BRIDGES INVESTMENT FUND, INC.
FIRST QUARTER
2000
CONTENTS OF REPORT
Pages 1 - 3 Shareholder Letter
Exhibit 1 Portfolio Transactions from January 1, 2000,
through March 31, 2000
Exhibit 2 Selected Historical Financial Information
Exhibit 3 Reports to Stockholders of Management Companies
<PAGE>
Pages F1-F14 Unaudited Financial Statements for the
Three Months Ended March 31, 2000
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>
April 24, 2000
Dear Shareholder:
Investment Results
Bridges Investment Fund, Inc. had a total return of 1.63% during the First
Quarter of 2000 based on a year-end 1999 net asset value of $46.24 per share and
a March 31, 2000, net asset value of $46.30 per share. On a trailing 12-month
basis for the period ending March 31, Bridges Investment Fund had a total return
of 31.99%. By comparison, the S&P 500 had total returns of 2.29% for the First
Quarter and 17.94% for the trailing 12 months ended March 31, 2000.
The First Quarter was characterized by extreme volatility in the
marketplace, as investors grappled with the crosscurrents of a rising interest
rate environment and high valuations in the technology segment of the equity
market. We continue to expect that the remainder of this year will be
characterized by relatively significant equity market volatility. In this
environment, we will continue to look to be flexible with respect to both asset
allocation between fixed income and equities within the Fund and with regard to
stock selection within the equity portion of the Fund's portfolio.
The following table summarizes the 10 largest equity holdings in the Fund
as of March 31, 2000, and includes some salient performance and valuation data:
<TABLE>
<PAGE>
<CAPTION>
03/31/00 % % of Tot. Tot. EPS EPS EPS
Rtn. Rtn. LT
No. of Market of Tot. % Chg.% Chg. 5 Yr. % Chg. P/E P/E Futu
Net Hist. re
SharesCompany Value Equi Asset Qtr. 12 Gr. 00 Vs. 2000 2001 Gr.
ties s Mos. Rate 99 Rate
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
26,000Qualcomm 3,882,125 5.7% 5.0% -15.2% 860.4% 141% 75% 142.0 107.0 35%
36,000Cisco 2,783,250 4.1% 3.6% 44.3% 182.3% 35% 36% 152.0 117.0 30%
Systems
20,000Intel 2,638,750 3.9% 3.4% 60.3% 122.2% 21% 27% 44.9 38.8 20%
12,000Nokia 2,610,000 3.8% 3.4% 16.2% 186.4% - 27% 76.8 59.8 25%
50,000Gap 2,490,625 3.7% 3.2% 8.3% 11.2% 36% 23% 31.9 26.2 20%
40,000Vodafone 2,222,500 3.3% 2.9% 12.5% 48.6% 26% 22% 75.1 50.5 25%
Airtouch
20,000Microsoft 2,125,000 3.1% 2.8% -9.0% 18.5% 45% 22% 62.9 55.1 25%
16,000EMC Corp 2,000,000 2.9% 2.6% 15.3% 97.3% 32% 33% 86.9 65.6 30%
30,000Home 1,935,000 2.8% 2.5% -6.1% 55.7% 28% 25% 51.6 41.6 25%
Depot
40,000Capital 1,917,500 2.8% 2.5% -0.5% -4.5% 27% 31% 21.3 17.1 25%
One Finl.
24,604,750 36.1% 32.0%
Total 67,350,932 87.5%
Equities
Total 76,970,473
Assets
</TABLE>
Shareholder Letter -2- April 24, 2000
As always, our focus will remain on holding in the Fund's portfolio those
companies which we believe embody the best combination of above-average earnings
and cash flow growth prospects and reasonable valuation characteristics. We
will look to capitalize on the opportunities afforded us by the volatility we
expect in the market over the next several quarters. We appreciate your
confidence in our growth-oriented approach to investing and your patience during
those periods of time when our short-term results may be disappointing.
Financial Statements
The Fund's unaudited financial statements, appearing on pages F-1 through
F-14, provide the Schedule of Portfolio Investments, the Statement of Assets and
Liabilities, the Statement of Operations, the Statement of Changes in Net
Assets, and the Notes to Financial Statements as of March 31, 2000. These
presentations comprise our basic report to you. In addition, please refer to
Exhibits 1 and 2 for information about the Fund's portfolio transactions for
this First Quarter of 2000 and for the Fund's historical information with
respect to net assets, shares outstanding, net asset value per share, dividends,
and capital gains distributions.
