<PAGE>
BERGER/BIAM INTERNATIONAL FUND
TABLE OF CONTENTS
Portfolio Manager's Letter 2
Statement of Assets and Liabilities 5
Statement of Operations 6
Statement of Changes in Net Assets 7
Notes to Financial Statements 8
Financial Highlights 10
1<PAGE>
BERGER/BIAM INTERNATIONAL FUND
PORTFOLIO MANAGERS LETTER
Dear Shareholder:
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use
of fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of
economic themes. These themes are derived from across a broad
spectrum of social, demographic, economic and technological, among
other trends. They are an important part of the process that
ultimately allows us to zero-in on the stocks that we believe will be
able to exploit above average growth opportunities over the long term.
FUND REVIEW
The Positive Banking Environment theme proved to be the period's best
performer. Strong corporate cashflows contributed to the increased
dividend yields and supported further acquisitions. In particular,
Spain's Banco De Santander and the Netherlands' ABN-Amro Holdings
announced additional overseas expansion with the acquisition of Latin
American and U.S. banks respectively. National Australia Bank was
helped by the announcement of a new share buy-back program. The stock
was further supported by the continued strength of the Australian long
bond market and by the local low inflation, low growth environment.
Another significant contributor to the outperformance was the
Telecommunications theme. The star performer here, STET, announced
its intention to merge into Telecom Italia, and to de-merge SEAT (the
Italian "Yellow Pages"). Vodafone and Cable & Wireless, both U.K.
based, also performed well. Vodafone reported half year profits up
21%, benefiting from increased penetration in the U.K. cellular
market. Cable & Wireless announced the formation of a new U.K.
telecommunications company with subsidiaries of Nynex, Bell and
Videotron.
The Restructuring Opportunities theme provided an impressive return
for the period. Royal Dutch announced a joint venture with Texaco
covering their respective U.S. refining operations. This will provide
substantial benefits from increased market share and cost savings
potential. Iberdorla, the Spanish utility company, was the best
performing stock over the period, and benefited from a sizable
reduction in its debt level and the strength of the Spanish bond
market. Elf Aquitaine's price moved ahead following the French
Government's placing of its remaining shareholding in the company.
The Leisure Activities theme was another strong performer. Ladbroke
Group, located in the U.K., continued its strong upward movement
following the earlier acquisition of Hilton's international
operations. The increased valuation of EMI, the more attractive
element of the former U.K. based Thorn/EMI Group, stemmed from the
growth in the European and Far Eastern music industries.
On an individual stock basis, Safeway, the U.K. food retailing
company, benefited from increased consumer spending and the re-focus
of investors on domestic retailing companies. San Miguel, the
Philippine-based food and beverage company and one of the newer
additions, also produced solid gains. B.A.T. Industries, a U.K. based
company, recovered strongly during the period, on the back of further
rumors of a settlement between the U.S. Government and the tobacco
industry. Ciba Geigy and Sandoz, both strong performers, completed
their merger in December. The new company, Novartis, a Swiss concern,
will now be one of the leaders in the global pharmaceutical industry.
In contrast to the European financials, our banking stocks in Thailand
did not fair well. This resulted from disenchantment with the local
political environment and foreign borrowing curbs which now have been
reversed. We believe fundamentals eventually will restore the value
of these stocks. Both Bangkok Bank and Thai Farmers Bank are high
quality banks with extremely strong capital bases, high levels of
reserves and low levels of bad debt. Siemens, the German
conglomerate, suffered from the inadequacies of earlier restructuring
and a general malaise in
2<PAGE>
the semi-conductor industry. The limited currency hedging program
continued to protect the portfolio during the period. The role of the
hedging and the currencies covered will be kept under review and
adjusted, as appropriate.
OUTLOOK
The strength of the international equity markets in 1996 was achieved
in a period of stable or falling interest rates, low inflation and
strong earnings growth. Much of the same factors remain in place as
we enter the new year.
In continental Europe, much of the economic focus will be on the
decisions and impact surrounding the EMU, which is to be established
in 1999.
In the Pacific Rim, a number of issues may effect markets. Japan
continues to have problems and, while there is some evidence of a
recovery, economic fundamentals and domestic investor confidence
remain in tatters. Hong Kong is due to change to Chinese control on
July 1 and the impact of this unique event will be watched eagerly.
While returns in the coming year are unlikely to match those of the
period just ended, we remain satisfied with the structure of the
portfolio from a fundamental, value oriented perspective. We will
continue with a fully-invested posture, with the major emphasis on
holdings in the U.K., the core continental European markets and the
Pacific Basin, excluding Japan.
Respectfully submitted,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)
* Investments in the Berger/BIAM International 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.
TOP TEN HOLDINGS AS OF 1/31/97
% of Portfolio's
Company net assets
- ------- ----------
1. Novartis 3.68%
2. National Australia Bank 3.11%
3. ABN Amro Holdings 2.25%
4. B.A.T. Industries 2.17%
5. Development Bank of Singapore 2.12%
6. HSBC Holdings 2.02%
7. Singapore Press Holdings 2.02%
8. Lloyds TSB Group 2.01%
9. Canon 1.97%
10. Mannesmann 1.95%
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BERGER/BIAM
INTERNATIONAL FUND VS. EAFE INDEX AND COST OF LIVING INDEX
(DESCRIPTION OF BERGER/BIAM INTERNATIONAL FUND PERFORMANCE LINE GRAPH)
The following table reflects data presented in a line graph at this
point in the Semi-Annual Report to Shareholders. The graph compares
the value of shares invested in the Berger/BIAM International Fund to
the EAFE Index and to the Cost of Living Index. The graph is based on
an initial investment of $10,000 on July 31, 1989 with all dividends
and capital gains reinvested. Also included is a smaller chart
reflecting the Berger/BIAM International Fund's Average Annual Total
Return as of January 31, 1997 for 1 year - 13.0%, 3 years - 7.8%, 5
years - 13.6% and since inception (July 31, 1989) - 13.3%.
3<PAGE>
Berger/BIAM
International EAFE Cost of
Date Fund Index Living Index
- ---- ---- ----- ------------
7/31/89 $10,000 $10,000 $10,000
7/31/90 13,390 9,328 10,482
7/31/91 12,470 8,567 10,949
7/31/92 14,840 7,933 11,294
7/31/93 16,070 10,169 11,608
7/31/94 18,820 11,636 11,929
7/31/95 21,290 12,482 12,259
7/31/96 22,560 12,961 12,621
1/31/97 25,520 13,092 12,789
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996,
reflect the performance of the pool of assets transferred on that date
into the Berger/BIAM International Portfolio in which all of the
Fund's assets are invested, adjusted at that time for any increase in
expenses anticipated in operating the Fund, including the Fund's pro
rata share of the aggregate annual operating expenses, net of fee
waivers, of the Portfolio. The asset pool was not registered with the
Securities and Exchange Commission and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds.
If the pool had been registered its performance might have been
adversely affected. Performance figures are based on historical
results and are not intended to be indicative of future performance.
The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
4<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<S> <C>
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio")$13,733,038
- ----------------------------------------------------------------------------------------------------
Total Assets 13,733,038
- ----------------------------------------------------------------------------------------------------
LIABILITIES
Accrued administrative fee (Note 2) 5,195
Accrued registration fees 3,807
Accrued 12b-1 distribution & advertising fees (Note 2) 2,726
- ----------------------------------------------------------------------------------------------------
Total Liabilities 11,728
- ----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $13,721,310
====================================================================================================
Capital Shares:
Authorized (Par Value $0.01) unlimited
====================================================================================================
Shares Outstanding 1,309,686
====================================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE$10.48
====================================================================================================
</TABLE>
See notes to financial statements.
5<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Statement of Operations (Unaudited)
For the Period from November 7, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividend income (Net of $3,019 foreign withholding taxes)$30,212
Portfolio expenses (26,955)
- ----------------------------------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 3,257
- ----------------------------------------------------------------------------------------------------
FUND EXPENSES
Administrative fees (Note 2) 12,440
12b-1 distribution & advertising fees (Note 2) 6,750
Registration fees and other 3,908
- ----------------------------------------------------------------------------------------------------
Total Fund Expenses 23,098
- ----------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (19,841)
- ----------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign
currency transactions 35,299
Net change in unrealized appreciation (depreciation) of
investment and foreign currency transactions 463,280
- ----------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment
and Foreign Currency Transactions Allocated from Portfolio498,579
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations$478,738
</TABLE>
See notes to financial statements.
6<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Statement of Changes in Net Assets (Unaudited)
For the Period from November 7, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $(19,841)
Net realized gain (loss) on investment and foreign currency
transactions allocated from portfolio 35,299
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from portfolio 463,280
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations478,738
- ----------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
- ----------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders0
- ----------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 14,934,788
Net asset value of shares issued in reinvestment of dividends0
- ----------------------------------------------------------------------------------------------------
Total 14,934,788
Payments for shares redeemed (1,692,216)
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions 13,242,572
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 13,721,310
Net Assets:
Beginning of period 0
- ----------------------------------------------------------------------------------------------------
End of period $13,721,310
====================================================================================================
Undistributed (distribution in excess of) net investment income (loss)
included in the above $(19,841)
====================================================================================================
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $13,242,572
Accumulated net investment income (loss) (19,841)
Accumulated net realized gain (loss) 35,299
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 463,280
- ----------------------------------------------------------------------------------------------------
Total $13,721,310
====================================================================================================
TRANSACTIONS IN FUND SHARES:
Shares sold 1,471,349
Shares issued to shareholders in reinvestment of dividends 0
- ----------------------------------------------------------------------------------------------------
Total 1,471,349
Shares repurchased (161,663)
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 1,309,686
Shares outstanding, beginning of period 0
- ----------------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,309,686
====================================================================================================
</TABLE>
See notes to financial statements.
7<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Fund (the "Fund") is a series of
the Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware
business trust, organized on May 31, 1996. The Fund and the Trust are
registered under the Investment Company Act of 1940, as amended, as
open-end management investment companies. The Trust is authorized to
issue an unlimited number of shares of beneficial interest in series
or portfolios. Currently, the series comprising the Fund, Berger/BIAM
International Institutional Fund and Berger/BIAM International CORE
Fund, are the only series established under the Trust, although others
may be added in the future. The Trust is also authorized to establish
multiple classes of shares representing differing interests in an
existing or new series. The Fund commenced investment operations on
November 7, 1996 ("Commencement of Investment Operations").
The investment objective of the Fund is long-term capital
appreciation. The Fund will invest all of its investable assets in
the Berger/BIAM International Portfolio (the "Portfolio"), a series of
Berger/BIAM Worldwide Portfolios Trust. The value of such investment
reflects the Fund's proportionate interest in the net assets of the
Portfolio (34% at January 31, 1997). The Portfolio is an open-end
management investment company and has the same investment objective
and policies as the Fund. The performance of the Fund will derive
from the investment performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of portfolio
investments, are included elsewhere in this report and should be read
in conjunction with the Fund's financial statements. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the advisor of
the Portfolio (the "Advisor"). The Advisor has delegated the daily
portfolio management of the Fund to Bank of Ireland Asset Management
(U.S.) Limited ("BIAM" or the "Sub-Advisor"), which owns 50% of the
Advisor. Berger Associates, Inc. ("Berger") also owns 50% of the
Advisor.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The price of the Fund's shares is based on the net asset value of
the Fund, which is determined at the close of the regular trading
session of the New York Stock Exchange (the "Exchange") (normally 4:00
p.m., New York time) each day that the Exchange is open. The per
share net asset value of the Fund is determined by dividing the total
value of its assets, less liabilities, by the total number of shares
outstanding. Since the Fund will invest all of its investable assets
in the Portfolio, the value of the Fund's investable assets will be
equal to the value of its beneficial interest in the Portfolio.
Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statement which accompany these
Financial Statements for the Fund.
Income and Expenses
As an investor in the Portfolio, the Fund is allocated its pro
rata share of the aggregate investment income and annual operating
expenses of the Portfolio including the investment advisory fee,
custodian fees, independent accountants' fees, transfer agent, record
keeping and pricing agent fees. Such investment income and expenses
are allocated on the day the expense is incurred in proportion to the
prior day's relative net assets of the Fund and other investors in the
Portfolio.
Federal Income Taxes
Each series of the Trust is treated as a separate entity for
Federal income tax purposes. The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
shareholders. Therefore, no income tax provision is required.
Dividends and Distributions
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for
Federal income tax purposes, taxable as ordinary income to
shareholders.
8<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
The Fund distributes 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 treatments for net operating losses and
expiring capital loss carryforwards. Accordingly, these permanent
differences in the character of income and distributions between
financial statements and tax basis will be reclassified to
paid-in-capital. At January 31, 1997, no such differences existed.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the
Advisor serves as the administrator of the Fund. Pursuant to such
Agreement, the Fund pays the Advisor a fee at an annual rate equal to
the lesser of 0.45% of its average daily net assets or the Advisor's
annual cost to provide or procure such services plus 0.02% of the
Fund's average daily net assets. Under the Agreement, the Advisor is
responsible, at its own expense, for providing or procuring all
administrative services reasonably necessary for the operation of the
Fund, including recordkeeping and pricing services, custodian
services, transfer agency and dividend disbursing services, tax and
audit services, insurance, legal services, printing and mailing to
shareholders of prospectuses and other required communication and
certain other administrative services. The Advisor has delegated the
administration of the Fund to Berger. For such services, the Advisor
pays Berger a sub-administration fee equal to 0.25% of the Fund's
average daily net assets.
Additionally, the Fund has adopted a plan pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the "Plan"). The Plan
provides for the payment to Berger of a 12b-1 fee of .25% of 1% per
annum of the Fund's average daily net assets to finance activities
primarily intended to result in the sale of the Fund's shares. The
plan provides that such payments will be made to Berger as
compensation rather than reimbursement for actual expenses incurred to
promote the sale of the Fund's shares.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Fund, including
calculating the net asset value of the Fund, and to perform certain
accounting and recordkeeping functions that it requires. In addition,
IFTC has been appointed to serve as the Fund's custodian, transfer
agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and
directors of the Advisor or Sub-Advisor. Trustees who are not
affiliated with the Portfolio's Advisor or Sub-Advisor are compensated
for their services according to a fee schedule, allocated among the
Berger and Berger/BIAM Funds, which includes an annual fee component
and a per meeting component. Such fees are allocated directly to the
Portfolio and indirectly to the Fund.
9<PAGE>
BERGER/BIAM INTERNATIONAL FUND
Financial Highlights (Unaudited)
For a Share Outstanding Throughout the Period November 7, 1996
(commencement of investment operations) to January 31, 1997
<TABLE>
<S> <C>
Net asset value, beginning of period $10.00
Income from investment operations:
Net investment income (.02)
Net realized and unrealized gain (loss) on investment and foreign.50
currency transactions allocated from Portfolio
- ----------------------------------------------------------------------------------------------------
Total from investment operations .48
- ----------------------------------------------------------------------------------------------------
Net asset value, end of period $10.48
====================================================================================================
Total return<F*> 4.80%
====================================================================================================
Ratios/Supplementary Data:
Net assets, end of period $13,721,310
Ratio of expenses to average net assets<F**> 1.81%
Ratio of net investment income (loss) to average net assets<F**>(.72)%
<FN>
<F*> Based on operations for the period shown and, accordingly, is not representative of a full year.
<F**> Annualized.
</TABLE>
See notes to financial statements.
10<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Semi-Annual Report
For the period from October 11, 1996 (commencement of
investment operations) to January 31, 1997
(The following pages should be read in conjunction
with the Berger/BIAM International Fund Semi-Annual
Financial Statements)
TABLE OF CONTENTS
Schedule of Investments 12
Statement of Assets and Liabilities 15
Statement of Operations 16
Statement of Changes in Net Assets 17
Notes to Financial Statements 18
11<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited)
January 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ---------------------------------------------------------------------------------------------------------
<S> <S> <C>
COMMON STOCK (88.0%)
AUSTRALIA (7.3%)
43,770 Broken Hill Proprietary Resources $ 600,233
105,000 National Australia Bank Financials 1,269,323
128,780 News Corporation Media 652,184
64,550 Western Mining Resources 396,812
-----------
2,918,552
-----------
FINLAND (0.7%)
15,000 Upm Kymmene Paper, Packaging & Printing 291,917
-----------
291,917
-----------
FRANCE (1.6%)
2,950 Elf Aquitaine Utilities 285,973
6,380 Michelin Auto Goods 365,213
-----------
651,186
-----------
GERMANY (5.3%)
17,020 Hoechst Healthcare 714,314
2,059 Mannesmann Electrical/Engineering 796,319
6,500 Siemens Electrical/Engineering 318,596
6,110 Veba Utilities 337,684
-----------
2,166,913
-----------
GREAT BRITAIN (27.7%)
114,300 B.A.T. Industries Tobacco/Financial Services 885,330
42,400 Barclays Bank Financials 784,531
75,500 BTR Conglomerates 312,658
30,000 Cable & Wireless Telecommunications 223,479
66,550 Cadbury Schweppes Food Manufacturing 502,147
26,500 Chubb Security Security 135,849
25,850 EMI Group Leisure & Entertainment 501,495
60,300 General Electric Electrical/Engineering 376,259
29,400 Glaxo Wellcome Healthcare 470,517
44,050 Granada Group Leisure & Entertainment 633,701
49,000 Grand Metropolitan Retailer/Consumer Goods 362,660
19,910 Guinness Consumer Goods-Non Durables 138,108
74,900 Ladbroke Group Leisure & Entertainment 275,376
106,750 Lloyds TSB Group Financials 820,864
38,700 Medeva Healthcare 178,552
41,800 Premier Farnell Distributor of Components 353,567
68,300 Prudential Insurance 589,755
62,350 Safeway Retailer/Consumer Goods 381,559
64,400 Scottish Power Utilities 385,851
37,200 Shell Transport & Trading Company Utilities 641,235
</TABLE>
12<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited) - Continued
January 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ---------------------------------------------------------------------------------------------------------
<S> <S> <C>
42,341 Siebe Electrical/Engineering $ 712,217
65,200 TI Group Electrical/Engineering 577,610
79,500 Vodafone Group Telecommunications 345,142
26,875 Zeneca Group Healthcare 776,689
11,365,151
HONG KONG (2.0%)
35,600 HSBC Holdings Financials 824,627
824,627
INDONESIA (4.8%)
126,000 Gudang Garam Tobacco 615,022
51,800 Hero Supermarket Retailer/Consumer Goods 47,952
125,000 HM Sampoerna Tobacco 783,715
114,000 Indocement Tunggal Infrastructure/Property 170,292
100,000 Mayora Indah Food Manufacturing 43,130
167,000 Telekomunikasi Indonesia Telecommunications 298,653
1,958,764
IRELAND (1.3%)
28,750 Allied Irish Banks Financials 196,958
131,800 Smurfit (Jefferson) Group Paper, Packaging & Printing 354,048
551,006
ITALY (1.1%)
82,000 Seat Paper, Packaging & Printing 31,589
82,000 STET Telecommunications 404,658
436,247
JAPAN (2.0%)
38,000 Canon Retailer/Consumer Goods 804,116
804,116
MALAYSIA (4.2%)
99,000 DCB Holdings Financials 374,366
47,000 Hume Industries Malaysia Infrastructure/Property 296,846
137,400 Sime Darby Conglomerates 511,284
60,000 United Engineers Malaysia Infrastructure/Property 538,257
1,720,753
MEXICO (0.7%)
133,520 Grupo Financiero Banamex - Class B Financials 273,204
273,204
NETHERLANDS (9.5%)
13,950 ABN Amro Holdings Financials 917,424
2,620 DSM Chemicals 245,011
45,550 Elsevier Media 700,046
20,752 ING Groep Financials 780,989
</TABLE>
13<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited) - Continued
January 31, 1997
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ---------------------------------------------------------------------------------------------------------
<S> <S> <C>
12,000 Koninklijke PTT Nederland Telecommunications $ 435,320
3,025 Nutricia Ver Bedrijven Food Manufacturing 433,691
2,140 Royal Dutch Petroleum Utilities 374,215
-----------
3,886,696
-----------
PHILIPPINES (0.7%)
75,700 San Miguel - Class B Food & Drinks 304,523
-----------
304,523
-----------
SINGAPORE (7.4%)
79,000 City Development Infrastructure/Property 791,515
62,412 Development Bank Of Singapore Financials 864,800
54,600 Fraser & Neave Food & Drinks 531,528
41,100 Singapore Press Holdings Media 823,577
-----------
3,011,420
-----------
SPAIN (0.8%)
5,030 Banco Santander Financials 326,211
-----------
326,211
-----------
SWEDEN (0.7%)
5,900 Pharmacia & Upjohn Healthcare 218,488
4,550 Stora Kopparberg -Cl A Paper, Packaging & Printing 57,733
-----------
276,221
-----------
SWITZERLAND (8.5%)
874 Alusuisse Lonza Holding Conglomerates 717,742
1,313 Novartis Healthcare 1,503,466
72 Roche Holding Healthcare 631,991
640 Schw Ruckverischer Insurance 630,333
-----------
3,483,532
-----------
THAILAND (1.7%)
48,100 Bangkok Bank Financials 415,839
46,200 Thai Farmers Bank Financials 267,499
-----------
683,338
-----------
PREFERRED STOCKS (0.2%)
AUSTRALIA (0.2%)
19,750 News Corporation Media 82,095
-----------
Total Investments (Cost $34,387,473*) - 88.2% $36,016,472
Other Assets, Less Liabilities - 11.8% 4,834,798
Net Assets - 100% $40,851,270
* Also represents cost for Federal income tax purposes.
</TABLE>
See notes to financial statements.
14<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<S> <C>
ASSETS
Investments at value (cost $34,387,473) $ 36,016,472
Cash 3,744,601
Foreign currency at value (cost $651,214) 640,200
Net unrealized appreciation on open forward currency contracts377,460
Receivables:
Beneficial Interests sold 558,668
Dividends 84,459
Investment securities sold 704
- ----------------------------------------------------------------------------------------------------
Total Assets 41,422,564
- ----------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 535,064
Accrued advisory fee (Note 2) 36,230
- ----------------------------------------------------------------------------------------------------
Total Liabilities 571,294
- ----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS$40,851,270
====================================================================================================
</TABLE>
See notes to financial statements.
15<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividend income (Net of $9,397 foreign withholding taxes)$ 93,021
- ----------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 75,778
Postage, printing & reports 4,566
Insurance & bonds 3,750
Trustees' fees & expenses (Note 2) 243
Miscellaneous 112
- ----------------------------------------------------------------------------------------------------
Total Expenses 84,449
Less expenses reimbursed by Advisor (Note 2) (722)
- ----------------------------------------------------------------------------------------------------
Expenses - Net 83,727
- ----------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 9,294
- ----------------------------------------------------------------------------------------------------
REALIZED GAIN (LOSS) ON
Investment Transactions 53,896
Foreign Currency Transactions 33,050
- ----------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 86,946
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 1,062,322
Foreign Currency Contracts and Translations 373,135
- ----------------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation)1,435,457
Net Increase (Decrease) in Net Assets Resulting from Operations$ 1,531,697
====================================================================================================
</TABLE>
See notes to financial statements.
