JUNE 30, 2000
SEMI-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
[GRAPHIC OMITTED] BURNHAM FINANCIAL GROUP
<PAGE>
THE PAST SIX MONTHS IN
REVIEW
[BEGIN SIDEBAR]
[PHOTO OMITTED - JOHN BURNHAM & I.W. BURNHAM, II]
BURNHAM NEWS AND VIEWS
Much has happened at Burnham during the past six months. The Burnham funds
selected First Data Investor Services Group (which was subsequently acquired by
PFPC Inc.) to serve as the funds' new transfer agent. PFPC is a leader in
employing technology to enhance shareholder services. We are looking forward to
introducing several new services to you over the coming months, including
on-line account inquiry and transactional capability, as well as after-tax
return reporting.
We continue to update and expand our website, WWW.BURNHAMFUNDS.COM. Look for new
press releases, articles, links, video streaming of portfolio manager
appearances, and audio market commentary. Please "bookmark" our website and take
advantage of its many new features expected later in the fall.
We have just celebrated the 25th anniversary of the Burnham Fund, and the first
anniversary of Burnham Investors Trust. A notable track record is being
established, and print media attention has started to focus on stellar
performance. The September 2000 issue of SmartMoney magazine has named the
Burnham Fund one of the "Ten Best Funds to Buy Now." Its portfolio manager, Jon
Burnham, continues to be a guest on CNBC, CNN/fn, and Bloomberg television.
Finally, I.W. Burnham, II has retired as Chairman of the Board of Trustees. As
Chairman of the Trust and its predecessors since inception, and as a leader in
the financial industry for the past 60 years, his contributions are
immeasurable. We look forward to his continued insight and work with the funds
in his role as Honorary Chairman. Jon Burnham has been named Chairman and CEO,
and continues as Burnham Fund manager.
/S/ SIGNATURE OMITTED - JON BURNHAM
JON BURNHAM
CHAIRMAN AND CEO
/S/ SIGNATURE OMITTED - I.W. BURNHAM, II
I. W. BURNHAM, II
HONORARY CHAIRMAN
[END SIDEBAR]
A stock market correction took down stock markets during March and April of this
year. Hardest hit were larger capitalization growth companies and tech
companies, including many Nasdaq issues. In general, these stocks had grown
quite expensive compared to the overall market.
Investors were not entirely indiscriminate: companies with real earnings and
real businesses generally fared better than "story" companies with growing
losses and no projected earnings for the foreseeable future. For somewhat
separate reasons, companies with cyclical businesses also fell as economic
pressures such as higher interest rates, rising energy costs, and strong global
competition took their toll on earnings.
[TRIANGLE GRAPHIC OMITTED]
-0.4%
S&P 500
[TRIANGLE GRAPHIC OMITTED]
-2.5%
NASDAQ
[TRIANGLE GRAPHIC OMITTED]
-8.5%
DJIA
(BULLET) INTEREST RATES CONTINUED TO RISE. With economic reports released during
the first half of 2000 showing continued strong growth even after six
months of rising interest rates, the Federal Reserve raised rates on
three more occasions during the report period. The Fed's stated goal
remains that of engineering a "soft landing" to an economy of gradual
growth that is below inflation-producing levels.
(BULLET) MERGERS AND ACQUISITIONS CONTINUED at a rapid pace, even as some deals
announced earlier ultimately unraveled due to anti-trust concerns.
MAJOR MERGERS AND ACQUISITIONS
ANNOUNCED IN THE FIRST HALF OF 2000
--------------------------------------
Vivendi and Seagrams
--------------------------------------
Unilever and Best Foods
--------------------------------------
BP Amoco and Atlantic Richfield
--------------------------------------
Pfizer and Warner Lambert
--------------------------------------
Tyco International and Mallinckrodt
--------------------------------------
AOL and Time Warner
--------------------------------------
Nabisco Holdings and Philip Morris
--------------------------------------
(BULLET) RETAIL CONSUMER SPENDING ACCELERATED DURING THE FIRST HALF OF 2000 to
an annualized growth of 7.0%. This acceleration appeared to be due to
historically high tax refunds, continued low unemployment, and an
increase in personal disposable income. Also up was industrial
production, led by strength in the technology sector (manufacturing
growth remained steady at 1%).
[PHOTO OMITTED - HAND HOLDING CREDIT CARD]
(BULLET) HIGHER LENDING RATES APPEARED TO TAKE THEIR TOLL ON THE HOUSING SECTOR,
as building permits and housing starts declined significantly compared
to the same period last year. The impact of this decline is likely to
flow through to the manufacturing sector over the next year.
GROSS DOMESTIC PRODUCT
% change from preceding period
[BAR GRAPH OMITTED - PLOT POINTS AS FOLLOWS]
1997 4.2%
1998 4.3%
1999 4.2%
Q1 2000* 5.5%
* QUARTERLY ESTIMATE EXPRESSED AT A SEASONALLY ADJUSTED ANNUAL RATE.
PRICE CHANGES, FIRST HALF OF 2000
Selected Components of Urban CPI, 6 month seasonally adjusted.
[BAR GRAPH OMITTED - PLOT POINTS AS FOLLOWS]
APPAREL -3.9%
FOOD 2.3%
HOUSING 4.3%
MEDICAL CARE 4.4%
TRANSPORTATION 9.5%
ENERGY 26.6%
SOURCE: CUREAU OF LABOR STATISTICS, JULY 18, 2000.
<PAGE>
S&P 500: BEST AND WORST SECTORS, FIRST HALF OF 2000
[BAR GRAPH OMITTED - PLOT POINTS AS FOLLOWS]
BASIC MATERIALS -25.5%
CONSUMER CYCLICAL -20.5%
COMMUNICATION SERVICES -16.4%
ENERGY 3.4%
UTILITIES 13.4%
HEALTH CARE 22.9%
[PHOTO OMITTED - OIL RIG]
(BULLET) EQUITY MARKETS RETURNED TO A FOCUS ON QUALITY OF EARNINGS, and showed
increasing frustration with risk and lack of profits. Best-performing
industries included pharmaceuticals (with significant new drug
announcements), utilities (due to increased utilization), energy
(because of high crude oil prices), and profitable technology firms
that could show strong unit growth. Battered were unprofitable Internet
firms, cellular communications firms, and consumer retailers.
(BULLET) EARNINGS PROJECTIONS FOR 2000 WERE DOWN IN SOME SECTORS BUT UP OVERALL.
While most analysts have reduced their earnings estimates for
economically sensitive sectors of the S&P 500, the consensus view
projects 11% increases for 2000 and 10% for 2001. Thus far, the
strongest sectors of the economy in terms of profit growth have been
technology, services, utilities, consumer staples, pharmaceuticals, and
energy.
(BULLET) FIXED INCOME MARKETS PERFORMED WELL IN THE FIRST HALF OF THE YEAR, on
expectations that the Fed has nearly completed its interest rate
tightening and that the economy will begin to show signs of softening.
-----------------------------------------------
Lehman Brothers Long-Term Bond Index +9.1%
-----------------------------------------------
30-year Treasury Bond yield 5.9%
-----------------------------------------------
10-year Treasury Bond yield 6.2%
-----------------------------------------------
LOOKING AHEAD
We believe that the Federal Reserve maybe through raising interest rates. Market
volatility, surging oil prices, and higher interest rates have slowed consumer
growth, but the Fed is still concerned that rising wages -- even though
accompanied by higher productivity -- pose an inflation threat. If evidence of a
slowdown does materialize, the Fed's next move may be a reduction of rates,
probably not until after the November election. We believe the Fed will
successfully engineer a "soft landing" and we do not see signs of recession on
the horizon.
No matter which party prevails in the elections, we believe that significant tax
changes are likely. The federal surplus continues to grow, and Congress is under
pressure to encourage savings and to cut taxes. However, those who favor a
healthy surplus argue that a surplus would likely mitigate the effects of an
economic downturn. This faction also notes that when the federal government is a
net buyer of bonds, it helps keep long-term interest rates low and improves
liquidity in the corporate bond market. We see positive potential for the
economy in both views.
We expect the new issue market to remain fairly cool, and we see investors
returning to fundamentals and focusing on the quality of reported earnings. We
do expect disappointing results in several sectors, particularly those that are
unable to raise prices for their goods and services. The rise of the dollar
against other currencies, coupled with strong worldwide competition, is likely
to keep prices down. Export volume has slackened in the manufacturing and basic
industrial sectors, while retail prices within the US have been declining for
two years. Incidentally, e-retail is growing slowly, now at 0.7% of total retail
sales -- not encouraging for internet retail growth. We expect losses at
e-retail firms to continue to mount and consolidation to accelerate.
While we caution that the market is volatile and continues to be sensitive to
negative earnings surprises, overall we are optimistic about the market during
the rest of 2000.
[BEGIN SIDEBAR]
THE FUNDS
[TRIANGLE GRAPHIC OMITTED]
Burnham Fund
+10.5% CLASS A
The fund outperformed its peers and the S&P 500 by a wide margin during the
report period.
PERFORMANCE AND DISCUSSION 4
PORTFOLIO AND FINANCIALS 17
-----------------------------------
[TRIANGLE GRAPHIC OMITTED]
Burnham Dow 30(SERVICE MARK)
Focused Fund
-9.3%
Both the fund and the index ended the first half of 2000 down.
PERFORMANCE AND DISCUSSION 6
PORTFOLIO AND FINANCIALS 22
-----------------------------------
[TRIANGLE GRAPHIC OMITTED]
Burnham Financial
Services Fund
+8.3% CLASS A
Fear of rising interest rates hampered financial services stocks, but the fund
significantly outperformed its peers.
PERFORMANCE AND DISCUSSION 8
PORTFOLIO AND FINANCIALS 25
-----------------------------------
[TRIANGLE GRAPHIC OMITTED]
Burnham Money
Market Fund
+2.6%
The fund's total return for the report period equates to an annualized yield
of 5.3%.
PERFORMANCE AND DISCUSSION 10
PORTFOLIO AND FINANCIALS 30
-----------------------------------
[TRIANGLE GRAPHIC OMITTED]
Burnham U.S. Treasury Money Market Fund
+2.6%
The fund returned an annualized yield of 5.3% for the report period, while
providing a high degree of stability and liquidity.
PERFORMANCE AND DISCUSSION 12
PORTFOLIO AND FINANCIALS 34
[END SIDEBAR]
REVIEW 3
<PAGE>
BURNHAM FUND
[BEGIN SIDEBAR]
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 $216.0
Net asset value per share
Class A $46.09
Class B $46.96
------------------------------------
MAXIMUM OFFERING PRICE
Class A $48.52
------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement recovery
Class A 1.3%
Class B 2.1%
------------------------------------
INCEPTION
Class A June 15, 1975
Class B October 18, 1993
ALL DATA AS OF JUNE 30, 2000.
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]
"Our emphasis on companies with sustainable growth and our tendency to avoid
cyclicals helped the fund post strong gains in a tough market environment."
/S/ SIGNATURE OMITTED - JON BURNHAM
JON BURNHAM
Portfolio Manager
Although large-cap stocks finished the report period about where they started,
the Burnham Fund continued to advance. The fund outperformed its peer group, the
Morningstar Large-Cap Blend category, by 10% and the S&P 500 by 11%. This
performance helped push the fund even closer to the top of its peer group.
(BULLET) After the spring stock market correction, companies with sustainable
growth returned to favor. The correction was particularly harsh for
unprofitable internet companies and for industries that are
traditionally sensitive to a softening economy, such as housing,
consumer durable goods, and manufacturing. The fund's strategy of
avoiding unprofitable companies and cyclical industries helped insulate
the fund from much of the effect of the correction.
(BULLET) Sectors that the fund traditionally favors (technology, energy, and
health care) generally outperformed the market. Of the fund's 25 top
holdings, only seven were in negative territory (and only four by any
significant amount), and eight of our top ten holdings handily beat the
averages.
(BULLET) We expect market performance over the second half of the year to be
closely dependent on corporate earnings. World-wide competition
combined with a strong dollar has caused a fall-off in exports from the
manufacturing and basic in-dustrial sectors. Retail prices also have
been declining, due to the competitive influence of discounters and the
internet (although ironically, e-commerce sales remain flat at
approximately 0.7% of retail sales). The CPI continues to show modest
increases with the exception of energy-based products. All of these
factors can be expected to make it difficult for companies to maintain
their earnings momentum.
(BULLET) One potentially positive factor for stock markets is interest rates. We
believe that the Federal Reserve has finished raising interest rates
and will not interfere with the upcoming Presidential elections. Its
next move may in fact be a reduction of rates. Either a stable or
declining rate environment would likely spur the stock market to
continued growth.
(BULLET) The fund expects to continue to follow the investment disciplines that
have led to its success to date. The fund will seek companies showing
sustainable earnings growth of 20% or more, particularly when this
growth can be traced to expanding industry fundamentals and reasonable
control over pricing.
GROWTH OF $10,000 SINCE INCEPTION June '75
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
1975 10000
10385
9853
9514
9175
9673
9911
9792
10928
10998
11171
11206
11137
11670
11517
11434
11693
11386
11527
12130
11700
11437
11485
11615
11340
11854
11766
11546
11485
11229
11716
11656
11158
11070
11407
12229
12491
12379
13556
13899
13682
12396
12808
13167
13684
13346
13932
14065
13947
14487
14945
15796
16010
14985
15968
16265
1980 17758
17622
15526
16286
17277
17829
18641
19143
19798
20594
22509
21777
21074
21202
22273
22177
22741
22193
21658
20551
19647
20953
21766
21220
20904
20375
20375
21047
20740
20464
20188
22122
22325
24649
25502
25928
26532
27129
27563
29090
28910
29595
28701
28750
29262
28899
29500
29067
28898
28077
28145
28536
27394
28241
28343
30463
30463
30776
30724
31166
1985 33027
33209
33481
33625
35844
36579
36173
36285
35897
37473
39481
41191
41426
44533
46888
46720
48822
50145
48716
50708
47103
49665
50564
50170
54354
56170
56860
55990
56567
58903
60423
61493
60619
53515
51604
53524
55413
57209
56242
56264
56377
57606
58090
57468
58486
59825
59568
59883
62626
62357
63167
65170
66812
66632
69870
70974
70484
69970
71089
73520
1990 70175
70280
71004
69144
72539
72256
72863
69839
69518
69907
71459
72217
72614
75301
76332
76439
78044
75695
77731
79325
79515
81280
79354
85195
85595
86673
84030
85753
85384
84086
87416
87127
88077
87619
89836
91758
91602
93453
94864
93801
95724
96930
97560
100595
101228
100995
98794
100355
101469
99703
95416
96112
96689
95432
97789
100244
99011
100446
98016
98564
1995 100418
102777
103959
106298
109211
111078
112956
114164
117053
116741
119438
122663
126355
127075
128180
129283
131894
131116
124849
127870
134468
138180
146166
144252
152099
149787
145638
152002
159374
166387
178017
171146
177598
173993
176690
179923
179239
191141
200621
205537
201714
209439
206046
170133
181446
191571
202395
219679
231037
220086
233687
241796
231592
245603
237277
257872
269657
Dec 1999 291553
289940
296399
313590
306440
300434
322035
$322,035
-------------------------
Annualized Rate of Return
14.9%
An investment in the Burnham Fund at its inception in 1975 would have grown by
more than 3,120% by the end of the report period.
