<PAGE>
June 30, 1999
Semi-annual Report
Burnham Fund
Burnham Dow 30'sm' Focused Fund
Burnham Financial Services Fund
Burnham Money Market Fund
BURNHAM INVESTORS TRUST
[LOGO]
BURNHAM
INVESTORS TRUST
<PAGE>
BURNHAM NEWS AND VIEWS
We welcome our fellow shareholders to this mid-year report, the first since the
creation of Burnham Investors Trust in May.
The past six months have seen tremendous change and growth at Burnham. One
change is right here: our shareholder reports. The new format is designed to
build on the simplified approach of our prospectus while accommodating our
growing fund family.
The three new funds that were launched this spring are certainly our biggest
news. Although there is not yet much performance to report, we have already seen
an enthusiastic response from advisors and investors alike.
Our expanded web site was launched in late July. Visiting www.burnhamfunds.com
is an excellent way to keep up to date with our funds and services. You can also
email us from the site--something we hope you'll do whenever you have
questions, comments, or suggestions.
/s/ I. W. Burnham, II
I. W. Burnham, II
Chairman
/s/ Jon M. Burnham
Jon M. Burnham
President & Chief Executive Officer
The Past Six
Months in
Review
Uncertainty about interest rates and economic statistics kept investors guessing
during the first half of 1999, and especially in the second quarter. With the
Federal Reserve's outlook on rates unclear and a set of economic statistics that
could be interpreted a number of ways, analysts were split. Some predicted
higher interest rates (a prophecy that came true at least in part, but not until
June), while others saw evidence for stable or even lower rates.
Not surprisingly, results for investors were mixed during the period. In a stock
market this highly valued, anything less than clear-cut good news will cause
many investors to fear the worst--although at least for the first two quarters,
it wasn't enough to prevent net growth. Below, we take a look at some of the
major trends, events, and patterns that characterized the investing environment
in the first half of 1999.
The Federal Reserve Board raised the Fed funds rates to 5% in June, reversing
the decline it set last year. Although the Fed was poised to raise rates
further in August, its fundamental stance is perceived as neutral and the
stock and bond markets appeared to have discounted anything short of a
dramatic rate rise by the end of the second quarter.
U.S. Treasury bonds reached 6.1%, a yield last seen in November of 1997 -- a
year that saw both strong economic growth and rising interest rates.
[GRAPHIC]
Unemployment remained low, while worker hours and earnings, oil prices, and
utilization of capacity all rose--a signal to some that inflation and higher
interest rates were in the offing.
U.S. Unemployment
<TABLE>
<S> <C>
4.48% 4.35%
1998 First half 1999
</TABLE>
[GRAPHIC]
Rises in employee productivity, retail sales, and home sales, coupled with
declines in the rate of GDP growth, producer prices, and non-petroleum
commodity prices were cited by other analysts as reasons to expect steady to
lower interest rates rather than higher rates.
Republicans pushed a tax cut through Congress that President Clinton has said
he'll veto.
[GRAPHIC]
The Financial Accounting Standards Board (FASB) made a preliminary ruling that
may spur mergers by making certain business models less favorable after a
future deadline.
Business combinations continued to proliferate, particularly in the wireless,
regional telephone, internet, financial, and technology sectors.
[GRAPHIC]
Volatility returned to the stock market. The Dow passed 11,000 but didn't stay
there. During the first half of 1999, the Dow fell more than 4% on several
occasions.
Sources: Unemployment, Bureau of Labor Statistics; S&P 500, Standard & Poor's;
U.S. Treasury yields, Department of Treasury
The S&P 500 Index'r', an unmanaged index that includes 500 large-cap stocks.
<PAGE>
S&P 500: Best & Worst Sectors
<TABLE>
<S> <C> <C>
24.6% 21.0% 17.9%
Technology Basic Materials Capital Goods
- -0.8% -1.0% -2.8%
Utilities Health Care Consumer Staples
</TABLE>
[CHART]
Corporate profits accelerated, surpassing last year's first-half profits,
which were weak because of the Asian crisis and the lengthy strike at General
Motors. Q2 profits grew more than 10%, while two-thirds of the companies in
the S&P 500 reported better-than-expected earnings, causing analysts to raise
what had been fairly low expectations.
The Dow Jones Industrial Average outperformed the broader S&P 500 Index as
investors leaned toward cyclical industries and away from large-cap growth
stocks. These investors expected commodity prices to firm and exports to rise
as worldwide demand recovered from the Asian crisis.
[GRAPHIC]
LOOKING AHEAD
We believe that interest rates will be stable for the remaining half of the year
- -- and that the Fed will remain neutral after the August FOMC meeting. The Fed's
stated intent is to stay ahead of the economic curve, temper the economy, and
keep the expansion alive without creating shortages (currently labor) and market
speculation, all of which contribute to rising inflation.
Also of major concern to the Fed is Y2K, and maintaining liquidity and stability
in the second half of the year. Increases in interest rates could cause
investors to sell U.S. securities and move to undervalued foreign markets,
causing instability of the dollar, and a weaker U.S. stock market. Currently,
economic strength is evident, but there are emerging signs that the rate of GDP
growth is slowing, for example in housing-related sectors.
Finally, the U.S. government has reduced the supply of bonds at auction because
of the budget surplus. This has the benign impact of increasing the prices of
government bonds and reducing interest rates. In fact, the Clinton
Administration stated in July that it would begin repurchasing bonds, further
reducing supply.
We expect that corporate profits will show earnings growth in excess of 10% for
1999. However, cyclical companies--those affected by higher interest rates,
such as auto stocks, consumer durables, and the housing market--may show a
slowdown in earnings growth.
We also believe that investment opportunities will be evident as consolidation
continues in various industries. We favor industries with strong secular
markets, such as pharmaceuticals, banking, and technology, and specific
companies with earnings growth in excess of 20% annualized for five years. Value
stocks also may become more attractive as investors seek conservative places for
cash if they are worried about the securities markets.
The financial services sector is experiencing a secular growth wave. The economy
is robust, regional banks are consolidating, credit card usage continues,
corporate credit is strong, and the U.S. government is encouraging an expanded
use of retirement plans. Rising interest rates may cause near-term jitters, but
many of these companies in fact earn more revenue as rates increase.
The balance of 1999 could see the market fluctuate in a broader range than
normal. We would view any meaningful move to the downside as a potential buying
opportunity.
THE FUNDS
Burnham Fund
Continuing strength in the stock market paced the fund's performance.
[GRAPHIC]
11.8% Class A
<TABLE>
<S> <C>
Performance and discussion 4
Portfolio and financials 14
- -------------------------
Burnham Dow 30'sm'
Focused Fund
The fund had a modest gain and beat the DJIA index during its first two months.
0.56%
[GRAPHIC]
Performance and discussion 6
Portfolio and financials 19
- -------------------------
Burnham Financial
Services Fund
Three weeks after inception, the fund was up more than 5%.
5.10% Class A
[GRAPHIC]
Performance and discussion 8
Portfolio and financials 23
- -------------------------
Burnham Money
Market Fund
The fund's total return for its first two months equates to an annualized yield
of 4.03%
Performance and discussion 10
Portfolio and financials 27
</TABLE>
REVIEW 3
<PAGE>
Investment Focus
Style
Value Blend Growth
[CHART]
Market Cap
Small Medium Large
Ticker Symbols
<TABLE>
<S> <C>
Class A BURHX
Class B --
- -------------------------
Portfolio Manager
Jon M. Burnham
Since 1995
- -------------------------
Minimum Investment
Regular accounts $1,000
IRAs None
Asset Values
Net assets, in millions $171.7
Net asset value per share
Class A $36.31
Class B $37.21
Maximum offering price
Class A $38.22
- -------------------------
Expense Ratios
Annualized, after expense reimbursement
Class A 1.3%
Class B 2.1%
- -------------------------
Inception
Class A June 15, 1975
Class B October 18, 1993
</TABLE>
- -------------------------
All data as of June 30, 1999. Performance information assumes all distributions
were reinvested. Class A performance information does not include the maximum 5%
sales charge. Class B shares have different costs and the growth chart does not
represent their performance. Past performance isn't a prediction of future
performance. Read the prospectus before investing.
BURNHAM FUND
"We remain committed to companies with secular growth and with expected 20%
earnings growth for 3 to 5 years."
/s/ Jon Burnham
Jon Burnham
Portfolio Manager
I'm pleased to report that the fund benefited from being overweighted in several
sectors that outperformed the S&P 500: computer-related, financial services,
retail, petroleum, and telecommunications.
The strength of these sectors helped us overcome numerous odds: rising interest
rates, market volatility, and investor interest in value stocks and cyclicals
over traditional growth stocks.
We continued to look for financially healthy companies with visionary
managements that own a sizable position in their stock. Companies adapting to
new technologies also earned our attention. We also looked for "special
situations" -- for example, companies that were beginning a reorganization or
might be acquired. We tended to pare back on stocks that were overvalued
relative to their growth rate or if they disappointed in a significant way.
[CHART]
Growth of $10,000
since the fund's inception(1) June '75
S&P 500
Index
$425,696
Burnham
Fund
$245,606
$10,000
$500,000
400,000
300,000
200,000
100,000
'75 '80 '85 '90 '95 '99
Page 4 plot points
<TABLE>
<CAPTION>
Burnham S&P 500
Fund
<S> <C> <C>
"75" 10000 10000
10385 10408
9853 9703
9514 9499
9175 9170
9673 9735
9911 9975
9792 9861
"76" 10928 11063
10998 10971
11171 11339
11206 11248
11137 11119
11670 11622
11517 11566
11434 11545
11693 11844
11386 11619
11527 11567
12130 12226
"77" 11700 11650
11437 11441
11485 11314
11615 11357
11340 11130
11854 11691
11766 11511
11546 11364
11485 11361
11229 10888
11716 11285
11656 11348
"78" 11158 10666
11070 10495
11407 10780
12229 11727
12491 11880
12379 11690
13556 12350
13899 12767
13682 12707
12396 13838
12808 14197
13167 14431
"79" 13684 15047
13346 14621
13932 15461
14065 15527
13947 15271
14487 15892
14945 16074
15796 17059
16010 17098
14985 15977
15968 16812
16265 17095
"80" 17758 18158
17622 18141
15526 16378
16286 17135
17277 18017
17829 18587
18641 19880
19143 20081
19798 20671
20594 21089
22509 23335
21777 22630
21074 21684
"81" 21202 22062
22273 22944
22177 22501
22741 22560
22193 22424
21658 22465
20551 21166
19647 20123
20953 21209
21766 22085
21220 21520
"82" 20904 21238
20375 20051
20375 19937
21047 20848
20740 20137
20464 19835
20188 19482
22122 21847
22325 22120
24649 24666
25502 25662
25928 26158
"83" 26532 27131
27129 27752
27563 28776
29090 31044
28910 30773
29595 31971
28701 31027
28750 31493
29262 31927
28899 31557
29500 32223
29067 32055
"84" 28898 31876
28077 30754
28145 31286
28536 31583
27394 29833
28241 30481
28343 30103
30463 33429
30463 33436
30776 33566
30724 33190
31166 34063
"85" 33027 36717
33209 37168
33481 37194
33625 37161
35844 39309
36579 39926
36173 39866
36285 39523
35897 38286
37473 40055
39481 42803
41191 44874
"86" 41426 45126
44533 48501
46888 51207
46720 50629
48822 53322
50145 54223
48716 51192
50708 54991
47103 50443
49665 53354
50564 54650
50170 53256
"87" 54354 60430
56170 62817
56860 64632
55990 64057
56567 64615
58903 67878
60423 71319
61493 73979
60619 72359
53515 56773
51604 52095
53524 56059
"88" 55413 58419
57209 61142
56242 59252
56264 59910
56377 60431
57606 63205
58090 62965
57468 60824
58486 63415
59825 65178
59568 64246
59883 65370
"89" 62626 70149
62357 68402
63167 69996
65170 73629
66812 76611
66632 76174
69870 83053
70974 84681
70484 84333
69970 82377
71089 84057
73520 86075
"90" 70175 80299
70280 81335
71004 83490
69144 81403
72539 89340
72256 88732
72863 88448
69839 80453
69518 76535
69907 76205
71459 81128
72217 83392
"91" 72614 87028
75301 93250
76332 95507
76439 95736
78044 99862
75695 95289
77731 99729
79325 102093
79515 100388
81280 101733
79354 97633
85195 108802
"92" 85595 106779
86673 108167
84030 106057
85753 109176
85384 109710
84086 108076
87416 112464
87127 110158
88077 111458
87619 111837
89836 115651
91758 117073
"93" 91602 118057
93453 119686
94864 122211
93801 119254
95724 122438
96930 122793
97560 122302
100595 126937
101228 125959
100995 128567
98794 127345
100355 128886
"94" 101469 133268
99703 129657
95416 124004
96112 125591
96689 127651
95432 124523
97789 128608
100244 133881
99011 130600
100446 133539
98016 128678
98564 130583
"95" 100418 133965
102777 139189
103959 143295
106298 147508
109211 153409
111078 156968
112956 162179
114164 162584
117053 169445
116741 168835
119438 176247
122663 179649
"96" 126355 185757
127075 187485
128180 189284
129283 192067
131894 197022
131116 197771
124849 189029
127870 193018
134468 203885
138180 209512
146166 225351
144252 220889
"97" 152099 234695
149787 236525
145638 226804
152002 240344
159374 254981
166387 266405
178017 287610
171146 271504
177598 286383
173993 276817
176690 289634
179923 294616
"98" 179239 297886
191141 319364
200621 335715
205537 339106
201714 333273
209439 346804
206046 343128
170133 293512
181446 312326
191571 337718
202395 358184
219679 378815
"99" 231037 394649
220086 382376
233687 397671
241796 413061
231592 403312
"Jun99" 245603 425696
</TABLE>
An investment in Burnham Fund at its inception in 1975 would have grown by
nearly 2,356% by the end of the report period.
