<PAGE>
BERGER/BIAM INTERNATIONAL FUND
SEMI-ANNUAL REPORT
JULY 31, 1997
TABLE OF CONTENTS
Portfolio Manager's Letter
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Financial Highlights
1
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use of
fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of economic
themes. These broad-based trends are derived from a wide spectrum of global
events, which can be social, economic and/or technological, in nature. They are
an important part of the process that ultimately allows us to identify the ideas
that we believe will generate above average growth over the long term.
FUND REVIEW:
During the early part of the year no individual theme made a significant
contribution--either positive or negative--to overall performance although there
were a number of good individual stock performances which helped the portfolio,
particularly in the Healthcare Needs and Positive Banking Environment themes.
In Healthcare, Roche, Zeneca, Glaxo-Wellcome and Novartis did well during the
first part of the year and continued to improve through the end of July.
In April, Novartis purchased Merck's agribusiness division and in May it
released its first-quarter sales figures which revealed an increase of 8%,
considerably ahead of expectations. This was seen as evidence that the benefits
of the merger were having a quicker-than-expected impact on the company's
performance. The market received this news very well and Novartis' share price
rose by 29% over the second quarter. Both Zeneca and Glaxo-Wellcome continued
to prosper, also based on optimism for prospective sales growth from new drugs.
Positive Banking Environment stocks Lloyds TSB, ABN-Amro and National Australia
Bank reported profit increases ranging from 14% to 52% during the period. This
strong performance continued into the second three months of 1997, with Banco de
Santander posting good first quarter results and HSBC Holdings gaining 29% over
the period, assisted by the strong performance of the Hong Kong market in
general.
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. This has
taken place for a variety of reasons ranging from poor company results--as was
the case with HM Sampoerna which announced poor sales forecasts--to the domino
effect of financial crises which caused poor performance by Bangkok Bank.
The currency hedging program again added value over the period. At the end of
July hedges were in place against the British Pound, the Deutschemark, the Swiss
Franc and the Dutch Guilder. Approximately 17% of the portfolio is currently
hedged.
2
<PAGE>
ECONOMIC & MARKET REVIEW
With the notable exception of the developing markets in the Pacific Basin,
equity markets worldwide have thus far done well during 1997. 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-highs over the last six
months.
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. The initial actions of the
country's new Labour government have been a source of encouragement to the
market, although the administration's fiscal and monetary policies will be
analyzed very closely.
The weakness of the Deutschemark stimulated a recovery in Germany's
export-oriented manufacturing sector in the early part of the year and during
the second quarter, foreign orders have increased at a steady pace. Their
domestic economy remains in the doldrums, however, and unemployment remains at,
or close to record levels.
Far Eastern markets performed poorly during the first three months due to fears
about the upward direction of U.S. interest rates and continued net outflows by
foreign investors. During the second quarter in Malaysia, concern about strong
consumer spending, a rising level of imports, high labor costs and a possible
oversupply of property all contributed to drive the market downwards. The
ongoing financial crisis in Thailand resulted in a 25% decline in the market
during the latter part of the period.
The Japanese market, on the other hand, rebounded strongly, gaining 22% during
the second quarter. Despite continued speculation that interest rates are set
to rise, coupled with a mixed picture on the domestic economy's future growth
prospects, foreigners continue to increase their investments in Japan. Little
attention is being paid to the current paltry state of the financial sector
where banks are continuing to struggle under the burden of their bad debts which
are estimated, by the most optimistic of forecasters, to absorb profits for the
next 3.3 years.
OUTLOOK:
Our outlook for the remainder of the year remains the same. The low-growth,
low-inflationary environment, which prevails globally, will continue to provide
a favorable backdrop for equity investments. Nevertheless the upward movement
of most markets has driven up valuations relative to earnings growth and this
fact remains uppermost in our minds. These gains have pushed many multiples to
very high levels and are occurring against an interest rate background which, if
anything, is deteriorating. Many stock prices, especially the blue chips, and
even more so, some financials have increased beyond their fundamental values.
Based on relative valuations levels, this has led us to move from some of the
more highly priced U.K. and continental European stocks, switching the proceeds
into a number of selected Japanese holdings where valuation levels are looking
increasingly reasonable.
3
<PAGE>
Overall, global economic conditions remain on the positive side, with few
general signs of real inflationary pressures. The only exceptions to this are
the U.K. where there have been some interest rate rises and where the currency
is becoming less competitive, and some of the smaller Far Eastern countries in
recent months. The debate on the introduction of the Euro in 1999 and the likely
list of initial participants continues to be a major focus in Europe but the
general consensus is that European monetary union will go ahead on schedule.
Thank you for your continued confidence and investment in the Fund.
Bank of Ireland Asset Management (U.S.) Limited
Portfolio Managers
* Investments in the Berger/BIAM International Fund are not insured by the
Federal Deposit Insurance Corporation, are not deposits, and are not
obligations of, or endorsed or guaranteed in any way by, any bank.
TOP TEN HOLDINGS AS OF JULY 31, 1997
<TABLE>
<CAPTION>
% of Portfolio's Net Assets
---------------------------
Company at 7/31/97 at 1/31/97
------- ---------- ----------
<S> <C> <C>
1. Novartis 4.5% 3.7%
2. National Australia Bank 3.3% 3.1%
3. Canon 3.0% 2.0%
4. Barclays Bank 2.6% 1.9%
5. B.A.T. Industries 2.5% 2.2%
6. Lloyds TSB Group 2.5% 2.0%
7. Schw Ruckverischer 2.4% 1.5%
8. ING Groep 2.3% 1.9%
9. ABN Amro Holdings 2.3% 2.3%
10. Mannesmann 2.0% 2.0%
</TABLE>
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BERGER/BIAM INTERNATIONAL
FUND VS. EAFE INDEX AND COST OF LIVING INDEX (DESCRIPTION OF BERGER/BIAM
INTERNATIONAL FUND PERFORMANCE LINE GRAPH)
The following table reflects data presented in a line graph at this point in the
Semi-Annual Report to Shareholders. The graph compares the value of shares
invested in the Berger/BIAM International Fund to the EAFE Index and to the Cost
of Living Index. The graph is based on an initial investment of $10,000 on July
31, 1989 with all dividends and capital gains reinvested. Also included is a
smaller chart reflecting the Berger/BIAM International Fund's Average Annual
Total Return as of July 31, 1997 for 1 year - 26.0%, 3 years - 14.7%, 5 years -
13.9% and since inception (July 31, 1989) - 14.0%.
4
<PAGE>
<TABLE>
<CAPTION>
Berger/BIAM Cost of Living
Date International Fund EAFE Index
---- ------------------ ---- --------------
<S> <C> <C> <C>
7/31/89 $10,000 $10,000 $10,000
7/31/90 $13,390 $ 9,328 $10,482
7/31/91 $12,470 $ 8,567 $10,949
7/31/92 $14,840 $ 7,933 $11,294
7/31/93 $16,070 $10,169 $11,608
7/31/94 $18,820 $11,636 $11,929
7/31/95 $21,290 $12,482 $12,259
7/31/96 $22,560 $12,961 $12,621
7/31/97 $28,417 $15,352 $12,886
</TABLE>
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996, reflect
the performance of the pool of assets transferred on that date into the
Berger/BIAM International Portfolio in which all of the Fund's assets are
invested, adjusted at that time for any increase in expenses anticipated in
operating the Fund, including the Fund's pro rata share of the aggregate
annual operating expenses, net of fee waivers, of the Portfolio. The asset
pool was not registered with the Securities and Exchange Commission and
therefore was not subject to the investment restrictions imposed by law on
registered mutual funds. If the pool had been registered its performance
might have been adversely affected. Performance figures are based on
historical results and are not intended to be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
5
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JULY 31, 1997
<TABLE>
<S> <C>
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio") $19,416,333
-----------
Total Assets 19,416,333
-----------
LIABILITIES
Accrued administrative fee (Note 2) 7,222
Accrued registration fees 4,267
Accrued 12b-1 distribution and advertising fees (Note 2) 4,012
-----------
Total Liabilities 15,501
-----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $19,400,832
-----------
-----------
Capital Shares:
Authorized (Par Value $0.01) Unlimited
-----------
-----------
Shares Outstanding 1,662,190
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $11.67
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD FROM NOVEMBER 7, 1996 (COMMENCEMENT
OF INVESTMENT OPERATIONS) TO JULY 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Interest and dividend income (net of $28,857 foreign
withholding taxes) $ 249,471
Portfolio expenses (96,429)
----------
Net Investment Income Allocated from Portfolio 153,042
----------
FUND EXPENSES
Administrative fees (Note 2) 48,541
12b-1 distribution and advertising fees (Note 2) 26,967
Registration fees 10,749
Legal fees 4,803
----------
Total Fund Expenses 91,060
----------
Net Investment Income (Loss) 61,982
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT
AND FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign
currency transactions 244,309
Net change in unrealized appreciation (depreciation) of
investment and foreign currency transactions 2,022,835
----------
Net Realized and Unrealized Gain (Loss) on Investment and
Foreign Currency Transactions Allocated from Portfolio 2,267,144
----------
Net Increase (Decrease) in Net Assets Resulting from Operations $2,329,126
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD FROM NOVEMBER 7, 1996 (COMMENCEMENT
OF OPERATIONS) TO JULY 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $ 61,982
Net realized gain (loss) on investment and foreign currency
transactions allocated from Portfolio 244,309
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from Portfolio 2,022,835
-----------
Net Increase (Decrease) in Net Assets from Operations 2,329,126
-----------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
-----------
Net Increase (Decrease) in Net Assets from Distributions to
Shareholders 0
-----------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 24,328,896
Net asset value of shares issued in reinvestment of dividends 0
-----------
Total 24,328,896
Payments for shares redeemed (7,257,190)
-----------
Net Increase (Decrease) in Net Assets Derived from Fund
Share Transactions 17,071,706
-----------
INCREASE (DECREASE) IN NET ASSETS 19,400,832
Net Assets:
Beginning of period 0
-----------
End of period $19,400,832
-----------
-----------
Undistributed (distribution in excess of) net investment
income included in the above $ 61,982
-----------
-----------
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $17,071,706
Accumulated net investment income (loss) 61,982
Accumulated net realized gain (loss) 244,309
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 2,022,835
-----------
Total $19,400,832
-----------
-----------
TRANSACTIONS IN FUND SHARES:
Shares sold 2,340,642
Shares issued to shareholders in reinvestment of dividends 0
-----------
Total 2,340,642
Shares repurchased (678,452)
-----------
Net increase (decrease) in shares 1,662,190
Shares outstanding, beginning of period 0
-----------
Shares outstanding, end of period 1,662,190
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JULY 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Fund (the "Fund") is a series of the
Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware business trust,
organized on May 31, 1996. The Fund and the Trust are registered under the
Investment Company Act of 1940, as amended, as open-end management investment
companies. The Trust is authorized to issue an unlimited number of shares of
beneficial interest in series or portfolios. Currently, the series comprising
the Fund, International Equity Fund and Berger/BIAM International CORE Fund, are
the only series established under the Trust, although others may be added in the
future. The Trust is also authorized to establish multiple classes of shares
representing differing interests in an existing or new series. The Fund
commenced investment operations on November 7, 1996 ("Commencement of Investment
Operations").