4 BURNHAM FUND
<PAGE>
PORTFOLIO INVESTMENTS
------------------------------------
ASSET ALLOCATION
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Cash and cash equivalents 4%
Corporate bonds and convertible bonds 2%
Common stocks 94%
[GRAPHIC OMITTED - BRACKET]
The fund seeks capital appreciation, mainly long-term. Income is generally of
lesser importance.
% NET
TOP 10 INDUSTRIES - COMMON STOCK ASSETS
------------------------------------------------------
Computer Products and Software 33.4%
------------------------------------------------------
Banking 8.7%
------------------------------------------------------
Pharmaceuticals 8.0%
------------------------------------------------------
Energy - Oil and Gas Refining 7.4%
------------------------------------------------------
Semiconductors 4.8%
------------------------------------------------------
Telecommunication Networks and Services 4.8%
------------------------------------------------------
Diversified Financial Services 2.9%
------------------------------------------------------
Consumer Products 2.8%
------------------------------------------------------
Real Estate Investment Trusts 2.7%
------------------------------------------------------
Automotive 2.5%
------------------------------------------------------
78.0%
=====
% NET
TOP 10 COMMON STOCK HOLDINGS ASSETS
-----------------------------------------
Siebel Systems, Inc. 15.2%
-----------------------------------------
Pfizer Inc. 5.1%
-----------------------------------------
EMC Corp. 5.1%
-----------------------------------------
Citigroup, Inc. 5.0%
-----------------------------------------
Intel Corp. 4.3%
-----------------------------------------
Cisco Systems, Inc. 4.1%
-----------------------------------------
IBM 3.8%
-----------------------------------------
Exxon Mobil Corp. 3.6%
-----------------------------------------
American Express Co. 2.9%
-----------------------------------------
General Electric Co. 2.8%
-----------------------------------------
51.9%
=====
TOTAL RETURN
--------------------------------------------------
GROWTH OF $10,000 OVER TEN YEARS
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
BURNHAM FUND BURNHAM FUND S&P 500 INDEX* MORNINGSTAR
WITH SALES CHARGE WITHOUT SALES CHARGE LARGE CAP BLEND*
JUL 1, '90 9500.00 10000.00 10000.00 10000.00
9579.80 10084.00 9968.00 9903.00
9182.24 9665.51 9066.89 9086.00
9140.00 9621.05 8625.34 8651.69
9191.18 9674.93 8588.25 8552.20
9395.23 9889.71 9143.05 9058.49
9494.82 9994.54 9398.14 9318.47
9547.04 10049.50 9807.90 9778.80
9900.28 10421.40 10509.20 10452.60
10035.90 10564.10 10763.50 10722.20
10050.00 10578.90 10789.30 10712.60
10261.00 10801.10 11254.30 11142.20
9952.16 10476.00 10738.90 10645.20
10219.90 10757.80 11239.30 11137.00
10429.40 10978.30 11505.70 11422.10
10454.40 11004.60 11313.50 11302.20
10686.50 11248.90 11465.10 11503.40
10433.20 10982.30 11003.10 11073.10
11201.10 11790.60 12261.90 12281.20
11253.80 11846.10 12033.80 12202.60
11395.50 11995.30 12190.20 12382.00
11048.00 11629.50 11952.50 12112.10
11274.50 11867.90 12303.90 12244.10
11226.00 11816.80 12364.20 12326.10
11055.40 11637.20 12180.00 12045.10
11493.10 12098.00 12674.50 12467.90
11455.20 12058.10 12414.70 12226.00
11580.10 12189.60 12561.20 12393.50
11519.90 12126.20 12603.90 12531.10
11811.30 12433.00 13033.60 13041.10
12064.10 12699.00 13194.00 13226.30
12043.60 12677.50 13304.80 13351.90
12286.90 12933.50 13488.40 13389.30
12472.40 13128.80 13773.00 13738.80
12332.70 12981.80 13439.70 13439.30
12585.50 13247.90 13798.50 13807.50
12744.10 13414.80 13838.60 13843.40
12826.90 13502.00 13783.20 13806.00
13225.90 13921.90 14305.60 14336.20
13309.20 14009.60 14195.40 14362.00
13278.60 13977.40 14489.30 14584.60
12989.10 13672.70 14351.60 14355.60
13194.30 13888.80 14525.30 14677.20
13340.80 14042.90 15019.10 15124.80
13108.60 13798.60 14612.10 14834.40
12545.00 13205.20 13975.00 14202.50
12636.50 13301.60 14153.90 14323.20
12712.40 13381.40 14386.00 14434.90
12547.10 13207.50 14033.60 14056.70
12857.00 13533.70 14493.90 14451.70
13179.70 13873.40 15088.10 15000.90
13017.60 13702.80 14718.50 14681.40
13206.40 13901.50 15049.60 14895.70
12886.80 13565.00 14501.80 14365.40
12959.00 13641.00 14716.50 14519.10
13202.60 13897.50 15097.60 14728.20
13512.80 14224.00 15686.40 15265.80
13668.20 14387.60 16149.20 15668.80
13975.80 14711.30 16624.00 16024.50
14358.70 15114.40 17288.90 16550.10
14604.20 15372.90 17690.00 17001.90
14851.00 15632.70 18277.30 17612.30
15010.00 15800.00 18323.00 17682.80
15389.70 16199.70 19096.30 18268.00
15348.70 16156.60 19027.50 18132.90
15703.30 16529.80 19862.80 18870.90
16127.30 16976.10 20246.20 19127.50
16612.70 17487.10 20934.50 19659.30
16707.40 17586.80 21129.20 19965.90
16852.80 17739.80 21332.10 20143.60
16997.70 17892.30 21645.70 20492.10
17341.00 18253.70 22204.10 20949.10
17238.70 18146.00 22288.50 20930.20
16414.70 17278.70 21303.30 20017.70
16812.00 17696.80 21752.80 20518.10
17679.50 18610.00 22977.50 21568.70
18167.40 19123.60 23611.70 21961.20
19217.50 20228.90 25396.80 23399.70
18965.70 19963.90 24893.90 23037.00
19997.50 21050.00 26449.80 24172.70
19693.50 20730.00 26656.10 24184.80
19148.00 20155.80 25560.50 23231.90
19984.80 21036.60 27086.50 24265.70
20954.00 22056.90 28736.00 25741.10
21876.00 23027.40 30023.40 26781.00
23405.20 24637.00 32413.30 28835.10
22501.70 23686.00 30598.10 27577.90
23350.00 24579.00 32274.90 29023.00
22876.00 24080.00 31196.90 28056.50
23230.60 24453.30 32641.30 28909.40
23655.70 24900.80 33202.80 29377.80
23565.80 24806.10 33571.30 29583.40
25130.60 26453.30 35991.80 31624.70
26377.10 27765.30 37834.60 33022.50
27023.30 28445.60 38216.70 33293.30
26520.70 27916.50 37559.40 32594.10
27536.40 28985.70 39084.30 33598.00
27090.30 28516.10 38670.00 33040.30
22368.50 23545.80 33078.30 28299.00
23856.00 25111.60 35198.70 29770.50
25187.20 26512.80 38060.30 31958.70
26610.20 28010.80 40366.80 33738.80
28882.70 30402.90 42691.90 35756.40
30376.00 31974.70 44476.40 36882.70
28936.20 30459.10 43093.20 35724.60
30724.40 32341.50 44816.90 37003.50
31790.50 33463.70 46551.30 38306.00
30449.00 32051.60 45452.70 37509.30
32291.20 33990.70 47975.30 39482.20
31383.80 33035.60 46478.50 38424.10
31713.30 33382.40 46246.10 37989.90
31196.40 32838.30 44979.00 37112.40
33904.20 35688.70 47826.10 39149.80
35453.60 37319.60 48797.00 40089.40
38332.50 40350.00 51671.20 42631.10
38048.80 40051.40 49077.30 40810.80
38969.60 41020.60 48149.70 40884.20
41229.80 43399.80 52858.70 44093.60
40289.80 42410.30 51267.70 42775.20
39500.10 41579.10 50216.70 41770.00
JUN 30, '00 42340.20 44568.60 51457.10 42914.50
WITH NO WITH MAX.
AVERAGE SALES CHARGE SALES CHARGE
ANNUAL RETURN OR CDSC OR CDSC
---------------------------------------------
CLASS A
---------------------------------------------
One year 31.1% 24.6%
---------------------------------------------
Three years 24.6% 22.5%
---------------------------------------------
Five years 23.7% 22.5%
---------------------------------------------
Ten years 16.1% 15.5%
---------------------------------------------
Fifteen years 15.6% 15.2%
---------------------------------------------
Twenty years 15.6% 15.3%
---------------------------------------------
Since inception 14.9% 14.6%
---------------------------------------------
CLASS B
---------------------------------------------
One year 30.1% 26.1%
---------------------------------------------
Three years 23.6% 23.0%
---------------------------------------------
Five years 22.9% 22.7%
---------------------------------------------
Since inception 18.0% 18.0%
WITH NO WITH MAX.
CUMULATIVE SALES CHARGE SALES CHARGE
TOTAL RETURN OR CDSC OR CDSC
---------------------------------------------
CLASS A
---------------------------------------------
One year 31.1% 24.6%
---------------------------------------------
Three years 93.5% 83.9%
---------------------------------------------
Five years 189.9% 175.4%
---------------------------------------------
Ten years 345.7% 323.4%
---------------------------------------------
Fifteen years 780.4% 736.4%
---------------------------------------------
Twenty years 1,706.3% 1,616.0%
---------------------------------------------
Since inception 3,120.4% 2,959.3%
---------------------------------------------
CLASS B
---------------------------------------------
One year 30.1% 26.1%
---------------------------------------------
Three years 88.9% 85.9%
---------------------------------------------
Five years 180.1% 179.1%
---------------------------------------------
Since inception 201.9% 201.9%
[BEGIN SIDEBAR]
PERFORMANCE OVER
THE PAST SIX MONTHS
[TRIANGLE GRAPHIC OMITTED]
10.5%
FUND (CLASS A)
[TRIANGLE GRAPHIC OMITTED]
-0.4%
SECTOR
[TRIANGLE GRAPHIC OMITTED]
0.7%
PEER GROUP
THE FUND posted strong performance relative to the overall stock market. For the
report period, Class B shares returned 10.1%.
THE SECTOR is represented by the S&P 500 Index(REGISTRATION MARK) ("Standard &
Poor's 500 Composite Stock Index"), an unmanaged index that includes 500
large-cap stocks.
THE PEER GROUP is represented by the funds in the Morningstar Large Cap Blend
category.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND SECTOR PEER GROUP
DECEMBER 1999 0.00 0.00 0.00
JANUARY 2000 -0.74 -5.02 -4.27
FEBRUARY 2000 1.66 -6.82 -4.10
MARCH 2000 7.56 2.30 3.43
APRIL 2000 5.11 -0.78 0.34
MAY 2000 3.05 -2.81 -2.02
JUNE 2000 10.50 -0.41 0.66
-----------------------------------------------
MODERN PORTFOLIO THEORY STATISTICS
THREE-YEAR RANGE
------------------------------------
Beta 0.95
------------------------------------
R2 84
------------------------------------
Alpha 5.07
------------------------------------
Standard Deviation 22.28
------------------------------------
Sharpe Ratio 0.99
------------------------------------
FOR EXPLANATION OF THESE MODERN PORTFOLIO THEORY TERMS, TURN TO THE INSIDE
BACK COVER.
* KEEP IN MIND THAT INDICES HAVE NO MANAGEMENT FEES OR BROKERAGE COSTS.
[END SIDEBAR]
BURNHAM FUND 5
<PAGE>
BURNHAM
Dow 30(SERVICE MARK) Focused Fund
[BEGIN SIDEBAR]
INVESTMENT FOCUS
STYLE
---------------------------------------------------
MARKET CAP VALUE BLEND GROWTH
---------------------------------------------------
LARGE O
---------------------------------------------------
MEDIUM
---------------------------------------------------
SMALL
---------------------------------------------------
TICKER SYMBOL N/A
------------------------------------
PORTFOLIO MANAGER
David Leibowitz
Since inception
------------------------------------
MINIMUM INVESTMENT
Regular accounts $1,000
IRAs None
------------------------------------
ASSET VALUES
Net assets, in millions $0.5
Net asset value per share $9.32
------------------------------------
EXPENSE RATIO
Annualized, after expense
reimbursement 1.2%
------------------------------------
INCEPTION
May 3, 1999
ALL DATA AS OF JUNE 30, 2000.
PERFORMANCE INFORMATION ASSUMES ALL DISTRIBUTIONS WERE REINVESTED. PAST
PERFORMANCE ISN'T A PREDICTION OF FUTURE PERFORMANCE. READ THE PROSPECTUS BEFORE
INVESTING.
[END SIDEBAR]
[PHOTO OMITTED - DAVID LEIBOWITZ]
"The second quarter's sell-off in the technology sector also took its toll on
the Dow. It remains to be seen if this longest running bull market has finally
run its course or is just waiting for the Fed's all clear signal."
/S/ SIGNATURE OMITTED - DAVID LEIBOWITZ
DAVID LEIBOWITZ
Portfolio Manager
The first six months of 2000 proved to be a trying time for the Dow Jones
Industrial Average and for the fund. The Dow continued to trade in a narrow
range, as it has since the fund's inception just over a year ago. Even so, the
index has shown tremendous volatility. With intra-day moves of 100 points or
more becoming commonplace, the Dow is on track to set an all-time record for
volatility in 2000. Neither the narrow range nor the volatility helped
performance, as both the fund and the index lost ground during the report
period.
(BULLET) It is only when compared with many internet and technology stocks that
the Dow looks relatively reasonable. Still, valuations for some
specific component companies are far from outrageous.
(BULLET) Even after this spring's market downturn, the Dow is trading in
uncharted territory when it comes to historic valuation criteria. Such
measures as price/earnings ratio, yield, price/book ratio, cash flow,
and the rate of earnings growth compared to price/earnings ratio all
remain high for the stocks in the Dow.
