<PAGE>
BERGER FUNDS
ANNUAL REPORT
[GRAPHIC]
September 30, 1999
BERGER INFORMATION TECHNOLOGY FUND
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>
INFORMATION ON YEAR-END DISTRIBUTIONS
To help you with tax planning, we provide you with the preliminary capital gains
amounts our funds may distribute near year-end. Estimates are now available on
our Web site at bergerfunds.com or by calling Investor Services at (800)
551-5849.
Please keep in mind that these amounts are not final and may be revised before
the December 27 record date. As we approach the record date, you may want to
check back with us for updated numbers.
And, please remember that a capital gains distribution does not change the total
value of your account so long as the distribution is reinvested in additional
fund shares. By reinvesting distributions rather than taking them in cash, you
put the power of compounding to work for you. Over time, this may increase the
value of your investment considerably.
Below are several important dates you'll want to remember:
DECEMBER 27 -- Record date. All shareholders of record as of close of business
will receive the distribution.
DECEMBER 28 -- Ex-dividend and reinvestment date. On this date the fund's share
price will drop by an amount equal to the capital gains distribution (plus or
minus any share price fluctuation that may normally occur that day.) Investors
who chose to have their distributions reinvested will receive additional shares
of the fund.
DECEMBER 30 -- Payable date. Checks are issued to investors who elected to
receive their distributions in cash.
Berger Distributors LLC ~
Member NASD (11/99)
<PAGE>
Contents
2 A Message for Berger Investors
BERGER FUNDS
4 Berger Information Technology Fund
8 Berger New Generation Fund
13 Berger Select Fund
16 Berger Small Company Growth Fund
20 Berger Small Cap Value Fund
24 Berger Mid Cap Growth Fund
28 Berger Mid Cap Value Fund
32 Berger 100 Fund
36 Berger/BIAM International Fund
38 Berger Growth and Income Fund
42 Berger Balanced Fund
46 STATEMENTS OF ASSETS AND LIABILITIES
48 STATEMENTS OF OPERATIONS
50 STATEMENTS OF CHANGES IN NET ASSETS
54 BERGER/BIAM INTERNATIONAL FUND FINANCIAL STATEMENTS
56 BERGER FUNDS NOTES TO FINANCIAL STATEMENTS
62 BERGER/BIAM INTERNATIONAL PORTFOLIO FINANCIAL STATEMENTS
(TO BE READ IN CONJUNCTION WITH THE BERGER/BIAM
INTERNATIONAL FUND)
67 BERGER/BIAM INTERNATIONAL PORTFOLIO NOTES TO FINANCIAL
STATEMENTS
70 FINANCIAL HIGHLIGHTS
77 REPORT OF INDEPENDENT ACCOUNTANTS
[LOGO]
To obtain a prospectus for any of the Berger Funds, which contains more complete
information, including management fees, charges and expenses, call (800)
333-1001.
Please read it carefully before you invest. bergerfunds.com
<PAGE>
Berger Funds September 30, 1999 Annual Report
2
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A Message
for Berger Investors
IT'S BEEN SEVERAL MONTHS SINCE THE MANAGEMENT CHANGES AT BERGER, AND I'D LIKE to
give you a report on our progress. Following is a report on our growth
funds--those most directly affected by the changes. I've also included some good
news about fees and a few thoughts on market volatility.
Each Berger Fund shares the same goal--to provide consistently competitive
performance over the long term--performance that will place it in the top
quarter of its peer groups despite short-term market fluctuations that may favor
one investment style over another.
That's a tall order. Our talented, committed investment team has taken
important initial steps toward establishing the kind of long-term competitive
records that investors deserve.(1) I'm pleased with our progress after these
early months.
BUILDING A STRONG FOUNDATION
At the top of our priority list has been the Berger 100 Fund. Several years
of sub-par performance had left investors feeling frustrated. I'm not going
to offer a glowing description of how the fund has done a complete
turnaround. I am going to tell you the fund is doing better, and we will
strive to continue this trend. Co-managers John Jares and Tino Sellitto, who
took over in May, have made steady progress. The fund has gained significant
ground among its peers and has pulled ahead of the S&P 500 Index.(2) It's a
promising start on strengthening the fund's track record and restoring
confidence.
An unsung hero is the Berger Growth and Income Fund. It's never been a
headline grabber, but the performance of this fund has earned it an Overall
Morningstar Rating-TM- of 4 stars among 3,210 domestic equity funds as of
September 30, 1999.(3) Manager Tino Sellitto, who took over last November,
has guided Growth and Income to the upper echelon of its peer group this
year, well ahead of the S&P 500.(2)
COMING OF AGE
Berger Balanced Fund is a youngster compared with the Berger Growth and Income
Fund, but now beginning its third year, manager John Jares has established the
foundation for the kind of long-term record we are committed to building for
every Berger Fund. An excellent performer last year, the Balanced Fund remains
at the top according to Lipper, ranking number 1 of 421 balanced funds for the
one-year period ended September 30, 1999.(4)
Berger New Generation Fund is also coming of age. It has earned the highest
Overall Morningstar Rating-TM- of 5 stars among 3,210 domestic equity funds
as of September 30, 1999.(3) Manager Mark Sunderhuse, who took over in
February, has kept the fund on a winning track, outdistancing the S&P 500(2)
as well as most competitors.
Amy Selner continues to build an impressive record with the Berger Mid Cap
Growth Fund, and since taking over Berger Small Company Growth Fund last
November, she has enhanced an already solid record.
Nearing the end of its second year, Berger Mid Cap Growth Fund continues to be
one of the most solid performers in its peer group and is well ahead of the S&P
Mid Cap 400 Index.(5) Small-company stocks appear to have begun emerging from a
prolonged bear market, and Berger Small Company Growth Fund remains very
competitive in its peer group and out in front of the Russell 2000 Index.(6)
The "Best of Berger" is represented in the Berger Select Fund. Each of our four
growth managers contributes a limited number of what he or she considers to be
their best current investment opportunities to our only non-diversified or
focused fund. John, Tino, Mark and Amy took over in May and have adopted a
strategy that has resulted in significantly lower turnover, yet performance has
remained strong. The fund is far outpacing the S&P 500(2) and continues to make
a good showing among its peers.
<PAGE>
Annual Report September 30, 1999 Berger Funds
3
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MANAGEMENT FEES REDUCED
Another positive change for Berger investors is a reduction in the management
and administrative fees on all domestic Berger Funds, effective October 1, 1999.
For our small-company-oriented funds the old flat fee of .90% per year has been
changed to begin at .85% with new breakpoints when the funds reach $500 million
and $1 billion in assets. Funds that have carried a flat fee of .75% will also
have breakpoints at $500 million and $1 billion in assets. In addition, the .01%
administrative fee has been eliminated on all funds.
NERVOUS MARKET CALLS FOR COOL HEAD
A bout of market jitters can leave many investors feeling a bit nervous. But at
Berger we believe that the best advice can be found in a few time-proven points:
- - INVEST FOR THE LONG TERM--Successful investors are patient. Stocks may tend
to be more volatile over the short term, but over time, stocks have
outperformed other types of investments. Historically, the stock market
spends more time going up than down.
- - STAND FIRM--It's just human nature--market volatility translates to nervous
investors. But it's important to avoid making rash decisions rooted in
emotion rather than fact. It isn't always easy, but to reach your financial
goals, we believe it's best to resist the temptation to make short-term
moves.
- - INVEST REGULARLY--Dollar cost averaging--investing at regular intervals can
help you put volatility to work for you. During market dips you pay less
for your fund shares, which can help to lower the average price you pay for
shares over time.(7)
Meeting Your Expectations Our goal of achieving consistently competitive
performance is matched by a second, equally important goal of meeting your
service needs. You can let me know what's on your mind by emailing me at
[email protected]. I want your investment experience with us to be
successful.
As always, we value the trust you have placed in us. In the months to come, I
will keep you updated on our progress. We look forward to helping you reach
your investment goals through the year 2000 and beyond.
Sincerely,
/s/ Jack R. Thompson
JACK R. THOMPSON
PRESIDENT
Investment returns and principal value will fluctuate so shares, when redeemed,
may be worth more or less than their original cost. The Berger Funds may invest
in IPO's that may significantly impact performance.
This material must be preceded or accompanied by a prospectus.
Berger Distributors LLC -- Member NASD (11/99)
(1) Past performance does not guarantee future results.
(2) The Standard & Poor's 500 Index is a broad-based measurement of changes in
stock market conditions based on the average performance of 500 widely held
common stocks. The Index is unmanaged, and investors cannot actually make
investments in the Index. All comparisons to the Index are based on
year-to-date performance through 9/30/99.
(3) Morningstar proprietary ratings reflect historical risk-adjusted
performance as of 9/30/99 and are subject to change every month. Ratings
are calculated from the funds' 3-, 5- and 10-year average annual returns
(if applicable) in excess of 90-day Treasury bill returns with appropriate
fee adjust ments and a risk factor that reflects fund performance below
90-day T-bill returns. Berger Growth and Income Fund received 4, 3 and 4
stars among 3,210, 2,010, and 751 domestic equity funds for the 3-, 5- and
10-year periods, respectively. Berger New Generation Fund received a 5-star
rating out of 3,210 domestic equity funds for the three-year period. The
top 10% of the funds in a broad asset class receive 5 stars, the next 22.5%
receive 4 stars, and the next 35% receive 3 stars. Given Berger New
Generation Fund's focus on leading-edge companies and those in rapidly
changing industries, its investments may involve greater risk and price
volatility than those in companies in more stable industries.
(4) Lipper, Inc. rankings and fund performance figures are based on total
return, including reinvestment of dividends and capital gains for the
stated period.
(5) The Standard & Poor's 400 Index represents the market for stocks for
mid-sized U.S. companies. The Index is unmanaged, and investors cannot
actually make investments in the Index. Comparison to the Index is based on
year-to-date performance through 9/30/99.
(6) The Russell 2000 Index represents small cap U.S. stocks. The Index is
unmanaged, and investors cannot actually make investments in the Index.
Comparison to the Index is based on year-to-date performance through
9/30/99.
(7) Dollar-cost averaging does not assure a profit or protect against a loss in
declining markets. You should consider your ability to continue your
purchases through periods of low price levels before investing.
<PAGE>
Berger Funds September 30, 1999 Annual Report
4
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[PHOTO]
BERGER INFORMATION TECHNOLOGY FUND
Ticker Symbol - Investor Shares N/A
- Institutional Shares BINFX
Fund Number - Investor Shares 912
- Institutional Shares 913
PORTFOLIO MANAGER COMMENTARY WILLIAM F. K. SCHAFF
PERFORMANCE
The Berger Information Technology Fund (the "Fund") gained 29.53%(1) (Investor
Shares) and 31.30% (Institutional Shares) for the period from March 1, 1999 to
September 30, 1999. This performance compared very favorably with that of
broader market indices such as the Standard & Poor's (S&P) 500 Index,(2) Russell
2000 Index(3) and Wilshire 5000 Index,(4) which gained 4.38%, 9.94% and 4.56%,
respectively.
Our returns lagged some of the broader technology indices, however, because our
Fund has a heavier weighting in information technology (IT) services, software
and hardware. Among our peer group, the highest returns were earned by funds
that invest in semiconductors, which have been the best performing technology
segment this year. Despite our overweighting in the IT sector, we remain
confident with our portfolio positioning and company exposure. The IT industry
tends to be more defensive and less cyclical than the semiconductor and related
groups.
YEAR IN REVIEW
The best performers among our larger holdings were LSI Logic, Nextel
Communications, Texas Instruments, Siebel Systems and Hewlett-Packard. LSI and
Texas Instruments are benefiting from strong chip demand. Wireless and
networking applications are the strongest demand pulls. An example of this is
Nextel Communications, a strong, independent wireless company that has been the
subject of takeover rumors for some time. Siebel Systems continued to show
strong revenue growth from sales of its leading customer relations management
(CRM) software. Hewlett-Packard's price performance was partly a result of the
spin-off of its test and measurement business. Company management has found ways
of increasing shareholder value over time.
The negative performance of three stocks dragged down Fund performance this
period. Compaq was our biggest disappointment. This leading PC vendor continued
to struggle with change and management uncertainty. Mindspring, a leading
Internet service provider, is facing aggressive pricing competition for its
services. AXENT Technologies is one of many struggling security software
companies. Their business is focused on corporate security, and we believe this
area will rebound in the year 2000.
Portfolio turnover this period was very low--just over 50% annualized. This is
substantially less than many general technology funds and has helped minimize
taxable gains to our shareholders.
LOOKING AHEAD
With the explosive growth in e-commerce and Web-based business models, it is not
surprising that one of the biggest challenges facing most traditional businesses
is finding a way to compete in the "new economy." We believe that one of the
fastest growing areas for IT-related companies will be the ever-increasing use
of IT services and software in traditional businesses. While many projects will
be justified by management on a rate of return analysis, many others will be
undertaken purely for strategic reasons, such as maintaining or increasing the
company's competitive edge. We expect areas of demand to include systems
management software like that offered by BMC Software and Computer Associates.
We also look for a rebound in enterprise resource planning (ERP) and related
vertical applications. ERP is currently led by SAP and Oracle. Vertical
applications, such as supply chain management (SCM) and CRM software, should be
in strong demand. Companies potentially benefiting from this demand include i2
and Siebel Systems.
Another area we see as fast-growing is enterprise applications integration (EAI)
software, which is used to tie in multiple platforms and different applications.
Many recent Initial Public Offerings (IPOs) have been in this area.
We also believe that e-commerce development and services will continue to be
hot. The general category is too broad to discuss here, but some of the winners
should be the leading networking companies such as Cisco, along with e-commerce
vendors such as BEA Systems.
We strongly believe that 2000 will be the year for IT companies. Once free of
the constraints of Y2K budgets, applications and service firms should see a
buildup of backlog and a strong push toward new development projects that
enhance corporate productivity. We are optimistic that IT-related companies will
be the biggest beneficiaries within the broader technology spectrum. We are
still very bullish in our long-term outlook because we believe that IT will
remain one of the fastest growing segments in the North American economy.
1. Past performance does not guarantee future results. 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. The Wilshire 5000 Index measures the performance of all U.S.-headquartered
equity securities with readily available price data. More than 7,000
capitalization weighted security returns are used to adjust the index. One
cannot invest directly in an index.
<PAGE>
Annual Report September 30, 1999 Berger Funds
5
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BERGER INFORMATION TECHNOLOGY FUND
PERFORMANCE OVERVIEW
INVESTOR SHARES
- ----------------
COMPARISON OF CHANGE IN VALUE OF BERGER INFORMATION TECHNOLOGY FUND; INVESTOR
SHARES VS. WILSHIRE 5000 INDEX AND COST OF LIVING INDEX
<TABLE>
<CAPTION>
Berger Information
Technology Fund; Wilshire 5000 Cost of
Investor Shares Index Living Index
<S> <C> <C> <C>
4/8/97 $10,000 $10,000 $10,000
9/30/97 $13,575 $12,293 $10,075
3/31/98 $16,030 $14,157 $10,138
9/30/98 $15,570 $12,698 $10,225
3/31/99 $23,955 $16,013 $10,313
9/30/99 $28,730 $16,123 $10,444
</TABLE>
BERGER INFORMATION TECHNOLOGY FUND;
INVESTOR SHARES*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- --------------------------------------
<S> <C>
1 Year 84.49%
Life of Fund 53.03%
(4/8/97)
</TABLE>
INSTITUTIONAL SHARES
- --------------------
COMPARISON OF CHANGE IN VALUE OF BERGER INFORMATION TECHNOLOGY FUND;
INSTITUTIONAL SHARES VS. WILSHIRE 5000 INDEX AND COST OF LIVING INDEX
<TABLE>
<CAPTION>
Berger Information
Technology Fund; Wilshire 5000 Cost of
Investor Shares Index Living Index
<S> <C> <C> <C>
4/8/97 $250,000 $250,000 $250,000
9/30/97 $339,375 $307,331 $251,875
3/31/98 $400,750 $353,933 $253,437
9/30/98 $389,250 $317,457 $255,625
3/31/99 $598,875 $400,319 $257,813
9/30/99 $728,075 $403,071 $261,094
</TABLE>
BERGER INFORMATION TECHNOLOGY FUND;
INSTITUTIONAL SHARES*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- -----------------------------------------
<S> <C>
1 Year 87.05%
Life of Fund 53.88%
(4/8/97)
</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. Performance data for the Investor Shares include periods prior
to the adoption of class designations on July 2, 1999, and therefore do not
reflect the 0.25% per year 12b-1 fee applicable to the Investor Shares.
<PAGE>
Annual Report September 30, 1999 Berger Funds
6
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BERGER INFORMATION TECHNOLOGY FUND
- -------------------------------------------------------------------------
Schedule of Investments
- -------------------------------------------------------------------------
September 30, 1999
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.33%)
COMMERCIAL - LEASING COMPANIES (0.09%)
1,220 Comdisco, Inc. $ 23,561
- -------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (9.32%)
6,000 Data General Corp.* 126,375
6,800 Dell Computer Corp.* 284,325
1,500 Hewlett-Packard Co. 138,000
4,600 International Business Machines Corp. 558,325
4,795 NCR Corp.* 158,534
11,350 Sun Microsystems, Inc.* 1,055,550
- -------------------------------------------------------------------------
2,321,109
COMPUTER - INTEGRATED SYSTEMS (0.69%)
4,000 Kronos Inc.* 146,750
600 Policy Management Systems Corp.* 18,975
330 Wind River Systems, Inc.* 6,270
- -------------------------------------------------------------------------
171,995
COMPUTER - LOCAL NETWORKS (4.56%)
300 3Com Corp.* 8,625
11,600 Cisco Systems, Inc.* 795,325
1,000 Foundry Networks, Inc.* 126,000
10,000 Novell, Inc.* 206,875
- -------------------------------------------------------------------------
1,136,825
COMPUTER - MAINFRAMES (1.34%)
7,400 Unisys Corp.* 333,925
- -------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (5.92%)
11,000 EMC Corp.* 785,812
8,800 Network Appliance, Inc.* 630,300
1,700 Seagate Technology, Inc.* 52,381
290 Storage Technology Corp.* 5,582
- -------------------------------------------------------------------------
1,474,075
COMPUTER - PERIPHERAL EQUIPMENT (0.46%)
6,000 American Power Conversion Corp.* 114,000
- -------------------------------------------------------------------------
COMPUTER - SERVICES (2.69%)
2,000 Affiliated Computer Services, Inc.
-Class A* 81,250
280 American Management Systems, Inc.* 7,183
4,480 Automatic Data Processing, Inc. 199,920
1,800 Ceridian Corp.* 44,775
200 Computer Horizons Corp.* 2,325
1,570 Computer Sciences Corp.* 110,390
4,255 Electronic Data Systems Corp. 225,249
- -------------------------------------------------------------------------
671,092
COMPUTER SOFTWARE - DESKTOP (1.47%)
2,700 Microsoft Corp.* 244,518
1,100 Red Hat, Inc.* 105,600
475 Symantec Corp.* 17,085
- -------------------------------------------------------------------------
367,203
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (2.56%)
25,900 CBT Group PLC ADR* 637,787
- -------------------------------------------------------------------------
COMMON STOCK (96.33%) - CONTINUED
COMPUTER SOFTWARE - ENTERPRISE (20.54%)
170 Adobe Systems Inc. $ 19,295
7,200 BEA Systems, Inc.* 254,250
12,250 BMC Software, Inc.* 876,640
300 Citrix Systems, Inc.* 18,581
5,300 Computer Associates International, Inc. 324,625
16,000 Compuware Corp.* 417,000
2,000 Documentum, Inc.* 43,250
1,000 E.piphany, Inc.* 48,750
593 Hyperion Solutions Corp.* 13,046
200 i2 Technologies, Inc.* 7,762
9,600 Legato Systems, Inc.* 418,500
3,600 Mercury Interactive Corp.* 232,425
15,000 New Era of Networks, Inc.* 324,375
17,100 Oracle Corp.* 778,050
7,300 Rational Software Corp.* 213,753
5,300 SAP AG ADR 200,075
17,200 Saville Systems PLC* 252,625
5,200 Siebel Systems, Inc.* 346,450
6,420 Sterling Software, Inc.* 128,400
2,600 VERITAS Software Corp.* 197,437
- ------------------------------------------------------------------------
5,115,289
COMPUTER SOFTWARE - FINANCE (2.48%)
3,900 Advent Software, Inc.* 242,775
4,200 Intuit, Inc.* 368,156
205 Transaction Systems Architects, Inc.* 5,522
- ------------------------------------------------------------------------
616,453
COMPUTER SOFTWARE - Security (1.21%)
21,300 Axent Technologies, Inc.* 275,568
200 Check Point Software
Technologies Ltd.* 16,887
200 HNC Software Inc.* 7,937
- ------------------------------------------------------------------------
300,392
ELECTRICAL - EQUIPMENT (0.06%)
145 Hitachi Ltd. ADR 15,823
- ------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (6.93%)
3,500 Intel Corp. 260,093
9,300 LSI Logic Corp.* 478,950
8,800 Texas Instruments Inc. 723,800
4,000 Xilinx, Inc.* 262,125
- ------------------------------------------------------------------------
1,724,968
FINANCIAL SERVICES - MISCELLANEOUS (1.59%)
9,050 First Data Corp. 397,068
- ------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.70%)
5,000 PurchasePro.com, Inc.* 173,750
- ------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
7
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BERGER INFORMATION TECHNOLOGY FUND
- ------------------------------------------------------------------------
Schedule of Investments
- ------------------------------------------------------------------------
September 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.33%) - CONTINUED
Internet - ISP/Content (4.61%)
4,000 America Online, Inc.* $ 416,000
4,200 At Home Corp.-Series A* 174,037
7,200 Mindspring Enterprises, Inc.* 199,350
2,000 Yahoo, Inc.* 359,000
- ------------------------------------------------------------------------
1,148,387
INTERNET - NETWORK SECURITY/SOLUTIONS (2.13%)
2,400 Alteon Websystems, Inc.* 225,600
1,000 Inktomi Corp.* 120,031
4,800 Network Associates, Inc.* 91,800
1,000 Sapient Corp.* 94,250
- ------------------------------------------------------------------------
531,681
INTERNET - SOFTWARE (2.92%)
4,000 Active Software, Inc.* 95,750
9,900 Bluestone Software, Inc.* 228,937
5,000 Kana Communications, Inc.* 249,375
4,700 SilverStream Software, Inc.* 146,287
200 Vitria Technology, Inc.* 7,350
- ------------------------------------------------------------------------
727,699
MEDIA - CABLE TV (1.57%)
4,100 Cox Communications, Inc.* 171,175
6,000 Telewest Communications PLC ADR* 219,000
- ------------------------------------------------------------------------
390,175
MEDIA - RADIO/TV (1.74%)
8,800 AT&T Corp. - Liberty Media Group* 326,700
2,480 Viacom Inc. - Class A* 107,260
- ------------------------------------------------------------------------
433,960
OFFICE EQUIPMENT - EQUIPMENT & AUTOMATION (0.35%)
2,070 Xerox Corp. 86,810
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (2.79%)
3,200 Orange PLC ADR* 318,400
800 Vodafone Airtouch PLC 190,200
3,000 VoiceStream Wireless Corp.* 185,156
- ------------------------------------------------------------------------
693,756
TELECOMMUNICATIONS - EQUIPMENT (9.94%)
4,900 ADC Telecommunications Inc.* 205,511
2,300 Comverse Technology, Inc.* 216,918
6,500 General Instrument Corp.* 312,812
9,750 Lucent Technologies, Inc. 632,531
4,000 Motorola, Inc. 352,000
4,000 Nokia Oyj Corp. ADR 359,250
4,440 Nortel Networks Corp. 226,440
460 Telefonaktiebolaget LM Ericsson
- Series B 14,375
2,700 Tellabs, Inc.* 153,731
- ------------------------------------------------------------------------
2,473,568
<CAPTION>
- ------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ------------------------------------------------------------------------
<S> <C>
COMMON STOCK (96.33%) - CONTINUED
TELECOMMUNICATIONS - SERVICES (6.27%)
4,550 MCI WorldCom, Inc.* $ 327,031
6,600 Nextel Communications, Inc.* 447,562
1,000 Nextlink Communications, Inc.* 51,843
11,000 Teligent, Inc. - Class A* 546,562
4,800 Winstar Communications, Inc.* 187,500
- ------------------------------------------------------------------------
1,560,498
UTILITY - TELEPHONE (1.40%)
6,100 U S WEST, Inc. 348,081
Total Common Stock
(cost $16,217,179) 23,989,930
- ------------------------------------------------------------------------
REPURCHASE AGREEMENT (2.78%)
$693,000 State Street Repurchase Agreement,
4.85%, dated September 30, 1999,
to be repurchased at $693,093 on
October 1, 1999, collateralized by
FNMA Agency Note, 6.0% - July 16, 2001,
with a value of $708,737 693,000
Total Repurchase Agreement
(cost $693,000) 693,000
Total Investments (cost $16,910,179) (99.11%) 24,682,930
Total Other Assets, Less Liabilities (0.89%) 221,838
Net Assets (100.00%) $ 24,904,768
- ------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
PLC - Public Limited Company.
ADR - American Depositary Receipt.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
8
- --------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
Ticker Symbol - Investor Shares BENGX
- Institutional Shares N/A
Fund Number - Investor Shares 344
- Institutional Shares 914
PORTFOLIO MANAGER COMMENTARY MARK S. SUNDERHUSE
PERFORMANCE
The Berger New Generation Fund (the "Fund") had an outstanding year, registering
a total return of 110.82%(1) (Investor Shares) and 110.98%(1) (Institutional
Shares) for the 12 months ended September 30, 1999. This significantly outpaced
the 27.80% gain for the Standard & Poor's (S&P) 500 Index(2) and the 19.07% gain
for the Russell 2000 Index(3) for the same period.
YEAR IN REVIEW
After taking over the Fund in February 1999, we have positioned the Fund in
sectors and industries that buffered it from the market doldrums of the last
quarter, which greatly enhanced our return over the year. In all sectors, we
continue to look for innovative companies with superior management skills,
financial strength and a definitive business plan with measurable milestones.
Our emphasis on technology has served shareholders well. More than half of total
Fund assets have been invested in technology stocks since the Fund's fiscal year
began. But, unlike some other aggressive growth funds, we look for potentially
high-growth technology companies across all industries in order to broaden and
diversify our Fund's technology reach. There are valuable technologies to be
found in energy, healthcare and other sectors. New technologies in the steel
industry, for example, make the metal harden faster and resist corrosion better.
We try to avoid what we call "commodity" technologies. These are technologies
that can easily be duplicated allowing competition to drive prices down. Memory
chips, for example, are a commodity technology.
Within the technology sector, we've seen very strong performance from
telecommunications equipment firms, telecommunications service providers and
semiconductor companies that produce communication chips. Key contributors over
the year included At Home, Citrix Systems and Sun Microsystems.
In the Internet arena, we bought very selectively during the year. Although the
Internet is here to stay, not every Internet company is. We have focused on what
we call the Internet enablers, which are companies that make the technologies
that enable the Internet to work. We look for companies that we believe will own
their share of the market in the future. In the "dot-com" area, we also
selectively seek companies that can achieve market leadership and dominate their
market over the next few years. This includes eBay, which provides on-line
auctions, and eToys, an on-line retailer of toys.
We also saw strong performance in the energy sector. On September 30, 1999, we
had 12.1% of Fund net assets invested in energy compared with 1.4% a year
earlier. One stock that contributed to performance is the natural gas
exploration and transportation company, Western Gas Resources.
Another area of strong performance was in the healthcare sector. The Laser
Vision Center, a laser vision correction company, and Guidant, a medical device
company, boosted Fund performance. Another strong performer during this year has
been Genentech, a biotechnology firm that has a strong product pipeline.
Initial public offerings (IPO's) also made a positive contribution to the Fund's
performance during the year, although it is unclear whether this market for
IPO's will continue into next year.
LOOKING AHEAD
We're cautiously optimistic about the economy and the market going forward.
Investors today are very knowledgeable about the market and much more
comfortable being in it. We think that means investment capital will continue to
flow into and fuel the market.
We believe the final quarter of the year will continue to be one of uncertainty.
However, we see investment opportunity in the U.S. and internationally once we
enter the year 2000, especially for software companies that have languished
recently. We've already seen some recovery in the stocks of these companies, and
we believe this will continue after the new year.
1. Past performance does not guarantee future results. 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
9
- --------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
INVESTOR SHARES
- ---------------
COMPARISON OF CHANGE IN VALUE OF BERGER NEW GENERATION FUND;
INVESTOR SHARES VS. S&P 500 INDEX AND COST OF LIVING INDEX
<TABLE>
<CAPTION>
Berger New
Generation Fund; S&P 500 Cost of
Investor Shares Index Living Index
<S> <C> <C> <C>
3/29/96 $10,000 $10,000 $10,000
9/30/96 $11,820 $10,791 $10,135
3/31/97 $9,643 $12,004 $10,276
9/30/97 $15,547 $15,153 $10,353
3/31/98 $16,286 $17,762 $10,417
9/30/98 $13,371 $16,526 $10,507
3/31/99 $19,931 $21,041 $10,597
9/30/99 $28,190 $21,119 $10,732
</TABLE>
BERGER NEW GENERATION FUND; INVESTOR SHARES*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- ---------------------------------------
<S> <C>
1 Year 110.82%
Life of Fund 34.35%
(3/29/96)
</TABLE>
INSTITUTIONAL SHARES
- --------------------
COMPARISON OF CHANGE IN VALUE OF BERGER NEW GENERATION FUND;
INSTITUTIONAL SHARES VS. S&P 500 INDEX AND COST OF LIVING INDEX
<TABLE>
<CAPTION>
Berger New
Generation Fund; S&P 500 Cost of
Investor Shares Index Living Index
<S> <C> <C> <C>
3/29/96 $250,000 $250,000 $250,000
9/30/96 $295,500 $269,769 $253,372
3/31/97 $241,076 $300,092 $256,904
9/30/97 $388,679 $378,833 $258,831
3/31/98 $407,162 $444,049 $260,437
9/30/98 $334,285 $413,147 $262,685
3/31/99 $498,268 $526,025 $264,933
9/30/99 $705,287 $527,966 $268,304
</TABLE>
BERGER NEW GENERATION FUND;
INSTITUTIONAL SHARES*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- -------------------------------------
<S> <C>
1 Year 110.98%
Life of Fund 34.38%
(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.
<PAGE>
Berger Funds September 30, 1999 Annual Report
10
- --------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
September 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------------------
<S> <C>
COMMON STOCK (97.88%)
BANKS - WEST/SOUTHWEST (0.33%)
45,000 Silicon Valley Bancshares* $ 1,085,625
- ------------------------------------------------------------------------
BUILDING - HEAVY CONSTRUCTION (1.14%)
90,000 Dycom Industries, Inc.* 3,796,875
- ------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (1.74%)
67,500 Lamar Advertising Co. - Class A* 3,341,250
40,000 Tmp Worldwide, Inc.* 2,435,000
- ------------------------------------------------------------------------
5,776,250
COMMERCIAL SERVICES - MISCELLANEOUS (2.13%)
72,500 Paychex, Inc. 2,474,062
75,000 Profit Recovery Group
International, Inc.* 3,346,875
50,000 Sykes Enterprises, Inc. 1,234,375
- ------------------------------------------------------------------------
7,055,312
COMPUTER - LOCAL NETWORKS (0.83%)
40,000 Cisco Systems, Inc.* 2,742,500
- ------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (1.82%)
65,000 Sun Microsystems, Inc.* 6,045,000
- ------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (0.86%)
40,000 EMC Corp.* 2,857,500
- ------------------------------------------------------------------------
COMPUTER - SERVICES (2.64%)
75,000 Fiserv, Inc.* 2,437,500
141,700 IMS Health, Inc. 3,232,531
44,000 Internap Network Services Corp.* 1,963,500
80,000 Technology Solutions Co.* 1,130,000
- ------------------------------------------------------------------------
8,763,531
COMPUTER SOFTWARE - DESKTOP (0.50%)
21,000 Gemstar International Group Ltd.* 1,640,625
- ------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAINMENT (0.37%)
50,000 CBT Group PLC ADR* 1,231,250
- ------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (6.13%)
85,000 Citrix Systems, Inc.* 5,264,687
13,000 E.piphany, Inc.* 633,750
250,100 New Era of Networks, Inc.* 5,408,412
90,000 SalesLogix Corp.* 1,800,000
70,000 TSI International Software Ltd.* 1,898,750
70,000 VERITAS Software Corp.* 5,315,625
- ------------------------------------------------------------------------
20,321,224
ELECTRICAL - MILITARY SYSTEMS (1.55%)
89,900 General Motors Corp. - Class H* 5,146,775
- ------------------------------------------------------------------------
ELECTRONIC - LASER SYSTEM/COMPONENT (2.11%)
50,000 Cymer, Inc.* 1,734,375
30,000 Electro Scientific Industries, Inc.* 1,598,437
260,000 Laser Vision Centers, Inc.* 3,648,125
- ------------------------------------------------------------------------
6,980,937
COMMON STOCK (97.88%) - CONTINUED
ELECTRONIC - MISCELLANEOUS COMPONENTS (1.68%)
80,000 RF Micro Devices, Inc.* $ 3,660,000
55,000 Sawtek, Inc.* 1,925,000
- ------------------------------------------------------------------------
5,585,000
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (2.11%)
45,000 Applied Materials, Inc.* 3,504,375
50,000 Asyst Technologies, Inc.* 1,650,000
30,000 Lam Research Corp.* 1,830,000
- ------------------------------------------------------------------------
6,984,375
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (7.00%)
120,000 Applied Micro Circuits Corp.* 6,840,000
90,000 Conexant Systems, Inc.* 6,539,062
30,700 Helix Technology Corp. 1,020,775
40,000 SDL Corp.* 3,052,500
45,000 Vitesse Semiconductors Corp.* 3,841,875
70,000 Zoran Corp.* 1,898,750
- ------------------------------------------------------------------------
23,192,962
ELECTRONIC PRODUCTS - MISCELLANEOUS (1.14%)
60,000 Powerwave Technologies, Inc.* 2,893,125
40,000 Three-Five Systems, Inc.* 885,000
- ------------------------------------------------------------------------
3,778,125
FINANCE - INVESTMENT BANKERS (0.95%)
106,000 Knight/Trimark Group, Inc.* 3,140,250
- ------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.13%)
22,000 Commercial Federal Corp. 431,750
- ------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (0.89%)
142,500 Concord EFS, Inc.* 2,939,062
- ------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (0.51%)
100,000 The MIIX Group, Inc. 1,693,750
- ------------------------------------------------------------------------
INTERNET - E*COMMERCE (3.97%)
40,000 Amazon.com, Inc.* 3,197,500
24,900 CareInsite, Inc.* 1,260,562
20,000 eBay, Inc.* 2,821,250
64,900 eToys, Inc.* 4,319,906
63,700 NextCard, Inc.* 1,560,650
- ------------------------------------------------------------------------
13,159,868
INTERNET - ISP/CONTENT (4.79%)
135,400 At Home Corp. - Series A* 5,610,637
105,700 drkoop.com, Inc.* 1,499,618
40,900 High Speed Access Corp.* 938,143
26,900 Homestore.Com, Inc.* 1,121,393
20,000 InterVU Inc.* 742,500
46,400 NetZero, Inc.* 1,206,400
34,500 Rhythms NetConnections Inc.* 1,190,250
95,000 SoftNet Systems, Inc.* 2,315,625
40,000 Verio, Inc.* 1,240,000
- ------------------------------------------------------------------------
15,864,566
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
11
- --------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
September 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------------------
<S> <C>
COMMON STOCK (97.88%) - CONTINUED
INTERNET - NETWORK SECURITY/SOLUTIONS (5.95%)
8,400 eGain Communications Corp.* $ 155,400
23,000 Inktomi Corp.* 2,760,718
22,900 Juniper Networks, Inc.* 4,190,700
38,200 Keynote Systems, Inc.* 955,000
44,000 RADWARE Ltd.* 1,210,000
100,000 Spyglass, Inc.* 1,250,000
50,000 Tumbleweed Communications Corp.* 1,337,500
105,000 USWeb Corp.* 3,602,812
40,000 VeriSign, Inc.* 4,260,000
- ------------------------------------------------------------------------
19,722,130
INTERNET - SOFTWARE (4.82%)
30,000 CMGI Inc.* 3,075,000
37,100 Digital Insight Corp.* 556,500
49,300 Liquid Audio, Inc.* 1,824,100
30,050 Phone.com, Inc.* 4,552,575
43,000 Quest Software, Inc.* 1,999,500
54,400 SilverStream Software, Inc.* 1,693,200
52,600 Software.com, Inc.* 2,255,225
- ------------------------------------------------------------------------
15,956,100
LEISURE - SERVICES (0.90%)
45,000 Cheap Tickets, Inc.* 1,456,875
50,000 SFX Entertainment, Inc.* 1,525,000
- ------------------------------------------------------------------------
2,981,875
MEDIA - CABLE TV (1.83%)
38,200 Comcast Corp. - Class A 1,377,587
38,200 Comcast Corp. - Special Class A 1,523,225
29,600 EchoStar Communications Corp.* 2,688,050
16,200 Insight Communications
Company, Inc. - Class A* 463,725
- ------------------------------------------------------------------------
6,052,587
MEDIA - RADIO/TV (5.04%)
50,000 AMFM Inc.* 3,043,750
219,644 AT&T Corp. - Liberty Media Group* 8,154,283
44,719 Clear Channel Communications, Inc.* 3,571,933
75,700 Salem Communications Corp.* 1,930,350
- ------------------------------------------------------------------------
16,700,316
MEDICAL - BIOMED/GENETICS (1.56%)
35,200 Genentech, Inc.* 5,150,200
- ------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (1.48%)
95,500 Catalytica, Inc.* 1,432,500
85,000 Pharmacyclics, Inc.* 3,474,375
- ------------------------------------------------------------------------
4,906,875
MEDICAL - GENERIC DRUGS (1.59%)
62,000 Mylan Laboratories, Inc. 1,139,250
135,000 Watson Pharmaceuticals, Inc.* 4,125,952
- ------------------------------------------------------------------------
5,265,202
COMMON STOCK (97.88%) - CONTINUED
Medical - Instruments (1.82%)
150,000 Eclipse Surgical Tech, Inc.* $ 2,475,000
80,000 Novoste Corp.* 1,427,500
125,000 Ventana Medical Systems, Inc.* 2,125,000
- ------------------------------------------------------------------------
6,027,500
MEDICAL - MEDICAL/DENTAL SERVICES (2.51%)
107,800 Accredo Health, Inc.* 3,395,700
200,000 TLC The Laser Center Inc.* 4,925,000
- ------------------------------------------------------------------------
8,320,700
MEDICAL - PRODUCTS (1.79%)
85,000 Guidant Corp.* 4,558,125
100,000 Lifecore Biomedical, Inc.* 1,375,000
- ------------------------------------------------------------------------
5,933,125
MEDICAL - WHOLESALE DRUG/SUNDRIES (0.86%)
179,900 Allscripts, Inc.* 2,855,912
- ------------------------------------------------------------------------
OIL & GAS - DRILLING (2.23%)
190,000 Global Marine* 3,123,125
152,000 Marine Drilling Cos.* 2,403,500
80,000 Precision Drilling Corp.* 1,855,000
- ------------------------------------------------------------------------
7,381,625
OIL & GAS - FIELD SERVICES (0.42%)
43,300 BJ Services Co.* 1,377,481
- ------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (7.77%)
30,000 Apache Corp. 1,295,625
96,000 Barrett Resources Corp.* 3,546,000
143,000 Basin Exploration, Inc.* 3,432,000
58,999 Devon Energy Corp. 2,444,771
124,100 Evergreen Resources, Inc.* 2,986,156
70,000 Forest Oil Corp.* 1,194,375
175,000 Louis Dreyfus Natural Gas Corp.* 3,751,562
75,000 Newfield Exploration Co.* 2,470,312
150,000 Pennaco Energy, Inc.* 1,828,125
207,500 Vintage Petroleum, Inc. 2,801,250
- ------------------------------------------------------------------------
25,750,176
OIL & GAS - U.S. INTEGRATED (0.91%)
200,000 TransMontaigne Inc.* 3,000,000
- ------------------------------------------------------------------------
OIL & GAS PRODUCTION/PIPELINE (0.79%)
140,000 Western Gas Resources, Inc. 2,616,250
- ------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (0.68%)
55,000 Ann Taylor Stores, Inc.* 2,248,125
- ------------------------------------------------------------------------
RETAIL - MAIL ORDER & DIRECT (0.50%)
25,000 Lands' End, Inc.* 1,650,000
- ------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (0.25%)
75,000 Sharper Image Corp.* 825,000
- ------------------------------------------------------------------------
RETAIL - RESTAURANTS (0.58%)
78,000 Starbucks Corp.* 1,932,937
- ------------------------------------------------------------------------
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
12
- --------------------------------------------------------------------------------
BERGER NEW GENERATION FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
September 30, 1999
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
SHARES VALUE
- ------------------------------------------------------------------------
<S> <C>
COMMON STOCK (97.88%) - CONTINUED
RETAIL - SUPER/MINI-MARKETS (0.10%)
10,000 Whole Foods Market, Inc.* $ 327,187
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (0.75%)
40,000 VoiceStream Wireless Corp.* 2,468,750
- ------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (3.29%)
47,000 American Tower Corp.* 919,437
50,000 Aware, Inc.* 1,434,375
41,800 Catapult Communications Corp.* 647,900
95,000 Crown Castle International Corp.* 1,778,281
22,000 JDS Uniphase Corp.* 2,503,875
40,200 Lucent Technologies, Inc. 2,607,975
20,000 Scientific-Atlanta, Inc. 991,250
- ------------------------------------------------------------------------
10,883,093
TELECOMMUNICATIONS - SERVICES (3.39%)
133,100 CapRock Communications Corp.* 3,094,575
38,152 Global Crossing Ltd.* 1,011,028
80,000 ITC DeltaCom, Inc.* 2,200,000
115,000 Qwest Communications
International, Inc.* 3,399,687
20,000 Teligent, Inc. - Class A* 993,750
25,700 Time Warner Telecom Inc.* 536,487
- ------------------------------------------------------------------------
11,235,527
UTILITY - WATER SUPPLY (0.75%)
145,000 Azurix Corp.* 2,492,187
Total Common Stock
(cost $251,689,647) 324,273,972
- ------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ------------------------------------------------------------------------
PAR VALUE VALUE
- ------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT (1.19%)
$3,922,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999,
to be repurchased at $3,922,528 on
October 1, 1999, collateralized by
FNMA Agency Note, 5.25% -
January 10, 2001 with a value of
$4,000,605 $ 3,922,000
Total Repurchase Agreement
(cost $3,922,000) 3,922,000
Total Investments (cost $255,611,647) (99.07%) 328,195,972
Total Other Assets, Less Liabilities (0.93%) 3,088,688
Net Assets (100.00%) $331,284,660
- ------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
PLC- Public Limited Company.
