<PAGE> 1
BERGER INSTITUTIONAL PRODUCTS TRUST
ANNUAL
REPORT
December 31, 1999
Berger IPT-100 Fund
Berger IPT-Growth and Income Fund
Berger IPT-Small Company Growth Fund
Berger/BIAM IPT-International Fund
This report reflects the financial position of each Fund at December 31, 1999
and the results of operations and changes in their net assets for the periods
indicated.
<PAGE> 2
Contents
Berger IPT Funds
(2) Berger IPT-100 Fund
(6) Berger IPT-Growth and Income Fund
(10) Berger IPT-Small Company Growth Fund
(14) Berger/BIAM IPT-International Fund
(19) Statements of Assets and Liabilities
(20) Statements of Operations
(21) Statements of Changes in Net Assets
(23) Financial Highlights
(25) Notes to Financial Statements
(29) Report of Independent Accountants
[BERGER FUNDS LOGO]
<PAGE> 3
BERGER IPT- Berger Funds December 31, 1999 Annual Report 2
100 FUND
John B. Jares and
Portfolio Manager Commentary Tino R. Sellitto(1)
PERFORMANCE
The Berger IPT-100 Fund (the "Fund") had a solid total return of 49.13%(2) for
the year ended December 31, 1999, which significantly outpaced the 21.03% return
for the Standard & Poor's (S&P) 500 Index.(3)
It was a roller coaster year for the stock market. Starting in mid-January the
market narrowed, and the very largest- cap companies dominated performance. The
market was mixed during the quarter ended June 30, largely as a result of
growing concern about rising interest rates and hints of potential inflation.
Again in the third calendar quarter the market grew nervous about interest rates
and seemed to lack direction. Most sectors and market indices were down. But in
the fourth quarter, the market shrugged off a moderate increase in interest
rates and fears about year 2000 spending freezes. On the strength of a rebound
in the global economy, many equity markets around the world closed the year with
strong gains. Overall, worldwide economic growth is on the upswing, and
corporate profits are picking up in most non-U.S. companies.
YEAR IN REVIEW
Our Fund's performance was helped by strong upward moves in many of its large
holdings, especially by those in technology, which is our largest sector. This
sector includes telecommunications, Internet, computer software and
semiconductor manufacturing companies. Technology has handily beaten all other
sectors for the year and had the best overall performance of any sector at the
end of the year. Several of our technology holdings turned in strong gains for
the year, including Microsoft, Intel, Texas Instruments and Xilinx. And, in the
telecommunications industry, our strong performers included Qwest
Communications, NTT Mobile Communications Network, Inc., and Colt Telecom Group.
We continue to believe in the long-term prospects for technology because of the
vital role that it plays in the operations of businesses around the world.
Companies in our consumer sector finished 1999 strongly. Sony's performance was
aided by increased profits in its video and music sales. Costco benefited from
increased profits over the holiday season. Two other consumer-related stocks in
our portfolio, Royal Caribbean Cruises and Best Buy, delivered strong gains over
the year.
Among other Fund sectors, healthcare stocks turned in mixed results for the
year. We had solid performance from Genentech, a large biomedical company with a
strong product pipeline. But American Home Products suffered as major
pharmaceutical stocks came under pressure from fears of drug price cuts for
Medicare patients.
Most stocks in the financial sector underperformed primarily because of the
market's concerns about rising interest rates and year 2000 issues. Among our
financial stocks, leading online broker Charles Schwab was hit hard. We believe
that the long-term prospects for Schwab are positive, however, and we look for
this company to excel in 2000. With financial holdings reduced to just 3% of
total Fund assets, we are now underweighted in this sector.
LOOKING AHEAD
The Fund is well-positioned for the growth opportunities that we see for 2000
and 2001. Our continued focus on careful stock selection to identify the best
large-cap, fast- growing companies should provide a solid base to build on in
2000. We expect that rising interest rates could create market volatility in the
near term. We anticipate that technology stocks overall will continue their
market leadership, as well as individual stocks in sectors such as consumer
staples and energy.
Effective January 31, 2000, the Berger IPT-100 Fund has been renamed the Berger
IPT-Growth Fund. We feel the name change is a more accurate reflection of the
Fund's objective and style.
(1) Effective January 3, 2000, Berger LLC Vice President Tino R. Sellitto has
been appointed sole investment manager of the Berger IPT-100 Fund. Previously,
Mr. Sellitto co-managed the Fund with John B. Jares but has now assumed sole
management of the Fund, including the portion previously managed by Mr. Jares.
(2) 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.
(3) The S&P 500 Index 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.
<PAGE> 4
3 Berger Funds December 31, 1999 Annual Report BERGER IPT-
100 FUND
Performance Overview
COMPARISON OF CHANGE IN THE VALUE OF BERGER IPT-100 FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
----------
S&P 500
Index
$ 23,848
[CHART] **********
Berger IPT-
100 Fund
$ 20,499
----------
Cost of
Living Index
$ 10,768
BERGER IPT-100 FUND(*)
AVERAGE ANNUAL TOTAL RETURN
As of December 31, 1999
- -----------------------------------------
1 Year 49.13%
- -----------------------------------------
Since Inception (5/1/96) 21.60%
- -----------------------------------------
(*) Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (96.27%)
- --------------------------------------------------------------------------------
BANKS - MONEY CENTER (0.41%)
550 Bank of America Corp. $ 27,603
- --------------------------------------------------------------------------------
BEVERAGE - SOFT DRINKS (1.22%)
595 Coca-Cola Co. 34,658
- --------------------------------------------------------------------------------
1,328 Pepsico, Inc. 46,812
- --------------------------------------------------------------------------------
81,470
- --------------------------------------------------------------------------------
BUILDING PRODUCTS - WOOD (0.32%)
456 Willamette Industries 21,175
- --------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (3.30%)
1,768 Cisco Systems, Inc.* 189,397
- --------------------------------------------------------------------------------
340 Finisar Corp.* 30,557
- --------------------------------------------------------------------------------
219,954
COMPUTER - MANUFACTURERS (1.10%)
352 Apple Computer, Inc.* 36,190
- --------------------------------------------------------------------------------
476 Sun Microsystems, Inc.* 36,860
- --------------------------------------------------------------------------------
73,050
- --------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.05%)
638 EMC Corp.* 69,701
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (96.27%) - CONTINUED
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (5.75%)
950 Gemstar International Group, Ltd.* $ 67,687
- --------------------------------------------------------------------------------
2,703 Microsoft Corp.* 315,575
- --------------------------------------------------------------------------------
383,262
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (3.50%)
813 J.D. Edwards & Co.* 24,288
- --------------------------------------------------------------------------------
509 Oracle Corp.* 57,039
- --------------------------------------------------------------------------------
91 Oracle Corp. Japan* 42,269
- --------------------------------------------------------------------------------
750 SAP AG - Sponsored ADR 39,046
- --------------------------------------------------------------------------------
494 VERITAS Software Corp.* 70,703
- --------------------------------------------------------------------------------
233,345
- --------------------------------------------------------------------------------
ELECTRICAL - MILITARY SYSTEMS (0.96%)
664 General Motors Corp. - Class H* 63,744
- --------------------------------------------------------------------------------
ELECTRONIC - MISCELLANEOUS COMPONENTS (0.71%)
692 RF Micro Devices, Inc.* 47,358
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (6.63%)
893 Applied Materials, Inc.* 113,131
- --------------------------------------------------------------------------------
477 ASM Lithography Holding NV* 54,258
- --------------------------------------------------------------------------------
682 KLA-Tencor Corp.* 75,957
- --------------------------------------------------------------------------------
824 Lam Research Corp.* 91,927
- --------------------------------------------------------------------------------
429 STMicroelectronics NV 64,966
- --------------------------------------------------------------------------------
618 Teradyne, Inc.* 40,788
- --------------------------------------------------------------------------------
441,027
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
BERGER IPT- Berger Funds December 31, 1999 Annual Report 4
100 FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (96.27%) - CONTINUED
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (7.86%)
710 Altera Corp.* $ 35,189
- --------------------------------------------------------------------------------
316 Applied Micro Circuits Corp.* 40,211
- --------------------------------------------------------------------------------
997 Intel Corp. 82,065
- --------------------------------------------------------------------------------
1,046 LSI Logic Corp.* 70,605
- --------------------------------------------------------------------------------
1,282 Maxim Integrated Products, Inc.* 60,494
- --------------------------------------------------------------------------------
281 SDL Corp.* 61,258
- --------------------------------------------------------------------------------
652 Texas Instruments Inc. 63,162
- --------------------------------------------------------------------------------
2,422 Xilinx, Inc.* 110,125
- --------------------------------------------------------------------------------
523,109
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - INVESTMENT BANKERS (0.93%)
1,623 Schwab (Charles) Corp. 62,282
- --------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (0.35%)
375 Fannie Mae 23,414
- --------------------------------------------------------------------------------
HOUSEHOLD - AUDIO/VIDEO (1.67%)
390 Sony Corp. ADR 111,052
- --------------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (0.85%)
524 American International Group, Inc. 56,657
- --------------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.42%)
1,718 TD Waterhouse Group Inc.* 28,239
- --------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (6.27%)
159 Akamai Technologies, Inc.* 52,092
- --------------------------------------------------------------------------------
2,410 America Online, Inc.* 181,843
- --------------------------------------------------------------------------------
251 Internet Initiative Japan Inc. ADR* 24,394
- --------------------------------------------------------------------------------
369 Yahoo, Inc.* 159,661
- --------------------------------------------------------------------------------
417,990
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (2.45%)
87 Juniper Networks, Inc.* 29,580
- --------------------------------------------------------------------------------
700 VeriSign, Inc.* 133,656
- --------------------------------------------------------------------------------
163,236
- --------------------------------------------------------------------------------
INTERNET - SOFTWARE (1.05%)
230 Agile Software Corp.* 49,963
- --------------------------------------------------------------------------------
170 Phone.com, Inc.* 19,709
- --------------------------------------------------------------------------------
69,672
- --------------------------------------------------------------------------------
LEISURE - PRODUCTS (1.12%)
1,662 The Seagram Company Ltd. 74,686
- --------------------------------------------------------------------------------
LEISURE - SERVICES (1.94%)
779 Carnival Corp. 37,245
- --------------------------------------------------------------------------------
882 Royal Caribbean Cruises Ltd. 43,493
- --------------------------------------------------------------------------------
1,186 The Walt Disney Co. 34,690
- --------------------------------------------------------------------------------
820 World Wrestling Federation
Entertainment, Inc.* 14,145
- --------------------------------------------------------------------------------
129,573
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (2.70%)
1,281 EchoStar Communications Corp. - Class A* 124,897
- --------------------------------------------------------------------------------
760 Time Warner, Inc. 55,052
- --------------------------------------------------------------------------------
179,949
