BRIDGES INVESTMENT FUND, INC.
SECOND QUARTER OR SEMI-ANNUAL
1999
CONTENTS OF REPORT
Pages 1 - 2 Shareholder Letter
Exhibit 1 Portfolio Transactions from April 1, 1999,
through June 30, 1999
Exhibit 2 Quarter-to-Quarter Changes in Financial Data
Pages F1-F14 Unaudited Financial Statements for the
Six Months Ended June 30, 1999
This report has been prepared for the information of the shareholders
of Bridges Investment Fund, Inc. and is under no circumstances to be
construed as an offering of shares of the Fund. Such offering is made only
by Prospectus, a copy of which may be obtained by inquiry to the Fund's
office.
<PAGE>
BRIDGES INVESTMENT FUND, INC.
8401 WEST DODGE ROAD
OMAHA, NEBRASKA 68114
TELEPHONE 402-397-4700
FACSIMILE 402-397-8617
DIRECTORS
FREDERICK N. BACKER
EDSON L. BRIDGES II
EDSON L. BRIDGES III
N. P. DODGE, JR.
JOHN W. ESTABROOK
JON D. HOFFMASTER
JOHN J. KORALESKI
ROGER A. KUPKA
GARY L. PETERSEN
JOHN T. REED
ROY A. SMITH
JANICE D. STONEY
L.B. THOMAS
JOHN K. WILSON
OFFICERS
EDSON L. BRIDGES II - CHAIRMAN AND
CHIEF EXECUTIVE OFFICER
EDSON L. BRIDGES III - PRESIDENT AND
CHIEF INVESTMENT OFFICER
BRIAN M. KIRKPATRICK - VICE PRESIDENT
MARY ANN MASON - SECRETARY
KATHLEEN J. STRANIK - ASSISTANT SECRETARY
NANCY K. DODGE - TREASURER
LINDA J. MORRIS - ASSISTANT TREASURER
AUDITOR
KPMG LLP
TWO CENTRAL PARK PLAZA
SUITE 1501
OMAHA, NEBRASKA 68102-1617
CORPORATE COUNSEL
BAIRD, HOLM, MCEACHEN,
PEDERSEN, HAMANN & STRASHEIM
1500 WOODMEN TOWER
OMAHA, NEBRASKA 68102
<PAGE>
JULY 28, 1999
DEAR SHAREHOLDER:
BRIDGES INVESTMENT FUND, INC. HAD A TOTAL RETURN OF 5.59% DURING THE SECOND
QUARTER OF 1999 BASED ON A MARCH 31, 1999, NET ASSET VALUE OF $36.64 AND A JUNE
30, 1999, NET ASSET VALUE OF $38.61. INCLUDED IN THE SECOND QUARTER'S TOTAL
RETURN IS A DIVIDEND OF $0.075 PAID ON APRIL 14. ON A CALENDAR YEAR-TO-DATE
BASIS, THE FUND HAD A TOTAL RETURN OF 12.92% AND HAD A TOTAL RETURN OF 20.85%
FOR THE 12-MONTH PERIOD ENDING JUNE 30. BY COMPARISON, THE S&P 500 HAD TOTAL
RETURNS OF 7.05% FOR THE SECOND QUARTER, 12.38% FOR THE FIRST SIX MONTHS OF THE
YEAR, AND 22.76% FOR THE TRAILING 12 MONTHS ENDING JUNE 30, 1999.
DURING THE QUARTER, THE FUND'S COMMON STOCKS HAD A TOTAL RETURN OF 6.64%,
WHICH LAGGED SLIGHTLY THE S&P 500'S TOTAL RETURN OF 7.05% DURING THE QUARTER.
STOCK PRICE PERFORMANCE FOR THE FUND'S EQUITIES WAS MORE MUTED DURING THE
QUARTER, AS THE MARKET SAW A FAIRLY SIGNIFICANT BROADENING OUT OF BETTER
INVESTMENT PERFORMANCE BY ECONOMICALLY SENSITIVE COMPANIES, MORE VALUE-ORIENTED
STOCKS, AND SMALLER AND MEDIUM CAPITALIZATION STOCKS. OUR SENSE IS THAT THE
IMPROVED BREADTH OF THE MARKET IN THE SECOND QUARTER IS ACTUALLY POSITIVE FOR
THE MARKET LONGER TERM, EVEN THOUGH IN THE SHORT RUN, THE IMPROVED BREADTH
SEEMED TO COME AT THE EXPENSE OF STRONGER RELATIVE PERFORMANCE OF THE FUND'S
GROWTH-ORIENTED EQUITIES.
OF GREATER CONCERN TO THE FUND'S MANAGEMENT IS THE OVERALL LEVEL OF
VALUATION BOTH IN THE MARKET AND, MORE PARTICULARLY, OF THE FUND'S HOLDINGS,
PARTICULARLY IN THE TECHNOLOGY SEGMENT OF THE MARKET. WHILE THE STRONG EARNINGS
GROWTH ENJOYED BY MOST OF THE FUND'S EQUITIES OVER THE PAST SEVERAL YEARS HAS
SERVED TO DRIVE STRONG RELATIVE AND ABSOLUTE PRICE PERFORMANCE, THIS PERFORMANCE
HAS CONCOMITANTLY DRIVEN VALUATION TO RELATIVELY HIGH LEVELS BOTH ON AN ABSOLUTE
AND RELATIVE BASIS. CONSEQUENTLY, THE QUESTION FOR THE FUND'S MANAGEMENT GOING
FORWARD IS WHETHER TO TAKE PROFITS IN STOCKS WHERE VALUATIONS ARE HIGH OR STAY
THE COURSE WHERE CONTINUED FAVORABLE LONG-TERM EARNINGS GROWTH PROSPECTS SEEM TO
BE IN PLACE. WE WILL CONTINUE TO GRAPPLE WITH THIS CHALLENGE ON A STOCK-BY-
STOCK BASIS, LITERALLY DAY BY DAY AS THE SECOND HALF OF 1999 CONTINUES TO
UNFOLD.
