<PAGE> 1
INTERNATIONAL
EQUITY
FUND
SEMI-ANNUAL REPORT
March 31, 2000
<PAGE> 2
Contents 3
March 31, 2000 International Equity Semi-Annual Report
CONTENTS
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INTERNATIONAL EQUITY FUND
<TABLE>
<S> <C>
Portfolio Managers' Commentary ........................ 4
Statement of Assets and Liabilities ................... 7
Statement of Operations ............................... 7
Statements of Changes in Net Assets ................... 8
Notes to Financial Statements ......................... 9
Financial Highlights .................................. 12
BERGER/BIAM INTERNATIONAL PORTFOLIO
Schedule of Investments ............................... 14
Statement of Assets and Liabilities ................... 20
Statement of Operations ............................... 21
Statements of Changes in Net Assets ................... 22
Notes to Financial Statements ......................... 23
</TABLE>
Berger Distributors LLC ~ Member NASD (5/00)
<PAGE> 3
4
March 31, 2000 International Equity Semi-Annual Report
Ticker Symbol BINTX
Fund Number 659
INTERNATIONAL PORTFOLIO MANAGER COMMENTARY
EQUITY FUND BANK OF IRELAND ASSET
MANAGEMENT (U.S.) LTD.
- --------------------------------------------------------------------------------
Performance
The International Equity Fund (the "Fund") gained 21.73% in the six-month period
ended March 31, 2000, compared with 17.00% for its benchmark, the MSCI EAFE
Index.(1)
World equity markets registered exceptional gains toward the end of 1999, fueled
by a combination of low interest rates and rising commodity prices. There was
significant divergence in the performance of those markets in the first quarter
2000, however. Half of the markets in the 22 countries that comprise the MSCI
World Index registered gains and half registered losses (as measured in U.S.
dollars). Investor enthusiasm for particularly high-flying Internet stocks
dimmed during the quarter as the pricey valuations of these stocks began to be
called into question. Indeed, in Europe, there was profit-taking from the
technology, media and telecommunications sectors and some evidence that this
money was directed toward financial and cyclical stocks. Rising interest rates
in all markets except Japan also served as a drag on returns.
Period in Review
The Fund's investment in telecommunications, media and technology stocks was the
key reason that it was able to outperform the MSCI EAFE Index this reporting
period. The most significant positive contribution came from stocks in the
Growth in Telecommunications theme. Vodafone/Mannesmann agreed to a friendly
merger in the first quarter 2000, ending their lengthy takeover saga and
creating the largest mobile phone operator in the world, with businesses in 25
countries. The combined entity is now our largest holding and, given its global
reach and superior growth rate, one we continue to believe in strongly. Other
notable performers in the sector were KPN and Ericsson.
Japanese-quoted stocks, such as Murata Manufacturing in the Technological
Innovation theme, delivered strong performance in the fourth quarter 1999.
Stocks in the Undervalued Asset Profile theme aided performance in the first
quarter. Vivendi is one of the companies at the forefront of Europe's corporate
activity, which favorably impacted its share price. Philips Electronics, which
we added to the portfolio in the first quarter, moved up strongly following its
announcement that earnings had more than tripled over the previous year's
figures. Total Fina had a 24% increase in profits, aided by the recent run-up in
crude oil prices.
Other companies that performed well were News Corp., one of the world's premier
media companies, and Takeda Chemical. Analysts are forecasting that Takeda's
diabetes drug, Actos, will gain market share now that the U.S. Federal Drug
Administration has halted the sale of its largest competitor, Rezulin.
Financial stocks continued their underperformance; their negative returns were
largely a reaction to anticipated, and then to actual, increases in global
interest rates. Stocks
<PAGE> 4
International Equity Fund 5
March 31, 2000 International Equity Semi-Annual Report
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in the Positive Banking Environment and Growth in Personal Savings Products
themes felt this rate move, including ING, which fared poorly despite announcing
a 54% increase in net operating profits in the first quarter. We do not believe
that the financial stocks in our portfolio deserve the valuations currently
attributed to them by the market.
