<PAGE> 1
June 30, 2000
Berger Institutional
Products Trust
Semi-Annual Report
[BERGER FUNDS LOGO]
BERGER IPT-NEW GENERATION FUND
BERGER IPT-SMALL COMPANY GROWTH FUND
BERGER IPT-GROWTH FUND
BERGER IPT-INTERNATIONAL FUND
BERGER IPT-GROWTH AND INCOME FUND
<PAGE> 2
This report reflects the financial position of each Fund at June 30, 2000 and
the results of operations and changes in their net assets for the periods
indicated.
<PAGE> 3
3
Berger IPT Funds
TABLE OF CONTENTS
===============================================================================
<TABLE>
<S> <C>
BERGER IPT FUNDS
Berger IPT-New Generation Fund ...............................................4
Berger IPT-Small Company Growth Fund .........................................8
Berger IPT-Growth Fund ......................................................12
Berger IPT-International Fund ...............................................16
Berger IPT-Growth and Income Fund ...........................................22
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ........................................26
Statements of Operations ....................................................27
Statements of Changes in Net Assets .........................................28
FINANCIAL HIGHLIGHTS ........................................................31
NOTES TO FINANCIAL STATEMENTS ...............................................36
</TABLE>
This material must be preceded or accompanied by a prospectus. Berger
Distributors LLC ~ Member NASD (8/00)
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 4
4
BERGER IPT-NEW
GENERATION FUND
PORTFOLIO MANAGER COMMENTARY MARK S. SUNDERHUSE
===============================================================================
The Berger IPT-New Generation Fund commenced operations on May 1, 2000.
PERFORMANCE
Since May 1, 2000, the Berger IPT-New Generation Fund (the "Fund") has gained
2.50% compared with a negative return of -0.72% for its benchmark, the Standard
& Poor's (S&P) 500 Index.(1)
PERIOD IN REVIEW
During May and June, the Federal Reserve Board raised interest rates, several
Internet "dot-com" companies faced earnings fears and/or bankruptcy, and the
overall market was concerned about inflation and high market valuations.
Despite volatility during this time period, several holdings in the Fund's
portfolio performed well. These include Gemstar, OpenTV and Pegasus, all of
which are media and communication companies that provide services to support
the transmission of Internet services through video, cable or satellite TV. We
think commerce over the television set will be huge because Americans still
spend a great deal of time watching TV.
We continued to focus on wireless and wireline infrastructure companies such as
Juniper Networks, Sycamore and Redback. In addition we like "new age"
telecommunication providers such as Caprock, which provides voice, data and
Internet services to businesses, and InfoSpace, a provider of Internet services
via wireless and non-PC devices such as cell phones and pagers.
We are maintaining our exposure to healthcare stocks, particularly those in the
biotechnology industry. The fundamental outlook here remains bright. We trimmed
back our weighting in the energy sector and intend to continue to take profits
and redeploy them into other opportunities such as alternative types of power
generation.
Consumer stocks were mixed but generally on the downside. Radio stocks continue
to contract, despite continued strong advertising trends. The downward
performance of these companies was the result of rising interest rates and
concerns that "dot-com" advertising will tail off, even though this type of
advertising is a small portion of the total revenues of the radio companies.
LOOKING AHEAD
We believe the second half of the year will be just as tough to navigate as the
first half. But there are positive signs. Worldwide capital spending trends
look great, provided inflation can be held in check. We expect the Internet to
continue to have a strong hold on our economy. Business-to-business commerce
has a much better impact on corporate profits than business-to-consumer
commerce.
We feel that the upcoming elections will have very little effect on the market.
Both major parties have some type of plan to privatize Social Security, which
could lead to large cash flows into equities at some time in the future. We
continue to believe that the Fund is well-positioned to take advantage of
spending trends that will translate into price appreciation for quality,
well-managed companies. Accordingly, we will keep our focus on quality growth
names for the remainder of the year, turning a more cautious eye to companies
that have meaningful cash flows, asset creation and earnings per share (EPS)
growth.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.(1)
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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 5
5
Berger IPT Funds
PERFORMANCE OVERVIEW
===============================================================================
BERGER IPT-NEW GENERATION FUND
Comparison of Change in Value for Berger IPT-New Generation Fund vs. S&P 500
Index
[GRAPH]
<TABLE>
<CAPTION>
6/30/00
<S> <C>
Berger IPT-New Generation Fund $10,250
S&P 500 Index $ 9,928
</TABLE>
<TABLE>
<CAPTION>
Total Return as of June 30, 2000
<S> <C>
Life of the Fund (5/1/00) 2.50%
</TABLE>
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
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Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.83%)
Banks - West/Southwest (0.82%)
450 Silicon Valley Bancshares* $ 19,181
-------------------------------------------------------------------------------
Commercial Services - Advertising (0.69%)
220 Tmp Worldwide, Inc.* 16,238
-------------------------------------------------------------------------------
Computer - Local Networks (2.16%)
50 Brocade Communications Systems, Inc.* 9,174
410 Cisco Systems, Inc.* 26,060
140 Foundry Networks, Inc.* 15,470
-------------------------------------------------------------------------------
50,704
-------------------------------------------------------------------------------
Computer - Manufacturers (1.32%)
340 Sun Microsystems, Inc.* 30,918
-------------------------------------------------------------------------------
Computer - Memory Devices (3.33%)
530 EMC Corp.* 40,776
290 Silicon Storage Technology, Inc.* 25,610
130 Storagenetworks, Inc.* 11,732
-------------------------------------------------------------------------------
78,118
-------------------------------------------------------------------------------
<CAPTION>
<S> <C>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
COMMON STOCK (96.83%) - CONTINUED
Computer - Optical Recognition (0.39%)
240 Optimal Robotics Corp.* $ 9,210
-------------------------------------------------------------------------------
Computer - Services (1.64%)
470 FutureLink Corp.* 3,378
650 Internap Network Services Corp.* 26,985
440 MarchFirst, Inc.* 8,030
-------------------------------------------------------------------------------
38,393
-------------------------------------------------------------------------------
Computer - Software (0.41%)
530 Virage, Inc.* 9,573
-------------------------------------------------------------------------------
Computer Software - Desktop (1.70%)
320 Gemstar International Group Ltd.* 19,665
210 Macromedia, Inc.* 20,304
-------------------------------------------------------------------------------
39,969
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
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6
BERGER IPT-NEW
GENERATION FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
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Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.83%) - CONTINUED
Computer Software - Enterprise (4.94%)
450 Caminus Corp.* $ 11,025
130 i2 Technologies, Inc.* 13,554
290 Intertrust Technologies Corp.* 5,963
240 NDS Group PLC - Spon. ADR* 14,640
540 New Era of Networks, Inc.* 22,950
600 SeaChange International, Inc.* 17,325
270 VERITAS Software Corp.* 30,514
-------------------------------------------------------------------------------
115,971
-------------------------------------------------------------------------------
Computer Software - Network (1.28%)
210 ISS Group, Inc.* 20,734
620 Pilot Network Service, Inc. 9,222
-------------------------------------------------------------------------------
29,956
-------------------------------------------------------------------------------
Electrical - Military Systems (0.64%)
170 General Motors Corp. - Class H* 14,917
-------------------------------------------------------------------------------
Electrical - Scientific Instruments (1.04%)
370 PE Corp. - PE Biosystems Group* 24,373
-------------------------------------------------------------------------------
Electronic - Miscellaneous Components (1.98%)
370 Applied Science and Technology, Inc.* 9,573
420 RF Micro Devices, Inc.* 36,802
-------------------------------------------------------------------------------
46,375
-------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (0.95%)
280 Infineon Technologies A.G. - ADR* 22,190
-------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (4.56%)
210 Applied Micro Circuits Corp.* 20,737
40 Broadcom Corp.* 8,757
720 Conexant Systems, Inc.* 35,010
30 PMC-Sierra, Inc.* 5,330
130 SDL Corp.* 37,074
-------------------------------------------------------------------------------
106,908
-------------------------------------------------------------------------------
Electronic Products - Miscellaneous (1.86%)
620 American Superconductor Corp.* 29,915
320 Symyx Technologies Inc.* 13,635
-------------------------------------------------------------------------------
43,550
-------------------------------------------------------------------------------
Finance - Investment Bankers (0.74%)
580 Knight Trading Group, Inc.* 17,291
-------------------------------------------------------------------------------
Financial Services - Miscellaneous (0.64%)
290 Checkfree Holdings Corp.* 14,953
-------------------------------------------------------------------------------
Internet - E*Commerce (0.95%)
750 Neoforma.com Inc.* 5,273
2,010 NextCard, Inc.* 17,085
-------------------------------------------------------------------------------
22,358
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.83%) - CONTINUED
Internet - ISP/Content (5.30%)
150 Akamai Technologies, Inc.* $ 17,810
660 InfoSpace Inc.* 36,465
390 KPNQwest N.V. - N.Y. Reg. 15,453
600 National Information Consortium, Inc.* 6,825
500 RealNetworks,Inc.* 25,281
1,460 VIA NET.WORKS, Inc.* 22,538
-------------------------------------------------------------------------------
124,372
-------------------------------------------------------------------------------
Internet - Network Security/Solutions (6.23%)
50 Inktomi Corp.* 5,912
330 Juniper Networks, Inc.* 48,035
340 Redback Networks, Inc.* 60,520
180 VeriSign, Inc.* 31,770
-------------------------------------------------------------------------------
146,237
-------------------------------------------------------------------------------
Internet - Software (7.98%)
110 Ariba, Inc.* 10,785
490 Click Commerce, Inc.* 11,086
390 CMGI Inc.* 17,866
380 FreeMarkets, Inc.* 18,026
1,440 Healtheon/WebMD Corp.* 21,330
1,510 Interactive Objects, Inc.* 5,190
360 Liberate Technologies, Inc.* 10,552
700 Net2Phone, Inc.* 24,981
240 OpenTV Corp. 10,770
370 Phone.com, Inc.* 24,096
200 Quest Software, Inc.* 11,075
410 Vignette Corp.* 21,326
-------------------------------------------------------------------------------
187,083
-------------------------------------------------------------------------------
Media - Cable TV (3.44%)
1,380 AT&T Corp. - Liberty Media Group* 33,465
220 Comcast Corp. - Class A 8,552
140 Comcast Corp. - Special Class A 5,670
750 EchoStar Communications Corp.* 24,832
960 TCI Satellite Entertainment, Inc.* 8,340
-------------------------------------------------------------------------------
80,859
-------------------------------------------------------------------------------
Media - Radio/TV (6.32%)
250 AMFM Inc.* 17,250
360 Clear Channel Communications, Inc.* 27,000
