DECEMBER 31, 1999
ANNUAL
REPORT
Burnham Fund
Burnham Dow 30[SERVICE MARK] Focused Fund
Burnham Financial Services Fund
Burnham Money Market Fund
Burnham U.S. Treasury
Money Market Fund
[bracket graphic omitted] THE BURNHAM FAMILY OF FUNDS
[logo omitted] BURNHAM
FINANCIAL GROUP
<PAGE>
[photo of I. W. Burnham, II and Jon Burnham omitted]
BURNHAM NEWS
AND VIEWS
With this report, we complete the first cycle of our newly revised and
simplified fund reports, designed to provide you, our shareholders, with a more
"user-friendly" format to review your investment performance. We hope this new
format gives you a clearer picture of how your funds are doing, as well as some
valuable market insights. As always, we continue striving to improve our
communications with you, and welcome your comments and feedback.
In October, we continued the expansion of our fund family with the launch of the
Burnham U.S. Treasury Money Market Fund. This new fund gives you a second money
market choice, in addition to the three equity funds we currently offer.
The much anticipated (and in retrospect over-hyped) year 2000 arrived at Burnham
without a hitch, thanks to the efforts of our staff and vendors to make us
Y2K-compliant. As a result, we enter the new year with updated and enhanced
systems that will allow us to provide you with even better service. In the
coming months, we will be adding a number of new website features, including
daily NAVs, on-line account inquiry and transaction capabilities, and a host of
new fund and market information.
Please visit the fund's website at WWW.BURNHAMFUNDS.COM to keep up to date with
our growing fund family and expanding shareholder services. We appreciate your
confidence in Burnham Investors Trust and look forward to serving your
investment needs in the year ahead.
/s/signature
I. W. BURNHAM, II
CHAIRMAN
/s/signature
JON BURNHAM
PRESIDENT AND CEO
THE YEAR IN
REVIEW
U.S. equity markets ended the year at historic highs -- the technology-laden
Nasdaq gained a phenomenal 85.6%, far outstripping both the S&P 500 and Dow
Jones Industrial Average, whose gains in any other year would have been
considered superb. The market's gains were not broadly shared, however:
non-technology industries fared far less well, with some even posting declines
for the year, despite brief outperformance in April.
Many foreign markets, particularly those in Pacific/Asia and Northern Europe,
rose dramatically as well (in both dollar and local currency basis) as economic
conditions improved from the crises of 1998. Investors seeking value moved
assets overseas, particularly into the communications and technology sectors,
which were more cheaply valued than in the United States.
[triangle graphic omitted]
85.6%
NASDAQ
[triangle graphic omitted]
27.2%
DJIA
[triangle graphic omitted]
21.0%
S&P 500
o THE FEDERAL RESERVE RAISED INTEREST RATES IN JULY, AUGUST, AND NOVEMBER,
bringing the Fed Funds rate from 4.75% to 5.50%. Although the Fed assumed a
"neutral" posture after the last increase of the year, suggesting it believes
these increases will be enough to keep inflation at bay for now, many
investors and analysts believe rates will move higher as the economy's
strength continues.
[graphic of open capsule omitted]
o MERGER AND ACQUISITION ACTIVITY AMONG LARGE-CAP COMPANIES ACCELERATED IN THE
SECOND HALF OF THE YEAR, with notable combinations announced in the
communications, pharmaceuticals, media, and petroleum industries.
MAJOR MERGERS AND ACQUISITIONS ANNOUNCED IN THE SECOND HALF OF 1999
- -------------------------------------------------------------------
CBS and Viacom
- -------------------------------------------------------------------
MCI Worldcom and Sprint
- -------------------------------------------------------------------
Vodaphone AirTouch and Mannesmann
- -------------------------------------------------------------------
Elf Acquitaine and Total Fina
- -------------------------------------------------------------------
Dow Chemical and Union Carbide
- -------------------------------------------------------------------
Pharmacia and Monsanto
- -------------------------------------------------------------------
o CONSUMER SPENDING ON DURABLE GOODS ROSE, as did corporate investment in
durable equipment and software. Many analysts were concerned that growth would
turn out to have slowed in the fourth quarter, and that inventories will fall
in the first quarter of 2000 and growth will resume in the second quarter.
GROSS DOMESTIC PRODUCT
[bar graph omitted--plot points as follows:]
1996 3.7%
1997 4.5%
1998 4.3%
1999 4.0%
o THE U.S. ECONOMY CONTINUED TO EXPAND WITHOUT INFLATIONARY SIDE EFFECTS. In
spite of sharply higher energy prices, the consumer price index (CPI) rose at
an unadjusted rate of only 2.7% in 1999. Competition on the basis of price was
apparent in almost every economic sector.
[triangle graphic omitted]
2.7%
CONSUMER
PRICE INDEX
PRICE CHANGES DURING 1999 Selected components of urban CPI
[bar chart omitted--plot points as follows:]
Apparel -0.5%
Food 2.0%
Housing 2.2%
Medical Care 3.9%
Transportation 5.4%
Energy 13.4%
SOURCES: GDP, BUREAU OF ECONOMIC STATISTICS
(AS OF 1/28/00); CPI, BUREAU OF LABOR STATISTICS;
CORPORATE EARNINGS ESTIMATES, FIRST CALL.
<PAGE>
S&P 500: BEST & WORST SECTORS
[bar graph omitted--plot points as follows:]
Utilities -12.5%
Transportation -10.7%
Health Care -9.3%
Basic Materials 24.0%
Capital Goods 27.2%
Technology 74.8%
o THE STRENGTH IN EQUITY MARKETS WAS REMARKABLY NARROW: only four sectors
outperformed the overall S&P 500, with returns in the technology sector more
than triple those of its next closest rival. If technology is excluded, the
average stock on the NYSE and Nasdaq fell 24% from its 52-week high.
[GRAPHIC OF MONEY OMITTED]
o CORPORATE PROFITS CONTINUED TO ACCELERATE during the year as foreign companies
recovered from the Asian Crisis of 1998, and the U.S. economy remained strong.
The consensus among analysts is that corporate earnings of S&P 500 companies
will show 20% growth in 1999 over 1998's depressed levels. Preliminary
estimates for 2000 suggest more moderate growth of 7.5%.
o THE BOND MARKET FARED POORLY, posting a total return (as measured by the
Lehman Brothers Long Term Treasury Index of -8.7%) for the year. Year-end
yield on the benchmark 30-year U.S. Treasury bond was 6.53%. Negative factors
included the recovery of foreign markets, the continued strength of the U.S.
economy, and concern that Y2K fears would create a flood of bonds on the
market at year end, causing rates to rise in early 2000.
LOOKING AHEAD
We believe 2000 will be another positive year for stocks, but the tone will be
set by the Federal Reserve Board. We anticipate that the Fed will maintain its
neutral stance, or perhaps shift it to "tightening," in order to continue its
goals of maintaining economic expansion while deterring speculation and higher
inflation. The growth of the budget surplus also suggests generally stable
rates: when the government is a buyer rather than a seller of debt, there is a
benign effect of controlling liquidity and maturities.
We believe economic growth will continue to be healthy. The build-up of Y2K
inventories in 1999 will likely lead to a drawdown in 2000, but inventories may
stabilize in the second half of the year. Capacity utilization is 81%, so there
is room for the economy to grow without the threat of shortages (other than
labor and commodities). Productivity enhancements from new technologies and
price competition from internet-based operations and discount retailing suggest
that price increases will be minimal, at wholesale and at retail. With all this
in mind, we expect that investors will continue to favor those companies showing
sustainable unit volume growth accompanied by earnings performance.
The recovery of foreign economies could put pressure on the U.S. dollar if
investors seek higher returns overseas. However, a stabilizing of U.S. interest
rates at or near their current level, coupled with a strong economy and low
inflation, should offset this threat. A stable dollar is positive in gauging
real earnings growth in multi-national corporations whose export volume suffered
in 1999.
We believe that merger and acquisition activity will continue, particularly in
industry sectors where stock prices are high relative to earnings (or in many
cases, lack of earnings). The merger of AOL and Time Warner, announced on
January 10, 2000, has wide-ranging implications for telecommunications,
technology, and media, as internet and mainstream media combine to increase
distribution of content to consumers. Other industries that may see more mergers
include financial services and health care.
THE FUNDS
[triangle graphic omitted]
BURNHAM FUND
+32.7% CLASS A
Surging tech stocks helped the fund log its best year of the decade.
PERFORMANCE AND DISCUSSION 4
PORTFOLIO AND FINANCIALS 15
- --------------------------------------------------------------------------------
[triangle graphic omitted]
BURNHAM DOW 30[SERVICE MARK]
FOCUSED FUND
+3.2% SINCE 5/3/99 (INCEPTION)
Increasing volatility undercut the DJIA's record-setting pace.
PERFORMANCE AND DISCUSSION 6
PORTFOLIO AND FINANCIALS 20
- --------------------------------------------------------------------------------
[triangle graphic omitted]
BURNHAM FINANCIAL
SERVICES FUND
- -1.9% CLASS A SINCE 6/7/99 (INCEPTION)
Fear of rising interest rates hampered financial services stocks.
PERFORMANCE AND DISCUSSION 8
PORTFOLIO AND FINANCIALS 23
- --------------------------------------------------------------------------------
[triangle graphic omitted]
BURNHAM MONEY
MARKET FUND
+3.0%
The fund's total return for its first eight months of operation equates to an
annualized yield of 4.5%.
PERFORMANCE AND DISCUSSION 10
PORTFOLIO AND FINANCIALS 27
- --------------------------------------------------------------------------------
[triangle graphic omitted]
BURNHAM U.S. TREASURY MONEY MARKET FUND
+1.0%
The fund returned an annualized yield of 4.6% in its first quarter
since inception.
PERFORMANCE AND DISCUSSION 11
PORTFOLIO AND FINANCIALS 31
- --------------------------------------------------------------------------------
REVIEW 3
<PAGE>
INVESTMENT FOCUS
STYLE
- -------------------------------------------------
MARKET CAP VALUE BLEND GROWTH
- -------------------------------------------------
LARGE O
- -------------------------------------------------
MEDIUM
- -------------------------------------------------
SMALL
- -------------------------------------------------
TICKER SYMBOLS
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 $198.2
Net asset value per share
Class A $41.71
Class B $42.66
- --------------------------------------------------------------------------------
MAXIMUM OFFERING PRICE
Class A $43.91
- --------------------------------------------------------------------------------
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
ALL DATA AS OF DECEMBER 31, 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.
[Photo omitted--Jon Burnham]
BURNHAM FUND
"Growth stocks returned to favor during the second half of 1999, with a focus on
tech and Internet stocks. Our established positions in technology infrastructure
helped make it a very strong year for the fund."
/s/signature
JON BURNHAM
PORTFOLIO MANAGER
With 1999, the Burnham Fund recorded its strongest year of the decade, handily
outperforming both the S&P 500 and the Dow Jones Industrial Average. In
mid-December the fund's Class A net asset value reached an all-time high of
$42.10 per share.
Our outlook for 2000 is cautiously optimistic. Valuations in the market's growth
sectors, are at historically high levels. Adhering to investment disciplines in
the growth and value sector is crucial. For example, we like companies that make
new technologies part of their business model, that have visionary managements
who invest in company stock, and that appear able to sustain growth in revenue
and earnings of 15% or more for at least 5 years. We also look for "special
situations," where companies initiate a reorganization that has the potential to
enhance shareholder value.
GROWTH OF $10,000 SINCE THE FUND'S INCEPTION JUNE '75
[line graph omitted--plot points as follows:]
1975 $10,000
10,385
9,853
9,514
9,175
9,673
9,911
9,792
10,928
10,998
11,171
11,206
11,137
11,670
11,517
11,434
11,693
11,386
11,527
12,130
11,700
11,437
11,485
11,615
11,340
11,854
11,766
11,546
11,485
11,229
11,716
11,656
11,158
11,070
11,407
12,229
12,491
12,379
13,556
13,899
13,682
12,396
12,808
13,167
13,684
13,346
13,932
14,065
13,947
14,487
14,945
15,796
16,010
14,985
15,968
16,265
1980 17,758
17,622
15,526
16,286
17,277
17,829
18,641
19,143
19,798
20,594
22,509
21,777
21,074
21,202
22,273
22,177
22,741
22,193
21,658
20,551
19,647
20,953
21,766
21,220
20,904
20,375
20,375
21,047
20,740
20,464
20,188
22,122
22,325
24,649
25,502
25,928
26,532
27,129
27,563
29,090
28,910
29,595
28,701
28,750
29,262
28,899
29,500
29,067
28,898
28,077
28,145
28,536
27,394
28,241
28,343
30,463
30,463
30,776
30,724
31,166
1985 33,027
33,209
33,481
33,625
35,844
36,579
36,173
36,285
35,897
37,473
39,481
41,191
41,426
44,533
46,888
46,720
48,822
50,145
48,716
50,708
47,103
49,665
50,564
50,170
54,354
56,170
56,860
55,990
56,567
58,903
60,423
61,493
60,619
53,515
51,604
53,524
55,413
57,209
56,242
56,264
56,377
57,606
58,090
57,468
58,486
59,825
59,568
59,883
62,626
62,357
63,167
65,170
66,812
66,632
69,870
70,974
70,484
69,970
71,089
73,520
1990 70,175
70,280
71,004
69,144
72,539
72,256
72,863
69,839
69,518
69,907
71,459
72,217
72,614
75,301
76,332
76,439
78,044
75,695
77,731
79,325
79,515
81,280
79,354
85,195
85,595
86,673
84,030
85,753
85,384
84,086
87,416
87,127
88,077
87,619
89,836
91,758
91,602
93,453
94,864
93,801
95,724
96,930
97,560
100,595
101,228
100,995
98,794
100,355
101,469
99,703
95,416
96,112
96,689
95,432
97,789
100,244
99,011
100,446
98,016
98,564
1995 100,418
102,777
103,959
106,298
109,211
111,078
112,956
114,164
117,053
116,741
119,438
122,663
126,355
127,075
128,180
129,283
131,894
131,116
124,849
127,870
134,468
138,180
146,166
144,252
152,099
149,787
145,638
152,002
159,374
166,387
178,017
171,146
177,598
173,993
176,690
179,923
179,239
191,141
200,621
205,537
201,714
209,439
206,046
170,133
181,446
191,571
202,395
219,679
231,037
220,086
233,687
241,796
231,592
245,603
237,277
257,872
269,657
Dec 1999 291,553
- -------------------------------
Annualized rate of return
14.7%
An investment in Burnham Fund at
its inception in 1975 would have
grown by more than 2,815% by the
end of the report period.
