<PAGE>
The Berger Funds
[PICTURE APPEARS HERE]
September 30, 1997
Berger New Generation Fund
Berger Small Company Growth Fund
Berger Small Cap Value Fund
Berger 100 Fund
Berger/BIAM International Fund
Berger Growth and Income Fund
Berger Balanced Fund
<PAGE>
The Berger Funds are presenting a combined annual report which includes the
Berger New Generation Fund, Berger Small Company Growth Fund, Berger Small Cap
Value Fund, Berger 100 Fund, Berger BIAM/International Fund, Berger Growth and
Income Fund, and Berger Balanced Fund. This report reflects the financial
position of each Fund at September 30, 1997 and the results of their operations
for the period then ended and changes in their net assets and their financial
highlights for each of the periods indicated, in a single document.
<PAGE>
<TABLE>
<C> <S>
2 A Letter from the President
The Berger Funds
4 Berger New Generation Fund
10 Berger Small Company Growth Fund
17 Berger Small Cap Value - Investor Shares/Institutional Shares
23 Berger 100 Fund
29 Berger/BIAM International Fund
33 Berger Growth and Income Fund
39 Berger Balanced Fund
42 Berger Funds Notes to Financial Statements
46 Berger/BIAM International Portfolio
52 Berger/BIAM International Portfolio Notes to Financial Statements
55 Financial Highlights
</TABLE>
[LOGO OF BERGER FUNDS APPEARS HERE]
To obtain a prospectus for any of the Berger Funds, which contains more complete
information, including management fees, charges and expenses, call
1.800.333.1001. Please read it carefully before you invest. Berger Distributors,
Inc. - Distributor
<PAGE>
2
Dear
Fellow
Shareholders
A Letter from the President
This past fiscal year
was the most active and exciting
year in The Berger Funds history.
We concentrated on several clear goals * attracting more world class portfolio
managers * expanding our innovative, fundamentally sound line-up of products *
providing strong, consistent performance across all funds * and enhancing our
customer services and support.
I am pleased to report that we have made very significant progress on all
fronts. Here are a few of the highlights:
Our Small Company Growth and New Generation Funds both rebounded sharply from a
small cap bear market earlier this year. The performance of both Funds has been
recognized recently by major national publications/1,2/. The Funds are managed
by Bill Keithler who was again listed among the nation's top 100 managers in
Barron's recent annual issue that highlights the country's best mutual fund
managers.
We expanded our line-up of fund offerings this year by adding the Berger Small
Cap Value Fund, the Berger/BIAM International Fund and the Berger Balanced Fund.
By year-end we plan on offering you two more funds, a Select Fund and a Mid Cap
Growth Fund. In all, we will have dramatically increased the range of Berger
investment opportunities available to you. This expansion is driven by what
we've heard loud and clear from you, our customers, in extensive research we
conducted this year: give us more choice, more stock investment opportunities
and excellent service. We intend to do just that.
The Small Cap Value Fund, managed by 30-year investment veteran Bob Perkins, had
a terrific year, and also offers a strong long-term track record/1/. Bob
specializes in investing in sharply undervalued small cap companies that he
believes have excellent future prospects./2/
We were delighted to form a joint venture with the Bank of Ireland Asset
Management (U.S.) Limited ("BIAM")/3/, one of the oldest, most respected and
successful managers of international investments in Europe. The partnership
spawned the first of what is planned to be a series of international funds. The
Berger/BIAM International Fund generally focuses on mid to large cap
multinational companies outside the U.S. with strong balance sheets, proven
management and diversified earnings in well-regulated, stable foreign markets.
<PAGE>
In February we hired Patrick Adams to take over management of the Berger 100
Fund. Although it had shown gains, the Fund had not performed up to our
expectations. We searched for a proven portfolio manager with a successful track
record in the growth fund area to reinvigorate it. Patrick fit the bill. It took
him several months to reposition the portfolio, and today the Fund is performing
better/1/. Money Magazine recently listed the Fund among its 10-year "winners."
We also repositioned the Growth and Income Fund under new portfolio managers.
It, too, is performing much better/1/.
We made a major effort to improve and expand our shareholder services. We
completely rewrote our prospectus in plain English to make it shorter and easier
to understand (look for it in your mail in the coming weeks). We redesigned our
information kit, making it easier to use and more helpful. We expanded the
capabilities of our Quick Access toll-free number to provide you with more
services. It has a simplified menu, faster and more personalized access to your
investments, automated ordering of duplicate tax forms and complete instructions
for communicating with us.
This fall we launched our new web site at www.bergerfunds.com. It provides
background information on all our Funds, performance listings, e-mail, access to
your accounts, status reports, purchases, exchanges and much more.
We have remained vigilant about controlling expenses. I'm pleased to report that
we continue to reduce our expenses. Since 1991, we have cut expenses for the
Berger 100 and Growth and Income Funds about 35% and 40%, respectively. Since
1994, expenses for Small Company Growth are down about 18%.
We believe we are in excellent shape as we head into another year. With a little
help from the markets we are looking forward to an outstanding year.
Everyday we are appreciative of the trust you place in us here at Berger. We
will do our absolute best to continue to earn it.
/s/ Jerry Lavin
Jerry Lavin,
President
To obtain a prospectus for any of The Berger Funds, which contains more complete
information, including management fees, charges and expenses, call
1-800-333-1001. Please read it carefully before you invest. Berger Distributors,
Inc.-Distributor
1. Past performance does not guarantee future results.
2. Investments in small companies may involve greater risks, including price
volatility, and rewards than investments in larger companies.
3. 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. Mutual
fund investments are subject to investment risk, including possible loss of
the principal invested.
3 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger New Generation Fund [ART WORK APPEARS HERE]
Portfolio Manager's Commentary William Keithler
Performance
During the fiscal year ended September 30, 1997, the Berger New Generation Fund
(the "Fund") delivered an annual total return to investors of 31.53%./1/ This
compares to 40.43% for the S&P 500/2/ and 33.19% for the Russell 2000./3/ While
the Fund is not directly comparable to either of these market indexes, it
nevertheless is useful to compare fund performance with widely watched market
indicators.
Over the course of this fiscal year, shareholders experienced both extremes of
performance. The bear market in aggressive growth stocks, which ran from October
1996 through mid-April 1997, caused the Fund to severely underperform the broad
market. During this period, investors preferred to own slower growing, large cap
"index" stocks, such as Procter and Gamble, Gillette and Coca-Cola, and eschewed
owning the more aggressive stocks that are the staples of this Fund. That tide
turned in April, however, when valuations of the narrow group of stocks that
dominated the performance of the S&P 500 and of the emerging growth sector of
the market got too far apart. As the market began to shift away from index/blue
chip stocks to smaller and mid cap stocks, the latter began to significantly
outperform. This outperformance was reflected in Fund performance. In the month
of May 1997 the Fund was up 21.46%,/1/ and in the month of September it also was
up strongly, rising 10.01%./1/
Although we would caution that the performance demonstrated these two months is
unsustainable, we believe that the longer-term outlook is favorable for the
emerging growth stocks in which the Fund invests. The economy continues to perk
along, although not at a rate that puts pressure on interest rates. Inflation
doesn't appear to be a serious threat, although we are keeping an eye on labor
costs. Valuations, while higher than a few months ago, are not in the
stratosphere. Market psychology seems favorably disposed toward growth
companies.
Year in Review
The largest weighting in the Fund is technology. This sector is fertile ground
for investment candidates for the Fund because of our charter, which is to seek
investments in companies that are attempting to bring products/services to
market that have the potential to change the way business is conducted in their
industries. The Fund has wide-ranging holdings in technology, including
software, semiconductor, semiconductor capital equipment, computer, peripheral
and service companies. Possibly the most dramatic gains for the Fund were
derived from its sizeable holdings in the semiconductor capital equipment
industry. Significant performers included Applied Materials; ASM Lithography
Holding N.V.; LAM Research Corporation; FEI Company; Credence Systems, Corp.;
Integrated Process Equipment Corp.; and CMG Information Services, Inc. Yahoo,
Inc.; Premenos Technology Corp.; CSG Systems International Inc.; Lycos, Inc.;
and America Online, Inc. also had strong stock price gains.
The Fund seeks to benefit from new ways of doing things and these three leaders
in their fields are typical of the companies in which the Fund invests: Discreet
Logic, Inc., is helping usher in the age of digital television; Sandisk
Corporation, is developing technology for digital cameras; and E*Trade Group,
Inc. is pioneering the use of on-line investment trading.
Healthcare is another area in which new developments are constantly occurring.
Some standout performers in this sector included Aurora Biosciences Corp.,
Theragenics Corp., and Qiagen N.V.
Looking Ahead
Stocks held in this Fund are often extremely volatile. Investors need to
understand that this Fund is aggressive and can experience violent price swings.
For example, the Fund declined some 17% early in the year and subsequently
rebounded to stand at 34.55% year-to-date as of 9/30/97. That's a swing of over
50% in less than six months.
Such performance is, of course, difficult to duplicate. But, as noted earlier,
we believe that the outlook for aggressive growth stocks is favorable and that
should bode well for the performance of the Fund.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2. The S&P 500 is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 500 publicly traded U.S. companies. It is
a generally recognized indicator used to measure overall performance of the
U.S. stock market. One cannot invest directly in an index.
3. The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of common stocks of 2000 U.S. companies with market
capitalization of $172 million to $1.1 billion. It is a generally
recognized indicator used to measure overall performance of small company
stocks. One cannot invest directly in an index.
4 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
New Generation
Fund
Performance Overview
Comparison of Change in Value of Berger New Generation Fund vs. S&P 500 Stock
Index and Cost of Living Index
<TABLE>
<CAPTION>
Berger
New Generation Cost of Living
Date Fund S&P 500 Increase
---- -------------- ------- --------------
<S> <C> <C> <C>
3/29/96 10,000 10,000 10,000
6/30/96 11,290 10,504 10,064
9/30/96 11,820 10,826 10,135
12/31/96 11,555 11,727 10,186
3/31/97 9,643 12,043 10,276
6/30/97 11,977 14,141 10,295
9/30/97 15,547 15,199 10,328
</TABLE>
The Berger New Generation Fund*
Average Annual Total Return
<TABLE>
<CAPTION>
As of September 30, 1997
- ------------------------
<S> <C>
1 Year 31.5%
Life of Fund 33.9%
(3/29/96)
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares.
Report of Independent Accountants
To the Board of Trustees and Shareholders of Berger Investment Portfolio Trust
- --------------------------------------------------------------------------------
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger Small Company Growth Fund,
Berger New Generation Fund and Berger Balanced Fund (constituting Berger
Investment Portfolio Trust, hereafter referred to as the "Trust") at September
30, 1997, the results of each of their operations for each of the periods
indicated, the changes in each of their net assets for each of the periods
indicated and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provide a reasonable basis for the opinion expressed above. The
financial statements of Berger Small Company Growth Fund for the period ended
September 30, 1994 were audited by other independent accountants whose report
dated October 28, 1994 expressed an unqualified opinion on those financial
statements.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
5 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
New Generation
Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (80.7%) September 30, 1997
- ------------------------------------------------------------------------------
<S> <C>
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
Commercial Services - Advertising (0.6%)
40,000 Outdoor Systems, Inc.* $ 1,050,000
- ------------------------------------------------------------------------------
Commercial Services - Miscellaneous (2.6%)
85,000 Inspire Insurance Solutions, Inc.* 1,540,625
40,000 NCO Group, Inc.* 1,480,000
65,000 Pegasus Systems, Inc.* 1,178,125
25,000 Vincam Group, Inc.* 718,750
- ------------------------------------------------------------------------------
4,917,500
- ------------------------------------------------------------------------------
Commercial Services - Security/Safety (1.3%)
60,000 Childrens Comprehensive Services* 1,290,000
70,000 Vivid Technologies, Inc.* 1,085,000
- ------------------------------------------------------------------------------
2,375,000
- ------------------------------------------------------------------------------
Commercial Services - Schools (0.4%)
17,500 Apollo Group, Inc. - Class A* 741,563
- ------------------------------------------------------------------------------
Computer - Graphics (0.8%)
100,000 Children's Place Retail Stores, Inc.* 1,450,000
- ------------------------------------------------------------------------------
Computer - Integrated Systems (1.8%)
35,000 Apex PC Solutions, Inc.* 1,325,625
80,000 Discreet Logic, Inc.* 2,125,000
- ------------------------------------------------------------------------------
3,450,625
- ------------------------------------------------------------------------------
Computer - Local Networks (1.3%)
50,000 Daou Systems, Inc.* 1,562,500
60,000 New Era of Networks, Inc.* 825,000
- ------------------------------------------------------------------------------
2,387,500
- ------------------------------------------------------------------------------
Computer - Memory Devices (1.3%)
70,000 Sandisk Corporation* 2,520,000
- ------------------------------------------------------------------------------
Computer - Mini/Micro (1.6%)
22,500 Compaq Computer Corporation 1,681,875
50,000 Data General Corporation* 1,331,250
- ------------------------------------------------------------------------------
3,013,125
- ------------------------------------------------------------------------------
Computer - Peripheral Equipment (2.3%)
35,000 Micros Systems, Inc.* 1,750,000
150,000 Sigma Designs, Inc.* 1,246,875
35,000 Splash Technology Holdings, Inc.* 1,369,375
- ------------------------------------------------------------------------------
4,366,250
- ------------------------------------------------------------------------------
Computer - Services (7.8%)
25,000 America Online, Inc.* 1,885,935
35,000 CSG Systems International, Inc.* 1,323,437
45,000 E*Trade Group, Inc.* 2,115,000
55,000 Excite, Inc.* 1,565,781
50,000 HBO & Company 1,887,500
40,000 Metro Information Services, Inc.* 875,000
48,000 Technology Solutions Company* 1,548,000
65,000 Whittman-Hart, Inc.* 1,982,500
33,000 Yahoo, Inc.* 1,654,125
- ------------------------------------------------------------------------------
14,837,278
- ------------------------------------------------------------------------------
Computer - Software (8.5%)
65,000 Axent Technologies, Inc.* 1,348,750
35,000 Best Products Company* 511,875
20,000 BMC Software, Inc.* 1,295,000
51,000 J.D. Edwards* 1,708,500
60,000 Keane, Inc.* 1,905,000
120,000 Premenos Technology Corporation* 1,725,000
60,000 QAD, Inc.* 1,117,500
105,000 Quadramed Corporation* 1,811,250
8,700 Remedy Corporation* 299,606
30,000 Transaction System Architects, Inc.* 1,218,750
50,000 Tripos, Inc.* 950,000
22,500 Veritas Software Corporation* 988,594
25,000 VIASOFT, Inc.* 1,237,500
- ------------------------------------------------------------------------------
16,117,325
- ------------------------------------------------------------------------------
Electrical Products - Miscellaneous (0.7%)
35,000 Powerwave Technologies, Inc.* 1,356,250
- ------------------------------------------------------------------------------
Electronic - Scientific Instruments (0.1%)
7,900 Molecular Dynamics* 213,300
- ------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (3.3%)
10,400 Applied Materials, Inc.* 990,600
10,400 ASM Lithography Holding N.V.* 1,027,000
75,000 FEI Company* 1,556,250
32,500 Integrated Process
Equipment Corporation* 1,198,438
13,000 KLA Tenor Corporation* 878,312
14,300 Lam Research Corporation* 664,950
- ------------------------------------------------------------------------------
6,315,550
- ------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (1.5%)
23,400 Credence Systems Corporation* 1,140,750
25,000 Linear Technology Corporation 1,718,750
- ------------------------------------------------------------------------------
2,859,500
- ------------------------------------------------------------------------------
Financial - Equity Real Estate Investment Trust (0.6%)
30,000 CCA Prison Realty Trust 1,132,500
- ------------------------------------------------------------------------------
Finance - Small Business Investment Company & Commercial (0.5%)
30,000 Safeguard Scientifics, Inc.* 877,500
- ------------------------------------------------------------------------------
Financial Services - Miscellaneous (1.4%)
70,000 Checkfree Corporation* 1,478,750
100,000 Warrantech Corporation* 1,137,500
- ------------------------------------------------------------------------------
2,616,250
- ------------------------------------------------------------------------------
Food - Miscellaneous Preparation (0.6%)
50,000 Worthington Foods, Inc. 1,156,250
- ------------------------------------------------------------------------------
Insurance - Life (1.0%)
100,000 AHL Services, Inc. 1,825,000
- ------------------------------------------------------------------------------
Leisure Products (0.6%)
45,000 The North Face, Inc.* 1,209,375
- ------------------------------------------------------------------------------
Media - Cable TV (1.4%)
100,000 Lodgenet Entertainment Corporation * 1,325,000
24,374 TCI Ventures Group - Class A* 502,724
42,625 Tele-Communications, Inc. - Class A* 873,822
- ------------------------------------------------------------------------------
2,701,546
- ------------------------------------------------------------------------------
Media - TV/Radio (1.3%)
50,000 American Radio Systems* 2,381,250
- ------------------------------------------------------------------------------
</TABLE>
6 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
New Generation
Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (80.7%) - continued September 30, 1997
- ------------------------------------------------------------------------------
<S> <C>
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
Medical - Biomedics/Genetics (2.7%)
33,000 Centocor, Inc.* $ 1,569,563
100,000 Creative Biomolecules, Inc.* 1,075,000
50,000 Genzyme Corporation* 1,487,500
35,000 Life Technologies, Inc. 1,058,750
- ------------------------------------------------------------------------------
5,190,813
- ------------------------------------------------------------------------------
Medical - Dental - Supplies (0.5%)
42,500 Monarch Dental Corporation* 913,750
- ------------------------------------------------------------------------------
Medical - Ethical Drugs (3.8%)
100,000 Aurora Biosciences Corporation* 1,431,250
45,000 Dura Pharmaceuticals* 1,963,125
40,000 PathoGenesis Corporation* 1,420,000
50,000 Theragenics Corporation* 2,481,250
- ------------------------------------------------------------------------------
7,295,625
- ------------------------------------------------------------------------------
Medical - Generic Drugs (0.6%)
27,000 Andrx Corporation* 1,228,500
- ------------------------------------------------------------------------------
Medical - Hospitals (0.9%)
40,000 Universal Health Services, Inc.* 1,730,000
- ------------------------------------------------------------------------------
Medical - Instruments (0.6%)
70,000 Ventana Medical Systems* 1,128,750
- ------------------------------------------------------------------------------
Medical - Outpatient/Home Care (1.3%)
35,000 Harbinger Corporation* 1,273,125
50,000 PMR Corporation* 1,112,500
- ------------------------------------------------------------------------------
2,385,625
- ------------------------------------------------------------------------------
Medical - Wholesale Drug/Sundries (0.6%)
11,500 McKesson Corporation 1,172,281
- ------------------------------------------------------------------------------
Oil & Gas - Canadian Exploration
& Production (0.7%)
62,500 Gulf Indonesia Resources, Ltd.* 1,390,625
- ------------------------------------------------------------------------------
Oil & Gas - U.S. Drilling (0.2%)
11,000 UTI Energy Corp.* 434,500
- ------------------------------------------------------------------------------
Oil & Gas - Field Services (0.4%)
18,700 Veritas DGC, Inc.* 795,919
- ------------------------------------------------------------------------------
Pollution Control - Equipment (0.7%)
30,000 Culligan Water Technologies, Inc. 1,380,000
- ------------------------------------------------------------------------------
Pollution Control - Services (4.1%)
55,000 American Disposal Services, Inc.* 1,718,750
55,000 Republic Industries, Inc.* 1,811,564
55,000 Superior Services, Inc.* 1,567,500
45,000 Waste Industries, Inc.* 1,077,188
90,000 Waterlink, Inc.* 1,687,500
- ------------------------------------------------------------------------------
7,862,502
- ------------------------------------------------------------------------------
Real Estate Operations (1.0%)
52,500 Fairfield Communities, Inc.* 1,972,031
- ------------------------------------------------------------------------------
Retail - Miscellaneous Diversified (0.8%)
100,000 Ugly Duckling Corporation* 1,525,000
- ------------------------------------------------------------------------------
Retail - Restaurants (0.7%)
75,000 Schlotsky's, Inc.* 1,420,313
- ------------------------------------------------------------------------------
Retail/Wholesale Computers (1.5%)
50,000 Ingram Micro, Inc. - Class A* $ 1,353,125
75,000 Southern Electronics Corporation* 1,462,500
- ------------------------------------------------------------------------------
2,815,625
- ------------------------------------------------------------------------------
Steel - Specialty Alloys (0.8%)
45,000 Carbide/Graphite Group, Inc.* 1,530,000
- ------------------------------------------------------------------------------
Telecommunications - Cellular (1.1%)
45,000 Cellstar Corporation* 2,092,500
- ------------------------------------------------------------------------------
Telecommunications - Equipment (8.1%)
55,000 Brightpoint, Inc.* 2,550,625
40,000 DSC Communications Corporation* 1,077,500
40,000 ECI Telecom Ltd. (Israel)* 1,295,000
75,000 Globecomm Systems, Inc.* 1,312,500
62,000 Innova Corporation (Washington)* 1,464,750
150,000 Intellect Communication Systems, Ltd.* 1,706,250
80,000 P-COM, Inc.* 1,915,000
52,500 Remec, Inc.* 1,916,250
54,000 Scientific-Atlanta, Inc. 1,221,750
18,000 Tellabs, Inc.* 927,000
- ------------------------------------------------------------------------------
15,386,625
- ------------------------------------------------------------------------------
Telecommunications - Services (6.0%)
38,000 Intermedia Communications, Inc.* 1,783,625
55,000 LCI International, Inc.* 1,464,375
75,000 Nextel Communications, Inc.* 2,165,625
70,000 Nextlink Communications* 1,680,000
50,000 RSL Communications, Inc. - Class A* 1,100,000
32,000 Teleport Communications Group, Inc.* 1,436,000
50,000 WorldCom, Inc.* 1,768,750
- ------------------------------------------------------------------------------
11,398,375
- ------------------------------------------------------------------------------
Textile - Mill Products (0.3%)
19,000 Novel Denim Holdings, Ltd.* 513,000
- ------------------------------------------------------------------------------
Total Common Stock (Cost $108,994,333) 153,432,796
- ------------------------------------------------------------------------------
U.S. Government Obligations (9.4%)
- ------------------------------------------------------------------------------
$2,313,000 U.S. Treasury Bills due 10/16/97 2,308,123
5,270,000 U.S. Treasury Bills due 11/13/97 5,239,204
1,400,000 U.S. Treasury Bills due 11/20/97 1,390,822
9,000,000 U.S. Treasury Bills due 11/28/97 8,929,530
- ------------------------------------------------------------------------------
Total U.S. Government Obligations
(Amortized Cost $17,867,679) 17,867,679
- ------------------------------------------------------------------------------
Federal National Mortgage Association Discount Notes (1.9%)
- ------------------------------------------------------------------------------
$2,600,000 FNMA Discount Notes Due 10/20/97 2,592,659
980,000 FNMA Discount Notes Due 10/30/97 975,689
- ------------------------------------------------------------------------------
Total FNMA Discount Notes
(Amortized Cost $3,568,348) 3,568,348
- ------------------------------------------------------------------------------
Total Investments (Cost $130,430,359) (92.0%) 174,868,823
(Cost for federal income tax purposes $130,975,985)
Other Assets, Less Liabilities (8.0%) 15,295,220
- ------------------------------------------------------------------------------
Net Assets (100%) $190,164,043
- ------------------------------------------------------------------------------
</TABLE>
* Non-Income Producing Security
See notes to financial statements.
7 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
New Generation
Fund
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset
Value Per Share)
<TABLE>
<CAPTION>
September 30, 1997
- -------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 130,430
- -------------------------------------------------------------------------------------------------------
Investments at value $ 174,869
Cash 1,140
Receivables
Fund shares sold 27,028
Investment securities sold 2,098
Dividends 17
- -------------------------------------------------------------------------------------------------------
Total Assets 205,152
- -------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 14,276
Fund shares redeemed 481
Accrued investment advisory fees 108
Accrued transfer agent fees 38
Accrued shareholder report expense 49
Accrued 12b-1 distribution & advertising fees 30
Other accrued expenses 6
- -------------------------------------------------------------------------------------------------------
Total Liabilities 14,988
- -------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 190,164
- -------------------------------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
Shares Outstanding 12,918
- -------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 14.72
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Statement of Operations (Amounts in Thousands)
- -------------------------------------------------------------------------------------------------------
For the Year Ended
September 30, 1997
- -------------------------------------------------------------------------------------------------------
Investment Income
Income
Dividends $ 47
Interest 340
- -------------------------------------------------------------------------------------------------------
Total Income 387
- -------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 962
12b-1 distribution & advertising fees 267
Transfer agent fees 478
Postage, printing & reports 211
Registration fees 28
Custodian fees 12
Directors'/Trustees' fees & expenses 12
Accounting fees 11
Administrative services 20
Legal fees 10
Insurance & bonds 1
Audit fees 8
Other 1
- -------------------------------------------------------------------------------------------------------
Total Expenses 2,021
Less earnings credits (17)
- -------------------------------------------------------------------------------------------------------
Expenses - Net 2,004
- -------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (1,617)
- -------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on security transactions 5,045
Net change in unrealized appreciation (depreciation) on security transactions 30,174
- -------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment Transactions 35,219
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 33,602
- -------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
8 The Berger Funds September 30, 1997 Annual Report
<PAGE>
Berger
New Generation
Fund
Statement of Changes in Net Assets (Amounts in Thousands)
<TABLE>
<CAPTION>
Period From
Year Ended 3/29/961 to
9/30/97 9/30/96
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (1,617) $ 5,577
Net realized gain (loss) on security transactions 5,045 (12,961)
Net change in unrealized appreciation (depreciation) on security transactions 30,174 14,263
Net Increase (Decrease) in Net Assets Resulting from Operations 33,602 6,879
From Dividends and Distributions to Shareholders
Net investment income (5,581) 0
Net realized gains on investments 0 0
- -------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (5,581) 0
- -------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 188,054 152,836
Net asset value of shares issued in reinvestment of dividends 5,398 0
- -------------------------------------------------------------------------------------------------------
Total 193,452 152,836
Payments for shares redeemed (148,221) (42,803)
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions 45,231 110,033
Increase (Decrease) in Net Assets 73,252 116,912
Net Assets
Beginning of period 116,912 0
- -------------------------------------------------------------------------------------------------------
End of period $ 190,164 $ 116,912
- -------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 153,765 $ 110,033
Undistributed net investment income (loss) (7) 5,577
Undistributed net realized gain (loss) from investments (8,031) (12,961)
Unrealized appreciation (depreciation) on investments 44,437 14,263
- -------------------------------------------------------------------------------------------------------
Total $ 190,164 $ 116,912
- -------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
- -------------------------------------------------------------------------------------------------------
Shares sold 15,166 13,724
Shares issued to shareholders in reinvestment of dividends 499 0
- -------------------------------------------------------------------------------------------------------
Total 15,665 13,724
Shares repurchased (12,637) (3,834)
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 3,028 9,890
Shares outstanding, beginning of period 9,890 0
- -------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 12,918 9,890
- -------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
See notes to financial statements.
