<PAGE>
BERGER FUNDS
SEMI-ANNUAL REPORT
[PHOTO]
March 31, 1999
BERGER NEW GENERATION FUND
BERGER SELECT FUND
BERGER SMALL COMPANY GROWTH FUND
BERGER SMALL CAP VALUE FUND
BERGER MID CAP GROWTH FUND
BERGER MID CAP VALUE FUND
BERGER 100 FUND
BERGER/BIAM INTERNATIONAL FUND
BERGER GROWTH AND INCOME FUND
BERGER BALANCED FUND
<PAGE>
The Berger Funds are presenting a combined semi-annual report which includes
the Berger New Generation Fund, Berger Select Fund, Berger Small Company Growth
Fund, Berger Small Cap Value Fund, Berger Mid Cap Growth Fund, Berger Mid Cap
Value Fund, Berger 100 Fund, Berger BIAM/International Fund, Berger Growth and
Income Fund, and Berger Balanced Fund. This report reflects the financial
position of each Fund at March 31, 1999 and the results of their operations and
changes in their net assets for the periods indicated, in a single document.
<PAGE>
2 A Message to Our Shareholders Contents
THE BERGER FUNDS
4 Berger New Generation Fund
11 Berger Select Fund
16 Berger Small Company Growth Fund
23 Berger Small Cap Value Fund~Investor
Shares/Institutional Shares
29 Berger Mid Cap Growth Fund
35 Berger Mid Cap Value Fund
42 Berger 100 Fund
48 Berger/BIAM International Fund
52 Berger Growth and Income Fund
58 Berger Balanced Fund
64 BERGER FUNDS NOTES TO FINANCIAL STATEMENTS
69 BERGER/BIAM INTERNATIONAL PORTFOLIO (TO BE READ IN
CONJUNCTION WITH THE BERGER/BIAM INTERNATIONAL FUND)
74 BERGER/BIAM INTERNATIONAL PORTFOLIO NOTES TO FINANCIAL
STATEMENTS
77 FINANCIAL HIGHLIGHTS
[LOGO] To obtain a prospectus for any of the Berger Funds, which contains more
complete information, including management fees, charges and expenses, call
(800) 551-5849. Please read it carefully before you invest. Berger Distributors,
Inc. ~ Distributor
www.bergerfunds.com
<PAGE>
DEAR FELLOW SHAREHOLDERS
A Message to Our Shareholders
During the first six months of the 1999 fiscal year, most of the Berger
Funds produced performance which was competitive within their respective
investment objective categories. I direct you to the individual fund
commentary included in this report for additional details.
We continued to be disappointed with the performance of the Berger 100
Fund. Therefore, the Board of Directors/Trustees of the Funds and Berger
Associates, Inc. have instituted some management changes of which you
should be advised.
First, I recently assumed responsibility of the operations of the Berger
Funds. My related background is that I worked for nearly twelve years as an
officer of the Janus Funds, most recently serving as Executive Vice
President. I joined Berger Funds in February of this year and am excited
about the potential our Funds offer to investors.
Second, effective May 10, 1999, John Jares and Tino Sellito became the
co-managers of the Berger 100 Fund. John joined Berger in 1997. He was the
lead manager for the Berger Balanced Fund for the one year period ended
March 31, 1999, during which time our Fund achieved a #9 ranking out of 416
balanced funds by Lipper, Inc., placing it in the top 3% in its
category.(1) Tino joined Berger in 1998 as an analyst and became portfolio
manager of the Berger Growth and Income Fund in November. Under Tino's
management, our Fund earned a 4-star overall Morningstar Rating-TM- among
2,947 domestic equity funds for the one year period ended March 31,
1999.(2)
The only way we can thank you for your patience as an investor in the 100
Fund is to return the Fund to a consistent top quartile performer in its
category. John and Tino are committed to achieving just that. We know that
we must meet your expectations and satisfy your investment needs to keep
you as a customer.
Also, effective May 10, the Berger Select Fund is now using a team approach
to investing. This team is comprised of John and Tino, along with managers
Amy Selner (Berger Small Company Growth and Berger Mid Cap Growth Funds)
and Mark Sunderhuse (Berger New Generation Fund). Each team member will
co-manage the Fund's portfolio, looking to create an exciting mix of
companies across all growth categories for our investors.
2 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
Lastly, in April of this year, we introduced a Low Minimum Investment Plan for
Berger investors. This Plan makes it easier and more affordable to invest with
us. It offers investors an alternative to the regular $2,000 minimum initial
investment. You can open an account with as little as $100 so long as you make a
commitment to automatic monthly investments totaling $100 or more.(3) It is
available for any type of account opened in any Fund including Roth and
Traditional IRA's and gifts to minors.
We appreciate your business and desire to earn your trust and confidence in all
of our Funds. The changes described above are intended to help us to help you
achieve your investment goals.
Sincerely,
/s/ Jack R. Thompson
JACK R. THOMPSON
PRESIDENT
This material must be preceded or accompanied by a prospectus, which includes
more complete information including risks, fees and expenses. Please read it
carefully before you invest. Berger Distributors, Inc. - Distributor (5/99)
1. Source: Lipper, Inc. Rankings are based on total return, including
reinvestment of dividends and capital gains for the stated period. Past
performance does not guarantee future results.
2. Source: Morningstar, Inc. Morningstar ratings are calculated from the Fund's
3-, 5- and 10-year average annual returns (if applicable) in excess of 90-day
Treasury bill returns with appropriate fee adjustments, and a risk factor that
reflects fund performance below 90-day T-bill returns. The Growth and Income
Fund received 4, 3 and 4 stars among 2,947, 1,810 and 743 domestic equity funds
for the 3-, 5- and 10-years periods, respectively. Morningstar proprietary
ratings reflect historical risk-adjusted performance as of March 31, 1999. The
ratings are subject to change every month. The top 10% of the funds in a
category receive 5 stars, the next 22.5% receive 4 stars and the next 35%
receive 3 stars. Past performance does not guarantee future results.
3. Periodic investment plans do not assure a profit or protect against a loss in
declining markets. They involve continuous investments regardless of fluctuating
price levels. Investors should consider their financial ability to continue
investing through periods of low prices.
Berger Funds March 31, 1999 Semi-Annual Report 3
<PAGE>
[PHOTO]
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
- - Ticker Symbol BENGX
- --------------------------------------------------------------------------------
- - Fund Number 344
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Mark S. Sunderhuse
- --------------------------------------------------------------------------------
PERFORMANCE
The six-month period, October 1, 1998 through March 31, 1999, proved to be a
favorable one for the Berger New Generation Fund (the "Fund"). Fund performance
benefited from two factors: low interest rates and a high degree of optimism
created by the combination of strong corporate earnings, full employment and the
absence of wage and inflation pressure. As a result, our Fund delivered an
outstanding 49.05%(1) gain for this period, which significantly outpaced the
27.32% gain for the Standard & Poor's (S&P) 500 Index(2) and the 10.00% return
for the Russell 2000 Index.(3)
The market remained narrow and overpriced in certain areas. Investors continued
to be willing to pay a premium for earnings visibility. Small and low end mid
cap stocks were still having a hard time attracting investor attention.
PERIOD IN REVIEW
Our Fund had outstanding returns from stocks in virtually every sector we owned
this period. One of our best-performing sectors was technology. A significant
portion of Fund assets are in the technology sector. Our Fund enjoyed
significant returns from holdings such as Dycom (2.6% of total Fund assets),
AT&T - Liberty Media (3.1% of assets) and At Home (3.9% of assets). We believe
these represent some of America's best technology companies.
Two industry groups that underperformed this period were staffing service
stocks, including IT outsourcing, and selected medical software stocks. Both
experienced problems related to Y2K issues -- many companies are not adding
software at this time because their Y2K testing is close to or already complete.
New software would mean additional testing and approvals. This has created
long-term value opportunities in these groups, and we will monitor their
investment merits closely.
We continue to focus on leading-edge, small and low-end mid cap stocks that have
certain characteristics. These characteristics include a high degree of earnings
reliability, operating in a business sector with good prospects for continued
growth and the ability, in our opinion, to retain and grow their market share
and become a sizeable company. We seek these stocks in all sectors of the
economy.
LOOKING AHEAD
Over the next quarter, we expect the U.S. market to be calm. But we will keep a
close eye on interest rates, wage pressure and the fallout from real or
perceived effects of Y2K, any of which could be problematic for the market. In
the second half of the calendar year, we believe the market will slow as
pressure comes to bear on corporate earnings of selected companies. This could
lead to a summer market downturn, similar to the one that occurred in 1998.
We intend to be nimble and opportunistic in the event of a market correction. We
would look to broaden the reach of our Fund. For example, we would expect to
take advantage of what could be a trend for crude oil and natural gas demand
created by higher prices and selectively add to our portfolio in such areas as
oil and gas exploration and oil service stocks. We will expand our reach into
Internet companies involved in areas such as retailing and infrastructure only
when we see viable business models with management that can see their plan
through. We also believe the market may broaden beyond the current few favored
large cap companies. This would be a welcome development for many investors.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P 500 Index is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the U.S.
stock market. One cannot invest directly in an index.
3. The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of the common stocks of 2000 U.S. companies. It is a generally
recognized indicator used to measure overall performance of small company
stocks. One cannot invest directly in an index.
4 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER NEW GENERATION FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger New S&P 500 Cost of
Generation Fund Index Living Index
<S> <C> <C> <C>
3/29/1996 $10,000 $10,000 $10,000
9/30/1996 $11,820 $10,826 $10,135
3/31/1997 $ 9,643 $12,043 $10,276
9/30/1997 $15,547 $15,199 $10,353
3/31/1998 $16,286 $17,810 $10,417
9/30/1998 $13,371 $16,570 $10,507
3/31/1999 $19,931 $21,041 $10,597
</TABLE>
BERGER NEW GENERATION FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- -------------------------
<S> <C>
1 Year 22.38%
- -------------------------
Life of Fund 25.75%
- -------------------------
(3/29/96)
</TABLE>
*Performance figures are historical and do not
represent future results. Investment returns
and principal value will vary, and you may
have a loss when you sell shares.
Berger Funds March 31, 1999 Semi-Annual Report 5
<PAGE>
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (99.01%) March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
AUTO/TRUCK-ORIGINAL EQUIPMENT (0.51%)
100,000 OEA, Inc. $ 825,000
- --------------------------------------------------------------------------------
BUILDING - HEAVY CONSTRUCTION (2.64%)
97,500 Dycom Industries, Inc.* 4,241,250
- --------------------------------------------------------------------------------
CHEMICALS - SPECIALTY (2.22%)
145,000 ChiRex, Inc.* 3,552,500
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (2.42%)
60,000 TMP Worldwide, Inc.* 3,888,750
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (3.89%)
47,500 Diamond Technology Partners, Inc.* 1,095,468
- --------------------------------------------------------------------------------
45,500 Forrester Research, Inc.* 1,382,062
- --------------------------------------------------------------------------------
25,000 Paychex, Inc. 1,185,937
- --------------------------------------------------------------------------------
65,000 Profit Recovery Group International, Inc.* 2,567,500
- --------------------------------------------------------------------------------
6,230,967
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (0.96%)
75,000 AHL Services, Inc.* 1,537,500
- --------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (1.46%)
28,000 Ascend Communications, Inc.* 2,343,250
- --------------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (2.34%)
30,000 Sun Microsystems, Inc.* 3,748,125
- --------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.59%)
20,000 EMC Corp.* 2,555,000
- --------------------------------------------------------------------------------
COMPUTER - SERVICES (3.38%)
33,400 Acxiom Corp.* 885,100
- --------------------------------------------------------------------------------
130,000 Ciber, Inc.* 2,494,375
- --------------------------------------------------------------------------------
160,000 Tier Technologies, Inc. Class B* 1,390,000
- --------------------------------------------------------------------------------
30,000 Whittman-Hart, Inc.* 645,000
- --------------------------------------------------------------------------------
5,414,475
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (0.75%)
105,000 CBT Group Public Limited Company ADR* 1,200,937
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (8.32%)
75,000 Citrix Systems, Inc.* 2,859,375
- --------------------------------------------------------------------------------
100,000 J.D. Edwards & Company* 1,193,750
- --------------------------------------------------------------------------------
40,000 Keane, Inc.* 852,500
- --------------------------------------------------------------------------------
25,000 Legato Systems* 1,290,625
- --------------------------------------------------------------------------------
13,200 NEON Systems, Inc.* 726,000
- --------------------------------------------------------------------------------
65,100 New Era of Networks, Inc.* 4,410,525
- --------------------------------------------------------------------------------
25,000 VERITAS Software Corp.* 2,018,750
- --------------------------------------------------------------------------------
13,351,525
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET (2.02%)
19,800 Allaire Corp.* $1,346,400
- --------------------------------------------------------------------------------
110,000 Spyglass, Inc.* 990,000
- --------------------------------------------------------------------------------
4,400 Vignette Corp.* 331,100
- --------------------------------------------------------------------------------
11,600 WebTrends Corp.* 564,050
- --------------------------------------------------------------------------------
3,231,550
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - NETWORK (0.96%)
30,000 Check Point Software Technologies Ltd.* 1,290,000
- --------------------------------------------------------------------------------
7,500 Entrust Technologies, Inc.* 253,125
- --------------------------------------------------------------------------------
1,543,125
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - SECURITY (0.83%)
55,000 Axent Technologies, Inc.* 1,323,437
- --------------------------------------------------------------------------------
ELECTRONIC - LASER SYSTEMS/COMPONENTS (0.83%)
14,500 Cymer, Inc.* 288,187
- --------------------------------------------------------------------------------
27,300 Laser Vision Centers, Inc.* 1,040,812
- --------------------------------------------------------------------------------
1,328,999
- --------------------------------------------------------------------------------
ELECTRONIC - MISCELLANEOUS COMPONENTS (1.51%)
192,900 Applied Science and Technology, Inc.* 2,423,306
- --------------------------------------------------------------------------------
ELECTRONIC PRODUCTS - MISCELLANEOUS (0.44%)
25,000 Powerwave Technologies, Inc.* 709,375
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (3.95%)
40,000 Applied Materials, Inc.* 2,467,500
- --------------------------------------------------------------------------------
100,000 Conexant Systems, Inc.* 2,768,750
- --------------------------------------------------------------------------------
20,000 Novellus Systems, Inc.* 1,102,500
- --------------------------------------------------------------------------------
6,338,750
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (5.33%)
72,000 Applied Micro Circuits Corp.* 3,078,000
- --------------------------------------------------------------------------------
46,500 Galileo Technology Ltd.* 1,360,125
- --------------------------------------------------------------------------------
35,700 Helix Technology Corp. 548,887
- --------------------------------------------------------------------------------
49,000 Rambus, Inc.* 3,154,375
- --------------------------------------------------------------------------------
25,000 Zoran Corp.* 409,375
- --------------------------------------------------------------------------------
8,550,762
- --------------------------------------------------------------------------------
ENERGY - ALTERNATE SOURCES (0.93%)
145,000 KTI, Inc.* 1,495,312
- --------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (1.25%)
30,000 Knight/Trimark Group, Inc.* 2,010,000
- --------------------------------------------------------------------------------
</TABLE>
6 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (99.01%) CONTINUED March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET - ISP/CONTENT (7.46%)
20,000 America Online, Inc.* $2,920,000
- --------------------------------------------------------------------------------
40,200 At Home Corp.* 6,331,500
- --------------------------------------------------------------------------------
7,400 Critical Path, Inc.* 569,800
- --------------------------------------------------------------------------------
20,000 Earthlink Network, Inc.* 1,200,000
- --------------------------------------------------------------------------------
6,700 MiningCo.com, Inc.* 599,650
- --------------------------------------------------------------------------------
2,000 Yahoo, Inc.* 336,750
- --------------------------------------------------------------------------------
11,957,700
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (4.33%)
75,000 Concentric Network Corp.* 5,606,250
- --------------------------------------------------------------------------------
10,000 Exodus Communication, Inc.* 1,345,000
- --------------------------------------------------------------------------------
6,951,250
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (1.17%)
25,000 Gemstar International Group Ltd.* 1,881,250
- --------------------------------------------------------------------------------
MEDIA - RADIO/TV (4.53%)
94,822 AT&T Corp. - Liberty Media Group* 4,990,007
- --------------------------------------------------------------------------------
30,000 Jacor Communications, Inc.* 2,280,000
- --------------------------------------------------------------------------------
7,270,007
- --------------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (1.02%)
35,000 Abgenix, Inc.* 529,375
- --------------------------------------------------------------------------------
30,000 Centocor, Inc.* 1,110,000
- --------------------------------------------------------------------------------
1,639,375
- --------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (0.48%)
70,500 Catalytica, Inc.* 775,500
- --------------------------------------------------------------------------------
MEDICAL - GENERIC DRUGS (2.69%)
25,000 Mylan Laboratories, Inc. 685,937
- --------------------------------------------------------------------------------
82,100 Watson Pharmaceuticals, Inc.* 3,622,662
- --------------------------------------------------------------------------------
4,308,599
- --------------------------------------------------------------------------------
MEDICAL - HOSPITALS (1.10%)
37,000 Province Healthcare Co.* 684,500
- --------------------------------------------------------------------------------
25,000 Universal Health Services, Inc.* 1,081,250
- --------------------------------------------------------------------------------
1,765,750
- --------------------------------------------------------------------------------
MEDICAL - INSTRUMENTS (2.33%)
75,000 Ventana Medical Systems, Inc. * 1,678,125
- --------------------------------------------------------------------------------
52,500 Xomed Surgical Products, Inc.* 2,060,625
- --------------------------------------------------------------------------------
3,738,750
- --------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (0.84%)
53,600 Albany Molecular Research, Inc.* 1,340,000
- --------------------------------------------------------------------------------
MEDICAL - PRODUCTS (0.34%)
10,000 Teradyne, Inc.* 545,625
- --------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (1.43%)
115,000 Bergen Brunswig Corp. Class A $2,300,000
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT - EQUIPMENT & AUTOMATION (0.87%)
104,200 Mail-Well, Inc.* 1,393,675
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (0.21%)
40,000 Pride International, Inc.* 330,000
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (1.70%)
43,300 BJ Services Co.* 1,014,843
- --------------------------------------------------------------------------------
22,200 Halliburton Co. 854,700
- --------------------------------------------------------------------------------
60,000 Veritas DGC, Inc.* 851,250
- --------------------------------------------------------------------------------
2,720,793
- --------------------------------------------------------------------------------
OIL & GAS - PRODUCTION/PIPELINE (0.34%)
71,700 Western Gas Resources, Inc. 537,750
- --------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (3.57%)
55,000 Anadarko Petroleum Corp. 2,076,250
- --------------------------------------------------------------------------------
89,100 Evergreen Resources, Inc.* 1,782,000
- --------------------------------------------------------------------------------
207,500 Vintage Petroleum, Inc. 1,867,500
- --------------------------------------------------------------------------------
5,725,750
- --------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (1.41%)
105,000 U.S. Liquids, Inc.* 2,257,500
- --------------------------------------------------------------------------------
RETAIL - WHOLESALE COMPUTERS (1.41%)
217,600 Cellstar Corp.* 2,257,600
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (5.32%)
30,000 ADTRAN, Inc.* 493,125
- --------------------------------------------------------------------------------
57,000 American Tower Corp.* 1,396,500
- --------------------------------------------------------------------------------
61,800 Catapult Communications Corp.* 857,475
- --------------------------------------------------------------------------------
39,600 Digital Microwave Corp.* 331,650
- --------------------------------------------------------------------------------
10,000 Scientific-Atlanta, Inc.* 272,500
- --------------------------------------------------------------------------------
40,000 Tellabs, Inc.* 3,910,000
- --------------------------------------------------------------------------------
11,000 Uniphase Corp.* 1,266,375
- --------------------------------------------------------------------------------
8,527,625
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (7.93%)
63,200 Comcast Corp. 3,886,800
- --------------------------------------------------------------------------------
5,700 Covad Communications Group, Inc.* 374,775
- --------------------------------------------------------------------------------
90,000 Crown Castle International Corp.* 1,620,000
- --------------------------------------------------------------------------------
61,600 Global Crossing Ltd.* 2,849,000
- --------------------------------------------------------------------------------
45,100 MCI WorldCom, Inc.* 3,994,176
- --------------------------------------------------------------------------------
12,724,751
- --------------------------------------------------------------------------------
Total Common Stock
(cost $118,719,617) 158,793,145
- --------------------------------------------------------------------------------
</TABLE>
Berger Funds March 31, 1999 Semi-Annual Report 7
<PAGE>
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REPURCHASE AGREEMENT (1.87%) March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
$2,997,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $2,997,401 on
April 1, 1999, collateralized by
U.S. Treasury Bond -
October 25, 2010, with a
value of $3,058,336. $ 2,997,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $2,997,000) 2,997,000
- --------------------------------------------------------------------------------
Total Investments (cost $121,716,617) (100.88%) 161,790,145
- --------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-0.88%) (1,417,763)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $160,372,382
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
See notes to financial statements.
8 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $121,716,617
- --------------------------------------------------------------------------------
Investments, at value $161,790,145
- --------------------------------------------------------------------------------
Cash 287,717
- --------------------------------------------------------------------------------
Receivables
Investment securities sold 6,031,329
- --------------------------------------------------------------------------------
Fund shares sold 134,613
- --------------------------------------------------------------------------------
Dividends 4,585
- --------------------------------------------------------------------------------
Interest 402
- --------------------------------------------------------------------------------
Total Assets 168,248,791
- --------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 7,346,636
- --------------------------------------------------------------------------------
Fund shares redeemed 287,812
- --------------------------------------------------------------------------------
Accrued investment advisory fees 117,305
- --------------------------------------------------------------------------------
Accrued transfer agent fees 2,900
- --------------------------------------------------------------------------------
Accrued 12b-1 fees 32,585
- --------------------------------------------------------------------------------
Accrued audit fees 9,921
- --------------------------------------------------------------------------------
Accrued administrative service fees 1,303
- --------------------------------------------------------------------------------
Accrued shareholder reports 77,947
- --------------------------------------------------------------------------------
Total Liabilities 7,876,409
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $160,372,382
- --------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- --------------------------------------------------------------------------------
Shares Outstanding 8,801,799
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 18.22
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 33,252
- --------------------------------------------------------------------------------
Interest 230,373
- --------------------------------------------------------------------------------
Total Income 263,625
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 615,704
- --------------------------------------------------------------------------------
Administrative services fee 6,841
- --------------------------------------------------------------------------------
Accounting fees 9,484
- --------------------------------------------------------------------------------
Custodian fees 10,843
- --------------------------------------------------------------------------------
Transfer agent fees 191,583
- --------------------------------------------------------------------------------
Registration fees 19,159
- --------------------------------------------------------------------------------
12b-1 fees 171,028
- --------------------------------------------------------------------------------
Audit fees 9,521
- --------------------------------------------------------------------------------
Legal fees 4,627
- --------------------------------------------------------------------------------
Trustees fees and expenses 5,976
- --------------------------------------------------------------------------------
Reports to shareholders 124,657
- --------------------------------------------------------------------------------
Other expenses 6,474
- --------------------------------------------------------------------------------
Gross Expenses 1,175,897
- --------------------------------------------------------------------------------
Less earnings credits (3,808)
- --------------------------------------------------------------------------------
Net Expenses 1,172,089
- --------------------------------------------------------------------------------
Net Investment Income (Loss) (908,464)
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign
currency transactions 24,838,224
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on
securities and foreign currency transactions 30,042,577
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions 54,880,801
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $53,972,337
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 9
<PAGE>
BERGER NEW GENERATION FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (908,464) $ (1,873,013)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 24,838,224 12,260,073
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 30,042,577 (34,407,514)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 53,972,337 (24,020,454)
- ---------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income -- --
- ---------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (4,494,687) --
- ---------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (4,494,687) --
- ---------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 46,405,779 136,968,651
- ---------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 4,318,233 --
- ---------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (53,521,871) (189,419,648)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (2,797,859) (52,450,997)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 46,679,791 (76,471,451)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 113,692,591 190,164,042
- ---------------------------------------------------------------------------------------------------------------------
End of period $160,372,382 $ 113,692,591
- ---------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 96,646,839 $ 99,444,698
- ---------------------------------------------------------------------------------------------------------------------
Undistributed (distributions in excess of) net investment income (920,641) (12,177)
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 24,572,656 4,229,119
- ---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and
foreign currency transactions 40,073,528 10,030,951
- ---------------------------------------------------------------------------------------------------------------------
Total $160,372,382 $ 113,692,591
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,959,995 9,617,032
- ---------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 305,846 --
- ---------------------------------------------------------------------------------------------------------------------
Shares repurchased (3,442,206) (13,557,048)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (176,365) (3,940,016)
- ---------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 8,978,164 12,918,180
- ---------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 8,801,799 8,978,164
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
10 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
[PHOTO]
BERGER SELECT FUND
- -------------------------------------------------------------------------------
- - Ticker Symbol BESLX
- -------------------------------------------------------------------------------
- - Fund Number 214
- -------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Patrick S. Adams
- -------------------------------------------------------------------------------
PERFORMANCE
The Berger Select Fund (the "Fund") gained 39.33%(1) for the six
months ended March 31, 1999. This was significantly higher than the Standard &
Poor's (S&P) 500 Index,(2) which gained 27.32% over the same period. Since its
inception on December 31, 1997, our Fund has consistently outpaced its
benchmark, the S&P 500 Index.
Our Fund's holdings are normally concentrated in 20 to 30 mid to large cap, high
quality growth stocks. Individual stock positions can be a substantial portion
of total Fund assets.
PERIOD IN REVIEW
The U.S. economy continued its robust growth in the first quarter, driven by
healthy consumer spending, strength in the housing sector, stable inflation
rates and tight labor markets. The global environment is still in question,
however, attention has shifted from Asia to Latin America. The Pacific-Rim
region seems to have bottomed and Latin America, specifically Brazil, will most
likely keep pressure on the Federal Reserve Board to hold down interest rates.
Rising rates would have a negative impact on Brazil and other Latin America
trading partners. All of these factors will continue to have implications for
the U.S. economy going forward.
An overweighting in technology and retail contributed positively to Fund
performance this quarter. Good performers included semiconductor manufacturer
Xilinx (2.3% of total Fund assets) and wide area network provider Ascend
Communications (2.1% of assets). We also took gains in Maxim Integrated Products
(0.9% of assets). We believe the semiconductor industry will continue its
vigorous growth in the near and long term because of its pivotal role in the
build out of electronic commerce and wireless communications.
Specialty retail companies Abercrombie & Fitch (1.2% of assets) and Tommy
Hilfiger (2.4% of assets) also aided performance. We believe this sector will be
able to take advantage of a continued strong domestic economy.
We expect the overall market to begin to catch up to the S&P 500 because the
U.S. economy is enjoying robust growth and the market tends to broaden when the
economy is strong. Our Fund currently has 40% of total assets allocated to
stocks with a market cap of $1 to $10 billion and 35% to stocks with a market
cap over $10 billion. We believe these allocations position our Fund to take
advantage of a broadening market, one in which mid to large cap stocks should
outperform the giant cap stocks because of their substantial discount in
valuation and comparable fundamentals.
LOOKING AHEAD
Although we are optimistic that the market will continue its positive trend,
three things concern us: the temporary effect that Y2K spending patterns have on
hardware and software technology demand and that sector's profitability, a
possible increase in U.S. interest rates triggered by strength in the global
economy and the narrowness of the market. If the market remains narrow, with
performance concentrated in a few of the largest cap securities, we believe we
could see a major correction similar to the one in 1998.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. It is a generally
recognized indicator used to measure overall performance of the U.S. stock
market. One cannot invest directly in an index.
Berger Funds March 31, 1999 Semi-Annual Report 11
<PAGE>
BERGER SELECT FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER SELECT FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger S&P 500 Cost of
Select Fund Index Living Index
<S> <C> <C> <C>
12/31/97 $10,000 $10,000 $10,000
3/31/98 $13,710 $11,394 $10,056
6/30/98 $14,220 $11,770 $10,105
9/30/98 $13,260 $10,601 $10,143
12/31/98 $17,226 $12,857 $10,161
3/31/99 $18,475 $13,498 $10,229
</TABLE>
BERGER SELECT FUND*
TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------------
<S> <C>
1-Year 34.76%
- ----------------------------------
Life of Fund 63.41%
- ----------------------------------
(12/31/97)
</TABLE>
*Performance figures are historical and do not
represent future results. Investment returns
and principal value will vary, and you may
have a loss when you sell shares.
12 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SELECT FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (79.22%) March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
BANKS - MONEY CENTER (2.73%)
45,000 BankAmerica Corp. $3,178,125
- -------------------------------------------------------------------------------
BANKS - SUPER REGIONAL (3.73%)
78,900 Banc One Corp. 4,344,431
- -------------------------------------------------------------------------------
BEVERAGE - SOFT DRINKS (2.96%)
159,100 The Pepsi Bottling Group, Inc.* 3,450,481
- -------------------------------------------------------------------------------
CHEMICALS - PLASTICS (5.09%)
130,200 Household International, Inc. 5,940,375
- -------------------------------------------------------------------------------
COMPUTER - GRAPHICS (17.49%)
791,900 Cadence Design Systems, Inc.* 20,391,425
- -------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (2.77%)
45,000 Tyco International Ltd. 3,228,750
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (0.87%)
35,000 Lam Research Corp.* 1,015,000
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (11.09%)
20,000 Altera Corp.* 1,190,000
- -------------------------------------------------------------------------------
19,800 Maxim Integrated Products, Inc.* 1,071,675
- -------------------------------------------------------------------------------
50,000 Micron Technology, Inc.* 2,412,500
- -------------------------------------------------------------------------------
41,800 Motorola, Inc. 3,061,850
- -------------------------------------------------------------------------------
25,000 Texas Instruments, Inc. 2,481,250
- -------------------------------------------------------------------------------
67,000 Xilinx, Inc.* 2,717,687
- -------------------------------------------------------------------------------
12,934,962
- -------------------------------------------------------------------------------
FINANCE - PUBLICLY TRADED INVESTMENT FUND (4.69%)
42,600 S&P Depositary Receipts 5,474,100
- -------------------------------------------------------------------------------
INSURANCE - DIVERSIFIED (1.25%)
20,800 The Equitable Cos., Inc. 1,456,000
- -------------------------------------------------------------------------------
LEISURE - SERVICES (1.14%)
34,000 Royal Caribbean Cruises Ltd. 1,326,000
- -------------------------------------------------------------------------------
LEISURE - TOYS/GAMES/HOBBIES (1.07%)
50,000 Mattel, Inc. 1,243,750
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (1.12%)
27,600 Chancellor Media Corp.* 1,300,650
- -------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (3.59%)
60,000 Elan Corp. PLC* 4,185,000
- -------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (1.29%)
40,000 Quintiles Transnational Corp.* 1,510,000
- -------------------------------------------------------------------------------
MEDICAL - PRODUCTS (0.89%)
19,000 Teradyne, Inc.* 1,036,687
- -------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (1.41%)
25,000 McKesson HBOC, Inc. 1,650,000
- -------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (4.03%)
105,924 Waste Management, Inc.* 4,700,377
- -------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (1.18%)
14,900 Abercrombie & Fitch Co.* $1,370,800
- -------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (3.10%)
119,300 Consolidated Stores Corp.* 3,616,285
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (3.25%)
54,000 General Instrument Corp.* 1,636,875
- -------------------------------------------------------------------------------
20,000 Lucent Technologies, Inc. 2,155,000
- -------------------------------------------------------------------------------
3,791,875
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (2.05%)
30,000 AT & T Corp. 2,394,375
- -------------------------------------------------------------------------------
TEXTILE - APPAREL MANUFACTURING (2.43%)
41,300 Tommy Hilfiger Corp.* 2,844,537
- -------------------------------------------------------------------------------
Total Common Stock
(cost $85,194,630) 92,383,985
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (17.70%)
- -------------------------------------------------------------------------------
$10,000,000 Federal Home Loan Mortgage Corp.
Discount Note - 4.76%, 4/26/99(1) 9,966,944
- -------------------------------------------------------------------------------
3,000,000 Federal Home Loan Mortgage Corp.
Discount Note - 4.82%, 4/19/99 2,992,875
- -------------------------------------------------------------------------------
5,000,000 Federal Home Loan Mortgage Corp.
Discount Note - 4.76%, 4/14/99 4,991,405
- -------------------------------------------------------------------------------
2,700,000 Federal Home Loan Mortgage Corp.
Discount Note - 4.78%, 4/8/99 2,697,490
- -------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $20,648,714) 20,648,714
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.50%)
- -------------------------------------------------------------------------------
$ 5,243,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to
be repurchased at $5,243,702 on
April 1, 1999, collateralized by U.S.
Treasury Bond - October 25, 2010,
with a value of $5,348,371. 5,243,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $5,243,000) 5,243,000
- -------------------------------------------------------------------------------
Total Investments (cost $111,086,344) (101.42%) 118,275,699
- -------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-1.42%) (1,655,305)
- -------------------------------------------------------------------------------
Net Assets (100.00%) $116,620,394
- -------------------------------------------------------------------------------
OPEN FUTURES CONTRACTS AT MARCH 31, 1999
- -------------------------------------------------------------------------------
Number of Contract Opening Current Realized
Contracts Type Market Value Market Value Gain (Loss)
- -------------------------------------------------------------------------------
20 Long S&P 500
Stock Index
June 1999
Futures $6,576,967 $6,466,500 $(110,467)
- -------------------------------------------------------------------------------
</TABLE>
1. Collateral for futures contracts.
* Non-income producing security.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 13
<PAGE>
BERGER SELECT FUND
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $111,086,344
- -------------------------------------------------------------------------------
Investments, at value $118,275,699
- -------------------------------------------------------------------------------
Cash 254
- -------------------------------------------------------------------------------
Receivables
Investment securities sold 6,489,503
- -------------------------------------------------------------------------------
Fund shares sold 444,639
- -------------------------------------------------------------------------------
Dividends 111,020
- -------------------------------------------------------------------------------
Interest 701
- -------------------------------------------------------------------------------
Total Assets 125,321,816
- -------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 8,247,211
- -------------------------------------------------------------------------------
Fund shares redeemed 226,133
- -------------------------------------------------------------------------------
Variation margin 112,000
- -------------------------------------------------------------------------------
Accrued investment advisory fees 71,664
- -------------------------------------------------------------------------------
Accrued custodian and accounting fees 1,648
- -------------------------------------------------------------------------------
Accrued transfer agent fees 6,230
- -------------------------------------------------------------------------------
Accrued 12b-1 fees 23,888
- -------------------------------------------------------------------------------
Accrued audit fees 7,746
- -------------------------------------------------------------------------------
Accrued administrative service fees 955
- -------------------------------------------------------------------------------
Accrued shareholder reports 3,947
- -------------------------------------------------------------------------------
Total Liabilities 8,701,422
- -------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $116,620,394
- -------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- -------------------------------------------------------------------------------
Shares Outstanding 6,683,524
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 17.45
- -------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 209,032
- --------------------------------------------------------------------------------------------------------------------
Interest 688,422
- --------------------------------------------------------------------------------------------------------------------
Total Income 897,454
- --------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 336,876
- --------------------------------------------------------------------------------------------------------------------
Administrative services fee 4,492
- --------------------------------------------------------------------------------------------------------------------
Accounting fees 3,814
- --------------------------------------------------------------------------------------------------------------------
Custodian fees 9,633
- --------------------------------------------------------------------------------------------------------------------
Transfer agent fees 43,810
- --------------------------------------------------------------------------------------------------------------------
Registration fees 21,052
- --------------------------------------------------------------------------------------------------------------------
12b-1 fees 112,292
- --------------------------------------------------------------------------------------------------------------------
Audit fees 7,346
- --------------------------------------------------------------------------------------------------------------------
Legal fees 2,658
- --------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 3,717
- --------------------------------------------------------------------------------------------------------------------
Reports to shareholders 38,096
- --------------------------------------------------------------------------------------------------------------------
Other expenses 1,272
- --------------------------------------------------------------------------------------------------------------------
Gross Expenses 585,058
- --------------------------------------------------------------------------------------------------------------------
Less fees paid indirectly (5,648)
- --------------------------------------------------------------------------------------------------------------------
Less earnings credits (1,720)
- --------------------------------------------------------------------------------------------------------------------
Net Expenses 577,690
- --------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 319,764
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 17,941,262
- --------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 245,365
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions 7,241,612
- --------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 25,428,239
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $25,748,003
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
14 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SELECT FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Period from
March 31, 1999 December 31, 1997(1) to
(Unaudited) September 30, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 319,764 $ 215,455
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 17,941,262 2,235,808
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 245,365 --
- ---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities
and foreign currency transactions 7,241,612 (52,257)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 25,748,003 2,399,006
- ---------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (369,923) --
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (4,692,943) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (5,062,866) --
- ---------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 113,353,641 70,190,167
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment dividends and distributions 4,474,400 --
- ---------------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (63,463,790) (31,018,167)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 54,364,251 39,172,000
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 75,049,388 41,571,006
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 41,571,006 --
- ---------------------------------------------------------------------------------------------------------------------------
End of period $116,620,394 $41,571,006
- ---------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 93,536,251 $39,172,000
- ---------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 165,296 215,455
- ---------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 15,729,492 2,235,808
- ---------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities
and foreign currency transactions 7,189,355 (52,257)
- ---------------------------------------------------------------------------------------------------------------------------
Total $116,620,394 $41,571,006
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 7,246,420 5,378,776
- ---------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 290,232 --
- ---------------------------------------------------------------------------------------------------------------------------
Shares repurchased (3,989,399) (2,242,505)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 3,547,253 3,136,271
- ---------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 3,136,271 --
- ---------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 6,683,524 3,136,271
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 15
<PAGE>
[PHOTO]
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
- - Ticker Symbol BESCX
- -------------------------------------------------------------------------------
- - Fund Number 345
- -------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Amy K. Selner
- -------------------------------------------------------------------------------
PERFORMANCE
For the first half of our fiscal year ended March 31, 1999, the Berger Small
Company Growth Fund (the "Fund") gained 26.27%,(1) which was significantly
higher than the 10.00% return for the Russell 2000 Index.(2) Our Fund's
performance exceeded that of the 21.56% gain in the Russell 2000 Growth
Index,(3) a more accurate benchmark for our Fund.
In a continued narrow market, marked by volatility in less liquid stocks, small
cap stocks of the Russell 2000 Index continued to underperform their larger cap
peers. The market has been propelled higher only by the largest and most liquid
"nifty fifty" names it favors. Similarly, in the early 1970's, a group of
large-cap stocks captured investor attention and drew ever-higher stock prices
and were referred to as the Nifty Fifty.
PERIOD IN REVIEW
The fourth quarter 1998 marked the end of a six-month bear market for small cap
stocks. From a high on April 22, 1998, small cap stock prices, as measured by
the Russell 2000 Index, fell 37% and bottomed on October 8, 1998. Small cap
growth stocks then staged an impressive rebound through year-end 1998, led by
the technology sector, which smartly outperformed other industry groups.