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (96.27%) - CONTINUED
- --------------------------------------------------------------------------------
MEDIA - RADIO/ TV (3.82%)
742 AT&T Corp. - Liberty Media Group* $ 42,108
- --------------------------------------------------------------------------------
1,600 Clear Channel Communications, Inc.* 142,800
- --------------------------------------------------------------------------------
1,924 Infinity Broadcasting Corp. - Class A* 69,624
- --------------------------------------------------------------------------------
254,532
- --------------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (1.10%)
1,220 Amgen, Inc.* 73,276
- --------------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (1.92%)
1,211 Bristol-Myers Squibb Co. 77,731
- --------------------------------------------------------------------------------
617 Warner-Lambert Co. 50,555
- --------------------------------------------------------------------------------
128,286
- --------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (1.36%)
1,122 American Home Products Corp. 44,248
- --------------------------------------------------------------------------------
701 Lilly (Eli) Co. 46,616
- --------------------------------------------------------------------------------
90,864
- --------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (0.49%)
482 Bausch & Lomb Inc. 32,986
- --------------------------------------------------------------------------------
MEDICAL - PRODUCTS (1.38%)
1,956 Guidant Corp.* 91,932
- --------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUGS/SUNDRIES (3.78%)
1,875 Genentech, Inc.* 252,187
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (2.12%)
2,996 Ensco International Inc. 68,533
- --------------------------------------------------------------------------------
1,217 Nabors Industries* 37,650
- --------------------------------------------------------------------------------
1,034 Transocean Sedco Forex Inc. 34,829
- --------------------------------------------------------------------------------
141,012
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (0.78%)
664 Halliburton Co. 26,726
- --------------------------------------------------------------------------------
448 Schlumberger Ltd. 25,200
- --------------------------------------------------------------------------------
51,926
- --------------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL INTEGRATED (0.42%)
467 Royal Dutch Petroleum Co. - NY Shares 28,224
- --------------------------------------------------------------------------------
OIL & GAS - PRODUCTION/PIPELINE (0.40%)
601 Enron Corp. 26,669
- --------------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (0.50%)
1,350 USX-Marathon Corp. 33,328
- --------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (0.69%)
819 International Paper Co. 46,222
- --------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (0.45%)
696 Intimate Brands, Inc. 30,015
- --------------------------------------------------------------------------------
RETAIL - CONSUMER ELECTRONICS (0.96%)
966 Best Buy Co., Inc.* 48,481
- --------------------------------------------------------------------------------
347 Circuit City Stores-Circuit City Group 15,636
- --------------------------------------------------------------------------------
64,117
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
5 Berger Funds December 31, 1999 Annual Report BERGER IPT-
100 FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (96.27%) - CONTINUED
- --------------------------------------------------------------------------------
RETAIL - DRUG STORES (0.17%)
285 CVS Corp. $ 11,382
- --------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (1.87%)
626 Costco Wholesale Corp.* 57,122
- --------------------------------------------------------------------------------
526 Dayton-Hudson Corp. 38,628
- --------------------------------------------------------------------------------
85 Freemarkets, Inc.* 29,011
- --------------------------------------------------------------------------------
124,761
- --------------------------------------------------------------------------------
RETAIL - SUPER/MINI-MARKETS (1.35%)
1,483 Safeway, Inc.* 52,739
- --------------------------------------------------------------------------------
1,982 The Kroger Co.* 37,410
- --------------------------------------------------------------------------------
90,149
- --------------------------------------------------------------------------------
RETAIL/WHOLESALE COMPUTERS (0.70%)
946 Tandy Corp. 46,531
- --------------------------------------------------------------------------------
SOAP & CLEANING PREPARATIONS (0.89%)
542 Proctor & Gamble Co. 59,382
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (1.33%)
622 VoiceStream Wireless Corp.* 88,518
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (11.57%)
540 Corning, Inc. 69,626
- --------------------------------------------------------------------------------
420 JDS Uniphase Corp.* 67,751
- --------------------------------------------------------------------------------
535 Lucent Technologies, Inc. 40,024
- --------------------------------------------------------------------------------
943 Motorola, Inc. 138,856
- --------------------------------------------------------------------------------
270 Next Level Communications, Inc.* 20,216
- --------------------------------------------------------------------------------
940 Nokia Corp. ADR 178,600
- --------------------------------------------------------------------------------
768 QUALCOMM Inc.* 135,360
- --------------------------------------------------------------------------------
180 Redback Networks Inc.* 31,950
- --------------------------------------------------------------------------------
289 Sycamore Networks, Inc.* 89,012
- --------------------------------------------------------------------------------
771,395
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (4.37%)
352 AT&T Corp. 17,864
- --------------------------------------------------------------------------------
210 COLT Telecom Group PLC ADR* 42,840
- --------------------------------------------------------------------------------
1,970 MCI Worldcom, Inc.* 104,506
- --------------------------------------------------------------------------------
150 Nextel Communications, Inc.* 15,468
- --------------------------------------------------------------------------------
1,619 Qwest Communications International, Inc.* 69,617
- --------------------------------------------------------------------------------
593 Sonera Corp. ADR* 41,065
- --------------------------------------------------------------------------------
291,360
- --------------------------------------------------------------------------------
TRANSPORTATION - AIR FREIGHT (0.14%)
140 United Parcel Service, Inc. 9,660
- --------------------------------------------------------------------------------
UTILITIES (1.15%)
2 NTT Mobile Communications
Network, Inc. 76,862
- --------------------------------------------------------------------------------
Total Common Stock
(Cost $4,292,283) 6,417,124
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT (4.85%)
- --------------------------------------------------------------------------------
$323,000 State Street Repurchase Agreement,
2.50%, dated December 31, 1999,
to be repurchased at $323,067 on
January 3, 2000, collateralized by
U.S. Treasury Note, 3.63%
January 15, 2008, with a value
of $332,888 $ 323,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $323,000) 323,000
- --------------------------------------------------------------------------------
Total Investments (Cost $4,615,283) (101.12%) 6,740,124
- --------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (-1.12%) (74,460)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $ 6,665,664
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
PLC - Public Limited Company.
See notes to financial statements.
<PAGE> 7
BERGER IPT- Berger Funds December 31, 1999 Annual Report 6
GROWTH AND
INCOME FUND
PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO
PERFORMANCE
The Berger IPT-Growth and Income Fund (the "Fund") had a total return of
59.05%(1) for the year ended December 31, 1999. This was significantly higher
than the 21.03% gain registered by the Standard & Poor's (S&P) 500 Index(2) for
the same period.
YEAR IN REVIEW
It was a roller coaster year for the stock market. Starting in mid-January the
market narrowed, and the very largest-cap companies dominated performance. The
market was mixed during the quarter ended June 30, largely as a result of
growing concern about rising interest rates and hints of potential inflation.
Again in the third calendar quarter the market grew nervous about interest rates
and seemed to lack direction. Most sectors and market indices were down. But in
the fourth quarter, the market shrugged off a moderate increase in interest
rates and fears about year 2000 spending freezes. On the strength of a rebound
in the global economy, many equity markets around the world closed the year with
strong gains. Overall, worldwide economic growth is on the upswing, and
corporate profits are picking up in most non-U.S. companies.
Against this backdrop, the Fund was able to deliver an outstanding gain and
significantly outperform the S&P 500 Index for the year. The key reason was
performance from holdings in the technology sector, which is the largest sector
in the Fund. Over the year, we increased the percentage of total Fund assets
invested in this sector from 37.4% on December 31, 1998, to 53.6% as of December
31, 1999. Strong performances were turned in from technology companies such as
Intel, Microsoft, Nokia, Qualcomm and Sun Microsystems. We continue to believe
in the long-term prospects for technology.
In the fourth quarter ended December 31, 1999, the Fund benefited particularly
from strong performances by companies in technology-related industries,
especially telecommunications and communication services. These included
EchoStar Communications and Clear Channel Communications, which now owns the
largest number of radio stations in the U.S. as well as a number of outdoor
advertising displays.
Early in the year, we identified signs of expansion in the energy sector, so we
increased our weighting. We believe that there are very strong fundamentals in
this sector. Oil prices have gone up because of a decrease in oil production and
an increase in demand attributable to recovering world economies. Among our best
performers in this sector were Halliburton and Ensco International.
Despite the healthcare sector's generally poor performance in 1999, our Fund had
success in this sector primarily because of our biotechnology stocks. Late in
1998, we identified several strong companies, including Amgen. This has been one
of the most successful companies in the portfolio because of its strong drug
pipeline. Another company we added was Genentech, a biotechnology company that
also has a strong pipeline of new drugs, including Herceptin, used to treat
metastatic breast cancer, and Rituxan, used to treat non-Hodgkin's lymphoma.
American Home Products was a strong performer in the first half of the year but
has recently suffered as major pharmaceutical stocks came under pressure from
fears of drug price cuts for Medicare patients.
We have continued our underweighting in the financial sector. Most stocks in
this sector underperformed over the year primarily because of the market's
concerns about rising interest rates and year 2000 issues. Among our financial
stocks, leading online broker Charles Schwab was hit hard. We believe that the
long-term prospects for Schwab are positive, however, and we look for this
company to excel in 2000.
LOOKING AHEAD
The Fund is well-positioned for the growth opportunities that we see for 2000
and 2001. Our continued focus on careful stock selection to identify the best
large-cap, growing companies should provide a solid base to build on in 2000. We
expect that rising interest rates could create market volatility in the near
term. We anticipate that technology stocks overall will continue their market
leadership, as well as individual stocks in sectors such as consumer staples and
energy.
(1) Past performance does not guarantee future results. 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 Index 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.
<PAGE> 8
7 Annual Report December 31, 1999 Berger Funds BERGER IPT-
GROWTH AND
INCOME FUND
PERFORMANCE OVERVIEW
Comparison of Change in Value of Berger IPT-Growth and
Income Fund vs. S&P 500 Index and Cost of Living Index
*********
Berger IPT-
Growth and
Income Fund
$ 27,690
[GRAPH] ----------
S&P 500
Index
$ 23,848
----------
Cost of
Living Index
$ 10,768
Berger IPT-Growth and Income Fund(*)
Average Annual Total Return
As of December 31, 1999
- ---------------------------------------------------
1 Year 59.05%
- ---------------------------------------------------
Since Inception (5/1/96) 31.98%
- ---------------------------------------------------
(*) Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares.
