPRISE 5.25%
5,190 Aspen Technology, Inc.* 60,982
2,450 Mercury Interactive Corp.* 86,668
2,000 Peregrine Systems, Inc.* 51,375
5,050 SAGA Systems, Inc.* 64,387
1,300 Sapient Corp.* 73,612
8,800 TSI International Software Ltd.* 249,700
2,000 VERITAS Software Corp.* 189,875
------------
776,599
------------
ELECTRONIC-LASER SYSTEMS/COMPONENTS 1.38%
4,100 Cymer, Inc.* 102,500
1,600 Laser Vision Centers, Inc.* 100,800
------------
203,300
------------
ELECTRONIC-MISCELLANEOUS COMPONENTS 1.24%
4,000 Sawtek, Inc.* 183,500
------------
</TABLE>
16
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS
OR
PRINCIPAL PERCENT OF
AMOUNT NET ASSETS MARKET VALUE
- ----------- -------------- ------------
<C> <S> <C> <C>
ELECTRONIC-SEMICONDUCTOR EQUIPMENT 4.92%
3,850 DuPont Photomasks, Inc.* $ 184,318
4,650 Etec Systems, Inc.* 154,612
3,800 PRI Automation, Inc.* 137,750
2,300 Teradyne, Inc.* 165,025
2,500 Veeco Instruments, Inc.* 85,000
------------
726,705
------------
ELECTRONIC-SEMICONDUCTOR MANUFACTURING 8.25%
3,000 Applied Micro Circuits Corp.* 246,750
3,500 Cree Research, Inc.* 269,281
2,200 GlobeSpan, Inc.* 87,450
5,200 MIPS Technologies, Inc.* 249,275
5,100 MMC Networks, Inc.* 228,225
2,050 Vitesse Semiconductor Corp.* 138,246
------------
1,219,227
------------
ELECTRONIC PRODUCTS-MISCELLANEOUS 3.46%
6,400 Powerwave Technologies, Inc.* 206,400
2,600 Proxim, Inc.* 150,800
5,500 Universal Electronics, Inc.* 154,343
------------
511,543
------------
FINANCE-CONSUMER/COMMERCIAL LOANS 0.46%
1,100 Safeguard Scientifics, Inc.* 68,200
------------
FINANCE-MORTGAGE & RELATED SERVICES 0.66%
6,750 Resource America, Inc. 97,875
------------
FINANCE-SAVINGS & LOANS 0.55%
3,000 Webster Financial Capital Corp. 81,375
------------
FINANCIAL SERVICES-MISCELLANEOUS 1.13%
4,100 Metris Companies, Inc.* 167,075
------------
INSURANCE-BROKERS 0.75%
4,100 Pre-Paid Legal Services, Inc.* 111,468
------------
INTERNET-E*COMMERCE 0.79%
50 eBay, Inc.* 7,550
3,200 NextCard, Inc.* 108,600
------------
116,150
------------
INTERNET-ISP/CONTENT 0.62%
800 Rhythms NetConnections, Inc.* 46,700
300 StarMedia Network, Inc.* 19,237
150 Yahoo!, Inc.* 25,837
------------
91,774
------------
</TABLE>
17
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS
OR
PRINCIPAL PERCENT OF
AMOUNT NET ASSETS MARKET VALUE
- ----------- -------------- ------------
<C> <S> <C> <C>
INTERNET-NETWORK SECURITY/SOLUTIONS 0.57%
700 Exodus Communication, Inc.* $ 83,956
------------
INTERNET-SOFTWARE 3.87%
1,600 Ariba, Inc.* 155,600
1,600 CMGI, Inc.* 182,500
1,275 Phone.com, Inc.* 71,400
8,100 Spyglass, Inc.* 163,012
------------
572,512
------------
MEDIA-RADIO/TELEVISION 6.21%
1,850 Clear Channel Communications, Inc.* 127,534
5,600 Cox Radio, Inc.* 303,800
3,350 Hispanic Broadcasting Corp.* 254,181
1,400 Radio One, Inc.* 65,100
5,200 SBS Broadcasting SA* 167,700
------------
918,315
------------
MEDICAL-BIOMEDICAL/GENETICS 3.64%
6,100 Cephalon, Inc.* 105,987
3,000 IDEC Pharmaceuticals Corp.* 231,187
2,960 MedImmune, Inc.* 200,540
------------
537,714
------------
MEDICAL-ETHICAL DRUGS 2.21%
3,950 Forest Laboratories, Inc.* 182,687
3,650 Jones Pharma, Inc. 143,718
------------
326,405
------------
MEDICAL-INSTRUMENTS 2.47%
9,250 IDEXX Laboratories, Inc.* 215,640
7,800 Ventana Medical Systems, Inc.* 149,175
------------
364,815
------------
MEDICAL-MEDICAL/DENTAL SERVICES 1.44%
8,250 Renal Care Group, Inc.* 213,468
------------
MEDICAL-WHOLESALE DRUG/SUNDRIES 0.98%
4,200 Priority Healthcare Corp.* 144,900
------------
OIL & GAS-DRILLING 0.72%
3,400 Atwood Oceanics, Inc.* 106,250
------------
OIL & GAS-FIELD SERVICES 2.40%
4,100 BJ Services Co.* 120,693
11,900 Paradigm Geophysical Ltd.* 81,068
8,350 Veritas DGC, Inc.* 152,909
------------
354,670
------------
</TABLE>
18
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS
OR
PRINCIPAL PERCENT OF
AMOUNT NET ASSETS MARKET VALUE
- ----------- -------------- ------------
<C> <S> <C> <C>
OIL & GAS-MACHINERY/EQUIPMENT 0.53%
7,100 Varco International, Inc.* $ 77,656
------------
OIL & GAS-U.S. EXPLORATION & PRODUCTION 3.19%
5,600 Basin Exploration, Inc.* 112,350
5,650 Devon Energy Corp. 201,987
5,600 Noble Affiliates, Inc. 157,850
------------
472,187
------------
POLLUTION CONTROL-SERVICES 2.31%
5,100 Casella Waste Systems, Inc.* 132,600
12,663 Tetra Tech, Inc.* 208,931
------------
341,531
------------
RETAIL-APPAREL/SHOE 1.86%
2,800 Payless ShoeSource, Inc.* 149,800
4,900 The Men's Wearhouse, Inc.* 124,950
------------
274,750
------------
RETAIL-HOME FURNISHINGS 0.76%
4,550 Rent-Way, Inc.* 112,043
------------
RETAIL-MISCELLANEOUS DIVERSIFIED 1.39%
6,700 Michaels Stores, Inc.* 205,187