However, fear of rising interest rates crept into the marketplace and small caps
underperformed dramatically relative to large caps from mid-January through
March 31.
The .75% interest rate cuts by the Federal Reserve Board (Fed) in late September
to mid-November of 1998 acted as a stiff wind at the back of the market through
January. The Fed, no longer signaling further interest rate cuts, took the wind
out of the sails of the market in the near term. An undeniably robust U.S.
economy continued into the first quarter, with strong consumer spending, low
inflation and a tight labor market. At this point we need to see the operating
profit growth of small caps improve relative to large caps for small caps to
outperform.
Our Fund's technology holdings provided solid returns these past six months.
Internet stocks, with their exponential growth fundamentals, were one of the
more resilient sectors of the market. Positive gains were registered by Internet
companies in our portfolio, including Concentric Network (0.8% of total Fund
assets) and Macromedia (1.2% of assets). We continue to believe that the
Internet's growth prospects are explosive as the Internet redefines how we work,
learn and live. There are still many attractive investments, particularly in
Internet infrastructure plays. Growth prospects remain robust for Applied Micro
Circuits (1.1% of assets), which supplies semiconductors for the
telecommunications infrastructure.
Companies in the application integration software industry continue to surge,
including TSI International Software (1.6% of assets). Since technology stocks
have had a nice move, we have pared back risk by buying lower multiple, or less
expensive, technology stocks and selectively selling our more expensive
holdings.
Performance was mixed in the healthcare sector. IDEC Pharmaceuticals (1.5% of
assets), which develops targeted therapies for cancer and other diseases, had a
positive first quarter. Growth fundamentals for Chirex (0.9% of assets), which
manufactures for the pharmaceutical industry, remain strong. We maintain our
focus on companies with robust product pipelines, consistent earnings growth and
strong management.
One major move we made this period was to increase our Fund's exposure to energy
stocks from an underweighted position to overweighting. This proved fortuitous
because supply dynamics within the sector have subsequently improved, energy
prices have risen and energy stocks have been strong performers, including two
of our holdings, Veritas DGC (1.4% of assets) and Atwood Oceanics (1.6% of
assets).
We also increased our exposure to financial stocks as interest rate spreads
between short and long-term bonds widen. Among our favorites is Webster
Financial (0.7% of assets).
LOOKING AHEAD
In the second half of 1999, we expect consumption growth to moderate from
unsustainable high levels. We also expect housing growth to slow by summer and a
slight moderation in capital spending. We expect inflation to remain benign and
the Fed to be neutral on interest rates over the near term. While Europe appears
to be slowing, the Asian economies have bottomed and may be beginning to
improve. The relative valuation or relative multiple on the Russell 2000 Index
versus the S&P 500 Index(4) continues to be at its lowest level in decades. In
order for small cap stocks to regain strength, however, their earnings growth
must improve relative to large caps. Over the near term, we expect the market to
move sideways. It will take a broadening of the market's current narrow
leadership to re-ignite an upward trend.
1. Performance figures are based on historical results and are not intended
to be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2. The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of the common stocks of 2000 U.S. companies. It is a generally
recognized indicator used to measure overall performance of small company
stocks. One cannot invest directly in an index.
3. The Russell 2000 Growth Index is an unmanaged index, with dividends
reinvested, which consists of common growth stocks included in the Russell
2000 Index. Companies in this index tend to exhibit higher price-to-book and
price-earnings ratios. It is a generally recognized indicator used to measure
small company growth stock performance in the U.S. stock market. One cannot
invest directly in an index.
4. The S&P 500 Index is an unmanaged index, with dividends reinvested,
which consists of the common stocks of 500 publicly traded U.S. companies. It
is a generally recognized indicator used to measure overall performance of
the U.S. stock market. One cannot invest directly in an index.
16 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISION OF CHANGE IN VALUE OF BERGER SMALL COMPANY GROWTH FUND VS.
RUSSELL 2000 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Small Company Russell 2000 Cost of Living
Growth Fund Index Index
<S> <C> <C> <C>
12/30/1993 $10,000 $10,000 $10,000
3/31/1994 $10,120 $ 9,734 $10,096
3/31/1995 $11,734 $10,271 $10,384
3/31/1996 $16,179 $13,254 $10,679
3/31/1997 $15,800 $13,931 $10,974
3/31/1998 $23,671 $19,784 $11,125
3/31/1999 $21,241 $16,568 $11,317
</TABLE>
BERGER SMALL COMPANY GROWTH FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- -----------------------------
<S> <C>
1 Year -10.27%
- -----------------------------
5 Year 15.98%
- -----------------------------
Life of Fund 15.43%
- -----------------------------
(12/30/93)
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value wil vary, and you may have a loss
when you sell shares.
Berger Funds March 31, 1999 Semi-Annual Report 17
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (88.47%) March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C>
CHEMICALS - SPECIALTY (0.85%)
205,500 ChiRex Inc.* $ 5,034,750
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (1.42%)
246,800 Lamar Advertising Co.* 8,375,775
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (2.09%)
210,000 MedQuist Inc.* 6,300,000
- -------------------------------------------------------------------------------
143,600 ProBusiness Services, Inc.* 6,031,200
- -------------------------------------------------------------------------------
12,331,200
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - SCHOOLS (2.41%)
491,000 Devry, Inc.* 14,239,000
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (2.36%)
300,000 Labor Ready, Inc.* 7,818,750
- -------------------------------------------------------------------------------
230,000 Select Appointments PLC ADR 6,138,125
- -------------------------------------------------------------------------------
13,956,875
- -------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.16%)
134,900 Network Appliance, Inc.* 6,829,312
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (4.46%)
151,200 Globix Corp.* 5,641,650
- -------------------------------------------------------------------------------
250,000 International Integration, Inc.* 8,000,000
- -------------------------------------------------------------------------------
160,000 U.S. Web Corp.* 6,600,000
- -------------------------------------------------------------------------------
283,100 Whittman-Hart, Inc.* 6,086,650
- -------------------------------------------------------------------------------
26,328,300
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (1.15%)
150,500 Macromedia, Inc.* 6,819,531
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (1.26%)
650,000 CBT Group Public Limited Co. ADR* 7,434,375
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (8.07%)
377,500 Aspen Technology, Inc.* 5,355,781
- -------------------------------------------------------------------------------
79,700 Concord Communications, Inc.* 4,542,900
- -------------------------------------------------------------------------------
67,900 Engineering Animation, Inc.* 2,860,287
- -------------------------------------------------------------------------------
120,000 Mercury Interactive Corp.* 4,275,000
- -------------------------------------------------------------------------------
100,000 Peregrine Systems, Inc.* 3,362,500
- -------------------------------------------------------------------------------
94,400 Sapient Corp.* 6,737,800
- -------------------------------------------------------------------------------
350,000 Software A.G. Systems, Inc.* 2,931,250
- -------------------------------------------------------------------------------
195,000 TSI International Software Ltd.* 9,518,437
- -------------------------------------------------------------------------------
100,000 VERITAS Software Corp.* 8,075,000
- -------------------------------------------------------------------------------
47,658,955
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET (1.60%)
32,100 CMGI, Inc.* 5,876,306
- -------------------------------------------------------------------------------
400,000 Spyglass, Inc.* 3,600,00
- -------------------------------------------------------------------------------
9,476,306
- -------------------------------------------------------------------------------
ELECTRONIC - MISCELLANEOUS COMPONENTS (0.77%)
134,700 Sawtek, Inc.* 4,546,125
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (4.36%)
189,800 DuPont Photomasks, Inc.* 7,520,825
- -------------------------------------------------------------------------------
180,000 Etec Systems, Inc.* 5,298,750
- -------------------------------------------------------------------------------
100,900 Novellus Systems, Inc.* 5,562,112
- -------------------------------------------------------------------------------
200,000 Veeco Instruments Inc.* 7,387,500
- -------------------------------------------------------------------------------
25,769,187
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (3.37%)
150,000 Applied Micro Circuits Corp.* 6,412,500
- -------------------------------------------------------------------------------
173,500 Cree Research, Inc.* 8,143,656
- -------------------------------------------------------------------------------
5,000 Maxim Integrated Products, Inc.* 270,625
- -------------------------------------------------------------------------------
100,000 Vitesse Semiconductor Corp.* 5,062,500
- -------------------------------------------------------------------------------
19,889,281
- -------------------------------------------------------------------------------
ELECTRONIC PRODUCTS - MISCELLANEOUS (1.32%)
274,900 Powerwave Technologies, Inc.* 7,800,287
- -------------------------------------------------------------------------------
FINANCE - CONSUMER/COMMERCIAL LOANS (1.15%)
100,000 Safeguard Scientifics, Inc.* 6,781,250
- -------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (0.48%)
331,700 Resource America, Inc. 2,860,912
- -------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.73%)
150,000 Webster Preferred Capital Corp. 4,331,250
- -------------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (2.38%)
225,000 Metris Companies, Inc. 9,084,375
- -------------------------------------------------------------------------------
190,000 NOVA Corp.* 4,987,500
- -------------------------------------------------------------------------------
14,071,875
- -------------------------------------------------------------------------------
INSURANCE - BROKERS (0.75%)
181,000 Pre-Paid Legal Services* 4,434,500
- -------------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.01%)
500 eBay, Inc.* 68,656
- -------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (0.77%)
60,000 Infoseek, Corp.* 4,440,000
- -------------------------------------------------------------------------------
500 Yahoo, Inc.* 84,187
- -------------------------------------------------------------------------------
4,524,187
- -------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (1.90%)
60,000 Concentric Network Corp.* 4,485,000
- -------------------------------------------------------------------------------
50,000 Exodus Communication, Inc.* 6,725,000
- -------------------------------------------------------------------------------
11,210,000
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (6.37%)
89,400 Clear Channel Communications, Inc.* 5,995,387
- -------------------------------------------------------------------------------
275,000 Cox Radio, Inc.* 14,093,750
- -------------------------------------------------------------------------------
215,000 Heftel Broadcasting Corp.* 9,325,625
- -------------------------------------------------------------------------------
255,000 SBS Broadcasting SA* 8,191,875
- -------------------------------------------------------------------------------
37,606,637
- -------------------------------------------------------------------------------
</TABLE>
18 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (88.47%)- CONTINUED March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C>
MEDICAL - BIOMED/GENETICS (2.97%)
175,000 IDEC Pharmaceuticals Corp.* $ 8,990,625
- -------------------------------------------------------------------------------
144,700 Medimmune, Inc.* 8,564,431
- -------------------------------------------------------------------------------
17,555,056
- -------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (2.92%)
195,000 Forest Laboratories, Inc.* 10,993,125
- -------------------------------------------------------------------------------
180,200 Jones Pharmaceuticals, Inc. 6,261,950
- -------------------------------------------------------------------------------
17,255,075
- -------------------------------------------------------------------------------
MEDICAL - INSTRUMENTS (2.49%)
455,000 IDEXX Laboratories, Inc.* 10,891,562
- -------------------------------------------------------------------------------
169,800 Ventana Medical Systems, Inc.* 3,799,275
- -------------------------------------------------------------------------------
14,690,837
- -------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (2.49%)
325,000 Parexel International Corp.* 6,723,437
- -------------------------------------------------------------------------------
405,200 Renal Care Group, Inc.* 7,952,050
- -------------------------------------------------------------------------------
14,675,487
- -------------------------------------------------------------------------------
MEDICAL - PRODUCTS (1.07%)
115,900 Teradyne, Inc.* 6,323,793
- -------------------------------------------------------------------------------
OIL & GAS - DRILLING (1.63%)
320,300 Atwood Oceanics, Inc.* 9,609,000
- -------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (3.28%)
395,800 BJ Services Co.* 9,276,562
- -------------------------------------------------------------------------------
586,300 Paradigm Geophysical Ltd.* # 2,931,500
- -------------------------------------------------------------------------------
505,000 Veritas DGC, Inc.* 7,164,687
- -------------------------------------------------------------------------------
19,372,749
- -------------------------------------------------------------------------------
OIL & GAS - MACHINERY/EQUIPMENT (1.26%)
105,000 Cooper Cameron Corp.* 3,556,875
- -------------------------------------------------------------------------------
350,000 Varco International, Inc.* 3,893,750
- -------------------------------------------------------------------------------
7,450,625
- -------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (2.34%)
238,300 Devon Energy Corp. 6,568,143
- -------------------------------------------------------------------------------
250,000 Noble Affiliates, Inc. 7,250,000
- -------------------------------------------------------------------------------
13,818,143
- -------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (1.78%)
500,000 Tetra Tech, Inc.* 10,531,250
- -------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (2.28%)
140,000 Payless Shoe Source, Inc.* 6,510,000
- -------------------------------------------------------------------------------
240,000 The Men's Wearhouse, Inc.* 6,930,000
- -------------------------------------------------------------------------------
13,440,000
- -------------------------------------------------------------------------------
RETAIL - HOME FURNISHINGS (0.91%)
225,000 Rent-Way, Inc.* 5,400,000
- -------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (1.57%)
140,000 Cash America International, Inc. 1,802,500
- -------------------------------------------------------------------------------
300,000 Michaels Stores, Inc.* 7,406,250
- -------------------------------------------------------------------------------
9,208,750
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (1.84%)
180,000 Gilat Satellite Networks, Ltd.* 10,800,000
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (8.45%)
538,000 E.Spire Communications, Inc.* 7,397,500
- -------------------------------------------------------------------------------
400,000 Globalstar Telecommunications Ltd.* 5,550,000
- -------------------------------------------------------------------------------
225,000 ICG Communications, Inc.* 4,528,1251
- -------------------------------------------------------------------------------
250,000 Intermedia Communications, Inc.* 6,656,250
- -------------------------------------------------------------------------------
150,000 Metromedia Fiber Network, Inc.* 7,771,875
- -------------------------------------------------------------------------------
400,000 Viatel, Inc.* 11,400,000
- -------------------------------------------------------------------------------
180,000 Winstar Communications, Inc.* 6,541,884
- -------------------------------------------------------------------------------
49,845,634
- -------------------------------------------------------------------------------
Total Common Stock
(cost $416,808,102) 522,354,925
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (8.36%)
- -------------------------------------------------------------------------------
$30,000,000 Federal Home Loan Mortgage
Association Discount Note -
4.73%, 4/19/99 29,929,050
- -------------------------------------------------------------------------------
4,500,000 Federal Home Loan Mortgage
Association Discount Note -
4.72%, 4/16/99 4,491,150
- -------------------------------------------------------------------------------
10,000,000 Federal Home Loan Mortgage
Association Discount Note -
4.76%, 4/26/99 9,966,944
- -------------------------------------------------------------------------------
5,000,000 Federal Home Loan Mortgage
Corp. Discount Note -
4.75%, 4/19/99 4,988,125
- -------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $49,375,269) 49,375,269
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.53%)
- -------------------------------------------------------------------------------
$26,740,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $26,743,580 on
April 1, 1999, collateralized by U.S.
Treasury Bond - October 25, 2010,
with a value of $27,277,188. 26,740,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $26,740,000) 26,740,000
- -------------------------------------------------------------------------------
PREFERRED STOCK NON-CONVERTIBLE (0.39%)
- -------------------------------------------------------------------------------
COMPUTER - PERIPHERAL EQUIPMENT (0.39%)
665,000 Candescent Technologies Corp.@-CHECKMARK- 2,327,500
- -------------------------------------------------------------------------------
Total Preferred Stock
(cost $3,657,500) 2,327,500
- -------------------------------------------------------------------------------
Total Investments (cost $496,580,871) (101.75%) 600,797,694
- -------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-1.75%) (10,341,396)
- -------------------------------------------------------------------------------
Net Assets (100.00%) $590,456,298
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
PLC - Public Limited Company.
ADR - American Depositary Receipt.
@ - Valued in good faith.
Berger Funds March 31, 1999 Semi-Annual Report 19
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
# The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is summary of the transactions with affiliates for the six months ended
March 31, 1999.
<TABLE>
<CAPTION>
Paradigm
Geophysical, Ltd.
<S> <S>
- -------------------------------------------------------------------------------
Market Value at 9/30/98 $3,444,512
- -------------------------------------------------------------------------------
Purchases at Cost --
- -------------------------------------------------------------------------------
Sales at Cost --
- -------------------------------------------------------------------------------
Change in Unrealized Appreciation/(Depreciation) (513,012)
- -------------------------------------------------------------------------------
Market Value at March 31, 1999 $2,931,500
- -------------------------------------------------------------------------------
Dividend Income --
- -------------------------------------------------------------------------------
Realized Gain (Loss) --
- -------------------------------------------------------------------------------
</TABLE>
- - SCHEDULE OF RESTRICTED SECURITIES OR ILLIQUID SECURITIES
<TABLE>
<CAPTION>
Fair Value as a
Date Acquired Cost Fair Value % of Net Assets
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Candescent
Technologies
Corporation
Preferred Stock 5/1/96 $3,657,500 $2,327,500 0.39%
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
20 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $496,580,871
- -------------------------------------------------------------------------------------------------------------------
Investments, at value $600,797,694
- -------------------------------------------------------------------------------------------------------------------
Cash 31,978
- -------------------------------------------------------------------------------------------------------------------
Receivables
Investment securities sold 13,422,750
- -------------------------------------------------------------------------------------------------------------------
Fund shares sold 663,844
- -------------------------------------------------------------------------------------------------------------------
Dividends 5,400
- -------------------------------------------------------------------------------------------------------------------
Interest 3,714
- -------------------------------------------------------------------------------------------------------------------
Total Assets 614,925,380
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
- -------------------------------------------------------------------------------------------------------------------
Investment securities purchased 21,919,470
- -------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 1,438,749
- -------------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 452,755
- -------------------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 16,057
- -------------------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 143,356
- -------------------------------------------------------------------------------------------------------------------
Accrued 12b-1 fees 125,765
- -------------------------------------------------------------------------------------------------------------------
Accrued audit fees 11,915
- -------------------------------------------------------------------------------------------------------------------
Accrued administrative service fees 5,031
- -------------------------------------------------------------------------------------------------------------------
Accrued shareholder reports 355,984
- -------------------------------------------------------------------------------------------------------------------
Total Liabilities 24,469,082
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $590,456,298
- -------------------------------------------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- -------------------------------------------------------------------------------------------------------------------
Shares Outstanding 156,622,633
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 3.77
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 98,364
- -------------------------------------------------------------------------------------------------------------------
Interest 1,385,980
- -------------------------------------------------------------------------------------------------------------------
Total Income 1,484,344
- -------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 2,749,646
- -------------------------------------------------------------------------------------------------------------------
Administrative services fee 30,551
- -------------------------------------------------------------------------------------------------------------------
Accounting fees 33,809
- -------------------------------------------------------------------------------------------------------------------
Custodian fees 31,520
- -------------------------------------------------------------------------------------------------------------------
Transfer agent fees 867,298
- -------------------------------------------------------------------------------------------------------------------
Registration fees 42,261
- -------------------------------------------------------------------------------------------------------------------
12b-1 fees 763,790
- -------------------------------------------------------------------------------------------------------------------
Audit fees 11,515
- -------------------------------------------------------------------------------------------------------------------
Legal fees 15,898
- -------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 27,764
- -------------------------------------------------------------------------------------------------------------------
Reports to shareholders 545,274
- -------------------------------------------------------------------------------------------------------------------
Other expenses 34,919
- -------------------------------------------------------------------------------------------------------------------
Gross Expenses 5,154,245
- -------------------------------------------------------------------------------------------------------------------
Less earnings credits (10,878)
- -------------------------------------------------------------------------------------------------------------------
Net Expenses 5,143,367
- -------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (3,659,023)
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 70,205,583
- -------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions 77,238,745
- -------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 147,444,328
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $143,785,305
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 21
<PAGE>
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $(3,659,023) $(7,848,181)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 70,205,583 121,247,337
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 77,238,745 (310,416,907)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 143,785,305 (197,017,751)
- ---------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (105,862,902) (77,784,883)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (105,862,902) (77,784,883)
- ---------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 108,069,473 215,916,354
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 102,147,525 75,634,304
- ---------------------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (219,424,600) (357,691,265)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (9,207,602) (66,140,607)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 28,714,801 (340,943,241)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 561,741,497 902,684,738
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $590,456,298 $561,741,497
- ---------------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $423,084,174 $432,291,776
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (3,724,678) (65,655)
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 66,879,979 102,537,298
- ---------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign currency transactions 104,216,823 26,978,078
- ---------------------------------------------------------------------------------------------------------------------------------
Total $590,456,298 $561,741,497
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 29,078,477 45,416,641
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 30,583,091 17,507,928
- ---------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (58,846,483) (76,360,381)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 815,085 (13,435,812)
- ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 155,807,548 169,243,360
- ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 156,622,633 155,807,548
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
22 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
[PHOTO]
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
Ticker Symbol - Investor Shares BSCVX
- Institutional Shares BSVIX
- --------------------------------------------------------------------------------
Fund Number - Investor Shares 120
- Institutional Shares 403
- --------------------------------------------------------------------------------
CO-PORTFOLIO Robert H. Perkins
MANAGERS' COMMENTARY Thomas M. Perkins
- --------------------------------------------------------------------------------
PERFORMANCE
We are now entering the sixth year of small company underperformance compared to
large company results. During the six-month period ended March 31, 1999, the
Standard & Poor's (S&P) 500 Index(1) rose 27.32%. At the same time, the Russell
2000 Index(2) was up 10.00% and the Berger Small Cap Value Fund gained 8.79%(3)
(investor shares) and 9.03%(3) (institutional shares).
This performance disparity has been largely a function of excessive market
appreciation in the fifty largest companies in the S&P 500 Index, which, on
March 31, were selling at the unprecedented average of about 55 times estimated
1999 earnings. In order to justify a P/E ratio of 55, these companies must grow
16%--18% per year for the next 10 years, which is 50% higher than the growth
rate of the last 10 years.
We believe these gross excesses, and attendant increased risks, will be
corrected and lead to a more favorable environment for investing in stocks that
sell at lower P/E ratios, such as those in the Standard & Poor's (S&P) 600
Index, which average 17--18, and those recently acquired by our Fund, which
average 12--13.
PERIOD IN REVIEW
While we await this correction, we continue to manage the Fund according to our
small cap value philosophy. In the fourth quarter 1998, we took advantage of
extreme price weakness in the small company sector to add stocks such as Eagle
USA (1.1% of total Fund assets) and Lands End (0.9% of assets). The prices of
these stocks generally had declined by approximately 50% and were selling near
their 1998 lows at the time of purchase.
In the first quarter 1999, we reduced holdings that significantly appreciated
after we bought them. For example, we sold our positions in Brooks Automation,
Cognex, Sawtek, and REMEC, as well as Eagle USA and Lands End, after these
stocks gained 30%--50%.
We added to our positions in the equity REIT industry, which is deeply depressed
and offers dividend yields in some cases in excess of 10%. Traditionally, REITs
sell at yields equivalent to 10-year Treasuries, which are under 6%.
We also increased our holdings in the energy sector. Due to concerns about oil
and natural gas price weakness, the market sold off oil producer and service
companies by 60% to 80% in the fourth quarter 1998. Given basic supply and
demand, however, we expect some recovery in energy prices in the intermediate
term. Accordingly, we increased our energy exposure from almost 7% to 10.5% of
total Fund assets this period. All additions were selling at 40%--50% discounts
to their current liquidated values at the time of purchase.
In the capital goods industry, we accumulated positions in manufacturers Watts
(1.9% of assets), Flowserve (0.9% of assets), Stewart & Stevenson (1.0% of
assets) and Methode (1.7% of assets), all of which sell at less than 10 times
estimated year 2000 earnings.
We also added a new industry--computer services. Stocks in this industry have
declined 60%--80% due to concern about replacing their Y2K problem-solving
business. We believe these cash-rich companies can easily replace this business
with e-commerce and other related services. We also feel they offer great
risk/reward opportunity at P/E ratios under 10.
LOOKING AHEAD
Although small stocks continued to take a beating these past six months, we
believe our approach has enabled us to minimize losses and we are optimistic
that the long-term superior returns of small stocks will reassert themselves. We
have often stated that the market can be very inefficient in the short term, but
highly efficient in the long term. We are in one of the inefficient periods. By
many measures, the small stock market relative to the broad market has reached
historic lows and appears poised for a rebound. We believe the rebound will
occur once the broad market sorts itself out and, particularly, when the large
company market leaders return to more realistic price levels. Until then,
patience is the watchword for small stock investors.
1. The S&P 500 is an unmanaged index, with dividends reinvested, which consists
of the common stocks of 500 publicly traded U.S. companies. It is a generally
recognized indicator used to measure overall performance of the U.S. stock
market. One cannot invest directly in an index.
2. The Russell 2000 Index is an unmanaged index, with dividends reinvested,
which consists of the common stock of 2000 U.S. companies. It is a generally
recognized indicator used to measure overall performance of small company
stocks. One cannot invest directly in an index.
3. 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.
Berger Funds March 31, 1999 Semi-Annual Report 23
<PAGE>
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
INVESTOR SHARES
COMPARISON OF CHANGE IN VALUE OF BERGER SMALL CAP VALUE FUND VS.
RUSSELL 2000 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Small Cap
Value Fund Russell 2000 Cost of
Investor Shares Index Living Index
- -------------------------------------------------------
<S> <C> <C> <C>
3/31/1989 $10,000 $10,000 $10,000
3/31/1990 $11,107 $10,552 $10,523
3/31/1991 $10,850 $11,276 $11,038
3/31/1992 $11,964 $13,644 $11,390
3/31/1993 $14,471 $15,673 $11,742
3/31/1994 $15,981 $17,392 $12,036
3/31/1995 $18,293 $18,352 $12,379
3/31/1996 $21,781 $23,683 $12,731
3/31/1997 $27,181 $24,893 $13,083
3/31/1998 $39,106 $35,351 $13,262
3/31/1999 $34,562 $29,605 $13,491
</TABLE>
BERGER SMALL CAP VALUE FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------------
<S> <C>
1 Year -11.62%
- ----------------------------------
5 Year 16.68%
- ----------------------------------
10 Year 13.20%
- ----------------------------------
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares. Performance data for the Investor Shares include periods prior
to the adoption of class designations on February 14, 1997, and therefore do
not reflect the 0.25% per year 12b-1 fee applicable to the Investor Shares.
INSTITUTIONAL SHARES
COMPARISON OF CHANGE IN VALUE OF BERGER SMALL CAP VALUE FUND VS.
RUSSELL 2000 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Small Cap
Value Fund Russell 2000 Cost of
Institutional Shares Index Living Index
- -------------------------------------------------------------
<S> <C> <C> <C>
3/31/1989 $250,000 $250,000 $250,000
3/31/1990 $277,681 $263,797 $263,083
3/31/1991 $271,243 $281,902 $275,961
3/31/1992 $299,098 $341,111 $284,751
3/31/1993 $361,774 $391,823 $293,540
3/31/1994 $399,537 $434,806 $300,899
3/31/1995 $457,314 $458,805 $309,485
3/31/1996 $544,519 $592,075 $318,275
3/31/1997 $679,936 $622,313 $327,065
3/31/1998 $981,590 $883,776 $331,562
3/31/1999 $871,097 $740,116 $337,285
</TABLE>
BERGER SMALL CAP VALUE FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------------
<S> <C>
1 Year -11.26%
- ----------------------------------
5 Year 16.87%
- ----------------------------------
10 Year 13.30%
- ----------------------------------
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
24 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (90.86%) March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
BANKS - MIDWEST (1.15%)
190,000 AMCORE Financial, Inc. $ 3,930,625
- --------------------------------------------------------------------------------
BANKS - NORTHEAST (4.70%)
215,000 Community Bank Systems, Inc. 5,119,687
- --------------------------------------------------------------------------------
610,000 Peoples Heritage Financial Group, Inc. 10,980,000
- --------------------------------------------------------------------------------
16,099,687
- --------------------------------------------------------------------------------
BANKS - SOUTHEAST (3.16%)
200,000 CCB Financial Corp. 10,812,500
- --------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (2.63%)
215,000 PFF Bancorp, Inc.* 3,762,500
- --------------------------------------------------------------------------------
170,000 Western Bancorp 5,259,375
- --------------------------------------------------------------------------------
9,021,875
- --------------------------------------------------------------------------------
BUILDING - CONSTRUCTION PRODUCTS/MISCELLANEOUS (1.54%)
240,000 Holophane Corp.* 5,280,000
- --------------------------------------------------------------------------------
BUILDING PRODUCTS - WOOD (3.08%)
470,000 Georgia-Pacific Corp. (Timber Group) 10,545,625
- --------------------------------------------------------------------------------
CHEMICALS - PLASTICS (2.59%)
650,000 A. Schulman, Inc. 8,856,250
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (2.40%)
547,000 Interim Services, Inc.* 8,205,000
- --------------------------------------------------------------------------------
COMPUTER - INTEGRATED SYSTEMS (0.93%)
500,000 Hypercom Corp.* 3,187,500
- --------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (1.83%)
700,000 Network Equipment Technologies, Inc.* 6,256,250
- --------------------------------------------------------------------------------
COMPUTER - PERIPHERAL EQUIPMENT (1.10%)
620,000 Splash Technology Holdings, Inc.* 3,758,750
- --------------------------------------------------------------------------------
COMPUTER - SERVICES (1.28%)
400,000 Computer Horizons Corp.* 4,375,000
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS - MISCELLANEOUS (2.61%)
420,000 Jostens, Inc. 8,925,000
- --------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (1.62%)
210,000 Pittway Corp. Class A 5,565,000
- --------------------------------------------------------------------------------
ELECTRICAL - CONNECTORS (1.66%)
510,000 Methode Electronics, Inc. 5,673,750
- --------------------------------------------------------------------------------
ELECTRICAL - CONTROL INSTRUMENTS (1.88%)
475,800 Watts Industries, Inc. 6,453,037
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.44%)
410,000 Speedfam International, Inc.* 4,920,000
- --------------------------------------------------------------------------------
FINANCE - EQUITY REIT (9.88%)
370,000 Gables Residential Trust $8,163,125
- --------------------------------------------------------------------------------
230,000 Home Properties of New York, Inc. 5,318,750
- --------------------------------------------------------------------------------
770,000 IRT Property Co. 6,785,625
- --------------------------------------------------------------------------------
180,000 Parkway Properties, Inc. 5,073,750
- --------------------------------------------------------------------------------
510,000 Summit Properties, Inc. 8,510,625
- --------------------------------------------------------------------------------
33,851,875
- --------------------------------------------------------------------------------
FINANCE - MORTGAGE REIT (1.66%)
710,000 Sentinel Bancorp, Inc. 5,680,000
- --------------------------------------------------------------------------------
FINANCE - PUBLIC INVESTMENT FUND - FOREIGN (2.45%)
1,050,000 Morgan Stanley Asia Pacific Fund, Inc. 8,400,000
- --------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (3.13%)
80,000 Life Financial Corp.* 250,000
- --------------------------------------------------------------------------------
230,000 Riverview Bancorp 2,760,000
- --------------------------------------------------------------------------------
220,000 Saint Paul Bancorp 4,764,375
- --------------------------------------------------------------------------------
336,500 Warren Bancorp Inc. 2,944,375
- --------------------------------------------------------------------------------
10,718,750
- --------------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (1.62%)
280,000 IPC Holdings, Ltd. 5,565,000
- --------------------------------------------------------------------------------
MACHINERY - GENERAL/INDUSTRIAL (0.89%)
195,000 Flowserve Corp. 3,034,687
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (4.22%)
160,000 Jones Intercable, Inc.* 6,400,000
- --------------------------------------------------------------------------------
204,000 Jones Intercable, Inc. Class A* 8,045,250
- --------------------------------------------------------------------------------
14,445,250
- --------------------------------------------------------------------------------
MEDIA - PERIODICALS (0.09%)
13,400 Playboy Enterprises, Inc.* 301,500
- --------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUGS/SUNDRIES (1.40%)
660,000 Perrigo Co.* 4,785,000
- --------------------------------------------------------------------------------
MEDICAL/DENTAL - SUPPLIES (2.78%)
790,000 Sola International, Inc.* 9,529,375
- --------------------------------------------------------------------------------
METAL PRODUCTS & FABRICATION (1.50%)
921,800 NS Group, Inc.* 5,127,512
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (2.57%)
800,000 Marine Drilling Cos.* 8,800,000
- --------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (7.89%)
650,000 Chieftain International, Inc.* 7,962,500
- --------------------------------------------------------------------------------
346,200 Evergreen Resources, Inc.* 6,924,000
- --------------------------------------------------------------------------------
410,000 Mitchell Energy & Development Corp.* 5,125,000
- --------------------------------------------------------------------------------
310,000 Newfield Exploration Co.* 7,013,750
- --------------------------------------------------------------------------------
27,025,250
- --------------------------------------------------------------------------------
</TABLE>
Berger Funds March 31, 1999 Semi-Annual Report 25
<PAGE>
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (90.86%) - CONTINUED March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C>
RETAIL - APPAREL/SHOE (3.00%)
450,000 Just For Feet, Inc.* $ 5,625,000
- --------------------------------------------------------------------------------
100,000 Payless Shoe Source, Inc.* 4,650,000
- --------------------------------------------------------------------------------
10,275,000
- --------------------------------------------------------------------------------
RETAIL - MAIL ORDER & DIRECT (0.86%)
480,000 Spiegel, Inc. Class A* 2,940,000
- --------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (2.04%)
860,000 Pier 1 Imports, Inc. 6,987,500
- --------------------------------------------------------------------------------
RETAIL - RESTAURANTS (0.97%)
520,000 Landry's Seafood Restaurants, Inc.* 3,331,250
- --------------------------------------------------------------------------------
SHOES & RELATED APPAREL (3.25%)
1,170,000 Wolverine World Wide, Inc. 11,115,000
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (1.33%)
1,000,000 General Communication, Inc.* 4,562,500
- --------------------------------------------------------------------------------
TEXTILE - APPAREL MANUFACTURING (0.07%)
20,700 Nautica Enterprises, Inc.* 234,168
- --------------------------------------------------------------------------------
TRANSPORTATION - SHIPPING (2.66%)
530,000 Knightsbridge Tankers Ltd. 9,142,500
- --------------------------------------------------------------------------------
TRUCKS & PARTS - HEAVY DUTY (1.00%)
450,000 Stewart & Stevenson Services, Inc. 3,459,378
- --------------------------------------------------------------------------------
Total Common Stock
(cost $334,076,821) 311,177,344
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (7.30%) March 31, 1999
- --------------------------------------------------------------------------------
$ 5,000,000 Federal Home Loan Mortgage
Corp. Discount Note - 4.76%,
4/26/99 $ 4,983,472
- --------------------------------------------------------------------------------
20,000,000 Federal National Mortgage
Association Discount Note -
4.80%, 4/1/99 20,000,000
- --------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $24,983,472) 24,983,472
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.86%)
- --------------------------------------------------------------------------------
$ 6,366,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $6,366,852 on
April 1, 1999, collateralized by U.S.
Treasury Bond - October 25, 2010,
with a value of $6,493,388. 6,366,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $6,366,000) 6,366,000
- --------------------------------------------------------------------------------
Total Investments (cost $365,426,293) (100.02%) 342,526,816
- --------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-0.02%) (53,313)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $ 342,473,503
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See notes to financial statements.
26 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $ 365,426,293
- ----------------------------------------------------------------------------------------------------------------
Investments, at value $ 342,526,816
- ----------------------------------------------------------------------------------------------------------------
Cash 29,966
- ----------------------------------------------------------------------------------------------------------------
Receivables
Investment securities sold 4,315,852
- ----------------------------------------------------------------------------------------------------------------
Fund shares sold 1,263,070
- ----------------------------------------------------------------------------------------------------------------
Dividends 262,397
- ----------------------------------------------------------------------------------------------------------------
Interest 852
- ----------------------------------------------------------------------------------------------------------------
Total Assets 348,398,953
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 5,038,420
- ----------------------------------------------------------------------------------------------------------------
Fund shares redeemed 539,239
- ----------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 254,768
- ----------------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 1,243
- ----------------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 5,877
- ----------------------------------------------------------------------------------------------------------------
Accrued 12b-1 fees 33,478
- ----------------------------------------------------------------------------------------------------------------
Accrued audit fees 4,708
- ----------------------------------------------------------------------------------------------------------------
Accrued administrative service fees 2,831
- ----------------------------------------------------------------------------------------------------------------
Accrued shareholder reports 14,695
- ----------------------------------------------------------------------------------------------------------------
Accrued other fees 30,191
- ----------------------------------------------------------------------------------------------------------------
Total Liabilities 5,925,450
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING (PAR VALUE $0.01, UNLIMITED SHARES AUTHORIZED) $ 342,473,503
- ----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
Investor shares (based on net assets of $159,583,748 and 8,735,806 shares outstanding) $ 18.27
- ----------------------------------------------------------------------------------------------------------------
Institutional shares (based on net assets of $182,889,755 and 10,000,042 shares outstanding) $ 18.29
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 2,849,771
- ----------------------------------------------------------------------------------------------------------------
Interest 839,164
- ----------------------------------------------------------------------------------------------------------------
Total Income 3,688,935
- ----------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 1,312,529
- ----------------------------------------------------------------------------------------------------------------
Administrative services fee 14,584
- ----------------------------------------------------------------------------------------------------------------
Accounting fees 22,787
- ----------------------------------------------------------------------------------------------------------------
Custodian fees 22,612
- ----------------------------------------------------------------------------------------------------------------
Transfer agent fees - Investor Shares 85,662
- ----------------------------------------------------------------------------------------------------------------
Transfer agent fees - Institutional Shares 18,666
- ----------------------------------------------------------------------------------------------------------------
Registration fees - Investor Shares 29,006
- ----------------------------------------------------------------------------------------------------------------
Registration fees - Institutional Shares 36,808
- ----------------------------------------------------------------------------------------------------------------
12b-1 fees - Investor Shares 188,407
- ----------------------------------------------------------------------------------------------------------------
Audit fees 14,208
- ----------------------------------------------------------------------------------------------------------------
Legal fees 26,384
- ----------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 12,650
- ----------------------------------------------------------------------------------------------------------------
Reports to shareholders 95,265
- ----------------------------------------------------------------------------------------------------------------
Other expenses 22,009
- ----------------------------------------------------------------------------------------------------------------
Gross Expenses 1,901,577
- ----------------------------------------------------------------------------------------------------------------
Less earnings credits (4,391)
- ----------------------------------------------------------------------------------------------------------------
Net Expenses 1,897,186
- ----------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 1,791,749
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 15,969,682
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign
currency transactions (337,598)
- ----------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 15,632,084
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 17,423,833
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 27
<PAGE>
BERGER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,791,749 $ 1,763,834
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 15,412,252 8,773,953
Net realized gain (loss) on distributions from investment companies 557,430 1,525,046
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions (337,598) (38,226,428)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 17,423,833 (26,163,595)
From Dividends and Distributions to Shareholders
Net investment income - investor shares (554,952) (589,238)
- ---------------------------------------------------------------------------------------------------------------------
Net investment income - institutional shares (1,033,592) (706,938)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gains on investments - investor shares (6,307,111) (7,188,217)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gains on investments - institutional shares (4,874,484) (6,438,165)
- ---------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (12,770,139) (14,922,558)
From Fund Share Transactions
- ---------------------------------------------------------------------------------------------------------------------
Proceeds from shares sold 207,193,589 202,677,074
- ---------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends
and distributions 9,947,021 12,934,335
- ---------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (80,572,607) (86,934,213)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 136,568,003 128,677,196
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 141,221,697 87,591,043
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------
Beginning of period 201,251,806 113,660,763
- ---------------------------------------------------------------------------------------------------------------------
End of period $ 342,473,503 $ 201,251,806
- ---------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------
Capital (par value and paid in surplus) $ 349,417,782 $ 212,849,779
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 3,309,259 3,106,054
Undistributed net realized gain (loss) from investments 12,645,939 7,857,852
Net unrealized appreciation (depreciation) of securities and foreign
currency transactions (22,899,477) (22,561,879)
- ---------------------------------------------------------------------------------------------------------------------
Total $ 342,473,503 $ 201,251,806
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- -----------------------------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES
Shares sold 5,231,270 $ 97,521,841 6,176,175 $ 126,575,125
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends
and distributions 304,999 5,696,683 365,158 7,272,450
- -----------------------------------------------------------------------------------------------------------------------------
Shares repurchased (2,971,091) (55,959,306) (2,848,965) (57,717,019)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 2,565,178 47,259,218 3,692,368 76,130,556
- -----------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 6,170,628 123,375,897 2,478,260 47,245,341
- -----------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 8,735,806 $ 170,635,115 6,170,628 $ 123,375,897
- -----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Shares sold 5,823,226 $ 109,671,748 3,808,007 $ 76,101,949
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends
and distributions 227,011 4,250,338 283,736 5,661,885
- -----------------------------------------------------------------------------------------------------------------------------
Shares repurchased (1,313,653) (24,613,301) (1,446,163) (29,217,194)
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 4,736,584 89,308,785 2,645,580 52,546,640
- -----------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 5,263,458 89,470,972 2,617,878 36,924,332
- -----------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 10,000,042 $ 178,779,757 5,263,458 $ 89,470,972
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
28 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
[PHOTO]
BERGER MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
- - Ticker Symbol BEMGX
- --------------------------------------------------------------------------------
- - Fund Number 215
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Amy K. Selner
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger Mid Cap Growth Fund had an impressive gain of 57.50%(1) for the six
months ended March 31, 1999. This return was substantially higher than the
19.96% gain registered by the Standard & Poor's (S&P) MidCap 400 Index(2) over
the same period. Our Fund's performance exceeded that of the S&P MidCap 400
Index by 28.19% in the fourth quarter 1998 and declined 6.38% in the first
quarter 1999.