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (73.14%)
- --------------------------------------------------------------------------------
AUTO MANUFACTURERS - FOREIGN (1.16%)
2,965 Toyota Motor Corp. ADR $ 288,716
- --------------------------------------------------------------------------------
BANKS - SUPER REGIONAL (3.05%)
2,610 Fifth Third Bancorp 191,508
- --------------------------------------------------------------------------------
6,510 Northern Trust Corp. 345,030
- --------------------------------------------------------------------------------
5,490 Wells Fargo Co. 222,001
- --------------------------------------------------------------------------------
758,539
- --------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.04%)
4,380 Zions Bancorporation* 259,241
- --------------------------------------------------------------------------------
CHEMICALS - BASIC (1.17%)
5,870 Akzo Nobel NV ADR 292,032
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (0.90%)
2,250 OMNICOM Group 225,000
- --------------------------------------------------------------------------------
COMPUTER - INTEGRATED SYSTEMS (0.49%)
590 VA Linux Systems, Inc.* 121,908
- --------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (2.79%)
4,504 Cisco Systems, Inc.* 482,491
- --------------------------------------------------------------------------------
2,340 Finisar Corp.* 210,307
- --------------------------------------------------------------------------------
692,798
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (73.14%) - CONTINUED
- --------------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (1.92%)
6,164 Sun Microsystems, Inc.* $ 477,324
- --------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.32%)
3,942 Network Appliance, Inc.* 327,432
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (2.76%)
5,880 Microsoft Corp.* 686,490
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (1.16%)
620 Oracle Corp. Japan* 287,991
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - NETWORK (1.43%)
3,510 Nortel Networks Corp. 354,510
- --------------------------------------------------------------------------------
ELECTRICAL - EQUIPMENT (0.82%)
1,310 General Electric Co. 202,722
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (4.21%)
2,664 Applied Materials, Inc.* 337,495
- --------------------------------------------------------------------------------
2,817 STMicroelectronics NV 426,599
- --------------------------------------------------------------------------------
4,288 Teradyne, Inc.* 283,008
- --------------------------------------------------------------------------------
1,047,102
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 9
BERGER IPT- Berger Funds December 31, 1999 Annual Report 8
GROWTH AND
INCOME FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (73.14%) - CONTINUED
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (2.54%)
2,125 Applied Micro Circuits Corp.* $ 270,406
- --------------------------------------------------------------------------------
4,380 Intel Corp. 360,528
- --------------------------------------------------------------------------------
630,934
- --------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (2.89%)
6,950 Schwab (Charles) Corp. 266,706
- --------------------------------------------------------------------------------
2,010 Morgan Stanley Dean Witter & Co. 286,927
- --------------------------------------------------------------------------------
1,760 The Goldman Sachs Group, Inc. 165,770
- --------------------------------------------------------------------------------
719,403
- --------------------------------------------------------------------------------
HOUSEHOLD - AUDIO/VIDEO (2.82%)
2,460 Sony Corp. ADR 700,485
- --------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (1.20%)
910 Akamai Technologies, Inc.* 298,138
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (2.45%)
416 Juniper Networks, Inc.* 141,440
- --------------------------------------------------------------------------------
2,450 VeriSign, Inc. 467,796
- --------------------------------------------------------------------------------
609,236
- --------------------------------------------------------------------------------
LEISURE - PRODUCTS (0.68%)
3,770 The Seagram Company Ltd. 169,414
- --------------------------------------------------------------------------------
MEDIA - RADIO/TV (1.56%)
10,750 Infinity Broadcasting Corp. - Class A* 389,015
- --------------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (4.65%)
7,980 Amgen, Inc.* 479,298
- --------------------------------------------------------------------------------
5,030 Genentech Inc.* 676,535
- --------------------------------------------------------------------------------
1,155,833
- --------------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (2.11%)
5,450 Bristol-Myers Squibb Co. 349,821
- --------------------------------------------------------------------------------
2,140 Warner-Lambert Co. 175,346
- --------------------------------------------------------------------------------
525,167
- --------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (0.77%)
4,870 American Home Products Corp. 192,060
- --------------------------------------------------------------------------------
MEDICAL - PRODUCTS (1.45%)
7,660 Guidant Corp.* 360,020
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (1.60%)
16,250 Ensco International Inc. 371,718
- --------------------------------------------------------------------------------
799 Transocean Sedco Forex Inc.* 26,925
- --------------------------------------------------------------------------------
398,643
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (1.72%)
4,890 Halliburton Co. 196,822
- --------------------------------------------------------------------------------
4,120 Schlumberger Ltd. 231,750
- --------------------------------------------------------------------------------
428,572
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (73.14%) - CONTINUED
- --------------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL INTEGRATED (2.27%)
4,070 Royal Dutch Petroleum Co. - NY Shares $ 245,980
- --------------------------------------------------------------------------------
4,590 Total Fina SA ADR 317,857
- --------------------------------------------------------------------------------
563,837
- --------------------------------------------------------------------------------
OIL & GAS - PRODUCTION/PIPELINE (1.48%)
8,320 Enron Corp. 369,200
- --------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (1.00%)
5,775 Intimate Brands, Inc. 249,046
- --------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (3.50%)
2,900 Costco Wholesale Corp.* 264,625
- --------------------------------------------------------------------------------
3,730 Dayton-Hudson Corp. 273,921
- --------------------------------------------------------------------------------
970 Freemarkets, Inc.* 331,073
- --------------------------------------------------------------------------------
869,619
- --------------------------------------------------------------------------------
RETAIL - RESTAURANTS (0.64%)
3,940 McDonalds Corp. 158,831
- --------------------------------------------------------------------------------
RETAIL/WHOLESALE - BUILDING PRODUCTS (1.12%)
4,076 Home Depot, Inc. 279,426
- --------------------------------------------------------------------------------
RETAIL/WHOLESALE - COMPUTERS (1.31%)
6,630 Tandy Corp. 326,113
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (7.14%)
4,701 Corning Inc. 606,135
- --------------------------------------------------------------------------------
4,671 Nokia Corp. ADR 887,490
- --------------------------------------------------------------------------------
915 Sycamore Networks, Inc.* 281,820
- --------------------------------------------------------------------------------
1,775,445
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (1.89%)
3,000 MCI WorldCom, Inc.* 159,187
- --------------------------------------------------------------------------------
3,610 Nippon Telegraph & Telephone Corp. 310,911
- --------------------------------------------------------------------------------
470,098
- --------------------------------------------------------------------------------
TRANSPORTATION - AIR FREIGHT (0.28%)
1,010 United Parcel Service, Inc. 69,690
- --------------------------------------------------------------------------------
UTILITY - TELEPHONE (1.85%)
5.570 ALLTEL Corp. 460,569
- --------------------------------------------------------------------------------
Total Common Stock
(Cost $12,351,033) 18,190,599
- --------------------------------------------------------------------------------
CORPORATE DEBT - CONVERTIBLE (15.76%)
- --------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (2.72%)
$ 70,000 EMC Corp.
3.25%, 3/15/2002 676,025
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (2.05%)
56,000 Siebel Systems, Inc. 144A
5.50%, 9/15/2006 108,570
- --------------------------------------------------------------------------------
149,000 VERITAS Software Corp.
1.86%, 8/13/2006 400,065
- --------------------------------------------------------------------------------
508,635
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 10
9 Berger Funds December 31, 1999 Annual Report BERGER IPT-
GROWTH AND
INCOME FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
CORPORATE DEBT - CONVERTIBLE (15.76%) - CONTINUED
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.20%)
$ 252,000 ASM Lithography 144A
4.25%, 11/30/2004 $ 298,620
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (1.62%)
136,000 Conexant Systems Inc.
4.25%, 5/1/2006 401,710
- --------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (1.66%)
36,000 American Online, Inc.
4.00%, 11/15/2002 414,068
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (2.92%)
593,000 Echostar Comm. 144A
4.88%, 1/1/2007 726,425
- --------------------------------------------------------------------------------
MEDIA - RADIO/TV (2.43%)
408,000 Clear Channel Communications, Inc.
2.63%, 4/1/2003 605,370
- --------------------------------------------------------------------------------
TELECOMMUNICATION - SERVICES (1.16%)
E120,000 COLT Telecom Group PLC
2.00%, 3/29/2006 287,792
- --------------------------------------------------------------------------------
Total Corporate Debt - Convertible
(Cost $2,382,826) 3,918,645
- --------------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (7.75%)
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (1.65%)
3,410 Houston Industries, Inc. - ACES, 7.00% 410,905
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (2.10%)
2,660 Omnipoint Corp., 7.00% 523,355
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (2.02%)
510 Qualcomm Financial Trust I, 5.75% 501,967
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (1.98%)
6,950 Qwest Trends Trust - 144A, 5.75% 491,712
- --------------------------------------------------------------------------------
Total Preferred Stock - Convertible
(Cost $1,067,584) 1,927,939
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
REPURCHASE AGREEMENT (4.30%)
- --------------------------------------------------------------------------------
$1,070,000 State Street Repurchase Agreement,
2.50% dated December 31, 1999, to
be repurchased at $1,070,223 on
January 3, 2000, collateralized by
U.S. Treasury Note, 6.50% -
August 31, 2001 with a value
of $1,091,625 $ 1,070,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement~(Cost $1,070,000) 1,070,000
- --------------------------------------------------------------------------------
Total Investments (Cost $16,871,443) (100.95%) 25,107,183
- --------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (-0.95%) (235,234)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $ 24,871,949
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
PLC - Public Limited Company.
144A - Resale is restricted to qualified institutional buyers.
E - Par Value is demonimated in euros.
See notes to financial statements.
<PAGE> 11
BERGER IPT-
SMALL COMPANY
GROWTH FUND
Berger Funds December 31, 1999 Annual Report 10
PORTOFOLIO MANAGER COMMENTARY AMY K. SELNAR
PERFORMANCE
For the year ended December 31, 1999, the Berger IPT-Small Company Growth Fund
(the "Fund") had a total return of 91.45%.(1) This significantly outdistanced
the gains registered by the Russell 2000 Index(2) and the Russell 2000 Growth
Index,(3) which were 21.26% and 43.09%, respectively, over this time period.
As a group, small-cap stocks performed in step with large-cap stocks from the
October 8, 1998, market trough until mid-January 1999 when interest rate fears
crept into the marketplace. Small caps then dramatically underperformed large
caps through March.
Between April and June, small caps (as measured by the Russell 2000)
outperformed large caps (as measured by the S&P 500 Index(4)) by nearly 8%. This
was the best quarterly outperformance of small caps since the fourth quarter
1992 and was attributable to the more attractive relative valuations of small
caps compared with large caps after a very difficult first quarter 1999.
In the quarter ended September 30, the stock market faltered on renewed interest
rate fears, and both small- and large-cap stocks performed poorly. During the
fourth quarter of 1999, small caps outperformed large caps by 3.57%; the Russell
2000 returned 18.44%, while the S&P 500 returned 14.87%.
YEAR IN REVIEW
Despite this up-and-down year for small-cap stocks, our Fund was able to
considerably outperform its benchmarks.
The Fund remains heavily weighted in industries in which growth prospects are
the most visible and consistent. Technology, our largest sector, continues to
have the greatest long-term growth fundamentals. We believe that the growth
prospects are explosive for the Internet infrastructure in particular.
Therefore, we continue to focus on telecommunication and broadband companies,
which provide the plumbing that enables broad acceptance of Internet
applications and services. Similarly, companies such as Powerwave Technologies,
which supplies components for wireless communications, have been strong
holdings.
We have seen a pickup in the information technology services group. We believe
some large contract orders from companies transitioning to internet-centric
strategies may continue to drive growth in the group. Semiconductor stocks
continued to show solid revenue growth, and improving Asian economies should
help sustain this trend.
Our Fund lowered its exposure to the healthcare group over this fiscal year.
Uncertainty surrounding prescription drug benefits and the government's impact
on drug pricing caused the healthcare sector to underperform compared with the
broader market. One bright spot in the sector was biotechnology stocks. Emerging
biotechnology companies such as Biocryst Pharmaceutical and Cephalon boosted
Fund performance.
Our energy weighting contributed to the Fund's outperformance in the first six
months of 1999. Although there are worries that OPEC will irrationally increase
oil production, we remain positive on the long-term supply/demand fundamentals
within the sector.