16<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $ 9,294
Net realized gain (loss) on investments and foreign currency transactions86,946
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions 1,435,457
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations1,531,697
- ----------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
- ----------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Investors'0
- ----------------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 41,486,881
Withdrawals (2,167,308)
- ----------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Investors' Transactions39,319,573
- ----------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 40,851,270
NET ASSETS:
Beginning of period 0
- ----------------------------------------------------------------------------------------------------
End of period $40,851,270
====================================================================================================
</TABLE>
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
RATIO TO AVERAGE NET ASSETS:
Gross Expenses*~ 0.99%
Net Expenses*~ 0.98%
Net Investment Income~ 0.11%
Portfolio Turnover+ 7.38%
Average Commission Rate $.0254
* Net expenses reflect the Portfolio's gross (total) expenses,
reduced by fee waivers and expense reimbursements totaling $722.
~ Annualized.
+ Based on operations for the period shown and, accordingly, is not
representative of a full year.
See notes to financial statements.
17<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Portfolio is a series of
the Berger/BIAM Worldwide Portfolios Trust (the "Trust") , which was
organized as a Delaware business trust on May 31, 1996. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the investment
advisor of the Portfolio ("BBOI"). The Portfolio commenced investment
operations on October 11, 1996 ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to
the Berger/BIAM International Institutional Fund in exchange for
portfolio assets with an aggregate value of $4,481,609 which were
transferred from the Pooled Trust of Citizens Bank of New Hampshire
("Citizens NH") to the Berger/BIAM International Institutional Fund
and, in turn, transferred to the Portfolio. Such transaction was a
tax-free exchange. Citizens NH is an affiliate of Bank of Ireland
Asset Management (U.S.) Limited ("BIAM"), which was the investment
sub-advisor to the Pooled Trust and is the investment sub-advisor to
the Portfolio.
The Portfolio is advised by BBOI, which has delegated daily
portfolio management of the Portfolio to BIAM. Berger Associates, Inc.
("Berger") and BIAM each own 50% of BBOI.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The Portfolio's securities and other assets are valued at the
close of the regular trading session of the New York Stock Exchange
(the "Exchange") (normally 4:00 p.m. New York time) each day the
Exchange is open. The Portfolio's securities and other assets are
valued as follows: securities listed or traded primarily on national
exchanges, the Nasdaq Stock market and foreign exchanges are valued at
the last sale price on such markets, or, if such a price is lacking
for the trading period immediately preceding the time of
determination, such securities are valued at the mean of their current
bid and asked prices. Securities that are traded in the
over-the-counter market are valued at the mean between their current
bid and asked prices. The market value of individual securities held
by the Portfolio will be determined by using pricing services which
provide market prices to other mutual funds or, as needed, by
obtaining market quotations from independent broker/dealers.
Short-term money market securities maturing within 60 days are valued
on the amortized cost basis, which approximates market value. All
assets and liabilities initially expressed in terms of non-U.S. dollar
currencies are translated into U.S. dollars at the prevailing market
rates as quoted by one or more banks or dealers shortly before the
close of the Exchange. Securities and assets for which quotations are
not readily available are valued at fair values determined in good
faith pursuant to consistently applied procedures established by the
trustees.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the
Exchange. The values of foreign securities used in computing the net
asset value of the shares in the portfolio are determined as of the
earlier of such market close or the closing time of the Exchange.
Occasionally, events affecting the value of such securities may occur
between the times at which they are determined and the close of the
Exchange, or when the foreign market on which such securities trade is
closed but the Exchange is open, which will not be reflected in the
computation of net asset value. If during such periods, events occur
which materially affect the value of such securities, the securities
will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the
trustees.
Federal Income Taxes
The Portfolio intends to be treated as a partnership for Federal
income tax purposes. As such, each investor in the Portfolio will be
taxable on its share of the Portfolio's ordinary income and capital
gains. It is intended that the Portfolio's assets will be managed in
such a way that an investor in the Portfolio will be able to satisfy
the requirements of Sub-Chapter M of the Internal Revenue Code.
18<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
Security Gains and Losses
Gains and losses are computed on the identified cost basis for
both financial statement and Federal income tax purposes for all
securities. 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 and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis and includes amortization of discounts.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
Forward Currency Contracts
The Portfolio may hold forward foreign currency exchange
contracts for the purpose of hedging the Portfolio against exposure to
market value fluctuations in foreign currencies. The use of such
instruments may involve certain risks as a result of unanticipated
movements in the market. A lack of correlation between the value of
such instruments and the assets being hedged, or unexpected adverse
price movements, could render the Portfolio's hedging strategy
unsuccessful. In addition, there can be no assurance that the
Portfolio will be able to enter into an offset or termination of the
contracts at any particular time.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio
pursuant to an agreement which provides for an investment advisory fee
to be paid to BBOI at the annual rate of .90 of 1% of the Portfolio's
average daily net assets. Until at least April 30, 1998, BBOI has
agreed voluntarily to waive its advisory fee to the extent that the
Portfolio's normal operating expenses in any fiscal year (including
the investment advisory fee and custodian fees, but excluding
brokerage commissions, interest, taxes and extraordinary expenses)
exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging
for all managerial and administrative services necessary for the
operations of the Portfolio. BBOI has delegated the daily portfolio
management of the Portfolio to BIAM. For such services, BBOI pays BIAM
a sub-advisory fee equal to .45% of the average daily net assets of
the Portfolio.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Portfolio, including
calculating the net asset value of the Portfolio, and to perform
certain accounting and recordkeeping functions required by the
Portfolio. In addition, IFTC has been appointed to serve as the
Portfolio's custodian and transfer agent. For custodian,
recordkeeping and pricing services, the Portfolio pays a fee directly
to IFTC based on a percentage of its net assets, subject to certain
minimums, and reimburses IFTC for certain out-of-pocket expenses.
Certain officers and trustees of the Trust are officers and
directors of BBOI or BIAM. Trustees who are not affiliated with BBOI
or BIAM are compensated for their services according to a fee
schedule, allocated among the Berger and Berger/BIAM Funds, which
includes an annual fee component and a per meeting component. Such
fees are allocated directly to the Portfolio and indirectly to each
fund.
19<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities (excluding
short-term securities) during the period from Commencement of
Investment Operations to January 31, 1997 were as follows:
Purchases of Sales of
Investment Investment
Securities Securities
------------ ------------
$36,258,306 $1,924,729
There were no purchases or sales of long-term U.S. Government
securities during the period.
At January 31, 1997, the composition of unrealized appreciation
(the excess of value over tax cost) and unrealized depreciation (the
excess of tax cost over value) for securities held was as follows:
Appreciation Depreciation Net
------------ ------------ ------------
$2,473,406 $(844,407) $1,628,999
20<PAGE>
TRUSTEES OF BERGER/BIAM WORLDWIDE FUNDS TRUST
MICHAEL OWEN, CHAIRMAN * DENNIS E. BALDWIN
WILLIAM M.B. BERGER * LOUIS R. BINDNER, P.E. * KATHERINE A. CATTANACH
LUCY BLACK CREIGHTON * DENIS CURRAN * PAUL R. KNAPP * GERARD M. LAVIN
HARRY T. LEWIS, JR. * WILLIAM SINCLAIRE
OFFICERS:
GERARD M. LAVIN
President of the Trust
CRAIG D. CLOYED
Vice President of the Trust
KEVIN R. FAY
Vice President, Secretary and Treasurer of the Trust
JANICE M. TEAGUE
Assistant Secretary of the Trust
DAVID J. SCHULTZ
SUSAN G. KOHLMAN
Assistant Treasurers of the Trust
INVESTMENT ADVISOR
BBOI Worldwide LLC
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS
Together we can move mountains...the world over.(TM)
(C)1997 Berger Associates, Inc.
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
TABLE OF CONTENTS
Portfolio Manager's Letter 2
Statement of Assets and Liabilities 5
Statement of Operations 6
Statement of Changes in Net Assets 7
Notes to Financial Statements 8
Financial Highlights 10
1
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
PORTFOLIO MANAGERS LETTER
Dear Shareholder:
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use
of fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of
economic themes. These themes are derived from across a broad
spectrum of social, demographic, economic and technological, among
other trends. They are an important part of the process that
ultimately allows us to zero-in on the stocks that we believe will be
able to exploit above average growth opportunities over the long term.
FUND REVIEW
The Positive Banking Environment theme proved to be the period's best
performer. Strong corporate cashflows contributed to the increased
dividend yields and supported further acquisitions. In particular,
Spain's Banco De Santander and the Netherlands' ABN-Amro Holdings
announced additional overseas expansion with the acquisition of Latin
American and U.S. banks respectively. National Australia Bank was
helped by the announcement of a new share buy-back program. The stock
was further supported by the continued strength of the Australian long
bond market and by the local low inflation, low growth environment.
Another significant contributor to the outperformance was the
Telecommunications theme. The star performer here, STET, announced
its intention to merge into Telecom Italia, and to de-merge SEAT (the
Italian "Yellow Pages"). Vodafone and Cable & Wireless, both U.K.
based, also performed well. Vodafone reported half year profits up
21%, benefiting from increased penetration in the U.K. cellular
market. Cable & Wireless announced the formation of a new U.K.
telecommunications company with subsidiaries of Nynex, Bell and
Videotron.
The Restructuring Opportunities theme provided an impressive return
for the period. Royal Dutch announced a joint venture with Texaco
covering their respective U.S. refining operations. This will provide
substantial benefits from increased market share and cost savings
potential. Iberdorla, the Spanish utility company, was the best
performing stock over the period, and benefited from a sizable
reduction in its debt level and the strength of the Spanish bond
market. Elf Aquitaine's price moved ahead following the French
Government's placing of its remaining shareholding in the company.
The Leisure Activities theme was another strong performer. Ladbroke
Group, located in the U.K., continued its strong upward movement
following the earlier acquisition of Hilton's international
operations. The increased valuation of EMI, the more attractive
element of the former U.K. based Thorn/EMI Group, stemmed from the
growth in the European and Far Eastern music industries.
On an individual stock basis, Safeway, the U.K. food retailing
company, benefited from increased consumer spending and the re-focus
of investors on domestic retailing companies. San Miguel, the
Philippine-based food and beverage company and one of the newer
additions, also produced solid gains. B.A.T. Industries, a U.K. based
company, recovered strongly during the period, on the back of further
rumors of a settlement between the U.S. Government and the tobacco
industry. Ciba Geigy and Sandoz, both strong performers, completed
their merger in December. The new company, Novartis, a Swiss concern,
will now be one of the leaders in the global pharmaceutical industry.
In contrast to the European financials, our banking stocks in Thailand
did not fair well. This resulted from disenchantment with the local
political environment and foreign borrowing curbs which now have been
reversed. We believe fundamentals eventually will restore the value
of these stocks. Both Bangkok Bank and Thai Farmers Bank are high
quality banks with extremely strong capital bases, high levels of
reserves and low levels of bad debt. Siemens, the German
conglomerate, suffered from the inadequacies of earlier restructuring
and a general malaise in 2<PAGE>
the semi-conductor industry. The limited currency hedging program
continued to protect the portfolio during the period. The role of the
hedging and the currencies covered will be kept under review and
adjusted, as appropriate.
OUTLOOK
The strength of the international equity markets in 1996 was achieved
in a period of stable or falling interest rates, low inflation and
strong earnings growth. Much of the same factors remain in place as
we enter the new year.