350 Hispanic Broadcasting Corp.* 11,593
675 Pegasus Communications Corp.* 33,117
890 Spanish Broadcasting System, Inc.* 18,300
410 TV Guide,Inc.* 14,042
394 Viacom Inc. - Class B 26,896
-------------------------------------------------------------------------------
148,198
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
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7
Berger IPT Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.83%) - CONTINUED
Medical - Biomed/Genetics (6.57%)
140 Cephalon, Inc.* $ 8,382
510 Diversa Corp.* 16,893
180 Genentech, Inc.* 30,960
410 Invitrogen Corp.* 30,833
630 Lexicon Genetics Inc.* 21,656
430 Medimmune, Inc.* 31,820
300 Sequenom Inc.* 13,612
-------------------------------------------------------------------------------
154,156
-------------------------------------------------------------------------------
Medical - Ethical Drugs (1.17%)
450 Pharmacyclics, Inc.* 27,450
-------------------------------------------------------------------------------
Medical - Instruments (1.96%)
280 Aclara Biosciences Inc.* 14,262
1,870 Eclipse Surgical Tech, Inc.* 8,181
1,000 Ventana Medical Systems, Inc.* 23,500
-------------------------------------------------------------------------------
45,943
-------------------------------------------------------------------------------
Medical - Medical/Dental Services (0.99%)
670 Accredo Health, Inc.* 23,156
-------------------------------------------------------------------------------
Medical - Products (0.72%)
370 Caliper Technologies Corp.* 17,020
-------------------------------------------------------------------------------
Medical - Wholesale Drug/Sundries (0.74%)
750 Allscripts, Inc.* 17,250
-------------------------------------------------------------------------------
Metal Products & Fabrication (0.65%)
520 Maverick Tube Corp.* 15,145
-------------------------------------------------------------------------------
Oil & Gas - Drilling (4.39%)
690 Global Marine Inc.* 19,449
4,010 Grey Wolf, Inc.* 20,050
550 Marine Drilling Companies, Inc.* 15,400
480 Precision Drilling Corp.* 18,540
1,250 R&B Falcon Corp.* 29,453
-------------------------------------------------------------------------------
102,892
-------------------------------------------------------------------------------
Oil & Gas - Machinery/Equipment (1.05%)
750 National-Oilwell, Inc.* 24,656
-------------------------------------------------------------------------------
Oil & Gas Production/Pipeline (0.93%)
340 Enron Corp. 21,930
-------------------------------------------------------------------------------
Retail - Consumer Electric (0.52%)
400 Tweeter Home Entertainment Group, Inc.* 12,150
-------------------------------------------------------------------------------
Telecommunications - Cellular (0.94%)
190 VoiceStream Wireless Corp.* 22,096
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares/Par Value Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.83%) - CONTINUED
Telecommunications - Equipment (9.59%)
300 Accelerated Networks,Inc.* $ 12,656
260 Celeritek, Inc.* 10,611
160 Ciena Corp.* 26,670
610 Crown Castle International Corp.* 22,265
380 JDS Uniphase Corp.* 45,552
30 New Focus, Inc.* 2,463
250 Next Level Communications, Inc.* 21,437
40 ONI Systems Corp.* 4,688
50 Sonus Networks, Inc.* 7,893
360 Sycamore Networks, Inc.* 39,735
270 Terayon Communication Systems, Inc.* 17,343
230 Virata Corp.* 13,713
-------------------------------------------------------------------------------
225,026
-------------------------------------------------------------------------------
Telecommunications - Services (4.83%)
700 Advanced Radio Telecom Corp.* 10,237
1,130 CapRock Communications Corp.* 22,035
450 FirstCom Corp.* 6,778
660 I3 Mobile, Inc. 12,127
300 Nextlink Communications, Inc.* 11,381
560 PT Pasifik Satelit Nusantara - ADR* 5,320
560 Qwest Communications
International, Inc.* 27,825
400 Teligent, Inc.* 9,450
240 Winstar Communications, Inc.* 8,130
-------------------------------------------------------------------------------
113,283
-------------------------------------------------------------------------------
Utility - Electric Power (0.47%)
340 Constellation Energy Group 11,104
-------------------------------------------------------------------------------
Total Common Stock
(Cost $2,127,134) 2,271,152
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.35%)
$102,000 State Street Repurchase Agreement,
6.30% dated June 30, 2000, to be
repurchased at $102,054 on
July 3, 2000, collateralized by
FHLB Agency Note, 7.62% -
January 12, 2010, with a value of
$106,050 102,000
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $102,000) 102,000
-------------------------------------------------------------------------------
Total Investments (Cost $2,229,134) (101.18%) 2,373,152
Total Other Assets, Less Liabilities (-1.18%) (27,675)
-------------------------------------------------------------------------------
Net Assets (100.00%) $2,345,477
-------------------------------------------------------------------------------
</TABLE>
*Non-income producing security.
ADR - American Depositary Receipt.
FHLB - Federal Home Loan Bank.
PLC - Public Limited Company.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 8
8
BERGER IPT-
SMALL COMPANY
GROWTH FUND
PORTFOLIO MANAGER COMMENTARY JAY W. TRACEY III
MARK S. SUNDERHUSE
===============================================================================
As of June 5, 2000, Berger Funds announced the appointment of Jay W. Tracey III
and Mark Sunderhuse as interim co-managers of the Berger IPT-Small Company
Growth Fund. We are pleased to have them at the helm of the Fund.
PERFORMANCE
Against the backdrop of a highly volatile market, the Berger IPT-Small Company
Growth Fund (the "Fund") significantly outpaced the performance of its
benchmarks for the six-month period ended June 30, 2000. The Fund gained 18.97%
compared with 3.04% for the Russell 2000 Index(1) and 1.23% for the Russell
2000 Growth Index(2) over this period.
PERIOD IN REVIEW
The year began on a positive note as the strong fourth quarter 1999 move in
technology stocks and small-cap stocks continued. On March 10, however,
profit-taking and renewed fears of rising interest rates set in, dragging down
prices and marking the beginning of a correction in these stocks that continued
well into the second quarter. Investors fled to large-cap stocks, which they
perceive to be less risky in volatile markets, and to stocks in lower-valuation
sector groups such as financials, consumer and energy.
Ironically, the greatest positive contributor to the Fund's strong performance
this reporting period was its exposure to the sector that was battered the
worst by market force-technology. In the second quarter alone, the technology
sector within the Russell 2000 Index declined nearly 15% and the
technology-heavy Nasdaq Composite Index declined more than 13%. In contrast,
the Fund's technology positions, as a group, were about even for the quarter.
Gains in holdings such as Forrester Research, Mercury Interactive, Sapient and
Macromedia were strong enough to offset declines in other technology holdings.
We see this performance as an example that stock selection can make a
significant difference in a portfolio's performance, especially in a universe
of small-cap, emerging growth stocks in which the stock market tends to be less
efficient.
Elsewhere in the portfolio, stocks in the healthcare sector turned in positive
performances. The Fund's biotechnology positions, in particular, staged good
rebounds in the second quarter following a sharp first-quarter correction. The
fundamental outlook here remains bright.
Consumer stocks were mixed but generally down. Radio stock prices continued to
contract, despite strong advertising trends, because of rising interest rates
and concerns that "dot-com" advertising will tail off, even though this type of
advertising makes up only a small portion of radio companies' total revenue.
LOOKING AHEAD
Going forward, our outlook for the technology sector in general remains
positive. Revenue and earnings growth rates in this sector remain very high,
attributable to the continued rapid pace of the Internet build-out and to
aggressive implementation of e-commerce initiatives by corporations worldwide.
High stock valuations will remain an issue, however, as investors seek to find
a comfortable timeframe to evaluate a company's future earnings potential.
Before the correction, investors seemed to be willing to pay for earnings three
to four years or more into the future; now investors appear to be focusing only
one to two years out, on average. The good news about this correction is that
much of the speculative froth is gone and that stocks of leading,
well-positioned technology companies have once again begun to perform better.
We expect volatility to remain at relatively high levels for the foreseeable
future, as uncertainties remain about the growth rate of the economy, the
extent of any future interest rate increases and, later this year, the outcome
of upcoming elections. We will continue to focus on well-managed, leading
small-cap growth companies that address open-ended growth opportunities with
well-conceived business plans. In addition, we will look for companies that
possess the competitive advantage to sustain superior revenue and earnings
growth rates over the long term.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1)The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of the common stocks of 2,000 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.
(2)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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 9
9
Berger IPT Funds
PERFORMANCE OVERVIEW
===============================================================================
BERGER IPT-SMALL COMPANY GROWTH FUND
Comparison of Change in Value for Berger IPT-Small Company Growth Fund vs.
Russell 2000 Index
[GRAPH]
<TABLE>
<CAPTION>
6/30/00
<S> <C>
Berger IPT-Small Company Growth Fund $27,982
Russell 2000 Index $15,675
</TABLE>
Average Annual Total Return as of June 30, 2000
<TABLE>
<S> <C>
One Year 96.83%
Life of the Fund (5/1/96) 27.99%
</TABLE>
Past performance is no guarantee of future results. Fund performance shown
reflects the unusually favorable market conditions that existed in 1999 which
likely are not sustainable as market conditions change. Investment returns and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
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Shares Value
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<S> <C>
COMMON STOCK (90.72%)
Banks - West/Southwest (0.73%)
14,380 Silicon Valley Bancshares* $ 612,947
-------------------------------------------------------------------------------
Building - Construction Products/Miscellaneous (0.52%)
23,620 Advanced Lighting Technologies, Inc.* 436,970
-------------------------------------------------------------------------------
Building - Heavy Construction (0.91%)
16,615 Dycom Industries, Inc.* 764,290
-------------------------------------------------------------------------------
Commercial Services - Miscellaneous (6.69%)
15,180 Diamond Technology Partners, Inc.* 1,335,840
32,680 Forrester Research, Inc.* 2,379,512
31,660 The Corporate Executive Board Co.* 1,895,642
-------------------------------------------------------------------------------
5,610,994
-------------------------------------------------------------------------------
Commercial Services - Schools (0.83%)
26,200 Devry, Inc.* 692,662
-------------------------------------------------------------------------------
Computer - Optical Recognition (0.98%)
45,890 Robotic Vision Systems, Inc.* 826,020
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (90.72%) - CONTINUED
Computer - Services (1.38%)
17,900 Internap Network Services Corp.* $ 743,129
22,782 MarchFirst, Inc.* 415,771
-------------------------------------------------------------------------------
1,158,900
-------------------------------------------------------------------------------
Computer Software - Desktop (1.43%)
12,380 Macromedia, Inc.* 1,196,991
-------------------------------------------------------------------------------