(BULLET) The ratio of advancing versus declining stocks continues to weigh on
the downside and gives us reason to be cautious.
(BULLET) Interest rates, however, offer a cause for hope. If the Fed refrains
from further rate hikes, the positive impact on the Dow could be
significant. While some believe that the Fed has finished tightening
for now, we believe any further rate increases could return the Dow to
the lows it set late in 1999.
(BULLET) We expect the political conventions and the intensification of the
presidential campaign to do little to stabilize the market in the
near-term. A more significant factor in the long-term, however, will be
the outcome of the election. Historically, a landslide victory in a
presidential election (a margin of at least ten percentage points) has
tended to signal a market rally. If a single party winds up with
control of the White House and both houses of Congress -- as is
possible for the first time in many years -- this too could tend to
have a positive effect on stock prices.
(BULLET) At the end of the report period, the fund was 94.3% 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 in
which they are represented in the average.
(BULLET) The fund responded to the changes in the Dow's composition by
increasing its positions in the companies the in- dex dropped. As of
the end of the re-port period, these positions represented some 21% of
the fund's net assets. The underperformance of two of these positions
was a major factor in the fund's performance relative to its benchmark.
The Fund also overweighted three of last year's worst performers. To
date, each has faired better than the Dow.
6 DOW 30(SERVICE MARK) FOCUSED FUND
<PAGE>
PORTFOLIO INVESTMENTS
--------------------------------------------------------
DJIA COMPONENTS AND WEIGHTINGS
----------------------------------------------
Intel Corp. 7.24%
----------------------------------------------
Hewlett-Packard Co. 6.76%
----------------------------------------------
Morgan (J.P.) & Co. 5.96%
----------------------------------------------
International Business Machines Corp. 5.93%
----------------------------------------------
Johnson & Johnson 5.52%
----------------------------------------------
Minnesota Mining & Manufacturing Co. 4.47%
----------------------------------------------
Microsoft Corp. 4.33%
----------------------------------------------
Exxon Mobil Corp. 4.25%
----------------------------------------------
Merck & Co. 4.15%
----------------------------------------------
Citigroup Inc. 3.26%
----------------------------------------------
Eastman Kodak Co. 3.22%
----------------------------------------------
United Technologies 3.19%
----------------------------------------------
General Motors Corp. 3.14%
----------------------------------------------
Wal-Mart Stores Inc. 3.12%
----------------------------------------------
Coca-Cola Co., The 3.11%
----------------------------------------------
Proctor & Gamble Co. 3.10%
----------------------------------------------
General Electric Co. 2.87%
----------------------------------------------
American Express Co. 2.82%
----------------------------------------------
Home Depot Inc. 2.71%
----------------------------------------------
DuPont (E.I.) De Nemours & Co. 2.37%
----------------------------------------------
SBC Communications 2.34%
----------------------------------------------
Boeing Co., The 2.26%
----------------------------------------------
Disney (Walt) Co. 2.10%
----------------------------------------------
Caterpillar Inc. 1.83%
----------------------------------------------
Honeywell International Inc. 1.83%
----------------------------------------------
McDonald's Corp. 1.78%
----------------------------------------------
AT&T Corp. 1.71%
----------------------------------------------
International Paper Co. 1.62%
----------------------------------------------
ALCOA Inc. 1.57%
----------------------------------------------
Morris (Philip) Cos. 1.44%
[GRAPHIC OMITTED - BRACKET]
The fund seeks capital appreciation.
ASSET ALLOCATION
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Common stocks 94%
Cash and cash equivalents 6%
% NET
TOP INDUSTRIES ASSETS
-----------------------------------------
Technology 18.0%
-----------------------------------------
Energy 11.4%
-----------------------------------------
Financial Services 8.3%
-----------------------------------------
Consumer/Non-Cyclicals 7.6%
-----------------------------------------
Retail Stores 7.3%
-----------------------------------------
Conglomerates 7.3%
-----------------------------------------
Consumer/Cyclicals 6.8%
-----------------------------------------
Healthcare 6.7%
-----------------------------------------
Industrial Cyclicals 5.0%
-----------------------------------------
Communications Services 4.5%
-----------------------------------------
Basic Materials 3.8%
-----------------------------------------
Capital Goods 2.8%
-----------------------------------------
89.5%
=====
% NET
TOP COMMON STOCK HOLDINGS ASSETS
-----------------------------------------
DIAMONDS Trust, Series 1 69.1%
-----------------------------------------
Chevron Corp.* 8.5%
-----------------------------------------
Union Carbide Co.* 5.0%
-----------------------------------------
Sears, Roebuck & Co.* 3.3%
-----------------------------------------
Eastman Kodak Co. 2.4%
-----------------------------------------
88.3%
=====
TOTAL RETURN
----------------------------------------------------------
GROWTH OF $10,000 SINCE INCEPTION
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
BURNHAM DOW
30(SERVICE MARK)
FOCUSED FUND DJIA INDEX(DAGGER)
1/3/99 10000.00 10000.00
MAY-99 9680.00 9604.00
JUN-99 10060.40 9990.08
JUL-99 9760.62 9707.36
AUG-99 9940.22 9888.89
SEP-99 9550.56 9451.80
OCT-99 9881.01 9815.69
NOV-99 9900.77 9969.80
DEC-99 10322.50 10549.00
JAN 00 9769.26 10041.60
FEB 00 9035.59 9313.62
MAR 00 9769.28 10055.00
APR 00 9698.94 9888.07
MAY 00 9618.44 9712.06
JUN 00 9367.40 9654.76
AVERAGE ANNUAL RETURN
-----------------------------------------
One year (6.9%)
-----------------------------------------
Since inception (5.5%)
CUMULATIVE TOTAL RETURN
-----------------------------------------
One year (6.9%)
-----------------------------------------
Since inception (6.3%)
[BEGIN SIDEBAR]
PERFORMANCE OVER THE PAST SIX MONTHS
[TRIANGLE GRAPHIC OMITTED]
-9.3%
FUND
[TRIANGLE GRAPHIC OMITTED]
-8.5%
SECTOR
[TRIANGLE GRAPHIC OMITTED]
-1.8%
PEER GROUP
THE FUND lagged both its benchmark and its peer group for the report period.
THE SECTOR is represented by the DJIA(SERVICE MARK) (Dow Jones Industrial
Average), an unmanaged average of the prices of 30 large-cap stocks.
THE PEER GROUP is represented by the funds in the Morningstar Large Cap Value
category.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND SECTOR PEER GROUP
DECEMBER 99 0.00 0.00 0.00
JANUARY 00 -5.36 -4.81 -4.08
FEBRUARY 00 -12.47 -11.71 -8.76
MARCH 00 -5.36 -4.68 0.39
APRIL 00 -6.04 -6.27 -0.32
MAY 00 -6.82 -7.93 0.42
JUNE 00 -9.25 -8.48 -1.82
MODERN PORTFOLIO THEORY STATISTICS
will be available when the fund has been in operation for three years.
* SECURITIES DROPPED FROM THE DOW JONES INDUSTRIAL AVERAGE AS OF NOVEMBER 1,
1999.
(DAGGER) KEEP IN MIND THAT INDICES HAVE NO MANAGEMENT FEES OR BROKERAGE COSTS.
[END SIDEBAR]
DOW 30(SERVICE MARK) FOCUSED FUND 7
<PAGE>
BURNHAM
Financial Services Fund
[BEGIN SIDEBAR]
INVESTMENT FOCUS
STYLE
---------------------------------------------------
MARKET CAP VALUE BLEND GROWTH
---------------------------------------------------
LARGE
---------------------------------------------------
MEDIUM
---------------------------------------------------
SMALL 0
---------------------------------------------------
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 $3.8
Net asset value per share
Class A $10.59
Class B $10.53
------------------------------------
MAXIMUM OFFERING PRICE
Class A $11.15
------------------------------------
EXPENSE RATIOS
Annualized, after expense
reimbursement
Class A 1.6%
Class B 2.1%
------------------------------------
INCEPTION
Both classes June 7, 1999
ALL DATA AS OF JUNE 30, 2000. 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.
[END SIDEBAR]
[PHOTO OMITTED - ANTON SCHUTZ]
"By taking a conservative, risk-managed approach during the report period, the
fund was able to outperform in what proved to be a challenging time for
financial services stocks."
/S/ SIGNATURE OMITTED - ANTON SCHUTZ
ANTON SCHUTZ
Portfolio Manager
With the Fed raising interest rates and the future health of the U.S. economy in
doubt, financial services stocks found themselves somewhat out of favor with
investors during the report period. Anticipating this environment, the fund
focused on risk management, in particular by seeking out companies that were
trading below book value and that had active stock buyback programs in place. As
a result, the fund's performance for the report period far exceeded that of its
benchmark, its peer group, and even the S&P 500.
(BULLET) Merger and acquisition activity continued in the industry, but at a
much slower pace than in recent years. Through our research, we
identified several potential sellers and were actively involved in much
of the deal activity. For example, we bought stock in Cohoes Bancorp
when it entered into a merger of equals with Hudson River. It has since
received hostile offers at higher prices from Ambanc and from TrustCo.
The following table shows the companies we held that were acquired
during the report period.
PORTFOLIO COMPANIES ACQUIRED
DURING REPORT PERIOD
PORTFOLIO COMPANY ACQUIRING COMPANY
--------------------------------------
Keystone Financial M&T Bank
--------------------------------------
First Security Wells Fargo
--------------------------------------
Haven Bancorp Queens County
--------------------------------------
CCB Financial NCBC
--------------------------------------
BSB Bancorp NBT Bancorp
--------------------------------------
(BULLET) The fund avoided the more volatile financials, such as brokerage firms
and companies whose business is concentrated in credit card lending,
and maintained comparatively limited exposure to commercial banks as
we began to see a decline in credit quality for these firms. One of the
commercial banks we do hold is FleetBoston, which has built a strong
reserve position of over 2% against bad loans. We also wrote covered
calls on many positions to minimize risk and create income.
[BAR GRAPH OMITTED - PLOT POINTS AS FOLLOWS]
FIRST HALF OF 2000
Fund +8.3%
Nasdaq Banking Index -11.5%
Nasdaq FINANCIAL Index -14.2%
(BULLET) As noted earlier in this report, we anticipate that we are near the end
of the Fed rate hikes. We believe that the most interest rate-sensitive
financials -- the thrifts -- will benefit most from the changing rate
environment, as they are likely to enjoy widening margins and improving
earnings growth. This in turn may lure momentum investors, who would
anticipate rising stock prices due to increased earnings.
(BULLET) In general, the financial services sector is underweighted in the
portfolios of many broad-market mutual funds. If financial services
stocks begin to rally and their fundamentals improve, these funds will
look to increase their holdings in this sector. The fund is well
positioned to benefit from a more benign rate environment. At the same
time, the fund remains conservatively positioned to protect against
potential downside risk should the credit cycle unexpectedly worsen.
8 FINANCIAL SERVICES FUND
<PAGE>
PORTFOLIO INVESTMENTS
------------------------------------------------------------------
ASSET ALLOCATION
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Common stocks 94%
Cash and cash equivalents 6%
[GRAPHIC OMITTED - BRACKET]
The fund seeks capital appreciation.
%NET
TOP INDUSTRIES - COMMON STOCK ASSETS
------------------------------------------
Banks-- Regional 33.7%
------------------------------------------
Savings and Loan Companies--
Regional 19.2%
------------------------------------------
Savings and Loan Companies--
Major Regional 18.5%
------------------------------------------
Banks-- Major Regional 10.1%
------------------------------------------
Diversified Financial Services 8.3%
------------------------------------------
Banks-- Money Center 1.8%
------------------------------------------
Savings and Loan Companies--
National 1.2%
------------------------------------------
Insurance Companies 1.2%
------------------------------------------
94.0%
=====
% NET
TOP 10 COMMON STOCK HOLDINGS ASSETS
------------------------------------------
Cohoes Bancorp, Inc. 6.3%
------------------------------------------
Hudson United Bancorp 6.2%
------------------------------------------
BostonFed Bancorp, Inc. 5.5%
------------------------------------------
Hamilton Bancorp, Inc. 4.6%
------------------------------------------
Capitol Federal Financial 4.3%
------------------------------------------
Roslyn Bancorp Inc. 4.1%
------------------------------------------
Connecticut Bancshares, Inc. 3.8%
------------------------------------------
Sovereign Bancorp, Inc. 3.7%
------------------------------------------
FleetBoston Financial Corp. 3.5%
------------------------------------------
Astoria Financial Corp. 3.4%
------------------------------------------
45.4%
=====
TOTAL RETURN
---------------------------------------------------------------------
GROWTH OF $10,000 SINCE INCEPTION
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
BURNHAM FINANCIAL BURNHAM FINANCIAL
SERVICES FUND SERVICES FUND NASDAQ 100
WITHOUT SALES CHARGE WITH SALES CHARGE FINANCIAL INDEX*
6/7/99 10000.00 9500.00 10000.00
JUN-99 10510.00 9984.50 10010.00
JUL-99 10379.70 9860.69 9351.34
AUG-99 9900.13 9405.13 8783.72
SEP-99 9780.34 9291.33 8387.57
OCT-99 10450.30 9927.78 9070.32
NOV-99 10280.00 9765.96 9046.74
DEC-99 9810.16 9319.65 8723.77
JAN-00 9208.80 8748.36 8024.12
FEB-00 8667.32 8233.96 7442.37
MAR-00 9709.13 9223.68 8229.03
APR-00 9999.44 9499.66 7741.87
MAY-00 10580.40 10051.40 7895.16
JUN-00 10620.60 10089.60 7484.61
WITH NO WITH MAX.
AVERAGE SALES CHARGE SALES CHARGE
ANNUAL RETURN OR CDSC OR CDSC
--------------------------------------------
CLASS A
-----------------------------------------
One year 1.1% (4.0%)
-----------------------------------------
Since inception 5.7% 0.8%
CLASS B
-----------------------------------------
One year 0.1% (3.9%)
-----------------------------------------
Since inception 4.8% 1.1%
WITH NO WITH MAX.
CUMULATIVE SALES CHARGE SALES CHARGE
TOTAL RETURN OR CDSC OR CDSC
---------------------------------------------
CLASS A
-----------------------------------------
One year 1.1% (4.0%)
-----------------------------------------
Since inception 6.2% 0.9%
CLASS B
-----------------------------------------
One year 0.1% (3.9%)
-----------------------------------------
Since inception 5.2% 1.2%
[BEGIN SIDEBAR]
PERFORMANCE OVER
THE PAST SIX MONTHS
[TRIANGLE GRAPHIC OMITTED]
+8.3%
FUND (CLASS A)
[TRIANGLE GRAPHIC OMITTED]
-14.2%
SECTOR
[TRIANGLE GRAPHIC OMITTED]
-1.8%
PEER GROUP
THE FUND posted a sizeable gain for the report period, outperforming both its
peer group and the sector by a wide margin. Class B shares returned 7.9% to
investors over the similar period.