Required Reports
Rule 30d-1(6) of the General Rules and Regulations under the Investment
Company Act of 1940, as promulgated by the Securities and Exchange Commission,
require certain reports to stockholders with respect to any matter that was
submitted to a shareholder vote during the period covered by the shareholder
report. The 2000 Annual Meeting of Shareholders of the Fund was held on
February 15, 2000. The information that is required to be reported to you with
respect to this meeting appears in Exhibit 3, attached hereto. A similar
presentation will be made each time there is an annual or special meeting, and,
in the instance of this report, the same information will be published again in
January, 2001, within the Annual Shareholder Report for 2000 to fulfill certain
requirements in connection with the solicitation of proxies for the next Annual
Meeting of Shareholders.
Cash Distributions
On April 13, 2000, the Board of Directors declared a $.075 per share
dividend on shares of capital stock that were outstanding on April 13, 2000 -- -
- - the record date for this income distribution. This dividend amount will be
payable on or about April 24, 2000. This dividend is payable from net
investment income earned during the January-March, 2000 Quarter.
On January 14, 2000, the Board of Directors declared a $.6910571 per share
capital gains distribution to shareholders of record on that date with the
payment to be made on April 24, 2000. Net short-term capital gains earned in
the period from November 1, 1999, through December 31, 1999 were the source for
this payment.
Shareholders who received their quarterly dividends and capital gains
amounts will notice that a different number of shares were used to compute the
dollar values to be received. This phenomenon is due to the two separate dates
of record.
Shareholder Letter -3- April 24, 2000
Sales of Shares in States Other Than Nebraska
The Fund has now registered its shares to be sold in 4 states in addition
to Nebraska: California, Colorado, Florida, and Minnesota. The total market
value of shares sold in those additional states has reached $481,354 as of March
31, 2000. Welcome to our new shareholders from outside Nebraska.
Thank you for your investment in our Fund.
Sincerely yours,
Edson L. Bridges II CFA
Chairman
Edson L. Bridges III CFA
President
ELBII:ELBIII:elc:kjs
<PAGE>
<TABLE>
Exhibit 1
BRIDGES INVESTMENT FUND, INC.
PORTFOLIO TRANSACTIONS
DURING THE PERIOD FROM
JANUARY 1, 2000, THROUGH MARCH 31, 2000
<CAPTION>
Bought or Held After
Securities Received Transaction
Common Stocks Unless $1,000 Par $1,000 Par
Described Otherwise Value (M) Value (M)
or Shares or Shares
<S> <C> <C>
AES Corporation 5,000 10,000
AT&T Liberty Media Group Class A 1,500 5,000
Altera Corporation 4,000 10,000
American Express Company 3,000 5,000
Berkshire-Hathaway, Inc. Class B 290 500
Broadcom Corporation 1,500 1,500
(1)<F1> Brocade Communications Systems 2,500 2,500
CSG Systems International, Inc. 2,000 20,000
Capital One Financial 5,000 40,000
(2)<F2> Cintas Corporation 2,000 6,000
(3)<F3> Cisco Systems 18,000 36,000
Citigroup 2,000 2,000
Comcast Corp. Class A Special 4,000 10,000
EGL, Inc. 2,000 35,000
Echostar Communications Corp. 2,500 10,000
Flextronics International, Ltd. 5,000 5,000
I2 Technologies, Inc. 1,500 1,500
(4)<F4> JDS Uniphase Corporation 2,500 2,500
Juniper Networks 1,500 1,500
Level 3 Communications 3,000 15,000
MCI WorldCom, Inc. 500 20,000
Medtronic, Inc. 5,000 5,000
(5)<F5> Morgan Stanley Dean Witter 7,000 10,000
Qualcomm, Inc. 1,000 26,000
(6)<F6> Solectron Corporation 4,000 30,000
(7)<F7> Sprint PCS Corporation 9,500 15,000
3Com Corporation 500 500
Texas Instruments 3,000 3,000
(8)<F8> Tibco Software, Inc. 4,000 6,000
VeriSign, Inc. 1,000 1,000
VERITAS Sortware Company 1,500 1,500
VoiceStream Wireless Corporation 2,000 2,000
West Teleservices 1,800 60,000
Various Issues of Commercial Paper 72,910M 5,425M
Notes Purchased during
1st Quarter, 2000
<PAGE>
Exhibit 1
BRIDGES INVESTMENT FUND, INC.