Computer Software - Educational/Entertainment (1.25%)
21,890 Smartforce PLC - Spon. ADR* 1,050,720
-------------------------------------------------------------------------------
Computer Software - Enterprise (3.56%)
13,550 Mercury Interactive Corp.* 1,310,962
56,270 ONYX Software Corp.* 1,670,515
-------------------------------------------------------------------------------
2,981,477
-------------------------------------------------------------------------------
Electrical - Equipment (0.48%)
19,490 Manufacturers Services Ltd.* 400,763
-------------------------------------------------------------------------------
Electrical - Scientific Instruments (1.93%)
15,030 Newport Corp.* 1,613,846
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 10
10
BERGER IPT-
SMALL COMPANY
GROWTH FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (90.72%) - CONTINUED
Electronic - Laser System Component (1.64%)
28,720 Cymer, Inc.* $1,371,380
-------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (7.03%)
24,980 DuPont Photomasks, Inc.* 1,711,130
29,100 Mattson Technology, Inc.* 945,750
4,500 Numerical Technologies, Inc.* 218,812
25,890 PRI Automation, Inc.* 1,692,963
18,030 Veeco Instruments Inc.* 1,320,697
-------------------------------------------------------------------------------
5,889,352
-------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (3.26%)
8,830 Applied Micro Circuits Corp.* 871,962
6,980 Cree Research Inc.* 931,830
22,320 PLX Technology, Inc.* 926,280
-------------------------------------------------------------------------------
2,730,072
-------------------------------------------------------------------------------
Electronic Products - Miscellaneous (4.59%)
24,100 American Superconductor Corp.* 1,162,825
11,400 Proxim, Inc.* 1,128,243
63,380 Universal Electronics Inc.* 1,556,771
-------------------------------------------------------------------------------
3,847,839
-------------------------------------------------------------------------------
Financial Services - Miscellaneous (0.51%)
10,850 Investors Financial Service Corp. 430,609
-------------------------------------------------------------------------------
Insurance - Brokers (0.66%)
18,380 Pre-Paid Legal Services, Inc.* 549,126
-------------------------------------------------------------------------------
Internet - E*Commerce (0.35%)
13,990 Ebenx Inc.* 296,413
-------------------------------------------------------------------------------
Internet - Network Security/Solutions (2.07%)
4,730 Redback Networks Inc.* 841,940
8,390 Sapient Corp.* 897,205
-------------------------------------------------------------------------------
1,739,145
-------------------------------------------------------------------------------
Internet - Software (4.47%)
17,950 Agile Software Corp.* 1,268,840
9,040 Ariba, Inc.* 886,343
11,540 CMGI Inc.* 528,676
23,650 Primus Knowledge Solutions* 1,064,250
-------------------------------------------------------------------------------
3,748,109
-------------------------------------------------------------------------------
Leisure - Products (0.75%)
25,220 Meade Instruments Corp.* 633,652
-------------------------------------------------------------------------------
Media - Radio/TV (5.54%)
62,460 Cox Radio, Inc.* 1,748,880
30,620 Emmis Communications Corp.* 1,266,902
17,380 Hispanic Broadcasting Corp.* 575,712
19,330 SBS Broadcasting SA* 1,053,485
-------------------------------------------------------------------------------
4,644,979
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (90.72%) - CONTINUED
Medical - Biomed/Genetics (11.09%)
30,640 BioCryst Pharmaceuticals, Inc.* $ 878,985
38,250 Cephalon, Inc.* 2,290,218
67,810 Creative Biomolecules, Inc.* 949,340
6,780 IDEC Pharmaceuticals Corp.* 795,378
17,110 Invitrogen Corp.* 1,286,725
28,220 LightPath Technologies, Inc. - Class A* 1,123,508
16,300 Medimmune, Inc.* 1,206,200
25,740 Regeneron Pharmaceuticals, Inc.* 767,373
-------------------------------------------------------------------------------
9,297,727
-------------------------------------------------------------------------------
Medical - Ethical Drugs (3.02%)
50,950 PathoGenesis Corp.* 1,324,700
19,730 Pharmacyclics, Inc.* 1,203,530
-------------------------------------------------------------------------------
2,528,230
-------------------------------------------------------------------------------
Medical - Instruments (3.30%)
3,260 Aclara Biosciences Inc.* 166,056
39,260 IDEXX Laboratories, Inc.* 898,072
42,830 Ventana Medical Systems, Inc.* 1,006,505
15,450 Visible Genetics Inc.* 697,181
-------------------------------------------------------------------------------
2,767,814
-------------------------------------------------------------------------------
Medical - Medical/Dental Services (1.13%)
27,395 Accredo Health, Inc.* 946,839
-------------------------------------------------------------------------------
Medical - Wholesale Drug/Sundries (2.53%)
34,660 Allscripts, Inc.* 797,180
17,760 Priority Healthcare Corp.* 1,319,790
-------------------------------------------------------------------------------
2,116,970
-------------------------------------------------------------------------------
Metal Products & Fabrication (0.80%)
22,970 Maverick Tube Corp.* 669,001
-------------------------------------------------------------------------------
Oil & Gas - Drilling (4.86%)
42,210 Marine Drilling Companies, Inc.* 1,181,880
23,980 Patterson Energy, Inc.* 683,430
21,590 Precision Drilling Corp.* 833,913
55,570 Pride International Inc.* 1,375,357
-------------------------------------------------------------------------------
4,074,580
-------------------------------------------------------------------------------
Oil & Gas - Field Services (1.62%)
52,280 Veritas DGC, Inc.* 1,359,280
-------------------------------------------------------------------------------
Oil & Gas - Machinery/Equipment (1.49%)
37,900 National-Oilwell, Inc.* 1,245,962
-------------------------------------------------------------------------------
Retail - Consumer Electronics (0.50%)
13,740 Tweeter Home Entertainment
Group, Inc.* 417,352
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 11
11
Berger IPT Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares/Par Value Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (90.72%) - CONTINUED
Retail - Miscellaneous Diversified (1.08%)
17,960 Michaels Stores, Inc.* $ 822,792
18,280 The Right Start, Inc.* 83,402
-------------------------------------------------------------------------------
906,194
-------------------------------------------------------------------------------
Retail - Super/Mini-Markets (1.45%)
29,350 Whole Foods Market, Inc.* 1,212,521
-------------------------------------------------------------------------------
Telecommunications - Equipment (3.34%)
23,780 Powerwave Technologies, Inc.* 1,046,320
13,260 Tollgrade Communications Inc.* 1,756,950
-------------------------------------------------------------------------------
2,803,270
-------------------------------------------------------------------------------
Telecommunications - Services (2.95%)
24,860 Advanced Radio Telecom Corp.* 363,577
68,950 Metrocall Inc.* 620,550
25,920 Viatel, Inc.* 740,340
56,210 WebLink Wireless Inc.* 744,782
-------------------------------------------------------------------------------
2,469,249
-------------------------------------------------------------------------------
Total Common Stock
(Cost $61,282,029) 76,042,245
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.43%)
$3,711,000 State Street Repurchase Agreement,
6.30% dated June 30, 2000, to be
repurchased at $3,712,948 on
July 3, 2000, collateralized by
FNMA Agency Note, 6.195% -
December 27, 2000, with a value
of $3,785,513 3,711,000
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $3,711,000) 3,711,000
-------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (11.92%)
$10,000,000 FHLMC Discount Note -
6.52%, 7/3/2000 9,996,377
-------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(Cost $9,996,377) 9,996,377
-------------------------------------------------------------------------------
Total Investments (Cost $74,989,406) (107.07%) 89,749,622
Total Other Assets, Less Liabilities (-7.07%) (5,929,033)
-------------------------------------------------------------------------------
Net Assets (100.00%) $ 83,820,589
-------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
FHLMC - Federal Home Loan Mortgage Corp.
FNMA - Federal National Mortgage Association.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 12
12
BERGER IPT-
GROWTH FUND
PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO
===============================================================================
Effective August 7, 2000, Berger Funds appointed Jay W. Tracey III portfolio
manager of the Berger IPT-Growth Fund. We are pleased to have Mr. Tracey as
portfolio manager of the Fund.
PERFORMANCE
The stock market was roiled by high volatility during the six months ended June
30, 2000. After a precipitous sell-off in growth stocks that ushered in the new
year, the market rallied towards the end of January and through February, with
technology stocks leading the way. A large sell-off, this time in Nasdaq
stocks, began after the market's March 10 peak and continued through May. Much
of this correction was centered on companies that investors perceived as having
high stock valuations, particularly those in the technology sector. The period
ended with a selective rally in June by solid companies that have strong
fundamentals.
Despite this volatility, the Berger IPT-Growth Fund (the "Fund") was able to
turn in a positive gain of 8.01% for the six-month period and outperform its
benchmark, the Standard & Poor's (S&P) 500 Index,(1) which had a negative
return of -0.43% over the same period.
PERIOD IN REVIEW
Individual stock selection was the key to our outperformance. Many of our
strongest performers were in the sector that was battered the worst by market
forces in the second quarter -- technology. We had strong gains in technology
holdings such as SDL and Siebel Systems. Siebel Systems, a leader in software
development, has revenue and earnings growth rates that outpace its peers.
Corning and ASM Lithography were also solid performers for the Fund. Corning's
growth continues to be driven by high demand for fiber-optic cable, and ASM
Lithography is benefiting from a robust semiconductor cycle that is creating
demand for its equipment.
Our holdings in the healthcare sector also continued to perform well,
especially large pharmaceutical companies such as American Home Products and
biotechnology companies such as Amgen, Genentech and Medimmune.
Energy stocks, particularly those in the oil and gas drilling and equipment
industries, have been solid performers throughout the past six months,
reflecting the market's anticipation of strong earnings outlooks for these
companies. We continue to see favorable supply/demand fundamentals in the
energy sector, and therefore we are maintaining our weighting in this sector.
On the downside, the Fund's poor performers included companies such as
EchoStar, Qualcomm and Clear Channel Communications. Clear Channel was the
victim of profit-taking and short-selling pressure after its recent acquisition
of SFX. We are optimistic about this acquisition, however, and expect it to add
to Clear Channel's growth rate over the next 24-36 months. All of these
companies were the victims of their own success, seeing their stock prices
decline significantly during the most recent market correction.
LOOKING AHEAD
Going forward, our outlook for the technology sector in general remains
positive. Revenue and earnings growth rates in this sector remain very high,
attributable to the continued rapid pace of the Internet build-out and to
aggressive implementation of e-commerce initiatives by corporations worldwide.
High stock valuations will remain an issue, however, as investors seek to find
a comfortable timeframe to evaluate a company's future earnings potential.
Before the correction, investors seemed to be willing to pay for earnings three
to four years or more into the future; now investors appear to be focusing only
one to two years out, on average.