------------
RETAIL-SUPER/MINI-MARKETS 0.68%
2,100 Whole Foods Market, Inc.* 100,931
------------
TELECOMMUNICATIONS-EQUIPMENT 3.21%
200 Copper Mountain Networks, Inc.* 15,450
2,850 Gilat Satellite Networks, Ltd.* 149,625
1,500 Redback Networks, Inc.* 188,343
6,000 Research in Motion, Ltd.* 121,500
------------
474,918
------------
TELECOMMUNICATIONS-SERVICES 7.08%
6,800 Destia Communications, Inc.* 84,150
7,900 e.spire Communications, Inc.* 83,443
8,150 Globalstar Telecommunications, Ltd.* 188,978
4,600 ICG Communications, Inc.* 98,325
2,700 Intermedia Communications, Inc.* 81,000
3,200 Metromedia Fiber Network, Inc.* 115,000
5,100 Viatel, Inc.* 286,237
2,200 Winstar Communications, Inc.* 107,271
------------
1,044,404
------------
TOTAL COMMON STOCK (COST $9,900,839) 12,749,785
------------
</TABLE>
19
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
SHARES/UNITS
OR
PRINCIPAL PERCENT OF
AMOUNT NET ASSETS MARKET VALUE
- ----------- -------------- ------------
<C> <S> <C> <C>
U.S. GOVERNMENT AGENCY OBLIGATION 8.12%
$1,200,000 Federal Home Loan Mortgage Discount Note
4.49%, 7/1/99 $ 1,200,000
------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION (COST $1,200,000) 1,200,000
------------
REPURCHASE AGREEMENT 3.84%
$ 568,000 State Street Repurchase Agreement, 4.70%,
dated June 30, 1999, to be repurchased at
$568,074 on July 1, 1999, collateralized
by Federal Home Loan Bank Note,
August 24, 2000, with a value of $580,225. 568,000
------------
TOTAL REPURCHASE AGREEMENT (COST $568,000) 568,000
------------
TOTAL INVESTMENT (COST $11,668,839) 98.22% 14,517,785
OTHER ASSETS, LESS LIABILITIES 1.78% 262,494
------------
NET ASSETS 100.00% $14,780,279
------------
------------
</TABLE>
- ------------------------
ADR -- American Depositary Receipt.
PLC -- Public Limited Company.
*Non-income producing security.
See notes to financial statements.
20
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND SEMI-ANNUAL
PORTFOLIO MANAGER'S COMMENTARY BANK OF IRELAND ASSET MANAGEMENT (U.S.) LTD.
PERFORMANCE
The Berger/BIAM IPT-International Fund (the "Fund") gained 6.24%(1) over the
six-month period ended June 30, 1999, which bettered the 4.11% gain for the MSCI
EAFE Index.(2) Several stocks in the Growth in Telecommunications theme were
among the most significant contributors to this solid performance, particularly
Vodafone in the first quarter and NTT DoCoMo in the second quarter. Mannesmann
delivered strong returns in both quarters.
Telecom stocks were driven higher primarily by explosive growth in worldwide
mobile phone usage. Analysts have consistently underestimated the rate of this
growth, and there is little reason to believe the rate will slow in the near
future. The industry also benefited from rising fixed-line call volume, boosted
by Internet traffic, and increasing merger and acquisition activity.
Japanese companies in the Technological Innovation theme aided Fund
performance this reporting period. Canon unveiled positive earnings news and
announced an alliance with Toshiba to develop flat panel TV screens. Murata
Manufacturing, despite a decline in profits, had a stronger than anticipated
order book and forecast a profit increase over the next 12 months. Sony's stock
received a boost following the company's announcement that it would refocus on
its traditional electronics businesses.
Other Japanese companies in a variety of themes also made positive
contributions to Fund performance. This is not surprising given that Japan has
been the best performer among the world's major equity markets since January 1,
1999.
On the negative side, a number of stocks in the Healthcare Needs theme did
not fare well, as many investors decided cyclical companies offered better value
than traditional growth companies such as pharmaceuticals. Glaxo Wellcome
suffered after reporting increased competition for some of its key drugs.
Insurance companies also generally underperformed because of concerns about the
impact of rising U.S. interest rates. Swiss Re, the world's second-largest
reinsurer declined on belief that non-life reinsurance will suffer as the number
of natural catastrophes increases.
PERIOD IN REVIEW
European stock markets have been on a six-month roller-coaster ride. They
got off to a flying start in January as investors came back into the market
following the introduction of the new euro currency. But signs of deteriorating
market conditions led the markets down in February. After a stronger March, the
European Central Bank cut interest rates by one-half percent in April--twice the
level expected. The markets performed well that month but were weaker in May.