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 funds in the Morningstar Specialty --
Financial investment category.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND SECTOR PEER GROUP
DECEMBER 99 0.00 0.00 0.00
JANUARY 00 -6.13 -8.02 -4.92
FEBRUARY 00 -11.65 -14.69 -12.77
MARCH 00 -1.03 -5.67 -0.30
APRIL 00 1.93 -11.26 -3.30
MAY 00 7.85 -9.50 -1.96
JUNE 00 8.26 -14.20 -1.84
MODERN PORTFOLIO THEORY STATISTICS
will be available when the fund has been in operation for three years.
* KEEP IN MIND THAT INDICES HAVE NO MANAGEMENT FEES OR BROKERAGE COSTS.
[END SIDEBAR]
FINANCIAL SERVICES FUND 9
<PAGE>
BURNHAM
Money Market Fund
[BEGIN SIDEBAR]
TICKER SYMBOL 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 $65.5
Net asset value per share $1.00
------------------------------------
EXPENSE RATIO
Annualized, after expense
reimbursement recovery 0.9%
------------------------------------
INCEPTION
May 3, 1999
ALL DATA AS OF JUNE 30, 2000.
PERFORMANCE INFORMATION ASSUMES ALL DISTRIBUTIONS WERE REINVESTED. PAST
PERFORMANCE ISN'T A PREDICTION OF FUTURE PERFORMANCE. READ THE PROSPECTUS BEFORE
INVESTING.
[END SIDEBAR]
"Money market funds receive immediate benefits when interest rates rise. Our
comparatively short maturity meant that lower yielding securities could quickly
be replaced with higher yielding ones."
/S/ SIGNATURE OMITTED - MOLLY FLEWHARTY
MOLLY FLEWHARTY
Portfolio Manager
The year 2000 began with a Federal Funds rate of 5.50% and the Federal Reserve
Board declaring its bias to be "neutral." Yet by June, the situation had changed
substantially. The Fed Funds rate was 6.50% -- a full 100 basis points higher --
and the Fed had shifted its bias to "inflation," thus putting financial markets
on notice that further rate increases are possible. As of this report, we
believe that U.S. economic growth has probably peaked, but the extent of the
slowdown is still unclear, as is the Fed's next move.
(BULLET) Based on our view that further Fed Funds rate increases would be likely
during the report period, we kept the fund's weighted average maturity
shorter than that of the fund's peer group. While this strategy meant
that the fund sacrificed a small amount of yield initially, during late
May and early June the fund's yield increased at a faster rate than
that of the peer group average.
(BULLET) We believe that economic statistics released in the second half of the
year will allow us to anticipate future Fed rate changes. In the
meantime, at least one of the Fed's twenty-five basis point increases
is already reflected in current market rates.
(BULLET) During the report period we invested exclusively in short-term fixed
income securities of the highest credit quality, in keeping with the
fund's purpose of providing both safety and liquidity. We are pleased
to report that the fund's yield remained competitive during most of the
first half of 2000. During the second half of the year, we plan to
continue with our conservative investment policy while seeking to
achieve an acceptable rate of return.
10 MONEY MARKET FUND
<PAGE>
[GRAPHIC OMITTED - BRACKET}
The fund seeks maximum current income
that is consistent with maintaining
liquidity and preserving capital.
PORTFOLIO INVESTMENTS
------------------------------------------------------------------
ASSET ALLOCATION BY MATURITY
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
4-30 days 45.9%
31-89 days 9.1%
180-397 days 7.4%
Overnight-3 days 22.6%
90-180 days 15.0%
ASSET ALLOCATION BY TYPE
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Overnight repurchase agreements 19.6%
Other 11.5%
Discounted commercial paper 15.1%
Letter of credit commercial paper 25.5%
Variable rate demand 28.3%
YIELD AND TOTAL RETURN
------------------------------------------------------------------
YIELD AND MATURITY
-----------------------------------------
Daily yield 5.81%
-----------------------------------------
7-day effective yield 5.89%
-----------------------------------------
30-day effective yield 5.81%
-----------------------------------------
Weighted average days to maturity 49
-----------------------------------------
AVERAGE ANNUAL RETURN
-----------------------------------------
One year 5.0%
-----------------------------------------
Since inception 4.8%
-----------------------------------------
CUMULATIVE TOTAL RETURN
-----------------------------------------
One year 5.0%
-----------------------------------------
Since inception 5.6%
-----------------------------------------
[BEGIN SIDEBAR]
PERFORMANCE OVER
THE PAST SIX MONTHS
[TRIANGLE GRAPHIC OMITTED]
+2.6%
FUND
THE FUND had a total return for the report period that equates to an annualized
yield of 5.3%
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND
01-JAN 4.85%
08-JAN 4.96%
15-JAN 5.12%
22-JAN 5.08%
29-JAN 5.13%
05-FEB 5.11%
12-FEB 5.11%
19-FEB 5.10%
26-FEB 5.01%
04-MAR 5.06%
11-MAR 5.08%
18-MAR 5.09%
25-MAR 5.16%
31-MAR 5.21%
07-APR 5.26%
14-APR 5.29%
21-APR 5.30%
28-APR 5.27%
05-MAY 5.32%
12-MAY 5.37%
19-MAY 5.55%
26-MAY 5.66%
02-JUN 5.72%
09-JUN 5.79%
16-JUN 5.79%
23-JUN 5.83%
30-JUN 5.89%
IN THIS CHART, THE YIELD SHOWN ON A GIVEN DATE IS THE FUND'S 30-DAY YIELD AS
OF THAT DATE. BECASUE THESE FIGURES ARE CALCULATED USING THE SEC'S STANDARD
FORMULA, THEY ARE USEFUL FOR COMPARING THIS FUND'S YIELD TO THOSE OF OTHER
FUNDS, BUT THEY MAY BE SLIGHTLY DIFFERENT FROM THE ACTUAL YIELDS AN INVESTOR
IN THE FUND WOULD HAVE EARNED.
[END SIDEBAR]
MONEY MARKET FUND 11
<PAGE>
BURNHAM
U.S. TREASURY MONEY
MARKET FUND
[BEGIN SIDEBAR]
TICKER SYMBOL 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 $146.4
Net asset value per share $1.00
-------------------------------------
EXPENSE RATIO
Annualized, after expense
reimbursement recovery 0.8%
-------------------------------------
INCEPTION
October 13, 1999
ALL DATA AS OF JUNE 30, 2000.
PERFORMANCE INFORMATION ASSUMES ALL DISTRIBUTIONS WERE REINVESTED. PAST
PERFORMANCE ISN'T A PREDICTION OF FUTURE PERFORMANCE. READ THE PROSPECTUS BEFORE
INVESTING.
[END SIDEBAR]
"Our strategy of keeping a large percentage of fund assets in overnight
repurchase agreements allowed the fund's yields to respond relatively quickly to
rising interest rates."
/S/ SIGNATURE OMITTED - MOLLY FLEWHARTY
MOLLY FLEWHARTY
Portfolio Manager
The year 2000 began with a Federal Funds rate of 5.50% and the Federal Reserve
Board declaring its bias to be "neutral." Yet by June, the situation had changed
substantially. The Fed Funds rate was 6.50% -- a full 100 basis points higher --
and the Fed had shifted its bias to "inflation," thus putting financial markets
on notice that further rate increases are possible. As of this report, we
believe that U.S. economic growth has probably peaked, but the extent of the
slowdown is still unclear, as is the Fed's next move.
(BULLET) Based on our view that further Fed Funds rate increases would be likely
during the report period, we kept the fund's weighted average maturity
shorter than that of the fund's peer group. In addition, because
eligible Treasury securities did not offer any significant yield
advantage over repurchase agreements, we emphasized repurchase
agreements (and continue to do so as of the report date). While the
fund's short maturity strategy meant that the fund sacrificed a small
amount of yield initially, during late May and early June the fund's
yield increased at a faster rate than that of the peer group average.
(BULLET) We continue to monitor the yield on longer securities and purchase them
when justified by the yield. We also plan to continue to use a
"barbell" strategy (clustering investments at the short and long ends
of the fund's allowable maturity range) as long as it is to the
advantage of the fund.
(BULLET) We believe that economic statistics to be released in the second half
of the year will allow us to anticipate future Fed rate changes. In the
meantime, at least one of the Fed's twenty-five basis point increases
is already reflected in current market rates.
(BULLET) During the report period we invested exclusively in short-term
obligations of the U.S. Government and repurchase agreements
collateralized by govern-ment obligations. This was in keeping with the
fund's purpose of providing liquidity and an extremely high level of
safety. We are pleased to report that the fund's yield remained
competitive during most of the first half of 2000. During the second
half of the year we plan to continue with our conservative investment
policy while seeking to achieve an acceptable rate of return.
12 U.S. TREASURY MONEY MARKET FUND
<PAGE>
[GRAPHIC OMITTED - BRACKET]
The fund seeks maximum current income
that is consistent with maintaining
liquidity and preserving capital.
PORTFOLIO INVESTMENTS
------------------------------------------------------------------
ASSET ALLOCATION BY MATURITY
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
4-30 days 44.3%
Over 120 days 7.5%
Overnight-3 days 48.2%
ASSET ALLOCATION BY TYPE
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
U.S. government and agencies 51.8%
Repurchase agreements 48.2%
YIELD AND TOTAL RETURN
------------------------------------------------------------------
YIELD AND MATURITY
-----------------------------------------
Daily yield 4.26%
-----------------------------------------
7-day effective yield 5.72%
-----------------------------------------
30-day effective yield 5.86%
-----------------------------------------
Weighted average days to maturity 19
-----------------------------------------
AVERAGE ANNUAL RETURN
-----------------------------------------
One year 5.0%
-----------------------------------------
Since inception 2.6%
-----------------------------------------
CUMULATIVE TOTAL RETURN
-----------------------------------------
One year 6.0%
-----------------------------------------
Since inception 3.6%
-----------------------------------------
[BEGIN SIDEBAR]
PERFORMANCE OVER
THE PAST SIX MONTHS
[TRIANGLE GRAPHIC OMITTED]
+2.6%
FUND
THE FUND returned an annualized yield of 5.3% for the report period, while
providing a high degree of stability and liquidity.
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
FUND
01-JAN 4.43%
08-JAN 4.72%
15-JAN 4.93%
22-JAN 4.88%
29-JAN 4.88%
05-FEB 5.12%
12-FEB 5.15%
19-FEB 5.16%
26-FEB 5.04%
04-MAR 5.07%
11-MAR 5.06%
18-MAR 5.15%
25-MAR 5.22%
31-MAR 5.40%
07-APR 5.49%
14-APR 5.45%
21-APR 5.31%
28-APR 5.18%
05-MAY 5.19%
12-MAY 5.25%
19-MAY 5.51%
26-MAY 5.61%
02-JUN 5.74%
09-JUN 5.81%
16-JUN 5.90%
23-JUN 5.86%
30-JUN 5.72%
IN THIS CHART, THE YIELD SHOWN ON A GIVEN DATE IS THE FUND'S 30-DAY YIELD AS
OF THAT DATE. BECASUE THESE FIGURES ARE CALCULATED USING THE SEC'S STANDARD
FORMULA, THEY ARE USEFUL FOR COMPARING THIS FUND'S YIELD TO THOSE OF OTHER
FUNDS, BUT THEY MAY BE SLIGHTLY DIFFERENT FROM THE ACTUAL YIELDS AN INVESTOR
IN THE FUND WOULD HAVE EARNED.
[END SIDEBAR]
U.S. TREASURY MONEY MARKET FUND 13
<PAGE>
THE
FINANCIAL PAGES
[BEGIN SIDEBAR]
ABOUT THE INFORMATION
IN THIS SECTION
On these pages, you'll find some general background about Burnham Investors
Trust as well as details about each fund.
The tables showing financial results are intended to give a picture of each
fund's operations over the past six months as well as a "snapshot" of its assets
and liabilities as of the report date.
The text and notes in this section provide context and further detail. These are
an integral part of the 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 on pages 37 and 38 of
this report.
[END SIDEBAR]
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
PFPC Inc.
211 South Gulph Road
King of Prussia, PA 19406
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:
(BULLET) 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)
(BULLET) 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.
14 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 15
<PAGE>
ABOUT THE FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
The financial statements for the funds appear on the following pages. These
statements cover the funds' activities over the report period and show where
each fund stood as of the last day of the period (in this case, June 30, 2000).
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.