In continental Europe, much of the economic focus will be on the
decisions and impact surrounding the EMU, which is to be established
in 1999.
In the Pacific Rim, a number of issues may effect markets. Japan
continues to have problems and, while there is some evidence of a
recovery, economic fundamentals and domestic investor confidence
remain in tatters. Hong Kong is due to change to Chinese control on
July 1 and the impact of this unique event will be watched eagerly.
While returns in the coming year are unlikely to match those of the
period just ended, we remain satisfied with the structure of the
portfolio from a fundamental, value oriented perspective. We will
continue with a fully-invested posture, with the major emphasis on
holdings in the U.K., the core continental European markets and the
Pacific Basin, excluding Japan.
Respectfully submitted,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)
* Investments in the Berger/BIAM International Institutional 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.
TOP TEN HOLDINGS AS OF 1/31/97
% of Portfolio's
Company net assets
- ------- ----------
1. Novartis 3.68%
2. National Australia Bank 3.11%
3. ABN Amro Holdings 2.25%
4. B.A.T. Industries 2.17%
5. Development Bank of Singapore 2.12%
6. HSBC Holdings 2.02%
7. Singapore Press Holdings 2.02%
8. Lloyds TSB Group 2.01%
9. Canon 1.97%
10. Mannesmann 1.95%
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BERGER/BIAM
INTERNATIONAL INSTITUTIONAL FUND VS. EAFE INDEX AND COST OF LIVING
INDEX (DESCRIPTION OF BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
PERFORMANCE LINE GRAPH)
The following table reflects data presented in a line graph at this
point in the Semi-Annual Report to Shareholders. The graph compares
the value of shares invested in the Berger/BIAM International
Institutional Fund to the EAFE Index and to the Cost of Living Index.
The graph is based on an initial investment of $10,000 on July 31,
1989 with all dividends and capital gains reinvested. Also included
is a smaller chart reflecting the Berger/BIAM International
Institutional Fund's Average Annual Total Return as of January 31,
1997 for 1 year - 13.4%, 3 years - 8.2%, 5 years - 14.0% and since
inception (July 31, 1989)- 13.7%.
3<PAGE>
Berger/BIAM
International EAFE Cost of
Date Institutional Fund Index Living Index
- ---- ------------------ ----- ------------
7/31/89 $10,000 $10,000 $10,000
7/31/90 13,440 9,328 10,482
7/31/91 12,570 8,567 10,949
7/31/92 15,010 7,933 11,294
7/31/93 16,330 10,169 11,608
7/31/94 19,200 11,636 11,929
7/31/95 21,800 12,482 12,259
7/31/96 23,180 12,961 12,621
1/31/97 26,266 13,092 12,789
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996,
reflect the performance of the pool of assets transferred on that date
into the Berger/BIAM International Portfolio in which all of the
Fund's assets are invested, adjusted at that time for any increase in
expenses anticipated in operating the Fund, including the Fund's pro
rata share of the aggregate annual operating expenses, net of fee
waivers, of the Portfolio. The asset pool was not registered with the
Securities and Exchange Commission and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds.
If the pool had been registered its performance might have been
adversely affected. Performance figures are based on historical
results and are not intended to be indicative of future performance.
The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
4
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<S> <C>
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio") $ 5,296,307
- -----------------------------------------------------------------------------------------------
Total Assets 5,296,307
- -----------------------------------------------------------------------------------------------
LIABILITIES
Accrued administrative fee (Note 2) 1,578
- -----------------------------------------------------------------------------------------------
Total Liabilities 1,578
- -----------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 5,294,729
===============================================================================================
Capital Shares:
Authorized (Par Value $0.01) unlimited
===============================================================================================
Shares Outstanding 499,351
===============================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $10.60
===============================================================================================
</TABLE>
See notes to financial statements.
5
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Statement of Operations (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividend income (Net of $1,528 foreign withholding taxes) $ 16,298
Portfolio expenses (15,396)
- -----------------------------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 902
- -----------------------------------------------------------------------------------------------
FUND EXPENSES
Administrative fees (Note 2) 5,563
- -----------------------------------------------------------------------------------------------
Total Fund Expenses 5,563
- -----------------------------------------------------------------------------------------------
Net Investment Income (Loss) (4,661)
- -----------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign
currency transactions 7,618
Net change in unrealized appreciation (depreciation) of
investment and foreign currency transactions 296,830
- -----------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment
and Foreign Currency Transactions Allocated from Portfolio 304,448
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 299,787
===============================================================================================
</TABLE>
See notes to financial statements.
6
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Statement of Changes in Net Assets (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $ (4,661)
Net realized gain (loss) on investment and foreign currency
transactions allocated from portfolio 7,618
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from portfolio 296,830
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 299,787
- -----------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
- -----------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders 0
- -----------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 5,456,522
Net asset value of shares issued in reinvestment of dividends 0
- -----------------------------------------------------------------------------------------------
Total 5,456,522
Payments for shares redeemed (461,580)
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions 4,994,942
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 5,294,729
Net Assets:
Beginning of period 0
- -----------------------------------------------------------------------------------------------
End of period $ 5,294,729
===============================================================================================
Undistributed (distribution in excess of) net investment income (loss)
included in the above $ (4,661)
===============================================================================================
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $ 4,994,942
Accumulated net investment income (loss) (4,661)
Accumulated net realized gain (loss) 7,618
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 296,830
- -----------------------------------------------------------------------------------------------
Total $ 5,294,729
===============================================================================================
TRANSACTIONS IN FUND SHARES:
Shares sold 543,467
Shares issued to shareholders in reinvestment of dividends 0
- -----------------------------------------------------------------------------------------------
Total 543,467
Shares repurchased (44,116)
- -----------------------------------------------------------------------------------------------
Net increase (decrease) in shares 499,351
Shares outstanding, beginning of period 0
- -----------------------------------------------------------------------------------------------
Shares outstanding, end of period 499,351
===============================================================================================
</TABLE>
See notes to financial statements.
7
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Institutional Fund (the "Fund") is
a series of the Berger/BIAM Worldwide Funds Trust (the "Trust"), a
Delaware business trust, organized on May 31, 1996. The Fund and the
Trust are registered under the Investment Company Act of 1940, as
amended, as open-end management investment companies. The Trust is
authorized to issue an unlimited number of shares of beneficial
interest in series or portfolios. Currently, the series comprising
the Fund, Berger/BIAM International Fund and Berger/BIAM International
CORE Fund, are the only series established under the Trust, although
others may be added in the future. The Trust is also authorized to
establish multiple classes of shares representing differing interests
in an existing or new series. The Fund commenced investment
operations on October 11, 1996 ("Commencement of Investment
Operations").
The investment objective of the Fund is long-term capital
appreciation. The Fund will invest all of its investable assets in
the Berger/BIAM International Portfolio (the "Portfolio"), a series of
Berger/BIAM Worldwide Portfolios Trust. The value of such investment
reflects the Fund's proportionate interest in the net assets of the
Portfolio (13% at January 31, 1997). The Portfolio is an open-end
management investment company and has the same investment objective
and policies as the Fund. The performance of the Fund will derive
from the investment performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of portfolio
investments, are included elsewhere in this report and should be read
in conjunction with the Fund's financial statements. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the advisor of
the Portfolio (the "Advisor"). The Advisor has delegated the daily
portfolio management of the Fund to Bank of Ireland Asset Management
(U.S.) Limited ("BIAM" or the "Sub-Advisor"), which owns 50% of the
Advisor. Berger Associates, Inc. ("Berger") also owns 50% of the
Advisor.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The price of the Fund's shares is based on the net asset value of
the Fund, which is determined at the close of the regular trading
session of the New York Stock Exchange (the "Exchange") (normally 4:00
p.m., New York time) each day that the Exchange is open. The per
share net asset value of the Fund is determined by dividing the total
value of its assets, less liabilities, by the total number of shares
outstanding. Since the Fund will invest all of its investable assets
in the Portfolio, the value of the Fund's investable assets will be
equal to the value of its beneficial interest in the Portfolio.
Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statement which accompany these
Financial Statements for the Fund.
Income and Expenses
As an investor in the Portfolio, the Fund is allocated its pro
rata share of the aggregate investment income and annual operating
expenses of the Portfolio including the investment advisory fee,
custodian fees, independent accountants' fees, transfer agent, record
keeping and pricing agent fees. Such investment income and expenses
are allocated on the day the expense is incurred in proportion to the
prior day's relative net assets of the Fund and other investors in the
Portfolio.
Federal Income Taxes
Each series of the Trust is treated as a separate entity for
Federal income tax purposes. The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
shareholders. Therefore, no income tax provision is required.
Dividends and Distributions
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for
Federal income tax purposes, taxable as ordinary income to
shareholders.
8
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
The Fund distributes 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 treatments for net operating losses and
expiring capital loss carryforwards. Accordingly, these permanent
differences in the character of income and distributions between
financial statements and tax basis will be reclassified to
paid-in-capital. At January 31, 1997, no such differences existed.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the
Advisor serves as the administrator of the Fund. Pursuant to such
Agreement, the Fund pays the Advisor a fee at an annual rate equal to
the lesser of 0.35% of its average daily net assets or the Advisor's
annual cost to provide or procure such services plus 0.02% of the
Fund's average daily net assets. Under the Agreement, the Advisor is
responsible, at its own expense, for providing or procuring all
administrative services reasonably necessary for the operation of the
Fund, including recordkeeping and pricing services, custodian
services, transfer agency and dividend disbursing services, tax and
audit services, insurance, legal services, printing and mailing to
shareholders of prospectuses and other required communication and
certain other administrative services. The Advisor has delegated the
administration of the Fund to Berger. For such services, the Advisor
pays Berger a sub-administration fee equal to 0.25% of the Fund's
average daily net assets.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Fund, including
calculating the net asset value of the Fund, and to perform certain
accounting and recordkeeping functions that it requires. In addition,
IFTC has been appointed to serve as the Fund's custodian, transfer
agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and
directors of the Advisor or Sub-Advisor. Trustees who are not
affiliated with the Portfolio's Advisor or Sub-Advisor are compensated
for their services according to a fee schedule, allocated among the
Berger and Berger/BIAM Funds, which includes an annual fee component
and a per meeting component. Such fees are allocated directly to the
Portfolio and indirectly to the Fund.
9
<PAGE>
BERGER/BIAM INTERNATIONAL INSTITUTIONAL FUND
Financial Highlights (Unaudited)
For a Share Outstanding Throughout the Period October 11, 1996
(commencement of investment operations) to January 31, 1997
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.00
- -----------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (.01)
Net realized and unrealized gain (loss) on investment and foreign .61
currency transactions allocated from Portfolio
- -----------------------------------------------------------------------------------------------
Total from investment operations .60
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $10.60
===============================================================================================
Total return* 6.00%
===============================================================================================
Ratios/Supplementary Data:
Net assets, end of period $5,294,729
Ratio of expenses to average net assets~ 1.32%
Ratio of net investment income (loss) to average net assets~ (.29)%
</TABLE>
* Based on operations for the period shown and, accordingly, is not
representative of a full year.
~ Annualized.
See notes to financial statements.