The unexpected neutral interest rate bias announced by the U.S. Federal Reserve
Board sparked a June rally.
Positive sentiment toward the Japanese market was revived in January as
investors were encouraged by merger rumors in the banking sector and indications
of plans to apply for additional public funding by a number of banks. After
moving sideways in February, the market rose sharply in March, driven primarily
by overseas buying. The rally continued in April but stalled in May following
some trade friction with the U.S. and a drop in industrial production. After the
announcement of first-quarter GDP growth of 1.9%, the Japanese market took off
again. International investors, particularly Americans, continued to build their
weightings in Japanese companies, fueling the positive sentiment.
Other Asian markets began to show signs of recovery in March and enjoyed an
explosive rally in April. Throughout the region, a pickup in industrial
production and imports was hailed as a signal of the end of economic crisis.
Asian markets continued strong in June, aided by falling interest rates and
positive investor sentiment. Economies across Asia are looking better, and
recovery from the bottom is definitely evident.
21
<PAGE>
LOOKING AHEAD
Much investor focus has been on whether the cyclical stock rally is
long-term or temporary. We continue to look for companies capable of
above-average earnings growth on a company-by-company basis rather than
across-the-board sector allocations. We remain extremely cautious about
investing in Southeast Asia, even though the acute crisis appears to be over.
Although Japanese figures have been strong, we believe Japan is a stock-picker's
market because not all companies will deliver on the promises they are making to
investors. In Europe, the new euro currency received negative press following
its steady decline against the U.S. dollar and other major currencies. The euro
is acting as a catalyst for change, however, and is increasing competition
across Europe. We will continue to seek companies at the forefront of this
change that can significantly grow their earnings in the single-currency
environment. We believe telecommunications, pharmaceutical and financial service
companies are most likely to benefit from the single currency and have
positioned the portfolio accordingly.
- ------------------------
(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, with dividends reinvested.
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-INTERNATIONAL FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1999
<S> <C> <C> <C>
1-Year 6.24%
Since Inception (5/1/97) 9.09%
BERGER/BIAM IPT- COST OF LIVING
INTERNATIONAL FUND EAFE INDEX
5/1/97 $10,000 $10,000 $10,000
6/30/97 $10,170 $11,238 $10,006
9/30/97 $10,300 $11,159 $10,062
12/31/97 $9,790 $10,285 $10,069
3/31/98 $11,100 $11,798 $10,125
6/30/98 $11,370 $11,923 $10,175
9/30/98 $9,490 $10,229 $10,212
12/31/98 $11,369 $12,342 $10,231
3/31/99 $11,694 $12,514 $10,300
6/30/99 $12,079 $12,908 $10,375
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
</TABLE>
22
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
COUNTRY/SHARES PERCENT OF
PRINCIPLE AMOUNT COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
COMMON STOCK 97.89%
AUSTRALIA 5.22%
325 Brambles Industries, Ltd. Business & Industrial Services $ 8,546
4,850 National Australia Bank, Ltd. Commercial Banks & Other Banks 80,115
11,936 News Corp., Ltd. Media 101,659
10,090 Telstra Corp., Ltd. Utilities 57,715
4,962 Westpac Banking Corp., Ltd. Commercial Banks & Other Banks 32,130
--------------
280,165
--------------
DENMARK 0.59%
650 Tele Danmark A.S. Utilities 31,883
--------------
FRANCE 8.80%
457 Alcatel Alsthom* Computer/Commercial/Office Equipment 64,279
850 AXA-UAP* Insurance - Multi/Property/Casualty 103,616
755 Michelin Class B Automobile Components 30,862
780 Total S.A. Class B Oil 100,549
2,137 Vivendi Diversified Holding Companies 172,972
--------------
472,278
--------------
GERMANY 9.81%
79 Bayerische Motoren Werke (BMW) Automobiles 54,297
880 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 57,128
1,845 Hoechst A.G. Chemicals 83,461
1,575 Mannesmann A.G. Machinery & Engineering Services 234,842
1,170 Veba A.G. Diversified Industrials 68,720
60 Viag A.G. Utilities 28,316
--------------
526,764
--------------
HONG KONG 0.54%
800 HSBC Holdings PLC*+ Commercial Banks & Other Banks 29,180
--------------
ITALY 2.84%
5,390 ENI S.p.A. Oil 32,158
11,595 Telecom Italia S.p.A. Utilities 120,436
--------------
152,594
--------------
JAPAN 14.32%
4,000 Canon, Inc.+ Computer/Commercial/Office Equipment 114,960
1,000 Fuji Photo Film Co.+ Photo Equipment & Supplies 37,824
1,000 Honda Motor Co., Ltd. Automobiles 42,366
2,000 Kao Corp. Food & Grocery Products 56,158
100 Keyence Corp. Electronics & Instruments 17,491
1,000 Murata Manufacturing Co., Ltd. Electronics & Instruments 65,738
100 NTT Mobile Communication Network,
Inc.+ Utilities 135,442
2,000 Shiseido Co., Ltd. Health & Personal Care 29,962
1,200 Sony Corp.+ Household Durables & Appliances 129,330
</TABLE>
23
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
COUNTRY/SHARES PERCENT OF
PRINCIPLE AMOUNT COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