The fund took new positions in several firms: Novell, which provides internet
directory enabling software; Symbol Technologies, the leading company in
bar-code scanning; Becton Dickinson, which manufactures and distributes
medical supplies and equipment; and Century Telephone, which is strategically
positioned to grow or be acquired as the communications field reorganizes.
We replaced holdings in Sears with Dayton Hudson, which has strong same-store
and total sales growth as it expands its Target brand eastward.
We reduced our long-standing position in Daimler Chrysler. Since the U.S.
division was bought by the foreign concern, it is less predictable and subject
to different accounting standards.
We sold Consumers Power because it turned in disappointing results during the
period.
- --------------------------------------------------------------------------------
(1) The S&P 500 (the "Standard & Poor's 500 Composite Stock Price Index") is an
unmanaged index of 500 U.S. stocks. In making performance comparisons, it should
be understood that the performance of the S&P 500 index is not adjusted to
reflect the brokerage expenses that would be incurred in purchasing and selling
the securities comprising the index, and does not include management fees and
other expenses that are generally incurred in investing through mutual funds.
4 BURNHAM FUND
<PAGE>
PORTFOLIO INVESTMENTS
Asset Allocation
Corporate bonds and convertible bonds 1%
Cash & cash equivalents 7%
Convertible
preferred
stocks 2%
Common stocks 90%
The fund seeks capital appreciation, mainly long-term. Income is generally of
lesser importance.
<TABLE>
<CAPTION>
% total
equity
Top Industries portfolio
<S> <C>
Computer Products & Software 23.9%
Banking 12.2%
Energy -- Oil & Gas 8.4%
Telecommunication Network & Services 7.7%
Pharmaceuticals 7.5%
Automotive 4.8%
Financial Services 4.1%
Real Estate Investment Trusts 3.9%
Retail Stores 3.8%
Telecommunications Equipment 3.5%
<CAPTION>
% net
Top Portfolio Holdings assets
<S> <C>
Citigroup 5.0%
Siebel Systems, Inc. 4.6%
IBM 4.5%
Microsoft Corp. 4.5%
Cisco Systems Inc. 3.8%
The Bank of New York Co., Inc. 3.4%
Ford Motor Co. 3.3%
Lucent Technologies 3.1%
American Express Co. 3.0%
Intel Corp. 2.8%
</TABLE>
TOTAL RETURN
Growth of $10,000 over ten years(1)
[CHART]
<TABLE>
<CAPTION>
Burnham Burnham
Fund S&P Fund
w/Load 500 w/o Load
<S> <C> <C> <C>
"Jun-89" 9500 10000 10000
"Jul-89" 9962 10903 10486
"Aug-89" 10119 11117 10652
"Sep-89" 10049 11071 10578
"Oct-89" 9976 10814 10501
"Nov-89" 10136 11035 10669
"Dec-89" 10482 11300 11034
"Jan-90" 10005 10542 10532
"Feb-90" 10020 10677 10548
"Mar-90" 10123 10960 10656
"Apr-90" 9858 10686 10377
"May-90" 10342 11728 10887
"Jun-90" 10302 11649 10844
"Jul-90" 10388 11611 10935
"Aug-90" 9957 10562 10481
"Sep-90" 9912 10047 10433
"Oct-90" 9967 10004 10492
"Nov-90" 10188 10650 10725
"Dec-90" 10296 10948 10838
"Jan-91" 10353 11425 10898
"Feb-91" 10736 12242 11301
"Mar-91" 10883 12538 11456
"Apr-91" 10898 12568 11472
"May-91" 11127 13110 11713
"Jun-91" 10792 12509 11360
"Jul-91" 11083 13092 11666
"Aug-91" 11310 13403 11905
"Sep-91" 11337 13179 11934
"Oct-91" 11589 13355 12198
"Nov-91" 11314 12817 11909
"Dec-91" 12147 14283 12786
"Jan-92" 12204 14018 12846
"Feb-92" 12357 14200 13008
"Mar-92" 11981 13923 12611
"Apr-92" 12226 14332 12870
"May-92" 12174 14403 12814
"Jun-92" 11989 14188 12620
"Jul-92" 12463 14764 13119
"Aug-92" 12422 14461 13076
"Sep-92" 12558 14632 13219
"Oct-92" 12492 14682 13150
"Nov-92" 12808 15182 13482
"Dec-92" 13082 15369 13771
"Jan-93" 13060 15498 13748
"Feb-93" 13324 15712 14025
"Mar-93" 13525 16044 14237
"Apr-93" 13374 15655 14078
"May-93" 13648 16073 14366
"Jun-93" 13820 16120 14547
"Jul-93" 13910 16056 14642
"Aug-93" 14342 16664 15097
"Sep-93" 14433 16536 15192
"Oct-93" 14399 16878 15157
"Nov-93" 14086 16718 14827
"Dec-93" 14308 16920 15061
"Jan-94" 14467 17495 15228
"Feb-94" 14215 17021 14963
"Mar-94" 13604 16279 14320
"Apr-94" 13703 16487 14424
"May-94" 13785 16758 14511
"Jun-94" 13606 16347 14322
"Jul-94" 13942 16883 14676
"Aug-94" 14292 17576 15044
"Sep-94" 14116 17145 14859
"Oct-94" 14321 17531 15075
"Nov-94" 13975 16893 14710
"Dec-94" 14053 17143 14792
"Jan-95" 14317 17587 15071
"Feb-95" 14653 18273 15425
"Mar-95" 14822 18812 15602
"Apr-95" 15155 19365 15953
"May-95" 15571 20139 16390
"Jun-95" 15837 20606 16671
"Jul-95" 16105 21291 16952
"Aug-95" 16277 21344 17134
"Sep-95" 16689 22244 17567
"Oct-95" 16644 22164 17520
"Nov-95" 17029 23137 17925
"Dec-95" 17489 23584 18409
"Jan-96" 18015 24386 18963
"Feb-96" 18118 24613 19071
"Mar-96" 18275 24849 19237
"Apr-96" 18433 25214 19403
"May-96" 18805 25865 19795
"Jun-96" 18694 25963 19678
"Jul-96" 17800 24815 18737
"Aug-96" 18231 25339 19191
"Sep-96" 19172 26766 20181
"Oct-96" 19701 27504 20738
"Nov-96" 20840 29584 21936
"Dec-96" 20567 28998 21649
"Jan-97" 21685 30810 22827
"Feb-97" 21356 31051 22480
"Mar-97" 20764 29774 21857
"Apr-97" 21672 31552 22812
"May-97" 22723 33473 23919
"Jun-97" 23723 34973 24971
"Jul-97" 25381 37757 26717
"Aug-97" 24401 35643 25685
"Sep-97" 25321 37596 26654
"Oct-97" 24807 36340 26113
"Nov-97" 25192 38023 26517
"Dec-97" 25653 38677 27003
"Jan-98" 25555 39106 26900
"Feb-98" 27252 41925 28686
"Mar-98" 28604 44072 30109
"Apr-98" 29304 44517 30847
"May-98" 28759 43751 30273
"Jun-98" 29861 45528 31432
"Jul-98" 29377 45045 30923
"Aug-98" 24257 38532 25533
"Sep-98" 25870 41002 27231
"Oct-98" 27313 44335 28751
"Nov-98" 28856 47022 30375
"Dec-98" 31321 49730 32969
"Jan-99" 32940 51809 34674
"Feb-99" 31379 50198 33030
"Mar-99" 33318 52205 35071
"Apr-99" 34474 54226 36288
"May-99" 33019 52946 34757
"Jun-99" 35017 55885 36860
</TABLE>
Burnham Fund
with sales charge
$35,017
without sales charge
$36,860
S&P 500 Index $55,885
<TABLE>
<CAPTION>
with max. with no
Average sales charge sales charge
Annual Return or CDSC or CDSC
<S> <C> <C>
Class A
Year to date -- --
One year 11.4% 17.3%
Five years 19.6% 20.8%
Ten years 13.4% 13.9%
Since inception 14.0% 14.2%
Class B
Year to date -- --
One year 12.4% 16.4%
Five years 19.8% 19.9%
Since inception 15.9% 16.0%
with max. with no
Cumulative sales charge sales charge
Return or CDSC or CDSC
Class A
Year to date 6.2% 11.8%
One year 11.4% 17.3%
Five years 144.5% 157.6%
Ten years 250.2% 268.6%
Since inception 2,233.2% 2,356.0%
Class B
Year to date 6.3% 11.3%
One year 12.4% 16.4%
Five years 147.1% 148.2%
Since inception 131.1% 132.1%
</TABLE>
Performance Over the
Past 6 Months
[GRAPHIC]
<TABLE>
<S> <C> <C>
11.79% 12.38% 10.53%
Class A Market Peer Group
</TABLE>
The fund performed competitively with the S&P and outperformed its peer group
during the period.
The market is represented by the S&P 500 Index'r', an unmanaged index that
includes 500 large-cap stocks.
The peer group is represented by the Morningstar Large Cap Blend style.