Despite the downdraft the Fund has experienced since mid-March, we will
continue to focus on companies in technology, healthcare, consumer cyclicals
and selected financial services sectors. As always, we will seek companies that
we feel have strong long-term fundamentals as well as above-average revenue and
earnings growth potential.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1)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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 13
13
Berger IPT Funds
PERFORMANCE OVERVIEW
===============================================================================
Berger IPT-Growth Fund
Comparison of Change in Value for Berger IPT-Growth Fund vs. S&P 500 Index
[GRAPH]
<TABLE>
<CAPTION>
6/30/00
<S> <C>
Berger IPT-Growth Fund $22,141
S&P 500 Index $23,747
</TABLE>
Average Annual Total Return as of June 30, 2000
<TABLE>
<S> <C>
One Year 46.22%
Life of the Fund (5/1/96) 21.00%
</TABLE>
Past performance is no guarantee of future results. Fund performance shown
reflects the unusually favorable market conditions that existed in 1999 which
likely are not sustainable as market conditions change. Investment returns and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (94.60%)
Computer - Local Networks (3.70%)
6,816 Cisco Systems, Inc.* $ 433,242
-------------------------------------------------------------------------------
Computer - Manufacturers (1.45%)
1,866 Sun Microsystems, Inc.* 169,689
-------------------------------------------------------------------------------
Computer - Memory Devices (4.13%)
3,506 EMC Corp.* 269,742
2,520 Network Appliance, Inc.* 202,860
120 Storagenetworks, Inc.* 10,830
-------------------------------------------------------------------------------
483,432
-------------------------------------------------------------------------------
Computer Software - Desktop (3.71%)
2,050 Gemstar International Group Ltd.* 125,978
3,843 Microsoft Corp.* 307,440
-------------------------------------------------------------------------------
433,418
-------------------------------------------------------------------------------
Computer Software - Educational/Entertainment (0.79%)
3,440 Handspring, Inc.* 92,880
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (94.60%) - CONTINUED
Computer Software - Enterprise (4.23%)
447 ORACLE Corp.* $ 161,499
1,210 Siebel Systems, Inc.* 197,910
1,196 VERITAS Software Corp.* 135,166
-------------------------------------------------------------------------------
494,575
-------------------------------------------------------------------------------
Computer Software - Network (1.77%)
3,030 Nortel Networks Corp. 206,797
-------------------------------------------------------------------------------
Electrical - Scientific Instruments (0.90%)
1,600 PE Corp. - PE Biosystems Group 105,400
-------------------------------------------------------------------------------
Electronic - Military Systems (0.50%)
670 General Motors Corp. - Class H* 58,792
-------------------------------------------------------------------------------
Electronic - Miscellaneous Components (1.10%)
1,600 RF Micro Devices, Inc.* 128,984
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 14
14
BERGER IPT-
GROWTH FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (94.60%) - CONTINUED
Electronic - Semiconductor Equipment (6.27%)
2,946 Applied Materials, Inc.* $ 266,981
2,221 ASM Lithography Holding NV* 98,001
4,017 STMicroelectronics NV* 257,841
1,498 Teradyne, Inc.* 110,103
-------------------------------------------------------------------------------
732,926
-------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (6.22%)
2,082 Applied Micro Circuits Corp.* 205,597
1,240 Conexant Systems, Inc.* 60,295
1,617 Intel Corp. 216,172
862 SDL, Inc.* 245,831
-------------------------------------------------------------------------------
727,895
-------------------------------------------------------------------------------
Finance - Investment Bankers (1.48%)
5,140 Schwab (Charles) Corp. 172,815
-------------------------------------------------------------------------------
Household - Audio/Video (2.21%)
2,740 Sony Corp. - Spon. ADR 258,416
-------------------------------------------------------------------------------
Internet - ISP/Content (3.78%)
3,480 America Online, Inc.* 183,570
1,130 InfoSpace Inc.* 62,432
1,321 Internet Initiative Japan Inc.* 78,269
948 Yahoo!, Inc.* 117,433
-------------------------------------------------------------------------------
441,704
-------------------------------------------------------------------------------
Internet - Network Security/Solutions (6.28%)
1,212 Juniper Networks, Inc.* 176,421
1,020 Redback Networks Inc.* 181,560
870 Sapient Corp. 93,035
1,610 VeriSign, Inc.* 284,165
-------------------------------------------------------------------------------
735,181
-------------------------------------------------------------------------------
Internet - Software (1.14%)
790 Agile Software Corp.* 55,843
1,480 Vignette Corp.* 76,983
-------------------------------------------------------------------------------
132,826
-------------------------------------------------------------------------------
Leisure - Products (1.28%)
2,572 The Seagram Co. Ltd. 149,176
-------------------------------------------------------------------------------
Media - Cable TV (4.33%)
7,074 AT&T Corp. - Liberty Media Group* 171,544
5,042 EchoStar Communications Corp. 166,937
2,210 Time Warner, Inc. 167,960
-------------------------------------------------------------------------------
506,441
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (94.60%) - CONTINUED
Media - Radio/TV (2.56%)
2,560 Clear Channel Communications, Inc.* $ 192,000
3,260 Hispanic Broadcasting Corp.* 107,987
-------------------------------------------------------------------------------
299,987
-------------------------------------------------------------------------------
Medical - Biomed/Genetics (6.85%)
2,820 Amgen, Inc.* 198,105
2,795 Genentech, Inc.* 480,740
1,650 Medimmune, Inc.* 122,100
-------------------------------------------------------------------------------
800,945
-------------------------------------------------------------------------------
Medical - Ethical Drugs (2.31%)
4,592 American Home Products Corp. 269,780
-------------------------------------------------------------------------------
Medical - Products (0.92%)
2,186 Guidant Corp.* 108,207
-------------------------------------------------------------------------------
Oil & Gas - Drilling (4.74%)
6,336 ENSCO International, Inc. 226,908
5,777 Nabors Industries Inc.* 240,106
1,643 Transocean Sedco Forex, Inc. 87,797
-------------------------------------------------------------------------------
554,811
-------------------------------------------------------------------------------
Oil & Gas - Field Services (2.11%)
2,634 Halliburton Co. 124,291
1,638 Schlumberger Ltd. 122,235
-------------------------------------------------------------------------------
246,526
-------------------------------------------------------------------------------
Oil & Gas - Production/Pipeline (1.05%)
1,901 Enron Corp. 122,614
-------------------------------------------------------------------------------
Retail - Apparel/Shoe (0.44%)
2,592 Intimate Brands, Inc. 51,192
-------------------------------------------------------------------------------
Retail - Major Discount Chains (0.87%)
3,102 Costco Wholesale Corp.* 102,366
-------------------------------------------------------------------------------
Retail/Wholesale - Computers (1.22%)
3,006 Tandy Corp. 142,430
-------------------------------------------------------------------------------
Telecommunications - Cellular (1.39%)
1,402 VoiceStream Wireless Corp.* 163,048
-------------------------------------------------------------------------------
Telecommunications - Equipment (9.57%)
1,460 Corning Inc. 394,017
1,630 JDS Uniphase Corp.* 195,396
320 New Focus, Inc.* 26,280
6,740 Nokia Corp. - Spon. ADR 336,578
1,517 Sycamore Networks, Inc.* 167,438
-------------------------------------------------------------------------------
1,119,709
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 15
15
Berger IPT Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares/Par Value Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (94.60%) - CONTINUED
Telecommunications - Services (5.30%)
660 COLT Telecom Group PLC* $ 89,512
8 NTT DoCoMo, Inc.* 216,267
4,999 Qwest Communications
International, Inc.* 248,387
1,443 Sonera Corp. - Spon. ADR 66,378
-------------------------------------------------------------------------------
620,544
-------------------------------------------------------------------------------
Total Common Stock
(Cost $8,754,590) 11,066,748
-------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.43%)
$518,000 State Street Repurchase Agreement,
6.30% dated June 30, 2000, to be
repurchased at $518,272 on July 3,
2000, collateralized by FNMA Agency
Note, 6.40% - December 21, 2001
with a value of $532,325 518,000
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $518,000) 518,000
-------------------------------------------------------------------------------
Total Investments (Cost $9,272,590) (99.03%) 11,584,748
Total Other Assets, Less Liabilities (0.97%) 113,115
-------------------------------------------------------------------------------
Net Assets (100.00%) $ 11,697,863
-------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
FNMA - Federal National Mortgage Association.
PLC - Public Limited Company.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 16
16
BERGER IPT-
INTERNATIONAL FUND
PORTFOLIO MANAGER COMMENTARY BANK OF IRELAND ASSET
MANAGEMENT (U.S.) LTD.
===============================================================================
PERFORMANCE
There was significant divergence in the performance of developed international
equity markets during the first six months of the year 2000. During the first
quarter, half of the markets in the 22 countries that make up the MSCI World
Index registered gains and half registered losses (as measured in U.S.
dollars). This divergence was even more pronounced during the second quarter,
as just nine of the 22 countries posted positive performances. During this
volatile period, the Berger IPT-International Fund (the "Fund") lost 2.66%
compared with the 3.95% loss registered by its index, the MSCI EAFE Index.(1)
PERIOD IN REVIEW
Divergence also aptly describes the performance of the portfolio this reporting
period. During the first quarter, the most significant positive contribution to
performance came from stocks in the Growth in Telecommunications theme,
including Vodafone AirTouch. Yet, in the second quarter, the portfolio's
telecommunication stocks were the biggest contributors to negative performance,
reversing some of the gains achieved early in the year. The portfolio's largest
holding, Vodafone AirTouch, saw its stock price decline in the second quarter,
along with those of other mobile phone operators, as investors worried about
the cost of acquiring licenses and building new infrastructure. The price of
NTT DoCoMo retreated, primarily as a result of profit-taking following
significant appreciation over the last year. Murata Manufacturing also was hit
by profit-taking as well as by investor concern that capacity increases within
the industry could depress prices. Although we anticipate continued strong
demand for Murata's products going forward, we have significantly reduced our
holdings in the company. The price of Rohm Co., the Japanese maker of
custom-designed chips, also declined, despite the company's 28% increase in net
income, which beat market forecasts.
Another example of divergence: Financial stocks in the portfolio were
underperformers during the first quarter and among the strongest performers the
following quarter. Second-quarter standouts included ING and AXA. ING has begun
to increase its position in the life insurance business and is reducing surplus
capital through acquisitions. During the second quarter, ING acquired
U.S.-based Reliastar in a move seen as the first step toward an increased
presence in the U.S. market. AXA announced that revenue for the first three
months of the year rose by 33% compared with the same period last year.
Pharmaceutical stocks in the Healthcare Needs theme turned in solid
performances the past three months. Notable performers were Novartis,
AstraZeneca and Aventis. Aventis' earnings growth accelerated because of sales
increases in a number of its high-profit drugs, including the allergy medicine
Allegra.
LOOKING FORWARD
Rising interest rates across the world, excluding Japan, are putting additional
pressures on already stretched valuations in many stocks. The decline in share
prices was largely concentrated in technology stocks, which are or have been at
extremely high valuations relative to their earnings, if indeed they have
earnings at all. This environment has led to a return--in the short term at
least--to a value orientation in investment decisions as investors look to the
fundamentals of companies.
Nevertheless, across the globe, technology stocks were showing signs of
recovery at the end of this reporting period, and the immediate crisis of
confidence appears to be over. There is now a greater degree of reality in
investor perceptions about the technology, media and telecom (TMT) sectors. A
series of profit warnings from high-profile technology companies and some
aborted Initial Public Offerings (IPOs) have emphasized the fact that not
everybody will be a winner in the new economy.
Although indices have broadened out somewhat since the beginning of the year,
the two-tier market is still evident, particularly in the UK, where a number of
quality companies are trading at low multiples relative to their growth rates.
Following very strong performance in many of our stocks over the past 12
months, particularly in the TMT sectors, we have taken profits and switched
funds into lower-valued, more attractive investments.
We continue to believe that a stable or rising interest-rate background is
likely to challenge overstretched stock valuations in the coming months,
particularly for companies whose earnings are uncertain or are some distance
into the future. We believe that the performance of markets will continue to
broaden from TMT stocks into other sectors that have been largely ignored in
the momentum-driven markets of the last two years. We will look to take
advantage of opportunities to position the portfolio to benefit from this
market broadening.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1)The Morgan Stanley Capital International EAFE Index represents major overseas
stock markets. It is an unmanaged index. One cannot invest directly in an
index.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 17
17
Berger IPT Funds
PERFORMANCE OVERVIEW
===============================================================================
BERGER IPT-INTERNATIONAL FUND
Comparison of Change in Value for Berger IPT-International Fund vs. MSCI EAFE
Index
[Graph]
<TABLE>
<CAPTION>
6/30/00
<S> <C>
Berger IPT-International Fund $14,523
MSCI EAFE Index $15,160
</TABLE>
Average Annual Total Return as of June 30, 2000
<TABLE>
<CAPTION>
<S> <C>
One Year 20.24%
Life of the Fund (5/1/97) 12.49%
</TABLE>
Past performance is no guarantee of future results. Investment returns and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost. Investments in the Fund are not insured by
the Federal Deposit Insurance Corporation, are not deposits and are not
obligations of, or endorsed or guaranteed, in any way by, any bank.