THE FOLLOWING TABLE SUMMARIZES THE TEN LARGEST EQUITY HOLDINGS OF THE FUND
AS OF JUNE 30, 1999, AND INCLUDES STOCK PRICE PERFORMANCE AND VALUATION DATA
THAT WE BELIEVE YOU WILL FIND OF INTEREST.
<TABLE>
<CAPTION>
% EPS EPS
TOT % 5YR LT
6/30/99 % % RET TOT HIST FTR
NO. OF MARKET OF TOT 2ND RET GR P/E P/E GR
SHARES COMPANY VALUE EQUITY ASST QTR 12 MO RATE 1999 2000 RATE
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
45,000 GAP 2,266,875 4.5 4.0 12.3 84.8 29 42.3 35.0 20
33,000 CAPITAL ONE 1,837,688 3.6 3.3 10.7 34.8 20 32.4 25.8 25
20,000 MICROSOFT 1,803,750 3.5 3.2 0.6 66.4 43 67.3 58.9 25
9,068 VODAFONE 1,786,396 3.5 3.2 4.9 57.2 23 65.0 53.8 20
30,000 FREDDIE MAC 1,740,000 3.4 3.1 1.5 24.4 16 20.2 17.7 15
11,000 QUALCOMM 1,578,500 3.1 2.8 130.8 410.8 54 70.7 52.6 35
20,000 INTEL 1,190,000 2.3 2.1 0.2 60.8 25 25.6 22.0 20
16,000 MERCK 1,178,000 2.3 2.1 -7.8 11.7 15 30.1 26.7 14
18,000 CISCO 1,159,875 2.3 2.1 17.6 110.0 40 87.1 70.0 30
SYSTEMS
18,000 HOME DEPOT 1,159,875 2.3 2.1 3.6 55.5 25 46.7 38.1 24
</TABLE>
ON JULY 13, 1999, THE BOARD OF DIRECTORS DECLARED A $.066 PER SHARE
DIVIDEND ON THE SHARES OF CAPITAL STOCK OUTSTANDING ON THE JULY 13, 1999, RECORD
DATE WITH THIS INCOME DISTRIBUTION AMOUNT TO BE PAYABLE ON OR ABOUT JULY 26,
1999. THIS DIVIDEND IS PAYABLE FROM THE NET INVESTMENT INCOME EARNED DURING THE
APRIL-JUNE 1999 QUARTER.
THE MANAGEMENT AND THE MEMBERS OF THE BOARD OF DIRECTORS THANK YOU FOR YOUR
CONTINUED INVESTMENT IN OUR FUND AND FOR ANY REFERRALS YOU MAY MAKE OF NEW
INVESTORS IN OUR SHARES.
SINCERELY,
EDSON L. BRIDGES III, CFA
PRESIDENT
EDSON L. BRIDGES II, CFA
CHAIRMAN
ELBIII:KJS
<PAGE>
<TABLE>
Exhibit 1
BRIDGES INVESTMENT FUND, INC.
PORTFOLIO TRANSACTIONS
DURING THE PERIOD FROM
APRIL 1, 1999, THROUGH JUNE 30, 1999
<CAPTION>
Bought or Held After
Received Transaction
Securities $1,000 Par $1,000 Par
Common Stocks Unless Value (M) Value (M)
Described Otherwise or Shares or Shares
<S> <C> <C>
AES Corporation 2,000 2,000
Alcoa, Inc. 4,000 4,000
(1)<F1> Altera, Corporation 2,000 4,000
(2)<F2> At Home Corporation 1,000 2,000
CSG Systems International, Inc. 4,000 15,000
(3)<F3> Capital One Financial 22,000 33,000
(4)<F4> Cisco Systems 9,000 18,000
(5)<F5> Comcast Corp. Class A Special 3,000 6,000
DLJ Direct 500 500
Dow Chemical Company 1,000 6,000
(6)<F6> E-Trade Group, Inc. 2,000 4,000
(7)<F7> EMC Corporation 8,000 16,000
(8)<F8> Elan PLC ADR 10,000 20,000
(9)<F9> Gap, Inc. 15,000 45,000
(10)<F10> Georgia Pacific Corporation 4,000 4,000
Goldman Sachs Group, Inc. 3,000 3,000
Hertz Corporation Class A 2,000 2,000
(11)<F11> Intel Corporation 10,000 20,000
(12)<F12> Nokia Corporation 6,000 12,000
Nucor Corporation 1,000 5,500
(13)<F13> Paychex, Inc. 500 1,500
Providian Financial 2,000 4,000
(14)<F14> Qualcomm, Inc. 6,000 11,000
(15)<F15> Sprint Corporation 5,000 10,000
Sprint PCS Corporation 2,000 4,500
Transaction Systems Architects 2,000 27,000
U.S. Bancorp 3,000 5,000
(17)<F17> Vodafone Airtouch PLC 6,068 9,068
Various Issues of Commercial Paper 13,505M 1,550M
Notes Purchased during
2nd Quarter, 1999
-2-
Exhibit 1
BRIDGES INVESTMENT FUND, INC.
PORTFOLIO TRANSACTIONS
DURING THE PERIOD FROM
APRIL 1, 1999 THROUGH JUNE 30, 1999
(Continued)
<CAPTION>
Held After
Exchanged Transacion
Securities $1,000 Par $1,000 Par
Common Stocks Unless Value (M) Value (M)
Described Otherwise or Shares or Shares
<S> <C> <C>
(16)<F16> Airtouch Communications 4.25% 3,000 --
Convertible Preferred Series C
(17)<F17> Airtouch Communications 12,137 --
Albertsons, Inc. 5,000 --
America On-Line 1,000 6,000
Chancellor Media Corporation 2,000 --
Coca Cola Company 1,000 --
Compaq Computer Corporation 10,000 --
Monsanto Company 10,000 --
Network Associates 4,500 --
RCN Corporation 1,000 --
Steris Corporation 6,000 --
(18)<F18> Super Value Stores, Inc. 8.875% 100M --
due 6-15-1999
United States Treasury Notes 9.125% 200M --
due 5-15-1999
Various Issues of Commercial 12,735M --
Paper Notes maturing during
2nd Qtr., 1999
<F1>(1) - Received 2,000 shares in a 2-for-1 stock split on May 20, 1999.