3,000 Takeda Chemical Industries+ Health & Personal Care $ 138,993
--------------
768,264
--------------
NETHERLANDS 9.10%
2,145 ABN AMRO Holdings N.V. Commercial Banks & Other Banks 46,416
1,750 Elsevier N.V. Media 20,286
3,235 ING Groep N.V. Insurance - Multi/Property/Casualty 175,009
2,190 Koninklijke Ahold N.V. Retail Trade 75,373
1,515 Koninklijke KPN N.V. Utilities 71,031
1,105 Royal Dutch Petroleum Co. N.V. Oil 64,675
1,490 TNT Post Group N.V. Utilities 35,543
--------------
488,333
--------------
NEW ZEALAND 0.17%
2,178 Telecom Corp. of New Zealand Utilities 9,333
--------------
PORTUGAL 0.39%
1,155 Electricidade de Portugal S.A. Utilities 20,780
--------------
SINGAPORE 1.76%
4,950 Development Bank of Singapore, Ltd.* Commercial Banks & Other Banks 60,468
2,000 Singapore Press Holdings, Ltd. Media 34,063
--------------
94,531
--------------
SOUTH KOREA 0.45%
600 Korea Telecom Corp. Utilities 24,000
--------------
SPAIN 2.47%
6,994 Banco Santander S.A. Commercial Banks & Other Banks 72,790
1,245 Telefonica S.A. Utilities 59,926
--------------
132,716
--------------
SWEDEN 0.30%
500 Telefonaktiebolaget LM Ericsson Utilities 16,047
--------------
SWITZERLAND 10.43%
46 Alusuisse Lonza Group A.G. Fabricated Metal Products 53,566
62 Nestle S.A. Food & Grocery Products 111,604
68 Novartis A.G. Health & Personal Care 99,199
9 Roche Holding A.G. Health & Personal Care 92,426
55 Schweizerische Rueckversicherungs Insurance - Multi/Property/Casualty 104,623
330 Union Bank of Switzerland A.G. Commercial Banks & Other Banks 98,403
--------------
559,821
--------------
THAILAND 0.30%
4,300 Bangkok Bank PLC+ Commercial Banks & Other Banks 16,072
--------------
</TABLE>
24
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
<TABLE>
<CAPTION>
COUNTRY/SHARES PERCENT OF
PRINCIPLE AMOUNT COMPANY NET ASSETS INDUSTRY MARKET VALUE
- ------------------- ------------ ------------ -------------------------------------------------- --------------
<C> <S> <C> <C>
UNITED KINGDOM 30.40%
7,675 Allied Zurich PLC Insurance - Life & Agents/Brokers $ 96,488
2,155 AstraZeneca Group PLC Health & Personal Care 83,365
4,325 Barclays Bank PLC* Commercial Banks & Other Banks 125,858
7,425 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 69,818
6,670 Cable & Wireless PLC Utilities 85,010
8,060 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 51,331
8,170 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 85,324
2,708 EMI Group Ordinary Class B* Media 21,728
4,225 Glaxo Wellcome PLC Health & Personal Care 117,420
5,680 Granada Group PLC Entertainment/Leisure/Toys 105,388
9,010 Hilton Group PLC Entertainment/Leisure/Toys 35,721
14,430 Invensys PLC Machinery & Engineering Services 68,299
3,082 Kingfisher PLC Retail Trade 35,466
7,620 Lloyds TSB Group PLC Commercial Banks & Other Banks 103,304
1,056 National Power PLC Utilities 7,690
2,620 National Westminster Bank PLC* Commercial Banks & Other Banks 55,550
1,275 Pearson PLC Media 25,907
8,975 Prudential Corp., PLC Insurance - Life & Agents/Brokers 132,144
1,010 Railtrack Group PLC Road & Rail 20,650
14,550 Shell Transport & Trading Co. PLC Oil 109,120
750 TI Group PLC Machinery & Engineering Services 5,024
9,185 Vodafone Group PLC Utilities 180,990
1,103 WPP Group PLC Media 9,371
--------------
1,630,966
--------------
TOTAL COMMON STOCK (COST $4,353,556) 5,253,727
--------------
REPURCHASE AGREEMENT 1.21%
$ 65,000 State Street Repurchase Agreement, 4.70%, dated June 30, 1999, to be repurchased at
$65,008 on July 1, 1999, collateralized by Federal National Mortgage Association Note,
November 15, 2028, with a value of $69,750. 65,000
--------------
TOTAL REPURCHASE AGREEMENT (COST $65,000) 65,000
--------------
TOTAL INVESTMENTS (COST $4,418,556) 99.10% 5,318,727
OTHER ASSETS, LESS LIABILITIES 0.90% 48,485
--------------
NET ASSETS 100.00% $5,367,212
--------------
--------------
</TABLE>
- ------------------------
* Non-income producing security.
+ Security is designated as collateral for forward foreign currency contracts.
PLC -- Public Limited Company.
See notes to financial statements.
25
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1999
The table below indicates the Berger/BIAM IPT-International's outstanding
forward currency contracts at June 30, 1999.
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON APPRECIATION
CURRENCY AMOUNT DATE JUNE 30, 1999 (DEPRECIATION)
--------------------- ------------ ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Buy Japanese Yen 1,952,000 7/2/1999 $ 16,044 $ 81
Buy Japanese Yen 6,066,000 7/2/1999 49,817 292
Sell Japanese Yen 8,018,000 7/2/1999 67,708 1,475
Sell Hong Kong Dollar 103,100 7/2/1999 13,288 (1)
Sell Thai Bat Dollar 6,000 7/2/1999 163 (1)
Sell Japanese Yen 12,741,000 7/21/1999 108,712 3,233
Sell Japanese Yen 7,460,000 8/18/1999 61,755 (241)
Sell Japanese Yen 7,010,000 8/24/1999 56,955 (1,353)
Sell Japanese Yen 5,199,000 8/31/1999 43,188 (102)
Sell Japanese Yen 5,387,000 9/9/1999 44,880 (38)
Sell Japanese Yen 10,188,000 9/16/1999 87,014 1,972
------------- -------------
$ 549,524 $ 5,317
------------- -------------
------------- -------------
</TABLE>
See notes to financial statements.