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------------------------------------
Country/Shares Company Industry Value
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (97.48%)
Australia (3.70%)
1,125 Brambles Industries Ltd. Transport $ 34,544
3,490 National Australia Bank Ltd. Banks 58,238
6,862 News Corp. Ltd. Media & Photography 94,403
9,040 Telstra Corp. Ltd. Telecommunications Services 36,661
4,137 Westpac Banking Corp. Ltd. Banks 29,818
-------------------------------------------------------------------------------------------------------------
253,664
-------------------------------------------------------------------------------------------------------------
China (1.14%)
14,000 China Unicom Ltd.* Telecommunications Services 29,721
234,000 PetroChina Co. Ltd.* Oil & Gas 48,627
-------------------------------------------------------------------------------------------------------------
78,348
-------------------------------------------------------------------------------------------------------------
Denmark (0.58%)
590 Tele Danmark - Class B Telecommunications Services 39,814
-------------------------------------------------------------------------------------------------------------
France (10.89%)
1,800 Alcatel Alsthom* Information Technology Hardware 118,200
1,802 Aventis S.A. Pharmaceuticals 131,680
986 AXA S.A. Insurance 155,480
680 Michelin - Class B Automobiles 21,845
1,000 Total S.A. - Class B Oil & Gas 153,509
1,877 Vivendi Diversified Industrials 165,867
-------------------------------------------------------------------------------------------------------------
746,581
-------------------------------------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 18
18
BERGER IPT-
INTERNATIONAL FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------------------------------------
Country/Shares Company Industry Value
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (97.48%) - CONTINUED
Germany (3.50%)
930 Bayerische HypoVereinsbank A.G. Banks $ 60,145
2,703 Bayerische Motoren Werk A.G. DM Automobiles 81,772
2,039 E. On A.G. Diversified Industrials 98,423
-------------------------------------------------------------------------------------------------------------
240,340
-------------------------------------------------------------------------------------------------------------
Hong Kong (2.11%)
4,000 Cheung Kong (Holdings) Ltd. Real Estate 44,255
7,000 China Telecom Ltd.* Telecommunications Services 61,733
3,000 Hong Kong Electric Holdings Electricity 9,659
4,000 Sun Hung Kai Properties Ltd. Real Estate 28,734
-------------------------------------------------------------------------------------------------------------
144,381
-------------------------------------------------------------------------------------------------------------
Italy (3.09%)
7,770 ENI S.p.A.* Oil & Gas 44,933
12,155 Telecom Italia S.p.A. Telecommunications Services 167,304
-------------------------------------------------------------------------------------------------------------
212,237
-------------------------------------------------------------------------------------------------------------
Japan (19.39%)
300 ACOM Co. Ltd. Specialty & Other Finance 25,206
2,000 Bank of Tokyo-Mitsubishi Ltd.+ Banks 24,132
3,000 Canon, Inc. Electronic & Electrical Equipment 149,201
2,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplier 81,759
9,000 Hitachi Ltd. Information Technology Hardware 129,703
1,000 Honda Motor Co. Ltd. Automobiles 34,003
1,000 Hoya Corp. Electronic & Electrical Equipment 89,483
1,000 Kao Corp. Personal Care & Household Products 30,518
1,000 Murata Manufacturing Co. Ltd.+ Information Technology Hardware 143,361
4,000 NEC Corp. Information Technology Hardware 125,465
5 Nippon Telegraph & Telephone
Corp. Telecommunications Services 66,406
4 NTT DoCoMo, Inc.+ Telecommunications Services 108,133
200 Rohm Co. Ltd. Information Technology Hardware 58,399
2,000 Shiseido Co. Ltd. Personal Care & Household Products 30,895
700 Sony Corp. Household Goods & Textiles 65,275
2,000 Takeda Chemical Industries Pharmaceuticals 131,116
300 Takefuji Corp. Specialty & Other Finance 36,198
-------------------------------------------------------------------------------------------------------------
1,329,253
-------------------------------------------------------------------------------------------------------------
Netherlands (12.06%)
3,335 ABN Amro Holdings N.V. Banks 81,797
3,054 Elsevier N.V. Media & Photography 37,044
1,167 Fortis N.V. Banks 34,010
640 Heineken N.V. Beverages 38,998
3,485 ING Groep N.V. Banks 235,844
2,345 Koninklijke Ahold N.V. Food & Drug Retailers 69,104
2,490 Koninklijke KPN N.V. Electronic & Electrical Equipment 111,506
1,705 Philips Electronics N.V. Household Goods & Textiles 80,508
1,225 Royal Dutch Petroleum Co. Oil & Gas 76,226
1,465 TNT Post Group N.V. Support Services 39,559
425 VNU N.V. Media & Photography 21,977
-------------------------------------------------------------------------------------------------------------
826,573
-------------------------------------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 19
19
Berger IPT Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------------------------------------
Country/Shares Company Industry Value
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (97.48%) - CONTINUED
New Zealand (0.11%)
2,178 Telecom Corp. of New
Zealand Ltd. Telecommunications Services $ 7,610
-------------------------------------------------------------------------------------------------------------
Portugal (0.28%)
1,055 Electricidade de Portugal S.A. Electricity 19,180
-------------------------------------------------------------------------------------------------------------
Singapore (1.26%)
3,757 Development Bank of
Singapore Ltd. Banks 48,251
2,100 Oversea Chinese Banking
Corp. Ltd. Banks 14,457
1,500 Singapore Press Holdings Ltd. Media & Photography 23,430
-------------------------------------------------------------------------------------------------------------
86,138
-------------------------------------------------------------------------------------------------------------
South Korea (0.61%)
485 Korea Telecom Corp. - Spon. ADR Telecommunications Services 23,461
775 Pohang Iron & Steel
Co. Ltd. - Spon. ADR Steel & Other Materials 18,600
-------------------------------------------------------------------------------------------------------------
42,061
-------------------------------------------------------------------------------------------------------------
Spain (2.45%)
7,094 Banco De Santander S.A.* Banks 74,927
4,326 Telefonica S.A.* Telecommunications Services 93,037
-------------------------------------------------------------------------------------------------------------
167,964
-------------------------------------------------------------------------------------------------------------
Sweden (1.16%)
4,020 Telefonaktiebolaget LM
Ericsson - Class B Information Technology Hardware 79,807
-------------------------------------------------------------------------------------------------------------
Switzerland (9.17%)
40 Alusuisse Lonza Group A.G.* Packaging 26,091
40 Lonza A.G. Reg. Chemicals 20,863
8 Givaudan Reg.* Personal Care & Household Products 2,437
75 Nestle S.A. Reg. Food Producers & Processors 150,262
69 Novartis A.G. Reg. Pharmaceuticals 109,407
10 Roche Holding A.G. Pharmaceuticals 97,444
59 Schweizerische
Rueckversicherungs Reg. Insurance 120,378
695 Union Bank of Switzerland
A.G. Reg. Banks 101,926
-------------------------------------------------------------------------------------------------------------
628,808
-------------------------------------------------------------------------------------------------------------
United Kingdom (25.98%)
1,180 3i Group PLC Investment Companies 24,314
5,305 Allied Zurich PLC Insurance 62,861
1,765 AstraZeneca PLC Pharmaceuticals 82,560
4,705 Barclays PLC Banks 117,210
1,668 British American Tobacco PLC Beverages 11,153
7,070 Cable & Wireless PLC Telecommunications Services 119,955
7,504 Cadbury Schweppes PLC Food Producers & Processors 49,380
8,763 Diageo PLC Beverages 78,791
3,108 Emi Group PLC* Media & Photography 28,275
4,025 Glaxo Wellcome PLC Pharmaceuticals 117,603
9,542 Granada Group PLC Leisure, Entertainment & Hotels 95,489
9,210 Hilton Group PLC Leisure, Entertainment & Hotels 32,398
13,680 Invensys PLC Engineering & Machinery 51,440
8,876 Lloyds TSB Group PLC Banks 83,979
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 20
20
BERGER IPT-
INTERNATIONAL FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------------------------------------
Country/Shares/Par Value Company Industry Value
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (97.48%) - CONTINUED
United Kingdom (25.98%) - continued
5,920 Marconi PLC Telecommunications Equipment $ 77,195
2,805 Old Mutual PLC* Banks/Insurance 6,177
1,700 Pearson PLC Media & Photography 54,130
7,855 Prudential PLC Life Assurance 115,290
1,010 Railtrack Group PLC Transport 15,719
3,100 Reuters Group PLC Media & Photography 52,973
450 RMC Group PLC Construction & Building Materials 5,867
18,163 Shell Transport & Trading
Co. PLC Oil & Gas 151,881
2,060 The Peninsular and Oriental
Steam Transport 17,678
Navigation Co.
2,760 TI Group PLC Engineering & Machinery 15,065
77,542 Vodafone AirTouch Group PLC Telecommunications Services 313,920
-------------------------------------------------------------------------------------------------------------
1,781,303
-------------------------------------------------------------------------------------------------------------
Total Common Stock (Cost $5,164,121) 6,684,062
-------------------------------------------------------------------------------------------------------------
Repurchase Agreement (3.14%)
U.S.A. (3.14%)
$215,000 State Street Repurchase
Agreement, 6.30% dated June
30, 2000, to be repurchased
at $215,113 on July 3, 2000,
collateralized by FNMA
Agency Note, 6.40% -
December 21, 2001, with a
value of $223,875 215,000
-------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement (Cost $215,000) 215,000
-------------------------------------------------------------------------------------------------------------
Total Investments (Cost $5,379,121) (100.62%) 6,899,062
Total Other Assets, Less Liabilities (-0.62%) (42,496)
-------------------------------------------------------------------------------------------------------------
Net Assets (100.00%) $6,856,566
-------------------------------------------------------------------------------------------------------------
</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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 21
21
Berger IPT Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
Outstanding Forward Foreign Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Contract Maturity Value on Appreciation/
Currency Amount Date June 30, 2000 (Depreciation)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 6,180,000 7/18/2000 $58,477 $775
Sell Japanese Yen 3,595,000 7/28/2000 34,104 463
Sell Japanese Yen 3,278,000 8/9/2000 31,166 (410)
Sell Japanese Yen 6,167,000 8/21/2000 58,753 (243)
Sell Japanese Yen 5,206,000 8/30/2000 49,675 (610)
Sell Japanese Yen 3,848,000 9/5/2000 36,756 367
-----------------------------------------------------------------------------------------------------------
$268,931 $342
-----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 22
22
BERGER IPT-
GROWTH AND
INCOME FUND
PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO
===============================================================================
Effective August 7, 2000, Berger Funds appointed Steven L. Fossel interim
portfolio manager of the Berger IPT-Growth and Income Fund.
PERFORMANCE
The stock market was roiled by high volatility during the six months ended June
30, 2000. After a precipitous sell-off in growth stocks that ushered in the new
year, the market rallied towards the end of January and through February, with
technology stocks leading the way. A large sell-off, this time in Nasdaq
stocks, began after the market's March 10 peak and continued through May. Much
of this correction was centered on companies that investors perceived as having
high stock valuations, particularly those in the technology sector. The period
ended with a selective rally in June by solid companies that have strong
fundamentals.
Despite this volatility, the Berger IPT-Growth and Income Fund (the "Fund") was
able to turn in a gain of 6.54% for the six-month period and outperform its
benchmark, the Standard & Poor's (S&P) 500 Index,(1) which had a negative return
of -0.43% over the same period.
PERIOD IN REVIEW
Individual stock selection was the key to our Fund's outperformance this
reporting period. Many of our strongest performers were in the sector that was
battered the worst by market forces in the second quarter--technology. We had
strong gains in technology holdings such as EMC Corp. and Corning. Corning's
growth continues to be driven by high demand for fiber optic cable.
Our holdings in the healthcare sector also continued to perform well,
especially large pharmaceutical companies such as American Home Products and
biotechnology companies such as Amgen and Genentech.
Energy stocks, particularly those in the oil and gas drilling and equipment
industries, have been solid performers throughout the past six months,
reflecting the market's anticipation of strong earnings outlooks for these
companies. We slightly increased our weighting in the energy sector during the
second quarter on the strength of the sector's tight inventories and favorable
supply/demand fundamentals. Some of the Fund's top performers during this
period were Enron Corp., a company that specializes in the exploration and
production of natural gas, Ensco International, an international offshore
drilling company, and Halliburton, a provider of oil and gas drilling services.
On the downside, the Fund's poor performers included companies such as EchoStar
and Qualcomm. Both of these companies were the victims of their own success,
seeing their stock prices decline significantly during the most recent market
correction.
