ANNUAL REPORT
September 30, 1995
THE BERGER FUNDS
THE BERGER 100 FUND
THE BERGER 101 FUND
THE BERGER SMALL COMPANY GROWTH FUND
Shareholder Services: 1-800-551-5849
Dear Berger Funds Investor,
The Berger Funds are presenting a combined annual report which includes the
Berger 100 Fund, the Berger 101 Fund and the Berger Small Company Growth Fund.
The report reflects the financial position of each Fund at September 30, 1995
and the results of their operations for the year then ended and changes in their
net assets for the two fiscal periods then ended in a single document.
Table of Contents
<TABLE>
<CAPTION>
Section Page
<S> <C>
Portfolio Manager's Letter-Berger 100 Fund 3
Schedule of Investments-Berger 100 Fund 5
Report of Independent Accountants-Berger 100 Fund 10
Portfolio Manager's Letter-Berger 101 Fund 13
Schedule of Investments-Berger 101 Fund 15
Report of Independent Accountants-Berger 101 Fund 19
Portfolio Manager's Letter-Berger Small Company Growth Fund 21
Schedule of Investments-Berger Small Company Growth Fund 24
Report of Independent Accountants-Berger Small Company Growth Fund 30
Financial Statements 31
Notes to Financial Statements 34
Financial Highlights 39
</TABLE>
THE BERGER FUNDS
Berger 100 Fund
(DESCRIPTION OF 100 FUND PERFORMANCE CHARTS)
The following table reflects data presented in two line charts at this point in
the Annual Report to Shareholders. The first chart compares the value of shares
invested in the Berger 100 Fund to the S&P 500 Index. The second chart compares
the Berger 100 Fund to the Cost of Living Index. Both charts are based on an
initial investment of $10,000 on September 30, 1985 with all dividends and
capital gains reinvested. Also included is a smaller chart reflecting the
Berger 100 Fund's Average Annual Total Return as of September 30, 1995 for 1
year--18.4%, 5 years--25.8% and 10 years--20.4%.
<TABLE>
<CAPTION>
Total
Value
Berger S&P 500 Cost of
Date 100 Fund Index Living
Index
<S> <C> <C> <C>
09/30/85 $10,000 $10,000 $10,000
09/30/86 13,415 13,160 10,175
09/30/87 17,355 18,867 10,619
09/30/88 16,525 16,522 11,062
09/30/89 24,342 21,957 11,542
09/30/90 20,243 19,929 12,253
09/30/91 37,044 26,117 12,669
09/30/92 39,626 28,990 13,047
09/30/93 55,875 32,741 13,398
09/30/94 53,915 33,958 13,795
09/30/95 63,813 44,024 14,118
</TABLE>
Past performance is not predictive of future performance.
THE BERGER FUNDS
Berger 100 Fund
Portfolio Manager's Letter
Dear Shareholder,
Berger Associates, Inc., has managed the Berger 100 Fund for the past 21
years. During this period a hypothetical $10,000 investment on September 30,
1974 would have grown to $198,787 at September 30, 1995, which represents a
15.3% average annual total return. The Fund's average annual total returns for
the one, five and ten year periods ending September 30, 1995, were 18.4%, 25.8%
and 20.4% respectively.*
The past twelve months have been a truly spectacular period for stock and bond
investors alike as the forces of declining interest rates and strong corporate
profitability have been a catalyst for exceptionally strong market performance.
Moderate levels of economic growth and continuing low levels of inflationary
pressures within the economic system have provided an excellent backdrop for
investors. Behind the exceptionally strong performance of the major market
averages the picture has been somewhat mixed. Strong performance has largely
been concentrated in the technology and financial sectors of the marketplace
while performance in most other sectors has been selective and highly
rotational. Performance of the Berger 100 Fund, after a disappointing first
half of the year, is back in step with the strong performance of the major
averages lagging only behind the heavily technology-weighted NASDAQ composite.