Looking Forward
Toward the end of March, there was some respite for value-oriented investors as
several major global, blue-chip, old-economy companies behaved like hot Internet
stocks, appreciating 20%-25% in a matter of days. On a global basis, rising
interest rates have started to challenge the high valuations of certain stocks
and to make other, previously ignored investment options more attractive. When
all is said and done, most of the old-economy companies have valuable products
and competent, proven management. Undoubtedly, some of these companies will
struggle, but there will also be winners as equity market strength broadens. We
believe our job is to identify these winners. We will continue to take profits
from stocks that we believe are close to or at full valuation and redirect the
money to areas where we find value.
Past performance is no guarantee of future results.
(1) The Morgan Stanley Capital International EAFE Index represents major
overseas stock markets. It is an unmanaged index. One cannot invest directly in
an index.
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6
March 31, 2000 International Equity Semi-Annual Report
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PERFORMANCE OVERVIEW
INTERNATIONAL EQUITY FUND
Comparison of Change in Value of International Equity Fund
vs. MSCI EAFE Index
International Equity Fund $3,331,836
MSCI EAFE Index $2,452,488
[GRAPH]
AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000
<TABLE>
<S> <C>
One Year 28.59%
Five Year 17.26%
Ten Year 12.79%
</TABLE>
Performance figures are historical and, in part, reflect the performance of a
pool of assets advised by BIAM (Bank of Ireland Asset Management) for periods
before the Fund commenced operations on October 11, 1996, adjusted to reflect
any increased expenses associated with operating the Fund. The asset pool was
not registered with the Securities and Exchange Commission and therefore was not
subject to the investment restrictions imposed by law on registered mutual
funds. If the pool had been registered, its performance might have been
adversely affected. Investments in the Fund are not insured by the Federal
Deposit Insurance Corporation, are not deposits and are not obligations of, or
endorsed or guaranteed in any way by, any bank. Past performance is no guarantee
of future results. Investment return and principal value will fluctuate so that
shares, when redeemed, may be worth more or less than their original cost.
Recent market volatility has significantly impacted performance. Please contact
us for updated performance information.
<PAGE> 6
International Equity Fund 7
March 31, 2000 International Equity Semi-Annual Report
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STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
March 31, 2000
(Unaudited)
------------
<S> <C>
Assets
Investment in Berger/BIAM International Portfolio ("Portfolio"), at value $ 13,000,275
Receivable from fund shares sold 73,000
------------
Total Assets 13,073,275
------------
Liabilities
Payable for fund shares redeemed 470,775
Accrued administrative services fee 1,096
------------
Total Liabilities 471,871
------------
Net Assets Applicable to Shares Outstanding $ 12,601,404
------------
Components of Net Assets
Capital (par value and paid in surplus) $ 8,687,660
Accumulated net investment loss (57,730)
Undistributed net realized gain from investments
and foreign currency transactions 360,574
Net unrealized appreciation of investments and
foreign currency transactions 3,610,900
------------
$ 12,601,404
------------
Shares Outstanding (Unlimited Shares Authorized, Par Value $0.01) 811,931
------------
Net Asset Value, Offering and Redemption Price Per Share $ 15.52
------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000
(Unaudited)
------------
<S> <C>
Net Investment Income Allocated from Portfolio
Dividends (net of foreign tax withholding of $6,650) $ 59,750
Interest 9,275
Portfolio expenses (net of earnings credits totaling $134) (58,233)
------------
Net Investment Income Allocated from Portfolio 10,792
------------
Fund Expenses
Administrative services fee 6,167
------------
Total Fund Expenses 6,167
------------
Net Investment Income 4,625
------------
Net Realized and Unrealized Gain on Investments and
Foreign Currency Transactions Allocated from Portfolio
Net realized gain on investments and foreign currency transactions 749,470
Net change in unrealized appreciation on investments and
foreign currency transactions 1,499,112
------------
Net Realized and Unrealized Gain on Investments and
Foreign Currency Transactions Allocated from Portfolio 2,248,582
------------
Net Increase in Net Assets Resulting from Operations $ 2,253,207
------------
</TABLE>
See notes to financial statements.