The investment objective of the Fund is long-term capital appreciation.
The Fund will invest all of its investable assets in the Berger/BIAM
International Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide
Portfolios Trust. The value of such investment reflects the Fund's
proportionate interest in the net assets of the Portfolio (19% at July 31,
1997). The Portfolio is an open-end management investment company and has
the same investment objective and policies as the Fund. The performance of
the Fund will 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 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
The price of the Fund's shares is based on the net asset value of the Fund,
which is determined at the close of the regular trading session of the New York
Stock Exchange (the "Exchange") (normally 4:00 p.m., New York time) each day
that the Exchange is open. The per share net asset value of the Fund is
determined by dividing the total value of its assets, less liabilities, by the
total number of shares outstanding. Since the Fund will invest all of its
investable assets in the Portfolio, the value of the Fund's investable assets
will be equal to the value of its beneficial interest in the Portfolio.
Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statement which accompany these Financial
Statements for the Fund.
INCOME AND EXPENSES
As an investor in the Portfolio, the Fund is allocated its pro rata share
of the aggregate investment income and annual operating expenses of the
Portfolio including the investment advisory fee, custodian fees, independent
accountants' fees, record keeping and pricing agent fees. Such investment
income and expenses are allocated on the day the expense is incurred in
proportion to the prior day's relative net assets of the Fund and other
investors in the Portfolio.
FEDERAL INCOME TAXES
Each series of the Trust is treated as a separate entity for Federal income
tax purposes. The Fund's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no income tax
provision is required.
9
<PAGE>
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 their
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatments for
net operating losses and expiring capital loss carryforwards. Accordingly,
these permanent differences in the character of income and distributions between
financial statements and tax basis will be reclassified to paid-in-capital. At
July 31, 1997, no such differences existed.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the Advisor
serves as the administrator of the Fund. Pursuant to such Agreement, the Fund
pays the Advisor a fee at an annual rate equal to the lesser of 0.45% of its
average daily net assets or the Advisor's annual cost to provide or procure such
services plus 0.02% of the Fund's average daily net assets. Under the
Agreement, the Advisor is responsible, at its own expense, for providing or
procuring all administrative services reasonably necessary for the operation of
the Fund, including recordkeeping and pricing services, custodian services,
transfer agency and dividend disbursing services, tax and audit services,
insurance, printing and mailing to shareholders of prospectuses and other
required communication and certain other administrative services. The Advisor
has delegated the administration of the Fund to Berger. For such services, the
Advisor pays Berger a sub-administration fee equal to 0.25% of the Fund's
average daily net assets.
Additionally, the Fund has adopted a plan pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "Plan"). The Plan provides for the payment
to Berger of a 12b-1 fee of .25 of 1% per annum of the Fund's average daily net
assets to finance activities primarily intended to result in the sale of the
Fund's shares. The plan provides that such payments will be made to Berger as
compensation rather than reimbursement for actual expenses incurred to promote
the sale of the Fund's shares.
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
recordkeeping and pricing services to the Fund, including calculating the net
asset value of the Fund, and to perform certain accounting and recordkeeping
functions that it requires. In addition, IFTC has been appointed to serve as
the Fund's custodian, transfer agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and directors of
the Advisor or Sub-Advisor. Trustees who are not affiliated with the
Portfolio's Advisor or Sub-Advisor are compensated for their services according
to a fee schedule, allocated among the Berger Funds 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 the Fund.
3. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust changed the fiscal year
end of the Fund from July 31 to September 30.
10
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGH THE PERIOD FROM NOVEMBER 7, 1996
(COMMENCEMENT OF INVESTMENT OPERATIONS) TO JULY 31, 1997
<TABLE>
<S> <C>
Net asset value, beginning of period $ 10.00
---------
Income from investment operations:
Net investment income 0.04
Net realized and unrealized gain (loss) on investment and
foreign currency transactions allocated from Portfolio 1.63
---------
Total from investment operations 1.67
---------
Net asset value, end of period $ 11.67
---------
Total return* 16.70%
---------
---------
Ratios/Supplementary Data:
Net assets, end of period $19,400,832
Ratios to average net assets~:
Gross expenses^ 1.97%
Net expenses^ 1.74%
Net investment income (loss) 0.57%
</TABLE>
* BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
~ ANNUALIZED.
^ REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE OF THE
PORTFOLIO'S GROSS AND NET EXPENSES. THE PORTFOLIO'S NET EXPENSES REFLECT
ITS GROSS EXPENSES, REDUCED BY FEES OFFSET BY EARNINGS CREDITS, FEE WAIVERS
AND EXPENSE REIMBURSEMENTS.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SEMI-ANNUAL REPORT
JULY 31, 1997
The following pages should be read in conjunction with the Berger/BIAM
International Fund Semi-Annual financial statements.
TABLE OF CONTENTS
Schedule of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
12
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
JULY 31, 1997
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
- -------------- ------- -------- ------------
<S> <C> <C> <C>
COMMON STOCK - 89.9%
AUSTRALIA - 6.7 %
106,970 Broken Hill Proprietary Resources $1,455,643
208,600 National Australia Bank Financials 3,041,452
327,530 News Corporation Media 1,493,370
135,150 Western Mining Resources 785,052
----------
6,775,517
----------
FINLAND - .5%
19,800 Upm Kymmene Paper, Packaging
& Printing 480,435
----------
FRANCE - 2.1%
3,230 Elf Aquitaine Utilities 367,527
15,400 Michelin Auto Goods 955,955
8,180 Total Co. Francaise Petrole 'B' Utilities 818,862
----------
2,142,344
----------
GERMANY -6.4%
33,645 Hoechst Healthcare 1,576,838
4,477 Mannesmann Electrical/Engineering 2,086,083
15,490 Siemens Electrical/Engineering 1,076,973
29,740 Veba Utilities 1,725,532
----------
6,465,426
----------
GREAT BRITAIN - 29.8%
290,340 BAT Industries Tobacco/
Financial
Services 2,452,660
122,950 Barclays Bank Financials 2,591,522
323,500 BTR Conglomerates 1,005,557
103,000 Cable & Wireless Telecommunications 1,037,358
105,750 Cadbury Schweppes Food Manufacturing 1,022,557
61,400 EMI Group - Class B Leisure & Entertainment 110,786
93,420 EMI Group Leisure & Entertainment 856,594
203,350 General Electric Co. Electrical/Engineering 1,174,114
83,300 Glaxo Wellcome Healthcare 1,763,983
126,200 Granada Group Leisure & Entertainment 1,738,849
112,700 Grand Metropolitan Retailer/Consumer Goods 1,106,398
66,400 Kingfisher Retailer/Consumer Goods 784,195
158,900 Ladbroke Group Leisure & Entertainment 643,790
213,100 Lloyds TSB Group Financials 2,355,953
41,800 Premier Farnell Distributor of Components 351,736
146,080 Prudential Insurance 1,399,352
178,050 Safeway Retailer/Consumer Goods 1,125,874
126,400 Scottish Power Utilities 893,609
250,350 Shell Transport & Trading Company Utilities 1,852,027
87,841 Siebe Electrical/Engineering 1,584,941
130,900 TI Group Electrical/Engineering 1,168,051
200,500 Vodafone Group Telecommunications 1,012,951
58,575 Zeneca Group Healthcare 1,945,632
----------
29,978,489
----------
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
- -------------- ------- -------- ------------
<S> <C> <C> <C>
HONG KONG - 1.6%
45,000 HSBC Holdings Financials $ 1,569,463
-----------
INDONESIA - 2.6%
256,000 Gudang Garam Tobacco 966,730
304,000 HM Sampoerna Tobacco 1,063,709
409,000 Telekomunikasi Telecommunications 625,621
-----------
2,656,060
-----------
IRELAND - 1.2%
47,230 Allied Irish Banks Financials 436,610
257,100 Smurfit (Jefferson) Group Paper, Packaging
& Printing 778,515
-----------
1,215,125
-----------
ITALY - 1.4%
42,206 ENI SPA ITL Utilities 246,215
189,380 Telecom Italia Telecommunications 1,201,188
-----------
1,447,403
-----------
JAPAN - 6.9%
94,000 Canon Retailer/Consumer Goods 2,998,354
33,000 Honda Motor Engineering/Vehicles 1,102,738
37,000 Kao Corporation Household Goods 555,757
4,000 Murata Manufacturing Electronic & Electrical
Equipment 188,009
4,000 Rohm Company Electronic & Electrical
Equipment 523,185
20,000 Shiseido Retailers General 332,475
7,000 Sony Corporation Electronic & Electrical
Equipment 697,017
20,000 Takeda Chemical Pharmaceuticals 605,882
-----------
7,003,417
-----------
MALAYSIA - 2.7%
103,000 Hume Industries Infrastructure/Property 390,818
203,000 RHB Capital Financials 550,730
304,400 Sime Darby Conglomerates 958,649
118,000 United Engineers Infrastructure/Property 823,828
-----------
2,724,025
-----------
MEXICO - .6%
203,670 Grupo Financiero Banamex - Class B Financials 626,857
-----------
NETHERLANDS - 9.0%
87,430 ABN Amro Holdings Financials 2,051,280
86,600 Elsevier Media 1,522,811
47,852 ING Groep Financials 2,323,785
28,005 KON PTT Nederland Telecommunications 1,146,806
6,250 Nutricia Ver Bedrijven Food Manufacturing 1,059,883
16,800 Royal Dutch Petroleum Utilities 939,673
-----------
9,044,238
-----------
PHILIPPINES - .4%
208,370 San Miguel - Class B Food & Drinks 444,554
-----------
SINGAPORE - 5.2%
165,000 City Development Infrastructure/Property 1,402,584
148,412 Development Bank of Singapore Financials 1,927,691
94,600 Fraser and Neave Food & Drinks 643,319
68,100 Singapore Press Holdings Media 1,292,071
-----------
5,265,665
-----------
SPAIN - .9%
32,380 Banco De Santander Financials 902,506
-----------
SWITZERLAND - 11.2%
1,404 Alusuisse Lonza Holdings Conglomerates 1,273,417
1,272 Nestle Food Manufacturing 1,610,137
2,941 Novartis Healthcare 4,709,601
161 Roche Holdings Healthcare 1,553,183
1,507 Schw Ruckverischer Insurance 2,185,945
-----------
11,332,283
-----------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
- -------------- ------- -------- ------------
<S> <C> <C> <C>
THAILAND - .7%
97,100 Bangkok Bank Financials $ 747,851
------------
TOTAL COMMON STOCK (Cost $82,021,134) 90,821,658
------------
U.S. GOVERNMENT OBLIGATIONS - 4.9%
$ 5,000,000 U.S. Treasury Bills due 8/21/97 (Amortized cost $4,986,444) 4,986,444
------------
REPURCHASE AGREEMENT - 3.2%
Repurchase agreement with State Street Bank, 4.25%, dated
July 31, 1997, to be purchased at $3,252,384 on August 1, 1997,
collateralized by U.S. Treasury Notes, 6.125% - March 31, 1998,
with a value of $3,332,069 (Amortized cost $3,252,000) 3,252,000
------------
Total Investments (Cost $90,259,578*) - 98.0% 99,060,102
Other Assets, Less Liabilities - 2.0% 1,980,340
------------
Net Assets - 100% $101,040,442
------------
------------
</TABLE>
*Also represents cost for Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JULY 31, 1997
<TABLE>
<S> <C>
ASSETS
Investments at value (cost $90,259,578) $ 99,060,102
Cash 668
Foreign currency at value (cost $1,725,044) 1,717,907
Net unrealized appreciation on open forward currency contracts 694,343
Receivables:
Beneficial interests sold 527
Interest and dividends 254,070
Investment securities sold 2,330,182
------------
Total Assets 104,057,799
------------
LIABILITIES
Payables:
Investment securities purchased 3,017,357
------------
Total Liabilities 3,017,357
------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $101,040,442