As your management team reflects over the past twelve months, we share the
disappointments of early performance with many of you, however, we have never
become discouraged. The demonstrated long term success of owning a diversified
portfolio of some of the most profitable, predictable, high growth companies in
the world has given us the conviction and courage to stay disciplined and
focused throughout this admittedly difficult period.
The past twelve months have been filled with many highlights and we have
generally received tremendous earnings performance from our diversified group of
portfolio companies. As expected, the most consistent and strongest results
have come from the technology sector. Powerful earnings results have led to
tremendous portfolio gains in companies such as Cisco Systems and 3Com in the
computer networking group, Micron Technology and LSI Logic in the memory area,
and America Online and Paging Network in the software and paging areas. Strong
as the technology sector has been, we have also received exceptional results
from many healthcare companies such as IDEXX Labs, Boston Scientific, Medtronic
and Amgen. The financial services sector of the marketplace has never been a
large focus of the Fund because it typically lacks the type of earnings
consistency that we seek. However, we have received great results from a number
of companies within that sector, such as Charles Schwab, First Financial
Management and First Data Corp., which were all solid contributors throughout
the year. (First Financial and First Data have since merged.) Strong earnings
performance also resulted in large gains in selected consumer related stocks,
such as CUC International and General Nutrition Companies, in what was generally
a weak consumer related investment environment. Major disappointments in the
second half of the fiscal year were largely confined to the healthcare sector
where government reimbursement issues rocked the long term care (nursing homes)
sector. Although we continue to like the long term fundamentals, we have exited
that group until such time as the current legislative questions surrounding
Medicare and Medicaid reimbursement rates are resolved and we can gain a higher
level of confidence in the future earnings trends for these companies. Earnings
disappointments resulted in additional realized losses in IDEON Group and
Sensormatic Electronics.
Entering the new fiscal year we have made significant portfolio changes which
we feel will lead to strong absolute and relative performance going forward.
The most significant and newsworthy of these changes is a dramatic reduction in
our exposure to the technology sector. Although we continue to believe the long
term fundamentals of the technology sector remain extremely attractive,
expectations remain very high and a heavy concentration in that sector by many
mutual funds have led us to take a more cautious near term position toward the
group. Industry concentrations of 40--60% (and in some cases even higher)
bring about the potential for a heavy sell-off in that sector should the group
enter into a normal corrective phase making portfolio managers feel the pressure
to rotate into better performing and less volatile groups. Portfolio weighting
in the technology sector has been reduced from nearly 35% to a current weighting
of approximately 22%. Healthcare related issues also account for 20% of
portfolio assets with the primary focus toward medical devices and
biotechnology. Consumer cyclical stocks, consisting primarily of media,
entertainment and gaming related issues, account for 15% of portfolio value and
consumer staples account for an additional 14%. The largest single area of new
portfolio exposure is in the energy services group where new technologies and
firmer pricing make the future earnings outlook for these companies extremely
attractive after nearly a decade of deteriorating industry fundamentals. Nearly
11% of assets have been committed to that sector. Capital goods and financials
remain underweighted in the portfolio with commitments of 7% and 5%
respectively. Cash equivalents were approximately 6% at fiscal year end. I
would encourage you to review the Schedule of Investments included in the report
to see the individual companies and their respective weightings within the
portfolio. Other significant news during the fiscal year included the naming of
Price Waterhouse LLP as independent accountants of the Fund.
As we enter a new fiscal year we continue to believe in the long term health
of the U.S. economy, the global economy and the overall investment environment
for equity investors. Earnings per share growth rates have likely peaked for
the current cycle but we continue to find individual companies possessing the
characteristics we seek out which trade at reasonable valuations relative to
their fundamental outlooks. We remain both confident in, and committed to, our
long held philosophy of attaching shareholder assets to a stream of steadily
growing earnings and riding those earnings to long term investment success. We
appreciate the trust and confidence exhibited by your investment in the Berger
100 Fund and look forward to earning it well into the future.
Respectfully submitted,
Rodney L. Linafelter
President and Portfolio Manager
*Performance figures are based on historical results and are not intended to be
indicative of future performance. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost.