<F2>(2) - Received 1,000 shares in a 2-for-1 stock split on June 17, 1999.
<F3>(3) - Received 22,000 shares in a 3-for-1 stock split on June 2, 1999.
<F4>(4) - Received 9,000 shares in a 2-for-1 stock split on June 22, 1999.
<F5>(5) - Received 3,000 shares in a 2-for-1 stock split on May 6, 1999.
<F6>(6) - Received 2,000 shares in a 2-for-1 stock split on May 21, 1999.
<F7>(7) - Received 8,000 shares in a 2-for-1 stock split on June 1, 1999.
<F8>(8) - Received 10,000 shares in a 2-for-1 stock split on June 7, 1999.
<F9>(9) - Received 15,000 shares in a 3-for-2 stock split on June 22, 1999.
<F10>(10) - Received 2,000 shares in a 2-for-1 stock split on June 4, 1999.
<F11>(11) - Received 10,000 shares in a 2-for-1 stock split on April 12, 1999.
<F12>(12) - Received 6,000 shares in a 2-for-1 stock split on April 9, 1999.
<F13>(13) - Received 500 shares in a 3-for-2 stock split on May 21, 1999.
<F14>(14) - Received 5,000 shares in a 2-for-1 stock split on May 11, 1999.
<F15>(15) - Received 5,000 shares in a 2-for-1 stock split on June 7, 1999.
<F16>(16) - Converted to 4,137 shares of Airtouch Communications common stock on
June 24, 1999.
<F17>(17) - Converted to 6,068 shares of Vodafone Airtouch PLC in merger with
name change on June 30, 1999.
<F18>(18) - Matured 100M Par Value on June 15, 1999.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
Exhibit 2
BRIDGES INVESTMENT FUND, INC.
HISTORICAL FINANCIAL INFORMATION
<CAPTION>
Net Shares Net Asset Dividend/ Capital
Valuation Assets Outstanding Value/Share Share Gains/Share
Date
<S> <C> <C> <C> <C> <C>
07-01-63 $ 109,000 10,900 $10.00 $ - $ -
09-30-63 109,764 10,900 10.07 - -
12-31-63 159,187 15,510 10.13 .07 -
03-31-64 202,354 19,105 10.59 .07 -
06-30-64 253,932 23,438 10.83 .07 -
09-30-64 310,307 28,286 10.97 .07 -
12-31-64 369,149 33,643 10.97 .07 -
03-31-65 434,523 38,531 11.28 .075 .028
06-30-65 491,068 44,667 10.99 .07 -
09-30-65 558,913 47,710 11.71 .07 -
12-31-65 621,241 51,607 12.04 .07 -
03-31-66 661,711 55,652 11.89 .085 -
06-30-66 643,920 57,716 11.16 .07 -
09-30-66 592,628 58,610 10.11 .07 -
12-31-66 651,282 59,365 10.97 .07 -
03-31-67 728,115 60,181 12.10 .085 -
06-30-67 753,075 61,364 12.27 .07 -
09-30-67 823,967 62,810 13.12 .07 -
12-31-67 850,119 64,427 13.20 .07 -
03-31-68 812,416 65,607 12.38 .105 -
06-30-68 1,013,629 72,214 14.04 .07 -
09-30-68 1,046,852 72,633 14.41 .07 -
12-31-68 1,103,734 74,502 14.81 .07 -
03-31-69 1,083,278 77,393 14.00 .15 -
06-30-69 1,030,784 79,169 13.02 .07 -
09-30-69 1,063,290 83,291 12.77 .07 -
12-31-69 1,085,186 84,807 12.80 .07 -
03-31-70 1,061,534 87,349 12.15 .16 -
06-30-70 843,133 88,367 9.54 .07 -
09-30-70 959,114 89,417 10.73 .07 -
12-31-70 1,054,162 90,941 11.59 .07 -
03-31-71 1,168,919 91,819 12.73 .16 -
06-30-71 1,198,777 92,573 12.94 .07 -
09-30-71 1,200,753 92,723 12.95 .07 -
12-31-71 1,236,601 93,285 13.26 .07 -
03-31-72 1,285,684 93,661 13.73 .14 .08
06-30-72 1,228,951 93,834 13.10 .07 -
09-30-72 1,208,454 92,258 13.10 .07 -
12-31-72 1,272,570 93,673 13.59 .07 -
03-31-73 1,152,089 96,695 11.91 .13 .07
06-30-73 1,073,939 97,943 10.96 .07 -
09-30-73 1,131,789 99,353 11.39 .07 -
12-31-73 1,025,521 100,282 10.23 .07 -
<PAGE>
EXHIBIT 2 - HISTORICAL FINANCIAL INFORMATION
<CAPTION>
Valuation Net Shares Net Asset Dividend/ Capital
Date Assets Outstanding Value/Share Share Gains/Share
<S> <C> <C> <C> <C> <C>
03-31-74 988,697 101,763 9.72 .14 -
06-30-74 863,820 101,578 8.50 .07 -
09-30-74 667,051 101,292 6.59 .07 -
12-31-74 757,545 106,909 7.09 .07 -
03-31-75 909,125 106,162 8.56 .14 -
06-30-75 1,028,687 106,517 9.66 .07 -
09-30-75 954,187 107,651 8.86 .07 -
12-31-75 1,056,439 111,619 9.46 .07 -
03-31-76 1,230,953 115,167 10.69 .16 -
06-30-76 1,265,767 117,506 10.77 .07 -
09-30-76 1,313,363 121,229 10.83 .07 -
12-31-76 1,402,661 124,264 11.29 .08 -
03-31-77 1,335,592 126,714 10.54 .188 .062
06-30-77 1,456,451 134,575 10.82 .08 -
09-30-77 1,450,573 139,402 10.41 .08 -
12-31-77 1,505,147 145,252 10.36 .08 -
03-31-78 1,418,417 146,380 9.69 .211 .049
06-30-78 1,523,758 145,470 10.47 .09 -
09-30-78 1,672,364 150,729 11.10 .09 -
12-31-78 1,574,097 153,728 10.24 .09 -
03-31-79 1,724,695 162,627 10.61 .204 .051
06-30-79 1,773,427 163,640 10.84 .09 -
09-30-79 1,913,242 167,426 11.43 .09 -
12-31-79 1,872,059 165,806 11.29 .09 -