- -------------------------
Performance Month by Month
[CHART]
<TABLE>
<S> <C>
BF Close
4-Jan 2.08
5-Jan 1.45
6-Jan 1.04
7-Jan 0.14
8-Jan -1.28
11-Jan -0.48
12-Jan -1.43
13-Jan 1.16
14-Jan 0.31
15-Jan 0.83
19-Jan 2.76
20-Jan 1.04
21-Jan -1.41
22-Jan -0.55
25-Jan -1.21
26-Jan 0.58
27-Jan -1.17
28-Jan 0.84
29-Jan 2.33
1-Feb 0.18
2-Feb 0.06
3-Feb -1.23
4-Feb 1.78
5-Feb -1.67
8-Feb 1.72
9-Feb -1.78
10-Feb -2.34
11-Feb -0.85
12-Feb -0.65
16-Feb 0.76
17-Feb -0.59
18-Feb 0.37
19-Feb -2.37
22-Feb 0.03
23-Feb 0.53
24-Feb 1.41
25-Feb 0.14
26-Feb 1.37
1-Mar -1.57
2-Mar 0.76
3-Mar -1.97
4-Mar 0.78
5-Mar -0.22
8-Mar -0.61
9-Mar -1.18
10-Mar -0.22
11-Mar 0.69
12-Mar 0.03
15-Mar 2.46
16-Mar 2.1
17-Mar 1.7
18-Mar -2.79
19-Mar -0.51
22-Mar -0.62
23-Mar -2.1
24-Mar -0.41
25-Mar 0.17
26-Mar 0.3
29-Mar 1
30-Mar 0.67
31-Mar 0.25
1-Apr 2.42
5-Apr 0.46
6-Apr -0.97
7-Apr -0.4
8-Apr 2.94
9-Apr -0.5
12-Apr 1.85
13-Apr 0.75
14-Apr -2.71
15-Apr -0.23
16-Apr -1.6
19-Apr 1.45
20-Apr -0.55
21-Apr 0.03
22-Apr 0.64
23-Apr -0.61
26-Apr 1.14
27-Apr 0.83
28-Apr -0.35
29-Apr 1.58
30-Apr 2.07
3-May 1.74
4-May 0.12
5-May -1.23
6-May 0.22
7-May -0.58
10-May -0.61
11-May -1.02
12-May 0.24
13-May 2.98
14-May 0.25
17-May 0.94
18-May -1.42
19-May 0.22
20-May -2.51
21-May 2.42
24-May 0.59
25-May -2.76
26-May 0.58
27-May -0.64
28-May -2.57
1-Jun 0.83
2-Jun -1.12
3-Jun -0.47
4-Jun 0.86
7-Jun 2.33
8-Jun -0.66
9-Jun 2.33
10-Jun 0
11-Jun -0.94
14-Jun -1.82
15-Jun 0.69
16-Jun 0.82
17-Jun 2.74
18-Jun -1.41
21-Jun -0.97
22-Jun -2.08
23-Jun -0.91
24-Jun 0.5
25-Jun 0.6
28-Jun 2.35
29-Jun 2.34
30-Jun -1.4
</TABLE>
Burnham Fund with dividends
reinvested
- -------------------------
Modern Portfolio Theory Statistics
three year range
<TABLE>
<S> <C>
Beta 1.00
R2 92
Alpha -5.12
Standard Deviation 21.15
Sharpe Ratio 0.92
</TABLE>
- -------------------------
For explanation of these Modern Portfolio Theory Statistics terms turn to the
inside back cover.
BURNHAM FUND 5
<PAGE>
Investment Focus
Style
- ------------------
Value Blend Growth
Market Cap
- -------------------
Small Medium Large
[CHART]
<TABLE>
<S> <C>
Ticker Symbol N/A
--------------------
Portfolio Manager
David Leibowitz
Since inception
--------------------
Minimum Investment
Regular accounts $1,000
IRAs None
--------------------
Asset Values
Net assets, in millions $0.60
Net asset value per share $10.06
--------------------
Expense Ratio 1.2%
Annualized, after expense reimbursement
--------------------
Inception May 3, 1999
</TABLE>
--------------------
All data as of June 30, 1999.
Performance information assumes all
distributions were reinvested. Past
performance isn't a prediction of future
performance. Read the prospectus before
investing.
Burnham Dow 30'sm'
Focused Fund
--------------------
"Our focus is largely value- oriented. Because we are firm believers in total
return -- growth plus yield -- we also pay close attention to dividends."
/s/ David Leibowitz
David Leibowitz
Portfolio Manager
During its first two months, the fund outperformed the Dow Jones Industrial
Average'sm', showing a modest increase while its benchmark slightly declined.
The fund also succeeded in being nearly fully invested as of June 30.
Not being market timers, we avoided rushing into buying individual stocks, wary
of the prospect of interest rate increases and the possible repercussions to
stock valuations. While the market may have discounted most of the effect of
recent interest rate hikes, further increases might cause significant selling
pressure. If this comes to pass, it could create a favorable buying opportunity,
which we would consider taking advantage of.
We also are on the lookout for possible changes in the composition of the Dow,
which have historically created investment opportunities for Dow-oriented
investors.
As of the end of the report period, the fund was 96.74% invested.
Hewlett-Packard is splitting itself into two companies, and Union Carbide
has agreed to be acquired by Dow Chemical. While any changes in the
components of the Dow are ultimately up to the editors of The Wall Street
Journal, it is possible that substitutions may be made.
It is not uncommon for the stock of a company that misses Wall Street's
"whisper estimate" -- the figure many analysts believe to be most accurate
-- to be punished by a sharp decline in price. This may occur even if
earnings miss the estimate by pennies a share. Although we can't predict
which companies in the Dow may suffer this fate, we are inclined to pay
close attention to any stock that disappoints.
We expect continued market volatility. While we expect to add to the
portfolio as circumstances warrant, we also note the growing number of
analysts who believe that the Dow may not significantly exceed its July
highs during the second half of the year.
6 DOW 30'sm' FOCUSED FUND
<PAGE>
PORTFOLIO INVESTMENTS
- ----------------------------------
Asset Allocation
[PERFORMANCE GRAPH]
<TABLE>
<S> <C>
Common stocks 97%
Cash & cash
equivalents 3%
</TABLE>
The fund seeks
capital appreciation.
DJIA Components and Weightings
<TABLE>
<S> <C>
Morgan (J.P.) & Co. 6.49%
American Express Co. 6.01%
International Business Machines Corp. 5.97%
General Electric Co. 5.22%
Hewlett-Packard Co. 4.64%
Johnson & Johnson 4.52%
Chevron Corp. 4.39%
Procter & Gamble Co. 4.12%
Minnesota Mining & Manufacturing Co. 4.01%
Exxon Corp. 3.56%
Merck & Co. 3.42%
United Technologies Corp. 3.31%
Du Pont (E.I.) De Nemours & Co. 3.15%
Eastman Kodak Co. 3.13%
General Motors Corp. 3.05%
Allied-Signal Inc. 2.91%
Coca-Cola Co., The 2.89%
ALCOA Inc. 2.86%
Caterpillar Inc. 2.77%
Goodyear Tire & Rubber Co. 2.71%
AT&T Corp. 2.58%
International Paper Co. 2.33%
Union Carbide Corp. 2.25%
Wal-Mart Stores Inc. 2.23%
Citigroup Inc. 2.19%
Sears, Roebuck & Co. 2.06%
Boeing Co., The 2.04%
McDonald's Corp. 1.91%
Morris (Philip) Cos. 1.86%
Disney (Walt) Co. 1.42%
</TABLE>
<TABLE>
<CAPTION>
% total
equity
Industry Weightings portfolio
<S> <C>
Financial Services 14.7%
Basic Materials 13.5%
Conglomerates 12.5%
Technology 10.6%
Consumer/Cyclicals 8.9%
Consumer/Non-Cyclicals 8.9%
Energy 8.0%
Healthcare 7.9%
Capital Goods 4.8%
Retail Stores 4.3%
Services 3.3%
Communications 2.6%
<CAPTION>
% net
Top Portfolio Holdings assets
<S> <C>
Diamonds Trust, Series 1* 100.0%
</TABLE>
Total Return
- ---------------------------------------------
<TABLE>
<S> <C>
Average Annual Return
Since inception N/A
Cumulative Return
Since inception 0.56%
</TABLE>
Performance Since
Inception
[GRAPHIC]
<TABLE>
<S> <C>
0.56% -0.01%
Fund DJIA
</TABLE>
The fund outperformed its benchmark index during the period.
The Dow Jones Industrial Average is an unmanaged average of the prices of 30
large-cap stocks.
-------------------------
Modern Portfolio Theory Statistics
These statistics will be available when the fund has been in operation for at
least three years.
-------------------------
*Diamonds are shares of a publicly traded unit investment trust that owns the
stocks of the Dow Jones Industrial Average (DJIA)'sm' in the same proportion as
represented in the DJIA.
The Dow Jones Industrial Average is the oldest continuing stock market average
in the world. Unlike other averages, the DJIA is weighted by share price rather
than market capitalization, meaning that the component stocks of the DJIA are
accorded relative importance based on their prices.
The 30 companies that constitute the Dow are all leaders in their respective
industries and their stocks are widely held by individuals and institutional
investors.
"Dow Jones'sm'," "Dow Jones Industrial Average'sm'" and "DJIA'sm'" and
"Dow 30'sm'" are service marks of Dow Jones and Company, Inc. Dow Jones has no
relationship to Burnham Dow 30'sm' Focused Fund or its distributor, other than
licensing of the Dow Jones Industrial Average (DIJA) and its service marks to
the distributor to use in connection with the fund.
DOW 30'sm' FOCUSED FUND 7
<PAGE>
Investment Focus
Style
- ------------------
Value Blend Growth
Market Cap
- -------------------
Small Medium Large
[CHART]
<TABLE>
<S> <C>
Ticker Symbols
Class A N/A
Class B N/A
--------------------
Portfolio Manager
Anton Schutz
Since inception
--------------------
Minimum Investment
Regular accounts $1,000
IRAs None
--------------------
Asset Values
Net assets, in millions $0.60
Net asset value per share
Class A $10.51
Class B $10.51
Maximum offering price
Class A $11.06
--------------------
Expense Ratios
Annualized, after expense reimbursement
Class A 1.6%
Class B 2.3%
--------------------
Inception
Both classes June 7, 1999
--------------------
</TABLE>
All data as of June 30, 1999.
Performance information assumes all
distributions were reinvested. Class A
performance information includes the
maximum 5% sales charge. Class B shares
have different costs and the growth
chart does not represent their
performance. Past performance isn't a
prediction of future performance. Read
the prospectus before investing.
Burnham Financial
Services Fund
"Through continued strong capital management and increasing consolidation -- as
well as stable earnings growth -- we believe the financial sector will continue
to show positive returns."
/s/ Anton Schutz
Anton Schutz
Portfolio Manager
Monday, June 7, 1999 marked the fund's inception, and we are proud to be able to
report that in the three short weeks that are covered by this report, the fund
returned 5.10%.
Within those three weeks, we were affected by two acquisitions, which are
detailed below in the discussion points. We continue to see consolidation as a
significant trend in the financial industry, based in part on the FASB ruling
that eliminates pooling of interests and favors acquisitions.
In the meantime, we continue to see the sector performing well and expect
earnings to remain strong and credit quality to remain solid, reflecting U.S.
economic growth. Even a rise in rates should not hurt stocks in this sector,
because many financial companies earn more revenue when rates go up.
Webster Financial bought New England Community. We chose to maintain our
holdings in New England Community because Webster appears attractive in light of
its high market share in Connecticut and its strong internet business
Citizens Financial bought UST in a cash transaction. The fund sold its holdings
in UST.