26
<PAGE>
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
BERGER BERGER IPT- BERGER/BIAM
BERGER IPT-GROWTH & SMALL COMPANY IPT-INTERNATIONAL
IPT-100 FUND INCOME FUND GROWTH FUND FUND
------------ ------------- -------------- ----------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at cost.............................................. $ 4,301,557 $ 12,710,344 $ 11,668,839 $ 4,418,556
------------ ------------- -------------- ----------------
Investments, at value............................................. $ 5,044,944 $ 15,541,951 $ 14,517,785 $ 5,318,727
Cash.............................................................. 152 215 537 863
Foreign Cash (Cost-IPT-International $70,493)..................... -- -- -- 69,806
Receivables
Investment securities sold...................................... -- 107,951 409,904 16,517
Fund shares sold................................................ 7,198 24,456 1,381,428 2,344
Dividends....................................................... 2,315 8,104 114 16,772
Interest........................................................ 28 3,372 74 8
Forward currency contracts........................................ -- -- -- 5,317
Due from Investment Advisor....................................... 4,189 1,836 4,242 5,721
------------ ------------- -------------- ----------------
TOTAL ASSETS........................................................ 5,058,826 15,687,885 16,314,084 5,436,075
------------ ------------- -------------- ----------------
LIABILITIES
Payables
Investment securities purchased................................. 101,630 604,760 1,514,726 2,896
Fund shares redeemed............................................ 327 44,173 247 40,894
Accrued investment advisory fees.................................. 2,892 8,280 8,507 4,059
Accrued custodian and accounting fees............................. 4,724 6,169 5,013 13,583
Accrued transfer agent fees....................................... 1,571 1,196 1,795 2,152
Accrued audit fees................................................ 3,387 3,387 3,194 4,730
Accrued administrative service fees............................... 38 110 95 45
Accrued shareholder reports....................................... 212 78 228 504
------------ ------------- -------------- ----------------
TOTAL LIABILITIES................................................... 114,781 668,153 1,533,805 68,863
------------ ------------- -------------- ----------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING......................... $ 4,944,045 $ 15,019,732 $ 14,780,279 $ 5,367,212
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
CAPITAL SHARES
Authorized (Par Value $0.01)...................................... Unlimited Unlimited Unlimited Unlimited
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
Shares Outstanding................................................ 348,088 763,059 1,040,436 450,832
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE............ $ 14.20 $ 19.68 $ 14.21 $ 11.91
------------ ------------- -------------- ----------------
------------ ------------- -------------- ----------------
</TABLE>
See notes to financial statements.
27
<PAGE>
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
BERGER BERGER BERGER IPT- BERGER/BIAM
IPT-100 IPT-GROWTH & SMALL COMPANY IPT-INTERNATIONAL
FUND INCOME FUND GROWTH FUND FUND
---------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
INCOME
Dividends......................................................... $ 12,197 $ 47,474 $ 1,690 $ 62,889
Interest.......................................................... 16,002 25,789 26,289 3,997
Foreign tax withholding........................................... -- -- -- (9,276)
---------- ------------- -------------- --------
Total Income.................................................... 28,199 73,263 27,979 57,610
---------- ------------- -------------- --------
EXPENSES
Investment advisory fees.......................................... 15,894 42,275 43,542 24,943
Administrative service fees....................................... 211 564 484 277
Accounting fees................................................... 7,542 7,542 7,542 7,811
Custody fees...................................................... 9,296 4,448 16,615 18,071
Transfer agent fees............................................... 5,218 4,275 6,077 5,010
Audit fees........................................................ 4,612 4,612 5,419 7,005
Legal fees........................................................ 3,535 3,878 4,157 3,610
Trustees' fees.................................................... 224 598 529 288
Reports to shareholders........................................... 7,958 7,946 12,218 13,039
Other fees........................................................ 174 463 399 251
---------- ------------- -------------- --------
GROSS EXPENSES.................................................. 54,664 76,601 96,982 80,305
---------- ------------- -------------- --------
Less fees waived and expenses reimbursed by advisor............... (33,506) (20,244) (41,333) (47,341)
Less fees paid indirectly......................................... (385) (266) -- --
Less earnings credits............................................. (96) (736) (167) (207)
---------- ------------- -------------- --------
Net Expenses...................................................... 20,677 55,355 55,482 32,757
---------- ------------- -------------- --------
NET INVESTMENT INCOME (LOSS).................................... 7,522 17,908 (27,503) 24,853
---------- ------------- -------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency
transactions.................................................... 237,872 907,797 442,016 (607)
Net change in unrealized appreciation (depreciation) on securities
and foreign currency transactions............................... 171,286 975,827 1,259,692 317,035
---------- ------------- -------------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS................................................ 409,158 1,883,624 1,701,708 316,428
---------- ------------- -------------- --------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... $ 416,680 $ 1,901,532 $ 1,674,205 $ 341,281
---------- ------------- -------------- --------
---------- ------------- -------------- --------
</TABLE>
See notes to financial statements.