16 FINANCIAL PAGES
<PAGE>
BURNHAM FUND
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
o INDICATES SECURITIES THAT DO NUMBER MARKET
NOT PRODUCE INCOME. OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS 93.62%
CONSUMER DISCRETIONARY 2.83%
CONSUMER PRODUCTS 2.83%
General Electric Co. 120,000 $6,120,000
----------
TOTAL CONSUMER DISCRETIONARY (COST: $1,718,475) 6,120,000
----------
CONSUMER DURABLES 3.72%
AUTO PARTS AND EQUIPMENT 0.09%
Visteon Corp. 16,367 198,445
----------
AUTOMOTIVE 2.49%
Ford Motor Co. 125,000 5,375,000
----------
ELECTRICAL EQUIPMENT 0.88%
Philips Electronics N.V. 40,000 1,900,000
----------
MANUFACTURING (SPECIALIZED) 0.26%
o Evercel, Inc. 40,000 551,250
----------
TOTAL CONSUMER DURABLES (COST: $7,737,361) 8,024,695
----------
CONSUMER STAPLES 1.18%
FOOD AND BEVERAGE PRODUCTS 1.18%
McDonald's Corp. 30,000 988,125
PepsiCo, Inc. 35,000 1,555,312
----------
2,543,437
----------
TOTAL CONSUMER STAPLES (COST: $2,260,214) 2,543,437
----------
ENERGY 7.97%
NATURAL GAS 0.60%
Enron Corp. 20,000 1,290,000
----------
OIL AND GAS REFINING 7.37%
BP Amoco PLC 60,000 3,393,750
Exxon Mobil Corp. 100,000 7,856,250
Phillips Petroleum Co. 50,000 2,534,375
Texaco, Inc. 40,000 2,130,000
----------
15,914,375
----------
TOTAL ENERGY (COST: $9,162,407) 17,204,375
----------
FINANCIAL 16.09%
BANKING 8.67%
Bank of New York Co., Inc. 125,000 5,812,500
Chase Manhattan Corp. 45,000 2,072,812
Citigroup, Inc. 180,000 10,845,000
----------
18,730,312
----------
FACE MARKET
VALUE VALUE
--------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES 2.90%
American Express Co. 120,000 $6,255,000
-----------
INSURANCE 1.85%
American International Group, Inc. 25,000 2,937,500
o MetLife, Inc. 50,000 1,053,125
-----------
3,990,625
-----------
REAL ESTATE INVESTMENT TRUSTS 2.67%
Charles E. Smith
Residential Realty 30,000 1,140,000
Chateau Communities, Inc. 40,000 1,130,000
Franchise Finance Corp.
of America 70,000 1,610,000
Spieker Properties, Inc. 40,000 1,890,000
-----------
5,770,000
-----------
TOTAL FINANCIAL (COST: $15,953,886) 34,745,937
-----------
HEALTH CARE 9.56%
HEALTH MAINTENANCE ORGANIZATIONS 0.44%
o Oxford Health Plans, Inc. 40,000 952,500
-----------
MEDICAL PRODUCTS 1.15%
Medtronic Inc. 50,000 2,490,625
-----------
PHARMACEUTICALS 7.97%
Bristol-Myers Squibb Co. 40,000 2,330,000
Merck & Co., Inc. 50,000 3,831,250
Pfizer Inc. 230,000 11,040,000
-----------
17,201,250
-----------
TOTAL HEALTH CARE (COST: $9,649,084) 20,644,375
-----------
RETAIL 1.33%
RETAIL STORES 1.33%
Wal Mart Stores, Inc. 50,000 2,881,250
-----------
Total Retail (COST: $1,812,225) 2,881,250
-----------
SERVICES 8.21%
DATA PROCESSING 1.49%
Automatic Data Processing Inc. 60,000 3,213,750
-----------
ENTERTAINMENT 1.58%
o Viacom Inc., Class B 50,000 3,409,375
-----------
OFFICE EQUIPMENT AND SUPPLIES 0.34%
Reynolds & Reynolds Co., Class A 40,000 730,000
-----------
The notes are an integral part of these financials. Notes specific to this fund
are on page 37.
BURNHAM FUND 17
<PAGE>
BURNHAM FUND CONTINUED
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS CONTINUED
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS CONTINUED
SERVICES CONTINUED
TELECOMMUNICATIONS NETWORKS AND SERVICES 4.80%
Bell Atlantic Corp. 25,000 $1,270,312
CenturyTelephone, Inc. 60,000 1,725,000
GTE Corp. 50,000 3,112,500
o Qwest Communications
International Inc. 25,000 1,242,187
SBC Communications, Inc. 70,000 3,027,500
-----------
10,377,499
-----------
TOTAL SERVICES (COST: $13,819,424) 17,730,624
-----------
TECHNOLOGY 42.73%
AEROSPACE 1.63%
o General Motors Corp., Class H 40,000 3,510,000
COMPUTER PRODUCTS AND SOFTWARE 33.43%
o Cisco Systems, Inc. 140,000 8,894,375
o EMC Corp. 141,930 10,919,739
International Business
Machines Corp. 75,000 8,217,188
o Microsoft Corp. 75,000 5,997,656
o Siebel Systems, Inc. 200,000 32,718,750
o Sun Microsystems, Inc. 60,000 5,458,125
-----------
72,205,833
-----------
ELECTRICAL EQUIPMENT 1.16%
Symbol Technologies, Inc. 45,000 2,505,938
-----------
SEMICONDUCTORS 4.81%
Intel Corp. 70,000 9,355,938
Texas Instruments, Inc. 15,000 1,030,313
-----------
10,386,251
-----------
TELECOMMUNICATIONS EQUIPMENT 1.70%
ECI Telecom Ltd. 70,000 2,498,125
Lucent Technologies, Inc. 20,000 1,185,000
-----------
3,683,125
-----------
TOTAL TECHNOLOGY (COST: $24,698,926) 92,291,147
-----------
TOTAL COMMON STOCKS (COST: $86,812,002) 202,185,840
-----------
FACE MARKET
VALUE VALUE
--------------------------------------------------------------------------------
CORPORATE CONVERTIBLE BONDS 0.87%
SERVICES 0.39%
DATA PROCESSING 0.39%
Adaptec Inc., sub. deb. conv.
4.75% 02/01/04 $1,000,000 $835,000
-----------
TOTAL SERVICES (COST: $804,750) 835,000
-----------
TECHNOLOGY 0.48%
COMPUTER PRODUCTS AND SOFTWARE 0.48%
Systems & Computer
Technology, conv.
5.00% 10/15/04 1,150,000 1,040,750
-----------
TOTAL TECHNOLOGY (COST: $926,125) 1,040,750
-----------
TOTAL CORPORATE CONVERTIBLE BONDS
(COST: $1,730,875) 1,875,750
-----------
CORPORATE BONDS 1.03%
HOTELS 1.03%
Marriott Corp., deb.
9.38% 06/15/07 1,265,000 1,205,926
MGM Grand Inc., sr. sub. notes
9.75% 06/01/07 1,000,000 1,022,500
-----------
TOTAL HOTELS (COST: $2,261,106) 2,228,426
-----------
TOTAL CORPORATE BONDS (COST: $2,261,106) 2,228,426
-----------
COMMERCIAL PAPER 4.26%
Associates First Capital Corp.
6.72% 07/06/00 9,200,000 9,200,000
-----------
TOTAL COMMERCIAL PAPER (COST: $9,200,000) 9,200,000
-----------
--------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.78%
(cost: $100,003,983) $215,490,016
CASH AND OTHER ASSETS, LESS LIABILITES 0.22% 467,223
------------
NET ASSETS 100.00% $215,957,239
============
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
-------------------------------------------------
THE TAX COST OF THE FUND AT JUNE 30, 2000 BASED ON SECURITIES OWNED, WAS
$100,003,983. THE UNREALIZED GROSS APPRECIATION/ (DEPRECIATION) FOR ALL
SECURITIES IN THE FUND FOR THE PERIOD WAS $117,353,614 AND ($1,867,581),
RESPECTIVELY.
--------------------------------------------------------------------------------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
18 BURNHAM FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
ASSETS
Investments, at market value
(COST: $100,003,983) $215,490,016
Cash in bank 130,164
Dividends and interest receivable 143,529
Receivable for investments sold 854,722
Receivable from investment adviser 166,046
Receivable for capital stock sold 64,255
Prepaid expenses 28,125
Other assets 828
------------
Total assets 216,877,685
------------
LIABILITIES
Payable for investments purchased 551,563
Payable for capital stock redeemed 78,540
Payable for administration fees1 24,656
Payable for investment advisory fees2 105,649
Payable for distribution fees and service fees3 79,148
Accrued expenses and other payables 80,890
------------
Total liabilities 920,446
------------
NET ASSETS $215,957,239
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $84,112,436
Undistributed net investment income 53,677
Accumulated net realized gain on investments 16,305,093
Net unrealized appreciation of investments 115,486,033
------------
$215,957,239
============
BY SHARE CLASS:
CAPITAL SHARES
NET ASSETS NAV4 OUTSTANDING
--------------------------------------------------------------------
Class A $209,276,306 $46.09 4,540,696
Class B $6,680,933 $46.96 142,268
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000-- UNAUDITED
--------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $1,008,509
Interest 437,958
------------
Total income 1,446,467
------------
EXPENSES
Administration fees1 146,441
Investment advisory fees2 613,410
Service fees (Class B)3 7,575
Distribution fees (Class A)3 248,013
Distribution fees (Class B)3 22,725
Transfer agent fees 82,331
Audit and legal fees 38,944
Reports to shareholders 25,036
Trustees' fees and expenses 31,712
Custodian fees 20,069
Registration fees and expenses 29,074
Insurance expenses 44,454
Fund accounting expenses 30,670
Miscellaneous expenses 14,218
------------
Total expenses before
reimbursement recovery 1,354,672
Plus voluntary reimbursement
recovery by adviser5 38,118
------------
Total expenses after
reimbursement recovery 1,392,790
------------
NET INVESTMENT INCOME $53,677
============
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES TRANSACTIONS:6
Proceeds from sales of securities $66,981,188
Cost of securities sold (50,878,238)
------------
Net realized gain from
securities transactions 16,102,950
UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of period unrealized appreciation 10,831,652
End of period unrealized appreciation 115,486,033
------------
Unrealized appreciation of investments 4,654,381
------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 20,757,331
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $20,811,008
============
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
BURNHAM FUND 19
<PAGE>
BURNHAM FUND CONTINUED
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 1/1/99-
6/30/00 12/31/99
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $53,677 $179,348
Net realized gain from
securities transactions 16,102,950 6,432,023
Unrealized appreciation
of investments 4,654,381 43,503,131
------------ ------------
Net increase in net assets
resulting from operations 20,811,008 50,114,502
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Class A shares -- (308,346)
------------ ------------
-- (308,346)
------------ ------------
From realized gains from securities
transactions:
Class A shares -- (14,185,589)
Class B shares -- (273,998)
Class C shares -- (30,872)
------------ ------------
-- (14,339,547)
------------ ------------
Total distributions
to shareholders -- (14,798,805)
------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL AT RIGHT)
Net proceeds from sale
of shares 18,224,212 17,996,850
Net asset value of shares
issued to shareholders in
reinvestment of dividends -- 13,084,805
------------ ------------
18,224,212 31,081,655
Cost of shares redeemed (21,270,357) (27,944,533)
------------ ------------
Increase/(decrease) in net assets
derived from capital share
transactions (3,046,145) 3,137,122
------------ ------------
Increase in net assets for
the period 17,764,863 38,452,819
NET ASSETS
Beginning of period 198,192,376 159,739,557
------------ ------------
END OF PERIOD $215,957,239 $198,192,376
============ ============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF PERIOD $53,677 --
============ ============
Detail of Capital Share Transactions
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
--------------------------------------------------------------------------------
CLASS A SHARES
SIX MONTHS ENDED 6/30/2000
Shares sold 388,698 $16,528,294
Shares issued for
reinvestments -- --
Shares redeemed (477,849) (20,558,603)
------------ ------------
NET DECREASE (89,151) $(4,030,309)
============ ============
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
============ ============
CLASS B SHARES
SIX MONTHS ENDED 6/30/2000
Shares sold 38,725 $1,695,918
Shares issued for
reinvestments -- --
Shares redeemed (16,020) (711,754)
------------ ------------
NET INCREASE 22,705 $984,164
============ ============
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
============ ============
CLASS C SHARES8
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) $(633,862)
============ ============
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
20 BURNHAM FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
<TABLE>
1/1/00- 1/1/99- 1/1/98- 1/1/97- 1/1/96- 1/1/95- 1/1/00- 1/1/99-
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95 6/30/00 12/31/99
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA CLASS A SHARES CLASS B SHARES
NET ASSET VALUE:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of year ($) 41.71 34.31 30.04 25.65 23.19 19.88 42.66 35.21
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) 0.02 0.06 0.25 0.45 0.51 0.71 (0.12) (0.17)
Net gains on securities
and options (both realized
and unrealized) 4.36 10.52 5.97 5.54 3.36 3.91 4.42 10.70
---------------------------------------------------------------------------------------------
Total from investment operations 4.38 10.58 6.22 5.99 3.87 4.62 4.30 10.53
LESS DISTRIBUTIONS:
Dividends
(from net investment income) -- (0.10) (0.32) (0.44) (0.55) (0.75) -- --
Distributions from capital gains
(from securities and
options transactions) -- (3.08) (1.63) (1.16) (0.86) (0.56) -- (3.08)
---------------------------------------------------------------------------------------------
Total distributions -- (3.18) (1.95) (1.60) (1.41) (1.31) -- (3.08)
---------------------------------------------------------------------------------------------
NET ASSET VALUE: End of period ($) 46.09 41.71 34.31 30.04 25.65 23.19 46.96 42.66
=============================================================================================
TOTAL RETURN (%) 10.50* 32.71 22.08 24.74 17.60 24.45 10.08* 31.60
---------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period (in $ millions) 209.3 193.0 156.7 136.4 117.4 112.0 6.7 5.1
---------------------------------------------------------------------------------------------
Ratio of total expenses after
reimbursement/recovery to average
net assets (%)5 1.3(DAGGER) 1.3 1.3 1.1 1.3 1.5 2.1(DAGGER) 2.1
---------------------------------------------------------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)5 -- 1.4 1.3 -- -- -- -- 2.2
---------------------------------------------------------------------------------------------
Ratio of net income to average
net assets (%) 0.1(DAGGER) 0.1 0.8 1.6 2.1 3.3 (0.7)(DAGGER) (0.6)
---------------------------------------------------------------------------------------------
Portfolio turnover rate (%) 30.7 42.2 54.7 59.4 61.5 78.3 30.7 42.2
---------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
1/1/98- 1/1/97- 1/1/96- 1/1/95-
12/31/98 12/31/97 12/31/96 12/31/95
--------------------------------------------------
PER SHARE DATA
NET ASSET VALUE:
<S> <C> <C> <C> <C>
Beginning of year ($) 30.75 26.31 23.45 19.94
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) 0.03 0.13 0.21 0.41
Net gains on securities
and options (both realized
and unrealized) 6.12 5.75 3.69 4.10
--------------------------------------------------
Total from investment operations 6.15 5.88 3.90 4.51
LESS DISTRIBUTIONS:
Dividends
(from net investment income) (0.06) (0.28) (0.18) (0.44)
Distributions from capital gains
(from securities and
options transactions) (1.63) (1.16) (0.86) (0.56)
--------------------------------------------------
Total distributions (1.69) (1.44) (1.04) (1.00)
--------------------------------------------------
NET ASSET VALUE: End of period ($) 35.21 30.75 26.31 23.45
==================================================
TOTAL RETURN (%) 21.16 23.60 17.34 23.54
--------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period (in $ millions) 2.4 1.6 1.0 0.6
--------------------------------------------------
Ratio of total expenses after
reimbursement/recovery to average
net assets (%)5 2.1 2.0 2.1 2.2
--------------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)5 2.2 -- -- --
--------------------------------------------------
Ratio of net income to average
net assets (%) 0.0(DOUBLE DAGGER) 0.7 1.3 2.5
--------------------------------------------------
Portfolio turnover rate (%) 54.7 59.4 61.5 78.3
--------------------------------------------------
<FN>
* TOTAL RETURN IS NOT ANNUALIZED FOR THE PERIOD 1/1/00 TO 6/30/00.
(DAGGER) ANNUALIZED.