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period From October 11, 1996 (commencement
of investment operations) to July 31, 1997
<TABLE>
<S> <C>
INVESTMENT INCOME:
Dividend income (net of $120,766 foreign withholding taxes) $ 975,005
Interest 106,243
-----------
Total Investment Income 1,081,248
-----------
EXPENSES:
Investment advisory fee (Note 2) 396,476
Accounting services 49,136
Trustees' fees and expenses (Note 2) 36,109
Custody fees 8,752
Legal fees 2,490
Postage, printing and reports 5,470
Insurance and bonds 3,750
Miscellaneous 516
-----------
Total Expenses 502,699
Less earnings credits (57,888)
Less expenses reimbursed by Advisor (Note 2) (62,850)
-----------
Expenses - Net 381,961
-----------
Net Investment Income (Loss) 699,287
-----------
NET REALIZED GAIN (LOSS) ON
Investment transactions 306,369
Foreign currency transactions 622,104
-----------
Net Realized Gain (Loss) 928,473
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 8,233,848
Foreign currency contracts and translations 711,630
-----------
Net Change in Unrealized Appreciation (Depreciation) 8,945,478
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $10,573,238
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period From October 11, 1996 (COMMENCEMENT
of investment operations) to July 31, 1997
<TABLE>
<S> <C>
FROM OPERATIONS:
Net investment income (loss) $ 699,287
Net realized gain (loss) on investments and foreign
currency transactions 928,473
Net change in unrealized appreciation (depreciation)
of investments and foreign currency transactions 8,945,478
------------
Net Increase (Decrease) in Net Assets from Operations 10,573,238
------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
------------
Net Decrease in Net Assets from Distributions to Investors' 0
------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 102,382,686
Withdrawals (11,915,482)
------------
Net Increase (Decrease) in Net Assets from Investors'
Transactions 90,467,204
------------
INCREASE (DECREASE) IN NET ASSETS 101,040,442
Net Assets:
Beginning of period 0
------------
End of period $101,040,442
------------
------------
</TABLE>
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the period from October 11, 1996 (commencement of investment
operations) to July 31, 1997
<TABLE>
<S> <C>
RATIOS TO AVERAGE NET ASSETS~:
Gross Expenses* 1.14%
Net Expenses* 0.87%
Net Investment Income 1.59%
Portfolio Turnover+ 18%
Average Commission Rate $.0235
</TABLE>
* NET EXPENSES REFLECT THE PORTFOLIO'S GROSS (TOTAL) EXPENSES, REDUCED BY
FEES OFFSET BY EARNINGS CREDITS, FEE WAIVERS AND EXPENSE REIMBURSEMENTS.
~ ANNUALIZED.
+ BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
July 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Portfolio is a series of the Berger/BIAM Worldwide
Portfolios Trust (the "Trust") , which was organized as a Delaware business
trust on May 31, 1996. All costs in organizing the Trust were paid by BBOI
Worldwide LLC, the investment advisor of the Portfolio ("BBOI"). The Portfolio
commenced investment operations on October 11, 1996 ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to the
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.
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 will be determined by using
pricing services which provide market prices to other mutual funds or, as
needed, by obtaining market quotations from independent broker/dealers.
Short-term money market securities maturing within 60 days are valued on the
amortized cost basis, which approximates market value. All assets and
liabilities initially expressed in terms of non-U.S. dollar currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers shortly before the close of the Exchange. Securities and
assets for which quotations are not readily available are valued at fair values
determined in good faith pursuant to consistently applied procedures established
by the trustees.
Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of the Exchange. The values of
foreign securities used in computing the net asset value of the shares in the
portfolio are determined as of the earlier of such market close or the closing
time of the Exchange. Occasionally, events affecting the value of such
securities may occur between the times at which they are determined and the
close of the Exchange, or when the foreign market on which such securities trade
is closed but the Exchange is open, which will not be reflected in the
computation of net asset value. If during such periods, events occur which
materially affect the value of such securities, the securities will be valued at
their fair market value as determined in good faith pursuant to consistently
applied procedures established by the trustees.
19
<PAGE>
FEDERAL INCOME TAXES
The Portfolio intends to be treated as a partnership for Federal income tax
purposes. As such, each investor in the Portfolio will be 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.
SECURITY GAINS AND LOSSES
Gains and losses are computed on the identified cost basis for both
financial statement and Federal income tax purposes for all securities. Assets
and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may 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.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio pursuant to an
agreement which provides for an investment advisory fee to be paid to BBOI at
the annual rate of .90 of 1% of the Portfolio's average daily net assets. Until
at least April 30, 1998, BBOI has agreed voluntarily to waive its advisory fee
to the extent that the Portfolio's normal operating expenses in any fiscal year
(including the investment advisory fee and custodian fees, but excluding
brokerage commissions, interest, taxes and extraordinary expenses) exceed 1.00%
of the Portfolio's average daily net assets for that fiscal year. BBOI is also
responsible for providing for or arranging for all managerial and administrative
services necessary for the operations of the Portfolio. BBOI has delegated the
daily portfolio management of the Portfolio to BIAM. For such services, BBOI
pays BIAM a sub-advisory fee equal to .45% of the average daily net assets of
the Portfolio. Such sub-advisory fee has been voluntarily waived by BIAM from
the Commencement of Operations through July 31, 1997, except for the amount
payable on the Citizens NH converted assets.
20
<PAGE>
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 Operations through
July 31, 1997, the Fund received $57,888 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
the Advisor or BIAM. Trustees who are not affiliated with the Advisor or BIAM
are compensated for their services according to a fee schedule, allocated among
the Berger Funds 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 operations through July 31, 1997, totaled
$36,109.
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 July
31, 1997 were as follows:
<TABLE>
<CAPTION>
Purchase of Sales of
Investment Securities Investment Securities
--------------------- ---------------------
<S> <C>
$89,505,618 $7,790,854
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the period.
At July 31, 1997, the composition of unrealized appreciation (the excess of
value over tax cost) and unrealized depreciation (the excess of tax cost over
value) for securities held was as follows:
<TABLE>
<CAPTION>
Appreciation Depreciation Net
------------ ------------ ---
<S> <C> <C>
$11,187,925 $2,387,401 $8,800,524
</TABLE>
4. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust changed the fiscal year
end of the Portfolio from July 31 to September 30.
21
<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
Together we can move mountains...the world over.-TM-
-C-1997 Berger Associates, Inc.
22
<PAGE>
INTERNATIONAL EQUITY FUND
SEMI-ANNUAL REPORT
JULY 31, 1997
TABLE OF CONTENTS
Portfolio Manager's Letter
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Financial Highlights
1
<PAGE>
INTERNATIONAL EQUITY FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use of
fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of
economic themes. These broad-based trends are derived from a wide spectrum
of global events, which can be social, economic and/or technological, in
nature. They are an important part of the process that ultimately allows us
to identify the ideas that we believe will generate above average growth over
the long term.
FUND REVIEW:
During the early part of the year no individual theme made a significant
contribution--either positive or negative--to overall performance although
there were a number of good individual stock performances which helped the
portfolio, particularly in the Healthcare Needs and Positive Banking
Environment themes. In Healthcare, Roche, Zeneca, Glaxo-Wellcome and
Novartis did well during the first part of the year and continued to improve
through the end of July.
In April, Novartis purchased Merck's agribusiness division and in May it
released its first-quarter sales figures which revealed an increase of 8%,
considerably ahead of expectations. This was seen as evidence that the
benefits of the merger were having a quicker-than-expected impact on the
company's performance. The market received this news very well and Novartis'
share price rose by 29% over the second quarter. Both Zeneca and
Glaxo-Wellcome continued to prosper, also based on optimism for prospective
sales growth from new drugs.
Positive Banking Environment stocks Lloyds TSB, ABN-Amro and National
Australia Bank reported profit increases ranging from 14% to 52% during the
period. This strong performance continued into the second three months of
1997, with Banco de Santander posting good first quarter results and HSBC
Holdings gaining 29% over the period, assisted by the strong performance of
the Hong Kong market in general.
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. This has
taken place for a variety of reasons ranging from poor company results--as
was the case with HM Sampoerna which announced poor sales forecasts--to the
domino effect of financial crises which caused poor performance by Bangkok
Bank.
The currency hedging program again added value over the period. At the end
of July hedges were in place against the British Pound, the Deutschemark, the
Swiss Franc and the Dutch Guilder. Approximately 17% of the portfolio is
currently hedged.
2
<PAGE>
ECONOMIC & MARKET REVIEW
With the notable exception of the developing markets in the Pacific Basin,
equity markets worldwide have thus far done well during 1997. 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-highs over the last six
months.
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. The
initial actions of the country's new Labour government have been a source of
encouragement to the market, although the administration's fiscal and
monetary policies will be analyzed very closely.
The weakness of the Deutschemark stimulated a recovery in Germany's
export-oriented manufacturing sector in the early part of the year and during
the second quarter, foreign orders have increased at a steady pace. Their
domestic economy remains in the doldrums, however, and unemployment remains
at, or close to record levels.
Far Eastern markets performed poorly during the first three months due to
fears about the upward direction of U.S. interest rates and continued net
outflows by foreign investors. During the second quarter in Malaysia,
concern about strong consumer spending, a rising level of imports, high labor
costs and a possible oversupply of property all contributed to drive the
market downwards. The ongoing financial crisis in Thailand resulted in a 25%
decline in the market during the latter part of the period.
The Japanese market, on the other hand, rebounded strongly, gaining 22%
during the second quarter. Despite continued speculation that interest rates
are set to rise, coupled with a mixed picture on the domestic economy's
future growth prospects, foreigners continue to increase their investments in
Japan. Little attention is being paid to the current paltry state of the
financial sector where banks are continuing to struggle under the burden of
their bad debts which are estimated, by the most optimistic of forecasters,
to absorb profits for the next 3.3 years.