ADR- American Depositary Receipt.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
13
- -------------------------------------------------------------------------------
[PHOTO] BERGER SELECT FUND
Ticker Symbol - BESLX
Fund Number - 214
- -------------------------------------------------------------------------------
JOHN B. JARES, TINO R. SELLITTO,
PORTFOLIO MANAGER COMMENTARY AMY K. SELNER, MARK S. SUNDERHUSE
- -------------------------------------------------------------------------------
PERFORMANCE
The Berger Select Fund (the "Fund") had a total return of 53.06%(1) for the
year ended September 30, 1999, which significantly outperformed the 27.80%
return of the Standard & Poor's (S&P) 500 Index,(2) for the year.
Our Fund focuses on growth companies of all market cap sizes. We take larger
positions in a smaller number of stocks, generally holding a core portfolio of
20 to 30 stocks. We select stocks using investment ideas that are considered to
be the best of Berger--ideas about companies that we believe have the best
opportunity and potential to outperform their peers and the market.
YEAR IN REVIEW
Among the key reasons why our Fund nearly doubled the return of the S&P 500
Index this past year was our stock selection in the technology and energy
sectors.
We started focusing on the energy sector mid first quarter 1999 and held a
strong position in this sector in the quarter ended September 30. Although
energy stocks were down during that quarter, they delivered a solid, positive
return year-to-date. We believe that there are very strong fundamentals in
energy. Oil prices have gone up because of a decrease in oil production and an
increase in demand attributable to recovering world economies. We continue to
like the growth potential in the energy sector and in energy companies such as
ENSCO International and Burlington Resources.
Over the year, we substantially increased our weighting in technology--from 27%
of Fund net assets on September 30, 1998, to 55% one year later. This heavy
weighting boosted Fund performance, particularly during the quarter ended
September 30, 1999, when technology stock prices continued on the upward trend
that began in June. We believe in the long-term prospects for technology. We
remain convinced that growth prospects for the Internet infrastructure are
explosive, and we continue to focus on telecommunication and broadband
companies. These companies provide the plumbing that enables broad acceptance of
Internet applications and services. The Fund benefited from strong performances
over the year by technology leaders such as Juniper Networks, Motorola and
Cisco Systems.
Healthcare is our second largest sector, making up just over 12% of our Fund's
total portfolio. Genentech, a biotechnology company, aided fund performance. We
believe that this firm has a strong product pipeline and bright prospects for
future growth.
Among other Fund sectors, the financial sector significantly underperformed. One
stock that turned in particularly disappointing results was Charles Schwab.
Schwab's decline was primarily due to the market's short-term investor concerns
about rising interest rates and year 2000 issues. We believe that the long-term
prospects for Schwab are positive, however, and we look for the company to excel
in 2000.
Initial public offerings (IPO's) also made a positive contribution to the Fund's
performance during the year, although it is unclear whether this market for
IPO's will continue into next year.
LOOKING AHEAD
We expect near-term market volatility for two reasons. First, rising interest
rates continue to nag the equity market. Second, investors are still somewhat
concerned that there will be problems during the transition to the year 2000. As
a result of these factors, investors may once again gravitate toward large cap
companies, which they perceive to be safer and more stable investments in bumpy
markets. Over the long term, however, robust U.S. economic growth and the
continuing recovery of international economies should provide a solid backdrop
for strong corporate earnings.
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.
<PAGE>
Berger Funds September 30, 1999 Annual Report
14
- -------------------------------------------------------------------------------
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>
Cost of
Berger S&P 500 Living
Select Fund Index 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
6/30/99 $20,719 $14,449 $10,304
9/30/99 $20,296 $13,548 $10,360
</TABLE>
BERGER SELECT FUND*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ----------------------------------------
1 Year 53.06% --
Life Fund 49.85%
(12/31/97)
*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.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (99.37%)
BEVERAGE - SOFT DRINKS (3.03%)
180,100 The Pepsi Bottling Group, Inc. $ 3,072,956
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (3.91%)
80,000 Lamar Advertising Co.* 3,960,000
- -------------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (5.41%)
80,000 Cisco Systems, Inc.* 5,485,000
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (3.38%)
150,000 IMS Health, Inc. 3,421,875
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (1.79%)
20,000 Microsoft Corp.* 1,811,250
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (4.98%)
72,000 J.D. Edwards & Co.* 1,491,750
164,400 New Era of Networks, Inc.* 3,555,150
- -------------------------------------------------------------------------------
5,046,900
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (2.41%)
40,000 Lam Research Corp.* 2,440,000
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (3.79%)
45,000 Vitesse Semiconductors Corp.* 3,841,875
- -------------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (1.86%)
56,000 Charles Schwab Corp. 1,886,500
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (99.37%) - CONTINUED
FINANCIAL SERVICES - MISCELLANEOUS (4.15%)
204,000 Concord EFS, Inc.* $ 4,207,500
- -------------------------------------------------------------------------------
INTERNET - ISP/CONTENT (4.10%)
40,000 America Online, Inc.* 4,160,000
- -------------------------------------------------------------------------------
INTERNET - NETWORK SECURITY/SOLUTIONS (9.66%)
23,500 Juniper Networks, Inc.* 4,300,500
160,000 USWeb Corp.* 5,490,000
- -------------------------------------------------------------------------------
9,790,500
INTERNET - SOFTWARE (5.37%)
53,100 CMGI Inc.* 5,442,750
- -------------------------------------------------------------------------------
LEISURE - SERVICES (5.93%)
133,600 Royal Caribbean Cruises Ltd. 6,012,000
- -------------------------------------------------------------------------------
MEDIA - RADIO/TV (5.30%)
35,000 AMFM Inc.* 2,130,625
40,600 Clear Channel Communications, Inc.* 3,242,925
- -------------------------------------------------------------------------------
5,373,550
MEDICAL - BIOMED/GENETICS (6.47%)
44,800 Genentech, Inc.* 6,554,800
- -------------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (3.04%)
125,200 TLC The Laser Center Inc.* 3,083,050
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
15
- -------------------------------------------------------------------------------
BERGER SELECT FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (99.37%) - CONTINUED
MEDICAL - PRODUCTS (2.01%)
38,000 Guidant Corp.* $ 2,037,750
- -------------------------------------------------------------------------------
OIL & GAS - DRILLING (4.19%)
235,000 ENSCO International Inc. 4,244,687
- -------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (2.90%)
80,000 Burlington Resources Inc. 2,940,000
- -------------------------------------------------------------------------------
RETAIL - CONSUMER ELECTRONICS (1.53%)
25,000 Best Buy Co., Inc.* 1,551,564
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (9.99%)
69,200 Motorola, Inc. 6,089,600
37,400 Redback Networks Inc.* 4,039,200
- -------------------------------------------------------------------------------
10,128,800
TELECOMMUNICATIONS - SERVICES (4.17%)
105,900 CapRock Communications Corp.* 2,462,175
24,500 MCI WorldCom, Inc.* 1,760,937
- -------------------------------------------------------------------------------
4,223,112
Total Common Stock
(cost $92,484,952) 100,716,419
- -------------------------------------------------------------------------------
<CAPTION>
PAR VALUE VALUE
- -------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT (0.33%)
$331,000 State Street Repurchase Agreement, 4.85%
dated September 30, 1999 to be repurchased
at $331,045 on October 1, 1999,
collateralized by FNMA Agency Note, 5.20% -
May 6, 2000, with a value of $339,481 $ 331,000
Total Repurchase Agreement
(cost $331,000) 331,000
Total Investments (cost $92,815,952) (99.70%) 101,047,419
Total Other Assets, Less Liabilities (0.30%) 304,240
Net Assets (100.00%) $101,351,659
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
16
- -------------------------------------------------------------------------------
[PHOTO] BERGER SMALL COMPANY GROWTH FUND
Ticker Symbol - Investor Shares BESCX
- Institutional Shares N/A
Fund Number - Investor Shares 345
- Institutional Shares 915
- -------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY AMY K. SELNER
- -------------------------------------------------------------------------------
PERFORMANCE
For the fiscal year ended September 30, 1999, the Berger Small Company Growth
Fund (the "Fund") had a total return of 62.78%(1) (Investor Shares). This
significantly outdistanced the gains registered by the Russell 2000 Index(2)
and the Russell 2000 Growth Index(3), which were 19.07% and 32.63%,
respectively over this time period.
Just eight days into this fiscal year, small cap stocks, which had languished in
a bear market, staged an impressive rebound that lasted through the fourth
quarter 1998. Technology stocks led the way. As a group, small cap stocks
performed in step with large cap stocks from October 8, 1998 until mid-January
1999 when interest rate fears crept into the marketplace. Small caps then
dramatically underperformed large caps through March.
Between April and June, small caps (as measured by the Russell 2000)
outperformed large caps (as measured by the S&P 500 Index(4)) by nearly 8%. This
was the best quarterly outperformance of small caps since the fourth quarter
1992 and was attributable to the more attractive relative valuations of small
caps compared to large caps after a very difficult first quarter 1999.
In the quarter ended September 30, the stock market faltered on renewed interest
rate fears, and both small and large cap stocks performed poorly.
YEAR IN REVIEW
Despite this up and down year for small cap stocks, our Fund was able to
considerably outperform its benchmarks mainly due to stock selection.
The Fund remains heavily weighted in industries where growth prospects are the
most visible and consistent. Technology, our largest sector, continues to have
the greatest long-term growth fundamentals. We believe that the growth prospects
are explosive for the Internet infrastructure in particular. Therefore, we
continue to focus on telecommunication and broadband companies, which provide
the plumbing that enables broad acceptance of Internet applications and
services. Similarly, companies such as Powerwave Technologies, which supplies
components for wireless communications, have been strong holdings.
We have seen a pick-up in the information technology services group. We believe
some large contract orders for the Internet-related companies may revive this
Y2K depressed group. Semiconductor stocks continued to show solid revenue growth
and improving Asian economies should help sustain this trend.
Our Fund lowered it exposure to the healthcare group over this fiscal year.
Uncertainty surrounding prescription drug benefits and the government's impact
on drug pricing kept a lid on these stocks. One bright spot in the sector was
biotechnology stocks. Emerging biotechnology companies such as Biocryst
Pharmaceutical and Cephalon boosted Fund performance.
Our energy weighting contributed to the Fund's outperformance in the first six
months of 1999. Although there are worries that OPEC will irrationally increase
oil production, we remain positive on the long-term supply/demand fundamentals
within the sector.
Within the consumer group, radio stocks continue to be solid performers. The
environment for radio advertising was robust in 1999, and we expect this group's
strong fundamentals to carry into next year.
LOOKING AHEAD
Going forward, we continue to favor the technology sector, particularly the
telecommunication and broadband infrastructure companies that support the
Internet. We recognize that the fear of Y2K slowdown within the enterprise
software group is probably fully discounted and we believe that the
Internet-enabler software companies, which are companies that make the
technologies that enable the Internet to work, will be strong performers into
next year. We expect semiconductors to continue their strong fundamentals into
next year as well.
We remain cautiously optimistic about the market as we enter the final quarter
of 1999. The U.S. economy is undeniably robust and international economies are
picking up. We expect productivity to continue to grow and to fuel low
inflationary growth into 2000. The Federal Reserve Board left interest rates
unchanged at their early October meeting. But, if inflation picks up, the Fed
may raise rates again. However, inflation fears have been stemmed year to date.
We would need to see a period of greater operating profit growth for small caps
in order for them to outperform their large cap peers. We believe our bias
towards technology will be beneficial as we enter year 2000. Global economies
appear to be strengthening in concert, which will benefit technology stocks
since they often garner over 50% of earnings internationally.
(1.) Past performance does not guarantee future results. 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 overall 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
17
- -------------------------------------------------------------------------------
BERGER SMALL COMPANY GROWTH FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER SMALL COMPANY GROWTH FUND (INVESTOR
SHARES) 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>
12/30/93 $10,000 $10,000 $10,000
9/30/94 $10,960 $10,003 $10,247
9/30/95 $14,457 $12,343 $10,508
9/30/96 $18,982 $13,964 $10,823
9/30/97 $22,338 $18,599 $11,056
9/30/98 $16,821 $15,062 $11,221
9/30/99 $27,382 $17,935 $11,461
</TABLE>
BERGER SMALL COMPANY GROWTH FUND
(INVESTOR SHARES)* AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ---------------------------------------------
1 Year 62.78%
5 Year 20.10%
Life of Fund 19.15%
(12/30/93)
*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.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (93.51%)
BUILDING - HEAVY CONSTRUCTION (1.56%)
250,000 Dycom Industries, Inc.* $ 10,546,875
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (0.16%)
22,100 Lamar Advertising Co. - Class A* 1,093,950
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - MISCELLANEOUS (0.96%)
144,600 Diamond Technology Partners, Inc.* 6,488,925
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - SCHOOLS (1.45%)
491,000 Devry, Inc.* 9,820,000
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (5.00%)
255,200 Globix Corp.* 11,930,600
94,800 Internap Network Services Corp.* 4,230,450
310,000 International Integration Inc.* 10,152,500
193,400 Whittman-Hart, Inc.* 7,500,293
- -------------------------------------------------------------------------------
33,813,843
COMPUTER SOFTWARE - DESKTOP (0.91%)
150,500 Macromedia, Inc.* 6,151,687
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAIN (1.82%)
500,000 CBT Group PLC ADR* 12,312,500
- -------------------------------------------------------------------------------
COMMON STOCK (93.51%) - CONTINUED
COMPUTER SOFTWARE - ENTERPRISE (7.16%)
345,000 Aspect Development, Inc.* $ 8,732,812
121,800 Mercury Interactive Corp.* 7,863,712
300,000 New Era of Networks, Inc.* 6,487,500
100,000 Peregrine Systems, Inc.* 4,075,000
250,800 SAGA Systems, Inc.* 3,620,925
429,700 TSI International Software Ltd.* 11,655,612
78,300 VERITAS Software Corp.* 5,945,906
- -------------------------------------------------------------------------------
48,381,467
ELECTRONIC - LASER SYSTEM/COMPONENT (2.08%)
310,100 Cymer, Inc.* 10,756,593
231,600 Laser Vision Centers, Inc.* 3,249,637
- -------------------------------------------------------------------------------
14,006,230
ELECTRONIC - MISCELLANEOUS COMPONENTS (1.45%)
278,800 Sawtek, Inc.* 9,758,000
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (5.62%)
196,000 DuPont Photomasks, Inc.* 9,028,250
230,000 Etec Systems, Inc.* 8,653,750
303,000 PRI Automation, Inc.* 10,945,875
165,300 Teradyne, Inc.* 5,826,825
125,000 Veeco Instruments Inc.* 3,500,000
- -------------------------------------------------------------------------------
37,954,700
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
18
- -------------------------------------------------------------------------------
BERGER SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (93.51%) - CONTINUED
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (5.33%)
139,600 Applied Micro Circuits Corp.* $ 7,957,200
337,000 Cree Research Inc.* 11,436,937
59,300 GlobeSpan, Inc.* 3,743,312
208,600 MIPS Technologies, Inc. - Class A 6,636,087
73,400 Vitesse Semiconductors Corp.* 6,266,525
- -------------------------------------------------------------------------------
36,040,061
ELECTRONIC PRODUCTS - MISCELLANEOUS (5.46%)
314,900 Powerwave Technologies, Inc.* 15,184,084
249,200 Proxim, Inc.* 11,463,200
443,800 Universal Electronics Inc.* # 10,262,875
- -------------------------------------------------------------------------------
36,910,159
FINANCE - MORTGAGE & RELATED SERVICES (0.37%)
331,700 Resource America, Inc. 2,467,018
- -------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (0.57%)
150,000 Webster Financial Corp. 3,825,000
- -------------------------------------------------------------------------------
FINANCIAL SERVICES - MISCELLANEOUS (0.87%)
199,800 Metris Companies Inc. 5,881,612
- -------------------------------------------------------------------------------
INSURANCE - BROKERS (1.46%)
251,000 Pre-Paid Legal Services* 9,883,125
- -------------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.08%)
500 eBay, Inc.* 70,531
5,500 Internet Capital Group, Inc.* 483,312
- -------------------------------------------------------------------------------
553,843
INTERNET - ISP/CONTENT (2.08%)
53,600 China.com Corp. - Class A* 3,484,000
51,700 Commerce One, Inc.* 5,052,059
114,400 Homestore.Com, Inc.* 4,769,050
11,700 Internet Initiative Japan Inc.* 748,800
- -------------------------------------------------------------------------------
14,053,909
INTERNET - NETWORK SECURITY/SOLUTIONS (2.67%)
62,100 Sapient Corp.* 5,852,925
400,000 Spyglass, Inc.* 5,000,000
210,000 USWeb Corp.* 7,205,625
- -------------------------------------------------------------------------------
18,058,550
INTERNET - SOFTWARE (4.07%)
187,900 Agile Software Corp.* 12,025,600
38,700 Ariba, Inc.* 5,592,150
61,700 CMGI Inc.* 6,324,250
23,550 Phone.com, Inc.* 3,567,825
- -------------------------------------------------------------------------------
27,509,825
MEDIA - CABLE TV (0.39%)
91,200 Insight Communications Co.,
Inc. - Class A* 2,610,600
- -------------------------------------------------------------------------------
COMMON STOCK (93.51%) - CONTINUED
MEDIA - RADIO/TV (7.13%)
275,000 Cox Radio, Inc. - Class A* $ 16,362,500
245,600 Cumulus Media Inc. - Class A* 8,028,050
60,900 Hispanic Broadcasting Corp.* 4,636,012
310,600 Salem Communications Corp.* 7,920,300
290,000 SBS Broadcasting SA* 11,237,500
- -------------------------------------------------------------------------------
48,184,362
MEDICAL - BIOMED/GENETICS (4.41%)
278,100 BioCryst Pharmaceuticals, Inc.* 6,743,925
420,000 Cephalon, Inc.* 7,546,875
75,000 IDEC Pharmaceuticals Corp.* 7,052,343
84,700 Medimmune, Inc.* 8,440,884
- -------------------------------------------------------------------------------
29,784,027
MEDICAL - ETHICAL DRUGS (2.17%)
200,300 Jones Pharma Inc. 6,603,640
197,200 Pharmacyclics, Inc.* 8,060,550
- -------------------------------------------------------------------------------
14,664,190
MEDICAL - INSTRUMENTS (2.13%)
455,000 IDEXX Laboratories, Inc.* 7,834,531
384,300 Ventana Medical Systems, Inc.* 6,533,100
- -------------------------------------------------------------------------------
14,367,631
MEDICAL - MEDICAL/DENTAL SERVICES (1.69%)
275,900 Accredo Health, Inc.* 8,690,850
262,500 ProVantage Health Services, Inc.* 2,707,031
- -------------------------------------------------------------------------------
11,397,881
MEDICAL - WHOLESALE DRUG/SUNDRIES (2.18%)
381,900 Allscripts, Inc.* 6,062,662
280,100 Priority Healthcare Corp.* 8,648,087
- -------------------------------------------------------------------------------
14,710,749
METAL PRODUCTS & FABRICATION (0.80%)
324,300 Maverick Tube Corp.* 5,391,487
- -------------------------------------------------------------------------------
OIL & GAS - DRILLING (1.00%)
444,800 Patterson Energy, Inc.* 6,755,400
- -------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (1.77%)
586,300 Paradigm Geophysical Ltd.* # 3,389,546
443,900 Veritas DGC, Inc.* 8,545,075
- -------------------------------------------------------------------------------
11,934,621
OIL & GAS - U.S. EXPLORATION & PRODUCTION (4.90%)
336,600 Basin Exploration, Inc.* 8,078,400
261,800 Devon Energy Corp. 10,848,337
396,100 Forest Oil Corp.* 6,758,456
146,300 Stone Energy Corp.* 7,443,012
- -------------------------------------------------------------------------------
33,128,205
POLLUTION CONTROL - SERVICES (1.52%)
615,500 Tetra Tech, Inc.* 10,271,156
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
19
- -------------------------------------------------------------------------------
BERGER SMALL COMPANY GROWTH FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (93.51%) - CONTINUED
RETAIL - APPAREL/SHOE (0.60%)
100,000 Ann Taylor Stores, Inc.* $ 4,087,500
- -------------------------------------------------------------------------------
RETAIL - HOME FURNISHINGS (0.63%)
225,000 Rent-Way, Inc.* 4,275,000
- -------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (1.44%)
330,000 Michaels Stores, Corp.* 9,735,000
- -------------------------------------------------------------------------------
RETAIL - SUPER/MINI-MARKETS (0.89%)
182,900 Whole Foods Market, Inc.* 5,984,276
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (5.96%)
200,000 Adaptive Broadband Corp.* 6,700,000
500,000 Aspect Telecommuncation Corp.* 8,484,375
61,400 Copper Mountain Networks, Inc.* 5,380,175
160,000 Gilat Satellite Networks Ltd.* 8,580,000
49,600 Redback Networks Inc.* 5,356,800
187,000 Research in Motion, Ltd.* 5,785,312
- -------------------------------------------------------------------------------
40,286,662
TELECOMMUNICATIONS - SERVICES (2.77%)
160,000 Metromedia Fiber Network, Inc.* 3,920,000
500,600 Viatel, Inc.* 14,798,987
- -------------------------------------------------------------------------------
18,718,987
Total Common Stock
(cost $483,092,569) 631,799,013
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- -------------------------------------------------------------------------------
PREFERRED STOCK - NON-CONVERTIBLE (0.25%)
COMPUTER - PERIPHERAL EQUIPMENT (0.25%)
665,000 Candescent Technologies Corp.* @ x $ 1,662,500
- -------------------------------------------------------------------------------
Total Preferred Stock - Non-Convertible
(cost $3,657,500) 1,662,500
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.88%)
- -------------------------------------------------------------------------------
$12,716,000 State Street Repurchase Agreement, 4.85%
dated September 30, 1999, to be repurchased
at $12,717,713 on October 1, 1999,
collateralized by FNMA Agency Note, 5.12% -
May 26, 2000, with a value of $12,971,993 12,716,000
- -------------------------------------------------------------------------------
Total Repurchase Agreement
(cost $12,716,000) 12,716,000
- -------------------------------------------------------------------------------
Total Investments (cost $499,466,069) (95.64%) 646,177,513
- -------------------------------------------------------------------------------
Total Other Assets, Less Liabilities (4.36%) 29,459,477
- -------------------------------------------------------------------------------
Net Assets (100.00%) $675,636,990
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
@ - Valued in good faith.
PLC - Public Limited Company.
ADR - American Depositary Receipt.
# The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with affiliates for the year ended
September 30, 1999:
<TABLE>
<CAPTION>
Universal Paradigm
Electronics Inc. Geophysical, Ltd.
- -------------------------------------------------------------------------------
<S> <C> <C>
Market Value at 9/30/98 -- $ 3,444,512
Purchases at Cost $ 11,366,354 --
Sales at Cost -- --
Change in Unrealized Appreciation/
(Depreciation) (1,103,479) (54,966)
Market Value at 9/30/98 $ 10,262,875 $ 3,389,546
Dividend Income -- --
Realized Gain (Loss) -- --
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
X SCHEDULE OF RESTRICTED SECURITIES AND ILLIQUID SECURITIES
Fair Value as a
Date Acquired Cost Fair Value % of Net Assets
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Candescent
Technologies
Corp. -
Preferred Stock 5/1/96 $3,657,500 $1,662,500 .25%
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
20
- -------------------------------------------------------------------------------
[PHOTO] BERGER SMALL CAP VALUE FUND
Ticker Symbol - Investor Shares BSCVX
- Institutional Shares BSVIX
Fund Number - Investor Shares 120
- Institutional Shares 403
- -------------------------------------------------------------------------------
ROBERT H. PERKINS AND
PORTFOLIO MANAGER COMMENTARY THOMAS M. PERKINS
- -------------------------------------------------------------------------------
PERFORMANCE
The Berger Small Cap Value Fund (the "Fund") had a total return of 24.69%(1)
(Investor Shares) and 25.18%(1) (Institutional Shares) for the year ended
September 30, 1999. This outperformed the 19.07% return registered by the
Russell 2000 Index(2) over the same period.
The year ended September 30, 1999, marked the sixth straight year of relative
underperformance of the Russell 2000 versus large cap indices. We believe this
disparity is largely a function of excessive market appreciation in the large
cap technology stocks that dominate the NASDAQ 100 and in the 50 largest
companies in the S&P 500 Index.
YEAR IN REVIEW
Our best-performing sector this year was energy. Commodity prices rebounded and
several issues returned more than 100% over the last 12 months. We used the
strength in the sector to reduce holdings in such names as Newfield Exploration
and BJ Services and to add names where we saw further upside potential, such as
Marine Drilling Companies and Key Energy Services.
In the communications sector, we enjoyed strong gains from Centennial Cellular
and Jones Intercable, as well as from cellular infrastructure providers REMEC
and Sawtek. These stocks rebounded as demand increased for broadband and lower
cell phone prices.
Since the beginning of our fiscal year, we have decreased our exposure to fallen
growth stocks, which are stocks that are trading near or at their all-time lows,
because we saw limited investment opportunities. The exceptions were stocks in
the information technology (IT) services industry. Many companies delayed large
IT projects until early next year in order to prepare for the Y2K changeover.
During this period, IT companies corrected as much as 50% to 60%. We viewed this
as a buying opportunity because worldwide demand of this service is expected to
double by 2003. Names we have added in this sector include Interim Services,
Romac International and Computer Horizons.
The most disappointing stocks have been in the financial sector, specifically
the banks and thrifts industry. Their earnings growth continues to meet or
exceed expectations, but their prices do not. Many of these companies are
aggressively buying back their stock and raising their dividends, and industry
consolidation continues. The one exception is in the real estate investment
trusts (REIT) industry, where we continue to find attractive valuations. REITs
traditionally sell at yields equivalent to 10-year Treasuries, which are
currently 5.9%. The average current yield of REITs held by the Fund is 8.1%.
This industry is clearly out of favor, yet many companies boast clean balance
sheets, quality assets and trade at a significant discount to their net asset
values. We continue to add to names such as Home Properties of New York and
Prentiss Properties Trust.
Another sector now showing up on our radar screen is healthcare. A cloud of
legislation hovering over Washington created uncertainty in this sector and
caused a widespread sell-off. But values are beginning to appear. We are unsure
as to the exact timing of a resolution of problems in this sector, but we are
certain that a number of companies will emerge from the shakeout stronger than
ever. In order to capitalize on what we view as temporary issues, we are
focusing on finding quality companies with strong balance sheets that are
capable of weathering the storm and solidifying their positions as industry
leaders. One company we have added is Omnicare.
LOOKING AHEAD
We reflect on fiscal 1999 with mixed emotions. We are pleased with the Fund's
outperformance versus its benchmark, yet we remain frustrated with the continued
apathy the market has shown toward the small cap sector. As we enter the seventh
year of underperformance by small cap stocks, we reiterate our belief that the
best long-term returns are generated by investments in this area. Historically,
when the general market turns from larger companies to smaller ones, small cap
stocks perform exceedingly well. We are confident that history will repeat
itself. We will continue to manage the Fund according to the same small cap
value philosophy we have applied for 30 years and await the return of capital to
the small cap sector.
(1.) Past performance does not guarantee future results. 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
21
- -------------------------------------------------------------------------------
BERGER SMALL CAP VALUE FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
INVESTOR SHARES
- ---------------
COMPARISON OF CHANGE IN VALUE OF BERGER SMALL CAP VALUE FUND; INVESTOR SHARES
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>
9/30/89 $10,000 $10,000 $10,000
9/30/90 $7,967 $7,287 $10,616
9/30/91 $9,451 $10,574 $10,976
9/30/92 $10,102 $11,518 $11,304
9/30/93 $13,156 $15,341 $11,608
9/30/94 $15,436 $15,742 $11,952
9/30/95 $17,981 $19,420 $12,256
9/30/96 $20,902 $21,978 $12,624
9/30/97 $31,002 $29,272 $12,896
9/30/98 $27,599 $23,705 $13,088
9/30/99 $34,413 $28,226 $13,368
</TABLE>
BERGER SMALL CAP VALUE FUND; INVESTOR SHARES*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ---------------------------------------------
1 Year 24.69%
5 Year 17.39%
10 Year 13.15%
INSTITUTIONAL SHARES
- --------------------
COMPARISON OF CHANGE IN VALUE OF BERGER SMALL CAP VALUE FUND; INSTITUTIONAL
SHARES VS. RUSSELL 2000 INDEX AND COST OF LIVING INDEX
<TABLE>
<CAPTION>
Berger Small Cap
Value Fund; Russell 2000 Cost of
Institutional Shares Index Living Index
<S> <C> <C> <C>
9/30/89 $250,000 $250,000 $250,000
9/30/90 $199,181 $182,166 $265,400
9/30/91 $235,273 $264,351 $274,400
9/30/92 $252,554 $287,945 $282,600
9/30/93 $328,889 $383,528 $290,200
9/30/94 $385,901 $393,562 $298,800
9/30/95 $449,537 $485,657 $306,400
9/30/96 $522,541 $549,442 $315,600
9/30/97 $776,796 $731,796 $322,400
9/30/98 $694,084 $592,634 $327,200
9/30/99 $868,881 $705,650 $334,200
</TABLE>
BERGER SMALL CAP VALUE FUND; INSTITUTIONAL SHARES*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ----------------------------------------------
1 Year 25.18%
5 Year 17.62%
10 Year 13.27%
* 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.
<PAGE>
Berger Funds September 30, 1999 Annual Report
22
- -------------------------------------------------------------------------------
BERGER SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (87.03%)
BANKS - NORTHEAST (5.93%)
292,100 Community Bank Systems, Inc. $ 7,996,237
370,000 F.N.B. Corp. 8,972,500
190,000 Keystone Financial, Inc. 4,512,500
1,100,000 Peoples Heritage Financial Group, Inc. 18,287,500
700,000 Seacoast Financial Services Corp. 7,000,000
- -------------------------------------------------------------------------------
46,768,737
BANKS - SOUTHEAST (2.23%)
422,900 CCB Financial Corp. 17,603,212
- -------------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (2.76%)
348,000 Bank United Corp. - Class A 11,266,500
505,000 InterWest Bancorp, Inc. 10,478,750
- -------------------------------------------------------------------------------
21,745,250
BUILDING - RESIDENT/COMMERCIAL (0.57%)
206,800 Pulte Corp. 4,497,900
- -------------------------------------------------------------------------------
CHEMICALS - PLASTICS (2.68%)
1,220,000 A. Schulman, Inc. 21,121,250
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (3.70%)
1,200,000 Interim Services Inc.* 19,650,000
1,150,000 Romac International, Inc.* 9,523,442
- -------------------------------------------------------------------------------
29,173,442
COMPUTER - INTEGRATED SYSTEMS (0.51%)
500,000 Hypercom Corp.* 4,000,000
- -------------------------------------------------------------------------------
COMPUTER - PERIPHERAL EQUIPMENT (0.54%)
700,000 Splash Technology Holdings, Inc.*# 4,287,500
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (1.92%)
1,300,000 Computer Horizons Corp.* 15,112,500
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - DESKTOP (0.93%)
800,000 Network Equipment Technologies, Inc.* 7,350,000
- -------------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (0.78%)
528,700 JDA Software Group, Inc.* 6,179,181
- -------------------------------------------------------------------------------
CONSUMER PRODUCTS - MISCELLANEOUS (2.31%)
950,000 Jostens, Inc. 18,168,750
- -------------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (3.43%)
728,300 Federal Signal Corp. 14,474,962
400,000 Pittway Corp. - Class A 12,600,000
- -------------------------------------------------------------------------------
27,074,962
ELECTRICAL - CONTROL INSTRUMENTS (2.23%)
810,000 Watts Industries, Inc. 17,617,500
- -------------------------------------------------------------------------------
COMMON STOCK (87.03%) - CONTINUED
FINANCE - EQUITY REIT (9.97%)
550,000 Gables Residential Trust $ 13,200,000
600,000 Home Properties of New York, Inc. 16,012,500
1,000,000 IRT Property Co. 9,000,000
200,000 Parkway Properties, Inc. 6,450,000
720,000 Prentiss Properties Trust 15,975,000
900,000 Summit Properties, Inc. 17,943,750
- -------------------------------------------------------------------------------
78,581,250
FINANCE - PUBLIC INVESTMENT FUND - FOREIGN (1.71%)
1,365,000 Morgan Stanley Asia Pacific Fund, Inc.* 13,479,375
- -------------------------------------------------------------------------------
FINANCE - SAVINGS & LOANS (3.93%)
838,100 Republic Security Financial Corp. 7,280,993
230,000 Riverview Bancorp Inc. 2,831,875
336,500 Warren Bancorp, Inc. 3,028,500
700,000 Webster Financial Corp. 17,850,000
- -------------------------------------------------------------------------------
30,991,368
FOOD - MISCELLANEOUS PREPARATION (0.77%)
879,900 Vlasic Foods International Inc.* 6,104,306
- -------------------------------------------------------------------------------
HOUSEHOLD/OFFICE FURNITURE (0.68%)
280,000 Kimball International, Inc. - Class B 5,390,000
- -------------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (4.01%)
990,000 IPC Holdings Ltd. 18,562,500
- -------------------------------------------------------------------------------
900,000 Old Republic International Corp. 12,993,750
31,556,250
- -------------------------------------------------------------------------------
MACHINERY - GENERAL/INDUSTRIAL (1.69%)
800,000 Flowserve Corp. 13,300,000
- -------------------------------------------------------------------------------
MEDIA - CABLE TV (2.07%)
160,000 Jones Intercable, Inc.* 8,520,000
145,000 Jones Intercable, Inc. - Class A* 7,839,062
- -------------------------------------------------------------------------------
16,359,062
MEDICAL - MEDICAL/DENTAL SERVICES (1.71%)
1,400,000 Omnicare, Inc. 13,475,000
- -------------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (0.89%)
890,000 Perrigo Co.* 7,008,750
- -------------------------------------------------------------------------------
MEDICAL/DENTAL - SUPPLIES (4.48%)
480,000 Ocular Sciences, Inc.* 9,300,000
1,200,000 Sola International, Inc.* 18,600,000
540,000 Steris Corp.* 7,425,000
- -------------------------------------------------------------------------------
35,325,000
METAL PRODUCTS & FABRICATION (1.09%)
800,000 NS Group, Inc.* 8,600,000
- -------------------------------------------------------------------------------
OFFICE EQUIPMENT - EQUIPMENT & AUTOMATION (1.08%)
441,800 HON Industries, Inc. 8,504,650
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
23
- -------------------------------------------------------------------------------
BERGER SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (87.03%) - CONTINUED
OIL & GAS - DRILLING (1.65%)
820,400 Marine Drilling Companies* $ 12,972,575
- -------------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (2.25%)
3,600,000 Key Energy Services, Inc.* 17,775,000
- -------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (4.97%)
565,000 Chieftain International, Inc.* 10,735,000
346,200 Evergreen Resources, Inc.* 8,330,437
507,000 Mitchell Energy & Development Corp.* 11,914,500
250,000 Newfield Exploration Co.* 8,234,375
- -------------------------------------------------------------------------------
39,214,312
RETAIL - APPAREL/SHOE (1.92%)
300,000 Payless ShoeSource, Inc.* 15,150,000
- -------------------------------------------------------------------------------
RETAIL - MAIL ORDER & DIRECT (0.62%)
480,000 Spiegel, Inc. - Class A* 4,860,000
- -------------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (1.84%)
2,150,000 Pier 1 Imports, Inc. 14,512,500
- -------------------------------------------------------------------------------
RETAIL - RESTAURANTS (0.67%)
660,100 Landry's Seafood Restaurants, Inc.* 5,280,800
- -------------------------------------------------------------------------------
SHOES & RELATED APPAREL (2.97%)
2,060,000 Wolverine World Wide, Inc.# 23,432,500
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (2.60%)
700,000 Aspect Telecommunications Corp.* 11,878,125
625,000 Remec, Inc.* 8,593,750
- -------------------------------------------------------------------------------
20,471,875
TELECOMMUNICATIONS - SERVICES (0.66%)
1,000,000 General Communication, Inc.* 5,218,750
- -------------------------------------------------------------------------------
TRANSPORTATION - SHIPPING (1.15%)
565,000 Knightsbridge Tankers Ltd. 9,040,000
- -------------------------------------------------------------------------------
TRUCKS & PARTS - HEAVY DUTY (1.13%)
675,000 Stewart & Stevenson Services, Inc. 8,859,375
- -------------------------------------------------------------------------------
Total Common Stock
(cost $666,155,981) 686,162,882
</TABLE>
<TABLE>
<CAPTION>
September 30, 1999
- -------------------------------------------------------------------------------
PAR VALUE VALUE
- -------------------------------------------------------------------------------
<S> <C>
U.S. GOVERNMENT AGENCY OBLIGATIONS (10.76%)
$15,000,000 FHLMC Discount Note - 5.15%
10/15/1999 $ 14,969,958
- -------------------------------------------------------------------------------
30,000,000 FNMA Discount Note - 5.12%
10/25/1999 29,897,600
- -------------------------------------------------------------------------------
40,000,000 FNMA Discount Note - 5.22%
10/8/1999 39,959,400
- -------------------------------------------------------------------------------
Total U.S. Government Agency Obligations
(cost $84,826,958) 84,826,958
REPURCHASE AGREEMENT (1.37%)
$10,812,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999 to
be repurchased at $10,813,457 on
October 1, 1999, collateralized by
FNMA Agency Note, 5.25% -
January 10, 2001 with a
value of $11,029,238 10,812,000
Total Repurchase Agreement
(cost $10,812,000) 10,812,000
Total Investments (cost $761,794,939) (99.16%) 781,801,840
Total Other Assets, Less Liabilities (0.84%) 6,607,864
Net Assets (100.00%) $788,409,704
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
# The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with affiliates for the year ended September
30, 1999.