28
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BERGER IPT-GROWTH & INCOME
BERGER IPT-100 FUND FUND
--------------------------- --------------------------
SIX MONTHS SIX MONTHS
ENDED JUNE YEAR ENDED ENDED JUNE YEAR ENDED
30, 1999 DECEMBER 30, 1999 DECEMBER
(UNAUDITED) 31, 1998 (UNAUDITED) 31, 1998
------------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss).......... $ 7,522 $ 7,213 $ 17,908 $ 58,137
Net realized gain (loss) on securities
and foreign currency transactions... 237,872 (199,333) 907,797 (546,982)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 171,286 567,945 975,827 1,742,890
------------- ----------- ------------ -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations.............. 416,680 375,825 1,901,532 1,254,045
------------- ----------- ------------ -----------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................. -- (6,568) -- (59,415)
In excess of net investment income.... -- -- -- (218)
In excess of net realized gains on
investments......................... -- (1,714) -- --
------------- ----------- ------------ -----------
Net Decrease in Net Assets from
Dividends and Distributions to
Shareholders........................... -- (8,282) -- (59,633)
------------- ----------- ------------ -----------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold............... 1,425,444 3,139,142 4,639,639 7,293,615
Net asset value of shares issued in
reinvestment of dividends and
distributions.......................... -- 8,282 -- 59,633
Payments for shares redeemed............ (608,188) (1,038,750) (605,461) (964,756)
------------- ----------- ------------ -----------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions... 817,256 2,108,674 4,034,178 6,388,492
------------- ----------- ------------ -----------
Net Increase (Decrease) in Net Assets... 1,233,936 2,476,217 5,935,710 7,582,904
NET ASSETS
Beginning of period..................... 3,710,109 1,233,892 9,084,022 1,501,118
------------- ----------- ------------ -----------
End of period........................... $4,944,045 $3,710,109 $15,019,732 $9,084,022
------------- ----------- ------------ -----------
------------- ----------- ------------ -----------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $4,155,683 $3,338,427 $11,810,220 $7,776,042
Undistributed net investment income
(loss)................................. 8,441 919 17,908 --
Undistributed net realized gain (loss)
from investments....................... 36,534 (201,338) 359,997 (547,800)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 743,387 572,101 2,831,607 1,855,780
------------- ----------- ------------ -----------
Total................................. $4,944,045 $3,710,109 $15,019,732 $9,084,022
------------- ----------- ------------ -----------
------------- ----------- ------------ -----------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 105,347 260,915 250,094 496,555
Shares issued to shareholders in
reinvestment of dividends and
distributions.......................... -- 664 -- 3,627
Shares repurchased...................... (45,084) (84,839) (33,281) (66,025)
------------- ----------- ------------ -----------
Net Increase (Decrease) in Shares....... 60,263 176,740 216,813 434,157
------------- ----------- ------------ -----------
Shares outstanding, beginning of
period................................. 287,825 111,085 546,246 112,089
Shares outstanding, end of period....... 348,088 287,825 763,059 546,246
------------- ----------- ------------ -----------
------------- ----------- ------------ -----------
</TABLE>
See notes to financial statements.
29
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
BERGER IPT-SMALL COMPANY BERGER/BIAM
GROWTH FUND IPT-INTERNATIONAL FUND
---------------------------- ---------------------------
SIX MONTHS SIX MONTHS
ENDED JUNE YEAR ENDED ENDED JUNE YEAR ENDED
30, 1999 DECEMBER 31, 30, 1999 DECEMBER
(UNAUDITED) 1998 (UNAUDITED) 31, 1998
------------ ------------- ------------- -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss).......... $ (27,503) $ (6,382) $ 24,853 $ 110,394
Net realized gain (loss) on securities
and foreign currency transactions... 442,016 (1,141,963) (607) (229,058)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions....... 1,259,692 1,414,843 317,035 645,925
------------ ------------- ------------- -----------
Net Increase (Decrease) in Net Assets
Resulting from Operations.............. 1,674,205 266,498 341,281 527,261
------------ ------------- ------------- -----------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income................... -- -- -- (66,063)
In excess of net investment income...... -- (3,942) -- --
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............... 13,182,794 17,333,156 982,093 2,511,975
Net asset value of shares issued in
reinvestment of dividends and
distributions.......................... -- 3,921 -- 69,387
Payments for shares redeemed............ (9,935,023) (10,460,889) (1,386,238) (309,821)
------------ ------------- ------------- -----------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions... 3,247,771 6,876,188 (404,145) 2,271,541
------------ ------------- ------------- -----------
Net Increase (Decrease) in Net Assets... 4,921,976 7,138,744 (62,864) 2,724,245
NET ASSETS
Beginning of period..................... 9,858,303 2,719,559 5,430,076 2,705,831
------------ ------------- ------------- -----------
End of period........................... $14,780,279 $ 9,858,303 $5,367,212 $5,430,076
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
COMPONENTS OF NET ASSETS
Capital (par value and paid in
surplus)............................... $12,758,543 $ 9,510,772 $4,614,694 $5,018,839
Undistributed net investment income
(loss)................................. (27,503) -- 67,981 43,128
Undistributed net realized gain (loss)
from investments....................... (799,707) (1,241,723) (219,596) (218,989)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions.......... 2,848,946 1,589,254 904,133 587,098
------------ ------------- ------------- -----------
Total................................. $14,780,279 $ 9,858,303 $5,367,212 $5,430,076
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
TRANSACTIONS IN FUND SHARES
Shares sold............................. 1,029,067 1,480,619 84,710 231,445
Shares issued to shareholders in
reinvestment of dividends and
distributions.......................... -- 331 -- 6,229
Shares repurchased...................... (791,124) (903,929) (118,349) (29,584)
------------ ------------- ------------- -----------
Net Increase (Decrease) in Shares....... 237,943 577,021 (33,639) 208,090
Shares outstanding, beginning of
period................................. 802,493 225,472 484,471 276,381
------------ ------------- ------------- -----------
Shares outstanding, end of period....... 1,040,436 802,493 450,832 484,471
------------ ------------- ------------- -----------
------------ ------------- ------------- -----------
</TABLE>
See notes to financial statements.