(DOUBLE DAGGER) LESS THAN 0.1%.
</FN>
</TABLE>
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
BURNHAM FUND 21
<PAGE>
BURNHAM
DOW 30(SERVICE MARK) FOCUSED FUND
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS 94.27%
BASIC MATERIALS 4.96%
Chemicals 4.96%
Union Carbide Corp. 500 $24,750
----------
TOTAL BASIC MATERIALS (COST: $29,874) 24,750
----------
BEVERAGES - NON-ALCOHOLIC 2.30%
BEVERAGES 2.30%
Coca-Cola Co. 200 11,487
----------
TOTAL BEVERAGES - NON-ALCOHOLIC (COST: $11,449) 11,487
----------
CONSUMER CYCLICALS 2.01%
AUTO PARTS AND EQUIPMENT 2.01%
Goodyear Tire & Rubber Co. 500 10,000
----------
TOTAL CONSUMER CYCLICALS (COST: $21,593) 10,000
----------
ENERGY 8.50%
OIL REFINING 8.50%
Chevron Corp. 500 42,406
----------
TOTAL ENERGY (COST: $44,030) 42,406
----------
PHOTO EQUIPMENT AND SUPPLIES 2.38%
PHOTO EQUIPMENT AND SUPPLIES 2.38%
Eastman Kodak Co. 200 11,900
----------
TOTAL PHOTO EQUIPMENT AND SUPPLIES (COST: $12,612) 11,900
----------
RETAIL 3.27%
RETAIL STORES 3.27%
Sears, Roebuck & Co. 500 16,313
----------
TOTAL RETAIL (COST: $13,811) 16,313
----------
TELECOMMUNICATION SERVICES 1.73%
TELECOMMUNICATION SERVICES 1.73%
SBC Communications Inc. 200 8,650
----------
TOTAL TELECOMMUNICATION SERVICES (COST: $8,887) 8,650
----------
UNIT INVESTMENT TRUSTS 69.12%
UNIT INVESTMENT TRUSTS 69.12%
DIAMONDS Trust Unit Series 1 3,305 344,959
----------
TOTAL UNIT INVESTMENT TRUSTS (COST: $360,515) 344,959
----------
TOTAL COMMON STOCKS (COST: $502,771) 470,465
----------
--------------------------------------------------------------------------------
Total investments 94.27%
(cost: $502,771) $470,465
Cash and other assets, less liabilities 5.73% 28,596
----------
Net assets 100.00% $499,061
==========
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
ASSETS
Investments, at market value
(COST: $502,771) $470,465
Dividends receivable 430
Receivable from investment adviser 45,564
----------
Total assets 516,459
----------
LIABILITIES
Bank overdraft 7,848
Payable for transfer agency fees 2,927
Payable for administration fees2 69
Payable for fund accounting fees 5,028
Payable for investment advisory fees3 249
Payable for distribution fees and service fees4 104
Accrued expenses and other payables 1,173
----------
Total liabilities 17,398
----------
NET ASSETS $499,061
==========
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $531,553
Undistributed net investment income 1,113
Accumulated net realized loss on investments (1,299)
Net unrealized depreciation of investments (32,306)
----------
$499,061
==========
BY NUMBER OF SHARES:
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
--------------------------------------------------------------
$499,061 $9.32 53,563
--------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
-------------------------------------------------
THE TAX COST OF THE FUND AT JUNE 30, 2000, BASED ON SECURITIES OWNED, WAS
$502,771. THE UNREALIZED GROSS APPRECIATION/(DEPRECIATION) FOR ALL
SECURITIES IN THE FUND FOR THE PERIOD WAS $2,539 AND ($34,845), RESPECTIVELY.
--------------------------------------------------------------------------------
22 DOW 30(SERVICE MARK) FOCUSED FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000-- UNAUDITED
--------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $4,147
----------
Total income 4,147
----------
EXPENSES
Administration fees2 379
Investment advisory fees3 1,517
Distribution fees4 632
Transfer agent fees 9,609
Audit and legal fees 3,493
Reports to shareholders 208
Trustees' fees and expenses 77
Custodian fees 7,903
Registration fees and expenses 258
Insurance expenses 42
Fund accounting expenses 13,532
Miscellaneous expenses 619
----------
Total expenses before reimbursement 38,269
Less voluntary reimbursement by adviser5 (35,235)
----------
Total expenses after reimbursement 3,034
----------
NET INVESTMENT INCOME $1,113
==========
NET REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES TRANSACTIONS:8
Proceeds from sales of securities $10,842
Cost of securities sold (10,349)
----------
Net realized gain from
securities transactions 493
----------
UNREALIZED DEPRECIATION OF INVESTMENTS:
Beginning of period unrealized appreciation 16,751
End of period unrealized depreciation (32,306)
----------
Unrealized depreciation of investments (49,057)
----------
Net realized and unrealized loss
on investments (48,564)
----------
NET DECREASE IN NET ASSETS
RESULTING FROM OPERATIONS $(47,451)
==========
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 5/3/99-
6/30/00 12/31/99*
--------------------------------------------------------------------------------
INCREASE/(DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income $1,113 $1,998
Net realized gain/(loss) from
securities transactions 493 (1,792)
Unrealized appreciation/
(depreciation) of investments (49,057) 16,751
------------ ------------
Net increase/(decrease)
in net assets resulting
from operations (47,451) 16,957
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS6
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 42,132 614,905
Net asset value of shares
issued to shareholders in
reinvestment of dividends -- 2,538
------------ ------------
42,132 617,443
Cost of shares redeemed (22,757) (104,725)
------------ ------------
Increase in net assets
derived from capital
share transactions 19,375 512,718
------------ ------------
Increase/(decrease) in net
assets for the period (28,076) 527,137
NET ASSETS
Beginning of period 527,137 --
------------ ------------
End of period $499,061 $527,137
============ ============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF PERIOD $1,113 --
============ ============
DETAIL OF CAPITAL SHARE TRANSACTIONS
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
--------------------------------------------------------------------------------
SIX MONTHS ENDED 6/30/2000
Shares sold 4,549 $42,132
Shares issued for reinvestments -- --
Shares redeemed (2,316) (22,757)
------------ ------------
NET INCREASE 2,233 $19,375
============ ============
PERIOD ENDED 12/31/1999
Shares sold 61,716 $614,905
Shares issued for reinvestments 255 2,538
Shares redeemed (10,641) (104,725)
------------ ------------
NET INCREASE 51,330 $512,718
============ ============
* BURNHAM DOW 30(SERVICE MARK) FOCUSED FUND COMMENCED OPERATIONS ON MAY 3, 1999.
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
DOW 30(SERVICE MARK) FOCUSED FUND 23
<PAGE>
BURNHAM DOW 30(SERVICE MARK) FOCUSED FUND CONTINUED
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 5/3/99-
6/30/00 12/31/99*
--------------------------------------------------------------------------------
PER SHARE DATA
NET ASSET VALUE:
Beginning of period ($) 10.27 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.05
Net gain on securities
(both realized and unrealized) (0.97) 0.27
-----------------------------------------
Total from investment operations (0.95) 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 ($) 9.32 10.27
=========================================
TOTAL RETURN (%) (9.25)(DAGGER) 3.22(DAGGER)
-----------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period (in $ millions) 0.5 0.5
-----------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)5 1.2(DOUBLE DAGGER) 1.2(DOUBLE DAGGER)
-----------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)5 15.2(DOUBLE DAGGER) 19.9(DOUBLE DAGGER)
-----------------------------------------
Ratio of net income to average
net assets (%) 0.4(DOUBLE DAGGER) 0.7(DOUBLE DAGGER)
-----------------------------------------
Portfolio turnover rate (%) 2.3 23.7
-----------------------------------------
* BURNHAM DOW 30(SERVICE MARK) FOCUSED FUND COMMENCED OPERATIONS
ON MAY 3, 1999.
(DAGGER) TOTAL RETURN IS NOT ANNUALIZED FOR THE PERIODS 1/1/00 - 6/30/00
OR 5/3/99 - 12/31/99.
(DOUBLE DAGGER) ANNUALIZED.
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
24 DOW 30(SERVICE MARK) FOCUSED FUND
<PAGE>
BURNHAM
FINANCIAL SERVICES FUND
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
o Indicates securities that do NUMBER MARKET
not produce income. OF SHARES VALUE
--------------------------------------------------------------------------------
COMMON STOCKS 93.87%
BANKS 45.65%
BANKS-- MAJOR REGIONAL 10.15%
FleetBoston Financial Corp. 4,000 $136,000
Sovereign Bancorp, Inc. 20,000 140,937
U.S. Bancorp 3,000 57,750
UnionBanCal Corp. 3,000 55,687
----------
390,374
----------
BANKS-- MONEY CENTER 1.80%
Chase Manhattan Corp. 1,500 69,094
----------
BANKS-- REGIONAL 33.70%
AMCORE Financial, Inc. 3,000 54,937
BostonFed Bancorp Inc. 15,000 211,875
Cohoes Bancorp, Inc. 17,500 241,172
Commercial Federal Corp. 3,000 46,687
Hudson United Bancorp 10,545 236,603
MutualFirst Financial Inc. 5,000 58,438
Pacific Century Financial Corp. 3,000 44,625
Pacific Crest Capital, Inc. 8,000 102,750
Premier National Bancorp 10,000 128,750
Thistle Group Holdings, Co. 10,000 70,000
West Coast Bancorp 10,000 100,313
----------
1,296,150
----------
TOTAL BANKS (COST: $1,779,022) 1,755,618
----------
FINANCIAL SERVICES COMPANIES 9.41%
DIVERSIFIED FINANCIAL SERVICES 8.25%
Ambac Financial Group Inc. 1,000 54,812
o Hamilton Bancorp, Inc. 10,000 175,938
Washington Mutual, Inc. 3,000 86,625
----------
317,375
----------
INSURANCE 1.16%
Allstate Corp. 2,000 44,500
----------
TOTAL FINANCIAL SERVICES COMPANIES
(COST: $362,005) 361,875
----------
SAVINGS AND LOAN COMPANIES 38.81%
SAVINGS AND LOAN COMPANIES--
MAJOR REGIONAL 18.45%
Astoria Financial Corp. 5,000 128,906
o Berkshire Hills Bancorp, Inc. 5,000 63,750
Capitol Federal Financial 15,000 166,406
NUMBER MARKET
OF SHARES/CONTRACTS VALUE
--------------------------------------------------------------------------------
SAVINGS AND LOAN COMPANIES--
MAJOR REGIONAL (CONTINUED)
Golden State Bancorp Inc. 7,000 $126,000
Roslyn Bancorp Inc. 9,500 157,938
Webster Financial Corp. 3,000 66,469
----------
709,469
----------
SAVINGS AND LOAN COMPANIES-- NATIONAL 1.20%
Charter One Financial, Inc. 2,000 46,000
----------
SAVINGS AND LOAN COMPANIES-- REGIONAL 19.16%
Alliance Bancorp of New England Inc. 12,000 84,000
American Financial Holdings, Inc. 5,000 79,375
Banknorth Group, Inc. 4,000 61,000
CFS Bancorp, Inc. 4,000 36,625
o Connecticut Bancshares, Inc. 10,000 146,250
Dime BanCorporation, Inc. 8,000 126,000
First Federal Savings & Loan
Association of East Hartford 1,000 29,812
Hudson River Bancorp. Inc. 5,000 59,219
o Matrix Bancorp Inc. 10,000 69,063
Yonkers Financial Corp. 3,000 45,563
----------
736,907
----------
TOTAL SAVINGS AND LOAN COMPANIES
(COST: $1,480,947) 1,492,376
----------
TOTAL COMMON STOCKS/INVESTMENTS
(COST: $3,621,974) 3,609,869
----------
CALL OPTIONS WRITTEN (0.37%)
AMBAC Financial Calls @ 60
Due Jul 00 10 (625)
Banknorth Group Inc. Calls @ 15
Due Aug 00 20 (2,125)
Charterone Financial Calls @ 25
Due Aug 00 20 (1,250)
Chase Manhattan Calls @ 50
Due Jul 00 15 (750)
Dime Bancorp. Calls @ 17.5
Due Jul 00 20 (625)
Dime Bancorp. Calls @ 20
Due Jul 00 20 (375)
FleetBoston Financial Calls @ 40
Due Jul 00 20 (313)
Golden State Bancorp. Inc Calls @ 17.5
Due Jul 00 20 (1,937)
Golden State Bancorp. Inc Calls @ 20
Due Oct 00 20 (2,187)
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
FINANCIAL SERVICES FUND 25
<PAGE>
BURNHAM FINANCIAL SERVICES FUND CONTINUED
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS CONTINUED
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
NUMBER MARKET
OF CONTRACTS VALUE
--------------------------------------------------------------------------------
CALL OPTIONS WRITTEN CONTINUED
Hudson United Bancorp Calls @ 30
Due Jul 00 30 $(750)
Imperial Bancorp Calls @ 20
Due Jul 00 30 (563)
Pacific Century Financial Corp. Calls @
22.5
Due Jul 00 20 (625)
Sovereign Bancorp. Calls @ 7.5
Due Oct 00 20 (1,437)
Sovereign Bancorp. Calls @ 10
Due Jul 00 20 (313)
Sovereign Bancorp. Calls @ 7.5
Due Jul 00 20 (438)
----------
TOTAL CALL OPTIONS WRITTEN
(PREMIUMS RECEIVED: $26,824) (14,313)
----------
--------------------------------------------------------------------------------
Total investments in securities 93.87%
(COST: $3,621,974) $3,609,869
Call options written (0.37)%
(PREMIUMS RECEIVED: $26,824) (14,313)
Cash and other assets, less liabilities 6.50% 250,004
----------
Net assets 100.00% $3,845,560
==========
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FEDERAL INCOME TAX BASIS OF INVESTMENT SECURITIES
--------------------------------------------------
THE TAX COST OF THE FUND AT JUNE 30, 2000, BASED ON SECURITIES OWNED, WAS
$3,621,974. THE UNREALIZED GROSS APPRECIATION/ (DEPRECIATION) FOR ALL
SECURITIES IN THE FUND FOR THE PERIOD WAS $177,464 AND ($189,569),
RESPECTIVELY.
--------------------------------------------------------------------------------
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 37.