OUTLOOK:
Our outlook for the remainder of the year remains the same. The low-growth,
low-inflationary environment, which prevails globally, will continue to
provide a favorable backdrop for equity investments. Nevertheless the upward
movement of most markets has driven up valuations relative to earnings growth
and this fact remains uppermost in our minds. These gains have pushed many
multiples to very high levels and are occurring against an interest rate
background which, if anything, is deteriorating. Many stock prices,
especially the blue chips, and even more so, some financials have increased
beyond their fundamental values.
Based on relative valuations levels, this has led us to move from some of the
more highly priced U.K. and continental European stocks, switching the
proceeds into a number of selected Japanese holdings where valuation levels
are looking increasingly reasonable.
3
<PAGE>
Overall, global economic conditions remain on the positive side, with few
general signs of real inflationary pressures. The only exceptions to this
are the U.K. where there have been some interest rate rises and where the
currency is becoming less competitive, and some of the smaller Far Eastern
countries in recent months. The debate on the introduction of the Euro in
1999 and the likely list of initial participants continues to be a major
focus in Europe but the general consensus is that European monetary union
will go ahead on schedule.
Thank you for your continued confidence and investment in the Fund.
BANK OF IRELAND ASSET MANAGEMENT (U.S.) LIMITED
PORTFOLIO MANAGERS
* Investments in the International Equity Fund are not insured by the
Federal Deposit Insurance Corporation, are not deposits, and are not
obligations of, or endorsed or guaranteed in any way by, any bank.
TOP TEN HOLDINGS AS OF JULY 31, 1997
% of Portfolio's Net Assets
----------------------------
Company at 7/31/97 at 1/31/97
------- ---------- ----------
1. Novartis 4.5% 3.7%
2. National Australia Bank 3.3% 3.1%
3. Canon 3.0% 2.0%
4. Barclays Bank 2.6% 1.9%
5. B.A.T. Industries 2.5% 2.2%
6. Lloyds TSB Group 2.5% 2.0%
7. Schw Ruckverischer 2.4% 1.5%
8. ING Groep 2.3% 1.9%
9. ABN Amro Holdings 2.3% 2.3%
10. Mannesmann 2.0% 2.0%
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN INTERNATIONAL EQUITY
FUND VS. EAFE INDEX AND COST OF LIVING INDEX (DESCRIPTION OF INTERNATIONAL
EQUITY FUND PERFORMANCE LINE GRAPH)
The following table reflects data presented in a line graph at this point in
the Semi-Annual Report to Shareholders. The graph compares the value of
shares invested in the International Equity Fund to the EAFE Index and to the
Cost of Living Index. The graph is based on an initial investment of $10,000
on July 31, 1989 with all dividends and capital gains reinvested. Also
included is a smaller chart reflecting the International Equity Fund's
Average Annual Total Return as of July 31, 1997 for 1 year - 26.7%, 3 years -
15.2%, 5 years - 14.4% and since inception (July 31, 1989) - 14.4%.
4
<PAGE>
International Cost of Living
Date Equity Fund EAFE Index
------- ------------- ------- --------------
7/31/89 $10,000 $10,000 $10,000
7/31/90 $13,440 $ 9,328 $10,482
7/31/91 $12,570 $ 8,567 $10,949
7/31/92 $15,010 $ 7,933 $11,294
7/31/93 $16,330 $10,169 $11,608
7/31/94 $19,200 $11,636 $11,929
7/31/95 $21,800 $12,482 $12,259
7/31/96 $23,180 $12,961 $12,621
7/31/97 $29,364 $15,352 $12,886
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996, reflect
the performance of the pool of assets transferred on that date into the
Berger/BIAM International Portfolio in which all of the Fund's assets are
invested, adjusted at that time for any increase in expenses anticipated in
operating the Fund, including the Fund's pro rata share of the aggregate
annual operating expenses, net of fee waivers, of the Portfolio. The asset
pool was not registered with the Securities and Exchange Commission and
therefore was not subject to the investment restrictions imposed by law on
registered mutual funds. If the pool had been registered its performance
might have been adversely affected. Performance figures are based on
historical results and are not intended to be indicative of future
performance. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or
less than their original cost.
5
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JULY 31, 1997
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio") $ 6,165,588
-----------
Total Assets 6,165,588
-----------
LIABILITIES
Accrued administrative fee (Note 2) 500
-----------
Total Liabilities 500
-----------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 6,165,088
-----------
-----------
Capital Shares:
Authorized (Par Value $0.01) Unlimited
-----------
-----------
Shares Outstanding 520,364
-----------
-----------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 11.85
-----------
-----------
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD FROM OCTOBER 11, 1996 (COMMENCEMENT
OF INVESTMENT OPERATIONS) TO JULY 31, 1997
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Interest and dividend income (net of $9,841 foreign
withholding taxes) $ 86,649
Portfolio expenses (37,704)
---------
Net Investment Income Allocated from Portfolio 48,945
---------
FUND EXPENSES
Administrative fees (Note 2) 12,014
---------
Total Fund Expenses 12,014
---------
Net Investment Income (Loss) 36,931
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign currency
transactions 77,895
Net change in unrealized appreciation (depreciation)
of investment and foreign currency transactions 789,952
---------
Net Realized and Unrealized Gain (Loss) on Investment and
Foreign Currency Transactions Allocated from Portfolio 867,847
---------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 904,778
---------
---------
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
FOR THE PERIOD FROM OCTOBER 11, 1996 (COMMENCEMENT
OF INVESTMENT OPERATIONS) TO JULY 31, 1997
FROM OPERATIONS:
Net investment income (loss) $ 36,931
Net realized gain (loss) on investment and foreign currency
transactions allocated from Portfolio 77,895
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from Portfolio 789,952
-----------
Net Increase (Decrease) in Net Assets from Operations 904,778
-----------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
-----------
Net Increase (Decrease) in Net Assets from Distributions to
Shareholders 0
-----------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 6,781,855
Net asset value of shares issued in reinvestment of dividends 0
-----------
Total 6,781,855
Payments for shares redeemed (1,521,545)
-----------
Net Increase (Decrease) in Net Assets Derived from Fund Share
Transactions 5,260,310
-----------
INCREASE (DECREASE) IN NET ASSETS 6,165,088
Net Assets:
Beginning of period 0
---------
End of period $ 6,165,088
-----------
-----------
Undistributed (distribution in excess of) net investment
income included in the above $ 36,931
-----------
-----------
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $ 5,260,310
Accumulated net investment income (loss) 36,931
Accumulated net realized gain (loss) 77,895
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 789,952
-----------
Total $ 6,165,088
-----------
-----------
TRANSACTIONS IN FUND SHARES:
Shares sold 663,215
Shares issued to shareholders in reinvestment of dividends 0
-----------
Total 663,215
Shares repurchased (142,851)
-----------
Net increase (decrease) in shares 520,364
Shares outstanding, beginning of period 0
-----------
Shares outstanding, end of period 520,364
-----------
-----------
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JULY 31, 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 Fund and the Trust are
registered under the Investment Company Act of 1940, as amended, as open-end
management investment companies. The Trust is authorized to issue an
unlimited number of shares of beneficial interest in series or portfolios.
Currently, the series comprising the Fund, Berger/BIAM International Fund and
Berger/BIAM International CORE Fund, are the only series established under
the Trust, although others may be added in the future. The Trust is also
authorized to establish multiple classes of shares representing differing
interests in an existing or new series. The Fund commenced investment
operations on October 11, 1996 ("Commencement of Investment Operations").
The investment objective of the Fund is long-term capital appreciation. The
Fund will invest all of its investable assets in the Berger/BIAM
International Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide
Portfolios Trust. The value of such investment reflects the Fund's
proportionate interest in the net assets of the Portfolio (6% at July 31,
1997). The Portfolio is an open-end management investment company and has
the same investment objective and policies as the Fund. The performance of
the Fund will 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 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
The price of the Fund's shares is based on the net asset value of the Fund,
which is determined at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") (normally 4:00 p.m., New York time) each
day that the Exchange is open. The per share net asset value of the Fund is
determined by dividing the total value of its assets, less liabilities, by
the total number of shares outstanding. Since the Fund will invest all of
its investable assets in the Portfolio, the value of the Fund's investable
assets will be equal to the value of its beneficial interest in the
Portfolio. Valuation of securities by the Portfolio is discussed in Note 1
of the Portfolio's Notes to Financial Statement which accompany these
Financial Statements for the Fund.
INCOME AND EXPENSES
As an investor in the Portfolio, the Fund is allocated its pro rata share of
the aggregate investment income and annual operating expenses of the
Portfolio including the investment advisory fee, custodian fees, independent
accountants' fees, record keeping and pricing agent fees. Such investment
income and expenses are allocated on the day the expense is incurred in
proportion to the prior day's relative net assets of the Fund and other
investors in the Portfolio.
9
<PAGE>
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 their
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally
accepted accounting principles. These differences are primarily due to the
differing treatments for net operating losses and expiring capital loss
carryforwards. Accordingly, these permanent differences in the character of
income and distributions between financial statements and tax basis will be
reclassified to paid-in-capital. At July 31, 1997, no such differences
existed.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ
from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the Advisor serves
as the administrator of the Fund. Pursuant to such Agreement, the Fund 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% 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, the Advisor
voluntarily reduced the administrative fee payable by the Fund to 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 subadministration fee equal to 0.25% of
the Fund's average daily net assets.
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
recordkeeping and pricing services to the Fund, including calculating the net
asset value of the Fund, and to perform certain accounting and recordkeeping
functions that it requires. In addition, IFTC has been appointed to serve as
the Fund's custodian, transfer agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and directors of the
Advisor or Sub-Advisor. Trustees who are not affiliated with the Portfolio's
Advisor or Sub-Advisor are compensated for their services according to a fee
schedule, allocated among the Berger Funds and Berger/BIAM Portfolio, which
includes an annual fee component and a per meeting component. Such fees are
allocated directly to the Portfolio and indirectly to the Fund.
3. CHANGE OF FISCAL YEAR AND NAME
Effective April 11, 1997, the trustees of the Trust changed 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 the Berger/BIAM
International Institutional Fund to the International Equity Fund.
10
<PAGE>
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FROM OCTOBER 11, 1996
(COMMENCEMENT OF INVESTMENT OPERATIONS) TO JULY 31, 1997
Net asset value, beginning of period $ 10.00
-----------
Income from investment operations:
Net investment income 0.07
Net realized and unrealized gain (loss) on investment
and foreign currency transactions allocated
from Portfolio 1.78
-----------
Total from investment operations 1.85
Net asset value, end of period $ 11.85
-----------
-----------
Total return* 18.50%
-----------
-----------
Ratios/Supplementary Data:
Net assets, end of period $ 6,165,088
Ratios to average net assets~:
Gross expenses^ 1.39%
Net expenses^ 1.19%
Net investment income (loss) 0.89%
* BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
~ ANNUALIZED.
^ REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE OF THE
PORTFOLIO'S GROSS AND NET EXPENSES. THE PORTFOLIO'S NET EXPENSES REFLECT
ITS GROSS EXPENSES, REDUCED BY FEES OFFSET BY EARNINGS CREDITS, FEE
WAIVERS AND EXPENSE REIMBURSEMENTS.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SEMI-ANNUAL REPORT
JULY 31, 1997
The following pages should be read in conjunction with the International
Equity Fund Semi-Annual financial statements.
TABLE OF CONTENTS
Schedule of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
12
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited)
July 31, 1997
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
- -------------- ------- -------- ------------
<S> <C> <C> <C>
COMMON STOCK - 89.9%
AUSTRALIA - 6.7 %
106,970 Broken Hill Proprietary Resources $ 1,455,643
208,600 National Australia Bank Financials 3,041,452
327,530 News Corporation Media 1,493,370
135,150 Western Mining Resources 785,052
-----------
6,775,517
-----------
FINLAND - .5%
19,800 Upm Kymmene Paper, Packaging 480,435
& Printing -----------
FRANCE - 2.1%
3,230 Elf Aquitaine Utilities 367,527
15,400 Michelin Auto Goods 955,955
8,180 Total Co. Francaise Utilities 818,862
Petrole 'B' -----------
2,142,344
-----------
GERMANY -6.4%
33,645 Hoechst Healthcare 1,576,838
4,477 Mannesmann Electrical/Engineering 2,086,083
15,490 Siemens Electrical/Engineering 1,076,973
29,740 Veba Utilities 1,725,532
-----------
6,465,426
-----------
GREAT BRITAIN - 29.8%
290,340 BAT Industries Tobacco/Financial Services 2,452,660
122,950 Barclays Bank Financials 2,591,522
323,500 BTR Conglomerates 1,005,557
103,000 Cable & Wireless Telecommunications 1,037,358
105,750 Cadbury Schweppes Food Manufacturing 1,022,557
61,400 EMI Group - Class B Leisure & Entertainment 110,786
93,420 EMI Group Leisure & Entertainment 856,594
203,350 General Electric Co. Electrical/Engineering 1,174,114
83,300 Glaxo Wellcome Healthcare 1,763,983
126,200 Granada Group Leisure & Entertainment 1,738,849
112,700 Grand Metropolitan Retailer/Consumer Goods 1,106,398
66,400 Kingfisher Retailer/Consumer Goods 784,195
158,900 Ladbroke Group Leisure & Entertainment 643,790
213,100 Lloyds TSB Group Financials 2,355,953
41,800 Premier Farnell Distributor of Components 351,736
146,080 Prudential Insurance 1,399,352
178,050 Safeway Retailer/Consumer Goods 1,125,874
126,400 Scottish Power Utilities 893,609
250,350 Shell Transport & 1,852,027
Trading Company Utilities
87,841 Siebe Electrical/Engineering 1,584,941
130,900 TI Group Electrical/Engineering 1,168,051
200,500 Vodafone Group Telecommunications 1,012,951
58,575 Zeneca Group Healthcare 1,945,632
-----------
29,978,489
-----------
</TABLE>
13
<PAGE>
<TABLE>
<S> <C> <C> <C>
HONG KONG - 1.6%
45,000 HSBC Holdings Financials $ 1,569,463
-----------
INDONESIA - 2.6%
256,000 Gudang Garam Tobacco 966,730
304,000 HM Sampoerna Tobacco 1,063,709
409,000 Telekomunikasi Telecommunications 625,621
-----------
2,656,060
-----------
IRELAND - 1.2%
47,230 Allied Irish Banks Financials 436,610
257,100 Smurfit (Jefferson) Group Paper, Packaging
& Printing 778,515
-----------
1,215,125
-----------
ITALY - 1.4%
42,206 ENI SPA ITL Utilities 246,215
189,380 Telecom Italia Telecommunications 1,201,188
-----------
1,447,403
-----------
JAPAN - 6.9%
94,000 Canon Retailer/Consumer Goods 2,998,354
33,000 Honda Motor Engineering/Vehicles 1,102,738
37,000 Kao Corporation Household Goods 555,757
4,000 Murata Manufacturing Electronic & Electrical
Equipment 188,009
4,000 Rohm Company Electronic & Electrical
Equipment 523,185
20,000 Shiseido Retailers General 332,475
7,000 Sony Corporation Electronic & Electrical
Equipment 697,017
20,000 Takeda Chemical Pharmaceuticals 605,882
-----------
7,003,417
-----------
MALAYSIA - 2.7%
103,000 Hume Industries Infrastructure/Property 390,818
203,000 RHB Capital Financials 550,730
304,400 Sime Darby Conglomerates 958,649
118,000 United Engineers Infrastructure/Property 823,828
-----------
2,724,025
-----------
MEXICO - .6%
203,670 Grupo Financiero
Banamex - Class B Financials 626,857
-----------
NETHERLANDS - 9.0%
87,430 ABN Amro Holdings Financials 2,051,280
86,600 Elsevier Media 1,522,811
47,852 ING Groep Financials 2,323,785
28,005 KON PTT Nederland Telecommunications 1,146,806
6,250 Nutricia Ver Bedrijven Food Manufacturing 1,059,883
16,800 Royal Dutch Petroleum Utilities 939,673
-----------
9,044,238
-----------
PHILIPPINES - .4%
208,370 San Miguel - Class B Food & Drinks 444,554
-----------
SINGAPORE - 5.2%
165,000 City Development Infrastructure/Property 1,402,584
148,412 Development Bank of Singapore Financials 1,927,691
94,600 Fraser and Neave Food & Drinks 643,319
68,100 Singapore Press Holdings Media 1,292,071
-----------
5,265,665
-----------
SPAIN - .9%
32,380 Banco De Santander Financials 902,506
-----------
SWITZERLAND - 11.2%
1,404 Alusuisse Lonza Holdings Conglomerates 1,273,417
1,272 Nestle Food Manufacturing 1,610,137
2,941 Novartis Healthcare 4,709,601
161 Roche Holdings Healthcare 1,553,183
1,507 Schw Ruckverischer Insurance 2,185,945
-----------
11,332,283
-----------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
Country/Shares Company Industry Market Value
- -------------- ------- -------- ------------
<S> <C> <C> <C>
THAILAND - .7%
97,100 Bangkok Bank Financials $ 747,851
-----------
TOTAL COMMON STOCK (Cost $82,021,134) 90,821,658
-----------
U.S. GOVERNMENT OBLIGATIONS - 4.9%
$ 5,000,000 U.S. Treasury Bills due 8/21/97 (Amortized
cost $4,986,444) 4,986,444
-----------
REPURCHASE AGREEMENT - 3.2%
Repurchase agreement with State Street Bank,
4.25%, dated July 31, 1997, to be purchased at
$3,252,384 on August 1, 1997, collateralized
by U.S. Treasury Notes, 6.125% - March 31, 1998,
with a value of $3,332,069 (Amortized cost
$3,252,000) 3,252,000
-----------
Total Investments (Cost $90,259,578*) - 98.0% 99,060,102
Other Assets, Less Liabilities - 2.0% 1,980,340
-----------
Net Assets - 100% $101,040,442
-----------
-----------
*Also represents cost for Federal income tax purposes.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Assets and Liabilities (Unaudited)
July 31, 1997
ASSETS
Investments at value (cost $90,259,578) $ 99,060,102
Cash 668
Foreign currency at value (cost $1,725,044) 1,717,907
Net unrealized appreciation on open forward currency contracts 694,343
Receivables:
Beneficial interests sold 527
Interest and dividends 254,070
Investment securities sold 2,330,182
-----------
Total Assets 104,057,799
-----------
LIABILITIES
Payables:
Investment securities purchased 3,017,357
-----------
Total Liabilities 3,017,357
-----------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $ 101,040,442
-----------
-----------
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period From October 11, 1996 (commencement
of investment operations) TO July 31, 1997
INVESTMENT INCOME:
Dividend income (net of $120,766 foreign withholding taxes) $ 975,005
Interest 106,243
----------
Total Investment Income 1,081,248
----------
Expenses:
Investment advisory fee (Note 2) 396,476
Accounting services 49,136
Trustees' fees and expenses (Note 2) 36,109
Custody fees 8,752
Legal fees 2,490
Postage, printing and reports 5,470
Insurance and bonds 3,750
Miscellaneous 516
----------
Total Expenses 502,699
Less earnings credits (57,888)
Less expenses reimbursed by Advisor (Note 2) (62,850)
----------
Expenses - Net 381,961
----------
Net Investment Income (Loss) 699,287
----------
NET REALIZED GAIN (LOSS) ON
Investment transactions 306,369
Foreign currency transactions 622,104
----------
Net Realized Gain (Loss) 928,473
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 8,233,848
Foreign currency contracts and translations 711,630
----------
Net Change in Unrealized Appreciation (Depreciation) 8,945,478
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 10,573,238
----------
----------
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period From October 11, 1996 (commencement
of investment operations) to July 31, 1997
FROM OPERATIONS:
Net investment income (loss) $ 699,287
Net realized gain (loss) on investments and foreign
currency transactions 928,473
Net change in unrealized appreciation (depreciation) of investments
and foreign currency transactions 8,945,478
-------------
Net Increase (Decrease) in Net Assets from Operations 10,573,238
-------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
-------------
Net Decrease in Net Assets from Distributions to Investors' 0
-------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 102,382,686
Withdrawals (11,915,482)
-------------
Net Increase (Decrease) in Net Assets from Investors' Transactions 90,467,204
-------------
INCREASE (DECREASE) IN NET ASSETS 101,040,442
Net Assets:
Beginning of period 0
-------------
End of period $ 101,040,442
-------------
-------------
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the period from October 11, 1996 (commencement of investment
operations) to July 31, 1997
Ratios to Average Net Assets~:
Gross Expenses* 1.14%
Net Expenses* 0.87%
Net Investment Income 1.59%
Portfolio Turnover+ 18%
Average Commission Rate $.0235
* NET EXPENSES REFLECT THE PORTFOLIO'S GROSS (TOTAL) EXPENSES, REDUCED BY
FEES OFFSET BY EARNINGS CREDITS, FEE WAIVERS AND EXPENSE REIMBURSEMENTS.
~ ANNUALIZED.
+ BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
July 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Portfolio is a series of the Berger/BIAM Worldwide
Portfolios Trust (the "Trust") , which was organized as a Delaware business
trust on May 31, 1996. All costs in organizing the Trust were paid by BBOI
Worldwide LLC, the investment advisor of the Portfolio ("BBOI"). The Portfolio
commenced investment operations on October 11, 1996 ("Commencement of
Investment Operations") with the sale of 448,161 shares of beneficial interest
to the 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.
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 will be determined by
using pricing services which provide market prices to other mutual funds or, as
needed, by obtaining market quotations from independent broker/dealers.