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8
March 31, 2000 International Equity Semi-Annual Report
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Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
------------ ------------------
<S> <C> <C>
From Operations
Net investment income $ 4,625 $ 62,296
Net realized gain (loss) on investment and foreign
currency transactions allocated from Portfolio 749,470 (202,341)
Net change in unrealized appreciation on investments
and foreign currency transactions allocated from
Portfolio 1,499,112 2,389,729
------------ ------------
Net Increase in Net Assets
Resulting from Operations 2,253,207 2,249,684
------------ ------------
From Dividends and Distributions to Shareholders
Dividends from net investment income -- (220,704)
Distributions in excess of net realized gains on investments (817) (4,308)
------------ ------------
Net Decrease in Net Assets from Dividends and
Distributions to Shareholders (817) (225,012)
------------ ------------
From Fund Share Transactions
Proceeds from shares sold 1,362,932 3,374,365
Net asset value of shares issued in reinvestment of
dividends and distributions 793 141,880
Payments for shares redeemed (1,202,034) (2,502,514)
------------ ------------
Net Increase in Net Assets Derived from
Fund Share Transactions 161,691 1,013,731
------------ ------------
Net Increase in Net Assets 2,414,081 3,038,403
Net Assets
Beginning of period 10,187,323 7,148,920
------------ ------------
End of period $ 12,601,404 $ 10,187,323
------------ ------------
Accumulated net investment loss $ (57,730) $ (62,355)
------------ ------------
Transactions in Fund Shares
Shares sold 93,009 281,520
Shares issued to shareholders in reinvestment of
dividends and distributions 52 12,217
Shares redeemed (80,151) (208,199)
------------ ------------
Net Increase in Shares 12,910 85,538
Shares outstanding, beginning of period 799,021 713,483
------------ ------------
Shares outstanding, end of period 811,931 799,021
------------ ------------
</TABLE>
See notes to financial statements.
<PAGE> 8
International Equity Fund 9
March 31, 2000 International Equity Semi-Annual Report
NOTES TO
FINANCIAL STATEMENTS
March 31, 2000 (Unaudited)
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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
invests 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 March 31, 2000). 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") owns the remaining 50% of the Advisor.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Since the Fund will invest all of its investable assets in the Portfolio, the
value of the Fund's invested assets will be equal to the value of its beneficial
interest in the Portfolio. Valuation of securities by the Portfolio is discussed
in Note 1 of the Portfolio's Notes to Financial Statements which accompany the
Fund's financial statements.
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 gain 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.
<PAGE> 9
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March 31, 2000 International Equity Semi-Annual Report
NOTES TO
FINANCIAL STATEMENTS
March 31, 2000 (Unaudited)
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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 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.
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.
For the fiscal 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 may 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, transfer agency and dividend
disbursing services, tax and audit services, insurance, legal services, printing
and mailing to shareholders of prospectuses and other required communications
and certain other administrative services. The Advisor has delegated the
administration of the Fund to Berger. For such services, the Advisor pays Berger
a sub-administration fee equal to 0.25% of the Fund's average daily net assets.
Berger has voluntarily waived such sub-administration fee from the Commencement
of Investment Operations through March 31, 2000.
State Street Bank & Trust ("State Street") 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, State Street has been appointed to serve as the Fund's
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
and/or the Advisor. Trustees who are not affiliated with Berger and/or the
Advisor are compensated for their services according to a fee schedule,
allocated among the entire Berger Funds complex, 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.
<PAGE> 10
International Equity Fund 11
March 31, 2000 International Equity Semi-Annual Report
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3. Subsequent Events
On January 19, 2000, Berger and BIAM entered into an agreement to dissolve BBOI.
This agreement was approved by shareholders on May 5, 2000. The dissolution of
BBOI will have no effect on the investment advisory services to or on the fees
borne by the Fund for advisory services. Upon approval of the new management
agreement, Berger became the Fund's advisor and BIAM continues to be responsible
for the day-to-day management of the Fund's portfolio as sub-advisor.
Additionally, the Trust has been renamed Berger Worldwide Funds Trust.