Within the consumer group, radio stocks continue to be solid performers. The
environment for radio advertising was robust in 1999, and we expect this group's
strong fundamentals to carry into next year.
LOOKING AHEAD
Going forward, we continue to favor the technology sector, particularly the
telecommunication and broadband infrastructure companies that support the
Internet. We believe the software companies offering solutions that migrate
companies to the efficiencies of the Internet will enjoy strong growth. We
expect semiconductors to continue their strong fundamentals into next year as
well.
We remain optimistic about the market in 2000. The U.S. economy is undeniably
robust, and international economies continue to grow in concert. We expect
productivity to continue to grow and to fuel low inflationary growth into 2000.
If inflation fears are stoked by the upcoming economic data, the Fed may raise
rates again. This will be the largest risk factor in the market.
We would need to see a period of greater operating profit growth for small caps
in order for them to outperform their large-cap peers. We believe our bias
toward technology will be beneficial in the year 2000. Global economies appear
to be strengthening in concert, which will benefit technology stocks because
they often garner over 50% of earnings internationally.
(1) Past performance does not guarantee future results. The investment return
and principal value of an investment will fluctuate so that an investor's
shares, when redeemed, may be worth more or less than their original cost.
(2) The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of 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 Russell 2000 Growth Index is an unmanaged index, with dividends
reinvested, which consists of common growth stocks included in the Russell 2000
Index. Companies in this index tend to exhibit higher price-to-book and
price-earnings ratios. It is a generally recognized indicator used to measure
overall small-company growth stock performance in the U.S. stock market. One
cannot invest directly in an index.
(4) The S&P 500 Index 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.
<PAGE> 12
11 Berger Funds December 31, 1999 Annual Report BERGER IPT-
SMALL COMPANY
GROWTH FUND
PERFORMANCE OVERVIEW
COMPARISON OF CHANGE IN VALUE OF BERGER IPT-SMALL COMPANY GROWTH FUND VS.
RUSSELL 2000 STOCK INDEX AND COST OF LIVING INDEX
*************
Berger IPT-
Small Company
Growth Fund
$23,520
[CHART] -------------
Russell 2000
Stock Index
$15,213
=============
Cost of
Living Index
$10,768
BERGER IPT-SMALL COMPANY GROWTH FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of December 31, 1999
- -----------------------------------------
<S> <C>
1 Year 91.45%
Since Inception (5/1/96) 26.24%
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares.
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (93.66%)
BANKS - WEST/SOUTHWEST (0.50%)
4,190 Silicon Valley Bancshares* $ 207,405
- --------------------------------------------------------------------------------
BUILDING - HEAVY CONSTRUCTION (1.10%)
10,290 Dycom Industries, Inc.* 453,403
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (3.50%)
10,670 Diamond Technology Partners, Inc.* 916,953
- --------------------------------------------------------------------------------
9,480 The Corporate Executive Board Co.* 529,695
- --------------------------------------------------------------------------------
1,446,648
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - SCHOOLS (0.91%)
20,200 Devry, Inc.* 376,225
- --------------------------------------------------------------------------------
COMPUTER - SERVICES (2.53%)
3,900 Internap Network Services Corp.* 674,700
- --------------------------------------------------------------------------------
6,910 Whittman-Hart, Inc.* 370,548
- --------------------------------------------------------------------------------
1,045,248
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (1.82%)
10,290 Macromedia, Inc.* 752,456
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (1.41%)
17,400 CBT Group PLC ADR* 582,900
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (93.66%) - CONTINUED
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (8.05%)
8,830 Aspect Development, Inc.* $ 604,855
- --------------------------------------------------------------------------------
4,350 Mercury Interactive Corp.* 469,528
- --------------------------------------------------------------------------------
9,260 New Era of Networks, Inc.* 441,007
- --------------------------------------------------------------------------------
3,570 Peregrine Systems, Inc.* 294,971
- --------------------------------------------------------------------------------
10,320 SAGA Systems, Inc.* 205,755
- --------------------------------------------------------------------------------
12,530 TSI International Software Ltd.* 709,511
- --------------------------------------------------------------------------------
4,195 VERITAS Software Corp.* 600,409
- --------------------------------------------------------------------------------
3,326,036
- --------------------------------------------------------------------------------
ELECTRONIC - LASER SYSTEM/COMPONENT (1.42%)
12,760 Cymer, Inc.* 586,960
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (6.20%)
9,300 DuPont Photomasks, Inc.* 448,725
- --------------------------------------------------------------------------------
9,460 Etec Systems, Inc.* 424,517
- --------------------------------------------------------------------------------
15,770 PRI Automation, Inc.* 1,058,584
- --------------------------------------------------------------------------------
5,910 Teradyne, Inc.* 390,060
- --------------------------------------------------------------------------------
5,140 Veeco Instruments Inc.* 240,616
- --------------------------------------------------------------------------------
2,562,502
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (4.66%)
4,740 Applied Micro Circuits Corp.* 603,165
- --------------------------------------------------------------------------------
12,770 Cree Research Inc.* 1,090,238
- --------------------------------------------------------------------------------
4,470 MIPS Technologies, Inc. 232,440
- --------------------------------------------------------------------------------
1,925,843
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 13
BERGER IPT- Berger Funds December 31, 1999 Annual Report 12
SMALL COMPANY
GROWTH FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (93.66%) - CONTINUED
- --------------------------------------------------------------------------------
ELECTRONIC PRODUCTS - MISCELLANEOUS (6.43%)
4,350 Plug Power Inc.* $ 122,887
- --------------------------------------------------------------------------------
8,020 Powerwave Technologies, Inc.* 468,167
- --------------------------------------------------------------------------------
10,250 Proxim, Inc.* 1,127,500
- --------------------------------------------------------------------------------
20,400 Universal Electronics Inc.* 938,400
- --------------------------------------------------------------------------------
2,656,954
- --------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (0.23%)
11,850 Resource America, Inc. 93,318
- --------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.35%)
6,170 Webster Preferred Capital Corp. 145,380
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (0.79%)
9,110 Metris Companies Inc. 325,113
- --------------------------------------------------------------------------------
INSURANCE - BROKERS (0.60%)
10,330 Pre-Paid Legal Services* 247,920
- --------------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.32%)
1,380 Ebenx Inc.* 62,445
- --------------------------------------------------------------------------------
400 Internet Capital Group, Inc.* 68,000
- --------------------------------------------------------------------------------
130,445
- --------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (3.50%)
3,830 China.com Corp.* 301,133
- --------------------------------------------------------------------------------
4,470 Commerce One, Inc.* 878,355
- --------------------------------------------------------------------------------
3,050 Homestore.com, Inc.* 226,462
- --------------------------------------------------------------------------------
420 Internet Initiative Japan Inc. ADR* 40,818
- --------------------------------------------------------------------------------
1,446,768
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (4.06%)
5,110 Sapient Corp.* 720,190
- --------------------------------------------------------------------------------
16,460 Spyglass, Inc.* 624,194
- --------------------------------------------------------------------------------
7,500 USWeb Corp.* 333,281
- --------------------------------------------------------------------------------
1,677,665
- --------------------------------------------------------------------------------
INTERNET - SOFTWARE (7.75%)
5,730 Agile Software Corp.* 1,244,752
- --------------------------------------------------------------------------------
2,770 Ariba, Inc.* 491,328
- --------------------------------------------------------------------------------
2,200 CMGI Inc.* 609,125
- --------------------------------------------------------------------------------
7,150 Primus Knowledge Solutions, Inc.* 323,984
- --------------------------------------------------------------------------------
5,620 Razorfish Inc.* 534,602
- --------------------------------------------------------------------------------
3,203,791
- --------------------------------------------------------------------------------
MEDIA - PERIODICALS (0.29%)
4,960 Martha Stewart Living Omnimedia, Inc. 119,040
- --------------------------------------------------------------------------------
MEDIA - RADIO/TV (8.05%)
9,830 Cox Radio, Inc.* 980,542
- --------------------------------------------------------------------------------
10,030 Cumulus Media Inc.* 509,022
- --------------------------------------------------------------------------------
4,470 Emmis Communications Corp.* 557,143
- --------------------------------------------------------------------------------
5,010 Hispanic Broadcasting Corp.* 462,015
- --------------------------------------------------------------------------------
10,570 Salem Communications Corp.* 239,146
- --------------------------------------------------------------------------------
11,930 SBS Broadcasting SA* 580,841
- --------------------------------------------------------------------------------
3,328,709
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
December 31, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (93.66%) - CONTINUED
- --------------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (7.57%)
18,590 BioCryst Pharmaceuticals, Inc.* $ 548,405
- --------------------------------------------------------------------------------
17,280 Cephalon, Inc.* 597,240
- --------------------------------------------------------------------------------
6,120 IDEC Pharmaceuticals Corp.* 601,290
- --------------------------------------------------------------------------------
9,190 Invitrogen Corp.* 551,400
- --------------------------------------------------------------------------------
2,150 Maxygen* 152,650
- --------------------------------------------------------------------------------
4,100 Medimmune, Inc.* 680,087
- --------------------------------------------------------------------------------
3,131,072
- --------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (0.99%)
9,960 Pharmacyclics, Inc.* 410,850
- --------------------------------------------------------------------------------
MEDICAL - INSTRUMENTS (1.68%)
18,720 IDEXX Laboratories, Inc.* 301,860
- --------------------------------------------------------------------------------
15,810 Ventana Medical Systems, Inc.* 393,273
- --------------------------------------------------------------------------------
695,133
- --------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (1.03%)
11,350 Accredo Health, Inc.* 349,012
- --------------------------------------------------------------------------------
9,620 ProVantage Health Services, Inc.* 76,960
- --------------------------------------------------------------------------------
425,972
- --------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (2.82%)
18,900 Allscripts, Inc.* 831,600
- --------------------------------------------------------------------------------
11,520 Priority Healthcare Corp.* 333,360
- --------------------------------------------------------------------------------
1,164,960
- --------------------------------------------------------------------------------
METAL PRODUCTS & FABRICATION (0.99%)
16,610 Maverick Tube Corp.* 410,059
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (1.49%)
16,820 Marine Drilling Co. 377,398
- --------------------------------------------------------------------------------
18,300 Patterson Energy, Inc.* 237,900
- --------------------------------------------------------------------------------
615,298
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (0.78%)
13,810 Paradigm Geophysical Ltd.* 67,755
- --------------------------------------------------------------------------------
18,260 Veritas DGC, Inc.* 255,640
- --------------------------------------------------------------------------------
323,395
- --------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (2.59%)
13,850 Basin Exploration, Inc.* 244,106
- --------------------------------------------------------------------------------
9,350 Devon Energy Corp. 307,381
- --------------------------------------------------------------------------------
23,160 Forest Oil Corp.* 305,422
- --------------------------------------------------------------------------------
6,020 Stone Energy Corp.* 214,462
- --------------------------------------------------------------------------------
1,071,371
- --------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (0.34%)
4,110 AnnTaylor Stores* 141,538
- --------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (0.96%)
13,870 Michaels Stores, Inc.* 395,295
- --------------------------------------------------------------------------------
RETAIL - SUPER/MINI-MARKETS (0.98%)
8,760 Whole Foods Market, Inc.* 406,245
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 14
13 Berger Funds December 31, 1999 Annual Report BERGER IPT-
SMALL COMPANY
GROWTH FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
COMMON STOCK (93.66%) - CONTINUED
TELECOMMUNICATIONS - EQUIPMENT (3.76%)
5,510 Adaptive Broadband Corp.* $ 406,706
- --------------------------------------------------------------------------------
13,400 Aspect Communications Corp.* 524,275
- --------------------------------------------------------------------------------
1,770 Redback Networks Inc.* 314,175
- --------------------------------------------------------------------------------
6,680 Research in Motion, Ltd.* 308,532
- --------------------------------------------------------------------------------
1,553,688
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (3.21%)
3,910 Metasolv Software, Inc* 319,642
- --------------------------------------------------------------------------------
18,810 Viatel, Inc.* 1,008,686
- --------------------------------------------------------------------------------
1,328,328
- --------------------------------------------------------------------------------
Total Common Stock
(Cost $24,857,636) 38,713,933
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (3.23%)
- --------------------------------------------------------------------------------
$1,336,000 State Street Repurchase Agreement,
2.50% dated December 31, 1999, to be
repurchased at $1,336,278 on January
3, 2000, collateralized by U.S.