9 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger Small Company Growth Fund [ARTWORK APPEARS HERE]
Portfolio Manager's Commentary William Keithler
Performance
During the fiscal year ended September 30, 1997, the Berger Small Company Growth
Fund's (the "Fund") annual total return was 17.68%/1/. This compares to 33.19%
for the Russell 2000/2/. The Russell 2000-Growth index (a more accurate
comparison for the Berger Small Company Growth Fund) was up 23.26% for the 12-
month period ending September 30, 1997.
The past 12 months have been volatile for investors in small company stocks. In
many ways, there have been two markets during this period.
Year in Review
Although the Fund performed reasonably well in this schizophrenic market, the
volatility (a characteristic that goes with small cap-aggressive growth) was
sometimes difficult and unsettling. As has been noted in prior letters to
shareholders, the Fund has invested extensively in technology stocks throughout
its history. These stocks are often highly volatile, but generally have provided
good long term returns to investors. This fiscal year was no exception. The
Fund's exposure to technology drove performance on both the upside and the
downside. Many technology stocks have been held by the Fund for a long time,
including Kent Electronics Corp., Safeguard Scientifics, Inc., and Cambridge
Technology Partners. The Fund's weighting in semiconductor capital equipment
companies such as Kulicke and Soffa Industries, Inc., Integrated Process
Technology, Inc., ADE Corp. of Massachusetts, and Etec Systems, Inc. gave the
Fund an additional lift. While we took some profits in this sector and modestly
downscaled our weighting, technology remains a significant sector in the Fund.
By far, the most successful single investment for the Fund was the electronic
auctioneer, Onsale Corp. The stock was purchased as an initial public offering
when the market was very poor for such stocks. When these types of stocks came
back into favor, however, Onsale Corp. was much sought after. As of the Fund's
year-end, Onsale Corp.'s price had risen over five-fold. Other solid
contributors to performance were Fairfield Communities, a vacation interval
company; Consolidated Cigar Corp.; and broadcaster Clear Channel Communications,
a long time holding.
Incyte Pharmaceuticals Inc., a leader in the emerging field of human genomic,
led the charge as the healthcare sector of the portfolio made a positive
contribution to Fund performance. Other strong performers included Medic
Computer Systems, Inc., a provider of healthcare information systems; FPA
Medical Management, Inc., a healthcare service company; and Coventry Corp., a
health maintenance organization. Less successful healthcare investments included
Vertex Pharmaceuticals and Rotech Medical, emerging biotechnology firms that
fell victim to proposed cuts in Medicare spending.
Energy services, financial services, and commercial services provided positive
momentum to the Fund. Marine Drilling Co., Sirrom Capital Corp., and Technology
Solutions, all long time holdings of the Fund, were among the leaders in their
respective sectors.
Looking Ahead
Small cap stocks are currently in favor with the market and we believe the
outlook for their continued outperformance remains good. We remain focused on
companies we believe have the potential to provide investors with sustained
outperformance over the long term. If we are successful in finding enough of
these companies, Fund shareholders should enjoy the benefits.
We thank you for your continued confidence.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of common stocks of 2000 U.S. companies with market
capitalization of $172 million to $1.1 billion. It is a generally recognized
indicator used to measure overall performance of small company stocks. One
cannot invest directly in an index.
10 The Berger Funds September 30, 1997 Annual Report
<PAGE>
Berger
Small Company
Growth Fund
Performance Overview
Comparison of Change In Value of Berger Small Company Growth
Fund vs. Russel 2000 and Cost of Living Index
<TABLE>
<CAPTION>
Berger Small
Company Growth Cost of Living
Date Fund Russell 2000 Index
- -------------------------------------------------------------
<S> <C> <C> <C>
12/30/93 10,000 10,000 10,000
3/31/94 10,120 9,734 10,096
6/30/94 9,440 9,353 10,151
9/30/94 10,960 10,003 10,247
12/31/94 11,373 9,818 10,267
3/31/95 11,734 10,271 10,384
6/30/95 12,414 11,234 10,460
9/30/95 14,457 12,343 10,508
12/31/95 15,218 12,611 10,528
3/31/96 16,179 13,254 10,679
6/30/96 18,742 13,917 10,748
9/30/96 18,982 13,964 10,823
12/31/96 17,770 14,691 10,878
3/31/97 15,800 13,931 10,974
6/30/97 18,692 16,190 10,995
9/30/97 22,338 18,599 11,029
</TABLE>
The Berger Small Company Growth Fund*
<TABLE>
<CAPTION>
Average Annual Total Return
As of September 30, 1997
- ------------------------
<S> <C>
1 Year 17.7%
Life of Fund 23.9%
(12/30/93)
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
Report of Independent Accountants
To the Board of Trustees and Shareholders of
Berger Investment Portfolio Trust
- --------------------------------------------------------------------------------
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger Small Company Growth Fund,
Berger New Generation Fund and Berger Balanced Fund (constituting Berger
Investment Portfolio Trust, hereafter referred to as the "Trust") at September
30, 1997, the results of each of their operations for each of the periods
indicated, the changes in each of their net assets for each of the periods
indicated and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provide a reasonable basis for the opinion expressed above. The
financial statements of Berger Small Company Growth Fund for the period ended
September 30, 1994 were audited by other independent accountants whose report
dated October 28, 1994 expressed an unqualified opinion on those financial
statements.
/s/ Price Waterhouse
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
11 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger Small Company Growth Fund
- ------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (89.6%) September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Building - Residential/Commercial (0.8%)
138,000 Hadco Corporation* $ 7,473,563
- ------------------------------------------------------------------------------
Commercial Services - Miscellaneous (2.6%)
238,500 American Oncology Resources, Inc.* 3,845,812
100,000 CMG Information Services* 2,462,500
350,000 FPA Medical Management, Inc.* 12,031,250
231,600 Labor Ready, Inc.* 5,384,700
- ------------------------------------------------------------------------------
23,724,262
- ------------------------------------------------------------------------------
Commercial Services - Schools (0.3%)
80,500 Devry, Inc.* 2,404,938
- ------------------------------------------------------------------------------
Computer - Graphics (0.7%)
105,000 Applied Graphics Technologies, Inc.* 5,906,250
- ------------------------------------------------------------------------------
Computer - Integrated Systems (0.7%)
155,000 Wind River Systems, Inc.* 6,393,750
- ------------------------------------------------------------------------------
Computer - Local Networks (0.1%)
12,000 Ascend Communications, Inc. 388,500
- ------------------------------------------------------------------------------
Computer - Memory Devices (2.2%)
699,000 HMT Technology Corporation* 10,965,563
200,000 Microchip Technology, Inc.* 9,031,250
- ------------------------------------------------------------------------------
19,996,813
- ------------------------------------------------------------------------------
Computer - Services (9.1%)
174,400 Ciber, Inc.* 8,240,400
289,700 E*Trade Group, Inc.* 13,615,900
5,000 Gartner Group, Inc.* 150,000
210,000 HBO & Company* 7,927,500
315,625 Lycos, Inc.* 10,731,250
65,000 National Data Corporation* 2,665,000
195,000 Quick Response Services, Inc* 6,678,750
370,000 Technology Solutions Co.* 11,932,500
375,000 Whittman-Hart, Inc.* 11,437,500
175,500 Yahoo, Inc.* 8,796,938
- ------------------------------------------------------------------------------
82,175,738
- ------------------------------------------------------------------------------
Computer - Software (5.6%)
50,000 Baan Co. N.V.* 3,550,000
149,500 Bea Systems, Inc.* 2,672,312
250,000 Cambridge Technology Partners, Inc.* 8,953,125
135,000 CBT Group PLC ADR* 10,833,750
215,000 Cognos, Inc.* 5,106,250
750,000 Macromedia, Inc.* 9,046,875
47,000 Remedy Corporation* 1,618,563
170,000 VIASOFT, Inc.* 8,415,000
- ------------------------------------------------------------------------------
50,195,875
- ------------------------------------------------------------------------------
Cosmetics/Personal Care (1.1%)
220,000 Rexall Sundown, Inc.* 10,037,500
- ------------------------------------------------------------------------------
Diversified Operations (0.8%)
115,650 Pittway Corporation - Class A 7,517,250
- ------------------------------------------------------------------------------
Electronic - Measuring Instruments (1.2%)
222,200 Genrad, Inc.* 6,416,025
101,025 Waters Corporation* 4,464,042
- ------------------------------------------------------------------------------
10,880,067
- ------------------------------------------------------------------------------
Electronic - Miscellaneous Components (2.5%)
365,000 Chicago Miniature Lamp, Inc.* $ 12,136,250
340,000 Leitch Technology Corporation
(Canada)* 10,349,270
- ------------------------------------------------------------------------------
22,485,520
- ------------------------------------------------------------------------------
Electronic - Parts Distributors (1.0%)
230,000 Kent Electronics Corporation* 9,085,000
- ------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (4.7%)
136,900 ADE Corporation of Massachusetts* 5,493,112
130,000 Etec Systems, Inc.* 7,410,000
160,000 FEI Company* 3,320,000
240,100 Kulicke & Soffa Industries, Inc.* 11,119,631
80,000 Lattice Semiconductor Corporation* 5,210,000
275,000 Silicon Valley Group* 9,779,688
- ------------------------------------------------------------------------------
42,332,431
- ------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (4.3%)
450,000 Cypress Semiconductor* 6,975,000
150,000 Maxim Integrated Products, Inc.* 10,715,625
650,000 Tower Semiconductor Ltd.*2 12,918,750
233,000 VLSI Technology, Inc.* 8,082,187
- ------------------------------------------------------------------------------
38,691,562
- ------------------------------------------------------------------------------
Finance - Consumer Loans (0.5%)
210,000 Delta Financial Corp.* 4,239,375
- ------------------------------------------------------------------------------
Finance - Equity Real Estate Investment Trust (0.8%)
195,700 CCA Prison Realty Trust 7,387,675
- ------------------------------------------------------------------------------
Finance - Small Business Investment Company & Commercial (1.8%)
250,000 Safeguard Scientifics, Inc.* 7,312,500
171,000 Sirrom Capital Corp. 8,870,625
- ------------------------------------------------------------------------------
16,183,125
- ------------------------------------------------------------------------------
Financial Services - Miscellaneous (1.3%)
185,500 Medaphis Corporation* 1,327,484
380,000 Pre-Paid Legal Services, Inc.* 10,735,000
- ------------------------------------------------------------------------------
12,062,484
- ------------------------------------------------------------------------------
Funeral Services & Related (1.2%)
8,000 Equity Corporation International* 186,500
235,000 Stewart Enterprises, Inc. 10,281,250
- ------------------------------------------------------------------------------
10,467,750
Household/Office Furniture (2.0%)
155,000 Herman Miller, Inc. 8,292,500
290,100 Knoll, Inc.* 9,718,350
- ------------------------------------------------------------------------------
18,010,850
- ------------------------------------------------------------------------------
Insurance - Accident & Health (1.1%)
455,000 Healthcare Recoveries, Inc.* 10,237,500
- ------------------------------------------------------------------------------
Leisure - Hotels & Motels (0.1%)
23,000 Suburban Lodges of America, Inc.* 606,625
- ------------------------------------------------------------------------------
Leisure - Movies & Related (1.5%)
210,000 Avid Technology, Inc.* 6,825,000
562,500 Metromedia International Group* 6,820,313
- ------------------------------------------------------------------------------
13,645,313
- ------------------------------------------------------------------------------
</TABLE>
12 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Company
Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (89.6%) - continued September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Leisure - Products (0.5%)
175,000 The North Face, Inc.* $ 4,703,125
- ------------------------------------------------------------------------------
Media - Books (0.5%)
109,800 Scholastic Corporation* 4,337,100
- ------------------------------------------------------------------------------
Media - Newspapers (0.7%)
90,000 Central Newspapers, Inc. - Class A 6,682,500
- ------------------------------------------------------------------------------
Media- TV/Radio (3.6%)
284,092 Chancellor Media Corporation* 14,950,341
150,000 Clear Channel Communications, Inc.* 9,731,250
28,000 Cox Radio, Inc.* 792,750
146,500 Emmis Broadcasting Corporation* 6,995,375
- ------------------------------------------------------------------------------
32,469,716
- ------------------------------------------------------------------------------
Medical - Biomedics/Genetics (2.7%)
290,000 BioChem Pharma, Inc.* 9,135,000
105,000 Incyte Pharmaceuticals, Inc.* 8,820,000
180,000 Vertex Pharmaceuticals Corp.* 6,795,000
- ------------------------------------------------------------------------------
24,750,000
- ------------------------------------------------------------------------------
Medical - Dental Supplies (1.5%)
273,300 Mentor Corporation 8,677,275
150,000 Omnicare, Inc. 4,875,000
- ------------------------------------------------------------------------------
13,552,275
- ------------------------------------------------------------------------------
Medical - Drug/Diversified (0.4%)
150,000 Boron LePore* 3,468,750
- ------------------------------------------------------------------------------
Medical - Ethical Drug (2.6%)
225,000 Medicis Pharmaceutical Corporation* 10,321,875
265,000 Theragenics Corporation* 13,150,625
- ------------------------------------------------------------------------------
23,472,500
- ------------------------------------------------------------------------------
Medical - Health Maintenance Organizations (0.8%)
420,000 Coventry Corporation* 6,930,000
- ------------------------------------------------------------------------------
Medical - Nursing Homes (0.5%)
200,000 Sun Healthcare Group, Inc.* 4,112,500
- ------------------------------------------------------------------------------
Medical - Outpatient/Home Care (2.9%)
100,000 Healthsouth Corporation* 2,668,750
20,000 PhyCor, Inc.* 581,250
360,000 Renal Care Group, Inc.* 12,960,000
207,700 Total Renal Care Holdings, Inc.* 10,385,000
- ------------------------------------------------------------------------------
26,595,000
- ------------------------------------------------------------------------------
Medical - Products (0.9%)
215,000 PAREXEL International Corporation* 8,492,500
- ------------------------------------------------------------------------------
Oil & Gas - Drilling (1.2%)
350,000 Marine Drilling Companies, Inc.* 10,937,500
- ------------------------------------------------------------------------------
Oil & Gas - Field Services (0.8%)
100,000 BJ Services Co.* 7,425,000
- ------------------------------------------------------------------------------
Oil & Gas - U.S. Exploration & Production (1.0%)
195,000 Barrett Resources Corporation 7,592,812
32,400 St. Mary Land & Exploration Company 1,470,150
- ------------------------------------------------------------------------------
9,062,962
- ------------------------------------------------------------------------------
Pollution Control - Services (3.6%)
600,000 Allied Waste Industries, Inc.* $ 11,475,000
252,000 Eastern Environmental Services, Inc.* 6,426,000
236,000 Newpark Resources, Inc.* 9,277,750
230,000 Tetra Tech, Inc.* 5,635,000
- ------------------------------------------------------------------------------
32,813,750
- ------------------------------------------------------------------------------
Real Estate Operations (1.6%)
375,000 Fairfield Communities, Inc.* 14,085,938
- ------------------------------------------------------------------------------
Retail - Apparel/Shoe (1.1%)
260,000 Men's Wearhouse, Inc.* 9,685,000
- ------------------------------------------------------------------------------
Retail - Mail Order & Direct (3.3%)
200,000 Black Box Corporation* 8,750,000
660,100 Onsale, Inc.* 21,288,225
- ------------------------------------------------------------------------------
30,038,225
- ------------------------------------------------------------------------------
Retail - Miscellaneous/Diversified (2.8%)
250,000 Guitar Center, Inc.* 6,187,500
210,100 Maxim Group, Inc.* 3,414,125
300,000 Michaels Stores, Inc.* 9,168,750
150,000 Petco Animal Supplies, Inc.* 4,706,250
292,000 Sunglass Hut International, Inc.* 2,263,000
- ------------------------------------------------------------------------------
25,739,625
- ------------------------------------------------------------------------------
Telecommunications - Equipment (4.9%)
295,000 Brightpoint, Inc.* 13,680,625
148,500 Comverse Technology, Inc.* 7,833,375
540,000 P-COM, Inc.* 12,926,250
350,000 PairGain Technologies, Inc.* 9,975,000
- ------------------------------------------------------------------------------
44,415,250
- ------------------------------------------------------------------------------
Telecommunications - Services (1.9%)
283,700 ACC Corporation* 9,326,637
310,000 ICG Communications, Inc.* 7,595,000
- ------------------------------------------------------------------------------
16,921,637
- ------------------------------------------------------------------------------
Textile - Mill Products (0.6%)
190,500 Novel Denim Holdings, Ltd.* 5,143,500
- ------------------------------------------------------------------------------
Tobacco (1.2%)
275,000 Consolidated Cigar Holdings, Inc.* 11,240,625
- ------------------------------------------------------------------------------
Total Common Stock (Cost $473,539,710) 809,604,694
- ------------------------------------------------------------------------------
Preferred Stock (0.6%)
- ------------------------------------------------------------------------------
Computer - Peripheral Equipment (0.6%)
665,000 Candescent Technologies Corp.
Series E Preferred Stock/1,2,3/ 4,987,500
- ------------------------------------------------------------------------------
Total Preferred Stock (Cost $3,657,500) 4,987,500
- ------------------------------------------------------------------------------
U.S. Government Obligations (5.2%)
- ------------------------------------------------------------------------------
$6,205,000 U.S. Treasury Bills due 11/6/97 6,174,844
20,000,000 U.S. Treasury Bills due 11/13/97 19,884,442
9,200,000 U.S. Treasury Bills due 11/20/97 9,139,689
12,050,000 U.S. Treasury Bills due 11/28/97 11,956,265
- ------------------------------------------------------------------------------
Total U.S. Government Obligations
(Amortized Cost $47,155,240) 47,155,240
- ------------------------------------------------------------------------------
</TABLE>
13 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Company
Growth Fund
- --------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Federal National Mortgage Association Discount Notes (2.8%)
- ------------------------------------------------------------------------------
<S> <C> <C>
$1,500,000 FNMA Discount Notes Due 10/14/97 $ 1,497,086
3,805,000 FNMA Discount Notes Due 10/20/97 3,794,151
8,500,000 FNMA Discount Notes Due 10/21/97 8,474,500
4,250,000 FNMA Discount Notes Due 10/24/97 4,235,446
1,720,000 FNMA Discount Notes Due 10/27/97 1,713,292
5,920,000 FNMA Discount Notes Due 10/30/97 5,893,962
- ------------------------------------------------------------------------------
Total FNMA Discount Notes
(Amortized Cost $25,608,437) 25,608,437
- ------------------------------------------------------------------------------
Total Investments (Cost $549,960,887) (98.2%) 887,355,871
(Cost for federal income tax purposes $552,582,945)
Other Assets, Less Liabilities (1.8%) 15,328,868
- ------------------------------------------------------------------------------
Net Assets (100.0%) $ 902,684,739
- ------------------------------------------------------------------------------
</TABLE>
ADR - American Depository Receipt
* Non-Income Producing Security
1. Valued in good faith.
2. The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following is
a summary of the transactions with each such affiliate for the year ended
September 30, 1997 (in thousands):
<TABLE>
<CAPTION>
Candescent
Tower Technologies
Alrenco Semiconductor Vidamed Corporation
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Market Value at 9/30/96 $7,350 $ 0 $5,342 $3,658
Purchases at Cost 0 6,696 0 0
Sales at Cost 7,553 0 2,503 0
Change in Unrealized
Appreciation
(Depreciation) 203 6,223 (2,839) 1,330
- ------------------------------------------------------------------------------
Market Value at 9/30/97 0 12,919 0 4,988
- ------------------------------------------------------------------------------
Dividend Income 0 0 0 0
Realized Gain (Loss) (3,605) 0 1,663 0
</TABLE>
3. Schedule of Restricted or Illiquid Securities (in thousands)
<TABLE>
<CAPTION>
Fair Value as a
Security Name Date Acquired Cost Fair Value % of Net Assets
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Candescent Tech.
Corporation Series E
Preferred Stock 5/1/96 $3,658 $4,988 0.6%
</TABLE>
See notes to financial statements.
14 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Company
Growth Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset
Value)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1997
- ---------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 549,961
- ---------------------------------------------------------------------------------------------
Investments at value $ 887,356
Cash 2,247
Receivables
Fund shares sold 9,965
Investment securities sold 6,570
Dividends 768
- ---------------------------------------------------------------------------------------------
Total Assets 906,906
- ---------------------------------------------------------------------------------------------
Liabilities
Payables
Fund shares redeemed 2,038
Investment securities purchased 787
Accrued investment advisory fees 620
Accrued transfer agent fees 328
Accrued postage, printing & reports 219
Accrued 12b-1 distribution & advertising fees 172
Other accrued expenses 57
- ---------------------------------------------------------------------------------------------
Total Liabilities 4,221
- ---------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 902,685
- ---------------------------------------------------------------------------------------------
Capital Shares
Authorized (par value $0.01) Unlimited
- ---------------------------------------------------------------------------------------------
Shares Outstanding 169,243
- ---------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 5.33
- ---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
Statement of Operations (Amounts in Thousands)
- ---------------------------------------------------------------------------------------------
For the Year Ended
September 30, 1997
- ---------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividends $ 1,413
Interest 2,920
- ---------------------------------------------------------------------------------------------
Total Income 4,333
- ---------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 6,831
12b-1 distribution & advertising fees 1,899
Transfer agent fees 2,473
Postage, printing & reports 1,008
Registration fees 89
Custodian fees 83
Directors'/Trustees' fees & expenses 86
Accounting fees 76
Administrative services 78
Legal fees 63
Insurance & bonds 11
Audit fees 13
Other 3
- ---------------------------------------------------------------------------------------------
Total Expenses 12,713
Less fees paid indirectly (14)
Less earnings credits (108)
- ---------------------------------------------------------------------------------------------
Expenses - Net 12,591
- ---------------------------------------------------------------------------------------------
Net Investment Income (Loss) (8,258)
- ---------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Transactions
Net realized gain (loss) on securities and foreign currency transactions 78,748
Net change in unrealized appreciation (depreciation)
on securities and foreign currency transactions 48,946
- ---------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments
and Foreign Currency Transactions 127,694
- ---------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 119,436
- ---------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
15 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Company
Growth Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
9/30/97 9/30/96
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (8,258) $ (6,306)
Net realized gain (loss) on securities and foreign currency
transactions 78,748 28,859
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 48,946 152,013
Net Increase (Decrease) in Net Assets Resulting from Operations 119,436 174,566
From Dividends and Distributions to Shareholders
Net Investment Income 0 0
Net realized gains on investments (34,716) 0
- ---------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to
Shareholders (34,716) 0
- ---------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 413,578 670,186
Net asset value of shares issued in reinvestment of distributions 33,942 0
- ---------------------------------------------------------------------------------------------------------------
Total 447,520 670,186
Payments for shares redeemed (501,022) (495,952)
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions (53,502) 174,234
- ---------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 31,218 348,800
Net Assets
Beginning of period 871,467 522,667
- ---------------------------------------------------------------------------------------------------------------
End of period $ 902,685 $ 871,467
- ---------------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 504,096 $ 565,166
Undistributed net investment income (loss) (37) 0
Undistributed net realized gain (loss) from investments 61,231 17,852
Net unrealized appreciation (depreciation) on investments 337,395 288,449
Total $ 902,685 $ 871,467
- ---------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
- ---------------------------------------------------------------------------------------------------------------
Shares sold 92,035 157,794
Shares issued to shareholders in reinvestment of distributions 8,062 0
- ---------------------------------------------------------------------------------------------------------------
Total 100,097 157,794
Shares repurchased (114,558) (118,706)
- ---------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (14,461) 39,088
Shares outstanding, beginning of period 183,704 144,616
- ---------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 169,243 183,704
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
16 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap [PHOTO APPEARS HERE]
Value Fund
Portfolio Manager's Commentary Robert H. Perkins
Performance
The Berger Small Cap Value Fund (the "Fund") had a very rewarding year. The Fund
had an annual total return of 48.32%/1/ (investor shares) and 48.66%/1/
(institutional shares) versus 37.67%, 40.43%, and 33.19% for the Dow Jones
Industrial Average/2/, S&P 500/2/, and Russell 2000/3/ indexes, respectively/4/.
Over the last five months of the fiscal year, small company stocks outperformed
large company stocks by a significant margin. This is the first sustained period
of outperformance since 1993, and we believe it will continue due to the wide
disparity in valuations and relative growth rates that still exist. Of equal
importance is the fact that smaller company outperformance has been largely the
result of strong gains in the "growth" segment of the market, with the "value"
segment lagging. This reinforces our belief that the "value" segment remains the
most undervalued area of the market.