We see a rapidly changing banking environment in the New England region as the
Fleet - BankBoston merger has created an enormous divestiture package that is
being looked at by institutions of all sizes -- those that are in the market as
well as out of the market. We believe this may lure in some new acquirers into
the region, which will eventually stir up consolidation even more
As believers in companies with strong capital management strategies, we were
pleased to see Commonwealth Bancorp. announce a stock repurchase program, and to
see many of our other holdings in the market repurchasing their own stock.
8 FINANCIAL SERVICES FUND
<PAGE>
PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
Asset Allocation
[GRAPH]
<TABLE>
<S> <C>
Common stocks 71%
Cash & cash equivalents 29%
</TABLE>
The fund seeks
capital appreciation.
<TABLE>
<CAPTION>
% total
equity
Top Industries portfolio
<S> <C>
Banks -- Major Regional 25.6%
Banks -- Regional 19.2%
Savings & Loan Companies--
Major Regional 17.1%
Savings & Loan Companies-- Regional 15.7%
Banks-- Money Center 9.7%
Savings & Loan Companies-- National 6.7%
Finance-- Investment Banker/Broker 3.8%
Non-Financial Services Related 2.2%
<CAPTION>
% net
Top Portfolio Holdings assets
<S> <C>
Sovereign Bancorp Inc. 5.2%
Bank One Corp 5.1%
Charter One Financial Inc. 4.8%
New England Community Bancorp Inc. 4.8%
Alliance Bancorp of New England Inc. 4.2%
First Commonwealth Financial Corp. 4.1%
Union Planters Inc. 3.8%
Golden State Bancorp Inc. 3.8%
Bank of America Corp 3.8%
SunTrust Banks Inc. 3.6%
</TABLE>
Total Return
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
with max. with no
Average sales charge sales charge
Annual Return or CDSC or CDSC
<S> <C> <C>
Class A
Since inception* N/A N/A
Class B
Since inception* N/A N/A
<CAPTION>
with max. with no
Cumulative sales charge sales charge
Return or CDSC or CDSC
<S> <C> <C>
Class A
Since inception (0.16%) 5.10%
Class B
Since inception (0.16%) 5.10%
</TABLE>
* Annualized returns are not listed for periods under one year.
Performance Since
Inception
[GRAPHIC]
5.10%
Class A
The fund need a brief description here of how the fund performed, comparable to
the sentence that appears in this spot for Burnham Fund.
-------------------
Modern Portfolio Theory Statistics
These statistics will be available when the fund has been in operation for at
least three years.
FINANCIAL SERVICES FUND 9
<PAGE>
<TABLE>
<S> <C>
Ticker Symbol N/A
-------------------------
Portfolio Managers
Reich & Tang Asset Management L.P.
Since inception
-------------------------
Minimum Investment
Regular accounts $1,000
IRAs None
-------------------------
Asset Values
Net assets, in millions $27.8
Net asset value per share $1.0
-------------------------
Expense Ratio 0.88%
Annualized, after expense reimbursement
-------------------------
Inception May 3, 1999
</TABLE>
-------------------------
All data as of June 30, 1999.
Performance information assumes all
distributions were reinvested. Past
performance isn't a prediction of future
performance. Read the prospectus before
investing.
Burnham Money
Market Fund
PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
Asset Allocation by Maturity
[GRAPHIC]
<TABLE>
<S> <C>
180-397 days 3.6%
31-89 days 14.2%
Less than 30 days 3.6%
Overnight and 7-day demand 78.6%
</TABLE>
Asset Allocation by Type
[GRAPHIC]
<TABLE>
<S> <C>
Commercial Paper 7.10%
Line of Credit Commercial Paper 14.3%
Repurchase Agreements 78.6%
</TABLE>
The fund seeks maximum current income
that is consistent with maintaining
liquidity and preserving capital.
Yield and Total Return
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Yield and Maturity
Daily Yield 4.46%
7-day effective yield 4.26%
30-day effective yield 4.11%
Weighted average days to
maturity 24
Average Annual Return
Since inception 4.03%
Cumulative Return
Since inception 0.65%
</TABLE>
10 MONEY MARKET FUND
<PAGE>
The Financial Pages
About the Funds
- -------------------------------------------------------------------------------
Business structure
The funds are part of Burnham Investors Trust, a Delaware business trust. The
trust is registered with the Securities and Exchange Commission as a diversified
open-end investment company, commonly known as a mutual fund. Each fund is a
series of the trust.
Except for Burnham Fund, the funds began operations after the creation of the
trust on August 20, 1998. Burnham Fund was created in 1961 and was reorganized
from a Maryland corporation to a series of the trust on April 30, 1999.
Administration
The following entities handle the funds' main activities:
Adviser/Administrator
Burnham Asset Management Corporation
1325 Avenue of the Americas
New York, NY 10019
Manages each fund's assets, either directly or by choosing a subadviser,
provides offices and personnel, and supervises non-investment-related
operations.
Distributor
Burnham Securities Incorporated
1325 Avenue of the Americas
New York, NY 10019
Under the funds' 12b-1 plans, the distributor must use its best efforts to
sell shares of each fund and share class.
Transfer Agent
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110
Handles transactions in fund shares.
Custodian
Investors Fiduciary Trust Co.
801 Pennsylvania
Kansas City, MO 64105
Holds and settles the funds' securities.
Legal Counsel
Hale & Dorr LLP
60 State Street
Boston, MA 02109
Oversees legal affairs for the trust.
Share classes
The funds offer either one or two share classes, as follows:
One share class, without sales charges, but with a 1.00% redemption fee on
shares sold within 180 days:
Burnham Dow 30 Focused Fund
Burnham Money Market Fund (no redemption fee)
Two share classes, Class A having a maximum front-end sales charge of 5.00%
and Class B having a maximum contingent deferred sales charge (CDSC) of
5.00%:
Burnham Fund
Burnham Financial Services Fund
The CDSC on Class B shares declines to zero after six years of owning the
shares, and doesn't apply to shares acquired through reinvestment.
Each fund keeps track of its share sales by share class. The trust may issue any
number of shares of each fund and class.
Distributions to shareholders
Each fund distributes it net investment income and net realized capital gains to
shareholders every year. The funds intend to qualify as regulated investment
companies under the provisions of the Internal Revenue Code, allowing them to
pay no federal income taxes.
The Burnham Money Market Fund expects to declare income distributions daily and
pay them monthly; Burnham Fund expects to declare and pay income distributions
quarterly, and the remaining funds expect to declare and pay income
distributions once a year. Except for Burnham Money Market Fund, which is not
designed to generate capital gains, each fund expects to declare and pay
distributions from net realized capital gains once a year.
About the Information in this Section
On these pages, you'll find some general background about Burnham Investors
Trust as well as details about each fund.
The tables showing financial results are intended to give a picture of each
fund's operations over the past six months as well as a "snapshot" of its assets
and liabilities as of the report date.
The text and notes in this section provide context and further detail. These are
an integral part of the section: a reader won't be able to gain an accurate
understanding of the financial information without reading the text and notes.
Footnotes that are specific to a given fund appear at the end of that fund's
financial tables.
Because this is a semiannual report, the financials shown here are unaudited.
FINANCIAL PAGES 11
<PAGE>
ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
Below are brief descriptions of the accounting policies the funds have used in
preparing the financial statements in this report. These policies are consistent
with generally accepted accounting practices for U.S. mutual funds.
Valuing securities
The funds use these methods to value portfolio securities:
Stocks and other equities are valued at the last quoted sales price as of the
close of trading on the New York Stock Exchange (generally 4:00 p.m. Eastern
time) on the valuation date. Any equities that didn't trade that day, and any
equities traded over-the-counter, are valued at halfway between the latest
quoted bid and asked prices.
Bonds and other debt securities (except for short-term securities) are valued
according to prices obtained from independent pricing services. These services
rely either on the latest bid and asked prices or on a matrix system that
assigns values based on a number of factors, such as security prices, yields,
maturities and ratings
Money market instruments and other temporary cash investments are valued
differently depending on the fund. The Burnham Money Market Fund values them
initially at cost, and thereafter by amortizing any discount or premium in a
straight line from the present to the maturity date (the method most commonly
used to value these types of securities). The remaining funds use this method
for temporary cash investments whose maturity is less than 60 days. For
temporary cash investments whose maturity is longer than 60 days, the
remaining funds value them the same way bonds are valued.
Repurchase agreements, which each fund can use as long as the counterparties
meet the Trustees' credit standards, are recorded at cost. Any repurchase
agreements must be fully collateralized by securities, which are held by a
custodian bank until the agreements mature. These securities are monitored
daily to ensure that their value (including interest) is always more than the
amount owed to a fund under each repurchase agreement.
Options may be written by the non-money market funds to manage exposure to
certain changes in markets. When a fund enters into a written call option, it
records the amount received as an asset and also records an equivalent amount
as a liability. The funds subsequently mark-to-market the liability, to
reflect the option's current value. When a call option expires or is offset,
the fund records a gain or loss (separate from any unrealized gain or loss on
the underlying security). When a counterparty exercises a call option that the
fund wrote, the fund adds the proceeds from the delivery of the underlying
security to the amount originally received and records the resulting gain or
loss. Because of their leverage, options may expose a fund to greater risks
than are reflected by the values in the financial statements.
Whenever a fund is unable to determine the value a security through its normal
methods, it uses fair-value methods that have been adopted by the Board of
Trustees.
Accounting for portfolio transactions
The funds account for purchases and sales of portfolio securities as of each
security's trade date. The funds determine realized gains and losses based on
identified cost (the same basis used for federal income tax purposes). When the
funds receive dividends, they record the income on the ex-dividend date, minus
any foreign taxes. The funds record interest income as it accrues.
Distributions and taxes
The funds record distributions on the ex-dividend date.
On occasion, a fund may make reclassifications among some of its capital
accounts. This could have the effect of changing the nature of certain
distributions that have already been made, which could have tax implications for
shareholders. The fund would only make reclassifications in order to comply with
federal tax regulations.
Proceeds from redemption fees
Proceeds from short-term redemption fees (currently charged only by Burnham Dow
30 Focused Fund) go to the fund, which counts them as paid-in capital.
Expenses
Each fund bears all of the expenses that are directly attributable to it. The
trust's remaining expenses are shared by the funds, and are allocated daily in
proportion to each fund's net assets.
12 FINANCIAL PAGES
<PAGE>
ABOUT THE FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
The financial statements for the funds appear on the following pages. These
statements cover the funds' activities over the report period, and show where
each fund stood as of the last day of the report period (in this case, June 30,
1999). The financials appear on a fund-by-fund basis, with the funds arranged in
the same order as in the performance discussions earlier in this report. Keep in
mind that as with most financial statements, it has been necessary for
management to make certain estimates and assumptions in the course of preparing
its figures, and that actual figures for a fund's assets, liabilities, income,
and other items may differ what is shown here.
Portfolio Holdings
Each fund provides a complete listing of the investments in its portfolio, as
those investments were on the report date. Holdings are grouped by type. For
those funds that invest in stocks, we show each portfolio company according to
the industry in which it is grouped. The groupings that we use are based on
those used by Standard & Poor's, with minor modifications. The percentage
numbers that appear by the category headings show the percentage of a fund's net
assets represented by that category of security.
Because securities change in value and the funds buy and sell investments, each
fund's holdings are likely to have been different earlier in the report period,
and they are also likely to have changed since the report date. However, they do
give an accurate picture of the fund at a particular moment in time.