THE BERGER FUNDS
Berger 100 Fund
<TABLE>
<CAPTION>
Berger One Hundred Fund, Inc.
Schedule of Investments / September 30, 1995
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 92.5%
<S> <C> <C> <C>
Aerospace/Defense - 1.2%
400,000 Boeing Co. $ 27,300,000
Auto/Truck - Original Equipment - 1.3%
1,000,000 Lear Seating Corp.* 29,375,000
Computer - Integrated Systems - 2.0%
600,000 Oracle Systems Corp.* 23,025,000
600,000 Cerner Corp.* 20,550,000
43,575,000
Computer - Local Networks - 2.6%
500,000 3Com Corp.* 22,750,000
500,000 Cisco Systems Inc.* 34,500,000
57,250,000
Computer - Services - 5.5%
400,000 First Financial Management Corp. 39,050,000
400,000 HBO & Co. 25,000,000
600,000 General Motors Corp. Cl E 27,300,000
450,000 America Online Inc.* 30,937,500
122,287,500
Cosmetics/Personal Care - 1.6%
750,000 General Nutrition Companies Inc.* 34,125,000
Diversified Operations - 0.9%
650,000 American Standard Companies Inc.* 19,175,000
Electrical - Control Instruments - 0.9%
500,000 Roper Industries Inc. 19,375,000
Electronic - Measuring Instruments - 1.4%
940,000 Elsag Bailey Process Automation* (Netherlands) 30,667,500
Electronic - Misc. Components - 1.8%
1,000,000 Solectron Corp.* 39,500,000
Electronic - Scientific Instruments - 1.1%
500,000 Thermo Electron Corp.* 23,187,500
Electronic - Semiconductor Manufacturing -
6.2%
1,000,000 Atmel Corp.* 33,750,000
500,000 LSI Logic Corp.* 28,875,000
400,000 Sanmina Corp.*# 19,100,000
300,000 Micron Technology Inc. 23,850,000
400,000 Motorola Inc. 30,550,000
136,125,000
Finance - Consumer Loans - 1.2%
500,000 First USA Inc. 27,125,000
Finance - Investment Brokers - 1.5%
1,200,000 Charles Schwab Corp. 33,600,000
Finance - Mortgage & Related Services - 1.4%
300,000 Federal National Mortgage Assn. 31,050,000
Financial Services - Misc. - 0.8%
300,000 First Data Corp. 18,600,000
Funeral Services & Related - 1.5%
800,000 Loewen Group Inc. (Canada) 33,000,000
Household - Audio/Video - 1.1%
500,000 Philips Electronics N.V. New York (Netherlands) 24,375,000
Leisure - Gaming - 3.9%
1,000,000 Mirage Resorts Inc.* 32,875,000
1,002,500 GTECH Holdings Corp.* 30,200,313
750,000 Harrah's Entertainment Inc.* 21,937,500
85,012,813
Leisure - Hotels & Motels - 0.4%
375,000 Promus Hotel Corp.* 8,531,250
Machinery - Farm - 1.4%
850,000 Case Corp. 31,237,500
Media - Newspapers - 1.0%
1,000,000 News Corp. Ltd. ADR (Australia) 22,000,000
Media - Periodicals - 1.4%
800,000 Time Warner Inc. 31,800,000
Media - Radio/TV - 2.0%
1,000,000 New World Communications Group Inc.* 20,625,000
700,000 Infinity Broadcasting Corp. Cl A* 22,925,000
43,550,000
Medical - Biomedics/Genetics - 5.3%
800,000 BioChem Pharma Inc.* (Canada) 25,500,000
800,000 Amgen Inc.* 39,900,000
250,000 Chiron Corp.* 22,625,000
500,000 Genzyme Corp.* 29,000,000
117,025,000
Medical - Ethical Drugs - 2.4%
600,000 Elan Corp. PLC ADR* (Ireland) 24,900,000
500,000 Merck & Co. 28,000,000
52,900,000
Medical - Generic Drugs - 2.0%
600,000 Watson Pharmaceuticals Inc.* 24,600,000
658,000 IVAX Corp. 19,822,250
44,422,250
Medical - Hospitals - 2.8%
1,000,000 Vencor Inc.* 32,000,000