10
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Semi-Annual Report
For the period from October 11, 1996 (commencement of
investment operations) to January 31, 1997
(The following pages should be read in conjunction
with the Berger/BIAM International Institutional Semi-Annual
Financial Statements)
TABLE OF CONTENTS
Schedule of Investments 12
Statement of Assets and Liabilities 15
Statement of Operations 16
Statement of Changes in Net Assets 17
Notes to Financial Statements 18
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited)
January 31, 1997
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- --------------------------------------------------------------------------------------------------------------
COMMON STOCKS (88.0%)
<C> <S> <C>
AUSTRALIA (7.3%)
43,770 Broken Hill Proprietary Resources $ 600,233
105,000 National Australia Bank Financials 1,269,323
128,780 News Corporation Media 652,184
64,550 Western Mining Resources 396,812
----------
2,918,552
----------
FINLAND (0.7%)
15,000 Upm Kymmene Paper, Packaging & Printing 291,917
----------
291,917
----------
FRANCE (1.6%)
2,950 Elf Aquitaine Utilities 285,973
6,380 Michelin Auto Goods 365,213
----------
651,186
----------
GERMANY (5.3%)
17,020 Hoechst Healthcare 714,314
2,059 Mannesmann Electrical/Engineering 796,319
6,500 Siemens Electrical/Engineering 318,596
6,110 Veba Utilities 337,684
----------
2,166,913
----------
GREAT BRITAIN (27.7%)
114,300 B.A.T. Industries Tobacco/Financial Services 885,330
42,400 Barclays Bank Financials 784,531
75,500 BTR Conglomerates 312,658
30,000 Cable & Wireless Telecommunications 223,479
66,550 Cadbury Schweppes Food Manufacturing 502,147
26,500 Chubb Security Security 135,849
25,850 EMI Group Leisure & Entertainment 501,495
60,300 General Electric Electrical/Engineering 376,259
29,400 Glaxo Wellcome Healthcare 470,517
44,050 Granada Group Leisure & Entertainment 633,701
49,000 Grand Metropolitan Retailer/Consumer Goods 362,660
19,910 Guinness Consumer Goods-Non Durables 138,108
74,900 Ladbroke Group Leisure & Entertainment 275,376
106,750 Lloyds TSB Group Financials 820,864
38,700 Medeva Healthcare 178,552
41,800 Premier Farnell Distributor of Components 353,567
68,300 Prudential Insurance 589,755
62,350 Safeway Retailer/Consumer Goods 381,559
64,400 Scottish Power Utilities 385,851
37,200 Shell Transport & Trading Company Utilities 641,235
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- --------------------------------------------------------------------------------------------------------------
<C> <S> <C>
42,341 Siebe Electrical/Engineering $ 712,217
65,200 TI Group Electrical/Engineering 577,610
79,500 Vodafone Group Telecommunications 345,142
26,875 Zeneca Group Healthcare 776,689
----------
11,365,151
----------
HONG KONG (2.0%)
35,600 HSBC Holdings Financials 824,627
----------
824,627
----------
INDONESIA (4.8%)
126,000 Gudang Garam Tobacco 615,022
51,800 Hero Supermarket Retailer/Consumer Goods 47,952
125,000 HM Sampoerna Tobacco 783,715
114,000 Indocement Tunggal Infrastructure/Property 170,292
100,000 Mayora Indah Food Manufacturing 43,130
167,000 Telekomunikasi Indonesia Telecommunications 298,653
---------
1,958,764
---------
IRELAND (1.3%)
28,750 Allied Irish Banks Financials 196,958
131,800 Smurfit (Jefferson) Group Paper, Packaging & Printing 354,048
---------
551,006
---------
ITALY (1.1%)
82,000 Seat Paper, Packaging & Printing 31,589
82,000 STET Telecommunications 404,658
--------
436,247
--------
JAPAN (2.0%)
38,000 Canon Retailer/Consumer Goods 804,116
--------
804,116
--------
MALAYSIA (4.2%)
99,000 DCB Holdings Financials 374,366
47,000 Hume Industries Malaysia Infrastructure/Property 296,846
137,400 Sime Darby Conglomerates 511,284
60,000 United Engineers Malaysia Infrastructure/Property 538,257
----------
1,720,753
----------
MEXICO (0.7%)
133,520 Grupo Financiero Banamex - Class B Financials 273,204
----------
273,204
----------
NETHERLANDS (9.5%)
13,950 ABN Amro Holdings Financials 917,424
2,620 DSM Chemicals 245,011
45,550 Elsevier Media 700,046
20,752 ING Groep Financials 780,989
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- --------------------------------------------------------------------------------------------------------------
<C> <S> <C>
12,000 Koninklijke PTT Nederland Telecommunications $ 435,320
3,025 Nutricia Ver Bedrijven Food Manufacturing 433,691
2,140 Royal Dutch Petroleum Utilities 374,215
-----------
3,886,696
-----------
PHILIPPINES (0.7%)
75,700 San Miguel - Class B Food & Drinks 304,523
-----------
304,523
-----------
SINGAPORE (7.4%)
79,000 City Development Infrastructure/Property 791,515
62,412 Development Bank Of Singapore Financials 864,800
54,600 Fraser & Neave Food & Drinks 531,528
41,100 Singapore Press Holdings Media 823,577
-----------
3,011,420
-----------
SPAIN (0.8%)
5,030 Banco Santander Financials 326,211
-----------
326,211
-----------
SWEDEN (0.7%)
5,900 Pharmacia & Upjohn Healthcare 218,488
4,550 Stora Kopparberg -Cl A Paper, Packaging & Printing 57,733
-----------
276,221
-----------
SWITZERLAND (8.5%)
874 Alusuisse Lonza Holding Conglomerates 717,742
1,313 Novartis Healthcare 1,503,466
72 Roche Holding Healthcare 631,991
640 Schw Ruckverischer Insurance 630,333
-----------
3,483,532
-----------
THAILAND (1.7%)
48,100 Bangkok Bank Financials 415,839
46,200 Thai Farmers Bank Financials 267,499
-----------
683,338
-----------
PREFERRED STOCKS (0.2%)
AUSTRALIA (0.2%)
19,750 News Corporation Media 82,095
-----------
Total Investments (Cost $34,387,473*) - 88.2% $36,016,472
Other Assets, Less Liabilities - 11.8% 4,834,798
-----------
Net Assets - 100% $40,851,270
===========
</TABLE>
* Also represents cost for Federal income tax purposes.
See notes to financial statements.
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<S> <C>
ASSETS
Investments at value (cost $34,387,473) $ 36,016,472
Cash 3,744,601
Foreign currency at value (cost $651,214) 640,200
Net unrealized appreciation on open forward currency contracts 377,460
Receivables:
Beneficial Interests sold 558,668
Dividends 84,459
Investment securities sold 704
- -------------------------------------------------------------------------------------
Total Assets 41,422,564
- -------------------------------------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 535,064
Accrued advisory fee (Note 2) 36,230
- -------------------------------------------------------------------------------------
Total Liabilities 571,295
- -------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $ 40,851,270
=====================================================================================
</TABLE>
See notes to financial statements.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividend income (Net of $9,397 foreign withholding taxes) $ 93,021
- -------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 75,778
Postage, printing & reports 4,566
Insurance & bonds 3,750
Trustees' fees & expenses (Note 2) 243
Miscellaneous 112
- -------------------------------------------------------------------------------------
Total Expenses 84,449
Less expenses reimbursed by Advisor (Note 2) (722)
- -------------------------------------------------------------------------------------
Expenses - Net 83,727
- -------------------------------------------------------------------------------------
Net Investment Income (Loss) 9,294
- -------------------------------------------------------------------------------------
REALIZED GAIN (LOSS) ON
Investment Transactions 53,896
Foreign Currency Transactions 33,050
- -------------------------------------------------------------------------------------
Net Realized Gain (Loss) 86,946
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 1,062,322
Foreign Currency Contracts and Translations 373,135
- -------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,435,457
Net Increase (Decrease) in Net Assets Resulting from Operations $ 1,531,697
=====================================================================================
</TABLE>
See notes to financial statements.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $ 9,294
Net realized gain (loss) on investments and foreign currency transactions 86,946
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions 1,435,457
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,531,697
- -----------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
- -----------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Investors' 0
- -----------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 41,486,881
Withdrawals (2,167,308)
- -----------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Investors' Transactions 39,319,573
- -----------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 40,851,270
Net Assets:
Beginning of period 0
- -----------------------------------------------------------------------------------------------
End of period $ 40,851,270
===============================================================================================
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
RATIO TO AVERAGE NET ASSETS:
Gross Expenses*~ 0.99%
Net Expenses*~ 0.98%
Net Investment Income~ 0.11%
Portfolio Turnover+ 7.38%
Average Commission Rate $.0254
</TABLE>
* Net expenses reflect the Portfolio's gross (total) expenses,
reduced by fee waivers and expensereimbursements totaling $722.
~ Annualized.
+ Based on operations for the period shown and, accordingly, is not
representative of a full year.
See notes to financial statements.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Portfolio is a series of
the Berger/BIAM Worldwide Portfolios Trust (the "Trust") , which was
organized as a Delaware business trust on May 31, 1996. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the investment
advisor of the Portfolio ("BBOI"). The Portfolio commenced investment
operations on October 11, 1996 ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to
the Berger/BIAM International Institutional Fund in exchange for
portfolio assets with an aggregate value of $4,481,609 which were
transferred from the Pooled Trust of Citizens Bank of New Hampshire
("Citizens NH") to the Berger/BIAM International Institutional Fund
and, in turn, transferred to the Portfolio. Such transaction was a
tax-free exchange. Citizens NH is an affiliate of Bank of Ireland
Asset Management (U.S.) Limited ("BIAM"), which was the investment
sub-advisor to the Pooled Trust and is the investment sub-advisor to
the Portfolio.
The Portfolio is advised by BBOI, which has delegated daily
portfolio management of the Portfolio to BIAM. Berger Associates, Inc.
("Berger") and BIAM each own 50% of BBOI.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The Portfolio's securities and other assets are valued at the
close of the regular trading session of the New York Stock Exchange
(the "Exchange") (normally 4:00 p.m. New York time) each day the
Exchange is open. The Portfolio's securities and other assets are
valued as follows: securities listed or traded primarily on national
exchanges, the Nasdaq Stock market and foreign exchanges are valued at
the last sale price on such markets, or, if such a price is lacking
for the trading period immediately preceding the time of
determination, such securities are valued at the mean of their current
bid and asked prices. Securities that are traded in the
over-the-counter market are valued at the mean between their current
bid and asked prices. The market value of individual securities held
by the Portfolio will be determined by using pricing services which
provide market prices to other mutual funds or, as needed, by
obtaining market quotations from independent broker/dealers.
Short-term money market securities maturing within 60 days are valued
on the amortized cost basis, which approximates market value. All
assets and liabilities initially expressed in terms of non-U.S. dollar
currencies are translated into U.S. dollars at the prevailing market
rates as quoted by one or more banks or dealers shortly before the
close of the Exchange. Securities and assets for which quotations are
not readily available are valued at fair values determined in good
faith pursuant to consistently applied procedures established by the
trustees.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the
Exchange. The values of foreign securities used in computing the net
asset value of the shares in the portfolio are determined as of the
earlier of such market close or the closing time of the Exchange.
Occasionally, events affecting the value of such securities may occur
between the times at which they are determined and the close of the
Exchange, or when the foreign market on which such securities trade is
closed but the Exchange is open, which will not be reflected in the
computation of net asset value. If during such periods, events occur
which materially affect the value of such securities, the securities
will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the
trustees.