Statement of Assets and Liabilities
Each fund's Statement of Assets and Liabilities is its balance sheet, showing
where the fund stood as of the report date. We present each fund's total assets
and its total liabilities; the former minus the latter is the fund's net assets.
Also shown are the share prices, as of the report date, for each fund and share
class.
Statement of Operations
The Statement of Operations shows what a fund earned over the course of the time
period covered by the report, as well as what it spent. Each fund's Statement of
Operations also totals up the fund's gains and losses on investments, counting
those gains and losses that the fund may have realized and those that remain
unrealized (that is, losses or gains that were only "on paper" as of the end of
the report period).
Statement of Changes in Net Assets
Two major factors determine the size of a mutual fund's assets: the performance
of its investments, and how much money investors put in or take out. Each fund's
Statement of Changes in Net Assets reflects both of these factors (along with
other factors that have an affect on asset size), showing the overall change in
a fund's size from the beginning of the report period to the end.
Financial Highlights
These show, in summary form, each fund's performance for the past five years (or
less, in the case of new funds). In semiannual reports, there are also figures
for the six-month report period. The information in the first part of each
Financial Highlights table reflects financial results for a single fund share.
For each fund, the total returns in the table represent the rate that an
investor would have earned (or lost) on an investment in the fund, assuming
reinvestment of all dividends and distributions. The Financial Highlights tables
in these reports are substantially the same as those appearing in the current
prospectus for these funds.
Risks not Reflected in Balance Sheets
Except for Burnham Money Market Fund, the funds have the ability to use various
techniques and securities that may affect a fund's investment results and risk
profile in ways that are not reflected on its balance sheet. These include both
written and purchased options. To accurately assess the potential impact of
these investments on the fund, it's necessary to consider not just the financial
instruments themselves but all related and offsetting positions the fund may
hold.
FINANCIAL PAGES 13
<PAGE>
BURNHAM FUND
Portfolio Holdings Unaudited
As of June 30, 1999
<TABLE>
<CAPTION>
Indicates securities that do Number Market
not produce income. of shares value
- --------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 89.59%
Aerospace 0.98%
General Motors Corp. Class H 30,000 $1,687,500
Air Freight 1.26%
FDX Corporation 40,000 2,170,000
Automotive 4.32%
Daimler Chrysler AG 20,000 1,777,500
Ford Motor Company 100,000 5,643,750
---------
7,421,250
Banking 10.94%
The Bank of New York Co., Inc. 160,000 5,870,000
Chase Manhattan Corp. 20,000 1,732,500
Citigroup Inc. 180,000 8,550,000
Fleet Financial Group Inc. 40,000 1,775,000
Sovereign Bancorp Inc. 70,000 850,937
---------
18,778,437
Broadcasting 1.01%
CBS Corp. 40,000 1,737,500
Computer Products & Software 21.45%
Cisco Systems, Inc. 100,000 6,440,625
Dell Computer Corp. 30,000 1,109,063
EMC Corp. 70,000 3,850,000
International Business
Machines Corp. 60,000 7,755,000
Microsoft Corp. 85,000 7,660,625
Siebel Systems Inc. 120,000 7,953,750
Sun Microsystems Inc. 30,000 2,067,188
---------
36,836,251
Computers--Data Processing 1.29%
America Online Inc. 20,000 2,210,000
Consumer Products 2.63%
General Electric Co. 40,000 4,520,000
Diversified Chemicals 0.69%
Monsanto Co. 30,000 1,183,125
Electrical Equipment 1.18%
Symbol Technologies Inc. 55,000 2,028,125
Engineering/Industrial Production 0.06%
Thermolyte Corp.(1) 10,000 100,000
Energy -- Oil & Gas Refining 7.54%
BP Amoco PLC 30,000 3,255,000
Exxon Corporation 50,000 3,856,250
Mobil Corporation 40,000 3,960,000
Texaco Inc. 30,000 1,875,000
---------
12,946,250
Financial Services 3.66%
American Express Co. 40,000 5,205,000
Goldman Sachs Group Inc. 15,000 1,083,750
---------
6,288,750
Food and Beverage Products 1.77%
American Italian Pasta Co. 100,000 3,037,500
Healthcare Facilities 0.81%
Rehabcare Group Inc. 75,000 1,382,812
Medical Products 0.44%
Becton Dickinson & Co. 25,000 750,000
Oil Drilling 1.16%
Diamond Offshore Drilling Inc. 70,000 1,986,250
Passenger Cruise Lines 0.85%
Carnival Corp. 30,000 1,455,000
Pharmaceuticals 6.73%
Merck & Co. 50,000 3,700,000
Pfizer Inc. 40,000 4,390,000
Warner Lambert Inc. 50,000 3,468,750
---------
11,558,750
</TABLE>
14 BURNHAM FUND
<PAGE>
PORTFOLIO HOLDINGS UNAUDITED
CONTINUED
<TABLE>
<CAPTION>
Number Market
of shares value
- --------------------------------------------------------------------------------
<S> <C> <C>
Real Estate Investment Trusts 3.47%
Charles E. Smith
Residential Realty 30,000 $1,018,125
Chateau Communities Inc. 40,000 1,197,500
Franchise Finance Corp. 70,000 1,540,000
Golf Trust of America 45,000 1,099,688
National Golf Properties, Inc. 45,000 1,094,063
---------
5,949,376
Retail Stores 3.38%
Gap, Inc. 45,000 2,266,875
Sears Roebuck & Co. 25,000 1,114,062
Wal Mart Stores Inc. 50,000 2,412,500
---------
5,793,437
Security Services 0.58%
Kroll-O'Gara Co. 45,000 997,031
Semiconductors 2.77%
Intel Corp. 80,000 4,757,500
Telecommunications Equipment 3.14%
Lucent Technologies Inc. 80,000 5,395,000
Telecommunications Networks & Services 6.87%
ECI Telecom Ltd. 60,000 1,981,875
GTE Corp. 40,000 3,030,000
Qwest Communication
International 100,000 3,309,375
SBC Communications Inc. 60,000 3,480,000
---------
11,801,250
Utilities 0.61%
CMS Energy Corp. 25,000 1,046,875
Total Common Stocks ------------
(cost: $77,171,912) $153,817,969
============
</TABLE>
<TABLE>
<CAPTION>
Number of
Shares/
Face Market
value value
- --------------------------------------------------------------------------------
<S> <C> <C>
Convertible Preferred Securities 1.59%
Passenger Cruise Lines 1.59%
Royal Caribbean Cruises,
conv. pref. Class A 20,000 $2,735,000
Total Convertible Preferred Securities ----------
(cost: $1,084,100) $2,735,000
==========
Corporate Convertible Bonds 0.81%
Data Processing 0.81%
Adaptec, Inc. 4.75% sub. deb.
conv. 2/1/04 $1,000,000 953,750
Data General Corp., 6% sub.
deb. conv. 5/15/04 500,000 436,250
----------
Total Corporate Convertible
Bonds (cost: $1,271,000) $1,390,000
==========
Corporate Bonds 0.77%
Hotels 0.77%
Marriot Corp., 9 3/8%
deb. 6/15/07 1,265,000 1,319,521
Total Corporate Bonds ----------
(cost: $1,273,606) $1,319,521
==========
Commercial Paper 7.05%
Associates Corp. of North
America 7.90% 07/06/99 7,800,000 7,800,000
General Motors Acceptance
Corp., 4.68% 07/01/99 4,300,000 4,300,000
Total Commercial Paper ------------
(cost: $12,100,000) $12,100,000
============
Total investments(2) in securities 99.81%
(identified cost: $92,900,618) 171,362,490
Cash and other assets, less
liabilities 0.19% 332,860
------------
Net assets 100.00% $171,695,350
============
</TABLE>
Burnham Fund 15
<PAGE>
BURNHAM FUND, CONTINUED
Statement of Assets & Liabilities Unaudited
As of June 30, 1999
<TABLE>
<S> <C>
Assets
Investments, at market value $171,362,490
Dividends and interest receivable 142,848
Receivable for investments sold 1,106,213
Receivable for capital stock sold 965,829
Receivable from investment adviser 51,980
Prepaid expenses 76,114
Other assets 828
--------------
Total assets 173,706,302
Liabilities
Bank overdraft 659,019
Payable for investments purchased 1,024,290
Payable for capital stock redeemed 22,480
Payable for administration fees(3) 19,920
Payable for investment advisory fees(4) 80,820
Payable for distribution fees and service fees(5) 67,103
Accrued expenses and other payables 137,320
--------------
Total liabilities 2,010,952
Net Assets $171,695,350
==============
Analysis of Net Assets
By source
Capital paid in $ 86,179,035
Undistributed net investment income 153,713
Accumulated net realized gains on investments 6,900,730
Net unrealized appreciation of investments 78,461,872
--------------
$171,695,350
==============
</TABLE>
<TABLE>
<CAPTION>
By share class
Capital
shares
outstanding NAV(6)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A 4,647,881 x $36.31096 = $168,769,029
Class B 78,652 x $37.20593 = $ 2,926,321
</TABLE>
Statement of Operations Unaudited
For Six Months Ended June 30, 1999
<TABLE>
<S> <C>
Investment Income
Dividends $ 906,739
Interest 327,221
Other income 319
--------------
Total income 1,234,279
Expenses
Administration fees(3) 39,666
Service Fees (Class B)(5) 3,829
Investment advisory fees(4) 502,872
Distribution fees (Class A)(5) 201,724
Distribution fees (Class B)(5) 9,728
Transfer agent fees 80,000
Professional fees 67,933
Reports to shareholders 29,200
Directors fees and expenses 50,000
Custodian fees 29,200
Registration fees and expenses 32,713
Insurance expenses 36,759
Fund accounting expenses 9,145
Miscellaneous expenses 7,348
--------------
Total expenses before reimbursement 1,100,117
Less voluntary reimbursement by adviser(7) (19,638)
--------------
Total expenses after reimbursement 1,080,479
Net investment income $ 153,800
==============
Net Realized and Unrealized Gain
on Investments
Realized gain from securities and options transactions:(2)
Proceeds from sales $ 42,006,582
Cost of securities sold (34,984,106)
--------------
Net realized gain from securities transactions 7,022,476
Increase in unrealized appreciation of investments:
Beginning of period 67,328,521
End of period 78,461,872
--------------
Increase in unrealized appreciation 11,133,351
Net realized and unrealized gain on investments $18,155,827
===============
Net increase in net assets resulting from operations $18,309,627
===============
</TABLE>
16 Burnham Fund
<PAGE>
Statement of Changes in Net Assets Unaudited
<TABLE>
<CAPTION>
1/1/1999- 1/1/1998-
6/30/1999 12/31/1998
- ---------------------------------------------------------------------------------
<S> <C> <C>
Increase in Net Assets
From operations:
Net investment income $153,800 $1,142,417
Net realized gain from security
and option transactions 7,022,476 7,996,908
Increase in unrealized
appreciation of investments 11,133,351 20,353,244
------------ ------------
Net increase in net assets
resulting from operations 18,309,627 29,492,569
Distributions to Shareholders
From net investment income:
Class A shares (181,739) (1,482,370)
Class B shares 0 (3,373)
------------ ------------
(181,739) (1,485,743)
From realized gains from security
and option transactions:
Class A shares (8,207,632) (7,409,574)
Class B shares (122,406) (85,434)
------------ ------------
Total distributions to shareholders (8,330,038) (7,495,008)
Capital Share Transactions
(also see next table)
Net proceeds from sale of shares 7,177,436 4,634,280
Net asset value of shares issued
to shareholders in reinvestment
of dividends 7,535,118 7,867,717
Cost of shares redeemed (12,554,611) (11,425,490)
Increase in net assets ------------ ------------
derived from capital share
transactions 2,157,943 1,076,507
Increase in net assets for
the period 11,955,793 21,588,325
Net Assets
Beginning of period 159,739,557 138,151,232
============ ============
End of period $171,695,350 $159,739,557
============ ============
</TABLE>
Detail of Capital Share Transactions Unaudited
<TABLE>
<CAPTION>
Number Market
of shares value
- ---------------------------------------------------------------------------------
<S> <C> <C>
Class A
1/1/1999 - 6/30/1999
Shares sold 199,011 $6,824,804
Shares issued for reinvestments 228,293 7,412,890
Shares redeemed (364,255) (12,431,013)
------------ ------------
Net increase 63,049 $1,806,681
============
1/1/1998 - 12/31/1998
Shares sold 118,079 $3,768,093
Shares issued for reinvestments 272,850 7,773,525
Shares redeemed (364,848) (11,898,527)
------------ ------------
Net increase 26,081 $143,051
============
Class B
1/1/1999 - 6/30/1999
Shares sold 9,935 $352,632
Shares issued for reinvestments 3,658 122,228
Shares redeemed (3,322) (123,599)
------------ ------------
Net increase 10,271 $351,262
============
1/1/1998 - 12/31/1998
Shares sold 13,771 $427,864
Shares issued for reinvestments 3,047 88,639
Shares redeemed (848) (26,909)
------------ ------------
Net increase 15,970 $489,595
============
</TABLE>
Federal Income Tax Basis of Investment Securities
The tax cost of the Fund at June 30, 1999 based on securities owned was
$92,900,618. The unrealized gross appreciation/(depreciation) for all securities
in the fund for the period was $79,857,489 and $(1,395,617), respectively.