26 FINANCIAL SERVICES FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost: $3,621,974) $3,609,869
Cash in bank 57,359
Dividends and interest receivable 4,830
Receivable for investments sold 547,148
Receivable from investment adviser 93,132
Receivable for capital stock sold 9,604
----------
Total assets 4,321,942
----------
LIABILITIES
Payable for options written6
(premiums received: $26,824) 14,313
Payable for investments purchased 443,925
Payable for fund accounting fees 9,425
Payable for administration fees1 472
Payable for investment advisory fees2 2,313
Payable for distribution fees and service fees3 892
Accrued expenses and other payables 5,042
----------
Total liabilities 476,382
----------
NET ASSETS $3,845,560
==========
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $3,610,715
Undistributed net investment income 17,980
Accumulated net realized gain on investments 216,459
Net unrealized appreciation of investments
and written options 406
----------
$3,845,560
==========
BY SHARE CLASS:
CAPITAL SHARES
NET ASSETS NAV4 OUTSTANDING
--------------------------------------------------------------------
Class A: $3,785,595 $10.59 357,475
Class B: $59,965 $10.53 5,692
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000-- UNAUDITED
--------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $43,988
----------
Total income 43,988
----------
EXPENSES
Administration fees1 2,440
Investment advisory fees2 12,201
Service fees (Class B)3 68
Distribution fees (Class A)3 3,999
Distribution fees (Class B)3 204
Transfer agent fees 14,337
Audit and legal fees 3,892
Reports to shareholders 980
Trustees' fees and expenses 482
Custodian fees 10,713
Registration fees and expenses 1,703
Insurance expenses 275
Fund accounting expenses 17,902
Miscellaneous expenses 608
----------
Total expenses before reimbursement 69,804
Less voluntary reimbursement by adviser5 (43,571)
----------
Total expenses after reimbursement 26,233
----------
NET INVESTMENT INCOME $17,755
==========
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES AND OPTIONS TRANSACTIONS:6
Proceeds from sales of securities $5,489,348
Cost of securities sold (5,300,243)
Realized gain from options transactions6 27,267
----------
Net realized gain from securities
and options transactions 216,372
----------
UNREALIZED APPRECIATION OF INVESTMENTS:
Beginning of period unrealized depreciation (40,052)
End of period unrealized appreciation 406
----------
Unrealized appreciation of investments 40,458
----------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 256,830
----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $274,585
==========
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
FINANCIAL SERVICES FUND 27
<PAGE>
BURNHAM FINANCIAL SERVICES FUND CONTINUED
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 6/7/99-
6/30/00 12/31/99*
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $17,755 $5,644
Net realized gain from
securities and options
transactions 216,372 87
Unrealized
appreciation/depreciation
of investments 40,458 (40,052)
------------ ------------
Net increase/(decrease)
in net assets resulting
from operations 274,585 (34,321)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME:
Class A shares -- (5,419)
Class B shares -- (5,419)
------------ ------------
Total distributions to
shareholders -- (5,419)
------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL AT RIGHT)
Net proceeds from sale
of shares 1,278,761 3,478,952
Net asset value of shares
issued to shareholders in
reinvestment of dividends -- 5,401
------------ ------------
1,278,761 3,484,353
Cost of shares redeemed (746,234) (406,165)
------------ ------------
Increase in net assets
derived from capital share
transactions 532,527 3,078,188
------------ ------------
Increase in net assets for
the period 807,112 3,038,448
NET ASSETS
Beginning of period 3,038,448 --
------------ ------------
END OF PERIOD $3,845,560 $3,038,448
============ ============
UNDISTRIBUTED NET INVESTMENT
INCOME, END OF PERIOD $17,980 $225
============ ============
DETAIL OF CAPITAL SHARE TRANSACTIONS
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
--------------------------------------------------------------------------------
CLASS A SHARES
SIX MONTHS ENDED 6/30/2000
Shares sold 134,425 $1,278,761
Shares issued for reinvestments -- --
Shares redeemed (81,764) (746,234)
------------ ------------
NET INCREASE 52,661 $532,527
============ ============
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
SIX MONTHS ENDED 6/30/2000
Shares sold -- --
Shares issued for reinvestments -- --
Shares redeemed -- --
------------ ------------
NET INCREASE -- --
============ ============
PERIOD ENDED 12/31/1999
Shares sold 5,692 $57,200
Shares issued for reinvestments -- --
Shares redeemed -- --
------------ ------------
NET INCREASE 5,692 $57,200
============ ============
* BURNHAM FINANCIAL SERVICES FUND COMMENCED OPERATIONS ON JUNE 7, 1999.
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
28 FINANCIAL SERVICES FUND
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
<TABLE>
1/1/00- 6/7/99- 1/1/00- 6/7/99-
6/30/00 12/31/99* 6/30/00 12/31/99*
------------------------------------------------------------------------------------------------------------------------------------
PER SHARE DATA CLASS A SHARES CLASS B SHARES
<S> <C> <C> <C> <C>
NET ASSET VALUE:
-----------------------------------------------------------------------------------------
Beginning of period ($) 9.79 10.00 9.75 10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income/(loss) 0.05 0.02 (0.12) (0.00)(DAGGER)
Net (loss) on securities and options
(both realized and unrealized) 0.75 (0.21) 0.90 (0.25)
-----------------------------------------------------------------------------------------
Total from investment operations 0.80 (0.19) 0.78 (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 ($) 10.59 9.79 10.53 9.75
=========================================================================================
TOTAL RETURN (%) 8.27(DOUBLE DAGGER) (1.90)(DOUBLE DAGGER) 7.90(DOUBLE DAGGER)(2.50)(DOUBLE DAGGER)
-----------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period (in $ millions) 3.8 3.0 0.1 0.0
-----------------------------------------------------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)5 1.6(DOUBLE DAGGER) 1.6(DOUBLE DAGGER) 2.1(DOUBLE DAGGER) 2.3(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER)
-----------------------------------------------------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)5 4.3(DOUBLE DAGGER) 7.4(DOUBLE DAGGER) 5.0(DOUBLE DAGGER) 8.2(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER)
-----------------------------------------------------------------------------------------
Ratio of net income to average
net assets (%) 1.1(DOUBLE DAGGER) 0.7(DOUBLE DAGGER) (0.7)(DOUBLE DAGGER)(0.1)(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER) (DOUBLE DAGGER)
-----------------------------------------------------------------------------------------
Portfolio turnover rate (%) 171.4 89.6 171.4 89.6
<FN>
* Burnham Financial Services Fund commenced operations on June 7, 1999.
(DAGGER) Less than ($0.01) per share.
(DOUBLE DAGGER) Total return is not annualized for the periods 1/1/00 - 6/30/00 or 6/7/99 - 12/31/99.
(DOUBLE DAGGER) Annualized.
(DOUBLE DAGGER)
</FN>
</TABLE>
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
FINANCIAL SERVICES FUND 29
<PAGE>
BURNHAM
MONEY MARKET FUND
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
--------------------------------------------------------------------------------
SHORT-TERM INSTRUMENTS 99.88%
DISCOUNTED COMMERCIAL PAPER 15.11%
GE Capital II
6.58% 07/21/00 2,000,000 $1,992,689
Great Lakes Funding Capital Co.
6.70% 07/27/00 2,000,000 1,990,322
Lehman Brothers Holdings Inc.
6.30% 10/11/00 1,000,000 982,150
Market Street Funding
6.66% 09/06/00 2,000,000 1,975,210
PaineWebberGroup
6.75% 09/28/00 3,000,000 2,949,938
----------
TOTAL DISCOUNTED COMMERCIAL PAPER
(COST: $9,890,309) 9,890,309
----------
DISCOUNTED MASTER NOTES 3.05%
General Motors Acceptance
Corp. Note (LOC: GMAC)
6.60% 07/03/00 2,000,000 1,999,266
----------
TOTAL DISCOUNTED MASTER NOTES
(COST: $1,999,266) 1,999,266
----------
FLOATING RATE NOTES 1.53%
First Union National Bank of N.C.
6.74% 07/17/00 1,000,000 1,000,000
----------
TOTAL FLOATING RATE NOTES
(COST: $1,000,000) 1,000,000
----------
LETTER OF CREDIT COMMERCIAL PAPER 25.45%
Accor S.A. 6.60% 07/17/00 2,000,000 1,994,133
Banco Bradesco S.A.
6.70% 10/02/00 2,000,000 1,965,383
Banco Bradesco S.A. LCP
6.68% 06/14/01 2,000,000 1,870,853
Banco Rio De La Plata S.A.
6.75% 03/08/01 1,000,000 953,125
Banco Rio De La Plata S.A.
6.27% 09/01/00 1,000,000 989,202
E D & F Man Finance
6.60% 07/06/00 2,000,000 1,998,167
Formosa Plastics Corp. USA
6.28% 10/11/00 2,000,000 1,964,413
Garanti Funding Corp.
6.18% 08/01/00 2,000,000 1,989,357
HSBC Bank Argentina S.A.
6.67% 12/18/00 2,000,000 1,937,006
Vermont Yankee Nuclear Power
6.55% 07/07/00 1,000,000 998,908
----------
TOTAL LETTER OF CREDIT COMMERCIAL PAPER
(COST: $16,660,547) 16,660,547
----------
FACE AMORTIZED
VALUE COST
--------------------------------------------------------------------------------
MEDIUM-TERM NOTES 1.53%
Goldman Sachs Group Inc.
6.00% 08/07/00 1,000,000 $1,000,000
----------
TOTAL MEDIUM-TERM NOTES
(COST: $1,000,000) 1,000,000
----------
TAXABLE MUNICIPAL NOTES 2.29%
Emory University Project
Dekalb City, Ga
6.55% 07/11/00 1,500,000 1,500,000
----------
TOTAL TAXABLE MUNICIPAL NOTES
(COST: $1,500,000) 1,500,000
----------
VARIABLE RATE DEMAND NOTES 28.32%
B&V Land Company, L.L.C.
6.77% 09/01/27 1,035,000 1,035,000
Bell County, Texas Health Facilities
Development Corp Variable Rate
(Scott & White Memorial Hospital
Project) Series 1999b-1
6.67% 08/15/29 1,000,000 1,000,000
Columbus, GA Development
Authority Revenue
6.75% 12/01/19 1,000,000 1,000,000
County of McCreary, KY
Industrial Building Revenue
Bonds Phase III
6.71% 04/01/15 1,000,000 1,000,000
FE, LLC (LOC: Bank One)
6.73% 04/01/28 2,000,000 2,000,000
Grand Valley Limited Partnership
6.73% 06/01/27 1,000,000 1,000,000
JDV LLC
6.77% 07/01/27 980,000 980,000
Maximum Principal
Amount Camcairn I
6.79% 10/01/21 1,000,000 1,000,000
Maximum Principal
Amount (Coson Project)
6.79% 08/01/23 1,000,000 1,000,000
Metropolitan Transit Authority,
New York Commuter Facilities
Revenue 6.80% 07/01/03 2,500,000 2,500,000
Ordeal Properties, L.L.C.
(LOC: Key Bank)
6.85% 10/01/12 2,000,000 2,000,000
Shepherd Capital, L.L.C
6.77% 09/15/47 1,025,000 1,025,000
The Southeast Alabama
Gas District
6.70% 06/01/25 2,000,000 2,000,000
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
30 MONEY MARKET FUND
<PAGE>
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS CONTINUED
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
--------------------------------------------------------------------------------
VARIABLE RATE DEMAND NOTES (CONTINUED)
The Wilmington Iron &
Metal Company
6.74% 08/01/14 1,000,000 1,000,000
----------
TOTAL VARIABLE RATE DEMAND NOTES
(COST: $18,540,000) 18,540,000
----------
YANKEE CERTIFICATES OF DEPOSIT 3.05%
National Westminister Bank PLC
7.23% 05/09/01 2,000,000 1,999,516
----------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(COST: $1,999,516) 1,999,516
----------
REPURCHASE AGREEMENTS 19.55%
Salomon Smith Barney
(collateralized by $13,056,001
GNMA, 6.25% to 6.50%,
due 07/20/21 to 06/20/23,
delivery value $12,807,200)
6.75% 07/03/00 12,800,000 12,800,000
----------
TOTAL REPURCHASE AGREEMENTS
(COST: $12,800,000) 12,800,000
----------
TOTAL SHORT-TERM INSTRUMENTS
(COST: $65,389,638) 65,389,638
----------
------------------------------------------------------------------
Total investments in securities 99.88%
(COST: $65,389,638) $65,389,638
Cash and other assets, less liabilities 0.12% 77,469
-----------
Net assets 100.00% $65,467,107
===========
------------------------------------------------------------------
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
ASSETS
Investments, at market value
Securities $52,589,638
Repurchase agreements 12,800,000
-----------
Total investments
(cost: $ 65,389,638) 65,389,638
Cash in bank 7,139
Interest receivable 204,190
Receivable from investment adviser 36,031
Receivable for investment sold 5,000
Prepaid expenses 5,097
-----------
Total assets 65,647,095
-----------
LIABILITIES
Payable for dividends declared 154,328
Payable for administration fees1 7,108
Payable for investment advisory fees2 18,446
Accrued expenses and other payables 106
-----------
Total liabilities 179,988
-----------
NET ASSETS $65,467,107
-----------
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $65,467,107
-----------
$65,467,107
===========
BY NUMBER OF SHARES:
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
------------------------------------------------------------------
$65,467,107 $1.00 65,467,312
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
MONEY MARKET FUND 31
<PAGE>
BURNHAM MONEY MARKET FUND CONTINUED
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000-- UNAUDITED
--------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $1,502,993
-----------
Total income 1,502,993
-----------
EXPENSES
Administration fees1 35,391
Investment advisory fees2 103,073
Transfer agent fees 14,993
Audit and legal fees 9,019
Reports to shareholders 12,147
Trustees' fees and expenses 6,774
Custodian fees 14,178
Registration fees and expenses 10,352
Insurance expenses 652
Fund accounting expenses 11,177
Miscellaneous expenses 3,168
-----------
Total expenses before reimbursement 220,924
Plus voluntary reimbursement recovery
by adviser3 8,672
-----------
Total expenses after reimbursement recovery 229,596
-----------
NET INVESTMENT INCOME $1,273,397
===========
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,273,397
===========
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 6/7/99-
6/30/00 12/31/99*
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $1,273,397 $780,353
Net realized gain from
securities transactions -- 5
------------ ------------
Net increase in net assets
resulting from operations 1,273,397 780,358
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS5
From net investment income (1,273,397) (780,558)
From realized gains from
securities transactions -- (5)
------------ ------------
Total distributions to
shareholders (1,273,397) (780,563)
------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL BELOW)
Net proceeds from sale
of shares 57,417,533 56,016,142
Net asset value of shares
issued to shareholders in
reinvestment of dividends 1,119,031 774,705
------------ ------------
58,536,564 56,790,847
Cost of shares redeemed (25,980,694) (23,879,405)
------------ ------------
Increase in net assets
derived from capital share
transactions 32,555,870 32,911,442
------------ ------------
Increase in net assets for
the period 32,555,870 32,911,237
NET ASSETS
Beginning of period 32,911,237 --
------------ ------------
END OF PERIOD $65,467,107 $32,911,237
============ ============
DETAIL OF CAPITAL SHARE TRANSACTIONS
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
--------------------------------------------------------------------------------
SIX MONTHS ENDED 6/30/2000
Shares sold 57,417,533 $57,417,533
Shares issued for
reinvestments 1,119,031 1,119,031
Shares redeemed (25,980,694) (25,980,694)
------------ ------------
NET INCREASE 32,555,870 $32,555,870
============ ============
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 $32,911,442
============ ============
* BURNHAM MONEY MARKET FUND COMMENCED OPERATIONS ON MAY 3, 1999.