Treasury Note, 4.63% - December 31,
2000, with a value of $1,364,225 1,336,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,336,000) 1,336,000
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (3.63%)
- --------------------------------------------------------------------------------
$1,500,000 FHLMC Discount Note
4.50%, 1/5/2000 1,499,250
- --------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $1,499,250) 1,499,250
- --------------------------------------------------------------------------------
Total Investments (Cost $27,692,886) (100.52%) 41,549,183
- --------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (-0.52%) (214,374)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $41,334,809
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt
FHLMC - Federal Home Loan Mortgage Corp.
PLC - Public Limited Company.
See notes to financial statements.
<PAGE> 15
BERGER/BIAM IPT- Berger Funds December 31, 1999 Annual Report 14
INTERNATIONAL
FUND
BANK OF IRELAND ASSET
PORTFOLIO MANAGER COMMENTARY MANAGEMENT (U.S.) LTD.
PERFORMANCE
The Berger/BIAM IPT-International Fund (the "Fund") had a total return of
31.24%(1) for the year ended December 31, 1999, compared with 27.30% for the
MSCI EAFE Index.(2)
In January, European markets benefited from the introduction of the new single
currency, the euro, and Japanese markets enjoyed positive investor sentiment as
a result of overseas buying. Markets in the rest of the Pacific region turned in
mixed results largely because of a pickup in sentiment toward Japan and the
phenomenon of western multinationals seeking stakes in Asian companies.
By the second calendar quarter 1999, the new euro currency received negative
press following a steady decline against the U.S. dollar and other major
currencies. We believe the euro is acting as a catalyst for change, however, and
increasing competition across Europe.
Driven by evidence that the global economy is continuing to strengthen, world
equity markets registered exceptional gains toward the end of 1999. Indeed, more
than half of the full-year's performance came in the fourth quarter. Over the
whole of 1999, the MSCI EAFE outperformed the S&P 500 for the first time since
1993.
YEAR IN REVIEW
Two groups of stocks led our portfolio higher this fiscal year: those in the
Growth in Telecommunications theme and Japanese-quoted stocks, particularly
those in our Technological Innovation theme.
The most notable performers among Growth in Telecommunications stocks for the
year were German-quoted Mannesmann and NTT Mobile Communications Network, Inc.
NTT Mobile Communications Network, Inc., was among our strongest contributors
during the past six months. The company is Japan's dominant cellular phone
operator, and its stock rose on the belief that the company will benefit from
growing demand for data transmission services through cellular phones.
Japanese-quoted stocks have been our leading performers most of the year.
Electronics exporters, in particular, did well on the back of buoyant global
demand for PCs, copiers, printers, mobile phones and their related components.
Leading the way was Murata Manufacturing. Rohm, the semiconductor company,
continued to benefit from the increasing demand for its products as the Asian
recovery gathered pace.
Sony had a very strong finish to the year. Its revenue from electronics in all
regions is growing much faster than had been anticipated. In November, the
company announced that it is teaming with 3Com Corp.'s Palm unit to develop new
handheld wireless devices with audio and video capabilities.
Financial stocks were underperformers for most of the second half of the year
amid concerns about the likelihood of interest rate increases in the early part
of 2000. One example of the impact of interest-rate concerns was the response by
National Australia Bank. Even though the bank released results that were greeted
positively by analysts, its stock price fell.
LOOKING AHEAD
The solid economic growth that is forecast for 2000 is likely to prompt central
banks globally to raise interest rates. As a result of the strong performance in
1999, many stock valuations are once again stretched, and unless profit growth
matches rosy expectations, the number of companies driving stock market
performance is likely to narrow even further.
In Asia, the outlook is still generally favorable looking into 2000, but
valuations are now quite demanding. Troubles elsewhere could hamper the recovery
given their dependence on exports. The trend, however, toward better economic
and corporate management is in our view likely to persist and provide
opportunities.
We continue to closely monitor developments in Japan where questions still
remain about the sustainability of the embryonic economic recovery, including
those companies that are either restructuring or that stand to benefit from a
more buoyant Japanese economy.
Looking forward to the current year equity markets, we must balance the negative
influence of rising interest rates against the positive impact of stronger
economic conditions. We expect equity returns to be lower in 2000 given recent
strong performance and current high valuations. While growth in the
telecommunications and technology sectors remains impressive, we would expect
performance in 2000 to be more broad-based, and we continue to find value in
high-quality companies that have not participated in recent bull markets.
(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.
<PAGE> 16
15 Berger Funds December 31, 1999 Annual Report BERGER/BIAM IPT-
INTERNATIONAL
FUND
PERFORMANCE OVERVIEW
COMPARISON OF CHANGE IN VALUE OF BERGER IPT-100 FUND VS. S&P 500
INDEX AND COST OF LIVING INDEX
****************
EAFE Index
$ 15,783
[CHART] ----------------
Berger/BIAM IPT-
International
Fund
$ 14,921
================
Cost of
Living Index
$ 10,506
BERGER/BIAM IPT-INTERNATIONAL FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of December 31, 1999
- -----------------------------------------
<S> <C>
1 Year 31.24%
- -----------------------------------------
Since Inception (5/1/97) 16.17%
- -----------------------------------------
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
December 31, 1999
- -----------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES COMPANY INDUSTRY VALUE
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCK (99.57%)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIA (3.83%)
725 Brambles Industries Ltd. Business & Industrial Services $ 20,053
- -----------------------------------------------------------------------------------------------------------------
4,150 National Australia Bank Ltd. Commercial Banks & Other Banks 63,494
- -----------------------------------------------------------------------------------------------------------------
7,412 News Corp. Ltd. Media 71,984
- -----------------------------------------------------------------------------------------------------------------
9,040 Telstra Corp. Ltd. Utilities 49,151
- -----------------------------------------------------------------------------------------------------------------
4,288 Westpac Banking Corp. Ltd. Commercial Banks & Other Banks 29,584
- -----------------------------------------------------------------------------------------------------------------
234,266
- -----------------------------------------------------------------------------------------------------------------
DENMARK (0.59%)
490 Tele Danmark AS Utilities 36,393
- -----------------------------------------------------------------------------------------------------------------
FRANCE (9.40%)
357 Alcatel Alsthom Computer/Commercial/Office Equipment 82,006
- -----------------------------------------------------------------------------------------------------------------
1,343 Aventis SA Chemicals 78,060
- -----------------------------------------------------------------------------------------------------------------
810 AXA-UAP Insurance - Multi/Property/Casualty 112,944
- -----------------------------------------------------------------------------------------------------------------
680 Michelin - Class B Automobile Components 26,718
- -----------------------------------------------------------------------------------------------------------------
910 Total SA - Class B Oil 121,479
- -----------------------------------------------------------------------------------------------------------------
1,707 Vivendi Diversified Holding Companies 154,180
- -----------------------------------------------------------------------------------------------------------------
575,387
- -----------------------------------------------------------------------------------------------------------------
GERMANY (7.78%)
800 Bayerische HypoVereinsbank AG Commercial Banks & Other Banks 54,646
- -----------------------------------------------------------------------------------------------------------------
2,028 Bayerische Motoren Werk AG DM Automobiles 61,909
- -----------------------------------------------------------------------------------------------------------------
87 Celanese AG* Chemicals 1,582
- -----------------------------------------------------------------------------------------------------------------
1,145 Mannesmann AG Machinery & Engineering Services 276,329
- -----------------------------------------------------------------------------------------------------------------
1,150 Veba AG Diversified Industrials 55,903
- -----------------------------------------------------------------------------------------------------------------
1,410 Viag AG DM* Utilities 25,854
- -----------------------------------------------------------------------------------------------------------------
476,223
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 17
BERGER/BIAM IPT- Berger Funds December 31, 1999 Annual Report 16
INTERNATIONAL
FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- -----------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES COMPANY INDUSTRY VALUE
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCK (99.57%) - CONTINUED
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
HONG KONG (1.32%)
4,000 Cheung Kong (Holdings) Ltd. Real Estate $ 50,813
- -----------------------------------------------------------------------------------------------------------------
3,000 Hong Kong Electric Holdings Utilities 9,378
- -----------------------------------------------------------------------------------------------------------------
2,000 Sun Hung Kai Properties Ltd. Financial Services - Miscellaneous 20,840
- -----------------------------------------------------------------------------------------------------------------
81,031
- -----------------------------------------------------------------------------------------------------------------
ITALY (2.85%)
5,962 ENI S.p.A.* Oil 32,796
- -----------------------------------------------------------------------------------------------------------------
10,045 Telecom Italia S.p.A.* Utilities 141,684
- -----------------------------------------------------------------------------------------------------------------
174,480
- -----------------------------------------------------------------------------------------------------------------
JAPAN (24.08%)
200 ACOM Co. Ltd.* Insurance - Multi/Property/Casualty 19,577
- -----------------------------------------------------------------------------------------------------------------
2,000 Bank of Tokyo-Mitsubishi Ltd. Commercial Banks & Other Banks 27,850
- -----------------------------------------------------------------------------------------------------------------
4,000 Canon, Inc. Computer/Commercial/Office Equipment 158,810
- -----------------------------------------------------------------------------------------------------------------
1,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplies 36,475
- -----------------------------------------------------------------------------------------------------------------
4,000 Hitachi Ltd. Electronics & Instruments 64,150
- -----------------------------------------------------------------------------------------------------------------
1,000 Honda Motor Co. Ltd. Automobiles 37,160
- -----------------------------------------------------------------------------------------------------------------
2,000 Kao Corp. Food & Grocery Products 57,011
- -----------------------------------------------------------------------------------------------------------------
100 Keyence Corp. Electronics & Instruments 40,582
- -----------------------------------------------------------------------------------------------------------------
100 Mabuchi Motor Co. Ltd.+ Electronics & Instruments 17,435
- -----------------------------------------------------------------------------------------------------------------
1,000 Murata Manufacturing Co. Ltd.+ Electronics & Instruments 234,695
- -----------------------------------------------------------------------------------------------------------------