PORTFOLIO TRANSACTIONS
DURING THE PERIOD FROM
JANUARY 1, 2000, THROUGH MARCH 31, 2000
(Continued)
<CAPTION>
Sold or Held After
Securities Exchanged Transacion
Common Stocks Unless $1,000 Par $1,000 Par
Described Otherwise Value (M) Value (M)
or Shares or Shares
<S> <C> <C>
America Online, Inc. 2,000 10,000
Dell Computer 3,000 --
E*Trade Group 4,000 --
Lamar Advertising Company 2,000 --
MBIA, Inc. 8,000 --
MBNA Corporation 15,000 --
Nike, Inc. Class B 5,000 --
Philip Morris Cos., Inc. 15,000 --
Qualcomm, Inc. 1,000 26,000
3Com Corporation 500 --
Union Pacific Corporation 4,000 --
(9)<F9> Xerox Cororation Notes 100M --
9.75% due 3-15-2000
Various Issues of Commercial 70,615M --
Paper Notes maturing during
1st Qtr., 2000
<F1>(1) Received 1,000 shares in a 2-for-1 stock split on March 15, 2000.
<F2>(2) Received 2,000 shares in a 3-for-2 stock split on March 8, 2000.
<F3>(3) Received 18,000 shares in a 2-for-1 stock split on March 23, 2000.
<F4>(4) Received 1,000 shares in a 2-for-1 stock split on March 13, 2000.
<F5>(5) Received 5,000 shares in a 2-for-1 stock split on January 27, 2000.
<F6>(6) Received 13,000 shares in a 2-for-1 stock split on March 9, 2000.
<F7>(7) Received 5,500 shares in a 2-for-1 stock split on February 7, 2000.
<F8>(8) Received 4,000 shares in a 3-for-1 stock split on February 22, 2000.
<F9>(9) Matured 100M par value on March 15, 2000 at par.
</TABLE>
<PAGE>
<TABLE>
Exhibit 2
BRIDGES INVESTMENT FUND, INC.
SELECTED HISTORICAL FINANCIAL INFORMATION
- - - - - - - - - - - - -Year End Statistics - - - - - - - - - - - - -
<CAPTION>
Valuation Net Shares Net Asset Dividend/ Capital
Date Assets Outstanding Value/Share Share Gains/Share
<S> <C> <C> <C> <C> <C>
07-01-63 $ 109,000 10,900 $10.00 $ - $ -
12-31-63 159,187 15,510 10.13 .07 -
12-31-64 369,149 33,643 10.97 .28 -
12-31-65 621,241 51,607 12.04 .285 .028
12-31-66 651,282 59,365 10.97 .295 -
12-31-67 850,119 64,427 13.20 .295 -
12-31-68 1,103,734 74,502 14.81 .315 -
12-31-69 1,085,186 84,807 12.80 .36 -
12-31-70 1,054,162 90,941 11.59 .37 -
12-31-71 1,236,601 93,285 13.26 .37 -
12-31-72 1,272,570 93,673 13.59 .35 .08
12-31-73 1,025,521 100,282 10.23 .34 .07
12-31-74 757,545 106,909 7.09 .35 -
12-31-75 1,056,439 111,619 9.46 .35 -
12-31-76 1,402,661 124,264 11.29 .38 -
12-31-77 1,505,147 145,252 10.36 .428 .862
12-31-78 1,574,097 153,728 10.24 .481 .049
12-31-79 1,872,059 165,806 11.29 .474 .051
12-31-80 2,416,997 177,025 13.65 .55 .0525
12-31-81 2,315,441 185,009 12.52 .63 .0868
12-31-82 2,593,411 195,469 13.27 .78 .19123
12-31-83 3,345,988 229,238 14.60 .85 .25
12-31-84 3,727,899 278,241 13.40 .80 .50
12-31-85 4,962,325 318,589 15.58 .70 .68
12-31-86 6,701,786 407,265 16.46 .688 .86227
12-31-87 7,876,275 525,238 15.00 .656 1.03960
12-31-88 8,592,807 610,504 14.07 .85 1.10967
12-31-89 10,895,182 682,321 15.97 .67 .53769
12-31-90 11,283,448 744,734 15.15 .67 .40297
12-31-91 14,374,679 831,027 17.30 .66 .29292
12-31-92 17,006,789 971,502 17.51 .635 .15944
12-31-93 17,990,556 1,010,692 17.80 .6225 .17075
12-31-94 18,096,297 1,058,427 17.10 .59 .17874
12-31-95 24,052,746 1,116,620 21.54 .575 .19289
12-31-96 29,249,488 1,190,831 24.56 .55 .25730
12-31-97 36,647,535 1,262,818 29.02 .5075 .30571
12-31-98 48,433,113 1,413,731 34.26 .44 2.11648
12-31-99 69,735,684 1,508,154 46.24 .30 .91088
- - - - - - - - - - - - - - Quarterly Comparison - - - - - - - - - - -
<CAPTION>
Valuation Net Shares Net Asset Dividend/ Capital
Date Assets Outstanding Value/Share Share Gains/Share
<S> <C> <C> <C> <C> <C>
03-31-99 52,835,162 1,442,077 36.64 - -
03-31-00 77,180,256 1,667,111 46.30 - .6910571
</TABLE>
<PAGE>
<PAGE>
Exhibit 3
BRIDGES INVESTMENT FUND, INC.