<PAGE> 11
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March 31, 2000 International Equity Semi-Annual Report
FINANCIAL
HIGHLIGHTS
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INTERNATIONAL EQUITY FUND
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
Period from
Six Months Ended October 11, 1996(1)
March 31, 2000, Years Ended September 30, to September 30,
(Unaudited) 1999 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.75 $ 10.02 $ 11.64 $ 10.00
---------- ---------- ---------- ----------
From investment operations
Net investment income (loss) 0.01 (0.15) 0.39 0.10
Net realized and unrealized gains (losses)
from investments 2.76 3.17 (1.28) 1.54
---------- ---------- ---------- ----------
Total from investment operations 2.77 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) (0.00)(7) (0.01) (0.59) --
---------- ---------- ---------- ----------
Total dividends and distributions (0.00) (0.29) (0.73) --
---------- ---------- ---------- ----------
Net asset value, end of period $ 15.52 $ 12.75 $ 10.02 $ 11.64
---------- ---------- ---------- ----------
Total Return(3) 21.73% 30.36% (7.77)% 16.40%
---------- ---------- ---------- ----------
Ratios/Supplemental Data:
Net assets, end of period (in thousands) $ 12,601 $ 10,187 $ 7,149 $ 6,343
Net expense ratio to average net assets(4),(5) 1.09%(2) 1.10% 1.08% 1.25%(2)
Ratio of net income (loss) to average net assets 0.08%(2) 0.65% 3.30% 1.03%(2)
Gross expense ratio to average net assets(5) 1.09%(2) 1.11% 1.12% 1.34%(2)
Portfolio turnover rate(3),(6) 17% 16% 17% 17%
</TABLE>
(1) Commencement of investment operations.
(2) Annualized.
(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) Represents the portfolio turnover rate of the Portfolio. All of the
investable assets of the Fund are invested in the Portfolio.
(7) Amount represents less than $0.01 per share.
See notes to financial statements.
<PAGE> 12
International Portfolio 13
March 31, 2000 International Equity Semi-Annual Report
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BERGER/BIAM
INTERNATIONAL PORTFOLIO
Semi-Annual Report
March 31, 2000
The following pages should be read in conjunction with the
International Equity Fund
Semi-Annual Report.
<PAGE> 13
14
March 31, 2000 International Equity Semi-Annual Report
BERGER/BIAM
INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, 2000
--------------
Country/Shares Company Industry Value
- -------------- ------- -------- -----
<S> <C> <C> <C>
Common Stock (96.70%)
Australia (3.38%)
43,125 Brambles Industries Ltd. Business & Industrial Services $ 1,097,985
166,700 National Australia Bank Ltd. Commercial Banks & Other Banks 2,145,433
361,740 News Corp. Ltd. Media 5,060,056
423,895 Telstra Corp. Ltd. Utilities 1,957,606
212,370 Westpac Banking Corp. Ltd. Commercial Banks & Other Banks 1,330,857
-----------
11,591,937
-----------
China (0.47%)
9,868,000 PetroChina Co. Ltd.* Oil 1,622,161
-----------
Denmark (0.71%)
27,255 Tele Danmark - Class B Utilities 2,450,909
-----------
France (10.12%)
17,111 Alcatel Alsthom Computer/Commercial/
Office Equipment 3,752,681
92,312 Aventis S.A. Chemicals 5,050,291
46,452 AXA-UAP Insurance - Multi/Property/Casualty 6,579,937
34,250 Michelin - Class B Automobile Components 1,098,717
48,682 Total S.A. - Class B Oil 7,286,937
95,028 Vivendi Diversified Holding Companies 10,952,188
-----------
34,720,751
-----------
Germany (3.36%)
52,150 Bayerische HypoVereinsbank
A.G. Commercial Banks & Other Banks 3,217,186
117,242 Bayerische Motoren Werk
A.G. DM Automobiles 3,694,884
63,731 Veba A.G. Diversified Industrials 3,255,024
67,080 Viag A.G. DM Utilities 1,360,163
-----------
11,527,257
-----------
Hong Kong (2.23%)
208,000 Cheung Kong (Holdings) Ltd. Real Estate 3,112,032
282,000 China Telecom Ltd.* Utilities 2,471,762
144,500 Hong Kong Electric Holdings Utilities 436,104
189,000 Sun Hung Kai Properties Ltd. Real Estate 1,638,402
-----------
7,658,300
-----------
Italy (3.06%)
411,566 ENI S.p.A. Oil 2,058,749
566,607 Telecom Italia S.p.A. Utilities 8,454,127
-----------
10,512,876
-----------
</TABLE>
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International Portfolio 15
March 31, 2000 International Equity Semi-Annual Report
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SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, 2000
--------------
Country/Shares Company Industry Value
- -------------- ------- -------- -----
<S> <C> <C> <C>
Common Stock (96.70%) - continued
Japan (21.36%)
15,600 ACOM Co. Ltd. Insurance - Multi/Property/Casualty $ 1,687,759
93,000 Bank of Tokyo-Mitsubishi
Ltd.+ Commercial Banks & Other Banks 1,328,571
183,000 Canon, Inc.+ Computer/Commercial/
Office Equipment 7,930,178
83,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplies 3,653,325
383,000 Hitachi Ltd. Electronics & Instruments 4,546,469
47,000 Honda Motor Co. Ltd. Automobiles 1,940,597
28,000 Hoya Corp. Electronics & Instruments 2,644,853
95,000 Kao Corp. Food & Grocery Products 2,904,859
130 Keyence Corp. Electronics & Instruments 51,903
7,000 Mabuchi Motor Co. Ltd. Electronics & Instruments 743,012
36,000 Murata Manufacturing Co.