With the S&P 500 trading at 23 to 24 times trailing 12-month earnings, there is
little room for error regarding corporate earnings, interest rates, and economic
surprises. The Russell 2000 - the market index most closely resembling the
stocks in which our Fund typically invests - also sells at approximately 24
times trailing earnings. Historically, this index sells at a 25% premium to the
S&P 500 based on earnings. At present, the vast majority of companies in the
Russell 2000 are expected to have earnings growth that is 50% greater than the
S&P 500 -15% versus 10%. In addition, smaller companies generally have less
international exposure, which means less currency risk. These factors reinforce
our belief that, for the near-term, the relative risk in a fully-priced
investment environment is much less in the small cap market.
Year in Review
While the list of truly undervalued stocks has become shorter, we feel quite
comfortable with our current holdings. We are maintaining a 20% position in the
bank and thrift area. Earnings visibility remains high in this sector and
consolidation continues to make this an attractive area.
Our continuing search for companies that have fallen over 50% in price due to
short-term problems has led us to increase our exposure in the consumer sector.
As we have said in the past, we feel there is much less downside risk in stocks
that are down over 50%, have strong balance sheets, and exhibit what we believe
to be only temporary problems. One such stock is a company called Just for Feet,
Inc. This shoe retailer was trading in the mid-30s last year. The company has
experienced short-term earnings problems as a result of two recent acquisitions.
Management believes it will take a few quarters to implement better internal
controls while its superstore concept, which is posting positive same-store
sales comparisons, remains intact.
Another company in the consumer area that has fallen out of favor is West
Marine, Inc., which dominates the boating supply industry. It, too, has
experienced temporary earnings declines as a result of a major acquisition.
Margins have already begun to improve, however, and the company is expected to
return to 20%+ growth in 1998.
Looking Ahead
Going forward, we find it more important than ever to stress the risk side of
the Fund's risk/reward equation. As of year-end, we had over 14% of Fund assets
in cash and cash equivalents. This largely resulted from our inability to find
many "true" values in the market. However, this cash position gives us the
ability to capitalize on values created by general market corrections or
weaknesses in specific companies due to short-term correctable problems.
We thank you for your investment in the Berger Small Cap Value Fund.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance data for the
Investor Shares include periods prior to the adoption of class designations on
February 14, 1997, and therefore do not reflect the 0.25% per year 12b-1 fee
applicable to the Investor Shares.
2. Dow Jones Industrial Average and the S&P 500 are unmanaged indexes, with
dividends reinvested. One cannot invest directly in an index.
3. The Russell 2000 Index is an unmanaged index, with dividends
reinvested, which consists of common stocks of 2000 U.S. companies with market
capitalizations of $172 million to $1.1 billion. It is a generally recognized
indicator used to measure overall performance of small company stocks. One
cannot invest directly in an index.
4. For the nine month period covered by this Fund's annual report, the Fund's
total return was 29.23% (investor shares, first offered February 14, 1997) and
35.50% (institutional shares). For the same period the return for the Dow Jones
Industrial Average, S&P 500 and Russell 2000 were 24.91%, 29.61% and 26.60%
respectively.
17 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap
Value Fund
Performance Overview
Comparison of Change in Value of Berger Small Cap Value Fund vs. Russell 2000
and Cost of Living Index.
<TABLE>
<CAPTION>
Cost of
Institutional Investor Russell Living
Date Shares Shares 2000 Index
- ---- ------------- -------- ------- -------
<S> <C> <C> <C> <C>
10/21/87 10,000 10,000 10,000 10,000
9/30/88 11,963 11,963 12,866 10,390
9/30/89 15,035 15,035 15,634 10,841
9/30/90 11,979 11,979 11,392 11,509
9/30/91 14,209 14,209 16,532 11,899
9/30/92 15,188 15,188 18,007 12,255
9/30/93 19,779 19,779 23,985 12,585
9/30/94 23,208 23,208 24,613 12,958
9/30/95 27,035 27,035 30,372 13,287
9/30/96 31,425 31,425 34,361 13,686
9/30/97 46,716 46,612 45,765 13,946
</TABLE>
The Berger Small Cap Value Fund*
Average Annual Total Return
<TABLE>
<CAPTION>
As of September 30, 1997 Institutional Investor
- -------------------------------------------------------
<S> <C> <C>
1 Year 48.7% 48.3%
5 Year 25.2% 25.1%
Life of Fund 16.8% 16.7%
(10/21/87)
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares. Performance data for the Investor Shares include periods prior
to the adoption of class designations on February 14, 1997, and therefore do not
reflect the 0.25% per year 12b-1 fee applicable to the Investor Shares.
Report of Independent Accountants
To the Board of Trustees and Shareholders of Berger Omni Investment Trust
- -------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger Small Cap Value Fund
(constituting Berger Omni Investment Trust, formerly known as The Omni
Investment Fund, hereafter referred to as the "Trust") at September 30, 1997,
the results of its operations, the changes in its net assets and the financial
highlights for the period from January 1, 1997 through September 30, 1997, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provides a reasonable basis for the opinion expressed above. The
financial statements of The Omni Investment Fund for the year ended December 31,
1996 were audited by other independent accountants whose report dated January
24, 1997 expressed an unqualified opinion on those financial statements.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
18 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap
Value Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (85.2%) September 30, 1997
- -------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- -------------------------------------------------------------------------------
<S> <C>
Auto/Truck - Original Equipment (3.3%)
200,000 Simpson Industries, Inc. $ 2,312,500
70,000 Walbro Corp. 1,531,250
- -------------------------------------------------------------------------------
3,843,750
- -------------------------------------------------------------------------------
Banks - Northeast (4.8%)
45,000 Banknorth Group, Inc. 2,458,125
140,000 CFX Corporation 3,001,250
- -------------------------------------------------------------------------------
5,459,375
- -------------------------------------------------------------------------------
Banks - Southeast (3.9%)
55,000 CCB Financial Corporation 4,434,375
- -------------------------------------------------------------------------------
Banks - West (2.3%)
70,000 Imperial Bancorp* 2,616,250
- -------------------------------------------------------------------------------
Building - Construction Products/Miscellaneous (0.6%)
40,000 Juno Lighting, Inc. 685,000
- -------------------------------------------------------------------------------
Building - Mobile/Manufacturing & RV (2.1%)
230,000 Cavalier Homes, Inc. 2,386,250
- -------------------------------------------------------------------------------
Computer - Optical Recognition (1.4%)
95,000 Robotic Vision Systems* 1,603,125
- -------------------------------------------------------------------------------
Computer - Peripheral Equipment (2.3%)
75,000 Eltron International, Inc.* 2,573,437
- -------------------------------------------------------------------------------
Computer - Software (0.6%)
35,000 Network General Corporation* 678,125
- -------------------------------------------------------------------------------
Consumer Products - Miscellaneous (4.2%)
176,000 Jostens, Inc. 4,774,000
- -------------------------------------------------------------------------------
Diversified Operations (1.5%)
75,800 Glatfelter PH Co. 1,681,813
- -------------------------------------------------------------------------------
Finance-Equity Real Estate Investment Trust (3.8%)
60,000 IRT Property Co. 765,000
80,000 Summit Property, Inc. 1,750,000
96,100 Town & Country Trust 1,801,875
- -------------------------------------------------------------------------------
4,316,875
- -------------------------------------------------------------------------------
Finance - Investment Management (2.8%)
100,000 Pioneer Group, Inc. 3,200,000
- -------------------------------------------------------------------------------
Finance - Public Investment Fund-Foreign (8.1%)
115,000 Emerging Markets Telecom Fund* 2,077,187
195,000 GT Global Developing Markets Fund 2,656,875
100,000 GT Global Eastern Europe Fund 1,962,500
200,000 Morgan Stanley Asia-Pacific Fund 1,837,500
40,200 New Germany Fund 630,638
- -------------------------------------------------------------------------------
9,164,700
- -------------------------------------------------------------------------------
Finance - Savings & Loan (8.7%)
33,000 Commercial Federal Corp. 1,555,125
110,000 Mechanics Savings Bank* 2,887,500
71,000 Medford Savings Bank 2,556,000
140,000 Poncebank 2,887,500
- -------------------------------------------------------------------------------
9,886,125
- -------------------------------------------------------------------------------
Household - Textiles & Furnishings (1.7%)
170,000 Congoleum Corp. - Class A* 1,901,875
- -------------------------------------------------------------------------------
Insurance - Multi Line (1.4%)
40,000 Old Republic International Corp. 1,560,000
- -------------------------------------------------------------------------------
Machinery - Construction/Mining (1.2%)
110,000 JLG Industries, Inc. 1,409,375
- -------------------------------------------------------------------------------
Machinery - Tools & Related Products (0.8%)
90,800 PPT Vision, Inc.* 873,950
- -------------------------------------------------------------------------------
Media - Cable TV (3.3%)
70,000 Jones Intercable, Inc. - Class A* 883,750
230,000 Jones Intercable, Inc.* 2,846,250
- -------------------------------------------------------------------------------
3,730,000
- -------------------------------------------------------------------------------
Media - Newspapers (1.9%)
160,000 Hollinger International, Inc. 2,140,000
- -------------------------------------------------------------------------------
Media - Periodicals (2.7%)
210,000 Playboy Enterprises, Inc. - Class A* 3,123,750
- -------------------------------------------------------------------------------
</TABLE>
19 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap
Value Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (85.2%) - continued September 30, 1997
- -------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- -------------------------------------------------------------------------------
<S> <C>
Medical - Wholesale Drug/Sundries (1.1%)
80,000 Perrigo Co.* $ 1,260,000
- -------------------------------------------------------------------------------
Oil & Gas - U.S. Exploration & Production (4.6%)
115,000 Chieftain International, Inc.* 2,990,000
18,000 Pogo Producing Company 786,375
55,000 Seagull Energy Corporation* 1,402,500
- -------------------------------------------------------------------------------
5,178,875
- -------------------------------------------------------------------------------
Retail - Apparel/Shoe (1.9%)
140,000 Just for Feet, Inc.* 2,213,750
- -------------------------------------------------------------------------------
Retail - Mail Order & Direct (1.3%)
80,000 Blair Corporation 1,450,000
- -------------------------------------------------------------------------------
Retail - Miscellaneous Diversified (2.4%)
120,000 West Marine Products* 2,745,000
- -------------------------------------------------------------------------------
Retail - Restaurants (2.5%)
30,000 Bob Evans Farms, Inc. 570,000
80,000 Sbarro, Inc. 2,240,000
- -------------------------------------------------------------------------------
2,810,000
- -------------------------------------------------------------------------------
Telecommunications - Cellular (2.2%)
145,000 Centennial Cellular Corp. - Class A* 2,483,125
- -------------------------------------------------------------------------------
Telecommunications - Services (1.5%)
220,000 General Communication, Inc. - Class A* 1,732,500
- -------------------------------------------------------------------------------
Transportation - Shipping (4.3%)
160,000 Knightsbridge Tankers, Ltd. 4,530,000
100,000 M.C. Shipping, Inc. 362,500
- -------------------------------------------------------------------------------
4,892,500
- -------------------------------------------------------------------------------
Total Common Stock
(Cost $81,143,351) 96,807,900
- -------------------------------------------------------------------------------
U.S. Government Obligations (14.0%)
- -------------------------------------------------------------------------------
$2,365,000 U.S. Treasury Bills due 10/9/97 $ 2,362,330
580,000 U.S. Treasury Bills due 10/16/97 578,776
3,420,000 U.S. Treasury Bills due 11/6/97 3,403,348
6,784,000 U.S. Treasury Bills due 11/13/97 6,744,830
1,500,000 U.S. Treasury Bills due 11/20/97 1,490,167
1,350,000 U.S. Treasury Bills due 11/28/97 1,339,466
- -------------------------------------------------------------------------------
Total U.S. Government Obligations
(Amortized Cost $15,918,917) 15,918,917
- -------------------------------------------------------------------------------
Federal National Mortgage Association Discount Notes (2.9%)
- -------------------------------------------------------------------------------
$2,000,000 FNMA Discount Notes Due 10/20/97 1,994,294
1,300,000 FNMA Discount Notes Due 10/27/97 1,294,935
- -------------------------------------------------------------------------------
Total FNMA Discount Notes
(Amortized Cost $3,289,229) 3,289,229
- -------------------------------------------------------------------------------
Total Investments (Cost $100,351,497) (102.1%) 116,016,046
(Cost for federal income tax purposes $100,351,596)
Other Liabilities, Less Assets (2.1%) (2,355,283)
Net Assets (100.0%) $ 113,660,763
</TABLE>
ADR - American Depository Receipt
* Non-income producing security
See notes to financial statements.
20 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap
Value Fund
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset
Value Per Share)
<TABLE>
<CAPTION>
September 30, 1997
- -------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 100,351
- -------------------------------------------------------------------------------------------------------
Investments at value $ 116,016
Cash 254
Receivables
Investment securities sold 57
Fund shares sold 937
Dividends and interest 77
- -------------------------------------------------------------------------------------------------------
Total Assets 117,341
- -------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 3,063
Fund shares redeemed 481
Accrued investment advisory fees 76
Other accrued expenses 60
- -------------------------------------------------------------------------------------------------------
Total Liabilities 3,680
- -------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding
(Par Value $0.01, unlimited shares authorized) $ 113,661
- -------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share
Investor shares (based on net assets of $55,211 and 2,478 shares outstanding) $ 22.28
- -------------------------------------------------------------------------------------------------------
Institutional shares (based on net assets of $58,450 and 2,618 shares outstanding) $ 22.33
- -------------------------------------------------------------------------------------------------------
</TABLE>
Statement of Operations (Amounts in Thousands)
<TABLE>
<CAPTION>
For the Period Ended
September 30, 1997
- -------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividends $ 596
Interest 346
- -------------------------------------------------------------------------------------------------------
Total Income 942
- -------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 418
Administrative services 4
Legal fees 24
Custodian fees 15
12b-1 distribution & advertising fees - Investor Shares 36
Transfer agent fees - Investor Shares 28
Transfer agent fees - Institutional Shares 31
Postage, printing & reports 31
Insurance & bonds 3
Registration fees - Investor Shares 13
Registration fees - Institutional Shares 21
Accounting fees 13
Audit fees 17
Directors'/Trustees' fees & expenses 5
Other 2
- -------------------------------------------------------------------------------------------------------
Total Expenses 661
Less earnings credits (5)
- -------------------------------------------------------------------------------------------------------
Expenses - Net 656
- -------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 286
- -------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on security transactions 13,449
Net change in unrealized appreciation (depreciation) on security transactions 7,589
- -------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment Transactions 21,038
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 21,324
- -------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
21 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Small Cap
Value Fund
Statement of Changes in Net Assets (Amounts in Thousands)
<TABLE>
<CAPTION>
Period from
1/1/97 to Year Ended
9/30/97 12/31/96
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ 286 $ 224
Net realized gain (loss) on security transactions 13,449 3,443
Net change in unrealized appreciation (depreciation) on security
transactions 7,589 3,816
Net Increase (Decrease) in Net Assets Resulting from Operations 21,324 7,483
From Dividends and Distributions to Shareholders
Net investment income 0 (208)
Net realized gains on investments 0 (3,402)
Net Decrease in Net Assets from Dividends and Distributions to
Shareholders 0 (3,610)
From Fund Share Transactions
Proceeds from shares sold 73,022 3,119
Net asset value of shares issued in reinvestment of dividends and
distributions 0 3,359
Total 73,022 6,478
Payments for shares redeemed (16,726) (6,143)
Net Increase (Decrease) in Net Assets Derived From Fund Share
Transactions 56,296 335
Increase (Decrease) in Net Assets 77,620 4,208
Net Assets
Beginning of period 36,041 31,833
End of period $ 113,661 $ 36,041
Components of Net Assets
Capital (par value and paid in surplus) $ 84,197 $ 27,873
Undistributed net investment income (loss) 262 16
Undistributed net realized gain (loss) from investments 13,537 76
Unrealized appreciation (depreciation) on investments 15,665 8,076
- -----------------------------------------------------------------------------------------------------------
Total $ 113,661 $ 36,041
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Transactions in Fund Shares (Amounts in Thousands)
<TABLE>
<CAPTION>
Period from 1/1/97 to 9/30/97/1/ Year Ended December 31, 1996
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Institutional Shares
Sold 978 $ 19,359 197 $ 3,119
Reinvestment of dividends and distributions 0 0 204 3,359
- -----------------------------------------------------------------------------------------------------------
Total 978 19,359 401 6,478
Repurchased (546) (10,308) (399) (6,143)
- -----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 432 9,051 2 335
Beginning of period 2,186 27,873 2,184 27,538
- -----------------------------------------------------------------------------------------------------------
End of period 2,618 36,924 2,186 $ 27,873
- -----------------------------------------------------------------------------------------------------------
Investor Shares
Sold 2,807 $ 53,663
Reinvestment of dividends and distributions 0 0
- -----------------------------------------------------------------------------------------------------------
Total 2,807 53,663
Repurchased (329) (6,418)
- -----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) 2,478 47,245
Beginning of period 0 0
- -----------------------------------------------------------------------------------------------------------
End of period 2,478 $ 47,245
- -----------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from January 1, 1997 through September 30, 1997 for
Institutional Shares and for the period from February 14, 1997 (commencement of
investment operations) through September 30, 1997 for the Investor Shares.
See notes to financial statements.
22 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger One Hundred Fund [PICTURE APPEARS HERE]
Portfolio Manager's Commentary Patrick S. Adams
Performance
As stated in Berger One Hundred Fund's (the "Fund") March 31, 1997 report to
shareholders, our goal is to return our flagship Fund to its proper place as a
performance leader among its peers. We have taken giant strides toward achieving
this goal over the past six months, even though it is not reflected in the
Fund's annual total return of 26.50%/1/ for the year ended September 30, 1997.
We still trailed the Standard & Poor's (S&P) 500/2/ annual total return, which
was 40.43% for the same period.
The Fund's poor showing early in the year is the key reason why we lagged the
index on an annualized basis. But the Fund's performance began to improve in
April. For the period July 1 - September 30, 1997, the Fund's total return of
13.50%/1/ exceeded that of the S&P 500 by 6.01%. We feel we're back on track
with a portfolio striving for excellent near-term and long-term performance.
Year in Review
In February we began to make numerous changes in the Fund that we believed would
improve quality and maintain the long-term growth rate target. We broadened the
portfolio, increasing the number of stocks from 53 in early February to 90 on
March 31 (86 at year-end). We shifted assets away from energy services and into
consumer products because we saw strong potential and a number of attractively
valued stocks in the consumer sector. We maintained a high percentage of Fund
assets in technology but added new stocks to the portfolio and reduced positions
in others.
Our restructuring was complete in April and our efforts began to pay off for
shareholders in the third calendar quarter 1997, when the Fund outperformed
broad market indexes. On the basis of this strong performance, we elected to
take some profits during the quarter. Although we sold some technology holdings
to take profits, we slightly increased the percentage of Fund assets invested in
this sector from 24.3% at the end of the second quarter to 24.8% as of September
30. We remain overweighted in technology and healthcare and are selectively
adding to our capital goods holdings. We reduced consumer holdings to
approximately 10% of Fund assets as of year-end. At year-end, stocks held by the
Fund were trading at about the same multiple of earnings per share as the S&P
500, but had long-term growth rates nearly twice that of the index. The
fundamentals of companies owned by the Fund are strong. We had established core
positions in many excellent companies (Motorola, GAP Stores, Tommy Hilfiger, and
Nordstrom, among others) and were trading around those stocks. For example, we
purchased more Cisco Systems on a price decline and sold some Cadence Design
Systems, then our largest position, on a price run up. We identified two new
stocks to add to the portfolio - Household International, parent of Coldwell
Banker, and Safeway. We see excellent upside potential in both stocks based on
our analysis. We still like the technology sector for the long-term and are
actively seeking quality stocks to add to the portfolio, perhaps rebuilding
technology, once again, to an overweighted position.
Looking Ahead
The key risk to the portfolio in the future, in our opinion, is a too-robust
economy that the Federal Reserve Board could decide to hold down with interest
rate increases. We do not see the portfolio adversely impacted by earnings
announcements or currency fluctuations.
Going forward, your Fund's performance should continue to strengthen as we
continue to adhere closely to the philosophy that has guided this Fund since
1974 - seek high quality, predictable growth companies at attractive prices.
We thank you for your investment in the Berger One Hundred Fund, and for your
patience as we restructured it.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. One cannot invest
directly in an index.
23 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
One Hundred
Fund
Performance Overview
Comparison of Change in Value of Berger One Hundred Fund vs.
S&P 500 Stock Index and Cost of Living Index
<TABLE>
<CAPTION>
Berger One S&P 500 Cost of
Date Hundred Fund Stock Index Living Index
---- ------------ ----------- ------------
<S> <C> <C> <C>
9/30/87 10,000 10,000 10,000
9/30/88 9,522 8,757 10,417
9/30/89 14,026 11,637 10,870
9/30/90 11,664 10,563 11,539
9/30/91 21,345 13,843 11,930
9/30/92 22,833 15,365 12,287
9/30/93 32,195 17,353 12,617
9/30/94 31,067 17,999 12,991
9/30/95 36,770 23,334 13,322
9/30/96 40,210 28,063 13,722
9/30/97 50,866 39,398 14,017
</TABLE>
The Berger One Hundred Fund*
Average Annual Total Return
<TABLE>
<CAPTION>
As of September 30, 1997
- ------------------------
<S> <C>
1 Year 26.5%
5 Year 17.4%
10 Year 17.7%
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
Report of Independent Accountants
To the Board of Directors and Shareholders of Berger One Hundred Fund, Inc.