32 MONEY MARKET FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
<PAGE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
<TABLE>
1/1/00- 5/3/99-
6/30/00 12/31/99*
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE:
Per Share Data
Net Asset Value:
Beginning of period ($) 1.00 1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.03
Net gain on securities
(both realized and unrealized) -- 0.00(DAGGER)
-----------------------------------------
Total from investment operations 0.02 0.03
LESS DISTRIBUTIONS:
Dividends
(from net investment income) (0.02) (0.05)
Distributions from capital gains
(from securities transactions) -- (0.00)(DAGGER)
-----------------------------------------
Total distributions (0.02) (0.03)
-----------------------------------------
NET ASSET VALUE: End of period ($) 1.00 1.00
=========================================
TOTAL RETURN (%) 2.61(DOUBLE DAGGER) 2.97(DOUBLE DAGGER)
-----------------------------------------
Ratios/Supplemental Data
Net assets,
end of period (in $ millions) 65.5 32.9
-----------------------------------------
Ratio of total expenses after
reimbursement/recovery to
average net assets (%)3 0.9(DOUBLE DAGGER) 0.9(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER)
-----------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)3 -- 1.1(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER)
--------------------------------------------------------------------------------
Ratio of net income to average
net assets (%) 5.2(DOUBLE DAGGER) 4.5(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER)
--------------------------------------------------------------------------------
<FN>
* BURNHAM MONEY MARKET FUND COMMENCED OPERATIONS ON MAY 3, 1999
(DAGGER) LESS THAN $0.01 PER SHARE.
(DOUBLE DAGGER) TOTAL RETURN IS NOT ANNUALIZED FOR THE PERIODS 1/1/00 - 6/30/00 OR 5/3/99 - 12/31/99.
(DOUBLE DAGGER) ANNUALIZED.
(DOUBLE DAGGER)
</FN>
</TABLE>
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
MONEY MARKET FUND 33
<PAGE>
BURNHAM
U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
PORTFOLIO HOLDINGS CONTINUED
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
FACE AMORTIZED
VALUE COST
--------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS 100.17%
U.S. TREASURY OBLIGATIONS 51.88%
U.S. Treasury Bills
2.75% 07/06/00 $65,000,000 $64,975,174
U.S. Treasury Notes
5.75% 11/15/00 5,000,000 4,999,263
4.50% 01/31/01 2,000,000 1,982,402
5.38% 02/15/01 2,000,000 1,988,295
6.50% 05/31/01 2,000,000 1,995,918
------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST: $75,941,052) 75,941,052
------------
REPURCHASE AGREEMENTS 48.29%
Goldman Sachs
(Collateralized by $35,700,000
GNMA, 7.00% to 8.00%, due
02/15/13 to 03/20/28, delivery
value $35,019,775)
6.78% due 07/03/00 35,000,000 35,000,000
Salomon Smith Barney
(Collateralized by $36,414,000
GNMA, 5.70% to 8.00%, due
10/20/18 to 02/15/30, delivery
value $35,720,081)
6.75% due 07/03/00 35,700,000 35,700,000
------------
TOTAL REPURCHASE AGREEMENTS
(COST: $70,700,000) 70,700,000
------------
TOTAL SHORT-TERM OBLIGATIONS
(COST: $146,641,052) 146,641,052
--------------------------------------------------------------------------------
Total Investments 100.17%
(COST: $146,641,052) $146,641,052
Liabilities, less cash and other assets (0.17)% (248,614)
------------
Net Assets 100.00% $146,392,438
============
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
AS OF JUNE 30, 2000 -- UNAUDITED
--------------------------------------------------------------------------------
ASSETS
Investments, at market value
Securities $75,941,052
Repurchase agreements 70,700,000
------------
Total investments
(cost: $ 146,641,052) 146,641,052
Cash in bank 513
Interest receivable 137,141
Prepaid expenses 15,019
------------
Total assets 146,793,725
------------
LIABILITIES
Payable for dividends declared 323,041
Payable for administration fees1 16,682
Payable for investment advisory fees2 44,282
Accrued expenses and other payables 17,282
------------
Total liabilities 401,287
------------
NET ASSETS $146,392,438
============
ANALYSIS OF NET ASSETS
BY SOURCE:
Capital paid in $146,392,188
Accumulated net realized
gain on investments 250
------------
$146,392,438
============
BY NUMBER OF SHARES:
CAPITAL SHARES
NET ASSETS NAV OUTSTANDING
-------------------------------------------------------------------
$146,392,438 $1.00 146,392,188
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
34 U.S. TREASURY MONEY MARKET FUND
<PAGE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000-- UNAUDITED
--------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $3,693,745
------------
Total income 3,693,745
------------
EXPENSES
Administration fees1 92,232
Investment advisory fees2 245,952
Transfer agent fees 10,833
Audit and Legal fees 13,171
Reports to shareholders 18,432
Trustees' fees and expenses 17,647
Custodian fees 13,994
Registration fees and expenses 34,966
Insurance expenses 3,131
Fund accounting expenses 19,407
Miscellaneous expenses 5,482
------------
Total expenses before reimbursement
recovery 475,247
Plus voluntary reimbursement
recovery by adviser3 16,797
------------
Total expenses after reimbursement
recovery 492,044
------------
NET INVESTMENT INCOME $3,201,701
============
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
REALIZED GAIN FROM SECURITIES TRANSACTIONS:4
Proceeds from sales/maturities of
short-term securities $84,926,500
Cost of short-term securities
sold or matured (84,926,250)
------------
Net realized gain from short-term
securitiy transactions 250
------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $3,201,951
============
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
1/1/00- 10/13/99-
6/30/00 12/31/99*
--------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS:
Net investment income $3,201,701 $728,019
Net realized gain from
securities transactions 250 --
------------ ------------
Net increase in net assets
resulting from operations 3,201,951 728,019
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment
income (3,201,701) (728,019)
------------ ------------
Total distributions to
shareholders (3,201,701) (728,019)
------------ ------------
CAPITAL SHARE TRANSACTIONS
(ALSO SEE DETAIL BELOW)
Net proceeds from sale
of shares 111,190,358 94,671,802
Net asset value of shares
issued to shareholders in
reinvestment of dividends 2,878,651 726,902
------------ ------------
114,069,009 95,398,704
Cost of shares redeemed (51,058,394) (12,017,131)
------------ ------------
Increase in net assets
derived from capital share
transactions 63,010,615 83,381,573
------------ ------------
Increase in net assets for
the period 63,010,865 83,381,573
NET ASSETS
Beginning of period 83,381,573 --
------------ ------------
END OF PERIOD $146,392,438 $83,381,573
============ ============
DETAIL OF CAPITAL SHARE TRANSACTIONS
--------------------------------------------------------------------------------
NUMBER MARKET
OF SHARES AMOUNT
--------------------------------------------------------------------------------
SIX MONTHS ENDED 6/30/2000
Shares sold 111,190,358 $111,190,358
Shares issued for
reinvestments 2,878,651 2,878,651
Shares redeemed (51,058,394) (51,058,394)
------------ ------------
NET INCREASE 63,010,615 $63,010,615
============ ============
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 $83,381,573
============ ============
* BURNHAM U.S. TREASURY MONEY MARKET FUND COMMENCED OPERATIONS ON OCTOBER 13,
1999.
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
U.S. TREASURY MONEY MARKET FUND 35
<PAGE>
BURNHAM U.S. TREASURY MONEY MARKET FUND CONTINUED
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FIGURES FOR 1/1/2000 TO 6/30/2000 ARE UNAUDITED.
--------------------------------------------------------------------------------
<TABLE>
1/1/00- 10/13/99-
6/30/00 12/31/99*
------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE DATA
NET ASSET VALUE:
Beginning of period ($) 1.00 1.00
Income from Investment Operations:
Net investment income 0.02 0.00(DAGGER)
------------------------------------------
Total from investment operations 0.02 0.00(DAGGER)
Less Distributions:
Dividends
(from net investment income) (0.02) (0.00)(DAGGER)
------------------------------------------
Total distributions (0.02) (0.00)(DAGGER)
------------------------------------------
NET ASSET VALUE: End of period ($) 1.00 1.00
=========================================
TOTAL RETURN (%) 2.60(DOUBLE DAGGER) 1.0(DOUBLE DAGGER)
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period (in $ millions) 146.4 83.4
------------------------------------------
Ratio of total expenses after
reimbursement to average
net assets (%)3 0.8(DOUBLE DAGGER) 0.8(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER)
------------------------------------------
Ratio of total expenses before
reimbursement to average
net assets (%)3 -- 0.9(DOUBLE DAGGER)
(DOUBLE DAGGER) (DOUBLE DAGGER)
------------------------------------------
Ratio of net income to average
net assets (%) 5.2(DOUBLE DAGGER) 4.6(DOUBLE DAGGER)
(DOUBLE DAGGER)
------------------------------------------
<FN>
* Burnham U.S. Treasury Money Market Fund commenced operations on October 13, 1999.
(DAGGER) Less than $0.01 per share.
(DOUBLE DAGGER) Total return is not annualized for the periods 1/1/00 - 6/30/00 or 10/13/99 - 12/31/99.
(DOUBLE DAGGER) Annualized.
(DOUBLE DAGGER)
</FN>
</TABLE>
36 U.S. TREASURY MONEY MARKET FUND
THE NOTES ARE AN INTEGRAL PART OF THESE FINANCIALS. NOTES SPECIFIC TO THIS FUND
ARE ON PAGE 38.
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
BURNHAM FUND
--------------------------------------------------------------------------------
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 $65,069 IN BROKERAGE COMMISSIONS FROM HANDLING
SECURITIES TRADES FOR THE FUND'S PORTFOLIO, AND $9,333 IN SALES COMMISSIONS
FOR SELLING CLASS A SHARES. THE DISTRIBUTOR RECEIVED $15,061 IN CDSC PAYMENTS
FROM CLASS B SHARES DURING THE PERIOD.
4 FOR CLASS A SHARES, THE OFFERING PRICE, WITH MAXIMUM 5% SALES CHARGE, WAS
$48.52; 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 SIX
MONTHS ENDED JUNE 30, 2000, THE ADVISER RECOVERED FROM BOTH SHARE CLASSES A
TOTAL OF $38,118 FOR EXPENSES THE ADVISOR HAD PREVIOUSLY REIMBURSED THAT WERE
IN EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
6 THE FUND PAID $59,704,787 TO BUY LONG-TERM EQUITY AND DEBT SECURITIES DURING
THE PERIOD.
7 ON MAY 3, 1999, ALL OUTSTANDING CLASS C SHARES WERE REORGANIZED INTO CLASS A
SHARES.
BURNHAM DOW 30(SERVICE MARK) FOCUSED FUND
--------------------------------------------------------------------------------
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 $45 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. FOR THE SIX MONTHS ENDED JUNE 30, 2000, THE ADVISER REIMBURSED
THE FUND FOR EXPENSES IN EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
6 THE FUND PAID $38,569 TO BUY LONG-TERM EQUITY SECURITIES DURING THE PERIOD.
DOW JONES DISCLAIMER
--------------------------------------------------------------------------------
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.
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.
"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.
NOTES TO FINANCIAL STATEMENTS 37
<PAGE>
BURNHAM FINANCIAL SERVICES FUND
--------------------------------------------------------------------------------
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 $5,958 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
$11.15; 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, RESPECTIVELY. THIS LIMIT IS
VOLUNTARY AND THE ADVISER COULD CHANGE OR DROP IT AT ANY TIME. FOR THE SIX
MONTHS ENDED JUNE 30, 2000, THE ADVISER REIMBURSED THE FUND FOR EXPENSES IN
EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
6 DURING THE PERIOD ENDED JUNE 30, 2000, THE FUND PAID $5,898,595 TO BUY
LONG-TERM EQUITY SECURITIES. WRITTEN OPTION ACTIVITY FOR THE FUND WAS AS
FOLLOWS:
WRITTEN OPTIONS NUMBER OF CONTRACTS PREMIUMS
OUTSTANDING AT DECEMBER 31, 1999 120 $11,882
WRITTEN 615 56,338
EXPIRED (300) (26,761)
CLOSED (10) (1,815)
EXERCISED (120) (12,820)
----- --------
OUTSTANDING AT JUNE 30, 2000 305 $26,824
===== ========
BURNHAM MONEY MARKET FUND
--------------------------------------------------------------------------------
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 0.97% OF AVERAGE
NET ASSETS. THIS LIMIT IS VOLUNTARY AND THE ADVISER COULD CHANGE OR DROP IT
AT ANY TIME. FOR THE SIX MONTHS ENDED JUNE 30, 2000, THE ADVISER RE-COVERED
FROM THE FUND A TOTAL OF $8,672 FOR EXPENSES THE ADVISOR HAD PRE- VIOUSLY
reimbursed that were in excess of the voluntary expense limitation.
BURNHAM U.S. TREASURY MONEY MARKET FUND
--------------------------------------------------------------------------------
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 0.85% OF AVERAGE
NET ASSETS. THIS LIMIT IS VOLUNTARY AND THE ADVISER COULD CHANGE OR DROP IT
AT ANY TIME. FOR THE SIX MONTHS ENDED JUNE 30, 2000, THE ADVISER RE-COVERED
FROM THE FUND A TOTAL OF $16,797 FOR EXPENSES THE ADVISOR HAD PRE- VIOUSLY
REIMBURSED THAT WERE IN EXCESS OF THE VOLUNTARY EXPENSE LIMITATION.
38 NOTES TO FINANCIAL STATEMENTS
<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
Jon M. Burnham
HONORARY CHAIRMAN
I.W. Burnham, II
TRUSTEES
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
MODERN PORTFOLIO THEORY 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.)
R2
Reflects the percentage of a fund's movements that are explained by movements in
its benchmark index. An R2 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>
[GRAPHIC OMITTED - BURNHAM FINANCIAL GROUP LOGO]
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.
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
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.
BITSANL06/00