Ltd.+ Electronics & Instruments 8,746,713
146,000 NEC Corp. Electronics & Instruments 4,307,916
191 Nippon Telegraph & Telephone
Corp.+ Utilities 3,031,745
186 NTT Mobile Communications
Network, Inc.+ Utilities 7,625,474
33,000 Pioneer Corp. Household Durables & Appliances 935,144
11,700 Rohm Co. Ltd. Electronics & Instruments 4,067,484
104,000 Shiseido Co. Ltd. Health & Personal Care 1,412,795
24,300 Sony Corp. - New* Household Durables & Appliances 3,454,864
24,300 Sony Corp. Household Durables & Appliances 3,431,200
107,000 Takeda Chemical Industries Health & Personal Care 7,606,388
11,600 Takefuji Corp. Insurance - Multi/Property/Casualty 1,242,574
-----------
73,293,823
-----------
Netherlands (10.29%)
155,580 ABN Amro Holdings N.V. Commercial Banks & Other Banks 3,465,656
158,137 Elsevier N.V. Media 1,603,251
56,877 Fortis N.V. Commercial Banks & Other Banks 1,455,200
22,700 Heineken N.V. Beverage Industry/
Tobacco Manufacturing 1,212,582
163,217 ING Groep N.V. Insurance - Multi/Property/Casualty 8,835,763
114,980 Koninklijke Ahold N.V. Retail Trade 2,990,155
64,175 Koninklijke KPN N.V. Utilities 7,344,138
15,375 Philips Electronics N.V. Household Durables & Appliances 2,582,271
48,480 Royal Dutch Petroleum Co. Oil 2,828,954
73,490 TNT Post Group N.V. Utilities 1,649,694
22,760 VNU N.V. Media 1,339,869
-----------
35,307,533
-----------
</TABLE>
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March 31, 2000 International Equity Semi-Annual Report
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SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, 2000
--------------
Country/Shares Company Industry Value
- -------------- ------- -------- -----
<S> <C> <C> <C>
Common Stock (96.70%) - continued
New Zealand (0.14%)
101,787 Telecom Corp. of New Zealand
Ltd. Utilities $ 460,162
-----------
Portugal (0.26%)
46,450 Electricidade de
Portugal S.A. Utilities 868,549
-----------
Singapore (1.44%)
217,027 Development Bank of
Singapore Ltd. Commercial Banks & Other Banks 2,864,957
112,450 Overseas Chinese Banking
Corp. Ltd. Commercial Banks & Other Banks 696,244
86,000 Singapore Press Holdings
Ltd. Media 1,371,378
-----------
4,932,579
-----------
South Korea (0.62%)
24,200 Korea Telecom Corp. -
Sponsored ADR Utilities 1,058,750
39,250 Pohang Iron & Steel Co.