<TABLE>
<CAPTION>
Splash
Technology Wolverine
Holdings, Inc. World Wide, Inc.
- -------------------------------------------------------------------------------
<S> <C> <C>
Market Value at 9/30/98 $ 2,565,000 $ 3,534,375
Purchases at Cost 4,205,674 19,323,742
Sales at Cost -- --
Change in Unrealized Appreciation/
(Depreciation) (2,483,174) 574,383
Market Value at 9/30/99 4,287,500 $ 23,432,500
Dividend Income -- 155,536
Realized Gain (Loss) -- --
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
24
- -------------------------------------------------------------------------------
[PHOTO] BERGER MID CAP GROWTH FUND
Ticker Symbol - BEMGX
Fund Number - 215
- -------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY AMY K. SELNER
- -------------------------------------------------------------------------------
PERFORMANCE
For the 12-month period ended September 30, 1999, the Berger Mid Cap Growth Fund
(the "Fund") had an outstanding total return of 102.76%,(1) which was four times
higher than the 25.44% total return of the Standard & Poor's (S&P) MidCap 400
Index.(2)
As we began our fiscal year in October 1998, the price of mid cap stocks was
depressed, the result of a summer/fall market correction. Beginning October 8,
1998, and extending through the end of that year, mid caps bounced back in
tandem with large caps. Technology stocks led the way.
From January through March 1999, only large cap stocks performed well, an echo
of 1998 market trends. During this period, stocks in the S&P MidCap 400 Index
fell 7%, while larger cap stocks in the S&P 500 Index(3) rose 4%.
The market broadened in the second calendar quarter 1999, and both mid and small
cap stocks registered solid relative performance. As a group, mid caps had twice
the gains of large caps. The S&P MidCap 400 Index gained 14% versus the S&P 500
Index's gain of 7%.
In the quarter ended September 30, 1999, the stock market faltered on renewed
interest rate fears, and both mid cap and large cap stocks performed poorly.
YEAR IN REVIEW
Despite this up and down year for mid cap stocks, our Fund was able to
considerably outperform its benchmark mainly because of stock selection.
The Fund remains heavily weighted in industries in which growth prospects are
the most visible and consistent. Technology, our largest sector, continues to
have the best long-term growth fundamentals. We believe the growth prospects are
explosive for the Internet infrastructure in particular. Therefore, we continue
to focus on telecommunication and broadband companies, which provide the
plumbing that enables broad acceptance of Internet applications and services.
Both Verisign, in Internet infrastructure, and Applied Micro Circuits, in
telecommunications, have been strong holdings.
We have seen a pick-up in the information technology services group. We believe
some large contract orders for Internet-related companies may revive this
Y2K-depressed group. Semiconductor stocks continued to show solid revenue
growth, and improving Asian economies should help sustain this trend.
Our Fund lowered its exposure to the healthcare group over this fiscal year.
Uncertainty surrounding prescription drug benefits and the government's impact
on drug pric ing kept a lid on these stocks. One bright spot in the sector was
biotechnology stocks. Among our holdings, Medimmune and IDEC Pharmaceuticals
helped boost Fund performance.
Our energy weighting contributed to the Fund's outperformance in the first six
months of 1999. Although there are worries that OPEC will irrationally increase
oil production, we remain positive on the long-term supply/demand fundamentals
within the sector.
Initial public offerings (IPO's) also made a positive contribution to the Fund's
performance during the year, although it is unclear whether this market for
IPO's will continue into next year.
LOOKING AHEAD
Going forward, we continue to favor the technology sector, particularly the
telecommunication and broadband infrastructure companies that support the
Internet. We recognize that the fear of Y2K slowdown within the enterprise
software group is probably fully discounted and believe the Internet-enabler
software companies, which are companies that make the technologies that enable
the Internet to work, will be strong performers into next year. We expect
semiconductors to continue their strong fundamentals into next year as well.
We remain cautiously optimistic about the market as we enter the final quarter
of 1999. The U.S. economy is undeniably robust and international economies are
picking up. The Federal Reserve Board left interest rates unchanged at their
early October meeting. But, if inflation picks up, the Fed may raise rates
again. However, inflation fears have been stemmed year to date.
The growth prospects, relative valuations and greater liquidity of mid cap
stocks make them a very attractive segment of the market going forward. We
believe that our Fund's bias toward mid cap technology companies will be
beneficial as we enter 2000. Global economies appear to be strengthening in
concert, which is a positive sign for technology companies because they often
garner more than 50% of earnings internationally.
(1.) Past performance does not guarantee future results. 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 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
25
- -------------------------------------------------------------------------------
BERGER MID CAP GROWTH FUND
- -------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- -------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER MID CAP GROWTH FUND VS. S&P 400
MIDCAP INDEX AND COST OF LIVING INDEX
[GRAPH}
<TABLE>
<CAPTION>
Berger Mid Cap S&P 400 Cost of
Growth Fund MidCap 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 $10,062 $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
6/30/99 $21,166 $12,723 $10,304
9/30/99 $22,162 $11,657 $10,360
</TABLE>
BERGER MID CAP GROWTH FUND*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ----------------------------------------------
1 Year 102.76%
Life of Fund 57.57%
(12/31/97)
* 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.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.45%)
BANKS - NORTHEAST (2.25%)
20,500 Peoples Heritage Financial
Group, Inc. $ 340,812
2,900 U.S. Trust Corp. 233,087
- -------------------------------------------------------------------------------
573,899
BANKS - WEST/SOUTHWEST (1.53%)
7,100 Zions Bancorp. 391,387
- -------------------------------------------------------------------------------
BUILDING - HEAVY CONSTRUCTION (2.15%)
13,000 Dycom Industries, Inc.* 548,437
- -------------------------------------------------------------------------------
COMMERCIAL SERVICES - ADVERTISING (2.67%)
6,400 Lamar Advertising Co. - Class A* 316,800
6,000 TMP Worldwide, Inc.* 365,250
- -------------------------------------------------------------------------------
682,050
COMMERCIAL SERVICES - SCHOOLS (1.21%)
15,500 Devry, Inc.* 310,000
- -------------------------------------------------------------------------------
COMPUTER - SERVICES (1.10%)
3,600 Internap Network Services Corp.* 160,650
3,200 Whittman-Hart, Inc.* 124,100
- -------------------------------------------------------------------------------
284,750
COMPUTER SOFTWARE - EDUCATIONAL/ENTERTAIN (0.58%)
6,000 CBT Group PLC ADR* 147,750
- -------------------------------------------------------------------------------
COMMON STOCK (92.45%)
COMPUTER SOFTWARE - ENTERPRISE (1.82%)
21,500 New Era of Networks, Inc.* 464,937
- -------------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (5.43%)
7,500 ASM Lithography Holding NV* 502,968
1,100 KLA-Tencor Corp.* 71,500
8,000 Lam Research Corp.* 488,000
9,200 Teradyne, Inc.* 324,300
- -------------------------------------------------------------------------------
1,386,768
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (6.90%)
7,100 Applied Micro Circuits Corp.* 404,700
2,500 Conexant Systems, Inc.* 181,640
5,640 Linear Technology Corp. 331,526
5,800 SDL, Inc.* 442,612
4,700 Vitesse Semiconductors Corp.* 401,262
- -------------------------------------------------------------------------------
1,761,740
ELECTRONIC PRODUCTS - MISCELLANEOUS (1.79%)
9,500 Powerwave Technologies, Inc.* 458,078
- -------------------------------------------------------------------------------
INTERNET - E*COMMERCE (1.63%)
3,200 CareInsite, Inc.* 162,000
1,800 eBay, Inc.* 253,912
- -------------------------------------------------------------------------------
415,912
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
26
- -------------------------------------------------------------------------------
BERGER MID CAP GROWTH FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
SHARES VALUE
- -------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.45%) - CONTINUED
INTERNET - ISP/CONTENT (2.99%)
3,100 Commerce One, Inc.* $ 302,928
6,000 Engage Technologies Inc.* 226,125
4,600 Homestore.Com, Inc.* 191,762
400 Internet Initiative Japan Inc. ADR* 25,600
100 Yahoo! Inc.* 17,950
- -------------------------------------------------------------------------------
764,365
INTERNET - NETWORK SECURITY/SOLUTIONS (7.27%)
1,800 Inktomi Corporation* 216,056
2,000 Juniper Networks, Inc.* 366,000
4,200 Sapient Corp.* 395,850
15,700 USWeb Corp.* 538,706
3,200 VeriSign, Inc.* 340,800
- -------------------------------------------------------------------------------
1,857,412
INTERNET - SOFTWARE (6.17%)
2,000 Ariba, Inc.* 289,000
4,100 CMGI Inc.* 420,250
2,900 Digital Insight Corp.* 43,500
5,000 Kana Communications, Inc.* 249,375
11,800 SilverStream Software, Inc.* 367,275
4,800 Software.com, Inc.* 205,800
- -------------------------------------------------------------------------------
1,575,200
MEDIA - CABLE TV (3.53%)
10,700 Cox Communications, Inc.* 446,725
5,000 EchoStar Communications Corp.* 454,062
- -------------------------------------------------------------------------------
900,787
MEDIA - RADIO/TV (4.60%)
2,306 Clear Channel Communications, Inc.* 184,191
6,300 Cox Radio, Inc. - Class A* 374,850
3,300 Hispanic Broadcasting Corp.* 251,212
4,500 Univision Communications, Inc. - Class A* 366,187
- -------------------------------------------------------------------------------
1,176,440
MEDICAL - BIOMED/GENETICS (4.92%)
3,200 Genentech, Inc.* 468,200
5,200 IDEC Pharmaceuticals Corp.* 488,962
3,000 Medimmune, Inc.* 298,968
- -------------------------------------------------------------------------------
1,256,130
MEDICAL - ETHICAL DRUGS (1.18%)
10,500 Shire Pharmaceuticals Group PLC* 302,531
- -------------------------------------------------------------------------------
MEDICAL - GENERIC DRUGS (3.20%)
22,000 Mylan Laboratories, Inc. 404,250
13,550 Watson Pharmaceuticals, Inc.* 414,121
- -------------------------------------------------------------------------------
818,371
MEDICAL - MEDICAL/DENTAL SERVICES (2.89%)
13,700 Accredo Health, Inc.* 431,550
12,500 TLC The Laser Center Inc.* 307,812
- -------------------------------------------------------------------------------
739,362
COMMON STOCK (92.45%) - CONTINUED
OIL & GAS - DRILLING (2.53%)
15,200 ENSCO International Inc. 274,550
17,000 Noble Drilling Corp.* 371,875
- -------------------------------------------------------------------------------
646,425
OIL & GAS - FIELD SERVICES (3.01%)
13,300 BJ Services Co.* 423,106
18,000 Veritas DGC, Inc.* 346,500
- -------------------------------------------------------------------------------
769,606
OIL & GAS - MACHINERY/EQUIPMENT (1.82%)
14,500 Weatherford International, Inc.* 464,000
- -------------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (1.88%)
13,000 Barrett Resources Corp.* 480,187
- -------------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (0.56%)
3,500 Ann Taylor Stores, Inc.* 143,062
- -------------------------------------------------------------------------------
RETAIL - DISCOUNT & VARIETY (1.88%)
12,000 Dollar Tree Stores, Inc.* 479,250
- -------------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (1.07%)
8,850 Dollar General Corp. 273,243
- -------------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (5.48%)
5,200 Copper Mountain Networks, Inc.* 455,650
4,500 JDS Uniphase Corp.* 512,156
4,000 Redback Networks Inc.* 432,000
- -------------------------------------------------------------------------------
1,399,806
TELECOMMUNICATIONS - SERVICES (7.34%)
6,500 Covad Communications Group, Inc.* 283,359
12,500 McLeodUSA Inc. - Class A* 532,031
19,000 Metromedia Fiber Network, Inc.* 465,500
20,100 Viatel, Inc.* 594,206
- -------------------------------------------------------------------------------
1,875,096
UTILITY - WATER SUPPLY (1.07%)
15,900 Azurix Corp.* 273,272
Total Common Stock
(cost $19,894,499) 23,620,253
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (6.26%)
$1,600,000 Federal National Mortgage Association
Discount Note - 5.22%, 10/8/1999 1,598,400
Total U.S. Government Agency Obligations
(cost $1,598,376) 1,598,400
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
27
- -------------------------------------------------------------------------------
BERGER MID CAP GROWTH FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- -------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------
PAR VALUE VALUE
- -------------------------------------------------------------------------------
<S> <C>
REPURCHASE AGREEMENT (1.25%)
$320,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999
to be repurchased at $320,043 on
October 1, 1999, collateralized by
FHLMC Agency Note, 6.25% -
May 18, 2004, with a value
of $330,825 $ 320,000
Total Repurchase Agreement
(cost $320,000) 320,000
Total Investments (cost $21,812,875) (99.96%) 25,538,653
Total Other Assets, Less Liabilities (0.04%) 11,459
Net Assets (100.00%) $ 25,550,112
- -------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
PLC - Public Limited Company.
ADR - American Depositary Receipt.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
28
- --------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
Ticker Symbol BEMVX
Fund Number 216
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY THOMAS M. PERKINS AND
ROBERT H. PERKINS
- --------------------------------------------------------------------------------
PERFORMANCE
We are pleased to report that in its first full year, which ended September 30,
1999, the Berger Mid Cap Value Fund (the "Fund") gained 31.12%(1) compared with
25.44% for the Standard & Poor's (S&P) MidCap 400 Index,(2) 10.00% for the S&P
Midcap Value Index(3) and 27.80% for the S&P 500 Index.(4) Our Fund outperformed
these indices primarily because we purchased severely depressed stocks in the
technology and energy sectors in late 1998 and early 1999. Subsequently, we had
strong appreciation in those stocks.
The S&P MidCap indexes underperformed large cap market indices for the year
because larger growth stocks continued their multiyear run up in prices.
Although the S&P MidCap 400 Index outpaced the S&P 500 Index every year (except
1990) from 1988 through 1993, it has trailed the S&P 500 Index every year since
then. This period of underperformance has resulted in the most attractive
relative valuation levels for mid cap and small cap value stocks we've seen in
this decade. Historically, after similar extended periods of underperformance,
value stocks have had several years of relatively good returns. This could occur
in the coming year, especially since world economic prospects are positive.
YEAR IN REVIEW
Since March 31, the biggest change in our sector weighting was the increase of
energy holdings from 8.8% of Fund net assets to 11.8%. This increase was due
primarily to appreciation in the price of oil and gas producer stocks we
purchased in late 1998/early 1999. At that time, energy prices had fallen to
about one-half current levels. Prices of some of these stocks, including
Mitchell Energy and Development, picked up as much as 90% between March 31 and
September 30.
The financial sector remains our largest sector, constituting 27.1% of the
portfolio. Unfortunately, financial stocks generally underperformed as interest
rates unexpectedly continued to rise. Ironically, in almost all cases, earnings
have grown in line with expectations, and many of these companies are raising
dividends and buying back stock. We expect earnings to be favorable as long as
the economy is strong. With valuations depressed to levels not seen in several
years, we used the period of weakness to add to our regional bank holdings. Bank
stocks haven't been this cheap since 1994. They subsequently outperformed in
1995 and 1996 as interest rate pressure eased. Real estate investment trusts
(REITs) also continue to be an area of emphasis as earnings and dividends are
growing, current yields are over 9%, and the stocks are selling somewhat below
net asset value.
Technology is our second-largest sector. Our practice of ferreting out fallen
growth stocks has been especially rewarding here. The growth pattern of
technology companies can be bumpy. As they recover from the bumps and return to
their secular growth paths, the stocks of these companies often regain premium
valuations and have explosive appreciation. At this point, we usually liquidate
part or all of our positions in the stocks. For example, we reduced holdings in
Analog Devices, Tellabs and Methode Electronics and eliminated Sanmina after
achieving gains of 100% to 300%. If these companies experience temporary
problems again in the future, we could reinvest. In the meantime, some of the
proceeds of these sales were deployed to other issues that more recently fell
into what we think is only temporary market disfavor such as Andrew, Aspect
Telecommunications, Comdisco and Keane. When we purchased these stocks, all were
down at least 25% from their recent highs; three were down more than 60%.
LOOKING AHEAD
Most stocks are down about 20% from their highs of last year and are reflecting
more reasonable valuations. Because of this price correction, we have positive,
though modest, expectations for the market. Moreover, international economic
recovery is more solidly in place, and we still anticipate an end to the rise in
interest rates.
We are more comfortable with mid and small cap value stocks than we are with the
overall market. The poor third-quarter performance of these issues improved
their relatively favorable risk/reward relationships. As a reflection of their
relative attractiveness, our portfolio companies, as of September 30, were
priced under 18 times estimated 1999 earnings compared with 27 times for the S&P
500 Index. And, if we have global economic growth, earnings comparisons for our
stocks should be favorable. We remain confident in following our discipline of
investing in relatively undervalued, well-financed companies with good growth
prospects and above-average dividends.
1. Past performance does not guarantee future results. 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 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.
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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
29
- --------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER MID CAP VALUE FUND VS.
S&P 400 MIDCAP INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Mid S&P 400 Cost of
Cap Value MidCap Living
Fund Index Index
<S> <C> <C> <C>
8/12/98 $10,000 $10,000 $10,000
9/30/98 $9,330 $8,910 $10,049
12/31/98 $11,440 $11,416 $10,067
3/31/99 $11,218 $10,688 $10,184
6/30/99 13,550 12,199 10,214
9/30/99 $12,234 $11,176 $10,239
</TABLE>
BERGER MID CAP VALUE FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- -------------------------------------
<C> <C>
1 Year 31.12%
- -------------------------------------
Life of Fund 19.34%
- -------------------------------------
</TABLE>
(8/12/98)
*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.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%)
AEROSPACE/DEFENSE - EQUIPMENT (0.63%)
5,000 The B.F. Goodrich Co. $ 145,000
- ---------------------------------------------------------------------------
BANKS - MIDWEST (1.34%)
8,500 Associated Banc-Corp. 307,593
- ---------------------------------------------------------------------------
BANKS - MONEY CENTER (1.25%)
6,500 Citigroup Inc. 286,000
- ---------------------------------------------------------------------------
BANKS - NORTHEAST (1.16%)
16,000 Peoples Heritage Financial Group, Inc. 266,000
- ---------------------------------------------------------------------------
BANKS - SOUTHEAST (3.20%)
8,000 CCB Financial Corp. 333,000
6,000 Compass Bancshares, Inc. 150,000
7,000 SouthTrust Corp. 251,125
- ---------------------------------------------------------------------------
734,125
BANKS - SUPER REGIONAL (1.03%)
6,500 UnionBanCal Corp. 235,625
- ---------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.68%)
11,500 City National Corp. 385,968
- ---------------------------------------------------------------------------
BUILDING - CEMENT/CONCRETE/AGGREGATES (0.82%)
3,500 Southdown, Inc. 187,250
- ----------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%) - CONTINUED
BUILDING - CONSTRUCTION PRODUCTS/MISCELLANEOUS (0.82%)
12,000 U.S. Industries, Inc. $ 189,000
- ---------------------------------------------------------------------------
BUILDING - PAINT & ALLIED PRODUCTS (1.14%)
12,500 The Sherwin Williams Co. 261,734
- ---------------------------------------------------------------------------
BUILDING - RESIDENT/COMMERCIAL (0.48%)
5,000 Pulte Corp. 108,750
- ---------------------------------------------------------------------------
BUILDING PRODUCTS - WOOD (2.45%)
8,000 Georgia-Pacific Corp. (Timber Group) 183,000
9,000 Rayonier Inc. 378,000
- ---------------------------------------------------------------------------
561,000
CHEMICALS - PLASTICS (1.29%)
17,000 A. Schulman, Inc. 294,312
- ---------------------------------------------------------------------------
CHEMICALS - SPECIALTY (1.61%)
9,000 Cytec Industries, Inc.* 216,000
7,500 Millennium Chemicals Inc. 153,281
- ---------------------------------------------------------------------------
369,281
COMMERCIAL - LEASING COMPANIES (1.36%)
6,500 Comdisco, Inc. 125,531
6,000 GATX Corp. 186,375
- ---------------------------------------------------------------------------
311,906
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
30
- --------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- --------------------------------------------------------------------------------
SHARES VALUE
- --------------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%) - CONTINUED
COMMERCIAL SERVICES - MISCELLANEOUS (1.63%)
12,500 The Dun & Bradstreet Corp. $ 373,437
- ---------------------------------------------------------------------------
COMMERCIAL SERVICES - STAFFING (1.43%)
20,000 Interim Services Inc.* 327,500
- ---------------------------------------------------------------------------
COMPUTER - INTEGRATED SYSTEMS (0.73%)
21,000 Hypercom Corp.* 168,000
- ---------------------------------------------------------------------------
COMPUTER - PERIPHERAL EQUIPMENT (1.04%)
6,000 Adaptec, Inc.* 238,125
- ---------------------------------------------------------------------------
COMPUTER - SERVICES (3.05%)
26,500 Computer Horizons Corp.* 308,062
15,000 Convergys Corp.* 297,187
2,000 Shared Medical Systems Corp. 93,500
- ---------------------------------------------------------------------------
698,749
COMPUTER SOFTWARE - DESKTOP (0.68%)
17,000 Network Equipment Technologies, Inc.* 156,187
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (0.50%)
5,000 Keane, Inc.* 114,062
- ---------------------------------------------------------------------------
CONSUMER PRODUCTS - MISCELLANEOUS (1.29%)
15,500 Jostens, Inc. 296,437
- ---------------------------------------------------------------------------
DIVERSIFIED OPERATIONS (1.92%)
14,000 Pittway Corp. - Class A 441,000
- ---------------------------------------------------------------------------
ELECTRICAL - CONNECTORS (1.06%)
7,500 Methode Electronics, Inc. 141,562
2,000 Thomas & Betts Corp. 102,000
- ---------------------------------------------------------------------------
243,562
ELECTRONIC - MEASURING INSTRUMENTS (0.95%)
6,500 Tektronix, Inc. 217,750
- ---------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.67%)
1,500 Novellus Systems, Inc.* 101,156
8,000 Teradyne, Inc.* 282,000
- ---------------------------------------------------------------------------
383,156
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (0.56%)
2,500 Analog Devices, Inc.* 128,125
- ---------------------------------------------------------------------------
FINANCE - CONSUMER/COMMERCIAL LOANS (0.88%)
5,000 Household International, Inc. 200,625
- ---------------------------------------------------------------------------
FINANCE - EQUITY REIT (6.78%)
9,000 Crescent Real Estate Equities Co. 162,000
19,000 Highwoods Properties, Inc. 491,625
22,000 Liberty Property Trust 499,125
15,000 Mack-Cali Realty Corp. 402,187
- ---------------------------------------------------------------------------
1,554,937
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%) - CONTINUED
FINANCE - INVESTMENT BANKERS (1.82%)
7,000 Legg Mason, Inc. $ 268,187
2,200 Merrill Lynch & Co.,Inc. 147,812
- ---------------------------------------------------------------------------
415,999
FINANCE - PUBLIC INVESTMENT FUND - FOREIGN (2.51%)
26,000 Emerging Markets
Telecommunications Fund* 268,125
31,000 Morgan Stanley Asia Pacific
Fund, Inc.* 306,125
- ---------------------------------------------------------------------------
574,250
FINANCE - PUBLICLY TRADED INVESTMENT FUND (1.20%)
9,000 H & Q Healthcare Investors Fund* 146,812
9,000 H & Q Life Science Investments Fund* 127,125
- ---------------------------------------------------------------------------
273,937
FINANCIAL SERVICES - MISCELLANEOUS (1.97%)
12,500 Heller Financial, Inc. 281,250
7,500 MBNA Corp. 171,093
- ---------------------------------------------------------------------------
452,343
INSURANCE - PROPERTY/CASUALTY/TITLE (2.30%)
5,000 Everest Reinsurance Holdings, Inc. 119,062
11,000 IPC Holdings, Ltd. 206,250
14,000 Old Republic International Corp. 202,125
- ---------------------------------------------------------------------------
527,437
LEISURE - TOYS/GAMES/HOBBY (1.17%)
12,500 Hasbro, Inc. 267,968
- ---------------------------------------------------------------------------
MEDIA - NEWSPAPERS (0.41%)
8,000 Hollinger International, Inc. - Class A 95,000
- ---------------------------------------------------------------------------
MEDIA - RADIO/TV (1.21%)
6,000 CBS Corp. 277,500
- ---------------------------------------------------------------------------
MEDICAL - DENTAL - SUPPLIES (2.14%)
21,000 Sola International, Inc.* 325,500
12,000 Steris Corp.* 165,000
- ---------------------------------------------------------------------------
490,500
MEDICAL - MEDICAL/DENTAL SERVICES (1.26%)
30,000 Omnicare, Inc. 288,750
- ---------------------------------------------------------------------------
MEDICAL - OUTPATIENT/HOME CARE (0.58%)
22,000 Healthsouth Corp.* 133,375
- ---------------------------------------------------------------------------
MEDICAL - WHOLESALE DRUG/SUNDRIES (1.04%)
9,000 Bergen Brunswig Corp. - Class A 93,375
5,000 McKesson HBOC, Inc. 145,000
- ---------------------------------------------------------------------------
238,375
OFFICE EQUIPMENT - EQUIPMENT & AUTOMATION (1.30%)
15,500 HON Industries, Inc. 298,375
- ---------------------------------------------------------------------------
OIL & GAS - DRILLING (1.34%)
14,000 Noble Drilling Corp.* 306,250
- ---------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
31
- --------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
- ---------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%) - CONTINUED
OIL & GAS - FIELD SERVICES (1.51%)
70,000 Key Energy Group* $ 345,625
- ---------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL SPECIALTY (1.77%)
7,500 Murphy Oil Corp. 405,468
- ---------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (4.92%)
5,000 Barrett Resources Corp.* 184,687
9,000 Devon Energy Corp. 372,937
8,000 Mitchell Energy & Development Corp.
- Class A 195,500
14,000 Mitchell Energy & Development Corp.
- Class B* 329,000
5,000 Santa Fe Snyder Corp.* 45,000
- ---------------------------------------------------------------------------
1,127,124
OIL & GAS - U.S. INTEGRATED (2.27%)
6,500 Kerr-McGee Corp. 357,906
7,000 Occidental Petroleum Corp. 161,875
- ---------------------------------------------------------------------------
519,781
RETAIL - APPAREL/SHOE (3.78%)
10,000 Payless ShoeSource, Inc.* 505,000
18,000 Ross Stores Inc. 362,250
- ---------------------------------------------------------------------------
867,250
RETAIL - DEPARTMENT STORES (0.30%)
4,500 Saks Inc.* 68,343
- ---------------------------------------------------------------------------
RETAIL - DRUG STORES (0.52%)
4,000 Longs Drug Stores Corp. 119,500
- ---------------------------------------------------------------------------
RETAIL - MISCELLANEOUS DIVERSIFIED (1.27%)
43,000 Pier 1 Imports, Inc. 290,250
- ---------------------------------------------------------------------------
SHOES & RELATED APPAREL (1.54%)
31,000 Wolverine World Wide, Inc. 352,625
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (2.79%)
10,000 Andrew Corp.* 173,750
16,000 Aspect Telecommunications Corp.* 271,500
10,000 Remec, Inc.* 137,500
1,000 Tellabs, Inc.* 56,937
- ---------------------------------------------------------------------------
639,687
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (92.06%) - CONTINUED
TEXTILE - APPAREL MANUFACTURING (0.49%)
4,000 Tommy Hilfiger Corp.* $ 112,750
- ---------------------------------------------------------------------------
TRUCKS & PARTS - HEAVY DUTY (1.32%)
23,000 Stewart & Stevenson Services, Inc. 301,875
- ---------------------------------------------------------------------------
UTILITY - GAS DISTRIBUTION (1.85%)
9,000 National Fuel Gas Co. 424,687
- ---------------------------------------------------------------------------
UTILITY - TELEPHONE (3.05%)
4,000 Telecomunicacoes Brasileiras
S.A. - Telebras* 299,750
4,500 Telephone and Data Systems, Inc. 399,656
- ---------------------------------------------------------------------------
699,406
Total Common Stock
(cost $19,002,351) 21,099,626
WARRANTS (0.78%)
- ---------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (0.78%)
9,500 Federated Department Stores Inc. - C* 178,718
- ---------------------------------------------------------------------------
Total Warrants
(cost $165,895) 178,718
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENT (5.37%)
$1,230,000 State Street Repurchase Agreement,
4.85%, dated September 30, 1999,
to be repurchased at $1,230,166 on
October 1, 1999, collateralized by
FNMA Agency Note, 5.65% - April 28,
2000, with a value of $1,259,188 1,230,000
Total Repurchase Agreement
(cost $1,230,000) 1,230,000
Total Investments (cost $20,398,246) (98.21%) 22,508,344
Total Other Assets, Less Liabilities (1.79%) 409,663
Net Assets (100.00%) $ 22,918,007
- ---------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
32
- --------------------------------------------------------------------------------
BERGER 100 FUND
- --------------------------------------------------------------------------------
Ticker Symbol BEONX
Fund Number 43
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY JOHN B. JARES AND
TINO R. SELLITTO
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger 100 Fund (the "Fund") had a solid total return of 38.96%(1) for the
year ended September 30, 1999, which outpaced the 27.80% return for the Standard
& Poor's (S&P) 500 Index(2) and the 25.44% gain registered by the S&P MidCap 400
Index(3) for the same period.
It has been a roller coaster year for the stock market. During the first few
months of our fiscal year (October 1998--early January 1999), the market staged
a broad rally that benefited the mid to large cap growth stocks favored by our
Fund. In mid-January, however, the market narrowed, and the very largest cap
companies once again dominated performance. The market was mixed during the
quarter ended June 30, largely as a result of growing concern about rising
interest rates and hints of potential inflation. In the last quarter of our
fiscal year, the market was nervous about interest rates once again and seemed
to lack direction. Most sectors and market indices were down.
YEAR IN REVIEW
Our Fund was able to perform against this difficult economic backdrop for two
reasons. First, we had strong performances from some individual stocks in our
portfolio. Second, we were heavily weighted in the technology sector.
Our largest sector is the technology sector, which includes telecommunications,
Internet, computer software and semiconductor manufacturers. Technology has
handily beaten all other sectors for the year and had the best overall
performance of any sector in the quarter ended September 30. Several of our
technology holdings turned in strong gains for the year, including Microsoft,
Intel, Texas Instruments and Xilinx. We continue to believe in the long-term
prospects for technology because of the vital role that it plays in the
operations of businesses around the world.
Energy was our second-best performing sector, even after a late sell-off in the
quarter ended September 30, 1999, that was attributable to investors focusing on
near-term earnings revisions rather than on industry growth prospects over the
next two years. Compared with the S&P 500 Index, we have been slightly
overweighted in this sector all year and ended the year with a total of 7.2% of
Fund net assets committed to energy stocks. We believe that there are strong
fundamentals in energy. Oil prices have gone up because of a decrease in oil
production and an increase in demand attributable to recovering world economies.
We continue to like the growth potential in the energy sector.
Among other Fund sectors, the healthcare and consumer groups had mixed results
over the year. We had solid performance from Genentech, a large biomedical
company with a strong product pipeline, but had poor performance from American
Home Products, a company currently facing litigation surrounding its Fen-Phen
drug, which is used to treat obesity. Among the consumer-related stocks in our
portfolio, Royal Caribbean Cruises and Best Buy Co. turned in strong
performances for the year.
Most stocks in the financial sector underperformed over the year primarily
because of the market's concerns about rising interest rates and year 2000
issues. Among our financial stocks, leading on-line broker Charles Schwab was
hit hard. We believe that the long-term prospects for Schwab are positive,
however, and we look for this company to excel in 2000. With our financial
holdings reduced to just over 3% of Fund net assets, we are now underweighted in
this sector.
LOOKING AHEAD
We expect that two factors could create market volatility in the near term. The
first is rising interest rates, which continue to nag the equity market. The
second is the market's focus on year 2000 issues, which we believe will cause
investor concern the rest of this year. The result may be that investors crowd
into large cap companies, which are perceived to be safer and more stable
investments. For the long term, the robust U.S. economic growth and the
continuing recovery of international economies should provide a solid backdrop
for strong corporate earnings.
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 mid-sized companies. One
cannot invest directly in an index.