3 Nippon Telegraph & Telephone Utilities 51,339
- -----------------------------------------------------------------------------------------------------------------
6 NTT Mobile Communications Network,
Inc. Utilities 230,588
- -----------------------------------------------------------------------------------------------------------------
1,000 Pioneer Corp. Household Durables & Appliances 26,403
- -----------------------------------------------------------------------------------------------------------------
200 Rohm Company Ltd.+ Electronics & Instruments 82,143
- -----------------------------------------------------------------------------------------------------------------
2,000 Shiseido Co. Ltd. Health & Personal Care 29,141
- -----------------------------------------------------------------------------------------------------------------
800 Sony Corp. Household Durables & Appliances 237,042
- -----------------------------------------------------------------------------------------------------------------
2,000 Takeda Chemical Industries Health & Personal Care 98,767
- -----------------------------------------------------------------------------------------------------------------
200 Takefuji Corp. Insurance - Multi/Property/Casualty 25,014
- -----------------------------------------------------------------------------------------------------------------
1,474,182
- -----------------------------------------------------------------------------------------------------------------
NETHERLANDS (10.17%)
2,495 ABN Amro Holdings NV Commercial Banks & Other Banks 62,340
- -----------------------------------------------------------------------------------------------------------------
1,750 Elsevier NV Media 20,910
- -----------------------------------------------------------------------------------------------------------------
892 Fortis NV Commercial Banks & Other Banks 32,128
- -----------------------------------------------------------------------------------------------------------------
3,175 ING Groep NV Insurance - Multi/Property/Casualty 191,736
- -----------------------------------------------------------------------------------------------------------------
2,345 Koninklijke Ahold NV Retail Trade 69,436
- -----------------------------------------------------------------------------------------------------------------
1,315 Koninklijke KPN NV Utilities 128,379
- -----------------------------------------------------------------------------------------------------------------
955 Royal Dutch Petroleum Co. Oil 58,547
- -----------------------------------------------------------------------------------------------------------------
1,290 TNT Post Group NV Utilities 36,975
- -----------------------------------------------------------------------------------------------------------------
425 VNU NV Tobacco 22,342
- -----------------------------------------------------------------------------------------------------------------
622,793
- -----------------------------------------------------------------------------------------------------------------
NEW ZEALAND (0.17%)
2,178 Telecom Corp. of New Zealand* Utilities 10,265
- -----------------------------------------------------------------------------------------------------------------
PORTUGAL (0.33%)
1,155 Electricidade de Portugal SA Utilities 20,166
- -----------------------------------------------------------------------------------------------------------------
SINGAPORE (2.12%)
4,757 Development Bank of Singapore Ltd. Commercial Banks & Other Banks 77,971
- -----------------------------------------------------------------------------------------------------------------
2,100 Oversea-Chinese Banking Ord Commercial Banks & Other Banks 19,291
- -----------------------------------------------------------------------------------------------------------------
1,500 Singapore Press Holdings Ltd.* Media 32,512
- -----------------------------------------------------------------------------------------------------------------
129,774
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 18
17 Berger Funds December 31, 1999 Annual Report BERGER/BIAM IPT-
INTERNATIONAL
FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- -----------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES COMPANY INDUSTRY VALUE
- -----------------------------------------------------------------------------------------------------------------
COMMON STOCK (99.57%) - CONTINUED
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOUTH KOREA (0.98%)
490 Korea Telecom Corp. ADR Utilities $ 36,627
- -----------------------------------------------------------------------------------------------------------------
675 Pohang Iron & Steel Company
Ltd. ADR Mining, Metals & Minerals 23,625
- -----------------------------------------------------------------------------------------------------------------
60,252
- -----------------------------------------------------------------------------------------------------------------
SPAIN (2.56%)
5,994 Banco De Santander SA* Commercial Banks & Other Banks 67,877
- -----------------------------------------------------------------------------------------------------------------
3,552 Telefonica SA* Utilities 88,744
- -----------------------------------------------------------------------------------------------------------------
156,621
- -----------------------------------------------------------------------------------------------------------------
SWEDEN (0.52%)
500 Telefonaktiebolaget LM Ericsson -
B Shares Utilities 32,139
- -----------------------------------------------------------------------------------------------------------------
SWITZERLAND (8.95%)
40 Alusuisse Lonza Group AG Fabricated Metal Products 29,521
- -----------------------------------------------------------------------------------------------------------------
40 Lonza AG* Chemicals 24,341
- -----------------------------------------------------------------------------------------------------------------
58 Nestle SA Food & Grocery Products 106,359
- -----------------------------------------------------------------------------------------------------------------
64 Novartis AG Reg. Health & Personal Care 94,066
- -----------------------------------------------------------------------------------------------------------------
9 Roche Holding AG Health & Personal Care 106,934
- -----------------------------------------------------------------------------------------------------------------
51 Schweizerische Rueckversicherungs Insurance - Multi/Property/Casualty 104,872
- -----------------------------------------------------------------------------------------------------------------
300 Union Bank of Switzerland AG Reg. Commercial Banks & Other Banks 81,096
- -----------------------------------------------------------------------------------------------------------------
547,189
- -----------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (23.92%)
- -----------------------------------------------------------------------------------------------------------------
6,905 Allied Zurich PLC Insurance - Multi/Property/Casualty 81,506
- -----------------------------------------------------------------------------------------------------------------
1,795 AstraZeneca PLC Health & Personal Care 74,587
- -----------------------------------------------------------------------------------------------------------------
3,330 Barclays PLC Commercial Banks & Other Banks 96,019
- -----------------------------------------------------------------------------------------------------------------
339 British Aerospace PLC Aerospace/Defense 2,250
- -----------------------------------------------------------------------------------------------------------------
5,975 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 34,002
- -----------------------------------------------------------------------------------------------------------------
6,170 Cable & Wireless PLC Utilities 104,728
- -----------------------------------------------------------------------------------------------------------------
7,960 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 48,171
- -----------------------------------------------------------------------------------------------------------------
6,820 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 54,956
- -----------------------------------------------------------------------------------------------------------------
2,258 Emi Group PLC Ord - Class B* Media 22,196
- -----------------------------------------------------------------------------------------------------------------
3,925 Glaxo Wellcome PLC Health & Personal Care 111,143
- -----------------------------------------------------------------------------------------------------------------
8,120 Granada Group PLC Entertainment/Leisure/Toys 82,447
- -----------------------------------------------------------------------------------------------------------------
7,510 Hilton Group PLC Entertainment/Leisure/Toys 24,085
- -----------------------------------------------------------------------------------------------------------------
2,400 HSBC Holdings PLC Commercial Banks & Other Banks 33,652
- -----------------------------------------------------------------------------------------------------------------
10,280 Invensys PLC Machinery & Engineering Services 56,056
- -----------------------------------------------------------------------------------------------------------------
6,580 Lloyds TSB Group PLC Commercial Banks & Other Banks 82,461
- -----------------------------------------------------------------------------------------------------------------
800 Marconi PLC Utilities 14,181
- -----------------------------------------------------------------------------------------------------------------
1,056 National Power PLC Utilities 6,125
- -----------------------------------------------------------------------------------------------------------------
1,960 National Westminster Bank PLC Commercial Banks & Other Banks 42,180
- -----------------------------------------------------------------------------------------------------------------
5,100 Old Mutual PLC* Insurance - Multi/Property/Casualty 13,905
- -----------------------------------------------------------------------------------------------------------------
1,550 Pearson PLC Media 50,261
- -----------------------------------------------------------------------------------------------------------------
6,325 Prudential PLC Insurance - Life & Agents/Brokers 124,860
- -----------------------------------------------------------------------------------------------------------------
1,010 Railtrack Group PLC Road & Rail 16,996
- -----------------------------------------------------------------------------------------------------------------
12,454 Shell Transport & Trading Co. PLC Oil 103,681
- -----------------------------------------------------------------------------------------------------------------
1,600 TI Group PLC Machinery & Engineering Services 12,297
- -----------------------------------------------------------------------------------------------------------------
34,645 Vodafone AirTouch Group PLC Utilities 171,933
- -----------------------------------------------------------------------------------------------------------------
1,464,678
- -----------------------------------------------------------------------------------------------------------------
Total Common Stock (Cost $4,119,256) 6,095,839
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 19
BERGER/BIAM IPT- Berger Funds December 31, 1999 Annual Report 18
INTERNATIONAL
FUND
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
December 31, 1999
- -----------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES/
PAR VALUE COMPANY INDUSTRY VALUE
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.52%)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
$32,000 State Street Repurchase Agreement, 2.50%
dated December 31, 1999, to be repurchased at
$32,007 on January 3, 2000, collateralized by
FNMA Agency Note, 6.40% - December 21, 2001,
with a value of $34,956 $ 32,000
- -----------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement (Cost $32,000) 32,000
- -----------------------------------------------------------------------------------------------------------------
Total Investments (Cost $4,151,256) (100.09%) 6,127,839
- -----------------------------------------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (-0.09%) (5,578)
- -----------------------------------------------------------------------------------------------------------------
Net Assets (100.00%) $ 6,122,261
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
+ - Security is designated as collateral for forward foreign currency contracts.
ADR - American Depositary Receipt.
FNMA - Federal National Mortgage Association.
PLC - Public Limited Company.