Ltd. - Sponsored ADR Mining, Metals & Minerals 1,079,375
-----------
2,138,125
-----------
Spain (2.47%)
346,322 Banco De Santander S.A. Commercial Banks & Other Banks 3,719,821
188,536 Telefonica S.A.* Utilities 4,760,591
-----------
8,480,412
-----------
Sweden (0.97%)
37,670 Telefonaktiebolaget LM
Ericsson - Class B Utilities 3,309,319
-----------
Switzerland (7.91%)
2,052 Alusuisse Lonza Group A.G.* Fabricated Metal Products 1,295,337
2,052 Lonza A.G. Reg.* Chemicals 1,112,756
3,441 Nestle S.A. Reg. Food & Grocery Products 6,164,775
3,401 Novartis A.G. Reg. Health & Personal Care 4,649,577
493 Roche Holding A.G. Health & Personal Care 5,352,800
2,492 Schweizerische
Rueckversicherungs Reg. Insurance - Multi/Property/Casualty 4,316,260
</TABLE>
<PAGE> 16
International Portfolio 17
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, 2000
--------------
Country/Shares Company Industry Value
- -------------- ------- -------- -----
<S> <C> <C> <C>
Common Stock (96.70%) - continued
Switzerland (7.91%) - continued
16,211 Union Bank of Switzerland
A.G. Reg. Commercial Banks & Other Banks $ 4,258,999
------------
27,150,504
------------
United Kingdom (27.91%)
10,300 3i Group PLC Diversified Holding Companies 216,324
277,603 Allied Zurich PLC Insurance - Life & Agents/Brokers 3,045,653
92,180 AstraZeneca PLC Health & Personal Care 3,729,509
196,175 Barclays PLC Commercial Banks & Other Banks 5,195,496
309,767 British American Tobacco Beverage Industry/
PLC Tobacco Manufacturing 1,704,202
341,530 Cable & Wireless PLC Utilities 6,411,010
398,560 Cadbury Schweppes PLC Beverage Industry/
Tobacco Manufacturing 2,675,383
490,260 Diageo PLC Beverage Industry/
Tobacco Manufacturing 3,679,592
156,656 EMI Group PLC* Media 1,737,435
217,550 Glaxo Wellcome PLC Health & Personal Care 6,222,657
447,032 Granada Group PLC Entertainment/Leisure/Toys 4,790,526
409,750 Hilton Group PLC Entertainment/Leisure/Toys 1,904,943
752,414 Invensys PLC Machinery & Engineering Services 3,339,138
380,588 Lloyds TSB Group PLC Commercial Banks & Other Banks 4,014,813
295,300 Marconi PLC Electronics & Instruments 3,524,500
241,350 Old Mutual PLC* Insurance - Multi/Property/Casualty 576,887
79,020 Pearson PLC Media 2,746,281
373,915 Prudential PLC Insurance - Life & Agents/Brokers 5,639,568
69,560 Railtrack Group PLC Road & Rail 813,040
115,550 Reuters Group PLC Media 2,342,121
98,458 Royal Bank of Scotland
Group PLC* Commercial Banks & Other Banks 1,448,121
843,732 Shell Transport & Trading Co.
PLC Oil 6,991,336
144,600 TI Group PLC Machinery & Engineering Services 711,998
4,018,240 Vodafone AirTouch Group
PLC Utilities 22,314,699
------------
95,775,232
------------
Total Common Stock (Cost $240,706,613) 331,800,429
------------
</TABLE>
<PAGE> 17
18
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, 2000
--------------
Country/
Par Value Company Value
- --------- ------- -----
<S> <C> <C>
Repurchase Agreement (1.82%) U.S.A.
$6,261,000 State Street Repurchase Agreement, 6.05%
dated March 31, 2000, to be repurchased at
$6,264,113 on April 3, 2000, collateralized by
U.S. Treasury Note, 5.75% - June 30, 2001,
with a value of $6,386,775 $ 6,261,000
------------
Total Repurchase Agreement (Cost $6,261,000) 6,261,000
------------
Total Investments (Cost $246,967,613) (98.52%) 338,061,429
Total Other Assets, Less Liabilities (1.48%) 5,091,454
------------
Net Assets (100.00%) $343,152,883
------------
</TABLE>
* Non-income producing security.
+ - Security is designated as collateral for forward foreign currency contracts.
ADR - American Depositary Receipt.
PLC - Public Limited Company.