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger One Hundred Fund, Inc. (the
"Fund") at September 30, 1997, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the three years in the
period then ended, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provide a reasonable basis for the opinion expressed above. The
financial statements of the Fund for the year ended September 30, 1994 were
audited by other independent accountants whose report dated October 28, 1994
expressed an unqualified opinion on those financial statements.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
24 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
One Hundred
Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (86.3%) September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C>
Aerospace/Defense (0.9%)
312,000 The Boeing Company $ 16,984,500
- ------------------------------------------------------------------------------
Auto/Truck - Original Equipment (1.0%)
370,000 Lear Corporation* 18,222,500
- ------------------------------------------------------------------------------
Banks - Money Center (1.0%)
165,000 Chase Manhattan Corporation 19,470,000
- ------------------------------------------------------------------------------
Banks - Super Regional (1.0%)
363,100 First Union Corporation 18,177,694
- ------------------------------------------------------------------------------
Beverages - Soft Drinks (1.2%)
550,000 Pepsico, Inc. 22,309,375
- ------------------------------------------------------------------------------
Commercial Services - Miscellaneous (0.9%)
880,000 Medpartners, Inc.* 18,865,000
- ------------------------------------------------------------------------------
Computer - Graphics (3.5%)
813,600 Cadence Design Systems, Inc.* 43,527,600
869,000 Silicon Graphics, Inc.* 22,811,250
- ------------------------------------------------------------------------------
66,338,850
- ------------------------------------------------------------------------------
Computer - Local Networks (4.1%)
220,000 Bay Networks, Inc.* 8,497,500
798,800 Cisco Systems, Inc.* 58,362,325
200,000 3 Com Corporation* 10,250,000
- ------------------------------------------------------------------------------
77,109,825
- ------------------------------------------------------------------------------
Computer - Memory Devices (1.0%)
320,000 Iomega Corporation* 8,360,000
277,000 Quantum Corporation* 10,612,563
- ------------------------------------------------------------------------------
18,972,563
- ------------------------------------------------------------------------------
Computer - Mini/Micro (1.9%)
240,000 Compaq Computer Corporation* 17,940,000
390,000 Sun Microsystems, Inc.* 18,256,875
- ------------------------------------------------------------------------------
36,196,875
- ------------------------------------------------------------------------------
Computer - Services (2.0%)
341,700 Computer Sciences Corporation* 24,175,275
360,000 HBO & Company* 13,590,000
- ------------------------------------------------------------------------------
37,765,275
- ------------------------------------------------------------------------------
Computer - Software (2.1%)
175,400 BMC Software, Inc.* 11,357,150
628,500 Parametric Technology Corporation* 27,732,563
- ------------------------------------------------------------------------------
39,089,713
- ------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (0.4%)
181,000 Lam Research Corporation* 8,416,500
- ------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (5.6%)
141,000 Intel Corporation 13,016,063
162,000 Linear Technology Corporation 11,137,500
137,500 Maxim Integrated Products, Inc.* 9,822,656
555,000 Motorola, Inc. 39,890,625
390,500 National Semiconductor Corporation* 16,010,500
324,300 Xilinx, Inc.* 16,417,681
- ------------------------------------------------------------------------------
106,295,025
- ------------------------------------------------------------------------------
Electrical -Equipment (1.3%)
375,000 Honeywell, Inc. $ 25,195,312
- ------------------------------------------------------------------------------
Finance - Consumer Loans (1.9%)
320,000 Household International, Inc. 36,220,000
- ------------------------------------------------------------------------------
Finance - Mortgage and Related Services (3.8%)
430,000 Federal Home Loan Mortgage Corp. 15,157,500
285,000 Federal National Mortgage Association 13,395,000
590,000 Green Tree Financial Corporation 27,730,000
580,000 Money Store, Inc.. 16,530,000
- ------------------------------------------------------------------------------
72,812,500
- ------------------------------------------------------------------------------
Financial Services - Miscellaneous (0.6%)
310,000 First Data Corporation 11,644,375
- ------------------------------------------------------------------------------
Insurance - Life (1.6%)
633,000 Conseco, Inc. 30,898,313
- ------------------------------------------------------------------------------
Insurance - Multi Line (0.8%)
270,000 MGIC Investment Corporation 15,474,375
- ------------------------------------------------------------------------------
Insurance - Property/Casualty/Title (0.5%)
94,600 American International Group, Inc. 9,761,538
- ------------------------------------------------------------------------------
Leisure - Hotels and Motels (3.3%)
240,000 HFS, Inc.* 17,865,000
742,800 Hilton Hotels Corporation 25,023,075
850,000 La Quinta Inns, Inc. 20,028,125
- ------------------------------------------------------------------------------
62,916,200
- ------------------------------------------------------------------------------
Leisure - Services (2.1%)
455,000 Royal Caribbean Cruises, Ltd. 19,906,250
255,000 The Walt Disney Company 20,559,375
- ------------------------------------------------------------------------------
40,465,625
- ------------------------------------------------------------------------------
Leisure - Toys/Games/Hobby (0.5%)
325,000 Hasbro, Inc. 9,140,625
- ------------------------------------------------------------------------------
Machinery - Construction/Mining (1.4%)
483,600 Caterpillar, Inc. 26,084,175
- ------------------------------------------------------------------------------
Medical - Biomedics/Genetics (1.4%)
308,200 Amgen, Inc.* 14,774,338
230,300 Centocor, Inc.* 10,953,644
- ------------------------------------------------------------------------------
25,727,982
- ------------------------------------------------------------------------------
Medical - Dental Supplies (1.0%)
595,000 Omnicare, Inc. 19,337,500
- ------------------------------------------------------------------------------
Medical - Drug/Diversified (3.1%)
255,000 Bristol-Myers Squibb Company 21,101,250
370,000 Johnson & Johnson 21,321,250
125,000 Warner-Lambert Company 16,867,188
- ------------------------------------------------------------------------------
59,289,688
- ------------------------------------------------------------------------------
Medical - Ethical Drugs (1.1%)
90,000 Eli Lilly Co. 10,861,875
93,100 Merck & Company, Inc. 9,304,181
- ------------------------------------------------------------------------------
20,166,056
- ------------------------------------------------------------------------------
</TABLE>
25 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
One Hundred
Fund
- ------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (86.3%) - continued September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C>
Medical - Health Maintenance Organizations (0.8%)
200,000 Oxford Health Plans, Inc.* $ 14,975,000
- ------------------------------------------------------------------------------
Medical - Hospitals (2.3%)
760,000 Tenet Healthcare Corporation* 22,135,000
510,700 Vencor, Inc.* 21,066,375
- ------------------------------------------------------------------------------
43,201,375
- ------------------------------------------------------------------------------
Medical - Wholesale Drug/Sundries (1.4%)
382,100 Cardinal Health, Inc. 27,129,100
- ------------------------------------------------------------------------------
Oil & Gas - Drilling (0.7%)
260,000 Transocean Offshore, Inc. 12,463,750
- ------------------------------------------------------------------------------
Oil & Gas - Machinery/Equipment (0.4%)
99,100 Cooper Cameron Corporation* 7,116,619
- ------------------------------------------------------------------------------
Office Equipment & Automation (0.4%)
100,000 Xerox Corporation 8,418,750
- ------------------------------------------------------------------------------
Pollution Control - Equipment (1.4%)
625,000 United States Filter Corporation* 26,914,063
- ------------------------------------------------------------------------------
Pollution Control - Services (3.5%)
538,700 Allied Waste Industries, Inc.* 10,302,638
950,000 Republic Industries, Inc.* 31,290,625
600,000 U.S.A. Waste Services, Inc.* 23,925,000
- ------------------------------------------------------------------------------
65,518,263
- ------------------------------------------------------------------------------
Retail - Apparel/Shoes (3.4%)
565,000 Gap, Inc. 28,285,313
360,000 Gucci Group N.V. 16,875,000
308,600 Nordstrom, Inc. 19,673,250
- ------------------------------------------------------------------------------
64,833,563
- ------------------------------------------------------------------------------
Retail - Department Stores (2.1%)
500,000 Federated Department Stores, Inc.* 21,562,500
350,000 May Department Stores Company 19,075,000
- ------------------------------------------------------------------------------
40,637,500
- ------------------------------------------------------------------------------
Retail - Discount & Variety (1.1%)
500,000 Consolidated Stores Corporation* 20,937,500
- ------------------------------------------------------------------------------
Retail - Major Discount Chains (0.6%)
300,000 Wal-Mart Stores, Inc. 10,987,500
- ------------------------------------------------------------------------------
Retail - Supermarkets (3.8%)
940,000 American Stores Company 22,912,500
551,200 Kroger Company* 16,639,350
594,500 Safeway, Inc.* 32,325,938
- ------------------------------------------------------------------------------
71,877,788
- ------------------------------------------------------------------------------
Retail/Wholesale - Auto Parts (0.8%)
533,100 Autozone, Inc.* 15,993,000
- ------------------------------------------------------------------------------
Retail/Wholesale - Building Products (1.2%)
220,000 Home Depot, Inc. 11,467,500
272,700 Lowes Cos., Inc. 10,601,213
- ------------------------------------------------------------------------------
22,068,713
- ------------------------------------------------------------------------------
Retail/Wholesale - Computers (1.1%)
743,250 CHS Electronics, Inc.* 20,346,469
- ------------------------------------------------------------------------------
Steel - Specialty Alloys (0.6%)
252,000 Ucar International, Inc.* 12,033,000
- ------------------------------------------------------------------------------
Telecommunications - Equipment (1.7%)
270,000 Nokia Corporation - ADR 25,329,375
152,000 Tellabs, Inc.* 7,828,000
- ------------------------------------------------------------------------------
33,157,375
- ------------------------------------------------------------------------------
Telecommunications - Services (1.6%)
1,122,500 Paging Network, Inc.* 14,241,719
450,000 WorldCom, Inc.* 15,918,750
- ------------------------------------------------------------------------------
30,160,469
- ------------------------------------------------------------------------------
Textile - Apparel Manufacturing (3.9%)
254,500 Liz Claiborne, Inc. 13,981,594
314,200 Nautica Enterprises, Inc.* 8,836,875
1,030,500 Tommy Hilfiger Corporation* 51,460,594
- ------------------------------------------------------------------------------
74,279,063
- ------------------------------------------------------------------------------
Tobacco (1.3%)
600,000 Philip Morris Companies, Inc. 24,937,500
- ------------------------------------------------------------------------------
Transportation - Airline (1.2%)
684,700 Southwest Airlines, Inc. 21,867,606
- ------------------------------------------------------------------------------
Total Common Stock (Cost $1,356,400,496) 1,639,201,925
- ------------------------------------------------------------------------------
U.S. Government Obligations (9.6%)
- ------------------------------------------------------------------------------
$ 7,300,000 U.S. Treasury Bills due 10/16/97 7,284,882
14,750,000 U.S. Treasury Bills due 11/6/97 14,677,283
87,120,000 U.S. Treasury Bills due 11/13/97 86,617,151
66,950,000 U.S. Treasury Bills due 11/20/97 66,510,057
7,650,000 U.S. Treasury Bills due 11/28/97 7,591,210
- ------------------------------------------------------------------------------
Total U.S. Government Obligations
(Amortized Cost $182,680,583) 182,680,583
- ------------------------------------------------------------------------------
Federal National Mortgage Association Discount Notes (3.1%)
- ------------------------------------------------------------------------------
$ 8,300,000 FNMA Discount Notes due 10/14/97 8,283,875
31,000,000 FNMA Discount Notes due 10/15/97 30,935,141
10,600,000 FNMA Discount Notes due 10/20/97 10,569,846
8,300,000 FNMA Discount Notes due 10/27/97 8,267,690
- ------------------------------------------------------------------------------
Total FNMA Discount Notes
(Amortized Cost $58,056,552) 58,056,552
- ------------------------------------------------------------------------------
Total Investments (Cost $1,597,137,631) (99.0%) 1,879,939,060
(Cost for federal income tax purposes $1,599,559,757)
Other Assets, Less Liabilities (1.0%) 19,108,707
- ------------------------------------------------------------------------------
Net Assets (100.0%) $1,899,047,767
- ------------------------------------------------------------------------------
</TABLE>
ADR - American Depository Receipt
* Non-Income Producing Security
See notes to financial statements.
26 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
One Hundred
Fund
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset Value Per Share)
September 30, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 1,597,138
- ------------------------------------------------------------------------------------------------------------------
Investments at value $ 1,879,939
Cash 3,966
Receivables
Investment securities sold 51,883
Fund shares sold 336
Dividends 1,084
Total Assets 1,937,208
- ------------------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 33,184
Fund shares redeemed 1,990
Accrued investment advisory fees 1,179
Accrued transfer agent fees 871
Accrued postage, printing & reports 393
Accrued 12b-1 distribution & advertising fees 393
Other accrued expenses 150
- ------------------------------------------------------------------------------------------------------------------
Total Liabilities 38,160
- ------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 1,899,048
Capital Shares
Authorized (Par Value $0.01) 200,000
- ------------------------------------------------------------------------------------------------------------------
Shares Outstanding 88,267
- ------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 21.51
- ------------------------------------------------------------------------------------------------------------------
<CAPTION>
Statement of Operations (Amounts in Thousands)
- ------------------------------------------------------------------------------------------------------------------
For the Year Ended
September 30, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividends $ 9,326
Interest 9,575
- ------------------------------------------------------------------------------------------------------------------
Total Income 18,901
- ------------------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 14,424
12b-1 distribution & advertising fees 4,808
Transfer agent fees 4,937
Postage, printing & reports 1,905
Registration fees 115
Custodian fees 200
Directors'/Trustees' fees & expenses 216
Accounting fees 165
Administrative services 192
Legal fees 166
Insurance & bonds 21
Audit fees 22
Other 8
- ------------------------------------------------------------------------------------------------------------------
Total Expenses 27,179
Less fees paid indirectly (352)
Less earnings credits (245)
- ------------------------------------------------------------------------------------------------------------------
Expenses - Net 26,582
- ------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (7,681)
- ------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on securities and foreign currency transactions 626,967
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions (171,377)
- ------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 455,590
- ------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 447,909
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
27 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
One Hundred
Fund
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended Year Ended
9/30/97 9/30/96
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ (7,681) $ (8,721)
Net realized gain (loss) on securities and foreign currency transactions 626,967 318,175
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions (171,377) (100,483
Net realized gain (loss) on futures transactions 0 (28,569)
Net Increase (Decrease) in Net Assets Resulting from Operations 447,909 180,402
From Dividends and Distributions to Shareholders
Net investment income 0 0
Net realized gains on investments (270,495) (106,043)
- --------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (270,495) (106,043)
- --------------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 221,412 323,649
Net asset value of shares issued in reinvestment of distributions 263,475 103,262
- --------------------------------------------------------------------------------------------------------------------
Total 484,887 426,911
Payments for shares redeemed (775,959) (694,242)
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions (291,072) (267,331)
Increase (Decrease) in Net Assets (113,658) (192,972)
Net Assets
Beginning of period 2,012,706 2,205,678
- --------------------------------------------------------------------------------------------------------------------
End of period $ 1,899,048 $ 2,012,706
- --------------------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 1,026,117 $ 1,317,189
Undistributed net investment income (loss) (94) 0
Undistributed net realized gain (loss) from investments 590,224 241,339
Net unrealized appreciation (depreciation) on investments 282,801 454,178
- --------------------------------------------------------------------------------------------------------------------
Total $ 1,899,048 $ 2,012,706
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
- --------------------------------------------------------------------------------------------------------------------
Shares sold 11,630 17,279
Shares issued to shareholders in reinvestment of distributions 14,695 5,759
- --------------------------------------------------------------------------------------------------------------------
Total 26,325 23,038
Shares repurchased (40,552) (37,281)
- --------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (14,227) (14,243)
Shares outstanding, beginning of period 102,494 116,737
- --------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 88,267 102,494
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM International Fund [PICTURE APPEARS HERE]
Portfolio Bank of Ireland Asset
Manager's Commentary Management (U.S.) Ltd.
- --------------------------------------------------------------------------------
Performance
During the fiscal year ended September 30, 1997, the Berger/BIAM International
Fund (the "Fund") delivered an annual total return to investors of 15.70%/1,2/.
This compares to 12.49% for the MSCI EAFE Index/3/.
The main contributors to the performance during the year were the Positive
Banking, Healthcare and Growth in Telecommunications themes. There were a number
of good individual stock performances, which helped the portfolio, particularly
in the Healthcare Needs and Positive Banking Environment themes.
Many Positive Banking Environment stocks reported profit increases ranging from
14% to 52% during the period. This strong performance continued into the third
quarter.
Themes directed at the developing markets in the Far East have disappointed
throughout 1997. Increased Consumer Spending in the Pacific Basin and
Infrastructural Development have had a negative impact on the Fund for reasons
ranging from poor company results to the domino effect of financial crises and
currency weakness which caused poor performance by your stocks in the region.
Year in Review
With the notable exception of the developing markets in the Pacific Basin and
Japan, equity markets world-wide have done very well during the last twelve
months. The ongoing U.S. bull market continues to boost international markets,
and, with American inflation apparently under control and no sign of imminent
interest-rate increases, European bourses have been hitting all-time highs.
Equity markets in general, declined sharply during August, in what can be
described as an almost inevitable correction after the strong gains earlier.
Most markets rebounded in September.
In the U.K., strong corporate earnings, particularly from the financial-services
sector, and the expectation of even more corporate restructuring by major
companies have been underpinning valuations. Towards the end of the period, U.K.
equities rallied, prompted by evidence of increased warmth towards the European
Monetary Union (EMU) which could mean earlier than expected interest rate cuts.
Other European markets also produced strong returns during the year, helped by
continuing optimism for economic recovery in Continental Europe and a positive
Wall Street backdrop. In contrast, the Pacific Rim markets collapsed during 1997
as investors fled from the continued currency weakness, soaring domestic
interest rates and policy indecision. Economic activity in Japan remains weak
and the Japanese market continues to disappoint, down 16% for the twelve months
ended September 30 1997.
Looking Ahead
Despite the negative move in August, international equity markets have been very
strong for the third year in a row. These gains have pushed many company
valuations to very high levels and are occurring against an interest-rate
background which "if anything" is deteriorating. Many stocks, especially the
blue chips have been re-rated beyond their fundamental value.
After taking profits from some of the more highly priced U.K. and continental
European stocks in the portfolio, we invested the proceeds in a number of
selected Japanese holdings whose valuation levels are looking increasingly
reasonable. This does not imply a shift in our views on Japan from a
macro-economic perspective. We continue to monitor a number of Japanese
companies, which are restructuring, focusing on enhancing shareholder value and
delivering profit growth.
Currency volatility in the Southeast Asian markets has led to some panic selling
by investors. We do not feel that the current price levels of a number of the
companies in which we are invested fully reflect their true value. The
longer-term story for these stocks has not changed, but the impact of the recent
currency devaluations is going to take some time to work its way through the
markets. Consequently, we are constantly reviewing our investments in the area.
Our view on the U.K. and core Europe has changed little since last quarter. The
market perception on U.K. interest rates has undergone a complete turnaround
during September with all expectations of higher rates evaporating on the back
of the EMU speculation. EMU also continues to be the major focus in Europe.
We thank you for your investment in the Berger/BIAM International Fund.
/1./ Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
/2./ Performance figures are historical and, in part, reflect the performance of
a pool of assets advised by BIAM (Bank of Ireland Asset Management) for periods
before the Fund commenced operations on October 11, 1996, adjusted to reflect
any increased expenses associated with operating the Fund. 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.
/3./ The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index. One cannot invest directly in
an index.
For information on security holdings please refer to the Berger/BIAM
International Portfolio.
29 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Fund
Performance Overview
Comparison of Change in Value of Berger/BIAM International Fund vs. EAFE and
Cost of Living Index
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Berger/BIAM
International Cost of
Date Fund EAFE Living Index
- ---- ------------- ---- ------------
<S> <C> <C> <C>
07/31/89 10,000 10,000 10,000
09/30/89 10,040 9,989 10,048
09/30/90 10,760 7,253 10,667
09/30/91 12,550 8,871 11,029
09/30/92 14,860 8,269 11,359
09/30/93 17,290 10,482 11,664
09/30/94 19,010 11,542 12,010
09/30/95 21,580 12,247 12,315
09/30/96 24,120 13,341 12,685
09/30/97 27,906 15,008 12,926
</TABLE>
The Berger/BIAM International Fund*
Average Annual Total Return
<TABLE>
<CAPTION>
As of September 30, 1997
- -----------------------------------------------------------------------------
<S> <C>
1 Year 15.7%
5 Year 13.4%
Life of Fund (7/31/89) 13.4%
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares. Performance figures are historical and, in part, reflect the
performance of a pool of assets advised by BIAM (Bank of Ireland Asset
Management) for periods before the Fund commenced operations on October 11,
1996, adjusted to reflect any increased expenses associated with operating the
Fund. 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.
Report of Independent Accountants
To the Board of Trustees and Shareholders of Berger/BIAM International Fund
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Berger/BIAM International Fund (one of the funds constituting Berger/BIAM
Worldwide Funds Trust, hereafter referred to as the "Fund") at September 30,
1997, the results of its operations, the changes in its net assets and the
financial highlights for the period November 7, 1996 (commencement of investment
operations) through September 30, 1997, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
30 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Fund
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset
Value Per Share)
<TABLE>
<CAPTION>
September 30, 1997
- --------------------------------------------------------------------------------------------
<S> <C>
Assets
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value $ 18,789
Receivable for fund shares sold 29
- --------------------------------------------------------------------------------------------
Total Assets 18,818
- --------------------------------------------------------------------------------------------
Liabilities
Payables
Fund shares redeemed 129
Accrued administrative fee 7
Accrued registration fees 5
Accrued 12b-1 distribution and advertising fees 4
- --------------------------------------------------------------------------------------------
Total Liabilities 145
- --------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 18,673
Capital Shares
Authorized (Par Value $0.01) Unlimited
- --------------------------------------------------------------------------------------------
Shares Outstanding 1,630
- --------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 11.46
Statement of Operations (Amounts in Thousands)
<CAPTION>
For the Period from November 7, 1996*
to September 30, 1997
- --------------------------------------------------------------------------------------------
<S> <C>
Investment Income Allocated From Portfolio
Interest and dividend income (net of $40 foreign withholding taxes) $ 336
Portfolio expenses (net of earnings credits and waivers of $26) (127)
- --------------------------------------------------------------------------------------------
Net Investment Income Allocated From Portfolio 209
- --------------------------------------------------------------------------------------------
Fund Expenses
Administrative fees 63
12b-1 distribution & advertising fees 35
Registration fees 20
Legal fees 6
Total Fund Expenses 124
- --------------------------------------------------------------------------------------------
Net Investment Income (Loss) 85
- --------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Transactions Allocated From Portfolio
Net realized gain (loss) on investments and foreign currency transactions 380
Net change in unrealized appreciation (depreciation) on investments and
foreign currency transactions 1,489
Net Realized and Unrealized Gain (Loss) on Investments and Foreign
Currency Transactions Allocated From Portfolio 1,869
- --------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 1,954
- --------------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
See notes to financial statements.
31 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Fund
Statement of Changes in Net Assets (Amounts in Thousands)
<TABLE>
<CAPTION>
For the Period from November 7, 1996*
to September 30, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 85
Net realized gain (loss) on investments and foreign currency transactions allocated from Portfolio 380
Net unrealized appreciation (depreciation) on investments and foreign currency transactions allocated from Portfolio 1,489
Net Increase (Decrease) in Net Assets Resulting from Operations 1,954
- ----------------------------------------------------------------------------------------------------------------------------------
From Dividends and Distributions to Shareholders
Net investment income 0
Net realized gains on investments 0
Net Decrease in Net Assets from Dividends and Distributions to Shareholders 0
- ----------------------------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 25,761
Payments for shares redeemed (9,042)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions 16,719
Increase (Decrease) in Net Assets 18,673
Net Assets
Beginning of period 0
- ----------------------------------------------------------------------------------------------------------------------------------
End of period $ 18,673
- ----------------------------------------------------------------------------------------------------------------------------------
Components of Net Assets:
Capital (par value and paid in surplus) $ 16,719
Undistributed accumulated net investment income (loss) from investments 85
Undistributed accumulated net realized gain (loss) from investments 380
Net unrealized appreciation (depreciation) of investments and foreign
currency transactions 1,489
- ----------------------------------------------------------------------------------------------------------------------------------
Total $ 18,673
- ----------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold 2468
Shares repurchased (838)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in shares 1,630
Shares outstanding, beginning of period 0
- ----------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,630
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
See notes to financial statements.
32 September 30, 1997 Annual Report The Berger funds
<PAGE>
Berger Growth and Income Fund [PICTURE APPEARS HERE]
Co-Portfolio Patrick S. Adams
Managers' Commentary Sheila J. Ohlsson
Performance
As of September 30, 1997, Berger Growth and Income Fund's (the "Fund") annual
total return was 34.56%/1/. The Fund underperformed the Standard & Poor's (S&P)
500/2/, which rose 40.43% over the same period.
The Fund underperformed the index primarily because of the nature of the stock
market. During the first six months of our fiscal year (October 1996 - March
1997), the market was dominated by the largest stocks, such as GE and Procter &
Gamble, which drive the performance of the S&P 500 Index. Investors, feeling
uncertain about the economy and interest rates, flocked to the large stocks,
because they offered high liquidity in case of an economic downturn. As a
result, the prices of these stocks were driven to what, in our opinion, were
unsustainable levels. We chose not to invest in the largest stocks and to stick
with our goal of seeking reasonably priced growth companies. That decision kept
the Fund from fully participating in the market's strong performance.
In April, however, the market began to broaden. Investors considered the largest
stocks' prices to be too expensive given their relatively low rates of revenue
growth - a viewpoint bolstered by cautionary earnings comments from companies
such as Coca-Cola and Gillette. Investors cast a wider net, seeking good growth
companies beyond those with the largest market capitalizations, a move that
benefited many of the companies owned by the Fund. As a result, our second half
total return of 25.50% was far stronger than our first half total return of
7.22%.
Year in Review
We made some adjustments to the Fund's allocation of assets among growth
industries during the year. We increased holdings in technology from 11% one
year ago to 17.8% at year-end. We felt we were slightly underweighted in this
vital sector, which clearly is driving the U.S. and world economies. We added to
the financial sector, increasing holdings from 16% one year ago to 24.2% as of
September 30, 1997. We shifted some assets in this category from bank stocks to
insurance companies and specialty finance companies. We slightly reduced the
Fund's position in real estate investment trusts (REITs) since last year, but
have maintained our focus on full-service hotels and diversified office
buildings.
Since March 31, 1997, we have increased holdings in oil services because of
improving fundamentals, but are still down overall from our exposure one year
ago. We reduced our exposure to consumer staples and healthcare because we felt
the values in these sectors had reached unrealistic proportions.
To help bolster Fund yield over the year, we continued to purchase convertible
bonds where appropriate.
We believe in being fully invested at all times, so a higher percentage of cash
simply indicated a period in which we were unable to find suitable investments
for the Fund.
Looking Ahead
If the market remains strong and maintains the broader focus of the past six
months,our portfolio should do very well. Two positive signs: the economy is
strong and interest rates have been stable since the last Federal Reserve Board
increase on March 25, 1997.
We would not be shocked to see the market drop over the next year, however, due
to some unforeseeable event, such as the Asian currency crisis that occurred in
August and September this past year. A correction would help wring some of the
excesses out of stock prices. Additionally, a correction would give us the
opportunity to buy more good companies for the Fund at lower prices.
Going forward, we believe that your Fund is properly diversified and structured
to benefit from broad, positive market performance.
We thank you for your investment in the Berger Growth and Income Fund.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investors shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P 500 is an unmanaged index, with dividends reinvested, which
consists of the common stock of 500 publicly traded U.S. companies. One cannot
invest directly in an index.
33 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Growth and
Income Fund
Performance Overview
Comparison of Change in Value of Berger Growth and Income Fund vs. S&P 500 Stock
Index and Cost of Living Index
<TABLE>
<CAPTION>
Berger Growth & Cost of
Date Income Fund S&P 500 Living Index
- ---- --------------------------------------------
<S> <C> <C> <C>
9/30/87 10,000 10,000 10,000
9/30/88 8,728 8,757 10,417
9/30/89 10,241 11,637 10,870
9/30/90 8,687 10,563 11,539
9/30/91 13,792 13,843 11,930
9/30/92 14,889 15,365 12,287
9/30/93 18,831 17,353 12,617
9/30/94 19,378 17,999 12,991
9/30/95 22,100 23,334 13,322
9/30/96 24,457 28,063 13,722
9/30/97 32,910 39,398 14,017
</TABLE>
The Berger Growth & Income Fund*
Average Annual Total Return
<TABLE>
As of September 30, 1997
- -------------------------------------
<S> <C>
1 Year 34.6%
5 Year 17.2%
10 Year 12.7%
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
Report of Independent Accountants
To the Board of Directors and Shareholders of Berger Growth and Income Fund,
Inc.
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger Growth and Income Fund, Inc.