- -------------------------------
* THE S&P 500 (THE "STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX") IS AN
UNMANAGED INDEX OF 500 U.S. STOCKS. WHEN MAKING PERFORMANCE COMPARISONS, KEEP IN
MIND THAT THE INDEX HAS NO MANAGEMENT FEES AND DOES NOT INCLUDE BROKERAGE COSTS
THAT WOULD BE INCURRED IN BUYING AND SELLING THE SECURITIES IN THE INDEX.
o Although value stocks enjoyed popularity during the first half of the year,
the market's attention returned to technology growth stocks during the second
half. The fund has been building positions in this sector for many years,
predominantly in the areas of internet infrastructure and
business-to-business software. These positions helped the fund in 1999, and
the fund continues to maintain a growth stock focus.
o Less dramatic, but still a factor in the fund's success, were strong returns
in other sectors, particularly in communications-related sectors, diversified
financial services and discount retail.
o The fund took new positions in several companies. Automatic Data Processing,
known for payroll processing, now has major initiatives in enabling
e-business, which should enhance their growth rate and valuation. Medtronic
is a medical equipment manufacturer (predominantly cardiac) that continues to
create new products from emerging technologies.
o The fund sold holdings in several companies: Gap, Inc., because of concern
about sales comparisons in its core business; Golf Trust of America, whose
weakening stock price and rising yield indicate dividend risk; and Daimler
Chrysler, which has leveling sales growth and management dislocation.
4 BURNHAM FUND
<PAGE>
PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
ASSET ALLOCATION
[pie chart omitted--plot points as follows:]
Convertible preferred stocks 1%
Cash & cash equivalents 3%
Corporate bonds and convertible bonds 2%
Common stocks 94%
The fund seeks capital appreciation, mainly long-term. Income is generally of
lesser importance.
% NET
TOP 10 INDUSTRIES ASSETS
- -------------------------------------------------------------------------------
Computer Products & Software 31.8%
- -------------------------------------------------------------------------------
Banking 9.5%
- -------------------------------------------------------------------------------
Energy - Oil &Gas 7.7%
- -------------------------------------------------------------------------------
Pharmaceuticals 5.7%
- -------------------------------------------------------------------------------
Telecommunication Networks & Services 4.4%
- -------------------------------------------------------------------------------
Telecommunications Equipment 4.1%
- -------------------------------------------------------------------------------
Diversified Financial Services 3.4%
- -------------------------------------------------------------------------------
Semiconductors 3.3%
- -------------------------------------------------------------------------------
Consumer Products 3.1%
- -------------------------------------------------------------------------------
Real Estate Investment Trusts 2.9%
===============================================================================
75.9%
===============================================================================
% NET
TOP 10 PORTFOLIO HOLDINGS ASSETS
- -------------------------------------------------------------------------------
Siebel Systems, Inc. 10.2%
- -------------------------------------------------------------------------------
Cisco Systems Inc. 5.4%
- -------------------------------------------------------------------------------
Citigroup, Inc. 5.0%
- -------------------------------------------------------------------------------
Microsoft Corp. 5.0%
- -------------------------------------------------------------------------------
Exxon Mobil Corp. 4.2%
- -------------------------------------------------------------------------------
American Express Co. 3.4%
- -------------------------------------------------------------------------------
Intel Corp. 3.3%
- -------------------------------------------------------------------------------
IBM 3.3%
- -------------------------------------------------------------------------------
General Electric Co. 3.1%
- -------------------------------------------------------------------------------
Lucent Technologies 3.0%
===============================================================================
45.9%
===============================================================================
TOTAL RETURN
- --------------------------------------------------------------------------------
GROWTH OF $10,000 OVER TEN YEARS*
[line graph omitted--plot points as follows:]
BURNHAM FUND BURNHAM FUND
with sales charge without sales charge S&P 500 Index
Dec-89 $9,500 $10,000.00 $10,000.00
9,067.75 9,545.00 9,329.00
9,081.35 9,559.32 9,449.34
9,174.89 9,657.78 9,699.75
8,934.51 9,404.74 9,457.26
9,373.19 9,866.52 10,379.30
9,336.64 9,828.04 10,308.80
9,415.06 9,910.59 10,275.80
9,024.34 9,499.30 9,346.84
8,982.83 9,455.61 8,891.65
9,033.13 9,508.56 8,853.42
9,233.67 9,719.65 9,425.35
9,331.54 9,822.68 9,688.32
9,382.87 9,876.70 10,110.70
9,730.03 10,242.10 10,833.60
9,863.33 10,382.50 11,095.80
9,877.14 10,397.00 11,122.50
10,084.60 10,615.30 11,601.80
9,781.02 10,295.80 11,070.50
10,044.10 10,572.80 11,586.30
10,250.00 10,789.50 11,860.90
10,274.60 10,815.40 11,662.90
10,502.70 11,055.50 11,819.10
10,253.80 10,793.50 11,342.80
11,008.50 11,587.90 12,640.50
11,060.20 11,642.40 12,405.30
11,199.60 11,789.00 12,566.60
10,858.00 11,429.50 12,321.60
11,080.60 11,663.80 12,683.80
11,033.00 11,613.60 12,746.00
10,865.20 11,437.10 12,556.00
11,295.50 11,890.00 13,065.80
11,258.20 11,850.80 12,798.00
11,381.00 11,980.00 12,949.00
11,321.80 11,917.60 12,993.00
11,608.20 12,219.20 13,436.10
11,856.60 12,480.70 13,601.40
11,836.50 12,459.40 13,715.60
12,075.60 12,711.10 13,904.90
12,257.90 12,903.10 14,198.30
12,120.60 12,758.50 13,854.70
12,369.10 13,020.10 14,224.60
12,524.90 13,184.10 14,265.80
12,606.40 13,269.90 14,208.80
12,998.40 13,682.50 14,747.30
13,080.30 13,768.70 14,633.70
13,050.20 13,737.10 14,936.60
12,765.70 13,437.60 14,794.80
12,967.40 13,649.90 14,973.80
13,111.40 13,801.40 15,482.90
12,883.20 13,561.30 15,063.30
12,329.20 12,978.10 14,406.50
12,419.20 13,072.90 14,590.90
12,493.80 13,151.30 14,830.20
12,331.30 12,980.40 14,466.90
12,635.90 13,301.00 14,941.40
12,953.10 13,634.80 15,554.00
12,793.80 13,467.10 15,172.90
12,979.30 13,662.40 15,514.30
12,665.20 13,331.80 14,949.60
Dec-94 12,736.10 13,406.40 15,170.90
12,975.50 13,658.50 15,563.80
13,280.50 13,979.40 16,170.80
13,433.20 14,140.20 16,647.80
13,735.40 14,458.40 17,137.20
14,111.80 14,854.50 17,822.70
14,353.10 15,108.50 18,236.20
14,595.70 15,363.90 18,841.70
14,751.80 15,528.30 18,888.80
15,125.10 15,921.10 19,685.90
15,084.80 15,878.70 19,615.00
15,433.30 16,245.50 20,476.10
15,850.00 16,684.20 20,871.30
16,327.00 17,186.40 21,580.90
16,420.10 17,284.30 21,781.60
16,563.00 17,434.70 21,990.70
16,705.40 17,584.60 22,314.00
17,042.80 17,939.80 22,889.70
16,942.30 17,834.00 22,976.70
16,132.50 16,981.50 21,961.10
16,522.90 17,392.50 22,424.50
17,375.40 18,289.90 23,687.00
17,855.00 18,794.70 24,340.70
18,887.00 19,881.10 26,180.90
18,639.60 19,620.60 25,662.50
19,653.60 20,688.00 27,266.40
19,354.90 20,373.50 27,479.10
18,818.70 19,809.20 26,349.70
19,641.10 20,674.80 27,922.80
20,593.70 21,677.60 29,623.30
21,499.80 22,631.40 30,950.40
23,002.70 24,213.30 33,414.10
22,114.80 23,278.70 31,542.90
22,948.50 24,156.30 33,271.40
22,482.60 23,665.90 32,160.20
22,831.10 24,032.80 33,649.20
23,248.90 24,472.50 34,227.90
23,160.60 24,379.60 34,607.90
24,698.40 25,998.40 37,103.10
25,923.50 27,287.90 39,002.80
26,558.60 27,956.40 39,396.70
26,064.60 27,436.40 38,719.10
27,062.90 28,487.30 40,291.10
26,624.50 28,025.80 39,864.00
21,983.80 23,140.90 34,099.70
23,445.80 24,679.70 36,285.40
24,754.00 26,056.90 39,235.40
26,152.60 27,529.10 41,613.10
28,386.10 29,880.10 44,010.00
29,853.60 31,424.90 45,849.70
28,438.60 29,935.30 44,423.70
30,196.10 31,785.30 46,200.70
31,243.90 32,888.30 47,988.70
29,925.40 31,500.40 46,856.10
31,735.90 33,406.20 49,456.60
30,844.10 32,467.50 47,913.60
31,168.00 32,808.40 47,674.00
30,659.90 32,273.60 46,367.80
33,321.20 35,074.90 49,302.80
34,844.00 36,677.90 50,244.50
Dec-99 37,673.30 39,656.10 53,203.90
WITH NO WITH MAX.
AVERAGE SALES CHARGE SALES CHARGE
ANNUAL RETURN OR CDSC OR CDSC
- -------------------------------------------------------------------------------
CLASS A
- -------------------------------------------------------------------------------
One year 32.7% 26.1%
- -------------------------------------------------------------------------------
Three years 26.4% 24.3%
- -------------------------------------------------------------------------------
Five years 24.2% 22.9%
- -------------------------------------------------------------------------------
Ten years 14.8% 14.2%
- -------------------------------------------------------------------------------
Fifteen years 16.1% 15.7%
- -------------------------------------------------------------------------------
Twenty years 15.5% 15.2%
- -------------------------------------------------------------------------------
Since inception 14.7% 14.5%
- -------------------------------------------------------------------------------
CLASS B
- -------------------------------------------------------------------------------
One year 31.6% 27.6%
- -------------------------------------------------------------------------------
Three years 25.4% 24.7%
- -------------------------------------------------------------------------------
Five years 23.4% 23.3%
- -------------------------------------------------------------------------------
Since inception 17.8% 17.7%
- -------------------------------------------------------------------------------
WITH NO WITH MAX.
CUMULATIVE SALES CHARGE SALES CHARGE
RETURN OR CDSC OR CDSC
- -------------------------------------------------------------------------------
CLASS A
- -------------------------------------------------------------------------------
One year 32.7% 26.1%
- -------------------------------------------------------------------------------
Three years 102.1% 92.0%
- -------------------------------------------------------------------------------
Five years 195.8% 181.0%
- -------------------------------------------------------------------------------
Ten years 296.6% 276.7%
- -------------------------------------------------------------------------------
Fifteen years 835.5% 788.7%
- -------------------------------------------------------------------------------
Twenty years 1,692.5% 1,602.9%
- -------------------------------------------------------------------------------
Since inception 2,815.8% 2,669.8%
- -------------------------------------------------------------------------------
CLASS B
- -------------------------------------------------------------------------------
One year 31.6% 27.6%
- -------------------------------------------------------------------------------
Three years 97.1% 94.1%
- -------------------------------------------------------------------------------
Five years 185.6% 184.6%
- -------------------------------------------------------------------------------
Since inception 174.3% 173.3%
- -------------------------------------------------------------------------------
PERFORMANCE OVER
THE PAST 12 MONTHS
[triangle graphic omitted]
32.7%
CLASS A
[triangle graphic omitted]
21.0%
MARKET
[triangle graphic omitted]
19.5%
PEER GROUP
THE FUND posted strong performance relative to the overall stock market.
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 investment
style.
- -------------------------------------------------------------------------------
PERFORMANCE OVER REPORT PERIOD
[line graph omitted--plot points as follows:]
BURNHAM FUND S&P 500 INDEX
Jan-99 5.1700000% 4.1800000%
Feb-99 0.1849420% 0.9400020%
Mar-99 6.3763714% 4.9776021%
Apr-99 10.0676315% 9.0402353%
May-99 5.4227775% 6.4668857%
Jun-99 11.8008555% 12.3757979%
Jul-99 8.6592515% 8.8696730%
Aug-99 9.8001736% 8.3253246%
Sep-99 8.0104308% 5.3572107%
Oct-99 17.3857362% 12.0263222%
Nov-99 22.7502643% 14.1660249%
Dec-99 32.7175858% 20.8904038%
MODERN PORTFOLIO THEORY STATISTICS
three year range
- ----------------------------------
Beta 1.02
- ----------------------------------
R(2) 90
- ----------------------------------
Alpha -1.04
- ----------------------------------
Standard Deviation 22.37
- ----------------------------------
Sharpe Ratio 1.07
- ----------------------------------
FOR EXPLANATION OF THESE MODERN PORTFOLIO THEORY STATISTICS TERMS, TURN TO THE
INSIDE BACK COVER.