03-31-80 1,769,935 170,882 10.36 .25 .0525
06-30-80 1,974,288 169,675 11.64 .10 -
09-30-80 2,204,689 173,549 12.70 .10 -
12-31-80 2,416,997 177,025 13.65 .10 -
03-31-81 2,424,976 184,148 13.17 .29 .0868
06-30-81 2,356,007 186,307 12.65 .11 -
09-30-81 2,128,956 183,447 11.61 .11 -
12-31-81 2,315,441 185,009 12.52 .12 -
03-31-82 2,165,531 194,140 11.15 .39 .19123
06-30-82 2,074,816 190,067 10.92 .13 -
09-30-82 2,262,073 189,837 11.92 .13 -
12-31-82 2,593,411 195,469 13.27 .13 -
03-31-83 2,815,081 209,390 13.44 .40 .2500
06-30-83 3,030,744 212,068 14.29 .15 -
09-30-83 3,210,564 223,059 14.39 .15 -
12-31-83 3,345,988 229,238 14.60 .15 -
03-31-84 3,279,542 247,700 13.24 .32 .5000
06-30-84 3,322,155 262,695 12.65 .16 -
09-30-84 3,554,876 263,783 13.48 .16 -
12-31-84 3,727,899 278,241 13.40 .16 -
03-31-85 4,058,327 300,068 13.52 .22 .6800
06-30-85 4,351,707 305,496 14.24 .16 -
09-30-85 4,260,686 310,379 13.73 .16 -
12-31-85 4,962,325 318,589 15.58 .16 -
03-31-86 5,663,449 347,479 16.30 .208 .86227
06-30-86 6,174,120 365,531 16.89 .16 -
<PAGE>
EXHIBIT 2 - HISTORICAL FINANCIAL INFORMATION
<CAPTION>
Net Shares Net Asset Dividend/ Capital
Valuation Assets Outstanding Value/Share Share Gains/Share
Date
<S> <C> <C> <C> <C> <C>
09-30-86 6,392,215 399,871 15.99 ,16 -
12-31-86 6,701,786 407,265 16.46 .16 -
03-31-87 8,766,205 491,228 17.85 .196 .79447
06-30-87 9,214,305 509,569 18.08 .16 -
09-30-87 9,921,139 530,566 18.70 .16 -
12-31-87 7,876,275 525,238 15.00 .14 .24513
03-31-88 8,649,901 565,608 15.29 .16 -
06-30-88 9,027,829 574,563 15.71 .15 -
09-30-88 8,986,977 575,956 15.60 .16 -
12-31-88 8,592,807 610,504 14.07 .38 1.10967
03-31-89 9,103,009 618,331 14.72 - -
06-30-89 9,531,124 614,861 15.50 .16 -
09-30-89 10,815,006 652,207 16.58 .16 -
12-31-89 10,895,182 682,321 15.97 .35 0.53769
03-31-90 11,000,740 695,558 15.82 - -
06-30-90 11,521,748 696,414 16.54 .16 0.02646
09-30-90 10,534,037 706,268 14.92 .16 -
12-31-90 11,283,448 744,734 15.15 .35 0.40297
03-31-91 12,685,391 759,477 16.70 - -
06-30-91 12,485,281 766,387 16.29 .16 -
09-30-91 13,225,379 780,213 16.95 .16 -
12-31-91 14,374,679 831,027 17.30 .34 0.29292
03-31-92 14,428,305 851,349 16.95 - -
06-30-92 14,691,191 863,019 17.02 .15 -
09-30-92 15,940,013 910,936 17.50 .16 -
12-31-92 17,006,789 971,502 17.51 .325 0.15944
03-31-93 18,071,613 1,008,275 17.92 - -
06-30-93 17,621,101 992,755 17.75 .15 -
09-30-93 17,949,559 999,163 17.96 .15 -
12-31-93 17,990,556 1,010,692 17.80 .3125 0.17075
03-31-94 17,777,177 1,021,219 17.41 - -
06-30-94 17,953,364 1,033,984 17.36 .14 -
09-30-94 18,472,176 1,036,473 17.82 .15 -
12-31-94 18,096,297 1,058,427 17.10 .30 0.17874
03-31-95 19,835,494 1,072,309 18.50 - -
06-30-95 21,416,325 1,076,463 19.90 .14 -
09-30-95 22,527,409 1,082,829 20.80 .14 -
12-31-95 24,052,746 1,116,620 21.54 .295 0.19289
03-31-96 26,025,304 1,148,429 22.66 - -
06-30-96 27,108,210 1,157,425 23.42 .1325 -
09-30-96 27,451,784 1,165,788 23.55 .1325 -
12-31-96 29,249,488 1,190,831 24.56 .285 0.25730
03-31-97 30,255,441 1,210,627 24.99 - -
06-30-97 34,567,391 1,229,643 28.11 .1325 -
09-30-97 36,500,979 1,242,731 29.37 .135 -
12-31-97 36,647,535 1,262,818 29.02 .24 0.30571
03-31-98 41,413,655 1,283,322 32.27 - -
06-30-98 43,600,764 1,298,420 33.58 .135 -
09-30-98 40,423,166 1,308,173 30.90 .09 -
12-31-98 48,433,113 1,413,731 34.26 .215 2.11648
03-31-99 52,835,162 1,442,077 36.64 - -
06-30-99 56,490,020 1,463,133 38.61 .075 -
</TABLE>
<PAGE>
<TABLE>
F-1
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1999
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS - (88.4%)
Advertising - 1.6%
Interpublic Group of Companies, Inc. (The) 2,000 $ 106,953 $ 173,250
Outdoor Systems, Inc.*<FN> 19,050 323,364 695,325
$ 430,317 $ 868,575
Aerospace/Defense _ 0.7%
Gulfstream Aerospace Corp.*<FN> 6,000 $ 274,752 $ 405,378
Aircraft _ Manufacturing - 0.9%
The Boeing Company 12,000 $ 278,135 $ 528,000
Amusements _ Recreation _ Sporting Goods _ 0.6%
Nike, Inc. 5,000 $ 171,270 $ 316,875
Automobile _ Rental Equipment _ 0.2%
Hertz Corporation (The) Class A 2,000 $ 121,140 $ 124,000
Banking and Finance - 4.6%
Chase Manhattan Corporation (The) 2,000 $ 86,650 $ 173,000
First National of Nebraska, Inc. 230 346,835 684,250
MBNA Corporation 15,000 234,825 459,375
State Street Corporation 8,000 66,525 683,000