(the "Fund") at September 30, 1997, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the three years in
the period then ended, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 1997 by correspondence with the
custodian and the application of alternative auditing procedures where
securities purchased had not been received, provide a reasonable basis for the
opinion expressed above. The financial statements of the Fund for the year ended
September 30, 1994 were audited by other independent accountants whose report
dated October 28, 1994 expressed an unqualified opinion on those financial
statements.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
34 September 30, 1997 Annual Report The Berger Funds
<PAGE>
Berger
Growth and
Income Fund
- ------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (77.8%) September 30, 1997
- ------------------------------------------------------------------------------
<S> <C>
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
Auto/Truck - Original Equipment (0.9%)
99,800 Hayes Wheels International, Inc. $ 3,368,250
- ------------------------------------------------------------------------------
Banks - Money Center (3.5%)
50,000 Chase Manhattan Corporation 5,900,000
50,000 Citicorp 6,696,875
- ------------------------------------------------------------------------------
12,596,875
- ------------------------------------------------------------------------------
Banks - Northeast (1.9%)
110,000 State Street Corporation 6,703,125
- ------------------------------------------------------------------------------
Banks - Super Regional (1.5%)
85,000 Norwest Corporation 5,206,250
- ------------------------------------------------------------------------------
Commercial Services - Security/Safety (2.0%)
150,000 Diebold, Inc. 7,106,250
- ------------------------------------------------------------------------------
Computer - Local Networks (1.5%)
75,000 Cisco Systems, Inc.* 5,479,688
- ------------------------------------------------------------------------------
Computer - Memory Devices (1.3%)
100,000 Microchip Technology, Inc.* 4,515,625
- ------------------------------------------------------------------------------
Computer - Mini/Micro (2.1%)
100,000 Compaq Computer Corporation 7,475,000
- ------------------------------------------------------------------------------
Computer - Peripheral Equipment (2.6%)
200,000 Adaptec, Inc.* 9,350,000
- ------------------------------------------------------------------------------
Computer - Software (0.3%)
174,650 Informix Corporation* 1,222,550
- ------------------------------------------------------------------------------
Containers - Paper/Plastic (0.2%)
54,000 Ivex Packaging 878,400
- ------------------------------------------------------------------------------
Diversified Operations (1.3%)
110,000 Allied Signal, Inc. 4,675,000
- ------------------------------------------------------------------------------
Electronic - Semiconductor Equipment (1.8%)
140,000 Lam Research Corporation* 6,510,000
- ------------------------------------------------------------------------------
Electronic - Semiconductor Manufacturing (5.4%)
150,000 Atmel Corporation 5,465,625
70,000 Intel Corporation 6,461,875
100,000 Motorola, Inc. 7,187,500
- ------------------------------------------------------------------------------
19,115,000
- ------------------------------------------------------------------------------
Electrical Equipment (1.9%)
100,000 Honeywell, Inc. 6,718,750
- ------------------------------------------------------------------------------
Finance - Equity Real Estate Investment Trust (10.1%)
100,000 Crescent Real Estate Equities Co. 4,012,500
600,000 Innkeepers USA Trust 10,312,500
350,004 Patriot American Hospitality
Operating Co. 11,156,378
187,500 Starwood Lodging 10,769,531
- ------------------------------------------------------------------------------
36,250,909
- ------------------------------------------------------------------------------
Finance - Mortgage Real Estate Investment Trust (1.3%)
149,800 Redwood Trust, Inc. 4,550,175
- ------------------------------------------------------------------------------
Household - Housewares (3.1%)
250,000 Sunbeam Corporation 11,093,750
- ------------------------------------------------------------------------------
Insurance - Life (2.4%)
175,000 Conseco, Inc. 8,542,188
- ------------------------------------------------------------------------------
Insurance - Property/Casualty/Title (3.5%)
99,800 Frontier Insurance Group, Inc. 3,792,400
100,000 Mercury General Corporation 8,750,000
- ------------------------------------------------------------------------------
12,542,400
- ------------------------------------------------------------------------------
Medical - Biomedical/Genetics (1.7%)
125,000 Amgen, Inc.* 5,992,188
- ------------------------------------------------------------------------------
Medical - Ethical Drug (1.7%)
50,000 Eli Lilly & Co. 6,034,375
- ------------------------------------------------------------------------------
Medical - Wholesale Drug/Sundries (3.1%)
110,000 McKesson Corp. 11,213,125
- ------------------------------------------------------------------------------
Oil & Gas - Drilling (2.0%)
200,000 Falcon Drilling Company, Inc.* 7,062,500
- ------------------------------------------------------------------------------
Oil & Gas - Field Services (5.0%)
85,000 BJ Services Co.* 6,311,250
174,800 McDermott International, Inc. 6,380,200
60,000 Schlumberger Ltd. 5,051,250
- ------------------------------------------------------------------------------
17,742,700
- ------------------------------------------------------------------------------
Oil & Gas - Machinery/Equipment (1.1%)
55,500 Cooper Cameron Corporation* 3,985,594
- ------------------------------------------------------------------------------
Pollution Control - Services (1.3%)
187,000 Eastern Environmental Services, Inc. 4,768,500
- ------------------------------------------------------------------------------
Retail - Drug Stores (2.5%)
160,000 Rite Aid Corporation 8,870,000
- ------------------------------------------------------------------------------
Retail - Major Discount Chains (1.7%)
100,000 Dayton-Hudson Corporation 5,993,750
- ------------------------------------------------------------------------------
Retail - Miscellaneous Diversified (1.0%)
90,300 Hertz 3,403,181
- ------------------------------------------------------------------------------
Retail - Supermarkets (1.4%)
200,000 American Stores Company 4,875,000
- ------------------------------------------------------------------------------
Retail/Wholesale - Computers (1.9%)
200,000 Tandy Corporation 6,725,000
- ------------------------------------------------------------------------------
</TABLE>
35 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Growth and
Income Fund
Schedule of Investments
<TABLE>
<CAPTION>
Common Stocks (77.8%) September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C>
Telecommunications - Equipment (2.8%)
150,000 ECI Telecom, Ltd. $ 4,856,250
50,000 Northern Telecom, Ltd. 5,196,875
- ------------------------------------------------------------------------------
10,053,125
- ------------------------------------------------------------------------------
Transportation - Airlines (2.0%)
174,475 U.S. Air Group, Inc.* 7,218,901
- ------------------------------------------------------------------------------
Total Common Stock (Cost $198,478,179) 277,838,124
- ------------------------------------------------------------------------------
Convertible Preferred Stock (2.2%)
- ------------------------------------------------------------------------------
Leisure - Movies & Related (2.2%)
150,000 Metromedia International* 7,715,625
- ------------------------------------------------------------------------------
Total Convertible Preferred Stock (Cost $7,665,968) 7,715,625
- ------------------------------------------------------------------------------
Convertible Debentures (7.7%)
- ------------------------------------------------------------------------------
Commercial Services - Miscellaneous (1.9%)
$2,500,000 Career Horizons, Inc.
7.00% due 11/01/02 6,871,875
- ------------------------------------------------------------------------------
Diversified Operations (0.7%)
2,500,000 Loews Corp.- 3.13% due 09/15/07 2,615,625
- ------------------------------------------------------------------------------
Oil & Gas Drilling (0.8%)
2,000,000 Diamond Offshore Drilling, Inc.- 3.75%
due 02/15/17 2,905,000
- ------------------------------------------------------------------------------
Pollution Control - Equipment (2.7%)
4,000,000 U.S. Filter Corp. - 6.00%
due 09/1/05 9,540,000
- ------------------------------------------------------------------------------
Pollution Control - Services (1.6%)
4,000,000 United Waste Systems/1/
4.50% due 6/1/01 5,780,000
- ------------------------------------------------------------------------------
Total Convertible Debentures (Cost $22,867,900) 27,712,500
- ------------------------------------------------------------------------------
Foreign Government Obligations (0.3%)
- ------------------------------------------------------------------------------
A$ 700,000 Queensland Treasury-Global Note 8.00%
due 08/14/01 (Australia) 553,475
A$ 700,000 Queensland Treasury-Global Note 12.00%
due 08/15/01 (Australia) 620,486
- ------------------------------------------------------------------------------
Total Foreign Government Obligations (Cost $1,132,486) 1,173,961
- ------------------------------------------------------------------------------
U.S. Government Obligations (8.2%)
- ------------------------------------------------------------------------------
$ 295,000 U.S. Treasury Bills due 10/09/97 $ 294,669
13,130,000 U.S. Treasury Bills due 10/16/97 13,102,675
2,570,000 U.S. Treasury Bills due 11/6/97 2,557,286
7,845,000 U.S. Treasury Bills due 11/13/97 7,799,221
5,550,000 U.S. Treasury Bills due 11/20/97 5,463,944
- ------------------------------------------------------------------------------
Total U.S. Government Obligations
(Amortized Cost $29,217,795) 29,217,795
- ------------------------------------------------------------------------------
Federal National Mortgage Association Discount Notes (2.4%)
- ------------------------------------------------------------------------------
$2,200,000 FNMA Discount Notes Due 10/20/97 2,193,789
1,300,000 FNMA Discount Notes Due 10/21/97 1,296,100
2,100,000 FNMA Discount Notes Due 10/24/97 2,092,809
2,900,000 FNMA Discount Notes Due 10/27/97 2,888,708
- ------------------------------------------------------------------------------
Total FNMA Discount Notes
(Amortized Cost $8,471,406) 8,471,406
- ------------------------------------------------------------------------------
Total Investments (Cost $267,833,734) (98.6%) 352,129,411
(Cost for federal income tax purposes $267,942,924)
Other Assets, Less Liabilities (1.4%) 4,893,586
- ------------------------------------------------------------------------------
Net Assets (100.0%) $ 357,022,997
- ------------------------------------------------------------------------------
</TABLE>
* Non-Income Producing Security
1. Pursuant to Rule 144A, resale is restricted to qualified institutional
buyers.
A$ Australian Dollars
See notes to financial statements.
36 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Growth and
Income Fund
Statement of Assets and Liabilities (Amounts in Thousands Except Net Asset
Value Per Share)
<TABLE>
<CAPTION>
September 30, 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 267,834
- ----------------------------------------------------------------------------------------------------------
Investments at value $ 352,129
Cash 634
Receivables
Investment securities sold 8,350
Fund shares sold 118
Dividends and interest 760
- ----------------------------------------------------------------------------------------------------------
Total Assets 361,991
- ----------------------------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 4,228
Fund shares redeemed 155
Accrued investment advisory fees 216
Accrued transfer agent fees 187
Accrued 12b-1 distribution & advertising fees 156
Other accrued expenses 26
- ----------------------------------------------------------------------------------------------------------
Total Liabilities 4,968
- ----------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 357,023
Capital Shares
Authorized (Par Value $0.01) 100,000
- ----------------------------------------------------------------------------------------------------------
Shares Outstanding 21,349
- ----------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 16.72
- ----------------------------------------------------------------------------------------------------------
<CAPTION>
Statement of Operations (Amounts in Thousands)
- ----------------------------------------------------------------------------------------------------------
For the Year Ended
September 30, 1997
- ----------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividends $ 5,035
Interest 2,675
- ----------------------------------------------------------------------------------------------------------
Total Income 7,710
- ----------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 2,442
12b-1 distribution & advertising fees 814
Transfer agent fees 1,055
Postage, printing & reports 391
Registration fees 36
Custodian fees 38
Directors'/Trustees' fees & expenses 38
Accounting fees 32
Administrative services 32
Legal fees 32
Insurance & bonds 5
Audit fees 12
Other 2
- ----------------------------------------------------------------------------------------------------------
Total Expenses 4,929
Less fees paid indirectly (8)
Less earnings credits (42)
- ----------------------------------------------------------------------------------------------------------
Expenses - Net 4,879
- ----------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 2,831
- ----------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on securities and foreign currency transactions 62,443
Net changes in unrealized appreciation (depreciation) on securities and
foreign currency transactions 32,102
- ----------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and foreign currency transactions 94,545
- ----------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 97,376
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
37 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Growth and
Income Fund
Statements of Changes in Net Assets (Amounts in Thousands)
<TABLE>
<CAPTION>
Year Ended Year Ended
9/30/97 9/30/96
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
From Operations
Net investment income (loss) $ 2,831 $ 4,686
Net realized gain (loss) on securities and foreign currency transactions 62,443 49,901
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions 32,102 (17,526)
Net realized gain (loss) on futures transactions 0 (3,748)
Net Increase (Decrease) in Net Assets Resulting from Operations 97,376 33,313
From Dividends and Distributions to Shareholders
Net investment income (2,752) (4,785)
Net realized gains on investments (35,161) 0
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders (37,913) (4,785)
- ---------------------------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 50,210 50,365
Net asset value of shares issued in reinvestment of dividends 36,434 4,558
- ---------------------------------------------------------------------------------------------------------------------------------
Total 86,644 54,923
Payments for shares redeemed (104,622) (122,309)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions (17,978) (67,386)
Increase (Decrease) in Net Assets 41,485 (38,858)
Net Assets
Beginning of period 315,538 354,396
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 357,023 $ 315,538
- ---------------------------------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 217,185 $ 235,163
Undistributed net investment income (loss) (39) (23)
Undistributed net realized gain (loss) from investments 55,581 28,204
Unrealized appreciation (depreciation) on investments 84,296 52,194
- ---------------------------------------------------------------------------------------------------------------------------------
Total $ 357,023 $ 315,538
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in Fund Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Shares sold 3,473 3,798
Shares issued to shareholders in reinvestment of dividends 2,713 339
- ---------------------------------------------------------------------------------------------------------------------------------
Total 6,186 4,137
Shares repurchased (7,278) (9,196)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (1,092) (5,059)
Shares outstanding beginning of period 22,441 27,500
- ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding end of period 21,349 22,441
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
38 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger Balanced Fund [PICTURE APPEARS HERE]
Co-Portfolio Patrick S. Adams
Managers' Commentary John B. Jares
Investment Approach
The Berger Balanced Fund (the "Fund") is our most conservative fund - our
"comfort" Fund. We always will have at least 25% of Fund net assets invested in
stocks and 25% in fixed-income securities in order to achieve our objective of
providing capital appreciation and current income.
When we consider the stock market attractive, and when the number of potentially
profitable investments is plentiful, we may invest up to 75% of Fund net assets
in stocks. We primarily seek reasonably priced stocks of mid to large cap
companies that have a history of strong, consistent, and predictable earnings,
strong management, competitive products and services, and conservatively
financed balance sheets.
When we don't find stocks as attractive, or when the market is more volatile, we
will reduce our stock holdings and increase our investment in fixed-income
securities such as U.S. government and corporate debt securities, convertible
securities, and preferred stock.
Initial Trading
We are building the portfolio for the Balanced Fund on a cautious, but
optimistic basis. Subsequent to year end, we immediately invested the majority
of total Fund assets in defensive fixed-income securities, i.e., securities with
shorter maturities that pay interest. This gives us the liquidity and
flexibility to move dollars into more attractive fixed-income securities or
stocks as opportunities arise, while we generate current income for our
shareholders.
On the stock side, we are investing slowly, and, at least initially, in the
promising growth companies we already have identified through bottom-up research
for other Berger Funds. For example, two stocks we're high on in the Berger One
Hundred Fund - Household International, a diversified financial services firm;
and Safeway, a grocery store - have been purchased subsequent to year end for
the Berger Balanced Fund portfolio. We will add to our stock holdings as we
identify stocks that meet our selection criteria.
Although we have been in a prolonged bull market that makes reasonably priced
companies harder to find, we believe there still are many good opportunities
available. One significant advantage of this Fund is that when we feel there are
not as many good stock investments available, we can shift assets to
fixed-income securities.
We are optimistic about the market over the next several quarters, even though
there is the risk that the Federal Reserve Board could raise interest rates if
it feels the economy is growing at too brisk a pace. By investing in stocks as
well as some bonds, however, the Fund is designed to weather a variety of market
conditions. You might think of this Fund as a "Fund for all seasons." It is a
more conservative way to take advantage of the Berger growth investment
philosophy - and may provide critical diversification in the event of a stock
market correction.
Thank you for your investment in the Berger Balanced Fund.
39 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Balanced
Fund
Report of Independent Accountants
To the Board of Trustees and Shareholders of Berger Investment Portfolio Trust
- --------------------------------------------------------------------------------
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Berger Small Company Growth Fund,
Berger New Generation Fund and Berger Balanced Fund (constituting Berger
Investment Portfolio Trust, hereafter referred to as the "Trust") at September
30, 1997, the results of each of their operations for each of the periods
indicated, the changes in each of their net assets for each of the periods
indicated and the financial highlights for each of the periods indicated, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Trust's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and the application of
alternative auditing procedures where securities purchased had not been
received, provide a reasonable basis for the opinion expressed above. The
financial statements of Berger Small Company Growth Fund for the period ended
September 30, 1994 were audited by other independent accountants whose report
dated October 28, 1994 expressed an unqualified opinion on those financial
statements.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
- --------------------------------------------------------------------------------
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (28.9%) September 30, 1997
- ------------------------------------------------------------------------------
Shares, Units or
Principal Amount Market Value
- ------------------------------------------------------------------------------
<S> <C>
Electrical Equipment (9.4%)
50,000 Power One, Inc.* $ 700,000
- ------------------------------------------------------------------------------
Oil & Gas - Drilling (4.8%)
9,000 UTI Energy Corporation* 355,500
- ------------------------------------------------------------------------------
Telecommunications - Services (14.8%)
50,000 RSL Communications - Class A* 1,100,000
- ------------------------------------------------------------------------------
Total Investments (Cost $2,155,500/1/) (28.9%) 2,155,500
- ------------------------------------------------------------------------------
Other Assets, Less Liabilities (71.1%) 5,306,344
- ------------------------------------------------------------------------------
Net Assets (100.0%) $ 7,461,844
- ------------------------------------------------------------------------------
</TABLE>
* Non-Income Producing Security
1. Also represents cost for tax purposes.
See notes to financial statements.
40 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger
Balanced
Fund
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
September 30, 1997
- ----------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 2,155,500
- ----------------------------------------------------------------------------------------
Investments at value $ 2,155,500
Cash 10,125
Receivables
Fund shares sold 7,451,719
- ----------------------------------------------------------------------------------------
Total Assets 9,617,344
- ----------------------------------------------------------------------------------------
Liabilities
Payables
Investment securities purchased 2,155,500
- ----------------------------------------------------------------------------------------
Total Liabilities 2,155,500
- ----------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding 7,461,844
Capital Shares
Authorized (par value $0.01) Unlimited
- ----------------------------------------------------------------------------------------
Shares outstanding 746,184
- ----------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share $ 10.00
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Statement of Changes in Net Assets
- ----------------------------------------------------------------------------------------
<CAPTION>
Period Ended
9/30/97*
- ----------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 0
Net realized gain (loss) on security transactions 0
Net change in unrealized appreciation (depreciation) on security transactions 0
Net Increase (Decrease) in Net Assets Resulting from Operations 0
From Dividends and Distributions to Shareholders
Net investment income 0
Net realized gains on investments 0
- ----------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders 0
- ----------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 7,461,844
- ----------------------------------------------------------------------------------------
Total 7,461,844
Net Increase (Decrease) in Net Assets Derived From Fund Share Transactions 7,461,844
Increase (Decrease) in Net Assets 7,461,844
Net Assets
Beginning of period 0
- ----------------------------------------------------------------------------------------
End of period $ 7,461,844
- ----------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid in surplus) $ 7,461,844
- ----------------------------------------------------------------------------------------
Total $ 7,461,844
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Transactions in Fund Shares
Shares Sold 746,184
Shares issued to shareholders in reinvestment of dividends 0
- ----------------------------------------------------------------------------------------
Total 746,184
Shares repurchased 0
- ----------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 746,184
Shares outstanding beginning of period 0
- ----------------------------------------------------------------------------------------
Shares outstanding end of period 746,184
- ----------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
See notes to financial statements.
41 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Notes to
Financial
Statements
- --------------------------------------------------------------------------------
1 Organization and Significant Accounting Policies
Organization
The Berger New Generation Fund ("BNG"), Berger Small Company Growth Fund
("BSCG"), Berger Small Cap Value Fund ("BSCV"), Berger One Hundred Fund ("100"),
Berger/BIAM International Fund ("BBIF"), Berger Growth and Income Fund ("BG&I")
and Berger Balanced Fund ("BBAL")(individually the "Fund" and collectively, the
"Funds") are diversified open-end management investment companies registered
under the Investment Company Act of 1940 (the "1940 Act"). Shares of each fund
are fully paid and non-assessable when issued. All shares issued by a particular
Fund participate equally in dividends and other distributions by that Fund. The
investment objective of each Fund is capital appreciation, including the BBAL
and BG&I which also pursue current income.
The 100 and BG&I are corporations registered in the State of Maryland. BSCG, BNG
and BBAL are separate series established under the Berger Investment Portfolio
Trust, a Delaware business trust ("BIP Trust"). BBAL commenced investment
operations on September 30, 1997. BSCV is the only portfolio established under
the Berger Omni Investment Trust ("OMNI Trust"), a Massachusetts business trust
and the BBIF (which commenced investment operations on November 7, 1996) is one
of three series established under the Berger/BIAM Worldwide Funds Trust ("BBWF
Trust"), a Delaware business trust. Other series or portfolios may be added
under each Trust in the future. All costs in organizing the Trusts were paid by
Berger Associates, Inc. ("Berger") or BBOI Worldwide LLC ("BBOI").
Prior to February 14, 1997, the BSCV and OMNI Trust were known as The Omni
Investment Fund. On February 14, 1997, all of the outstanding shares of The Omni
Investment Fund were designated Institutional Shares ("BSCV; Inst") of the BSCV
series and a separate class of shares, Investor Shares ("BSCV; Inv"), were
offered. Both classes of shares have identical rights to earnings, assets and
voting privileges.
BBIF invests all of its investable assets in the Berger/BIAM International
Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide Portfolios Trust
("BBWP Trust"). The value of such investment reflects BBIF's proportionate
interest in the net assets of the Portfolio (15.3% at September 30, 1997). The
Portfolio is an open-end management investment company and has the same
investment objective and policies as BBIF. The performance of BBIF will be
derived 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
BBIF's financial statements.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges, the NASDAQ Stock Market and foreign
exchanges are valued at the last sale price on such markets, or, if no last sale
price is available, they are valued using the mean between their current bid and
asked prices. Securities traded in the over-the-counter market are valued at the
mean between their current bid and asked prices. Short-term obligations maturing
within sixty days are valued at amortized cost, which approximates market value.
Prices of foreign securities are converted to U.S. dollars using exchange rates
determined prior to the close of the Exchange. Securities for which quotations
are not readily available are valued at fair values as determined in good faith
pursuant to consistently applied procedures established by the
directors/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 Fund 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 directors/trustees.
Since BBIF invests all of its investable assets in the Portfolio, the value of
BBIF'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 Statements which are included elsewhere
in this report.
Calculation of Net Asset Value
The per share calculation of net asset value is determined by dividing the total
value of assets, less liabilities, by total number of shares outstanding.
Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of their
taxable income to shareholders. Therefore, no income tax provision is required.
42 Annual Report September 30, 1997 The Berger Funds
<PAGE>
- --------------------------------------------------------------------------------
1 Organization and Significant Accounting Policies - Continued
- --------------------------------------------------------------------------------
Foreign Currency Translation
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
Investment Transactions and Investment Income
Investment transactions are accounted for on the date investments are purchased
or sold. Dividend income and distributions to shareholders are recorded on the
ex-dividend date, except if the ex-dividend date has passed, certain dividends
from foreign securities are reported as soon as the Fund is informed of the ex-
dividend date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are computed on the
identified cost basis for both financial statement and Federal income tax
purposes for all securities.
Allocation of Income, Expenses and Gains and Losses
Income, expenses (other than those attributable to a specific class), gains and
losses of the BSCV are allocated daily to each class of shares based upon the
proportion of relative net assets represented by each class as a percentage of
total net assets of the BSCV. Expenses directly attributable to a specific class
are charged against the operations of such class.
As an investor in the Portfolio, BBIF 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, 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 BBIF and other investors in the Portfolio.
Common Expenses
Certain expenses which are not directly allocable to a specific Fund are
allocated to the Funds on the basis of relative net assets.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and ass umptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
- --------------------------------------------------------------------------------
2 Agreements
- --------------------------------------------------------------------------------
Berger renders investment advisory services to BNG, BSCG, BSCV, 100, BG&I and
BBAL pursuant to agreements which provide for an investment advisory fee to be
paid to Berger at the following annual rates as a percentage of average daily
net assets; BNG, BSCG and BSCV - .90%, 100 and BG&I - .75% and BBAL - .70%.
Berger has delegated the day-to-day investment management of BSCV to Perkins,
Wolf & McDonnell ("PWM"). As compensation for services rendered to BSCV, PWM
receives a sub-advisory fee from Berger at an annual rate of .90% of the BSCV's
average daily net assets up to $75 million; .50% of average daily net assets
between $75 million and $200 million and .20% of average daily net assets in
excess of $200 million. All investment advisory fees are accrued daily and paid
monthly. Berger has also agreed to voluntarily waive its advisory fee for BNG
and BBAL to the extent that the each Fund's normal operating expenses in any
fiscal year (including the management fee and the 12b-1 fee, but excluding
brokerage commissions, interest, taxes and extraordinary expenses) exceeds 1.90%
and 1.50%, respectively, of each Fund's average daily net assets for that fiscal
year.
Pursuant to an Administrative Services Agreement, whereby BBOI serves as
the administrator to BBIF, the Fund pays BBOI a fee at an annual rate equal to
the lesser of 0.45% of its average daily net assets or BBOI's annual cost to
provide or procure such services plus 0.02% of the Fund's average daily net
assets. Under the Agreement, BBOI 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, printing and mailing to shareholders of prospectuses and
other required communication and certain other administrative services. BBOI has
delegated the administration of the Fund to Berger. For such services, BBOI has
agreed to compensate Berger with a sub-administration annual fee equal to 0.25%
of the Fund's average daily net assets. Such fee has been voluntarily waived by
Berger for the period ended September 30, 1997.
The Funds have adopted plans pursuant to Rule 12b-1 under the Investment Company
Act of 1940 (the "Plans"). The BSCV Plan, which became effective February 14,
1997, applies only to BSCV; Inv. The Plans provide for the payment to Berger of
a 12b-1 fee of .25% per annum of each Fund's average daily net assets (or the
net assets of a particular class of shares, where applicable) to finance
43 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Notes to
Financial
Statements
- --------------------------------------------------------------------------------
2 Agreements - Continued
- --------------------------------------------------------------------------------
activities primarily intended to result in the sale of shares. The Plans provide
that such payments will be made to Berger as compensation rather than as
reimbursements for actual expenses incurred to promote the sale of shares of the
Funds.
The BNG, BSCG, BSCV, 100, BG&I and BBAL have each entered into an administrative
services agreement with Berger. The administrative services agreement provides
for an annual fee of .01 of 1% of the average daily net assets of each Fund,
computed daily and payable monthly. The Funds have also entered into
recordkeeping and pricing agreements with Investors Fiduciary Trust Company
("IFTC"), who also serves as the Funds' custodian and transfer agent. The
recordkeeping and pricing agreement provides for the monthly payment of a base
fee plus a fee computed as a percentage of average daily net assets on a total
relationship basis with other Berger Funds. IFTC's fees for custody,
recordkeeping and pricing, or transfer agency services are subject to reduction
by credits earned by each Fund, based on the cash balances of each Fund held by
IFTC as custodianor by credits received from directed brokerage transactions.
DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common
ownership, provides shareholder accounting services to the Funds. DST
Securities, Inc., a wholly owned subsidiary of DST, is designated as an
introductory broker on certain portfolio transactions. The Funds receive an
amount equal to the brokerage commissions paid to DST Securities, Inc. as
credits against transfer agent fees and expenses. For the period ended September
30, 1997, the 100, BG&I and BSCG, earned $352,000, $8,000 and $14,000 of such
credits, respectively.
Certain officers and directors of Berger and BBOI are also officers and/or
directors/trustees of the Funds. Directors/ trustees who are not affiliated with
Berger or BBOI received aggregate directors'/trustees' fees and reimbursed
expenses from the Funds totaling $357,000 for the fiscal periods ended September
30, 1997.
- --------------------------------------------------------------------------------
3 Investment Transactions
- --------------------------------------------------------------------------------
Purchases and Sales
Purchases and sales of investment securities (excluding short-term securities)
during the year or period ended September 30, 1997, as appropriate, were as
follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
- --------------------------------------------------------------------------------
<S> <C> <C>
BNG $ 192,828,205 $ 188,167,951
BSCG 782,658,169 882,945,866
BSCV 85,031,511 43,371,375
BBIF/1/ N/A N/A
100 3,433,519,711 4,152,139,367
BG&I 506,300,084 573,168,965
BBAL 2,155,500 0
</TABLE>
/1./ See the Portfolio's Notes to Financial Statements for information regarding
purchases and sales of investment securities.
There were no purchases or sales of long-term govern-ment securities during the
year or period ended September 30, 1997.
Net Appreciation (Depreciation)
At September 30, 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 was as follows:
<TABLE>
<CAPTION>
Unrealized Unrealized
Fund Appreciation (Depreciation) Net
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
BNG $ 44,645,912 $ (753,074) $ 43,892,838
BSCG 338,439,109 (3,666,183) 334,772,926
BSCV 16,257,734 (593,284) 15,664,450
BBIF/1/ N/A N/A N/A
100 296,972,507 (16,593,204) 280,379,303
BG&I 88,047,666 (3,861,179) 84,186,487
BBAL 0 0 0
</TABLE>
/1./ See the Portfolio's Notes to Financial Statements for the composition of
net unrealized appreciation.
Futures, Forward Contracts and Options
Each Fund may hold certain types of futures, forward contracts and/or options
for the purpose of hedging each portfolio against exposure to market value
fluctuations. The use of such instruments may involve certain risks as a result
of unanticipated movements in the market. A lack of correlation between the
value of such instruments and the assets being hedged, or unexpected adverse
price movements, could render the Funds' hedging strategy unsuccessful. In
addition, there can be no assurance that a liquid secondary market will exist
for the instrument. Realized gains or losses on these securities are included in
Net Realized Gain (Loss) on Securities Transactions in the Statements of
Operations. A summary of options transactions for the Berger Small Cap Value
Fund for the fiscal period ended September 30, 1997 is listed below:
<TABLE>
<CAPTION>
Number of Contracts Premiums Received
- --------------------------------------------------------------------------------
<S> <C> <C>
Options outstanding at
January 1, 1997 52 $ 56,866
Options written 0 0
Options closed (52) (56,866)
Options outstanding
at September 30, 1997 0 $ 0
</TABLE>
Federal Income Tax Status
Dividends paid by the Funds 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. Of the ordinary income distributions
declared for the year ended September 30, 1997, 100% qualified for the dividends
received deduction available to the corporate shareholders of the Berger Growth
and Income Fund.
44 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Notes to
Financial
Statements
- --------------------------------------------------------------------------------
3 Investment Transactions - Continued
- --------------------------------------------------------------------------------
The Funds distribute net realized capital gains, if any, to their shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatment for
net operating losses. Accordingly, these permanent differences in the character
of income and distributions between financial statements and tax basis have been
reclassified to paid-in-capital.
During the period ended September 30, 1997 the following reclassifications were
made:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Berger Berger
One Growth & Company New Small Cap
Hundred Income Growth Generation Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Paid in Capital -- -- (7,568,155) (1,498,979) 27,665
Undistributed
Net Investment
Income 7,587,389 (95,207) 8,220,827 1,614,221 (39,926)
Undistributed
Net Realized
Gain (7,587,389) 95,207 (652,672) (115,242) 12,261
</TABLE>
At September 30, 1997, BNG had capital loss carryovers in the amount of
$7,485,327, expiring on September 30, 2005, which may be used to offset future
realized capital gains for Federal income tax purposes.
- --------------------------------------------------------------------------------
4 Transactions With Affiliates
- --------------------------------------------------------------------------------
During February 1997, pursuant to a policy adopted by the Funds'
directors/trustees, Berger reimbursed the 100 Fund $794,000 as a result of a
security trading error.
- --------------------------------------------------------------------------------
5 Line of Credit
- --------------------------------------------------------------------------------
In July 1997, BNG, BSCG, BSCV, 100, BG&I and the Portfolio entered into an
ongoing agreement with certain banks which allows the Funds, collectively, to
borrow up to $150 million for temporary or emergency purposes. Interest on the
borrowings, if any, is charged to the specific fund executing the borrowing at
the Federal Funds Rate plus 75 basis points. In addition, the unsecured line of
credit requires a quarterly payment of a commitment fee based on the average
daily unused portion of the line of credit.
- --------------------------------------------------------------------------------
6 Change of Fiscal Year and Independent Accountants
- --------------------------------------------------------------------------------
Effective April 11, 1997, the trustees of the OMNI Trust approved changing
BSCV's fiscal year end from December 31 to September 30 and the trustees of BBWF
Trust approved changing BBIF's fiscal year end from July 31 to September 30.
Additionally, the trustees of OMNI Trust appointed Price Waterhouse LLP as
independent accountants for BSCV for the fiscal period ended September 30, 1997.
- --------------------------------------------------------------------------------
7 Subsequent Event
- --------------------------------------------------------------------------------
On October 20, 1997, the trustees of BIP Trust approved closing BSCG to new
investors effective November 17, 1997.
- --------------------------------------------------------------------------------
8 Other Matters (Unaudited)
- --------------------------------------------------------------------------------
A special meeting of shareholders of The OMNI Investment Fund was held
on February 13, 1997, at which shareholders approved a number of
proposals which facilitated BSCV becoming part of the Berger Funds
family of mutual funds. The proposals approved included the following:
Proposal 1. Election of ten new individuals as trustees of the OMNI
Trust, each who also serve as trustees of other Berger Funds;
Proposal 2. Approval of a new Investment Advisory Agreement with
Berger, pursuant to which BSCV pays Berger a fee at the annual rate of
0.90% of BSCV's average daily net assets for its advisory services;
Proposal 3. Approval of a new Sub-Advisory Agreement between Berger and PWM,
pursuant to which Berger pays PWM a fee at the annual rate of 0.90% of the first
$75 million of average daily net assets of BSCV, 0.50% of the next $125 million,
and 0.20% of any amount in excess of $200 million for sub-advisory services;
Proposal 4. Approval of amendments to The OMNI Investment Fund's Declaration of
Trust to permit the establishment of multiple classes of shares.
The following is a report of the votes cast:
<TABLE>
<CAPTION>
Withheld/
For Against Abstain Total
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Proposal 1
Dennis E. Baldwin 1,452,216 -- 48,098 1,500,314
William M.B. Berger 1,450,892 -- 49,422 1,500,314
Louis R. Bindner 1,450,892 -- 49,422 1,500,314
Katherine A. Cattanach 1,452,681 -- 47,633 1,500,314
Lucy Black Creighton 1,452,216 -- 48,098 1,500,314
Paul R. Knapp 1,421,744 -- 78,570 1,500,314
Gerard M. Lavin 1,452,681 -- 47,633 1,500,314
Harry T. Lewis, Jr 1,453,027 -- 47,287 1,500,314
Michael Owen 1,451,902 -- 48,412 1,500,314
William Sinclaire 1,452,681 -- 47,633 1,500,314
Proposal 2 1,414,857 71,974 13,483 1,500,314
Proposal 3 1,415,784 66,775 17,755 1,500,314
Proposal 4 1,413,948 67,988 18,378 1,500,314
</TABLE>
45 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM International Portfolio
- --------------------------------------------------------------------------------
For the Period from October 11, 1996 (Commencement of Investment Operations) to
September 30, 1997
The following pages should be read in conjunction with the Berger/BIAM
International Fund Annual Report.
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Trustees and Investors of
Berger/BIAM International Portfolio
- --------------------------------------------------------------------------------
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the supplemental data present fairly, in all material
respects, the financial position of Berger/BIAM International Portfolio (the
sole portfolio comprising Berger/BIAM Worldwide Portfolios Trust, hereafter
referred to as the "Portfolio") at September 30, 1997, and the results of its
operations, the changes in its net assets and the supplementary data for the
period October 11, 1996 (commencement of investment operations) through
September 30, 1997, in conformity with generally accepted accounting principles.
These financial statements and supplementary data (hereafter referred to as
"financial statements") are the responsibility of the Portfolio's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and brokers, and the
application of alternative auditing procedures where securities purchased had
not been received, provides a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
46 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (91.1%) September 30, 1997
- -----------------------------------------------------------------------------------------------------------------------------
Country/Shares Company Industry Market Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australia (5.6%)
106,970 Broken Hill Proprietary Mining, Metals & Minerals $ 1,247,314
194,800 National Australia Bank Commercial Banks & Other Banks 2,997,521
388,780 News Corporation Media 1,995,175
135,150 Western Mining Mining, Metals & Minerals 635,066
- -----------------------------------------------------------------------------------------------------------------------------
6,875,076
- -----------------------------------------------------------------------------------------------------------------------------
France (2.2%)
19,510 Michelin Auto Componments 1,110,733
13,640 Total Co. Francaise Petrole 'B' Oil 1,564,611
- -----------------------------------------------------------------------------------------------------------------------------
2,675,344
- -----------------------------------------------------------------------------------------------------------------------------
Germany (6.5%)
44,795 Hoechst Chemicals 1,992,583
5,381 Mannesmann Machining & Engineering Services 2,570,668
17,860 Siemens Electrical Equipment 1,209,413
37,580 Veba Diversified Industrials 2,201,495
- -----------------------------------------------------------------------------------------------------------------------------
7,974,159
- -----------------------------------------------------------------------------------------------------------------------------
Great Britain (30.6%)
110,750 Barclays Bank Commercial Banks & Other Banks 2,983,278
325,290 BAT Industries Beverage Industry/Tobacco Manufacturing 2,851,466
323,500 BTR Diversified Industrials 1,316,050
156,200 Cable & Wireless Utilities 1,331,413
137,700 Cadbury Schweppes Beverage Industry/Tobacco Manufacturing 1,327,107
63,820 EMI Group - Class B Entertainment/Leisure/Toys 627,439
228,350 General Electric Co. Electronics & Instruments 1,437,684
99,350 Glaxo Wellcome Health & Personal Care 2,236,578
140,100 Granada Group Entertainment/Leisure/Toys 1,981,253
112,700 Grand Metropolitan Beverage Industry/Tobacco Manufacturing 1,073,429
89,800 Kingfisher Retail Trade 1,225,565
195,500 Ladbroke Group Entertainment/Leisure/Toys 864,759
213,100 Lloyds TSB Group Commercial Banks & Other Banks 2,863,950
95,800 Premier Farnell Wholesale Trade 821,217
184,630 Prudential Insurance Life & Agents/Brokers 2,058,087
202,450 Safeway Retail Trade 1,315,471
126,400 Scottish Power Utilities 977,418
316,550 Shell Transport & Trading Company Oil 2,317,487
109,891 Siebe Machinery & Engineering Services 2,212,210
154,100 TI Group Machinery & Engineering Services 1,654,329
250,200 Vodafone Group Utilities 1,340,982
77,700 Zeneca Group Health & Personal Care 2,540,059
- -----------------------------------------------------------------------------------------------------------------------------
37,357,231
- -----------------------------------------------------------------------------------------------------------------------------
Hong Kong (1.5%)
56,400 HSBC Holdings Commercial Banks & Other Banks 1,887,775
- -----------------------------------------------------------------------------------------------------------------------------
Indonesia (1.6%)
256,000 Gudang Garam Beverage Industry/Tobacco Manufacturing 743,731
304,000 HM Sampoerna Beverage Industry/Tobacco Manufacturing 627,523
509,000 Telekomunikasi Utilities 564,258
- -----------------------------------------------------------------------------------------------------------------------------
1,935,512
- -----------------------------------------------------------------------------------------------------------------------------
Ireland (1.0%)
47,230 Allied Irish Banks Commercial Banks & Other Banks 416,756
257,100 Smurfit (Jefferson) Group Forestry & Paper Products 859,616
- -----------------------------------------------------------------------------------------------------------------------------
1,276,372
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
47 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
Schedule of Investments
<TABLE>
<CAPTION>
Common Stock (91.1%) - continued September 30,1997
- -----------------------------------------------------------------------------------------------------------------------------
Country/Shares Company Industry Market Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Italy (1.6%)
42,206 ENI SPA ITL Oil $ 266,399
252,380 Telecom Italia Utilities 1,685,318
- -----------------------------------------------------------------------------------------------------------------------------
1,951,717
- -----------------------------------------------------------------------------------------------------------------------------
Japan (13.8%)
115,000 Canon Computer/Commercial/Office Equipment 3,372,658
55,000 Dai Nippon Printing Media 1,178,914
73,000 Honda Motor Automobiles 2,553,317
87,000 Kao Corporation Food & Grocery 1,264,903
27,000 Murata Manufacturing Electronics & Instruments 1,170,938
11,000 Rohm Company Electronics & Instruments 1,297,719
73,000 Shiseido Health & Personal Care 1,176,588
26,000 Sony Corporation Household Durables & Appliances 2,462,510
78,000 Takeda Chemical Health & Personal Care 2,345,865
- -----------------------------------------------------------------------------------------------------------------------------
16,823,412
- -----------------------------------------------------------------------------------------------------------------------------
Malaysia (1.2%)
103,000 Hume Industries Construction & Building Materials 222,085
304,400 Sime Darby Diversified Holding Companies 632,897
203,000 RHB Capital Commercial Banks & Other Banks 240,111
118,000 United Engineers Construction & Building Materials 378,007
- -----------------------------------------------------------------------------------------------------------------------------
1,473,100
- -----------------------------------------------------------------------------------------------------------------------------
Mexico (0.5%)
203,670 Grupo Financiero Banamex - Class B Commercial Banks & Other Banks 633,681
- -----------------------------------------------------------------------------------------------------------------------------
Netherlands (7.6%)
75,130 ABN Amro Holdings Commercial Banks & Other Banks 1,525,156
86,600 Elsevier Media 1,260,699
57,302 ING Groep Insurance - Multi/Property/Casualty 2,638,224
35,055 Koninklijke PTT Nederland Utilities 1,380,869
35,350 Nutricia Ver Bedrijven Food Manufacturing 1,064,845
24,380 Royal Dutch Petroleum Oil 1,368,090
- -----------------------------------------------------------------------------------------------------------------------------
9,237,883
- -----------------------------------------------------------------------------------------------------------------------------
Philippines (0.3%)
208,370 San Miguel Corporation - Class B Beverage Industry/Tobacco Manufacturing 335,204
- -----------------------------------------------------------------------------------------------------------------------------
Singapore (4.4%)
190,000 City Development Real Estate 1,230,618
192,412 Development Bank Of Singapore Commercial Banks & Other Banks 1,963,773
117,600 Fraser & Neave Beverage Industry/Tobacco Manufacturing 673,209
104,100 Singapore Press Holdings Media 1,532,385
- -----------------------------------------------------------------------------------------------------------------------------
5,399,985
- -----------------------------------------------------------------------------------------------------------------------------
Spain (1.2%)
44,330 Banco De Santander Commercial Banks & Other Banks 1,456,519
- -----------------------------------------------------------------------------------------------------------------------------
Switzerland (11.0%)
1,511 Alusuisse Lonza Holdings Fabricated Metal Products 1,485,204
1,500 Nestle Food & Grocery Products 2,096,223
3,217 Novartis Health & Personal Care 4,949,612
207 Roche Holdings Health & Personal Care 1,841,904
2,053 Schw Ruckverischer Insurance - Multi/Property/Casualty 3,088,528
- -----------------------------------------------------------------------------------------------------------------------------
13,461,471
- -----------------------------------------------------------------------------------------------------------------------------
Thailand (0.5%)
115,100 Bangkok Bank Commercial Banks & Other Banks 594,791
- -----------------------------------------------------------------------------------------------------------------------------
Total Common Stock (Cost $104,002,414) 111,349,232
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
48 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
Schedule of Investments
<TABLE>
<CAPTION>
Preferred Stock (0.1%) September 30, 1997
- -----------------------------------------------------------------------------------------------------------------------------
Country/Shares/Principal Amount Company Industry Market Value
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Australia(0.1%)
19,750 News Corporation Media $ 87,505
- -----------------------------------------------------------------------------------------------------------------------------
Total Preferred Stock (cost $85,803) 87,505
- -----------------------------------------------------------------------------------------------------------------------------
U.S. Government Obligations (4.0%)
- -----------------------------------------------------------------------------------------------------------------------------
$5,000,000 U.S. Treasury Bills due 12/11/97 (Amortized Cost $4,951,188) 4,951,188
- -----------------------------------------------------------------------------------------------------------------------------
Repurchase Agreement (4.0%)
4,879,000 Repurchase agreement with State Street Bank, 4.25% dated
September 30, 1997, to be repurchased at $4,879,576 on October 1,
1997, collateralized by U.S. Treasury Bond, 6.25% - August 31,
1998, with a value of $4,977,513 (Cost $4,879,000) 4,879,000
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost $113,918,405) (99.2%) 121,266,925
(Cost for federal income tax purposes $113,971,820)
Other Assets, Less Liabilities (0.8%) 950,075
Net Assets (100%) $ 122,217,000
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
49 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities (Amounts in Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investments at cost $ 113,918
- ------------------------------------------------------------------------------------------------------------------
Investments at value $ 121,267
Foreign currency at value (cost $142) 146
Receivables
Contributions 1,153
Investment securities sold 157
Dividends and interest 484
- ------------------------------------------------------------------------------------------------------------------
Total Assets 123,207
- ------------------------------------------------------------------------------------------------------------------
Liabilities
Payables
Withdrawals 561
Investment securities purchased 215
Accrued administration fees 63
Accrued investment advisory fees 83
Accrued legal fees 1
Net unrealized depreciation on open forward currency contracts 67
- ------------------------------------------------------------------------------------------------------------------
Total Liabilities 990
- ------------------------------------------------------------------------------------------------------------------
Net Assets $ 122,217
Represented by: Paid-in capital for beneficial interests $ 122,217
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Statement of Operations (Amounts in Thousands)
- ------------------------------------------------------------------------------------------------------------------
Period From October 11, 1996* to
September 30, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividend income (net of $194 foreign withholding taxes) $ 1,381
Interest 194
- ------------------------------------------------------------------------------------------------------------------
Total Income 1,575
- ------------------------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 560
Accounting services 10
Trustees' fees & expenses 39
Custodian fees 56
Legal fees 7
Postage, printing and reports 6
Insurance & bonds 4
Audit fees 2
- ------------------------------------------------------------------------------------------------------------------
Total Expenses 684
Less earnings credits (66)
- ------------------------------------------------------------------------------------------------------------------
Less fees waived by advisor (61)
- ------------------------------------------------------------------------------------------------------------------
Expenses - Net 557
- ------------------------------------------------------------------------------------------------------------------
Net Investment income (Loss) 1,018
- ------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on investments and foreign currency transactions 1,712
Net unrealized appreciation (depreciation) on investments and foreign currency transactions 6,713
- ------------------------------------------------------------------------------------------------------------------
Net change in realized and unrealized gain (loss) on investment and foreign currency transactions 8,425
- ------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 9,443
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Commencement of investment operations.
See notes to financial statements.
50 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
Statement of Changes in Net Assets (Amounts in Thousands)
<TABLE>
<CAPTION>
Period From October 11, 1996*
to September 30, 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 1,018
Net realized gain (loss) on investments and foreign currency transactions 1,712
Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions 6,713
- ------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets From Operations 9,443
- ------------------------------------------------------------------------------------------------------------------
From Transactions in Investors' Beneficial Interest
Contributions 127,144
Withdrawals (14,370)
Net Increase (Decrease) in Net Assets From Investors' Transactions 112,774
- ------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 122,217
- ------------------------------------------------------------------------------------------------------------------
Net Assets
Beginning of period 0
- ------------------------------------------------------------------------------------------------------------------
End of period $ 122,217
- ------------------------------------------------------------------------------------------------------------------
Components of Net Assets
Capital (par value and paid-in-surplus) $ 112,774
Undistributed net investment income (loss) 1,018
Undistributed net realized gain (loss) from investments 1,712
Unrealized appreciation (depreciation) on investments and foreign currency transactions 6,713
- ------------------------------------------------------------------------------------------------------------------
Total $ 122,217
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplementary Data
For the period from October 11, 1996* to September 30, 1997
Net assets, end of period (in thousands) $ 122,217
Ratios to Average Net Assets2
Net expense ratio to average net assets .89%
Ratio of net income to average net assets 1.63%
Gross expenses to average net assets1 1.10%
Portfolio Turnover3 17%
Average Commission Rate $ .0248
</TABLE>
* Commencement of investment operations.
1. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earning credits. If such earning credits and voluntary fee
reductions had not occurred, the ratios would have been as indicated.
2. Annualized.
3. Based on operations for the period shown and, accordingly, is not
representative of a full year.
See notes to financial statements.
51 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
Notes to
Financial
Statements
- --------------------------------------------------------------------------------
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 ("BBOI"), the investment advisor of the Portfolio. 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
International Equity Fund, formerly known as 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 International Equity 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. Currently there are three investors in the
Portfolio, the Berger/BIAM International Fund, the International Equity Fund and
the Berger/BIAM International CORE Fund.
The investment objective of the Portfolio is long-term capital appreciation. The
Portfolio invests primarily in common stocks of well established companies
located outside the United States.
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 its 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 foreign exchanges, national exchanges and the Nasdaq
Stock market 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 are 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. 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.
Foreign Currency Translation
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
Federal Income Taxes
The Portfolio is considered a partnership for Federal income tax purposes. As
such, each investor in the Portfolio will be taxed 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.
Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Gains and losses
are computed on the identified cost basis for both financial statement and
Federal income tax purposes for all securities. Dividend income and
distributions to investors are recorded on the
52 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
1 Organization and Significant Accounting Policies-Continued
ex-dividend date, except if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of foreign taxes withheld
where recovery of such taxes is not assured. Interest income is recorded on the
accrual basis and includes amortization of discounts and premiums.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
Forward Currency Contracts
The Portfolio may enter into 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 risks such as the
possibility of illiquid markets or imperfect correlation between the value of
the contracts and the underlying securities, or that the counterparty will fail
to perform its obligations. Forward currency contracts and foreign denominated
assets may involve more risks than domestic transactions, including currency
risk, political and economic risk, regulatory risk, and market risk. Risks may
arise from the potential inability of a counterparty to meet the terms of a
contract and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar. The forward foreign currency exchange contracts are
adjusted to the daily exchange rate of the underlying currency and any gains or
losses are recorded for financial statement purposes as unrealized gains or
losses until the contract settlement date.
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 investment 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. Such sub-advisory fee has been voluntarily waived by BIAM from
the Commencement of Investment Operations through September 30, 1997, except for
an amount payable on the Citizens NH converted assets.
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. IFTC's fees for custody,
recordkeeping and pricing, or transfer agency services are subject to reduction
by credits earned by the Portfolio, based on the cash balances of the Portfolio
held by IFTC as custodian or by credits received from directed brokerage
transactions. For the period from Commencement of Investment Operations through
September 30, 1997, the Fund received $66,350 in earnings and brokerage credits
which offset the fees payable to IFTC for services rendered.
Certain officers and trustees of the Trust are officers and directors of Berger,
BBOI or BIAM. Trustees who are not affiliated with Berger, BBOI or BIAM are
compensated for their services according to a fee schedule, allocated among the
Berger Funds (which consists of the One Hundred Fund, the Growth and Income
Fund, the Small Company Growth Fund, the New Generation Fund, the Small Cap
Value Fund and the Balanced Fund) and Berger/BIAM Portfolio, which includes an
annual fee component and a per meeting component. Such fees are allocated
directly to the Portfolio and, therefore, indirectly to each fund. Trustees'
fees and expenses during the period from Commencement of Investment Operations
through September 30, 1997, totaled $38,602.
53 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Berger/BIAM
International
Portfolio
3 Investment Transactions
- --------------------------------------------------------------------------------
Purchases and Sales
Purchases and sales of investment securities (excluding short-term securities)
during the period from Commencement of Investment Operations to September 30,
1997 were as follows:
<TABLE>
<CAPTION>
Purchase of Sales of
Investment Securities Investment Securities
- --------------------------------------------------------------------------------
<S> <C>
$113,541,487 $10,049,786
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the period.
At September 30, 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:
<TABLE>
<CAPTION>
Unrealized Unrealized
Appreciation Depreciation Net
- --------------------------------------------------------------------------------
<S> <C> <C>
$13,463,842 $(6,168,737) $7,295,105
</TABLE>
4 Line of Credit
- --------------------------------------------------------------------------------
In July 1997, the Portfolio, along with the Berger New Generation Fund, Berger
Small Company Growth Fund, Berger Small Cap Value Fund, Berger One Hundred Fund
and Berger Growth and Income Fund (the "Funds"), entered into an ongoing
agreement with certain banks which allows the Funds and the Portfolio,
collectively, to borrow up to $150 million, subject to certain conditions, for
temporary or emergency purposes. Interest on any borrowings, if any, is charged
to the specific fund executing the borrowing at the Federal Funds Rate plus 75
basis points. In addition, the unsecured line of credit requires a quarterly
payment of a commitment Fee based on the average daily unused portion of the
line of credit.