BURNHAM FUND 5
<PAGE>
INVESTMENT FOCUS
STYLE
- -------------------------------------------------
MARKET CAP VALUE BLEND GROWTH
- -------------------------------------------------
LARGE O
- -------------------------------------------------
MEDIUM
- -------------------------------------------------
SMALL
- -------------------------------------------------
TICKER SYMBOLS N/A
- ----------------------------------------------------------
PORTFOLIO MANAGER
David Leibowitz
Since inception
- ----------------------------------------------------------
MINIMUM INVESTMENT
Regular accounts $1,000
IRAs None
- ----------------------------------------------------------
ASSET VALUES
Net assets, in millions $0.5
Net asset value per share $10.27
- ----------------------------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement 1.2%
- ----------------------------------------------------------
INCEPTION
May 3, 1999
ALL DATA AS OF DECEMBER 31, 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[SERVICE MARK] FOCUSED FUND
[photo of David Leibowitz omitted]
"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/signature
DAVID LEIBOWITZ
PORTFOLIO MANAGER
The Burnham Dow 30 Focused Fund ended the year up 3.22% since its inception on
May 3, 1999. This performance was somewhat lower than the fund's benchmark DJIA
Index, which rose 5.4% during the same period.
We expect the year 2000 to offer challenges and opportunities, in nearly equal
measure. While the Dow continues to record new highs, it has been showing
increased volatility, and the valuations of stocks in general are at historic
levels. We are also concerned that more stocks are posting new lows than new
highs, and that the advance/decline ratios are less than buoyant. There is
widespread opinion that the Federal Reserve Open Market Committee will raise
rates further as the economy shows continued strength. If this is correct, it is
more likely to occur early in the year, rather than when the Presidential
campaign shifts into high gear.
The overriding concern is that one more quarter point rate increase is not all
that the Fed has in mind. Some prognosticators think that two or three such
events may occur. If that proves to be true, the market may be in for a rough
period.
On the positive side, these situations have created some buying opportunities,
and may create others going forward. We have already used some of these
opportunities to overweight certain stocks, and plan to overweight other stocks
should they fall to prices we have targeted.
o At the end of the year, the fund was 93.2% invested. Because of its limited
size, most of the investments in the portfolio were in the DIAMONDS trust, a
publicly traded unit investment trust that owns stocks of the Dow Jones
Industrial Average in the same proportion they are represented in the average.
o The editors of the WALL STREET JOURNAL changed the composition of the DJIA in
October. Dropped from the index were Chevron, Goodyear, Union Carbide (which
is being acquired by Dow Chemical), and Sears Roebuck. Stocks added were
Microsoft, Intel, SBC Communications, and Home Depot.
o The fund responded to the changes in the Dow's composition by increasing its
positions in the companies the index dropped. As of the end of 1999, these
positions represented some 20.11% of the fund's net assets. The
underperformance of these positions was a major factor in the fund's
performance relative to its benchmark.
6 DOW 30[SERVICE MARK] FOCUSED FUND
<PAGE>
PORTFOLIO INVESTMENTS
- -------------------------------------------------------------------------------
DJIA COMPONENTS AND WEIGHTINGS
- -------------------------------------------------------------------------------
American Express Co. 7.18%
- -------------------------------------------------------------------------------
General Electric Co. 6.68%
- -------------------------------------------------------------------------------
Morgan (J.P.) & Co. 5.47%
- -------------------------------------------------------------------------------
Microsoft Corp. 5.04%
- -------------------------------------------------------------------------------
Hewlett-Packard Co. 4.92%
- -------------------------------------------------------------------------------
Proctor & Gamble Co. 4.73%
- -------------------------------------------------------------------------------
International Business Machines Corp. 4.66%
- -------------------------------------------------------------------------------
Minnesota Mining & Manufacturing Co. 4.23%
- -------------------------------------------------------------------------------
Johnson & Johnson 4.02%
- -------------------------------------------------------------------------------
ALCOA Inc. 3.58%
- -------------------------------------------------------------------------------
Intel Corp. 3.56%
- -------------------------------------------------------------------------------
Exxon Mobil Corp. 3.48%
- -------------------------------------------------------------------------------
General Motors Corp. 3.14%
- -------------------------------------------------------------------------------
Wal-Mart Stores Inc. 2.98%
- -------------------------------------------------------------------------------
Home Depot Inc. 2.96%
- -------------------------------------------------------------------------------
Merck & Co. 2.90%
- -------------------------------------------------------------------------------
Eastman Kodak Co. 2.86%
- -------------------------------------------------------------------------------
DuPont (E.I.) De Nemours & Co. 2.84%
- -------------------------------------------------------------------------------
United Technologies 2.81%
- -------------------------------------------------------------------------------
Coca-Cola Co., The 2.52%
- -------------------------------------------------------------------------------
Honeywell International Inc. 2.49%
- -------------------------------------------------------------------------------
International Paper Co. 2.44%
- -------------------------------------------------------------------------------
Citigroup Inc. 2.40%
- -------------------------------------------------------------------------------
AT&T Corp. 2.19%
- -------------------------------------------------------------------------------
SBCCommunications 2.10%
- -------------------------------------------------------------------------------
Caterpillar Inc. 2.03%
- -------------------------------------------------------------------------------
Boeing Co., The 1.79%
- -------------------------------------------------------------------------------
MacDonald's Corp. 1.74%
- -------------------------------------------------------------------------------
Disney (Walt) Co. 1.26%
- -------------------------------------------------------------------------------
Morris (Philip) Cos. 1.00%
- -------------------------------------------------------------------------------
The fund seeks capital appreciation.
ASSET ALLOCATION
[pie chart omitted--plot points as follows:]
Common stocks 93%
Cash & cash equivalents 7%
% NET
TOP INDUSTRIES ASSETS
- -------------------------------------------------------------------------------
Technology 15.1%
- -------------------------------------------------------------------------------
Basic Materials 12.8%
- -------------------------------------------------------------------------------
Financial Services 11.0%
- -------------------------------------------------------------------------------
Energy 10.8%
- -------------------------------------------------------------------------------
Conglomerates 10.0%
- -------------------------------------------------------------------------------
Retail Stores 7.2%
- -------------------------------------------------------------------------------
Consumer/Cyclicals 7.1%
- -------------------------------------------------------------------------------
Consumer/Non-Cyclicals 6.0%
- -------------------------------------------------------------------------------
Healthcare 5.1%
- -------------------------------------------------------------------------------
Communications Services 3.1%
- -------------------------------------------------------------------------------
Capital Goods 2.8%
- -------------------------------------------------------------------------------
Services 2.2%
================================================================================
93.2%
================================================================================
% NET
TOP PORTFOLIO HOLDINGS ASSETS
- -------------------------------------------------------------------------------
DIAMONDS Trust, Series 1* 73.1%
- -------------------------------------------------------------------------------
Chevron Corp. 8.2%
- -------------------------------------------------------------------------------
Union Carbide Co. 6.3%
- -------------------------------------------------------------------------------
Sears, Roebuck & Co. 2.9%
- -------------------------------------------------------------------------------
Goodyear Tire & Rubber Co 2.7%
================================================================================
93.2%
================================================================================
TOTAL RETURN
- -------------------------------------------------------------------------------
GROWTH OF $10,000 SINCE INCEPTION**
[line graph omitted--plot points as follows:]
BURNHAM DOW 30[SERVICE MARK]
FOCUSED FUND DJIA Index
5/3/99 $10,000.00 $10,000.00
May-99 9,680.00 9,604.00
Jun-99 10,060.40 9,993.92
Jul-99 9,760.62 9,723.09
Aug-99 9,940.22 9,898.10
Sep-99 9,550.56 9,464.57
Oct-99 9,881.01 9,840.31
Nov-99 9,900.77 9,992.83
Dec-99 10,322.50 10,578.40
AVERAGE ANNUAL RETURN
- ----------------------------------------------------
Since inception*** N/A
- ----------------------------------------------------
DJIA*** N/A
- ----------------------------------------------------
CUMULATIVE RETURN
- ----------------------------------------------------
Since inception 3.2%
- ----------------------------------------------------
DJIA 5.4%
- ----------------------------------------------------
*** ANNUALIZED RETURNS ARE NOT LISTED FOR PERIODS UNDER ONE YEAR.
PERFORMANCE
SINCE INCEPTION
[triangle graphic omitted]
3.2%
FUND
[triangle graphic omitted]
5.4%
DJIA[SERVICE MARK]
[triangle graphic omitted]
-1.6%
PEER GROUP
THE FUND lagged its benchmark but fared better than the average for its peer
group.
The Dow Jones Industrial Average is an unmanaged average of the prices of 30
large-cap stocks.
The peer group is represented by the Morningstar Large Cap Value investment
style.
- --------------------------------------------------------------------------------
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 DJIA 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 AN INDEX, THE DJIA IS WEIGHTED BY SHARE PRICE
RATHER THAN MARKET CAPITALIZATION, SO STOCKS WITH HIGHER PRICES PER SHARE
HAVE PROPORTIONALLY MORE EMPHASIS THAN STOCKS WITH LOWER PRICES PER SHARE.
THE 30 COMPANIES IN THE DJIA ARE LEADERS IN THEIR RESPECTIVE INDUSTRIES AND
THEIR STOCKS ARE WIDELY HELD.
WHEN MAKING PERFORMANCE COMPARISONS, KEEP IN MIND THAT THE INDEX HAS NO
MANAGEMENT FEES AND DOES NOT INCLUDE BROKERAGE COSTS THAT WOULD BE INCURRED
IN BUYING AND SELLING THE SECURITIES IN THE INDEX.
"DOW JONES[SERVICE MARK]," "DOW JONES INDUSTRIAL AVERAGE[SERVICE MARK]" AND
"DJIA[SERVICE MARK]" AND "DOW 30[SERVICE MARK]" ARE SERVICE MARKS OF DOW
JONES AND COMPANY, INC. DOW JONES HAS NO RELATIONSHIP TO BURNHAM DOW
30[SERVICE MARK] FOCUSED FUND OR ITS DISTRIBUTOR, OTHER THAN LICENSING OF THE
DOW JONES INDUSTRIAL AVERAGE (DJIA) AND ITS SERVICE MARKS TO THE DISTRIBUTOR
TO USE IN CONNECTION WITH THE FUND.
DOW 30[SERVICE MARK] FOCUSED FUND 7
<PAGE>
INVESTMENT FOCUS
STYLE
- -------------------------------------------------
MARKET CAP VALUE BLEND GROWTH
- -------------------------------------------------
LARGE
- -------------------------------------------------
MEDIUM O
- -------------------------------------------------
SMALL
- -------------------------------------------------
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 $3.0
Net asset value per share
Class A $9.79
Class B $9.75
- -------------------------------------------------
MAXIMUM OFFERING PRICE
Class A $10.31
- -------------------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement
Class A 1.6%
Class B 2.3%
- -------------------------------------------------
INCEPTION
Both classes June 7, 1999
ALL DATA AS OF DECEMBER 31, 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 PERFORMANCE
WILL DIFFER. PAST PERFORMANCE ISN'T A PREDICTION OF FUTURE PERFORMANCE. READ THE
PROSPECTUS BEFORE INVESTING.
BURNHAM
FINANCIAL SERVICES FUND
[photo of Anton Schutz omitted]
"Our value bias attracts us to strong-performing companies with low
price-to-earnings multiples. We continue to believe that this will be a
rewarding long-term strategy."
/s/signature
ANTON SCHUTZ
PORTFOLIO MANAGER
In the world of financial services stocks, 1999 was another year where the rich
got richer and the poor got poorer: stocks that were already expensive (in terms
of high price-to-earnings ratios) fared better than those that were less
expensive. After a strong first half of the year, financials retreated in the
latter half of the year, leaving the fund slightly in negative territory for the
year.
o A major factor in the sector's poor performance was the lingering fear of
rising interest rates. This fear typically causes investors to avoid financial
services stocks, although the historical rationale no longer applies, because
many banks today use hedging structures that limit the effect of rate swings
on their earnings.
[bar graph omitted--plot points as follows:]
Class A Shares -1.9%
Class B Shares -2.5%
o As the fear of global economic distress eased, the US financial services
sector began to settle down. Banks gained confidence that the economy would
remain stable, leading to increased merger activity. Many of our positions
were involved in deals throughout the year.
- Peoples Heritage acquired Banknorth, creating a dominant market share in an
area spanning from Maine to New York.
- In Massachusetts, UST Corp accepted an all-cash offer from Citizens, a
subsidiary of the Royal Bank of Scotland.
- In Connecticut, Webster Financial acquired New England Community Bancorp and
MECH Financial (one of our largest positions). Sovereign Bancorp purchased
branches and operations that were divested in the Fleet/BankBoston merger.
Also, Dime Bancorp and Hudson United have agreed to merge, forming a $30
billion super-regional bank stretching from Philadelphia to Hartford.
o Fund managers increasingly preferred technology stocks over financial stocks,
as is clear by comparing the Nasdaq Financial Index with the Nasdaq Composite.
[bar graph omitted--plot points as follows:]
First Half of 1999
- --------------------------------
Nasdaq Composite Index
12.7%
Nasdaq Financial Index
4.5%
Second Half of 1999
- --------------------------------
Nasdaq Composite Index
64.7%
Nasdaq Financial Index
- -14.8%
o Congress passed the long-awaited HR10 legislation, opening the door for
companies throughout the spectrum of financial services organizations to
merge.
o The year 2000 will be the last year in which the pooling accounting method can
be used. This may push some companies to announce deals soon, in order to take
advantage of this method.
o Another factor encouraging mergers is the frustration of company managements,
who have worked hard to achieve growth, only to see stock prices fall. This
may prompt some share buybacks, but also may cause managements to be more
willing to sell, especially if there is a substantial premium involved, as in
Charles Schwab's purchase of US Trust.
o A virtually trouble-free Y2K transition removed what had been a considerable
weight from the shoulders of this sector.