<PAGE>
Annual Report September 30, 1999 Berger Funds
33
- --------------------------------------------------------------------------------
BERGER 100 FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER 100 FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger S&P 500 Cost of
100 Fund Index Living
Index
<S> <C> <C> <C>
9/30/89 $10,000 $10,000 $10,000
9/30/90 $8,316 $9,077 $10,816
9/30/91 $15,218 $11,901 $10,976
9/30/92 $16,279 $13,214 $11,304
9/30/93 $22,954 $14,929 $11,608
9/30/94 $22,149 $15,479 $11,952
9/30/95 $26,215 $20,079 $12,256
9/30/96 $28,668 $24,160 $12,624
9/30/97 $36,249 $33,927 $12,896
9/30/98 $30,422 $37,000 $13,066
9/30/99 $42,273 $47,283 $13,368
</TABLE>
BERGER 100 FUND*
AVERAGE ANNUAL TOTAL RETURN
<TABLE>
<CAPTION>
As of September 30, 1999
- --------------------------------------
<C> <C>
1 Year 38.96%
- --------------------------------------
5 Year 13.80%
- --------------------------------------
10 Year 15.51%
- --------------------------------------
</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.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%)
AUTO MANUFACTURERS - FOREIGN (0.79%)
169,000 Toyota Motor Corp. Sponsored ADR $ 10,541,375
- ---------------------------------------------------------------------------
BANKS - MONEY CENTER (0.65%)
156,800 Bank of America Corp. 8,731,800
- ---------------------------------------------------------------------------
BEVERAGE - SOFT DRINKS (2.80%)
378,600 Pepsico, Inc. 11,452,650
146,800 The Coca-Cola Co. 7,055,575
1,105,000 The Pepsi Bottling Group, Inc. 18,854,062
- ---------------------------------------------------------------------------
37,362,287
BUILDING PRODUCTS - WOOD (0.42%)
130,000 Willamette Industries, Inc. 5,606,250
- ---------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (2.41%)
469,200 Cisco Systems, Inc.* 32,169,525
- ---------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (0.48%)
100,000 Apple Computer, Inc.* 6,331,250
- ---------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.02%)
190,000 EMC Corp.* 13,573,125
- ---------------------------------------------------------------------------
COMPUTER - SERVICES (0.50%)
290,000 IMS Health, Inc. 6,615,625
- ---------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%) - CONTINUED
COMPUTER SOFTWARE - DESKTOP (5.01%)
737,300 Microsoft Corp.* $ 66,771,745
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (2.59%)
231,800 J.D. Edwards & Co.* 4,802,606
175,000 Oracle Corp.* 7,962,500
375,000 SAP A.G. ADR 14,156,250
100,000 VERITAS Software Corp.* 7,593,750
- ---------------------------------------------------------------------------
34,515,106
DIVERSIFIED OPERATIONS (2.79%)
360,000 Tyco International Ltd. 37,170,000
- ---------------------------------------------------------------------------
ELECTRONIC - MILITARY SYSTEMS (0.81%)
189,300 General Motors Corp. - Class H* 10,837,425
- ---------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (5.05%)
260,500 Applied Materials, Inc.* 20,286,437
87,500 ASM Lithography Holding N.V.* 5,867,968
194,600 KLA-Tencor Corp.* 12,649,000
235,000 Lam Research Corp.* 14,335,000
91,900 STMicroelectronics N.V. 6,800,600
208,600 Teradyne, Inc.* 7,353,150
- ---------------------------------------------------------------------------
67,292,155
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
34
- --------------------------------------------------------------------------------
BERGER 100 FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%) - CONTINUED
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (8.99%)
202,400 Altera Corp. $ 8,779,100
400,000 Intel Corp. 29,725,000
182,800 Maxim Integrated Products, Inc.* 11,533,537
83,700 SDL, Inc.* 6,387,356
422,000 Texas Instruments Inc. 34,709,500
439,400 Xilinx, Inc.* 28,794,431
- ---------------------------------------------------------------------------
119,928,924
FINANCE - CONSUMER/COMMERCIAL LOANS (0.25%)
94,000 Associates First Capital Corp. - Class A 3,384,000
- ---------------------------------------------------------------------------
FINANCE - INVESTMENT BANKERS (0.62%)
243,600 Charles Schwab Corp. 8,206,275
- ---------------------------------------------------------------------------
FINANCE - MORTGAGE & RELATED SERVICES (0.77%)
106,800 Fannie Mae 6,695,025
67,900 Freddie Mac 3,530,800
- ---------------------------------------------------------------------------
10,225,825
HOUSEHOLD - AUDIO/VIDEO (0.26%)
23,500 Sony Corp. ADR 3,526,468
- ---------------------------------------------------------------------------
INSURANCE - PROPERTY/CASUALTY/TITLE (0.97%)
149,500 American International Group, Inc. 12,997,156
- ---------------------------------------------------------------------------
INTERNET - E*COMMERCE (1.16%)
73,500 eBay, Inc.* 10,368,093
398,000 TD Waterhouse Group, Inc.* 5,149,125
- ---------------------------------------------------------------------------
15,517,218
INTERNET - ISP/CONTENT (4.29%)
330,000 America Online, Inc.* 34,320,000
97,700 Homestore.Com, Inc.* 4,072,868
54,300 Internet Initiative Japan Inc.* 3,475,200
125,500 Rhythms NetConnections Inc.* 4,329,750
61,500 Yahoo!, Inc.* 11,039,250
- ---------------------------------------------------------------------------
57,237,068
INTERNET - NETWORK SECURITY/SOLUTIONS (0.79%)
80,000 Internap Network Services Corp.* 3,570,000
37,755 Juniper Networks, Inc.* 6,909,165
- ---------------------------------------------------------------------------
10,479,165
INTERNET - SOFTWARE (1.55%)
83,000 CMGI, Inc.* 8,507,500
80,000 Liquid Audio, Inc.* 2,960,000
61,100 Phone.com, Inc.* 9,256,650
- ---------------------------------------------------------------------------
20,724,150
LEISURE - PRODUCTS (1.61%)
471,600 The Seagram Co. Ltd. 21,457,800
- ---------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%) - CONTINUED
LEISURE - SERVICES (5.17%)
222,000 Carnival Corp. $ 9,657,000
246,000 Cheap Tickets, Inc.* 7,964,250
850,000 Royal Caribbean Cruises Ltd. 38,250,000
173,000 SFX Entertainment, Inc.* 5,276,500
300,300 The Walt Disney Co. 7,770,262
- ---------------------------------------------------------------------------
68,918,012
MEDIA - CABLE TV (2.25%)
186,900 EchoStar Communications Corp.* 16,972,856
215,000 Time Warner, Inc. 13,061,250
- ---------------------------------------------------------------------------
30,034,106
MEDIA - RADIO/TV (5.11%)
130,000 AMFM, Inc.* 7,913,750
210,000 AT&T Corp. - Liberty Media Group* 7,796,250
454,200 Clear Channel Communications, Inc.* 36,279,225
550,000 Infinity Broadcasting Corp.* 16,121,875
- ---------------------------------------------------------------------------
68,111,100
MEDICAL - BIOMED/GENETICS (3.32%)
76,340 Amgen, Inc.* 6,221,710
260,200 Genentech, Inc.* 38,070,512
- ---------------------------------------------------------------------------
44,292,222
MEDICAL - DRUG/DIVERSIFIED (1.58%)
101,900 Bristol-Myers Squibb Co. 6,878,250
213,400 Warner-Lambert Co. 14,164,425
- ---------------------------------------------------------------------------
21,042,675
MEDICAL - ETHICAL DRUGS (2.91%)
317,400 American Home Products Corp. 13,172,100
400,000 Eli Lilly & Co. 25,600,000
- ---------------------------------------------------------------------------
38,772,100
MEDICAL - MEDICAL/DENTAL SUPPLIES (0.68%)
137,500 Bausch & Lomb, Inc. 9,066,406
- ---------------------------------------------------------------------------
MEDICAL - PRODUCTS (2.01%)
500,100 Guidant Corp.* 26,817,862
- ---------------------------------------------------------------------------
OIL & GAS - DRILLING (1.55%)
684,000 ENSCO International, Inc. 12,354,750
270,000 Transocean Offshore, Inc. 8,268,750
- ---------------------------------------------------------------------------
20,623,500
OIL & GAS - FIELD SERVICES (1.83%)
310,000 Halliburton Co. 12,710,000
188,200 Schlumberger Ltd. 11,727,212
- ---------------------------------------------------------------------------
24,437,212
OIL & GAS - INTERNATIONAL INTEGRATED (1.11%)
250,000 Royal Dutch Petroleum Co. -
NY Shares 14,765,625
- ---------------------------------------------------------------------------
OIL & GAS - PRODUCTION/PIPELINE (0.53%)
170,000 Enron Corp. 7,012,500
- ---------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
35
- --------------------------------------------------------------------------------
BERGER 100 FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%) - CONTINUED
OIL & GAS - U.S. EXPLORATION & PRODUCTION (1.32%)
480,000 Burlington Resources, Inc. $ 17,640,000
- ---------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (0.84%)
385,000 USX-Marathon Group 11,261,250
- ---------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (0.84%)
233,600 International Paper Co. 11,227,400
- ---------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (0.81%)
93,500 Abercrombie & Fitch Co.* 3,184,843
197,000 Intimate Brands, Inc. 7,670,687
- ---------------------------------------------------------------------------
10,855,530
RETAIL - CONSUMER ELECTRIC (1.88%)
250,000 Best Buy Co., Inc.* 15,515,625
225,600 Circuit City Stores, Inc. 9,517,500
- ---------------------------------------------------------------------------
25,033,125
RETAIL - MAJOR DISCOUNT CHAINS (2.16%)
180,000 Costco Wholesale Corp.* 12,960,000
265,000 Dayton-Hudson Corp. 15,916,562
- ---------------------------------------------------------------------------
28,876,562
RETAIL - SUPER/MINI MARKETS (2.14%)
422,900 Safeway, Inc.* 16,096,631
565,000 The Kroger Co.* 12,465,312
- ---------------------------------------------------------------------------
28,561,943
RETAIL/WHOLESALE - BUILDING PRODUCTS (0.18%)
50,000 Lowes Cos., Inc. 2,437,500
- ---------------------------------------------------------------------------
RETAIL/WHOLESALE - COMPUTERS/CELLULAR (0.82%)
211,000 Tandy Corp. 10,906,062
- ---------------------------------------------------------------------------
SOAP & CLEANING PREPARATIONS (1.09%)
154,500 Procter & Gamble Co. 14,484,375
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (2.35%)
523 NTT Mobile Communications
Network, Inc. 10,323,338
187,500 Sprint Corp. (PCS Group)* 13,980,468
116,000 VoiceStream Wireless Corp.* 7,159,375
- ---------------------------------------------------------------------------
31,463,181
TELECOMMUNICATIONS - EQUIPMENT (6.74%)
62,500 JDS Uniphase Corp.* 7,113,281
411,990 Lucent Technologies, Inc. 26,727,851
268,825 Motorola, Inc. 23,656,600
201,000 Nokia Corp. ADR 18,052,312
76,000 QUALCOMM Incorp.* 14,378,250
- ---------------------------------------------------------------------------
89,928,294
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (100.33%) - CONTINUED
TELECOMMUNICATIONS - SERVICES (3.57%)
100,000 AT&T Corp. $ 4,350,000
412,700 MCI WorldCom, Inc.* 29,662,812
458,000 Qwest Communications
International, Inc.* 13,539,625
- ---------------------------------------------------------------------------
47,552,437
UTILITY - WATER SUPPLY (0.96%)
747,900 Azurix Corp.* 12,854,531
Total Common Stock
(cost $1,218,591,060) 1,338,177,227
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.16%)
$2,132,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999,
to be repurchased at $2,132,287 on
October 1, 1999, collateralized by
FNMA Agency Note, 5.65% - April 28,
2000 with a value of $2,175,426. 2,132,000
Total Repurchase Agreement
(cost $2,132,000) 2,132,000
Total Investments (cost $1,220,723,060) (100.49%) 1,340,309,227
Total Other Assets, Less Liabilities (-0.49%) (6,515,532)
Net Assets (100.00%) $1,333,793,695
- ---------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
36
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
- --------------------------------------------------------------------------------
Ticker Symbol BBINX
Fund Number 349
- --------------------------------------------------------------------------------
BANK OF IRELAND ASSET
PORTFOLIO MANAGER COMMENTARY MANAGEMENT (U.S.) LTD.
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger/BIAM International Fund (the "Fund") had a total return of 29.64%(1)
for the year ended September 30, 1999 compared to 31.32% for the MSCI EAFE
Index.(2)
Global equity markets began the fiscal year last October with strong
performances, prompted primarily by interest rate reductions in both the U.S.
and Europe. In January, European markets benefited from the introduction of the
new single currency, the euro, and Japanese markets enjoyed positive investor
sentiment as a result of overseas buying. Markets in the rest of the Pacific
region turned in mixed results largely due to a pick-up in sentiment towards
Japan and the phenomenon of western multinationals seeking stakes in Asian
companies.
By the second calendar quarter 1999, the new euro currency received negative
press following a steady decline against the U.S. dollar and other major
currencies. We believe the euro is acting as a catalyst for change, however, and
increasing competition across Europe.
We remained extremely cautious about investing in Southeast Asia this year, even
though the acute financial crisis appears to be over. Although Japanese figures
have been strong, we believe Japan is a stock-picker's market because not all
companies will deliver on the promises they are making to investors. As a
result, we added to our Japanese holdings over the year on a stock-by-stock
basis.
YEAR IN REVIEW
Two groups of stocks led our portfolio higher this fiscal year: those in the
Growth in Telecommunications theme and Japanese-quoted stocks, particularly
those in our Technological Innovation theme.
The most notable performers among Growth in Telecommunications stocks for the
year were German-quoted Mannesmann and NTT Mobile Communications Network. NTT
Mobile Communications Network was among our strongest contributors during the
past six months. The company is Japan's dominant cellular phone operator and its
stock rose on the belief that the company will benefit from growing demand for
data transmission services through cellular phones. Two holdings - UK-quoted
Vodafone AirTouch Group and Telecom Italia - were involved in the merger and
acquisition activity that engulfed global telecommunication companies earlier in
the year.
Japanese-quoted stocks began their comeback early in our fiscal year and have
been our leading performers since March 31. Electronics exporters, in
particular, did well on the back of buoyant global demand for PCs, copiers,
printers, mobile phones and their related components. Leading the way was Murata
Manufacturing, which raised its net profit forecast by 25% for the coming year
and announced plans to increase its production capacity in response to demand
for the electronic components used in cellular phones. Semiconductor
manufacturer Rohm also increased its profit projections on the heels of
higher-than-expected sales of circuits for mobile communications equipment.
The primary reason we slightly lagged our benchmark for the year was the
performance of stocks in the Positive Banking Environment theme. After
strengthening early in the year, these stocks faltered the second half, largely
due to a negative interest rate environment. (Both the U.S. Federal Reserve
Board and the Bank of England raised interest rates in response to upward
pressure on inflation rates attributable to a stronger global economy.) One
example of the impact of interest-rate concerns was the response to National
Australia Bank. Even though the bank released results that were greeted
positively by analysts, its stock price fell.
LOOKING AHEAD
The pace of global economic change continues to accelerate and all of the
world's major economic regions are expanding. Europe is benefiting from the
combined effects of a monetary policy biased towards stimulating growth, a
competitive currency and general global recovery. The latest economic data in
the UK also reveal a significant acceleration in growth. Surveys show that
business confidence is increasing while unemployment is falling. Economic
activity in the Pacific Region continues its strong rebound.
As global growth gathers pace, we have been paying close attention to
developments in Japan. We are gradually beginning to be convinced that this
year's economic recovery may be sustainable. But, while many Japanese companies
are making very encouraging statements about restructuring, there is significant
execution risk for investors who are looking to take advantage of these changes.
There is a danger that Japanese companies may avoid making painful decisions
simply because their stock prices have recovered from their lows. Having said
that, we believe that there is real and substantial restructuring underway in
Japan and we are attempting to identify companies that are in the forefront of
this change.
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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
37
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER/BIAM INTERNATIONAL FUND VS. MSCI EAFE
INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<S> <C>
Berger/BIAM International Fund $32,984
MSCI EAFE Index $18,135
Cost of Living Index $13,368
</TABLE>
<TABLE>
<CAPTION>
BERGER/BIAM INTERNATIONAL FUND*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ----------------------------------------------------------
<S> <C>
1 Year 29.64%
- ----------------------------------------------------------
5 Year 11.74%
- ----------------------------------------------------------
10 Year 12.68%
- ----------------------------------------------------------
</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 November 7,
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.
<PAGE>
Berger Funds September 30, 1999 Annual Report
38
- --------------------------------------------------------------------------------
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
Ticker Symbol BEOOX
Fund Number 44
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger Growth and Income Fund (the "Fund") had a total return of
38.67%(1) for the year ended September 30, 1999. This was significantly
higher than the 27.80% gain registered by the Standard & Poor's (S&P) 500
Index(2) for the same period.
YEAR IN REVIEW
It was a roller coaster year for large, high-quality growth companies. After two
Federal Reserve Board interest rate cuts in the fourth calendar quarter 1998,
the S&P 500 and the Nasdaq soared to new highs. Strong economic growth and
moderate inflation in the first calendar quarter 1999 resulted in double-digit
gains for the S&P 500 Index. However, fears of rising interest rates and
potential inflation caused investors to move away from large growth stocks in
the quarter ended June 30. The third calendar quarter of 1999 was highly
volatile, resulting in negative returns for both our Fund and its benchmark
index.
Nevertheless, the Fund was able to deliver an outstanding gain and significantly
outperform the S&P 500 Index for the year. The key reason was our overweighting
in the technology sector, which includes telecommunications, cable and
computers. We continue to believe in the long-term prospects for technology.
Technology is the largest sector in the Fund and, over the year, we increased
the percentage of Fund net assets invested in this sector from 27.4% on
September 30, 1998, to 44.3% on September 30, 1999. Strong performances were
turned in from technology companies such as Intel, Microsoft, Nokia and Sun
Microsystems.
In the quarter ended September 30, 1999, the Fund benefited particularly from
strong performances by companies in other technology industries, especially
telecommunication and communication services. These included Sprint PCS Group,
EchoStar Communications and Clear Channel Communications, which now owns the
largest number of radio stations in the U.S. as well as a number of outdoor
advertising displays.
Early in the year, we identified signs of expansion in the energy sector, so we
increased our weighting. We believe that there are very strong fundamentals in
the energy sector. Oil prices have gone up because of a decrease in oil
production and an increase in demand attributable to recovering world economies.
We continue to like the growth potential in this sector. Among our best
performers in this sector were Halliburton and ENSCO International.
Despite the healthcare sector's poor performance during the last year, our Fund
had success in this sector primarily because of our biotechnology stocks. Late
last year, we identified several strong companies. Amgen has been one of the
most successful companies in the portfolio because of its strong drug pipeline.
Another company we added was Genentech, a biotechnology company that also has a
strong pipeline of new drugs, including Herceptin, used to treat metastatic
breast cancer, and Rituxan, used to treat non-Hodgkin's lymphoma. American Home
Products has been a strong performer for the first half of the year, but the
stock was hit hard in the third quarter 1999 because of the litigation
surrounding its Fen-Phen drug, which was used to fight obesity.
We have continued our underweighting in the Financial sector. This year the
sector's performance has been hit hard because of the market's concerns about
rising short-term interest rates. In addition, the poor performance in this
sector in the third quarter 1999 was attributable to the market's global effects
regarding Y2K. Those stocks most affected include First Tennessee National and
Charles Schwab. Although we expect some volatility in this sector for the
remainder of the year, we believe the long-term prospects of these individual
companies are good, and we look for them to excel in 2000.
LOOKING AHEAD
We expect that two factors could create market volatility over the near term.
The first factor is rising interest rates, which continue to nag the equity
market. The second factor is the market's focus on year 2000 issues that we
believe will cause investor concern the rest of the year. The result may be that
investors crowd into large cap companies, which are perceived to be safer and
more stable investments. For the long term, the robust U.S. economic growth and
the continuing recovery of international economies should provide a solid
backdrop for strong corporate earnings.
1. Past performance does not guarantee future results. 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
39
- --------------------------------------------------------------------------------
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
PERFORMANCE OVERVIEW
- --------------------------------------------------------------------------------
COMPARISON OF CHANGE IN VALUE OF BERGER GROWTH AND INCOME FUND VS.
S&P 500 INDEX AND COST OF LIVING INDEX
[GRAPH]
<TABLE>
<CAPTION>
Berger Growth and S&P 500 Cost of
Income Fund Index Living Index
<S> <C> <C> <C>
9/30/89 $10,000 $10,000 $10,000
9/30/90 $8,482 $9,077 $10,616
9/30/91 $13,467 $11,901 $10,976
9/30/92 $14,538 $13,214 $11,304
9/30/93 $18,388 $14,929 $11,608
9/30/94 $18,922 $15,479 $11,952
9/30/95 $21,580 $20,079 $12,256
9/30/96 $23,882 $24,160 $12,624
9/30/97 $32,135 $33,927 $12,896
9/30/98 $31,621 $37,000 $13,088
9/30/99 $43,849 $47,283 $13,368
</TABLE>
<TABLE>
<CAPTION>
BERGER GROWTH AND INCOME FUND*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- --------------------------------------------------
<C> <C>
1 Year 38.67%
- --------------------------------------------------
5 Year 18.30%
- --------------------------------------------------
10 Year 15.93%
- --------------------------------------------------
</TABLE>
*Performance figures are historical and do not represent future results.
Investment returns and principal value will vary, and you may have a loss when
you sell shares.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (81.87%)
AUTO MANUFACTURERS - FOREIGN (1.58%)
96,000 Toyota Motor Corp. Sponsored ADR $ 5,988,000
- ---------------------------------------------------------------------------
BANKS - SOUTHEAST (1.06%)
142,800 First Tennessee National Corp. 4,016,250
- ---------------------------------------------------------------------------
BANKS - SUPER REGIONAL (1.49%)
67,500 Northern Trust Corp. 5,636,250
- ---------------------------------------------------------------------------
BANKS - WEST/SOUTHWEST (1.30%)
89,300 Zions Bancorp. 4,922,662
- ---------------------------------------------------------------------------
CHEMICALS - BASIC (1.58%)
139,800 Akzo Nobel N.V. ADR* 5,976,450
- ---------------------------------------------------------------------------
COMPUTER - LOCAL NETWORKS (2.69%)
148,800 Cisco Systems, Inc.* 10,202,100
- ---------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (2.09%)
85,100 Sun Microsystems, Inc.* 7,914,300
- ---------------------------------------------------------------------------
COMPUTER - MEMORY DEVICES (1.31%)
69,500 Network Appliance, Inc.* 4,977,937
- ---------------------------------------------------------------------------
COMPUTER - SERVICES (1.05%)
174,300 IMS Health, Inc. 3,976,218
- ---------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (81.87%) - CONTINUED
COMPUTER SOFTWARE - DESKTOP (4.19%)
175,600 Microsoft Corp.* $ 15,902,787
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (1.82%)
182,500 SAP A.G. ADR 6,889,375
- ---------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (3.42%)
76,000 Applied Materials, Inc.* 5,918,500
51,800 STMicroelectronics N.V. 3,833,200
91,200 Teradyne, Inc.* 3,214,800
- ---------------------------------------------------------------------------
12,966,500
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (5.34%)
126,200 Intel Corp. 9,378,237
73,200 Linear Technology Corp. 4,302,787
80,000 Texas Instruments, Inc. 6,580,000
- ---------------------------------------------------------------------------
20,261,024
FINANCE - INVESTMENT BANKERS (1.90%)
138,000 Charles Schwab Corp. 4,648,875
41,900 The Goldman Sachs Group, Inc. 2,555,900
- ---------------------------------------------------------------------------
7,204,775
FINANCE - INVESTMENT MANAGEMENT (1.13%)
47,900 Morgan Stanley Dean Witter & Co. 4,272,081
- ---------------------------------------------------------------------------
HOUSEHOLD - AUDIO/VIDEO (1.05%)
26,500 Sony Corp. ADR 3,976,656
- ---------------------------------------------------------------------------
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (81.87%) - CONTINUED
INTERNET - ISP/CONTENT (0.98%)
37,600 Homestore.Com, Inc.* $ 1,567,450
12,100 Yahoo!, Inc.* 2,171,950
- ---------------------------------------------------------------------------
3,739,400
INTERNET - NETWORK SECURITY/SOLUTIONS (0.51%)
10,500 Juniper Networks, Inc.* 1,921,500
- ---------------------------------------------------------------------------
LEISURE - PRODUCTS (0.89%)
74,400 The Seagram Company Ltd. 3,385,200
- ---------------------------------------------------------------------------
LEISURE - SERVICES (1.70%)
104,400 Cheap Tickets, Inc.* 3,379,950
101,000 SFX Entertainment, Inc.* 3,080,500
- ---------------------------------------------------------------------------
6,460,450
MEDIA - CABLE TV (2.21%)
111,400 Comcast Corp. 4,442,075
43,500 EchoStar Communications Corp.* 3,950,343
- ---------------------------------------------------------------------------
8,392,418
MEDIA - RADIO/TV (1.94%)
250,800 Infinity Broadcasting Corp.* 7,351,575
- ---------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (4.84%)
95,000 Amgen, Inc.* 7,742,500
72,600 Genentech, Inc.* 10,622,287
- ---------------------------------------------------------------------------
18,364,787
MEDICAL - DRUG/DIVERSIFIED (1.09%)
61,200 Bristol-Myers Squibb Co. 4,131,000
- ---------------------------------------------------------------------------
MEDICAL - ETHICAL DRUGS (2.07%)
105,300 American Home Products Corp. 4,369,950
54,200 Eli Lilly & Co. 3,468,800
- ---------------------------------------------------------------------------
7,838,750
MEDICAL - PRODUCTS (1.70%)
120,000 Guidant Corp.* 6,435,000
- ---------------------------------------------------------------------------
OIL & GAS - DRILLING (1.46%)
307,700 ENSCO International, Inc. 5,557,831
- ---------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (2.83%)
130,400 Halliburton Co. 5,346,400
86,460 Schlumberger Ltd. 5,387,538
- ---------------------------------------------------------------------------
10,733,938
OIL & GAS - INTERNATIONAL INTEGRATED (2.51%)
126,200 Royal Dutch Petroleum Co. 7,453,687
32,900 Total Fina S.A. ADR 2,087,093
- ---------------------------------------------------------------------------
9,540,780
OIL & GAS - PRODUCTION/PIPELINE (3.55%)
198,000 Enron Corp. 8,167,500
141,700 The Williams Companies, Inc. 5,304,893
- ---------------------------------------------------------------------------
13,472,393
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (81.87%) - CONTINUED
OIL & GAS - U.S. EXPLORATION & PRODUCTION (2.63%)
186,800 Burlington Resources Inc. $ 6,864,900
129,700 Evergreen Resources, Inc.* 3,120,906
- ---------------------------------------------------------------------------
9,985,806
RETAIL - APPAREL/SHOE (1.41%)
137,340 Intimate Brands, Inc. 5,347,676
- ---------------------------------------------------------------------------
RETAIL - MAJOR DISCOUNT CHAINS (3.23%)
69,100 Costco Wholesale Corp.* 4,975,200
121,100 Dayton-Hudson Corp. 7,273,568
- ---------------------------------------------------------------------------
12,248,768
TELECOMMUNICATIONS - CELLULAR (1.00%)
51,200 Sprint Corp. (PCS Group)* 3,817,600
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (7.33%)
125,809 Corning Inc. 8,625,779
109,100 Lucent Technologies, Inc. 7,077,862
134,900 Nokia Corp. ADR 12,115,706
- ---------------------------------------------------------------------------
27,819,347
TELECOMMUNICATIONS - SERVICES (1.28%)
67,700 MCI WorldCom, Inc.* 4,865,937
- ---------------------------------------------------------------------------
UTILITY - TELEPHONE (2.45%)
132,400 ALLTEL Corp. 9,317,650
- ---------------------------------------------------------------------------
UTILITY - WATER SUPPLY (1.26%)
278,400 Azurix Corp.* 4,785,000
- ---------------------------------------------------------------------------
Total Common Stock
(cost $257,441,225) 310,596,171
- ---------------------------------------------------------------------------
CORPORATE DEBT - CONVERTIBLE (11.75%)
COMPUTER - MEMORY DEVICES (2.79%)
$1,671,000 EMC Corp.
3.25%, 3/15/2002 10,592,051
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (0.55%)
1,980,000 VERITAS Software Corp.
1.86%, 8/13/2006 2,091,375
- ---------------------------------------------------------------------------
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (1.78%)
3,933,000 Conexant Systems - 144A
4.25%, 5/1/2006 6,745,095
- ---------------------------------------------------------------------------
INTERNET - ISP/CONTENT (1.87%)
868,000 America Online, Inc.
4.00%, 11/15/2002 7,089,390
- ---------------------------------------------------------------------------
MEDIA - RADIO/TV (3.60%)
9,708,000 Clear Channel Communications, Inc.
2.62%, 4/1/2003 13,639,740
- ---------------------------------------------------------------------------
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
41
- --------------------------------------------------------------------------------
BERGER GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
CORPORATE DEBT - CONVERTIBLE (11.75%) - CONTINUED
RETAIL/WHOLESALE - BUILDING PRODUCTS (1.16%)
$1,488,000 The Home Depot, Inc.
3.25%, 10/1/2001 $ 4,413,780
- ---------------------------------------------------------------------------
Total Corporate Debt - Convertible
(cost $27,051,929) 44,571,431
- ---------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (6.51%)
MEDIA - CABLE TV (2.18%)
81,100 Houston Industries, Inc. - ACES, 7.00% 8,272,200
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - CELLULAR (1.08%)
43,270 Omnipoint Corp., 7.00%* 4,094,423
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (1.07%)
15,275 Qualcomm Financial Trust, 5.75% 4,051,693
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - SERVICES (2.18%)
163,400 Qwest Trends Trust - 144A, 5.75% 8,251,700
- ---------------------------------------------------------------------------
Total Preferred Stock - Convertible
(cost $24,964,955) 24,670,016
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.03%)
$118,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999 to
be repurchased at $118,016 on
October 1, 1999, collateralized by
FNMA Agency Note, 5.60%
April 12, 2002 with a value
of $121,065 118,000
Total Repurchase Agreement
(cost $118,000) 118,000
Total Investments (cost $309,576,109) (100.16%) 379,955,618
Total Other Assets, Less Liabilities (-0.16%) (599,244)
Net Assets (100.00%) $ 379,356,374
- ---------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
ADR - American Depositary Receipt.
144A - Resale is restricted to qualified institutional buyers.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
42
- --------------------------------------------------------------------------------
BERGER BALANCED FUND
- --------------------------------------------------------------------------------
Ticker Symbol BEBAX
Fund Number 213
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER COMMENTARY JOHN B. JARES
- --------------------------------------------------------------------------------
PERFORMANCE
The Berger Balanced Fund (the "Fund") had a total return of 39.41%(1) for the
year ended September 30, 1999. This significantly outpaced the 27.80% total
return registered by the Standard & Poor's (S&P) 500 Index(2) over the same
period. We believe this performance is attributable to our bottom-up style of
investing (company-by-company stock selection) and to our dynamic asset
allocation process, which holds Fund assets in income-producing fixed-income
securities as we uncover stocks that offer growth potential.
YEAR IN REVIEW
It was a roller coaster year for the U.S. stock market. Unfounded fears of a
recession in late 1998 caused stock prices to gyrate wildly. Two interest rate
cuts by the Federal Reserve Board in the fourth quarter of 1998 helped fuel a
powerful rally that carried stocks (as measured by the S&P 500 Index) to record
highs by May 1999. Between then and September 30, however, the market was flat
to down, largely in response to concerns about an increase in inflation and
rising interest rates. Tight labor markets and a weak U.S. dollar added to
investor anxiety. In response to a strong U.S. economy and recovering economies
overseas, the Federal Reserve Board increased interest rates once during this
period.
As of September 30, 1999, the Fund's net assets were allocated as follows: 58%
equities, 33% fixed income and 9% cash equivalents, which was similar to the
allocation we held over the year.
Investment-grade corporate bonds make up approximately one-half of the Fund's
fixed-income holdings; the other half consists of U.S. Treasuries. The average
maturity of our fixed-income investments is between three and four years. The
shorter maturity and relatively low duration of the Fund's fixed-income
investments has been a benefit to the Fund because they outperformed those of
longer duration the past 12 months.
The equity portion of our portfolio performed well this past year, led by
investments in technology and selected consumer-related issues. Some of the
Fund's largest and best-performing holdings were semiconductor companies,
including Texas Instruments, Xilinx and Altera. In addition, the Fund benefited
from strong performances by semiconductor equipment manufacturers Lam Research,
KLA-Tencor and Applied Materials.
Among the consumer-related stocks in our portfolio, Royal Caribbean Cruise
Lines, Best Buy and Park Place Entertainment turned in strong performances for
the year. Laggards early in the year were Elan and Saks Fifth Avenue. We sold
our positions in both of these companies late in the first quarter 1999 when we
saw the fundamental performance of their businesses begin to degrade.
Initial public offerings (IPO's) also made a positive contribution to the Fund's
performance during the year, although it is unclear whether this market for
IPO's will continue into next year. These companies included Genentech, a
biopharmaceutical manufacturer, Juniper Networks, a telecommunications equipment
company, and Ariba, a leader in business-to-business electronic commerce.
LOOKING AHEAD
As we approach the end of 1999 and the beginning of 2000, we remain cautiously
optimistic about prospects for the U.S. stock markets. We are optimistic because
we believe a strong U.S. economy and improving economic trends internationally
bode well for corporate earnings over the near term. We are cautious, however,
because we continue to see upward pressure on interest rates.
The wild card going forward, of course, is that the turn of the millennium could
bring more volatility to the U.S. stock and bond markets. For this reason, the
Fund will maintain its focus on short maturity assets on the fixed-income side
of the portfolio. For the equity side, we will continue to seek fundamentally
sound companies with excellent revenue and earnings growth prospects for the
future.
1. Past performance does not guarantee future results. 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.
<PAGE>
Annual Report September 30, 1999 Berger Funds
43
- --------------------------------------------------------------------------------
BERGER BALANCED FUND
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
<C> <C> <C> <C>
9/30/97 $10,000 $10,000 $10,000
3/31/98 $15,810 $11,722 $10,062
9/30/98 $16,677 $10,906 $10,149
3/31/99 $19,911 $13,885 $10,236
9/30/99 $21,855 $13,937 $10,366
</TABLE>
<TABLE>
<CAPTION>
BERGER BALANCED FUND*
AVERAGE ANNUAL TOTAL RETURN
As of September 30, 1999
- ---------------------------------------
<C> <C>
1 Year 39.41%
- ---------------------------------------
Life of Fund 47.88%
- ---------------------------------------
(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.
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (57.28%)
BANKS - MONEY CENTER (0.80%)
22,350 Citigroup Inc. $ 983,400
- ---------------------------------------------------------------------------
BEVERAGES - SOFT DRINKS (2.03%)
48,300 Pepsico, Inc. 1,461,075
21,400 The Coca-Cola Co. 1,028,537
- ---------------------------------------------------------------------------
2,489,612
BUILDING PRODUCTS - WOOD (1.76%)
18,200 Weyerhaeuser Co. 1,048,775
25,800 Willamette Industries, Inc. 1,112,625
- ---------------------------------------------------------------------------
2,161,400
COMPUTER SOFTWARE - DESKTOP (1.65%)
22,400 Microsoft Corp.* 2,028,600
- ---------------------------------------------------------------------------
COMPUTER SOFTWARE - ENTERPRISE (2.57%)
78,000 J.D. Edwards & Co.* 1,616,062
33,700 Oracle Corp.* 1,533,350
- ---------------------------------------------------------------------------
3,149,412
COSMETICS/PERSONAL CARE (1.31%)
63,100 The Dial Corp. 1,609,050
- ---------------------------------------------------------------------------
ELECTRICAL - MILITARY SYSTEMS (1.31%)
28,000 General Motors Corp. - Class H* 1,603,000
- ---------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (57.28%) - CONTINUED
Electronic - Semiconductor Equipment (3.62%)
17,800 Applied Materials, Inc.* $ 1,386,175
20,000 KLA-Tencor Corp.* 1,300,000
28,800 Lam Research Corp.* 1,756,800
- ---------------------------------------------------------------------------
4,442,975
ELECTRONIC - SEMICONDUCTOR MANUFACTURING (4.83%)
40,500 Altera Corp.* 1,756,687
34,800 Texas Instruments Inc. 2,862,300
20,000 Xilinx, Inc.* 1,310,634
- ---------------------------------------------------------------------------
5,929,621
FINANCE - INVESTMENT MANAGEMENT (0.80%)
11,000 Morgan Stanley Dean Witter & Co. 981,062
- ---------------------------------------------------------------------------
INTERNET - E*COMMERCE (0.69%)
35,000 Ticketmaster Online-CitySearch, Inc.* 846,562
- ---------------------------------------------------------------------------
INTERNET - ISP/CONTENT (2.02%)
16,900 America Online, Inc.* 1,757,600
13,800 GoTo.com, Inc.* 719,325
- ---------------------------------------------------------------------------
2,476,925
INTERNET - NETWORK SECURITY/SOLUTIONS (0.25%)
1,700 Juniper Networks, Inc.* 311,100
- ---------------------------------------------------------------------------
</TABLE>
<PAGE>
Berger Funds September 30, 1999 Annual Report
44
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (57.28%) - CONTINUED
Internet - Software (0.74%)
6,300 Ariba, Inc.* $ 910,350
- ---------------------------------------------------------------------------
LEISURE - GAMING (1.29%)
126,700 Park Place Entertainment Corp.* 1,583,750
- ---------------------------------------------------------------------------
LEISURE - PRODUCTS (1.31%)
35,300 The Seagram Company Ltd. 1,606,150
- ---------------------------------------------------------------------------
LEISURE - SERVICES (4.20%)
88,400 Royal Caribbean Cruises Ltd. 3,978,000
45,700 The Walt Disney Co. 1,182,487
- ---------------------------------------------------------------------------
5,160,487
MEDIA - RADIO/TV (1.04%)
16,000 Clear Channel Communications, Inc.* 1,278,000
- ---------------------------------------------------------------------------
MEDICAL - BIOMED/GENETICS (1.36%)
11,400 Genentech, Inc.* 1,667,962
- ---------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (1.10%)
20,000 Bristol-Myers Squibb Co. 1,350,000
- ---------------------------------------------------------------------------
MEDICAL - MEDICAL/DENTAL SERVICES (1.27%)
23,600 Bausch & Lomb Inc. 1,556,125
- ---------------------------------------------------------------------------
OIL & GAS - FIELD SERVICES (0.86%)
25,900 Halliburton Co. 1,061,900
- ---------------------------------------------------------------------------
OIL & GAS - INTERNATIONAL INTEGRATED (0.81%)
35,900 Conoco Inc. - Class A* 996,225
- ---------------------------------------------------------------------------
OIL & GAS - U.S. EXPLORATION & PRODUCTION (0.90%)
30,000 Burlington Resources Inc. 1,102,500
- ---------------------------------------------------------------------------
OIL & GAS - U.S. INTEGRATED (0.92%)
38,700 USX-Marathon Corp. 1,131,975
- ---------------------------------------------------------------------------
PAPER & PAPER PRODUCTS (0.97%)
22,700 Kimberly-Clark Corp. 1,191,750
- ---------------------------------------------------------------------------
RETAIL - APPAREL/SHOE (1.28%)
58,300 Nordstrom, Inc. 1,574,100
- ---------------------------------------------------------------------------
RETAIL - CONSUMER ELECTRONICS (1.34%)
26,500 Best Buy Co., Inc.* 1,644,656
- ---------------------------------------------------------------------------
RETAIL - DRUG STORES (2.25%)
25,400 CVS Corp. 1,036,637
67,800 Walgreen Co. 1,720,425
- ---------------------------------------------------------------------------
2,757,062
RETAIL - SUPER/MINI-MARKETS (2.70%)
45,700 Safeway, Inc.* 1,739,456
71,500 The Kroger Co.* 1,577,468
- ---------------------------------------------------------------------------
3,316,924
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
COMMON STOCK (57.28%) - CONTINUED
SOAP & CLEANING PREPARATIONS (1.57%)
20,500 Procter & Gamble Co. $ 1,921,875
- ---------------------------------------------------------------------------
TELECOMMUNICATIONS - EQUIPMENT (4.56%)
25,790 Lucent Technologies, Inc. 1,673,126
30,600 Motorola, Inc. 2,692,800
6,500 QUALCOMM Inc.* 1,229,718
- ---------------------------------------------------------------------------
5,595,644
TELECOMMUNICATIONS - SERVICES (1.90%)
20,000 AT&T Corp. 870,000
20,300 MCI WorldCom, Inc.* 1,459,062
- ---------------------------------------------------------------------------
2,329,062
TEXTILE - APPAREL MANUFACTURING (1.27%)
54,400 Jones Apparel Group, Inc.* 1,564,000
- ---------------------------------------------------------------------------
Total Common Stock
(cost $63,246,595) 70,313,216
- ---------------------------------------------------------------------------
CORPORATE DEBT - CONVERTIBLE (2.68%)
ELECTRONIC - SEMICONDUCTOR EQUIPMENT (1.30%)
$1,400,000 Lam Research Corp. Reg. -
5.00%, 9/1/2002 1,396,500
200,000 Lam Research Corp. 144A -
5.00%, 9/1/2002 199,500
- ---------------------------------------------------------------------------
1,596,000
RETAIL - APPAREL/SHOE (1.38%)
3,000,000 Ann Taylor Stores, Inc. 144A -
0.55%, 6/18/2019 1,695,000
Total Corporate Debt - Convertible
(cost $3,083,771) 3,291,000
- ---------------------------------------------------------------------------
CORPORATE DEBT - NON-CONVERTIBLE (18.10%)
AEROSPACE/DEFENSE (1.60%)
2,000,000 Boeing Capital Corp. -
6.21%, 8/15/2003 1,967,660
- ---------------------------------------------------------------------------
BANKS - FOREIGN (1.30%)
1,600,000 Barclays Bank PLC -
5.95%, 7/15/2001 1,593,312
- ---------------------------------------------------------------------------
COMPUTER - MANUFACTURERS (1.57%)
2,000,000 IBM Corp. -
5.63%, 4/12/2004 1,930,918
- ---------------------------------------------------------------------------
ELECTRICAL - EQUIPMENT (1.62%)
2,000,000 General Electric Capital Corp. -
5.89%, 5/11/2001 1,992,040
- ---------------------------------------------------------------------------
FINANCE - CONSUMER/COMMERCIAL LOANS (3.21%)
2,000,000 Ford Motor Credit Co. -
6.13%, 4/28/2003 1,960,080
1,000,000 General Motors Acceptance Corp. -
5.80%, 8/7/2000 999,500
1,000,000 General Motors Acceptance Corp. -
5.60%, 4/30/2002 978,780
- ---------------------------------------------------------------------------
3,938,360
</TABLE>
<PAGE>
Annual Report September 30, 1999 Berger Funds
45
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
SHARES/PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
CORPORATE DEBT - NON-CONVERTIBLE (18.10%) - CONTINUED
FINANCE - INVESTMENT BANKERS (2.46%)
$1,045,000 Bear Stearns Co. Inc. -
6.50%, 8/1/2002 $ 1,036,305
500,000 Merrill Lynch & Co. -
6.47%, 3/1/2000 501,690
1,000,000 Merrill Lynch & Co. -
5.71%, 1/15/2002 985,520
500,000 Merrill Lynch & Co. -
6.02%, 5/11/2001 498,370
- ---------------------------------------------------------------------------
3,021,885
FINANCE - INVESTMENT MANAGEMENT (1.69%)
2,000,000 Morgan Stanley Dean Witter & Co. -
8.10%, 6/24/2002 2,072,660
- ---------------------------------------------------------------------------
INSURANCE - DIVERSIFIED (1.02%)
1,275,000 Transamerica Financial Corp. -
6.12%, 11/1/2001 1,255,518
- ---------------------------------------------------------------------------
MEDICAL - DRUG/DIVERSIFIED (1.60%)
2,000,000 Warner-Lambert Co. -
5.75%, 1/15/2003 1,964,940
- ---------------------------------------------------------------------------
RETAIL - DEPARTMENT STORES (1.62%)
1,500,000 Sears Roebuck & Co. -
6.90%, 8/1/2003 1,491,124
495,000 Sears Roebuck & Co. Acceptance
Corp. - 6.69%, 4/30/2001 494,076
- ---------------------------------------------------------------------------
1,985,200
RETAIL - SUPER/MINI-MARKETS (0.41%)
500,000 Albertson's Inc. -
6.55%, 8/1/2004 498,265
Total Corporate Debt - Non-Convertible
(cost $22,678,412) 22,220,758
- ---------------------------------------------------------------------------
PREFERRED STOCK - CONVERTIBLE (0.58%)
TRANSPORTATION - RAIL (0.17%)
4,500 Union Pacific Capital Trust, 6.25% 208,125
- ---------------------------------------------------------------------------
UTILITY - ELECTRIC POWER (0.41%)
10,200 Texas Utilities Co. Pfd., 9.25% 503,132
Total Preferred Stock - Convertible
(cost $713,062) 711,257
- ---------------------------------------------------------------------------
<CAPTION>
September 30, 1999
- ---------------------------------------------------------------------------
PAR VALUE VALUE
- ---------------------------------------------------------------------------
<S> <C>
U.S. TREASURY NOTES (11.40%)
$6,000,000 U.S. Treasury Note -
5.88%, 6/30/2000 $ 6,024,378
4,000,000 U.S. Treasury Note -
5.63%, 12/31/1999 4,006,240
4,000,000 U.S. Treasury Note -
4.50%, 9/30/2000 3,963,720
Total U.S. Treasury Notes
(cost $14,105,115) 13,994,338
- ---------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (5.29%)
$6,500,000 FNMA Discount Note -
5.18%, 10/1/1999 6,500,000
Total U.S. Government Agency Obligations
(cost $6,500,000) 6,500,000
- ---------------------------------------------------------------------------
REPURCHASE AGREEMENT (4.17%)
$5,116,000 State Street Repurchase Agreement,
4.85% dated September 30, 1999
to be repurchased at $5,116,689
on October 1, 1999, collateralized
by FNMA Agency Note, 5.30% -
January 8, 2001 with a value
of $5,218,439 5,116,000
Total Repurchase Agreement
(cost $5,116,000) 5,116,000
Total Investments (cost $115,442,955) (99.50%) 122,146,569
Total Other Assets, Less Liabilities (0.50%) 619,561
Net Assets (100.00%) $ 122,766,130
- ---------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
PLC - Public Limited Company.