In a continued narrow market, marked by volatility in less liquid stocks, the
small and mid cap stocks underperformed their larger cap peers. The market has
been propelled higher only by the largest and most liquid "nifty fifty" names it
favors. Similarly, in the early 1970's, a group of large cap stocks captured
investor attention and drew ever-higher stock prices and were referred to as the
Nifty Fifty.
PERIOD IN REVIEW
The fourth quarter 1998 marked the end of a correction for stocks in the S&P
MidCap 400 Index. From a high on April 22, 1998, stock prices in this index fell
28% and bottomed on October 8, 1998. Mid cap growth stocks then staged an
impressive rebound through year-end 1998, led by the technology sector, which
smartly outperformed other industry groups. The rebound was short-lived,
however. Interest rate fears and a desire for the liquidity of larger stocks
drove divergence in the market and, during the first quarter 1999, stocks in the
S&P MidCap 400 Index declined 6.38% while those in the S&P 500 Index(3) rose
4.98%.
The .75% interest rate cuts by the Federal Reserve Board (Fed) in late September
to mid November of 1998 acted as a stiff wind at the back of the market through
January. The Fed, no longer signaling further interest rate cuts, took the wind
out of the sails of the market in the near term. An undeniably robust U.S.
economy continued into the first quarter, with strong consumer spending, low
inflation and a tight labor market. We need to see the operating profit growth
of mid caps improve relative to the large cap stocks in order for mid caps to
outperform.
Our Fund's technology holdings provided solid returns the past six months.
Internet stocks, with their exponential growth fundamentals, were one of the
more resilient sectors of the market. Positive gains were registered by Internet
companies in our portfolio, including CMGI (0.8% of total Fund assets) and
Vignette (1.0% of assets). We continue to believe that the Internet's growth
prospects are explosive as the Internet redefines how we work, learn and live.
There are still many attractive investments, particularly in Internet
infrastructure plays. Growth prospects remain robust for Vitesse Semiconductor
(1.0% of assets), which supplies advanced digital integrated circuits to the
telecommunications industry. Companies in the application integration software
industry continue to surge, including New Era of Networks (1.8% of assets).
Since technology stocks have had a nice move, we have pared back risk by buying
lower multiple, or less expensive, technology stocks and selectively selling our
more expensive holdings.
Performance was mixed in the healthcare sector. Pharmaceutical manufacturer
Forest Labs (2.2% of assets) continued on its solid growth curve. We maintain
our focus on companies with robust product pipelines, consistent earnings growth
and strong management.
One major move we made this period was to increase our Fund's exposure to energy
stocks from an underweighted position to overweighting. This proved fortuitous
because supply dynamics within the sector have subsequently improved, energy
prices have risen and energy stocks have been strong performers, including two
of our holdings, BJ Services (2.0% of assets) and Cooper Cameron (1.0% of
assets).
We also increased our exposure to financial stocks as interest rate spreads
between short and long-term bonds widen. Two of our favorites are Zions
Bancorporation (1.9% of assets) and U.S. Trust (1.7% of assets).
LOOKING AHEAD
In the second half of 1999, we expect consumption growth to moderate from
unsustainable high levels. We also expect housing growth to slow by summer and a
slight moderation in capital spending. We expect inflation to remain benign and
the Fed to be neutral on interest rates over the near term. While Europe appears
to be slowing, the Asian economies have bottomed and may be beginning to
improve. The relative multiple on mid cap stocks versus large cap stocks
continues to be at its lowest level in decades. In order for mid cap stocks to
regain strength, however, their earnings growth must improve relative to large
caps. Over the near term, we expect the market to move sideways. It will take a
broadening of the market's current narrow leadership to re-ignite an upward
trend.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P MidCap 400 Index is an unmanaged index, with dividends reinvested,
and is generally representative of the market for stocks for mid-sized
companies. One cannot invest directly in an index.
3. The S&P 500 Index is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the U.S.
stock market. One cannot invest directly in an index.
Berger Funds March 31, 1999 Semi-Annual Report 29
<PAGE>
BERGER MID CAP GROWTH FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER MID CAP GROWTH FUND vs.
S&P 400 MID CAP INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Mid Cap S&P 400 Cost of
Growth Fund Mid Cap Index Living Index
<S> <C> <C> <C>
12/31/97 $10,000 $10,000 $10,000
3/31/98 $12,590 $11,099 $10,056
6/30/98 $13,290 $10,862 $10,105
9/30/98 $10,930 $9,293 $10,143
12/31/98 $15,438 $11,907 $10,161
3/31/99 $17,215 $11,147 $10,229
</TABLE>
BERGER MID CAP GROWTH FUND*
TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------------------
<S> <C>
1 Year 36.74%
- ----------------------------------------
Life of Fund 54.43%
- ----------------------------------------
(12/31/97)
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
30 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER MID CAP GROWTH FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (92.47%) March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
AEROSPACE/DEFENSE - EQUIPMENT (1.82%)
6,000 Orbital Sciences Corp. * $ 169,875
- --------------------------------------------------------------------------------
BANKS - NORTHEAST (3.51%)
9,500 Peoples Heritage Financial Group, Inc. 171,000
- --------------------------------------------------------------------------------
2,100 U.S. Trust Corp. 155,793
- --------------------------------------------------------------------------------
326,793
- --------------------------------------------------------------------------------
BANKS - SOUTHEAST (1.73%)
4,400 First Tennessee National Corp. 161,150
- --------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.86%)
2,600 Zions Bancorp. 172,900
- --------------------------------------------------------------------------------
CHEMICALS - SPECIALTY (2.26%)
8,600 ChiRex, Inc. * 210,700
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (1.60%)
4,400 Lamar Advertising Co. * 149,325
- --------------------------------------------------------------------------------
COMPUTER - SERVICES (2.52%)
1,500 Fiserv, Inc. * 80,437
- --------------------------------------------------------------------------------
2,300 Globix Corp. * 85,818
- --------------------------------------------------------------------------------
3,200 Whittman-Hart, Inc. * 68,800
- --------------------------------------------------------------------------------
235,055
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (0.85%)
6,900 CBT Group Public Limited Co. ADR * 78,918
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (4.76%)
4,800 Concur Technologies, Inc. * 216,600
- --------------------------------------------------------------------------------
2,400 New Era Of Networks, Inc. * 162,600
- --------------------------------------------------------------------------------
900 Sapient Corp. * 64,237
- --------------------------------------------------------------------------------
443,437
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET (3.70%)
1,700 Allaire Corp. * 115,600
- --------------------------------------------------------------------------------
400 CMGI, Inc.* 73,225
- --------------------------------------------------------------------------------
4,000 Spyglass, Inc. * 36,000
- --------------------------------------------------------------------------------
1,200 Vignette Corp. * 90,300
- --------------------------------------------------------------------------------
600 WebTrends Corp. * 29,175
- --------------------------------------------------------------------------------
344,300
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (5.25%)
7,500 Conexant Systems, Inc. * 207,656
- --------------------------------------------------------------------------------
2,500 Etec Systems, Inc. * 73,593
- --------------------------------------------------------------------------------
2,100 KLA-Tencor Corp. * 101,981
- --------------------------------------------------------------------------------
900 Kulicke & Soffa Industries, Inc. * 22,725
- --------------------------------------------------------------------------------
1,500 Novellus Systems, Inc. * 82,687
- --------------------------------------------------------------------------------
488,642
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (3.68%)
4,400 Applied Micro Circuits Corp. * 188,100
- --------------------------------------------------------------------------------
1,240 Linear Technology Corp. 63,550
- --------------------------------------------------------------------------------
1,800 Vitesse Semiconductor Corp. * 91,125
- --------------------------------------------------------------------------------
342,775
- --------------------------------------------------------------------------------
ELECTRONIC PRODUCTS - MISCELLANEOUS (1.98%)
6,500 Powerwave Technologies, Inc. * 184,437
- --------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.39%)
3,000 Sovereign Bancorp, Inc. 36,750
- --------------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.98%)
300 eBay, Inc. * 41,193
- --------------------------------------------------------------------------------
600 Priceline.com, Inc. * 49,725
- --------------------------------------------------------------------------------
90,918
- --------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (0.90%)
400 Critical Path, Inc. * 30,800
- --------------------------------------------------------------------------------
400 MiningCo.com, Inc. * 35,800
- --------------------------------------------------------------------------------
100 Yahoo, Inc. * 16,837
- --------------------------------------------------------------------------------
83,437
- --------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (2.22%)
1,700 Pacific Internet Ltd. * 98,918
- --------------------------------------------------------------------------------
700 Verisign, Inc. * 107,800
- --------------------------------------------------------------------------------
206,718
- --------------------------------------------------------------------------------
MEDIA - CABLE TV (4.98%)
2,500 Cox Communications, Inc. Class A * 189,062
- --------------------------------------------------------------------------------
1,400 Echostar Communications Corp.
Class A * 114,275
- --------------------------------------------------------------------------------
3,700 TCA Cable TV, Inc. 160,950
- --------------------------------------------------------------------------------
464,287
- --------------------------------------------------------------------------------
MEDIA - RADIO/TV (7.62%)
2,306 Clear Channel Communications, Inc. * 154,646
- --------------------------------------------------------------------------------
4,100 Cox Radio, Inc. * 210,125
- --------------------------------------------------------------------------------
3,800 Heftel Broadcasting Corp. * 164,825
- --------------------------------------------------------------------------------
3,600 Univision Communications, Inc. * 180,000
- --------------------------------------------------------------------------------
709,596
- --------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (3.74%)
3,550 Forest Laboratories, Inc. * 200,131
- --------------------------------------------------------------------------------
6,500 Shire Pharmaceuticals Group PLC * 148,281
- --------------------------------------------------------------------------------
348,412
- --------------------------------------------------------------------------------
MEDICAL - GENERIC DRUGS (2.64%)
1,500 Mylan Laboratories, Inc. 41,156
- --------------------------------------------------------------------------------
4,650 Watson Pharmaceuticals, Inc. * 205,181
- --------------------------------------------------------------------------------
246,337
- --------------------------------------------------------------------------------
MEDICAL - HOSPITALS (1.07%)
8,200 Health Management Associates, Inc. * 99,937
- --------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (1.33%)
6,000 Parexel International Corp. * 124,125
- --------------------------------------------------------------------------------
MEDICAL - PRODUCTS (0.82%)
1,400 Teradyne, Inc. * 76,387
</TABLE>
Berger Funds March 31, 1999 Semi-Annual Report 31
<PAGE>
BERGER MID CAP GROWTH FUND
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCK (92.47%) - CONTINUED March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
OIL & GAS - DRILLING (0.52%)
2,800 Noble Drilling Corp. * $ 48,475
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (3.71%)
7,900 BJ Services Co. * 185,156
- --------------------------------------------------------------------------------
11,300 Veritas DGC, Inc. * 160,318
- --------------------------------------------------------------------------------
345,474
- --------------------------------------------------------------------------------
OIL & GAS - MACHINERY/EQUIPMENT (2.84%)
2,800 Cooper Cameron Corp. * 94,850
- --------------------------------------------------------------------------------
6,500 Weatherford International, Inc. * 169,812
- --------------------------------------------------------------------------------
264,662
- --------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (1.58%)
3,900 Anadarko Petroleum Corp. 147,225
- --------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (1.10%)
2,500 Nordstrom, Inc. 102,187
- --------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (1.97%)
8,000 Family Dollar Stores, Inc. 184,000
- --------------------------------------------------------------------------------
RETAIL - MAIL ORDER & DIRECT (1.84%)
11,000 DM Management Co. * 171,875
- --------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (1.09%)
3,000 Dollar General Corp. 102,000
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (2.56%)
2,500 American Tower Corp. * 61,250
- --------------------------------------------------------------------------------
2,000 Gilat Satellite Networks, Ltd. * 120,000
- --------------------------------------------------------------------------------
500 Uniphase Corp. * 57,562
- --------------------------------------------------------------------------------
238,812
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (13.05%)
2,700 Comcast Corp. 166,050
- --------------------------------------------------------------------------------
2,700 Covad Communications Group, Inc. * 177,525
- --------------------------------------------------------------------------------
9,000 Crown Castle International Corp. * 162,000
- --------------------------------------------------------------------------------
2,300 Global Crossing Ltd. * 106,375
- --------------------------------------------------------------------------------
2,200 Global Telesystems Group, Inc. * 123,062
- --------------------------------------------------------------------------------
6,000 Globalstar Telecommunications Ltd. * 83,250
- --------------------------------------------------------------------------------
5,000 McLeodUSA, Inc. * 210,000
- --------------------------------------------------------------------------------
6,600 Viatel, Inc. * 188,113
- --------------------------------------------------------------------------------
1,216,375
- --------------------------------------------------------------------------------
Total Common Stock
(cost $6,998,576) 8,616,296
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION (8.59%)
- --------------------------------------------------------------------------------
$800,000 Federal National Mortgage Association
Discount Note - 4.80%, 4/1/99 800,000
- --------------------------------------------------------------------------------
Total U.S. Government Agency Obligation
(cost $800,000) 800,000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (2.18%) March 31, 1999
- --------------------------------------------------------------------------------
$ 204,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $204,027 on April 1,
1999, collateralized by U.S.
Treasury Bond - January, 8, 2001,
with a value of $212,235. $ 204,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $204,000) 204,000
- --------------------------------------------------------------------------------
Total Investments (cost $8,002,576) (103.24%) 9,620,296
- --------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-3.24%) (302,313)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $ 9,317,983
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
See notes to financial statements.
32 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER MID CAP GROWTH FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $ 8,002,576
- --------------------------------------------------------------------------------
Investments, at value $ 9,620,296
- --------------------------------------------------------------------------------
Cash 788
- --------------------------------------------------------------------------------
Receivables
Investment securities sold 53,289
- --------------------------------------------------------------------------------
Fund shares sold 36,946
- --------------------------------------------------------------------------------
Dividends 1,470
- --------------------------------------------------------------------------------
Interest 27
- --------------------------------------------------------------------------------
Due from Management Company 1,477
- --------------------------------------------------------------------------------
Total Assets 9,714,293
- --------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 381,056
- --------------------------------------------------------------------------------
Accrued investment advisory fees 5,501
- --------------------------------------------------------------------------------
Accrued custodian and accounting fees 230
- --------------------------------------------------------------------------------
Accrued transfer agent fees 684
- --------------------------------------------------------------------------------
Accrued 12b-1 fees 1,834
- --------------------------------------------------------------------------------
Accrued audit fees 5,653
- --------------------------------------------------------------------------------
Accrued administrative service fees 73
- --------------------------------------------------------------------------------
Accrued shareholder reports 1,279
- --------------------------------------------------------------------------------
Total Liabilities 396,310
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 9,317,983
- --------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- --------------------------------------------------------------------------------
Shares Outstanding 549,762
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 16.95
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 5,640
- --------------------------------------------------------------------------------
Interest 13,958
- --------------------------------------------------------------------------------
Total Income 19,598
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 24,621
- --------------------------------------------------------------------------------
Administrative services fee 328
- --------------------------------------------------------------------------------
Accounting fees 4,443
- --------------------------------------------------------------------------------
Custodian fees 5,403
- --------------------------------------------------------------------------------
Transfer agent fees 5,960
- --------------------------------------------------------------------------------
Registration fees 10,427
- --------------------------------------------------------------------------------
12b-1 fees 8,207
- --------------------------------------------------------------------------------
Audit fees 5,253
- --------------------------------------------------------------------------------
Legal fees 344
- --------------------------------------------------------------------------------
Trustees' fees and expenses 280
- --------------------------------------------------------------------------------
Reports to shareholders 5,530
- --------------------------------------------------------------------------------
Other expenses 152
- --------------------------------------------------------------------------------
Gross Expenses 70,948
- --------------------------------------------------------------------------------
Less fees waived and expenses reimbursed by the advisor (5,276)
- --------------------------------------------------------------------------------
Less earnings credits (381)
- --------------------------------------------------------------------------------
Net Expenses 65,291
- --------------------------------------------------------------------------------
Net Investment Income (Loss) (45,693)
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign
currency transactions 883,005
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on
securities and foreign currency transactions 1,932,275
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions 2,815,280
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,769,587
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 33
<PAGE>
BERGER MID CAP GROWTH FUND
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Period from
March 31, 1999 December 31, 1997(1) to
(Unaudited) September 30, 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (45,693) $ (22,353)
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 883,005 71,188
- -------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and 1,932,275 (314,555)
foreign currency transactions
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 2,769,587 (265,720)
- -------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income -- --
- -------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (87,008) --
- -------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (87,008) --
- -------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 4,829,585 8,005,977
- -------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 84,722 --
- -------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (2,561,624) (3,457,536)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 2,352,683 4,548,441
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 5,035,262 4,282,721
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 4,282,721 --
- -------------------------------------------------------------------------------------------------------------------
End of period $ 9,317,983 $ 4,282,721
- -------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 6,901,124 $ 4,548,441
- -------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (45,781) (88)
- -------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 844,920 48,923
- -------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign
currency transactions 1,617,720 (314,555)
- -------------------------------------------------------------------------------------------------------------------
Total $ 9,317,983 $ 4,282,721
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 330,740 670,860
- -------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 6,375 --
- -------------------------------------------------------------------------------------------------------------------
Shares repurchased (179,154) (279,059)
- -------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 157,961 391,801
- -------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 391,801 --
- -------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 549,762 391,801
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commencement of investment operations.
See notes to financial statements.
34 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
[PHOTO]
BERGER MID CAP VALUE FUND
- -------------------------------------------------------------------------------
- - Ticker Symbol BEMVX
- -------------------------------------------------------------------------------
- - Fund Number 216
- -------------------------------------------------------------------------------
CO-PORTFOLIO Thomas M. Perkins
MANAGERS' COMMENTARY Robert H. Perkins
- -------------------------------------------------------------------------------
PERFORMANCE
For the six months ended March 31, 1999, the Berger Mid Cap Value Fund (the
"Fund") gained 20.24%,(1) compared to 19.96% for the Standard & Poor's (S&P)
MidCap 400 Index(2) and 20.01% for the S&P MidCap Value Index.(3) We believe
the S&P MidCap Value Index is a more useful and comparable performance
benchmark for our Fund.
The S&P MidCap 400 Index's slightly higher performance is attributable to the
incredible run up in prices of such growth stocks as America Online, which was
the largest stock in the index prior to the fourth quarter. Our Fund slightly
outperformed the S&P MidCap Value Index during this six-month period because of
our Fund's overweighting in the technology, retail and energy sectors, which
turned in strong performances, and our underweighting in utilities, which were
hurt by the recent rise in interest rates.
PERIOD IN REVIEW
Since September 30, the biggest change in our sector weightings was the
reduction of cash and equivalents from 21% of Fund assets to about 4%. The high
cash position at the beginning of this period reflects the fact that our Fund
had only been in operation since August 12, 1998, and that we were still
investing cash methodically during the summer's down market. We were relatively
fully-invested by the end of October.
Financials are our largest sector. We are emphasizing REIT's with dividend
yields of over 7% and strong regional banks with net income growing 10-15%
annually.
In the technology sector, we have been a net seller of stocks for several
months. Most recently, we sold ETEC, Cognex and REMEC. Unusually strong price
appreciation has made the risk/reward relationship of many of these stocks less
attractive. We have redeployed some of the proceeds of these sales into other
technology stocks that had experienced recent sharp price declines despite
having favorable long-term prospects.
We have slightly increased energy holdings by purchasing Mitchell Energy (1.7%
of total Fund assets), Devon Energy (1.3% of assets) and Barrett Resources (0.6%
of assets), which are primarily U.S. natural gas exploration and production
companies. The prices of these stocks were down 40%-50% from last year, sell at
discounts to asset value and are poised to benefit from an upturn in natural gas
prices. We funded these purchases by reducing positions in BJ Services (0.9% of
assets) and Noble Drilling (1.4% of assets), oil service stocks that gained over
40% and 30% respectively in the first quarter 1999.
We continue to follow our discipline of seeking relatively undervalued,
well-financed companies with good growth prospects and above average dividends.
In many cases, we use short-term weakness, which reduces price risk, to invest
in stocks that are well positioned for the long term. While most of these
companies are not currently favored in the stock market, their intrinsic value
is more recognized in corporate America.
Large portions of our holdings have initiated substantial share buyback
programs. Additionally, two of our larger holdings, Union Camp (1.3% of
assets--sold subsequent to the merger) and Aeroquip Vickers (1.3% of
assets--sold after share price appreciated) were acquired in the past six months
at prices that were, respectively, 60% and 90% higher than our cost.
Interestingly, these stocks had experienced interim earnings disappointments and
major stock price declines before we purchased them. Our confidence in the
appreciation potential of our holdings is reinforced by this corporate activity.
LOOKING AHEAD
The pace of the stock market's advance has slowed significantly in the first
quarter 1999. Our expectations for the market are modest, but positive. The rise
in interest rates should be about over and there are signs of international
economic recovery. This could bring broad earnings gains to the U.S. and be a
catalyst for greater strength in value stocks. The disparity that now exists in
the valuations of large growth stocks and smaller value stocks is as large as we
have seen in 30 years. Because, historically, this type of valuation distortion
has been cyclical, we believe the current market provides good long-term
opportunity for mid and small cap value stock investors.
1. Performance figures are based on historical results and are not intended to
be indicative of future performance. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
2. The S&P MidCap 400 Index is an unmanaged index, with dividends reinvested,
and is generally representative of the market for stocks for mid-sized
companies. One cannot invest directly in an index.
3. The S&P MidCap Value Index is an unmanaged index, with dividends reinvested,
and is generally representative of the market for value stocks for mid-sized
companies. One cannot invest directly in an index.
Berger Funds March 31, 1999 Semi-Annual Report 35
<PAGE>
BERGER MID CAP VALUE FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER MID CAP VALUE FUND VS. S&P 400 MID CAP
INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Mid Cap S&P 400 Cost of
Value Fund Mid Cap Index Living Index
-------------- ------------- -------------
<S> <C> <C> <C>
8/12/98 $10,000 $10,000 $10,000
9/30/98 $ 9,330 $ 8,910 $10,025
12/31/98 $11,440 $11,416 $10,043
3/31/99 $11,218 $10,688 $10,110
</TABLE>
BERGER MID CAP VALUE FUND*
TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- --------------------------
<S> <S>
Life of Fund 12.18%
- --------------------------
(8/12/98)
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
36 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (97.38%) March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C>
- --------------------------------------------------------------------------------
AEROSPACE/DEFENSE (0.55%)
2,000 Northrop Grumman Corp. $ 119,750
- --------------------------------------------------------------------------------
AEROSPACE/DEFENSE - EQUIPMENT (0.63%)
4,000 The B.F. Goodrich Co. 137,250
- --------------------------------------------------------------------------------
BANKS - MIDWEST (1.55%)
10,500 Associated Banc-Corp. 335,343
- --------------------------------------------------------------------------------
BANKS - MONEY CENTER (1.47%)
5,000 Citigroup Inc. 319,375
- --------------------------------------------------------------------------------
BANKS - NORTHEAST (1.33%)
16,000 Peoples Heritage Financial Group, Inc. 288,000
- --------------------------------------------------------------------------------
BANKS - SOUTHEAST (0.50%)
2,000 CCB Financial Corp. 108,125
- --------------------------------------------------------------------------------
BANKS - SUPER REGIONAL (1.59%)
2,000 Mellon Bank Corp. 140,750
- --------------------------------------------------------------------------------
6,000 UnionBanCal Corp. 204,375
- --------------------------------------------------------------------------------
345,125
- --------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.14%)
8,000 City National Corp. 247,000
- --------------------------------------------------------------------------------
BUILDING - CEMENT/CONCRETE/AGGREGATES (1.24%)
5,000 Southdown, Inc. 268,437
- --------------------------------------------------------------------------------
BUILDING - PAINT & ALLIED PRODUCTS (1.95%)
15,000 The Sherwin Williams Co. 421,875
- --------------------------------------------------------------------------------
BUILDING PRODUCTS - WOOD (3.40%)
23,000 Georgia-Pacific Corp. (Timber Group) 516,062
- --------------------------------------------------------------------------------
5,500 Rayonier inc. 220,343
- --------------------------------------------------------------------------------
736,405
- --------------------------------------------------------------------------------
CHEMICALS - PLASTICS (1.26%)
6,000 Household International, Inc. 273,750
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - BUSINESS SERVICES (0.28%)
7,000 American Oncology Resources, Inc.* 63,000
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (2.30%)
14,000 The Dun & Bradstreet Corp. 498,750
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (1.11%)
16,000 Interim Services Inc.* 240,000
- -- -----------------------------------------------------------------------------
COMPUTER - INTEGRATED SYSTEMS (0.73%)
25,000 Hypercom Corp.* 159,375
- --------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (0.66%)
16,000 Network Equipment Technologies, Inc.* 143,000
- --------------------------------------------------------------------------------
COMPUTER - PERIPHERAL EQUIPMENT (1.33%)
6,500 Adaptec, Inc.* 148,281
- --------------------------------------------------------------------------------
23,000 Splash Technology Holdings, Inc.* 139,437
- --------------------------------------------------------------------------------
287,718
- --------------------------------------------------------------------------------
COMPUTER - SERVICES (2.27%)
11,000 Computer Horizons Corp.* 120,312
- --------------------------------------------------------------------------------
12,000 Convergys Corp.* 205,500
- --------------------------------------------------------------------------------
3,000 Shared Medical Systems Corp. 167,062
- --------------------------------------------------------------------------------
492,874
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS - MISCELLANEOUS (1.67%)
17,000 Jostens, Inc. 361,250
- --------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (3.48%)
12,000 Federal Signal Corp. 250,500
- --------------------------------------------------------------------------------
19,000 Pittway Corp. Class A 503,500
- --------------------------------------------------------------------------------
754,000
- --------------------------------------------------------------------------------
ELECTRICAL - CONNECTORS (1.85%)
26,000 Methode Electronics, Inc. 289,250
- --------------------------------------------------------------------------------
3,000 Thomas & Betts Corp. 112,687
- --------------------------------------------------------------------------------
401,937
- --------------------------------------------------------------------------------
ELECTRICAL - EQUIPMENT (0.65%)
7,000 Baldor Electric Co. 140,875
- --------------------------------------------------------------------------------
ELECTRONIC - MEASURING INSTRUMENTS (1.69%)
14,500 Tektronix, Inc. 366,125
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.22%)
10,000 Integrated Process Equipment Co.* 90,000
- --------------------------------------------------------------------------------
1,000 Novellus Systems, Inc.* 55,125
- --------------------------------------------------------------------------------
10,000 Speedfam International, Inc.* 120,000
- --------------------------------------------------------------------------------
265,125
- --------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (2.55%)
10,000 Analog Devices, Inc.* 297,500
- --------------------------------------------------------------------------------
4,000 Sanmina Corp.* 255,000
- --------------------------------------------------------------------------------
552,500
- --------------------------------------------------------------------------------
FINANCE - CONSUMER/COMMERCIAL LOANS (1.06%)
7,500 Citigroup, Inc. 229,218
- --------------------------------------------------------------------------------
FINANCE - EQUITY REIT (6.01%)
12,000 Camden Property Trust 297,000
- --------------------------------------------------------------------------------
11,000 Crescent Real Estate Equities Co. 236,500
- --------------------------------------------------------------------------------
16,000 Liberty Property Trust 332,000
- --------------------------------------------------------------------------------
15,000 Mack-Cali Realty Corp. 440,625
- --------------------------------------------------------------------------------
1,306,125
- --------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (2.88%)
12,000 Legg Mason, Inc. 404,250
- --------------------------------------------------------------------------------
2,500 Merrill Lynch & Co., Inc. 221,093
- --------------------------------------------------------------------------------
625,343
- --------------------------------------------------------------------------------
</TABLE>
Berger Funds March 31, 1999 Semi-Annual Report 37
<PAGE>
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (97.38%) - CONTINUED March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
FINANCE - PUBLIC INVESTMENT FUND - FOREIGN (1.95%)
18,000 Emerging Markets
Telecommunications Fund* $ 167,625
- ---------------------------------------------------------------------------------
32,000 Morgan Stanley Asia Pacific Fund, Inc. 256,000
- ---------------------------------------------------------------------------------
423,625
- ---------------------------------------------------------------------------------
FINANCE - PUBLICLY TRADED INVESTMENT FUND (1.36%)
12,000 H & Q Healthcare Investors Fund* 157,500
- --------------------------------------------------------------------------------
12,500 H & Q Life Science Investments
Fund* 137,500
- --------------------------------------------------------------------------------
295,000
- --------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.32%)
22,000 Life Financial Corp.* 68,750
- --------------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (2.08%)
7,000 Heller Financial, Inc. 164,500
- --------------------------------------------------------------------------------
12,000 MBNA Corp. 286,500
- --------------------------------------------------------------------------------
451,000
- --------------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (3.73%)
4,000 CNA Financial Corp.* 155,250
- --------------------------------------------------------------------------------
8,500 Everest Reinsurance Holdings, Inc. 265,093
- --------------------------------------------------------------------------------
14,000 IPC Holdings, Ltd. 278,250
- --------------------------------------------------------------------------------
6,000 Old Republic International Corp. 109,500
- --------------------------------------------------------------------------------
808,093
- --------------------------------------------------------------------------------
LEISURE - TOYS/GAMES/HOBBY (2.13%)
16,000 Hasbro, Inc. 463,000
- --------------------------------------------------------------------------------
MACHINERY - GENERAL/INDUSTRIAL (1.32%)
5,000 Aeroquip-Vickers, Inc. 286,562
- --------------------------------------------------------------------------------
MEDIA - NEWSPAPERS (0.53%)
8,500 Hollinger International, Inc. 115,281
- --------------------------------------------------------------------------------
MEDICAL - DENTAL SUPPLIES (2.09%)
5,500 Dentsply International, Inc. 127,875
- --------------------------------------------------------------------------------
27,000 Sola International, Inc.* 325,687
- --------------------------------------------------------------------------------
453,562
- --------------------------------------------------------------------------------
MEDICAL - HEALTH MAINTANENCE ORGANIZATIONS (0.91%)
11,500 Humana Inc.* 198,375
- --------------------------------------------------------------------------------
MEDICAL - PRODUCTS (0.75%)
3,000 Teradyne, Inc.* 163,687
- --------------------------------------------------------------------------------
OFFICE EQUIPMENT - EQUIPMENT & AUTOMATION (2.33%)
23,000 HON Industries, Inc. 504,562
- --------------------------------------------------------------------------------
OIL & GAS - DRILLING (1.36%)
17,000 Noble Drilling Corp.* 294,312
- --------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (0.92%)
8,500 BJ Services Co.* 199,218
- --------------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL SPECIALTY (1.15%)
6,000 Murphy Oil Corp. 249,000
- --------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (4.05%)
4,000 Apache Corp. 104,250
- --------------------------------------------------------------------------------
5,000 Barrett Resources Corp.* 125,312
- --------------------------------------------------------------------------------
10,000 Devon Energy Corp. 275,625
- --------------------------------------------------------------------------------
12,000 Mitchell Energy & Development
Corp. Class A 149,250
- --------------------------------------------------------------------------------
18,000 Mitchell Energy & Development
Corp. Class B* 225,000
- --------------------------------------------------------------------------------
879,437
- --------------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (0.68%)
4,500 Kerr-McGee Corp. 147,656
- --------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (0.55%)
3,500 Potlatch Corp. 118,781
- --------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (1.23%)
6,000 Waste Management, Inc.* 266,250
- --------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (4.59%)
11,500 Payless Shoe Source, Inc.* 534,750
- --------------------------------------------------------------------------------
10,500 Ross Stores Inc. 460,031
- --------------------------------------------------------------------------------
994,781
- --------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (3.20%)
2,000 Consolidated Stores Corp.* 60,625
- --------------------------------------------------------------------------------
5,000 Dillard's, Inc. 126,875
- --------------------------------------------------------------------------------
16,000 Federated Departmental Stores 246,000
- --------------------------------------------------------------------------------
10,000 Saks Inc.* 260,000
- --------------------------------------------------------------------------------
693,500
- --------------------------------------------------------------------------------
RETAIL - DRUG STORES (0.56%)
4,000 Longs Drug Stores Corp. 121,750
- --------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (0.52%)
14,000 Pier 1 Imports, Inc. 113,750
- --------------------------------------------------------------------------------
SHOES & RELATED APPAREL (1.58%)
36,000 Wolverine World Wide, Inc. 342,000
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (1.13%)
2,500 Tellabs, Inc.* 244,375
- --------------------------------------------------------------------------------
TEXTILE - APPAREL MANUFACTURING (1.11%)
3,500 Tommy Hilfiger Corp.* 241,062
- --------------------------------------------------------------------------------
TRANSPORTATION - SERVICES (1.62%)
6,500 Expeditors International of
Washington, Inc. 351,000
- --------------------------------------------------------------------------------
TRANSPORTATION - SHIPPING (1.11%)
14,000 Knightsbridge Tankers Ltd. 241,500
- --------------------------------------------------------------------------------
TRUCKS & PARTS - HEAVY DUTY (0.64%)
18,000 Stewart & Stevenson Services, Inc. 138,375
- --------------------------------------------------------------------------------
UTILITY - GAS DISTRIBUTION (1.63%)
9,000 National Fuel Gas Co. 353,250
- --------------------------------------------------------------------------------
</TABLE>
38 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (97.38%) - CONTINUED March 31, 1999
- --------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- --------------------------------------------------------------------------------
<S> <C>
UTILITY - TELEPHONE (1.90%)
3,000 Telecomunicacoes Brasileiras
S.A. - Telebras* $ 241,875
- --------------------------------------------------------------------------------
3,000 Telephone and Data Systems, Inc. 169,512
- --------------------------------------------------------------------------------
411,387
- --------------------------------------------------------------------------------
Total Common Stock
(cost $19,533,429) 21,120,531
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (3.44%) March 31, 1999
$747,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $747,100 on
April 1, 1999, collateralized by
U.S. Treasury Bond -
January 25, 2007, with a
value of $764,400. $ 747,000
- --------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $747,000) 747,000
- --------------------------------------------------------------------------------
Total Investments (cost $20,280,429) (100.82%) 21,867,531
- --------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-0.82%) (178,551)
- --------------------------------------------------------------------------------
Net Assets (100.00%) $21,688,980
- --------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See notes to financial statements
Berger Funds March 31, 1999 Semi-Annual Report 39
<PAGE>
BERGER MID CAP VALUE FUND
- ------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $20,280,429
- -------------------------------------------------------------------------------------------------------------
Investments, at value $21,867,531
- -------------------------------------------------------------------------------------------------------------
Cash 666
- -------------------------------------------------------------------------------------------------------------
Receivables
Investment securities sold 169,164
- -------------------------------------------------------------------------------------------------------------
Fund shares sold 149,137
- -------------------------------------------------------------------------------------------------------------
Dividends 36,060
- -------------------------------------------------------------------------------------------------------------
Interest 100
- -------------------------------------------------------------------------------------------------------------
Total Assets 22,222,658
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 316,421
- -------------------------------------------------------------------------------------------------------------
Fund shares redeemed 191,163
- -------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 14,033
- -------------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 1,309
- -------------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 352
- -------------------------------------------------------------------------------------------------------------
Accrued 12b-1 fees 4,678
- -------------------------------------------------------------------------------------------------------------
Accrued audit fees 5,536
- -------------------------------------------------------------------------------------------------------------
Accrued administrative service fees 186
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 533,678
- -------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $21,688,980
- -------------------------------------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- -------------------------------------------------------------------------------------------------------------
Shares Outstanding 1,942,929
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 11.16
- -------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 200,827
- -------------------------------------------------------------------------------------------------------------
Interest 57,912
- -------------------------------------------------------------------------------------------------------------
Total Income 258,739
- -------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 82,859
- -------------------------------------------------------------------------------------------------------------
Administrative services fee 1,105
- -------------------------------------------------------------------------------------------------------------
Accounting fees 4,443
- -------------------------------------------------------------------------------------------------------------
Custodian fees 13,177
- -------------------------------------------------------------------------------------------------------------
Transfer agent fees 26,846
- -------------------------------------------------------------------------------------------------------------
Registration fees 6,387
- -------------------------------------------------------------------------------------------------------------
12b-1 fees 27,620
- -------------------------------------------------------------------------------------------------------------
Audit fees 5,136
- -------------------------------------------------------------------------------------------------------------
Legal fees 655
- -------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 976
- -------------------------------------------------------------------------------------------------------------
Reports to shareholders 10,414
- -------------------------------------------------------------------------------------------------------------
Other expenses 342
- -------------------------------------------------------------------------------------------------------------
Gross Expenses 179,960
- -------------------------------------------------------------------------------------------------------------
Less earnings credits (844)
- -------------------------------------------------------------------------------------------------------------
Net Expenses 179,116
- -------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 79,623
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 1,247,133
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 116,325
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign
currency transactions 2,481,512
- -------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 3,844,970
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,924,593
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
40 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER MID CAP VALUE FUND
- ------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended Period from
March 31, 1999 August 12, 1998(1) to
(Unaudited) September 30, 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 79,623 $ 62,607
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 1,247,133 (122,356)
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 116,325 (431,756)
- ----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 2,481,512 (894,410)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 3,924,593 (1,385,915)
- ----------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (116,337) --
- ----------------------------------------------------------------------------------------------------------------
Net realized gains on investments -- --
- ----------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (116,337) --
- ----------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 2,671,020 21,855,353
- ----------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends
and distributions 114,596 --
- ----------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (4,615,348) (758,982)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (1,829,732) 21,096,371
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 1,978,524 19,710,456
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 19,710,456 --
- ----------------------------------------------------------------------------------------------------------------
End of period $21,688,980 $19,710,456
- ----------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $19,266,639 $21,096,371
- ----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 25,893 62,607
- ----------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 809,346 (554,112)
- ----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign
currency transactions 1,587,102 (894,410)
- ----------------------------------------------------------------------------------------------------------------
Total $21,688,980 $19,710,456
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 246,266 2,193,503
- ----------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 10,513 --
- ----------------------------------------------------------------------------------------------------------------
Shares repurchased (426,445) (80,908)
- ----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (169,666) 2,112,595
- ----------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 2,112,595 --
- ----------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,942,929 2,112,595
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 41
<PAGE>
[PHOTO]
BERGER 100 FUND
- -------------------------------------------------------------------------------
- - Ticker Symbol BEONX
- -------------------------------------------------------------------------------
- - Fund Number 43
- -------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Patrick S. Adams
- -------------------------------------------------------------------------------
PERFORMANCE
The Berger 100 Fund (the "Fund") gained 35.21%(1) for the six-month period
ending March 31, 1999, which outpaced the 27.32% return for the Standard &
Poor's (S&P) 500 Index(2) and outperformed the 19.96% gain for the S&P MidCap
400 Index(3) over that same time frame.
Our Fund focuses on investments in mid to large cap growth companies. The best
comparison for our performance is an equal weighting of large and mid cap
indexes. A broad market rally occurred between October 1998 and January 1999. In
the first quarter 1999, the market narrowed and the very largest cap companies
once again dominated performance, as they had for most of 1998. The S&P MidCap
400 Index and our Fund significantly outperformed the S&P 500 Index in the
fourth quarter 1998. Our Fund outperformed the S&P MidCap 400 Index and was
slightly behind the S&P 500 Index for the first quarter 1999.