REPORTS TO STOCKHOLDERS OF MANAGEMENT COMPANIES
In Accordance With
Rule 30d-1(b) of the General Rules and Regulations Promulgated Under
The Investment Company Act of 1940 as Amended
"If any matter was submitted during the period covered by the shareholder
report to a vote of the shareholders, through the solicitation of proxies
or otherwise, furnish the following information:"
(1) Annual Meeting held on February 15, 2000, at 11:00 a.m.
(2) Election of Directors for one year terms (All Directors Stand for
Annual Election):
<TABLE>
<CAPTION>
- - - - - -Votes Cast - - - - - -
Withhold
For All Authority
Names of Directors Nominees To Vote For
Elected at Meeting For Except All Nominees
<S> <C> <C> <C>
Frederick N. Backer 1,274,346 None 3,607
Edson L. Bridges II 1,274,346 None 3,607
Edson L. Bridges III 1,274,346 None 3,607
N. P. Dodge, Jr. 1,274,346 None 3,607
John W. Estabrook 1,274,346 None 3,607
Jon D. Hoffmaster 1,274,346 None 3,607
John J. Koraleski 1,274,346 None 3,607
Roger D. Kupka 1,274,346 None 3,607
Gary L. Petersen 1,274,346 None 3,607
John T. Reed 1,274,346 None 3,607
Roy A. Smith 1,274,346 None 3,607
Janice D. Stoney 1,274,346 None 3,607
L.B. Thomas 1,274,346 None 3,607
John K. Wilson 1,274,346 None 3,607
</TABLE>
(3) A brief description for each matter voted upon at the meeting:
<TABLE>
<CAPTION>
Matters Voted Upon For Against Abstain
<S> <C> <C> <C>
(a) For a proposed investment 1,277,233 None 720
advisory contract which continues
the employment of Bridges
Investment Counsel, Inc. as
investment adviser to the Fund
for the period from April 17,
2000 through April 17, 2001
(b) For the ratification of the 1,275,796 None 2,157
selection of KPMG LLP as
independent auditors of the
Fund for the Fiscal Year ending
December 31, 2000
</TABLE>
<PAGE>
<TABLE>
F-1
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
(Unaudited)
<CAPTION>
Number Market
of Shares Cost Value
Title of Security
<S> <C> <C> <C>
COMMON STOCKS - (87.3%)
Advertising _ 0.2%
Interpublic Group of Companies, Inc. (The) 4,000 $ 106,953 $ 189,000
Aircraft _ Manufacturing - 0.6%
The Boeing Company 12,000 $ 278,135 $ 453,750
Banking and Finance - 2.5%
Chase Manhattan Corporation (The) 2,000 $ 86,650 $ 174,375
First National of Nebraska, Inc. 230 346,835 437,000
State Street Corporation 8,000 66,525 775,000
U.S. Bancorp 5,000 166,370 109,375
Wells Fargo & Co. 10,000 138,173 407,500
$ 804,553 $ 1,903,250
Beverages _ Soft Drinks - 1.1%
PepsiCo, Inc. 24,000 $ 307,470 $ 837,000
Broadcast Service/Program _ 0.4%
AT&T Corporation _ Liberty Media*<FN> 5,000 $ 248,596 $ 296,563
Chemicals - 0.9%
The Dow Chemical Company 6,000 $ 396,947 $ 684,000
Communications _ Radio and Television _ 0.9%
Clear Channel Communications, Inc.*<FN> 10,000 $ 366,954 $ 690,625
Computers _ Hardware and Software - 12.7%
Brocade Communications Systems, Inc.*<FN> 2,500 $ 418,399 $ 448.281
Cisco Systems, Inc.*<FN> 36,000 290,726 2,783,250
HNC Software, Inc.*<FN> 18,000 598,741 1,297,125
Hewlett-Packard Co. 6,000 83,784 797,250
I2 Technologies, Inc.*<FN> 1,500 297,594 183,187
Juniper Networks, Inc.*<FN> 1,500 409,250 395,344
Microsoft Corporation*<FN> 20,000 93,361 2,125,000
Tibco Software, Inc.*<FN> 6,000 153,194 489,000
Transaction Systems Architects, Inc.*<FN> 32,000 1,102,118 924,000
VeriSign, Inc.*<FN> 1,000 212,500 149,500
VERITAS Software Corporation*<FN> 1,500 245,313 187,500
$ 3,904,980 $ 9,779,437
Computers _ Memory Devices _ 2.6%