8 FINANCIAL SERVICES FUND
<PAGE>
PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
ASSET ALLOCATION
[pie chart omitted--plot points as follows:]
Common stocks 98%
Cash & cash equivalents 2%
The fund seeks capital appreciation.
%NET
TOP INDUSTRIES ASSETS
- -------------------------------------------------------------------------------
Banks -- Regionals 29.2%
- -------------------------------------------------------------------------------
Savings & Loan Companies --
Major Regionals 24.9%
- -------------------------------------------------------------------------------
Savings & Loan Companies-- Regional 24.1%
- -------------------------------------------------------------------------------
Insurance Companies 7.8%
- -------------------------------------------------------------------------------
Diversified Financial Services 4.1%
- -------------------------------------------------------------------------------
Banks -- Major Regionals 3.5%
- -------------------------------------------------------------------------------
Consumer Finance 2.6%
- -------------------------------------------------------------------------------
Investment Banking/Brokerage 1.9%
===============================================================================
98.1%
===============================================================================
% NET
TOP PORTFOLIO HOLDINGS ASSETS
- -------------------------------------------------------------------------------
MECH Financial Inc. 6.9%
- -------------------------------------------------------------------------------
Roslyn Bancorp Inc. 6.1%
- -------------------------------------------------------------------------------
Dime Bancorp, Inc. 6.0%
- -------------------------------------------------------------------------------
Richmond Count Financial Corp. 5.9%
- -------------------------------------------------------------------------------
AMCORE Financial, Inc. 5.5%
- -------------------------------------------------------------------------------
People's Heritage Financial Group 4.9%
- -------------------------------------------------------------------------------
First Essex Bancorp Inc. 4.7%
- -------------------------------------------------------------------------------
Pacific Crest Capital, Inc. 3.4%
- -------------------------------------------------------------------------------
Premier National Bancorp 3.0%
- -------------------------------------------------------------------------------
Chittenden Corp. 2.9%
===============================================================================
49.3%
===============================================================================
TOTAL RETURN
- -------------------------------------------------------------------------------
GROWTH OF $10,000 SINCE INCEPTION*
[LINE GRAPH OMITTED--PLOT POINTS AS FOLLOWS:]
<TABLE>
<CAPTION>
BURNHAM FINANCIAL SERVICES BURNHAM FINANCIAL SERVICES
FUND without sales charge with sales charge NASDAQ 100 Financial Index
<S> <C> <C> <C>
6/7/99 $10,000.00 $9,500.00 $10,000.00
Jun-99 10,510.00 9,984.50 10,010.00
Jul-99 10,379.70 9,860.69 9,351.34
Aug-99 9,900.13 9,405.13 8,783.72
Sep-99 9,780.34 9,291.33 8,387.57
Oct-99 10,450.30 9,927.78 9,070.32
Nov-99 10,280.00 9,765.96 9,046.74
Dec-99 9,810.16 9,319.65 8,723.77
</TABLE>
WITH NO WITH MAX.
AVERAGE SALES CHARGE SALES CHARGE
ANNUAL RETURN OR CDSC OR CDSC
- --------------------------------------------------------
CLASS A
- --------------------------------------------------------
Since inception** N/A N/A
- --------------------------------------------------------
CLASS B
- --------------------------------------------------------
Since inception** N/A N/A
- --------------------------------------------------------
WITH NO WITH MAX.
CUMULATIVE SALES CHARGE SALES CHARGE
RETURN OR CDSC OR CDSC
- --------------------------------------------------------
CLASS A
- --------------------------------------------------------
Since inception (1.9%) (6.9%)
- --------------------------------------------------------
CLASS B
- --------------------------------------------------------
Since inception (2.5%) (7.5%)
- --------------------------------------------------------
* WHEN MAKING PERFORMANCE COMPARISONS, KEEP IN MIND THAT THE INDEX HAS NO
MANAGEMENT FEES AND DOES NOT INCLUDE BROKERAGE COSTS THAT WOULD BE INCURRED
IN BUYING AND SELLING THE SECURITIES IN THE INDEX.
** ANNUALIZED RETURNS ARE NOT LISTED FOR PERIODS UNDER ONE YEAR.
PERFORMANCE
SINCE INCEPTION
[triangle graphic omitted]
-1.9%
CLASS A
[triangle graphic omitted]
-12.8%
SECTOR
[triangle graphic omitted]
-8.3%
PEER GROUP
THE FUND posted a small negative return for the period but remained well ahead
of its sector and its peers.
The sector is represented by the Nasdaq 100 Financial Index, an unmanaged index
of the 100 largest financial companies traded on the Nasdaq market system and
the Nasdaq small cap market.*
The peer group is represented by the Morningstar Specialty - Financial
investment style.
- --------------------------------------------------------------------------------
MODERN PORTFOLIO THEORY STATISTICS
These statistics will be available when the fund has been in operation for at
least three years.
PERFORMANCE RETURNS ARE CALCULATED FOR THE PERIOD JULY 1, 1999 TO DECEMBER 31,
1999.
FINANCIAL SERVICES FUND 9
<PAGE>
TICKER SYMBOLS BURXX
- ------------------------------------------------------
PORTFOLIO MANAGER
Reich & Tang Asset Management L.P.
Since inception
- ------------------------------------------------------
MINIMUM INVESTMENT
Regular accounts $1,000
IRAs None
- ------------------------------------------------------
ASSET VALUES
Net assets, in millions $32.9
Net asset value per share $1.00
- ------------------------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement 0.9%
- ------------------------------------------------------
INCEPTION May 3, 1999
ALL DATA AS OF DECEMBER 31, 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
The fund seeks maximum current income that is consistent with maintaining
liquidity and preserving capital.
PORTFOLIO INVESTMENTS
- --------------------------------------------------------------------------------
ASSET ALLOCATION BY MATURITY
[line graph omitted--plot points as follows:]
4-30 days 10.6%
31-89 days 16.8%
180-397 days 33.5%
90-180 days 9.2%
Overnight-3 days 29.9%
ASSET ALLOCATION BY TYPE
[line graph omitted--plot points as follows:]
Taxable municipal commercial paper 3.0%
Interest-bearing commercial paper 3.0%
Medium term notes 3.0%
Floating rate notes 3.0%
Taxable municipal notes 4.6%
Discounted commercial paper 10.6%
Letter of credit commercial paper 15.0%
Variable rate demand 27.6%
Cash & cash equivalents 0.4%
Overnight repurchase agreements 29.8%
YIELD AND TOTAL RETURN
- -------------------------------------------
YIELD AND MATURITY
- -------------------------------------------
Daily yield 4.11%
- -------------------------------------------
7-day effective yield 4.96%
- -------------------------------------------
30-day effective yield 5.12%
- -------------------------------------------
Weighted average days to maturity 31
AVERAGE ANNUAL RETURN
- -------------------------------------------
Since inception 4.5%
- -------------------------------------------
CUMULATIVE RETURN
- -------------------------------------------
Since inception 3.0%
- -------------------------------------------
10 MONEY MARKET FUND
<PAGE>
TICKER SYMBOLS BUTXX
- -------------------------------------------
PORTFOLIO MANAGER
Reich & Tang Asset Management L.P.
Since inception
- -------------------------------------------
MINIMUM INVESTMENT
Regular accounts $1,000
IRAs None
- -------------------------------------------
ASSET VALUES
Net assets, in millions $83.4
Net asset value per share $1.00
- -------------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement 0.8%
- -------------------------------------------
INCEPTION October 13, 1999
ALL DATA AS OF DECEMBER 31, 1999. PERFORMANCE INFORMATION ASSUMES ALL
DISTRIBUTIONS WERE REINVESTED. PAST PERFORMANCE ISN'T A PREDICTION OF FUTURE
PERFORMANCE. READ THE PROSPECTUS BEFORE INVESTING.
BURNHAM
U.S. TREASURY MONEY
MARKET FUND
The fund seeks maximum current income that is consistent with maintaining
liquidity and preserving capital.
PORTFOLIO INVESTMENTS
- -------------------------------------------
ASSET ALLOCATION BY MATURITY
[pie chart omitted--plot points as follows:]
4-30 days 17.9%
Over 180 days 6.0%
Overnight-3 days 76.1%
ASSET ALLOCATION BY TYPE
[pie chart omitted--plot points as follows:]
U.S. government & agencies 24.0%
Repurchase agreements 76.0%
YIELD AND TOTAL RETURN
- -------------------------------------------
YIELD AND MATURITY
- -------------------------------------------
Daily yield 3.91%
- -------------------------------------------
7-day effective yield 4.49%
- -------------------------------------------
30-day effective yield 4.77%
- -------------------------------------------
Weighted average days to maturity 25
AVERAGE ANNUAL RETURN
- -------------------------------------------
Since inception 4.6%
- -------------------------------------------
CUMULATIVE RETURN
- -------------------------------------------
Since inception 1.0%
- -------------------------------------------
U.S. TREASURY MONEY MARKET FUND 11
<PAGE>
THE FINANCIAL
PAGES
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 twelve 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 financial statements: 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.
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 1975 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:
O 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)
BURNHAM U.S. TREASURY MONEY MARKET FUND
(no redemption fee)
O 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 its 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.
Burnham Money Market Fund and Burnham U.S. Treasury Money Market Fund expect 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 the money market
funds, which are not designed to generate capital gains, each fund expects to
declare and pay distributions from net realized capital gains once a year.
12 FINANCIAL PAGES
<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
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
and the Burnham U.S. Treasury Money Market Fund value them at amortized
cost 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 U.S.
Government 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 at least 102% of the amount owed to
a fund under the related repurchase agreement. In the event of
counterparty default, a fund has the right to use the collateral to
offset losses incurred. There is potential loss in the event a fund is
delayed or prevented from exercising its right to dispose of the
collateral securities, including the risk of a possible decline in the
value of the underlying securities during the period while the fund
seeks to assert its rights.
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 fund subsequently marks-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.
Whenever a fund is unable to determine the value of 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.
AFFILIATED PARTIES
Certain trustees and officers of the trust may also be trustees, officers and/or
employees of the Adviser, Administrator or Distributor. The trust paid only
trustees not currently affiliated with the trust. None of the trusts' officers
received any compensation from the trust.
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.
FINANCIAL PAGES 13
<PAGE>s
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 period (in this case, December 31,
1999). The financials appear on a fund-by-fund basis, with the funds in the same
order as in the performance discussions earlier in this report. Keep in mind
that as with most financial statements, management has had to make certain
estimates and assumptions in preparing its figures, so the actual figures for a
fund's assets, liabilities, income, and other items may differ from 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.
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 affect 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 and excluding all sales charges.
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 THE TWO MONEY MARKET FUNDS, 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.
14 FINANCIAL PAGES
<PAGE>
BURNHAM FUND
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
O INDICATES SECURITIES THAT DO NUMBER MARKET
NOT PRODUCE INCOME. OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS 94.06%
CONSUMER DISCRETIONARY 3.12%
CONSUMER PRODUCTS 3.12%
General Electric Co. 40,000 $ 6,190,000
-----------
TOTAL CONSUMER DISCRETIONARY (COST: $1,718,475) 6,190,000
-----------
CONSUMER DURABLES 2.70%
AUTOMOTIVE 2.70%
Ford Motor Co. 100,000 5,343,750
-----------
TOTAL CONSUMER DURABLES (COST: $3,979,892) 5,343,750
-----------
CONSUMER STAPLES 1.86%
FOOD AND BEVERAGE PRODUCTS 1.55%
o American Italian
Pasta Co., Class A 100,000 3,075,000
-----------
PERSONAL CARE PRODUCTS 0.31%
Gillette Co. 15,000 617,812
-----------
TOTAL CONSUMER STAPLES (COST: $3,017,965) 3,692,812
-----------
ENERGY 8.76%
OIL & GAS REFINING 7.68%
BP Amoco PLC 60,000 3,558,750
Exxon Mobil Corp. 102,806 8,282,308
Royal Dutch Petroleum Co. 20,000 1,208,750
Texaco, Inc. 40,000 2,172,500
-----------
15,222,308
-----------
OIL DRILLING 1.08%
Diamond Offshore Drilling, Inc. 70,000 2,139,375
-----------
TOTAL ENERGY (COST: $9,211,618) 17,361,683
-----------
FINANCIAL 18.30%
BANKING 9.45%
Bank of New York Co., Inc. 125,000 5,000,000
Chase Manhattan Corp. 30,000 2,330,625
Citigroup, Inc. 180,000 10,001,250
Fleet Boston Financial Corp. 40,000 1,392,500
-----------
18,724,375
-----------
DIVERSIFIED FINANCIAL SERVICES 3.36%
American Express Co. 40,000 6,650,000
-----------
INSURANCE 1.36%
American International Group, Inc. 25,000 2,703,125
-----------
INVESTMENT BANKING / BROKERAGE 1.19%
Goldman Sachs Group Inc. 25,000 2,354,687
-----------
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUST 2.94%
Charles E. Smith
Residential Realty 30,000 $ 1,061,250
Chateau Communities, Inc. 40,000 1,037,500
Franchise Finance Corp. 70,000 1,675,625
National Golf Properties, Inc. 45,000 888,750
Weingarten Realty Inc. 30,000 1,168,125
-----------
5,831,250
-----------
TOTAL FINANCIAL (COST: $18,435,077) 36,263,437
-----------
HEALTH CARE 7.46%
HEALTH CARE FACILITIES 0.53%
o Rehabcare Group, Inc. 50,000 1,056,250
-----------
MEDICAL PRODUCTS 1.21%
Medtronic Inc. 30,000 1,093,125
VISX, Inc. 25,000 1,294,531
-----------
2,387,656
-----------
PHARMACEUTICALS 5.72%
Merck & Co. 50,000 3,353,125
Pfizer Inc. 120,000 3,892,500
Warner Lambert Inc. 50,000 4,096,875
-----------
11,342,500
-----------
TOTAL HEALTH CARE (COST: $8,796,747) 14,786,406
-----------
RETAIL 1.75%
RETAIL STORES 1.75%
Wal Mart Stores, Inc. 50,000 3,456,250
-----------
TOTAL RETAIL (COST: $1,812,225) 3,456,250
-----------
SERVICES 7.31%
BROADCASTING 1.29%
CBS Corp. 40,000 2,557,500
-----------
DATA PROCESSING 0.95%
Automatic Data Processing Inc. 35,000 1,885,625
-----------
PASSENGER CRUISE LINES 0.72%
Carnival Corp. 30,000 1,434,375
-----------
TELECOMMUNICATIONS NETWORKS
& SERVICES 4.35%
CenturyTelephone, Inc. 50,000 2,368,750
Global Crossing Ltd. 10,000 499,687
GTE Corp. 40,000 2,822,500
SBC Communications, Inc. 60,000 2,925,000
-----------
8,615,937
-----------
TOTAL SERVICES (COST: $8,571,871) 14,493,437
-----------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 19.