PERIOD IN REVIEW
The U.S. economy continued its robust growth in the first quarter, driven by
healthy consumer spending, strength in the housing sector, stable inflation
rates and tight labor markets. The global environment is still in question,
however, attention has shifted from Asia to Latin America. The Pacific-Rim
region seems to have bottomed and Latin America, specifically Brazil, will most
likely keep pressure on the Federal Reserve Board to hold down interest rates.
Rising rates would have a negative impact on Brazil and other Latin America
trading partners. All of these factors will continue to have implications for
the U.S. economy going forward.
An overweighting in technology and retail sectors, 29% and 9% respectively,
contributed positively to Fund performance during this period. Good performers
included semiconductor manufacturers Xilinx (3.9% of total Fund assets), Maxim
Integrated Products (1.6% of assets) and Texas Instruments (1.1% of assets);
semiconductor equipment manufacturer Lam Research (0.9% of assets); and wide
area network provider Ascend Communications (1.7% of assets). Intel (no longer
held in the Fund) also had good gains. We believe the semiconductor industry
will continue its vigorous growth in the near and long term because of its
pivotal role in the build out of electronic commerce and wireless
communications.
Specialty retail companies Consolidated Stores (4.7% of assets), Abercrombie &
Fitch (1.9% of assets) and Tommy Hilfiger (2.5% of assets) also aided
performance. We believe this sector will be able to take advantage of a
continued strong domestic economy.
We expect the overall market to begin to catch up to those stocks responsible
for the first quarter 1999 gains in the S&P 500 because the U.S. economy is
enjoying robust growth and the market tends to broaden when the economy is
strong. Our Fund currently has 46% of total assets allocated to mid cap stocks
with a market cap of $1 to $10 billion and 49% to larger cap stocks with a
market cap over $10 billion. We believe these allocations position our Fund to
take advantage of a broadening market, one in which mid to large cap stocks
should outperform the giant (largest) cap stocks because of their substantial
discount in valuation and comparable fundamentals.
LOOKING AHEAD
Although we are cautiously optimistic that the market will continue its positive
trend, three things concern us: narrowness of the market, the temporary effect
that Y2K spending patterns have on hardware and software technology demand and
the possible negative impact of the global economy on the U.S economy.
Looking forward, we continue to strongly emphasize our philosophy: earnings
growth will be the primary driver of stock prices. We believe there will be
continued volatility in the markets. In fact, if the market remains narrow, with
performance concentrated in a few of the largest cap securities, we could see a
major correction similar to the one in 1998. On the positive side, however, this
should provide excellent investment opportunities in superior growth stocks. We
will use our fundamental, bottom-up (company by company stock selection)
approach to stock selection to attempt to identify and take advantage of those
opportunities.
1. Performance figures are based on historical results and are not intended
to be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2. The S&P 500 Index is an unmanaged index, with dividends reinvested,
which consists of the common stocks of 500 publicly traded U.S. companies. It
is a generally recognized indicator used to measure overall performance of
the U.S. stock market. One cannot invest directly in an index.
3. The S&P MidCap 400 Index is an unmanaged index, with dividends
reinvested, and is generally representative of the market for stocks for
mid-sized companies. One cannot invest directly in an index.
42 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER 100 FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISION OF CHANGE IN VALUE OF BERGER 100 FUND VS. S&P 500 INDEX AND COST
OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Cost of Living
Berger 100 Fund S&P 500 Index Index
<S> <C> <C> <C>
12/30/1989 $10,000 $10,000 $10,000
3/31/1990 $13,016 $11,923 $10,523
3/31/1991 $16,616 $13,641 $11,038
3/31/1992 $23,229 $15,143 $11,390
3/31/1993 $26,018 $17,447 $11,742
3/31/1994 $30,080 $17,703 $12,036
3/31/1995 $29,837 $20,456 $12,379
3/31/1996 $37,899 $27,017 $12,731
3/31/1997 $38,163 $32,373 $13,083
3/31/1998 $54,310 $47,902 $13,262
3/31/1999 $55,477 $56,745 $13,491
</TABLE>
BERGER 100 FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- --------------------
<S> <C>
1 Year 2.15%
- --------------------
5 Year 13.02%
- --------------------
10 Year 18.69%
- --------------------
</TABLE>
* Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares.
Berger Funds March 31, 1999 Semi-Annual Report 43
<PAGE>
BERGER 100 FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (91.21%) March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C>
BANKS - MONEY CENTER (2.99%)
616,800 BankAmerica Corp. $ 43,561,500
- -------------------------------------------------------------------------------
BANKS - SUPER REGIONAL (3.63%)
961,200 Banc One Corp. 52,926,075
- -------------------------------------------------------------------------------
BEVERAGES - SOFT DRINKS (5.10%)
785,000 Pepsico, Inc. 30,762,187
- -------------------------------------------------------------------------------
2,005,000 The Pepsi Bottling Group, Inc.* 43,483,437
- -------------------------------------------------------------------------------
74,245,624
- -------------------------------------------------------------------------------
COMPUTER - GRAPHICS (5.38%)
3,042,550 Cadence Design Systems, Inc.* 78,345,662
- -------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (1.67%)
290,600 Ascend Communications, Inc.* 24,319,587
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (0.00%)
838 Structural Dynamics Research Corp.* 15,974
- -------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (2.56%)
520,000 Tyco International, Ltd. 37,310,000
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.52%)
150,000 Applied Materials, Inc.* 9,253,125
- -------------------------------------------------------------------------------
445,000 Lam Research Corp.* 12,905,000
- -------------------------------------------------------------------------------
22,158,125
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (16.60%)
768,300 Altera Corp.* 45,713,850
- -------------------------------------------------------------------------------
442,800 Maxim Integrated Products, Inc.* 23,966,550
- -------------------------------------------------------------------------------
679,400 Micron Technology, Inc.* 32,781,050
- -------------------------------------------------------------------------------
908,900 Motorola, Inc. 66,576,925
- -------------------------------------------------------------------------------
156,000 Texas Instruments Inc. 15,483,000
- -------------------------------------------------------------------------------
1,410,900 Xilinx, Inc.* 57,229,631
- -------------------------------------------------------------------------------
241,751,006
- -------------------------------------------------------------------------------
FINANCE - CONSUMER LOANS (6.47%)
155,000 Associates First Capital Corp. Class A 6,975,000
- -------------------------------------------------------------------------------
1,913,200 Household International, Inc. 87,289,750
- -------------------------------------------------------------------------------
94,264,750
- -------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED (1.26%)
320,000 Federal Home Loan Mortgage Corp. 18,280,000
- -------------------------------------------------------------------------------
FINANCE - PUBLICLY TRADED INVESTMENT FUND (4.70%)
532,200 S&P 500 Depositary Receipts 68,387,700
- -------------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (1.73%)
1,069,100 Heller Financial, Inc. 25,123,850
- -------------------------------------------------------------------------------
INSURANCE - DIVERSIFIED (0.80%)
166,300 The Equitable Cos., Inc. 11,641,000
- -------------------------------------------------------------------------------
INSURANCE - LIFE (1.39%)
655,000 Conseco, Inc. 20,223,125
- -------------------------------------------------------------------------------
LEISURE - PRODUCTS (0.86%)
251,800 The Seagram Co. Ltd. 12,590,000
- -------------------------------------------------------------------------------
LEISURE - SERVICES (1.20%)
447,500 Royal Caribbean Cruises Ltd. 17,452,500
- -------------------------------------------------------------------------------
LEISURE - TOYS/GAMES/HOBBY (1.13%)
660,000 Mattel, Inc. 16,417,500
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (1.93%)
596,200 Chancellor Media Corp.* 28,095,925
- -------------------------------------------------------------------------------
MEDICAL - BIOMEDICAL/GENETICS (1.01%)
399,100 Centocor, Inc.* 14,766,707
- -------------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (1.54%)
338,700 Warner-Lambert Co. 22,417,706
- -------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (2.49%)
520,900 Elan Corp. PLC* 36,332,775
- -------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (0.65%)
250,000 Quintiles Transnational Corp.* 9,437,500
- -------------------------------------------------------------------------------
MEDICAL - PRODUCTS (0.95%)
254,300 Teradyne, Inc.* 13,875,243
- -------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (2.56%)
564,500 McKesson HBOC, Inc. 37,257,000
- -------------------------------------------------------------------------------
OIL & GAS - MACHINERY/EQUIPMENT (0.23%)
100,000 Cooper Cameron Corp.* 3,387,500
- -------------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (1.13%)
600,000 USX-Marathon Corp. 16,500,000
- -------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (0.97%)
333,600 International Paper Co. 14,073,750
- -------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (3.85%)
1,263,160 Waste Management, Inc.* 56,052,725
- -------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (2.54%)
299,800 Abercrombie & Fitch Co.* 27,581,600
- -------------------------------------------------------------------------------
216,200 Ross Stores Inc. 9,472,262
- -------------------------------------------------------------------------------
37,053,862
- -------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (4.70%)
2,256,300 Consolidated Stores Corp.* 68,394,093
- -------------------------------------------------------------------------------
RETAIL/WHOLESALE - BUILDING PRODUCTS (0.42%)
100,000 Lowes Cos., Inc. 6,050,000
- -------------------------------------------------------------------------------
RETAIL/WHOLESALE - OFFICE SUPPLIES (1.23%)
484,800 Office Depot, Inc.* 17,846,700
- -------------------------------------------------------------------------------
</TABLE>
44 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (91.21%)-CONTINUED March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C>
TELECOMMUNICATIONS - EQUIPMENT (1.68%)
250,000 Ciena Corp.* $ 5,625,000
- -------------------------------------------------------------------------------
175,000 Lucent Technologies, Inc. 18,856,250
- -------------------------------------------------------------------------------
24,481,250
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (1.87%)
270,000 AT & T Corp. 21,549,375
- -------------------------------------------------------------------------------
65,000 MCI WorldCom, Inc.* 5,756,562
- -------------------------------------------------------------------------------
27,305,937
- -------------------------------------------------------------------------------
TEXTILE - APPAREL MANUFACTURING (2.47%)
524,000 Tommy Hilfiger Corp.* 36,090,500
- -------------------------------------------------------------------------------
Total Common Stock
(cost $1,137,088,232) 1,328,433,151
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (11.92%)
- -------------------------------------------------------------------------------
$30,000,000 Federal Home Loan Mortgage
Corp. Discount Note - 4.75%,
4/29/99 $ 29,889,166
- -------------------------------------------------------------------------------
10,000,000 Federal Home Loan Mortgage
Corp. Discount Note - 4.76%,
4/26/99(1) 9,966,944
- -------------------------------------------------------------------------------
22,000,000 Federal Home Loan Mortgage
Corp. Discount Note - 4.75%,
4/19/99(1) 21,947,750
- -------------------------------------------------------------------------------
50,000,000 Federal Home Loan Mortgage
Association Discount Note -
4.73%, 4/19/99 49,881,750
- -------------------------------------------------------------------------------
13,000,000 Federal Home Loan Mortgage
Association Discount Note -
4.72%, 4/16/99 12,974,433
- -------------------------------------------------------------------------------
49,000,000 Federal Home Loan Mortgage
Corp. Discount Note - 4.76%,
4/14/99(1) 48,915,774
- -------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $ 173,575,817) 173,575,817
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (2.05%)
- -------------------------------------------------------------------------------
29,837,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $29,840,995 on
April 1, 1999, collateralized by U.S.
Treasury Bond - October 25, 2010,
with a value of $30,434,660. 29,837,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $29,837,000) 29,837,000
- -------------------------------------------------------------------------------
Total Investments (cost $1,340,501,049) (105.18%) 1,531,845,968
- -------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-5.18%) (75,395,539)
- -------------------------------------------------------------------------------
Net Assets (100.00%) $1,456,450,429
- -------------------------------------------------------------------------------
OPEN FUTURES CONTRACTS AT MARCH 31, 1999
- -------------------------------------------------------------------------------
Opening Current
Number of Contract Market Market Realized
Contracts Type Value Value Gain (Loss)
- -------------------------------------------------------------------------------
175 Long S&P
500 Stock
Index
June 1999
Futures $57,548,457 $56,581,875 $(966,582)
- -------------------------------------------------------------------------------
</TABLE>
1. Collateral for futures contracts.
* Non-income producing security.
PLC - Public Limited Company.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 45
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $1,340,501,049
- -------------------------------------------------------------------------------------------------------------------
Investments, at value $1,531,845,968
- -------------------------------------------------------------------------------------------------------------------
Cash 550
- -------------------------------------------------------------------------------------------------------------------
Receivables
Investment securities sold 39,690,146
- -------------------------------------------------------------------------------------------------------------------
Fund shares sold 267,663
- -------------------------------------------------------------------------------------------------------------------
Dividends 1,427,502
- -------------------------------------------------------------------------------------------------------------------
Interest 3,994
- -------------------------------------------------------------------------------------------------------------------
Total Assets 1,573,235,823
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 111,258,717
- -------------------------------------------------------------------------------------------------------------------
Fund shares redeemed 2,056,152
- -------------------------------------------------------------------------------------------------------------------
Variation margin 980,000
- -------------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 936,187
- -------------------------------------------------------------------------------------------------------------------
Accrued custodian and accounting fees 44,177
- -------------------------------------------------------------------------------------------------------------------
Accrued transfer agent fees 532,094
- -------------------------------------------------------------------------------------------------------------------
Accrued 12b-1 fees 312,063
- -------------------------------------------------------------------------------------------------------------------
Accrued audit fees 17,401
- -------------------------------------------------------------------------------------------------------------------
Accrued administrative service fees 12,483
- -------------------------------------------------------------------------------------------------------------------
Accrued shareholder reports 636,120
- -------------------------------------------------------------------------------------------------------------------
Total Liabilities 116,785,394
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $1,456,450,429
- -------------------------------------------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- -------------------------------------------------------------------------------------------------------------------
Shares Outstanding 96,206,913
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 15.14
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 4,079,588
- -------------------------------------------------------------------------------------------------------------------
Interest 2,997,836
- -------------------------------------------------------------------------------------------------------------------
Total Income 7,077,424
- -------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 5,481,338
- -------------------------------------------------------------------------------------------------------------------
Administrative services fee 73,085
- -------------------------------------------------------------------------------------------------------------------
Accounting fees 75,906
- -------------------------------------------------------------------------------------------------------------------
Custodian fees 66,422
- -------------------------------------------------------------------------------------------------------------------
Transfer agent fees 1,621,240
- -------------------------------------------------------------------------------------------------------------------
12b-1 fees 1,827,113
- -------------------------------------------------------------------------------------------------------------------
Audit fees 17,001
- -------------------------------------------------------------------------------------------------------------------
Legal fees 29,627
- -------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 64,358
- -------------------------------------------------------------------------------------------------------------------
Reports to shareholders 1,024,161
- -------------------------------------------------------------------------------------------------------------------
Other expenses 15,772
- -------------------------------------------------------------------------------------------------------------------
Gross Expenses 10,296,023
- -------------------------------------------------------------------------------------------------------------------
Less fees paid indirectly (120,794)
- -------------------------------------------------------------------------------------------------------------------
Less earnings credits (17,816)
- -------------------------------------------------------------------------------------------------------------------
Net Expenses 10,157,413
- -------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (3,079,989)
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 183,179,023
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 1,014,074
- -------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions 253,419,985
- -------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 437,613,082
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING/FROM OPERATIONS $ 434,533,093
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
46 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $(3,079,989) $(6,562,949)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 183,179,023 104,647,304
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on futures contracts 1,014,074 --
- ---------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 253,419,985 (344,876,495)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 434,533,093 (246,792,140)
- ---------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (100,317,158) (600,637,304)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (100,317,158) (600,637,304)
- ---------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 75,737,140 290,185,487
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 97,504,772 585,186,009
- ---------------------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (337,835,664) (640,161,573)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (164,593,752) 235,209,923
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 169,622,183 (612,219,521)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,286,828,246 1,899,047,767
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $1,456,450,429 $1,286,828,246
- ---------------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $1,090,233,812 $1,254,827,564
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (3,237,511) (157,522)
- ---------------------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 178,109,209 94,233,270
- ---------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign currency transactions 191,344,919 (62,075,066)
- ---------------------------------------------------------------------------------------------------------------------------------
Total $1,456,450,429 $1,286,828,246
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 5,495,822 19,158,620
- ---------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 7,075,819 42,594,228
- ---------------------------------------------------------------------------------------------------------------------------------
Shares repurchased (23,689,575) (42,694,648)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (11,117,934) 19,058,200
- ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 107,324,847 88,266,647
- ---------------------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 96,206,913 107,324,847
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 47
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
- --------------------------------------------------------------------------------
- - Ticker Symbol BBINX
- --------------------------------------------------------------------------------
- - Fund Number 349
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY BANK OF IRELAND ASSET
MANAGEMENT (U.S.) LTD.
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger/BIAM International Fund (the "Fund") had a total return of 23.11%(1)
for the six-month period ended March 31, 1999, compared to 22.51% for the MSCI
EAFE Index.(2)
Global equity markets rebounded strongly for the fourth quarter 1998, prompted
primarily by interest rate reductions in the U.S. and Europe. In contrast,
global markets turned in mixed performances in the first quarter 1999.
The long-awaited birth of the euro got European stock markets off to a flying
start in January, but they lost some ground that was recovered somewhat by the
end of the period. The Japanese market benefited from a more positive sentiment
among investors but moved sideways except for a period when it was driven by
overseas buying. In the rest of the Pacific region, however, markets turned in
varied results.
PERIOD IN REVIEW
Stocks in the Growth in Telecommunications theme led our portfolio higher this
period. The most notable performers in the quarter ended December 31, 1998 were
KPN (1.1% of total Fund assets) and Alcatel Alsthom (1.0% of assets). Alcatel,
with Fujistu of Japan, was awarded the supply contract for the 18,000 mile
trans-Pacific cable link between Australia and the U.S. Mannesmann, a German
quoted conglomerate, (4.0% of assets) had a strong first quarter 1999, and two
of our largest telecommunications holdings - Vodafone (3.1% of assets) and
Telecom Italia (3.0% of assets) - were involved in the merger and acquisition
activity that engulfed global telecommunications companies. KPN in the
Netherlands and Tele Danmark both underperformed in the first quarter 1999 due
to somewhat disappointing results and a bout of profit taking.
Stocks in the Positive Banking Environment theme strengthened significantly and
our Fund particularly benefited from performances by Barclays Bank (2.3% of
assets) and National Australia Bank (1.8% of assets). One portfolio holding
bucked this positive trend - Bayerische HypoVereinsbank (0.9% of assets), which
suffered as a result of issues arising from events that took place prior to the
merger that formed the new entity last year. In an effort to clear the air,
HypoVereinsbank announced the hiring of an outside auditor to review its
accounts.
In our Technological Innovation theme, some Japanese-quoted stocks made a
positive contribution to the portfolio's performance this period. Murata
Manufacturing (1.2% of assets) continues to see strong orders from European
telecommunications companies and has raised net profit expectations by 12%.
Canon's (2.2% of assets) calendar year 1998 results were in line with
expectations and the company said its operating margins should remain solid.
Sony (2.4% of assets) made a significant contribution to the portfolio's
performance during the first quarter 1999. The stock received a boost when the
company announced aggressive restructuring plans, an unusual move for a Japanese
company.
Stocks in the Growth in Personal Savings theme had a negative impact on the
portfolio. Dutch Company ING (3.3% of assets), which saw its fourth quarter
profit decline, led the group lower. Prudential (2.0% of assets), the UK's
largest insurance company, experienced several rounds of profit taking even
after it announced satisfactory earnings results and its intent to purchase a
British company that represents enhanced shareholder value.
Pharmaceutical stocks in the Healthcare Needs theme also suffered during the
first quarter. The biggest decliner among these stocks was Novartis (2.1% of
assets), which fell after the company revealed a slow down in sales.
LOOKING AHEAD
We remain concerned about prospects for significant corporate earnings growth in
light of the low growth rates forecasted for the global economy. Additionally,
equity market strength in most countries is narrowly concentrated and momentum
investing remains the flavor of the day. The degree of narrowness of strength in
the U.S. equity market has been well documented. Unfortunately, the same is
true, though to a varying extent, in international equity markets.
Value is emerging in certain areas, but ongoing company profit warnings and
subsequent sharp drops in share prices make stock selection treacherous. Given
this backdrop, we seek companies with visible earnings growth momentum even
though the market now demands an ever-increasing price for good earnings news.
We are looking for companies that are willing to take advantage of the
restructuring opportunities that now exist given the low interest-rate
environment around the world. This is specifically true of Europe. There have
been some encouraging signs in Japan, although to date the progress has been
slow.
1. Performance figures are based on historical results and are not intended
to be indicative of future performance. The investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2. The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index, with dividends reinvested.
One cannot invest directly in an index.
48 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER/BIAM INTERNATIONAL FUND VS.
EAFE INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger/BIAM EAFE Cost of
International Fund Index Living Index
<S> <C> <C> <C>
7/31/1989 $10,000 $10,000 $10,000
3/31/1990 $12,640 $8,388 $10,346
3/31/1991 $12,550 $8,628 $10,852
3/31/1992 $13,450 $7,963 $11,198
3/31/1993 $15,320 $8,919 $11,543
3/31/1994 $18,520 $10,956 $11,833
3/31/1995 $18,620 $11,654 $12,170
3/31/1996 $23,060 $13,130 $12,516
3/31/1997 $25,739 $13,361 $12,862
3/31/1998 $29,988 $15,889 $13,039
3/31/1999 $31,448 $16,901 $13,264
</TABLE>
BERGER/BIAM INTERNATIONAL FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ------------------------------
<S> <C>
1 Year 4.87%
- ------------------------------
5 Year 11.17%
- ------------------------------
Life of Fund 12.59%
- ------------------------------
(7/31/89)
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss
when you sell shares. Performance figures are historical and, in part,
reflect the performance of a pool of assets advised by BIAM (Bank of Ireland
Asset Management) for periods before the Fund commenced operations on October
11, 1996, adjusted to reflect any increased expenses associated with
operating the Fund. The asset pool was not registered with the Securities and
Exchange Commission and therefore was not subject to the investment
restrictions imposed by law on registered mutual funds. If the pool had been
registered, its performance might have been adversely affected.
Berger Funds March 31, 1999 Semi-Annual Report 49
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value $ 19,904,167
- ----------------------------------------------------------------------------------------------------------------------
Receivable from fund shares sold 2,356
- ----------------------------------------------------------------------------------------------------------------------
Total Assets 19,906,523
- ----------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Fund shares redeemed 369,264
- ----------------------------------------------------------------------------------------------------------------------
Accrued 12b-1 fees 4,325
- ----------------------------------------------------------------------------------------------------------------------
Accrued administrative service fees 7,785
- ----------------------------------------------------------------------------------------------------------------------
Total Liabilities 381,374
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 19,525,149
- ----------------------------------------------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- ----------------------------------------------------------------------------------------------------------------------
Shares Outstanding 1,643,444
- ----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 11.88
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividends $ 120,082
- ----------------------------------------------------------------------------------------------------------------------
Interest 11,275
- ----------------------------------------------------------------------------------------------------------------------
Foreign withholding taxes (12,995)
- ----------------------------------------------------------------------------------------------------------------------
Portfolio expeses (net of earnings credits and fee waivers totaling $2,230) (93,315)
- ----------------------------------------------------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 25,047
- ----------------------------------------------------------------------------------------------------------------------
FUND EXPENSES
Administrative services fee 42,740
- ----------------------------------------------------------------------------------------------------------------------
Registration fees 4,931
- ----------------------------------------------------------------------------------------------------------------------
12b-1 fees 23,745
- ----------------------------------------------------------------------------------------------------------------------
Legal fees 1,003
- ----------------------------------------------------------------------------------------------------------------------
Net Expenses 72,419
- ----------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (47,372)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS ALLOCATED
FROM PORTFOLIO
Net realized gain (loss) on securities and foreign currency transactions (623,318)
- ----------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign currency transactions 4,596,420
- ----------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions Allocated 3,973,102
from Portfolio
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,925,730
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
50 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER/BIAM INTERNATIONAL FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (47,372) $ 412,713
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions
allocated from Portfolio (623,318) (566,046)
- ----------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions allocated from Portfolio 4,596,420 (1,417,196)
- ----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 3,925,730 (1,570,529)
- ----------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (768,593) (98,586)
- ----------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (32,175) (595,013)
- ----------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (800,768) (693,599)
- ----------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 24,436,835 14,273,535
- ----------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 784,624 671,358
- ----------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (25,333,460) (14,841,862)
- ----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (112,001) 103,031
- ----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 3,012,961 (2,161,097)
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 16,512,188 18,673,285
- ----------------------------------------------------------------------------------------------------------------------
End of period $ 19,525,149 $ 16,512,188
- ----------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
Capital (par value and paid in surplus) $16,105,300 $16,217,301
- ----------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in excess of) net investment income (8,017) 807,948
- ----------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in excess of) net realized gain from investments
and foreign currency transactions (1,240,244) (584,751)
- ----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign currency 4,668,110 71,690
transactions
- ----------------------------------------------------------------------------------------------------------------------
Total $ 19,525,149 $ 16,512,188
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
Caption>
- ----------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,133,870 1,257,896
- ----------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 68,500 64,871
- ----------------------------------------------------------------------------------------------------------------------
Shares repurchased (2,200,496) (1,310,950)
- ----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 1,874 11,817
- ----------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 1,641,570 1,629,753
- ----------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,643,444 1,641,570
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 51
<PAGE>
[PHOTO]
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
- - Ticker Symbol BEOOX
- --------------------------------------------------------------------------------
- - Fund Number 44
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER'S COMMENTARY Tino R. Sellitto
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger Growth and Income Fund (the "Fund") gained 35.59%(1) for the six
months ended March 31, 1999, which significantly outpaced the 27.32% gain of
the Standard & Poor's (S&P) 500 Index(2) over the same period.
Against a backdrop of strong economic growth and moderate inflation, our
Fund's continued focus on large, high-quality, consistent growth companies
served us well. During the period, we had heavier weightings in industries
that turned in strong results, particularly technology, consumer cyclicals,
and energy.
PERIOD IN REVIEW
During the six-month period, we made several strategic shifts in our sector
weightings. In the second half of the period we added to positions in
technology, transportation and energy and trimmed back healthcare, financials
and consumer staples. We reduced cash and equivalents from 11% of total Fund
assets on October 1, 1998 to just under 2% on March 31, 1999.
We owned several stocks that registered outstanding gains this period,
including America Online (3.6% of total Fund assets), Amgen (2.1% of assets),
EMC Corp. (2.9% of assets), Global Crossing (1.4% of assets), Halliburton
(1.3% of assets), Intel (1.6% of assets), MCI WorldCom (2.6% of assets),
Microsoft (3.4% of assets), Morgan Stanley Dean Witter (1.3% of assets) and
Sun Microsystems (1.6% of assets).
Two of our portfolio holdings were acquired during the fourth quarter 1998.
Exxon acquired Mobil (0.9% of assets--when acquired) and Scottish Power
acquired New England Electric* (1.0% of assets--when acquired).
Stocks that dragged Fund performance this period were Apple Computer,* CVS
(0.5% of assets), FPL Group (0.1% of assets), Freddie Mac (1.1% of assets),
Safeway (0.8% of assets) and Waste Management.* Particularly during the first
quarter 1999, the market moved away from defensive stocks, causing drug store
and supermarket stocks, among others, to underperform.
LOOKING AHEAD
The year ahead continues to look promising. The consumer still appears to be
optimistic, corporations are positioned for another strong year of growth and
interest rates have stabilized. Inflation is a potential risk to the market, but
it has yet to manifest itself in increases in the consumer price index (CPI). As
long as inflation remains in check, we should see more strong performance from
the stock market.
1. Performance figures are based on historical results and are
not intended to be indicative of future performance. The investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
2. The S&P 500 Index is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 500 publicly traded U.S. companies. It is a
generally recognized indicator used to measure overall performance of the U.S.
stock market. One cannot invest directly in an index.
*As of 3/31/99 - no longer held by the Fund.
52 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER GROWTH & INCOME FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Growth & S&P 500 Cost of
Income Fund Index Living Index
<S> <C> <C> <C>
3/31/1989 $10,000 $10,000 $10,000
3/31/1990 $11,320 $11,923 $10,523
3/31/1991 $12,712 $13,641 $11,038
3/31/1992 $17,415 $15,143 $11,390
3/31/1993 $19,080 $17,447 $11,742
3/31/1994 $21,248 $17,703 $12,036
3/31/1995 $20,968 $20,456 $12,379
3/31/1996 $26,391 $27,017 $12,731
3/31/1997 $29,553 $32,373 $13,083
3/31/1998 $39,929 $47,902 $13,262
3/31/1999 $49,486 $56,745 $13,491
</TABLE>
BERGER GROWTH & INCOME FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------
<S> <C>
1 Year 23.94%
- ----------------------------
5 Year 18.42%
- ----------------------------
10 Year 17.34%
- ----------------------------
</TABLE>
*Performance figures are historical and do not
represent future results. Investment returns
and principal value will vary, and you may
have a loss when you sell shares.
Semi-Annual Report March 31, 1999 Berger Funds 53
<PAGE>
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (83.04%) MARCH 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
AEROSPACE/DEFENSE (1.81%)
118,300 Ratheon Company $ 6,935,337
- -------------------------------------------------------------------------------
BANKS - SOUTHEAST (1.37%)
144,000 First Tennessee National Corp. 5,274,000
- -------------------------------------------------------------------------------
BANKS - SUPER REGIONAL (2.36%)
63,000 Nothern Trust Corp. 5,595,187
- -------------------------------------------------------------------------------
96,400 The Bank of New York Company, Inc. 3,464,375
- -------------------------------------------------------------------------------
9,059,562
- -------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.56%)
90,000 Zions Bancorp. 5,985,000
- -------------------------------------------------------------------------------
CHEMICALS - BASIC (1.49%)
154,800 Akzo Nobel N.V. ADR 5,727,600
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (0.97%)
78,600 Paychex, Inc. 3,728,587
- -------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (2.14%)
75,000 Cisco Systems, Inc.* 8,217,187
- -------------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (2.19%)
52,600 Dell Computer Corp.* 2,150,025
- -------------------------------------------------------------------------------
50,100 Sun Microsystems, Inc.* 6,259,368
- -------------------------------------------------------------------------------
8,409,393
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (1.77%)
205,300 IMS Health, Inc. 6,800,562
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (3.42%)
146,700 Microsoft Corp.* 13,147,987
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - INTERNET (0.72%)
36,900 Vignette Corp.* 2,776,725
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (2.62%)
95,200 Applied Materials, Inc.* 5,872,650
- -------------------------------------------------------------------------------
75,600 Novellus Systems, Inc.* 4,167,450
- -------------------------------------------------------------------------------
10,040,100
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (3.61%)
51,100 Intel Corp. 6,087,287
- -------------------------------------------------------------------------------
73,800 Linear Technology Corp. 3,782,250
- -------------------------------------------------------------------------------
40,300 Texas Instruments, Inc. 3,999,775
- -------------------------------------------------------------------------------
13,869,312
- -------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (1.39%)
55,000 Charles Schwab Corp. 5,286,875
- -------------------------------------------------------------------------------
FINANCE - INVESTMENT MANAGEMENT (1.26%)
48,300 Morgan Stanley Dean Witter & Co. 4,826,981
- -------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (1.10%)
74,000 Federal Home Loan Mortgage Corp. 4,227,250
- -------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.90%)
84,300 Washington Mutual, Inc. $ 3,445,762
- -------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (0.90%)
18,200 Critical Path, Inc.* 1,401,400
- -------------------------------------------------------------------------------
12,200 Yahoo, Inc.* 2,054,175
- -------------------------------------------------------------------------------
3,455,575
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (1.70%)
252,800 Infinity Broadcasting Corp.* 6,509,600
- -------------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (3.14%)
107,700 Amgen, Inc.* 8,064,037
- -------------------------------------------------------------------------------
45,200 Genentech, Inc.* 4,005,850
- -------------------------------------------------------------------------------
12,069,887
- -------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (4.29%)
51,600 Elan Corp. PLC* 3,599,100
- -------------------------------------------------------------------------------
58,100 Eli Lilly Co. 4,931,237
- -------------------------------------------------------------------------------
46,700 Merck & Co. 3,744,756
- -------------------------------------------------------------------------------
67,100 Pharmacia & Upjohn, Inc. 4,185,362
- -------------------------------------------------------------------------------
16,460,455
- -------------------------------------------------------------------------------
MEDICAL - PRODUCTS (3.32%)
83,100 Allergan, Inc. 7,302,412
- -------------------------------------------------------------------------------
89,900 Guidant Corp.* 5,438,950
- -------------------------------------------------------------------------------
12,741,362
- -------------------------------------------------------------------------------
OIL & GAS - DRILLING (0.52%)
63,200 Diamond Offshore Drilling, Inc. 1,998,700
- -------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (1.27%)
126,900 Halliburton Co. 4,885,650
- -------------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL INTEGRATED (0.89%)
38,700 Mobil Corp. 3,405,600
- -------------------------------------------------------------------------------
OIL & GAS - MACHINERY/EQUIPMENT (1.03%)
163,000 Baker Hughes, Inc. 3,962,937
- -------------------------------------------------------------------------------
OIL & GAS - PRODUCTION/PIPELINE (1.47%)
142,900 The Williams Cos., Inc. 5,644,550
- -------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (2.46%)
124,000 Anadarko Petroleum Corp. 4,681,000
- -------------------------------------------------------------------------------
239,000 Evergreen Resources, Inc.* 4,780,000
- -------------------------------------------------------------------------------
9,461,000
- -------------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (1.00%)
139,700 USX-Marathon Corp. 3,841,750
- -------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (2.76%)
131,900 Intimate Brands, Inc. 6,347,687
- -------------------------------------------------------------------------------
63,100 The Gap, Inc. 4,247,418
- -------------------------------------------------------------------------------
10,595,105
- -------------------------------------------------------------------------------
</TABLE>
54 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCK (83.04%) - CONTINUED MARCH 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
RETAIL - DEPARTMENT STORES (0.93%)
50,500 Kohl's Corp.* $ 3,579,187
- -------------------------------------------------------------------------------
RETAIL - DRUG STORES (1.83%)
40,500 CVS Corp. 1,923,750
- -------------------------------------------------------------------------------
180,000 Walgreen Co. 5,085,000
- -------------------------------------------------------------------------------
7,008,750
- -------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (4.47%)
69,700 Costco Companies, Inc.* 6,381,906
- -------------------------------------------------------------------------------
161,800 Dayton-Hudson Corp. 10,779,925
- -------------------------------------------------------------------------------
17,161,831
- -------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (0.33%)
37,200 Cheap Tickets, Inc.* 1,250,850
- -------------------------------------------------------------------------------
RETAIL - SUPER/MINI-MARKETS (0.83%)
61,900 Safeway, Inc.* 3,176,243
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (4.80%)
55,000 Lucent Technologies, Inc. 5,926,250
- -------------------------------------------------------------------------------
80,200 Nokia Corp. ADR 12,491,150
- -------------------------------------------------------------------------------
18,417,400
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (11.32%)
151,700 Comcast Corp. 9,547,618
- -------------------------------------------------------------------------------
97,910 Corning, Inc. 5,874,588
- -------------------------------------------------------------------------------
119,000 Global Crossing Ltd.* 5,503,750
- -------------------------------------------------------------------------------
115,000 MCI WorldCom, Inc.* 10,184,687
- -------------------------------------------------------------------------------
92,800 Swisscom A.G.* 3,613,400
- -------------------------------------------------------------------------------
83,700 Telecom Italia S.p.A. 8,736,187
- -------------------------------------------------------------------------------
43,460,230
- -------------------------------------------------------------------------------
TRANSPORTATION - AIRLINE (0.45%)
56,900 Southwest Airlines Co. 1,721,225
- -------------------------------------------------------------------------------
UTILITY - ELECTRIC POWER (1.22%)
63,900 Montana Power Co. 4,700,643
- -------------------------------------------------------------------------------
UTILITY - TELEPHONE (1.43%)
88,300 ALLTEL Corp. 5,507,712
- -------------------------------------------------------------------------------
Total Common Stock
(cost $245,754,749) 318,774,462
- -------------------------------------------------------------------------------
<CAPTION>
CORPORATE DEBT - CONVERTIBLE (11.43%) MARCH 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
COMPUTER SOFTWARE - INTERNET (3.58%)
1,232,000 America Online, Inc.