EMC Corporation/MASS*<FN> 16,000 $ 358,855 $ 2,000,000
Computers _ Micro _ 1.2%
Sun Microsystems, Inc.*<FN> 10,000 $ 281,812 $ 937,031
<FN>*Nonincome-producing security
F-2
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
MARCH 31, 2000
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Data Processing and ManagemenT _ 1.8%
CSG Systems*<FN> 20,000 $ 636,419 $ 976,250
First Data Corporation 10,000 458,100 443,750
$ 1,094,519 $ 1,420,000
Diversified Operations _ 1.2%
Berkshire Hathaway Inc., Class B *<FN> 500 $ 600,020 $ 910,000
Drugs - Medicines _ Cosmetics - 5.7%
Abbott Laboratories 15,000 $ 169,395 $ 527,812
Amgen, Inc.*<FN> 12,000 248,688 736,500
Bristol-Myers Squibb Co. 8,000 141,675 463,500
Elan Corporation PLC ADR*<FN> 20,000 419,005 950,000
Johnson & Johnson 10,000 109,396 702,500
Merck & Co., Inc. 16,000 274,266 994,000
$ 1,362,425 $ 4,374,312
Electrical Equipment and Supplies - 1.6%
General Electric Co. 8,000 $ 147,473 $ 1,245,000
Electric _ Generation _ 1.5%
AES Corporation*<FN> 10,000 $ 635,202 $ 787,500
Broadcom Corporation Class A*<FN> 1,500 351,444 364,313
$ 986,646 $ 1,151,813
Electronic Components _ Conductors _ 1.8%
Altera Corporation*<FN> 10,000 $ 563,375 $ 892,500
Texas Instruments Incorporated 3,000 529,144 480,000
$ 1,092,519 $ 1,372,500
Electronics - 5.4%
Flextronics International Ltd.*<FN> 5,000 $ 316,485 $ 352,188
Intel Corporation 20,000 334,735 2,638,750
Solectron Corporation *<FN> 30,000 439,416 1,203,750
$ 1,090,636 $ 4,194,688
Finance _ Credit Cards _ 1.0%
American Express Company 5,000 $ 543,410 $ 744,688
Finance _ Diversified _ 1.2%
Citigroup, Inc. 2,000 $ 123,476 $ 119,750
Morgan Stanley, Dean Witter, Discover & Co. 10,000 441,550 828,750
$ 565,026 $ 948,500
Finance _ Investment Banks _ 0.4%
Merrill Lynch & Co., Inc. 3,000 $ 168,586 $ 314,250
<FN>*Nonincome-producing security
F-3
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
MARCH 31, 2000
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Finance - Real Estate - 1.7%
Freddie Mac 30,000 $ 470,320 $ 1,325,625
Finance _ Services - 2.8%
Capital One Financial Corporation 40,000 $ 866,856 $ 1,917,500
Paychex, Inc. 5,000 154,125 261,875
$ 1,020,981 $ 2,179,375
Insurance _ Multiline - 0.4%
American International Group, Inc. 3,125 $ 118,455 $ 342,187
Internet Software _ 0.9%
America Online, Inc.*<FN> 10,000 $ 442,708 $ 680,000
Linen Supply and Related Products - 0.3%
Cintas Corporation*<FN> 6,000 $ 166,578 $ 235,125
Medical Instruments - 0.3%
Medtronic, Inc. 5,000 $ 253,001 $ 257,187
Motion Pictures and Theatres - 1.2%
The Walt Disney Company 22,000 $ 236,300 $ 907,500
Petroleum Producing - 3.9%
BP Amoco PLC-Sponsored ADR 13,232 $ 246,135 $ 704,604
Atlantic Richfield Company 4,000 211,835 340,000
Chevron Corporation 10,000 340,535 924,375
Exxon Mobil Corporation 13,280 325,810 1,035,010
$ 1,124,315 $ 3,003,989
Publishing _ Newspapers - 0.7%
Gannett Co., Inc. 8,000 $ 179,310 $ 563,000
Publishing _ Electronic - 0.8%
Reuters Group PLC, ADR Sponsored 5,199 $ 166,303 $ 620,631
Retail Stores _ Apparel and Clothing - 3.2%
Gap, Inc. 50,000 $ 521,360 $ 2,490,625
Retail Stores _ Building Materials and Home
Improvement _ 2.5%
The Home Depot, Inc. 30,000 $ 587,115 $ 1,935,000
<FN>*Nonincome-producing security
F-4
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
MARCH 31, 2000
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
COMMON STOCKS (Continued)
Retail Stores _ Department - 1.5%