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
Unrealized
Contract Maturity Value on Appreciation/
Currency Amount Date December 31, 1999 (Depreciation)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 10,341,000 1/18/2000 $ 101,482 $ (3,845)
- ----------------------------------------------------------------------------------------------
Sell Japanese Yen 5,043,000 2/09/2000 49,681 (1,086)
- ----------------------------------------------------------------------------------------------
Sell Japanese Yen 6,576,000 2/18/2000 64,872 (1,520)
- ----------------------------------------------------------------------------------------------
Sell Japanese Yen 5,794,000 2/24/2000 57,210 (1,747)
- ----------------------------------------------------------------------------------------------
Sell Japanese Yen 3,986,000 2/29/2000 39,387 (436)
- ----------------------------------------------------------------------------------------------
$ 312,632 $ (8,634)
- ----------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 20
19 Annual Report December 31, 1999 Berger Funds FINANCIAL
STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Berger IPT- Berger IPT- Berger/BIAM IPT-
Berger IPT- Growth and Small Company International
December 31, 1999 100 Fund Income Fund Growth Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at cost $ 4,615,283 $ 16,871,443 $ 27,692,886 $ 4,151,256
- ------------------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 6,740,124 $ 25,107,183 $ 41,549,183 $ 6,127,839
- ------------------------------------------------------------------------------------------------------------------------------------
Cash 43,005 696 320,744 7,184
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign Cash (cost $16,613) -- -- -- 16,711
- ------------------------------------------------------------------------------------------------------------------------------------
Receivables
- ------------------------------------------------------------------------------------------------------------------------------------
Investment securities sold -- -- 981,456 --
- ------------------------------------------------------------------------------------------------------------------------------------
Fund shares sold 47,656 122,239 719,440 4,243
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends 680 8,490 465 9,456
- ------------------------------------------------------------------------------------------------------------------------------------
Interest 22 10,805 92 2
- ------------------------------------------------------------------------------------------------------------------------------------
Due from Advisor 7,048 3,569 2,464 7,498
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 6,838,535 25,252,982 43,573,844 6,172,933
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 111,994 352,219 1,874,960 --
- ------------------------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 43,068 -- 321,173 20,481
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 3,838 14,480 26,001 4,504
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 5,709 6,325 9,364 7,297
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 1,291 1,068 1,544 1,269
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued audit fees 6,925 6,925 5,924 8,474
- ------------------------------------------------------------------------------------------------------------------------------------
Other accrued expenses 46 16 69 13
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized depreciation on forward foreign currency contracts -- -- -- 8,634
- ------------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 172,871 381,033 2,239,035 50,672
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 6,665,664 $ 24,871,949 $ 41,334,809 $ 6,122,261
- ------------------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 4,178,329 $ 15,460,279 $ 26,670,268 $ 4,215,841
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated net investment loss) (67) 14,491 -- 16,221
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain/(Accumulated net realized loss)
on investments 362,561 1,161,473 808,244 (77,514)
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of securities
and foreign currency transactions 2,124,841 8,235,706 13,856,297 1,967,713
- ------------------------------------------------------------------------------------------------------------------------------------
$ 6,665,664 $ 24,871,949 $ 41,334,809 $ 6,122,261
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding (par value $0.01, unlimited shares authorized) 346,890 940,355 1,757,923 418,372
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 19.22 $ 26.45 $ 23.51 $ 14.63
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 21
FINANCIAL Berger Funds December 31, 1999 Annual Report 20
STATEMENTS
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Berger IPT- Berger IPT- Berger/BIAM IPT-
Berger IPT- Growth and Small Company International
For the Year Ended December 31, 1999 100 Fund Income Fund Growth Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 21,534 $ 101,411 $ 4,178 $ 100,888
- ------------------------------------------------------------------------------------------------------------------------------------
Interest 22,483 56,718 84,540 5,120
- ------------------------------------------------------------------------------------------------------------------------------------
Foreign tax withholding -- (1,375) -- (12,764)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Income 44,017 156,754 88,718 93,244
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 35,613 109,196 132,056 49,260
- ------------------------------------------------------------------------------------------------------------------------------------
Administrative services fees 338 967 862 409
- ------------------------------------------------------------------------------------------------------------------------------------
Accounting fees 14,935 14,930 14,931 15,466
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian fees 19,649 14,108 38,602 26,049
- ------------------------------------------------------------------------------------------------------------------------------------
Transfer agent fees 10,180 8,814 12,835 9,947
- ------------------------------------------------------------------------------------------------------------------------------------
Audit fees 9,300 9,300 9,299 12,499
- ------------------------------------------------------------------------------------------------------------------------------------
Legal fees 4,090 4,747 4,997 4,175
- ------------------------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 330 950 880 402
- ------------------------------------------------------------------------------------------------------------------------------------
Shareholder reporting fees 9,409 9,535 15,412 16,055
- ------------------------------------------------------------------------------------------------------------------------------------
Other expenses 264 716 624 373
- ------------------------------------------------------------------------------------------------------------------------------------
Gross Expenses 104,108 173,263 230,498 134,635
- ------------------------------------------------------------------------------------------------------------------------------------
Less fees waived and/or reimbursed by Advisor (56,591) (27,572) (57,324) (68,918)
- ------------------------------------------------------------------------------------------------------------------------------------
Less fees paid indirectly (642) (590) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Less earnings credits (474) (3,464) (775) (301)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 46,401 141,637 172,399 65,416
- ------------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (2,384) 15,117 (83,681) 27,828
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on securities and foreign currency transactions 564,793 1,708,647 2,133,648 121,214
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on futures contracts 1,536 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on securities
and foreign currency transactions 1,552,740 6,379,926 12,267,043 1,380,615
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments
and Foreign Currency Transactions 2,119,069 8,088,573 14,400,691 1,501,829
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,116,685 $ 8,103,690 $ 14,317,010 $ 1,529,657
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 22
21 Annual Report December 31, 1999 Berger Funds FINANCIAL
STATEMENTS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT-
Berger IPT- Growth and
100 Fund Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (2,384) $ 7,213 $ 15,117 $ 58,137
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign
currency transactions 564,793 (199,333) 1,708,647 (546,982)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on futures contracts 1,536 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on securities
and foreign currency transactions 1,552,740 567,945 6,379,926 1,742,890
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 2,116,685 375,825 8,103,690 1,254,045
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (919) (6,568) -- (59,415)
- ------------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income (113) -- -- (218)
- ------------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- (1,714) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and
Distributions to Shareholders (1,032) (8,282) -- (59,633)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 2,709,706 3,139,142 14,222,645 7,293,615
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends
and distributions 1,032 8,282 -- 59,633
- ------------------------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (1,870,836) (1,038,750) (6,538,408) (964,756)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Derived from
Fund Share Transactions 839,902 2,108,674 7,684,237 6,388,492
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 2,955,555 2,476,217 15,787,927 7,582,904
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 3,710,109 1,233,892 9,084,022 1,501,118
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 6,665,664 $ 3,710,109 $ 24,871,949 $ 9,084,022
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated net
investment loss) $ (67) $ 919 $ 14,491 --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 192,103 260,915 711,283 496,555
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends
and distributions 55 664 -- 3,627
- ------------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (133,093) (84,839) (317,174) (66,025)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Shares 59,065 176,740 394,109 434,157
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 287,825 111,085 546,246 112,089
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 346,890 287,825 940,355 546,246
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 23
FINANCIAL Berger Funds December 31, 1999 Annual Report 22
STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT- Berger/BIAM IPT-
Small Company International
Growth Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 1998 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (83,681) $ (6,382) $ 27,828 $ 110,394
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency
transactions 2,133,648 (1,141,963) 121,214 (229,058)
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on securities
and foreign currency transactions 12,267,043 1,414,843 1,380,615 645,925
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 14,317,010 266,498 1,529,657 527,261
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income -- -- (34,474) (66,063)
- ------------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- (3,942) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- -- -- (8,494)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions
to Shareholders -- (3,942) (34,474) (74,557)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 39,787,939 17,333,156 1,641,409 2,511,975
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends
and distributions -- 3,921 34,474 69,387
- ------------------------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (22,628,443) (10,460,889) (2,478,881) (309,821)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions 17,159,496 6,876,188 (802,998) 2,271,541
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 31,476,506 7,138,744 692,185 2,724,245
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 9,858,303 2,719,559 5,430,076 2,705,831
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 41,334,809 $ 9,858,303 $ 6,122,261 $ 5,430,076
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated net
investment loss) -- -- $ 16,221 $ 43,128
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 2,575,054 1,480,619 136,622 231,445
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends
and distributions -- 331 2,400 6,229
- ------------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (1,619,624) (903,929) (205,121) (29,584)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 955,430 577,021 (66,099) 208,090
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 802,493 225,472 484,471 276,381
- ------------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,757,923 802,493 418,372 484,471
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 24
23 Annual Report December 31, 1999 Berger Funds FINANCIAL
HIGHLIGHTS
BERGER IPT - 100 FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1999 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 0.01 0.03
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 6.33 1.79 1.39 0.36
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 6.33 1.81 1.40 0.39
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.00)(6) (0.02) (0.04) --
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 19.22 $ 12.89 $ 11.11 $ 10.39
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 49.13% 16.29% 13.76% 3.90%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $6,665,664 $3,710,109 $1,233,892 $ 331,296
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.00% 1.00% 1.00%(5) 1.00%(4)(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.05)% 0.29% 0.51% 0.50%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 2.19% 2.88% 9.18% 7.69%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 231% 258% 246% 56%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor. Gross and net expenses do not include the deduction
of any charges attributable to any particular variable insurance contract.
4. Annualized.
5. Restated to conform with new presentation standards.
6. Dividends from net investment income and distributions in excess of net
investment income amounted to less than $0.01 per share.
BERGER IPT - GROWTH AND INCOME FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1999 1998 1997 1996(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.63 $ 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 9.80 3.25 2.75 1.04
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 9.82 3.35 2.76 1.14
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- (0.11)(6) (0.10) --
- ------------------------------------------------------------------------------------------------------------------------------------
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 $ 26.45 $ 16.63 $ 13.39 $ 11.14
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 59.05% 25.03% 24.99% 11.40%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $24,871,949 $ 9,084,022 $ 1,501,118 $ 344,373
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.00% 1.00% 1.00%(5) 1.00%(4)(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.10% 1.10% 1.39% 1.80%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.19% 1.99% 9.62% 7.70%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 149% 426% 215% 60%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor. Gross and net expenses do not include the deduction
of any charges attributable to any particular variable insurance contract.
4. Annualized.
5. Restated to conform with new presentation standards.
6. Distributions in excess of net investment income for the year ended December
31, 1998, amounted to less than $0.01 per share.
See notes to financial statements.
<PAGE> 25
FINANCIAL Berger Funds December 31, 1999 Annual Report 24
HIGHLIGHTS
BERGER IPT - SMALL COMPANY GROWTH FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1999 1998 1997 1996(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.28 $ 12.06 $ 9.95 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) -- -- 0.00(6) 0.01
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 11.23 0.23 2.11 (0.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 11.23 0.23 2.11 (0.05)
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (in excess of net investment income) -- (0.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- (0.01) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 23.51 $ 12.28 $ 12.06 $ 9.95
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 91.45% 1.87% 21.21% (0.50)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period $41,334,809 $ 9,858,303 $ 2,719,559 $ 291,362
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.15% 1.15% 1.15%(5) 1.15%(4)(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.56)% (0.11)% 0.05% 0.14%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.53% 2.19% 5.81% 8.57%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 179% 147% 194% 80%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 1996 (commencement of investment operations) to
December 31, 1996.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor. Gross and net expenses do not include the deduction
of any charges attributable to any particular variable insurance contract.
4. Annualized.
5. Restated to conform with new presentation standards.
6. Amount represents less than $0.01 per share.
BERGER/BIAM IPT - INTERNATIONAL FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Years Ended December 31,
------------------------
1999 1998 1997(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 11.21 $ 9.79 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.03 0.08 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 3.47 1.50 (0.26)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.50 1.58 (0.21)
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.08) (0.14) --
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions (in excess of capital gains) -- (0.02) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.08) (0.16) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.63 $ 11.21 $ 9.79
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 31.24% 16.13% (2.10)%
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $ 6,122,261 $ 5,430,076 $ 2,705,831
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.20% 1.20% 1.20%(4)(5)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.51% 2.85% 0.86%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 2.46% 2.85% 3.83%(4)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 26% 20% 14%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 1997 (commencement of investment operations) to
December 31, 1997.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor. Gross and net expenses do not include the deduction
of any charges attributable to any particular variable insurance contract.
4. Annualized.
5. Restated to conform with new presentation standards.
See notes to financial statements.
<PAGE> 26
25 Annual Report December 31, 1999 Berger Funds NOTES TO
FINANCIAL
STATEMENTS
[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 LLC ("Berger"), formerly Berger Associates, Inc., 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 December 31, 1999, Berger indirectly owned 48% of the outstanding shares of
IPT-International. Berger did not own, directly or indirectly, any of the
outstanding shares of IPT-100, IPT-G&I or IPT-SCG at December 31, 1999.