LOOKING AHEAD
Going forward, our outlook for the technology sector in general remains
positive. Revenue and earnings growth rates in this sector remain very high,
attributable to the continued rapid pace of the Internet build-out and to
aggressive implementation of e-commerce initiatives by corporations worldwide.
High stock valuations will remain an issue, however, as investors seek to find
a comfortable timeframe to evaluate a company's future earnings potential.
Before the correction, investors seemed to be willing to pay for earnings three
to four years or more into the future; now investors appear to be focusing only
one to two years out, on average.
Despite the downdraft the Fund has experienced since mid-March, we will
continue to focus on companies in technology, healthcare, consumer cyclicals
and selected financial services sectors. As always, we will seek companies that
we feel have strong long-term fundamentals as well as above-average revenue and
earnings growth potential.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
(1)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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 23
23
Berger IPT Funds
PERFORMANCE OVERVIEW
===============================================================================
BERGER IPT-GROWTH AND INCOME FUND
Comparison of Change in Value for Berger IPT-Growth and Fund vs. S&P 500 Index
[GRAPH]
<TABLE>
<CAPTION>
6/30/00
<S> <C>
Berger IPT-Growth and Income Fund $29,501
S&P 500 Index $23,747
</TABLE>
Average Annual Total Return as of June 30, 2000
<TABLE>
<S> <C>
One Year 43.19%
Life of the Fund (5/1/96) 29.62%
</TABLE>
Past performance is no guarantee of future results. Fund performance shown
reflects the unusually favorable market conditions that existed in 1999 which
likely are not sustainable as market conditions change. Investment returns and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (73.15%)
Auto Manufacturers - Foreign (1.15%)
5,655 Toyota Motor Corp. $ 526,975
-------------------------------------------------------------------------------
Banks - Super Regional (4.13%)
9,830 Fifth Third Bancorp 621,747
10,490 Northern Trust Corp. 682,505
12,570 The Bank of New York Co., Inc. 584,505
-------------------------------------------------------------------------------
1,888,757
-------------------------------------------------------------------------------
Chemicals - Basic (1.09%)
11,850 Akzo Nobel N.V. ADR 498,440
-------------------------------------------------------------------------------
Commercial Services - Advertising (1.20%)
6,150 Omnicom Group, Inc. 547,734
-------------------------------------------------------------------------------
Computer - Local Networks (2.83%)
20,318 Cisco Systems, Inc.* 1,291,462
-------------------------------------------------------------------------------
Computer - Manufacturers (1.48%)
7,444 Sun Microsystems, Inc.* 676,938
-------------------------------------------------------------------------------
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
COMMON STOCK (73.15%) - CONTINUED
Computer - Memory Devices (5.32%)
15,162 EMC Corp.* $1,166,526
15,734 Network Appliance, Inc.* 1,266,587
-------------------------------------------------------------------------------
2,433,113
-------------------------------------------------------------------------------
Computer Software - Desktop (1.76%)
10,040 Microsoft Corp.* 803,200
-------------------------------------------------------------------------------
Computer Software - Education/Entertainment (0.81%)
13,720 Handspring, Inc.* 370,440
-------------------------------------------------------------------------------
Computer Software - Enterprise (1.24%)
1,570 ORACLE Corp. Japan* 567,870
-------------------------------------------------------------------------------
Computer Software - Network (1.81%)
12,090 Nortel Networks Corp. 825,142
-------------------------------------------------------------------------------
Electrical - Equipment (0.97%)
8,340 General Electric Co. 442,020
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 24
24
BERGER IPT-
GROWTH AND
INCOME FUND
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (73.15%) - CONTINUED
Electronic - Semiconductor Equipment (4.34%)
8,338 Applied Materials, Inc.* $ 755,631
11,061 STMicroelectronics N.V.* 709,977
7,078 Teradyne, Inc. 520,233
-------------------------------------------------------------------------------
1,985,841
Electronic - Semiconductor Manufacturing (3.48%)
6,820 Applied Micro Circuits Corp. 673,475
6,880 Intel Corp. 919,770
-------------------------------------------------------------------------------
1,593,245
-------------------------------------------------------------------------------
Finance - Investment Bankers (2.95%)
9,180 Morgan Stanley Dean Witter & Co. 764,235
17,420 Schwab (Charles) Corp. 585,747
-------------------------------------------------------------------------------
1,349,982
-------------------------------------------------------------------------------
Household - Audio/Video (2.09%)
10,140 Sony Corp. - Spon. ADR 956,328
-------------------------------------------------------------------------------
Internet - Network Security/Solutions (1.65%)
4,270 VeriSign, Inc.* 753,655
-------------------------------------------------------------------------------
Leisure - Movies & Related (1.07%)
18,800 Metro-Goldwyn-Mayer Inc.* 491,150
-------------------------------------------------------------------------------
Leisure - Products (1.04%)
8,230 The Seagram Co. Ltd. 477,340
-------------------------------------------------------------------------------
Media - Cable TV (0.67%)
12,670 AT&T Corp. - Liberty Media Group* 307,247
-------------------------------------------------------------------------------
Media - Radio/TV (0.85%)
11,170 Hispanic Broadcasting Corp.* 387,893
-------------------------------------------------------------------------------
Medical - Biomed/Genetics (4.79%)
12,640 Amgen, Inc.* 887,960
7,580 Genentech, Inc.* 1,303,760
-------------------------------------------------------------------------------
2,191,720
-------------------------------------------------------------------------------
Medical - Ethical Drugs (2.30%)
17,880 American Home Products Corp. 1,050,450
-------------------------------------------------------------------------------
Medical - Products (0.97%)
8,970 Guidant Corp.* 444,015
-------------------------------------------------------------------------------
Oil & Gas - Drilling (1.97%)
25,200 ENSCO International, Inc. 902,475
-------------------------------------------------------------------------------
Oil & Gas - Field Services (3.59%)
21,190 Halliburton Co. 999,903
8,600 Schlumberger Ltd. 641,775
-------------------------------------------------------------------------------
1,641,678
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Shares/Par Value Value
-------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (73.15%) - CONTINUED
Oil & Gas - International Integrated (1.66%)
9,890 Total Fina SA - Spon. ADR $ 759,675
-------------------------------------------------------------------------------
Oil & Gas - Production/Pipeline (1.84%)
13,050 Enron Corp. 841,725
-------------------------------------------------------------------------------
Retail - Apparel/Shoe (0.45%)
10,300 Intimate Brands, Inc. 203,425
-------------------------------------------------------------------------------
Retail - Consumer Electric (0.55%)
3,990 Best Buy Co., Inc.* 252,367
-------------------------------------------------------------------------------
Retail - Major Discount Chains (0.79%)
10,890 Costco Wholesale Corp.* 359,370
-------------------------------------------------------------------------------
Retail/Wholesale - Computers (1.25%)
12,040 RadioShack Corp. 570,395
-------------------------------------------------------------------------------
Telecommunications - Equipment (9.17%)
7,041 Corning Inc. 1,900,189
28,124 Nokia Corp. - Spon. ADR 1,404,442
5,147 QUALCOMM Inc.* 308,820
5,255 Sycamore Networks, Inc.* 580,020
-------------------------------------------------------------------------------
4,193,471
-------------------------------------------------------------------------------
Telecommunications - Services (1.54%)
10,300 Nippon Telegraph &
Telephone Corp. (NTT) 704,280
-------------------------------------------------------------------------------
Transportation - Air Freight (0.35%)
2,680 United Parcel Service, Inc. 158,120
-------------------------------------------------------------------------------
Total Common Stock
(Cost $25,095,854) 33,447,938
-------------------------------------------------------------------------------
CORPORATE DEBT - CONVERTIBLE (17.80%)
Computer Software - Enterprise (3.46%)
$231,000 Siebel Systems Inc.
5.50%, 9/15/2006 828,135
236,000 VERITAS Software Corp.
1.86%, 8/13/2006 751,660
-------------------------------------------------------------------------------
1,579,795
-------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (1.37%)
462,000 ASM Lithography Holding N.V.
4.25%, 11/30/2004 626,010
-------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (1.48%)
310,000 Conexant Systems, Inc.
4.25%, 5/1/2006 676,962
-------------------------------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 25
25
Berger Funds
===============================================================================
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------
Par Value Value
-------------------------------------------------------------------------------
<S> <C>
CORPORATE DEBT - CONVERTIBLE (17.80%) - CONTINUED
Internet - ISP/Content (1.18%)
$68,000 America Online, Inc.
4.00%, 11/15/2002 $ 539,750
-------------------------------------------------------------------------------
Internet - Network Security/Solutions (3.16%)
638,000 Juniper Networks Inc.
4.75%, 3/15/2007 697,812
655,000 Redback Networks Inc.
5.00%, 4/1/2007 749,156
-------------------------------------------------------------------------------
1,446,968
-------------------------------------------------------------------------------
Media - Cable TV (2.31%)
1,110,000 EchoStar Communications Corp. -
Class A - 144A
4.88%, 1/1/2007 1,057,275
-------------------------------------------------------------------------------
Media - Radio/TV (2.38%)
841,000 Clear Channel Communications, Inc.
2.62%, 4/1/2003 1,088,043
-------------------------------------------------------------------------------
Oil & Gas - Drilling (0.63%)
469,000 Nabors Industries Inc. - 144A
0.00%, 6/20/2020 287,262
-------------------------------------------------------------------------------
Telecommunications - Services (1.83%)
262,000 COLT Telecom Group PLC
2.00%, 3/29/2006 418,848
$281,000 Level Three Communications Inc.
6.00%, 9/15/2009 418,338
-------------------------------------------------------------------------------
837,186
-------------------------------------------------------------------------------
Total Corporate Debt - Convertible
(Cost $7,268,043) 8,139,251
-------------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (4.69%)
Media - Cable TV (1.41%)
5,190 Houston Industries, Inc., 7.00% 645,506
-------------------------------------------------------------------------------
Telecommunications - Cellular (1.48%)
4,010 Omnipoint Corp. - 144A, 7.00% 677,441
-------------------------------------------------------------------------------
Telecommunications - Services (1.80%)
10,540 Qwest Trends Trust - 144A, 5.75% 824,755
-------------------------------------------------------------------------------
Total Preferred Stock - Convertible
(Cost $1,726,640) 2,147,702
-------------------------------------------------------------------------------
<CAPTION>
June 30, 2000
Par Value Value
-------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT (3.89%)
$1,777,000 State Street Repurchase Agreement,
6.30% dated June 30, 2000 to be
repurchased at $1,777,933 on
July 3, 2000, collateralized by
FNMA Agency Note, 6.195% -
December 27, 2000 with a value
of $1,815,450 $ 1,777,000
-------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,777,000) 1,777,000
-------------------------------------------------------------------------------
Total Investments (Cost $35,867,537) (99.53%) 45,511,891
Total Other Assets, Less Liabilities (0.47%) 213,088
-------------------------------------------------------------------------------
Net Assets (100.00%) $45,724,979
-------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
FNMA - Federal National Mortgage Association.