BURNHAM FUND 15
<PAGE>
BURNHAM FUND, CONTINUED
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
CONTINUED
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
TECHNOLOGY 41.86%
AEROSPACE 1.94%
o General Motors Corporation,
Class H 40,000 $ 3,840,000
------------
COMPUTER PRODUCTS & SOFTWARE 31.82%
o Cisco Systems, Inc. 100,000 10,709,375
o Dell Computer Corp. 30,000 1,529,063
o EMC Corp. 70,000 7,647,500
International Business
Machines Corp. 60,000 6,480,000
Microsoft Corp. 85,000 9,921,094
Safeguard Scientifics, Inc. 12,000 1,944,750
o Siebel Systems, Inc. 240,000 20,190,000
Sun Microsystems, Inc. 60,000 4,644,375
------------
63,066,157
------------
ELECTRICAL EQUIPMENT 0.64%
Symbol Technologies, Inc. 20,000 1,271,250
------------
SEMICONDUCTORS 3.32%
Intel Corp. 80,000 6,582,500
------------
TELECOMMUNICATIONS EQUIPMENT 4.14%
ECI Telecom Ltd. 70,000 2,218,125
Lucent Technologies, Inc. 80,000 5,985,000
------------
8,203,125
------------
TOTAL TECHNOLOGY (COST: $20,882,795) 82,963,032
------------
UTILITIES 0.94%
UTILITY 0.94%
AES Corp. 25,000 1,868,750
------------
TOTAL UTILITIES (COST: $1,429,688) 1,868,750
------------
TOTAL COMMON STOCKS (COST: $77,856,353) 186,419,557
------------
CONVERTIBLE PREFERRED STOCK 1.43%
PASSENGER CRUISE LINES 1.43%
Royal Caribbean Cruises,
conv. preferred Cl. A 20,000 2,840,000
------------
TOTAL CONVERTIBLE PREFERRED STOCK
(COST: $1,084,100) 2,840,000
------------
FACE MARKET
VALUE VALUE
- --------------------------------------------------------------------------------
CORPORATE CONVERTIBLE BONDS 1.18%
COMPUTER PRODUCTS & SOFTWARE 0.28%
Systems & Computer
Technology, conv.
5.00% 10/15/04 $ 650,000 $ 556,564
------------
DATA PROCESSING 0.90%
Adaptec Inc., sub. deb. conv.
4.75% 02/01/04 1,000,000 1,086,250
EMC Corp., sub. deb.
6.00% 05/15/04 500,000 686,875
-------------
1,773,125
------------
TOTAL CORPORATE CONVERTIBLE BONDS
(COST: $1,763,375) 2,329,689
------------
CORPORATE BONDS 0.62%
HOTELS 0.62%
Marriott Corp., deb.
9.38% 06/15/07 1,265,000 1,219,840
------------
TOTAL CORPORATE BONDS (COST: $1,273,606) 1,219,840
------------
COMMERCIAL PAPER 2.72%
Associates First Capital,
3.95% 01/03/00 5,400,000 5,400,000
------------
TOTAL COMMERCIAL PAPER (COST: $5,400,000) 5,400,000
------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 100.01%
(COST: $87,377,434) $198,209,086
LIABILITIES, LESS CASH AND
OTHER ASSETS (0.01)% (16,710)
------------
NET ASSETS 100.00% $198,192,376
============
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
THE TAX COST OF THE FUND AT DECEMBER 31, 1999, BASED ON SECURITIES OWNED, WAS
$87,294,686. THE UNREALIZED GROSS APPRECIATION/(DEPRECIATION) FOR ALL SECURITIES
IN THE FUND FOR THE PERIOD WAS $112,027,969 AND $(1,113,569), RESPECTIVELY.
16 BURNHAM FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 19.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at market value
(COST: $87,377,434) $198,209,086
Cash in bank 107,904
Dividends and interest receivable 123,308
Receivable for investments sold 100,000
Receivable from investment adviser 204,164
Prepaid expenses 38,540
Other assets 828
------------
Total assets 198,783,830
------------
LIABILITIES
Payable for capital stock redeemed 169,795
Payable for administration fees(1) 23,865
Payable for investment advisory fees(2) 99,122
Payable for distribution fees and service fees(3) 75,440
Accrued expenses and other payables 223,232
------------
Total liabilities 591,454
------------
NET ASSETS $198,192,376
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in (7) $ 87,158,581
Accumulated net realized gain on investments(7) 202,143
Net unrealized appreciation of investments 110,831,652
------------
$198,192,376
============
BY SHARE CLASS:
CAPITAL SHARES
NET ASSETS NAV(4) OUTSTANDING
- ------------------------------------------------------------
Class A $193,091,804 $41.71 4,629,847
Class B $ 5,100,572 $42.66 119,563
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends (Net of $875 foreign
withholding taxes) $ 1,821,775
Interest 673,017
-----------
Total income 2,494,792
-----------
EXPENSES
Administration fees(1) 168,926
Investment advisory fees(2) 1,034,637
Service fees (Class B)(3) 8,169
Distribution fees (Class A)(3) 416,566
Distribution fees (Class B)(3) 23,944
Transfer agent fees 229,014
Audit and Legal fees 148,700
Reports to shareholders 174,200
Directors' fees and expenses 103,300
Custodian fees 19,712
Registration fees and expenses 59,310
Insurance expenses 28,228
Fund accounting expenses 38,416
Miscellaneous expenses 34,239
-----------
Total expenses before reimbursement 2,487,361
Less voluntary reimbursement by adviser(5) (171,917)
-----------
Total expenses after reimbursement 2,315,444
-----------
NET INVESTMENT INCOME $ 179,348
===========
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES AND OPTIONS TRANSACTIONS:(6)
Proceeds from sales of securities $73,889,662
Cost of securities sold (67,474,187)
Net gain from written options 16,548
-----------
Net realized gain from
securities and options transactions 6,432,023
-----------
INCREASE IN UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of year 67,328,521
End of year 110,831,652
-----------
Increase in unrealized appreciation 43,503,131
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 49,935,154
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $50,114,502
===========
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 19.
BURNHAM FUND 17
<PAGE>
BURNHAM FUND, CONTINUED
STATEMENT OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
1999 1998
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 179,348 $ 1,142,417
Net realized gain from
securities and options
transactions 6,432,023 7,996,908
Increase in unrealized
appreciation of investments 43,503,131 20,353,244
------------ ------------
Net increase in net assets
resulting from operations 50,114,502 29,492,569
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS(7)
FROM NET INVESTMENT INCOME:
Class A shares (308,346) (1,482,009)
Class B shares -- (3,373)
Class C shares -- (361)
------------ ------------
(308,346) (1,485,743)
------------ ------------
FROM REALIZED GAINS FROM SECURITIES
AND OPTIONS TRANSACTIONS:
Class A shares (14,185,589) (7,404,378)
Class B shares (273,998) (85,434)
Class C shares (30,872) (5,196)
------------ ------------
(14,490,459) (7,495,008)
------------ ------------
Total distributions
to shareholders (14,798,805) (8,980,751)
------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL AT RIGHT)
Net proceeds from sale
of shares 17,996,850 4,634,280
Net asset value of shares
issued to shareholders in
reinvestment of dividends 13,084,805 7,867,717
------------ ------------
31,081,655 12,501,997
Cost of shares redeemed (27,944,533) (11,425,490)
------------ ------------
Increase in net assets
derived from capital share
transactions 3,137,122 1,076,507
------------ ------------
Increase in net assets for
the year 38,452,819 21,588,325
NET ASSETS
Beginning of year 159,739,557 138,151,232
------------ ------------
END OF YEAR $198,192,376 $159,739,557
============ ============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF YEAR $ 0 $ 181,652
============ ============
DETAIL OF CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
- --------------------------------------------------------------------------------
CLASS A SHARES
TWELVE MONTHS ENDED 12/31/1999
Shares sold 415,338 $ 15,218,438
Shares issued for
reinvestments 360,994 12,791,449
Reorganized from Class C
shares of the fund 23,586 751,461
Shares redeemed (737,656) (26,899,117)
------------ ------------
NET INCREASE 62,262 $ 1,862,231
============ ============
TWELVE MONTHS ENDED 12/31/1998
Shares sold 118,079 $ 3,768,093
Shares issued for
reinvestments 272,850 7,773,525
Shares redeemed (364,848) (11,398,567)
------------ ------------
NET INCREASE 26,081 $ 143,051
============ ============
CLASS B SHARES
TWELVE MONTHS ENDED 12/31/1999
Shares sold 48,448 $ 1,805,854
Shares issued for
reinvestments 7,220 270,718
Shares redeemed (4,488) (167,819)
------------ ------------
NET INCREASE 51,180 $ 1,908,753
============ ============
TWELVE MONTHS ENDED 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 $ 489,594
============ ============
CLASS C SHARES(8)
TWELVE MONTHS ENDED 12/31/1999
Shares sold 6,484 $ 221,097
Shares issued for
reinvestments 691 22,638
Reorganized from Class A
shares of the fund (23,586) (751,461)
Shares redeemed (836) (126,136)
------------ ------------
NET DECREASE (17,247) $ (633,862)
============ ============
TWELVE MONTHS ENDED 12/31/1998
Shares sold 13,864 $ 438,323
Shares issued for
reinvestments 196 5,553
Shares redeemed (1) (16)
------------ ------------
NET INCREASE 14,059 $ 443,860
============ ============
18 BURNHAM FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 19.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED DECEMBER 31, 1999 1998 1997 1996 1995 1999 1998 1997 1996 1995
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of year ($) 34.31 30.04 25.65 23.19 19.88 35.21 30.75 26.31 23.45 19.94
INCOME FROM INVESTMENT OPERATIONS
Net investment income / (loss) 0.06 0.25 0.45 0.51 0.71 (0.17) 0.03 0.13 0.21 0.41
Net gains on securities
and options (both realized
and unrealized) 10.52 5.97 5.54 3.36 3.91 10.70 6.12 5.75 3.69 4.10
----------------------------------------------------------------------------------------------
Total from investment operations 10.58 6.22 5.99 3.87 4.62 10.53 6.15 5.88 3.90 4.51
LESS DISTRIBUTIONS
Dividends
(from net investment income) (0.10) (0.32) (0.44) (0.55) (0.75) -- (0.06) (0.28) (0.18) (0.44)
Distributions from capital gains
(from securities and
options transactions) (3.08) (1.63) (1.16) (0.86) (0.56) (3.08) (1.63) (1.16) (0.86) (0.56)
----------------------------------------------------------------------------------------------
Total distributions (3.18) (1.95) (1.60) (1.41) (1.31) (3.08) (1.69) (1.44) (1.04) (1.00)
----------------------------------------------------------------------------------------------
Net asset value,
end of year ($) 41.71 34.31 30.04 25.65 23.19 42.66 35.21 30.75 26.31 23.45
----------------------------------------------------------------------------------------------
Total return (%) 32.71 22.08 24.74 17.60 24.45 31.60 21.16 23.60 17.34 23.54
RATIOS/SUPPLEMENTAL DATA
Net assets (in $millions),
end of year 193.0 156.7 136.4 117.4 112.0 5.1 2.4 1.6 1.0 0.6
----------------------------------------------------------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)(5) 1.3 1.3 1.1 1.3 1.5 2.1 2.1 2.0 2.1 2.2
----------------------------------------------------------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)(5) 1.4 1.3 -- -- -- 2.2 2.2 -- -- --
----------------------------------------------------------------------------------------------
Ratio of net income to average
net assets (%) 0.1 0.8 1.6 2.1 3.3 (0.6) 0.0* 0.7 1.3 2.5
----------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 42.2 54.7 59.4 61.5 78.3 42.2 54.7 59.4 61.5 78.3
----------------------------------------------------------------------------------------------
</TABLE>
* Less than 0.1%.
NOTES TO BURNHAM FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 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).
2 THE FUND PAYS THE ADVISER 0.60% OF ITS AVERAGE DAILY NET ASSETS A YEAR, IN
MONTHLY PAYMENTS. BEFORE MAY 1,1999, THE FUND PAID THE ADVISER 0.625% OF ITS
AVERAGE DAILY NET ASSETS IN FEES.
3 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. THE FUND
ALSO PAYS A SERVICE FEE OF 0.25% FOR CLASS B SHARES. ALSO DURING THE PERIOD,
THE DISTRIBUTOR EARNED $101,711 IN BROKERAGE COMMISSIONS FROM HANDLING
SECURITIES TRADES FOR THE FUND'S PORTFOLIO, AND $8,529 IN SALES COMMISSIONS
FOR SELLING CLASS A SHARES. THE DISTRIBUTOR RECEIVED $445 IN CDSC PAYMENTS
FROM CLASS B SHARES DURING THE PERIOD.