600,000 Columbia/HCA Healthcare Corp. 29,175,000
61,175,000
Medical - Instruments - 4.0%
1,200,000 IDEXX Laboratories Inc.*# 44,700,000
800,000 Medtronic Inc. 43,000,000
87,700,000
Medical - Outpatient/Home Care - 0.6%
500,000 HEALTHSOUTH Corp.* 12,750,000
Medical - Products - 1.5%
800,000 Boston Scientific Corp.* 34,100,000
Medical/Dental - Supplies - 1.4%
650,000 Luxottica Group SPA ADR (Italy) 31,768,750
Metal Products - Fasteners - 0.9%
700,000 UCAR International Inc.* 19,075,000
Oil & Gas - Drilling - 1.5%
1,000,000 Sonat Offshore Drilling Inc. 32,625,000
Oil & Gas - Field Services - 5.9%
980,000 Petroleum Geo-Services ADR* (Norway) 24,010,000
500,000 Western Atlas Inc.* 23,687,500
500,000 Schlumberger Ltd. 32,625,000
750,000 BJ Services Co.* 18,937,500
750,000 Halliburton Co. 31,312,500
130,572,500
Oil & Gas - Machinery/Equipment - 2.2%
700,000 Tidewater Inc. 19,687,500
1,250,000 Dresser Industries Inc. 29,843,750
49,531,250
Oil & Gas - Production/Pipeline - 1.1%
750,000 Enron Corp. 25,125,000
Retail - Department Stores - 1.3%
1,000,000 Federated Department Stores Inc.* 28,375,000
Retail - Mail Order & Direct - 2.1%
1,300,000 CUC International Inc.* 45,337,500
Retail - Misc./Diversified - 1.0%
600,000 Barnes & Noble Inc.* 22,950,000
Retail/Wholesale - Building Products - 2.0%
9,500 Hornbach Baumarkt AG (Germany) 5,318,404
12,000 Hornbach Holdings AG (Germany) 12,932,120
650,000 Home Depot Inc. 25,918,750
44,169,274
Retail/Wholesale Office Supplies - 2.4%
1,000,000 Staples Inc.* 28,250,000
1,000,000 OfficeMax Inc.* 24,250,000
52,500,000
Shoes & Related Apparel - 1.6%
750,000 Nine West Group Inc.* 34,125,000
Telecommunications - Cellular - 0.9%
506,000 Vodafone Group PLC ADR (United Kingdom) 20,746,000
Telecommunications - Equipment - 1.8%
300,000 Nokia Corp. ADR (Finland) 20,925,000
650,000 General Instrument Corp.* 19,500,000
40,425,000
Telecommunications - Services - 3.7%
1,000,000 IntelCom Group Inc.* # (Canada) 12,750,000
1,100,000 WorldCom Inc.* 35,337,500
700,000 Paging Network Inc.* 33,600,000
81,687,500
TOTAL COMMON STOCK (Cost $1,486,249,067) 2,040,909,087
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT
NOTES - 2.5%
$25,000,000 FNMA Discount Notes due 10/25/95 $24,907,167
15,000,000 FNMA Discount Notes due 11/02/95 14,925,600
10,000,000 FNMA Discount Notes due 11/21/95 9,921,375
6,000,000 FNMA Discount Notes due 11/24/95 5,950,140
TOTAL FNMA DISCOUNT NOTES (Amortized Cost 55,704,282
$55,704,282)
U.S. GOVERNMENT OBLIGATIONS - 3.8%
900,000 U.S. Treasury Bills due 10/12/95 898,556
2,200,000 U.S. Treasury Bills due 10/19/95 2,194,225
4,800,000 U.S. Treasury Bills due 11/02/95 4,777,749
25,500,000 U.S. Treasury Bills due 11/09/95 25,356,464
25,000,000 U.S. Treasury Bills due 11/16/95 24,833,148
24,000,000 U.S. Treasury Bills due 11/24/95 23,810,640
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost
$81,870,782) 81,870,782
TOTAL INVESTMENTS (Cost $1,623,824,131+) - 2,178,484,151
98.8%
OTHER ASSETS, LESS LIABILITIES - 1.2% 27,194,352
NET ASSETS - 100% $2,205,678,503
</TABLE>
*Non-Income Producing Security.