Target Corporation 15,000 $ 146,129 $ 1,121,250
Steel - Producers _ 0.4%
Nucor Corporation 5,500 $ 122,061 $ 275,000
Telecommunications - 10.5%
Level 3 Communications *<FN> 15,000 $ 876,675 $ 1,586,250
MCI WorldCom, Inc. *<FN> 20,000 490,156 906,250
Sprint Corporation 10,000 83,964 682,500
Sprint PCS Corporation *<FN> 15,000 424,658 982,500
Vodafone Airtouch PLC Sponsored ADR 40,000 915,541 2,222,500
VoiceStream Wireless Cororation*<FN> 2,000 238,125 257,625
West Teleservices Corporation*<FN> 60,000 821,597 1,545,000
$ 3,850,716 $ 8,132,625
Telecommunications _ Equipment _ 8.8%
JDS Uniphase Corporation*<FN> 2,500 $ 329,542 $ 301,406
Nokia Corporation Sponsored ADR 12,000 492,858 2,610,000
Qualcomm Incorporated *<FN> 26,000 414,787 3,882,125
$ 1,237,187 $ 6,793,531
Telecommunications - Satellite - 1.0%
EchoStar Communications Corporation*<FN> 10,000 $ 630,244 $ 790,000
Television _ Cable _ 0.6%
Comcast Corporation*<FN> 10,000 $ 309,375 $ 433,750
Transportation _ Airfreight _ 1.1%
EGL, Inc. *<FN> 35,000 $ 466,542 $ 818,125
TOTAL COMMON STOCKS (Cost - $26,755,515) $26,755,515 $67,350,932
PREFERRED STOCKS (1.1%)
Banking and Finance _ 0.7%
CFB Capital II 8.20% Cumulative Preferred 5,000 $ 125,000 $ 108,750
CFC Capital Trust 9.375% Preferred, Series B 5,000 125,000 107,188
Harris Preferred Capital Corp., 10,000 250,000 204,375
7.375%, Series A
Silicon Valley Bancshares 5,000 125,000 98,125
8.25% Preferred Series I
$ 625,000 $ 518,438
<FN>*Nonincome-producing security
F-5
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
MARCH 31, 2000
(Unaudited)
<CAPTION>
Number Market
Title of Security of Shares Cost Value
<S> <C> <C> <C>
Oil Comp. _ Exploration and Production _ 0.1%
Canadian Occidental Petroleum Ltd. 5,000 $ 125,000 $ 113,125
9.375% Preferred _ Series 1
Utilities _ Electric _ 0.3%
Tennessee Valley Authority 6.75% 10,000 $ 250,000 $ 216,250
Variable Preferred Series D
Total Preferred Stocks (Cost - $1,000,000) $ 1,000,000 $ 847,813
Total Stocks (Cost - $27,755,515) $27,755,515 $68,198,745
DEBT SECURITIES (12.2%)
Auto-Cars/Light Trucks _ 0.3%
General Motors Corporation 7.700% Debentures
due April 15, 2016 $250,000 $ 252,320 $ 254,304
Energy _ Alternate Sources - 0.3%
CalEnergy Co., Inc., 7.630% Notes
due October 15, 2007 $200,000 $ 200,000 $ 198,974
Hotels and Motels _ 0.3%
Marriot International 7.875% Notes Series C
due September 15, 2009 $250,000 $ 250,068 $ 246,832
Household Appliances and Utensils - 0.1%
Maytag Corp., 9.750% Notes,
due May 15, 2002 $100,000 $ 102,200 $ 103,657
Retail Stores _ Department - 0.3%
Dillard Department Stores, Inc., 7.850%
Debentures, due October 1, 2012 $150,000 $ 151,347 $ 137,798
Sears Roebuck & Co., 9.375% Debentures
due November 1, 2011 100,000 $ 106,399 110,278
$ 257,746 $ 248,076
<FN>*Nonincome-producing security
<PAGE>
F-6
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
(Continued)
MARCH 31, 2000
(Unaudited)
<CAPTION>
Principal Market
Title of Security Amount Cost Value
<S> <C> <C> <C>
DEBT SECURITIES (Continued)
Telecommunications _ 0.3%
Level 3 Communications, Inc., 9.125% Senior $250,000 $ 241,938 $ 216,091
Notes due May 1, 2008
U.S. Government _ 3.6%
U.S. Treasury, 8.750% Notes,
due August 15, 2000 200,000 $ 211,900 $ 201,906
U.S. Treasury, 8.000% Notes,
due May 15, 2001 200,000 199,052 203,406
U.S. Treasury, 7.500% Notes,
due May 15, 2002 200,000 214,098 204,000
U.S. Treasury, 10.750% Bonds