Effective September 30, 1999, Berger Associates, Inc. transferred its operating
assets and business to Berger. Accordingly, Berger now serves as investment
advisor to certain of the Funds. The transfer did not result in any change to
the investment objectives or principal investment strategies of the Funds, or
result in any change to the day-to-day management of the Fund's investments.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges and foreign exchanges are valued at the
last sale price on such markets, or, if no last sale price is available, they
are valued using the mean between their current bid and ask prices. Prices for
foreign securities are converted to U.S. dollars using exchange rates determined
prior to the close of the Exchange. Securities traded in the over-the-counter
market are valued at the mean between their current bid and ask prices.
Short-term obligations maturing within sixty days are valued at amortized cost,
which approximates market value. Prices of foreign securities are converted to
U.S. dollars using exchange rates determined prior to the close of the Exchange.
Securities for which quotations are not readily available are valued at fair
values as 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 that 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.
CALCULATION OF NET ASSET VALUE
Each Fund's per share calculation of net asset value is determined by dividing
the total value of it 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.
<PAGE> 27
NOTES TO Berger Funds December 31, 1999 Annual Report 26
FINANCIAL
STATEMENTS
[1] ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 with the exception
that certain dividends from foreign securities are recorded as soon as a Fund is
informed of the ex-dividend date if such information is obtained subsequent to
the ex-dividend date. Interest income is recorded on the accrual basis and
includes accretion of discount and amortization of premium. 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 may differ from those estimates.
[2] AGREEMENTS
Berger serves as the investment advisor to IPT-100, IPT-G&I and IPT-SCG and BBOI
serves as the investment advisor to IPT-International. Berger and Bank of
Ireland Asset Management (U.S.) Limited ("BIAM") each own 50% of BBOI. BBOI has
delegated the day-to-day portfolio management of IPT-International to BIAM. As
compensation for their services to the Funds, Berger and BBOI receive an
investment advisory fee, which is accrued daily at the applicable rate and paid
monthly. From January 1, 1999 to September 30, 1999, the investment advisory fee
charged to IPT-100, IPT-G&I, IPT-SCG and IPT-International was .75%, .75%, .90%
and .90% per annum of each Fund's average daily net assets, respectively.
Effective October 1, 1999, the investment advisory fee charged to IPT-100,
IPT-G&I and IPT-SCG was reduced according to the following schedule:
<TABLE>
<CAPTION>
Average Daily
Fund Net Assets Annual Rate
- --------------------------------------------------------------------------------
<S> <C> <C>
IPT-100, IPT-G&I First $500 million .75%
Next $500 million .70%
Over $1 billion .65%
- --------------------------------------------------------------------------------
IPT-SCG First $500 million .85%
Next $500 million .80%
Over $1 billion .75%
- --------------------------------------------------------------------------------
</TABLE>
The investment advisory fee charged to IPT-International remained at .90% of the
Fund's average daily net assets. As sub-advisor to IPT-International, BIAM
receives a sub-advisory fee from BBOI at an annual rate of .40% of the average
daily net assets of the Fund. Such sub-advisory fees have been voluntarily
waived by BIAM for the period from May 1, 1997 to October 15, 2000. Berger and
BBOI have agreed to waive their advisory fees and reimburse expenses to the
Funds to the extent that normal operating expenses in any fiscal year (including
the advisory fee but excluding brokerage commissions, interest, taxes and
extraordinary expenses) exceed 1.00% of the average daily net assets of both
IPT-100 and IPT-G&I, 1.15% of the average daily net assets of IPT-SCG and 1.20%
of the average daily net assets of IPT-International.
IPT-100, IPT-G&I and IPT-SCG have entered into administrative services
agreements with Berger and IPT-International has entered into an administrative
services agreement with BBOI. From January 1, 1999 to September 30, 1999, the
administrative services agreements provided for an annual fee of .01% of the
average daily net assets of each Fund accrued daily and paid monthly. Effective
October 1, 1999, Berger and BBOI eliminated the fee charged to the Funds for
such services. 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-administrative fee for the period May 1, 1997 to
December 31, 1999.
The Trust, on behalf of the Funds, 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 the Fund, based on the
cash balances of the Fund held by IFTC as custodian or by credits received from
directed brokerage transactions.
<PAGE> 28
27 Berger Funds December 31, 1999 Annual Report NOTES TO
FINANCIAL
STATEMENTS
[2] AGREEMENTS - CONTINUED
DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common
ownership, provides shareholder accounting services to the Funds. DST
Securities, Inc., a wholly owned subsidiary of DST, is designated as an
introductory broker on certain portfolio transactions. The Funds receive an
amount equal to the brokerage commissions paid to DST Securities, Inc. as
credits against transfer agent fees and expenses. For the year ended December
31, 1999, IPT-100 and IPT-G&I received brokerage credits totaling $642 and $590,
respectively. IPT-SCG and IPT-International had no brokerage credits for the
year ended December 31, 1999.
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 $330, $950, $880 and $402 from IPT-100,
IPT-G&I, IPT-SCG, and IPT-International, respectively, for the year ended
December 31, 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 trustee fees payable.
The deferred fees remain in the Funds and are invested in various funds advised
by Berger until distribution in accordance with the Plan.
[3] INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) for the year ended December 31, 1999, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
- --------------------------------------------------------------------------------
<S> <C> <C>
IPT-100 $11,257,696 $10,044,926
- --------------------------------------------------------------------------------
IPT-G&I 28,328,840 20,731,996
- --------------------------------------------------------------------------------
IPT-SCG 41,327,202 25,528,935
- --------------------------------------------------------------------------------
IPT-International 1,399,960 1,970,076
- --------------------------------------------------------------------------------
</TABLE>
There were no purchases or sales of long-term U.S. government securities during
the period.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At December 31, 1999, the federal tax cost of securities and composition of net
unrealized appreciation (depreciation) for securities were as follows:
<TABLE>
<CAPTION>
Gross Gross Net
Federal Unrealized Unrealized Appreciation/
Fund Tax Cost Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
IPT-100 $ 4,643,708 $ 2,244,114 $ (147,698) $ 2,096,416
- --------------------------------------------------------------------------------
IPT-G&I 17,154,701 8,259,854 (307,372) 7,952,482
- --------------------------------------------------------------------------------
IPT-SCG 28,174,042 14,086,466 (711,325) 13,375,141
- --------------------------------------------------------------------------------
IPT-Int'l 4,181,447 2,127,650 (181,258) 1,946,392
- --------------------------------------------------------------------------------
</TABLE>
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 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.
REPURCHASE AGREEMENTS
Repurchase agreements held by a Fund are fully collateralized by U.S. government
securities and such collateral is in the possession of the Fund's custodian. The
collateral is evaluated daily to ensure its market value exceeds the current
market value of the repurchase agreements including accrued interest. In the
event of default on the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
CONCENTRATION OF RISK
The Funds may have elements of risk due to concentrated investments in specific
industries or foreign issuers located in a specific country. Such concentrations
may subject the Funds to additional risk 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 (Loss)
on Investments and Foreign Currency Transactions in the Statement of Operations
includes fluctuations from currency exchange rates and fluctuations in market
value.
FEDERAL INCOME TAXES
Dividends received by shareholders of the Funds which are derived from foreign
source income and foreign taxes paid by the Funds are to be treated, to the
extent allowable under the Code, as if received and paid by the shareholders of
the Funds.
<PAGE> 29
NOTES TO Berger Funds December 31, 1999 Annual Report 28
FINANCIAL
STATEMENTS
[3] INVESTMENT TRANSACTIONS - CONTINUED
For the fiscal year ended December 31, 1999, 90% of the ordinary income
distributions declared by IPT-100 qualified for the dividends received
deduction available to corporate shareholders. IPT-G&I, IPT-SCG and
IPT-International distributions from ordinary income did not qualify for the
dividends received deduction to corporate shareholders for the fiscal year
ended December 31, 1999.
At December 31, 1999, IPT-International had $47,590 in net capital loss
carryovers which expire in the year 2006. The capital loss carryovers may be
used to offset future realized capital gains for federal income tax purposes.
Net capital loss carryovers used to offset realized capital gains in 1999
amounted to $156,868, $418,961, $987,704, and $124,472 for IPT-100, IPT-G&I,
IPT-SCG and IPT-International, respectively. IPT-100, IPT-G&I, and
IPT-International incurred and elected to defer post-October 31 currency losses
amounting to $67, $626, and $12,564, respectively, to the year ended December
31, 2000.
During the year ended December 31, 1999, IPT-International Fund paid $14,764 of
foreign taxes on $100,888 of foreign source income. IPT-International will make
the foreign tax credit election to pass through these taxes to the shareholder.
The Funds distribute net realized capital gains, if any, to their shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations, which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatment of
net operating losses, foreign currency and tax allocations. Accordingly, these
permanent differences in the character of income and distributions between
financial statements and tax basis have been reclassified to paid-in-capital.
During the periods ended December 31, 1999, the following reclassifications were
made:
<TABLE>
<CAPTION>
Undistributed Undistributed
Paid-in Net Investment Net Realized
Fund Capital Income Gains
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
IPT-100 -- $ 2,430 $ (2,430)
- --------------------------------------------------------------------------------
IPT-G&I -- (626) 626
- --------------------------------------------------------------------------------
IPT-SCG -- 83,681 (83,681)
- --------------------------------------------------------------------------------
IPT-International -- (20,261) 20,261
- --------------------------------------------------------------------------------
</TABLE>
[4] SUBSEQUENT EVENTS
On January 19, 2000, Berger and BIAM entered into an agreement to dissolve BBOI.
The dissolution of BBOI will have no effect on the investment advisory services
to IPT-International or on the fees borne by the Fund for advisory services.
Contingent upon shareholder approval, when BBOI is dissolved, Berger will become
the Fund's advisor and BIAM will continue to be responsible for the day-to-day
management of the Fund's portfolio as sub-advisor. If approved by shareholders,
these advisory changes are expected to take place in the first half of the year.
Effective January 31, 2000, IPT-100 formally changed its name to Berger
IPT-Growth Fund. The name change did not alter the investment objective or
principal investment strategies of the Fund, or result in any change to the
day-to-day management of the Fund's investments.
<PAGE> 30
29 Berger Funds December 31, 1999 Annual Report REPORT OF
INDEPENDENT
ACCOUNTANTS
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF
BERGER INSTITUTIONAL PRODUCTS TRUST
In our opinion, the accompanying statements of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger IPT - 100 Fund, Berger IPT -
Growth and Income Fund, Berger IPT - Small Company Growth Fund and Berger/BIAM
IPT - International Fund (constituting Berger Institutional Products Trust,
hereafter referred to as the "Trust") at December 31, 1999, the results of each
of their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Trust's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/ PRICEWATERHOUSECOOPERS LLP
PricewaterhouseCoopers LLP
Denver, Colorado
February 4, 2000
<PAGE> 31
[BERGER FUNDS LOGO]
IPT-ANN 12/99