Federal Income Taxes
The Portfolio intends to be treated as a partnership for Federal
income tax purposes. As such, each investor in the Portfolio will be
taxable on its share of the Portfolio's ordinary income and capital
gains. It is intended that the Portfolio's assets will be managed in
such a way that an investor in the Portfolio will be able to satisfy
the requirements of Sub-Chapter M of the Internal Revenue Code.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
Security Gains and Losses
Gains and losses are computed on the identified cost basis for
both financial statement and Federal income tax purposes for all
securities. 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 and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis and includes amortization of discounts.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
Forward Currency Contracts
The Portfolio may hold forward foreign currency exchange
contracts for the purpose of hedging the Portfolio against exposure to
market value fluctuations in foreign currencies. The use of such
instruments may involve certain risks as a result of unanticipated
movements in the market. A lack of correlation between the value of
such instruments and the assets being hedged, or unexpected adverse
price movements, could render the Portfolio's hedging strategy
unsuccessful. In addition, there can be no assurance that the
Portfolio will be able to enter into an offset or termination of the
contracts at any particular time.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio
pursuant to an agreement which provides for an investment advisory fee
to be paid to BBOI at the annual rate of .90 of 1% of the Portfolio's
average daily net assets. Until at least April 30, 1998, BBOI has
agreed voluntarily to waive its advisory fee to the extent that the
Portfolio's normal operating expenses in any fiscal year (including
the investment advisory fee and custodian fees, but excluding
brokerage commissions, interest, taxes and extraordinary expenses)
exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging
for all managerial and administrative services necessary for the
operations of the Portfolio. BBOI has delegated the daily portfolio
management of the Portfolio to BIAM. For such services, BBOI pays BIAM
a sub-advisory fee equal to .45% of the average daily net assets of
the Portfolio.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Portfolio, including
calculating the net asset value of the Portfolio, and to perform
certain accounting and recordkeeping functions required by the
Portfolio. In addition, IFTC has been appointed to serve as the
Portfolio's custodian and transfer agent. For custodian,
recordkeeping and pricing services, the Portfolio pays a fee directly
to IFTC based on a percentage of its net assets, subject to certain
minimums, and reimburses IFTC for certain out-of-pocket expenses.
Certain officers and trustees of the Trust are officers and
directors of the Advisor or BIAM. Trustees who are not affiliated
with the Advisor or BIAM are compensated for their services according
to a fee schedule, allocated among the Berger and Berger/BIAM Funds,
which includes an annual fee component and a per meeting component.
Such fees are allocated directly to the Portfolio and indirectly to
the Fund.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities (excluding
short-term securities) during the period from Commencement of
Investment Operations to January 31, 1997 were as follows:
Purchases of Sales of
Investment Investment
Securities Securities
-------------- --------------
$36,258,306 $1,924,729
There were no purchases or sales of long-term U.S. Government
securities during the period.
At January 31, 1997, the composition of unrealized appreciation
(the excess of value over tax cost) and unrealized depreciation (the
excess of tax cost over value) for securities held was as follows:
Appreciation Depreciation Net
---------------- ---------------- --------------
$2,473,406 $(844,407) $1,628,999
20
<PAGE>
TRUSTEES OF BERGER/BIAM WORLDWIDE FUNDS TRUST
MICHAEL OWEN, CHAIRMAN * DENNIS E. BALDWIN
WILLIAM M.B. BERGER * LOUIS R. BINDNER, P.E. * KATHERINE A. CATTANACH
LUCY BLACK CREIGHTON * DENIS CURRAN * PAUL R. KNAPP * GERARD M. LAVIN
HARRY T. LEWIS, JR. * WILLIAM SINCLAIRE
OFFICERS:
GERARD M. LAVIN
President of the Trust
CRAIG D. CLOYED
Vice President of the Trust
KEVIN R. FAY
Vice President, Secretary and Treasurer of the Trust
JANICE M. TEAGUE
Assistant Secretary of the Trust
DAVID J. SCHULTZ
SUSAN G. KOHLMAN
Assistant Treasurers of the Trust
INVESTMENT ADVISOR
BBOI Worldwide LLC
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS
Together we can move mountains...the world over.(TM)
(C)1997 Berger Associates, Inc.
21<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
TABLE OF CONTENTS
Portfolio Manager's Letter 2
Statement of Assets and Liabilities 5
Statement of Operations 6
Statement of Changes in Net Assets 7
Notes to Financial Statements 8
Financial Highlights 10
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
PORTFOLIO MANAGERS LETTER
Dear Shareholder:
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use
of fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of
economic themes. These themes are derived from across a broad spectrum
of social, demographic, economic and technological, among other
trends. They are an important part of the process that ultimately
allows us to zero-in on the stocks that we believe will be able to
exploit above average growth opportunities over the long term.
FUND REVIEW
The Positive Banking Environment theme proved to be the period's best
performer. Strong corporate cashflows contributed to the increased
dividend yields and supported further acquisitions. In particular,
Spain's Banco De Santander and the Netherlands' ABN-Amro Holdings
announced additional overseas expansion with the acquisition of Latin
American and U.S. banks respectively. National Australia Bank was
helped by the announcement of a new share buy-back program. The stock
was further supported by the continued strength of the Australian long
bond market and by the local low inflation, low growth environment.
Another significant contributor to the outperformance was the
Telecommunications theme. The star performer here, STET, announced
its intention to merge into Telecom Italia, and to de-merge SEAT (the
Italian "Yellow Pages"). Vodafone and Cable & Wireless, both U.K.
based, also performed well. Vodafone reported half year profits up
21%, benefiting from increased penetration in the U.K. cellular
market. Cable & Wireless announced the formation of a new U.K.
telecommunications company with subsidiaries of Nynex, Bell and
Videotron.
The Restructuring Opportunities theme provided an impressive return
for the period. Royal Dutch announced a joint venture with Texaco
covering their respective U.S. refining operations. This will provide
substantial benefits from increased market share and cost savings
potential. Iberdorla, the Spanish utility company, was the best
performing stock over the period, and benefited from a sizable
reduction in its debt level and the strength of the Spanish bond
market. Elf Aquitaine's price moved ahead following the French
Government's placing of its remaining shareholding in the company.
The Leisure Activities theme was another strong performer. Ladbroke
Group, located in the U.K., continued its strong upward movement
following the earlier acquisition of Hilton's international
operations. The increased valuation of EMI, the more attractive
element of the former U.K. based Thorn/EMI Group, stemmed from the
growth in the European and Far Eastern music industries.
On an individual stock basis, Safeway, the U.K. food retailing
company, benefited from increased consumer spending and the re-focus
of investors on domestic retailing companies. San Miguel, the
Philippine-based food and beverage company and one of the newer
additions, also produced solid gains. B.A.T. Industries, a U.K. based
company, recovered strongly during the period, on the back of further
rumors of a settlement between the U.S. Government and the tobacco
industry. Ciba Geigy and Sandoz, both strong performers, completed
their merger in December. The new company, Novartis, a Swiss concern,
will now be one of the leaders in the global pharmaceutical industry.
In contrast to the European financials, our banking stocks in Thailand
did not fair well. This resulted from disenchantment with the local
political environment and foreign borrowing curbs which now have been
reversed. We believe fundamentals eventually will restore the value
of these stocks. Both Bangkok Bank and Thai Farmers Bank are high
quality banks with extremely strong capital bases, high levels of
reserves and low levels of bad debt. Siemens, the German
conglomerate, suffered from the inadequacies of earlier restructuring
and a general malaise in the semi-conductor industry. The limited
currency hedging program continued to protect the portfolio during the
period. The role of the hedging and the currencies covered will be
kept under review and adjusted, as appropriate.
2<PAGE>
OUTLOOK
The strength of the international equity markets in 1996 was achieved
in a period of stable or falling interest rates, low inflation and
strong earnings growth. Much of the same factors remain in place as
we enter the new year.
In continental Europe, much of the economic focus will be on the
decisions and impact surrounding the EMU, which is to be established
in 1999.
In the Pacific Rim, a number of issues may effect markets. Japan
continues to have problems and, while there is some evidence of a
recovery, economic fundamentals and domestic investor confidence
remain in tatters. Hong Kong is due to change to Chinese control on
July 1 and the impact of this unique event will be watched eagerly.
While returns in the coming year are unlikely to match those of the
period just ended, we remain satisfied with the structure of the
portfolio from a fundamental, value oriented perspective. We will
continue with a fully-invested posture, with the major emphasis on
holdings in the U.K., the core continental European markets and the
Pacific Basin, excluding Japan.
Respectfully submitted,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)
* Investments in the Berger/BIAM International CORE 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.
TOP TEN HOLDINGS AS OF 1/31/97
% of Portfolio's
Company net assets
- ------- ----------
1. Novartis 3.68%
2. National Australia Bank 3.11%
3. ABN Amro Holdings 2.25%
4. B.A.T. Industries 2.17%
5. Development Bank of Singapore 2.12%
6. HSBC Holdings 2.02%
7. Singapore Press Holdings 2.02%
8. Lloyds TSB Group 2.01%
9. Canon 1.97%
10. Mannesmann 1.95%
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BERGER/BIAM
INTERNATIONAL CORE FUND VS. EAFE INDEX AND COST OF LIVING INDEX
(DESCRIPTION OF BERGER/BIAM INTERNATIONAL CORE FUND PERFORMANCE LINE
GRAPH)
The following table reflects data presented in a line graph at this
point in the Semi-Annual Report to Shareholders. The graph compares
the value of shares invested in the Berger/BIAM International CORE
Fund to the EAFE Index and to the Cost of Living Index. The graph is
based on an initial investment of $10,000 on July 31, 1989 with all
dividends and capital gains reinvested. Also included is a smaller
chart reflecting the Berger/BIAM International CORE Fund's Average
Annual Total Return as of January 31, 1997 for 1 year - 13.5%, 3 years
- - 8.2%, 5 years - 14.1% and since inception (July 31, 1989)- 13.8%.
3<PAGE>
Berger/BIAM
International EAFE Cost of
Date CORE Fund Index Living Index
- ---- --------- ----- ------------
7/31/89 $10,000 $10,000 $10,000
7/31/90 13,460 9,328 10,482
7/31/91 12,580 8,567 10,949
7/31/92 15,050 7,933 11,294
7/31/93 16,400 10,169 11,608
7/31/94 19,300 11,636 11,929
7/31/95 21,910 12,482 12,259
7/31/96 23,310 12,961 12,621
1/31/97 26,434 13,092 12,789
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996,
reflect the performance of the pool of assets transferred on that date
into the Berger/BIAM International Portfolio in which all of the
Fund's assets are invested, adjusted at that time for any increase in
expenses anticipated in operating the Fund, including the Fund's pro
rata share of the aggregate annual operating expenses, net of fee
waivers, of the Portfolio. The asset pool was not registered with the
Securities and Exchange Commission and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds.
If the pool had been registered its performance might have been
adversely affected. Performance figures are based on historical
results and are not intended to be indicative of future performance.
The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
4<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio") $21,821,925
- ------------------------------------------------------------------------------------------
Total Assets 21,821,925
- ------------------------------------------------------------------------------------------
LIABILITIES
Accrued administrative fee (Note 2) 1,754
- ------------------------------------------------------------------------------------------
Total Liabilities 1,754
- ------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $21,820,171
==========================================================================================
Capital Shares:
Authorized (Par Value $0.01) unlimited
==========================================================================================
Shares Outstanding 2,055,700
==========================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $10.61
==========================================================================================
See notes to financial statements.
</TABLE>
5<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Statement of Operations (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividend income (Net of $4,470 foreign withholding taxes) $46,891
Portfolio expenses (41,757)
- ------------------------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 5,134
- ------------------------------------------------------------------------------------------
FUND EXPENSES
Administrative fees (Note 2) 4,194
- ------------------------------------------------------------------------------------------
Total Fund Expenses 4,194
- ------------------------------------------------------------------------------------------
Net Investment Income (Loss) 940
- ------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign
currency transactions 44,029
Net change in unrealized appreciation (depreciation) of
investment and foreign currency transactions 675,348
- ------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment
and Foreign Currency Transactions Allocated from Portfolio 719,377
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $720,317
==========================================================================================
See notes to financial statements.