4 FOR CLASS A SHARES, THE OFFERING PRICE, WITH MAXIMUM 5% SALES CHARGE, WAS
$43.91; THE REDEMPTION PRICE IS NAV. FOR CLASS B SHARES, THE OFFERING PRICE
IS NAV AND THE REDEMPTION PRICE VARIES WITH ANY CDSC CHARGED.
5 THE ADVISER CURRENTLY LIMITS THE FUND'S TOTAL EXPENSES TO 1.34% AND 2.09% 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 YEAR
ENDED DECEMBER 31, 1999, THE ADVISER REIMBURSED BOTH SHARE CLASSES FOR
EXPENSES IN EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
6 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 AND PAID
$67,908,495 TO BUY LONG-TERM EQUITY AND DEBT SECURITIES.
7 INCOME DISTRIBUTIONS AND CAPITAL GAIN DISTRIBUTIONS ARE DETERMINED IN
ACCORDANCE WITH INCOME TAX REGULATIONS, WHICH MAY DIFFER FROM GENERALLY
ACCEPTED ACCOUNTING PRINCIPALS. THESE DIFFERENCES ARE PRIMARILY DUE TO
DIFFERING TREATMENTS OF INCOME AND GAINS ON VARIOUS INVESTMENT SECURITIES
HELD BY THE FUND, TIMING DIFFERENCES AND DIFFERING CHARACTERIZATION OF
DISTRIBUTIONS MADE BY THE FUND. DURING THE YEAR ENDED DECEMBER 31, 1999, THE
FUND RECHARACTERIZED DISTRIBUTIONS OF $150,912 FROM NET INVESTMENT INCOME TO
CAPITAL GAINS. PERMANENT DIFFERENCES INCURRED DURING THE YEAR ENDED DECEMBER
31, 1999, RESULTING FROM DIFFERENCES IN BOOK AND TAX ACCOUNTING HAVE BEEN
RECLASSIFIED AT YEAR END TO REFLECT A DECREASE TO UNDISTRIBUTED NET
INVESTMENT INCOME OF $52,654, AN INCREASE TO ACCUMULATED NET REALIZED GAIN ON
INVESTMENTS OF $52,287, AND AN INCREASE TO CAPITAL PAID IN OF $367. ALL OF
THE DISTRIBUTIONS PAID FROM REALIZED GAINS WERE FROM LONG-TERM CAPITAL GAINS.
8 ON MAY 3, 1999, ALL OUTSTANDING CLASS C SHARES WERE REORGANIZED INTO CLASS A
SHARES.
BURNHAM FUND 19
<PAGE>
BURNHAM
DOW 30[SERVICE MARK] FOCUSED FUND
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS 93.20%
BASIC MATERIALS 6.33%
CHEMICALS 6.33%
Union Carbide Corp. 500 $ 33,375
------------
TOTAL BASIC MATERIALS (COST: $29,874) 33,375
------------
CONSUMER CYCLICALS 2.67%
AUTO PARTS & EQUIPMENT 2.67%
Goodyear Tire & Rubber Co. 500 14,094
------------
TOTAL CONSUMER CYCLICALS (COST: $21,592) 14,094
------------
ENERGY 8.22%
OIL REFINING 8.22%
Chevron Corp. 500 43,312
------------
TOTAL ENERGY (COST: $44,030) 43,312
------------
UNIT INVESTMENT TRUST 73.09%
UNIT INVESTMENT TRUST 73.09%
Diamonds Trust Unit Series 1(1) 3,345 385,302
------------
TOTAL UNIT INVESTMENT TRUST
(COST: $365,244) 385,302
------------
RETAIL 2.89%
RETAIL STORES 2.89%
Sears, Roebuck & Co. 500 15,219
------------
TOTAL RETAIL (COST: $13,811) 15,219
------------
TOTAL COMMON STOCKS (COST: $474,551) 491,302
------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 93.20%
(COST: $474,551) $ 491,302
------------
CASH AND OTHER ASSETS,
LESS LIABILITIES 6.80% 35,835
------------
NET ASSETS 100.00% $ 527,137
============
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
THE TAX COST OF THE FUND AT DECEMBER 31, 1999, BASED ON SECURITIES OWNED, WAS
$474,551. THE UNREALIZED GROSS APPRECIATION/(DEPRECIATION) FOR ALL SECURITIES
IN THE FUND FOR THE PERIOD WAS $24,967 AND $(8,216), RESPECTIVELY.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at market value
(COST: $474,551) $ 491,302
Cash in bank 6,660
Dividends and interest receivable 115
Receivable from investment adviser 55,330
------------
Total assets 553,407
------------
LIABILITIES
Payable for administration fees(2) 71
Payable for investment advisory fees(3) 254
Payable for distribution fees(4) 106
Accrued expenses and other payables 25,839
------------
Total liabilities 26,270
------------
NET ASSETS $ 527,137
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in(6,7) $ 512,178
Accumulated net realized loss on investments(6) (1,792)
Net unrealized appreciation of investments 16,751
------------
$ 527,137
============
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
- -----------------------------------------------------------------
$527,137 $10.27 51,330
20 DOW 30[SERVICE MARK] FOCUSED FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 22.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 4,304
Interest 198
Other income(7) 1,037
------------
Total income 5,539
------------
EXPENSES
Administration fees(2) 444
Investment advisory fees(3) 1,750
Distribution fees(4) 729
Transfer agent fees 12,488
Audit and Legal fees 10,222
Reports to shareholders 190
Directors' fees and expenses 260
Custodian fees 1,450
Registration fees and expenses 5,154
Insurance expenses 79
Fund accounting expenses 26,076
Miscellaneous expenses 29
------------
Total expenses before reimbursement 58,871
Less voluntary reimbursement by adviser(5) (55,330)
------------
Total expenses after reimbursement 3,541
------------
NET INVESTMENT INCOME $ 1,998
============
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED LOSS FROM SECURITIES TRANSACTIONS:(8)
Proceeds from sales of securities $ 91,347
Cost of securities sold (93,139)
------------
Net realized loss from
securities transactions (1,792)
------------
INCREASE IN UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of period --
End of period 16,751
------------
Increase in unrealized appreciation 16,751
------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 14,959
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 16,957
============
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 1,998
Net realized loss from security
transactions (1,792)
Increase in unrealized
appreciation of investments 16,751
------------
Net increase in net assets
resulting from operations 16,957
------------
DISTRIBUTIONS TO SHAREHOLDERS(6)
From net investment income (2,538)
------------
Total distributions to shareholders (2,538)
------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL BELOW)
Net proceeds from sale of shares 614,905
Net asset value of shares issued
to shareholders in reinvestment
of dividends 2,538
------------
617,443
Cost of shares redeemed (104,725)
------------
Increase in net assets derived from
capital share transactions 512,718
------------
Increase in net assets for the period 527,137
NET ASSETS
Beginning of period 0
------------
END OF PERIOD $ 527,137
============
DETAIL OF CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
- --------------------------------------------------------------------------------
PERIOD ENDED 12/31/99
Shares sold 61,716 $ 614,905
Shares issued for reinvestments 255 2,538
Shares redeemed (10,641) (104,725)
------- ------------
NET INCREASE 51,330 $ 512,718
======= ============
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 22.
DOW 30[SERVICE MARK] FOCUSED FUND 21
<PAGE>
BURNHAM DOW 30[SERVICE MARK] FOCUSED FUND, CONTINUED
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period ($) 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05
Net gain on securities
(both realized and unrealized) 0.27
-----------------------------------------------
Total from investment operations 0.32
LESS DISTRIBUTIONS
Dividends
(from net investment income) (0.05)
Distributions from capital gains
(from securities transactions) --
-----------------------------------------------
Total distributions (0.05)
-----------------------------------------------
Net asset value,
end of period ($) 10.27
-----------------------------------------------
Total return (%) 3.22
RATIOS/SUPPLEMENTAL DATA
Net assets (in $millions),
end of period 0.5
-----------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)(5) 1.2+
-----------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)(5) 19.9+
-----------------------------------------------
Ratio of net income to average
net assets (%) 0.7+
-----------------------------------------------
Portfolio turnover rate (%) 23.7
-----------------------------------------------
+ANNUALIZED
NOTES TO BURNHAM DOW 30[SERVICE MARK] FOCUSED FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 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.
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).
3 THE FUND PAYS THE ADVISER 0.60% OF ITS AVERAGE DAILY NET ASSETS A YEAR, IN
MONTHLY PAYMENTS.
4 THE FUND PAYS THE DISTRIBUTOR A DISTRIBUTION FEE OF 0.25% OF AVERAGE NET
ASSETS. DURING THE PERIOD, THE DISTRIBUTOR EARNED $423 IN BROKERAGE
COMMISSIONS FROM HANDLING SECURITIES TRADES FOR THE FUND'S PORTFOLIO.
5 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. SINCE INCEPTION THE ADVISER REIMBURSED THE FUND FOR EXPENSES IN
EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
6 INCOME DISTRIBUTIONS AND CAPITAL GAIN DISTRIBUTIONS ARE DETERMINED IN
ACCORDANCE WITH INCOME TAX REGULATIONS, WHICH MAY DIFFER FROM GENERALLY
ACCEPTED ACCOUNTING PRINCIPALS. THESE DIFFERENCES ARE PRIMARILY DUE TO
DIFFERING TREATMENTS OF INCOME AND GAINS ON VARIOUS INVESTMENT SECURITIES
HELD BY THE FUND, TIMING DIFFERENCES AND DIFFERING CHARACTERIZATION OF
DISTRIBUTIONS MADE BY THE FUND. PERMANENT DIFFERENCES INCURRED DURING THE
YEAR ENDED DECEMBER 31, 1999, RESULTING FROM DIFFERENCES IN BOOK AND TAX
ACCOUNTING HAVE BEEN RECLASSIFIED AT YEAR END TO REFLECT A DECREASE TO
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME OF $540 AND A DECREASE TO
CAPITAL PAID IN OF $540. THE FUND HAS UNUSED CAPITAL LOSS CARRYFORWARDS OF
$1,792 WHICH EXPIRE IN 2007.
7 THE FUND RECEIVED $1,037 IN REDEMPTION FEES DURING THE PERIOD.
8 THE FUND PAID $567,991 TO BUY LONG-TERM EQUITY SECURITIES DURING THE PERIOD.
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[SERVICE MARK] FOCUSED FUND
<PAGE>
BURNHAM
FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
o Indicates securities that do NUMBER MARKET
not produce income. OF SHARES VALUE
- --------------------------------------------------------------------------------
COMMON STOCKS 98.09%
BANKS 32.68%
BANKS -- MAJOR REGIONALS 3.50%
FleetBoston Financial Corp. 2,000 $ 69,625
Mellon Financial Corp. 500 17,031
Union Planters Corp. 500 19,719
------------
106,375
------------
BANKS -- REGIONALS 29.18%
AMCORE Financial, Inc. 7,000 167,781
BostonFed Bancorp Inc. 5,000 79,375
BSB Bancorp 3,000 57,938
CCB Financial Corp. 1,000 43,562
Chittenden Corp. 3,000 88,875
Commercial Federal Corp. 3,000 53,438
First Sentinel Bancorp Inc. 5,000 39,844
Hudson United Bancorp 1,545 39,494
Keystone Financial, Inc. 1,000 21,094
Pacific Crest Capital, Inc. 8,000 103,000
Premier National Bancorp 5,000 92,187
Valley National Bancorp 2,000 56,000
Westbank Corp. 5,000 44,062
------------
886,650
------------
TOTAL BANKS
(COST: $1,018,216) 993,025
------------
FINANCIAL SERVICES COMPANIES 16.45%
CONSUMER FINANCE 2.59%
Capital One Financial Corp. 500 24,094
MBNA Corp. 2,000 54,500
------------
78,594
------------
DIVERSIFIED FINANCIAL SERVICES 4.10%
o Hamilton Bancorp, Inc. 7,000 124,687
------------
INSURANCE 7.82%
ACE Ltd. 4,000 66,750
Allstate Corp. 3,000 72,000
Hartford Financial Services
Group, Inc. 1,000 47,375
Travelers Property Casualty
Corp., Class A 1,500 51,375
------------
237,500
------------
INVESTMENT BANKING / BROKERAGE 1.94%
Lehman Brothers Holdings Inc. 500 42,344
Merrill Lynch & Co., Inc. 200 16,700
------------
59,044
------------
TOTAL FINANCIAL SERVICES COMPANIES
(COST: $480,057) 499,825
------------
NUMBER MARKET
OF SHARES VALUE
- --------------------------------------------------------------------------------
SAVINGS AND LOAN COMPANIES 48.96%
SAVINGS AND LOAN COMPANIES --
MAJOR REGIONALS 24.89%
Golden State Bancorp Inc. 5,000 $ 86,250
MECH Financial Inc. 6,000 208,500
PennFed Financial Services, Inc. 4,000 60,250
Richmond County Financial Corp. 10,000 180,313
Roslyn Bancorp Inc. 10,000 184,063
Webster Financial Corp. 1,560 36,806
------------
756,182
------------
SAVINGS & LOAN COMPANIES-- REGIONAL 24.07%
Alliance Bancorp New England Inc. 10,000 88,750
Dime BanCorporation, Inc. 12,000 181,500
First Essex Bancorp Inc. 10,000 143,750
First Federal Savings & Loan
Association of East Hartford 1,000 30,875
Flushing Financial Corp. 5,000 74,531
Matrix Bancorp Inc. 5,000 61,562
Peoples Heritage Financial
Group, Inc. 10,000 150,313
------------
731,281
------------
TOTAL SAVINGS AND LOAN COMPANIES
(COST: $1,525,349) 1,487,463
------------
TOTAL COMMON STOCKS/INVESTMENTS
(COST: $3,023,622) 2,980,313
------------
CALL OPTIONS WRITTEN (0.29%)
ACE Limited Calls @ 17.5
Due Feb 00 20 (2,375)
AMCORE Financial Calls @ 22.5
Due Feb 00 10 (2,500)
AMCORE Financial Calls @ 25
Due Feb 00 10 (1,187)
AMCORE Financial Calls @ 30
Due May 00 20 (1,500)
Commercial Federal Corp.Calls @ 25
Due Mar 00 20 (312)
Golden State Bancorp Inc. Calls @ 20
Due Jan 00 10 (63)
Golden State Bancorp Inc. Calls @ 22.5
Due Jan 00 10 (188)
Hudson United Bancorp Calls @ 30
Due Jan 00 10 (250)
Keystone Financial Inc. Calls @ 25
Due Jan 00 10 (250)
------------
TOTAL CALL OPTIONS WRITTEN
(PREMIUMS RECEIVED: $11,882) (8,625)
------------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 26.