30
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Berger Institutional Products Trust (the "Trust"), a Delaware business
trust, was established on October 17, 1995 as a diversified open-end management
investment company. The Trust is authorized to issue an unlimited number of
shares of beneficial interest in series or portfolios. Currently, the series
comprising Berger IPT-100 Fund ("IPT-100"), Berger IPT-Growth and Income Fund
("IPT-G&I"), Berger IPT-Small Company Growth Fund ("IPT-SCG") and Berger/BIAM
IPT-International Fund ("IPT-International"), (individually the "Fund" and
collectively the "Funds") are the only portfolios established under the Trust,
although others may be added in the future. The Funds commenced investment
operations on May 1, 1996, except for IPT-International which commenced
investment operations on May 1, 1997.
The Trust is registered under the Investment Company Act of 1940 and its
shares are registered under the Securities Act of 1933 (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.
At June 30, 1999, Berger, directly or indirectly, owned 6% and 45% of the
outstanding shares of IPT-100 and IPT-International, respectively.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges, the NASDAQ Stock Market and foreign
exchanges are valued at the last sale price on such markets, or, if no last sale
price is available, they are valued using the mean between their current bid and
asked prices. Securities traded in 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 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
31
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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 Fund 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 Fund 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.
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
32
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
2. AGREEMENTS (CONTINUED)
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. Additionally, 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 a fee
at the annual rate of .01% of the average daily net assets of each Fund. Such
fee is 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 June 30, 1999.
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 six months ended June
30, 1999, the IPT-100 and IPT-G&I, received brokerage credits totaling $385 and
$266 respectively.
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 $224, $598, $529 and $288 from IPT-100,
IPT-G&I, IPT-SCG, and IPT-International Fund, respectively, for the six months
ended June 30, 1999.
The Trust adopted a trustee fee deferral plan (the "Plan") which allows the
trustees to defer the receipt of all or a portion of the fees payable. The
deferred fees are invested in various Berger Funds until distribution in
accordance with the Plan.
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales of investment securities, by Fund (excluding short-term
securities) for the six months ended June 30, 1999, were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
- ---------------------------------------------------------------- ------------ ------------
<S> <C> <C>
IPT-100......................................................... $ 7,295,657 $ 6,437,070
IPT-G&I......................................................... 10,816,879 7,213,717
IPT-SCG......................................................... 11,928,196 9,395,094
IPT-International............................................... 749,637 921,808
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the period.
33
<PAGE>
BERGER INSTITUTIONAL PRODUCTS TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 1999 (UNAUDITED)
3. INVESTMENT TRANSACTIONS (CONTINUED)
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 fund.
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. Additionally, 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, IPT-SCG and IPT-International incurred and elected to
defer post-October 31 net capital and/or currency losses of $6,312, $34,842, and
$45,992, respectively, to the year ended December 31, 1999.
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 differences in the character of income
and distributions between financial statements and tax basis have been
reclassified to paid-in-capital.
34
<PAGE>
BERGER IPT-100 FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 1999 ------------------------------------- DECEMBER 31,
(UNAUDITED) 1998 1997 1996(1)
------------- --------------- -------------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 12.89 $ 11.11 $ 10.39 $ 10.00
------------- --------------- ----------- -------------
From investment operations
Net investment income (loss).......... 0.02 0.02 0.01 0.03
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions....... 1.29 1.79 1.39 0.36
------------- --------------- ----------- -------------
Total from investment operations........ 1.31 1.81 1.40 0.39
------------- --------------- ----------- -------------
Less dividends and distributions
Dividends (from net investment
income)............................. -- (0.02) (0.04) --
Dividends (in excess of net investment
income)............................. -- -- -- --
Distributions (from capital gains).... -- -- (0.64) --
Distributions (in excess of capital
gains).............................. -- (0.01) -- --
------------- --------------- ----------- -------------
Total dividends and distributions....... -- (0.03) (0.68) --
------------- --------------- ----------- -------------
Net asset value, end of period.......... $ 14.20 $ 12.89 $ 11.11 $ 10.39
------------- --------------- ----------- -------------
------------- --------------- ----------- -------------
Total Return(2)......................... 10.16% 16.29% 13.76% 3.90%
------------- --------------- ----------- -------------
------------- --------------- ----------- -------------
Ratios/Supplemental Data:
Net assets, end of period............. $4,944,045 $ 3,710,109 1$,233,892 $ 331,296
Net expense ratio to average net
assets(3)........................... 1.00%(4) 1.00% 1.00% 1.00%(4)
Ratio of net income (loss) to average
net assets.......................... 0.35%(4) 0.29% 0.51% 0.50%(4)
Gross expense ratio to average net
assets.............................. 2.58%(4) 2.88% 9.18% 7.69%(4)
Portfolio turnover rate(2)............ 175% 258% 246% 56%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. 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.
See notes to financial statements.