U.S. Bancorp (New) 5,000 166,370 166,875
Wells Fargo & Co. (New) 10,000 138,173 427,500
$ 1,039,378 $ 2,594,000
Beverages - Soft Drinks - 1.6%
PepsiCo, Inc. 24,000 $ 307,470 $ 928,512
Chemicals - 2.3%
The Dow Chemical Company 6,000 $ 396,947 $ 761,250
Du Pont (E.I.) De Nemours & Company 8,000 273,935 546,504
$ 670,882 $ 1,307,754
Communications _ Radio and Television _ 1.2%
Clear Channel Communications, Inc.*<FN> 10,000 $ 366,954 $ 689,380
<FN>*Nonincome-producing security
F-2
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
JUNE 30, 1999
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Computers - Hardware and Software - 12.8%
America Online, Inc.*<FN> 6,000 $ 529,237 $ 660,000
Cisco Systems, Inc.*<FN> 18,000 290,726 1,161,000
Dell Computer Corporation *<FN> 3,000 109,594 111,000
EMC Corporation*<FN> 16,000 358,855 880,000
HNC Software, Inc.*<FN> 16,000 495,325 493,008
Hewlett-Packard Co. 6,000 83,784 603,000
I2 Technologies, Inc.*<FN> 5,000 154,166 215,000
Microsoft Corporation*<FN> 20,000 93,361 1,803,760
Sun Microsystems, Inc.*<FN> 2,000 211,188 275,500
Transaction Systems Architects, Inc.*<FN> 27,000 961,181 1,053,000
$ 3,287,417 $ 7,255,268
Data Processing and Management _ 0.7%
CSG Systems*<FN> 15,000 $ 435,847 $ 392,820
Diversified Operations _ 0.8%
Berkshire Hathaway Inc., Class B *<FN> 210 $ 150,375 $ 470,400
Drugs - Medicines _ Cosmetics - 7.7%
Abbott Laboratories 15,000 $ 169,395 $ 680,625
Amgen, Inc.*<FN> 6,000 248,687 365,250
Bristol-Myers Squibb Co. 8,000 141,675 563,504
Elan Corporation PLC ADR*<FN> 20,000 419,005 555,000
Johnson & Johnson 10,000 109,396 980,000
Merck & Co., Inc. 16,000 274,266 1,178,000
$ 1,362,424 $ 4,322,379
Electrical Equipment and Supplies - 1.6%
General Electric Co. 8,000 $ 147,473 $ 904,000
Electronic Components _ Conductors _ 0.3%
Altera Corporation*<FN> 4,000 $ 96,625 $ 147,252
Electronics - 3.5%
Intel Corporation 20,000 $ 334,735 $ 1,190,000
Solectron Corporation *<FN> 12,000 230,974 800,256
$ 565,709 $ 1,990,256
Finance _ Credit Cards _ 1.1%
American Express Company 2,000 $ 165,255 $ 260,250
Providian Financial Corporation 4,000 391,286 373,000
$ 556,541 $ 633,250
Finance _ Diversified _ 0.6%
Morgan Stanley, Dean Witter, Discover & Co. 3,000 $ 202,960 $ 307,875
<FN>*Nonincome-producing security
F-3
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
JUNE 30, 1999
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Finance _ Investment Banks _ 0.8%
Donaldson, Lufkin & Jenrette, Inc. _ 500 $ 10,000 $ 14,750
DLJ direct*<FN>
Goldman Sachs Group, Inc. 3,000 202,843 216,750
Merrill Lynch & Co., Inc. 3,000 168,586 238,500
$ 381,429 $ 470,000
Finance - Real Estate - 3.1%
Freddie Mac 30,000 $ 470,320 $ 1,740,000
Finance _ Services - 3.8%
Capital One Financial Corporation 33,000 $ 592,546 $ 1,837,704
E*Trade Group, Inc.*<FN> 4,000 98,188 159,750
FINOVA 2,000 80,535 105,250
Paychex, Inc. 1,500 43,438 47,812
$ 814,707 $ 2,150,516
Food _ Miscellaneous Products - 1.4%
Philip Morris Companies, Inc. 20,000 $ 338,693 $ 803,760
Insurance _ Mortgage _ 0.4%
MGIC Investment Corporation 4,000 $ 177,450 $ 194,500
Insurance _ Multiline - 0.5%
American International Group, Inc. 2,500 $ 118,455 $ 293,125
Insurance _ Municipal Bond _ 0.9%
MBIA, Inc. 8,000 $ 360,053 $ 518,000
Internet _ Content _ 0.2%
At Home Corporation *<FN> 2,000 $ 121,375 $ 107,876
Linen Supply and Related Products - 0.5%
Cintas Corporation 4,000 $ 166,578 $ 268,750
Medical _ Wholesale Drug Dist. _ 0.2%
Cardinal Health, Inc. 2,000 $ 148,330 $ 128,250
Metal Products _ Aluminum _ 0.4%
Alcoa, Inc. 4,000 $ 230,096 $ 247,500
Metal Products _ Miscellaneous - 0.5%
Nucor Corporation 5,500 $ 122,061 $ 260,909
<FN>*Nonincome-producing security
F-4
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
JUNE 30, 1999
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Motion Pictures and Theatres - 1.2%
The Walt Disney Company 22,000 $ 236,300 $ 677,886
Paper and Related Products _ 0.3%
Georgia Pacific Group 4,000 $ 178,745 $ 189,500
Petroleum Producing - 5.4%
Atlantic Richfield Company 4,000 $ 211,835 $ 334,252
BP Amoco PLC _ Spons. ADR 6,616 246,135 717,836
Chevron Corporation 10,000 340,535 950,630
Exxon Corporation 8,000 198,750 617,000
Mobil Corporation 4,000 127,075 395,000
$ 1,124,330 $ 3,014,718