144A - Resale is restricted to qualified institutional buyers.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 26
26
FINANCIAL
STATEMENTS
===============================================================================
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Berger IPT- Berger IPT- Berger IPT- Berger IPT-
New Generation Small Company Berger IPT- International Growth and
June 30, 2000 (Unaudited) Fund Growth Fund Growth Fund Fund Income Fund
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
Investments, at cost $ 2,229,134 $ 74,989,406 $ 9,272,590 $ 5,379,121 $ 35,867,537
---------------------------------------------------------------------------------------------------------------------------------
Investments, at value $ 2,373,152 $ 89,749,622 $ 11,584,748 $ 6,899,062 $ 45,511,891
Cash 156,445 349,961 125,039 26,731 99,497
Foreign cash (cost $74,544) -- -- -- 75,175 --
Receivables
Investment securities sold 19,970 1,059,205 8,631 3,165 35,527
Fund shares sold 65,329 1,348,737 37,041 9,094 119,934
Dividends -- 186 961 14,521 23,506
Interest 18 649 91 38 70,126
Due from Advisor 5,213 -- 3,726 4,881 --
Investment held as collateral on loaned securities -- 24,059,687 -- -- --
Net unrealized appreciation on forward foreign
currency contracts -- -- -- 342 --
---------------------------------------------------------------------------------------------------------------------------------
Total Assets 2,620,127 116,568,047 11,760,237 7,033,009 45,860,481
---------------------------------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 269,956 8,573,126 7,333 121,420 99,001
Fund shares redeemed -- 54,595 38,825 40,864 --
Collateral on securities loaned -- 24,059,687 -- -- --
Accrued investment advisory fees 1,254 51,466 6,730 4,770 26,998
Accrued custodian and accounting fees 2,165 3,037 3,495 2,989 3,764
Accrued transfer agent fees 1,275 2,580 1,291 1,269 1,068
Accrued audit fees -- 2,724 4,524 4,871 4,524
Accrued shareholder reporting fees -- 243 176 260 147
---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 274,650 32,747,458 62,374 176,443 135,502
---------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 2,345,477 $ 83,820,589 $ 11,697,863 $ 6,856,566 $ 45,724,979
---------------------------------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 2,195,689 $ 62,322,028 $ 8,887,494 $ 5,068,650 $ 34,708,820
Undistributed net investment income/(Accumulated
net investment loss) 62 (168,016) (25,824) 38,463 78,287
Undistributed net realized gain on investments 5,707 6,906,361 524,035 230,481 1,293,396
Net unrealized appreciation of securities
and foreign currency transactions 144,019 14,760,216 2,312,158 1,518,972 9,644,476
---------------------------------------------------------------------------------------------------------------------------------
$ 2,345,477 $ 83,820,589 $ 11,697,863 $ 6,856,566 $ 45,724,979
---------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding (par value $0.01, unlimited shares
authorized) 228,885 2,996,843 563,610 481,402 1,622,599
---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 10.25 $ 27.97 $ 20.76 $ 14.24 $ 28.18
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 27
27
Financial Statements
===============================================================================
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Berger IPT- Berger IPT- Berger IPT- Berger IPT-
New Generation Small Company Berger IPT- International Growth and
Six Months Ended June 30, 2000 (Unaudited) Fund(1) Growth Fund Growth Fund Fund Income Fund
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
Income
Dividends $ 24 $ 3,639 $ 8,631 $ 64,900 $ 95,389
Interest 2,735 133,749 13,725 5,730 138,303
Securities lending income -- 22,904 -- -- --
Foreign tax withholding -- -- (395) (9,669) (2,749)
----------------------------------------------------------------------------------------------------------------------------------
Total Income 2,759 160,292 21,961 60,961 230,943
----------------------------------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 1,993 276,683 36,859 28,851 137,608
Accounting fees 1,500 7,447 7,447 7,715 7,447
Custodian fees 2,831 20,123 9,378 13,763 11,195
Transfer agent fees 1,275 8,591 5,591 6,887 4,763
Registration fees -- 292 292 292 292
Audit fees 300 5,638 4,937 7,235 4,937
Legal fees -- 1,642 1,310 1,286 1,603
Trustees' fees and expenses -- 2,024 314 226 1,181
Shareholder reporting fees 37 6,672 4,111 6,281 4,413
Other expenses -- 1,246 200 154 799
----------------------------------------------------------------------------------------------------------------------------------
Gross Expenses 7,936 330,358 70,439 72,690 174,238
----------------------------------------------------------------------------------------------------------------------------------
Less fees waived and/or reimbursed by Advisor (5,213) -- (21,218) (33,609) --
Less earnings credits (26) (2,050) (1,503) (362) (7,091)
----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 2,697 328,308 47,718 38,719 167,147
----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 62 (168,016) (25,757) 22,242 63,796
----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions
Net realized gain on securities and foreign currency
transactions 5,707 6,098,117 161,474 307,995 131,923
Net change in unrealized appreciation (depreciation) on
securities and foreign currency transactions 144,019 903,919 187,317 (448,741) 1,408,770
----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions 149,726 7,002,036 348,791 (140,746) 1,540,693
----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations $ 149,788 $ 6,834,020 $ 323,034 $ (118,504) $ 1,604,489
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 2000 (commencement of investment operations) to
June 30, 2000.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 28
28
FINANCIAL
STATEMENTS
===============================================================================
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT-
New Generation Fund
------------------------------------------------------------------------------------------------------
Period Ended
June 30, 2000(1)
(Unaudited)
------------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income $ 62
Net realized gain on securities and foreign currency transactions 5,707
Net change in unrealized appreciation on securities and foreign currency transactions 144,019
------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 149,788
------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 2,250,677
Payments for shares redeemed (54,988)
------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Derived from Fund Share Transactions 2,195,689
------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 2,345,477
Net Assets
Beginning of period --
------------------------------------------------------------------------------------------------------
End of period $ 2,345,477
------------------------------------------------------------------------------------------------------
Undistributed net investment income $ 62
------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 234,561
Shares redeemed (5,676)
------------------------------------------------------------------------------------------------------
Net Increase in Shares 228,885
Shares outstanding, beginning of period --
------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 228,885
------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from May 1, 2000 (commencement of investment operations) to
June 30, 2000.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 29
29
Financial Statements
===============================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT-
Small Company Berger IPT-
Growth Fund Growth Fund
---------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Operations
Net investment income (loss) $ (168,016) $ (83,681) $ (25,757) $ (2,384)
Net realized gain on securities and foreign
currency transactions 6,098,117 2,133,648 161,474 564,793
Net realized gain on futures contracts -- -- -- 1,536
Net change in unrealized appreciation on securities
and foreign currency transactions 903,919 12,267,043 187,317 1,552,740
---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 6,834,020 14,317,010 323,034 2,116,685
---------------------------------------------------------------------------------------------------------------
From Dividends and Distributions to Shareholders
Net investment income -- -- -- (919)
In excess of net investment income -- -- -- (113)
---------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and
Distributions to Shareholders -- -- -- (1,032)
---------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 60,600,663 39,787,939 7,761,010 2,709,706
Net asset value of shares issued in reinvestment
of dividends and distributions -- -- -- 1,032
Payments for shares redeemed (24,948,903) (22,628,443) (3,051,845) (1,870,836)
---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Derived from
Fund Share Transactions 35,651,760 17,159,496 4,709,165 839,902
---------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 42,485,780 31,476,506 5,032,199 2,955,555
Net Assets
Beginning of period 41,334,809 9,858,303 6,665,664 3,710,109
---------------------------------------------------------------------------------------------------------------
End of period $ 83,820,589 $ 41,334,809 $ 11,697,863 $ 6,665,664
---------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated
net investment loss) $ (168,016) -- $ (25,824) $ (67)
---------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 2,245,057 2,575,054 375,801 192,103
Shares issued to shareholders in reinvestment of
dividends and distributions -- -- -- 55
Shares redeemed (1,006,137) (1,619,624) (159,081) (133,093)
---------------------------------------------------------------------------------------------------------------
Net Increase in Shares 1,238,920 955,430 216,720 59,065
Shares outstanding, beginning of period 1,757,923 802,493 346,890 287,825
---------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 2,996,843 1,757,923 563,610 346,890
---------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 30
30
FINANCIAL
STATEMENTS
===============================================================================
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Berger IPT- Berger IPT-
International Growth and
Fund Income Fund
----------------------------------------------------------------------------------------------------------------------------
Six Months Ended Year Ended Six Months Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From Operations
Net investment income (loss) $ 22,242 $ 27,828 $ 63,796 $ 15,117
Net realized gain on securities and foreign
currency transactions 307,995 121,214 131,923 1,708,647
Net change in unrealized appreciation on securities
and foreign currency transactions (448,741) 1,380,615 1,408,770 6,379,926
----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations (118,504) 1,529,657 1,604,489 8,103,690
----------------------------------------------------------------------------------------------------------------------------
From Dividends and Distributions to Shareholders
Net investment income -- (34,474) -- --
----------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and
Distributions to Shareholders -- (34,474) -- --
----------------------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 3,638,125 1,641,409 21,887,711 14,222,645
Net asset value of shares issued in reinvestment
of dividends
and distributions -- 34,474 -- --
Payments for shares redeemed (2,785,316) (2,478,881) (2,639,170) (6,538,408)
----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions 852,809 (802,998) 19,248,541 7,684,237
----------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets 734,305 692,185 20,853,030 15,787,927
Net Assets
Beginning of period 6,122,261 5,430,076 24,871,949 9,084,022
----------------------------------------------------------------------------------------------------------------------------
End of period $ 6,856,566 $ 6,122,261 $ 45,724,979 $ 24,871,949
----------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income/(Accumulated
net investment loss) $ 38,463 $ 16,221 $ 78,287 $ 14,491
----------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares sold 257,873 136,622 783,041 711,283
Shares issued to shareholders in reinvestment of
dividends and distributions -- 2,400 -- --
Shares redeemed (194,843) (205,121) (100,797) (317,174)
----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 63,030 (66,099) 682,244 394,109
Shares outstanding, beginning of period 418,372 484,471 940,355 546,246
----------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 481,402 418,372 1,622,599 940,355
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 31
31
Financial Highlights
FINANCIAL
HIGHLIGHTS
===============================================================================
BERGER IPT-NEW GENERATION FUND
For A Share Outstanding Throughout The Period
<TABLE>
<CAPTION>
Period Ended
June 30, 2000(1)
(Unaudited)
-----------------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $ 10.00
-----------------------------------------------------------------------------------------------------------------
From investment operations
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 0.25
-----------------------------------------------------------------------------------------------------------------
Total from investment operations 0.25
-----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 10.25
-----------------------------------------------------------------------------------------------------------------
Total Return(2) 2.50%
-----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period $2,345,477
Net expense ratio to average net assets(3) 1.15%(4)
Ratio of net income (loss) to average net assets 0.03%(4)
Gross expense ratio to average net assets 3.35%(4)
Portfolio turnover rate(2) 25%
</TABLE>
1. For the period from May 1, 2000 (commencement of investment operations) to
June 30, 2000.