Short-term money market securities maturing within 60 days are valued on the
amortized cost basis, which approximates market value. All assets and
liabilities initially expressed in terms of non-U.S. dollar currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers shortly before the close of the Exchange. Securities and
assets for which quotations are not readily available are valued at fair values
determined in good faith pursuant to consistently applied procedures
established by the trustees.
Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of the Exchange. The values of
foreign securities used in computing the net asset value of the shares in the
portfolio are determined as of the earlier of such market close or the closing
time of the Exchange. Occasionally, events affecting the value of such
securities may occur between the times at which they are determined and the
close of the Exchange, or when the foreign market on which such securities
trade is closed but the Exchange is open, which will not be reflected in the
computation of net asset value. If during such periods, events occur which
materially affect the value of such securities, the securities will be valued
at their fair market value as determined in good faith pursuant to consistently
applied procedures established by the trustees.
19
<PAGE>
FEDERAL INCOME TAXES
The Portfolio intends to be treated as a partnership for Federal income tax
purposes. As such, each investor in the Portfolio will be 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.
SECURITY GAINS AND LOSSES
Gains and losses are computed on the identified cost basis for both
financial statement and Federal income tax purposes for all securities. Assets
and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may 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.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio pursuant to an
agreement which provides for an investment advisory fee to be paid to BBOI at
the annual rate of .90 of 1% of the Portfolio's average daily net assets. Until
at least April 30, 1998, BBOI has agreed voluntarily to waive its advisory fee
to the extent that the Portfolio's normal operating expenses in any fiscal year
(including the investment advisory fee and custodian fees, but excluding
brokerage commissions, interest, taxes and extraordinary expenses) exceed 1.00%
of the Portfolio's average daily net assets for that fiscal year. BBOI is also
responsible for providing for or arranging for all managerial and administrative
services necessary for the operations of the Portfolio. BBOI has delegated the
daily portfolio management of the Portfolio to BIAM. For such services, BBOI
pays BIAM a sub-advisory fee equal to .45% of the average daily net assets of
the Portfolio. Such sub-advisory fee has been voluntarily waived by BIAM from
the Commencement of Operations through July 31, 1997, except for the amount
payable on the Citizens NH converted assets.
20
<PAGE>
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 Operations through
July 31, 1997, the Fund received $57,888 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 the
Advisor or BIAM. Trustees who are not affiliated with the Advisor or BIAM are
compensated for their services according to a fee schedule, allocated among the
Berger Funds 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 operations through July 31, 1997, totaled
$36,109.
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
July 31, 1997 were as follows:
Purchase of Sales of
Investment Securities Investment Securities
--------------------- ---------------------
$ 89,505,618 $ 7,790,854
There were no purchases or sales of long-term U.S. Government securities
during the period.
At July 31, 1997, the composition of unrealized appreciation (the excess of
value over tax cost) and unrealized depreciation (the excess of tax cost over
value) for securities held was as follows:
Appreciation Depreciation Net
------------ ------------ -------------
$11,187,925 $2,387,401 $8,800,524
4. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust changed the fiscal year
end of the Portfolio from July 31 to September 30.
21
<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
Together we can move mountains...the world over.-TM-
-C-1997 Berger Associates, Inc.
22
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
SEMI-ANNUAL REPORT
JULY 31, 1997
TABLE OF CONTENTS
Portfolio Manager's Letter
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Financial Highlights
1
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
Bank of Ireland Asset Management (U.S.) Limited (BIAM)* is an active
international equity manager, pursuing a value style through the use of
fundamental analysis.
We are bottom-up stock pickers, selecting stocks within a framework of economic
themes. These broad-based trends are derived from a wide spectrum of global
events, which can be social, economic and/or technological, in nature. They are
an important part of the process that ultimately allows us to identify the ideas
that we believe will generate above average growth over the long term.
FUND REVIEW:
During the early part of the year no individual theme made a significant
contribution--either positive or negative--to overall performance although there
were a number of good individual stock performances which helped the portfolio,
particularly in the Healthcare Needs and Positive Banking Environment themes.
In Healthcare, Roche, Zeneca, Glaxo-Wellcome and Novartis did well during the
first part of the year and continued to improve through the end of July.
In April, Novartis purchased Merck's agribusiness division and in May it
released its first-quarter sales figures which revealed an increase of 8%,
considerably ahead of expectations. This was seen as evidence that the benefits
of the merger were having a quicker-than-expected impact on the company's
performance. The market received this news very well and Novartis' share price
rose by 29% over the second quarter. Both Zeneca and Glaxo-Wellcome continued
to prosper, also based on optimism for prospective sales growth from new drugs.
Positive Banking Environment stocks Lloyds TSB, ABN-Amro and National Australia
Bank reported profit increases ranging from 14% to 52% during the period. This
strong performance continued into the second three months of 1997, with Banco de
Santander posting good first quarter results and HSBC Holdings gaining 29% over
the period, assisted by the strong performance of the Hong Kong market in
general.
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. This has
taken place for a variety of reasons ranging from poor company results--as was
the case with HM Sampoerna which announced poor sales forecasts--to the domino
effect of financial crises which caused poor performance by Bangkok Bank.
The currency hedging program again added value over the period. At the end of
July hedges were in place against the British Pound, the Deutschemark, the Swiss
Franc and the Dutch Guilder. Approximately 17% of the portfolio is currently
hedged.
2
<PAGE>
ECONOMIC & MARKET REVIEW
With the notable exception of the developing markets in the Pacific Basin,
equity markets worldwide have thus far done well during 1997. 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-highs over the last six
months.
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. The initial actions of the
country's new Labour government have been a source of encouragement to the
market, although the administration's fiscal and monetary policies will be
analyzed very closely.
The weakness of the Deutschemark stimulated a recovery in Germany's
export-oriented manufacturing sector in the early part of the year and during
the second quarter, foreign orders have increased at a steady pace. Their
domestic economy remains in the doldrums, however, and unemployment remains at,
or close to record levels.
Far Eastern markets performed poorly during the first three months due to fears
about the upward direction of U.S. interest rates and continued net outflows by
foreign investors. During the second quarter in Malaysia, concern about strong
consumer spending, a rising level of imports, high labor costs and a possible
oversupply of property all contributed to drive the market downwards. The
ongoing financial crisis in Thailand resulted in a 25% decline in the market
during the latter part of the period.
The Japanese market, on the other hand, rebounded strongly, gaining 22% during
the second quarter. Despite continued speculation that interest rates are set
to rise, coupled with a mixed picture on the domestic economy's future growth
prospects, foreigners continue to increase their investments in Japan. Little
attention is being paid to the current paltry state of the financial sector
where banks are continuing to struggle under the burden of their bad debts which
are estimated, by the most optimistic of forecasters, to absorb profits for the
next 3.3 years.
OUTLOOK:
Our outlook for the remainder of the year remains the same. The low-growth,
low-inflationary environment, which prevails globally, will continue to provide
a favorable backdrop for equity investments. Nevertheless the upward movement
of most markets has driven up valuations relative to earnings growth and this
fact remains uppermost in our minds. These gains have pushed many multiples to
very high levels and are occurring against an interest rate background which, if
anything, is deteriorating. Many stock prices, especially the blue chips, and
even more so, some financials have increased beyond their fundamental values.
Based on relative valuations levels, this has led us to move from some of the
more highly priced U.K. and continental European stocks, switching the proceeds
into a number of selected Japanese holdings where valuation levels are looking
increasingly reasonable.
3
<PAGE>
Overall, global economic conditions remain on the positive side, with few
general signs of real inflationary pressures. The only exceptions to this are
the U.K. where there have been some interest rate rises and where the currency
is becoming less competitive, and some of the smaller Far Eastern countries in
recent months. The debate on the introduction of the Euro in 1999 and the likely
list of initial participants continues to be a major focus in Europe but the
general consensus is that European monetary union will go ahead on schedule.
Thank you for your continued confidence and investment in the Fund.
Bank of Ireland Asset Management (U.S.) Limited
Portfolio Managers
* Investments in the Berger/BIAM International CORE Fund are not insured by
the Federal Deposit Insurance Corporation, are not deposits, and are not
obligations of, or endorsed or guaranteed in any way by, any bank.
TOP TEN HOLDINGS AS OF JULY 31, 1997
% of Portfolio's Net Assets
-----------------------------
Company at 7/31/97 at 1/31/97
------- ---------- ----------
1. Novartis 4.5% 3.7%
2. National Australia Bank 3.3% 3.1%
3. Canon 3.0% 2.0%
4. Barclays Bank 2.6% 1.9%
5. B.A.T. Industries 2.5% 2.2%
6. Lloyds TSB Group 2.5% 2.0%
7. Schw Ruckverischer 2.4% 1.5%
8. ING Groep 2.3% 1.9%
9. ABN Amro Holdings 2.3% 2.3%
10. Mannesmann 2.0% 2.0%
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN BERGER/BIAM INTERNATIONAL
CORE FUND VS. EAFE INDEX AND COST OF LIVING INDEX (DESCRIPTION OF BERGER/BIAM
INTERNATIONAL CORE FUND PERFORMANCE LINE GRAPH)
The following table reflects data presented in a line graph at this point in the
Semi-Annual Report to Shareholders. The graph compares the value of shares
invested in the Berger/BIAM International CORE Fund to the EAFE Index and to the
Cost of Living Index. The graph is based on an initial investment of $10,000 on
July 31, 1989 with all dividends and capital gains reinvested. Also included is
a smaller chart reflecting the Berger/BIAM International CORE Fund's Average
Annual Total Return as of July 31, 1997 for 1 year - 26.9%, 3 years - 15.3%, 5
years - 14.5% and since inception (July 31, 1989) - 14.5%.
