<PAGE> 1
BERGER INSTITUTIONAL PRODUCTS TRUST
ANNUAL
REPORT
DECEMBER 31, 1999
BERGER/BIAM IPT-INTERNATIONAL FUND
<PAGE> 2
This report reflects the financial position of the Fund at December 31, 1999 and
the results of operations and changes in its net assets for the periods
indicated.
<PAGE> 3
2 Portfolio Manager Commentary
3 Schedule of Investments
7 Statement of Assets and Liabilities
8 Statement of Operations
9 Statements of Changes in Net Assets
10 Financial Highlights
11 Notes to Financial Statements
15 Report of Independent Accountants
[BERGER FUNDS LOGO]
<PAGE> 4
BERGER/BIAM IPT-
INTERNATIONAL
FUND
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 2
Bank of Ireland Asset
Portfollo 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> 5
3 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
Performance Overview
Comparison of Change in Value of Berger/BIAM IPT-International Fund vs. EAFE
Index and Cost of Living Index
[GRAPH]
- ----------
EAFE Index
$15,783
- ----------
Berger/BIAM IPT-
International Fund
$14,921
- ------------
Cost of
Living Index
$10,506
[GRAPH]
*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>
- -----------------------------------------------------------------------------------------------------------------
Berger/BIAM IPT-
International
Fund 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. Commerical 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> 6
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 4
Schedule of Investments
<TABLE>
<CAPTION>
Berger/BIAM IPT-
International
Fund 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> 7
5 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
<TABLE>
<CAPTION>
Berger/BIAM INT-
International
Fund 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> 8
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 6
SCHEDULE OF INVESTMENTS
<TABLE>
<CAPTION>
Berger/BIAM IPT-
International
Funds DECEMBER 31, 1999
- -----------------------------------------------------------------------------------------------------------------
COUNTRY/ SHARES/
PAR VALUE COMPANY INDUSTRY VALUE
- -----------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.52%)
- -----------------------------------------------------------------------------------------------------------------
<S> <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> 9
FINANCIAL
STATEMENTS
7 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
Berger/BIAM IPT-
International
Fund December 31, 1999
- -----------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $ 4,151,256
- -----------------------------------------------------------------------------------------------------------
Investments, at value $ 6,127,839
- -----------------------------------------------------------------------------------------------------------
Cash 7,184
- -----------------------------------------------------------------------------------------------------------
Foreign Cash (cost $16,613) 16,711
- -----------------------------------------------------------------------------------------------------------
Receivables
- -----------------------------------------------------------------------------------------------------------
Fund shares sold 4,243
- -----------------------------------------------------------------------------------------------------------
Dividends 9,456
- -----------------------------------------------------------------------------------------------------------
Interest 2
- -----------------------------------------------------------------------------------------------------------
Due from Advisor 7,498
- -----------------------------------------------------------------------------------------------------------
Total Assets 6,172,933
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Fund shares redeemed 20,481
- -----------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 4,504
- -----------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 7,297
- -----------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 1,269
- -----------------------------------------------------------------------------------------------------------
Accrued audit fees 8,474
- -----------------------------------------------------------------------------------------------------------
Other accrued expenses 13
- -----------------------------------------------------------------------------------------------------------
Net unrealized depreciation on forward foreign currency contracts 8,634
- -----------------------------------------------------------------------------------------------------------
Total Liabilities 50,672
- -----------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 6,122,261
- -----------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------
Capital (par value and paid in surplus) $ 4,215,841
- -----------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated net investment loss) 16,221
- -----------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (77,514)
- -----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of securities
and foreign currency transactions 1,967,713
- -----------------------------------------------------------------------------------------------------------
$ 6,122,261
- -----------------------------------------------------------------------------------------------------------
Shares Outstanding (par value $0.01, unlimited shares authorized) 418,372
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 14.63
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 10
FINANCIAL
STATEMENTS
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 8
Statements of Operations
<TABLE>
<CAPTION>
Berger/BIAM IPT-
International YEAR ENDED
Fund DECEMBER 31, 1999
- -------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividends $ 100,888
- -------------------------------------------------------------------------------------------
Interest 5,120
- -------------------------------------------------------------------------------------------
Foreign tax withholding (12,764)
- -------------------------------------------------------------------------------------------
Total Income 93,244
- -------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 49,260
- -------------------------------------------------------------------------------------------