- 4.00%, 11/15/02 $ 13,732,180
- -------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (2.92%)
1,964,000 EMC Corp. - 3.25%, 3/15/02 11,209,530
- -------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (1.29%)
4,605,000 At Home Corp.
- 0.52%, 12/28/18 144A 4,933,336
- -------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (1.07%)
2,559,000 Exodus Communications, Inc.
- 5.00%, 3/15/03 144A 4,100,797
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (1.50%)
4,662,000 Clear Channel Communications,
Inc. - 2.62%, 4/1/03 5,751,742
- -------------------------------------------------------------------------------
RETAIL - BUILDING PRODUCTS (1.09%)
1,500,000 The Home Depot, Inc.
- 3.25%, 10/1/01 4,166,250
- -------------------------------------------------------------------------------
Total Corporate Debt - Convertible
(cost $20,518,697) 43,893,835
- -------------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (4.54%)
- -------------------------------------------------------------------------------
MEDIA - CABLE TV (3.11%)
99,200 Houston Industries, Inc. 11,953,600
- -------------------------------------------------------------------------------
UTILITY - ELECTRIC POWER (1.43%)
103,000 Texas Utilities Co. 5,491,203
- -------------------------------------------------------------------------------
Total Preferred Stock - Convertible
(cost $13,358,095) 17,444,803
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.97%)
- -------------------------------------------------------------------------------
$7,540,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to be
repurchased at $7,541,010 on
April 1, 1999, collateralized by U.S.
Treasury Bond - October 25, 2010,
with a value of $7,692,930 7,540,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $7,540,000) 7,540,000
- -------------------------------------------------------------------------------
Total Investments (cost $287,171,541) (100.98%) 387,653,100
- -------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-0.98%) (3,767,933)
- -------------------------------------------------------------------------------
Net Assets (100.00%) $383,885,167
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
144A - designates the resale of this security is restricted to qualified
institutional buyers.
ADR - American Depositary Receipts.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 55
<PAGE>
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $287,171,541
- --------------------------------------------------------------------------------
Investments, at value $387,653,100
- --------------------------------------------------------------------------------
Cash 1,017
- --------------------------------------------------------------------------------
Receivables
Investment securities sold 5,170,942
- --------------------------------------------------------------------------------
Fund shares sold 6,473,965
- --------------------------------------------------------------------------------
Dividends 280,761
- --------------------------------------------------------------------------------
Interest 124,219
- --------------------------------------------------------------------------------
Total Assets 399,704,004
- --------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 11,296,771
- --------------------------------------------------------------------------------
Fund shares redeemed 3,931,773
- --------------------------------------------------------------------------------
Accrued investment advisory fees 234,992
- --------------------------------------------------------------------------------
Accrued custodian and accounting fees 8,166
- --------------------------------------------------------------------------------
Accrued transfer agent fees 113,238
- --------------------------------------------------------------------------------
Accrued 12b-1 fees 78,331
- --------------------------------------------------------------------------------
Accrued audit fees 11,915
- --------------------------------------------------------------------------------
Accrued administrative service fees 3,133
- --------------------------------------------------------------------------------
Accrued shareholder reports 140,518
- --------------------------------------------------------------------------------
Total Liabilities 15,818,837
- --------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $383,885,167
- --------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- --------------------------------------------------------------------------------
Shares Outstanding 25,619,512
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 14.98
- --------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 1,556,390
- --------------------------------------------------------------------------------
Interest 736,911
- --------------------------------------------------------------------------------
Total Income 2,293,301
- --------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 1,252,828
- --------------------------------------------------------------------------------
Administrative services fee 16,704
- --------------------------------------------------------------------------------
Accounting fees 19,062
- --------------------------------------------------------------------------------
Custodian fees 16,472
- --------------------------------------------------------------------------------
Transfer agent fees 365,310
- --------------------------------------------------------------------------------
Registration fees 15,162
- --------------------------------------------------------------------------------
12b-1 fees 417,609
- --------------------------------------------------------------------------------
Audit fees 11,515
- --------------------------------------------------------------------------------
Legal fees 7,300
- --------------------------------------------------------------------------------
Directors' fees and expenses 14,465
- --------------------------------------------------------------------------------
Reports to shareholders 242,480
- --------------------------------------------------------------------------------
Other expenses 15,154
- --------------------------------------------------------------------------------
Gross Expenses 2,394,061
- --------------------------------------------------------------------------------
Less fees paid indirectly (14,927)
- --------------------------------------------------------------------------------
Less earnings credits (8,024)
- --------------------------------------------------------------------------------
Net Expenses 2,371,110
- --------------------------------------------------------------------------------
Net Investment Income (Loss) (77,809)
- --------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign
currency transactions 26,073,203
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on
securities and foreign currency transactions 76,540,144
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions 102,613,347
- --------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $102,535,538
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
56 March 31, 1999 Semi-Annual Report Berger Funds
<PAGE>
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (77,809) $ 849,370
- ---------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions 26,073,203 55,262,003
- ---------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and foreign
currency transactions 76,540,144 (60,354,177)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 102,535,538 (4,242,804)
- ---------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income -- (810,870)
- ---------------------------------------------------------------------------------------------------------------------
In excess of net investment income (258,615) (117,492)
- ---------------------------------------------------------------------------------------------------------------------
Net realized gains on investments (61,153,114) (59,593,140)
- ---------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (61,411,729) (60,521,502)
- ---------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 35,371,282 42,707,097
- ---------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment of dividends and distributions 58,192,334 57,969,279
- ---------------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (52,131,865) (91,605,461)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 41,431,751 9,070,915
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 82,555,560 (55,693,391)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 301,329,607 357,022,998
- ---------------------------------------------------------------------------------------------------------------------
End of period $383,885,167 $301,329,607
- ---------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $267,687,222 $226,255,471
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) (425,003) (88,579)
- ---------------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 16,141,390 51,221,301
- ---------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign
currency transactions 100,481,558 23,941,414
- ---------------------------------------------------------------------------------------------------------------------
Total $383,885,167 $301,329,607
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 2,488,029 2,928,438
- ---------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of dividends and distributions 4,775,050 4,248,233
- ---------------------------------------------------------------------------------------------------------------------
Shares repurchased (3,803,565) (6,365,416)
- ---------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 3,459,514 811,255
- ---------------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 22,159,998 21,348,743
- ---------------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 25,619,512 22,159,998
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 57
<PAGE>
[PHOTO]
BERGER BALANCED FUND
- -------------------------------------------------------------------------------
- - Ticker Symbol BEBAX
- -------------------------------------------------------------------------------
- - Fund Number 213
- -------------------------------------------------------------------------------
CO-PORTFOLIO MANAGER'S COMMENTARY John B. Jares
Patrick S. Adams
- -------------------------------------------------------------------------------
PERFORMANCE
The Berger Balanced Fund (the "Fund") gained 27.01% (1) during the six months
ended March 31, 1999, compared to the 27.32% return for the Standard & Poor's
(S&P) 500 Index (2) over the same period. We believe our bottom-up (company by
company stock selection) approach to equity investing and dynamic asset
allocation process of holding fixed income securities as we uncover stocks
that offer growth potential continue to serve the Fund well.
PERIOD IN REVIEW
The U.S. equity market rallied from the lows of a correction created by
unfounded fears of recession in late 1998. We used the correction as an
opportunity to increase our Fund's exposure to equities and to invest in high
quality growth stocks that we believed had been beaten down for reasons that
were more psychological than fundamental. The subsequent rally took the
popular market averages, and a good portion of our Fund's holdings, to new
highs. As a number of our holdings approached or exceeded their target
prices, we pared back our equity exposure to a more neutral position. As of
March 31, 1999, Fund assets were invested 58% in equities, 38% in fixed
income and 4% in cash.
On the equity side, our top three sectors were technology, consumer cyclicals
and consumer staples. Our Fund particularly benefited from superior
performances by Royal Caribbean Lines (2.1% of total Fund assets), Lowe's
(0.9% of assets), Lam Research (1.5% of assets) and Texas Instruments (1.9%
of assets).
The fixed income portion of our Fund, which seeks to preserve capital and
provide current income, is invested 61% in U.S. Treasury notes, 33% in
investment grade corporate debt and 6% in convertible securities. The past
six months have seen generally rising interest rates. We believe that
shorter-term maturities between two to three years offer the best value for
the fixed income portion of the Fund. This is because the slightly higher
rates on longer-term securities does not justify the increased interest rate
risk.
LOOKING AHEAD
We remain cautiously optimistic about the investment outlook for the
remainder of 1999. A strong U.S. economy and a slow recovery from the Asian
financial crisis should combine to create solid earnings growth for many U.S.
corporations. However, three issues keep our optimism in check: 1.) If U.S.
economic growth is too robust, interest rates could move significantly
higher. 2.) Financial crises have hit Latin America and, although economic
problems in Brazil and Ecuador are not likely to detract from growth here at
home, their spread to Mexico could have a negative impact on the U.S. 3.)
Slow economic growth in China could stall recovery in other Asian nations.
Despite official Chinese government statements that the economy (as measured
by the gross domestic product) is growing at 7%, a number of U.S.
multinationals have expressed concern that the true rate is no more than 2%.
Considering the Chinese currency is currently overvalued, this could result
in devaluation. In light of these concerns, we will remain vigilant with
respect to the Fund's investments.
1. Performance figures are based on historical results and are not intended
to be indicative of future performance. the investment return and principal
value of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost.
2. The S&P 500 Index is an unmanaged index, with dividends reinvested, which
consists of the common stocks of 500 publicly traded u.s. companies. it is a
generally recognized indicator used to measure overall performance of the
u.s. stock market. one cannot invest directly in an index.
58 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER BALANCED FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
BERGER S&P 500 COST OF
BALANCED FUND INDEX LIVING INDEX
<S> <C> <C> <C>
9/30/1997 $10,000 $10,000 $10,000
12/31/1997 $13,789 $10,287 $10,006
3/31/1998 $15,810 $11,722 $10,062
6/30/1998 $16,477 $12,108 $10,112
9/30/1998 $15,677 $10,906 $10,149
12/30/1998 $18,531 $13,227 $10,167
3/31/1997 $19,911 $13,885 $10,236
</TABLE>
BERGER BALANCED FUND*
TOTAL RETURN
<TABLE>
<CAPTION>
As of March 31, 1999
- ----------------------------------------------------
<S> <C>
1 Year 25.94%
- ----------------------------------------------------
Life of Fund 58.27%
- ----------------------------------------------------
(9/30/97)
</TABLE>
* Performance figures are historical and do not
represent future results. Investment returns
and principal value will vary, and you may
have a loss when you sell shares.
Berger Funds March 31, 1999 Semi-Annual Report 59
<PAGE>
- -------------------------------------------------------------------------------
BERGER BALANCED FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK (57.22%) March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C>
BANKS - MONEY CENTER (1.38%)
17,100 BankAmerica Corp. $ 1,207,687
- -------------------------------------------------------------------------------
BEVERAGES - SOFT DRINKS (4.26%)
29,700 Coca-Cola Enterprises Inc. 898,425
- -------------------------------------------------------------------------------
37,300 Pepsico, Inc. 1,461,693
- -------------------------------------------------------------------------------
63,600 The Pepsi Bottling Group, Inc.* 1,379,325
- -------------------------------------------------------------------------------
3,739,443
- -------------------------------------------------------------------------------
BUILDING PRODUCTS - WOOD (2.46%)
19,400 Weyerhaeuser Co. 1,076,700
- -------------------------------------------------------------------------------
28,600 Willamette Industries, Inc. 1,079,650
- -------------------------------------------------------------------------------
2,156,350
- -------------------------------------------------------------------------------
CHEMICALS - PLASTICS (1.34%)
25,800 Household International, Inc. 1,177,125
- -------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (1.49%)
15,600 Ascend Communications, Inc.* 1,305,525
- -------------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (1.04%)
7,300 Sun Microsystems, Inc.* 912,043
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (1.47%)
14,400 Microsoft Corp.* 1,290,600
- -------------------------------------------------------------------------------
COSMETICS/PERSONAL CARE (1.08%)
27,700 The Dial Corp. 952,187
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (3.03%)
22,400 Applied Materials, Inc.* 1,381,800
- -------------------------------------------------------------------------------
44,200 Lam Research Corp.* 1,281,800
- -------------------------------------------------------------------------------
2,663,600
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (8.30%)
11,000 Intel Corp. 1,310,375
- -------------------------------------------------------------------------------
9,700 Maxim Integrated Products, Inc.* 525,012
- -------------------------------------------------------------------------------
28,800 Motorola, Inc. 2,109,600
- -------------------------------------------------------------------------------
16,300 Texas Instruments, Inc. 1,617,775
- -------------------------------------------------------------------------------
42,500 Xilinx, Inc.* 1,723,906
- -------------------------------------------------------------------------------
7,286,668
- -------------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (1.18%)
14,900 Federal National Mortgage Assoc. 1,031,825
- -------------------------------------------------------------------------------
INSURANCE - DIVERSIFIED (0.95%)
11,900 The Equitable Cos., Inc. 833,000
- -------------------------------------------------------------------------------
LEISURE - GAMING (1.04%)
43,100 Mirage Resorts, Inc.* 915,875
- -------------------------------------------------------------------------------
LEISURE - PRODUCTS (1.26%)
22,200 The Seagram Co. Ltd. 1,110,000
- -------------------------------------------------------------------------------
LEISURE - SERVICES (2.99%)
47,400 Royal Caribbean Cruises Ltd. 1,848,600
- -------------------------------------------------------------------------------
25,000 The Walt Disney Co. 778,125
- -------------------------------------------------------------------------------
LEISURE - TOYS/GAMES/HOBBIES (1.93%)
58,450 Hasbro, Inc. $ 1,691,396
- -------------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (0.90%)
11,900 Warner-Lambert Co. 787,631
- -------------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (3.51%)
18,200 Elan Corp. PLC* 1,269,450
- -------------------------------------------------------------------------------
7,800 Eli Lilly Co. 662,025
- -------------------------------------------------------------------------------
17,200 Glaxo Holdings, PLC ADR 1,151,325
- -------------------------------------------------------------------------------
3,082,800
- -------------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL INTEGRATED (1.00%)
35,900 Conoco, Inc. 881,793
- -------------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (1.50%)
27,500 Kimberly-Clark Corp. 1,318,281
- -------------------------------------------------------------------------------
POLLUTION CONTROL - SERVICES (0.59%)
11,613 Waste Management, Inc.* 515,326
- -------------------------------------------------------------------------------
RETAIL - CONSUMER ELECTRONICS (1.07%)
18,000 Best Buy Co., Inc.* 936,000
- -------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (4.30%)
79,100 Consolidated Stores Corp.* 2,397,718
- -------------------------------------------------------------------------------
19,100 Family Dollar Stores, Inc. 439,300
- -------------------------------------------------------------------------------
36,200 Saks, Inc.* 941,200
- -------------------------------------------------------------------------------
3,778,218
- -------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (1.24%)
16,300 Dayton-Hudson Corp. 1,085,987
- -------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (1.65%)
180,200 Petsmart, Inc.* 1,447,231
- -------------------------------------------------------------------------------
RETAIL/WHOLESALE - BUILDING PRODUCTS (0.88%)
12,800 Lowes Cos., Inc. 774,400
- -------------------------------------------------------------------------------
SOAP & CLEANING PREPARATIONS (1.66%)
14,900 Procter & Gamble Co. 1,459,268
- -------------------------------------------------------------------------------
STEEL - PRODUCERS (0.93%)
18,500 Nucor Corp. 815,156
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (0.98%)
8,000 Lucent Technologies, Inc. 862,000
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (0.95%)
16,000 Frontier Corp. 830,000
- -------------------------------------------------------------------------------
TEXTILE - APPAREL MANUFACTURING (0.86%)
11,000 Tommy Hilfiger Corp.* 757,625
- -------------------------------------------------------------------------------
Total Common Stock
(cost $45,099,406) 50,231,765
- -------------------------------------------------------------------------------
</TABLE>
60 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER BALANCED FUND
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. TREASURY NOTES (23.35%) March 31, 1999
- -------------------------------------------------------------------------------
SHARES/PAR VALUE/ MARKET
PRINCIPAL AMOUNT VALUE
- -------------------------------------------------------------------------------
<S> <C> <C>
$1,400,000 U.S. Treasury Note -
5.75%, 9/30/99 $ 1,407,438
- -------------------------------------------------------------------------------
4,000,000 U.S. Treasury Note -
5.63%, 12/31/99 4,025,000
- -------------------------------------------------------------------------------
7,000,000 U.S. Treasury Note -
5.88%, 6/30/00 7,077,630
- -------------------------------------------------------------------------------
4,000,000 U.S. Treasury Note -
4.50%, 9/30/00 3,971,252
- -------------------------------------------------------------------------------
4,000,000 U.S. Treasury Note -
5.25%, 1/31/01 4,015,000
- -------------------------------------------------------------------------------
Total U.S. Treasury Notes
(cost $20,496,320) 20,496,320
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (16.51%)
- -------------------------------------------------------------------------------
$12,000,000 Federal National
Mortgage Association
Note - 4.80%, 4/1/99 12,000,000
- -------------------------------------------------------------------------------
2,500,000 Federal Home Loan Mortgage Corp.
Discount Note 4.75%, 4/19/99 2,494,062
- -------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $14,494,062) 14,494,062
- -------------------------------------------------------------------------------
CORPORATE DEBT - NON CONVERTIBLE (12.81%)
- -------------------------------------------------------------------------------
AEROSPACE/DEFENSE (2.30%)
$2,000,000 Boeing Capital Corp. -
6.21%, 8/15/03 2,021,116
- -------------------------------------------------------------------------------
BANKS - FOREIGN (1.83%)
1,600,000 Barclays Bank PLC -
5.95%, 7/15/01 1,603,572
- -------------------------------------------------------------------------------
ELECTRICAL - EQUIPMENT (0.57%)
500,000 General Electric Capital Corp. -
5.89%, 5/11/01 504,697
- -------------------------------------------------------------------------------
FINANCE - CONSUMER/COMMERCIAL LOANS (3.98%)
2,000,000 Associates Corp. - 5.75%, 11/1/03 1,983,356
- -------------------------------------------------------------------------------
500,000 Ford Motor Credit Co. -
6.125%, 4/28/03 504,276
- -------------------------------------------------------------------------------
1,000,000 General Motors Acceptance Corp. -
5.80%, 8/7/00 1,003,503
- -------------------------------------------------------------------------------
3,491,135
- -------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (2.36%)
1,045,000 Bear Stearns Co., Inc. -
6.50%, 8/1/02 1,060,076
- -------------------------------------------------------------------------------
500,000 Merrill Lynch & Co. -
6.48%, 3/1/00 504,324
- -------------------------------------------------------------------------------
500,000 Merrill Lynch & Co. -
6.02%, 5/11/01 503,872
- -------------------------------------------------------------------------------
2,068,272
- -------------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (0.57%)
495,000 Sears Roebuck Acceptance Corp. -
6.69%, 4/30/01 503,461
- -------------------------------------------------------------------------------
TOBACCO (1.19%)
$1,000,000 Philip Morris Companies, Inc. -
7.62%, 5/15/02 $ 1,048,908
- -------------------------------------------------------------------------------
Total Corporate Debt - Non Convertible
(cost $11,252,572) 11,241,161
- -------------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (1.24%)
- -------------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (0.36%)
40,000 DECS Trust IV 320,000
- -------------------------------------------------------------------------------
TRANSPORTATION - RAIL (0.26%)
4,500 Union Pacific Capital Trust 225,562
- -------------------------------------------------------------------------------
UTILITY - ELECTRIC POWER (0.62%)
10,200 Texas Utilities Co. 543,799
- -------------------------------------------------------------------------------
Total Preferred Stock - Convertible
(cost $1,233,063) 1,089,361
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (2.70%)
- -------------------------------------------------------------------------------
$2,370,000 State Street Repurchase Agreement,
4.82% dated March 31, 1999 to
be repurchased at $2,370,317 on
April 1, 1999, collateralized by
U.S. Treasury Bond - October 25,
2011, with a value of $2,419,437. 2,370,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $2,370,000) 2,370,000
- -------------------------------------------------------------------------------
CORPORATE DEBT - CONVERTIBLE (0.89%)
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (0.89%)
$900,000 Lam Research Corp. -
5.00%, 9/1/02 781,875
- -------------------------------------------------------------------------------
Total Corporate Debt Convertible
(cost $784,377) 781,875
- -------------------------------------------------------------------------------
Total Investments (cost $95,729,800) (114.72%) 100,704,544
- -------------------------------------------------------------------------------
Total Liabilities, Less Cash and Other Assets (-14.72%) (12,920,655)
- -------------------------------------------------------------------------------
Net Assets (100.00%) $ 87,783,889
- -------------------------------------------------------------------------------
</TABLE>
PLC - Public Limited Company.
ADR - American Depositary Receipt.
* Non-income producing security.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 61
<PAGE>
BERGER BALANCED FUND
- -------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $ 95,729,800
- -------------------------------------------------------------------------------
Investments, at value $100,704,544
- -------------------------------------------------------------------------------
Cash 90,288
- -------------------------------------------------------------------------------
Receivables
Investment securities sold 4,049,000
- -------------------------------------------------------------------------------
Fund shares sold 461,260
- -------------------------------------------------------------------------------
Dividends 26,894
- -------------------------------------------------------------------------------
Interest 392,944
- -------------------------------------------------------------------------------
Total Assets 105,724,930
- -------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 17,823,832
- -------------------------------------------------------------------------------
Fund shares redeemed 27,718
- -------------------------------------------------------------------------------
Accrued investment advisory fees 47,976
- -------------------------------------------------------------------------------
Accrued custodian and accounting fees 2,939
- -------------------------------------------------------------------------------
Accrued transfer agent fees 3,427
- -------------------------------------------------------------------------------
Accrued 12b-1 fees 17,134
- -------------------------------------------------------------------------------
Accrued audit fees 11,652
- -------------------------------------------------------------------------------
Accrued administrative service fees 686
- -------------------------------------------------------------------------------
Accrued shareholder reports 5,677
- -------------------------------------------------------------------------------
Total Liabilities 17,941,041
- -------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $87,783,889
- -------------------------------------------------------------------------------
Capital Shares
Authorized (Par Value $0.01) Unlimited
- -------------------------------------------------------------------------------
Shares Outstanding 5,751,037
- -------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 15.26
- -------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends $ 128,438
- -------------------------------------------------------------------------------
Interest 744,933
- -------------------------------------------------------------------------------
Total Income 873,371
- -------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 197,632
- -------------------------------------------------------------------------------
Administrative services fee 2,823
- -------------------------------------------------------------------------------
Accounting fees 6,905
- -------------------------------------------------------------------------------
Custodian fees 12,419
- -------------------------------------------------------------------------------
Transfer agent fees 32,930
- -------------------------------------------------------------------------------
Registration fees 6,150
- -------------------------------------------------------------------------------
12b-1 fees 70,583
- -------------------------------------------------------------------------------
Audit fees 11,252
- -------------------------------------------------------------------------------
Legal fees 2,418
- -------------------------------------------------------------------------------
Trustees' fees and expenses 2,297
- -------------------------------------------------------------------------------
Reports to shareholders 31,709
- -------------------------------------------------------------------------------
Other expenses 1,158
- -------------------------------------------------------------------------------
Gross Expenses 378,276
- -------------------------------------------------------------------------------
Less earnings credits (917)
- -------------------------------------------------------------------------------
Net Expenses 377,359
- -------------------------------------------------------------------------------
Net Investment Income (Loss) 496,012
- -------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and
foreign currency transactions 6,224,707
- -------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
on securities and foreign currency transactions 5,107,332
- -------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency Transactions 11,332,039
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 11,828,051
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
62 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER BALANCED FUND
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 496,012 $ 434,179
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and
foreign currency transactions 6,224,707 6,207,143
- -------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
on securities and foreign currency transactions 5,107,332 (132,588)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 11,828,051 6,508,734
- -------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (434,268) (407,800)
- -------------------------------------------------------------------------------------------------------------
Net realized gains on investments (3,773,574) (2,535,109)
- -------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and
Distributions to Shareholders (4,207,842) (2,942,909)
- -------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 74,580,287 38,583,031
- -------------------------------------------------------------------------------------------------------------
Net asset value of shares issued in reinvestment
of dividends and distributions 3,846,489 2,636,258
- -------------------------------------------------------------------------------------------------------------
Payments for shares redeemed (28,983,653) (21,526,401)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions 49,443,123 19,692,888
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 57,063,332 23,258,713
- -------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 30,720,557 7,461,844
- -------------------------------------------------------------------------------------------------------------
End of period $ 87,783,889 $ 30,720,557
- -------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 76,597,855 $ 27,154,732
- -------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 88,123 26,379
- -------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments 6,123,167 3,672,034
- -------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of securities and foreign currency transactions 4,974,744 (132,588)
- -------------------------------------------------------------------------------------------------------------
Total $ 87,783,889 $ 30,720,557
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 5,158,889 2,988,884
- -------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment
of dividends and distributions 278,716 220,731
- -------------------------------------------------------------------------------------------------------------
Shares repurchased (1,999,777) (1,642,590)
- -------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 3,437,828 1,567,025
- -------------------------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 2,313,209 746,184
- -------------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 5,751,037 2,313,209
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 63
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
- -------------------------------------------------------------------------------
ORGANIZATION
The Berger New Generation Fund ("BNG"), Berger Select Fund ("BSEL"), Berger
Small Company Growth Fund ("BSCG"), Berger Small Cap Value Fund ("BSCV"),
Berger Mid Cap Growth Fund ("BMCG"), Berger Mid Cap Value Fund ("BMCV"),
Berger One Hundred Fund ("100"), Berger/BIAM International Fund ("BBIF"),
Berger Growth and Income Fund ("BG&I") and Berger Balanced Fund
("BBAL")(individually the "Fund" and collectively, the "Funds") are
diversified open-end management investment companies registered under the
Investment Company Act of 1940 (the "1940 Act"). Shares of each fund are
fully paid and non-assessable when issued. All shares issued by a particular
Fund participate equally in dividends and other distributions by that Fund.
The investment objective of each Fund is capital appreciation, including the
BBAL and BG&I, which also pursue current income.
100 and BG&I are corporations registered in the State of Maryland. BNG, BSEL,
BSCG, BMCG, BMCV and BBAL are separate series established under the Berger
Investment Portfolio Trust, a Delaware business trust ("BIP Trust"). BSEL and
BMCG commenced operations on December 31, 1997, and BMCV commenced operations
on August 12, 1998. BSCV is the only series established under the Berger Omni
Investment Trust ("OMNI Trust"), a Massachusetts business trust, and offers
two separate classes of shares; Investor Shares ("BSCV; Inv") and
Institutional Shares ("BSCV; Inst"). Both classes have identical rights to
earnings, assets and voting privileges. The BBIF is one of three series
established under the Berger/BIAM Worldwide Funds Trust ("BBWF Trust"), a
Delaware business trust. Other series or portfolios may be added under each
Trust in the future. All costs in organizing the Trusts were borne by Berger
Associates, Inc. ("Berger") or BBOI Worldwide LLC ("BBOI").
BBIF invests all of its investable assets in the Berger/BIAM International
Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide Portfolios
Trust ("BBWP Trust"). The value of such investment reflects BBIF's
proportionate interest in the net assets of the Portfolio (9% at March 31,
1999). The Portfolio is an open-end management investment company and has the
same investment objective and policies as BBIF. The performance of BBIF will
be derived from the investment performance of the Portfolio. The financial
statements of the Portfolio, including the schedule of portfolio investments,
are included elsewhere in this report and should be read in conjunction with
BBIF's financial statements.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges, the NASDAQ Stock Market and foreign
exchanges are valued at the last sale price on such markets, or, if no last
sale price is available, they are valued using the mean between their current
bid and ask prices. Securities traded in the over-the-counter market are
valued at the mean between their current bid and ask prices. Short-term
obligations maturing within sixty days are valued at amortized cost, which
approximates market value. Prices of foreign securities are converted to U.S.
dollars using exchange rates determined prior to the close of the Exchange.
Securities for which quotations are not readily available are valued at fair
values as determined in good faith pursuant to consistently applied
procedures established by the directors/trustees of the Funds.
Generally, trading in foreign securities markets is substantially completed
each day at various times prior to the close of the Exchange. The values of
foreign securities are determined as of the earlier of such market close or
the closing time of the Exchange. Occasionally, events affecting the value of
such securities may occur between the times at which they are determined and
the close of the Exchange, or when the foreign market on which such
securities trade is closed but the Exchange is open, which will not be
reflected in the computation of net asset value. If during such periods,
events occur that materially affects the value of such securities, the
securities will be valued at their fair market value as determined in good
faith pursuant to consistently applied procedures established by the
directors/trustees.
Since BBIF invests all of its investable assets in the Portfolio, the value
of BBIF's investable assets will be equal to the value of its beneficial
interest in the Portfolio. Valuation of securities by the Portfolio is
discussed in Note 1 of the Portfolio's Notes to Financial Statements, which
are included elsewhere in this report.
CALCULATION OF NET ASSET VALUE
Each Fund's per share calculation of net asset value is determined by
dividing the total value of its assets, less liabilities, by the total number
of shares outstanding.
64 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
- -------------------------------------------------------------------------------
FEDERAL INCOME TAX STATUS
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of their taxable income to shareholders. Therefore, no income tax
provision is required.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one
or more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S.
dollars at rates of exchange prevailing when accrued.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income is recorded on the ex-dividend date,
except if the ex-dividend date has passed, certain dividends from foreign
securities are reported as soon as a Fund is informed of the ex-dividend
date. Interest income is recorded on the accrual basis and includes
amortization of discounts and premiums. Gains and losses are computed on the
identified cost basis for both financial statement and federal income tax
purposes for all securities.
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES
Income, expenses (other than those attributable to a specific class) and
gains and losses of the BSCV are allocated daily to each class of shares
based upon the ratio of net assets represented by each class as a percentage
of total net assets of the BSCV. Expenses directly attributable to a specific
class are charged against the operations of such class.
As an investor in the Portfolio, BBIF is allocated its pro rata share of the
aggregate investment income, realized and unrealized gains or losses and
annual operating expenses (including the investment advisory fee, custodian
fees, independent accountants' fees, record keeping and pricing agent fees)
of the Portfolio. Income, realized and unrealized gains or losses and
expenses are allocated on the day incurred in proportion to the prior day's
relative net assets of BBIF and other investors in the Portfolio.
COMMON EXPENSES
Certain expenses that are not directly allocable to a specific Fund are
allocated to the Funds on the basis of relative net assets.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
- -------------------------------------------------------------------------------
2 AGREEMENTS
- -------------------------------------------------------------------------------
Berger renders investment advisory services to BNG, BSEL, BSCG, BSCV, BMCG,
BMCV, 100, BG&I and BBAL pursuant to agreements that provide for an
investment advisory fee to be paid to Berger at the following annual rates as
a percentage of average daily net assets; BNG, BSCG and BSCV -- .90%; 100,
BSEL, BMCG, and BG&I -- .75%; and BBAL -- .70%. Berger has delegated the
day-to-day investment management of BSCV and BMCV to Perkins, Wolf &
McDonnell and Company ("PWM"). As compensation for services rendered to BSCV,
PWM receives a sub-advisory fee from Berger at an annual rate of .90% of the
BSCV's average daily net assets up to $75 million; .50% of average daily net
assets between $75 million and $200 million and .20% of average daily net
assets in excess of $200 million. As compensation for services rendered to
the BMCV, PWM receives a sub-advisory fee from Berger at an annual rate of
.75% of the BMCV's average daily net assets up to $50 million; .375% of
average daily net assets between $50 million and $100 million and .20% of
average daily net assets in excess of $100 million. All investment advisory
fees are accrued daily and paid monthly. Berger has also agreed to
voluntarily waive its advisory fee for the BNG, BSEL, BMCG, BMCV and BBAL to
the extent that each Fund's normal operating expenses in any fiscal year
(including the management fee and the 12b-1 fee, but excluding brokerage
commissions, interest, taxes and extraordinary expenses) exceeds 1.90%,
2.00%, 2.00%, 2.00% and 1.50%, respectively, of each Fund's average daily net
assets for that fiscal year.
Pursuant to an Administrative Services Agreement, whereby BBOI serves as the
administrator to BBIF, the Fund pays BBOI a fee at an annual rate equal to
the lesser of 0.45% of its average daily net assets or BBOI's annual cost to
provide or procure such services plus 0.02% of the Fund's average daily net
assets. Under the Agreement, BBOI is responsible,
Berger Funds March 31, 1999 Semi-Annual Report 65
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
2 AGREEMENTS - CONTINUED
- -------------------------------------------------------------------------------
at its own expense, for providing or procuring administrative services
reasonably necessary for the operation of the Fund, including recordkeeping
and pricing services, custodian services, transfer agency and dividend
disbursing services, tax and audit services, insurance, printing and mailing
to shareholders of prospectuses and other required communication and certain
other administrative services. BBOI has delegated the administration of the
Fund to Berger. For such services, BBOI has agreed to compensate Berger with
a sub-administration fee equal to 0.25% per annum of the Fund's average daily
net assets. Berger has voluntarily waived such fee for the fiscal six months
ended March 31, 1999.
The Funds have adopted plans pursuant to Rule 12b-1 under the Investment
Company Act of 1940 (the "Plans"). The BSCV Plan, which became effective
February 14, 1997, applies only to the BSCV; Inv. The Plans provide for the
payment to Berger of a 12b-1 fee of .25% per annum of each Fund's average
daily net assets (or the net assets of a particular class of shares, where
applicable) to finance activities primarily intended to result in the sale of
Fund shares. The Plans provide that such payments will be made to Berger as
compensation rather than as reimbursements for actual expenses incurred to
promote the sale of shares of the Funds.
The BNG, BSEL, BSCG, BSCV, BMCG, BMCV, 100, BG&I and BBAL have each entered
into an administrative services agreement with Berger. The administrative
services agreement provides for an annual fee of .01% of the average daily
net assets of each Fund, computed daily and payable monthly. The Funds have
also entered into recordkeeping and pricing agreements with Investors
Fiduciary Trust Company ("IFTC"), which also serves as the Funds' custodian
and transfer agent. The recordkeeping and pricing agreement provides for the
monthly payment of a base fee plus a fee computed as a percentage of average
daily net assets on a total relationship basis with other Berger Funds.
IFTC's fees for custody, recordkeeping and pricing or transfer agency
services are subject to reduction by credits earned by each Fund, based on
the cash balances of each Fund held by IFTC as custodian or by credits
received from directed brokerage transactions.
DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common
ownership, provides shareholder accounting services to the Funds as a
sub-transfer agent. DST Securities, Inc., a wholly owned subsidiary of DST,
is designated as an introductory broker on certain portfolio transactions.
The Funds receive an amount equal to the brokerage commissions paid to DST
Securities, Inc. as credits against transfer agent fees and expenses. For the
six months ended March 31, 1999, the following credits were earned:
<TABLE>
<CAPTION>
Fund Credits
- ----------------------------------------------------
<S> <C>
BNG $3,808
- ----------------------------------------------------
BSEL 1,720
- ----------------------------------------------------
BSCG 10,878
- ----------------------------------------------------
BSCV 4,391
- ----------------------------------------------------
BMCG 381
- ----------------------------------------------------
BMCV 844
- ----------------------------------------------------
100 17,816
- ----------------------------------------------------
BBIF NA
- ----------------------------------------------------
BG&I 8,024
- ----------------------------------------------------
BBAL 917
- ----------------------------------------------------
</TABLE>
Certain officers and directors of Berger and BBOI are also officers and/or
directors/trustees of the Funds. Directors/trustees who are not affiliated
with Berger or BBOI are compensated for their services according to a fee
schedule which includes an annual fee component and a per meeting fee
component. Such directors/trustees fees and expenses totaled $141,216 for the
periods ended March 31, 1999.
The Funds adopted a director/trustee fee deferral plan (the "Plan") which
allows the directors/trustees to defer the receipt of all or a portion of the
fees payable on or after January 16, 1996. The deferred fees remain in the
Funds and are invested in various Berger funds until distribution in
accordance with the Plan.
66 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
3 INVESTMENT TRANSACTIONS
- -------------------------------------------------------------------------------
PURCHASES AND SALES
Purchases and sales of investment securities (excluding short term
securities) during the fiscal year or periods ended March 31, 1999, were as
follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
- ------------------------------------------------------
<S> <C> <C>
BNG $ 124,340,320 $ 126,292,916
- ------------------------------------------------------
BSEL 367,069,717 325,858,972
- ------------------------------------------------------
BSCG 364,918,404 465,569,397
- ------------------------------------------------------
BSCV 264,623,100 139,238,837
- ------------------------------------------------------
BMCG 9,203,326 6,904,167
- ------------------------------------------------------
BMCV 19,291,861 15,766,145
- ------------------------------------------------------
100 2,082,539,315 2,379,524,640
- ------------------------------------------------------
BBIF(1) NA NA
- ------------------------------------------------------
BG&I 387,397,174 377,035,353
- ------------------------------------------------------
BBAL 137,704,973 91,628,148
- ------------------------------------------------------
</TABLE>
1. See the Portfolio's Notes to Financial Statements for information
regarding purchases and sales of investment securities.