144A - Resale is restricted to qualified institutional buyers.
See notes to financial statements.BERGER
<PAGE>
Berger Funds September 30, 1999 Annual Report
46
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------
Berger Berger
Information New Generation Berger
September 30, 1999 Technology Fund Fund Select Fund
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at cost $16,910,179 $255,611,647 $ 92,815,952
Investments, at value $24,682,930 $328,195,972 $101,047,419
Cash 560 820 607
Receivables
Investment securities sold 218,618 6,291,602 482,483
Fund shares sold 21,059 4,613,896 50,943
Dividends 1,698 13,710 19,304
Interest 93 529 45
Deferred organization costs 9,323 -- --
Due from Advisor 16,753 -- --
Other assets 18,245 -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Assets 24,969,279 339,116,529 101,600,801
LIABILITIES
Payables
Investment securities purchased 25,000 7,298,368 --
Fund shares redeemed -- 112,685 115,425
Loan payable to Banks -- -- --
Interest -- 3,237 --
Accrued investment advisory fees 17,639 234,191 63,906
Accrued custodian and accounting fees 2,238 7,506 8,817
Accrued transfer agent fees 1,000 25,872 18,120
Accrued 12b-1 fees 888 65,022 21,302
Accrued audit fees 15,300 19,300 17,300
Accrued administrative services fees 196 2,602 852
Accrued shareholder reporting fees 872 63,086 3,420
Other accrued expenses 1,378 -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Liabilities 64,511 7,831,869 249,142
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $24,904,768 $331,284,660 $101,351,659
- -------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $17,002,711 $191,304,825 $68,740,893
Undistributed net investment income/(Accumulated net investment loss) -- (17,460) 113,316
Undistributed net realized gain on securities 129,306 67,412,970 24,265,983
Net unrealized appreciation of securities 7,772,751 72,584,325 8,231,467
- -------------------------------------------------------------------------------------------------------------------------
$24,904,768 $331,284,660 $101,351,659
- -------------------------------------------------------------------------------------------------------------------------
Shares Outstanding 433,356 12,853,716 5,286,481
Shares Authorized (par value $0.01) Unlimited Unlimited Unlimited
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE N/A N/A $19.17
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Investor Shares $4,810,803 $330,938,018 N/A
Institutional Shares $20,093,965 $ 346,642 N/A
- -------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Investor Shares 83,722 12,840,273 N/A
Institutional Shares 349,634 13,443 N/A
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
Investor Shares $ 57.46 $ 25.77 N/A
Institutional Shares $ 57.47 $ 25.79 N/A
- -------------------------------------------------------------------------------------------------------------------------
<PAGE>
Annual Report September 30, 1999 Berger Funds
47
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------
Berger Berger Berger
Small Company Small Cap Mid Cap
September 30, 1999 Growth Fund Value Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments, at cost $499,466,069 $761,794,939 $21,812,875
Investments, at value $646,177,513 $781,801,840 $25,538,653
Cash 23,642 395,360 256,187
Receivables
Investment securities sold 63,166,282 -- 964,525
Fund shares sold 2,198,898 25,043,570 291,810
Dividends 5,008 750,158 4,175
Interest 1,712 1,456 43
Deferred organization costs -- -- --
Due from Advisor -- -- --
Other assets -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Assets 711,573,055 807,992,384 27,055,393
LIABILITIES
Payables
Investment securities purchased 34,048,688 18,660,650 1,404,467
Fund shares redeemed 674,852 233,185 58,316
Loan payable to Banks -- -- --
Interest -- -- --
Accrued investment advisory fees 499,533 538,559 14,744
Accrued custodian and accounting fees 26,549 12,797 4,593
Accrued transfer agent fees 248,227 28,961 2,010
Accrued 12b-1 fees 138,760 72,960 4,914
Accrued audit fees 23,300 23,300 14,800
Accrued administrative services fees 5,551 5,984 196
Accrued shareholder reporting fees 270,605 6,284 1,241
Other accrued expenses -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total Liabilities 35,936,065 19,582,680 1,505,281
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $675,636,990 $788,409,704 $25,550,112
- -------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $350,456,267 $751,363,344 $19,449,816
Undistributed net investment income/(Accumulated net investment loss) (84,091) 6,759,547 (405)
Undistributed net realized gain on securities 178,553,370 10,279,912 2,374,923
Net unrealized appreciation of securities 146,711,444 20,006,901 3,725,778
- -------------------------------------------------------------------------------------------------------------------------
$675,636,990 $788,409,704 $25,550,112
- -------------------------------------------------------------------------------------------------------------------------
Shares Outstanding 139,003,930 37,596,904 1,170,966
Shares Authorized (par value $0.01) Unlimited Unlimited Unlimited
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE N/A N/A $ 21.82
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Investor Shares $675,636,990 $374,063,381 N/A
Institutional Shares --(1) $414,346,323 N/A
- -------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Investor Shares 139,003,930 17,863,752 N/A
Institutional Shares --(1) 19,733,152 N/A
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
Investor Shares $ 4.86 $ 20.94 N/A
Institutional Shares --(1) $ 21.00 N/A
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------
Berger Berger Berger
Mid Cap Berger Growth and Balanced
September 30, 1999 Value Fund 100 Fund Income Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at cost $20,398,246 $1,220,723,060 $309,576,109 $115,442,955
Investments, at value $22,508,344 $1,340,309,227 $379,955,618 $122,146,569
Cash 7 872 567,292 646
Receivables
Investment securities sold 658,941 5,766,931 2,033,194 --
Fund shares sold 3,203 377,698 123,637 463,184
Dividends 38,403 296,040 237,094 37,007
Interest 166 287 236,583 529,757
Deferred organization costs -- -- -- --
Due from Advisor -- -- -- --
Other assets -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total Assets 23,209,064 1,346,751,055 383,153,418 123,177,163
LIABILITIES
Payables
Investment securities purchased 236,730 9,481,716 567,017 --
Fund shares redeemed 12,418 1,014,904 185,421 271,216
Loan payable to Banks -- -- 2,400,000 --
Interest -- -- 3,896 --
Accrued investment advisory fees 14,513 854,028 244,611 71,166
Accrued custodian and accounting fees 4,272 69,687 17,041 7,566
Accrued transfer agent fees 3,245 719,473 164,269 13,666
Accrued 12b-1 fees 4,838 284,677 81,537 25,417
Accrued audit fees 14,800 32,333 21,300 17,300
Accrued administrative services fees 194 11,387 3,262 1,016
Accrued shareholder reporting fees 47 489,155 108,690 3,686
Other accrued expenses -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 291,057 12,957,360 3,797,044 411,033
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $22,918,007 $1,333,793,695 $379,356,374 $122,766,130
- ------------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $18,639,713 $925,186,353 $254,574,484 $103,555,136
Undistributed net investment income/(Accumulated net investment loss) 69,584 (241,972) (64,432) 66,148
Undistributed net realized gain on securities 2,098,612 289,263,151 54,466,813 12,441,232
Net unrealized appreciation of securities 2,110,098 119,586,163 70,379,509 6,703,614
- ------------------------------------------------------------------------------------------------------------------------------
$22,918,007 $1,333,793,695 $379,356,374 $122,766,130
- ------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding 1,883,160 85,745,594 24,761,907 7,388,278
Shares Authorized (par value $0.01) Unlimited 200,000,000 100,000,000 Unlimited
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE $ 12.17 $ 15.56 $ 15.32 $ 16.62
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Investor Shares N/A N/A N/A N/A
Institutional Shares N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------
SHARES OUTSTANDING:
Investor Shares N/A N/A N/A N/A
Institutional Shares N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE:
Investor Shares N/A N/A N/A N/A
Institutional Shares N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. See Note 7 of notes to financial statements for information regarding
Berger Small Company Growth Fund - Institutional Shares.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
48
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Berger Berger Berger
Information Information New Generation
For the Year or Period Ended September 30, 1999 (except as indicated) Technology Fund(1) Technology Fund(2) Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 11,950 $ 5,238 $ 108,674
Interest 14,786 16,768 362,951
Total Income 26,736 22,006 471,625
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 97,037 68,002 1,714,100
Administrative services fees 10,984 29,917 19,045
Accounting fees 13,169 17,192 22,451
Custodian fees 3,835 8,338 38,665
Transfer agent fees 11,365 19,823 391,547
Registration fees 22,151 12,239 33,984
12b-1 fees (Investor Shares or single-class funds only) 1,889 -- 476,106
Audit fees 21,464 16,639 22,050
Legal fees 12,735 2,770 14,643
Directors'/Trustees' fees and expenses 1,349 5,061 18,268
Shareholder reporting fees 4,445 1,987 170,131
Amortization of deferred organization costs 2,170 3,691 --
Interest expense -- -- 15,380
Other expenses 2,826 6,482 6,779
Gross Expenses 205,419 192,141 2,943,149
Less fees waived and/or reimbursed by Advisor (46,666) (84,244) --
Less fees paid indirectly -- -- (4,500)
Less earnings credits (889) -- (9,671)
Net Expenses 157,864 107,897 2,928,978
Net Investment Income (Loss) (131,128) (85,891) (2,457,353)
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities 388,198 123,091 70,131,198
Net realized gain on futures contracts -- -- --
Net realized gain on distributions from investment companies -- -- --
Net change in unrealized appreciation on securities 4,446,738 2,901,441 62,553,374
Net Realized and Unrealized Gain on Investments 4,834,936 3,024,532 132,684,572
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,703,808 $2,938,641 $130,227,219
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
Annual Report September 30, 1999 Berger Funds
49
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<CAPTION>
Berger Berger Berger
Berger Small Company Small Cap Mid Cap
For the Year or Period Ended September 30, 1999 (except as indicated) Select Fund Growth Fund Value Fund Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 312,695 $ 220,352 $ 9,304,128 $ 19,665
Interest 1,178,183 2,180,141 2,775,157 66,048
Total Income 1,490,878 2,400,493 12,079,285 85,713
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 739,996 5,582,231 3,996,245 88,212
Administrative services fees 9,867 62,025 44,402 1,176
Accounting fees 13,465 66,723 57,202 13,041
Custodian fees 24,644 66,606 52,268 14,074
Transfer agent fees 121,159 1,657,065 254,891 19,730
Registration fees 21,866 49,705 88,251 13,404
12b-1 fees (Investor Shares or single-class funds only) 246,664 1,550,620 544,873 29,404
Audit fees 20,050 26,050 35,950 17,550
Legal fees 6,610 44,308 22,189 1,188
Directors'/Trustees' fees and expenses 10,045 63,144 44,515 1,099
Shareholder reporting fees 56,177 710,622 124,239 9,662
Amortization of deferred organization costs -- -- -- --
Interest expense 3,036 10,589 -- --
Other expenses 2,359 58,451 24,426 492
Gross Expenses 1,275,938 9,948,139 5,289,451 209,032
Less fees waived and/or reimbursed by Advisor -- -- -- --
Less fees paid indirectly (45,973) (4,500) -- --
Less earnings credits (6,845) (29,915) (13,626) (1,507)
Net Expenses 1,223,120 9,913,724 5,275,825 207,525
Net Investment Income (Loss) 267,758 (7,513,231) 6,803,460 (121,812)
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities 26,109,272 189,375,085 11,471,038 2,534,503
Net realized gain on futures contracts 613,845 -- -- --
Net realized gain on distributions from investment companies -- -- 557,430 --
Net change in unrealized appreciation on securities 8,283,724 119,733,366 42,568,780 4,040,333
Net Realized and Unrealized Gain on Investments 35,006,841 309,108,451 54,597,248 6,574,836
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $35,274,599 $301,595,220 $61,400,708 $6,453,024
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Berger Berger Berger
Mid Cap Berger Growth and Balanced
For the Year or Period Ended September 30, 1999 (except as indicated) Value Fund 100 Fund Income Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income
Dividends $ 416,655 $ 7,493,797 $ 3,003,562 $ 374,041
Interest 89,146 6,233,304 1,118,018 2,147,393
Total Income 505,801 13,727,101 4,121,580 2,521,434
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 176,253 10,834,906 2,740,208 616,424
Administrative services fees 2,351 144,465 36,537 8,806
Accounting fees 9,025 151,938 42,367 15,557
Custodian fees 25,667 140,678 39,147 26,157
Transfer agent fees 54,158 3,073,882 732,249 94,034
Registration fees 14,522 -- 23,070 17,175
12b-1 fees (Investor Shares or single-class funds only) 58,751 3,611,635 913,403 220,152
Audit fees 17,550 36,083 24,050 20,050
Legal fees 3,319 77,184 20,717 6,754
Directors'/Trustees' fees and expenses 2,392 147,422 37,175 8,770
Shareholder reporting fees 16,107 1,347,250 323,625 46,236
Amortization of deferred organization costs -- -- -- --
Interest expense -- -- 3,896 4,184
Other expenses 872 80,809 29,821 4,377
Gross Expenses 380,967 19,646,252 4,966,265 1,088,676
Less fees waived and/or reimbursed by Advisor -- -- -- --
Less fees paid indirectly -- (298,539) (24,178) (864)
Less earnings credits (1,325) (67,287) (22,771) (3,409)
Net Expenses 379,642 19,280,426 4,919,316 1,084,403
Net Investment Income (Loss) 126,159 (5,553,325) (797,736) 1,437,031
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on securities 2,470,373 296,796,365 65,478,686 12,467,719
Net realized gain on futures contracts 116,325 4,015,058 -- 75,053
Net realized gain on distributions from investment companies 62,909 -- -- --
Net change in unrealized appreciation on securities 3,004,508 181,661,229 46,438,095 6,836,202
Net Realized and Unrealized Gain on Investments 5,654,115 482,472,652 111,916,781 19,378,974
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $5,780,274 $476,919,327 $111,119,045 $20,816,005
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period March 1, 1999 to September 30, 1999.
2. For the year ended February 28, 1999.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
50
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger Information Technology Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended
Year or Period Ended September 30 (except as indicated) 1999(1) February 28, 1999 1998(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (131,128) $ (85,891) $ (8,898)
Net realized gain (loss) on securities 388,198 123,091 (23,156)
Net realized gain on futures contracts -- -- --
Net realized gain on distributions from investment companies -- -- --
Net change in unrealized appreciation (depreciation) on securities 4,446,738 2,901,441 424,572
Net Increase (Decrease) in Net Assets Resulting from Operations 4,703,808 2,938,641 392,518
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income:
Investor Shares and single-class Funds only -- -- --
Institutional Shares -- -- --
Distributions in excess of net investment income:
Investor Shares and single-class Funds only -- -- --
Distributions from net realized gains on investments:
Investor Shares and single-class Funds only -- -- --
Institutional Shares (240,971) -- --
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (240,971) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 9,473,739 8,406,475 2,313,271
Net asset value of shares issued in reinvestment of dividends and distributions 240,876 -- --
Payments for shares redeemed (1,718,686) (1,572,857) (32,046)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 7,995,929 6,833,618 2,281,225
Net Increase (Decrease) in Net Assets 12,458,766 9,772,259 2,673,743
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 12,446,002 2,673,743 --
End of period $24,904,768 $12,446,002 $2,673,743
Undistributed net investment income/(Accumulated net investment loss) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 182,321 233,427 89,946
Shares issued to shareholders in reinvestment of dividends and distributions 4,504 -- --
Shares redeemed (34,016) (41,565) (1,261)
Net Increase (Decrease) in Shares 152,809 191,862 88,685
Shares outstanding, beginning of period 280,547 88,685 --
Shares outstanding, end of period 433,356 280,547 88,685
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
Annual Report September 30, 1999 Berger Funds
51
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
New Generation Berger
Fund Select Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30 (except as indicated) 1999 1998 1999
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (2,457,353) $ (1,873,013) $ 267,758
Net realized gain (loss) on securities 70,131,198 12,260,073 26,109,272
Net realized gain on futures contracts -- -- 613,845
Net realized gain on distributions from investment companies -- -- --
Net change in unrealized appreciation (depreciation) on securities 62,553,374 (34,407,514) 8,283,724
Net Increase (Decrease) in Net Assets Resulting from Operations 130,227,219 (24,020,454) 35,274,599
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income:
Investor Shares and single-class Funds only -- -- (267,759)
Institutional Shares -- -- --
Distributions in excess of net investment income:
Investor Shares and single-class Funds only -- -- (102,138)
Distributions from net realized gains on investments:
Investor Shares and single-class Funds only (4,495,277) -- (4,692,942)
Institutional Shares -- -- --
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (4,495,277) -- (5,062,839)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 266,445,474 136,968,651 135,890,110
Net asset value of shares issued in reinvestment of dividends and distributions 4,318,823 -- 4,474,373
Payments for shares redeemed (178,904,170) (189,419,648) (110,795,590)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 91,860,127 (52,450,997) 29,568,893
Net Increase (Decrease) in Net Assets 217,592,069 (76,471,451) 59,780,653
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 113,692,591 190,164,042 41,571,006
End of period $ 331,284,660 $ 113,692,591 $ 101,351,659
Undistributed net investment income/(Accumulated net investment loss) $(17,460) $(12,177) $113,316
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 12,508,663 9,617,032 8,477,635
Shares issued to shareholders in reinvestment of dividends and distributions 305,888 -- 290,230
Shares redeemed (8,938,999) (13,557,048) (6,617,655)
Net Increase (Decrease) in Shares 3,875,552 (3,940,016) 2,150,210
Shares outstanding, beginning of period 8,978,164 12,918,180 3,136,271
Shares outstanding, end of period 12,853,716 8,978,164 5,286,481
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
Berger Small Company
Select Fund Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30 (except as indicated) 1998(3) 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 215,455 $ (7,513,231) $ (7,848,181)
Net realized gain (loss) on securities 2,235,808 189,375,085 121,247,337
Net realized gain on futures contracts -- -- --
Net realized gain on distributions from investment companies -- -- --
Net change in unrealized appreciation (depreciation) on securities (52,257) 119,733,366 (310,416,907)
Net Increase (Decrease) in Net Assets Resulting from Operations 2,399,006 301,595,220 (197,017,751)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income:
Investor Shares and single-class Funds only -- -- --
Institutional Shares -- -- --
Distributions in excess of net investment income:
Investor Shares and single-class Funds only -- -- --
Distributions from net realized gains on investments:
Investor Shares and single-class Funds only -- (105,864,218) (77,784,883)
Institutional Shares -- -- --
Net Decrease in Net Assets from Dividends and Distributions to Shareholders -- (105,864,218) (77,784,883)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 70,190,167 237,959,062 215,916,354
Net asset value of shares issued in reinvestment of dividends and distributions -- 102,148,841 75,634,304
Payments for shares redeemed (31,018,167) (421,943,412) (357,691,265)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 39,172,000 (81,835,509) (66,140,607)
Net Increase (Decrease) in Net Assets 41,571,006 113,895,493 (340,943,241)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period -- 561,741,497 902,684,738
End of period $ 41,571,006 $ 675,636,990 $ 561,741,497
Undistributed net investment income/(Accumulated net investment loss) $215,455 $(84,091) $(65,655)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 5,378,776 59,395,752 45,416,641
Shares issued to shareholders in reinvestment of dividends and distributions -- 30,583,466 17,507,928
Shares redeemed (2,242,505) (106,782,836) (76,360,381)
Net Increase (Decrease) in Shares 3,136,271 (16,803,618) (13,435,812)
Shares outstanding, beginning of period -- 155,807,548 169,243,360
Shares outstanding, end of period 3,136,271 139,003,930 155,807,548
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
Small Cap
Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30 (except as indicated) 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 6,803,460 $ 1,763,834
Net realized gain (loss) on securities 11,471,038 8,773,953
Net realized gain on futures contracts -- --
Net realized gain on distributions from investment companies 557,430 1,525,046
Net change in unrealized appreciation (depreciation) on securities 42,568,780 (38,226,428)
Net Increase (Decrease) in Net Assets Resulting from Operations 61,400,708 (26,163,595)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income:
Investor Shares and single-class Funds only (554,980) (589,238)
Institutional Shares (1,033,592) (706,938)
Distributions in excess of net investment income:
Investor Shares and single-class Funds only -- --
Distributions from net realized gains on investments:
Investor Shares and single-class Funds only (6,307,111) (7,188,217)
Institutional Shares (4,874,484) (6,438,165)
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (12,770,167) (14,922,558)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 740,240,947 202,677,074
Net asset value of shares issued in reinvestment of dividends and distributions 9,947,049 12,934,335
Payments for shares redeemed (211,660,639) (86,934,213)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 538,527,357 128,677,196
Net Increase (Decrease) in Net Assets 587,157,898 87,591,043
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 201,251,806 113,660,763
End of period $ 788,409,704 $201,251,806
Undistributed net investment income/(Accumulated net investment loss) $6,759,547 $3,106,054
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 36,191,725 9,984,182
Shares issued to shareholders in reinvestment of dividends and distributions 532,011 648,894
Shares redeemed (10,560,918) (4,295,128)
Net Increase (Decrease) in Shares 26,162,818 6,337,948
Shares outstanding, beginning of period 11,434,086 5,096,138
Shares outstanding, end of period 37,596,904 11,434,086
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period March 1, 1999 to September 30, 1999.
2. For the period April 8, 1997 (commencement of investment operations) to
February 28, 1998.
3. For the period December 31, 1997 (commencement of investment operations)
to September 30, 1998.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
52
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger Berger
Mid Cap Mid Cap
Growth Fund Value Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30, 1999 1998(1) 1999 1998(2)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (121,812) $ (22,353) $ 126,159 $ 62,607
Net realized gain (loss) on securities 2,534,503 71,188 2,470,373 (122,356)
Net realized gain (loss) on futures contracts -- -- 116,325 (431,756)
Net realized gain on distributions from investment companies -- -- 62,909 --
Net change in unrealized appreciation (depreciation) on securities 4,040,333 (314,555) 3,004,508 (894,410)
Net Increase (Decrease) in Net Assets Resulting from Operations 6,453,024 (265,720) 5,780,274 (1,385,915)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income -- -- (116,337) --
Distributions in excess of net investment income -- -- -- --
Distributions from net realized gains on investments (87,008) -- -- --
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (87,008) -- (116,337) --
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 23,393,763 8,005,977 9,641,513 21,855,353
Net asset value of shares issued in reinvestment of dividends and distributions 84,722 -- 114,595 --
Payments for shares redeemed (8,577,110) (3,457,536) (12,212,494) (758,982)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 14,901,375 4,548,441 (2,456,386) 21,096,371
Net Increase (Decrease) in Net Assets 21,267,391 4,282,721 3,207,551 19,710,456
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 4,282,721 -- 19,710,456 --
End of period $25,550,112 $ 4,282,721 $ 22,918,007 $19,710,456
Undistributed net investment income/(Accumulated net investment loss) $ (405) $ (88) $ 69,584 $ 62,607
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 1,247,919 670,860 792,667 2,193,503
Shares issued to shareholders in reinvestment of dividends and distributions 6,375 -- 10,513 --
Shares redeemed (475,129) (279,059) (1,032,615) (80,908)
Net Increase (Decrease) in Shares 779,165 391,801 (229,435) 2,112,595
Shares outstanding, beginning of period 391,801 -- 2,112,595 --
Shares outstanding, end of period 1,170,966 391,801 1,883,160 2,112,595
- ------------------------------------------------------------------------------------------------------------------------------------
<PAGE>
Annual Report September 30, 1999 Berger Funds
53
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
100 Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30, 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (5,553,325) $ (6,562,949)
Net realized gain (loss) on securities 296,796,365 104,647,304
Net realized gain (loss) on futures contracts 4,015,058 --
Net realized gain on distributions from investment companies -- --
Net change in unrealized appreciation (depreciation) on securities 181,661,229 (344,876,495)
Net Increase (Decrease) in Net Assets Resulting from Operations 476,919,327 (246,792,140)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income -- --
Distributions in excess of net investment income -- --
Distributions from net realized gains on investments (100,312,667) (600,637,304)
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (100,312,667) (600,637,304)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 125,981,311 290,185,487
Net asset value of shares issued in reinvestment of dividends and distributions 97,500,281 585,186,009
Payments for shares redeemed (553,122,803) (640,161,573)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (329,641,211) 235,209,923
Net Increase (Decrease) in Net Assets 46,965,449 (612,219,521)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 1,286,828,246 1,899,047,767
End of period $1,333,793,695 $1,286,828,246
Undistributed net investment income/(Accumulated net investment loss) $ (241,972) $ (157,522)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 8,690,069 19,158,620
Shares issued to shareholders in reinvestment of dividends and distributions 7,075,507 42,594,228
Shares redeemed (37,344,829) (42,694,648)
Net Increase (Decrease) in Shares (21,579,253) 19,058,200
Shares outstanding, beginning of period 107,324,847 88,266,647
Shares outstanding, end of period 85,745,594 107,324,847
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
Growth and
Income Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30, 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (797,736) $ 849,370
Net realized gain (loss) on securities 65,478,686 55,262,003
Net realized gain (loss) on futures contracts -- --
Net realized gain on distributions from investment companies -- --
Net change in unrealized appreciation (depreciation) on securities 46,438,095 (60,354,177)
Net Increase (Decrease) in Net Assets Resulting from Operations 111,119,045 (4,242,804)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income -- (810,870)
Distributions in excess of net investment income (257,511) (117,492)
Distributions from net realized gains on investments (61,153,780) (59,593,140)
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (61,411,291) (60,521,502)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 72,124,316 42,707,097
Net asset value of shares issued in reinvestment of dividends and distributions 58,191,986 57,969,279
Payments for shares redeemed (101,997,289) (91,605,461)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 28,319,013 9,070,915
Net Increase (Decrease) in Net Assets 78,026,767 (55,693,391)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 301,329,607 357,022,998
End of period $ 379,356,374 $301,329,607
Undistributed net investment income/(Accumulated net investment loss) $ (64,432) $ (88,579)
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 4,849,258 2,928,438
Shares issued to shareholders in reinvestment of dividends and distributions 4,775,021 4,248,233
Shares redeemed (7,022,370) (6,365,416)
Net Increase (Decrease) in Shares 2,601,909 811,255
Shares outstanding, beginning of period 22,159,998 21,348,743
Shares outstanding, end of period 24,761,907 22,159,998
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Berger
Balanced
Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Year or Period Ended September 30, 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 1,437,031 $ 434,179
Net realized gain (loss) on securities 12,467,719 6,207,143
Net realized gain (loss) on futures contracts 75,053 --
Net realized gain on distributions from investment companies -- --
Net change in unrealized appreciation (depreciation) on securities 6,836,202 (132,588)
Net Increase (Decrease) in Net Assets Resulting from Operations 20,816,005 6,508,734
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Distributions from net investment income (1,397,262) (407,800)
Distributions in excess of net investment income -- --
Distributions from net realized gains on investments (3,773,574) (2,535,109)
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (5,170,836) (2,942,909)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 170,043,914 38,583,031
Net asset value of shares issued in reinvestment of dividends and distributions 4,755,161 2,636,258
Payments for shares redeemed (98,398,671) (21,526,401)
Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 76,400,404 19,692,888
Net Increase (Decrease) in Net Assets 92,045,573 23,258,713
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 30,720,557 7,461,844
End of period $ 122,766,130 $ 30,720,557
Undistributed net investment income/(Accumulated net investment loss) $ 66,148 $ 26,379
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES (NOTE 7)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold 10,911,427 2,988,884
Shares issued to shareholders in reinvestment of dividends and distributions 333,300 220,731
Shares redeemed (6,169,658) (1,642,590)
Net Increase (Decrease) in Shares 5,075,069 1,567,025
Shares outstanding, beginning of period 2,313,209 746,184
Shares outstanding, end of period 7,388,278 2,313,209
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. For the period December 31, 1997 (commencement of investment operations)
to September 30, 1998.
2. For the period August 12, 1998 (commencement of investment operations) to
September 30, 1998.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
54
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------------
September 30, 1999
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Assets
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value $19,531,939
Receivable from fund shares sold 3,504,392
Total Assets 23,036,331
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for fund shares redeemed 11,259
Accrued 12b-1 fees 4,102
Accrued administrative services fee 7,385
Total Liabilities 22,746
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $23,013,585
- -------------------------------------------------------------------------------------------------------------------------------
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $17,949,781
Accumulated net investment loss (91,381)
Undistributed net realized loss from investments
and foreign currency transactions (675,279)
Net unrealized appreciation of securities and foreign currency transactions 5,830,464
- -------------------------------------------------------------------------------------------------------------------------------
$23,013,585
- -------------------------------------------------------------------------------------------------------------------------------
Shares Outstanding (par value $0.01, unlimited shares authorized) 1,839,826
Net Asset Value, Offering and Redemption Price Per Share $ 12.51
- -------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------------
Year Ended
September 30, 1999
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Net Investment Income Allocated from Portfolio
Dividends (net of foreign withholding taxes of $42,724) $ 315,316
Interest 31,212
Portfolio expenses (net of earnings credits and fee waivers totaling $3,488) (196,716)
Net Investment Income Allocated from Portfolio 149,812
- -------------------------------------------------------------------------------------------------------------------------------
Fund Expenses
Administrative services fee 87,241
Registration fees 11,947
12b-1 fees 49,679
Legal fees 1,965
Total Fund Expenses 150,832
Net Investment Loss (1,020)
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM PORTFOLIO
Net realized loss on securities and foreign currency transactions (480,189)
Net change in unrealized appreciation on securities and foreign currency transactions 5,758,774
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Allocated from Portfolio 5,278,585
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,277,565
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
55
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1999 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (1,020) $ 412,713
Net realized loss on securities and foreign currency transactions allocated from Portfolio (480,189) (566,046)
Net change in unrealized appreciation (depreciation) on securities and foreign currency
transactions allocated from Portfolio 5,758,774 (1,417,196)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 5,277,565 (1,570,529)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (768,790) (98,586)
In excess of net realized gains on investments and foreign currency transactions (31,977) (595,013)
Net Decrease in Net Assets from Dividends and Distributions to Shareholders (800,767) (693,599)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 64,254,931 14,273,535
Net asset value of shares issued in reinvestment of dividends and distributions 784,624 671,358
Payments for shares redeemed (63,014,956) (14,841,862)
Net Increase in Net Assets Derived from Fund Share Transactions 2,024,599 103,031
Net Increase (Decrease) in Net Assets 6,501,397 (2,161,097)
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 16,512,188 18,673,285
End of period $23,013,585 $16,512,188
Undistributed net investment income/(Accumulated net investment loss) $ (91,381) $ 807,948
- ------------------------------------------------------------------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES
Shares sold 5,362,766 1,257,896
Shares issued to shareholders in reinvestment of dividends and distributions 68,500 64,871
Shares redeemed (5,233,010) (1,310,950)
Net Increase in Shares 198,256 11,817
Shares outstanding, beginning of period 1,641,570 1,629,753
Shares outstanding, end of period 1,839,826 1,641,570
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
56
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
ORGANIZATION
Berger Information Technology Fund ("TECH"), 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 100 Fund ("100"), Berger Growth and Income Fund
("BG&I"), Berger Balanced Fund ("BBAL"), and Berger/BIAM International Fund
("BBIF") (individually the "Fund" and collectively, the "Funds") are open-end
management investment companies registered under the Investment Company Act of
1940, as amended (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 BG&I and BBAL,
which also pursue current income.
100 and BG&I are corporations registered in the State of Maryland. TECH, BNG,
BSEL, BSCG, BMCG, BMCV and BBAL are separate series established under the Berger
Investment Portfolio Trust ("BIP Trust"), a Delaware business trust. BSCV is the
only series established under the Berger Omni Investment Trust ("OMNI Trust"), a
Massachusetts business trust. Prior to July 2, 1999, TECH was known as the
InformationTech 100 Fund ("InfoTech"). On July 2, 1999, all of the outstanding
shares of InfoTech were designated Institutional Shares ("TECH; Inst") and a
separate class of shares, Investor Shares ("TECH; Inv"), was offered. BNG, BSCG
and BSCV each also offer two separate classes of shares; Investor Shares ("BNG;
Inv", "BSCG; Inv", and "BSCV; Inv", respectively) and Institutional Shares
("BNG; Inst", "BSCG; Inst", and "BSCV; Inst", respectively). Both classes of
each Fund have identical rights to earnings, assets and voting privileges. BNG;
Inst and BSCG; Inst each commenced operations on August 16, 1999.
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 LLC ("Berger"), formerly Berger Associates, Inc., or BBOI
Worldwide LLC ("BBOI").
Effective September 30, 1999, Berger Associates, Inc. transferred its operating
assets and business to Berger. Accordingly, Berger now serves as investment
advisor and administrator to the Funds. The transfer did not result in any
change to the investment objectives or principal investment strategies of the
Funds, or result in any change to the day-to-day management of the Funds'
investments.
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 September 30, 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 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. 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 directors/trustees of the Funds.
<PAGE>
Annual Report September 30, 1999 Berger Funds
57
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
- --------------------------------------------------------------------------------
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 for each share class is
determined by dividing the net assets applicable to each share class by the
total number of shares outstanding for that class.
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 with the exception
that certain dividends from foreign securities are recorded as soon as a Fund is
informed of the ex-dividend date if such information is obtained subsequent to
the ex-dividend date. Interest income is recorded on the accrual basis and
includes accretion of discount and amortization of premium. 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 share class) and
gains and losses of TECH, BNG, BSCG and 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 each of the aforementioned Funds. Expenses
directly attributable to a specific class of shares 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, recordkeeping 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 net assets of
BBIF relative to the other investors in the Portfolio.
COMMON EXPENSES
Certain expenses that are not directly allocable to a specific Fund are
allocated to each of the Funds on the basis of relative net assets.
ORGANIZATION COSTS
Expenses incurred in connection with the organization of TECH are being
amortized over sixty months from April 8, 1997, the commencement of investment
operations of TECH.
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 TECH, 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: TECH, BNG, BSCG and BSCV -- .90%; 100,
BSEL, BMCG, BMCV and BG&I -- .75%; and BBAL -- .70%. All investment advisory
fees are accrued daily and paid monthly. Berger has delegated the day-to-day
investment management of BSCV and BMCV to Perkins, Wolf & McDonnell and Company
("PWM"). Additionally, Berger has delegated the day-to-day investment management
of TECH to Bay Isle Financial Corporation ("BIFC"). Berger pays PWM and BIFC
sub-advisory fees from the investment advisory fee it receives from BSCV, BMCV
and TECH. Berger has agreed to voluntarily waive its advisory fee for TECH; Inv.
and TECH; Inst. to the extent that each class' normal operating expenses
<PAGE>
Berger Funds September 30, 1999 Annual Report
58
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
2 AGREEMENTS - CONTINUED
- --------------------------------------------------------------------------------
(including the advisory fee and the 12b-1 fee, but excluding brokerage
commissions, interest, taxes and extraordinary expenses) in any fiscal year
exceed 2.00% and 1.50%, respectively, for that fiscal year.
Effective October 1, 1999, the investment advisory fee charged to the Funds will
be reduced according to the following schedule:
<TABLE>
<CAPTION>
Average Daily
Fund Net Assets Annual Rate
- --------------------------------------------------------------------------------
<S> <C> <C>
BSEL, BMCG, BMCV, First $500 million .75%
100, BG&I Next $500 million .70%
Over $1 billion .65%
- --------------------------------------------------------------------------------
TECH, BNG, First $500 million .85%
BSCG, BSCV Next $500 million .80%
Over $1 billion .75%
- --------------------------------------------------------------------------------
BBAL First $1 billion .70%
Over $1 billion .65%
- --------------------------------------------------------------------------------
</TABLE>
Pursuant to an Administrative Services Agreement, whereby BBOI serves as the
administrator to BBIF, BBIF 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 BBIF's average daily net assets. Under
the Agreement, BBOI is responsible at its own expense, for providing or
procuring administrative services reasonably necessary for the operation of
BBIF, 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 BBIF to Berger.