FINANCIAL SERVICES FUND 23
<PAGE>
BURNHAM FINANCIAL SERVICES FUND, CONTINUED
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
CONTINUED
- --------------------------------------------------------------------------------
MARKET
VALUE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 98.09%
(COST: $3,023,622) $ 2,980,313
CALL OPTIONS WRITTEN (0.29)%
(PREMIUMS RECEIVED $11,882) (8,625)
CASH AND OTHER ASSETS,
LESS LIABILITIES 2.20% 66,760
------------
NET ASSETS 100.00% $ 3,038,448
============
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
- --------------------------------------------------------------------------------
THE TAX COST OF THE FUND AT DECEMBER 31, 1999, BASED ON SECURITIES OWNED, WAS
$3,023,622. THE UNREALIZED GROSS APPRECIATION/(DEPRECIATION) FOR ALL
SECURITIES IN THE FUND FOR THE PERIOD WAS $93,847 AND $(137,156),
RESPECTIVELY.
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at market value
(COST: $3,023,622) $ 2,980,313
Cash in bank 171,163
Dividends and interest receivable 4,350
Receivable from investment adviser 49,561
------------
Total assets 3,205,387
------------
LIABILITIES
Payable for options written
(premiums received $11,882)(6) 8,625
Payable for investments purchased 126,250
Payable for administration fees(1) 365
Payable for investment advisory fees(2) 1,738
Payable for distribution fees and service fees(3) 614
Accrued expenses and other payables 29,347
------------
Total liabilities 166,939
------------
NET ASSETS $ 3,038,448
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $ 3,078,188
Undistributed net investment income 225
Accumulated net realized gains on investments 87
Net unrealized depreciation of investments
and written options (40,052)
------------
$ 3,038,448
============
BY SHARE CLASS:
CAPITAL SHARES
NET ASSETS NAV(4) OUTSTANDING
- ---------------------------------------------------------------
Class A $2,982,934 $9.79 304,814
Class B $ 55,514 $9.75 5,692
24 FINANCIAL SERVICES FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS
FUND ARE ON PAGE 26.
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD JUNE 7 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 18,928
Interest 529
------------
Total income 19,457
------------
EXPENSES
Administration fees(1) 1,271
Investment advisory fees(2) 6,309
Service fees (Class B)(3) 76
Distribution fees (Class A)(3) 2,026
Distribution fees (Class B)(3) 231
Transfer agent fees 18,564
Audit and Legal fees 10,751
Reports to shareholders 301
Directors' fees and expenses 463
Custodian fees 522
Insurance expenses 294
Fund accounting expenses 22,299
Miscellaneous expenses 267
------------
Total expenses before reimbursement 63,374
Less voluntary reimbursement by adviser(5) (49,561)
------------
Total expenses after reimbursement 13,813
------------
NET INVESTMENT INCOME $ 5,644
============
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES AND OPTIONS TRANSACTIONS:(6)
Proceeds from sales of securities $ 1,274,647
Cost of securities sold (1,275,645)
Net gain from written options 1,085
------------
Net realized gain from
securities and options transactions 87
------------
INCREASE IN UNREALIZED DEPRECIATION OF INVESTMENTS:
Beginning of period --
End of period (40,052)
------------
Increase in unrealized depreciation (40,052)
------------
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS (39,965)
------------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ (34,321)
============
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD JUNE 7 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
DECREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 5,644
Net realized gain from securities
and options transactions 87
Increase in unrealized
depreciation of investments (40,052)
------------
Net decrease in net assets
resulting from operations (34,321)
------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Class A shares (5,419)
------------
Total distributions to shareholders (5,419)
------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL BELOW)
Net proceeds from sale
of shares 3,478,952
Net asset value of shares
issued to shareholders in
reinvestment of dividends 5,401
------------
3,484,353
Cost of shares redeemed (406,165)
------------
Increase in net assets derived
from capital share transactions 3,078,188
------------
Increase in net assets for
the period 3,038,448
NET ASSETS
Beginning of period 0
------------
END OF PERIOD $ 3,038,448
============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF PERIOD $ 225
============
DETAIL OF CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
NUMBER OF SHARES MARKET AMOUNT
- --------------------------------------------------------------------------------
CLASS A SHARES
PERIOD ENDED 12/31/1999
Shares sold 345,945 $ 3,421,752
Shares issued for reinvestments 564 5,401
Shares redeemed (41,695) (406,165)
------- ------------
NET INCREASE 304,814 $ 3,020,988
======= ============
CLASS B SHARES
PERIOD ENDED 12/31/1999
Shares sold 5,692 $ 57,200
Shares issued for reinvestments -- --
Shares redeemed -- --
------- ------------
NET INCREASE 5,692 $ 57,200
======= ============
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 26.
FINANCIAL SERVICES FUND 25
<PAGE>
BURNHAM FINANCIAL SERVICES FUND, CONTINUED
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR THE PERIOD JUNE 7 (INCEPTION)
TO DECEMBER 31, 1999 1999
- --------------------------------------------------------------------------------
CLASS A SHARES CLASS B SHARES
- --------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period ($) 10.00 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income / (loss) 0.02 (0.00)*
Net (loss) on securities and options
(both realized and unrealized) (0.21) (0.25)
------------------------------------------
Total from investment operations (0.19) (0.25)
LESS DISTRIBUTIONS
Dividends
(from net investment income) (0.02) --
Distributions from capital gains
(from securities and
options transactions) -- --
Total distributions (0.02) --
------------------------------------------
Net asset value,
end of period ($) 9.79 9.75
------------------------------------------
Total return (%) (1.90) (2.50)
RATIOS/SUPPLEMENTAL DATA
Net assets (in $millions),
end of period 3.0 0.0**
------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)(5) 1.6+ 2.3+
------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)(5) 7.4+ 8.2+
------------------------------------------
Ratio of net income to average
net assets (%) 0.7+ (0.1)+
------------------------------------------
Portfolio turnover rate (%) 89.6 89.6
------------------------------------------
* LESS THAN $(0.01) PER SHARE.
** LESS THAN $100,000.
+ ANNUALIZED
NOTES TO BURNHAM FINANCIAL SERVICES FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 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).
2 THE FUND PAYS THE ADVISER 0.75% OF ITS AVERAGE DAILY NET ASSETS A YEAR, IN
MONTHLY PAYMENTS.
3 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. THE FUND
ALSO PAYS A SERVICE FEE OF 0.25% FOR CLASS B SHARES. ALSO DURING THE PERIOD,
THE DISTRIBUTOR EARNED $4,859 IN BROKERAGE COMMISSIONS FROM HANDLING
SECURITIES TRADES FOR THE FUND'S PORTFOLIO. THE DISTRIBUTOR RECEIVED NO CDSC
PAYMENTS DURING THE PERIOD.
4 FOR CLASS A SHARES, THE OFFERING PRICE, WITH MAXIMUM 5% SALES CHARGE, WAS
$10.31; THE REDEMPTION PRICE IS NAV. FOR CLASS B SHARES, THE OFFERING PRICE
IS NAV AND THE REDEMPTION PRICE VARIES WITH ANY CDSC CHARGED.
5 THE ADVISER CURRENTLY LIMITS THE FUND'S TOTAL EXPENSES TO 1.60% AND 2.35% OF
AVERAGE NET ASSETS FOR CLASS A AND CLASS B SHARES, RESPECTIVELY. THIS LIMIT
IS VOLUNTARY AND THE ADVISER COULD CHANGE OR DROP IT AT ANY TIME. SINCE
INCEPTION THE ADVISER REIMBURSED THE FUND FOR EXPENSES IN EXCESS OF THE
VOLUNTARY EXPENSE LIMITATION.
6 DURING THE PERIOD ENDED DECEMBER 31, 1999, THE FUND: WROTE 160 OPTIONS FOR
PREMIUMS RECEIVED OF $16,389, CANCELED 20 OPTIONS THROUGH CLOSING
TRANSACTIONS COSTING $1,920, HAD 10 OPTIONS EXERCISED AGAINST IT COSTING
$1,502, AND HAD 10 OPTIONS EXPIRE FOR A NET CAPITAL GAIN OF $1,085; AND PAID
$4,299,267 TO BUY LONG-TERM EQUITY AND DEBT SECURITIES.
26 FINANCIAL SERVICES FUND
<PAGE>
BURNHAM
MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
- --------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 99.60%
DISCOUNTED COMMERCIAL PAPER 10.60%
Bear Stearns Cos., Inc.
6.00%, 01/13/00 $1,000,000 $ 998,000
Lehman Brothers Holdings Inc.
6.00%, 01/19/00 1,000,000 997,000
PaineWebberGroup
6.00%, 1/20/00 1,500,000 1,495,051
------------
TOTAL DISCOUNTED COMMERCIAL PAPER
(COST: $3,490,051) 3,490,051
------------
LETTER OF CREDIT COMMERCIAL PAPER 14.95%
Banco Bozano Simonsen S.A.
(LOC: Banco Santander)
5.53% due 6/16/00 1,000,000 974,359
Banco Rio del La Plata S.A.
(LOC: HSBC Bank)
5.98% due 4/11/00 1,000,000 983,223
Finans Funding Corporation II
(LOC: Rabobank)
5.37% due 3/09/00 1,000,000 989,857
Formosa Plastics Corporation
(LOC: ABN Amro Bank)
5.95% due 3/07/00 1,000,000 989,092
Garanti Funding Corp.
(LOC: Bay Hypo Vereins)
5.70% due 4/18/00 1,000,000 982,900
------------
TOTAL LETTER OF CREDIT COMMERCIAL PAPER
(COST: $4,919,431) 4,919,431
------------
FLOATING RATE NOTE 3.04%
First Union National Bank of N.C.
5.74% due 7/17/00 1,000,000 1,000,000
------------
TOTAL FLOATING RATE NOTE
(COST: $1,000,000) 1,000,000
------------
INTEREST BEARING COMMERCIAL PAPER 3.04%
Weyerhauser Notes Acquisition Trust
6.34% due 2/01/00 1,000,000 1,000,000
------------
TOTAL INTEREST BEARING COMMERCIAL PAPER
(COST: $1,000,000) 1,000,000
------------
MEDIUM-TERM NOTE 3.04%
Goldman Sachs Group Inc.
6.00% due 8/07/00 1,000,000 1,000,000
------------
TOTAL MEDIUM-TERM NOTE
(COST: $1,000,000) 1,000,000
------------
FACE AMORTIZED
VALUE COST
- --------------------------------------------------------------------------------
TAXABLE MUNICIPAL COMMERCIAL PAPER 3.04%
Tennessee School Board Authority
6.20% due 2/03/00 $1,000,000 $ 1,000,000
------------
TOTAL TAXABLE MUNICIPAL COMMERCIAL PAPER
(COST: $1,000,000) 1,000,000
------------
TAXABLE MUNICIPAL NOTE 4.56%
Emory University Project
Dekalb City, GA
6.20% due 2/07/00 1,500,000 1,500,000
------------
TOTAL TAXABLE MUNICIPAL NOTE
(COST: $1,500,000) 1,500,000
------------
VARIABLE RATE DEMAND NOTES 27.56%
B&V Land Company, L.L.C.
(LOC: First Michigan)
6.60% due 9/01/27 1,055,000 1,055,000
Columbus, GA Development
Authority Revenue
(LOC: BK Nova Scotia)
6.75% due 12/01/19 1,000,000 1,000,000
County of McCreary, KY Industrial
Building Revenue Bonds Phase III
(LOC:Fifth Third Bank)
6.45% due 4/01/15 1,000,000 1,000,000
Grand Valley Limited Partnership
(LOC:NatCity)
6.77% due 6/01/27 1,000,000 1,000,000
JDV LLC
(LOC: Michigan National Bank)
6.60% due 7/01/27 990,000 990,000
Maximum Principal Amount
Camcairn I
(LOC: Firstar Bank)
6.83% due 10/01/21 1,000,000 1,000,000
Maximum Principal Amount
(Coson Project)
(LOC: FirstMerit Bank)
6.88% due 8/01/23 1,000,000 1,000,000
Shepherd Capital, L.L.C.
(LOC: First of America)
6.60% due 9/15/47 1,025,000 1,025,000
The Wilmington Iron &
Metal Company
(LOC: Bank One)
6.50% due 8/01/14 1,000,000 1,000,000
------------
TOTAL VARIABLE RATE DEMAND NOTES
(COST: $9,070,000) 9,070,000
------------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 30.