due February 15, 2003 200,000 219,525 221,906
U.S. Treasury, 7.250% Notes,
due May 15, 2004 300,000 303,245 309,375
U.S. Treasury, 7.500% Notes,
due February 15, 2005 300,000 305,871 314,016
U.S. Treasury, 9.375% Bonds,
due February 15, 2006 200,000 256,223 229,000
U.S. Treasury, 7.625% Bonds,
due February 15, 2007 300,000 307,910 305,391
U.S. Treasury, 8.750% Bonds,
due November 15, 2008 200,000 237,472 213,625
U.S. Treasury, 9.125% Bonds,
due May 15, 2009 200,000 234,910 218,000
U.S. Treasury, 7.500% Bonds,
due November 15, 2016 300,000 308,539 340,125
$ 2,798,744 $ 2,760,750
F-7
BRIDGES INVESTMENT FUND, INC.
SCHEDULE OF PORTFOLIO INVESTMENTS
MARCH 31, 2000
(Unaudited)
<CAPTION>
Principal Market
Title of Security Amount Cost Value
<S> <C> <C> <C>
DEBT SECURITIES (Continued)
Commercial Paper _ Short Term _ 7.0%
American Express Credit Corporation
Commercial Paper Note 5.937%
due April 4, 2000 $2,350,000 $ 2,350,000 $ 2,350,000
Ford Motor Credit Corporation
Commercial Paper Note 5.917%
due April 7, 2000 1,975,000 1,975,000 1,975,000
Prudential Funding Corporation
Commercial Paper Note 5.810%
due April 24,2000 1,100,000 1,100,000 1,100,000
$ 5,425,000 $ 5,425,000
TOTAL DEBT SECURITIES (Cost - $9,528,016) $ 9,528,016 $ 9,453,684
TOTAL INVESTMENTS IN SECURITIES - (100.6%)
(Cost - $37,283,531) $37,283,531 $77,652,429
CASH AND RECEIVABLES
LESS TOTAL LIABILITIES _ (-0.6%) (472,173)
NET ASSETS, March 31, 2000 _ (100.0%) $77,180,256
<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
MARCH 31, 2000
(Unaudited)
<CAPTION>
ASSETS Amount
<S> <C>
Investments, at market value
Common and preferred stocks
(cost $27,755,515) $68,198,745
Debt securities (cost $9,528,016) 9,453,684
Total investments $77,652,429
Cash 152,765
Receivables
Dividends and interest 143,051
Subscriptions to capital stock 433,150
TOTAL ASSETS $78,381,395
LIABILITIES
Capital Gains distributions payable $ 1,058,779
Redemption of capital stock 12,900
Investment advisor, management and
service fees payable 89,183
Accrued operating expenses 40,277
TOTAL LIABILITIES $ 1,201,139
NET ASSETS
Capital stock, $1 par value -
Authorized 3,000,000 shares,
1,667,111 shares outstanding $ 1,667,111
Paid-in surplus - 34,745,742
Net capital paid in on shares $36,412,853
Net unrealized appreciation on investments 40,368,898
Accumulated undistributed net realized gains 242,098
Accumulated undistributed net investment income 156,407
TOTAL NET ASSETS $77,180,256
NET ASSET VALUE PER SHARE $46.30
OFFERING PRICE PER SHARE $46.30
REDEMPTION PRICE PER SHARE $46.30
<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 THREE MONTHS ENDED MARCH 31, 2000
(Unaudited)
<CAPTION>
INVESTMENT INCOME Amount Amount
<S> <C> <C>
Interest $173,836
Dividends (Net of foreign withholding
taxes of $463) 108,703
Total Investment Income $ 282,539
EXPENSES
Management fees $ 89,183
Custodian fees 11,418
Insurance and Other Administrative Fees 6,349
Bookkeeping services 6,418
Printing and supplies 7,377
Professional services 2,625
Dividend disbursing and transfer
agent fees 8,114
Computer programming 1,250
Taxes and licenses 266
Total Expenses $ 133,000
NET INVESTMENT INCOME $ 149,539
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS
Net realized gain on transactions in
investment securities $ 242,098
Net increase in unrealized
appreciation of investments 1,017,922
NET REALIZED AND UNREALIZED
GAIN ON INVESTMENTS $ 1,260,020
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,409,559