4
<PAGE>
Berger/BIAM
International Cost of Living
Date CORE Fund EAFE Index
---- ------------- ---- --------------
7/31/89 $ 10,000 $ 10,000 $ 10,000
7/31/90 $ 13,460 $ 9,328 $ 10,482
7/31/91 $ 12,580 $ 8,567 $ 10,949
7/31/92 $ 15,050 $ 7,933 $ 11,294
7/31/93 $ 16,400 $ 10,169 $ 11,608
7/31/94 $ 19,300 $ 11,636 $ 11,929
7/31/95 $ 21,910 $ 12,482 $ 12,259
7/31/96 $ 23,310 $ 12,961 $ 12,621
7/31/97 $ 29,573 $ 15,352 $ 12,886
FOOTNOTE TO LINE GRAPH AND AVERAGE ANNUAL TOTAL RETURNS
Total return data for the Fund for periods prior to October 11, 1996, reflect
the performance of the pool of assets transferred on that date into the
Berger/BIAM International Portfolio in which all of the Fund's assets are
invested, adjusted at that time for any increase in expenses anticipated in
operating the Fund, including the Fund's pro rata share of the aggregate annual
operating expenses, net of fee waivers, of the Portfolio. The asset pool was
not registered with the Securities and Exchange Commission and therefore was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the pool had been registered its performance might have been
adversely affected. Performance figures are based on historical results and are
not intended to be indicative of future performance. The investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
5
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JULY 31, 1997
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio") $ 75,458,520
- --------------------------------------------------------------------------------
Total Assets 75,458,520
- --------------------------------------------------------------------------------
LIABILITIES
Accrued administrative fee (Note 2) 6,202
- --------------------------------------------------------------------------------
Total Liabilities 6,202
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 75,452,318
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Capital Shares:
Authorized (par value $0.01) Unlimited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Shares Outstanding 6,356,326
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 11.87
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF OPERATIONS (UNAUDITED)
FOR THE PERIOD FROM OCTOBER 11, 1996 (COMMENCEMENT
OF INVESTMENT OPERATIONS) TO JULY 31, 1997
INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividend income (net of $82,068 foreign withholding taxes) $ 745,128
Portfolio expenses (247,828)
- --------------------------------------------------------------------------------
Net Investment Income allocated from Portfolio 497,300
- --------------------------------------------------------------------------------
FUND EXPENSES
Administrative fees (Note 2) 29,112
- --------------------------------------------------------------------------------
Total Fund Expenses 29,112
- --------------------------------------------------------------------------------
Net Investment Income (Loss) 468,188
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND FOREIGN
CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized gain (loss) on investment and foreign
currency transactions 606,269
Net change in unrealized appreciation (depreciation) of investment
and foreign currency transactions 6,132,691
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investment and Foreign
Currency Transactions Allocated from Portfolio 6,738,960
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 7,207,148
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF CHANGED IN NET ASSETS (UNAUDITED)
FOR THE PERIOD FROM OCTOBER 11, 1996 (COMMENCEMENT
OF INVESTMENT OPERATIONS) TO JULY 31, 1997
FROM OPERATIONS:
Net investment income (loss) $ 468,188
Net realized gain (loss) on investment and foreign currency
transactions allocated from portfolio 606,269
Net unrealized gain (loss) on investment and foreign currency
transactions allocated from portfolio 6,132,691
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 7,207,148
- --------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0
Net realized gain 0
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Distributions to
Shareholders 0
- --------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 71,263,407
Net asset value of shares issued in reinvestment of dividends 0
- --------------------------------------------------------------------------------
Total 71,263,407
Payments for shares redeemed (3,018,237)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share
Transactions 68,245,170
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 75,452,318
Net Assets:
Beginning of period 0
- --------------------------------------------------------------------------------
End of period $ 75,452,318
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Undistributed (distribution in excess of) net investment income
included in the above $ 468,188
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS:
Capital (par value and paid in surplus) $ 68,245,170
Accumulated net investment income (loss) 468,188
Accumulated net realized gain (loss) 606,269
Unrealized appreciation (depreciation) of investment and foreign
currency transactions 6,132,691
- --------------------------------------------------------------------------------
Total $ 75,452,318
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 6,627,240
Shares issued to shareholders in reinvestment of dividends 0
- --------------------------------------------------------------------------------
Total 6,627,240
Shares repurchased (270,914)
- --------------------------------------------------------------------------------
Net increase (decrease) in shares 6,356,326
Shares outstanding, beginning of period 0
- --------------------------------------------------------------------------------
Shares outstanding, end of period 6,356,326
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JULY 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International CORE Fund (the "Fund") is a series of the
Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware business trust,
organized on May 31, 1996. The Fund and the Trust are registered under the
Investment Company Act of 1940, as amended, as open-end management investment
companies. The Trust is authorized to issue an unlimited number of shares of
beneficial interest in series or portfolios. Currently, the series comprising
the Fund, Berger/BIAM International Fund and 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 (75% at July 31,
1997). The Portfolio is an open-end management investment company and has the
same investment objective and policies as the Fund. The performance of the Fund
will 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 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
The price of the Fund's shares is based on the net asset value of the Fund,
which is determined at the close of the regular trading session of the New York
Stock Exchange (the "Exchange") (normally 4:00 p.m., New York time) each day
that the Exchange is open. The per share net asset value of the Fund is
determined by dividing the total value of its assets, less liabilities, by the
total number of shares outstanding. Since the Fund will invest all of its
investable assets in the Portfolio, the value of the Fund's investable assets
will be equal to the value of its beneficial interest in the Portfolio.
Valuation of securities by the Portfolio is discussed in Note 1 of the
Portfolio's Notes to Financial Statement which accompany these Financial
Statements for the Fund.
INCOME AND EXPENSES
As an investor in the Portfolio, the Fund is allocated its pro rata share
of the aggregate investment income and annual operating expenses of the
Portfolio including the investment advisory fee, custodian fees, independent
accountants' fees, record keeping and pricing agent fees. Such investment
income and expenses are allocated on the day the expense is incurred in
proportion to the prior day's relative net assets of the Fund and other
investors in the Portfolio.
FEDERAL INCOME TAXES
Each series of the Trust is treated as a separate entity for Federal income
tax purposes. The Fund's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no income tax
provision is required.
9
<PAGE>
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 their
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatments for
net operating losses and expiring capital loss carryforwards. Accordingly,
these permanent differences in the character of income and distributions between
financial statements and tax basis will be reclassified to paid-in-capital. At
July 31, 1997, no such differences existed.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the Advisor
serves as the administrator of the Fund. Pursuant to such Agreement, the Fund
pays the Advisor a fee at an annual rate equal to the lesser of 0.10% of its
average daily net assets or the Advisor's annual cost to provide or procure such
services plus 0.01% of the Fund's average daily net assets. Under the
Agreement, the Advisor is responsible, at its own expense, for providing or
procuring all administrative services reasonably necessary for the operation of
the Fund, including recordkeeping and pricing services, custodian services,
transfer agency and dividend disbursing services, tax and audit services,
insurance, legal services, printing and mailing to shareholders of prospectuses
and other required communication and certain other administrative services. The
Advisor has delegated the administration of the Fund to Berger. For such
services, the Advisor pays Berger a sub-administration fee equal to 0.25% of the
Fund's average daily net assets.
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
recordkeeping and pricing services to the Fund, including calculating the net
asset value of the Fund, and to perform certain accounting and recordkeeping
functions that it requires. In addition, IFTC has been appointed to serve as
the Fund's custodian, transfer agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and directors of
the Advisor or Sub-Advisor. Trustees who are not affiliated with the
Portfolio's Advisor or Sub-Advisor are compensated for their services according
to a fee schedule, allocated among the Berger Funds and Berger/BIAM Portfolio,
which includes an annual fee component and a per meeting component. Such fees
are allocated directly to the Portfolio and indirectly to the Fund.
3. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust changed the fiscal year
end of the Fund from July 31 to September 30.
10
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD FROM OCTOBER 11, 1996
(COMMENCEMENT OF INVESTMENT OPERATIONS) TO JULY 31, 1997
- --------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income From Investment Operations:
Net investment income 0.07
Net realized and unrealized gain (loss) on investment
and foreign currency transactions allocated from Portfolio 1.80
- --------------------------------------------------------------------------------
Total from investment operations 1.87
- --------------------------------------------------------------------------------
Net Asset Value, End of Period $ 11.87
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total return* 18.70%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Ratios/Supplementary Data:
Net assets, end of period $ 75,452,318
Ratios to average net assets~:
Gross expenses^ 1.25%
Net expenses^ .95%
Net investment income (loss) 1.61%
* BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
~ ANNUALIZED.
^ REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE OF THE
PORTFOLIO'S GROSS AND NET EXPENSES. THE PORTFOLIO'S NET EXPENSES REFLECT
ITS GROSS EXPENSES, REDUCED BY FEES OFFSET BY EARNINGS CREDITS, FEE WAIVERS
AND EXPENSE REIMBURSEMENTS.
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SEMI-ANNUAL REPORT
JULY 31, 1997
The following pages should be read in conjunction with the Berger/BIAM
International CORE Fund Semi-Annual financial statements.