BBAL had purchases of $19,154,688 and sales of $5,687,698 of long-term
government securities during the period ended March 31, 1999. No other Funds
purchased long-term government securities.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At March 31, 1999, the federal tax cost of securities and the composition of
unrealized appreciation (the excess of value over tax cost) and unrealized
depreciation (the excess of tax cost over value) for securities was as
follows:
<TABLE>
<CAPTION>
Gross Gross Net
Federal Tax Unrealized Unrealized Appreciation
Fund Cost Appreciation Depreciation (Depreciation)
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
BNG $121,974,978 $ 48,521,394 $ (8,706,227) $ 39,815,167
- ----------------------------------------------------------------------
BSEL 112,664,216 7,099,114 (1,487,631) 5,611,483
- ----------------------------------------------------------------------
BSCG 499,337,214 141,240,143 (39,779,663) 101,460,480
- ----------------------------------------------------------------------
BSCV 365,925,883 20,029,234 (43,428,301) (23,399,067)
- ----------------------------------------------------------------------
BMCG 8,022,086 1,864,687 (266,477) 1,598,210
- ----------------------------------------------------------------------
BMCV 20,476,573 2,521,719 (1,130,761) 1,390,958
- ----------------------------------------------------------------------
100 1,352,402,253 198,343,682 (18,899,967) 179,443,715
- ----------------------------------------------------------------------
BBIF(1) NA NA NA NA
- ----------------------------------------------------------------------
BG&I 289,968,085 99,606,818 (1,921,803) 97,685,015
- ----------------------------------------------------------------------
BBAL 96,004,584 5,675,876 (975,916) 4,699,960
- ----------------------------------------------------------------------
</TABLE>
1. See the Portfolio's Notes to Financial Statements for federal tax cost of
securities and the composition of net unrealized appreciation or depreciation
of securities.
FUTURES CONTRACTS
Each Fund may enter futures contracts for hedging purposes. Upon entering a
contract, a Fund deposits and maintains as collateral such initial margin as
may be required by the exchanges on which the transaction is affected.
Pursuant to the contracts, a Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in the value of the
contract. Such receipts or payments are known as "variation margin" and are
recorded by a Fund as variation margin receivable or payable on futures
contracts. During the period the futures contracts are open, changes in the
value of the contracts are recognized on a daily basis to reflect the market
value of the contracts at the end of each day's trading and are recorded as
realized or unrealized gain or loss, as appropriate. A Fund's use of futures
contracts may subject it to certain risks as a result of unanticipated
movements in the market. A lack of correlation between the value of an
instrument underlying a futures contract and the asset being hedged or
unexpected adverse price movements, could render a Fund's hedging strategy
unsuccessful and result in losses. In addition, there can be no assurance
that a liquid secondary market will exist for any contract purchased or sold.
Realized gains or losses on these contracts are a separate component of Net
Realized Gain (Loss) on Investments and Foreign Currency Transactions in the
Statement of Operations.
FORWARD CONTRACTS AND OPTIONS
Each Fund may hold certain types of forward contracts and/or options for the
purpose of hedging each portfolio against exposure to market value
fluctuations. The use of such instruments may involve certain risks as a
result of unanticipated movements in the market. A lack of correlation
between the value of such instruments and the assets being hedged, or
unexpected adverse price movements, could render a Fund's hedging strategy
unsuccessful. In addition, there can be no assurance that a liquid secondary
market will exist for the instrument. Realized gains or losses on these
securities are included in Net Realized Gain (Loss) on Investments and
Foreign Currency Transactions in the Statement of Operations.
REPURCHASE AGREEMENTS
Repurchase agreements held by a Fund are fully collateralized by U.S.
Treasury securities and such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value
exceeds the current market value of the repurchase agreements including
accrued interest. In the event of default on the obligation to repurchase,
the Fund has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral
or proceeds may be subject to legal proceedings.
CONCENTRATION OF CREDIT RISK
The Funds may have elements of risk due to concentrated investments in
specific industries or foreign issuers located in a specific country. Such
concentrations may subject the Fund to additional risks resulting from future
political or economic conditions and/or possible impositions of adverse
foreign governmental laws or currency exchange
Berger Funds March 31, 1999 Semi-Annual Report 67
<PAGE>
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
3 INVESTMENT TRANSACTIONS - CONTINUED
- -------------------------------------------------------------------------------
restrictions. Net realized and unrealized gain or loss from investment
securities includes fluctuations from currency exchange rates and
fluctuations in market value.
FEDERAL INCOME TAXES
Dividends paid by the Funds from net investment income and distributions of
net realized short-term capital gains are, for federal income tax purposes,
taxable as ordinary income to shareholders. The Funds distribute net realized
capital gains, if any, to their shareholders at least annually, if not offset
by capital loss carryovers. Income distributions and capital gain
distributions are determined in accordance with income tax regulations, which
may differ from generally accepted accounting principles. These differences
are primarily due to the differing treatment of net operating losses, foreign
currency and tax allocations. Accordingly, these permanent differences in the
character of income and distributions between financial statements and tax
basis have been reclassified to paid-in-capital.
- -------------------------------------------------------------------------------
4 LINE OF CREDIT
- -------------------------------------------------------------------------------
BNG, BSEL, BSCG, BSCV, BMCG, 100, BG&I, BBAL and the Portfolio are party to
an ongoing agreement with certain banks that allows the Funds, collectively,
to borrow up to $150 million for temporary or emergency purposes. Interest on
the borrowings, if any, is charged to the specific Fund or Portfolio
executing the borrowing at the Federal Funds Rate plus 45 basis points. In
addition, the line of credit requires a quarterly payment of a commitment fee
based on the average daily unused portion of the line of credit. At March 31,
1999, the outstanding line of credit balance was $0.
68 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK (96.75%) MARCH 31, 1999
- --------------------------------------------------------------------------------------------------------------------------
COUNTRY/ SHARES/ MARKET
PAR VALUE COMPANY INDUSTRY VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
AUSTRALIA (5.15%)
1,800 Brambles Industries Business & Industrial Services $ 45,928
- --------------------------------------------------------------------------------------------------------------------------
206,400 National Australia Bank Ltd. Commercial Banks & Other Banks 3,764,149
- --------------------------------------------------------------------------------------------------------------------------
486,306 News Corp., Ltd. Media 3,613,161
- --------------------------------------------------------------------------------------------------------------------------
419,245 Telstra Corp., Ltd. Utilities 2,203,015
- --------------------------------------------------------------------------------------------------------------------------
185,970 Westpac Banking Corp., Ltd. Commercial Banks & Other Banks 1,361,360
- --------------------------------------------------------------------------------------------------------------------------
10,987,613
- --------------------------------------------------------------------------------------------------------------------------
DENMARK (0.49%)
10,600 Tele Danmark A.S. Utilities 1,048,576
- --------------------------------------------------------------------------------------------------------------------------
FRANCE (8.16%)
18,626 Alcatel Alsthom+ Computer/Commercial/Office Equipment 2,140,874
- --------------------------------------------------------------------------------------------------------------------------
33,002 AXA-UAP Insurance - Multi/Property/Casualty 4,373,817
- --------------------------------------------------------------------------------------------------------------------------
30,575 Michelin Class B Automobile Components 1,371,069
- --------------------------------------------------------------------------------------------------------------------------
31,582 Total S.A. Class B Oil 3,889,084
- --------------------------------------------------------------------------------------------------------------------------
22,901 Vivendi Diversified Holding Companies 5,632,754
- --------------------------------------------------------------------------------------------------------------------------
17,407,598
- --------------------------------------------------------------------------------------------------------------------------
GERMANY (8.83%)
2,808 Bayerische Motoren Werke (BMW) A.G. Automobiles 1,839,534
- -------------------------------------------------------------------------------------------------------------------------
402 Bayerische Motoren Werke (BMW) A.G.(1) Automobiles 256,410
- --------------------------------------------------------------------------------------------------------------------------
31,940 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 1,909,706
- --------------------------------------------------------------------------------------------------------------------------
61,210 Hoechst A.G. Chemicals 2,652,344
- --------------------------------------------------------------------------------------------------------------------------
67,600 Mannesmann A.G. Machinery & Engineering Services 8,630,848
- --------------------------------------------------------------------------------------------------------------------------
44,851 Veba A.G. Diversified Industrials 2,357,345
- --------------------------------------------------------------------------------------------------------------------------
2,177 Viag A.G. Utilities 1,200,373
- --------------------------------------------------------------------------------------------------------------------------
18,846,560
- --------------------------------------------------------------------------------------------------------------------------
ITALY (3.42%)
155,256 ENI S.p.A. Oil 988,604
- --------------------------------------------------------------------------------------------------------------------------
594,757 Telecom Italia S.p.A. Utilities 6,316,212
- --------------------------------------------------------------------------------------------------------------------------
7,304,816
- --------------------------------------------------------------------------------------------------------------------------
JAPAN (15.11%)
186,000 Canon, Inc.+ Computer/Commercial/Office Equipment 4,590,658
- --------------------------------------------------------------------------------------------------------------------------
46,000 Fuji Photo Film+ Photo Equipment & Supplies 1,735,922
- --------------------------------------------------------------------------------------------------------------------------
55,000 Honda Motor Co., Ltd.+ Automobiles 2,478,625
- --------------------------------------------------------------------------------------------------------------------------
117,000 Kao Corp.+ Food & Grocery Products 2,577,222
- --------------------------------------------------------------------------------------------------------------------------
6,500 Keyence Corp.+ Electronics & Instruments 969,127
- --------------------------------------------------------------------------------------------------------------------------
48,000 Murata Manufacturing Co., Ltd.+ Electronics & Instruments 2,547,277
- --------------------------------------------------------------------------------------------------------------------------
73 NTT Mobile Communication Network, Inc.+ Utilities 3,597,270
- --------------------------------------------------------------------------------------------------------------------------
14,000 Rohm Co., Ltd.+ Electronics & Instruments 1,668,702
- --------------------------------------------------------------------------------------------------------------------------
88,000 Shiseido Co., Ltd.+ Health & Personal Care 1,215,684
- --------------------------------------------------------------------------------------------------------------------------
54,400 Sony Corp.+ Household Durables & Appliances 5,017,731
- --------------------------------------------------------------------------------------------------------------------------
151,000 Takeda Chemical Industries Health & Personal Care 5,838,268
- --------------------------------------------------------------------------------------------------------------------------
32,236,486
- --------------------------------------------------------------------------------------------------------------------------
MALAYSIA (0.10%)
103,000 Hume Industries - Malaysia Bhd Construction & Building Materials 60,716
- --------------------------------------------------------------------------------------------------------------------------
219,400 Sime Darby Bhd Diversified Holding Companies 159,817
- --------------------------------------------------------------------------------------------------------------------------
220,533
- --------------------------------------------------------------------------------------------------------------------------
NETHERLANDS (9.01%)
88,530 ABN Amro Holdings N.V. Commercial Banks & Other Banks 1,844,037
- --------------------------------------------------------------------------------------------------------------------------
71,000 Elsevier N.V. Media 1,057,449
- --------------------------------------------------------------------------------------------------------------------------
128,617 ING Groep N.V. Insurance - Multi/Property/Casualty 7,086,245
- --------------------------------------------------------------------------------------------------------------------------
73,320 Koninklijke Ahold N.V. Retail Trade 2,809,136
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Berger Funds Semi-Annual Report March 31, 1999 69
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK (96.75%) - CONTINUED MARCH 31, 1999
- --------------------------------------------------------------------------------------------------------------------------
COUNTRY/ SHARES/ MARKET
PAR VALUE COMPANY INDUSTRY VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NETHERLANDS - CONTINUED
60,015 Koninklijke KPN N.V. Utilities $ 2,386,818
- --------------------------------------------------------------------------------------------------------------------------
42,540 Royal Dutch Petroleum Co. Oil 2,261,131
- --------------------------------------------------------------------------------------------------------------------------
58,840 TNT Post Group N.V. Utilities 1,771,735
- --------------------------------------------------------------------------------------------------------------------------
19,216,551
- --------------------------------------------------------------------------------------------------------------------------
NEW ZEALAND (0.15%)
66,472 Telecom Corp. of New Zealand Utilities 324,966
- --------------------------------------------------------------------------------------------------------------------------
PORTUGAL (0.35%)
37,950 Electricidade de Portugal S.A. Utilities 748,703
- --------------------------------------------------------------------------------------------------------------------------
SINGAPORE (1.39%)
250,435 Development Bank of Singapore, Ltd. Commercial Banks & Other Banks 1,899,651
- --------------------------------------------------------------------------------------------------------------------------
96,000 Singapore Press Holdings, Ltd. Media 1,061,725
- --------------------------------------------------------------------------------------------------------------------------
2,961,376
- --------------------------------------------------------------------------------------------------------------------------
SPAIN (2.03%)
123,311 Banco de Santander S.A. Commercial Banks & Other Banks 2,528,584
- --------------------------------------------------------------------------------------------------------------------------
42,258 Telefonica S.A. Utilities 1,791,896
- --------------------------------------------------------------------------------------------------------------------------
4,320,480
- --------------------------------------------------------------------------------------------------------------------------
SWEDEN (0.21%)
18,800 Telefonaktiebolaget LM Ericsson Utilities 456,460
- --------------------------------------------------------------------------------------------------------------------------
SWITZERLAND (11.33%)
1,793 Alusuisse Lonza Group A.G. Fabricated Metal Products 1,971,900
- --------------------------------------------------------------------------------------------------------------------------
2,544 Nestle S.A.+ Food & Grocery Products 4,621,236
- --------------------------------------------------------------------------------------------------------------------------
2,815 Novartis A.G. Health & Personal Care 4,565,841
- --------------------------------------------------------------------------------------------------------------------------
346 Roche Holding A.G. Health & Personal Care 4,218,942
- --------------------------------------------------------------------------------------------------------------------------
2,237 Schweizerische Rueckversicherungs Insurance - Multi/Property/Casualty 4,949,115
- --------------------------------------------------------------------------------------------------------------------------
12,207 Union Bank of Switzerland A.G. Commercial Banks & Other Banks 3,834,530
- --------------------------------------------------------------------------------------------------------------------------
24,161,564
- --------------------------------------------------------------------------------------------------------------------------
THAILAND (0.35%)
359,800 Bangkok Bank PLC Commercial Banks & Other Banks 737,118
- --------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM (30.67%)
290,920 Allied Zurich AG Insurance Life & Agents/Brokers 3,915,841
- --------------------------------------------------------------------------------------------------------------------------
171,550 Barclays Bank PLC Commercial Banks & Other Banks 4,925,152
- --------------------------------------------------------------------------------------------------------------------------
290,920 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 2,419,849
- --------------------------------------------------------------------------------------------------------------------------
460,564 BTR Siebe PLC Machinery & Engineering Services 2,028,687
- --------------------------------------------------------------------------------------------------------------------------
272,430 Cable & Wireless PLC Utilities 3,399,076
- --------------------------------------------------------------------------------------------------------------------------
151,900 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 2,201,316
- --------------------------------------------------------------------------------------------------------------------------
311,650 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 3,496,563
- --------------------------------------------------------------------------------------------------------------------------
170,850 Glaxo Welcome PLC Health & Personal Care 5,709,253
- --------------------------------------------------------------------------------------------------------------------------
211,550 Granada Group PLC Entertainment/Leisure/Toys 4,279,783
- --------------------------------------------------------------------------------------------------------------------------
191,411 Kingfisher PLC Retail Trade 2,409,810
- --------------------------------------------------------------------------------------------------------------------------
353,800 Ladbroke Group PLC Entertainment/Leisure/Toys 1,615,447
- --------------------------------------------------------------------------------------------------------------------------
351,960 Lloyds TSB Group PLC Commercial Banks & Other Banks 5,316,158
- --------------------------------------------------------------------------------------------------------------------------
34,167 National Power PLC Utilities 262,718
- --------------------------------------------------------------------------------------------------------------------------
88,420 National Westminster Bank PLC Commercial Banks & Other Banks 2,035,371
- --------------------------------------------------------------------------------------------------------------------------
324,340 Prudential Corp. PLC Insurance Life & Agents/Brokers 4,221,901
- --------------------------------------------------------------------------------------------------------------------------
31,530 Railtrack Group PLC Road & Rail 722,750
- --------------------------------------------------------------------------------------------------------------------------
271,450 Safeway PLC Retail Trade 1,060,031
- --------------------------------------------------------------------------------------------------------------------------
517,430 Shell Transport & Trading Co. PLC Oil 3,476,099
- --------------------------------------------------------------------------------------------------------------------------
185,300 TI Group PLC Machinery & Engineering Services 1,203,028
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
70 Semi-Annual Report March 31, 1999 Berger Fund
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------------------------------------------------
COMMON STOCK (96.75%) - CONTINUED MARCH 31, 1999
- --------------------------------------------------------------------------------------------------------------------------
COUNTRY/ SHARES/ MARKET
PAR VALUE COMPANY INDUSTRY VALUE
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
UNITED KINGDOM - CONTINUED
354,700 Vodafone Group PLC Utilities $ 6,581,146
- --------------------------------------------------------------------------------------------------------------------------
87,580 Zeneca Group PLC Health & Personal Care 4,133,756
- --------------------------------------------------------------------------------------------------------------------------
65,413,735
- --------------------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $167,552,065) 206,393,135
- --------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.28%)
- --------------------------------------------------------------------------------------------------------------------------
$ 2,740,000 State Street Repurchase Agreement, 4.82%
dated March 31, 1999 to be repurchased at
$2,740,367 on April 1, 1999, collateralized
by U.S. Treasury Bond - October 31, 2000,
with a value of $2,799,274 2,740,000
- --------------------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement (cost $2,740,000) 2,740,000
- --------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $170,292,065) (98.03%) 209,133,135
- --------------------------------------------------------------------------------------------------------------------------
Other Assets less Liabilities (1.97%) 4,196,259
- --------------------------------------------------------------------------------------------------------------------------
Net Assets (100.00%) $213,329,394
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Security is designated as collateral for forward foreign currency contracts.
1. Shares have reduced dividend rights of ordinary shares.
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
Unrealized
Contract Maturity Value on Appreciation
Currency Amount Date March 31, 1999 (Depreciation)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Buy Euro 130,000 4/1/99 $ 140,303 $ 904
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 283,224,000 4/20/99 2,537,577 145,852
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 290,343,000 4/20/99 2,595,755 143,914
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 323,224,000 5/18/99 2,781,379 42,582
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 286,865,000 5/24/99 2,552,225 119,772
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 231,039,000 5/28/99 1,924,443 (35,572)
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 263,791,000 6/9/99 2,169,691 (71,677)
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 499,957,000 6/15/99 4,188,437 (62,956)
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Sell Japanese Yen 329,360,000 7/2/99 2,781,287 (25,814)
- ------------------------------------------------------------------------------------------------------------
Sell Swiss Franc 6,128,000 4/14/99 4,411,648 267,701
- ------------------------------------------------------------------------------------------------------------
$26,082,745 $524,706
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
Berger Funds Semi-Annual Report March 31, 1999 71
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $170,292,065
- -------------------------------------------------------------------------------------------------------------
Investments, at value $209,133,135
- -------------------------------------------------------------------------------------------------------------
Cash 15,033
- -------------------------------------------------------------------------------------------------------------
Foreign cash (cost $2,459,453) 2,428,979
- -------------------------------------------------------------------------------------------------------------
Receivables
Investment securities sold 1,054,559
- -------------------------------------------------------------------------------------------------------------
Contributions 101,136
- -------------------------------------------------------------------------------------------------------------
Dividends 869,945
- -------------------------------------------------------------------------------------------------------------
Interest 367
- -------------------------------------------------------------------------------------------------------------
Forward currency contracts 524,706
- -------------------------------------------------------------------------------------------------------------
Due from Management Company 2,865
- -------------------------------------------------------------------------------------------------------------
Total Assets 214,130,725
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 186,443
- -------------------------------------------------------------------------------------------------------------
Withdrawals 421,058
- -------------------------------------------------------------------------------------------------------------
Accrued investment advisory fees 162,091
- -------------------------------------------------------------------------------------------------------------
Accrued custodian fees 9,084
- -------------------------------------------------------------------------------------------------------------
Accrued audit fees 22,655
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 801,331
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $213,329,394
- -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------
For the Six Months Ended
March 31, 1999
(Unaudited)
- -------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
- -------------------------------------------------------------------------------------------------------------
Dividends $ 1,235,313
- -------------------------------------------------------------------------------------------------------------
Interest 120,754
- -------------------------------------------------------------------------------------------------------------
Foreign tax withheld (137,853)
- -------------------------------------------------------------------------------------------------------------
Total Income 1,218,214
- -------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 909,451
- -------------------------------------------------------------------------------------------------------------
Accounting fees 22,796
- -------------------------------------------------------------------------------------------------------------
Custodian fees 44,958
- -------------------------------------------------------------------------------------------------------------
Registration fees 1,160
- -------------------------------------------------------------------------------------------------------------
Audit fees 23,406
- -------------------------------------------------------------------------------------------------------------
Legal fees 944
- -------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses 8,733
- -------------------------------------------------------------------------------------------------------------
Reports to shareholders 2,642
- -------------------------------------------------------------------------------------------------------------
Other expenses 4,327
- -------------------------------------------------------------------------------------------------------------
Gross Expenses 1,018,417
- -------------------------------------------------------------------------------------------------------------
Less fees waived by the Advisor (4,399)
- -------------------------------------------------------------------------------------------------------------
Less earnings credits (19,366)
- -------------------------------------------------------------------------------------------------------------
Net Expenses 994,652
- -------------------------------------------------------------------------------------------------------------
Net investment income (loss) 223,562
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions (6,736,877)
- ------------------------------------------------------------------------------------------------- -----------
Net change in unrealized appreciation (depreciation) on securities and foreign currency
transactions 48,005,403
- -------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions 41,268,526
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $41,492,088
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
72 Semi-Annual Report March 31, 1999 Berger Fund
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss) $ 223,562 $ 5,874,066
- -----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on securities and foreign currency transactions (6,736,877) (4,726,150)
- -----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) on securities and
foreign currency transactions 48,005,403 (15,953,893)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 41,492,088 (14,805,977)
- -----------------------------------------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS' BENEFICIAL INTEREST
Contributions 41,101,022 103,931,701
- -----------------------------------------------------------------------------------------------------------------
Withdrawals (46,859,516) 33,746,924)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets From Investors' Transactions (5,758,494) 70,184,777
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 35,733,594 55,378,800
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
- -----------------------------------------------------------------------------------------------------------------
End of period $213,329,394 $177,595,800
- -----------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $177,141,295 $182,899,789
- -----------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) 8,887,339 8,663,777
- -----------------------------------------------------------------------------------------------------------------
Undistributed net realized gain (loss) from investments (11,463,310) (4,726,433)
- -----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of securities and foreign
currency transactions 38,764,070 (9,241,333)
- ------------------------------------------------------------------------------------------------------------------
Total $213,329,394 $177,595,800
- -----------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in thousands) $ 213,329 $ 177,596
- -----------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(2) 1.00%(1) 1.00%
- -----------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.22%(1) 3.45%
- -----------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.01%(1) 1.04%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 7% 17%
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
1. Annualized.
2. Net expenses represent gross expenses reduced by fees waived by the
Advisor.
3. Not annualized for periods of less than one full year.
See notes to financial statements.
Berger Funds Semi-Annual Report March 31, 1999 73
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION
The Berger/BIAM International Portfolio (the "Portfolio") is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company. The Portfolio is a series of the Berger/BIAM Worldwide
Portfolios Trust (the "Trust"), which was organized as a Delaware business trust
on May 31, 1996. All costs in organizing the Trust were borne by BBOI Worldwide
LLC ("BBOI"), the investment advisor of the Portfolio. The Portfolio commenced
investment operations on October 11, 1996, ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to the
International Equity Fund, formerly known as the Berger/BIAM International
Institutional Fund, in exchange for portfolio assets with an aggregate value of
$4,481,609, which were transferred from the Pooled Trust of Citizens Bank of New
Hampshire ("Citizens NH") to the International Equity Fund and, in turn,
transferred to the Portfolio. Such transaction was a tax-free exchange. Citizens
NH was 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. Citizens NH sold their 23.5% interest on September
4, 1998. Currently there are three investors in the Portfolio, the Berger/BIAM
International Fund, the International Equity Fund and the Berger/BIAM
International CORE Fund.
The investment objective of the Portfolio is long-term capital appreciation. The
Portfolio invests primarily in common stocks of well-established companies
located outside the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
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. Eastern Standard 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. Short-term
obligations maturing within 60 days are valued at amortized cost, which
approximates market value. Securities and assets for which quotations are not
readily available are valued at fair values determined in good faith pursuant to
consistently applied procedures established by the trustees of the Portfolio.
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 that materially affect the value of
such securities, the securities will be valued at their fair market value as
determined in good faith pursuant to consistently applied procedures established
by the trustees.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on trade date. Gains and losses are
computed on the identified cost basis for both financial statement and federal
income tax purposes for all securities. Dividend income is recorded on the
ex-dividend date, except if the ex-dividend date has passed, certain dividends
from foreign securities are
74 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
- --------------------------------------------------------------------------------
recorded as soon as the Portfolio is informed of the ex-dividend date. Dividend
income is recorded net of foreign taxes withheld. Interest income is recorded on
the accrual basis and includes amortization of discounts and premiums.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may enter into forward foreign currency exchange contracts for the
purpose of hedging the Portfolio against exposure to market value fluctuations
in foreign currencies. The use of such instruments may involve risks such as the
possibility of illiquid markets or imperfect correlation between the value of
the contracts and the underlying securities, or that the counterparty will fail
to perform its obligations. Forward currency contracts and foreign denominated
assets may involve more risks than domestic transactions, including currency
risk, political and economic risk, regulatory risk and market risk. Risks may
arise from the potential inability of a counterparty to meet the terms of a
contract and from unanticipated movements in the value of foreign currencies
relative to the U.S. dollar. The forward foreign currency exchange contracts are
adjusted to the daily exchange rate of the underlying currency and any gains or
losses are recorded for financial statement purposes as unrealized gains or
losses until the contract settlement date. Realized gains or losses on these
securities are included in Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions in the Statement of Operations.
- --------------------------------------------------------------------------------
2 AGREEMENTS
- --------------------------------------------------------------------------------
BBOI renders investment advisory services to the Portfolio pursuant to an
agreement that provides for an investment advisory fee to be paid to BBOI at the
annual rate of .90% of the Portfolio's average daily net assets. BBOI has agreed
to waive its advisory fee to the extent that the Portfolio's normal operating
expenses in any fiscal year (including the investment advisory fee and custodian
fees, but excluding brokerage commissions, interest, taxes and extraordinary
expenses) exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging for all
managerial and administrative services necessary for the operations of the
Portfolio. BBOI has delegated the daily investment management of the Portfolio
to BIAM. For such services, BBOI pays BIAM a sub-advisory fee equal to .45% of
the average daily net assets of the Portfolio. Such sub-advisory fee has been
voluntarily waived by BIAM from the Commencement of Investment Operations
through March 31, 1999, except for an amount payable on the Citizens NH
converted assets (see note 1).
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide record
keeping and pricing services to the Portfolio, including calculating the net
asset value of the Portfolio, and to perform certain accounting and record
keeping functions required by the Portfolio. In addition, IFTC has been
appointed to serve as the Portfolio's custodian and transfer agent. For
custodian, record keeping 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, record keeping 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.
Certain officers and trustees of the Trust are officers and directors of Berger,
BBOI or BIAM. Trustees who are not affiliated with Berger, BBOI or BIAM are
compensated for their services according to a fee schedule, allocated among the
Berger Funds (which consists of the New Generation Fund, Select Fund, Small
Company Growth Fund, Small Cap Value Fund, Mid Cap Growth Fund, Mid Cap Value
Fund, One Hundred Fund, Growth & Income Fund and Balanced Fund) and the
Portfolio, which includes an annual fee component and a per meeting component.
The Portfolio's portion of the trustees' fees and expenses for the fiscal six
months ended March 31, 1999, totaled $17,799.
The Portfolio adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
Trustees to defer the receipt of all or a portion of the Trustee fees payable on
or after January 16, 1996. The deferred fees remain in the Funds and are
invested in various Berger funds until distribution in accordance with the Plan.
Berger Funds March 31, 1999 Semi-Annual Report 75
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
3 INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
PURCHASES AND SALES
Purchases and sales of investment securities (excluding short-term securities)
during the six months ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
Purchase of Sales of
Investment Securities Investment Securities
- ----------------------------------------------------------------
<S> <C> <C>
$14,620,069 $19,393,592
- ----------------------------------------------------------------
</TABLE>
There were no purchases or sales of long-term U.S. Government securities during
the six months ended March 31, 1999.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL
TAX COST OF SECURITIES
At March 31, 1999, the federal tax cost of securities and 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>
Gross Unrealized Gross Unrealized
Federal Tax Cost Appreciation Depreciation Net
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$170,338,191 $47,882,631 $(9,087,687) $38,794,944
- -------------------------------------------------------------------------------
</TABLE>
REPURCHASE AGREEMENTS
Repurchase agreements held by the Fund are fully collateralized by U.S. Treasury
securities and such collateral is in the possession of the Fund's custodian. The
collateral is evaluated daily to ensure its market value exceeds the current
market value of the repurchase agreements including accrued interest. In the
event of default on the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
- --------------------------------------------------------------------------------
4 LINE OF CREDIT
- --------------------------------------------------------------------------------
The Portfolio, along with the Berger New Generation Fund, Berger Select Fund,
Berger Small Company Growth Fund, Berger Small Cap Value Fund, Berger Mid Cap
Growth Fund, Berger One Hundred Fund, Berger Growth and Income Fund, and Berger
Balanced Fund (the "Funds"), are party to an ongoing agreement with certain
banks that allows the Funds and the Portfolio, collectively, to borrow up to
$150 million, subject to certain conditions, for temporary or emergency
purposes. Interest on any borrowings, if any, is charged to the specific Fund or
Portfolio executing the borrowing at the Federal Funds Rate plus 45 basis
points. In addition, the unsecured line of credit requires a quarterly payment
of a commitment fee based on the average daily unused portion of the line of
credit. At March 31, 1999, the outstanding balance on the line of credit was $0.
76 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
For a Share Outstanding Throughout the Periods Presented
- ----------------------------------------------------------------------------------------------------------------
Six Months Ended Years Ended September 30,
March 31, 1999 -----------------------------------------
(Unaudited) 1998 1997 1996(1)
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.66 $ 14.72 $ 11.82 $ 10.00
- ----------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.10) -- (0.13) 0.56
- ----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 6.16 (2.06) 3.64 1.26
- ----------------------------------------------------------------------------------------------------------------
Total from investment operations 6.06 (2.06) 3.51 1.82
- ----------------------------------------------------------------------------------------------------------------
Less dividends and distributions
- ----------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) -- -- (0.61) --
- ----------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.50) -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.50) -- (0.61) --
- ----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.22 $ 12.66 $ 14.72 $ 11.82
- ----------------------------------------------------------------------------------------------------------------
Total Return(2) 49.05% (13.99%) 31.53% 18.20%
- ----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 160,372 $ 113,693 $ 190,164 $ 116,912
- ----------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.72%(4) 1.72% 1.89% 1.90%(4)
- ----------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (1.33%)(4) (1.37%) (1.51%) 12.35%(4)
- ----------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.72%(4) 1.72% 1.89% 2.09%(4)
- ----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 95% 243% 184% 474%(5)
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
1. Period from March 29, 1996 (commencement of investment operations) to
September 30, 1996.
2. Not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived by the
Advisor.
4. Annualized.
5. Portfolio turnover was greater than anticipated during this period as a
result of portfolio transactions undertaken in response to volatile markets
and the short tax year for its initial period of operations.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
BERGER SELECT FUND
For a Share Outstanding Throughout the Periods Presented
- ----------------------------------------------------------------------------------------------------------------
Six Months Ended Period from
March 31, 1999 December 31, 1997(1)
(Unaudited) to September 30, 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.26 $ 10.00
- -------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.02 0.07
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 5.07 3.19
- -------------------------------------------------------------------------------------------------------------
Total from investment operations 5.09 3.26
- -------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.06) --
- -------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.84) --
- -------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.90) --
- -------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 17.45 $ 13.26
- -------------------------------------------------------------------------------------------------------------
Total Return(2) 39.33% 32.60%
- -------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 116,620 $ 41,571
- -------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.71%(3) 1.13%(3)
- -------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.30%(3) 1.48%(3)
- -------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 498% 1486%(4)
- -------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Not annualized for periods of less than one full year.
3. Annualized.
4. Portfolio turnover was greater than expected during this period due to
active trading undertaken in reponse to market conditions at a time when the
Fund's assets were still relatively small and before the Fund was fully
invested.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 77
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
BERGER SMALL COMPANY GROWTH FUND
For a Share Outstanding Throughout the Periods Presented
- ----------------------------------------------------------------------------------------------------------------------------
Six Months Ended Years Ended September 30,
March 31, 1999 --------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994(1)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 3.61 $ 5.33 $ 4.74 $ 3.61 $ 2.74 $ 2.50
- --------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.02) -- (0.05) (0.03) (0.02) --
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 0.88 (1.24) 0.84 1.16 0.89 0.24
- --------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.86 (1.24) 0.79 1.13 0.87 0.24
- --------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- -- -- -- --(2) --
- --------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.70) (0.48) (0.20) -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.70) (0.48) (0.20) -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 3.77 $ 3.61 $ 5.33 $ 4.74 $ 3.61 $ 2.74
- --------------------------------------------------------------------------------------------------------------------------
Total Return(3) 26.27% (24.70%) 17.68% 31.30% 31.90% 9.60%
- --------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $590,456 $561,741 $902,685 $871,467 $522,667 $211,852
- --------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(4) 1.69%(5) 1.48% 1.67% 1.68% 1.89% 2.10%(5)
- --------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (1.20%)(5) (1.01%) (1.09%) (0.97%) (0.74%) 0.32%(5)
- --------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.69%(5) 1.59% 1.67% 1.68% 1.89% 2.10%(5)
- --------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(3) 66% 97% 111% 91% 109% 108%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period from December 30, 1993 (commencement of investment operations)
to September 30, 1994.
2. Dividends from net investment income were less than $0.01 per share.
3. Not annualized for periods of less than one full year.
4. Net expenses represent gross expenses reduced by fees waived by the Advisor.
5. Annualized.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
BERGER SMALL CAP VALUE - INVESTOR SHARES
For a Share Outstanding Throughout the Periods Presented
- -----------------------------------------------------------------------------------------------------------------------
Six Months Ended Period from
March 31, 1999 Year ended February 14, 1997(1)
(Unaudited) September 30, 1998 to September 30, 1997
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 17.58 $ 22.28 $ 17.24
- -----------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.02) 0.42 0.03
- -----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.59 (2.58) 5.01
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.57 (2.16) 5.04
- -----------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.07) (0.17) --
- -----------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.81) (2.37) --
- -----------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.88) (2.54) --
- -----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.27 $ 17.58 $ 22.28
- -----------------------------------------------------------------------------------------------------------------------
Total Return(2) 8.79% (10.98%) 29.23%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 159,584 $ 108,465 $ 55,211
- -----------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 1.09%(3) 0.87% 0.60%(3)
- -----------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.49%(3) 1.56% 1.66%(3)
- -----------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 54% 69% 81%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Not annualized for periods of less than one full year.
3. Annualized.
See notes to financial statements.
78 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
BERGER SMALL CAP VALUE - INSTITUTIONAL SHARES
For a Share Outstanding Throughout the Periods Presented
- -------------------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1999 Year ended Nine Months Ended
(Unaudited) September 30, 1998 September 30, 1997
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 17.63 $ 22.33 $ 16.48
- -------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.04 0.45 0.07
- -------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.57 (2.55) 5.78
- -------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.61 (2.10) 5.85
- -------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.14) (0.23) --
- -------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.81) (2.37) --
- -------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.95) (2.60) --
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 18.29 $ 17.63 $ 22.33
- -------------------------------------------------------------------------------------------------------------------
Total Return(1) 9.03% (10.65%) 33.50%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $182,890 $92,787 $ 58,450
- -------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 1.37%(2) 1.26% 0.63%(2)
- -------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.10%(2) 1.19% 1.34%(2)
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 54% 69% 81%
- -------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------
Years Ended December 31,
-------------------------
1996 1995 1994
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 14.57 $ 12.75 $ 13.99
- ---------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.12 0.09 (0.01)
- ---------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 3.62 3.23 0.91
- ---------------------------------------------------------------------------------------
Total from investment operations 3.74 3.32 0.90
- ---------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.11) (0.09) --
- ---------------------------------------------------------------------------------------
Distributions (from capital gains) (1.72) (1.41) (2.14)
- ---------------------------------------------------------------------------------------
Total dividends and distributions (1.83) (1.50) (2.14)
- ---------------------------------------------------------------------------------------
Net asset value, end of period $ 16.48 $ 14.57 $ 12.75
- ---------------------------------------------------------------------------------------
Total Return(1) 25.58% 26.07% 6.74%
- ---------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 36,041 $ 31,833 $ 18,270
- ---------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.69% 0.64% (0.04%)
- ---------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.48% 1.64% 1.43%
- ---------------------------------------------------------------------------------------
Portfolio turnover rate(1) 69% 90% 125%
- ---------------------------------------------------------------------------------------
</TABLE>
1. Not annualized for periods of less than one full year.
2. Annualized.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
BERGER MID CAP GROWTH FUND
For a Share Outstanding Throughout the Periods Presented
- ---------------------------------------------------------------------------------------------------------------------------
Six Months Ended Period from
March 31, 1999 December 31, 1997(1) to
(Unaudited) September 30, 1998
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $10.93 $10.00
- ---------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.08) --
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 6.31 0.93
- ---------------------------------------------------------------------------------------------------------------------------
Total from investment operations 6.23 0.93
- ---------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- --
- ---------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.21) --
- ---------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.21) --
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $16.95 $10.93
- ---------------------------------------------------------------------------------------------------------------------------
Total Return(2) 57.50% 9.30%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $9,318 $4,283
- ---------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 2.00%(4) 2.00%(4)
- ---------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (1.39%)(4) (0.82%)(4)
- ---------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 2.16%(4) 2.46%(4)
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 112% 262%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived by the Advisor.
4. Annualized.
See notes to financial statements.
Berger Funds March 31, 1999 Semi-Annual Report 79
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
For a Share Outstanding Throughout the Periods Presented
- -------------------------------------------------------------------------------------------------------------------------
Six months ended Period from
March 31, 1999 August 12, 1998(1)
(Unaudited) to September 30, 1998
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.33 $ 10.00
- -------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.03 0.03
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.86 (0.70)
- -------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.89 (0.67)
- -------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
- -------------------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) (0.06) --
- -------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) -- --
- -------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.06) --
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.16 $ 9.33
- -------------------------------------------------------------------------------------------------------------------------
Total Return(2) 20.24% (6.70%)
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $21,689 $19,710
- -------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 0.72%(3) 2.30%(3)
- -------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.63%(3) 1.68%(3)
- -------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 80% 25%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Not anualized for periods of less than one full year.