</TABLE>
6<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Statement of Changes in Net Assets (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $940
Net realized gain (loss) on investment and foreign currency
transactions allocated from portfolio 44,029
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from portfolio 675,348
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 720,317
- ------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
- ------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders 0
- ------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 21,100,206
Net asset value of shares issued in reinvestment of dividends 0
- ------------------------------------------------------------------------------------------
Total 21,100,206
Payments for shares redeemed (352)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from
Fund Share Transactions 21,099,854
- ------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 21,820,171
Net Assets:
Beginning of period 0
- ------------------------------------------------------------------------------------------
End of period $21,820,171
==========================================================================================
Undistributed (distribution in excess of) net investment income
included in the above 940
==========================================================================================
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) 21,099,854
Accumulated net investment income (loss) 940
Accumulated net realized gain (loss) 44,029
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 675,348
- ------------------------------------------------------------------------------------------
Total 21,820,171
==========================================================================================
TRANSACTIONS IN FUND SHARES:
Shares sold 2,055,733
Shares issued to shareholders in reinvestment of dividends 0
- ------------------------------------------------------------------------------------------
Total 2,055,733
Shares repurchased (33)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares 2,055,700
Shares outstanding, beginning of period 0
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 2,055,700
==========================================================================================
See notes to financial statements.
</TABLE>
7<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International CORE Fund (the "Fund") is a series
of the Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware
business trust, organized on May 31, 1996. The Fund and the Trust are
registered under the Investment Company Act of 1940, as amended, as
open-end management investment companies. The Trust is authorized to
issue an unlimited number of shares of beneficial interest in series
or portfolios. Currently, the series comprising the Fund, Berger/BIAM
International Fund and Berger/BIAM International Institutional Fund,
are the only series established under the Trust, although others may
be added in the future. The Trust is also authorized to establish
multiple classes of shares representing differing interests in an
existing or new series. The Fund commenced investment operations on
October 11, 1996 ("Commencement of Investment Operations").
The investment objective of the Fund is long-term capital
appreciation. The Fund will invest all of its investable assets in
the Berger/BIAM International Portfolio (the "Portfolio"), a series of
Berger/BIAM Worldwide Portfolios Trust. The value of such investment
reflects the Fund's proportionate interest in the net assets of the
Portfolio (53% at January 31, 1997). The Portfolio is an open-end
management investment company and has the same investment objective
and policies as the Fund. The performance of the Fund will derive
from the investment performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of portfolio
investments, are included elsewhere in this report and should be read
in conjunction with the Fund's financial statements. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the advisor of
the Portfolio (the "Advisor"). The Advisor has delegated the daily
portfolio management of the Fund to Bank of Ireland Asset Management
(U.S.) Limited ("BIAM" or the "Sub-Advisor"), which owns 50% of the
Advisor. Berger Associates, Inc. ("Berger") also owns 50% of the
Advisor.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Fund in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The price of the Fund's shares is based on the net asset value of
the Fund, which is determined at the close of the regular trading
session of the New York Stock Exchange (the "Exchange") (normally 4:00
p.m., New York time) each day that the Exchange is open. The per
share net asset value of the Fund is determined by dividing the total
value of its assets, less liabilities, by the total number of shares
outstanding. Since the Fund will invest all of its investable assets
in the Portfolio, the value of the Fund's investable assets will be
equal to the value of its beneficial interest in the Portfolio.
Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statement which accompany these
Financial Statements for the Fund.
Income and Expenses
As an investor in the Portfolio, the Fund is allocated its pro
rata share of the aggregate investment income and annual operating
expenses of the Portfolio including the investment advisory fee,
custodian fees, independent accountants' fees, transfer agent, record
keeping and pricing agent fees. Such investment income and expenses
are allocated on the day the expense is incurred in proportion to the
prior day's relative net assets of the Fund and other investors in the
Portfolio.
Federal Income Taxes
Each series of the Trust is treated as a separate entity for
Federal income tax purposes. The Fund's policy is to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute all of its taxable income to
shareholders. Therefore, no income tax provision is required.
Dividends and Distributions
Dividends paid by the Fund from net investment income and
distributions of net realized short-term capital gains are, for
Federal income tax purposes, taxable as ordinary income to
shareholders.
8<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
The Fund distributes 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 treatments for net operating losses and
expiring capital loss carryforwards. Accordingly, these permanent
differences in the character of income and distributions between
financial statements and tax basis will be reclassified to
paid-in-capital. At January 31, 1997, no such differences existed.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the
Advisor serves as the administrator of the Fund. Pursuant to such
Agreement, the Fund pays the Advisor a fee at an annual rate equal to
the lesser of 0.10% of its average daily net assets or the Advisor's
annual cost to provide or procure such services plus 0.01% of the
Fund's average daily net assets. Under the Agreement, the Advisor is
responsible, at its own expense, for providing or procuring all
administrative services reasonably necessary for the operation of the
Fund, including recordkeeping and pricing services, custodian
services, transfer agency and dividend disbursing services, tax and
audit services, insurance, legal services, printing and mailing to
shareholders of prospectuses and other required communication and
certain other administrative services. The Advisor has delegated the
administration of the Fund to Berger. For such services, the Advisor
pays Berger a sub-administration fee equal to 0.25% of the Fund's
average daily net assets.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Fund, including
calculating the net asset value of the Fund, and to perform certain
accounting and recordkeeping functions that it requires. In addition,
IFTC has been appointed to serve as the Fund's custodian, transfer
agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and
directors of the Advisor or Sub-Advisor. Trustees who are not
affiliated with the Portfolio's Advisor or Sub-Advisor are compensated
for their services according to a fee schedule, allocated among the
Berger and Berger/BIAM Funds, which includes an annual fee component
and a per meeting component. Such fees are allocated directly to the
Portfolio and indirectly to the Fund.
9<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Financial Highlights (Unaudited)
For a Share Outstanding Throughout the Period October 11, 1996
(commencement of investment operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
- ------------------------------------------------------------------------------------------
Net asset value, beginning of period $10.00
- ------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income .00
Net realized and unrealized gain (loss) on investment and foreign
currency transactions allocated from Portfolio .61
- ------------------------------------------------------------------------------------------
Total from investment operations .61
- ------------------------------------------------------------------------------------------
Net asset value, end of period $10.61
==========================================================================================
Total return* 6.10%
==========================================================================================
Ratios/Supplementary Data:
Net assets, end of period $21,820,171
Ratio of expenses to average net assets~ 1.10%
Ratio of net investment income (loss) to average net assets~ .02%
* Based on operations for the period shown and, accordingly, is not representative of a full year.
~ Annualized.
See notes to financial statements.
</TABLE>
10<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Semi-Annual Report
For the period from October 11, 1996 (commencement of
investment operations) to January 31, 1997
(The following pages should be read in conjunction
with the Berger/BIAM International CORE Fund Semi-Annual
Financial Statements)
TABLE OF CONTENTS
Schedule of Investments 12
Statement of Assets and Liabilities 15
Statement of Operations 16
Statement of Changes in Net Assets 17
Notes to Financial Statements 18
11<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited)
January 31, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ----------------------------------------------------------------------------------------------
<S> <S> <C>
COMMON STOCKS (88.0%)
AUSTRALIA (7.3%)
43,770 Broken Hill Proprietary Resources $ 600,233
105,000 National Australia Bank Financials 1,269,323
128,780 News Corporation Media 652,184
64,550 Western Mining Resources 396,812
-----------
2,918,552
-----------
FINLAND (0.7%)
15,000 Upm Kymmene Paper, Packaging & Printing 291,917
-----------
291,917
-----------
FRANCE (1.6%)
2,950 Elf Aquitaine Utilities 285,973
6,380 Michelin Auto Goods 365,213
-----------
651,186
-----------
GERMANY (5.3%)
17,020 Hoechst Healthcare 714,314
2,059 Mannesmann Electrical/Engineering 796,319
6,500 Siemens Electrical/Engineering 318,596
6,110 Veba Utilities 337,684
-----------
2,166,913
-----------
GREAT BRITAIN(27.7%)
114,300 B.A.T. Industries Tobacco/Financial Services 885,330
42,400 Barclays Bank Financials 784,531
75,500 BTR Conglomerates 312,658
30,000 Cable & Wireless Telecommunications 223,479
66,550 Cadbury Schweppes Food Manufacturing 502,147
26,500 Chubb Security Security 135,849
25,850 EMI Group Leisure & Entertainment 501,495
60,300 General Electric Electrical/Engineering 376,259
29,400 Glaxo Wellcome Healthcare 470,517
44,050 Granada Group Leisure & Entertainment 633,701
49,000 Grand Metropolitan Retailer/Consumer Goods 362,660
19,910 Guinness Consumer Goods-Non Durables 138,108
74,900 Ladbroke Group Leisure & Entertainment 275,376
106,750 Lloyds TSB Group Financials 820,864
38,700 Medeva Healthcare 178,552
41,800 Premier Farnell Distributor of Components 353,567
68,300 Prudential Insurance 589,755
62,350 Safeway Retailer/Consumer Goods 381,559
64,400 Scottish Power Utilities 385,851
37,200 Shell Transport & Trading Company Utilities 641,235
</TABLE>
12<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited) - Continued
January 31, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ----------------------------------------------------------------------------------------------
<S> <S> <C>
42,341 Siebe Electrical/Engineering $ 712,217
65,200 TI Group Electrical/Engineering 577,610
79,500 Vodafone Group Telecommunications 345,142
26,875 Zeneca Group Healthcare 776,689
------------
11,365,151
------------
HONG KONG (2.0%)
35,600 HSBC Holdings Financials 824,627
------------
824,627
------------
INDONESIA (4.8%)
126,000 Gudang Garam Tobacco 615,022
51,800 Hero Supermarket Retailer/Consumer Goods 47,952
125,000 HM Sampoerna Tobacco 783,715
114,000 Indocement Tunggal Infrastructure/Property 170,292
100,000 Mayora Indah Food Manufacturing 43,130
167,000 Telekomunikasi Indonesia Telecommunications 298,653
------------
1,958,764
------------
IRELAND (1.3%)
28,750 Allied Irish Banks Financials 196,958
131,800 Smurfit (Jefferson) Group Paper, Packaging & Printing 354,048
------------
551,006
------------
ITALY (1.1%)
82,000 Seat Paper, Packaging & Printing 31,589
82,000 STET Telecommunications 404,658
------------
436,247
------------
JAPAN (2.0%)
38,000 Canon Retailer/Consumer Goods 804,116
------------
804,116
------------
MALAYSIA (4.2%)
99,000 DCB Holdings Financials 374,366
47,000 Hume Industries Malaysia Infrastructure/Property 296,846
137,400 Sime Darby Conglomerates 511,284
60,000 United Engineers Malaysia Infrastructure/Property 538,257
------------
1,720,753
------------
MEXICO (0.7%)
133,520 Grupo Financiero Banamex - Class B Financials 273,204
------------
273,204
------------
NETHERLANDS (9.5%)
13,950 ABN Amro Holdings Financials 917,424
2,620 DSM Chemicals 245,011
45,550 Elsevier Media 700,046
20,752 ING Groep Financials 780,989
</TABLE>
13<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited) - Continued
January 31, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Country/ Market
Shares Company Industry Value
- ----------------------------------------------------------------------------------------------
<S> <S> <C>
12,000 Koninklijke PTT Nederland Telecommunications $ 435,320
3,025 Nutricia Ver Bedrijven Food Manufacturing 433,691
2,140 Royal Dutch Petroleum Utilities 374,215
-------------
3,886,696
-------------
PHILIPPINES (0.7%)
75,700 San Miguel - Class B Food & Drinks 304,523
-------------
304,523
-------------
SINGAPORE (7.4%)
79,000 City Development Infrastructure/Property 791,515
62,412 Development Bank Of Singapore Financials 864,800
54,600 Fraser & Neave Food & Drinks 531,528
41,100 Singapore Press Holdings Media 823,577
-------------
3,011,420
-------------
SPAIN (0.8%)
5,030 Banco Santander Financials 326,211
-------------
326,211
-------------
SWEDEN (0.7%)
5,900 Pharmacia & Upjohn Healthcare 218,488
4,550 Stora Kopparberg -Cl A Paper, Packaging & Printing 57,733
-------------
276,221
-------------
SWITZERLAND (8.5%)
874 Alusuisse Lonza Holding Conglomerates 717,742
1,313 Novartis Healthcare 1,503,466
72 Roche Holding Healthcare 631,991
640 Schw Ruckverischer Insurance 630,333
-------------
3,483,532
-------------
THAILAND (1.7%)
48,100 Bangkok Bank Financials 415,839
46,200 Thai Farmers Bank Financials 267,499
-------------
683,338
-------------
PREFERRED STOCKS (0.2%)
AUSTRALIA (0.2%)
19,750 News Corporation Media 82,095
-------------
Total Investments (Cost $34,387,473*) - 88.2% $36,016,472
Other Assets, Less Liabilities - 11.8% 4,834,798
-------------
Net Assets - 100% $40,851,270
=============
* Also represents cost for Federal income tax purposes.