Publishing _ Newspapers - 1.0%
Gannett Co., Inc. 8,000 $ 179,310 $ 571,000
Publishing _ Electronic - 0.8%
Reuters Group PLC, ADR Sponsored 5,199 $ 166,303 $ 421,447
Retail Stores _ Apparel and Clothing - 4.0%
Gap, Inc. 45,000 $ 258,323 $ 2,266,875
Retail Stores _ Building Materials and Home
Improvement _ 2.1%
The Home Depot, Inc. 18,000 $ 455,080 $ 1,159,884
Retail Stores _ Department - 1.7%
Dayton Hudson Corporation 15,000 $ 146,129 $ 975,000
Schools _ 0.4%
Sylvan Learning System *<FN> 7,500 $ 200,089 $ 203,910
Telecommunications - 8.6%
Level 3 Communications *<FN> 12,000 $ 483,300 $ 720,756
MCI WorldCom, Inc. *<FN> 13,000 466,188 1,118,819
Sprint Corporation 10,000 83,964 530,000
Sprint PCS Corporation *<FN> 4,500 124,893 256,500
Vodafone Airtouch PLC Sponsored ADR 9,068 986,788 1,786,495
West Teleservices Corporation*<FN> 50,000 690,644 468,750
$ 2,835,777 $ 4,881,320
<FN>*Nonincome-producing security
F-5
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
JUNE 30, 1999
(Unaudited)
<CAPTION>
Number
Title of Security of Shares Cost Valuet
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Telecommunications _ Equipment _ 4.7%
Nokia Corporation 12,000 $ 492,858 $ 1,098,756
Qualcomm Incorporated *<FN> 11,000 526,768 1,578,500
$ 1,019,626 $ 2,677,256
Television _ Cable _ 0.4%
Comcast Corporation 6,000 $ 141,375 $ 230,628
Transportation _ Airfreight _ 1.7%
Eagle USA Airfreight, Inc. *<FN> 22,000 $ 416,042 $ 933,636
Transportation _ Railroads - 0.4%
Union Pacific Corporation 4,000 $ 148,580 $ 233,252
Utilities _ Electric _ 0.2%
AES Corporation (The)*<FN> 2,000 $ 103,765 $ 116,250
TOTAL COMMON STOCKS (Cost - $21,524,990) $21,524,990 $49,921,722
PREFERRED STOCKS (1.7%)
Banking and Finance _ 1.1%
CFC Capital Trust 9.375% Preferred, Series B 5,000 $ 125,000 $ 123,750
CFB Capital II 8.20% Cumulative Preferred 5,000 125,000 124,375
Harris Preferred Capital Corp., 10,000 250,000 242,500
7.375%, Series A
Silicon Valley Bancshares Capital 5,000 125,000 110,315
8.25% Preferred Series I
$ 625,000 $ 600,940
Petroleum Producing _ 0.2%
Canadian Occidental Petroleum Ltd. 5,000 $ 125,000 $ 127,190
9.375% Preferred _ Series 1
Utilities _ Electric _ 0.4%
Tennessee Valley Authority 6.75% 10,000 $ 250,000 $ 241,250
Variable Preferred Series D
Total Preferred Stocks (Cost - $1,000,000) $ 1,000,000 $ 969,380
Total Stocks (Cost - $22,524,990) $22,524,990 $50,891,102
<FN>*Nonincome-producing security
F-6
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
JUNE 30, 1999
(Unaudited)
<CAPTION>
Principal Market
Title of Security Amount Cost Value
<S> <C> <C> <C>
DEBT SECURITIES (9.4%)
Energy _ Alternate Sources - 0.4%
CalEnergy Co., Inc., 7.63% Notes
due October 15, 2007 $200,000 $ 200,000 $ 202,400
Household Appliances and Utensils - 0.2%
Maytag Corp., 9.75% Notes,
due May 15, 2002 $100,000 $ 102,200 $ 108,450
Office Equipment and Supplies - 0.2%
Xerox Corporation, 9.750% Notes
due March 15, 2000 $100,000 $ 100,025 $ 102,760
Retail Stores _ Department - 0.5%
Dillard Department Stores, Inc., 7.850%
Debentures, due October 1, 2012 $150,000 $ 151,348 $ 155,475
Sears Roebuck & Co., 9.375% Debentures
due November 1, 2011 100,000 $ 106,399 115,602
$ 257,747 $ 271,077
Telecommunications _ 0.4%
Level 3 Communications, Inc., 9.125% Senior $250,000 $ 241,937 $ 246,875
Notes due May 1, 2008
U.S. Government _ 5.0%
U.S. Treasury, 8.750% Notes,
due August 15, 2000 200,000 $ 211,900 $ 207,344
U.S. Treasury, 8.000% Notes,
due May 15, 2001 200,000 199,052 208,750
U.S. Treasury, 7.500% Notes,
due May 15, 2002 200,000 214,097 209,500
U.S. Treasury, 10.750% Bonds
due February 15, 2003 200,000 219,525 232,281
U.S. Treasury, 7.250% Notes,
due May 15, 2004 300,000 303,245 317,625
U.S. Treasury, 7.500% Notes,
due February 15, 2005 300,000 305,871 322,312
U.S. Treasury, 9.375% Bonds,
due February 15, 2006 200,000 256,223 237,781
F-7
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
JUNE 30, 1999
(Unaudited)
<CAPTION>
Principal Market
Title of Security Amount Cost Value
<S> <C> <C> <C>
DEBT SECURITIES (Continued)
U.S. Treasury, 7.625% Bonds,
due February 15, 2007 300,000 307,910 312,845
U.S. Treasury, 8.750% Bonds,
due November 15, 2008 200,000 237,472 220,938
U.S. Treasury, 9.125% Bonds,
due May 15, 2009 200,000 $ 234,910 $ 225,969
U.S. Treasury, 7.500% Bonds,