TECH, 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.
Effective October 1, 1999, Berger has agreed to eliminate the 0.01%
administrative services fee charged to the Funds. Berger will continue providing
the same administrative services it currently provides to the Funds at no cost
to the Funds.
The Funds have adopted plans pursuant to Rule 12b-1 under the 1940 Act (the
"Plans"). The TECH, BNG, BSCG and BSCV Plans apply only to the Investor Shares
class of each Fund. 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
Funds (except BBIF) 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 agreements provide
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, pricing and 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, and 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. Such
credits are presented as fees paid indirectly on the Statement of Operations.
For the periods ended September 30, 1999, the following credits were earned:
<TABLE>
<CAPTION>
Fund Credits
- --------------------------------------------------------------------------------
<S> <C>
TECH $ --
- --------------------------------------------------------------------------------
BNG 4,500
- --------------------------------------------------------------------------------
BSEL 45,973
- --------------------------------------------------------------------------------
BSCG 4,500
- --------------------------------------------------------------------------------
BSCV --
- --------------------------------------------------------------------------------
BMCG --
- --------------------------------------------------------------------------------
BMCV --
- --------------------------------------------------------------------------------
100 298,539
- --------------------------------------------------------------------------------
BG&I 24,178
- --------------------------------------------------------------------------------
BBAL 864
- --------------------------------------------------------------------------------
BBIF --
- --------------------------------------------------------------------------------
</TABLE>
Certain officers and/or 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. For the
period ended September 30, 1999, such directors'/trustees' fees and expenses
totaled $334,179 for the Funds.
The Funds adopted a director/trustee fee deferral plan (the "Plan") which allows
the non-affiliated directors/trustees to defer the receipt of all or a portion
of the directors'/trustees' fees payable. The deferred fees are invested in
certain of the Funds until distribution in accordance with the Plan.
<PAGE>
Annual Report September 30, 1999 Berger Funds
59
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
3 INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) during the periods ended September 30, 1999, were as follows:
<TABLE>
<CAPTION>
Fund Purchases Sales
- --------------------------------------------------------------------------------
<S> <C> <C>
TECH $ 12,606,770 $ 5,511,675
- --------------------------------------------------------------------------------
BNG 400,721,496 314,997,030
- --------------------------------------------------------------------------------
BSEL 566,920,700 526,587,529
- --------------------------------------------------------------------------------
BSCG 736,674,231 890,208,490
- --------------------------------------------------------------------------------
BSCV 720,712,830 259,305,987
- --------------------------------------------------------------------------------
BMCG 32,762,443 19,218,181
- --------------------------------------------------------------------------------
BMCV 34,718,400 32,843,234
- --------------------------------------------------------------------------------
100 3,630,247,395 3,958,490,835
- --------------------------------------------------------------------------------
BG&I 608,220,431 607,436,741
- --------------------------------------------------------------------------------
BBAL 242,841,075 178,159,886
- --------------------------------------------------------------------------------
BBIF(1) N/A N/A
- --------------------------------------------------------------------------------
</TABLE>
1. See the Portfolio's Notes to Financial Statements for information regarding
purchases and sales proceeds of investment securities.
BBAL had purchases of $19,154,688 and sales of $12,182,103 of long-term U.S.
government securities during the year ended September 30, 1999. No other Funds
purchased or sold long-term U.S. government securities.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At September 30, 1999, the federal tax cost of securities and the composition of
net unrealized appreciation (depreciation) of investment securities were as
follows:
<TABLE>
<CAPTION>
Gross Gross Net
Federal Unrealized Unrealized Appreciation/
Fund Tax Cost Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TECH $ 16,910,179 $ 8,095,519 $ (322,768) $ 7,772,751
- --------------------------------------------------------------------------------
BNG 255,611,647 87,831,800 (15,247,475) 72,584,325
- --------------------------------------------------------------------------------
BSEL 92,973,161 15,948,497 (7,874,239) 8,074,258
- --------------------------------------------------------------------------------
BSCG 502,532,431 177,456,026 (33,810,944) 143,645,082
- --------------------------------------------------------------------------------
BSCV 761,669,726 68,898,082 (48,765,968) 20,132,114
- --------------------------------------------------------------------------------
BMCG 21,851,508 4,534,427 (847,282) 3,687,145
- --------------------------------------------------------------------------------
BMCV 20,526,453 3,013,814 (1,031,923) 1,981,891
- --------------------------------------------------------------------------------
100 1,225,775,649 193,179,859 (78,646,281) 114,533,578
- --------------------------------------------------------------------------------
BG&I 311,501,454 83,611,598 (15,157,434) 68,454,164
- --------------------------------------------------------------------------------
BBAL 115,622,049 11,009,314 (4,484,794) 6,524,520
- --------------------------------------------------------------------------------
BBIF(1) N/A N/A N/A N/A
- --------------------------------------------------------------------------------
</TABLE>
1. See the Portfolio's Notes to Financial Statements for federal tax cost of
investment securities and the composition of net unrealized appreciation or
unrealized depreciation of investment 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 presented as
a separate component of Net Realized Gain (Loss) on Investments and Foreign
Currency Transactions in the Statement of Operations. At September 30, 1999, the
Funds had no outstanding futures contracts.
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 and result in
losses. In addition, there can be no assurance that a liquid secondary market
will exist for the instrument. Realized gains or losses on these investments are
included in Net Realized Gain (Loss) on Investments and Foreign Currency
Transactions in the Statement of Operations. At September 30, 1999, the Funds
held no options or open forward contracts.
REPURCHASE AGREEMENTS
Repurchase agreements held by a Fund are fully collateralized by U.S. government
securities and such collateral is in the possession of the Fund's custodian. The
collateral is evaluated daily to ensure its market value exceeds the current
market value of the repurchase agreements including accrued interest. In the
event of default on the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings.
CONCENTRATION OF RISK
The Funds may have elements of risk due to concentrated investments in specific
industries or foreign issuers located in a specific country. Such concentrations
may subject
<PAGE>
Berger Funds September 30, 1999 Annual Report
60
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
3 INVESTMENT TRANSACTIONS - CONTINUED
- --------------------------------------------------------------------------------
the Fund to additional risk resulting from future political or economic
conditions and/or possible impositions of adverse foreign governmental laws or
currency exchange restrictions. Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions in the Statement of Operations
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. For the fiscal year ended September 30,
1999, 1%, 48%, 6%, 16%, 19%, and 2% of the ordinary income distributions
declared by BSEL, BSCV, BMCG, BMCV, BG&I and BBAL, respectively, qualified for
the dividends received deduction available to corporate shareholders.
For the fiscal year or period ended September 30, 1999, the following
percentages of capital gain distributions were considered long-term capital
gains:
<TABLE>
<CAPTION>
Fund %
- --------------------------------------------------------------------------------
<S> <C>
TECH 100
- --------------------------------------------------------------------------------
BNGF 100
- --------------------------------------------------------------------------------
BSCG 100
- --------------------------------------------------------------------------------
BSCV 66
- --------------------------------------------------------------------------------
100 100
- --------------------------------------------------------------------------------
BG&I 81
- --------------------------------------------------------------------------------
BBIF 11
- --------------------------------------------------------------------------------
</TABLE>
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.
During the periods ended September 30, 1999, the following reclassifications
were made:
<TABLE>
<CAPTION>
Undistributed Undistributed
Paid-in Net Investment Net Realized
Fund Capital Income Gains
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
TECH $(14,980) 131,128 (116,148)
- --------------------------------------------------------------------------------
BNG -- 2,452,070 (2,452,070)
- --------------------------------------------------------------------------------
BSEL N/A N/A N/A
- --------------------------------------------------------------------------------
BSCG -- 7,494,795 (7,494,795)
- --------------------------------------------------------------------------------
BSCV (13,792) (1,561,395) 1,575,187
- --------------------------------------------------------------------------------
BMCG -- 121,495 (121,495)
- --------------------------------------------------------------------------------
BMCV (272) (2,845) 3,117
- --------------------------------------------------------------------------------
100 -- 5,468,875 (5,468,875)
- --------------------------------------------------------------------------------
BG&I -- 1,079,394 (1,079,394)
- --------------------------------------------------------------------------------
BBAL N/A N/A N/A
- --------------------------------------------------------------------------------
BBIF (292,119) (129,519) 421,638
- --------------------------------------------------------------------------------
</TABLE>
During the year ended September 30, 1999, BBIF paid $42,724 of foreign taxes on
$1,129,447 of foreign source income. The Fund will make the foreign tax credit
election to pass through these taxes to shareholders.
At September 30, 1999, BBIF had capital loss carryovers in the amount of
$593,333, expiring on September 30, 2007, which may be used to offset future
realized gains for federal income tax purposes.
100, BBAL, and BBIF incurred and elected to defer post-October 31 net capital
and/or currency losses of $12,732, $165,238, and $234,056, respectively, to the
year ended September 30, 2000.
- --------------------------------------------------------------------------------
4 TRANSACTIONS WITH AFFILIATES
- --------------------------------------------------------------------------------
During February, 1999, pursuant to a policy adopted by the Funds'
directors/trustees, Berger reimbursed BSCV $534,000 as a result of an error
regarding an investment restriction.
- --------------------------------------------------------------------------------
5 LINE OF CREDIT
- --------------------------------------------------------------------------------
BNG, BSEL, BSCG, BSCV, BMCG, BMCV, 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 at the Federal Funds
Rate plus 50 basis points. In addition, the line of credit requires a quarterly
payment of a commitment fee based on the average daily unused portion of the
line of credit. At September 30, 1999, BG&I had borrowings outstanding of
$2,400,000. No other Funds had borrowings outstanding at September 30, 1999.
- --------------------------------------------------------------------------------
6 CHANGE OF FISCAL YEAR AND INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
Effective April 15, 1999, the trustees of BIP Trust approved changing TECH's
fiscal year end from February 28 to September 30. Additionally, the trustees
appointed PricewaterhouseCoopers LLP as independent accountants for the Fund for
the fiscal period ended September 30, 1999.
<PAGE>
Annual Report September 30, 1999 Berger Funds
61
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
7 CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
The following Funds are authorized to issue an unlimited number of shares of
each share class with a par value of $0.01 per share.* Transactions in capital
shares for the periods presented were as follows:
BERGER INFORMATION TECHNOLOGY FUND
<TABLE>
<CAPTION>
Period from July 2, 1999(1)
to September 30, 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
INVESTOR SHARES
Shares sold 85,821 $ 4,639,114
- --------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment
of dividends and distributions -- --
- --------------------------------------------------------------------------------
Shares redeemed (2,099) (115,896)
- --------------------------------------------------------------------------------
83,722 4,523,218
- --------------------------------------------------------------------------------
<CAPTION>
Period from March 1, 1999 Year Ended Period from April 8, 1997(1)
to September 30, 1999 February 28, 1999 to February 28, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INSTITUTIONAL SHARES
Shares sold 96,500 4,834,625 233,427 $ 8,406,475 89,946 $2,313,271
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment of
dividends and distributions 4,504 240,876 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares redeemed (31,917) (1,602,790) (41,565) (1,572,857) (1,261) (32,046)
- ------------------------------------------------------------------------------------------------------------------------------------
69,087 3,472,711 191,862 6,833,618 88,685 2,281,225
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase from
Capital Share Transactions 152,809 $ 7,995,929 191,862 $ 6,833,618 88,685 $2,281,225
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
BERGER NEW GENERATION FUND
<TABLE>
<CAPTION>
Year Ended Year Ended
September 30, 1999 September 30, 1998
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES
Shares sold 12,495,220 $ 266,105,602 9,617,032 $ 136,968,651
- ----------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment
of dividends and distributions 305,888 4,318,823 -- --
- ----------------------------------------------------------------------------------------------------------------
Shares redeemed (8,938,999) (178,904,170) (13,557,048) (189,419,648)
- ----------------------------------------------------------------------------------------------------------------
3,862,109 91,520,255 (3,940,016) $ (52,450,997)
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
Period from August 16, 1999(1)
to September 30, 1999
- --------------------------------------------------------------------------------
<S> <C> <C>
INSTITUTIONAL SHARES
Shares sold 13,443 339,872
- --------------------------------------------------------------------------------
Total Increase (Decrease) from
Capital Share Transactions 3,875,552 $ 91,860,127
- --------------------------------------------------------------------------------
</TABLE>
BERGER SMALL CAP VALUE FUND
<TABLE>
<CAPTION>
Year Ended Year Ended
September 30, 1999 September 30, 1998
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INVESTOR SHARES
Shares sold 18,450,177 $ 379,815,718 6,176,175 $ 126,575,125
- -----------------------------------------------------------------------------------------------------------------------
Shares issued to shareholders in reinvestment
of dividends and distributions 305,000 5,696,711 365,158 7,272,450
- -----------------------------------------------------------------------------------------------------------------------
Shares redeemed (7,062,053) (141,792,819) (2,848,965) (57,717,019)
- -----------------------------------------------------------------------------------------------------------------------
11,693,124 243,719,610 3,692,368 76,130,556
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES
Shares sold 17,741,548 360,425,229 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 redeemed (3,498,865) (69,867,820) (1,446,163) (29,217,194)
- -----------------------------------------------------------------------------------------------------------------------
14,469,694 294,807,747 2,645,580 52,546,640
- -----------------------------------------------------------------------------------------------------------------------
Total Increase from
Capital Share Transactions 26,162,818 $ 538,527,357 6,337,948 $ 128,677,196
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of operations for the share class.
* BSCG; Inst had no capital share transactions for the period ended
September 30, 1999.
<PAGE>
Berger Funds September 30, 1999 Annual Report
62
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
September 30, 1999
- ------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES COMPANY INDUSTRY VALUE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (96.51%)
AUSTRALIA (4.40%)
36,425 Brambles Industries Ltd. Business & Industrial Services $ 1,055,363
236,150 National Australia Bank Ltd.* Commercial Banks & Other Banks 3,458,993
487,006 News Corp. Ltd.* Media 3,419,296
467,695 Telstra Corp. Ltd.* Utilities 2,425,525
212,370 Westpac Banking Corp. Ltd.* Commercial Banks & Other Banks 1,310,919
- ------------------------------------------------------------------------------------------------------------
11,670,096
DENMARK (0.55%)
24,375 Tele Danmark A.S.* Utilities 1,455,746
- ------------------------------------------------------------------------------------------------------------
FRANCE (7.79%)
18,626 Alcatel Alsthom* Computer/Commercial/Office Equipment 2,568,434
40,932 AXA-UAP* Insurance - Multi/Property/Casualty 5,181,959
34,250 Michelin - Class B* Automobile Components 1,617,614
41,322 Total S.A. - Class B* Oil 5,196,105
86,557 Vivendi* Diversified Holding Companies 6,083,212
- ------------------------------------------------------------------------------------------------------------
20,647,324
GERMANY (9.25%)
105,742 Bayerische Motoren Werk A.G. DM Automobiles 2,992,886
41,060 Bayerische HypoVereinsbank A.G. Commercial Banks & Other Banks 2,397,806
85,935 Hoechst A.G. Chemicals 3,742,736
68,855 Mannesmann A.G.* Machinery & Engineering Services 11,006,341
57,121 Veba A.G. Diversified Industrials 3,131,812
67,080 Viag A.G. DM* Utilities 1,272,411
- ------------------------------------------------------------------------------------------------------------
24,543,992
HONG KONG (0.63%)
148,000 Cheung Kong (Holdings) Ltd. Real Estate 1,233,682
144,500 Hong Kong Electric Holdings Utilities 448,318
- ------------------------------------------------------------------------------------------------------------
1,682,000
ITALY (2.44%)
306,353 ENI S.p.A.* Oil 1,922,879
524,257 Telecom Italia S.p.A.* Utilities 4,558,783
- ------------------------------------------------------------------------------------------------------------
6,481,662
JAPAN (18.41%)
5,400 ACOM Co. Ltd.* Insurance - Multi/Property/Casualty 709,070
83,000 Bank of Tokyo-Mitsubishi Ltd.+ Commercial Banks & Other Banks 1,275,542
207,000 Canon, Inc.+ Computer/Commercial/Office Equipment 6,031,581
65,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplies 2,230,002
53,000 Honda Motor Co. Ltd. Automobiles 2,221,825
9,000 Hoya Corp. Electronics & Instruments 544,788
112,000 Kao Corp. Food & Grocery Products 3,168,718
5,200 Keyence Corp. Electronics & Instruments 1,392,988
4,700 Mabuchi Motor Co. Ltd. Electronics & Instruments 612,294
47,000 Murata Manufacturing Co. Ltd.+ Electronics & Instruments 4,726,948
325 NTT Mobile Communications Utilities 6,415,076
Network, Inc.+
11,700 Rohm Company Ltd. Electronics & Instruments 2,446,893
104,000 Shiseido Co. Ltd. Health & Personal Care 1,554,281
50,100 Sony Corp. Household Durables & Appliances 7,492,160
137,000 Takeda Chemical Industries Health & Personal Care 7,404,361
3,600 Takefuji Corp. Insurance - Multi/Property/Casualty 599,943
- ------------------------------------------------------------------------------------------------------------
48,826,470
<PAGE>
Annual Report September 30, 1999 Berger Funds
63
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
September 30, 1999
- ------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES COMPANY INDUSTRY VALUE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (96.51%) - CONTINUED
MALAYSIA (0.13%)
103,000 Hume Industries Malaysia Bhd Construction & Building Materials $ 81,315
219,400 Sime Darby Bhd Diversified Holding Companies 254,042
- ------------------------------------------------------------------------------------------------------------
335,357
NETHERLANDS (9.21%)
131,580 ABN Amro Holdings N.V. Commercial Banks & Other Banks 2,958,604
71,000 Elsevier N.V.* Media 730,130
38,877 Fortis N.V. Commercial Banks & Other Banks 1,257,378
157,167 ING Groep N.V.* Insurance - Multi/Property/Casualty 8,541,735
107,280 Koninklijke Ahold N.V.* Retail Trade 3,532,578
70,365 Koninklijke KPN N.V.* Utilities 3,085,610
48,480 Royal Dutch Petroleum Co. Oil 2,815,617
58,840 TNT Post Group N.V. Utilities 1,498,598
- ------------------------------------------------------------------------------------------------------------
24,420,250
NEW ZEALAND (0.15%)
101,787 Telecom Corp. of New Zealand* Utilities 401,364
- ------------------------------------------------------------------------------------------------------------
PORTUGAL (0.28%)
46,450 Electricidade de Portugal S.A. Utilities 733,581
- ------------------------------------------------------------------------------------------------------------
SINGAPORE (2.17%)
300,027 Development Bank of Singapore Commercial Banks & Other Banks 3,355,215
Ltd.
89,000 Oversea-Chinese Banking Corp. Commercial Banks & Other Banks 691,465
Ltd.+
109,000 Singapore Press Holdings Ltd.* Media 1,719,364
- ------------------------------------------------------------------------------------------------------------
5,766,044
SOUTH KOREA (0.79%)
29,125 Korea Telecom Corp. ADR* Utilities 1,077,625
32,700 Pohang Iron & Steel Company Mining, Metals & Minerals 1,023,918
Ltd. ADR
- ------------------------------------------------------------------------------------------------------------
2,101,543
SPAIN (2.29%)
322,472 Banco De Santander S.A.* Commercial Banks & Other Banks 3,336,766
170,109 Telefonica S.A.* Utilities 2,724,588
- ------------------------------------------------------------------------------------------------------------
6,061,354
SWEDEN (0.22%)
18,800 Telefonaktiebolaget LM Ericsson Utilities 585,038
- B Shares
- ------------------------------------------------------------------------------------------------------------
SWITZERLAND (10.15%)
2,052 Alusuisse Lonza Group A.G.* Fabricated Metal Products 2,364,376
2,870 Nestle S.A.* Food & Grocery Products 5,396,679
3,221 Novartis A.G. Reg.* Health & Personal Care 4,780,920
448 Roche Holding A.G.* Health & Personal Care 5,187,384
2,492 Schweizerische Insurance - Multi/Property/Casualty 4,976,688
Rueckversicherungs*
14,921 Union Bank of Switzerland Commercial Banks & Other Banks 4,208,563
A.G. Reg.
- ------------------------------------------------------------------------------------------------------------
26,914,610
THAILAND (0.11%)
143,000 Bangkok Bank PLC* Commercial Banks & Other Banks 281,351
- ------------------------------------------------------------------------------------------------------------
<PAGE>
Berger Funds September 30, 1999 Annual Report
64
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
- ------------------------------------------------------------------------------------------------------------
September 30, 1999
- ------------------------------------------------------------------------------------------------------------
COUNTRY/SHARES
PAR VALUE COMPANY INDUSTRY VALUE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCK (96.51%) - CONTINUED
UNITED KINGDOM (27.54%)
320,220 Allied Zurich PLC Insurance - Multi/Property/Casualty $ 3,758,095
101,630 AstraZeneca PLC Health & Personal Care 4,260,697
179,100 Barclays PLC Commercial Banks & Other Banks 5,256,259
309,767 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 2,656,456
314,030 Cable & Wireless PLC Utilities 3,416,665
357,310 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 2,480,447
347,260 Diageo Ordinary PLC Beverage Industry/Tobacco Manufacturing 3,546,715
100,276 Emi Group PLCOrd - Class B* Media 732,841
204,675 Glaxo Wellcome PLC Health & Personal Care 5,336,417
428,232 Granada Group PLC Entertainment/Leisure/Toys 3,665,323
402,200 Hilton Group PLC Entertainment/Leisure/Toys 1,396,864
120,000 HSBC Holdings PLC Commercial Banks & Other Banks 1,374,906
620,164 Invensys PLC Machinery & Engineering Services 3,021,538
20,701 Kingfisher PLC Retail Trade 221,820
331,680 Lloyds TSB Group PLC Commercial Banks & Other Banks 4,121,886
55,017 National Power PLC Utilities 428,792
113,520 National Westminster Bank PLC Commercial Banks & Other Banks 2,645,851
241,350 Old Mutual PLC* Insurance - Multi/Property/Casualty 514,454
77,520 Pearson PLC Media 1,662,600
369,765 Prudential PLC Insurance - Life & Agents/Brokers 5,678,547
51,760 Railtrack Group PLC Road & Rail 1,088,817
651,232 Shell Transport & Trading Co. Oil 4,866,552
PLC
185,300 TI Group PLC Machinery & Engineering Services 1,354,216
376,400 Vodafone AirTouch Group PLC Utilities 8,909,192
68,163 WPP Group PLC Media 633,909
- ------------------------------------------------------------------------------------------------------------
73,029,859
- ------------------------------------------------------------------------------------------------------------
Total Common Stock (cost $205,584,576) 255,937,641
- ------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT (1.58%)
U.S.A.
- ------------------------------------------------------------------------------------------------------------
$4,197,000 State Street Repurchase Agreement, 4.85%
dated September 30, 1999, to be repurchased
at $4,197,565 on October 1, 1999, collateralized
by FNMA Agency Note, 5.25% - January 10, 2001,
with a value of $4,281,350 4,197,000
- ------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement (cost $4,197,000) 4,197,000
Total Investments (cost $209,781,576) (98.09%) 260,134,641
Total Other Assets, Less Liabilities (1.91%) 5,076,729
Net Assets (100.00%) $265,211,370
- ------------------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security.
+ - Security is designated as collateral for forward foreign currency contracts.
ADR - American Depositary Receipt.
PLC - Public Limited Company.
<TABLE>
<CAPTION>
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
Unrealized
Contract Maturity Value on Appreciation/
Currency Amount Date September 30, 1999 (Depreciation)
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 269,978,000 10/21/1999 $ 2,547,852 $(287,487)
Sell Japanese Yen 270,196,000 11/9/1999 2,558,412 (97,610)
Sell Japanese Yen 347,845,000 11/18/1999 3,306,350 (234,733)
Sell Japanese Yen 292,626,000 11/24/1999 2,777,469 (113,600)
Sell Japanese Yen 222,954,000 11/30/1999 2,118,259 (89,560)
Sell Japanese Yen 508,714,000 1/18/2000 4,873,933 (70,801)
- ------------------------------------------------------------------------------------------------------------
$ 18,182,275 $(893,791)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
65
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------------------------------------------
September 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments, at cost $209,781,576
Investments, at value $260,134,641
Cash 1,577
Foreign cash (cost $2,981,614) 3,003,561
Receivables
Investment securities sold 189,943
Contributions 4,813,729
Dividends 801,571
Interest 565
Due from Advisor 16,469
- -----------------------------------------------------------------------------------------------------------------
Total Assets 268,962,056
LIABILITIES
Payables
Investment securities purchased 1,553,600
Withdrawals 1,059,298
Accrued investment advisory fees 192,775
Accrued custodian fees 22,722
Accrued audit fees 28,500
Net unrealized depreciation on forward foreign currency contracts 893,791
- -----------------------------------------------------------------------------------------------------------------
Total Liabilities 3,750,686
NET ASSETS $265,211,370
- -----------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------------------------------
Year Ended
September 30, 1999
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Income
Dividends (net of foreign tax withholding of $482,012) $ 3,523,283
Interest 355,089
- -----------------------------------------------------------------------------------------------------------------
Total Income 3,878,372
EXPENSES
Investment advisory fees 2,010,034
Accounting fees 48,561
Custodian fees 96,448
Registration fees 3,535
Audit fees 37,500
Legal fees 6,863
Trustees' fees and expenses 22,213
Shareholder reporting fees 9,233
Other expenses 13,735
Gross Expenses 2,248,122
Less fees waived by Advisor (16,581)
Less earnings credits (22,800)
Net Expenses 2,208,741
Net Investment Income 1,669,631
- -----------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on investments and foreign currency transactions (5,205,587)
Net change in unrealized appreciation on investments and foreign currency transactions 58,159,547
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions 52,953,960
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $54,623,591
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
66
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Year Ended September 30, 1999 1998
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,669,631 $ 5,874,066
Net realized loss on investments and foreign currency transactions (5,205,587) (4,726,150)
Net change in unrealized appreciation (depreciation) on investments and
foreign currency transactions 58,159,547 (15,953,893)
Net Increase (Decrease) in Net Assets Resulting from Operations 54,623,591 (14,805,977)
- ------------------------------------------------------------------------------------------------------------------------
FROM INVESTORS' BENEFICIAL INTEREST TRANSACTIONS
Contributions 161,557,439 103,931,701
Withdrawals (128,565,460) (33,746,924)
Net Increase in Net Assets Derived From Investors' Beneficial Interest
Transactions 32,991,979 70,184,777
Net Increase in Net Assets 87,615,570 55,378,800
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
End of period $265,211,370 $177,595,800
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Year Ended September 30, Period from
------------------------ October 11, 1996(1)
1999 1998 to September 30, 1997
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in thousands) $265,211 $177,596 $122,217
Net expense ratio to average net assets(3) 1.00% 1.00% 0.89%(2)
Ratio of net income to average net assets 0.75% 3.45% 1.63%(2)
Gross expense ratio to average net assets 1.01% 1.04% 1.10%(2)
Portfolio turnover rate(4) 16% 17% 17%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
1. Commencement of investment operations.
2. Annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Not annualized.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
67
- --------------------------------------------------------------------------------
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 a diversified 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 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 of the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
management of the Portfolio to BIAM. Berger LLC ("Berger"), formerly Berger
Associates, Inc., and BIAM each own 50% of BBOI. Effective September 30, 1999,
Berger Associates, Inc. transferred its operating assets and business to Berger.
The transfer did not result in any change to the investment objective or
principal investment strategies of the Portfolio, or result in any change to the
day-to-day management of the Portfolio's investments.
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
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 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 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. 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 of the Portfolio.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are purchased
or sold. Dividend income is recorded on the ex-dividend date except that certain
dividends from foreign securities are reported as soon as the Portfolio is
informed of the ex-dividend date if such information is obtained subsequent to
the ex-dividend date.
<PAGE>
Berger Funds September 30, 1999 Annual Report
68
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
1 ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Dividend income is recorded net of foreign taxes withheld. Interest income is
recorded on the accrual basis and includes accretion of discount and
amortization of premium. Gains and losses are computed on the identified cost
basis for both financial statement and federal income tax purposes for all
securities.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires manage ment 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
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 pays BIAM a sub-advisory fee from the investment advisory fee it
receives from the Portfolio.
The Portfolio has also entered into recordkeeping and pricing agreements with
Investors Fiduciary Trust Company ("IFTC"), which also serves as the Portfolio's
custodian and transfer agent. The recordkeeping and pricing agreements provide
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
(which consists of Berger Information Technology Fund, 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 Growth & Income Fund and Berger Balanced Fund) (collectively, the
"Funds"). IFTC's fees for custody, recordkeeping, pricing and transfer agency
services are subject to reduction by credits earned by the Portfolio, based on
the cash balances of the Portfolio held by IFTC as custodian and 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 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 year ended September 30, 1999, totaled $22,213.
The Trust adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
non-affiliated trustees to defer the receipt of all or a portion of the trustee
fees payable. The deferred fees are invested in various Berger Funds until
distribution in accordance with the Plan.
<PAGE>
Annual Report September 30, 1999 Berger Funds
69
- --------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL PORTFOLIO
3 INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) during the year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
- --------------------------------------------
<S> <C> <C>
$65,551,376 $33,821,723
</TABLE>
There were no purchases or sales of long-term U.S. government securities during
the year ended September 30, 1999.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At September 30, 1999, the federal tax cost of securities and the composition of
net unrealized appreciation (depreciation) of investment securities held was as
follows:
<TABLE>
<CAPTION>
Gross Unrealized Gross Unrealized
Federal Tax Cost Appreciation Depreciation Net
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
$209,783,264 $59,176,867 $(8,825,490) $50,351,377
</TABLE>
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. Risk 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.
REPURCHASE AGREEMENTS
Repurchase agreements held by the Portfolio are fully collateralized by U.S.
government securities and such collateral is in the possession of the
Portfolio'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
Portfolio 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 RISK
The Portfolio 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 Portfolio to additional risk resulting from
future political or economic conditions and/or possible impositions of adverse
foreign governmental laws or currency exchange restrictions. Net Realized and
Unrealized Gain (Loss) on Investments and Foreign Currency Transactions in the
Statement of Operations includes fluctuations from currency exchange rates and
fluctuations in market value.
4 LINE OF CREDIT
The Portfolio, along with certain of the Berger Funds, is party to an ongoing
agreement with certain banks that allows these Funds and the Portfolio,
collectively, to borrow up to $150 million, subject to certain conditions, for
temporary or emergency purposes. Interest on borrowings, if any, is charged to
the specific Fund or Portfolio that executes the borrowing at the Federal Funds
Rate plus 50 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 September 30, 1999, the Portfolio had no borrowings
outstanding on the line of credit.
<PAGE>
Berger Funds September 30, 1999 Annual Report
70
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
BERGER INFORMATION TECHNOLOGY FUND - INVESTOR SHARES
For a Share Outstanding Throughout the Period
- -----------------------------------------------------------------------------------------------------------
Period from
July 2, 1999(1)
to September 30, 1999
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $53.47
From investment operations
Net investment income (loss) (0.00)(5)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 3.99
Total from investment operations 3.99
Net asset value, end of period $57.46
Total Return(2) 7.46%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $4,811
Net expense ratio to average net assets(3) 1.83%(4)
Ratio of net income (loss) to average net assets (1.58)%(4)
Gross expense ratio to average net assets 2.16%(4)
Portfolio turnover rate(2) 31%
</TABLE>
1. Commencement of investment operations for Investor Shares.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
5. Amount represents less than $0.01 per share.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
BERGER INFORMATION TECHNOLOGY FUND - INSTITUTIONAL SHARES
For a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------------------------------------------------------
Period from Period from
March 1, 1999 to Year Ended April 8, 1997(1)
September 30, 1999 February 28, 1999 to February 28, 1998
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 44.36 $ 30.15 $20.00
From investment operations
Net investment income (loss) (0.00)(5) (0.31) (0.10)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 13.83 14.52 10.25
Total from investment operations 13.83 14.21 10.15
Less dividends and distributions
Distributions (from capital gains) (0.72) -- --
Total dividends and distributions (0.72) -- --
Net asset value, end of period $ 57.47 $ 44.36 $30.15
Total Return(2) 31.30% 47.13% 50.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $20,094 $12,446 $2,674
Net expense ratio to average net assets(3) 1.49% 1.50% 1.50%(4)
Ratio of net income (loss) to average net assets (1.22)% (1.19)% (1.01)%(4)
Gross expense ratio to average net assets 1.94% 2.67% 12.17%(4)
Portfolio turnover rate(2) 31% 35% 33%
</TABLE>
1. Commencement of investment operations for Institutional Shares.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
5. Amount represents less than $0.01 per share.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
71
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
BERGER NEW GENERATION FUND - INVESTOR SHARES
For a Share Outstanding Throughout the Period
- -----------------------------------------------------------------------------------------------------------------------
Years Ended September 30, Period from
------------------------- March 29, 1996(1) to
1999 1998 1997 September 30, 1996
- -----------------------------------------------------------------------------------------------------------------------
<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) (0.00)(6) -- (0.13) 0.56
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 13.61 (2.06) 3.64 1.26
Total from investment operations 13.61 (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 $ 25.77 $ 12.66 $ 14.72 $ 11.82
Total Return(2) 110.82% (13.99)% 31.53% 18.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $330,938 $113,693 $190,164 $116,912
Net expense ratio to average net assets(3) 1.54% 1.72% 1.89% 1.90%(4)
Ratio of net income (loss) to average net assets (1.29)% (1.37)% (1.51)% 12.35%(4)
Gross expense ratio to average net assets 1.54% 1.72% 1.89% 2.09%(4)
Portfolio turnover rate(2) 168% 243% 184% 474%(5)
</TABLE>
1. Commencement of investment operations for Investor Shares.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
5. Portfolio turnover was greater than expected during this period due to active
trading 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.
6. Amount represents less than $0.01 per share.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
BERGER NEW GENERATION FUND - INSTITUTIONAL SHARES
For a Share Outstanding Throughout the Period
- ---------------------------------------------------------------------------------------------------------
Period from
August 16, 1999(1) to
September 30, 1999
- ---------------------------------------------------------------------------------------------------------
<S> <C>
Net asset value, beginning of period $23.29
From investment operations
Net investment income (loss) (0.00)(5)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 2.50
Total from investment operations 2.50
Net asset value, end of period $25.79
Total Return(2) 10.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 347
Net expense ratio to average net assets(3) 1.02%(4)
Ratio of net income (loss) to average net assets (0.85)%(4)
Gross expense ratio to average net assets 1.02%(4)
Portfolio turnover rate(2) 168%
</TABLE>
1. Commencement of investment operations for Institutional Shares.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
5. Amount represents less than $0.01 per share.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
72
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
BERGER SELECT FUND
For a Share Outstanding Throughout the Period
- --------------------------------------------------------------------------------------------------------
Period from
Year ended December 31, 1997(1)
September 30, 1999 to September 30, 1998
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.26 $ 10.00
From investment operations
Net investment income (loss) 0.01 0.07
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 6.80 3.19
Total from investment operations 6.81 3.26
Less dividends and distributions
Dividends (from net investment income) (0.05) --
Dividends (in excess of net investment income) (0.01) --
Distributions (from capital gains) (0.84) --
Total dividends and distributions (0.90) --
Net asset value, end of period $ 19.17 $ 13.26
Total Return(2) 53.06% 32.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $101,352 $41,571
Net expense ratio to average net assets(3) 1.29% 1.48%(5)
Ratio of net income (loss) to average net assets 0.27% 1.13%(5)
Gross expense ratio to average net assets 1.29% 1.48%(5)
Portfolio turnover rate(2) 696% 1486%(4)
</TABLE>
1. Commencement of investment operations.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Portfolio turnover was greater than expected during this period due to active
trading 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.