TABLE OF CONTENTS
Schedule of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
12
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments (Unaudited)
July 31, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Country/Shares Company Industry Market Value
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK - 89.9%
AUSTRALIA - 6.7 %
106,970 Broken Hill Proprietary Resources $ 1,455,643
208,600 National Australia Bank Financials 3,041,452
327,530 News Corporation Media 1,493,370
135,150 Western Mining Resources 785,052
-------------
6,775,517
-------------
FINLAND - .5%
19,800 Upm Kymmene Paper, Packaging & Printing 480,435
-------------
FRANCE - 2.1%
3,230 Elf Aquitaine Utilities 367,527
15,400 Michelin Auto Goods 955,955
8,180 Total Co. Francaise Petrole 'B' Utilities 818,862
-------------
2,142,344
-------------
GERMANY -6.4%
33,645 Hoechst Healthcare 1,576,838
4,477 Mannesmann Electrical/Engineering 2,086,083
15,490 Siemens Electrical/Engineering 1,076,973
29,740 Veba Utilities 1,725,532
-------------
6,465,426
-------------
GREAT BRITAIN - 29.8%
290,340 BAT Industries Tobacco/Financial Services 2,452,660
122,950 Barclays Bank Financials 2,591,522
323,500 BTR Conglomerates 1,005,557
103,000 Cable & Wireless Telecommunications 1,037,358
105,750 Cadbury Schweppes Food Manufacturing 1,022,557
61,400 EMI Group - Class B Leisure & Entertainment 110,786
93,420 EMI Group Leisure & Entertainment 856,594
203,350 General Electric Co. Electrical/Engineering 1,174,114
83,300 Glaxo Wellcome Healthcare 1,763,983
126,200 Granada Group Leisure & Entertainment 1,738,849
112,700 Grand Metropolitan Retailer/Consumer Goods 1,106,398
66,400 Kingfisher Retailer/Consumer Goods 784,195
158,900 Ladbroke Group Leisure & Entertainment 643,790
213,100 Lloyds TSB Group Financials 2,355,953
41,800 Premier Farnell Distributor of Components 351,736
146,080 Prudential Insurance 1,399,352
178,050 Safeway Retailer/Consumer Goods 1,125,874
126,400 Scottish Power Utilities 893,609
250,350 Shell Transport & Trading Company Utilities 1,852,027
87,841 Siebe Electrical/Engineering 1,584,941
130,900 TI Group Electrical/Engineering 1,168,051
200,500 Vodafone Group Telecommunications 1,012,951
58,575 Zeneca Group Healthcare 1,945,632
-------------
29,978,489
-------------
13
<PAGE>
HONG KONG - 1.6%
45,000 HSBC Holdings Financials $ 1,569,463
-------------
INDONESIA - 2.6%
256,000 Gudang Garam Tobacco 966,730
304,000 HM Sampoerna Tobacco 1,063,709
409,000 Telekomunikasi Telecommunications 625,621
-------------
2,656,060
-------------
IRELAND - 1.2%
47,230 Allied Irish Banks Financials 436,610
257,100 Smurfit (Jefferson) Group Paper, Packaging & Printing 778,515
-------------
1,215,125
-------------
ITALY - 1.4%
42,206 ENI SPA ITL Utilities 246,215
189,380 Telecom Italia Telecommunications 1,201,188
-------------
1,447,403
-------------
JAPAN - 6.9%
94,000 Canon Retailer/Consumer Goods 2,998,354
33,000 Honda Motor Engineering/Vehicles 1,102,738
37,000 Kao Corporation Household Goods 555,757
4,000 Murata Manufacturing Electronic & Electrical Equipment 188,009
4,000 Rohm Company Electronic & Electrical Equipment 523,185
20,000 Shiseido Retailers General 332,475
7,000 Sony Corporation Electronic & Electrical Equipment 697,017
20,000 Takeda Chemical Pharmaceuticals 605,882
-------------
7,003,417
-------------
MALAYSIA - 2.7%
103,000 Hume Industries Infrastructure/Property 390,818
203,000 RHB Capital Financials 550,730
304,400 Sime Darby Conglomerates 958,649
118,000 United Engineers Infrastructure/Property 823,828
-------------
2,724,025
-------------
MEXICO - .6%
203,670 Grupo Financiero Banamex - Class B Financials 626,857
-------------
NETHERLANDS - 9.0%
87,430 ABN Amro Holdings Financials 2,051,280
86,600 Elsevier Media 1,522,811
47,852 ING Groep Financials 2,323,785
28,005 KON PTT Nederland Telecommunications 1,146,806
6,250 Nutricia Ver Bedrijven Food Manufacturing 1,059,883
16,800 Royal Dutch Petroleum Utilities 939,673
-------------
9,044,238
-------------
PHILIPPINES - .4%
208,370 San Miguel - Class B Food & Drinks 444,554
-------------
SINGAPORE - 5.2%
165,000 City Development Infrastructure/Property 1,402,584
148,412 Development Bank of Singapore Financials 1,927,691
94,600 Fraser and Neave Food & Drinks 643,319
68,100 Singapore Press Holdings Media 1,292,071
-------------
5,265,665
-------------
SPAIN - .9%
32,380 Banco De Santander Financials 902,506
-------------
SWITZERLAND - 11.2%
1,404 Alusuisse Lonza Holdings Conglomerates 1,273,417
1,272 Nestle Food Manufacturing 1,610,137
2,941 Novartis Healthcare 4,709,601
161 Roche Holdings Healthcare 1,553,183
1,507 Schw Ruckverischer Insurance 2,185,945
-------------
11,332,283
-------------
14
<PAGE>
THAILAND - .7%
97,100 Bangkok Bank Financials $ 747,851
-------------
TOTAL COMMON STOCK (Cost $82,021,134) 90,821,658
-------------
U.S. GOVERNMENT OBLIGATIONS - 4.9%
$5,000,000 U.S. Treasury Bills due 8/21/97 (Amortized cost $4,986,444) 4,986,444
-------------
REPURCHASE AGREEMENT - 3.2%
Repurchase agreement with State Street Bank, 4.25%, dated
July 31, 1997, to be purchased at $3,252,384 on August 1, 1997,
collateralized by U.S. Treasury Notes, 6.125% - March 31, 1998,
with a value of $3,332,069 (Amortized cost $3,252,000) 3,252,000
-------------
Total Investments (Cost $90,259,578*) - 98.0% 99,060,102
Other Assets, Less Liabilities - 2.0% 1,980,340
-------------
Net Assets - 100% $ 101,040,442
-------------
-------------
</TABLE>
*Also represents cost for Federal income tax purposes.
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Assets and Liabilities (Unaudited)
July 31, 1997
- --------------------------------------------------------------------------------
ASSETS
Investments at value (cost $90,259,578) $ 99,060,102
Cash 668
Foreign currency at value (cost $1,725,044) 1,717,907
Net unrealized appreciation on open forward currency contracts 694,343
Receivables:
Beneficial interests sold 527
Interest and dividends 254,070
Investment securities sold 2,330,182
- --------------------------------------------------------------------------------
Total Assets 104,057,799
- --------------------------------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 3,017,357
- --------------------------------------------------------------------------------
Total Liabilities 3,017,357
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' BENEFICIAL INTERESTS $ 101,040,442
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Operations (Unaudited)
For the Period From October 11, 1996 (commencement
of investment operations) to July 31, 1997
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend income (net of $120,766 foreign withholding taxes) $ 975,005
Interest 106,243
- --------------------------------------------------------------------------------
Total Investment Income 1,081,248
- --------------------------------------------------------------------------------
EXPENSES:
Investment advisory fee (Note 2) 396,476
Accounting services 49,136
Trustees' fees and expenses (Note 2) 36,109
Custody fees 8,752
Legal fees 2,490
Postage, printing and reports 5,470
Insurance and bonds 3,750
Miscellaneous 516
- --------------------------------------------------------------------------------
Total Expenses 502,699
Less earnings credits (57,888)
Less expenses reimbursed by Advisor (Note 2) (62,850)
- --------------------------------------------------------------------------------
Expenses - Net 381,961
- --------------------------------------------------------------------------------
Net Investment Income (Loss) 699,287
- --------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON
Investment transactions 306,369
Foreign currency transactions 622,104
- --------------------------------------------------------------------------------
Net Realized Gain (Loss) 928,473
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) OF
Investments 8,233,848
Foreign currency contracts and translations 711,630
- --------------------------------------------------------------------------------
Net Change in Unrealized Appreciation (Depreciation) 8,945,478
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 10,573,238
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Statement of Changes in Net Assets (Unaudited)
For the Period From October 11, 1996 (commencement
of investment operations) to July 31, 1997
- --------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income (loss) $ 699,287
Net realized gain (loss) on investments and foreign
currency transactions 928,473
Net change in unrealized appreciation (depreciation) of
investments and foreign currency transactions 8,945,478
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Operations 10,573,238
- --------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO INVESTORS':
Net investment income 0
Net realized gain 0
- --------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Investors' 0
- --------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST:
Contributions 102,382,686
Withdrawals (11,915,482)
- --------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets from Investors'
Transactions 90,467,204
- --------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 101,040,442
Net Assets:
Beginning of period 0
- --------------------------------------------------------------------------------
End of period $101,040,442
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA (UNAUDITED)
For the period from October 11, 1996 (commencement of investment
operations) to July 31, 1997
Ratios to Average Net Assets~:
Gross Expenses* 1.14%
Net Expenses* 0.87%
Net Investment Income 1.59%
Portfolio Turnover+ 18%
Average Commission Rate $.0235
* NET EXPENSES REFLECT THE PORTFOLIO'S GROSS (TOTAL) EXPENSES, REDUCED BY
FEES OFFSET BY EARNINGS CREDITS, FEE WAIVERS AND EXPENSE REIMBURSEMENTS.
~ ANNUALIZED.
+ BASED ON OPERATIONS FOR THE PERIOD SHOWN AND, ACCORDINGLY, IS NOT
REPRESENTATIVE OF A FULL YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
Notes to Financial Statements (Unaudited)
July 31, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is registered
under the Investment Company Act of 1940, as amended, as an open-end
management investment company. The Portfolio is a series of the Berger/BIAM
Worldwide Portfolios Trust (the "Trust") , which was organized as a Delaware
business trust on May 31, 1996. All costs in organizing the Trust were paid
by BBOI Worldwide LLC, the investment advisor of the Portfolio ("BBOI"). The
Portfolio commenced investment operations on October 11, 1996 ("Commencement
of Investment Operations") with the sale of 448,161 shares of beneficial
interest to the 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.
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 will be
determined by using pricing services which provide market prices to other
mutual funds or, as needed, by obtaining market quotations from independent
broker/dealers. Short-term money market securities maturing within 60 days
are valued on the amortized cost basis, which approximates market value. All
assets and liabilities initially expressed in terms of non-U.S. dollar
currencies are translated into U.S. dollars at the prevailing market rates as
quoted by one or more banks or dealers shortly before the close of the
Exchange. Securities and assets for which quotations are not readily
available are valued at fair values determined in good faith pursuant to
consistently applied procedures established by the trustees.
Generally, trading in foreign securities markets is substantially
completed each day at various times prior to the close of the Exchange. The
values of foreign securities used in computing the net asset value of the
shares in the portfolio are determined as of the earlier of such market close
or the closing time of the Exchange. Occasionally, events affecting the
value of such securities may occur between the times at which they are
determined and the close of the Exchange, or when the foreign market on which
such securities trade is closed but the Exchange is open, which will not be
reflected in the computation of net asset value. If during such periods,
events occur which materially affect the value of such securities, the
securities will be valued at their fair market value as determined in good
faith pursuant to consistently applied procedures established by the trustees.
19
<PAGE>
FEDERAL INCOME TAXES
The Portfolio intends to be treated as a partnership for Federal income tax
purposes. As such, each investor in the Portfolio will be 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.
SECURITY GAINS AND LOSSES
Gains and losses are computed on the identified cost basis for both
financial statement and Federal income tax purposes for all securities.
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one
or more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S.
dollars at rates of exchange prevailing when accrued.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ
from those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may 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.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio pursuant to
an agreement which provides for an investment advisory fee to be paid to BBOI
at the annual rate of .90 of 1% of the Portfolio's average daily net assets.
Until at least April 30, 1998, BBOI has agreed voluntarily to waive its
advisory fee to the extent that the Portfolio's normal operating expenses in
any fiscal year (including the investment advisory fee and custodian fees,
but excluding brokerage commissions, interest, taxes and extraordinary
expenses) exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging for all
managerial and administrative services necessary for the operations of the
Portfolio. BBOI has delegated the daily portfolio management of the
Portfolio to BIAM. For such services, BBOI pays BIAM a sub-advisory fee equal
to .45% of the average daily net assets of the Portfolio. Such sub-advisory
fee has been voluntarily waived by BIAM from the Commencement of Operations
through July 31, 1997, except for the amount payable on the Citizens NH
converted assets.
20
<PAGE>
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
Operations through July 31, 1997, the Fund received $57,888 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
the Advisor or BIAM. Trustees who are not affiliated with the Advisor or
BIAM are compensated for their services according to a fee schedule,
allocated among the Berger Funds 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 operations through
July 31, 1997, totaled $36,109.
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
July 31, 1997 were as follows:
Purchase of Sales of
Investment Securities Investment Securities
--------------------- ---------------------
$ 89,505,618 $ 7,790,854
There were no purchases or sales of long-term U.S. Government securities
during the period.
At July 31, 1997, the composition of unrealized appreciation (the excess of
value over tax cost) and unrealized depreciation (the excess of tax cost over
value) for securities held was as follows:
Appreciation Depreciation Net
-------------- -------------- --------------
$ 11,187,925 $ 2,387,401 $ 8,800,524
4. CHANGE OF FISCAL YEAR
Effective April 11, 1997, the trustees of the Trust changed the fiscal year
end of the Portfolio from July 31 to September 30.
21
<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
Together we can move mountains...the world over.-TM-
-C-1997 Berger Associates, Inc.
22