BURNHAM FUND 17
<PAGE>
Burnham Fund, continued
Financial Highlights Unaudited
For the Year Ended December 31
<TABLE>
<CAPTION>
Class A Shares
1/1/1999
6/30/1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value
Beginning of period $34.31 $30.04 $25.65 $23.19 $19.88 $21.86
Income from investment
operations
Net investment income 0.03 0.25 0.45 0.51 0.71 0.75
Net gains or losses on securities
(both realized and unrealized) 3.80 5.97 5.54 3.36 3.91 (1.15)
----------------------------------------------------------
Total from investment operations 3.83 6.22 5.99 3.87 4.62 (0.40)
Less distributions
Dividends
(from net investment income) (0.04) (0.32) (0.44) (0.55) (0.75) (0.87)
Distributions from capital gains
(from securities and
options transactions) (1.79) (1.63) (1.16) (0.86) (0.56) (0.71)
----------------------------------------------------------
Total distributions (1.83) (1.95) (1.60) (1.41) (1.31) (1.58)
----------------------------------------------------------
Net asset value, end of period $36.31 $34.31 $30.04 $25.65 $23.19 $19.88
==========================================================
Total return 11.79% 22.08% 24.74% 17.60% 24.45% (1.77%)
----------------------------------------------------------
Ratios/supplemental data
Net assets (in $millions),
end of period 168.8 156.7 136.4 117.4 112.0 101.8
----------------------------------------------------------
Ratio of net expenses
to average net assets(7) 1.3%(8) 1.3%(7) 1.1% 1.3% 1.5% 1.5%
----------------------------------------------------------
Ratio of net income to average
net assets 0.2%(8) 0.8% 1.6% 2.1% 3.3% 3.7%
----------------------------------------------------------
Portfolio turnover rate 44.3%(8) 54.7% 59.4% 61.5% 78.3% 87.9%
----------------------------------------------------------
<CAPTION>
Class B Shares
1/1/1999
6/30/1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value
Beginning of period $35.21 $30.75 $26.31 $23.45 $19.94 $21.84
Income from investment
operations
Net investment income (0.09) (0.03) 0.13 0.21 0.41 0.49
Net gains or losses on securities
(both realized and unrealized) 3.88 6.12 5.75 3.69 4.10 (1.04)
----------------------------------------------------------
Total from investment operations 3.79 6.15 5.88 3.90 4.51 (0.55)
Less distributions
Dividends
(from net investment income) (0.00) (0.06) (0.28) (0.18) (0.44) (0.64)
Distributions from capital gains
(from securities and
options transactions) (1.79) (1.63) (1.16) (0.86) (0.56) (0.71)
----------------------------------------------------------
Total distributions (1.79) (1.69) (1.44) (1.04) (1.00) (1.35)
----------------------------------------------------------
Net asset value, end of period $37.21 $35.21 $30.75 $26.31 $23.45 $19.94
==========================================================
Total return 11.34% 21.16% 23.60% 17.34% 23.54% (2.52%)
----------------------------------------------------------
Ratios/supplemental data
Net assets (in $millions),
end of period 2.9 2.4 1.6 1.0 0.6 0.3
----------------------------------------------------------
Ratio of net expenses
to average net assets(7) 2.1(8) 2.1% 2.0% 2.1% 2.2% 2.3%
----------------------------------------------------------
Ratio of net income to average
net assets (0.6%)(8) 0.0% 0.7% 1.3% 2.5% 2.9%
----------------------------------------------------------
Portfolio turnover rate 44.3%(8) 54.7% 59.4% 61.5% 78.3% 87.9%
----------------------------------------------------------
</TABLE>
(1) An illiquid security, which the fund bought on 3/16/1995 for $100,000.
Because there is no quoted market price for this security, the market value
shown represents an estimate approved by the management according to
pricing procedures adopted by the Board of Trustees.
(2) As of December 31, 1998, there were 100 options outstanding that the fund
had written, for premiums received of $61,998. During the report period,
the fund: canceled all outstanding options through closing transactions
costing $45,450, for a net capital gain of $16,548; wrote no new options;
paid $34,241,597 to buy equity and debt securities; and received
$42,006,582 for securities sold.
(3) The fund pays the administrator 0.15% of net assets up to $150 million,
0.125% of net assets from $150 million to $300 million, and 0.10% of net
assets above $300 million (percentages of average daily net assets). For
the report period, this amounted to $39,666.
(4) The fund pays the adviser 0.60% of its average daily net assets a year, in
monthly payments. For the report period, this amounted to $502,872. The
adviser currently limits the fund's total expenses to 1.30% and 2.30% of
average net assets for Class A and Class B, respectively. This limit is
voluntary and the adviser could change or drop it at any time. For the
period before May 1, 1999, the fund paid the adviser 0.625% of its
average daily net assets in fees.
(5) The fund pays the distributor a distribution fee of 0.25% and 0.75% of
average net assets for Class A and Class B shares, respectively. For the
report period, these amounted to $201,724 and $9,728, respectively. The
fund also pays a service fee of 0.25% for Class B shares. For the report
period, this amounted to $3,829. Also during the period, the distributor
earned $47,441 in brokerage commissions from handling securities trades
for the fund's portfolio, and $7,386 in sales commissions for selling
Class A shares. There were no CDSC charges received by the distributor
during the report period.
(6) For Class A shares, the offering price, with maximum 5% sales charge, was
$38.22; the redemption price is NAV. For Class B shares, the offering price
is NAV and the redemption price varies with on any CDSC charged.
(7) For the report period and year ended 1998 the adviser reimbursed both share
classes for expenses in excess of the expense limitation, but because this
reimbursement was minimal each class's expense ratios would be the same
with or without it when rounded to the nearest decimal point.
(8) Annualized.
18 BURNHAM FUND
<PAGE>
Burnham Dow 30'sm' Focused Fund
Portfolio Holdings Unaudited
As of June 30, 1999
<TABLE>
<CAPTION>
Number Market
of shares value
- -------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 96.74%
Unit Investment Trust 96.74%
Diamonds'sm' Trust Unit Series 1* 4,200 $459,375
---------
Total Unit Investment Trust
(cost: $458,383) $459,375
=========
Repurchase Agreements 2.18%
State Street Bank and Trust Co.,
(Collateralized by $10,000 US.
Treasury Bonds 7.875% due 2/15/21.
(Delivery Value $12,031) 10,325 10,325
---------
Total repurchase agreements
(cost: $10,325) $ 10,325
---------
Total Investments in securities 98.92%
(cost: $468,708) $469,700
Cash and other assets, less
liabilities 1.08% 5,134
---------
Net Assets 100.00% $474,834
=========
</TABLE>
Statement of Assets & Liabilities Unaudited
As of June 30, 1999
<TABLE>
<S> <C>
Assets
Investments, at market value $469,700
Dividends and interest receivable 458
Receivable from investment adviser 7,513
Prepaid expenses 4,465
---------
Total assets 482,136
Liabilities
Payable for administration fees(2) 55
Payable for investment advisory fees(3) 220
Payable for distribution fees(4) 92
Accrued expenses and other payables 6,935
---------
Total liabilities 7,302
Net Assets $474,834
=========
Analysis of Net Assets
By source
Capital paid in $473,088
Undistributed net investment income 754
Accumulated net realized gains on investments 0
Net unrealized appreciation of investments 992
---------
$474,834
=========
</TABLE>
DOW 30'sm' FOCUSED FUND 19
<PAGE>
Burnham Dow 30'sm' Focused Fund, continued
Statement of Operations Unaudited
From Inception (May 3, 1999) - June 30, 1999
<TABLE>
<S> <C>
Investment Income
Dividends $1,351
Interest 179
Other income 0
---------
Total income 1,530
Expenses
Administration fees(2) 97
Investment advisory fees(3) 387
Distribution fees(4) 161
Transfer agent fees 329
Professional fees 53
Reports to shareholders 20
Directors' fees and expenses 35
Custodian fees 8
Registration fees and expenses 674
Insurance expenses 7
Fund accounting expenses 6,504
Miscellaneous expenses 14
---------
Total expenses before reimbursement 8,289
Less voluntary reimbursement by adviser(5) (7,513)
---------
Total expenses after reimbursement 776
Net investment income $754
==========
Net Realized and Unrealized Gain
on Investments
Realized gain from securities and options transactions:(1)
Proceeds from sales 0
Cost of securities sold 0
---------
Net realized gain from securities transactions 0
Increase in unrealized appreciation of investments:
Beginning of period 0
End of period 992
---------
Increase in unrealized appreciation 992
Net realized and unrealized gain on investments $ 992
=========
Net increase in net assets resulting from operations $ 1,746
=========
</TABLE>
Statement of Changes in Net Assets Unaudited
<TABLE>
<CAPTION>
5/3/1999 -
6/30/1999
- -------------------------------------------------------------------------------
<S> <C>
Increase in Net Assets
From operations:
Net investment income $754
Net realized gain from security
and option transactions 0
Increase in unrealized
appreciation of investments 992
---------
Net increase in net assets
resulting from operations 1,746
Distributions to shareholders
From net investment income 0
From realized gains from security
and option transactions 0
---------
Total distributions to shareholders 0
Capital Share Transactions
(also see next table)
Net proceeds from sale of shares 473,088
Net asset value of shares issued
to shareholders in reinvestment
of dividends 0
Cost of shares redeemed 0
---------
Increase in net assets derived from
capital share transactions 473,088
Increase in net assets for the period 474,834
Net Assets
Beginning of period 0
=========
End of period $ 474,834
=========
</TABLE>
20 DOW 30'sm' FOCUSED FUND
<PAGE>
Detail of Capital Share Transactions Unaudited
<TABLE>
<CAPTION>
Number Market
of shares value
- -------------------------------------------------------------------------------
<S> <C> <C>
5/30/1999 - 6/30/1999
Shares sold 47,212 $473,088
Shares issued for reinvestments 0 0
Shares redeemed 0 0
---------- ----------
Net increase 47,212 $473,088
==========
</TABLE>
Federal Income Tax Basis of Investment Securities
The tax cost of the Fund at June 30, 1999 based on Securities owned was
$458,383. The unrealized gross appreciation/(depreciation) for all securities in
the fund for the period was $992 and $0, respectively.