35
<PAGE>
BERGER IPT-GROWTH & INCOME FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 1999 ------------------------------------- DECEMBER 31,
(UNAUDITED) 1998 1997 1996(1)
--------------- ----------------- ---------------- -------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 12.66 $ 13.39 $ 11.14 $ 10.00
--------------- ----------------- ---------------- -------------
From investment operations
Net investment income (loss).......... 0.02 0.10 0.01 0.10
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions....... 7.00 3.25 2.75 1.04
--------------- ----------------- ---------------- -------------
Total from investment operations........ 7.02 3.35 2.76 1.14
--------------- ----------------- ---------------- -------------
Less dividends and distributions
Dividends (from net investment
income)............................. -- (0.11)^ (0.10) --
Dividends (in excess of net investment
income)............................. -- -- -- --
Distributions (from capital gains).... -- -- (0.39) --
Distributions (in excess of capital
gains).............................. -- -- (0.02) --
--------------- ----------------- ---------------- -------------
Total dividends and distributions....... -- (0.11) (0.51) --
--------------- ----------------- ---------------- -------------
Net asset value, end of period.......... $ 19.68 $ 16.63 $ 13.39 $ 11.14
--------------- ----------------- ---------------- -------------
--------------- ----------------- ---------------- -------------
Total Return(2)......................... 18.34% 25.03% 24.99% 11.40%
--------------- ----------------- ---------------- -------------
--------------- ----------------- ---------------- -------------
Ratios/Supplemental Data:
Net assets, end of period............. $15,019,732 $9,084,022 $ 1,501,118 $ 344,373
Net expense ratio to average net
assets(3)........................... 1.00%(4) 1.00% 1.00% 1.00%(4)
Ratio of net income (loss) to average
net assets.......................... 0.32%(4) 1.10% 1.39% 1.80%(4)
Gross expense ratio to average net
assets.............................. 1.36%(4) 1.99% 9.62% 7.70%(4)
Portfolio turnover rate(2)............ 67% 426% 215% 60%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. 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.
^ 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.
36
<PAGE>
BERGER IPT-SMALL COMPANY GROWTH FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEARS ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 1999 ---------------------------------- DECEMBER 31,
(UNAUDITED) 1998 1997 1996(1)
--------------- ---------------- ---------------- -------------
Net asset value, beginning of period.... $ 12.28 $ 12.06 $ 9.95 $ 10.00
<S> <C> <C> <C> <C>
--------------- ---------------- ---------------- -------------
From investment operations
Net investment income (loss).......... (0.03) -- -- 0.01
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions....... 1.96 0.23 2.11 (0.06)
--------------- ---------------- ---------------- -------------
Total from investment operations........ 1.93 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).... -- -- -- --
Distributions (in excess of capital
gains).............................. -- -- -- --
--------------- ---------------- ---------------- -------------
Total dividends and distributions....... -- (0.01) -- --
--------------- ---------------- ---------------- -------------
Net asset value, end of period.......... $ 14.21 $ 12.28 $ 12.06 $ 9.95
--------------- ---------------- ---------------- -------------
--------------- ---------------- ---------------- -------------
Total Return(2)......................... 15.72% 1.87% 21.21% (0.50%)
--------------- ---------------- ---------------- -------------
--------------- ---------------- ---------------- -------------
Ratios/Supplemental Data:
Net assets, end of period............. $14,780,279 $ 9,858,303 $ 2,719,559 $ 291,362
Net expense ratio to average net
assets(3)........................... 1.15%(4) 1.15% 1.15% 1.15%(4)
Ratio of net income (loss) to average
net assets.......................... (0.57%)(4) (0.11%) 0.05% 0.14%(4)
Gross expense ratio to average net
assets.............................. 2.00%(4) 2.19% 5.81% 8.57%(4)
Portfolio turnover rate(2)............ 102% 147% 194% 80%
</TABLE>
- ------------------------------
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. 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.
See notes to financial statements.
37
<PAGE>
BERGER/BIAM IPT-INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS
ENDED PERIOD ENDED
JUNE 30, 1999 YEAR ENDED DECEMBER 31,
(UNAUDITED) DECEMBER 31, 1998 1997(1)
-------------- ----------------- -------------
Net asset value, beginning of period.... $ 11.21 $ 9.79 $ 10.00
<S> <C> <C> <C>
-------------- ----------------- -------------
From investment operations
Net investment income (loss).......... 0.06 0.08 0.05
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions....... 0.64 1.50 (0.26)
-------------- ----------------- -------------
Total from investment operations........ 0.70 1.58 (0.21)
-------------- ----------------- -------------
Less dividends and distributions
Dividends (from net investment
income)............................. -- (0.14) --
Dividends (in excess of net investment
income)............................. -- -- --
Distributions (from capital gains).... -- -- --
Distributions (in excess of capital
gains).............................. -- (0.02) --
-------------- ----------------- -------------
Total dividends and distributions....... -- (0.16) --
-------------- ----------------- -------------
Net asset value, end of period.......... $ 11.91 $ 11.21 $ 9.79
-------------- ----------------- -------------
-------------- ----------------- -------------
Total Return(2)......................... 6.24% 16.13% (2.10%)
-------------- ----------------- -------------
-------------- ----------------- -------------
Ratios/Supplemental Data:
Net assets, end of period............. $5,367,212 $5,430,076 $2,705,831
Net expense ratio to average net
assets(3)........................... 1.19%(4) 1.20% 1.20%(4)
Ratio of net income (loss) to average
net assets.......................... 0.90%(4) 2.85% 0.86%(4)
Gross expense ratio to average net
assets.............................. 2.90%(4) 2.85% 3.83%(4)
Portfolio turnover rate(2)............ 14% 20% 14%
</TABLE>
- ------------------------------
1. For the period from May 1, 1997 (commencement of investment operations) to
December 31, 1997.
2. 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.
See notes to financial statements.
38