Administrative services fees 409
- -------------------------------------------------------------------------------------------
Accounting fees 15,466
- -------------------------------------------------------------------------------------------
Custodian fees 26,049
- -------------------------------------------------------------------------------------------
Transfer agent fees 9,947
- -------------------------------------------------------------------------------------------
Audit fees 12,499
- -------------------------------------------------------------------------------------------
Legal fees 4,175
- -------------------------------------------------------------------------------------------
Trustees' fees and expenses 402
- -------------------------------------------------------------------------------------------
Shareholder reporting fees 16,055
- -------------------------------------------------------------------------------------------
Other expenses 373
- -------------------------------------------------------------------------------------------
Gross Expenses 134,635
- -------------------------------------------------------------------------------------------
Less fees waived and/or reimbursed by Advisor (68,918)
- -------------------------------------------------------------------------------------------
Less earnings credits (301)
- -------------------------------------------------------------------------------------------
Net Expenses 65,416
- -------------------------------------------------------------------------------------------
Net Investment Income (Loss) 27,828
- -------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on securities and foreign currency transactions 121,214
- -------------------------------------------------------------------------------------------
Net change in unrealized appreciation on securities
and foreign currency transactions 1,380,615
- -------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments
and Foreign Currency Transactions 1,501,829
- -------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 1,529,657
- -------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 11
FINANCIAL
STATEMENTS
9 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Berger/BIAM IPT- Year Ended
International December 31,
Fund 1999 1998
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 27,828 $ 110,394
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 121,214 (229,058)
- ---------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation on securities
and foreign currency transactions 1,380,615 645,925
- ---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 1,529,657 527,261
- ---------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (34,474) (66,063)
- ---------------------------------------------------------------------------------------------------------------
In excess of net realized gain on investments -- (8,494)
- ---------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (34,474) (74,557)
- ---------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 1,641,409 2,511,975
- ---------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends
and distributions 34,474 69,387
- ---------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (2,478,881) (309,821)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions (802,998) 2,271,541
- ---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 692,185 2,724,245
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 5,430,076 2,705,831
- ---------------------------------------------------------------------------------------------------------------
End of period $ 6,122,261 $ 5,430,076
- ---------------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 16,221 $ 43,128
- ---------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------
Shares sold 136,622 231,445
- ---------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 2,400 6,229
- ---------------------------------------------------------------------------------------------------------------
Shares repurchased (205,121) (29,584)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (66,099) 208,090
- ---------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 484,471 276,381
- ---------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 418,372 484,471
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE> 12
FINANCIAL
HIGHLIGHTS
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 10
<TABLE>
<CAPTION>
Berger/BIAM IPT-
International Fund
For a Share Outstanding Throughout the Period
- ----------------------------------------------------------------------------------------------------------------
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> 13
NOTES TO
FINANCIAL
STATEMENTS
11 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
1. Organization and Significant Accounting Policies
ORGANIZATION
The Berger/BIAM IPT-International Fund (the "Fund") is a series of the Berger
Institutional Products Trust (the "Trust"), a Delaware business trust,
established on October 17, 1995. The Trust is organized 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 the Fund, Berger IPT-100 Fund ("IPT-100"),
Berger IPT-Growth and Income Fund ("IPT-G&I"), and Berger IPT-Small Company
Growth Fund ("IPT-SCG") are the only portfolios established under the Trust,
although others may be added in the future. The Fund commenced 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
the Fund.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its 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 of
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. 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.
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
The 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 Fund's policy to comply with the requirements of the Internal Revenue
Code ("Code") applicable to regulated investment companies and to distribute all
of its taxable income to shareholders. Therefore, no income tax provision is
required.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are purchased
or sold. Dividend income is recorded on the ex-dividend date with the exception
that certain dividends from foreign securities are recorded as soon as the 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.