3. Annualized.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
BERGER 100 FUND
For a Share Outstanding Throughout the Periods Presented
- -----------------------------------------------------------------------------------------------------------------
Six Months Ended Years Ended September 30,
March 31, 1999 ------------------------
(Unaudited) 1998 1997(1) 1996(1)
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.99 $ 21.51 $ 19.64 $ 18.89
- -----------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.03) -- (0.09) (0.08)
- -----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.16 (2.57) 4.73 1.76
- -----------------------------------------------------------------------------------------------------------------
Total from investment operations 4.13 (2.57) 4.64 1.68
- -----------------------------------------------------------------------------------------------------------------
Less dividends and distributions
- -----------------------------------------------------------------------------------------------------------------
Dividends (from net investment income) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.98) (6.95) (2.77) (0.93)
- -----------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.98) (6.95) (2.77) (0.93)
- -----------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.14 $ 11.99 $ 21.51 $ 19.64
- -----------------------------------------------------------------------------------------------------------------
Total Return(4) 35.21% (16.08%) 26.50% 9.36%
- -----------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $1,456,450 $1,286,828 $1,889,048 $2,012,706
- -----------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.41%(2) 1.38% 1.41% 1.42%
- -----------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.42%)(2) (0.38%) (0.40%) (0.43%)
- -----------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.41%(2) 1.38% 1.41% 1.42%
- -----------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(4) 154% 280% 200% 122%
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
Years Ended September 30,
------------------------
1995(1) 1994(1)
- -------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 15.96 $ 16.54
- -------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.04) (0.12)
- -------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 2.97 (0.46)
- -------------------------------------------------------------------------------
Total from investment operations 2.93 (0.58)
- -------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- --
- -------------------------------------------------------------------------------
Distributions (from capital gains) -- --
- -------------------------------------------------------------------------------
Total dividends and distributions -- --
- -------------------------------------------------------------------------------
Net asset value, end of period $ 18.89 $ 15.96
- -------------------------------------------------------------------------------
Total Return(4) 18.36% (3.51%)
- -------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $2,205,678 $2,228,743
- -------------------------------------------------------------------------------
Net expense ratio to average net assets(3) 1.49% 1.70%
- -------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.28%) (0.74%)
- -------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.49% 1.95%
- -------------------------------------------------------------------------------
Portfolio turnover rate(4) 114% 64%
- -------------------------------------------------------------------------------
</TABLE>
1. Per share calculations for the period were based on average shares
outstanding.
2. Annualized.
3. Net expenses represent gross expenses reduced by fees waived by the Advisor.
4. Not annualized for periods of less than one full year.
See notes to financial statements.
80 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
For a Share Outstanding Throughout the Periods Presented
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended Period from
March 31, 1999 Year ended November 7, 1996 (1) to
(Unaudited) September 30, 1998 September 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.06 $ 11.46 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) (0.03) 0.50(2) 0.05
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 2.34 (1.46)(2) 1.41
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.31 (0.96) 1.46
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.47) (0.06) --
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (0.02) (0.38) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.49) (0.44) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 11.88 $ 10.06 $ 11.46
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (3) 23.11% (8.46)% 14.60%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $19,525 $16,515 $18,673
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets (4) (5) 1.76%(6) 1.80% 1.90%(6)
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.50%)(6) 2.20% 0.61%(6)
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets (5) 1.77%(6) 1.83% 1.99%(6)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Restated.
3. Total return not annualized for periods of less than one full year.
4. Net expenses represent gross expenses reduced by fees waived by the Advisor.
5. Reflects the Fund's expenses plus the Fund's pro rata share of the
Portfolio's expenses.
6. Annualized.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
BERGER GROWTH & INCOME FUND
For a Share Outstanding Throughout the Periods Presented
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Ended Years Ended September 30,
March 31, 1999 ------------------------
(Unaudited) 1998 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.60 $ 16.72 $ 14.06 $ 12.89 $ 11.48 $ 11.27
- ------------------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) -- 0.04 0.14 0.20 0.16 0.12
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.19 (0.30) 4.28 1.17 1.43 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 4.19 (0.26) 4.42 1.37 1.59 0.33
- ------------------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) -- (0.03) (0.13) (0.20) (0.18) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends (in excess of net investment income) (0.01) (0.01) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (2.80) (2.82) (1.63) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (2.81) (2.86) (1.76) (0.20) (0.18) (0.12)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 14.98 $ 13.60 $ 16.72 $ 14.06 $ 12.89 $ 11.48
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (1) 35.59% (1.60%) 34.56% 10.66% 14.05% 2.91%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $383,885 $301,330 $357,023 $315,538 $354,396 $391,570
- ------------------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets (2) 1.43%(3) 1.44% 1.51% 1.56% 1.64% 1.81%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets (0.05%)(3) 0.25% 0.87% 1.39% 1.33% 1.19%
- ------------------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.43%(3) 1.44% 1.51% 1.56% 1.64% 2.06%
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 118% 417%(4) 173% 112% 85% 23%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Not annualized for periods of less than one full year.
2. Net expenses represent gross expenses reduced by fees waived by the Advisor.
3. Annualized.
4. Portfolio turnover was greater than expected during this period due to higher
than normal trading activity undertaken in response to market conditions that
existed at that time.
See notes to financial statements.
Berger Funds Semi-Annual Report March 31, 1999 81
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
BERGER BALANCED FUND
For a Share Outstanding Throughout the Periods Presented
- ------------------------------------------------------------------------------------------------------------------------
Six Months Ended
March 31, 1999 Year Ended
(Unaudited) September 30, 1998(1)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.28 $ 10.00
- ------------------------------------------------------------------------------------------------------------------------
From investment operations
Net investment income (loss) 0.10 0.22
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 3.33 5.17
- ------------------------------------------------------------------------------------------------------------------------
Total from investment operations 3.43 5.39
- ------------------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment income) (0.10) (0.21)
- ------------------------------------------------------------------------------------------------------------------------
Distributions (from capital gains) (1.35) (1.90)
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (1.45) (2.11)
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 15.26 $ 13.28
- ------------------------------------------------------------------------------------------------------------------------
Total Return (2) 27.01% 56.77%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $87,784 $30,721
- ------------------------------------------------------------------------------------------------------------------------
Net expense ratio to average net assets (3) 1.34%(4) 1.50%
- ------------------------------------------------------------------------------------------------------------------------
Ratio of net income (loss) to average net assets 1.75%(4) 1.81%
- ------------------------------------------------------------------------------------------------------------------------
Gross expense ratio to average net assets 1.34%(4) 1.57%
- ------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (2) 185% 658%(5)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. The Fund had no financial highlights for the one day of operations during the
period ended September 30, 1997.
2. Not annualized for periods of less than one full year.
3. Net expenses represent gross expenses reduced by fees waived by the Advisor.
4. Annualized.
5. Portfolio turnover was greater than expected during the period due to higher
than normal trading activity undertaken in response to market conditions at a
time when the Fund's assets were still relatively small and before the Fund was
fully invested.
See notes to financial statements.
82 Semi-Annual Report March 31, 1999 Berger Funds
<PAGE>
[LOGO] Shareholders with questions should write
to: Berger Funds, c/o Berger Associates, Bulk Rate
Inc., P.O. Box 5005, Denver, CO 80217, or U.S. Postage
call (800) 551-5849. PAID
Visit our website at www.bergerfunds.com. Berger Funds
BERGER FUNDS
210 University Blvd
Denver, CO 80206
COMSAR
<PAGE>
INTERNATIONAL
EQUITY
FUND
MARCH 31, 1999
SEMI-ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
TABLE OF CONTENTS
EQUITY FUND
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
<S> <C>
PORTFOLIO MANAGER'S COMMENTARY..................... 2
STATEMENT OF ASSETS AND LIABILITIES................ 5
STATEMENT OF OPERATIONS............................ 5
STATEMENT OF CHANGES IN NET ASSETS................. 6
NOTES TO FINANCIAL STATEMENTS...................... 7
FINANCIAL HIGHLIGHTS............................... 10
<CAPTION>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<S> <C>
SCHEDULE OF INVESTMENTS............................ 12
STATEMENT OF ASSETS AND LIABILITIES................ 17
STATEMENT OF OPERATIONS............................ 18
STATEMENT OF CHANGES IN NET ASSETS................. 19
NOTES TO FINANCIAL STATEMENTS...................... 20
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
PORTFOLIO MANAGER'S COMMENTARY
EQUITY FUND
PERFORMANCE
The International Equity Fund (the "Fund") had a total return of 23.41%(1)
for the six-month period ended March 31, 1999, compared to 22.51% for the MSCI
EAFE Index.(2)
Global equity markets rebounded strongly for the fourth quarter 1998,
prompted primarily by interest rate reductions in the U.S. and Europe. In
contrast, global markets turned in mixed performances in the first quarter 1999.
The long-awaited birth of the euro got European stock markets off to a flying
start in January but they lost some ground that was recovered somewhat by the
end of the period. The Japanese market benefited from a more positive sentiment
among investors but moved sideways except for a period when it was driven by
overseas buying. In the rest of the Pacific region, however, markets turned in
varied results.
PERIOD IN REVIEW
Stocks in the Growth in Telecommunications theme led our portfolio higher
this period. The most notable performers in the quarter ended December 31, 1998
were KPN (1.1% of total Fund assets) and Alcatel Alsthom (1.0% of assets).
Alcatel, with Fujistu of Japan, was awarded the supply contract for the 18,000
mile trans-Pacific cable link between Australia and the U.S. Mannesmann, a
German quoted conglomerate, (4.0% of assets) had a strong first quarter 1999 and
two of our largest telecommunications holdings--Vodafone (3.1% of assets) and
Telecom Italia (3.0% of assets)--were involved in the merger and acquisition
activity that engulfed global telecommunications companies. KPN in the
Netherlands and Tele Danmark both underperformed in the first quarter 1999 due
to somewhat disappointing results and a bout of profit taking.
Stocks in the Positive Banking Environment theme strengthened significantly
and our Fund particularly benefited from performances by Barclays Bank (2.3% of
assets) and National Australia Bank (1.8% of assets). One portfolio holding
bucked this positive trend--Bayerische Vereinsbank (0.9% of assets), which
suffered as a result of issues arising from events that took place prior to the
merger that formed the new entity last year. In an effort to clear the air,
Vereinsbank announced the hiring of an outside auditor to review its accounts.
In our Technological Innovation theme, some Japanese-quoted stocks made a
positive contribution to the portfolio's performance this period. Murata
Manufacturing (1.2% of assets) continues to see strong orders from European
telecommunications companies
2
<PAGE>
INTERNATIONAL EQUITY FUND
and has raised net profit expectations by 12%. Canon's (2.2% of assets) calendar
year 1998 results were in line with expectations and the company said its
operating margins should remain solid.
Sony (2.4% of assets) made a significant contribution to the portfolio's
performance during the first quarter 1999. The stock received a boost when the
company announced aggressive restructuring plans, an unusual move for a Japanese
company.
Stocks in the Growth in Personal Savings theme had a negative impact on the
portfolio. Dutch company ING (3.3% of assets), which saw its fourth quarter
profit decline, led the group lower. Prudential (2.0% of assets), the UK's
largest insurance company, experienced several rounds of profit taking even
after it announced satisfactory earnings results and its intent to purchase a
British company that represents enhanced shareholder value.
Pharmaceutical stocks in the Healthcare Needs theme also suffered during the
first quarter. The biggest decliner among these stocks was Novartis (2.1% of
assets), which fell after the company revealed a slow down in sales.
LOOKING AHEAD
We remain concerned about prospects for significant corporate earnings growth
in light of the low growth rates forecasted for the global economy.
Additionally, equity market strength in most countries is narrowly concentrated
and momentum investing remains the flavor of the day. The degree of narrowness
of strength in the U.S. equity market has been well documented. Unfortunately,
the same is true, though to a varying extent, in international equity markets.
Value is emerging in certain areas, but ongoing company profit warnings and
subsequent sharp drops in share prices make stock selection treacherous. Given
this backdrop, we seek companies with visible earnings growth momentum even
though the market now demands an ever-increasing price for good earnings news.
We are looking for companies that are willing to take advantage of the
restructuring opportunities that now exist given the low interest-rate
environment around the world. This is specifically true of Europe. There have
been some encouraging signs in Japan, although to date the progress has been
slow.
(1) PERFORMANCE FIGURES ARE BASED ON HISTORICAL RESULTS AND ARE NOT INTENDED
TO BE INDICATIVE OF FUTURE PERFORMANCE. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST.
(2) THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX REPRESENTS MAJOR
OVERSEAS STOCK MARKETS. IT IS AN UNMANAGED INDEX, WITH DIVIDENDS
REINVESTED. ONE CANNOT INVEST DIRECTLY IN AN INDEX.
3
<PAGE>
INTERNATIONAL EQUITY FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
COMPARISON OF CHANGE IN VALUE OF
$1,000,000 INVESTMENT IN INTERNATIONAL
EQUITY FUND VS. EAFE INDEX
AND COST OF LIVING INDEX
INITIAL INVESTMENT $1,000,000 VALUE OF SHARES
INTERNATIONAL EAFE COST OF
<S> <C> <C> <C> <C> <C>
Equity Fund Index Living Index
7/31/89 $1,000,000 $1,000,000 $1,000,000
3/31/90 $1,267,000 $838,777 $1,034,566
3/31/91 $1,263,000 $862,814 $1,085,209
3/31/92 $1,359,000 $796,278 $1,119,775
3/31/93 $1,555,000 $891,892 $1,154,341
3/31/94 $1,888,000 $1,095,573 $1,183,280
3/31/95 $1,904,000 $1,165,375 $1,217,042
3/31/96 $2,367,000 $1,313,047 $1,251,608
3/31/97 $2,651,395 $1,336,073 $1,286,174
3/31/98 $3,111,494 $1,588,938 $1,303,859
3/31/99 $3,282,820 $1,690,080 $1,326,367
International Equity Fund(*)
Average Annual Total Return
As of March 31, 1999
Life of Fund
1 Year 5 Years (7/31/89)
5.50% 11.70% 13.09%
Past performance is not predictive
of future performance.
</TABLE>
* THE PROSPECTUS CONTAINS MORE INFORMATION REGARDING FEES, EXPENSES AND RISKS.
ALL INVESTMENTS ARE SUBJECT TO RISK. PLEASE REFER TO THE ACCOMPANYING
PROSPECTUS(ES) FOR SPECIFIC RISKS ASSOCIATED WITH AN INVESTMENT IN THE FUND(S)
BEING OFFERED. PAST RESULTS ARE NOT INDICATIVE OF THE FUTURE AND SHOULD NOT BE
CONSIDERED AS A REPRESENTATION OF THE RESULTS OF AN INVESTMENT MADE IN THE
FUND(S) TODAY. RETURNS WILL BE LOWER IF YOUR FINANCIAL INTERMEDIARY IMPOSES
ITS OWN FEES OR OTHER EXPENSES ON ITS CUSTOMERS. WHEN COMPARING RESULTS WITH
INDEXES OR INDIVIDUAL STOCKS, IT IS IMPORT TO NOTE THAT INDEXES ARE UNMANAGED
AND THAT YOU CANNOT INVEST DIRECTLY IN AN INDEX. WHEN COMPARING INVESTMENTS TO
CERTIFICATES OF DEPOSIT (CDS) OR TREASURY ISSUES, NOTE THAT CD'S ARE INSURED
BY THE FDIC AND TREASURY SECURITIES ARE GUARANTEED BY THE U.S. GOVERNMENT.
WHEN HELD TO MATURITY, THESE SECURITIES OFFER BOTH A FIXED PRINCIPAL VALUE AND
FIXED RETURN. SHARE PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY
INVESTING IN THE FUND(S). THE SHORTER THE TIME PERIOD OF YOUR INVESTMENT, THE
GREATER THE POSSIBILITY OF LOSS. INVESTMENT PROGRAMS CANNOT ASSURE A PROFIT
NOR PROTECT AGAINST LOSS. UNLESS SPECIFICALLY INDICATED, THE ILLUSTRATION HAS
NOT BEE ADJUSTED FOR ANY INCOME TAXES PAYABLE BY THE SHAREHOLDER. FUND SHARES
ARE NOT DEPOSITS OR OBLIGATIONS, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
4
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
ASSETS
Investment in Berger/BIAM International Portfolio
("Portfolio"), at value $9,737,194
- -------------------------------------------------------------------
Total Assets 9,737,194
- -------------------------------------------------------------------
LIABILITIES
Payables
Accrued administrative service fees 812
- -------------------------------------------------------------------
Total Liabilities 812
- -------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $9,736,382
- -------------------------------------------------------------------
- -------------------------------------------------------------------
Capital Shares
Authorized (par value $.01) Unlimited
- -------------------------------------------------------------------
- -------------------------------------------------------------------
Shares Outstanding
806,495
- -------------------------------------------------------------------
- -------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE
$ 12.07
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- ---------------------------------------------------------------------
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO:
Dividends $ 53,442
Interest 5,048
Foreign withholding taxes (6,175)
Portfolio expenses (net of earnings credits and
fee waivers totaling $922) (42,868)
- ---------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 9,447
- ---------------------------------------------------------------------
FUND EXPENSES:
Administrative services fee 4,342
- ---------------------------------------------------------------------
Net expenses 4,342
- ---------------------------------------------------------------------
Net Investment Income (Loss) 5,105
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO:
Net realized gain (loss) on securities and foreign
currency transactions (271,033)
Net change in unrealized appreciation
(depreciation) on securities and foreign currency
transactions 1,956,534
- ---------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions
Allocated from Portfolio 1,685,501
- ---------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $1,690,606
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 5,105 $ 222,763
Net realized gain (loss) on securities
and foreign currency transactions
allocated from Portfolio (271,033) (184,550)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions allocated
from Portfolio 1,956,534 (910,289)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 1,690,606 (872,076)
- ---------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (220,704) (73,365)
In excess of net realized gains on
investments (4,308) (312,233)
- ---------------------------------------------------------------------------------
Net Decrease in Net Assets from
Dividends and Distributions to
Shareholders (225,012) (385,598)
- ---------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 1,960,262 3,274,818
Net asset value of shares issued in
reinvestment of dividends and
distributions 141,880 376,087
Payments for shares redeemed (980,274) (1,587,277)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions 1,121,868 2,063,628
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 2,587,462 805,954
- ---------------------------------------------------------------------------------
NET ASSETS
Beginning of period 7,148,920 6,342,966
- ---------------------------------------------------------------------------------
End of period $9,736,382 $ 7,148,920
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $8,517,615 $ 7,395,747
Undistributed net investment income
(loss) 35,010 250,609
Distributions in excess of net realized
gain from investments and foreign
currency transactions (494,836) (219,495)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions 1,678,593 (277,941)
- ---------------------------------------------------------------------------------
Total $9,736,382 $ 7,148,920
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
Shares sold 168,844 277,815
Shares issued to shareholders in
reinvestment of dividends and
distributions 12,217 36,630
Shares repurchased (88,049) (145,764)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Shares 93,012 168,681
- ---------------------------------------------------------------------------------
Shares outstanding, beginning of period 713,483 544,802
- ---------------------------------------------------------------------------------
Shares outstanding, end of period 806,495 713,483
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1999
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The International Equity Fund (the "Fund"), formerly known as the Berger/BIAM
International Institutional Fund prior to June 20, 1997, is a series of the
Berger/BIAM Worldwide Funds Trust (the "Trust"), a Delaware business trust,
organized on May 31, 1996. The Trust is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Trust
is authorized to issue an unlimited number of shares of beneficial interest in
series or portfolios. Currently, the series comprising the Fund, Berger/BIAM
International Fund and Berger/BIAM International CORE Fund, are the only series
established under the Trust, although others may be added in the future. The
Trust is also authorized to establish multiple classes of shares representing
differing interests in an existing or new series. The Fund commenced investment
operations on October 11, 1996 ("Commencement of Investment Operations").
The investment objective of the Fund is long-term capital appreciation. The
Fund will invest all of its investable assets in the Berger/BIAM International
Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide Portfolios Trust.
The value of such investment reflects the Fund's proportionate interest in the
net assets of the Portfolio (5% at March 31, 1999). The Portfolio is an open-end
management investment company and has the same investment objective and policies
as the Fund. The performance of the Fund will be derived from the investment
performance of the Portfolio. The financial statements of the Portfolio,
including the schedule of investments, are included elsewhere in this report and
should be read in conjunction with the Fund's financial statements. All costs in
organizing the Trust were borne by BBOI Worldwide LLC, the investment advisor of
the Portfolio (the "Advisor"). The Advisor has delegated the daily investment
management of the Portfolio to Bank of Ireland Asset Management (U.S.) Limited
("BIAM" or the "Sub-Advisor"), which owns 50% of the Advisor. Berger Associates,
Inc. ("Berger") also owns 50% of the Advisor.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Since the Fund will invest all of its investable assets in the Portfolio, the
value of the Fund's invested assets will be equal to the value of its beneficial
interest in the
7
<PAGE>
INTERNATIONAL EQUITY FUND
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.
CALCULATION OF NET ASSET VALUE
The per share calculation of net asset value is determined by dividing the
total value of the Fund's assets, less liabilities, by the total number of
shares outstanding.
INCOME AND EXPENSES
As an investor in the Portfolio, the Fund is allocated its pro rata share of
the aggregate investment income, realized and unrealized gains or losses and
annual operating expenses (including the investment advisory fee, custodian
fees, independent accountants' fees, record keeping and pricing agent fees) of
the Portfolio. Income, realized and unrealized gains or losses and expenses are
allocated on the day incurred in proportion to the prior day's relative net
assets of the Fund compared to the 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.
FEDERAL INCOME TAX STATUS
Dividends paid by the Fund from net investment income and distributions of
net realized short-term capital gains are, for federal income tax purposes,
taxable as ordinary income to shareholders.
The Fund distributes net realized capital gains, if any, to its shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatments of
net operating losses, foreign currency and tax allocations. Accordingly, these
permanent differences in the character of income and distributions between
financial statements and tax basis will be reclassified to paid-in-capital.
For the year ended September 30, 1998, the Fund incurred and elected to defer
post-October 31 net capital and currency losses totaling $278,709, to the year
ended September 30, 1999.
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
8
<PAGE>
INTERNATIONAL EQUITY FUND
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
0.10% 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 record keeping 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 communications 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. Berger has voluntarily waived such
sub-administration fee from the Commencement of Investment Operations through
March 31, 1999.
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
record keeping and pricing services to the Fund, including calculating the net
asset value of the Fund, and to perform certain accounting and record keeping
functions that it requires. In addition, IFTC has been appointed to serve as the
Fund's custodian, transfer agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and directors of
Berger, the Advisor or BIAM. Trustees who are not affiliated with Berger, the
Advisor or BIAM are compensated for their services according to a fee schedule,
allocated among the Berger Funds, which consists of the Berger New Generation
Fund, Berger Select Fund, Berger Small Company Growth Fund, Berger Small Cap
Value Fund, Berger Mid Cap Growth Fund, Berger Mid Cap Value Fund, Berger One
Hundred Fund, Berger Growth and Income Fund and Berger Balanced Fund, and the
Portfolio, which includes an annual fee component and a per meeting component.
Such fees are allocated directly to the Portfolio and, therefore, indirectly to
the Fund.
9
<PAGE>
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
MARCH 31, 1999 YEAR ENDED OCTOBER 11, 1996(1) TO
(UNAUDITED) SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 10.02 $ 11.64 $ 10.00
- ------------------------------------------------------------------------------------------------------------
From Investment Operations
Net investment income (loss) (0.03) 0.34(2) 0.10
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions 2.37 (1.23)(2) 1.54
- ------------------------------------------------------------------------------------------------------------
Total from investment
operations 2.34 (0.89) 1.64
- ------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment
income) (0.28) (0.14) --
Distributions (in excess of
capital gains) (0.01) (0.59) --
- ------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (0.29) (0.73) --
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.07 $ 10.02 $ 11.64
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Total Return (3)
23.41% (7.77%) 16.40%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in
thousands) $ 9,736 $ 7,149 $ 6,343
Net expense ratio to average net
assets (4)(5) 1.10%(6) 1.08% 1.25%(6)
Ratio of net income (loss) to
average net assets 0.12%(6) 3.30% 1.03%(6)
Gross expenses to average net
assets (5) 1.11%(6) 1.12% 1.34%(6)
</TABLE>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. RESTATED.
3. TOTAL RETURN NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE FULL YEAR.
4. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED BY THE
ADVISOR.
5. REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE OF THE
PORTFOLIO'S EXPENSES.
6. ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
BERGER/BIAM
INTERNATIONAL PORTFOLIO
SEMI - ANNUAL REPORT
The following pages should be read in conjunction
with the International Equity Fund
Semi - Annual Report.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
MARCH 31, 1999
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - 96.75%
AUSTRALIA - 5.15%
1,800 Brambles Industries Business & Industrial Services $ 45,928
206,400 National Australia Bank Ltd. Commercial Banks & Other Banks 3,764,149
486,306 News Corp., Ltd. Media 3,613,161
419,245 Telstra Corp., Ltd. Utilities 2,203,015
185,970 Westpac Banking Corp., Ltd. Commercial Banks & Other Banks 1,361,360
-------------
10,987,613
-------------
DENMARK - 0.49%
10,600 Tele Danmark A.S. Utilities 1,048,576
-------------
FRANCE - 8.16%
18,626 Alcatel Alsthom+ Computer/Commercial/Office Equipment 2,140,874
33,002 AXA-UAP Insurance - Multi/Property/ Casualty 4,373,817
30,575 Michelin Class B Automobile Components 1,371,069
31,582 Total S.A. Class B Oil 3,889,084
22,901 Vivendi Diversified Holding Companies 5,632,754
-------------
17,407,598
-------------
GERMANY - 8.83%
2,808 Bayerische Motoren Werke (BMW) A.G. Automobiles 1,839,534
402 Bayerische Motoren Werke (BMW) A.G.(1) Automobiles 256,410
31,940 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 1,909,706
61,210 Hoechst A.G. Chemicals 2,652,344
67,600 Mannesmann A.G. Machinery & Engineering Services 8,630,848
44,851 Veba A.G. Diversified Industrials 2,357,345
2,177 Viag A.G. Utilities 1,200,373
-------------
18,846,560
-------------
ITALY - 3.42%
155,256 ENI S.p.A. Oil 988,604
594,757 Telecom Italia S.p.A. Utilities 6,316,212
-------------
7,304,816
-------------
</TABLE>
12
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
JAPAN (15.11%)
186,000 Canon, Inc.+ Computer/Commercial/Office Equipment $ 4,590,658
46,000 Fuji Photo Film+ Photo Equipment & Supplies 1,735,922
55,000 Honda Motor Co., Ltd.+ Automobiles 2,478,625
117,000 Kao Corp.+ Food & Grocery Products 2,577,222
6,500 Keyence Corp.+ Electronics & Instruments 969,127
48,000 Murata Manufacturing Co., Ltd.+ Electronics & Instruments 2,547,277
73 NTT Mobile Communication Network, Inc.+ Utilities 3,597,270
14,000 Rohm Co., Ltd.+ Electronics & Instruments 1,668,702
88,000 Shiseido Co., Ltd.+ Health & Personal Care 1,215,684
54,400 Sony Corp.+ Household Durables & Appliances 5,017,731
151,000 Takeda Chemical Industries Health & Personal Care 5,838,268
-------------
32,236,486
-------------
MALAYSIA - 0.10%
103,000 Hume Industries - Malaysia Bhd Construction & Building Materials 60,716
219,400 Sime Darby Bhd Diversified Holding Companies 159,817
-------------
220,533
-------------
NETHERLANDS - 9.01%
88,530 ABN Amro Holdings N.V. Commercial Banks & Other Banks 1,844,037
71,000 Elsevier N.V. Media 1,057,449
128,617 ING Groep N.V. Insurance - Multi/Property/ Casualty 7,086,245
73,320 Koninklijke Ahold N.V. Retail Trade 2,809,136
60,015 Koninklijke KPN N.V. Utilities 2,386,818
42,540 Royal Dutch Petroleum Co. Oil 2,261,131
58,840 TNT Post Group N.V. Utilities 1,771,735
-------------
19,216,551
-------------
NEW ZEALAND - 0.15%
66,472 Telecom Corp. of New Zealand Utilities 324,966
-------------
</TABLE>
13
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
PORTUGAL - 0.35%
37,950 Electricidade de Portugal S.A. Utilities $ 748,703
-------------
SINGAPORE - 1.39%
250,435 Development Bank of Singapore, Ltd. Commercial Banks & Other Banks 1,899,651
96,000 Singapore Press Holdings, Ltd. Media 1,061,725
-------------
2,961,376
-------------
SPAIN - 2.03%
123,311 Banco de Santander S.A. Commercial Banks & Other Banks 2,528,584
42,258 Telefonica S.A. Utilities 1,791,896
-------------
4,320,480
-------------
SWEDEN - 0.21%
18,800 Telefonaktiebolaget LM Ericsson Utilities 456,460
-------------
SWITZERLAND - 11.33%
1,793 Alusuisse Lonza Group A.G. Fabricated Metal Products 1,971,900
2,544 Nestle S.A.+ Food & Grocery Products 4,621,236
2,815 Novartis A.G. Health & Personal Care 4,565,841
346 Roche Holding A.G. Health & Personal Care 4,218,942
2,237 Schweizerische Rueckversicherungs Insurance - Multi/Property/ Casualty 4,949,115
12,207 Union Bank of Switzerland A.G. Commercial Banks & Other Banks 3,834,530
-------------
24,161,564
-------------
THAILAND - 0.35%
359,800 Bangkok Bank PLC Commercial Banks & Other Banks 737,118
-------------
UNITED KINGDOM - 30.67%
290,920 Allied Zurich AG Insurance Life & Agents/Brokers 3,915,841
171,550 Barclays Bank PLC Commercial Banks & Other Banks 4,925,152
290,920 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 2,419,849
460,564 BTR Siebe PLC Machinery & Engineering Services 2,028,687
272,430 Cable & Wireless PLC Utilities 3,399,076
</TABLE>
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
151,900 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing $ 2,201,316
311,650 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 3,496,563
170,850 Glaxo Welcome PLC Health & Personal Care 5,709,253
211,550 Granada Group PLC Entertainment/Leisure/Toys 4,279,783
191,411 Kingfisher PLC Retail Trade 2,409,810
353,800 Ladbroke Group PLC Entertainment/Leisure/Toys 1,615,447
351,960 Lloyds TSB Group PLC Commercial Banks & Other Banks 5,316,158
34,167 National Power PLC Utilities 262,718
88,420 National Westminster Bank PLC Commercial Banks & Other Banks 2,035,371
324,340 Prudential Corp. PLC Insurance Life & Agents/Brokers 4,221,901
31,530 Railtrack Group PLC Road & Rail 722,750
271,450 Safeway PLC Retail Trade 1,060,031
517,430 Shell Transport & Trading Co. PLC Oil 3,476,099
185,300 TI Group PLC Machinery & Engineering Services 1,203,028
354,700 Vodafone Group PLC Utilities 6,581,146
87,580 Zeneca Group PLC Health & Personal Care 4,133,756
-------------
65,413,735
-------------
TOTAL COMMON STOCK (Cost $167,552,065) 206,393,135
-------------
REPURCHASE AGREEMENT - 1.28%
$ 2,740,000 State Street Repurchase Agreement, 4.82% dated March 31, 1999 to be repurchased at
$2,740,367 on April 1, 1999, collateralized by U.S. Treasury Bond - October 31, 2000, with a
value of $2,799,274
2,740,000
-------------
TOTAL REPURCHASE AGREEMENT (Cost $2,740,000) 2,740,000
-------------
Total Investments (cost $170,292,065) - 98.03% 209,133,135
Other assets less liabilities - 1.97% 4,196,259
-------------
Net Assets - 100.00% $213,329,394
-------------
-------------
</TABLE>
+ SECURITY IS DESIGNATED AS COLLATERAL FOR FORWARD FOREIGN CURRENCY
CONTRACTS.
(1) SHARES HAVE REDUCED DIVIDEND RIGHTS OF ORDINARY SHARES.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<C> <S>
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON APPRECIATION
CURRENCY AMOUNT DATE MARCH 31, 1999 (DEPRECIATION)
------------------------- ----------- -------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Buy Euro 130,000 4/1/99 $ 140,303 $ 904
Sell Japanese Yen 283,224,000 4/20/99 2,537,577 145,852
Sell Japanese Yen 290,343,000 4/20/99 2,595,755 143,914
Sell Japanese Yen 323,224,000 5/18/99 2,781,379 42,582
Sell Japanese Yen 286,865,000 5/24/99 2,552,225 119,772
Sell Japanese Yen 231,039,000 5/28/99 1,924,443 (35,572)
Sell Japanese Yen 263,791,000 6/9/99 2,169,691 (71,677)
Sell Japanese Yen 499,957,000 6/15/99 4,188,437 (62,956)
Sell Japanese Yen 329,360,000 7/2/99 2,781,287 (25,814)
Sell Swiss Franc 6,128,000 4/14/99 4,411,648 267,701
--------------- ---------------
$ 26,082,745 $ 524,706
--------------- ---------------
--------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
ASSETS
Investments, at cost $170,292,065
- -------------------------------------------------------------------
Investments, at value $209,133,135
Cash 15,033
Foreign cash (cost $2,459,453) 2,428,979
Receivables
Investment securities sold 1,054,559
Contributions 101,136
Dividends 869,945
Interest 367
Forward currency contracts 524,706
Due from Management Company 2,865
- -------------------------------------------------------------------
Total Assets 214,130,725
- -------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 186,443
Withdrawals 421,058
Accrued investment advisory fees 162,091
Accrued custodian fees 9,084
Accrued audit fees 22,655
- -------------------------------------------------------------------
Total Liabilities 801,331
- -------------------------------------------------------------------
NET ASSETS $213,329,394
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends $ 1,235,313
Interest 120,754
Foreign tax withheld (137,853)
- -------------------------------------------------------------------
Total Income 1,218,214
- -------------------------------------------------------------------
Expenses
Investment advisory fees 909,451
Accounting fees 22,796
Custodian fees 44,958
Registration fees 1,160
Audit fees 23,406
Legal fees 944
Trustees' fees and expenses 8,733
Reports to shareholders 2,642
Other expenses 4,327
- -------------------------------------------------------------------
Gross Expenses 1,018,417
Less fees waived by the Advisor (4,399)
Less earnings credits (19,366)
- -------------------------------------------------------------------
Net Expenses 994,652
- -------------------------------------------------------------------
Net investment income (loss) 223,562
- -------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and
foreign currency transactions (6,736,877)
Net change in unrealized appreciation
(depreciation) on securities and foreign
currency transactions 48,005,403
- -------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions 41,268,526
- -------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $41,492,088
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ 223,562 $ 5,874,066
Net realized gain (loss) on securities
and foreign currency transactions (6,736,877) (4,726,150)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions 48,005,403 (15,953,893)
- -----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 41,492,088 (14,805,977)
- -----------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST
Contributions 41,101,022 103,931,701
Withdrawals (46,859,516) (33,746,924)
- -----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
From Investors' Transactions (5,758,494) 70,184,777
- -----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 35,733,594 55,378,800
- -----------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
- -----------------------------------------------------------------------------------
End of period $213,329,394 $177,595,800
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $177,141,295 $182,899,789
Undistributed net investment income
(loss) 8,887,339 8,663,777
Undistributed net realized gain (loss)
from investments (11,463,310) (4,726,433)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions 38,764,070 (9,241,333)
- -----------------------------------------------------------------------------------
Total $213,329,394 $177,595,800
- -----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in thousands) $ 213,329 $ 177,596
Net expense ratio to average net
assets(2) 1.00%(1) 1.00%
Ratio of net income (loss) to average
net assets 0.22%(1) 3.45%
Gross expense ratio to average net
assets 1.01%(1) 1.04%
Portfolio turnover rate(3) 7% 17%
</TABLE>
1. ANNUALIZED.
2. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED BY THE
ADVISOR.
3. NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE FULL YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
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 borne by BBOI Worldwide
LLC ("BBOI"), the investment advisor of the Portfolio. The Portfolio commenced
investment operations on October 11, 1996, ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to the
International Equity Fund, formerly known as the Berger/BIAM International
Institutional Fund, in exchange for portfolio assets with an aggregate value of
$4,481,609, which were transferred from the Pooled Trust of Citizens Bank of New
Hampshire ("Citizens NH") to the International Equity Fund and, in turn,
transferred to the Portfolio. Such transaction was a tax-free exchange. Citizens
NH was 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. Citizens NH sold their 23.5% interest on September
4, 1998. Currently there are three investors in the Portfolio, the Berger/ BIAM
International Fund, the International Equity Fund and the Berger/BIAM
International CORE Fund.
The investment objective of the Portfolio is long-term capital appreciation.
The Portfolio invests primarily in common stocks of well-established companies
located outside the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
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. Eastern Standard 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
20
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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. Short-term obligations maturing within 60 days are valued at
amortized cost, which approximates market value. Securities and assets for which
quotations are not readily available are valued at fair values determined in
good faith pursuant to consistently applied procedures established by the
trustees of the Portfolio.
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 that
materially affect the value of such securities, the securities will be valued at
their fair market value as determined in good faith pursuant to consistently
applied procedures established by the trustees.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on trade date. Gains and losses are
computed on the identified cost basis for both financial statement and federal
income tax purposes for all securities. Dividend income is recorded on the
ex-dividend date, except if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of foreign taxes withheld.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
21
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may enter into forward foreign currency exchange contracts for
the purpose of hedging the Portfolio against exposure to market value
fluctuations in foreign currencies. The use of such instruments may involve
risks such as the possibility of illiquid markets or imperfect correlation
between the value of the contracts and the underlying securities, or that the
counterparty will fail to perform its obligations. Forward currency contracts
and foreign denominated assets may involve more risks than domestic
transactions, including currency risk, political and economic risk, regulatory
risk and market risk. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements in
the value of foreign currencies relative to the U.S. dollar. The forward foreign
currency exchange contracts are adjusted to the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized gains or losses until the contract settlement date.
Realized gains or losses on these securities are included in Net Realized Gain
(Loss) on Investments and Foreign Currency Transactions in the Statement of
Operations.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio pursuant to an
agreement that provides for an investment advisory fee to be paid to BBOI at the
annual rate of .90% of the Portfolio's average daily net assets. BBOI has agreed
to waive its advisory fee to the extent that the Portfolio's normal operating
expenses in any fiscal year (including the investment advisory fee and custodian
fees, but excluding brokerage commissions, interest, taxes and extraordinary
expenses) exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging for all
managerial and administrative services necessary for the operations of the
Portfolio. BBOI has delegated the daily investment management of the Portfolio
to BIAM. For such services, BBOI pays BIAM a sub-advisory fee equal to .45% of
the average daily net assets of the Portfolio. Such sub-advisory fee has been
voluntarily waived by BIAM from the Commencement of Investment Operations
through March 31, 1999, except for an amount payable on the Citizens NH
converted assets (see note 1).
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
record keeping and pricing services to the Portfolio, including calculating the
net asset value
22
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
of the Portfolio, and to perform certain accounting and record keeping functions
required by the Portfolio. In addition, IFTC has been appointed to serve as the
Portfolio's custodian and transfer agent. For custodian, record keeping 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, record keeping 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.