+Also represents cost for tax purposes.
#The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with each such affiliate for the year ended
September 30, 1995:
<TABLE>
<CAPTION>
Change in
Market Value Unrealized Market Value
at 9/30/94 Purchases at Sales Appreciation at 9/30/95 Dividend Realized Gain
Cost at Cost (Depreciation) Income (Loss)
<S> <C> <C> <C> <C> <C> <C> <C>
Aldila Inc. $14,025,000 $0 $14,361,154 $336,154 $0 $0 $(6,708,200)
Cyrk Inc. 0 21,600,000 21,600,000 0 0 0 (9,610,379)
DOVatron 12,112,500 0 11,887,500 (225,000) 0 0 (2,261,526)
International Inc.
IDEXX Laboratories 23,600,000 0 5,626,130 26,726,130 44,700,000 0 2,572,028
Inc.(1)
IntelCom Group 0 15,272,600 0 (2,522,600) 12,750,000 0 0
Inc.
OHM Corp. 9,200,000 0 9,765,166 565,166 0 0 (4,743,815)
PeopleSoft Inc.(2) 28,950,000 0 19,828,401 (9,121,599) 0 0 26,987,711
Sanmina Corp. 9,700,000 0 0 9,400,000 19,100,000 0 0
</TABLE>
(1) Adjusted for 2-for-1 stock split 6/6/95
(2) Adjusted for 2-for-1 stock split 12/12/94
See notes to financial statements.
THE BERGER FUNDS
Berger 100 Fund
Report of Independent Accountants
To the Board of Directors and Shareholders of
Berger 100 Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Berger 100 Fund, Inc. (the
"Fund") at September 30, 1995, the results of its operations, the changes in its
net assets and the financial highlights for the year then ended, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at September 30, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provides a reasonable basis for
the opinion expressed above. The financial statements of the Fund for the year
ended September 30, 1994 were audited by other independent accountants whose
report dated October 28, 1994 expressed an unqualified opinion on those
financial statements.
Price Waterhouse LLP
Denver, Colorado
October 27, 1995
THE BERGER FUNDS
Berger 101 Fund
(DESCRIPTION OF 101 FUND PERFORMANCE CHARTS)
The following table reflects data presented in two line charts at this point in
the Annual Report to Shareholders. The first chart compares the value of shares
invested in the Berger 101 Fund to the S&P 500 Index. The second chart compares
the Berger 101 Fund to the Cost of Living Index. Both charts are based on an
initial investment of $10,000 on September 30, 1985 with all dividends and
capital gains reinvested. Also included is a smaller chart reflecting the
Berger 101 Fund's Average Annual Total Return as of September 30, 1995 for 1
year--14.1%, 5 years--20.5% and 10 years--13.3%.
<TABLE>
<CAPTION>
Total Value
Berger 101 S&P 500 Index Cost of
Date Fund Living Index
<S> <C> <C> <C>
09/30/85 $10,000 $10,000 $10,000
09/30/86 13,191 13,160 10,175
09/30/87 15,815 18,867 10,619
09/30/88 13,804 16,522 11,062
09/30/89 16,196 21,957 11,542
09/30/90 13,738 19,929 12,253
09/30/91 21,812 26,117 12,669
09/30/92 23,547 28,990 13,047
09/30/93 29,781 32,741 13,398
09/30/94 30,647 33,958 13,795
09/30/95 34,952 44,024 14,118
</TABLE>
Past performance is not predictive of future performance.