5. Annualized.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
BERGER SMALL COMPANY GROWTH FUND - INVESTOR SHARES
For a Share Outstanding Throughout the Period
- ------------------------------------------------------------------------------------------------------------------------------
Years Ended September 30,
------------------------
1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 3.61 $ 5.33 $ 4.74 $ 3.61 $ 2.74
From investment operations
Net investment income (loss) (0.00)(1) -- (0.05) (0.03) (0.02)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 1.95 (1.24) 0.84 1.16 0.89
Total from investment operations 1.95 (1.24) 0.79 1.13 0.87
Less dividends and distributions
Dividends (from net investment income) -- -- -- -- (0.00)(1)
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 $ 4.86 $ 3.61 $ 5.33 $ 4.74 $ 3.61
Total Return 62.78% (24.70)% 17.68% 31.30% 31.90%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $675,637 $561,741 $902,685 $871,467 $522,667
Net expense ratio to average net assets(2) 1.60% 1.48% 1.67% 1.68% 1.89%
Ratio of net income (loss) to average net assets (1.21)% (1.01)% (1.09)% (0.97)% (0.74)%
Gross expense ratio to average net assets 1.60% 1.59% 1.67% 1.68% 1.89%
Portfolio turnover rate 128% 97% 111% 91% 109%
</TABLE>
1. Amount represents less than $0.01 per share.
2. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
73
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
BERGER SMALL CAP VALUE FUND - INVESTOR SHARES
For a Share Outstanding Throughout the Period
- ---------------------------------------------------------------------------------------------------------------
Years Ended September 30, Period from
------------------------ February 14, 1997(1)
1999 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 4.26 (2.58) 5.01
Total from investment operations 4.24 (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 $ 20.94 $ 17.58 $ 22.28
Total Return(2) 24.69% (10.98)% 29.23%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $374,063 $108,465 $55,211
Net expense ratio to average net assets(3) 1.37% 1.56% 1.66%(4)
Ratio of net income (loss) to average net assets 1.36% 0.87% 0.60%(4)
Gross expense ratio to average net assets 1.37% 1.56% 1.66%(4)
Portfolio turnover rate(2) 66% 69% 81%
</TABLE>
1. Commencement of investment operations for Investor Shares.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
BERGER SMALL CAP VALUE FUND - INSTITUTIONAL SHARES
For a Share Outstanding Throughout the Period
- ------------------------------------------------------------------------------------------------------------------------------------
Years Ended September 30, Period from Years Ended December 31,
------------------------ January 1, 1997 to -----------------------
1999 1998 September 30, 1997 1996 1995 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 17.63 $ 22.33 $ 16.48 $ 14.57 $ 12.75 $ 13.99
From investment operations
Net investment income (loss) 0.04 0.45 0.07 0.12 0.09 (0.01)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.28 (2.55) 5.78 3.62 3.23 0.91
Total from investment operations 4.32 (2.10) 5.85 3.74 3.32 0.90
Less dividends and distributions
Dividends (from net investment income) (0.14) (0.23) -- (0.11) (0.09) --
Distributions (from capital gains) (0.81) (2.37) -- (1.72) (1.41) (2.14)
Total dividends and distributions (0.95) (2.60) -- (1.83) (1.50) (2.14)
Net asset value, end of period $ 21.00 $ 17.63 $ 22.33 $ 16.48 $ 14.57 $ 12.75
Total Return(2) 25.18% (10.65)% 33.50% 25.58% 26.07% 6.74%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $414,347 $92,787 $58,450 $36,041 $31,833 $18,270
Net expense ratio to average net assets(3) 1.01% 1.19% 1.34%(1) 1.48% 1.64% 1.43%
Ratio of net income (loss) to average net assets 1.69% 1.26% 0.63%(1) 0.69% 0.64% (0.04)%
Gross expense ratio to average net assets 1.01% 1.19% 1.34%(1) 1.48% 1.64% 1.43%
Portfolio turnover rate(2) 66% 69% 81% 69% 90% 125%
</TABLE>
1. Annualized.
2. Not annualized.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
74
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
BERGER MID CAP GROWTH FUND
For a Share Outstanding Throughout the Period
- ----------------------------------------------------------------------------------------------------------------------
Period from
Year Ended December 31, 1997(1)
September 30, 1999 to September 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.93 $ 10.00
From investment operations
Net investment income (loss) (0.00)(5) --
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 11.10 0.93
Total from investment operations 11.10 0.93
Less dividends and distributions
Distributions (from capital gains) (0.21) --
Total dividends and distributions (0.21) --
Net asset value, end of period $ 21.82 $ 10.93
Total Return(2) 102.76% 9.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $25,550 $4,283
Net expense ratio to average net assets(3) 1.78% 2.00%(4)
Ratio of net income (loss) to average net assets (1.03)% (0.82%)(4)
Gross expense ratio to average net assets 1.78% 2.46%(4)
Portfolio turnover rate(2) 178% 262%
</TABLE>
1. Commencement of investment operations.
2. Not annualized.
3. Net expenses represents gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
5. Amount represents less than $0.01 per share.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
BERGER MID CAP VALUE FUND
For a Share Outstanding Throughout the Period
- ----------------------------------------------------------------------------------------------------------------------
Period from
Year Ended August 12, 1998(1)
September 30, 1999 to September 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 9.33 $ 10.00
From investment operations
Net investment income (loss) 0.07 0.03
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 2.83 (0.70)
Total from investment operations 2.90 (0.67)
Less dividends and distributions
Dividends (from net investment income) (0.06) --
Total dividends and distributions (0.06) --
Net asset value, end of period $ 12.17 $ 9.33
Total Return(2) 31.12% (6.70)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $ 22,918 $ 19,710
Net expense ratio to average net assets(3) 1.62% 1.68%(4)
Ratio of net income (loss) to average net assets 0.54% 2.30%(4)
Gross expense ratio to average net assets 1.62% 1.68%(4)
Portfolio turnover rate(2) 154% 25%
</TABLE>
1. Commencement of investment operations.
2. Not annualized.
3. Net expenses represents gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
4. Annualized.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
75
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
BERGER 100 FUND
For a Share Outstanding Throughout the Period
- ----------------------------------------------------------------------------------------------------------------------------------
Years Ended September 30,
-----------------------------------------------------------------------
1999 1998 1997(1) 1996(1) 1995(1)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.99 $ 21.51 $ 19.64 $ 18.89 $ 15.96
From investment operations
Net investment income (loss) (0.00)(2) -- (0.09) (0.08) (0.04)
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.55 (2.57) 4.73 1.76 2.97
Total from investment operations 4.55 (2.57) 4.64 1.68 2.93
Less dividends and distributions
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 $ 15.56 $ 11.99 $ 21.51 $ 19.64 $ 18.89
Total Return 38.96% (16.08)% 26.50% 9.36% 18.36%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $1,333,794 $1,286,828 $1,889,048 $2,012,706 $ 2,205,678
Net expense ratio to average net assets(3) 1.36% 1.38% 1.41% 1.42% 1.49%
Ratio of net income (loss) to average net assets (0.38)% (0.38)% (0.40)% (0.43)% (0.28)%
Gross expense ratio to average net assets 1.36% 1.38% 1.41% 1.42% 1.49%
Portfolio turnover rate 274% 280% 200% 122% 114%
</TABLE>
1. Per share calculations for the period were based on average shares
outstanding.
2. Amount represents less than $0.01 per share.
3. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
BERGER GROWTH AND INCOME FUND
For a Share Outstanding Throughout the Period
- ----------------------------------------------------------------------------------------------------------------------------------
Years Ended September 30,
-----------------------------------------------------------------------
1999 1998 1997 1996 1995
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.60 $ 16.72 $ 14.06 $ 12.89 $ 11.48
From investment operations
Net investment income (loss) (0.00)(3) 0.04 0.14 0.20 0.16
Net realized and unrealized gains (losses) from
investments and foreign currency transactions 4.53 (0.30) 4.28 1.17 1.43
Total from investment operations 4.53 (0.26) 4.42 1.37 1.59
Less dividends and distributions
Dividends (from net investment income) -- (0.03) (0.13) (0.20) (0.18)
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)
Net asset value, end of period $ 15.32 $ 13.60 $ 16.72 $ 14.06 $ 12.89
Total Return 38.67% (1.60)% 34.56% 10.66% 14.05%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $379,356 $301,330 $357,023 $315,538 $354,396
Net expense ratio to average net assets(1) 1.35% 1.44% 1.51% 1.56% 1.64%
Ratio of net income (loss) to average net assets (0.22)% 0.25% 0.87% 1.39% 1.33%
Gross expense ratio to average net assets 1.35% 1.44% 1.51% 1.56% 1.64%
Portfolio turnover rate 173% 417%(2) 173% 112% 85%
</TABLE>
1. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
2. Portfolio turnover was greater than anticipated during this period as a
result of higher than normal trading activity undertaken in response to
market conditions that existed at that time.
3. Amount represents less than $0.01 per share.
See notes to financial statements.
<PAGE>
Berger Funds September 30, 1999 Annual Report
76
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
BERGER BALANCED FUND
For a Share Outstanding Throughout the Period
- ------------------------------------------------------------------------------------------------
Years Ended September 30,
-------------------------
1999 1998(1)
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 13.28 $ 10.00
From investment operations
Net investment income 0.23 0.22
Net realized and unrealized gains from
investments and foreign currency transactions 4.69 5.17
Total from investment operations 4.92 5.39
Less dividends and distributions
Dividends (from net investment income) (0.23) (0.21)
Distributions (from capital gains) (1.35) (1.90)
Total dividends and distributions (1.58) (2.11)
Net asset value, end of period $ 16.62 $ 13.28
Total Return 39.41% 56.77%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $122,766 $30,721
Net expense ratio to average net assets(2) 1.23% 1.50%
Ratio of net income to average net assets 1.63% 1.81%
Gross expense ratio to average net assets 1.23% 1.57%
Portfolio turnover rate 227% 658%(3)
</TABLE>
1. The Fund had no financial highlights for the one day of operations during
the period ended September 30, 1997.
2. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Advisor.
3. Portfolio turnover was greater than expected during this 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.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
BERGER/BIAM INTERNATIONAL FUND
For a Share Outstanding Throughout the Period
- -------------------------------------------------------------------------------------------------------------------
Years Ended September 30, Period from
------------------------ November 7, 1996(1) to
1999 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) (0.07) 0.50(2) 0.05
Net realized and unrealized gains (losses) from investments 3.01 (1.46)(2) 1.41
Total from investment operations 2.94 (0.96) 1.46
Less dividends and distributions
Dividends (from net investment income) (0.47) (0.06) --
Distributions (in excess of capital gains) (0.02) (0.38) --
Total dividends and distributions (0.49) (0.44) --
Net asset value, end of period $ 12.51 $ 10.06 $ 11.46
Total Return(3) 29.64% (8.46)% 14.60%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $23,014 $16,515 $18,673
Net expense ratio to average net assets(4,5) 1.76% 1.80% 1.90%(6)
Ratio of net income (loss) to average net assets (0.01)% 2.20% 0.61%(6)
Gross expense ratio to average net assets(5) 1.77% 1.83% 1.99%(6)
Portfolio turnover rate(3,7) 16% 17% 17%
</TABLE>
1. Commencement of investment operations.
2. Restated.
3. Not annualized.
4. Net expenses represent gross expenses reduced by fees waived and/or
reimbursed by the Portfolio's Advisor.
5. Reflects the Fund's expenses plus the Fund's pro rata share of the
Portfolio's expenses.
6. Annualized.
7. Represents the portfolio turnover rate of the Portfolio. All of the
investable assets of the Fund are invested in the Portfolio.
See notes to financial statements.
<PAGE>
Annual Report September 30, 1999 Berger Funds
77
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Boards of Directors/Trustees and Shareholders of Berger One Hundred Fund,
Inc., Berger Growth and Income Fund, Inc., Berger Omni Investment Trust,
Berger Investment Portfolio Trust, and Berger/BIAM Worldwide Funds Trust,
and to the Board of Trustees and Investors of Berger/BIAM Worldwide
Portfolios Trust
- --------------------------------------------------------------------------------
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights or ratios/supplemental data,
as applicable, present fairly, in all material respects, the financial position
of Berger One Hundred Fund, Inc., Berger Growth and Income Fund, Inc., Berger
Small Cap Value Fund (the sole fund comprising Berger Omni Investment Trust),
Berger Information Technology Fund, Berger New Generation Fund, Berger Select
Fund, Berger Small Company Growth Fund, Berger Mid Cap Growth Fund, Berger Mid
Cap Value Fund, and Berger Balanced Fund (constituting Berger Investment
Portfolio Trust), Berger/BIAM International Portfolio (the sole portfolio
comprising Berger/BIAM Worldwide Portfolios Trust), and Berger/BIAM
International Fund (one of the funds constituting Berger/BIAM Worldwide Funds
Trust) (collectively, the "Funds") at September 30, 1999, the results of each of
their operations for the periods indicated, the changes in each of their net
assets for each of the periods indicated and the financial highlights or
ratios/supplemental data for each of the periods indicated, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights or ratios/supplemental data (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards, which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above. The financial statements of
The Omni Investment Fund (now known as Berger Omni Investment Trust) and
InformationTech 100 Fund (now known as Berger Information Technology Fund) for
the years ended December 31, 1996 and February 28, 1999, respectively, were
audited by other independent accountants whose reports dated January 24, 1997
and March 26, 1999, respectively, expressed unqualified opinions on those
financial statements.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Denver, Colorado
November 4, 1999
<PAGE>
----------------
[LOGO] Shareholders with questions should write Bulk Rate
to: Berger Funds, P.O. Box 5005, U.S. Postage
Denver, CO 80217, or call (800) 551-5849. PAID
Visit our website at bergerfunds.com. Berger Funds
----------------
BERGER FUNDS
210 University Blvd
Denver, CO 80206
COMAR
<PAGE>
INTERNATIONAL
EQUITY
FUND
SEPTEMBER 30, 1999
ANNUAL REPORT
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
TABLE OF CONTENTS
EQUITY FUND
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
<S> <C>
PORTFOLIO MANAGER COMMENTARY.................. 2
STATEMENT OF ASSETS AND LIABILITIES........... 5
STATEMENT OF OPERATIONS....................... 6
STATEMENT OF CHANGES IN NET ASSETS............ 7
NOTES TO FINANCIAL STATEMENTS................. 8
FINANCIAL HIGHLIGHTS.......................... 12
REPORT OF INDEPENDENT ACCOUNTANTS............. 13
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS....................... 15
STATEMENT OF ASSETS AND LIABILITIES........... 20
STATEMENT OF OPERATIONS....................... 21
STATEMENT OF CHANGES IN NET ASSETS............ 22
NOTES TO FINANCIAL STATEMENTS................. 23
REPORT OF INDEPENDENT ACCOUNTANTS............. 28
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
PORTFOLIO MANAGER COMMENTARY
EQUITY FUND
PERFORMANCE
The International Equity Fund (the "Fund") had a total return of 30.36%(1)
for the year ended September 30, 1999 compared to 31.32% for the MSCI EAFE
Index.(2)
Global equity markets began the fiscal year last October with strong
performances, prompted primarily by interest rate reductions in both the U.S.
and Europe. In January, European markets benefited from the introduction of the
new single currency, the euro, and Japanese markets enjoyed positive investor
sentiment as a result of overseas buying. Markets in the rest of the Pacific
region turned in mixed results largely due to a pick-up in sentiment towards
Japan and the phenomenon of western multinationals seeking stakes in Asian
companies.
By the second calendar quarter 1999, the new euro currency received negative
press following a steady decline against the U.S. dollar and other major
currencies. We believe the euro is acting as a catalyst for change, however, and
increasing competition across Europe.
We remained extremely cautious about investing in Southeast Asia this year,
even though the acute financial crisis appears to be over. Although Japanese
figures have been strong, we believe Japan is a stock-picker's market because
not all companies will deliver on the promises they are making to investors. As
a result, we added to our Japanese holdings over the year on a stock-by-stock
basis.
YEAR IN REVIEW
Two groups of stocks led our portfolio higher this fiscal year: those in the
Growth in Telecommunications theme and Japanese-quoted stocks, particularly
those in our Technological Innovation theme.
The most notable performers among Growth in Telecommunications stocks for the
year were German-quoted Mannesmann and NTT Mobile Communications Network. NTT
Mobile Communications Network was among our strongest contributors during the
past six months. The company is Japan's dominant cellular phone operator and its
stock rose on the belief that the company will benefit from growing demand for
data transmission services through cellular phones. Two holdings--UK-quoted
Vodafone AirTouch Group and Telecom Italia--were involved in the merger and
acquisition activity that engulfed global telecommunication companies earlier in
the year.
Japanese-quoted stocks began their comeback early in our fiscal year and have
been our leading performers since March 31. Electronics exporters, in
particular, did well on the
2
<PAGE>
INTERNATIONAL EQUITY FUND
back of buoyant global demand for PCs, copiers, printers, mobile phones and
their related components. Leading the way was Murata Manufacturing, which raised
its net profit forecast by 25% for the coming year and announced plans to
increase its production capacity in response to demand for the electronic
components used in cellular phones. Semiconductor manufacturer Rohm also
increased its profit projections on the heels of higher-than-expected sales of
circuits for mobile communications equipment.
The primary reason we slightly lagged our benchmark for the year was the
performance of stocks in the Positive Banking Environment theme. After
strengthening early in the year, these stocks faltered the second half, largely
due to a negative interest rate environment. (Both the U.S. Federal Reserve
Board and the Bank of England raised interest rates in response to upward
pressure on inflation rates attributable to a stronger global economy.) One
example of the impact of interest-rate concerns was the response to National
Australia Bank. Even though the bank released results that were greeted
positively by analysts, its stock price fell.
LOOKING AHEAD
The pace of global economic change continues to accelerate and all of the
world's major economic regions are expanding. Europe is benefiting from the
combined effects of a monetary policy biased towards stimulating growth, a
competitive currency and general global recovery. The latest economic data in
the UK also reveal a significant acceleration in growth. Surveys show that
business confidence is increasing while unemployment is falling. Economic
activity in the Pacific Region continues its strong rebound.
As global growth gathers pace, we have been paying close attention to
developments in Japan. We are gradually beginning to be convinced that this
year's economic recovery may be sustainable. But, while many Japanese companies
are making very encouraging statements about restructuring, there is significant
execution risk for investors who are looking to take advantage of these changes.
There is a danger that Japanese companies may avoid making painful decisions
simply because their stock prices have recovered from their lows. Having said
that, we believe that there is real and substantial restructuring underway in
Japan and we are attempting to identify companies that are in the forefront of
this change.
(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 INTERNATIONAL MSCI EAFE COST OF
$1,000,000 INVESTMENT IN INTERNATIONAL EQUITY FUND INDEX LIVING INDEX
EQUITY FUND VS. MSCI EAFE INDEX $1,000,000 $1,000,000 $1,000,000
AND COST OF LIVING INDEX
INITIAL INVESTMENT $1,000,000
9/30/89
<S> <C> <C> <C>
VALUE OF SHARES
9/30/90 $1,076,693 $726,114 $1,061,600
9/30/91 $1,260,955 $888,079 $1,097,600
9/30/92 $1,499,004 $827,833 $1,130,400
9/30/93 $1,750,996 $1,049,311 $1,160,800
9/30/94 $1,932,271 $1,155,444 $1,195,200
9/30/95 $2,202,191 $1,226,021 $1,225,600
9/30/96 $2,471,115 $1,335,601 $1,262,400
9/30/97 $2,872,830 $1,602,475 $1,289,600
9/30/98 $2,649,570 $1,381,030 $1,308,800
9/30/99 $3,453,951 $1,813,506 $1,336,800
International Equity Fund(*)
Average Annual Total Return
As of September 30, 1999
1 Year 5 Years 10 Years
30.36% 12.32% 13.20%
Past performance is not predictive
of future performance.
International MSCI EAFE Cost Of
Equity Fund Index Living Index
$3,453,951 $1,813,506 $1,336,800
</TABLE>
* PERFORMANCE FIGURES ARE HISTORICAL AND DO NOT REPRESENT FUTURE RESULTS.
INVESTMENT RETURNS AND PRINCIPAL VALUE WILL VARY, AND YOU MAY HAVE A LOSS WHEN
YOU SELL SHARES. PERFORMANCE FIGURES ARE HISTORICAL AND, IN PART, REFLECT THE
PERFORMANCE OF A POOL OF ASSETS ADVISED BY BIAM (BANK OF IRELAND ASSET
MANAGEMENT) FOR PERIODS BEFORE THE FUND COMMENCED INVESTMENT OPERATIONS ON
OCTOBER 11, 1996, ADJUSTED TO REFLECT ANY INCREASED EXPENSES ASSOCIATED WITH
OPERATING THE FUND. THE ASSET POOL WAS NOT REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION AND THEREFORE WAS NOT SUBJECT TO THE INVESTMENT
RESTRICTIONS IMPOSED BY LAW ON REGISTERED MUTUAL FUNDS. IF THE POOL HAD BEEN
REGISTERED, ITS PERFORMANCE MIGHT HAVE BEEN ADVERSELY AFFECTED.
4
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
SEPTEMBER 30, 1999
<S> <C>
- ----------------------------------------------------------------------------
ASSETS
Investment in Berger/BIAM International Portfolio
("Portfolio"), at value $10,188,173
- ----------------------------------------------------------------------------
Total Assets 10,188,173
- ----------------------------------------------------------------------------
LIABILITIES
Accrued administrative services fee 850
- ----------------------------------------------------------------------------
Total Liabilities 850
- ----------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $10,187,323
============================================================================
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 8,525,969
Accumulated net investment loss (62,355)
Undistributed net realized loss from investments and
foreign currency transactions allocated from
Portfolio (388,079)
Net unrealized appreciation of investments
and foreign currency transactions 2,111,788
- ----------------------------------------------------------------------------
$10,187,323
============================================================================
Shares Outstanding (par value $0.01, unlimited shares
authorized) 799,021
============================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE $ 12.75
============================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividends (net of foreign withholding taxes of
$21,059) $ 151,328
Interest 14,943
Portfolio expenses (net of earnings credits and fee
waivers totaling $1,467) (94,443)
- -----------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 71,828
- -----------------------------------------------------------------------------
FUND EXPENSES
Administrative services fee 9,532
- -----------------------------------------------------------------------------
Total Fund Expenses 9,532
- -----------------------------------------------------------------------------
Net Investment Income 62,296
=============================================================================
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM
PORTFOLIO
Net realized loss on investments and foreign currency
transactions (202,341)
Net change in unrealized appreciation on investments
and foreign currency transactions 2,389,729
- -----------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments and
Foreign Currency Transactions Allocated from
Portfolio 2,187,388
- -----------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $2,249,684
=============================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
INTERNATIONAL EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 1998
<S> <C> <C>
- ------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 62,296 $ 222,763
Net realized loss on investments and foreign currency
transactions allocated from Portfolio (202,341) (184,550)
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions allocated
from Portfolio 2,389,729 (910,289)
- ------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations 2,249,684 (872,076)
- ------------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (220,704) (73,365)
In excess of net realized gains on investments and foreign
currency transactions (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 3,374,365 3,274,818
Net asset value of shares issued in reinvestment of
dividends and distributions 141,880 376,087
Payments for shares redeemed (2,502,514) (1,587,277)
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets Derived from Fund Share
Transactions 1,013,731 2,063,628
- ------------------------------------------------------------------------------------------
Net Increase in Net Assets 3,038,403 805,954
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 7,148,920 6,342,966
- ------------------------------------------------------------------------------------------
End of period $10,187,323 $ 7,148,920
==========================================================================================
Undistributed net investment income/
(Accumulated net investment loss) $ (62,355) $ 250,609
==========================================================================================
TRANSACTIONS IN FUND SHARES
Shares sold 281,520 277,815
Shares issued to shareholders in reinvestment of dividends
and distributions 12,217 36,630
Shares redeemed (208,199) (145,764)
- ------------------------------------------------------------------------------------------
Net Increase in Shares 85,538 168,681
- ------------------------------------------------------------------------------------------
Shares outstanding, beginning of period 713,483 544,802
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 799,021 713,483
==========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
INTERNATIONAL EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 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 (4% at September 30, 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 LLC ("Berger"), formerly Berger Associates, Inc., owns the
remaining 50% of the Advisor.
Effective September 30, 1999, Berger Associates, Inc. transferred its
operating assets and business to Berger. The transfer did not change the
investment objective or principal investment strategies of the Fund, or result
in any change to the day-to-day management of the Fund's investments.
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.
8
<PAGE>
INTERNATIONAL EQUITY FUND
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.
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, recordkeeping 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 net assets of the
Fund relative to the other investors in the Portfolio. Expenses directly
attributable to the Fund are charged against the operations of the Fund.
FEDERAL INCOME TAXES
Each series of the Trust is treated as a separate entity for federal income
tax purposes. The Fund's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no income tax
provision is required.
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.
For the fiscal year ended September 30, 1999, 100% of the capital gain
distributions of the Fund were long-term capital gains.
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 are reclassified to paid-in-capital.
9
<PAGE>
INTERNATIONAL EQUITY FUND
During the year ended September 30, 1999, the following reclassifications
were made:
<TABLE>
<S> <C>
Paid-in-Capital $ 116,491
Undistributed Net Investment
Income (154,556)
Undistributed Net Realized Gain 38,065
</TABLE>
At September 30, 1999, the Fund had a capital loss carryover in the amount of
$315,964, expiring on September 30, 2007, which may be used to offset future
realized capital gains for federal income tax purposes.
During the year ended September 30, 1999, the Fund paid $21,059 of foreign
taxes on $541,518 of foreign source income. The Fund will make the foreign tax
credit election to pass these taxes through to shareholders.
For the year ended September 30, 1999, the Fund incurred and elected to defer
post-October 31 net capital and/or currency losses totaling $169,207 to the year
ended September 30, 2000.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the Advisor serves
as the administrator of the Fund. Pursuant to such Agreement, the Fund is
obligated to pay the Advisor a fee at an annual rate equal to the lesser of
0.10% of its average daily net assets or the Advisor's annual cost to provide or
procure such services plus 0.01% of the Fund's average daily net assets. Under
the Agreement, the Advisor is responsible, at its own expense, for providing or
procuring all administrative services reasonably necessary for the operation of
the Fund, including recordkeeping and pricing services, custodian services,
transfer agency and dividend disbursing services, tax and audit services,
insurance, legal services, printing and mailing to shareholders of prospectuses
and other required 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
September 30, 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
10
<PAGE>
INTERNATIONAL EQUITY FUND
the Fund, and to perform certain accounting and recordkeeping functions. In
addition, IFTC has been appointed to serve as the Fund's custodian, transfer
agent and dividend disbursing agent. The cost of such services are covered under
the Administrative Services Agreement with the Advisor, as mentioned above.
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 Berger Information
Technology Fund, 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 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.
11
<PAGE>
INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
SEPTEMBER 30, PERIOD FROM
---------------------- OCTOBER 11, 1996(1) TO
1999 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) (0.15) 0.39(2) 0.10
Net realized and unrealized gains
(losses) from securities and
foreign
currency transactions 3.17 (1.28)(2) 1.54
- ------------------------------------------------------------------------------------------
Total from investment operations 3.02 (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 $ 12.75 $ 10.02 $ 11.64
==========================================================================================
Total Return (3) 30.36% (7.77%) 16.40%
==========================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $10,187 $ 7,149 $ 6,343
Net expense ratio to average
net assets (4)(5) 1.10% 1.08% 1.25%(6)
Ratio of net income to average
net assets 0.65% 3.30% 1.03%(6)
Gross expense ratio to average
net assets (5) 1.11% 1.12% 1.34%(6)
Portfolio turnover rate (3)(7) 16% 17% 17%
</TABLE>
<TABLE>
<C> <S>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. RESTATED.
3. NOT ANNUALIZED.
4. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED
BY THE PORTFOLIO'S ADVISOR.
5. REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE
OF THE PORTFOLIO'S EXPENSES.
6. ANNUALIZED.
7. REPRESENTS THE PORTFOLIO TURNOVER RATE OF THE PORTFOLIO. ALL
OF THE INVESTABLE ASSETS OF THE FUND ARE INVESTED IN THE
PORTFOLIO.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
INTERNATIONAL
REPORT OF INDEPENDENT ACCOUNTANTS
EQUITY FUND
To the Board of Trustees and Shareholders of
International Equity Fund
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
International Equity Fund (one of the funds constituting Berger/BIAM Worldwide
Funds Trust, hereafter referred to as the "Fund") at September 30, 1999, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and the financial highlights
for each of the two years in the period then ended and for the period
October 11, 1996 (commencement of investment operations) through September 30,
1997, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
[PRICEWATERHOUSECOOPERS LLP SIGNATURE]
PricewaterhouseCoopers LLP
Denver, Colorado
November 4, 1999
13
<PAGE>
BERGER/BIAM
INTERNATIONAL PORTFOLIO
ANNUAL REPORT
The following pages should be read in conjunction
with the International Equity Fund
Annual Report.
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - 96.51%
AUSTRALIA (4.40%)
36,425 Brambles Industries Business & Industrial Services $ 1,055,363
Ltd.
236,150 National Australia Commercial Banks & Other Banks 3,458,993
Bank Ltd.*
487,006 News Corp. Ltd.* Media 3,419,296
467,695 Telstra Corp. Ltd.* Utilities 2,425,525
212,370 Westpac Banking Corp. Commercial Banks & Other Banks 1,310,919
Ltd.*
------------
11,670,096
------------
DENMARK (0.55%)
24,375 Tele Danmark A.S.* Utilities 1,455,746
------------
FRANCE (7.79%)
18,626 Alcatel Alsthom* Computer/Commercial/Office
Equipment 2,568,434
40,932 AXA-UAP* Insurance - Multi/Property/
Casualty 5,181,959
34,250 Michelin - Class B* Automobile Components 1,617,614
41,322 Total S.A. - Oil 5,196,105
Class B*
86,557 Vivendi* Diversified Holding Companies 6,083,212
------------
20,647,324
------------
GERMANY (9.25%)
105,742 Bayerische Motoren Automobiles 2,992,886
Werk A.G. DM
41,060 Bayerische Hypo Commercial Banks & Other Banks 2,397,806
Vereinsbank A.G.
85,935 Hoechst A.G. Chemicals 3,742,736
68,855 Mannesmann A.G.* Machinery & Engineering
Services 11,006,341
57,121 Veba A.G. Diversified Industrials 3,131,812
67,080 Viag A.G. DM* Utilities 1,272,411
------------
24,543,992
------------
HONG KONG (0.63%)
148,000 Cheung Kong Real Estate 1,233,682
(Holdings) Ltd.
144,500 Hong Kong Electric Utilities 448,318
Holdings
------------
1,682,000
------------
</TABLE>
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
ITALY (2.44%)
306,353 ENI S.p.A.* Oil $ 1,922,879
524,257 Telecom Italia Utilities 4,558,783
S.p.A.*
------------
6,481,662
------------
JAPAN (18.41%)
5,400 ACOM Co. Ltd.* Insurance - Multi/Property/
Casualty 709,070
83,000 Bank of Tokyo- Commercial Banks & Other Banks 1,275,542
Mitsubishi Ltd.+
207,000 Canon, Inc.+ Computer/Commercial/Office
Equipment 6,031,581
65,000 Fuji Photo Film Co. Photo Equipment & Supplies 2,230,002
Ltd.
53,000 Honda Motor Co. Ltd. Automobiles 2,221,825
9,000 Hoya Corp. Electronics & Instruments 544,788
112,000 Kao Corp. Food & Grocery Products 3,168,718
5,200 Keyence Corp. Electronics & Instruments 1,392,988
4,700 Mabuchi Motor Co. Electronics & Instruments 612,294
Ltd.
47,000 Murata Manufacturing Electronics & Instruments 4,726,948
Co. Ltd.+
325 NTT Mobile Utilities 6,415,076
Communications
Network, Inc.+
11,700 Rohm Company Ltd. Electronics & Instruments 2,446,893
104,000 Shiseido Co. Ltd. Health & Personal Care 1,554,281
50,100 Sony Corp. Household Durables & Appliances 7,492,160
137,000 Takeda Chemical Health & Personal Care 7,404,361
Industries
3,600 Takefuji Corp. Insurance - Multi/Property/
Casualty 599,943
------------
48,826,470
------------
MALAYSIA (0.13%)
103,000 Hume Industries Construction & Building
Malaysia Bhd Materials 81,315
219,400 Sime Darby Bhd Diversified Holding Companies 254,042
------------
335,357
------------
NETHERLANDS (9.21%)
131,580 ABN Amro Holdings Commercial Banks & Other Banks 2,958,604
N.V.
71,000 Elsevier N.V.* Media 730,130
38,877 Fortis N.V. Commercial Banks & Other Banks 1,257,378
157,167 ING Groep N.V.* Insurance - Multi/Property/
Casualty 8,541,735
</TABLE>
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
107,280 Koninklijke Ahold Retail Trade $ 3,532,578
N.V.*
70,365 Koninklijke KPN N.V.* Utilities 3,085,610
48,480 Royal Dutch Petroleum Oil 2,815,617
Co.
58,840 TNT Post Group N.V. Utilities 1,498,598
------------
24,420,250
------------
NEW ZEALAND (0.15%)
101,787 Telecom Corp. of New Utilities 401,364
Zealand*
------------
PORTUGAL (0.28%)
46,450 Electricidade de Utilities 733,581
Portugal S.A.
------------
SINGAPORE (2.17%)
300,027 Development Bank of Commercial Banks & Other Banks 3,355,215
Singapore Ltd.
89,000 Oversea-Chinese Commercial Banks & Other Banks 691,465
Banking Corp. Ltd.+
109,000 Singapore Press Media 1,719,364
Holdings Ltd.*
------------
5,766,044
------------
SOUTH KOREA (0.79%)
29,125 Korea Telecom Corp. Utilities 1,077,625
ADR*
32,700 Pohang Iron & Steel Mining, Metals & Minerals 1,023,918
Company Ltd. ADR
------------
2,101,543
------------
SPAIN (2.29%)
322,472 Banco De Santander Commercial Banks & Other Banks 3,336,766
S.A.*
170,109 Telefonica S.A.* Utilities 2,724,588
------------
6,061,354
------------
SWEDEN (0.22%)
18,800 Telefonaktiebolaget Utilities 585,038
LM Ericsson - B
Shares
------------
SWITZERLAND (10.15%)
2,052 Alusuisse Lonza Group Fabricated Metal Products 2,364,376
A.G.*
2,870 Nestle S.A.* Food & Grocery Products 5,396,679
3,221 Novartis A.G. Reg.* Health & Personal Care 4,780,920
448 Roche Holding A.G.* Health & Personal Care 5,187,384
</TABLE>
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
2,492 Schweizerische Insurance - Multi/Property/
Rueckversicherungs* Casualty $ 4,976,688
14,921 Union Bank of Commercial Banks & Other Banks 4,208,563
Switzerland A.G. Reg.
------------
26,914,610
------------
THAILAND (0.11%)
143,000 Bangkok Bank PLC* Commercial Banks & Other Banks 281,351
------------
UNITED KINGDOM (27.54%)
320,220 Allied Zurich PLC Insurance - Multi/Property/
Casualty 3,758,095
101,630 AstraZeneca PLC Health & Personal Care 4,260,697
179,100 Barclays PLC Commercial Banks & Other Banks 5,256,259
309,767 British American Beverage Industry/Tobacco
Tobacco PLC Manufacturing 2,656,456
314,030 Cable & Wireless PLC Utilities 3,416,665
357,310 Cadbury Schweppes PLC Beverage Industry/Tobacco
Manufacturing 2,480,447
347,260 Diageo Ordinary PLC Beverage Industry/Tobacco
Manufacturing 3,546,715
100,276 Emi Group PLC Ord - Media 732,841
Class B*
204,675 Glaxo Wellcome PLC Health & Personal Care 5,336,417
428,232 Granada Group PLC Entertainment/Leisure/Toys 3,665,323
402,200 Hilton Group PLC Entertainment/Leisure/Toys 1,396,864
120,000 HSBC Holdings PLC Commercial Banks & Other Banks 1,374,906
620,164 Invensys PLC Machinery & Engineering
Services 3,021,538
20,701 Kingfisher PLC Retail Trade 221,820
331,680 Lloyds TSB Group PLC Commercial Banks & Other Banks 4,121,886
55,017 National Power PLC Utilities 428,792
113,520 National Westminster Commercial Banks & Other Banks 2,645,851
Bank PLC
241,350 Old Mutual PLC* Insurance - Multi/Property/
Casualty 514,454
77,520 Pearson PLC Media 1,662,600
369,765 Prudential PLC Insurance - Life & Agents/
Brokers 5,678,547
51,760 Railtrack Group PLC Road & Rail 1,088,817
651,232 Shell Transport & Oil 4,866,552
Trading Co. PLC
</TABLE>
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY VALUE
- --------- ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
185,300 TI Group PLC Machinery & Engineering
Services $ 1,354,216
376,400 Vodafone AirTouch Utilities 8,909,192
Group PLC
68,163 WPP Group PLC Media 633,909
------------
73,029,859
------------
TOTAL COMMON STOCK (cost $205,584,576) 255,937,641
------------
REPURCHASE AGREEMENT - 1.58%
U.S.A.
$4,197,000 State Street Repurchase Agreement, 4.85% dated
September 30, 1999, to be repurchased at $4,197,565 on
October 1, 1999, collateralized by FNMA Agency Note,
5.25% - January 10, 2001, with a value of $4,281,350 4,197,000
------------
TOTAL REPURCHASE AGREEMENT (Cost $4,197,000) 4,197,000
------------
Total Investments (Cost $209,781,576)(98.09%) 260,134,641
Total Other Assets, Less Liabilities (1.91%) 5,076,729
------------
Net Assets (100.00%) $265,211,370
============
</TABLE>
* NON-INCOME PRODUCING SECURITY.
+ SECURITY IS DESIGNATED AS COLLATERAL FOR FORWARD FOREIGN CURRENCY CONTRACTS.
ADR AMERICAN DEPOSITARY RECEIPT.
PLC PUBLIC LIMITED COMPANY.
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON APPRECIATION
CURRENCY AMOUNT DATE SEPTEMBER 30, 1999 (DEPRECIATION)
-------- ------ ---- ------------------ --------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 269,978,000 10/21/1999 $ 2,547,852 $(287,487)
Sell Japanese Yen 270,196,000 11/9/1999 2,558,412 (97,610)
Sell Japanese Yen 347,845,000 11/18/1999 3,306,350 (234,733)
Sell Japanese Yen 292,626,000 11/24/1999 2,777,469 (113,600)
Sell Japanese Yen 222,954,000 11/30/1999 2,118,259 (89,560)
Sell Japanese Yen 508,714,000 1/18/2000 4,873,933 (70,801)
----------- ---------
$18,182,275 $(893,791)
=========== =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------------
ASSETS
Investments, at cost $209,781,576
- -----------------------------------------------------------------------------------
Investments, at value $260,134,641
Cash 1,577
Foreign cash (cost $2,981,614) 3,003,561
Receivables
Investment securities sold 189,943
Contributions 4,813,729
Dividends 801,571
Interest 565
Due from Advisor 16,469
- -----------------------------------------------------------------------------------
Total Assets 268,962,056
- -----------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 1,553,600
Withdrawals 1,059,298
Accrued investment advisory fees 192,775
Accrued custodian fees 22,722
Accrued audit fees 28,500
Net unrealized depreciation on forward foreign currency
contracts 893,791
- -----------------------------------------------------------------------------------
Total Liabilities 3,750,686
- -----------------------------------------------------------------------------------
NET ASSETS $265,211,370
===================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends (net of foreign tax withholding of $482,012) $ 3,523,283
Interest 355,089
- -----------------------------------------------------------------------------------
Total Income 3,878,372
- -----------------------------------------------------------------------------------
Expenses
Investment advisory fees 2,010,034
Accounting fees 48,561
Custodian fees 96,448
Registration fees 3,535
Audit fees 37,500
Legal fees 6,863
Trustees' fees and expenses 22,213
Shareholder reporting fees 9,233
Other expenses 13,735
- -----------------------------------------------------------------------------------
Gross Expenses 2,248,122
Less fees waived by Advisor (16,581)
Less earnings credits (22,800)
- -----------------------------------------------------------------------------------
Net Expenses 2,208,741
- -----------------------------------------------------------------------------------
Net Investment Income 1,669,631
- -----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized loss on investments and foreign currency
transactions (5,205,587)
Net change in unrealized appreciation on investments and
foreign
currency transactions 58,159,547
- -----------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments and Foreign
Currency Transactions 52,953,960
- -----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 54,623,591
===================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
FROM OPERATIONS:
Net investment income $ 1,669,631 $ 5,874,066
Net realized loss on investments and foreign
currency transactions (5,205,587) (4,726,150)
Net change in unrealized appreciation
(depreciation) on investments and foreign currency
transactions 58,159,547 (15,953,893)
- ---------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations 54,623,591 (14,805,977)
- ---------------------------------------------------------------------------------
FROM INVESTORS' BENEFICIAL INTEREST TRANSACTIONS
Contributions 161,557,439 103,931,701
Withdrawals (128,565,460) (33,746,924)
- ---------------------------------------------------------------------------------
Net Increase in Net Assets Derived From Investors'
Beneficial Interest Transactions 32,991,979 70,184,777
- ---------------------------------------------------------------------------------
Net Increase in Net Assets 87,615,570 55,378,800
- ---------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
- ---------------------------------------------------------------------------------
End of period $ 265,211,370 $177,595,800
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, PERIOD FROM
------------------- OCTOBER 11,1996(1)
1999 1998 TO SEPTEMBER 30, 1997
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in thousands) $265,211 $177,596 $122,217
Net expense ratio to average net assets(3) 1.00% 1.00% 0.89%(2)
Ratio of net income to average net assets 0.75% 3.45% 1.63%(2)
Gross expense ratio to average net assets 1.01% 1.04% 1.10%(2)
Portfolio turnover rate(4) 16% 17% 17%
</TABLE>
<TABLE>
<C> <S>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. ANNUALIZED.
3. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED
BY THE ADVISOR.
4. NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
22
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 a diversified 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 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 of the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
management of the Portfolio to BIAM. Berger LLC ("Berger"), formerly Berger
Associates, Inc., and BIAM each own 50% of BBOI. Effective September 30, 1999,
Berger Associates, Inc. transferred its operating assets and business to Berger.