5 Change of Fiscal Year
- --------------------------------------------------------------------------------
Effective April 11, 1997, the trustees of the Trust approved changing the fiscal
year end of the Portfolio from July 31 to September 30.
54 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Financial
Highlights
Berger New Generation Fund
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Year
Ended September 30,
1997 1996*
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 11.82 $ 10.00
- ------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) (.13) .56
Net realized and unrealized gain (losses) on securities 3.64 1.26
Total from investment operations 3.51 1.82
- ------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends (from net investment income) (.61) .00
Dividends (from capital gains) .00 .00
- ------------------------------------------------------------------------------------------------------------------
Total distributions (.61) .00
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.72 $ 11.82
- ------------------------------------------------------------------------------------------------------------------
Total Return 31.53% 18.20%/4/
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $190,164 $116,912
Net expense ratio to average net assets 1.87% 1.88%
Ratio of net income (loss) to average net assets (1.51)% 12.35%/1/
Gross expenses to average net assets/3/ 1.89% 2.09%/1/
Portfolio turnover rate 184% 474%/2/,/4/
Average commission rate $ .0693 $ .0291
</TABLE>
* For the period March 29, 1996 (commencement of investment operations) to
September 30, 1996.
1. Annualized
2. The Fund experienced higher than anticipated turnover during this period
as a result of portfolio transactions undertaken in response to volatile
markets and the short tax year for its initial period of operations.
3. During the period, certain fees were reduced as a result of voluntary
fee reductions and/or earning credits. If such earning credits and
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
4. Based on operations for the period shown and accordingly, is not
representative of a full year.
Berger Small Company Growth Fund
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Year Ended September 30,
1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 4.74 $ 3.61 $ 2.74 $ 2.50
- ------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
Net investment income (loss) (.05) (.03) (.02) .00
Net realized and unrealized gain (losses) on securities .84 1.16 .89 .24
Total from investment operations .79 1.13 .87 .24
Less distributions
Dividends (from net investment income) .00 .00 .00/1/ .00
Dividends (from capital gains) (.20) .00 .00 .00
- ------------------------------------------------------------------------------------------------------------------
Total distributions (.20) .00 .00 .00
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 5.33 $ 4.74 $ 3.61 $ 2.74
- ------------------------------------------------------------------------------------------------------------------
Total Return 17.68% 31.30% 31.90% 9.60%/4/
- ------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $902,685 $871,467 $522,667 $211,852
Net expense ratio to average net assets 1.66% 1.67% 1.87% 2.05%
Ratio of net income (loss) to average net assets (1.09)% (.97)% (.74)% .32%/2/
Gross expenses to average net assets/3/ 1.67 1.68 1.89 2.10%/2/
Portfolio turnover rate 111% 91% 109% 108%/4/
Average commission rate $ .0580 $ .0584 - -
</TABLE>
* For the period December 30, 1993 (commencement of investment operations)
to September 30, 1994.
1. Dividends from net investment income were less than $.01 per share.
2. Annualized
3. During the period, certain fees were reduced as a result of voluntary
fee reductions and/or earning credits. If such earning credits and
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
4. Based on operations for the period shown and accordingly, is not
representative of a full year.
See notes to financial statements.
55 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Financial
Highlights
Berger Small Cap Value Fund - Institutional Shares
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the
Nine Months Ended Year Ended
September 30, December 31
1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 16.48 $ 14.57 $ 12.75 $ 13.99 $ 13.39
Income (loss) from investment operations
Net investment income (loss) 0.07 0.12 0.09 (.01) 0.03
Net realized and unrealized gain (loss) on securities 5.78 3.62 3.23 0.91 2.14
Total from investment operations 5.85 3.74 3.32 0.90 2.17
Less distributions
Dividends (from net investment income) .00 (0.11) (0.09) 0.00 (0.03)
Distributions (from capital gains) .00 (1.72) (1.41) (2.14) (1.54)
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions .00 (1.83) (1.50) (2.14) (1.57)
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 22.33 $ 16.48 $ 14.57 $ 12.75 $ 13.99
- ---------------------------------------------------------------------------------------------------------------------------
Total return 35.50%/3/ 25.58% 26.07% 6.74% 16.25%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 58,450 $ 36,041 $ 31,833 $ 18,270 $ 16,309
Net expense ratio to average net assets 1.33%/1/ 1.48% 1.64% 1.43% 1.31%
Ratio of net income (loss) to average net assets 0.63%/1/ 0.69% 0.64% (.04) % 0.18%
Gross expenses to average net assets/2/ 1.34%/1/ 1.48% 1.64% 1.43% 1.31%
Portfolio turnover rate 81%/3/ 69% 90% 125% 108%
Average commission rate $ 0.0726 $ 0.1015 -- -- --
</TABLE>
1. Annualized.
2. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earning credits. If such earning credits and voluntary fee
reductions had not occurred, the ratios would have been as indicated.
3. Based on operations for the period shown and accordingly, is not
representative of a full year.
Berger Small Cap Value Fund - Investor Shares
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the
Period from February 14, 1997*
to September 30, 1997
<S> <C>
Net asset value, beginning of period $ 17.24
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations
Net investment income (loss) 0.03
Net realized and unrealized gain (loss) on securities 5.01
Total from investment operations 5.04
Less Distributions
Dividends (from net investment income) .00
Distributions (from net realized gain on investments) .00
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions .00
- ---------------------------------------------------------------------------------------------------------------------------
Net Asset Value, end of period $ 22.28
- ---------------------------------------------------------------------------------------------------------------------------
Total Return 29.23%/3/
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 55,211
Net expense ratio to average net assets 1.65%/1/
Ratio of net income to average net assets .60%/1/
Gross expenses to average net assets/2/ 1.66%/1/
Portfolio turnover rate 81%/3/
Average commission rate $ 0.0726
</TABLE>
* Commencement of Investor shares.
1. Annualized.
2. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earning credits. If such earning credits and voluntary fee
reductions had not occurred, the ratios would have been as indicated.
3. Based on operations for the period shown and accordingly, is not
representative of a full year.
See notes to financial statements.
56 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Financial
Highlights
Berger One Hundred Fund
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Year Ended September 30,
1997* 1996* 1995* 1994* 1993*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.64 $ 18.89 $ 15.96 $ 16.54 $ 11.73
Income (loss) from investment operations:
Net investment income (loss) (.09) (.08) (.04) (.12) (.14)
Net realized and unrealized gain (losses) on securities 4.73 1.76 2.97 (.46) 4.95
Total from investment operations 4.64 1.68 2.93 (.58) 4.81
Less distributions:
Dividends (from net investment income) .00 .00 .00 .00 .00
Dividends (from capital gains) (2.77) (.93) .00 .00 .00
Total distributions (2.77) (.93) .00 .00 .00
Net asset value, end of period $ 21.51 $ 19.64 $ 18.89 $ 15.96 $ 16.54
Total Return 26.50% 9.36% 18.36% (3.51)% 41.01%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $1,899,048 $2,012,706 $2,205,678 $2,228,743 $1,407,849
Net expense ratio to average net assets 1.38% 1.40 1.48% 1.70% 1.69%
Ratio of net income (loss) to average net assets (0.40)% (0.43)% (0.28)% (0.74)% (1.00)%
Gross expenses to average net assets/1/ 1.41% 1.42% 1.49% 1.95% 1.88%
Portfolio turnover rate 200% 122% 114% 64% 74%
Average commission rate $ .0608 $ .0624 -- -- --
</TABLE>
* Per share calculations for the period were based on average shares
outstanding.
1. During the period, certain fees were reduced as a result of voluntary
fee reductions and/or earning credits. If such earning credits and
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
Berger/BIAM International Fund
<TABLE>
<CAPTION>
For a Share Outstanding
Throughout the Period from
November 7, 1996* to September 30, 1997
<S> <C>
Net asset value, beginning of period $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) .05
Net realized and unrealized gain (loss) on investments and foreign currency transactions 1.41
Total from investment operations 1.46
Less distributions:
Dividends (from net investment income) 0.00
Distributions (from capital gains) 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.46
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/3/ 14.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 18,673
Net expense ratio to average net assets 1.80%/2/
Ratio of net income to average net assets 0.61%/2/
Gross expenses to average net assets/1/ 1.99%/2/
</TABLE>
* Commencement of investment operations.
1. Reflects the Fund's expenses plus the Fund's pro rata share of the
Portfolio's gross (total) and net expenses. The Portfolio's net expenses reflect
its gross expenses, reduced by fees offset by earnings credits, fee waivers and
expenses reimbursements.
2. Annualized
3. Based on operations for the period shown and, accordingly, is not
representative of a full year.
See notes to financial statements.
57 Annual Report September 30, 1997 The Berger Funds
<PAGE>
Financial
Highlights
Berger Growth and Income Fund
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the
Year Ended September 30,
1997 1996 1995 1994 1993
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.06 $ 12.89 $ 11.48 $ 11.27 $ 8.96
- ------------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) .14 .20 .16 .12 .08
Net realized and unrealized gain (losses) on securities 4.28 1.17 1.43 .21 2.29
Total from investment operations 4.42 1.37 1.59 .33 2.37
Less distributions
Dividends (from net investment income) (.13) (.20) (.18) (.12) (.06)
Distributions (from capital gains) (1.63) .00 .00 .00 .00
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (1.76) (.20) (.18) (.12) (.06)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 16.72 $ 14.06 $ 12.89 $ 11.48 $ 11.27
- ------------------------------------------------------------------------------------------------------------------------------
Total Return 34.56% 10.66% 14.05% 2.91% 26.48%
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 357,023 $ 315,538 $ 354,396 $ 391,570 $ 112,932
Net expense ratio to average net assets 1.50% 1.54% 1.63% 1.81% 2.10%
Ratio of net income to average net assets .87% 1.39% 1.33% 1.19% 1.05%
Gross expenses to average net assets/1/ 1.51% 1.56% 1.64% 2.06% 2.29%
Portfolio turnover rate 173% 112% 85% 23% 62%
Average commission rate $ .0612 $ .0613 -- -- --
</TABLE>
1. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earning credits. If such earning credits and voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See notes to financial statements.
58 Annual Report September 30, 1997 The Berger Funds
<PAGE>
[LOGO OF BERGER(R) APPEARS HERE]
The Berger Funds
210 University Blvd.
Denver, CO 80206
Shareholders with questions should write to The Berger Funds, c/o Berger
Associates, Inc., P.O. Box 5005, Denver, CO. 80217, or call 1-800-333-1001.
<PAGE>
-------------
INTERNATIONAL
-------------
EQUITY
-------------
FUND
-------------
SEPTEMBER 30, 1997
ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INTERNATIONAL EQUITY FUND
PORTFOLIO MANAGER'S LETTER............................................ 2
REPORT OF INDEPENDENT ACCOUNTANTS..................................... 5
STATEMENT OF ASSETS AND LIABILITIES .................................. 6
STATEMENT OF OPERATIONS............................................... 6
STATEMENT OF CHANGES IN NET ASSETS ................................... 7
NOTES TO FINANCIAL STATEMENTS......................................... 8
FINANCIAL HIGHLIGHTS.................................................. 11
BERGER/BIAM INTERNATIONAL PORTFOLIO
REPORT OF INDEPENDENT ACCOUNTANTS..................................... 13
SCHEDULE OF INVESTMENTS............................................... 14
STATEMENT OF ASSETS AND LIABILITIES................................... 17
STATEMENT OF OPERATIONS............................................... 18
STATEMENT OF CHANGES IN NET ASSETS.................................... 19
NOTES TO FINANCIAL STATEMENTS......................................... 20
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
PORTFOLIO MANAGER'S LETTER
EQUITY FUND
- --------------------------------------------------------------------------------
Performance
During the fiscal year ended September 30, 1997, the International Equity
Fund (the "Fund") delivered an annual total return to investors of 16.26%/1,2/.
This compares to 12.49% for the MSCI EAFE Index/3/.
The main contributors to the performance during the year were the Positive
Banking, Healthcare and Growth in Telecommunications themes. There were a number
of good individual stock performances, which helped the portfolio, particularly
in the Healthcare Needs and Positive Banking Environment themes.
Many Positive Banking Environment stocks reported profit increases ranging
from 14% to 52% during the period. This strong performance continued into the
third quarter.
Themes directed at the developing markets in the Far East have disappointed
throughout 1997. Increased Consumer Spending in the Pacific Basin and
Infrastructural Development have had a negative impact on the Fund for reasons
ranging from poor company results to the domino effect of financial crises and
currency weakness which caused poor performance by our stocks in the region.
Year in Review
With the notable exception of the developing markets in the Pacific Basin and
Japan, equity markets world-wide have done very well during the last twelve
months. The ongoing U.S. bull market continues to boost international markets,
and, with American inflation apparently under control and no sign of imminent
interest-rate increases, European bourses have been hitting all-time highs.
Equity markets in general, declined sharply during August, in what can be
described as an almost inevitable correction after the strong gains earlier.
Most markets rebounded in September.
In the U.K., strong corporate earnings, particularly from the
financial-services sector, and the expectation of even more corporate
restructuring by major companies have been underpinning valuations. Towards the
end of the period, U.K. equities rallied, prompted by evidence of increased
warmth towards the European Monetary Union (EMU) which could mean earlier than
expected interest rate cuts.
Other European markets also produced strong returns during the year, helped
by continuing optimism for economic recovery in Continental Europe and a
positive Wall Street backdrop. In contrast, the Pacific Rim markets collapsed
during 1997 as investors fled from the continued currency weakness, soaring
domestic interest rates and policy indecision. Economic activity in Japan
remains weak and the Japanese market continues to disappoint, down 16% for the
twelve months ended September 30, 1997.
Looking Ahead
Despite the negative move in August, international equity markets have been
very strong for the third year in a row. These gains have pushed many company
valuations to very high levels and are occurring against an interest-rate
background which, if anything, is deteriorating.
2
<PAGE>
INTERNATIONAL EQUITY FUND
Many stocks, especially the blue chips have been re-rated beyond their
fundamental value.
After taking profits from some of the more highly priced U.K. and continental
European stocks in the portfolio, we invested the proceeds in a number of
selected Japanese holdings whose valuation levels are looking increasingly
reasonable. This does not imply a shift in our views on Japan from a
macro-economic perspective. We continue to monitor a number of Japanese
companies, which are restructuring, focusing on enhancing shareholder value and
delivering profit growth.
Currency volatility in the Southeast Asian markets has led to some panic
selling by investors. We do not feel that the current price levels of a number
of the companies in which we are invested fully reflect their true value. The
longer-term story for these stocks has not changed, but the impact of the recent
currency devaluations is going to take some time to work its way through the
markets. Consequently, we are constantly reviewing our investments in the area.
Our view on the U.K. and core Europe has changed little since last quarter.
The market perception on U.K. interest rates has undergone a complete turnaround
during September with all expectations of higher rates evaporating on the back
of the EMU speculation. EMU also continues to be the major focus in Europe.
We thank you for your investment in the International Equity Fund.
Bank of Ireland Asset Management (U.S.) Limited
/1/ Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
/2/ Performance figures are historical and, in part, reflect the performance of
a pool of assets advised by BIAM (Bank of Ireland Asset Management (U.S.)
Limited) for periods before the Fund commenced investment operations on
October 11, 1996, adjusted to reflect any increased expenses associated
with operating the Fund. 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.
/3/ The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index. One cannot invest
directly in an index.
For information on security holdings please refer to the Berger/BIAM
International Portfolio.
3
<PAGE>
INTERNATIONAL EQUITY FUND
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
- ---------------------------------
International Equity Fund
Average Annual Total Return
As of September 30, 1997*
- ---------------------------------
Since
Inception
1 Year 5 Year (7/31/89)
- ---------------------------------
<S> <C> <C>
16.3% 13.9% 13.8%
- ---------------------------------
</TABLE>
<TABLE>
<CAPTION>
Date Int'l Equity EAFE COLI
- ------------------------------------------
<S> <C> <C> <C>
7/31/89 10,000 10,000 10,000
9/30/89 10,040 9,989 10,048
9/30/90 10,810 7,253 10,667
9/30/91 12,660 8,871 11,029
9/30/92 15,050 8,269 11,359
9/30/93 17,580 10,482 11,664
9/30/94 19,400 11,542 12,010
9/30/95 22,110 12,247 12,315
9/30/96 24,810 13,341 12,685
9/30/97 28,843 15,008 12,926
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares. Performance figures are historical and, in part,
reflect the performance of a pool of assets advised by BIAM (Bank of Ireland
Asset Management) for periods before the Fund commenced investment operations
on October 11, 1996, adjusted to reflect any increased expenses associated
with operating the Fund. 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.
4
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
REPORT OF INDEPENDENT ACCOUNTANTS
EQUITY FUND
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
International Equity Fund
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
International Equity Fund (one of the funds constituting Berger/BIAM Worldwide
Funds Trust, hereafter referred to as the "Fund") at September 30, 1997, the
results of its operations, the changes in its net assets and the financial
highlights for the period October 11, 1996 (commencement of investment
operations) through September 30, 1997, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
5
<PAGE>
INTERNATIONAL EQUITY FUND
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
September 30, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value (Note 1) $ 6,220,019
Receivable for fund shares sold 123,455
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 6,343,474
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued administrative fee (Note 2) 508
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 508
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 6,342,966
===========================================================================================================================
Capital Shares
Authorized (Par Value $0.01) Unlimited
===========================================================================================================================
Shares Outstanding 544,802
===========================================================================================================================
Net Asset Value, Offering and Redemption Price Per Share $ 11.64
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the period from
October 11, 1996*
to September 30, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment Income and Expenses Allocated from Portfolio
Dividend and interest income (net of $13,603 foreign withholding taxes) $ 114,227
Portfolio expenses (net of earnings credits and waivers of $8,643) (47,586)
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 66,641
- ---------------------------------------------------------------------------------------------------------------------------
Fund Expenses
Administrative fees (Note 2) 13,028
- ---------------------------------------------------------------------------------------------------------------------------
Total Fund Expenses 13,028
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 53,613
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions Allocated from Portfolio
Net realized gain (loss) on investments and foreign currency transactions 121,191
Net change in unrealized appreciation (depreciation) of investments and
foreign currency transactions 632,348
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions Allocated from Portfolio 753,539
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 807,152
===========================================================================================================================
</TABLE>
*Commencement of investment operations.
See notes to financial statements.
6
<PAGE>
INTERNATIONAL EQUITY FUND
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
For the period from
October 11, 1996*
to September 30, 1997
- -------------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 53,613
Net realized gain (loss) on investments and foreign currency
transactions allocated from Portfolio 121,191
Net change in unrealized appreciation (depreciation) on investments and
foreign currency transactions allocated from Portfolio 632,348
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 807,152
- -------------------------------------------------------------------------------------------------------
From Dividends and Distributions to Shareholders
Net investment income 0
Net realized gain 0
- -------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders 0
- -------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 7,084,903
Payments for shares redeemed (1,549,089)
- -------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 5,535,814
- -------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 6,342,966
Net Assets
Beginning of period 0
- -------------------------------------------------------------------------------------------------------
End of period $ 6,342,966
=======================================================================================================
Components of Net Assets
Capital (par value and paid in surplus) $ 5,535,814
Undistributed net investment income (loss) 53,613
Undistributed net realized gain (loss) 121,191
Unrealized appreciation (depreciation) of investments and foreign
currency transactions 632,348
- -------------------------------------------------------------------------------------------------------
Total $ 6,342,966
=======================================================================================================
Transactions in Fund Shares
Shares sold 690,065
Shares repurchased (145,263)
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 544,802
Shares outstanding, beginning of period 0
- -------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 544,802
=======================================================================================================
</TABLE>
*Commencement of investment operations.
See notes to financial statements.
7
<PAGE>
INTERNATIONAL EQUITY FUND
Notes to Financial Statements
September 30, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization
The International Equity Fund (the "Fund"), formerly known as the Berger/BIAM
International Institutional Fund prior to June 20, 1997, is a series of the
Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware business trust,
organized on May 31, 1996. The Trust is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Trust
is authorized to issue an unlimited number of shares of beneficial interest in
series or portfolios. Currently, the series comprising the Fund, Berger/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 (5.2% at September 30, 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 be derived from the
investment performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of 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 Portfolio 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 its financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Since the Fund invests 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 Statements which
accompany these Financial Statements for the Fund.
8
<PAGE>
INTERNATIONAL EQUITY FUND
Calculation of Net Asset Value
The per share calculation of net asset value is determined by dividing the
total value of assets, less liabilities, by the total number of shares
outstanding.
Income and Expenses
As an investor in the Portfolio, the Fund is allocated its pro rata share of
the aggregate investment income, annual operating expenses (including the
investment advisory fee, custodian fees, independent accountants' fees,
recordkeeping and pricing agent fees) and net realized and unrealized gains and
losses of the Portfolio. Income and expenses are allocated on the day the income
is earned or the expense is incurred in proportion to the prior day's relative
net assets of the Fund. Expenses directly attributable to the Fund are charged
to the Fund.
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.
The Fund distributes net realized capital gains, if any, to its shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing 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
September 30, 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 is
obligated to pay 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%
9
<PAGE>
INTERNATIONAL EQUITY FUND
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. Effective June 20,
1997, by approval of the trustees, the administrative fee payable by the Fund
was reduced to the lesser of 0.10% of the Fund's 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. 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.
Such fee has been voluntarily waived by Berger for the period ended September
30, 1997.
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
Berger, the Advisor or BIAM. Trustees who are not affiliated with Berger, the
Advisor or BIAM are compensated for their services according to a fee schedule,
allocated among the Funds and the Portfolio, which includes an annual fee
component and a per meeting component. Such fees are allocated directly to the
Portfolio and, therefore, indirectly to the Fund.
3. CHANGE OF FISCAL YEAR AND NAME
Effective April 11, 1997, the trustees of the Trust approved changing the
fiscal year end of the Fund from July 31 to September 30. Effective June 20,
1997, the trustees of the Trust changed the name of the Fund from Berger/BIAM
International Institutional Fund to International Equity Fund.
10
<PAGE>
INTERNATIONAL EQUITY FUND
Financial Highlights
For a Share Outstanding Throughout the Period From October 11, 1996* to
September 30, 1997
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
- -----------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income 0.10
Net realized and unrealized gain (loss) on investments and
foreign currency transactions 1.54
- -----------------------------------------------------------------------------------------------------------------
Total from investment operations 1.64
- -----------------------------------------------------------------------------------------------------------------
Less Distributions
Dividends from net investment income $ 0.00
Distributions from net realized gains 0.00
- -----------------------------------------------------------------------------------------------------------------
Total distributions 0.00
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.64
=================================================================================================================
Total return/1/ 16.40%
=================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 6,343
Gross expense ratio to average net assets/2,3/ 1.34%
Net expense ratio to average net assets/2,3/ 1.17%
Ratio of net income to average net assets/2/ 1.03%
</TABLE>
* Commencement of investment operations.
/1/ Based on operations for the period shown and, accordingly, is not
representative of a full year.
/2/ Annualized.
/3/ Reflects the Fund's expenses plus the Fund's pro rata share of the
Portfolio's gross (total) and net expenses. The Portfolio's net expenses
reflect its gross expenses, reduced by fees offset by earnings credits and
fee waivers.
See notes to financial statements.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
BERGER/BIAM
INTERNATIONAL PORTFOLIO
ANNUAL REPORT
For the period from October 11, 1996
(commencement of investment operations)
to September 30, 1997
The following pages should be read in conjunction
with the International Equity Fund
Annual Report.
<PAGE>
- -------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- -------------------------------------------------------------------------------
To the Board of Trustees and Investors of
Berger/BIAM International Portfolio
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of operations
and of changes in net assets and the supplemental data present fairly, in all
material respects, the financial position of Berger/BIAM International Portfolio
(the sole portfolio comprising Berger/BIAM Worldwide Portfolios Trust, hereafter
referred to as the "Portfolio") at September 30, 1997, and the results of its
operations, the changes in its net assets and the supplemental data for the
period October 11, 1996 (commencement of investment operations) through
September 30, 1997, in conformity with generally accepted accounting principles.