MONEY MARKET FUND 27
<PAGE>
BURNHAM MONEY MARKET FUND, CONTINUED
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
CONTINUED
- --------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS 29.77%
Salomon Smith Barney
(collateralized by $9,996,000
GNMA, 6.00% due 2/20/24,
delivery value $9,801,833)
2.00% due 1/03/00 $9,800,000 $ 9,800,000
------------
TOTAL REPURCHASE AGREEMENTS
(COST: $9,800,000) 9,800,000
------------
TOTAL SHORT-TERM INVESTMENTS
(COST: $32,779,482) 32,779,482
------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 99.60%
(COST: $32,779,482) $ 32,779,482
CASH AND OTHER ASSETS,
LESS LIABILITIES 0.40% 131,755
------------
NET ASSETS 100.00% $ 32,911,237
============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at market value
Securities $ 22,979,482
Repurchase agreements 9,800,000
------------
Total investments
(COST: $32,779,482) 32,779,482
Cash in bank 12,110
Interest receivable 114,330
Receivable from investment adviser 44,702
Receivable for investment sold 5,000
Prepaid expenses 1,185
------------
Total assets 32,956,809
------------
LIABILITIES
Payable for administration fees(1) 4,104
Payable for investment advisory fees(2) 12,532
Accrued expenses and other payables 28,936
------------
Total liabilities 45,572
------------
NET ASSETS $ 32,911,237
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in(5) $ 32,911,237
------------
$ 32,911,237
============
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
- ----------------------------------------------------------------
$32,911,237 $1.00 32,911,442
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 30.
28 MONEY MARKET FUND
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 929,484
--------------
Total income 929,484
--------------
EXPENSES
Administration fees(1) 25,488
Investment advisory fees(2) 76,685
Transfer agent fees 20,356
Audit and Legal fees 12,930
Reports to shareholders 9,383
Directors' fees and expenses 11,260
Custodian fees 3,725
Insurance expenses 660
Fund accounting expenses 26,232
Miscellaneous expenses 7,114
--------------
Total expenses before reimbursement 193,833
Less voluntary reimbursement by adviser(3) (44,702)
--------------
Total expenses after reimbursement 149,131
--------------
NET INVESTMENT INCOME $ 780,353
==============
NET REALIZED GAIN ON INVESTMENTS
REALIZED GAIN FROM SECURITIES TRANSACTIONS:(4)
Proceeds from sales/maturities of securities $1,713,097,532
Cost of securities sold/matured (1,713,097,527)
--------------
Net realized gain from securities
transactions 5
--------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 780,358
==============
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 780,353
Net realized gain from securities
transactions 5
--------------
Net increase in net assets
resulting from operations 780,358
--------------
DISTRIBUTIONS TO SHAREHOLDERS(5)
From net investment income (780,558)
From realized gains from
securities transactions (5)
--------------
Total distributions to shareholders (780,563)
--------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE NEXT TABLE)
Net proceeds from sale of shares 56,016,142
Net asset value of shares
issued to shareholders in
reinvestment of dividends 774,705
--------------
56,790,847
Cost of shares redeemed (23,879,405)
--------------
Increase in net assets derived from
capital share transactions 32,911,442
--------------
Increase in net assets for
the period 32,911,237
NET ASSETS
Beginning of period 0
--------------
END OF PERIOD $ 32,911,237
--------------
DETAIL OF CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
- --------------------------------------------------------------------------------
PERIOD ENDED 12/31/99
Shares sold 56,016,142 $ 56,016,142
Shares issued for
reinvestments 774,705 774,705
Shares redeemed (23,879,405) (23,879,405)
----------- --------------
NET INCREASE 32,911,442 $ 32,911,442
=========== ==============
- --------------------------------------------------------------------------------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 30.
MONEY MARKET FUND 29
<PAGE>
BURNHAM MONEY MARKET FUND, CONTINUED
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR THE PERIOD MAY 3 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period ($) 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.03
Net gain on securities
(both realized and unrealized) 0.00*
----------------------------------------
Total from investment operations 0.03
LESS DISTRIBUTIONS
Dividends
(from net investment income) (0.03)
Distributions from capital gains
(from securities transactions) (0.00)**
----------------------------------------
Total distributions (0.03)
----------------------------------------
Net asset value,
end of period ($) 1.00
----------------------------------------
Total return (%) 2.97
RATIOS/SUPPLEMENTAL DATA
Net assets (in $millions),
end of period 32.9
----------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)(3) 0.9+
----------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)(3) 1.1+
----------------------------------------
Ratio of net income to average
net assets (%) 4.5+
----------------------------------------
* LESS THAN $0.01 PER SHARE.
** LESS THAN $(0.01) PER SHARE.
+ ANNUALIZED
NOTES TO BURNHAM MONEY MARKET FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 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).
2 THE FUND PAYS THE ADVISER 0.45% OF ITS AVERAGE DAILY NET ASSETS A YEAR, IN
MONTHLY PAYMENTS.
3 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. SINCE INCEPTION THE ADVISER REIMBURSED THE FUND FOR EXPENSES IN
EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
4 DURING THE PERIOD ENDED DECEMBER 31, 1999, THE FUND PAID $1,745,593,597 TO
BUY MONEY MARKET INSTRUMENTS.
5 INCOME DISTRIBUTIONS AND CAPITAL GAIN DISTRIBUTIONS ARE DETERMINED IN
ACCORDANCE WITH INCOME TAX REGULATIONS, WHICH MAY DIFFER FROM GENERALLY
ACCEPTED ACCOUNTING PRINCIPALS. THESE DIFFERENCES ARE PRIMARILY DUE TO
DIFFERING TREATMENTS OF INCOME AND GAINS ON VARIOUS INVESTMENT SECURITIES
HELD BY THE FUND, TIMING DIFFERENCES AND DIFFERING CHARACTERIZATION OF
DISTRIBUTIONS MADE BY THE FUND. PERMANENT DIFFERENCES INCURRED DURING THE
YEAR ENDED DECEMBER 31, 1999, RESULTING FROM DIFFERENCES IN BOOK AND TAX
ACCOUNTING HAVE BEEN RECLASSIFIED AT YEAR END TO REFLECT A DECREASE TO
DISTRIBUTIONS IN EXCESS OF NET INVESTMENT INCOME OF $205 AND A DECREASE TO
CAPITAL PAID IN OF $205.
30 MONEY MARKET FUND
<PAGE>
BURNHAM
U.S. TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 99.97%
U.S. TREASURY OBLIGATIONS 23.93%
U.S. Treasury Bills
01/20/00 $15,000,000 $ 14,959,546
U.S. Treasury Notes
5.75% 11/15/00 5,000,000 4,997,917
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST: $19,957,463) 19,957,463
-------------
REPURCHASE AGREEMENTS 76.04%
Goldman Sachs
(Collateralized by $64,668,000
GNMA, 5.86% to 7.06%, due
10/20/23 to 11/16/29, delivery
value $63,423,088)
4.37% due 1/03/00 63,400,000 63,400,000
-------------
TOTAL REPURCHASE AGREEMENTS
(COST: $63,400,000) 63,400,000
-------------
TOTAL SHORT-TERM INVESTMENTS
(COST: $83,357,463) 83,357,463
-------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES 99.97%
(COST: $83,357,463) $ 83,357,463
CASH AND OTHER ASSETS,
LESS LIABILITIES 0.03% 24,110
-------------
NET ASSETS 100.00% $ 83,381,573
=============
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS & LIABILITIES
AS OF DECEMBER 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments, at market value
Securities $ 19,957,463
Repurchase agreements 63,400,000
-------------
Total investments
(COST: $83,357,463) 83,357,463
Cash in bank 46,157
Interest receivable 44,819
Receivable from investment adviser 16,797
-------------
Total assets 83,465,236
-------------
LIABILITIES
Payable for administration fees(1) 10,403
Payable for investment advisory fees(2) 27,540
Accrued expenses and other payables 45,720
-------------
Total liabilities 83,663
-------------
NET ASSETS $ 83,381,573
=============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $ 83,381,573
-------------
$ 83,381,573
=============
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
- ----------------------------------------------------------------
$83,381,573 $1.00 83,381,573
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 33.
U.S. TREASURY MONEY MARKET FUND 31
<PAGE>
BURNHAM U.S. TREASURY MONEY MARKET FUND, CONTINUED
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD OCTOBER 13 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $ 845,310
--------------
Total income 845,310
--------------
EXPENSES
Administration fees(1) 23,534
Investment advisory fees(2) 62,555
Transfer agent fees 8,604
Audit and Legal fees 14,285
Reports to shareholders 7,348
Directors' fees and expenses 2,601
Custodian fees 3,332
Insurance expenses 524
Fund accounting expenses 7,792
Miscellaneous expenses 3,513
--------------
Total expenses before reimbursement 134,088
Less voluntary reimbursement by adviser(3) (16,797)
--------------
Total expenses after reimbursement 117,291
--------------
NET INVESTMENT INCOME $ 728,019
==============
NET REALIZED GAIN ON INVESTMENTS
REALIZED GAIN FROM SECURITIES TRANSACTIONS:(4)
Proceeds from sales/maturities of securities $3,187,700,000
Cost of securities sold/matured 3,187,700,000
--------------
Net realized gain from
securities transactions --
--------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $ 728,019
==============
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 13 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $ 728,019
--------------
Net increase in net assets
resulting from operations 728,019
--------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (728,019)
--------------
Total distributions to shareholders (728,019)
--------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL BELOW)
Net proceeds from sale of shares 94,671,802
Net asset value of shares
issued to shareholders in
reinvestment of dividends 726,902
--------------
95,398,704
Cost of shares redeemed (12,017,131)
--------------
Increase in net assets derived
from capital share transactions 83,381,573
--------------
Increase in net assets for
the period 83,381,573
NET ASSETS
Beginning of period 0
--------------
END OF PERIOD $ 83,381,573
==============
- --------------------------------------------------------------------------------
DETAIL OF CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
- --------------------------------------------------------------------------------
PERIOD ENDED 12/31/99
Shares sold 94,671,802 $ 94,671,802
Shares issued for
reinvestments 726,902 726,902
Shares redeemed (12,017,131) (12,017,131)
------------ --------------
NET INCREASE 83,381,573 $ 83,381,573
============ ==============
- --------------------------------------------------------------------------------
32 U.S. TREASURY MONEY MARKET FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 33.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
FOR THE PERIOD OCTOBER 13 (INCEPTION) TO DECEMBER 31, 1999
- --------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period ($) 1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00*
-------------------------------------------
Total from investment operations 0.00*
LESS DISTRIBUTIONS
Dividends
(from net investment income) (0.00)**
-------------------------------------------
Total distributions (0.00)**
-------------------------------------------
Net asset value,
end of period ($) 1.00
-------------------------------------------
Total return (%) 1.0
RATIOS/SUPPLEMENTAL DATA
Net assets (in $millions),
end of period 83.4
-------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)(3) 0.8+
-------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)(3) 0.9+
-------------------------------------------
Ratio of net income to average
net assets (%) 4.6+
-------------------------------------------
* LESS THAN $0.01 PER SHARE.
** LESS THAN $(0.01) PER SHARE.
+ ANNUALIZED
NOTES TO BURNHAM U.S. TREASURY MONEY MARKET FUND FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 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).
2 THE FUND PAYS THE ADVISER 0.40% OF ITS AVERAGE DAILY NET ASSETS A YEAR, IN
MONTHLY PAYMENTS.
3 THE ADVISER CURRENTLY LIMITS THE FUND'S TOTAL EXPENSES TO 0.75% OF AVERAGE
NET ASSETS. THE LIMIT IS VOLUNTARY AND THE ADVISER COULD CHANGE OR DROP IT AT
ANY TIME. SINCE INCEPTION THE ADVISER REIMBURSED THE FUND FOR EXPENSES IN
EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
4 DURING THE REPORT PERIOD, THE FUND PAID $3,270,957,131 TO BUY MONEY-MARKET
INSTRUMENTS.
U.S. TREASURY MONEY MARKET FUND 33
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Trustees of
Burnham Investors Trust:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio holdings, and the related statements of operations
and of changes in net assets and the financial highlights, all as presented on
pages 12 to 33, present fairly, in all material respects, the financial position
of Burnham Investors Trust (constituting Burnham Fund, Burnham Dow 30 Focused
Fund, Burnham Financial Services Fund, Burnham Money Market Fund and Burnham
U.S. Treasury Money Market Fund, hereafter referred to as the "Funds") at
December 31, 1999, and the results of each of their operations, the changes in
each of their net assets and the financial highlights for each of the periods
then ended, in conformity with accounting principles generally accepted in the
United States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Funds'
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with auditing standards generally accepted in the
United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at December 31, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
February 17, 2000
34 REPORT OF INDEPENDENT ACCOUNTANTS
<PAGE>
OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
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
BOARD OF TRUSTEES
- --------------------------------------------------------------------------------
CHAIRMAN
I.W. Burnham, II
TRUSTEES
Jon M. Burnham
Claire B. Benenson
Lawrence N. Brandt
Alvin P. Gutman
William W. Karatz
John C. McDonald
Donald B. Romans
Robert F. Shapiro
Robert M. Shavick
Robert S. Weinberg
Robert J. Wilbur
MODERN PORTFOLIO THEORY STATISTICS TERMS
- --------------------------------------------------------------------------------
BETA
A measure of a fund's sensitivity to market movements, relative to the S&P 500.
(By definition, the beta of the S&P 500 is 1.00.)
R(2)
Reflects the percentage of a fund's movements that are explained by movements in
its benchmark index. An R(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
standard 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.
<PAGE>
[logo omitted]
BURNHAM
FINANCIAL GROUP
DISTRIBUTOR:
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]
THE BURNHAM FAMILY OF FUNDS aims to give investors the tools to build
prudent investment portfolios. The family offers a variety of approaches to
equity investing, as well as a choice of money market funds.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Burnham U.S. Burnham Burnham Dow Burnham
Treasury Money Money Market 30 Focused Financial
Market Fund Fund Fund Burnham Fund Services Fund
- ----------------------------------------------------------------------------------------------------------
MORE MORE
CONSERVATIVE AGGRESSIVE
</TABLE>
This report was prepared for current shareholders of the Burnham Family of
Funds, which are all part of Burnham Investors Trust. To be distributed to
potential shareholders, it must be accompanied by a current prospectus.
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.