<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 THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
<CAPTION>
2000 1999
<S> <C> <C>
INCREASE IN NET ASSETS
Operations -
Net investment income $ 149,539 $ 112,304
Net realized gain on transactions in
investment securities 242,098 187,172
Net increase in unrealized
appreciation of investments 1,017,922 3,112,351
Net increase in net assets
resulting from operations $ 1,409,559 $ 3,411,827
Net equalization credits 5,474 730
Distributions to shareholders from -
Net investment income - -
Net realized gain from investment
transactions (1,058,779) -
Return of capital - -
Net capital share transactions 7,088,318 989,492
Total increase in Net Assets $ 7,444,572 $ 4,402,049
NET ASSETS:
Beginning of year $ 69,735,684 $48,433,113
End of three months $ 77,180,256 $52,835,162
<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
MARCH 31, 2000
(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): 2000 1999 Net Change
<S> <C> <C> <C>
Aggregate gross unrealized
appreciation
on securities $41,234,927 $26,395,715
Aggregate gross unrealized
depreciation
on securities (866,029) (513,352)
Net $40,368,898 $25,882,363 $14,486,535
</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 three months ended March 31, 2000.
(3) DIVIDEND DISBURSING AND TRANSFER AGENT
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 three months
ended March 31, was:
<TABLE>
<CAPTION> 2000 1999
<S> <C> <C>
United States government obligations $ -- $ --
Other Securities 7,805,123 3,723,354
Total Cost $7,805,123 $3,723,354
</TABLE>
Net proceeds from sales of long-term investments during the three
months ended March 31, were:
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
United States government obligations $ -- $ --
Other Securities 1,973,006 977,905
Total Net Proceeds $1,973,006 $ 977,905
Total Cost Basis of
Securities Sold $1,730,908 $ 790,733
</TABLE>
(5) NET ASSET VALUE
The net asset value per share represents the effective price for all
subscriptions and redemptions.
F-14
(6) CAPITAL STOCK
Shares of capital stock issued and redeemed are as follows:
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Shares sold 165,473 35,551
Shares issued to shareholders in
reinvestment of net investment
income and realized gain from
security transactions 2,445 3,512
167,918 39,063
Shares redeemed 8,961 10,718
Net increase 158,957 28,345
</TABLE>
Value of capital stock issued and redeemed is as follows:
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Shares sold $7,387,998 $1,247,512
Shares issued to shareholders in
reinvestment of net investment
income and realized gain from
security transactions 107,252 122,203
$7,495,250 $1,369,715
Shares redeemed 406,932 380,223
Net increase $7,088,318 $ 989,492
</TABLE>
(7) DISTRIBUTION TO SHAREHOLDERS
On January 14, 2000, a cash distribution was declared reflecting net
capital gains taken from November 1, 1999 through December 31, 1999. This
distribution was calculated at $.6910571 per share aggregating $1,058,779.
This capital gain distribution will be paid on April 24, 2000 to
shareholders of record January 14, 2000.
On April 13, 2000, a cash distribution was declared from net investment
income accrued through March 31, 2000. This distribution was calculated at
$.085 per share aggregating $143,785. The dividend will be paid on April
24, 2000 to shareholders of record on April 13, 2000.
<PAGE>