<PAGE> 18
International Portfolio 19
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS (UNAUDITED)
Outstanding Forward Foreign Currency Contracts
<TABLE>
<CAPTION>
Unrealized
Contract Maturity Value on Appreciation/
Currency Amount Date March 31, 2000 (Depreciation)
------------ ----------- --------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Sell Japanese Yen 266,718,000 4/18/2000 $ 2,605,991 $ (48,943)
Sell Japanese Yen 332,650,000 4/28/2000 3,256,231 (46,253)
Sell Japanese Yen 338,962,000 5/2/2000 3,320,292 (241,059)
Sell Japanese Yen 279,612,000 5/9/2000 2,741,939 (122,132)
Sell Japanese Yen 266,718,000 5/18/2000 2,619,196 (49,659)
Sell Japanese Yen 253,531,000 5/18/2000 2,489,699 (136,524)
Sell Japanese Yen 220,022,000 5/30/2000 2,164,719 (153,365)
----------- ---------
$19,198,067 $(797,935)
----------- ---------
</TABLE>
See notes to financial statements.
<PAGE> 19
20
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
March 31, 2000
(Unaudited)
--------------
<S> <C>
Assets
Investments, at cost $246,967,613
------------
Investments, at value $338,061,429
Cash 749
Foreign cash (cost $2,478,677) 2,525,425
Receivables
Investment securities sold 696,575
Contributions 4,180,825
Dividends 1,142,791
Interest 1,052
Investment held as collateral for securities loaned 25,964,940
------------
Total Assets 372,573,786
------------
Liabilities
Payables
Investment securities purchased 1,795,678
Withdrawals 544,266
Collateral on securities loaned 25,964,940
Accrued investment advisory fees 260,943
Accrued custodian and accounting fees 41,852
Accrued audit fees 15,289
Net unrealized depreciation on forward currency contracts 797,935
------------
Total Liabilities 29,420,903
------------
Net Assets $343,152,883
------------
</TABLE>
See notes to financial statements.
<PAGE> 20
International Portfolio 21
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000
(Unaudited)
------------
<S> <C>
Investment Income
Dividends (net of foreign tax withholding of $172,344) $ 1,554,581
Interest 234,590
Securities lending income 480
------------
Total Income 1,789,651
------------
Expenses
Investment advisory fees 1,381,557
Accounting fees 31,841
Custodian fees 66,967
Audit fees 14,989
Legal fees 2,311
Trustees' fees and expenses 8,213
Shareholder reporting fees 2,438
Other expenses 4,005
------------
Gross Expenses 1,512,321
------------
Less earnings credits (3,815)
Net Expenses 1,508,506
------------
Net Investment Income 281,145
------------
Net Realized and Unrealized Gain on Investments and
Foreign Currency Transactions
Net realized gain on investments and foreign currency transactions 19,441,598
Net change in unrealized appreciation on investments
and foreign currency transactions 40,844,946
------------
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions 60,286,544
------------
Net Increase in Net Assets Resulting from Operations $ 60,567,689
------------
</TABLE>
See notes to financial statements.
<PAGE> 21
22
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
March 31, 2000 Year Ended
(Unaudited) September 30, 1999
------------- ------------------
<S> <C> <C>
From Operations
Net investment income $ 281,145 $ 1,669,631
Net realized gain (loss) on investments and
foreign currency transactions 19,441,598 (5,205,587)
Net change in unrealized appreciation on
investments and foreign currency transactions 40,844,946 58,159,547
------------- -------------
Net Increase in Net Assets
Resulting from Operations 60,567,689 54,623,591
------------- -------------
From Transactions in Investors' Beneficial Interest
Contributions 190,340,888 161,557,439
Withdrawals (172,967,064) (128,565,460)
------------- -------------
Net Increase in Net Assets Derived from
Investors' Beneficial Interest Transactions 17,373,824 32,991,979
------------- -------------
Net Increase in Net Assets 77,941,513 87,615,570
Net Assets
Beginning of period 265,211,370 177,595,800
------------- -------------
End of period $ 343,152,883 $ 265,211,370
------------- -------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended Years Ended Period from
March 31, 2000 September 30, October 11, 1996(1)
(Unaudited) 1999 1998 to September 30, 1997
----------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Ratios/Supplementary Data
Net assets, end of period
(in thousands) $343,153 $265,211 $177,596 $122,217
Net expense ratio to average
net assets(3) 0.98%(2) 1.00% 1.00% 0.89%(2)
Ratio of net income to average
net assets 0.18%(2) 0.75% 3.45% 1.63%(2)
Gross expense ratio to average
net assets 0.98%(2) 1.01% 1.04% 1.10%(2)
Portfolio turnover rate(4) 17% 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> 22
International Portfolio 23
March 31, 2000 International Equity Semi-Annual Report
NOTES TO
FINANCIAL STATEMENTS
March 31, 2000 (Unaudited)
- --------------------------------------------------------------------------------
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. 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 Bank of Ireland Asset Management (U.S.) Limited
("BIAM"). Berger LLC ("Berger") and BIAM each own 50% of BBOI.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Portfolio in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
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.