due November 15, 2016 300,000 308,539 337,875
$ 2,798,744 $ 2,833,220
Commercial Paper _ Short Term _ 2.7%
Ford Motor Credit Corporation
Commercial Paper Note 5.08%
due July 2, 1999 725,000 $ 725,000 725,000
American Express Credit Corporation
Commercial Paper Note 5.25%
due July 6, 1999 825,000 825,000 825,000
$ 1,550,000 $ 1,550,000
TOTAL DEBT SECURITIES (Cost - $5,250,653) $ 5,250,653 $ 5,314,782
TOTAL INVESTMENTS IN SECURITIES
(Cost - $27,775,643) (99.5%) $27,775,643 $56,205,884
CASH AND RECEIVABLES
LESS TOTAL LIABILITIES (0.5%) 284,136
NET ASSETS, June 30, 1999 (100.0%) $56,490,020
<FN>The accompanying notes to financial statements
are an integral part of this schedule.
</TABLE>
<PAGE>
<TABLE>
F-8
BRIDGES INVESTMENT FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(Unaudited)
<CAPTION>
ASSETS AMOUNT
<S> <C>
Investments, at market value
Common and preferred stocks (cost $22,524,990) $50,891,102
Debt securities (cost $5,250,653) 5,314,782
Total Investments $56,205,884
Cash 153,402
Receivables
Dividends and interest 96,797
Subscriptions to capital stock 3,824
Securities Sold 213,419
TOTAL ASSETS $56,673,326
LIABILITIES
Purchase of Securities $ 88,580
Investment advisor, management and
service fees payable 68,212
Accrued operating expenses 26,514
TOTAL LIABILITIES $ 183,306
NET ASSETS
Capital stock, $1 par value - Authorized
3,000,000 shares,
1,463,133 shares outstanding $ 1,463,133
Paid-in surplus - 25,962,958
Net capital paid in on shares $27,426,091
Accumulated net realized gain on
investment transactions 526,587
Net unrealized appreciation on investments 28,430,241
Accumulated undistributed net investment income 107,101
TOTAL NET ASSETS $56,490,020
NET ASSET VALUE PER SHARE $38.61
OFFERING PRICE PER SHARE $38.61
REDEMPTION PRICE PER SHARE $38.61
<FN>The accompanying notes to financial statements
are an integral part of this statement.
<PAGE>
</TABLE>
<PAGE>
<TABLE>
F-9
BRIDGES INVESTMENT FUND, INC.
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(Unaudited)
<CAPTION>
AMOUNT AMOUNT
<S> <C> <C>
INVESTMENT INCOME
Interest $184,119
Dividends (Net of foreign withholding taxes
of $1,996) 222,040
Total Investment Income $ 406,159
EXPENSES
Management fees $ 132,053
Custodian fees 17,655
Insurance and Other Administrative Fees 13,344
Bookkeeping services 10,102
Printing and supplies 8,394
Professional services 5,250
Dividend disbursing and transfer
agent fees 7,219
Computer programming 2,500
Taxes and licenses 533
Total Expenses $ 197,050
NET INVESTMENT INCOME $ 209,109
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on transactions in
investment securities $ 526,587
Net increase in unrealized
appreciation of investments 5,660,229
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS $ 6,186,816
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,395,925
<FN>The accompanying notes to financial statements
are an integral part of this statement.
</TABLE>
<PAGE>
<TABLE>
F-10
BRIDGES INVESTMENT FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
<CAPTION>
1999 1998
<S> <C> <C>
INCREASE IN NET ASSETS
Operations -
Net investment income $ 209,109 $ 297,308
Net realized gain on transactions in
investment securities 526,587 1,588,997
Net increase in unrealized
appreciation of investments 5,660,229 4,143,454
Net increase in net assets
resulting from operations $ 6,395,925 $6,029,759
Net equalization credits 1,223 1,079
Distributions to shareholders from -
Net investment income (108,250) (173,183)
Net realized gain from investment
transactions -- --
Return of capital -- --
Net capital share transactions 1,768,009 1,095,574
Total Increase in Net Assets $ 8,056,907 $6,953,229
NET ASSETS:
Beginning of year $ 48,433,113 $36,647,535
End of six months $ 56,490,020 $43,600,764
<FN>The accompanying notes to financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
F-11
BRIDGES INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(Unaudited)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Bridges Investment Fund, Inc. (Fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management
investment company. The primary investment objective of the Fund is long-
term capital appreciation. In pursuit of that objective, the Fund invests
primarily in common stocks. 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.