THE BERGER FUNDS
Berger 101 Fund
Portfolio Manager's Letter
Dear Shareholder,
Berger Associates, Inc., has managed the Berger 101 Fund for the past 21
years. During this period a hypothetical $10,000 investment on September 30,
1974 would have grown to $148,005 at September 30, 1995, which represents a
13.7% average annual total return. The Fund's average annual total returns for
the one, five and ten year periods ending September 30, 1995, were 14.1%, 20.5%
and 13.3% respectively.*
The past twelve months have been truly spectacular for stock and bond
investors alike as the forces of declining interest rates and strong corporate
profitability have been the catalyst for exceptionally strong market
performance. Moderate levels of economic growth and a continuation of the low
levels of inflationary pressures within the economic system have provided an
excellent backdrop for investors. Behind the exceptionally strong performance
of the major market averages the picture has been somewhat mixed. Strong
performance has largely been concentrated in the technology and financial
services sectors of the marketplace while performance in most other sectors has
been selective and highly rotational. Performance of the Berger 101 Fund, after
a disappointing first half of the year, has been more in line with the averages
over the past six months. As your management team reflects over the past twelve
months, we share the disappointment of many of you with the yearly performance
but have never become discouraged. The demonstrated long term success of owning
a diversified portfolio of some of the most profitable, predictable growth
companies in the world has given us the conviction and the courage to stay
disciplined throughout this admittedly difficult period.
The year began on a difficult note when the decision by the Mexican government
to devalue, and subsequently float the peso exchange rate, severely hurt Fund
performance in December and January. Losses were realized on the foreign
portion of the portfolio, primarily in Mexican and other Latin American stocks.
It was the opinion of management at that time to liquidate those affected
holdings with the feeling that the economic impact of the devaluation action
would be impossible to evaluate until a later date. In spite of the
disappointments within the foreign holdings, the year has been generally
successful as the domestic equity market's rotation back toward a growth stock
preference began to positively impact the portfolio in the Spring and generally
continued throughout the remainder of the fiscal year. The highly diversified
and eclectic nature of the Berger 101 Fund makes individual security selection
far more important than sector weightings. The successes throughout the year
were clearly reflective of this approach as winners were found in technology
(LSI Logic 5.5% convertible debenture, Nokia, Motorola and Hewlett-Packard);
financials (Charles Schwab Corp., Federal National Mortgage and USF&G); and
healthcare (Johnson & Johnson, Abbott Labs, American Home Products and Pfizer),
as well as some selected consumer related issues (Philip Morris and Black &
Decker). Major failures were all confined to the foreign area.
As we move forward into the new fiscal year we continue to be optimistic about
the prospects for growth and income investors. The economic environment remains
ideal with slow growth and low rates of consumer inflation. Although we
continue to be optimistic over the long term fundamentals of the technology
sector, the near term holds some concern over rising, and possibly unrealistic
expectations, as well as concerns over the heavy concentrations of ownership
within the sector. This ownership concentration, largely by mutual funds, could
lead to a short term setback should fund managers be inclined to rotate into
better performing and less volatile sectors during a normal correction. For
this reason, we currently underweight the sector in hopes of a better buying
opportunity in the future. Currently, our largest single sector weighting is
committed to telephone utilities with nearly 16% of portfolio assets allocated
to providers of telecommunications services. Healthcare continues to be an area
of great opportunity for growth and income investors as companies within the
sector make up 12% of portfolio assets. Selected financial service companies
also comprise 12% of the portfolio. Capital goods and consumer cyclicals make
up 10% and 9% of the portfolio respectively. The largest single area of new
portfolio commitment comes in the oil service sector as advances in technology
as well as a firmer pricing environment brought about by industry consolidation
lends a bright earnings future to the group. We currently have committed
approximately 8% of assets to this group. We currently have allocated 18% of
assets to bonds which are convertible into common stock with nearly half of that
invested in the convertible bonds of technology companies. That, in addition to
our 7% weighting to technology common stocks gives us effective technology
exposure of approximately 16% of total portfolio assets. Approximately 8% of
assets remain in cash equivalents. I would encourage you to review the Schedule
of Investments on the pages that follow to see the individual companies and
their respective weightings within the portfolio. Other significant news during
the year included the appointment of Price Waterhouse LLP as independent
accountants for the Fund.