<PAGE> 23
24
March 31, 2000 International Equity Semi-Annual Report
NOTES TO
FINANCIAL STATEMENTS
March 31, 2000 (Unaudited)
- --------------------------------------------------------------------------------
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.
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 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
State Street Bank & Trust ("State Street"), 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.
State Street'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 State Street as custodian.
Certain officers and trustees of the Trust are officers and directors of Berger
and/or BBOI. Trustees who are not affiliated with Berger and/or BBOI are
compensated for their services according to a fee schedule, allocated among the
Berger Funds complex, which includes an annual fee component and a per meeting
component. The Portfolio's portion of the trustees' fees and expenses for the
period ended March 31, 2000, totaled $8,213.
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> 24
International Portfolio 25
March 31, 2000 International Equity Semi-Annual Report
- --------------------------------------------------------------------------------
3. Investment Transactions
Purchases And Sales
Purchases and sales proceeds of investment securities (excluding short-term
securities) during the period ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
Purchases Sales
--------------- --------------
<S> <C> <C>
$ 63,920,962 $ 48,563,395
--------------- --------------
</TABLE>
There were no purchases or sales of long-term U.S. government securities during
the period ended March 31, 2000.
Unrealized Appreciation, Unrealized Depreciation And Federal Tax Cost Of
Securities
At March 31, 2000, 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>
$247,056,513 $105,425,718 $(14,420,802) $91,004,916
- ------------ ------------ ------------ -----------
</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.
Securities Lending
Under an agreement with State Street, the Portfolio has the ability to lend
securities to brokers, dealers and other financial institutions. Loans of
portfolio securities are collateralized by cash in an amount equal to at least
102% of the market value of the loaned securities at the time the loan is made.
The collateral is evaluated daily to ensure that it exceeds the current market
value of the loaned securities. The cash collateral received is invested in a
money market fund and income generated by such investment, net of any rebates
paid by State Street to borrowers, is remitted to State Street, as lending
agent, and the remainder is paid to the Portfolio.
At March 31, 2000, the Portfolio had securities on loan with a market value of
$24,699,259. Income earned from securities lending transactions is included in
securities lending income in the Statement of Operations.
<PAGE> 25
26
March 31, 2000 International Equity Semi-Annual Report
NOTES TO
FINANCIAL STATEMENTS
March 31, 2000 (Unaudited)
- --------------------------------------------------------------------------------
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 other 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, based on the Federal Funds Rate, is
charged to the specific party that executes the borrowing. In addition, the
unsecured line of credit requires a quarterly payment of a commitment fee based
on the average daily unused portion of the line of credit. At March 31, 2000,
the Portfolio had no borrowings outstanding on the line of credit.
5. Subsequent Events
On January 19, 2000, Berger and BIAM entered into an agreement to dissolve BBOI.
This agreement was approved by shareholders on May 5, 2000. The dissolution of
BBOI will have no effect on the investment advisory services to the Portfolio;
however, effective May 12, the investment advisory fee charged to the Portfolio
will be reduced according to the following schedule:
<TABLE>
<CAPTION>
Average Daily Net Assets Annual Rate
- ------------------------ -----------
<S> <C>
First $500 million .85%
Next $500 million .80%
Over $1 billion .75%
---
</TABLE>
Immediately upon shareholder approval Berger became the Fund's advisor and BIAM
continues to be responsible for the day-to-day management of the Portfolio as
sub-advisor. Additionally, the Portfolio has been renamed Berger International
Portfolio and the Trust has been renamed Berger Worldwide Portfolios Trust.
<PAGE> 26
IEFSAR