See notes to financial statements.
</TABLE>
14<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Assets and Liabilities (Unaudited)
January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investments at value (cost $34,387,473) 36,016,472
Cash 3,744,601
Foreign currency at value (cost $651,214) 640,200
Net unrealized appreciation on open forward currency contracts 377,460
Receivables:
Beneficial Interests sold 558,668
Dividends 84,459
Investment securities sold 704
- ------------------------------------------------------------------------------------------
Total Assets 41,422,564
- ------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 535,064
Accrued advisory fee (Note 2) 36,230
- ------------------------------------------------------------------------------------------
Total Liabilities 571,294
- ------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS 40,851,270
==========================================================================================
See notes to financial statements.
</TABLE>
15<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
INVESTMENT INCOME
Dividend income (Net of $9,397 foreign withholding taxes) $93,021
- ------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee (Note 2) 75,778
Postage, printing & reports 4,566
Insurance & bonds 3,750
Trustees' fees & expenses (Note 2) 243
Miscellaneous 112
- ------------------------------------------------------------------------------------------
Total Expenses 84,449
Less expenses reimbursed by Advisor (Note 2) (722)
- ------------------------------------------------------------------------------------------
Expenses - Net 83,727
- ------------------------------------------------------------------------------------------
Net Investment Income (Loss) 9,294
- ------------------------------------------------------------------------------------------
REALIZED GAIN (LOSS) ON
Investment Transactions 53,896
Foreign Currency Transactions 33,050
- ------------------------------------------------------------------------------------------
Net Realized Gain (Loss) 86,946
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 1,062,322
Foreign Currency Contracts and Translations 373,135
- ------------------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 1,435,457
Net Increase (Decrease) in Net Assets Resulting from Operations 1,531,697
==========================================================================================
See notes to financial statements.
</TABLE>
16<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
<TABLE>
<CAPTION>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $9,294
Net realized gain (loss) on investments and foreign currency transactions 86,946
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions 1,435,457
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 1,531,697
- ------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
- ------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Investors' 0
- ------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 41,486,881
Withdrawals (2,167,308)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Investors' Transactions 39,319,573
- ------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 40,851,270
Net Assets:
Beginning of period 0
- ------------------------------------------------------------------------------------------
End of period 40,851,270
==========================================================================================
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the Period from October 11, 1996 (commencement of investment
operations) to January 31, 1997
RATIO TO AVERAGE NET ASSETS:
Gross Expenses*~ 0.99%
Net Expenses*~ 0.98%
Net Investment Income~ 0.11%
Portfolio Turnover+ 7.38%
Average Commission Rate $.0254
* Net expenses reflect the Portfolio's gross (total) expenses, reduced by fee waivers and expense reimbursements
totaling $722.
~ Annualized.
+ Based on operations for the period shown and, accordingly, is not representative of a full year.
See notes to financial statements.
</TABLE>
17<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
January 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Portfolio is a series of
the Berger/BIAM Worldwide Portfolios Trust (the "Trust") , which was
organized as a Delaware business trust on May 31, 1996. All costs in
organizing the Trust were paid by BBOI Worldwide LLC, the investment
advisor of the Portfolio ("BBOI"). The Portfolio commenced investment
operations on October 11, 1996 ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to
the Berger/BIAM International Institutional Fund in exchange for
portfolio assets with an aggregate value of $4,481,609 which were
transferred from the Pooled Trust of Citizens Bank of New Hampshire
("Citizens NH") to the Berger/BIAM International Institutional Fund
and, in turn, transferred to the Portfolio. Such transaction was a
tax-free exchange. Citizens NH is an affiliate of Bank of Ireland
Asset Management (U.S.) Limited ("BIAM"), which was the investment
sub-advisor to the Pooled Trust and is the investment sub-advisor to
the Portfolio.
The Portfolio is advised by BBOI, which has delegated daily
portfolio management of the Portfolio to BIAM. Berger Associates, Inc.
("Berger") and BIAM each own 50% of BBOI.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
consistently followed by the Portfolio in the preparation of their
financial statements. The policies are in conformity with generally
accepted accounting principles.
Investment Valuation
The Portfolio's securities and other assets are valued at the
close of the regular trading session of the New York Stock Exchange
(the "Exchange") (normally 4:00 p.m. New York time) each day the
Exchange is open. The Portfolio's securities and other assets are
valued as follows: securities listed or traded primarily on national
exchanges, the Nasdaq Stock market and foreign exchanges are valued at
the last sale price on such markets, or, if such a price is lacking
for the trading period immediately preceding the time of
determination, such securities are valued at the mean of their current
bid and asked prices. Securities that are traded in the
over-the-counter market are valued at the mean between their current
bid and asked prices. The market value of individual securities held
by the Portfolio will be determined by using pricing services which
provide market prices to other mutual funds or, as needed, by
obtaining market quotations from independent broker/dealers.
Short-term money market securities maturing within 60 days are valued
on the amortized cost basis, which approximates market value. All
assets and liabilities initially expressed in terms of non-U.S. dollar
currencies are translated into U.S. dollars at the prevailing market
rates as quoted by one or more banks or dealers shortly before the
close of the Exchange. Securities and assets for which quotations are
not readily available are valued at fair values determined in good
faith pursuant to consistently applied procedures established by the
trustees.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the
Exchange. The values of foreign securities used in computing the net
asset value of the shares in the portfolio are determined as of the
earlier of such market close or the closing time of the Exchange.
Occasionally, events affecting the value of such securities may occur
between the times at which they are determined and the close of the
Exchange, or when the foreign market on which such securities trade is
closed but the Exchange is open, which will not be reflected in the
computation of net asset value. If during such periods, events occur
which materially affect the value of such securities, the securities
will be valued at their fair market value as determined in good faith
pursuant to consistently applied procedures established by the
trustees.
Federal Income Taxes
The Portfolio intends to be treated as a partnership for Federal
income tax purposes. As such, each investor in the Portfolio will be
taxable on its share of the Portfolio's ordinary income and capital
gains. It is intended that the Portfolio's assets will be managed in
such a way that an investor in the Portfolio will be able to satisfy
the requirements of Sub-Chapter M of the Internal Revenue Code.
18<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
Security Gains and Losses
Gains and losses are computed on the identified cost basis for
both financial statement and Federal income tax purposes for all
securities. 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 and distributions to
shareholders are recorded on the ex-dividend date. Interest income is
recorded on the accrual basis and includes amortization of discounts.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
Forward Currency Contracts
The Portfolio may hold forward foreign currency exchange contracts for
the purpose of hedging the Portfolio against exposure to market value
fluctuations in foreign currencies. The use of such instruments may
involve certain risks as a result of unanticipated movements in the
market. A lack of correlation between the value of such instruments
and the assets being hedged, or unexpected adverse price movements,
could render the Portfolio's hedging strategy unsuccessful. In
addition, there can be no assurance that the Portfolio will be able to
enter into an offset or termination of the contracts at any particular
time.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio
pursuant to an agreement which provides for an investment advisory fee
to be paid to BBOI at the annual rate of .90 of 1% of the Portfolio's
average daily net assets. Until at least April 30, 1998, BBOI has
agreed voluntarily to waive its advisory fee to the extent that the
Portfolio's normal operating expenses in any fiscal year (including
the investment advisory fee and custodian fees, but excluding
brokerage commissions, interest, taxes and extraordinary expenses)
exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging
for all managerial and administrative services necessary for the
operations of the Portfolio. BBOI has delegated the daily portfolio
management of the Portfolio to BIAM. For such services, BBOI pays BIAM
a sub-advisory fee equal to .45% of the average daily net assets of
the Portfolio.
Investors Fiduciary Trust Company ("IFTC") has been appointed to
provide recordkeeping and pricing services to the Portfolio, including
calculating the net asset value of the Portfolio, and to perform
certain accounting and recordkeeping functions required by the
Portfolio. In addition, IFTC has been appointed to serve as the
Portfolio's custodian and transfer agent. For custodian,
recordkeeping and pricing services, the Portfolio pays a fee directly
to IFTC based on a percentage of its net assets, subject to certain
minimums, and reimburses IFTC for certain out-of-pocket expenses.
Certain officers and trustees of the Trust are officers and
directors of the Advisor or BIAM. Trustees who are not affiliated
with the Advisor or BIAM are compensated for their services according
to a fee schedule, allocated among the Berger and Berger/BIAM Funds,
which includes an annual fee component and a per meeting component.
Such fees are allocated directly to the Portfolio and indirectly to
each fund.
19<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited) - Continued
January 31, 1997
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities (excluding
short-term securities) during the period from Commencement of
Investment Operations to January 31, 1997 were as follows:
Purchases of Sales of
Investment Investment
Securities Securities
----------- -----------
$36,258,306 $1,924,729
There were no purchases or sales of long-term U.S. Government
securities during the period.
At January 31, 1997, the composition of unrealized appreciation
(the excess of value over tax cost) and unrealized depreciation (the
excess of tax cost over value) for securities held was as follows:
Appreciation Depreciation Net
------------ ------------ -------------
$2,473,406 $(844,407) $1,628,999
20<PAGE>
TRUSTEES OF BERGER/BIAM WORLDWIDE FUNDS TRUST
Michael Owen, Chairman * Dennis E. Baldwin
William M.B. Berger * Louis R. Bindner, P.E. * Katherine A. Cattanach
Lucy Black Creighton * Denis Curran * Paul R. Knapp * Gerard M. Lavin
Harry T. Lewis, Jr. * William Sinclaire
OFFICERS:
GERARD M. LAVIN
President of the Trust
CRAIG D. CLOYED
Vice President of the Trust
Kevin R. Fay
Vice President, Secretary and Treasurer of the Trust
Janice M. Teague
Assistant Secretary of the Trust
David J. Schultz
Susan G. Kohlman
Assistant Treasurers of the Trust
Investment Advisor
BBOI Worldwide LLC
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS
Together we can move mountains...the world over.(TM)
(C)1997 Berger Associates, Inc.
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