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.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 32
32
FINANCIAL
HIGHLIGHTS
===============================================================================
BERGER IPT-SMALL COMPANY GROWTH FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Ended Years Ended December 31,
June 30, 2000 -----------------------------------------------------------
(Unaudited) 1999 1998 1997 1996(1)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 23.51 $ 12.28 $ 12.06 $ 9.95 $ 10.00
----------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.06) -- -- 0.00(5) 0.01
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.52 11.23 0.23 2.11 (0.06)
----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.46 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 $ 27.97 $ 23.51 $ 12.28 $ 12.06 $ 9.95
----------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 18.97% 91.45% 1.87% 21.21% (0.50)%
----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period $ 83,820,589 $ 41,334,809 $ 9,858,303 $2,719,559 $ 291,362
Net expense ratio to average net assets(3) 1.01%(4) 1.15% 1.15% 1.15% 1.15%(4)
Ratio of net income (loss) to average net assets (0.52)%(4) (0.56)% (0.11)% 0.05% 0.14%(4)
Gross expense ratio to average net assets 1.01%(4) 1.53% 2.19% 5.81% 8.57%(4)
Portfolio turnover rate(2) 53% 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. Amount represents less than $0.01 per share.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 33
33
Financial Highlights
===============================================================================
BERGER IPT-GROWTH FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Ended Years Ended December 31,
June 30, 2000 --------------------------------------------------
(Unaudited) 1999 1998 1997 1996(1)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.22 $ 12.89 $ 11.11 $ 10.39 $ 10.00
-------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.05) -- 0.02 0.01 0.03
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.59 6.33 1.79 1.39 0.36
-------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.54 6.33 1.81 1.40 0.39
-------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- (0.00)(5) (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 $ 20.76 $ 19.22 $ 12.89 $ 11.11 $ 10.39
-------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 8.01% 49.13% 16.29% 13.76% 3.90%
-------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period $11,697,863 $6,665,664 $3,710,109 $1,233,892 $331,296
Net expense ratio to average net assets(3) 1.00%(4) 1.00% 1.00% 1.00% 1.00%(4)
Ratio of net income (loss) to average net assets (0.52)%(4) (0.05)% 0.29% 0.51% 0.50%(4)
Gross expense ratio to average net assets 1.43%(4) 2.19% 2.88% 9.18% 7.69%(4)
Portfolio turnover rate(2) 44% 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. Dividends from net investment income and distributions in excess of net
investment income amounted to less than $0.01 per share.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 34
34
FINANCIAL
HIGHLIGHTS
===============================================================================
BERGER IPT-INTERNATIONAL FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Ended Years Ended December 31,
June 30, 2000 ------------------------------------------------
(Unaudited) 1999 1998 1997(1)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.63 $ 11.21 $ 9.79 $ 10.00
---------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.04 0.03 0.08 0.05
Net realized and unrealized gains (losses) from
investments and foreign currency transactions (0.43) 3.47 1.50 (0.26)
---------------------------------------------------------------------------------------------------------------------------
Total from investment operations (0.39) 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 $ 14.24 $ 14.63 $ 11.21 $ 9.79
---------------------------------------------------------------------------------------------------------------------------
Total Return(2) (2.67)% 31.24% 16.13% (2.10)%
---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period $ 6,856,566 $ 6,122,261 $ 5,430,076 $ 2,705,831
Net expense ratio to average net assets(3) 1.20%(4) 1.20% 1.20% 1.20%(4)
Ratio of net income (loss) to average net assets 0.68%(4) 0.51% 2.85% 0.86%(4)
Gross expense ratio to average net assets 2.23%(4) 2.46% 2.85% 3.83%(4)
Portfolio turnover rate(2) 19% 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.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 35
35
Financial Highlights
===============================================================================
BERGER IPT-GROWTH AND INCOME FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Six Months Ended Years Ended December 31,
June 30, 2000 -------------------------------------------------------
(Unaudited) 1999 1998 1997 1996(1)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 26.45 $ 16.63 $ 13.39 $ 11.14 $ 10.00
----------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.03 0.02 0.10 0.01 0.10
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.70 9.80 3.25 2.75 1.04
----------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.73 9.82 3.35 2.76 1.14
----------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- -- (0.11)(5) (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 $ 28.18 $ 26.45 $ 16.63 $ 13.39 $ 11.14
----------------------------------------------------------------------------------------------------------------------------------
Total Return(2) 6.54% 59.05% 25.03% 24.99% 11.40%
----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $45,724,979 $24,871,949 $9,084,022 $1,501,118 $344,373
Net expense ratio to average net assets(3) 0.95%(4) 1.00% 1.00% 1.00% 1.00%(4)
Ratio of net income (loss) to average net assets 0.35%(4) 0.10% 1.10% 1.39% 1.80%(4)
Gross expense ratio to average net assets 0.95%(4) 1.19% 1.99% 9.62% 7.70%(4)
Portfolio turnover rate(2) 22% 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. Distributions in excess of net investment income amounted to less than
$0.01 per share.
See notes to financial statements.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 36
36
NOTES TO FINANCIAL
STATEMENTS
June 30, 2000 (Unaudited)
===============================================================================
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Berger Institutional Products Trust (the "Trust"), a Delaware business trust,
was established on October 17, 1995 as a diversified open-end management
investment company. The Trust is authorized to issue an unlimited number of
shares of beneficial interest in series or portfolios. Currently, the series
comprising Berger IPT-New Generation Fund ("IPT-NGF"), Berger IPT-Small Company
Growth Fund ("IPT-SCG"), Berger IPT-Growth Fund ("IPT-Growth") (formerly Berger
IPT-100 Fund), Berger IPT-International Fund ("IPT-International") (formerly
Berger/BIAM IPT-International Fund) and Berger IPT-Growth and Income Fund
("IPT-G&I"), (individually the "Fund" and collectively the "Funds") are the
only portfolios established under the Trust, although others may be added in
the future. IPT-NGF commenced investment operations on May 1, 2000.
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"), the investment advisor to the Funds and by BBOI
Worldwide LLC ("BBOI"), the former investment advisor to IPT-International.
On January 19, 2000, Berger and Bank of Ireland Asset Management (U.S.) Limited
("BIAM") entered into an agreement to dissolve BBOI. This agreement was
approved by shareholders on May 5, 2000. The dissolution of BBOI will have no
effect on the investment advisory services to IPT-International. Upon approval
of the new management agreement, Berger became the Fund's advisor and BIAM
continues to be responsible for the day-to-day management of the Fund's
portfolio as sub-advisor. In connection with the dissolution, IPT-International
was renamed Berger IPT-International Fund from Berger/BIAM IPT-International
Fund.
Effective January 31, 2000, IPT-Growth formally changed its name to Berger
IPT-Growth Fund from Berger IPT-100 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.
At June 30, 2000, Berger directly or indirectly owned 44% and 35% of the
outstanding shares of IPT-NGF and IPT-International, respectively. Berger did
not own, directly or indirectly, any of the outstanding shares of IPT-SCG,
IPT-Growth or IPT-G&I at June 30, 2000.
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. 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 Funds' net asset values 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
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 37
37
Notes to Financial Statements
===============================================================================
will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the trustees of the
Funds.
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.
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. 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 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 the Funds. Berger has delegated the
day-to day portfolio management of IPT-International to BIAM which serves as
investment sub-advisor. As compensation for its services to the Funds, Berger
receives an investment advisory fee, which is accrued daily at the applicable
rate and paid monthly according to the following schedule:
<TABLE>
<CAPTION>
Average Daily
Fund Net Assets Annual Rate
---------------------------------------------------------------
<S> <C> <C>
IPT-NGF, IPT-SCG, IPT-Int'l First $500 million .85%
Next $500 million .80%
Over $1 billion .75%
IPT-Growth, IPT-G&I First $500 million .75%
Next $500 million .70%
Over $1 billion .65%
---------------------------------------------------------------
</TABLE>
Effective May 12, 2000, the investment advisory fee charged to
IPT-International, above, was reduced from .90% of the Fund's average daily net
assets. As sub-advisor to IPT-International, BIAM receives a sub-advisory fee
from Berger based on the average daily net assets of the Fund.
Berger has agreed to waive its 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-Growth and IPT-G&I, 1.15% of the average daily net assets of
IPT-SCG and IPT-NGF, and 1.20% of the average daily net assets of
IPT-International.
The Funds have entered into administrative services agreements with Berger.
Berger currently provides these administrative services to the Funds at no
cost.
The Trust, on behalf of the Funds, has entered into a recordkeeping and pricing
agreement with State Street Bank & Trust ("State Street"), which also serves as
the Funds' custodian. 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 with other Berger Funds. State
Street's fees for custody, recordkeeping and pricing are subject to reduction
by credits earned by each Fund, based on the cash balances of each Fund held by
State Street as custodian.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 38
38
NOTES TO FINANCIAL
STATEMENTS
June 30, 2000 (Unaudited)
===============================================================================
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. The Funds received no
brokerage credits for the period ended June 30, 2000.
Certain officers and/or directors of Berger are also officers and/or trustees
of the Trust. Trustees who are not affiliated with Berger received trustees'
fees totaling $0, $2,024 $314, $226 and $1,181 from IPT-NGF, IPT-SCG,
IPT-Growth, IPT-International, and IPT-G&I, respectively, for the period ended
June 30, 2000.
The Funds adopted a trustee fee deferral plan (the "Plan") which allows the
non-affiliated trustees to defer the receipt of all or a portion of the trustee
fees payable. The deferred fees 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 period ended June 30, 2000, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
---------------------------------------------------
<S> <C> <C>
IPT-NGF $ 2,510,839 $ 389,412
IPT-SCG 62,343,904 32,017,576
IPT-Growth 8,401,708 4,101,111
IPT-International 1,970,004 1,222,073
IPT-G&I 25,741,420 7,585,603
---------------------------------------------------
</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 June 30, 2000, the federal tax cost of securities and composition of net
unrealized appreciation (depreciation) of investment 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-NGF $ 2,249,868 $ 220,985 $ (97,701) $ 123,284
IPT-SCG 77,255,029 16,632,671 (4,138,078) 12,494,593
IPT-Growth 9,371,120 2,456,550 (242,922) 2,213,628
IPT-Int'l 5,421,002 1,635,799 (157,739) 1,478,060
IPT-G&I 36,191,949 10,283,704 (963,762) 9,319,942
------------------------------------------------------------------------
</TABLE>
FORWARD CONTRACTS AND OPTIONS
Each Fund may hold certain types of forward foreign currency exchange 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.
SECURITIES LENDING
Under an agreement with State Street, IPT-SCG has the ability to lend
securities to brokers, dealers and other financial institutions. Loans of
portfolio securities are collateralized by cash remitted from the borrower of
such securities in an amount equal to at least 102% of the market value of the
loaned securities at the time the loan is made. The cash collateral received is
invested in a money market fund and is evaluated daily to ensure that it
exceeds the current market value of the loaned securities. Income generated by
such investment, net of any rebates paid to the borrower, is split among the
Fund and State Street, as lending agent.
At June 30, 2000, IPT-SCG had securities on loan with market values totaling
$23,341,239.
Income earned from securities lending transactions is included in securities
lending income in the Statements 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.
Berger IPT Funds o June 30, 2000 Semi-Annual Report
<PAGE> 39
39
Notes to Financial Statements
===============================================================================
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
Statements 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.
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.
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.
IPT-Growth, IPT-International, and IPT-G&I incurred and elected to defer
post-October 31 currency losses amounting to $67, $12,564, and $626,
respectively, to the year ended December 31, 2000.
4. LINE OF CREDIT
The Funds are party to an ongoing agreement with certain banks that allows the
funds managed by Berger, collectively, to borrow up to $150 million for
temporary or emergency purposes. Interest on the borrowings, if any, is charged
to the specific Fund at the Federal Funds Rate plus 50 basis points. In
addition, the line of credit requires a quarterly payment of a commitment fee
based on the average daily unused portion of the line of credit. No Fund had
line of credit borrowings outstanding at June 30, 2000.
5. OTHER MATTERS
A special meeting of shareholders of IPT-International was held on May 5, 2000,
at which shareholders approved the following proposals:
Proposal 1. Approval of a new investment advisory agreement naming Berger as
investment advisor to the Fund, replacing BBOI; and
Proposal 2. Approval of a new Sub-Advisory Agreement between Berger and BIAM.
The following is a report of the votes cast:
<TABLE>
<CAPTION>
Withheld/
For Against Abstain Total
-----------------------------------------------------------
<S> <C> <C> <C> <C>
Proposal 1 384,729 49,213 16,444 450,386
Proposal 2 384,704 49,213 16,469 450,386
-----------------------------------------------------------
</TABLE>
Berger IPT Funds o June 30, 2000 Semi-Annual Report
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[BERGER FUNDS LOGO]
IPTSA