DOW 30'sm' FOCUSED FUND 21
<PAGE>
Burnham Dow 30'sm' Focused Fund, continued
Financial Highlights Unaudited
for the Year Ended December 31
<TABLE>
<CAPTION>
5/3/1999 - 6/30/1999
- ------------------------------------------------------
<S> <C>
Net asset value
Beginning of period $10.00
Income from investment operations
Net investment income 0.02
Net gains or losses on securities
(both realized and unrealized) 0.04
------
Total from investment operations 0.06
Less distributions
Dividends (from net investment income) (0.00)
Distributions from capital gains
(from securities and options transactions) (0.00)
------
Total distributions (0.00)
------
Net asset value, end of period $10.06
======
Total return 0.56%
------
Ratios/supplemental data
Net assets (in $millions), end of period 0.5
------
Ratio of net expenses to average net assets(5) 1.2%(6)
------
Ratio of net income to average net assets 3.0%(6)
------
Portfolio turnover rate 0.0%(6)
------
</TABLE>
- --------------------------------------------------------------------------------
(1) During the report period, the fund paid $402,669 to buy equity securities
and did not sell any securities.
(2) The fund pays the administrator 0.15% of net assets up to $150 million,
0.125% of net assets from $150 million to $300 million, and 0.10% of
net assets above $300 million (percentages of average daily net assets).
For the report period, this amounted to $97.
(3) The fund pays the adviser 0.60% of its average daily net assets a year, in
monthly payments. For the report period, this amounted to $387. The adviser
currently limits the fund's total expenses to 1.20% of average net assets.
This limit is voluntary and the adviser could change or drop it at any
time.
(4) The fund pays the distributor a distribution fee of 0.25% of average net
assets. For the report period, this amounted to $161. Also during the
period, the distributor earned $252 in brokerage commissions from handling
securities trades for the fund's portfolio.
(5) Since inception the adviser reimbursed the fund for expenses in excess of
the expense limitation. The ratio of expenses to average net assets would
have been 12.4% had the adviser not agreed to reimburse expenses.
(6) Annualized.
* Diamonds are shares of a publicly traded unit investment trust that owns
the stocks of the Dow Jones Industrial Average (DJIA) in the same
proportion as represented in the DJIA.
Legal Dislcaimer
Dow Jones & Company, Inc. has no connections with or obligations to the
adviser or fund. Dow Jones does not make any representations regarding the
advisability of investing in the fund.
22 DOW 30'sm' FOCUSED FUND
<PAGE>
Burnham Financial Services Fund
Portfolio Holdings Unaudited
As of June 30, 1999
<TABLE>
<CAPTION>
Indicates securities that do Number Market
not produce income. of shares value
- ------------------------------------------------------------------------
<S> <C> <C>
Common Stocks 71.91%
Financial Services 70.30%
Banks 39.22%
Banks -- Major Regional 18.46%
Bank One Corp. 500 $29,781
KeyCorp 500 16,062
Mellon Bank Corp. 500 18,188
SunTrust Banks Inc. 300 20,831
Union Planters Inc. 500 22,344
---------
107,206
Banks -- Money Center 6.95%
Bank of America Corp. 300 21,994
The Bank of New York Co., Inc. 500 18,344
---------
40,338
Banks -- Regional 13.81%
First Commonwealth
Financial Corp. 1,000 23,875
New England Community
Bancorp Inc. 1,000 27,594
Republic Security Financial Corp. 1,000 8,359
West Bank Corp. 2,000 20,375
---------
80,203
Total Investment in Banks
(cost: $213,694) $227,747
=========
Investment Banking/Securities Broker 2.75%
Merrill Lynch Co. 200 15,987
Savings & Loan Companies 28.33%
Savings & Loan Companies -- Major Regional 12.27%
Golden State Bancorp Inc. 1,000 22,000
Peoples Heritage Financial
Group Inc. 1,000 18,844
Sovereign Bancorp Inc. 2,500 30,391
---------
71,235
Savings & Loan Companies -- National 4.78%
Charter One Financial Inc. 1,000 27,781
Savings & Loan Companies -- Regional 11.28%
Alliance Bancorp of New
England Inc. 2,000 24,500
Bank Atlantic Bancorp Inc. 1,000 7,250
First Essex Bancorp Inc. 1,000 16,094
First Sentinel Bancorp Inc. 2,000 17,656
---------
65,500
</TABLE>
<TABLE>
<CAPTION>
Number of Market
shares/Face value value
- ------------------------------------------------------------------------
<S> <C> <C>
Total Investment Savings & Loan
Companies (cost: $161,084) $164,516
=========
Total Investment in Financial
Services (cost:$390,314) $408,250
=========
Non-Financial Services Related 1.61%
Energy -- Oil & Gas 1.61%
R&B Falcon Corp. 1,000 9,375
Total Investment in Non-Financial
Services Related (cost: $9,872) $ 9,375
=========
Commercial Paper 28.41%
Associates First Capital Corp.,
5.25% 7/6/99 $165,000 165,000
Total Commercial Paper
(cost: $165,000) $165,000
=========
Total Investment in Securities
(cost: $565,187) $582,625
=========
Call Options Written (0.47%)
Golden State Bancorp. Inc
@ 25 expiring July 1999 100 calls (125)
Peoples Heritage Financial
Group Inc. @ 17 1/2 expiring
August 1999 100 (1,750)
R&B Falcon Corp. @ 10
expiring September 1999 100 (875)
---------
Total Call Options Written
(premium received: $3,005) $(2,750)
=========
Total Investments in securities 99.85% $579,875
Cash and other assets, less
liabilities 0.15% 855
---------
Net Assets 100.00% $580,730
=========
</TABLE>
FINANCIAL SERVICES FUND 23
<PAGE>
Burnham Financial Services Fund, continued
Statement of Assets & Liabilities Unaudited
As of June 30, 1999
<TABLE>
<S> <C>
Assets
Investments, at market value $582,625
Cash in bank 565
Dividends and interest receivable 774
Receivable from investment adviser 4,512
---------
Total assets 588,476
Liabilities
Payable for options written 2,750
Payable for administration fees(2) 43
Payable for investment advisory fees(3) 217
Payable for distribution fees and service fees(5) 96
Accrued expenses and other payables 4,640
---------
Total liabilities 7,746
Net Assets $580,730
=========
Analysis of Net Assets
By source
Capital paid in $553,959
Undistributed net investment income 499
Accumulated net realized gains on investments 8,579
Net unrealized appreciation of investments 17,693
---------
$580,730
=========
</TABLE>
<TABLE>
<CAPTION>
By share class
Capital
shares
outstanding NAV(5)
- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A 50,481 x $10.51116 = $530,614
Class B 4,770 x $10.50650 = $50,116
</TABLE>
Statement of Operations Unaudited
From Inception (June 7, 1999) - June 30, 1999
<TABLE>
<S> <C>
Investment Income
Dividends $750
Interest 234
Other income 0
---------
Total income 984
Expenses
Administration fees(2) 43
Service fees (Class B)(4) 8
Investment advisory fees(3) 217
Distribution fees (Class A)(4) 65
Distribution fees (Class B)(4) 23
Transfer agent fees 1,934
Professional fees 20
Reports to shareholders 9
Directors' fees and expenses 16
Custodian fees 4
Registration fees and expenses 0
Insurance expenses 10
Fund accounting expenses 2,645
Miscellaneous expenses 3
---------
Total expenses before reimbursement 4,997
Less voluntary reimbursement by adviser(3,6) (4,512)
---------
Total expenses after reimbursement 485
Net investment income $499
=========
Net Realized and Unrealized Gain
on Investments
Realized gain from securities and options
transactions:(1)
Proceeds from sales $85,394
Cost of securities sold (76,815)
---------
Net realized gain from securities transactions 8,579
Increase in unrealized appreciation of investments:
Beginning of period 0
End of period 17,693
---------
Increase in unrealized appreciation 17,693
Net realized and unrealized gain on investments $26,272
=========
Net increase in net assets resulting from operations $26,771
=========
</TABLE>
24 FINANCIAL SERVICES FUND
<PAGE>
Statement of Changes in Net Assets Unaudited
<TABLE>
<CAPTION>
6/7/1999-
6/30/1999
- -----------------------------------------------------
<S> <C>
Increase in Net Assets
From operations:
Net investment income $499
Net realized gain from security
and option transactions 8,579
Increase in unrealized
appreciation of investments 17,693
Net increase in net assets ----------
resulting from operations 26,771
Distributions to Shareholders
From net investment income:
Class A shares 0
Class B shares 0
From realized gains from security
and option transactions:
Class A shares 0
Class B shares 0
----------
Total distributions to shareholders 0
Capital Share Transactions
(also see next table)
Net proceeds from sale of shares 553,959
Net asset value of shares issued
to shareholders in reinvestment
of dividends 0
Cost of shares redeemed 0
Increase/(decrease) in net assets ----------
derived from capital share transactions 553,959
Increase in net assets for the period 580,730
Net Assets
Beginning of period 0
==========
End of period $580,730
==========
</TABLE>
Detail of Capital Share Transactions Unaudited
<TABLE>
<CAPTION>
Number Market
of shares value
- ---------------------------------------------------------
<S> <C> <C>
Class A
6/7/1999 - 6/30/1999
Shares sold 50,481 $506,259
Shares issued for reinvestments 0 0
Shares redeemed 0 0
--------- ----------
Net increase 50,481 $506,259
==========
Class B
6/7/1999 - 6/30/1999
Shares sold 4,770 $47,700
Shares issued for reinvestments 0 0
Shares redeemed 0 0
--------- ----------
Net increase 4,770 $47,700
==========
</TABLE>
FINANCIAL SERVICES FUND 25
<PAGE>
Burnham Financial Services Fund, continued
Financial Highlights Unaudited
<TABLE>
<CAPTION>
Class A Shares Class B Shares
6/7/1999 - 6/30/1999 6/7/1999 - 6/30/1999
- -------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value
Beginning of period $10.00 $10.00
Income from investment operations
Net investment income 0.01 0.01
Net gains or losses on securities
(both realized and unrealized) 0.50 0.50
---------------------------------
Total from investment operations 0.51 0.51
Less distributions
Dividends (from net investment income) (0.00) (0.00)
Distributions from capital gains
(from securities and options transactions) (0.00) (0.00)
---------------------------------
Total distributions (0.00) (0.00)
---------------------------------
Net asset value, end of period $10.51 $10.51
================================-
Total return 5.10% 5.10%
---------------------------------
Ratios/supplemental data
Net assets (in $millions), end of period 0.6 0.0(7)
---------------------------------
Ratio of net expenses to average net assets(6) 1.6%(8) 2.3%(8)
---------------------------------
Ratio of net income to average net assets 1.5%(8) 0.9%(8)
---------------------------------
Portfolio turnover rate 149.2%(8) 149.2%(8)
---------------------------------
</TABLE>
(1) During the report period, the fund paid $477,002 to buy securities and
received $85,394 for securities sold.
(2) The fund pays the administrator 0.15% of net assets up to $150 million,
0.125% of net assets from $150 million to $300 million, and 0.10% of net
assets above $300 million (percentages of average daily net assets). For
the report period, this amounted to $43.