The transfer did not result in any change to the investment objective or
principal investment strategies of the Portfolio, or result in any change to the
day-to-day management of the Portfolio's investments.
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
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
23
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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 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 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. 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 of the Portfolio.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income is recorded on the ex-dividend date except
that certain dividends from foreign securities are reported as soon as the
Portfolio is informed of the ex-dividend date if such information is obtained
subsequent to the ex-dividend date. Dividend income is recorded net of foreign
taxes withheld. Interest income is recorded on the accrual basis and includes
accretion of discount and amortization of premium. Gains and losses are computed
on the identified cost basis for both financial statement and federal income tax
purposes for all securities.
24
<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.
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 pays BIAM a sub-advisory fee from the investment advisory fee it
receives from the Portfolio.
The Portfolio has also entered into recordkeeping and pricing agreements with
Investors Fiduciary Trust Company ("IFTC"), which also serves as the Portfolio's
custodian and transfer agent. The recordkeeping and pricing agreements provide
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
(which consists of Berger Information Technology Fund, 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 Growth & Income Fund and Berger Balanced Fund) (collectively, the
"Funds"). IFTC's fees for custody, recordkeeping, pricing and transfer agency
services are subject to reduction by credits earned by the Portfolio, based on
the cash balances of the Portfolio held by IFTC as custodian and 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 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 year ended September 30, 1999, totaled $22,213.
The Trust adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
non-affiliated trustees to defer the receipt of all or a portion of the trustee
fees payable. The deferred fees are invested in various Berger Funds until
distribution in accordance with the Plan.
25
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) during the year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
- ----------- -----------
<S> <C>
$65,551,376 $33,821,723
</TABLE>
There were no purchases or sales of long-term U.S. government securities
during the year ended September 30, 1999.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At September 30, 1999, the federal tax cost of securities and the composition
of net unrealized appreciation (depreciation) of investment securities held was
as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Federal Tax Cost Appreciation Depreciation Net
- ---------------- ------------ ------------ -----------
<S> <C> <C> <C>
$209,783,264 $59,176,867 $(8,825,490) $50,351,377
</TABLE>
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. Risk 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.
REPURCHASE AGREEMENTS
Repurchase agreements held by the Portfolio are fully collateralized by U.S.
government securities and such collateral is in the possession of the
Portfolio'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
26
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
on the obligation to repurchase, the Portfolio 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 RISK
The Portfolio 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 Portfolio to additional risk resulting from
future political or economic conditions and/or possible impositions of adverse
foreign governmental laws or currency exchange restrictions. Net Realized and
Unrealized Gain (Loss) on Investments and Foreign Currency Transactions in the
Statement of Operations includes fluctuations from currency exchange rates and
fluctuations in market value.
4. LINE OF CREDIT
The Portfolio, along with certain of the Berger Funds, is party to an ongoing
agreement with certain banks that allows these Funds and the Portfolio,
collectively, to borrow up to $150 million, subject to certain conditions, for
temporary or emergency purposes. Interest on borrowings, if any, is charged to
the specific Fund or Portfolio that executes the borrowing at the Federal Funds
Rate plus 50 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 September 30, 1999, the Portfolio had no borrowings
outstanding on the line of credit.
27
<PAGE>
- --------------------------------------------------------------------------------
BERGER/BIAM
REPORT OF INDEPENDENT ACCOUNTANTS
INTERNATIONAL PORTFOLIO
To the Board of Trustees and Investors of
Berger/BIAM Worldwide Portfolios Trust
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the ratios/supplemental data present fairly, in all
material respects, the financial position of Berger/BIAM International Portfolio
(the sole portfolio comprising Berger/BIAM Worldwide Portfolios Trust, hereafter
referred to as the "Portfolio") at September 30, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the ratios/ supplemental data for
each of the two years in the period then ended and for the period October 11,
1996 (commencement of investment operations) through September 30, 1997, in
conformity with generally accepted accounting principles. These financial
statements and ratios/supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
[PRICEWATERHOUSECOOPERS LLP SIGNATURE]
PricewaterhouseCoopers LLP
Denver, Colorado
November 4, 1999
28
<PAGE>
IEFAR
<PAGE>
BERGER FUNDS
Annual Report
September 30, 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 MANAGER COMMENTARY.................. 2
STATEMENT OF ASSETS AND LIABILITIES........... 5
STATEMENT OF OPERATIONS....................... 6
STATEMENT OF CHANGES IN NET ASSETS............ 7
NOTES TO FINANCIAL STATEMENTS................. 8
FINANCIAL HIGHLIGHTS.......................... 12
REPORT OF INDEPENDENT ACCOUNTANTS............. 13
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS....................... 15
STATEMENT OF ASSETS AND LIABILITIES........... 20
STATEMENT OF OPERATIONS....................... 21
STATEMENT OF CHANGES IN NET ASSETS............ 22
NOTES TO FINANCIAL STATEMENTS................. 23
REPORT OF INDEPENDENT ACCOUNTANTS............. 28
</TABLE>
1
<PAGE>
- --------------------------------------------------------------------------------
BERGER/BIAM
PORTFOLIO MANAGER COMMENTARY
INTERNATIONAL CORE FUND
PERFORMANCE
The Berger/BIAM International CORE Fund (the "Fund") had a total return of
30.45%(1) for the year ended September 30, 1999 compared to 31.32% for the MSCI
EAFE Index.(2)
Global equity markets began the fiscal year last October with strong
performances, prompted primarily by interest rate reductions in both the U.S.
and Europe. In January, European markets benefited from the introduction of the
new single currency, the euro, and Japanese markets enjoyed positive investor
sentiment as a result of overseas buying. Markets in the rest of the Pacific
region turned in mixed results largely due to a pick-up in sentiment towards
Japan and the phenomenon of western multinationals seeking stakes in Asian
companies.
By the second calendar quarter 1999, the new euro currency received negative
press following a steady decline against the U.S. dollar and other major
currencies. We believe the euro is acting as a catalyst for change, however, and
increasing competition across Europe.
We remained extremely cautious about investing in Southeast Asia this year,
even though the acute financial crisis appears to be over. Although Japanese
figures have been strong, we believe Japan is a stock-picker's market because
not all companies will deliver on the promises they are making to investors. As
a result, we added to our Japanese holdings over the year on a stock-by-stock
basis.
YEAR IN REVIEW
Two groups of stocks led our portfolio higher this fiscal year: those in the
Growth in Telecommunications theme and Japanese-quoted stocks, particularly
those in our Technological Innovation theme.
The most notable performers among Growth in Telecommunications stocks for the
year were German-quoted Mannesmann and NTT Mobile Communications Network. NTT
Mobile Communications Network was among our strongest contributors during the
past six months. The company is Japan's dominant cellular phone operator and its
stock rose on the belief that the company will benefit from growing demand for
data transmission services through cellular phones. Two holdings --UK-quoted
Vodafone AirTouch Group and Telecom Italia --were involved in the merger and
acquisition activity that engulfed global telecommunication companies earlier in
the year.
Japanese-quoted stocks began their comeback early in our fiscal year and have
been our leading performers since March 31. Electronics exporters, in
particular, did well on the
2
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
back of buoyant global demand for PCs, copiers, printers, mobile phones and
their related components. Leading the way was Murata Manufacturing, which raised
its net profit forecast by 25% for the coming year and announced plans to
increase its production capacity in response to demand for the electronic
components used in cellular phones. Semiconductor manufacturer Rohm also
increased its profit projections on the heels of higher-than-expected sales of
circuits for mobile communications equipment.
The primary reason we slightly lagged our benchmark for the year was the
performance of stocks in the Positive Banking Environment theme. After
strengthening early in the year, these stocks faltered the second half, largely
due to a negative interest rate environment. (Both the U.S. Federal Reserve
Board and the Bank of England raised interest rates in response to upward
pressure on inflation rates attributable to a stronger global economy.) One
example of the impact of interest-rate concerns was the response to National
Australia Bank. Even though the bank released results that were greeted
positively by analysts, its stock price fell.
LOOKING AHEAD
The pace of global economic change continues to accelerate and all of the
world's major economic regions are expanding. Europe is benefiting from the
combined effects of a monetary policy biased towards stimulating growth, a
competitive currency and general global recovery. The latest economic data in
the UK also reveal a significant acceleration in growth. Surveys show that
business confidence is increasing while unemployment is falling. Economic
activity in the Pacific Region continues its strong rebound.
As global growth gathers pace, we have been paying close attention to
developments in Japan. We are gradually beginning to be convinced that this
year's economic recovery may be sustainable. But, while many Japanese companies
are making very encouraging statements about restructuring, there is significant
execution risk for investors who are looking to take advantage of these changes.
There is a danger that Japanese companies may avoid making painful decisions
simply because their stock prices have recovered from their lows. Having said
that, we believe that there is real and substantial restructuring underway in
Japan and we are attempting to identify companies that are in the forefront of
this change.
(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 BERGER/BIAM INTERNATIONAL MSCI EAFE INDEX COST OF LIVING INDEX
IN BERGER/BIAM INTERNATIONAL CORE FUND VS. CORE FUND
MSCI EAFE INDEX AND COST OF LIVING INDEX
INITIAL INVESTMENT $1,000,000
<S> <C> <C> <C>
9/30/89 $1,000,000 $1,000,000 $1,000,000
9/30/90 $1,076,617 $726,114 $1,061,600
9/30/91 $1,260,696 $888,079 $1,097,600
9/30/92 $1,501,493 $827,833 $1,130,400
9/30/93 $1,758,209 $1,049,311 $1,160,800
9/30/94 $1,940,298 $1,155,444 $1,195,200
9/30/95 $2,211,940 $1,226,021 $1,225,600
9/30/96 $2,481,593 $1,335,601 $1,262,400
9/30/97 $2,893,033 $1,502,475 $1,289,600
9/30/98 $2,667,647 $1,381,030 $1,308,800
9/30/99 $3,479,893 $1,813,506 $1,336,800
BERGER/BIAM INTERNATIONAL CORE FUND*
AVERAGE ANNUAL TOTAL RETURN
AS OF SEPTEMBER 30, 1999
1 YEAR 30.45%
5 YEARS 12.39%
10 YEARS 13.28%
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE
PERFORMANCE.
BERGER/BIAM INTERNATIONAL CORE FUND $3,479,893
MSCI EAFE INDEX $1,813,506
COST OF LIVING INDEX $1,336,800
</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>
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------
ASSETS
Investment in Berger/BIAM International Portfolio
("Portfolio"), at value $ 231,736,827
Receivable from fund shares sold 1,309,337
- -----------------------------------------------------------------------------
Total Assets 233,046,164
- -----------------------------------------------------------------------------
LIABILITIES
Payable for fund shares redeemed 1,048,039
Accrued administrative services fee 13,249
- -----------------------------------------------------------------------------
Total Liabilities 1,061,288
- -----------------------------------------------------------------------------
NET ASSETS APPLICABLE TO SHARES OUTSTANDING $ 231,984,876
=============================================================================
COMPONENTS OF NET ASSETS
Capital (par value and paid in surplus) $ 198,518,776
Accumulated net investment loss (496,496)
Undistributed net realized loss from investments
and foreign currency transactions allocated from
Portfolio (7,013,380)
Net unrealized appreciation of investments
and foreign currency transactions 40,975,976
- -----------------------------------------------------------------------------
$ 231,984,876
=============================================================================
Shares Outstanding (par value $0.01, unlimited shares
authorized) 17,234,305
=============================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE $ 13.46
=============================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------
NET INVESTMENT INCOME ALLOCATED FROM PORTFOLIO
Dividends (net of foreign withholding taxes of
$418,229) $ 3,056,640
Interest 308,933
Portfolio expenses (net of earnings credits and fee
waivers totaling $34,426) (1,917,582)
- -----------------------------------------------------------------------------
Net Investment Income Allocated from Portfolio 1,447,991
- -----------------------------------------------------------------------------
FUND EXPENSES
Administrative services fee 110,722
- -----------------------------------------------------------------------------
Total Fund Expenses 110,722
- -----------------------------------------------------------------------------
Net Investment Income 1,337,269
- -----------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS ALLOCATED FROM
PORTFOLIO
Net realized loss on investments and foreign currency
transactions (4,523,057)
Net change in unrealized appreciation on investments
and foreign currency transactions 50,007,723
- -----------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments and
Foreign Currency Transactions Allocated from
Portfolio 45,484,666
- -----------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 46,821,935
=============================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 1998
<S> <C> <C>
- -----------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 1,337,269 $ 4,969,731
Net realized loss on investments and foreign currency
transactions allocated from Portfolio (4,523,057) (3,975,554)
Net change in unrealized appreciation (depreciation) on
investments and foreign currency transactions allocated
from Portfolio 50,007,723 (13,623,073)
- -----------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations 46,821,935 (12,628,896)
- -----------------------------------------------------------------------------------------
FROM DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (4,788,864) (733,103)
In excess of net realized gains on investments and foreign
currency transactions -- (796,911)
- -----------------------------------------------------------------------------------------
Net Decrease in Net Assets from Dividends and Distributions
to Shareholders (4,788,864) (1,530,014)
- -----------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS
Proceeds from shares sold 88,432,883 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 (56,967,767) (14,435,770)
- -----------------------------------------------------------------------------------------
Net Increase in Net Assets Derived from Fund Share
Transactions 36,033,860 70,900,136
- -----------------------------------------------------------------------------------------
Net Increase in Net Assets 78,066,931 56,741,226
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 153,917,945 97,176,719
- -----------------------------------------------------------------------------------------
End of period $231,984,876 $153,917,945
=========================================================================================
Undistributed net investment income/(Accumulated net
investment loss) $ (496,496) $ 6,251,047
=========================================================================================
TRANSACTIONS IN FUND SHARES
Shares sold 6,732,176 7,326,169
Shares issued to shareholders in reinvestment of dividends
and distributions 372,351 118,050
Shares redeemed (4,387,147) (1,252,878)
- -----------------------------------------------------------------------------------------
Net Increase in Shares 2,717,380 6,191,341
- -----------------------------------------------------------------------------------------
Shares outstanding, beginning of period 14,516,925 8,325,584
- -----------------------------------------------------------------------------------------
Shares outstanding, end of period 17,234,305 14,516,925
=========================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 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 (87% at September 30, 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 LLC
("Berger"), formerly Berger Associates, Inc., owns the remaining 50% of the
Advisor.
Effective September 30, 1999, Berger Associates, Inc. transferred its
operating assets and business to Berger. The transfer did not change the
investment objective or principal investment strategies of the Fund, or result
in any change to the day-to-day management of the Fund's investments.
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
8
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
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.
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, recordkeeping 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 net assets of the
Fund relative to the other investors in the Portfolio. Expenses directly
attributable to the Fund are charged against the operations of the Fund.
FEDERAL INCOME TAXES
Each series of the Trust is treated as a separate entity for federal income
tax purposes. The Fund's policy is to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no income tax
provision is required.
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 are reclassified to paid-in-capital.
During the year ended September 30, 1999, the following reclassifications
were made:
<TABLE>
<S> <C>
Paid-in-Capital $ 159,926
Undistributed Net Investment Income (3,295,948)
Undistributed Net Realized Gain 3,136,022
</TABLE>
9
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
At September 30, 1999, the Fund had the following capital loss carryovers
which may be used to offset future realized capital gains for federal income tax
purposes:
<TABLE>
<CAPTION>
EXPIRING ON:
- ------------
<S> <C>
September 30, 2006 $ 38,805
September 30, 2007 6,710,874
----------
Total capital loss carryovers $6,749,679
==========
</TABLE>
During the year ended September 30, 1999, the Fund paid $418,229 of foreign
taxes on $10,916,538 of foreign source income. The Fund will make the foreign
tax credit election to pass these taxes through to shareholders.
For the year ended September 30, 1999, the Fund incurred and elected to defer
post-October 31 net capital and/or currency losses totaling $2,362,430, to the
year ended September 30, 2000.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
2. AGREEMENTS
Under an Administrative Services Agreement with the Fund, the Advisor serves
as the administrator of the Fund. Pursuant to such Agreement, the Fund pays the
Advisor a fee at an annual rate equal to the lesser of 0.10% of its average
daily net assets or the Advisor's annual cost to provide or procure such
services plus 0.01% of the Fund's average daily net assets. Under the Agreement,
the Advisor is responsible, at its own expense, for providing or procuring all
administrative services reasonably necessary for the operation of the Fund,
including recordkeeping and pricing services, custodian services, transfer
agency and dividend disbursing services, tax and audit services, insurance,
legal services, printing and mailing to shareholders of prospectuses and other
required 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 September 30, 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. In addition,
10
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
IFTC has been appointed to serve as the Fund's custodian, transfer agent and
dividend disbursing agent. The cost of such services are covered under the
Administrative Services Agreement with the Advisor, as mentioned above.
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 Berger Information
Technology Fund, 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 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.
11
<PAGE>
BERGER/BIAM INTERNATIONAL CORE FUND
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
<TABLE>
<CAPTION>
YEARS ENDED
SEPTEMBER 30, PERIOD FROM
------------------------- OCTOBER 11, 1996(1) TO
1999 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) (0.12) 0.43(2) 0.08
Net realized and unrealized gains
(losses) from securities and
foreign currency transactions 3.32 (1.34)(2) 1.59
- -----------------------------------------------------------------------------------------
Total from investment
operations 3.20 (0.91) 1.67
- -----------------------------------------------------------------------------------------
Less dividends and distributions
Dividends (from net investment
income) (0.34) (0.08) --
Distributions (in excess of
capital gains) -- (0.08) --
- -----------------------------------------------------------------------------------------
Total dividends and
distributions (0.34) (0.16) --
- -----------------------------------------------------------------------------------------
Net asset value, end of period $ 13.46 $ 10.60 $ 11.67
=========================================================================================
Total Return (3) 30.45% (7.79)% 16.70%
=========================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in
thousands) $231,985 $153,918 $ 97,177
Net expense ratio to average
net assets (4)(5) 1.06% 1.08% 1.10%(6)
Ratio of net income (loss) to average
net assets 0.69% 3.44% 1.62%(6)
Gross expense ratio to average
net assets (5) 1.06% 1.12% 1.20%(6)
Portfolio turnover rate (3)(7) 16% 17% 17%
</TABLE>
<TABLE>
<C> <S>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. RESTATED.
3. NOT ANNUALIZED.
4. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED
BY THE PORTFOLIO'S ADVISOR.
5. REFLECTS THE FUND'S EXPENSES PLUS THE FUND'S PRO RATA SHARE
OF THE PORTFOLIO'S EXPENSES.
6. ANNUALIZED.
7. REPRESENTS THE PORTFOLIO TURNOVER RATE OF THE PORTFOLIO. ALL
OF THE INVESTABLE ASSETS OF THE FUND ARE INVESTED IN THE
PORTFOLIO.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
12
<PAGE>
- --------------------------------------------------------------------------------
BERGER/BIAM
REPORT OF INDEPENDENT ACCOUNTANTS
INTERNATIONAL CORE FUND
To the Board of Trustees and Shareholders of
Berger/BIAM International CORE Fund
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Berger/BIAM International CORE Fund (one of the funds constituting Berger/BIAM
Worldwide Funds Trust, hereafter referred to as the "Fund") at September 30,
1999, the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended and the financial
highlights for each of the two years in the period then ended and for the period
October 11, 1996 (commencement of investment operations) through September 30,
1997, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
[PRICEWATERHOUSECOOPERS LLP SIGNATURE]
PricewaterhouseCoopers LLP
Denver, Colorado
November 4, 1999
13
<PAGE>
BERGER/BIAM
INTERNATIONAL PORTFOLIO
ANNUAL REPORT
The following pages should be read in conjunction
with the Berger/BIAM International CORE Fund
Annual Report.
14
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - 96.51%
AUSTRALIA (4.40%)
36,425 Brambles Industries Ltd. Business & Industrial Services $ 1,055,363
236,150 National Australia Bank Ltd.* Commercial Banks & Other Banks 3,458,993
487,006 News Corp. Ltd.* Media 3,419,296
467,695 Telstra Corp. Ltd.* Utilities 2,425,525
212,370 Westpac Banking Corp. Ltd.* Commercial Banks & Other Banks 1,310,919
-----------
11,670,096
-----------
DENMARK (0.55%)
24,375 Tele Danmark A.S.* Utilities 1,455,746
-----------
FRANCE (7.79%)
18,626 Alcatel Alsthom* Computer/Commercial/Office
Equipment 2,568,434
40,932 AXA-UAP* Insurance - Multi/Property/
Casualty 5,181,959
34,250 Michelin - Class B* Automobile Components 1,617,614
41,322 Total S.A. - Class B* Oil 5,196,105
86,557 Vivendi* Diversified Holding Companies 6,083,212
-----------
20,647,324
-----------
GERMANY (9.25%)
105,742 Bayerische Motoren Werk A.G. DM Automobiles 2,992,886
41,060 Bayerische Hypo Vereinsbank A.G. Commercial Banks & Other Banks 2,397,806
85,935 Hoechst A.G. Chemicals 3,742,736
68,855 Mannesmann A.G.* Machinery & Engineering Services 11,006,341
57,121 Veba A.G. Diversified Industrials 3,131,812
67,080 Viag A.G. DM* Utilities 1,272,411
-----------
24,543,992
-----------
HONG KONG (0.63%)
148,000 Cheung Kong (Holdings) Ltd. Real Estate 1,233,682
144,500 Hong Kong Electric Holdings Utilities 448,318
-----------
1,682,000
-----------
ITALY (2.44%)
306,353 ENI S.p.A.* Oil 1,922,879
</TABLE>
15
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
524,257 Telecom Italia S.p.A.* Utilities $ 4,558,783
-----------
6,481,662
-----------
JAPAN (18.41%)
5,400 ACOM Co. Ltd.* Insurance - Multi/Property/
Casualty 709,070
83,000 Bank of Tokyo-Mitsubishi Ltd.+ Commercial Banks & Other Banks 1,275,542
207,000 Canon, Inc.+ Computer/Commercial/Office
Equipment 6,031,581
65,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplies 2,230,002
53,000 Honda Motor Co. Ltd. Automobiles 2,221,825
9,000 Hoya Corp. Electronics & Instruments 544,788
112,000 Kao Corp. Food & Grocery Products 3,168,718
5,200 Keyence Corp. Electronics & Instruments 1,392,988
4,700 Mabuchi Motor Co. Ltd. Electronics & Instruments 612,294
47,000 Murata Manufacturing Co. Ltd.+ Electronics & Instruments 4,726,948
325 NTT Mobile Communications Utilities 6,415,076
Network, Inc.+
11,700 Rohm Company Ltd. Electronics & Instruments 2,446,893
104,000 Shiseido Co. Ltd. Health & Personal Care 1,554,281
50,100 Sony Corp. Household Durables & Appliances 7,492,160
137,000 Takeda Chemical Industries Health & Personal Care 7,404,361
3,600 Takefuji Corp. Insurance - Multi/Property/
Casualty 599,943
-----------
48,826,470
-----------
MALAYSIA (0.13%)
103,000 Hume Industries Construction & Building
Malaysia Bhd Materials 81,315
219,400 Sime Darby Bhd Diversified Holding Companies 254,042
-----------
335,357
-----------
NETHERLANDS (9.21%)
131,580 ABN Amro Holdings N.V. Commercial Banks & Other Banks 2,958,604
71,000 Elsevier N.V.* Media 730,130
38,877 Fortis N.V. Commercial Banks & Other Banks 1,257,378
157,167 ING Groep N.V.* Insurance - Multi/Property/
Casualty 8,541,735
107,280 Koninklijke Ahold N.V.* Retail Trade 3,532,578
70,365 Koninklijke KPN N.V.* Utilities 3,085,610
48,480 Royal Dutch Petroleum Co. Oil 2,815,617
</TABLE>
16
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
58,840 TNT Post Group N.V. Utilities $ 1,498,598
-----------
24,420,250
-----------
NEW ZEALAND (0.15%)
101,787 Telecom Corp. of New Zealand* Utilities 401,364
-----------
PORTUGAL (0.28%)
46,450 Electricidade de Portugal S.A. Utilities 733,581
-----------
SINGAPORE (2.17%)
300,027 Development Bank of Singapore Ltd. Commercial Banks & Other Banks 3,355,215
89,000 Oversea-Chinese Banking Corp. Ltd.+ Commercial Banks & Other Banks 691,465
109,000 Singapore Press Holdings Ltd.* Media 1,719,364
-----------
5,766,044
-----------
SOUTH KOREA (0.79%)
29,125 Korea Telecom Corp. ADR* Utilities 1,077,625
32,700 Pohang Iron & Steel Company Ltd. Mining, Metals & Minerals 1,023,918
ADR
-----------
2,101,543
-----------
SPAIN (2.29%)
322,472 Banco De Santander S.A.* Commercial Banks & Other Banks 3,336,766
170,109 Telefonica S.A.* Utilities 2,724,588
-----------
6,061,354
-----------
SWEDEN (0.22%)
18,800 Telefonaktiebolaget LM Ericsson - B Utilities 585,038
Shares
-----------
SWITZERLAND (10.15%)
2,052 Alusuisse Lonza Group A.G.* Fabricated Metal Products 2,364,376
2,870 Nestle S.A.* Food & Grocery Products 5,396,679
3,221 Novartis A.G. Reg.* Health & Personal Care 4,780,920
448 Roche Holding A.G.* Health & Personal Care 5,187,384
</TABLE>
17
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES COMPANY INDUSTRY VALUE
- ------ ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
2,492 Schweizerische Insurance - Multi/Property/
Rueckversicherungs* Casualty $ 4,976,688
14,921 Union Bank of Switzerland A.G. Reg. Commercial Banks & Other Banks 4,208,563
-----------
26,914,610
-----------
THAILAND (0.11%)
143,000 Bangkok Bank PLC* Commercial Banks & Other Banks 281,351
-----------
UNITED KINGDOM (27.54%)
320,220 Allied Zurich PLC Insurance - Multi/Property/
Casualty 3,758,095
101,630 AstraZeneca PLC Health & Personal Care 4,260,697
179,100 Barclays PLC Commercial Banks & Other Banks 5,256,259
309,767 British American Beverage Industry/Tobacco
Tobacco PLC Manufacturing 2,656,456
314,030 Cable & Wireless PLC Utilities 3,416,665
357,310 Cadbury Schweppes PLC Beverage Industry/Tobacco
Manufacturing 2,480,447
347,260 Diageo Ordinary PLC Beverage Industry/Tobacco
Manufacturing 3,546,715
100,276 Emi Group PLC Ord - Class B* Media 732,841
204,675 Glaxo Wellcome PLC Health & Personal Care 5,336,417
428,232 Granada Group PLC Entertainment/Leisure/Toys 3,665,323
402,200 Hilton Group PLC Entertainment/Leisure/Toys 1,396,864
120,000 HSBC Holdings PLC Commercial Banks & Other Banks 1,374,906
620,164 Invensys PLC Machinery & Engineering Services 3,021,538
20,701 Kingfisher PLC Retail Trade 221,820
331,680 Lloyds TSB Group PLC Commercial Banks & Other Banks 4,121,886
55,017 National Power PLC Utilities 428,792
113,520 National Westminster Bank PLC Commercial Banks & Other Banks 2,645,851
241,350 Old Mutual PLC* Insurance - Multi/Property/
Casualty 514,454
77,520 Pearson PLC Media 1,662,600
369,765 Prudential PLC Insurance - Life & Agents/ Brokers 5,678,547
51,760 Railtrack Group PLC Road & Rail 1,088,817
651,232 Shell Transport & Trading Co. PLC Oil 4,866,552
</TABLE>
18
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
<TABLE>
<CAPTION>
COUNTRY/
SHARES/
PAR VALUE COMPANY INDUSTRY VALUE
- --------- ------- -------- -----
<C> <S> <C> <C>
COMMON STOCK - CONTINUED
185,300 TI Group PLC Machinery & Engineering Services $ 1,354,216
376,400 Vodafone AirTouch Group PLC Utilities 8,909,192
68,163 WPP Group PLC Media 633,909
-----------
73,029,859
-----------
TOTAL COMMON STOCK (cost $205,584,576) 255,937,641
-----------
REPURCHASE AGREEMENT -1.58%
$4,197,000 State Street Repurchase Agreement, 4.85% dated September 30, 1999, to be
repurchased at $4,197,565 on October 1, 1999, collateralized by FNMA
Agency Note,
5.25% - January 10, 2001, with a value of $4,281,350 4,197,000
-----------
TOTAL REPURCHASE AGREEMENT (cost $4,197,000) 4,197,000
-----------
Total Investments (cost $209,781,576) (98.09%) 260,134,641
Total Other Assets, Less Liabilities (1.91%) 5,076,729
-----------
Net Assets (100.00%) $265,211,370
===========
</TABLE>
* NON-INCOME PRODUCING SECURITY.
+ SECURITY IS DESIGNATED AS COLLATERAL FOR FORWARD FOREIGN CURRENCY CONTRACTS.
ADR AMERICAN DEPOSITARY RECEIPT.
PLC PUBLIC LIMITED COMPANY.
OUTSTANDING FORWARD FOREIGN CURRENCY CONTRACTS
<TABLE>
<CAPTION>
UNREALIZED
CONTRACT MATURITY VALUE ON APPRECIATION/
CURRENCY AMOUNT DATE SEPTEMBER 30, 1999 (DEPRECIATION)
-------- ------ ---- ------------------ --------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 269,978,000 10/21/1999 $ 2,547,852 $ (287,487)
Sell Japanese Yen 270,196,000 11/9/1999 2,558,412 (97,610)
Sell Japanese Yen 347,845,000 11/18/1999 3,306,350 (234,733)
Sell Japanese Yen 292,626,000 11/24/1999 2,777,469 (113,600)
Sell Japanese Yen 222,954,000 11/30/1999 2,118,259 (89,560)
Sell Japanese Yen 508,714,000 1/18/2000 4,873,933 (70,801)
----------- ----------
$18,182,275 $ (893,791)
=========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------------
ASSETS
Investments, at cost $ 209,781,576
- -----------------------------------------------------------------------------------
Investments, at value $ 260,134,641
Cash 1,577
Foreign cash (cost $2,981,614) 3,003,561
Receivables
Investment securities sold 189,943
Contributions 4,813,729
Dividends 801,571
Interest 565
Due from Advisor 16,469
- -----------------------------------------------------------------------------------
Total Assets 268,962,056
- -----------------------------------------------------------------------------------
LIABILITIES
Payables
Investment securities purchased 1,553,600
Withdrawals 1,059,298
Accrued investment advisory fees 192,775
Accrued custodian fees 22,722
Accrued audit fees 28,500
Net unrealized depreciation on forward foreign currency
contracts 893,791
- -----------------------------------------------------------------------------------
Total Liabilities 3,750,686
- -----------------------------------------------------------------------------------
NET ASSETS $ 265,211,370
===================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, 1999
<S> <C>
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
Income
Dividends (net of foreign tax withholding of $482,012) $ 3,523,283
Interest 355,089
- -----------------------------------------------------------------------------------
Total Income 3,878,372
- -----------------------------------------------------------------------------------
Expenses
Investment advisory fees 2,010,034
Accounting fees 48,561
Custodian fees 96,448
Registration fees 3,535
Audit fees 37,500
Legal fees 6,863
Trustees' fees and expenses 22,213
Shareholder reporting fees 9,233
Other expenses 13,735
- -----------------------------------------------------------------------------------
Gross Expenses 2,248,122
Less fees waived by Advisor (16,581)
Less earnings credits (22,800)
- -----------------------------------------------------------------------------------
Net Expenses 2,208,741
- -----------------------------------------------------------------------------------
Net Investment Income 1,669,631
- -----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized loss on investments and foreign currency
transactions (5,205,587)
Net change in unrealized appreciation on investments and
foreign currency transactions 58,159,547
- -----------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments and Foreign
Currency Transactions 52,953,960
- -----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $ 54,623,591
===================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30, 1999 1998
<S> <C> <C>
- ----------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 1,669,631 $ 5,874,066
Net realized loss on investments and foreign currency
transactions (5,205,587) (4,726,150)
Net change in unrealized appreciation (depreciation)
on investments and foreign currency transactions 58,159,547 (15,953,893)
- ----------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from
Operations 54,623,591 (14,805,977)
- ----------------------------------------------------------------------------------
FROM INVESTORS' BENEFICIAL INTEREST TRANSACTIONS
Contributions 161,557,439 103,931,701
Withdrawals (128,565,460) (33,746,924)
- ----------------------------------------------------------------------------------
Net Increase in Net Assets Derived From Investors'
Beneficial Interest Transactions 32,991,979 70,184,777
- ----------------------------------------------------------------------------------
Net Increase in Net Assets 87,615,570 55,378,800
- ----------------------------------------------------------------------------------
NET ASSETS
Beginning of period 177,595,800 122,217,000
- ----------------------------------------------------------------------------------
End of period $265,211,370 $177,595,800
==================================================================================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
SEPTEMBER 30, PERIOD FROM
-------------------- OCTOBER 11, 1996(1)
1999 1998 TO SEPTEMBER 30, 1997
<S> <C> <C> <C>
- ---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTARY DATA
Net assets, end of period (in
thousands) $265,211 $177,596 $ 122,217
Net expense ratio to average net
assets(3) 1.00% 1.00% 0.89%(2)
Ratio of net income to average net
assets 0.75% 3.45% 1.63%(2)
Gross expense ratio to average net
assets 1.01% 1.04% 1.10%(2)
Portfolio turnover rate(4) 16% 17% 17%
</TABLE>
<TABLE>
<C> <S>
1. COMMENCEMENT OF INVESTMENT OPERATIONS.
2. ANNUALIZED.
3. NET EXPENSES REPRESENT GROSS EXPENSES REDUCED BY FEES WAIVED
BY THE ADVISOR.
4. NOT ANNUALIZED.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
22
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 a diversified 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 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 of the United States.
The Portfolio is advised by BBOI, which has delegated daily investment
management of the Portfolio to BIAM. Berger LLC ("Berger"), formerly Berger
Associates, Inc., and BIAM each own 50% of BBOI. Effective September 30, 1999,
Berger Associates, Inc. transferred its operating assets and business to Berger.
The transfer did not result in any change to the investment objective or
principal investment strategies of the Portfolio, or result in any change to the
day-to-day management of the Portfolio's investments.
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
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
23
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
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 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 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. 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 of the Portfolio.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities initially expressed in terms of foreign currencies are
translated into U.S. dollars at the prevailing market rates as quoted by one or
more banks or dealers on the date of valuation. The cost of securities is
translated into U.S. dollars at the rates of exchange prevailing when such
securities were acquired. Income and expenses are translated into U.S. dollars
at rates of exchange prevailing when accrued.
FEDERAL INCOME TAXES
The Portfolio is considered a partnership for federal income tax purposes. As
such, each investor in the Portfolio will be taxed on its share of the
Portfolio's ordinary income and capital gains. It is intended that the
Portfolio's assets will be managed in such a way that an investor in the
Portfolio will be able to satisfy the requirements of Sub-Chapter M of the
Internal Revenue Code.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income is recorded on the ex-dividend date except
that certain dividends from foreign securities are reported as soon as the
Portfolio is informed of the ex-dividend date if such information is obtained
subsequent to the ex-dividend date. Dividend income is recorded net of foreign
taxes withheld. Interest income is recorded on the accrual basis and includes
accretion of discount and amortization of premium. Gains and losses are computed
on the identified cost basis for both financial statement and federal income tax
purposes for all securities.
24
<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.
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 pays BIAM a sub-advisory fee from the investment advisory fee it
receives from the Portfolio.
The Portfolio has also entered into recordkeeping and pricing agreements with
Investors Fiduciary Trust Company ("IFTC"), which also serves as the Portfolio's
custodian and transfer agent. The recordkeeping and pricing agreements provide
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
(which consists of Berger Information Technology Fund, 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 Growth & Income Fund and Berger Balanced Fund) (collectively, the
"Funds"). IFTC's fees for custody, recordkeeping, pricing and transfer agency
services are subject to reduction by credits earned by the Portfolio, based on
the cash balances of the Portfolio held by IFTC as custodian and 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 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 year ended September 30, 1999, totaled $22,213.
The Trust adopted a Trustee Fee Deferral Plan (the "Plan") which allows the
non-affiliated trustees to defer the receipt of all or a portion of the trustee
fees payable. The deferred fees are invested in various Berger Funds until
distribution in accordance with the Plan.
25
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales proceeds of investment securities (excluding short-term
securities) during the year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
- ----------- -----------
<S> <C>
$65,551,376 $33,821,723
</TABLE>
There were no purchases or sales of long-term U.S. government securities
during the year ended September 30, 1999.
UNREALIZED APPRECIATION, UNREALIZED DEPRECIATION AND FEDERAL TAX COST OF
SECURITIES
At September 30, 1999, the federal tax cost of securities and the composition
of net unrealized appreciation (depreciation) of investment securities held was
as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized
Federal Tax Cost Appreciation Depreciation Net
- ---------------- ------------ ------------ -----------
<S> <C> <C> <C>
$209,783,264 $59,176,867 $(8,825,490) $50,351,377
</TABLE>
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. Risk 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.
REPURCHASE AGREEMENTS
Repurchase agreements held by the Portfolio are fully collateralized by U.S.
government securities and such collateral is in the possession of the
Portfolio'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
26
<PAGE>
BERGER/BIAM INTERNATIONAL PORTFOLIO
on the obligation to repurchase, the Portfolio 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 RISK
The Portfolio 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 Portfolio to additional risk resulting from
future political or economic conditions and/or possible impositions of adverse
foreign governmental laws or currency exchange restrictions. Net Realized and
Unrealized Gain (Loss) on Investments and Foreign Currency Transactions in the
Statement of Operations includes fluctuations from currency exchange rates and
fluctuations in market value.
4. LINE OF CREDIT
The Portfolio, along with certain of the Berger Funds, is party to an ongoing
agreement with certain banks that allows these Funds and the Portfolio,
collectively, to borrow up to $150 million, subject to certain conditions, for
temporary or emergency purposes. Interest on borrowings, if any, is charged to
the specific Fund or Portfolio that executes the borrowing at the Federal Funds
Rate plus 50 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 September 30, 1999, the Portfolio had no borrowings
outstanding on the line of credit.
27
<PAGE>
- --------------------------------------------------------------------------------
BERGER/BIAM
REPORT OF INDEPENDENT ACCOUNTANTS
INTERNATIONAL PORTFOLIO
To the Board of Trustees and Investors of
Berger/BIAM Worldwide Portfolios Trust
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the ratios/supplemental data present fairly, in all
material respects, the financial position of Berger/BIAM International Portfolio
(the sole portfolio comprising Berger/BIAM Worldwide Portfolios Trust, hereafter
referred to as the "Portfolio") at September 30, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the ratios/supplemental data for each
of the two years in the period then ended and for the period October 11, 1996
(commencement of investment operations) through September 30, 1997, in
conformity with generally accepted accounting principles. These financial
statements and ratios/supplemental data (hereafter referred to as "financial
statements") are the responsibility of the Portfolio's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
[PRICEWATERHOUSECOOPERS LLP SIGNATURE]
PricewaterhouseCoopers LLP
Denver, Colorado
November 4, 1999
28
<PAGE>
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210 University Blvd.
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