<PAGE> 14
NOTES TO
FINANCIAL
STATEMENTS
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 12
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
COMMON EXPENSES
Certain expenses, which are 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
BBOI serves as the investment advisor to the Fund. 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 the Fund to BIAM. Effective
September 30, 1999, Berger Associates, Inc. transferred its operating assets and
business to Berger. Accordingly, Berger now serves as investment advisor to the
Fund. The transfer did not result in any change to the investment objectives or
principal investment strategies of the Fund, or result in any change to the
day-to-day management of the Fund's investments. As compensation for their
services to the Fund, BBOI receives an investment advisory fee at an annual rate
of .90% of the Fund's average daily net assets. Such fee is accrued daily and
paid monthly. As sub-advisor to the Fund, BIAM receives a sub-advisory fee from
BBOI at an annual rate of .40% of the average daily net assets of the Fund. BIAM
has agreed to waive such sub-advisory fees for the period May 1, 1997 to October
15, 2000. BBOI has agreed to waive its advisory fee and reimburse expenses to
the Fund to the extent that normal operating expenses in any given fiscal year
(including the advisory fee but excluding brokerage commissions, interest, taxes
and extraordinary expenses) exceed 1.20% of the average daily net assets of the
Fund.
The Fund has entered into an administrative services agreement with BBOI. From
January 1, 1999 to September 30, 1999, the administrative services agreement
provided for a fee at an annual rate of .01% of the average daily net assets of
the Fund. Effective October 1, 1999, BBOI eliminated the fee charged to the Fund
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 the Fund. Berger has voluntarily waived
such sub-administration fee for the period May 1, 1997 to December 31, 1999.
The Trust, on behalf of the Fund, has entered into a recordkeeping and pricing
agreement with Investors Fiduciary Trust Company ("IFTC") who also serves as the
Fund's custodian and transfer agent. The recordkeeping and pricing agreement
provides for the monthly payment of a base fee 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 earned from directed
brokerage transactions.
DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common
ownership, provides shareholder accounting services to the Fund. DST Securities,
Inc., a wholly owned subsidiary of DST, is designated as an introductory broker
on certain portfolio transactions. The Fund receives 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, the Fund received
no brokerage credits.
Certain officers and/or directors of Berger and/or BBOI are also officers and
trustees of the Trust. Trustees who are not affiliated with Berger and BBOI
received trustees' fees totaling $402 from the Fund 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 Fund and are invested in various funds advised
by Berger until distribution in accordance with the Plan.
<PAGE> 15
NOTES TO
FINANCIAL
STATEMENTS
13 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
3 Investment Transactions
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) were $1,399,960 and $1,970,076, respectively, for the year ended
December 31, 1999.
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/
Tax Cost Appreciation Depreciation (Depreciation)
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 4,181,447 $ 2,127,650 $ (181,258) $ 1,946,392
- ----------------------------------------------------------------------------------
</TABLE>
FORWARD CONTRACTS
The Fund may only hold forward currency exchange contracts for the purpose of
hedging the 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 the
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 the 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 Fund may have elements of risk due to concentrated investments in specific
industries or foreign issuers located in a specific country. Such concentrations
may subject the Fund to additional 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 Fund which are derived from foreign
source income and foreign taxes paid by the Fund are to be treated, to the
extent allowable under the Code, as if received and paid by the shareholders of
the Fund.
Fund 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, the Fund 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 tax purposes. Net capital loss
carryovers used to offset realized capital gains in 1999 amounted to $124,472.
The Fund incurred and elected to defer post-October 31 currency losses amounting
to $12,564 to the year ended December 31, 2000.
During the year ended December 31, 1999, the Fund paid $14,764 of foreign taxes
on $100,888 of foreign source income. The Fund will make the foreign tax credit
election to pass through these taxes to the shareholders.
The Fund distributes net realized capital gains, if any, to its 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
year ended December 31, 1999, the following reclassifications were made:
<TABLE>
<CAPTION>
Undistributed Undistributed
Paid-in Net Investment Net Realized
Capital Income Gains
- --------------------------------------------------------------------------------
<S> <C> <C>
-- $ (20,261) $ 20,261
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 16
NOTES TO
FINANCIAL
STATEMENTS
BERGER FUNDS ANNUAL REPORT DECEMBER 31, 1999 14
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 the Fund 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.
<PAGE> 17
REPORT OF
INDEPENDENT
ACCOUNTANTS
15 ANNUAL REPORT DECEMBER 31, 1999 BERGER FUNDS
To the Board of Trustees and Shareholders of
Berger Institutional Products Trust
In our opinion, the accompanying statement 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/BIAM IPT - International
Fund (one of the portfolios constituting Berger Institutional Products Trust,
hereafter referred to as the "Trust") at December 31, 1999, the results of its
operations for the year then ended, the changes in its 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
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