(3) The fund pays the adviser 0.75% of its average daily net assets a year, in
monthly payments. For the report period, this amounted to $217. The adviser
currently limits the fund's total expenses to 1.60% and 2.30% of average
net assets for Class A and Class B, respectively. This limit is voluntary
and the adviser could change or drop it at any time.
(4) The fund pays the distributor a distribution fee of 0.25% and 0.75% of
average net assets for Class A and Class B shares, respectively. For the
report period, these amounted to $65 and $23, respectively. The fund also
pays a service fee of 0.25% for Class B shares. For the report period,
this amounted to $8. Also during the period, the distributor earned $864
in brokerage commissions from handling securities trades for the fund's
portfolio.
(5) For Class A shares, the offering price, with maximum 5% sales charge, was
$11.06; the redemption price is NAV. For Class B shares, the offering price
is NAV and the redemption price varies with any CDSC charged.
(6) Since inception the adviser reimbursed the fund for expenses in excess of
the expense limitation. The ratio of expenses to average net assets would
have been 14.2% and 43.3% for Class A and Class B shares, respectively had
the adviser not agreed to reimburse expenses.
(7) Less than $100,000.
(8) Annualized.
26 FINANCIAL SERVICES FUND
<PAGE>
Burnham Money Market Fund
Portfolio Holdings Unaudited
As of June 30, 1999
<TABLE>
<CAPTION>
Face Market
Value value
- --------------------------------------------------------------------------------
<S> <C> <C>
Short-term Instruments 100.35%
Commercial Paper 7.14%
Island Finance Puerto Rico, Inc.
5.09% due 8/10/99 $1,000,000 $994,389
Special Purpose Accounts
Receivable 5.15% due 8/27/99 1,000,000 991,925
-----------
Total Commercial Paper (cost: $1,986,314) $1,986,314
===========
Letter of Credit Commercial Paper 14.10%
Banco Bozano Simonsen S.A
(LOC Banco Santander) 5.85%
due 6/16/00 1,000,000 946,107
Banca Serfin S.A
(LOC Barclays Bank PLC) 5.05%
due 7/26/99 1,000,000 996,514
Floren Container Inc.
(LOC Bank of America) 5.15%
due 9/15/99 1,000,000 989,275
Transportadora de Gas del Sur S.A
(LOC Dresdner Bank, A.G.) 5.18%
due 9/21/99 1,000,000 988,361
-----------
Total Letter of Credit Commercial Paper
(cost: $3,920,257) $3,920,257
===========
Repurchase Agreements, Overnight 79.11%
The Goldman Sachs Group L.P.
(Collateralized by $22,400,000
GNMA, 5.50% to 11%, due
7/15/2002 to 6/15/2029) 5.25%
due 7/01/1999 22,000,000 22,000,000
------------
Total Repurchase Agreements, Overnight
(cost: $22,000,000) $22,000,000
============
Total Investments in securities 100.35%
(cost: $27,906,571) $27,906,571
Liabilities, less cash and other
assets (0.35)% (96,760)
------------
Net Assets 100.00% $27,809,811
============
</TABLE>
Statement of Assets & Liabilities Unaudited
As of June 30, 1999
<TABLE>
<S> <C>
Assets
Investments, at market value $27,906,571
Interest receivable 3,208
Receivable from investment adviser 8,568
Prepaid expenses 4,620
------------
Total assets 27,922,967
Liabilities
Bank overdraft 48,336
Payable for administrative fees(2) 1,856
Payable for investment advisory fees(3) 5,567
Dividend distribution payable 46,880
Accrued expenses and other payables 10,517
------------
Total liabilities 113,156
Net Assets $27,809,811
============
Capital shares outstanding $27,809,811
============
Net Asset Value per share $1.00
============
Analysis of Net Assets
Capital paid in $27,809,806
Undistributed net investment income 0
Accumulated net realized gains on investments 5
Net unrealized appreciation of investments 0
------------
$27,809,811
============
</TABLE>
MONEY MARKET FUND 27
<PAGE>
Burnham Money Market Fund, continued
Statement of Operations Unaudited
<TABLE>
<S> <C>
Investment Income
Interest $69,073
---------
Total income 69,073
Expenses
Administration fees(2) 2,130
Investment advisory fees(3) 6,390
Transfer agent fees 1,008
Professional fees 1,080
Reports to shareholders 440
Directors' fees and expenses 781
Custodian fees 185
Registration fees and expenses 0
Insurance expenses 383
Fund accounting expenses 6,704
Miscellaneous expenses 815
---------
Total expenses before reimbursement 19,916
Less voluntary reimbursement by adviser(4) (8,544)
---------
Total expenses after reimbursement 11,372
Net investment income $57,701
=========
Net Realized and Unrealized Gain
on Investments
Realized gain from securities and options transactions:(1)
Proceeds from sales $599,532
Cost of securities sold (599,527)
---------
Net realized gain from securities transactions 5
Increase in unrealized appreciation of investments:
Beginning of period 0
End of period 0
---------
Increase in unrealized appreciation 0
Net realized and unrealized gain on investments $ 5
---------
Net increase in net assets resulting from operations $57,706
=========
</TABLE>
Statement of Changes in Net Assets Unaudited
<TABLE>
<CAPTION>
6/7/1999-
6/30/1999
- -------------------------------------------------------------------------
<S> <C>
Increase in Net Assets
From operations:
Net investment income $57,701
Net realized gain from security &
option transactions 5
Increase in unrealized
appreciation of investments 0
Net increase in net assets -----------
resulting from operations 57,706
Distributions to Shareholders
From net investment income: (57,701)
From realized gains from security
and option transactions: 0
-----------
Total distributions to shareholders (57,701)
Capital Share Transactions
(also see next table)
Net proceeds from sale of shares 35,062,782
Net asset value of shares issued
to shareholders in reinvestment
of dividends 5,517
35,068,299
-----------
Cost of shares redeemed (7,258,493)
Increase/(decrease) in net assets
derived from capital share transactions 27,809,806
Increase in net assets for the period 27,809,811
Net Assets
Beginning of period 0
End of period $27,809,811
===========
</TABLE>
28 MONEY MARKET FUND
<PAGE>
Detail of Capital Share Transactions Unaudited
<TABLE>
<CAPTION>
Number Market
of shares value
- -----------------------------------------------------------------
<S> <C> <C>
5/3/1999 - 6/30/1999
Shares sold 35,062,782 $35,062,782
Shares issued for reinvestments 5,517 5,517
Shares redeemed (7,258,493) (7,258,493)
----------- ------------
Net increase 27,809,811 $27,809,811
============
</TABLE>
MONEY MARKET FUND 29
<PAGE>
Burnham Money Market Fund, continued
Financial Highlights Unaudited
<TABLE>
<CAPTION>
5/3/1999 - 6/30/1999
- -------------------------------------------------------------------------------
<S> <C>
Net asset value
Beginning of period $1.00
Income from investment operations
Net investment income 0.01
Net gains or losses on securities
(both realized and unrealized) 0.00
-------------------------
Total from investment operations 0.01
Less distributions
Dividends (from net investment income) (0.01)
Distributions from capital gains
(from securities and options transactions) (0.00)
-------------------------
Total distributions (0.01)
-------------------------
Net asset value, end of period $1.00
=========================
Total return 4.03%
-------------------------
Ratios/supplemental data
Net assets (in $millions), end of period 27.8
-------------------------
Ratio of net expenses to average net assets(4) 0.82%(5)
-------------------------
Ratio of net income to average net assets 4.06%(5)
-------------------------
</TABLE>
- -------------------------------------------------------------------------------
(1) During the report period, the fund paid $275,072,799 to buy money-market
instruments and received $247,187,532 for securities matured or sold.
(2) The fund pays the administrator 0.15% of net assets up to $150 million,
0.125% of net assets from $150 million to $300 million, and 0.10% of net
assets above $300 million (percentages of average daily net assets). For
the report period, this amounted to $2,130.
(3) The fund pays the adviser 0.45% of its average daily net assets a year, in
monthly payments. For the report period, this amounted to $6,390. The
adviser currently limits the fund's total expenses to 0.88% of average net
assets. This limit is voluntary and the adviser could change or drop it at
any time.
(4) Since inception the adviser reimbursed the fund for expenses in excess of
the expense limitation. The ratio of expenses to average net assets would
have been 1.4% had the adviser not agreed to reimburse expenses.
(5) Annualized.
30 Money Market Fund
<PAGE>
MODERN PORTFOLIO THEORY STATISTICS TERMS
Beta
A measure of a fund's sensitivity to market movements. (By definition, the beta
of the S&P 500 is 1.00).
R'pp'2
Reflects the percentage of a fund's movements that are explained by movements in
its benchmark index. An R'pp'2 of 100 means that all movements are explained by
the benchmark.
Alpha
Measures the difference between the fund's actual returns and its expected
performance given its level of risk.
Standard Deviation
A statistical measure of the range of a fund's performance. The greater the
deviation the greater the fund's volatility.
Sharpe Ratio
Risk adjusted measure using standard deviation and excess return to determine
reward per unit of risk. The higher the Sharpe Ratio, the better the fund's
historical risk adjusted performance.
Officers of the Trust
<TABLE>
<S> <C>
Jon M. Burnham President and Chief Executive Officer
Michael E. Barna Executive Vice President, Treasurer and Secretary
Debra B. Hyman Executive Vice President
Frank A. Passantino First Vice President and Assistant Secretary
Ronald M. Geffen Vice President
Louis S. Rosenthal Vice President
</TABLE>
Board of Trustees
<TABLE>
<S> <C>
I.W. Burnham, II Chairman
Jon M. Burnham Trustee
Claire B. Benenson Trustee
Lawrence N. Brandt Trustee
Alvin P. Gutman Trustee
William W. Karatz Trustee
John C. McDonald Trustee
Donald B. Romans Trustee
Robert F. Shapiro Trustee
Robert M. Shavick Trustee
David H. Solms Trustee
Robert S. Weinberg Trustee
Robert J. Wilbur Trustee
</TABLE>
<PAGE>
Burnham Securities, Inc.
1325 Avenue of the Americas,
26th Floor
New York, NY 10019
phone: 1-800-874-FUND (3863)
internet: www.burnhamfunds.com
email: [email protected]
Burnham Investors Trust is a family of mutual funds that aims to give investors
the tools to build prudent investment portfolios. Burnham Investors Trust offer
a variety of approaches to stock investing, as well as a money market fund.
<TABLE>
<S> <C> <C> <C>
Burnham Burnham Burnham
Money Dow 30 Financial
Market Focused Burnham Services
Fund Fund Fund Fund
More More
Conservative Aggressive
</TABLE>
This report was prepared for current shareholders of Burnham Investors Trust. To
be distributed to potential shareholders, it must be accompanied by a current
prospectus and, if applicable, a current quarterly report.
Because this report gives data about the past, the funds' holdings and the
managers' views may have changed since this report was prepared. None of the
information in this report is intended as investment advice for individual
investors, or as market predictions or securities recommendations, either
explicit or implicit.
[LOGO]
Burnham Securities, Inc.
1325 Avenue of the Americas, 26th Floor
New York, NY 10019
Bulk Rate
U S
Postage Paid
Permit # XXXXX
New York, NY
STATEMENT OF DIFFERENCES
------------------------
The registered trademark symbol shall be expressed as ................ 'r'
The service mark symbol shall be expressed as ........................ 'sm'
Characters normally expressed as superscript shall be preceded by .... 'pp'