These financial statements and supplemental data (hereafter referred to as
"financial statements") are the responsibility of the Portfolio's management;
our responsibility is to express an opinion on these financial statements based
on our audit. We conducted our audit of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audit, which included confirmation of securities at
September 30, 1997 by correspondence with the custodian and brokers, and the
application of alternative auditing procedures where securities purchased had
not been received, provides a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
13
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS
September 30, 1997
<TABLE>
<CAPTION>
COUNTRY/ MARKET
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<S> <C> <C> <C>
COMMON STOCK - 91.1%
Australia - 5.6%
106,970 Broken Hill Proprietary Mining, Metals & Minerals 1,247,314
194,800 National Australia Bank Commercial Banks & Other Banks 2,997,521
388,780 News Corporation Media 1,995,175
135,150 Western Mining Mining, Metals & Minerals 635,066
------------
6,875,076
------------
France - 2.2%
19,510 Michelin Auto Components 1,110,733
13,640 Total Co. Francaise Petrole `B' Oil 1,564,611
------------
2,675,344
------------
Germany -6.5%
44,795 Hoechst Chemicals 1,992,583
5,381 Mannesmann Machinery & Engineering Services 2,570,668
17,860 Siemens Electrical Equipment 1,209,413
37,580 Veba Diversified Industrials 2,201,495
------------
7,974,159
------------
Great Britain - 30.6%
110,750 Barclays Bank Commercial Banks & Other Banks 2,983,278
325,290 BAT Industries Beverage Industry/
Tobacco Manufacturing 2,851,466
323,500 BTR Diversified Industrials 1,316,050
156,200 Cable & Wireless Utilities 1,331,413
137,700 Cadbury Schweppes Beverage Industry/
Tobacco Manufacturing 1,327,107
63,820 EMI Group - Class B Entertainment/Leisure/Toys 627,439
228,350 General Electric Co. Electronics & Instruments 1,437,684
99,350 Glaxo Wellcome Health & Personal Care 2,236,578
140,100 Granada Group Entertainment/Leisure/Toys 1,981,253
112,700 Grand Metropolitan Beverage Industry/
Tobacco Manufacturing 1,073,429
89,800 Kingfisher Retail Trade 1,225,565
195,500 Ladbroke Group Entertainment/Leisure/Toys 864,759
213,100 Lloyds TSB Group Commercial Banks & Other Banks 2,863,950
95,800 Premier Farnell Wholesale Trade 821,217
184,630 Prudential Insurance Life & Agents/Brokers 2,058,087
202,450 Safeway Retail Trade 1,315,471
126,400 Scottish Power Utilities 977,418
316,550 Shell Transport & Trading Company Oil 2,317,487
109,891 Siebe Machinery & Engineering Services 2,212,210
154,100 TI Group Machinery & Engineering Services 1,654,329
250,200 Vodafone Group Utilities 1,340,982
77,700 Zeneca Group Health & Personal Care 2,540,059
------------
37,357,231
------------
</TABLE>
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/ MARKET
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<S> <C> <C> <C>
COMMON STOCK - continued
Hong Kong - 1.5%
56,400 HSBC Holdings Commercial Banks & Other Banks $ 1,887,775
Indonesia - 1.6%
256,000 Gudang Garam Beverage Industry/
Tobacco Manufacturing 743,731
304,000 HM Sampoerna Beverage Industry/
Tobacco Manufacturing 627,523
509,000 Telekomunikasi Utilities 564,258
--------------
1,935,512
--------------
Ireland - 1.0%
47,230 Allied Irish Banks Commercial Banks & Other Banks 416,756
257,100 Smurfit (Jefferson) Group Forestry & Paper Products 859,616
--------------
1,276,372
--------------
Italy - 1.6%
42,206 ENI SPA ITL Oil 266,399
252,380 Telecom Italia Utilities 1,685,318
--------------
1,951,717
--------------
Japan - 13.8%
115,000 Canon Computer/Commercial/
Office Equipment 3,372,658
55,000 Dai Nippon Printing Media 1,178,914
73,000 Honda Motor Automobiles 2,553,317
87,000 Kao Corporation Food & Grocery 1,264,903
27,000 Murata Manufacturing Electronics & Instruments 1,170,938
11,000 Rohm Company Electronics & Instruments 1,297,719
73,000 Shiseido Health & Personal Care 1,176,588
26,000 Sony Corporation Household Durables & Appliances 2,462,510
78,000 Takeda Chemical Health & Personal Care 2,345,865
--------------
16,823,412
--------------
Malaysia - 1.2%
103,000 Hume Industries Construction & Building Materials 222,085
203,000 RHB Capital Commercial Banks & Other Banks 240,111
304,400 Sime Darby Diversified Holding Companies 632,897
118,000 United Engineers Construction & Building Materials 378,007
--------------
1,473,100
--------------
Mexico - 0.5%
203,670 Grupo Financiero Banamex - Class B Commercial Banks & Other Banks 633,681
--------------
Netherlands - 7.6%
75,130 ABN Amro Holdings Commercial Banks & Other Banks 1,525,156
86,600 Elsevier Media 1,260,699
57,302 ING Groep Insurance - Multi/Property/Casualty 2,638,224
35,055 Koninklijke PTT Nederland Utilities 1,380,869
35,350 Nutricia Ver Bedrijven Food Manufacturing 1,064,845
24,380 Royal Dutch Petroleum Oil 1,368,090
--------------
9,237,883
--------------
</TABLE>
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PRINCIPAL MARKET
AMOUNT COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<S> <C> <C> <C>
COMMON STOCK - continued
Philippines - 0.3%
208,370 San Miguel Corp. - Class B Beverage Industry/
Tobacco Manufacturing $ 335,204
-------------
Singapore - 4.4%
190,000 City Development Real Estate 1,230,618
192,412 Development Bank of Singapore Commercial Banks & Other Banks 1,963,773
117,600 Fraser and Neave Beverage Industry/
Tobacco Manufacturing 673,209
104,100 Singapore Press Holdings Media 1,532,385
-------------
5,399,985
-------------
Spain - 1.2%
44,330 Banco De Santander Commercial Banks & Other Banks 1,456,519
-------------
Switzerland - 11.0%
1,511 Alusuisse Lonza Holdings Fabricated Metal Products 1,485,204
1,500 Nestle Food & Grocery Products 2,096,223
3,217 Novartis Health & Personal Care 4,949,612
207 Roche Holdings Health & Personal Care 1,841,904
2,053 Schw Ruckverischer Insurance - Multi/Property/Casualty 3,088,528
-------------
13,461,471
-------------
Thailand - 0.5%
115,100 Bangkok Bank Commercial Banks & Other Banks 594,791
-------------
TOTAL COMMON STOCK (Cost $104,002,414) 111,349,232
-------------
<CAPTION>
PREFERRED STOCK - 0.1%
<S> <C> <C> <C>
Australia - 0.1%
19,750 News Corporation Media 87,505
-------------
TOTAL PREFERRED STOCK (Cost $85,803) 87,505
-------------
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS - 4.0%
<S> <C> <C>
$ 5,000,000 U.S. Treasury Bills due 12/11/97 (Amortized cost $4,951,188) 4,951,188
-------------
REPURCHASE AGREEMENT - 4.0%
4,879,000 Repurchase agreement with State Street Bank, 4.25%, dated September
30, 1997, to be repurchased at $4,879,576 on October 1, 1997,
collateralized by U.S. Treasury Bond, 6.25% - August 31, 1998, with a
value of $4,977,513 (Cost $4,879,000) 4,879,000
-------------
Total Investments (Cost $113,918,405*) - 99.2% 121,266,925
Other Assets, Less Liabilities - 0.8% 950,075
-------------
Net Assets - 100% $ 122,217,000
==============
</TABLE>
*Cost for federal income tax purposes is $113,971,820.
See notes to financial statements.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
<S> <C>
Statement of Assets and Liabilities
(Amounts in thousands)
September 30, 1997
- -------------------------------------------------------------------------------------
Assets
Investments at cost $ 113,918
- -------------------------------------------------------------------------------------
Investments at value $ 121,267
Foreign currency at value (cost $142) 146
Receivables
Contributions 1,153
Investment securities sold 157
Dividends and interest 484
- -------------------------------------------------------------------------------------
Total Assets 123,207
- -------------------------------------------------------------------------------------
Liabilities
Payables
Withdrawals 561
Investment securities purchased 215
Accrued administration fees 63
Accrued investment advisory fees 83
Accrued legal fees 1
Net unrealized depreciation on open forward currency contracts 67
- -------------------------------------------------------------------------------------
Total Liabilities 990
- -------------------------------------------------------------------------------------
Net Assets $ 122,217
=====================================================================================
Represented by:
Paid-in capital for beneficial interests $ 122,217
</TABLE>
See notes to financial statements.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations
(Amounts in thousands)
<TABLE>
<CAPTION>
For the period from
October 11, 1996*
to September 30, 1997
- -------------------------------------------------------------------------------------------------
<S> <C>
Investment Income
Income
Dividend income (net of $194 foreign withholding taxes) $ 1,381
Interest 194
- -------------------------------------------------------------------------------------------------
Total Income 1,575
- -------------------------------------------------------------------------------------------------
Expenses
Investment advisory fees 560
Accounting services 10
Trustees' fees & expenses 39
Custodian fees 56
Legal fees 7
Postage, printing & reports 6
Insurance & bonds 4
Audit fees 2
- -------------------------------------------------------------------------------------------------
Total Expenses 684
Less earnings credits (66)
Less fees waived by advisor (61)
- -------------------------------------------------------------------------------------------------
Expenses - Net 557
- -------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,018
- -------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions
Net realized gain (loss) on investments and foreign currency transactions 1,712
Net change in unrealized appreciation (depreciation)
on investments and foreign currency transactions 6,713
- -------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions 8,425
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations $ 9,443
=================================================================================================
</TABLE>
*Commencement of investment operations.
See notes to financial statements.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
(Amounts in thousands)
For the period from
October 11, 1996*
to September 30, 1997
- -------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 1,018
Net realized gain (loss) on investments and foreign currency transactions 1,712
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions 6,713
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 9,443
- -------------------------------------------------------------------------------------------------
From Transactions in Investors' Beneficial Interest
Contributions 127,144
Withdrawals (14,370)
- -------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Investors' Transactions 112,774
- -------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 122,217
Net Assets
Beginning of period 0
- -------------------------------------------------------------------------------------------------
End of period $ 122,217
=================================================================================================
Components of Net Assets
Capital (par value and paid in surplus) $ 112,774
Undistributed net investment income (loss) 1,018
Undistributed net realized gain (loss) from investments 1,712
Unrealized appreciation (depreciation) on investments and
foreign currency transactions 6,713
- -------------------------------------------------------------------------------------------------
Total $ 122,217
=================================================================================================
Ratios/Supplemental Data
For the period from October 11, 1996* to September 30, 1997
Net Assets, End of Period (in thousands) $ 122,217
Gross Expenses to Average Net Assets/1//2/ 1.10%
Net Expense Ratio to Average Net Assets/2/ .89%
Ratio of Net Income to Average Net Assets/2/ 1.63%
Portfolio Turnover/3/ 17%
Average Commission Rate $ .0248
</TABLE>
*Commencement of investment operations.
1. During the period, certain fees were reduced as a result of voluntary fee
reductions and/or earnings credits. If such earnings credits and voluntary
fee reductions had not occurred, the ratios would have been as indicated.
2. Annualized.
3. Based on operations for the period shown and, accordingly, is not
representative of a full year.
See notes to financial statements.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements
September 30, 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 ("BBOI"), the investment advisor of the Portfolio. 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
International Equity Fund, formerly known as 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 International Equity 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. Currently there are three investors in the
Portfolio, the Berger/BIAM International Fund, the International Equity Fund and
the Berger/BIAM International CORE Fund.
The investment objective of the Portfolio is long-term capital appreciation.
The Portfolio invests primarily in common stocks of well established companies
located outside the United States.
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 its 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 foreign exchanges, national exchanges and the Nasdaq
Stock market 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
20
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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 are 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. 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.
Foreign Currency Translation
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
Federal Income Taxes
The Portfolio is considered a partnership for Federal income tax purposes. As
such, each investor in the Portfolio will be taxed 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.
Investment Transactions and Investment Income
Investment transactions are accounted for on the trade date. Gains and losses
are computed on the identified cost basis for both financial statement and
Federal income tax purposes for all securities. Dividend income and
distributions to investors are recorded on the ex-dividend date, except if the
ex-dividend date has passed, certain dividends from foreign securities are
recorded as soon as the Portfolio is informed of the ex-dividend date. Dividend
income is recorded net of foreign taxes withheld where recovery of such taxes is
not assured. Interest income is recorded on the accru-
21
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
al basis and includes amortization of discounts and premiums.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
Forward Currency Contracts
The Portfolio may enter into 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
risks such as the possibility of illiquid markets or imperfect correlation
between the value of the contracts and the underlying securities, or that the
counterparty will fail to perform its obligations. Forward currency contracts
and foreign denominated assets may involve more risks than domestic
transactions, including currency risk, political and economic risk, regulatory
risk, and market risk. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements in
the value of foreign currencies relative to the U.S. dollar. The forward foreign
currency exchange contracts are adjusted to the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized gains or losses until the contract settlement date.
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 investment 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. Such sub-advisory fee has been voluntarily waived by BIAM from
the Commencement of Investment Operations through September 30, 1997, except for
an amount payable on the Citizens NH converted assets.
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
22
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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. IFTC's fees for custody, recordkeeping and
pricing and transfer agency services are subject to reduction by credits earned
by the Portfolio, based on the cash balances of the Portfolio held by IFTC as
custodian or by credits received from directed brokerage transactions. For the
period from Commencement of Investment Operations through September 30, 1997,
the Portfolio received $66,350 in earnings credits which offset the fees payable
to IFTC for services rendered.
Certain officers and trustees of the Trust are officers and directors of
Berger, BBOI or BIAM. Trustees who are not affiliated with Berger, BBOI or BIAM
are compensated for their services according to a fee schedule, allocated among
the Berger Funds (which consists of the One Hundred Fund, the Growth and Income
Fund, the Small Company Growth Fund, the New Generation Fund, the Small Cap
Value Fund and the Balanced Fund) and the Portfolio, which includes an annual
fee component and a per meeting component. Such fees are allocated directly to
the Portfolio and, therefore, indirectly to each fund. Trustees' fees and
expenses during the period from Commencement of Investment Operations through
September 30, 1997, totaled $38,602.
3. INVESTMENT TRANSACTIONS
Purchases and Sales
Purchases and sales of investment securities (excluding short-term
securities) during the period from Commencement of Investment Operations to
September 30, 1997 were as follows:
Purchases of Sales of
Investment Securities Investment Securities
--------------------- ---------------------
$113,541,487 $10,049,786
There were no purchases or sales of long-term U.S. Government securities
during the period.
At September 30, 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:
Unrealized Unrealized
Appreciation Depreciation Net
------------ ------------ ---
$13,463,842 $(6,168,737) $7,295,105
23
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
4. LINE OF CREDIT
In July 1997, the Portfolio, along with the Berger New Generation Fund,
Berger Small Company Growth Fund, Berger Small Cap Value Fund, Berger One
Hundred Fund and Berger Growth and Income Fund (the "Funds"), entered into an
ongoing agreement with certain banks which allows the Funds and the Portfolio,
collectively, to borrow up to $150 million, subject to certain conditions, for
temporary or emergency purposes. Interest on any borrowings, if any, is charged
to the specific fund executing the borrowing at the Federal Funds Rate plus 75
basis points. In addition, the unsecured line of credit requires a quarterly
payment of a commitment fee based on the average daily unused portion of the
line of credit.
5. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust approved changing the
fiscal year end of the Portfolio from July 31 to September 30.
24
<PAGE>
---------------
BERGER/BIAM
---------------
INTERNATIONAL
---------------
CORE
---------------
FUND
---------------
[GRAPHIC APPEARS HERE]
Together we can move mountains...
the world over.
SEPTEMBER 30, 1997
ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
[GRAPHIC APPEARS HERE]
<TABLE>
<S> <C>
BERGER/BIAM INTERNATIONAL CORE FUND
PORTFOLIO MANAGER'S LETTER.............................................. 2
REPORT OF INDEPENDENT ACCOUNTANTS....................................... 5
STATEMENT OF ASSETS AND LIABILITIES..................................... 6
STATEMENT OF OPERATIONS................................................. 6
STATEMENT OF CHANGES IN NET ASSETS...................................... 7
NOTES TO FINANCIAL STATEMENTS........................................... 8
FINANCIAL HIGHLIGHTS.................................................... 11
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S LETTER
- --------------------------------------------------------------------------------
Performance
During the fiscal year ended September 30, 1997, the Berger/BIAM
International CORE Fund (the "Fund") delivered an annual total return to
investors of 16.58%/1,2/. This compares to 12.49% for the MSCI EAFE Index/3/.
The main contributors to the performance during the year were the Positive
Banking, Healthcare and Growth in Telecommunications themes. There were a number
of good individual stock performances, which helped the portfolio, particularly
in the Healthcare Needs and Positive Banking Environment themes.
Many Positive Banking Environment stocks reported profit increases ranging
from 14% to 52% during the period. This strong performance continued into the
third quarter.
Themes directed at the developing markets in the Far East have disappointed
throughout 1997. Increased Consumer Spending in the Pacific Basin and
Infrastructural Development have had a negative impact on the Fund for reasons
ranging from poor company results to the domino effect of financial crises and
currency weakness which caused poor performance by our stocks in the region.
Year in Review
With the notable exception of the developing markets in the Pacific Basin
and Japan, equity markets world-wide have done very well during the last twelve
months. The ongoing U.S. bull market continues to boost international markets,
and, with American inflation apparently under control and no sign of imminent
interest-rate increases, European bourses have been hitting all-time highs.
Equity markets in general, declined sharply during August, in what can be
described as an almost inevitable correction after the strong gains earlier.
Most markets rebounded in September.
In the U.K., strong corporate earnings, particularly from the financial-
services sector, and the expectation of even more corporate restructuring by
major companies have been underpinning valuations. Towards the end of the
period, U.K. equities rallied, prompted by evidence of increased warmth towards
the European Monetary Union (EMU) which could mean earlier than expected
interest rate cuts.
Other European markets also produced strong returns during the year, helped
by continuing optimism for economic recovery in Continental Europe and a
positive Wall Street backdrop. In contrast, the Pacific Rim markets collapsed
during 1997 as investors fled from the continued currency weakness, soaring
domestic interest rates and policy indecision. Economic activity in Japan
remains weak and the Japanese market continues to disappoint, down 16% for the
twelve months ended September 30, 1997.
Looking Ahead
Despite the negative move in August, international equity markets have been
very strong for the third year in a row. These gains have pushed many company
valuations to very high levels and are occurring against an interest-rate
background which, if anything, is deteriorating.
2
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Many stocks, especially the blue chips have been re-rated beyond their
fundamental value.
After taking profits from some of the more highly priced U.K. and
continental European stocks in the portfolio, we invested the proceeds in a
number of selected Japanese holdings whose valuation levels are looking
increasingly reasonable. This does not imply a shift in our views on Japan from
a macro-economic perspective. We continue to monitor a number of Japanese
companies, which are restructuring, focusing on enhancing shareholder value and
delivering profit growth.
Currency volatility in the Southeast Asian markets has led to some panic
selling by investors. We do not feel that the current price levels of a number
of the companies in which we are invested fully reflect their true value. The
longer-term story for these stocks has not changed, but the impact of the recent
currency devaluations is going to take some time to work its way through the
markets. Consequently, we are constantly reviewing our investments in the area.
Our view on the U.K. and core Europe has changed little since last quarter.
The market perception on U.K. interest rates has undergone a complete turnaround
during September with all expectations of higher rates evaporating on the back
of the EMU speculation. EMU also continues to be the major focus in Europe.
We thank you for your investment in the Berger/BIAM International CORE
Fund.
Bank of Ireland Asset Management (U.S.) Limited
/1/ Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
/2/ Performance figures are historical and, in part, reflect the performance of
a pool of assets advised by BIAM (Bank of Ireland Asset Management (U.S.)
Limited) for periods before the Fund commenced investment operations on
October 11, 1996, adjusted to reflect any increased expenses associated
with operating the Fund. 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.
/3/ The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index. One cannot invest
directly in an index.
For information on security holdings please refer to the Berger/BIAM
International Portfolio.
3
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
[GRAPH APPEARS HERE]
Berger/BIAM International CORE Fund
Average Annual Total Return
As of September 30, 1997*
<TABLE>
<CAPTION>
1 Year 5 Year Since Inception (7/31/89)
---------------------------------------------
<S> <C> <C>
16.6 14.0 14.0
</TABLE>
<TABLE>
<CAPTION>
Berger/BIAM
International Cost of
Date CORE Fund EAFE Index Living Index
- ---- ------------- ---------- ------------
<S> <C> <C> <C>
07/31/89 10,000 10,000 10,000
09/30/89 10,050 9,989 10,048
09/30/90 10,820 7,253 10,667
09/30/91 12,670 8,871 11,029
09/30/92 15,090 8,269 11,359
09/30/93 17,670 10,482 11,664
09/30/94 19,500 11,542 12,010
09/30/95 22,230 12,247 12,315
09/30/96 24,940 13,341 12,685
09/30/97 29,075 15,008 12,926
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares. Performance figures are historical and, in part,
reflect the performance of a pool of assets advised by BIAM (Bank of Ireland
Asset Management) for periods before the Fund commenced investment operations
on October 11, 1996, adjusted to reflect any increased expenses associated
with operating the Fund. 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.
4
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
Berger/BIAM International CORE Fund
In our opinion, the accompanying statement of assets and liabilities and
the related statements of operations and of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of Berger/BIAM International CORE Fund (one of the funds constituting
Berger/BIAM Worldwide Funds Trust, hereafter referred to as the "Fund") at
September 30, 1997, the results of its operations, the changes in its net assets
and the financial highlights for the period October 11, 1996 (commencement of
investment operations) through September 30, 1997, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for the opinion expressed above.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Denver, Colorado
November 11, 1997
5
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
(Amounts in thousands except net asset value per share)
September 30, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value (Note 1) $ 96,616
Receivable for fund shares sold 1,000
- ---------------------------------------------------------------------------------------------------------------------------
Total Assets 97,616
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
Accrued administrative fee (Note 2) 7
Shares of beneficial interest redeemed 432
- ---------------------------------------------------------------------------------------------------------------------------
Total Liabilities 439
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares Outstanding $ 97,177
===========================================================================================================================
Capital Shares
Authorized (par value $0.01) Unlimited
===========================================================================================================================
Shares outstanding 8,326
===========================================================================================================================
Net Asset Value, Offering and Redemption Price per Share $ 11.67
===========================================================================================================================
Statement of Operations
(Amounts in thousands)
For the period from
October 11, 1996*
to September 30, 1997
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income and Expenses Allocated from Portfolio
Dividend and interest income (net of $140 foreign withholding taxes) $ 1,124
Portfolio expenses (net of earnings credits and waivers of $93) (382)
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income allocated from Portfolio 742
- ---------------------------------------------------------------------------------------------------------------------------
Fund Expenses
Administrative fees 43
- ---------------------------------------------------------------------------------------------------------------------------
Total Fund Expenses 43
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 699
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign
Currency Transactions Allocated from Portfolio
Net realized gain (loss) on investments and foreign currency transactions 1,211
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions 4,592
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign
Currency Transactions Allocated from Portfolio 5,803
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 6,502
===========================================================================================================================
</TABLE>
*Commencement of investment operations.
See notes to financial statements.
6
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
(Amounts in thousands)
For the period from
October 11, 1996*
to September 30, 1997
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
From Operations
Net investment income (loss) $ 699
Net realized gain (loss) on investments and foreign currency
transactions allocated from Portfolio 1,211
Net change in unrealized appreciation (depreciation) on investments and
foreign currency transactions allocated from Portfolio 4,592
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 6,502
- ---------------------------------------------------------------------------------------------------------------------------
From Dividends and Distributions to Shareholders
Net investment income 0
Net realized gain 0
- ---------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders 0
- ---------------------------------------------------------------------------------------------------------------------------
From Fund Share Transactions
Proceeds from shares sold 94,285
Payments for shares redeemed (3,610)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 90,675
- ---------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets 97,177
Net Assets
Beginning of period 0
- ---------------------------------------------------------------------------------------------------------------------------
End of period $ 97,177
===========================================================================================================================
Components of Net Assets
Capital (par value and paid in surplus) $ 90,675
Undistributed net investment income (loss) 699
Undistributed net realized gain (loss) 1,211
Unrealized appreciation (depreciation) of investments and foreign
currency transactions 4,592
- ---------------------------------------------------------------------------------------------------------------------------
Total $ 97,177
===========================================================================================================================
Transactions in Fund Shares
Shares sold 8,648
Shares repurchased (322)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 8,326
Shares outstanding, beginning of period 0
- ---------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 8,326
===========================================================================================================================
</TABLE>
*Commencement of investment operations.
See notes to financial statements.
7
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Notes to Financial Statements
September 30, 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 Trust is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Trust
is authorized to issue an unlimited number of shares of beneficial interest in
series or portfolios. Currently, the series comprising the Fund, Berger/BIAM
International Fund and International Equity 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 (79.5% at September 30, 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 be derived from the
investment performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of 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 Portfolio 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 its financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Since the Fund invests 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 Statements which
accompany these Financial Statements for the Fund.
8
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
Calculation of Net Asset Value
The per share calculation of net asset value is determined by dividing the
total value of assets, less liabilities, by the total number of shares
outstanding.
Income and Expenses
As an investor in the Portfolio, the Fund is allocated its pro rata share of
the aggregate investment income, annual operating expenses, (including the
investment advisory fee, custodian fees, independent accountants' fees,
recordkeeping and pricing agent fees) and net realized and unrealized gains and
losses of the Portfolio. Income and expenses are allocated on the day the income
is earned or the expense is incurred in proportion to the prior day's relative
net assets of the Fund. Expenses directly attributable to the Fund are charged
to the Fund.
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.
The Fund distributes net realized capital gains, if any, to its shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing 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
September 30, 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
9
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
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. Such fee has been voluntarily waived by Berger for the
period ended September 30, 1997.
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
Berger, the Advisor or BIAM. 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 Funds and Portfolio, which includes an
annual fee component and a per meeting component. Such fees are allocated
directly to the Portfolio and, therefore, indirectly to the Fund.
3. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust approved changing the
fiscal year end of the Fund from July 31 to September 30.
10
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
<TABLE>
<CAPTION>
Financial Highlights
For a Share Outstanding Throughout the Period From October 11, 1996* to September 30, 1997
<S> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
- ---------------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income 0.08
Net realized and unrealized gain (loss) on investments and foreign currency
transactions allocated from Portfolio 1.59
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.67
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions
Dividends from net investment income 0.00
Distributions from net realized gains 0.00
- ---------------------------------------------------------------------------------------------------------------------------
Total distributions 0.00
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.67
===========================================================================================================================
Total return/1/ 16.70%
===========================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 97,177
Gross expense ratio to average net assets/2,3/ 1.20%
Net expense ratio to average net assets/2,3/ 0.98%
Ratio of net income to average net assets/2/ 1.62%
</TABLE>
*Commencement of investment operations.
1 Based on operations for the period shown and, accordingly, is not
representative of a full year.
2 Annualized.
3 Reflects the Fund's expenses plus the Fund's pro rata share of the Portfolio's
gross (total) and net expenses. The Portfolio's net expenses reflect its gross
expenses, reduced by fees offset by earnings credits and fee waivers.
See notes to financial statements.
11
<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
Assistant Treasurer 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 LOGO APPEARS HERE]
(C) 1997 Berger Associates, Inc.