A. Investments -
Security transactions are recorded on the trade date at purchase
cost or sales proceeds. Dividend income is recognized on the ex-
dividend date, and interest income is recognized on an accrual basis.
Securities owned are reflected in the accompanying statement of
assets and liabilities and the schedule of portfolio investments at
quoted market value. Quoted market value represents the last recorded
sales price on the last business day of the calendar year for
securities traded on a national securities exchange. If no sales were
reported on that day, quoted market value represents the closing bid
price. The cost of investments reflected in the statement of assets
and liabilities and the schedule of portfolio investments is the same
as the basis used for Federal income tax purposes. The difference
between cost and quoted market value of securities is reflected
separately as unrealized appreciation (depreciation) as applicable.
<TABLE>
<CAPTION>
Net unrealized appreciation
(depreciation): 1999 1998 Net Change
<S> <C> <C> <C>
Aggregate gross unrealized
appreciation
on securities $28,835,225 $20,246,329
Aggregate gross unrealized
depreciation
on securities (404,984) (306,312)
Net $28,430,241 $19,940,017 $8,490,224
</TABLE>
The net realized gain (loss) from the sales of securities is
determined for income tax and accounting purposes on the basis of the cost
of specific securities. The gain computed on the basis of average cost
would have been substantially the same as that reflected in the
accompanying statement of operations.
F-12
B. Federal Taxes -
The Fund intends to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and not be
subject to federal income tax. Therefore, no income tax provision is
required. The Fund also intends to distribute its taxable net
investment income and realized gains, if any, to avoid the payment of
any federal excise taxes.
The character of distributions made during the year from net
investment income or net realized gains may differ from its ultimate
characterization for federal income tax purposes. In addition, due to
the timing of dividend distributions, the fiscal year in which amounts
are distributed may differ from the year that the income or realized
gains or losses were recorded by the Fund.
C. Distribution To Shareholders -
The Fund accrues income dividends to shareholders on a quarterly
basis as of the ex-dividend date. Distributions of net realized gains
are made on an annual basis to shareholders as of the ex-dividend
date.
D. Equalization -
The Fund uses the accounting practice of equalization by which a
portion of the proceeds from sales and costs of redemption of capital
shares, equivalent on a per share basis to the amount of undistributed
net investment income on the date of the transactions, is credited or
charged to undistributed income. As a result, undistributed net
investment income per share is unaffected by sales or redemption of
capital shares.
E. 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
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) INVESTMENT ADVISORY CONTRACT
Under an Investment Advisory Contract, Bridges Investment Counsel,
Inc. (Investment Adviser) furnishes investment advisory services and
performs certain administrative functions for the Fund. In return, the
Fund has agreed to pay the Investment Adviser a fee computed on a quarterly
basis at the rate of 1/8 of 1% of the average net asset value of the Fund
during the quarter, equivalent to 1/2 of 1% per annum. Certain officers
and directors of the Fund are also officers and directors of the Investment
Adviser. These officers do not receive any compensation from the Fund
other than that which is received indirectly through the Investment
Adviser.
F-13
The contract between the Fund and the Investment Adviser provides that
total expenses of the Fund in any year, exclusive of stamp and other taxes,
but including fees paid to the Investment Adviser, shall not exceed, in
total, a maximum of 1 and 1/2% of the average month end net asset value of
the Fund for the year. Amounts, if any, expended in excess of this
limitation are reimbursed by the Investment Adviser as specifically
identified in the Investment Advisory Contract. There were no amounts
reimbursed in the six months ended June 30, 1999.
(3) DIVIDEND DISBURSING AND TRANSFER AGENT
Effective October 1, 1987, dividend disbursing and transfer agent
services are provided by Bridges Investor Services, Inc. (Transfer Agent).
The fees paid to the Transfer Agent are intended to approximate the cost to
the Transfer Agent for providing such services. Certain officers and
directors of the Fund are also officers and directors of the Transfer
Agent.
(4) SECURITY TRANSACTIONS
The cost of long-term investment purchases during the six months ended
June 30, was:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
United States government obligations $ -- $ --
Other Securities 5,407,284 4,562,421
Total Cost $5,407,284 $4,562,421
</TABLE>
Net proceeds from sales of long-term investments during the six
months ended June 30, were:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
United States government obligations $ 200,500 $ 200,000
Other Securities 2,599,557 4,068,066
Total Net Proceeds $2,800,057 $4,268,066
Total Cost Basis of
Securities Sold $2,273,470 $2,679,069
</TABLE>
(5) NET ASSET VALUE
The net asset value per share represents the effective price for all
subscriptions and redemptions.
<PAGE>
F-14
(6) CAPITAL STOCK
Shares of capital stock issued and redeemed are as follows:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
Shares sold 60,520 48,035
Shares issued to shareholders in
reinvestment of net investment
income and realized gain from
security transactions 5,988 8,800
66,508 56,835
Shares redeemed 17,106 21,233
Net increase 49,402 35,602
</TABLE>
Value of capital stock issued and redeemed is as follows:
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
Shares sold $2,176,038 $1,494,288
Shares issued to shareholders in
reinvestment of net investment
income and realized gain from
security transactions 210,768 268,623
$2,386,806 $1,762,911
Shares redeemed 618,797 667,337
Net increase $1,768,009 $1,095,574
</TABLE>
(7) DISTRIBUTION TO SHAREHOLDERS
On July 13, 1999 a cash distribution of $.066 per share was
declared from net investment income accrued and earned through June 30,
1999. The total amount of the dividend to be paid is $96,032.97. This
dividend will be paid on July 26, 1999, to shareholders of record on July
13, 1999.
<PAGE>