Certain officers and trustees of the Trust are officers and directors of
Berger, BBOI or BIAM. Trustees who are not affiliated with Berger, BBOI or BIAM
are compensated for their services according to a fee schedule, allocated among
the Berger Funds (which consists of the New Generation Fund, Select Fund, Small
Company Growth Fund, Small Cap Value Fund, Mid Cap Growth Fund, Mid Cap Value
Fund, One Hundred Fund, Growth & Income Fund and Balanced Fund) and the
Portfolio, which includes an annual fee component and a per meeting component.
The Portfolio's portion of the trustees' fees and expenses for the fiscal six
months ended March 31, 1999, totaled $17,799.
The Portfolio adopted a Trustee Fee Deferral Plan (the "Plan") which allows
the Trustees to defer the receipt of all or a portion of the Trustee fees
payable on or after January 16, 1996. The deferred fees remain in the Funds and
are invested in various Berger funds until distribution in accordance with the
Plan.
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales of investment securities (excluding short-term
securities) during the six months ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
Purchase of Sales of
Investment Investment
Securities Securities
- ------------------ ------------------
<S> <C>
$ 14,620,069 $ 19,393,592
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the six months ended March 31, 1999.
23
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At March 31, 1999, the federal tax cost of securities and 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>
Gross Gross
Unrealized Unrealized
Federal Tax Cost Appreciation Depreciation Net
- ---------------- ------------ ------------ -----------
<S> <C> <C> <C>
$170,338,191 $ 47,882,631 $(9,087,687) $38,794,944
</TABLE>
REPURCHASE AGREEMENTS
Repurchase agreements held by the Fund are fully collateralized by U.S.
Treasury securities and such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Fund has
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
4. LINE OF CREDIT
The Portfolio, along with the Berger New Generation Fund, Berger Select Fund,
Berger Small Company Growth Fund, Berger Small Cap Value Fund, Berger Mid Cap
Growth Fund, Berger One Hundred Fund, Berger Growth and Income Fund, and Berger
Balanced Fund (the "Funds"), are party to an ongoing agreement with certain
banks that allows the Funds and the Portfolio, collectively, to borrow up to
$150 million, subject to certain conditions, for temporary or emergency
purposes. Interest on any borrowings, if any, is charged to the specific Fund or
Portfolio executing the borrowing at the Federal Funds Rate plus 45 basis
points. In addition, the unsecured line of credit requires a quarterly payment
of a commitment fee based on the average daily unused portion of the line of
credit. At March 31, 1999, the outstanding balance on the line of credit was $0.
24
<PAGE>
IEFSAR
<PAGE>
BERGER FUNDS
SEMI-ANNUAL REPORT
[ART]
March 31, 1999
BERGER/BIAM INTERNATIONAL CORE FUND
<PAGE>
- --------------------------------------------------------------------------------
BERGER/BIAM
TABLE OF CONTENTS
INTERNATIONAL CORE FUND
<TABLE>
<CAPTION>
BERGER/BIAM INTERNATIONAL CORE FUND
<S> <C>
PORTFOLIO MANAGERS' COMMENTARY..................... 2
STATEMENT OF ASSETS AND LIABILITIES................ 5
STATEMENT OF OPERATIONS............................ 5
STATEMENT OF CHANGES IN NET ASSETS................. 6
NOTES TO FINANCIAL STATEMENTS...................... 7
FINANCIAL HIGHLIGHTS............................... 10
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS............................ 12
STATEMENT OF ASSETS AND LIABILITIES................ 17
STATEMENT OF OPERATIONS............................ 18
STATEMENT OF CHANGES IN NET ASSETS................. 19
NOTES TO FINANCIAL STATEMENTS...................... 20
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
THE BERGER/BIAM
PORTFOLIO MANAGERS' COMMENTARY
INTERNATIONAL CORE FUND
PERFORMANCE
The Berger/BIAM International CORE Fund (the "Fund") had a total return of
23.47%(1) for the six-month period ended March 31, 1999, compared to 22.51% for
the MSCI EAFE Index.(2)
Global equity markets rebounded strongly for the fourth quarter 1998, prompted
primarily by interest rate reductions in the U.S. and Europe. In contrast,
global markets turned in mixed performances in the first quarter 1999.
The long-awaited birth of the euro got European stock markets off to a flying
start in January but they lost some ground that was recovered somewhat by the
end of the period. The Japanese market benefited from a more positive sentiment
among investors but moved sideways except for a period when it was driven by
overseas buying. In the rest of the Pacific region, however, markets turned in
varied results.
PERIOD IN REVIEW
Stocks in the Growth in Telecommunications theme led our portfolio higher
this period. The most notable performers in the quarter ended December 31, 1998
were KPN (1.1% of total Fund assets) and Alcatel Alsthom (1.0% of assets).
Alcatel, with Fujistu of Japan, was awarded the supply contract for the 18,000
mile trans-Pacific cable link between Australia and the U.S. Mannesmann, a
German quoted conglomerate, (4.0% of assets) had a strong first quarter 1999 and
two of our largest telecommunications holdings--Vodafone (3.1% of assets) and
Telecom Italia (3.0% of assets)--were involved in the merger and acquisition
activity that engulfed global telecommunications companies. KPN in the
Netherlands and Tele Danmark both underperformed in the first quarter 1999 due
to somewhat disappointing results and a bout of profit taking.
Stocks in the Positive Banking Environment theme strengthened significantly
and our Fund particularly benefited from performances by Barclays Bank (2.3% of
assets) and National Australia Bank (1.8% of assets). One portfolio holding
bucked this positive trend--Bayerische Vereinsbank (0.9% of assets), which
suffered as a result of issues arising from events that took place prior to the
merger that formed the new entity last year. In an effort to clear the air,
Vereinsbank announced the hiring of an outside auditor to review its accounts.
In our Technological Innovation theme, some Japanese-quoted stocks made a
positive contribution to the portfolio's performance this period. Murata
Manufacturing (1.2% of assets) continues to see strong orders from European
telecommunications companies and
2
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
has raised net profit expectations by 12%. Canon's (2.2% of assets) calendar
year 1998 results were in line with expectations and the company said its
operating margins should remain solid.
Sony (2.4% of assets) made a significant contribution to the portfolio's
performance during the first quarter 1999. The stock received a boost when the
company announced aggressive restructuring plans, an unusual move for a Japanese
company.
Stocks in the Growth in Personal Savings theme had a negative impact on the
portfolio. Dutch company ING (3.3% of assets), which saw its fourth quarter
profit decline, led the group lower. Prudential (2.0% of assets), the UK's
largest insurance company, experienced several rounds of profit taking even
after it announced satisfactory earnings results and its intent to purchase a
British company that represents enhanced shareholder value.
Pharmaceutical stocks in the Healthcare Needs theme also suffered during the
first quarter. The biggest decliner among these stocks was Novartis (2.1% of
assets), which fell after the company revealed a slow down in sales.
LOOKING AHEAD
We remain concerned about prospects for significant corporate earnings growth
in light of the low growth rates forecasted for the global economy.
Additionally, equity market strength in most countries is narrowly concentrated
and momentum investing remains the flavor of the day. The degree of narrowness
of strength in the U.S. equity market has been well documented. Unfortunately,
the same is true, though to a varying extent, in international equity markets.
Value is emerging in certain areas, but ongoing company profit warnings and
subsequent sharp drops in share prices make stock selection treacherous. Given
this backdrop, we seek companies with visible earnings growth momentum even
though the market now demands an ever-increasing price for good earnings news.
We are looking for companies that are willing to take advantage of the
restructuring opportunities that now exist given the low interest-rate
environment around the world. This is specifically true of Europe. There have
been some encouraging signs in Japan, although to date the progress has been
slow.
(1) PERFORMANCE FIGURES ARE BASED ON HISTORICAL RESULTS AND ARE NOT INTENDED
TO BE INDICATIVE OF FUTURE PERFORMANCE. THE INVESTMENT RETURN AND
PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
(2) THE MORGAN STANLEY CAPITAL INTERNATIONAL EAFE INDEX REPRESENTS MAJOR
OVERSEAS STOCK MARKETS. IT IS AN UNMANAGED INDEX, WITH DIVIDENDS
REINVESTED. ONE CANNOT INVEST DIRECTLY IN AN INDEX.
3
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
COMPARISON OF CHANGE IN VALUE OF $1,000,000 INVESTMENT
IN BERGER/BIAM INTERNATIONAL CORE FUND VS.
EAFE INDEX AND COST OF LIVING INDEX
INITIAL INVESTMENT $1,000,000 VALUE OF SHARES
BERGER/BIAM INTERNATIONAL
CORE FUND EAFE INDEX COST OF LIVING INDEX
7/31/89 $1,000,000 $1,000,000 $1,000,000
3/31/90 $1,268,000 $838,777 $1,034,566
<S> <C> <C> <C>
3/31/91 $1,265,000 $862,814 $1,085,209
3/31/92 $1,361,000 $796,278 $1,119,775
3/31/93 $1,561,000 $891,892 $1,154,341
3/31/94 $1,898,000 $1,095,573 $1,183,280
3/31/95 $1,915,000 $1,165,375 $1,217,042
3/31/96 $2,380,000 $1,313,047 $1,251,608
3/31/97 $2,670,812 $1,336,073 $1,286,174
3/31/98 $3,133,718 $1,588,938 $1,303,859
3/31/99 $3,460,916 $1,690,080 $1,326,367
BERGER/BIAM INTERNATIONAL CORE FUND*
AVERAGE ANNUAL TOTAL RETURN
AS OF MARCH 31, 1999
1 YEAR 5.63%
5 YEARS 11.77%
LIFE OF FUND 7/31/89 13.19%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE
PERFORMANCE.
BERGER/BIAM INTERNATIONAL CORE FUND $3,460,916
EAFE INDEX $1,690,080
COST OF LIVING INDEX $1,326,367
</TABLE>
* PERFORMANCE FIGURES ARE HISTORICAL AND DO NOT REPRESENT FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL VALUE WILL VARY, AND YOU MAY HAVE A LOSS WHEN
YOU SELL SHARES. PERFORMANCE FIGURES ARE HISTORICAL AND, IN PART, REFLECT THE
PERFORMANCE OF A POOL OF ASSETS ADVISED BY BIAM (BANK OF IRELAND ASSET
MANAGEMENT) FOR PERIODS BEFORE THE FUND COMMENCED INVESTMENT OPERATIONS ON
OCTOBER 11, 1996, ADJUSTED TO REFLECT ANY INCREASED EXPENSES ASSOCIATED WITH
OPERATING THE FUND. THE ASSET POOL WAS NOT REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION AND THEREFORE WAS NOT SUBJECT TO THE INVESTMENT
RESTRICTIONS IMPOSED BY LAW ON REGISTERED MUTUAL FUNDS. IF THE POOL HAD BEEN
REGISTERED, ITS PERFORMANCE MIGHT HAVE BEEN ADVERSELY AFFECTED.
4
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
ASSETS
Investment in the Berger/BIAM International
Portfolio ("Portfolio"), at value $ 184,035,026
Receivable from fund shares sold 71,709
- -------------------------------------------------------------------
Total Assets 184,106,735
- -------------------------------------------------------------------
LIABILITIES
Payables
From Fund shares redeemed 51,794
Accrued administrative service fees 10,827
- -------------------------------------------------------------------
Total Liabilities 62,621
- -------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 184,044,114
- -------------------------------------------------------------------
- -------------------------------------------------------------------
Capital Shares
Authorized (par value $.01) Unlimited
- -------------------------------------------------------------------
- -------------------------------------------------------------------
Shares outstanding
14,443,224
- -------------------------------------------------------------------
- -------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE
$ 12.74
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- ---------------------------------------------------------------------
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO:
Dividends $ 1,061,789
Interest 104,430
Foreign withholding taxes (118,683)
Portfolio expenses (net of earnings credits and
fee waivers totaling $20,613) (858,468)
- ---------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 189,068
- ---------------------------------------------------------------------
EXPENSES:
Administrative services fee 60,951
- ---------------------------------------------------------------------
Net Expenses 60,951
- ---------------------------------------------------------------------
Net Investment Income (Loss) 128,117
- ---------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
ALLOCATED FROM PORTFOLIO:
Net realized gain (loss) on securities and foreign
currency transactions (5,842,526)
Net change in unrealized appreciation
(depreciation) on securities and foreign currency
transactions 41,449,115
- ---------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions
Allocated from Portfolio 35,606,589
- ---------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 35,734,706
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- ------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 128,117 $ 4,969,731
Net realized gain (loss) on securities
and foreign currency transactions
allocated from the Portfolio (5,842,526) (3,975,554)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions allocated
from the Portfolio 41,449,115 (13,623,073)
- ------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 35,734,706 (12,628,896)
- ------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income (4,788,863) (733,103)
In excess of net realized gains on
investments -- (796,911)
- ------------------------------------------------------------------------------------
Net Decrease in Net Assets from
Dividends and Distributions to
Shareholders (4,788,863) (1,530,014)
- ------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 9,206,115 84,064,151
Net asset value of shares issued in
reinvestment of dividends and
distributions 4,568,744 1,271,755
Payments for shares redeemed (14,594,533) (14,435,770)
- ------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Derived from Fund Share Transactions (819,674) 70,900,136
- ------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 30,126,169 56,741,226
- ------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 153,917,945 97,176,719
- ------------------------------------------------------------------------------------
End of period $ 184,044,114 $ 153,917,945
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 161,505,316 $ 162,324,990
Undistributed net investment income
(loss) 1,590,301 6,251,047
Distributions in excess of net realized
gain from investments and foreign
currency transactions (11,468,871) (5,626,345)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions 32,417,368 (9,031,747)
- ------------------------------------------------------------------------------------
Total $ 184,044,114 $ 153,917,945
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
Shares sold 760,294 7,326,169
Shares issued to shareholders in
reinvestment of dividends and
distributions 372,351 118,050
Shares repurchased (1,206,346) (1,252,878)
- ------------------------------------------------------------------------------------
Net Increase (Decrease) in Shares (73,701) 6,191,341
- ------------------------------------------------------------------------------------
Shares outstanding, beginning of period 14,516,925 8,325,584
- ------------------------------------------------------------------------------------
Shares outstanding, end of period 14,443,224 14,516,925
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1999
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Berger/BIAM International CORE Fund (the "Fund") is a series of the
Berger/ BIAM Worldwide Funds Trust (the "Trust"), a Delaware business trust,
organized on May 31, 1996. The Trust is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Trust
is authorized to issue an unlimited number of shares of beneficial interest in
series or portfolios. Currently, the series comprising the Fund, Berger/BIAM
International Fund and International Equity Fund, are the only series
established under the Trust, although others may be added in the future. The
Trust is also authorized to establish multiple classes of shares representing
differing interests in an existing or new series. The Fund commenced investment
operations on October 11, 1996 ("Commencement of Investment Operations").
The investment objective of the Fund is long-term capital appreciation. The
Fund will invest all of its investable assets in the Berger/BIAM International
Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide Portfolios Trust.
The value of such investment reflects the Fund's proportionate interest in the
net assets of the Portfolio (86% at March 31, 1999). The Portfolio is an
open-end management investment company and has the same investment objective and
policies as the Fund. The performance of the Fund will be derived from the
investment performance of the Portfolio. The financial statements of the
Portfolio, including the schedule of investments, are included elsewhere in this
report and should be read in conjunction with the Fund's financial statements.
All costs in organizing the Trust were borne by BBOI Worldwide LLC, the advisor
of the Portfolio (the "Advisor"). The Advisor has delegated the daily investment
management of the Portfolio to Bank of Ireland Asset Management (U.S.) Limited
("BIAM" or the "Sub-Advisor"), which owns 50% of the Advisor. Berger Associates,
Inc. ("Berger") also owns 50% of the Advisor.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Since the Fund will invest all of its investable assets in the Portfolio, the
value of the Fund's invested assets will be equal to the value of its beneficial
interest in the Portfolio. Valuation of securities by the Portfolio is discussed
in Note 1 of the Portfolio's Notes to Financial Statements which accompany these
Financial Statements for the Fund.
7
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
CALCULATION OF NET ASSET VALUE
The per share calculation of net asset value is determined by dividing the
total value of the Fund's assets, less liabilities, by the total number of
shares outstanding.
INCOME AND EXPENSES
As an investor in the Portfolio, the Fund is allocated its pro rata share of
the aggregate investment income, realized and unrealized gains or losses and
annual operating expenses (including the investment advisory fee, custodian
fees, independent accountants' fees, record keeping and pricing agent fees) of
the Portfolio. Income, realized and unrealized gains or losses and expenses are
allocated on the day incurred in proportion to the prior day's relative net
assets of the Fund compared to the 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.
FEDERAL INCOME TAX STATUS
Dividends paid by the Fund from net investment income and distributions of
net realized short-term capital gains are, for federal income tax purposes,
taxable as ordinary income to shareholders.
The Fund distributes net realized capital gains, if any, to its shareholders
at least annually, if not offset by capital loss carryovers. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to the differing treatments of
net operating losses, foreign currency and tax allocations. Accordingly, these
permanent differences in the character of income and distributions between
financial statements and tax basis will be reclassified to paid-in-capital.
At March 31, 1999, the Fund had a capital loss carryover in the amount of
$38,956, expiring on September 30, 2006, which may be used to offset future
realized capital gains for federal income tax purposes.
The Fund incurred and elected to defer post-October 31 net capital and
currency losses totalling $5,625,304, to the year ended September 30, 1999.
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
8
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
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 record keeping 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 communications 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. Berger has voluntarily waived such sub-administration
fee from the Commencement of Investment Operations through March 31, 1999.
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
recordkeeping and pricing services to the Fund, including calculating the net
asset value of the Fund, and to perform certain accounting and recordkeeping
functions that it requires. In addition, IFTC has been appointed to serve as the
Fund's custodian, transfer agent and dividend disbursing agent.
Certain officers and trustees of the Trust are officers and directors of
Berger, the Advisor or BIAM. Trustees who are not affiliated with the
Portfolio's Advisor or Sub-Advisor are compensated for their services according
to a fee schedule, allocated among the Berger Funds which consists of the Berger
New Generation Fund, Berger Select Fund, Berger Small Company Growth Fund,
Berger Small Cap Value Fund, Berger Mid Cap Growth Fund, Berger Mid Cap Value
Fund, Berger One Hundred Fund, Berger Growth and Income Fund and Berger Balanced
Fund and the Portfolio, which includes an annual fee component and a per meeting
component. Such fees are allocated directly to the Portfolio and, therefore,
indirectly to the Fund.
9
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS PRESENTED
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD FROM
MARCH 31, 1999 YEAR ENDED OCTOBER 11, 1996(1) TO
(UNAUDITED) SEPTEMBER 30, 1998 SEPTEMBER 30, 1997
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, Beginning of
Period $ 10.60 $ 11.67 $ 10.00
- ------------------------------------------------------------------------------------------------------------
From Investment Operations
Net investment income (loss) 0.13 0.43(2) 0.08
Net realized and unrealized gains
(losses) from investments and
foreign currency transactions 2.35 (1.34)(2) 1.59
- ------------------------------------------------------------------------------------------------------------
Total from investment
operations 2.48 (0.91) 1.67
- ------------------------------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment
income) (0.34) (0.08) --
Distributions (from capital
gains) -- (0.08) --
- ------------------------------------------------------------------------------------------------------------
Total dividends and
distributions (0.34) (0.16) --
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period $ 12.74 $ 10.60 $ 11.67
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Total Return (3) 23.47% (7.79)% 16.70%
- ------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data:
Net assets, end of period (in
thousands) $ 184,044 $ 153,918 $ 97,177
Net expense ratio to average net
assets (4)(5) 1.07%(6) 1.08% 1.10%(6)
Ratio of net income (loss) to
average net assets 0.15%(6) 3.44% 1.62%(6)
Gross expense ratio to average
net assets (5) 1.08%(6) 1.12% 1.20%(6)
</TABLE>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. RESTATED.
3. TOTAL RETURN NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE FULL YEAR.
4. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED BY THE
ADVISOR.
5. REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE OF THE
PORTFOLIO'S EXPENSES.
6. ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
BERGER/BIAM
INTERNATIONAL PORTFOLIO
SEMI - ANNUAL REPORT
The following pages should be read in conjunction
with the Berger/BIAM International CORE Fund
Semi - Annual Report.
11
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (UNAUDITED)
MARCH 31, 1999
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - 96.75%
AUSTRALIA - 5.15%
1,800 Brambles Industries Business & Industrial Services $ 45,928
206,400 National Australia Bank Ltd. Commercial Banks & Other Banks 3,764,149
486,306 News Corp., Ltd. Media 3,613,161
419,245 Telstra Corp., Ltd. Utilities 2,203,015
185,970 Westpac Banking Corp., Ltd. Commercial Banks & Other Banks 1,361,360
-------------
10,987,613
-------------
DENMARK - 0.49%
10,600 Tele Danmark A.S. Utilities 1,048,576
-------------
FRANCE - 8.16%
18,626 Alcatel Alsthom+ Computer/Commercial/Office Equipment 2,140,874
33,002 AXA-UAP Insurance - Multi/Property/ Casualty 4,373,817
30,575 Michelin Class B Automobile Components 1,371,069
31,582 Total S.A. Class B Oil 3,889,084
22,901 Vivendi Diversified Holding Companies 5,632,754
-------------
17,407,598
-------------
GERMANY - 8.83%
2,808 Bayerische Motoren Werke (BMW) A.G. Automobiles 1,839,534
402 Bayerische Motoren Werke (BMW) A.G.(1) Automobiles 256,410
31,940 Bayerische Vereinsbank A.G. Commercial Banks & Other Banks 1,909,706
61,210 Hoechst A.G. Chemicals 2,652,344
67,600 Mannesmann A.G. Machinery & Engineering Services 8,630,848
44,851 Veba A.G. Diversified Industrials 2,357,345
2,177 Viag A.G. Utilities 1,200,373
-------------
18,846,560
-------------
ITALY - 3.42%
155,256 ENI S.p.A. Oil 988,604
594,757 Telecom Italia S.p.A. Utilities 6,316,212
-------------
7,304,816
-------------
</TABLE>
12
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
JAPAN (15.11%)
186,000 Canon, Inc.+ Computer/Commercial/Office Equipment $ 4,590,658
46,000 Fuji Photo Film+ Photo Equipment & Supplies 1,735,922
55,000 Honda Motor Co., Ltd.+ Automobiles 2,478,625
117,000 Kao Corp.+ Food & Grocery Products 2,577,222
6,500 Keyence Corp.+ Electronics & Instruments 969,127
48,000 Murata Manufacturing Co., Ltd.+ Electronics & Instruments 2,547,277
73 NTT Mobile Communication Network, Inc.+ Utilities 3,597,270
14,000 Rohm Co., Ltd.+ Electronics & Instruments 1,668,702
88,000 Shiseido Co., Ltd.+ Health & Personal Care 1,215,684
54,400 Sony Corp.+ Household Durables & Appliances 5,017,731
151,000 Takeda Chemical Industries Health & Personal Care 5,838,268
-------------
32,236,486
-------------
MALAYSIA - 0.10%
103,000 Hume Industries - Malaysia Bhd Construction & Building Materials 60,716
219,400 Sime Darby Bhd Diversified Holding Companies 159,817
-------------
220,533
-------------
NETHERLANDS - 9.01%
88,530 ABN Amro Holdings N.V. Commercial Banks & Other Banks 1,844,037
71,000 Elsevier N.V. Media 1,057,449
128,617 ING Groep N.V. Insurance - Multi/Property/ Casualty 7,086,245
73,320 Koninklijke Ahold N.V. Retail Trade 2,809,136
60,015 Koninklijke KPN N.V. Utilities 2,386,818
42,540 Royal Dutch Petroleum Co. Oil 2,261,131
58,840 TNT Post Group N.V. Utilities 1,771,735
-------------
19,216,551
-------------
NEW ZEALAND - 0.15%
66,472 Telecom Corp. of New Zealand Utilities 324,966
-------------
</TABLE>
13
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
PORTUGAL - 0.35%
37,950 Electricidade de Portugal S.A. Utilities $ 748,703
-------------
SINGAPORE - 1.39%
250,435 Development Bank of Singapore, Ltd. Commercial Banks & Other Banks 1,899,651
96,000 Singapore Press Holdings, Ltd. Media 1,061,725
-------------
2,961,376
-------------
SPAIN - 2.03%
123,311 Banco de Santander S.A. Commercial Banks & Other Banks 2,528,584
42,258 Telefonica S.A. Utilities 1,791,896
-------------
4,320,480
-------------
SWEDEN - 0.21%
18,800 Telefonaktiebolaget LM Ericsson Utilities 456,460
-------------
SWITZERLAND - 11.33%
1,793 Alusuisse Lonza Group A.G. Fabricated Metal Products 1,971,900
2,544 Nestle S.A.+ Food & Grocery Products 4,621,236
2,815 Novartis A.G. Health & Personal Care 4,565,841
346 Roche Holding A.G. Health & Personal Care 4,218,942
2,237 Schweizerische Rueckversicherungs Insurance - Multi/Property/ Casualty 4,949,115
12,207 Union Bank of Switzerland A.G. Commercial Banks & Other Banks 3,834,530
-------------
24,161,564
-------------
THAILAND - 0.35%
359,800 Bangkok Bank PLC Commercial Banks & Other Banks 737,118
-------------
UNITED KINGDOM - 30.67%
290,920 Allied Zurich AG Insurance Life & Agents/Brokers 3,915,841
171,550 Barclays Bank PLC Commercial Banks & Other Banks 4,925,152
290,920 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 2,419,849
460,564 BTR Siebe PLC Machinery & Engineering Services 2,028,687
272,430 Cable & Wireless PLC Utilities 3,399,076
</TABLE>
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY MARKET VALUE
- ----------- --------------------------------------------- --------------------------------------------- -------------
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
151,900 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing $ 2,201,316
311,650 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 3,496,563
170,850 Glaxo Welcome PLC Health & Personal Care 5,709,253
211,550 Granada Group PLC Entertainment/Leisure/Toys 4,279,783
191,411 Kingfisher PLC Retail Trade 2,409,810
353,800 Ladbroke Group PLC Entertainment/Leisure/Toys 1,615,447
351,960 Lloyds TSB Group PLC Commercial Banks & Other Banks 5,316,158
34,167 National Power PLC Utilities 262,718
88,420 National Westminster Bank PLC Commercial Banks & Other Banks 2,035,371
324,340 Prudential Corp. PLC Insurance Life & Agents/Brokers 4,221,901
31,530 Railtrack Group PLC Road & Rail 722,750
271,450 Safeway PLC Retail Trade 1,060,031
517,430 Shell Transport & Trading Co. PLC Oil 3,476,099
185,300 TI Group PLC Machinery & Engineering Services 1,203,028
354,700 Vodafone Group PLC Utilities 6,581,146
87,580 Zeneca Group PLC Health & Personal Care 4,133,756
-------------
65,413,735
-------------
TOTAL COMMON STOCK (Cost $167,552,065) 206,393,135
-------------
REPURCHASE AGREEMENT - 1.28%
$ 2,740,000 State Street Repurchase Agreement, 4.82% dated March 31, 1999 to be repurchased at
$2,740,367 on April 1, 1999, collateralized by U.S. Treasury Bond - October 31, 2000, with a
value of $2,799,274
2,740,000
-------------
TOTAL REPURCHASE AGREEMENT (Cost $2,740,000) 2,740,000
-------------
Total Investments (cost $170,292,065) -- 98.03% 209,133,135
Other assets less liabilities - 1.97% 4,196,259
-------------
Net Assets - 100.00% $213,329,394
-------------
-------------
</TABLE>
+ SECURITY IS DESIGNATED AS COLLATERAL FOR FORWARD FOREIGN CURRENCY
CONTRACTS.
(1) SHARES HAVE REDUCED DIVIDEND RIGHTS OF ORDINARY SHARES.
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<C> <S>
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
</TABLE>
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON APPRECIATION
CURRENCY AMOUNT DATE MARCH 31, 1999 (DEPRECIATION)
------------------------- ----------- -------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Buy Euro 130,000 4/1/99 $ 140,303 $ 904
Sell Japanese Yen 283,224,000 4/20/99 2,537,577 145,852
Sell Japanese Yen 290,343,000 4/20/99 2,595,755 143,914
Sell Japanese Yen 323,224,000 5/18/99 2,781,379 42,582
Sell Japanese Yen 286,865,000 5/24/99 2,552,225 119,772
Sell Japanese Yen 231,039,000 5/28/99 1,924,443 (35,572)
Sell Japanese Yen 263,791,000 6/9/99 2,169,691 (71,677)
Sell Japanese Yen 499,957,000 6/15/99 4,188,437 (62,956)
Sell Japanese Yen 329,360,000 7/2/99 2,781,287 (25,814)
Sell Swiss Franc 6,128,000 4/14/99 4,411,648 267,701
--------------- ---------------
$ 26,082,745 $ 524,706
--------------- ---------------
--------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
ASSETS
Investments, at cost $ 170,292,065
- -------------------------------------------------------------------
Investments, at value $ 209,133,135
Cash 15,033
Foreign cash (cost $2,459,453) 2,428,979
Receivables
Investment securities sold 1,054,559
Contributions 101,136
Dividends 869,945
Interest 367
Forward currency contracts 524,706
Due from Management Company 2,865
- -------------------------------------------------------------------
Total Assets 214,130,725
- -------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 186,443
Withdrawals 421,058
Accrued investment advisory fees 162,091
Accrued custodian fees 9,084
Accrued audit fees 22,655
- -------------------------------------------------------------------
Total Liabilities 801,331
- -------------------------------------------------------------------
NET ASSETS $ 213,329,394
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
MARCH 31, 1999
(UNAUDITED)
<S> <C>
- -------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends $ 1,235,313
Interest 120,754
Foreign tax withheld (137,853)
- -------------------------------------------------------------------
Total Income 1,218,214
- -------------------------------------------------------------------
Expenses
Investment advisory fees 909,451
Accounting fees 22,796
Custodian fees 44,958
Registration fees 1,160
Audit fees 23,406
Legal fees 944
Trustees' fees and expenses 8,733
Reports to shareholders 2,642
Other expenses 4,327
- -------------------------------------------------------------------
Gross Expenses 1,018,417
Less fees waived by the Advisor (4,399)
Less earnings credits (19,366)
- -------------------------------------------------------------------
Net Expenses 994,652
- -------------------------------------------------------------------
Net investment income (loss) 223,562
- -------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and
foreign currency transactions (6,736,877)
Net change in unrealized appreciation
(depreciation) on securities and foreign
currency transactions 48,005,403
- -------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions 41,268,526
- -------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations $ 41,492,088
- -------------------------------------------------------------------
- -------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
MARCH 31, 1999 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
OPERATIONS:
Net investment income (loss) $ 223,562 $ 5,874,066
Net realized gain (loss) on securities
and foreign currency transactions (6,736,877) (4,726,150)
Net change in unrealized appreciation
(depreciation) on securities and
foreign currency transactions 48,005,403 (15,953,893)
- -------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations 41,492,088 (14,805,977)
- -------------------------------------------------------------------------------
FROM TRANSACTIONS IN INVESTORS'
BENEFICIAL INTEREST
Contributions 41,101,022 103,931,701
Withdrawals (46,859,516) (33,746,924)
- -------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets
From Investors' Transactions (5,758,494) 70,184,777
- -------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets 35,733,594 55,378,800
- -------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
- -------------------------------------------------------------------------------
End of period $ 213,329,394 $ 177,595,800
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 177,141,295 $ 182,899,789
Undistributed net investment income
(loss) 8,887,339 8,663,777
Undistributed net realized gain (loss)
from investments (11,463,310) (4,726,433)
Net unrealized appreciation
(depreciation) of securities and
foreign currency transactions 38,764,070 (9,241,333)
- -------------------------------------------------------------------------------
Total $ 213,329,394 $ 177,595,800
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in thousands) $ 213,329 $ 177,596
Net expense ratio to average net
assets(2) 1.00%(1) 1.00%
Ratio of net income (loss) to average
net assets 0.22%(1) 3.45%
Gross expense ratio to average net
assets 1.01%(1) 1.04%
Portfolio turnover rate (3) 7% 17%
</TABLE>
1. ANNUALIZED.
2. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED BY THE
ADVISOR.
3. NOT ANNUALIZED FOR PERIODS OF LESS THAN ONE FULL YEAR.
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1999
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 borne by BBOI Worldwide
LLC ("BBOI"), the investment advisor of the Portfolio. The Portfolio commenced
investment operations on October 11, 1996, ("Commencement of Investment
Operations") with the sale of 448,161 shares of beneficial interest to the
International Equity Fund, formerly known as the Berger/BIAM International
Institutional Fund, in exchange for portfolio assets with an aggregate value of
$4,481,609, which were transferred from the Pooled Trust of Citizens Bank of New
Hampshire ("Citizens NH") to the International Equity Fund and, in turn,
transferred to the Portfolio. Such transaction was a tax-free exchange. Citizens
NH was 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. Citizens NH sold their 23.5% interest on September
4, 1998. Currently there are three investors in the Portfolio, the Berger/ BIAM
International Fund, the International Equity Fund and the Berger/BIAM
International CORE Fund.
The investment objective of the Portfolio is long-term capital appreciation.
The Portfolio invests primarily in common stocks of well-established companies
located outside the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
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. Eastern Standard 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
20
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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. Short-term obligations maturing within 60 days are valued at
amortized cost, which approximates market value. Securities and assets for which
quotations are not readily available are valued at fair values determined in
good faith pursuant to consistently applied procedures established by the
trustees of the Portfolio.
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 that
materially affect the value of such securities, the securities will be valued at
their fair market value as determined in good faith pursuant to consistently
applied procedures established by the trustees.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on trade date. Gains and losses are
computed on the identified cost basis for both financial statement and federal
income tax purposes for all securities. Dividend income is recorded on the
ex-dividend date, except if the ex-dividend date has passed, certain dividends
from foreign securities are recorded as soon as the Portfolio is informed of the
ex-dividend date. Dividend income is recorded net of foreign taxes withheld.
Interest income is recorded on the accrual basis and includes amortization of
discounts and premiums.
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<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results may differ from those estimates.
FORWARD CURRENCY CONTRACTS
The Portfolio may enter into forward foreign currency exchange contracts for
the purpose of hedging the Portfolio against exposure to market value
fluctuations in foreign currencies. The use of such instruments may involve
risks such as the possibility of illiquid markets or imperfect correlation
between the value of the contracts and the underlying securities, or that the
counterparty will fail to perform its obligations. Forward currency contracts
and foreign denominated assets may involve more risks than domestic
transactions, including currency risk, political and economic risk, regulatory
risk and market risk. Risks may arise from the potential inability of a
counterparty to meet the terms of a contract and from unanticipated movements in
the value of foreign currencies relative to the U.S. dollar. The forward foreign
currency exchange contracts are adjusted to the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized gains or losses until the contract settlement date.
Realized gains or losses on these securities are included in Net Realized Gain
(Loss) on Investments and Foreign Currency Transactions in the Statement of
Operations.
2. AGREEMENTS
BBOI renders investment advisory services to the Portfolio pursuant to an
agreement that provides for an investment advisory fee to be paid to BBOI at the
annual rate of .90% of the Portfolio's average daily net assets. BBOI has agreed
to waive its advisory fee to the extent that the Portfolio's normal operating
expenses in any fiscal year (including the investment advisory fee and custodian
fees, but excluding brokerage commissions, interest, taxes and extraordinary
expenses) exceed 1.00% of the Portfolio's average daily net assets for that
fiscal year. BBOI is also responsible for providing for or arranging for all
managerial and administrative services necessary for the operations of the
Portfolio. BBOI has delegated the daily investment management of the Portfolio
to BIAM. For such services, BBOI pays BIAM a sub-advisory fee equal to .45% of
the average daily net assets of the Portfolio. Such sub-advisory fee has been
voluntarily waived by BIAM from the Commencement of Investment Operations
through March 31, 1999, except for an amount payable on the Citizens NH
converted assets (see note 1).
Investors Fiduciary Trust Company ("IFTC") has been appointed to provide
record keeping and pricing services to the Portfolio, including calculating the
net asset value
22
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
of the Portfolio, and to perform certain accounting and record keeping functions
required by the Portfolio. In addition, IFTC has been appointed to serve as the
Portfolio's custodian and transfer agent. For custodian, record keeping 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, record keeping 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.
Certain officers and trustees of the Trust are officers and directors of
Berger, BBOI or BIAM. Trustees who are not affiliated with Berger, BBOI or BIAM
are compensated for their services according to a fee schedule, allocated among
the Berger Funds (which consists of the New Generation Fund, Select Fund, Small
Company Growth Fund, Small Cap Value Fund, Mid Cap Growth Fund, Mid Cap Value
Fund, One Hundred Fund, Growth & Income Fund and Balanced Fund) and the
Portfolio, which includes an annual fee component and a per meeting component.
The Portfolio's portion of the trustees' fees and expenses for the fiscal six
months ended March 31, 1999, totaled $17,799.
The Portfolio adopted a Trustee Fee Deferral Plan (the "Plan") which allows
the Trustees to defer the receipt of all or a portion of the Trustee fees
payable on or after January 16, 1996. The deferred fees remain in the Funds and
are invested in various Berger funds until distribution in accordance with the
Plan.
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales of investment securities (excluding short-term
securities) during the six months ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
Purchase of Sales of
Investment Investment
Securities Securities
- ------------------ ------------------
<S> <C>
$ 14,620,069 $ 19,393,592
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the six months ended March 31, 1999.
23
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At March 31, 1999, the federal tax cost of securities and 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>
Gross Gross
Federal Tax Unrealized Unrealized
Cost Appreciation Depreciation Net
- -------------- ----------- ----------- -----------
<S> <C> <C> <C>
$170,338,191 $47,882,631 ($9,087,687) $38,794,944
</TABLE>
REPURCHASE AGREEMENTS
Repurchase agreements held by the Fund are fully collateralized by U.S.
Treasury securities and such collateral is in the possession of the Fund's
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Fund has
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
4. LINE OF CREDIT
The Portfolio, along with the Berger New Generation Fund, Berger Select Fund,
Berger Small Company Growth Fund, Berger Small Cap Value Fund, Berger Mid Cap
Growth Fund, Berger One Hundred Fund, Berger Growth and Income Fund, and Berger
Balanced Fund (the "Funds"), are party to an ongoing agreement with certain
banks that allows the Funds and the Portfolio, collectively, to borrow up to
$150 million, subject to certain conditions, for temporary or emergency
purposes. Interest on any borrowings, if any, is charged to the specific Fund or
Portfolio executing the borrowing at the Federal Funds Rate plus 45 basis
points. In addition, the unsecured line of credit requires a quarterly payment
of a commitment fee based on the average daily unused portion of the line of
credit. At March 31, 1999, the outstanding balance on the line of credit was $0.
24
<PAGE>
[ART]
B E R G E R
Berger Funds
210 University Blvd.
Denver, CO 80206
CORESAR