As we enter the new fiscal year we continue to believe in the long term health
of the U.S. economy, the global economy and the overall investment environment
for equity investors. Although earnings per share growth rates have likely
peaked for the current cycle, we continue to find individual companies
possessing the characteristics we seek trading at attractive prices relative to
their respective fundamental outlooks. We remain both confident and committed
to our long held philosophy of attaching shareholder assets to a stream of
steadily growing earnings and riding those earnings to long term investment
success. We appreciate the trust and confidence exhibited by your investment in
the Berger 101 Fund and look forward to earning it well into the future.
Respectfully submitted,
Rodney L. Linafelter
President and Portfolio Manager
*Performance figures are based on historical results and are not intended to be
indicative of future performance. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
THE BERGER FUNDS
Berger 101 Fund
<TABLE>
<CAPTION>
Berger One Hundred and One Fund, Inc.
Schedule of Investments / September 30, 1995
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 71.3%
<S> <C> <C> <C>
Aerospace/Defense - 2.4%
125,000 Boeing Co. $ 8,531,250
Building - Hand Tools - 2.4%
250,000 Black & Decker Corp. 8,531,250
Commercial Services - Misc. - 2.1%
200,000 H & R Block Inc. 7,600,000
Computer - Services - 2.2%
120,000 Computer Sciences Corp.* 7,725,000
Diversified Operations - 3.7%
100,000 Alco Standard Corp. 8,475,000
200,000 Ogden Corp. 4,700,000
13,175,000
Electrical - Equipment - 1.7%
60,000 ASEA AB ADR (Sweden) 5,992,500
Electronic - Measuring Instruments - 2.3%
250,000 Elsag Bailey Process Automation* (Netherlands) 8,156,250
Electronic - Semiconductor Manufacturing -
2.2%
100,000 Motorola Inc. 7,637,500
Finance - Equity REIT - 2.8%
175,000 Crescent Real Estate Equities Inc. 5,381,250
250,000 Security Capital Pacific Trust 4,750,000
10,131,250
Finance - Investment Brokers - 2.4%
300,000 Charles Schwab Corp. 8,400,000
Finance - Mortgage & Related Services - 2.2%
75,000 Federal National Mortgage Assn. 7,762,500
Household - Audio/Video - 2.1%
150,000 Philips Electronics N.V. New York (Netherlands) 7,312,500
Insurance - Property/Casualty/Title - 4.2%
150,000 PMI Group Inc. 7,106,250
400,000 USF&G Corp. 7,750,000
14,856,250
Medical - Drug/Diversified - 6.8%
200,000 Abbott Laboratories 8,525,000
80,000 American Home Products Corp. 6,790,000
120,000 Johnson & Johnson 8,895,000
24,210,000
Medical - Ethical Drugs - 4.8%
150,000 Merck & Co. 8,400,000
160,000 Pfizer Inc. 8,540,000
16,940,000
Office - Equipment & Automation - 1.9%
50,000 Xerox Corp. 6,718,750
Oil & Gas - Field Services - 4.5%
195,000 Halliburton Co. 8,141,250
120,000 Schlumberger Ltd. 7,830,000
15,971,250
Oil & Gas - Machinery/Equipment - 2.0%
300,000 Dresser Industries Inc. 7,162,500
Oil & Gas - Production/Pipeline - 1.9%
200,000 Enron Corp. 6,700,000
Retail/Wholesale - Building Products - 0.5%
525 Hornbach Baumarkt AG (Germany) 293,912
1,400 Hornbach Holdings AG (Germany) 1,508,747
1,802,659
Telecommunications - Cellular - 2.3%
200,000 Vodafone Group PLC ADR (United Kingdom) 8,200,000
Telecommunications - Equipment - 2.0%
100,000 Nokia Corp. ADR (Finland) 6,975,000
Telecommunications - Services - 2.2%
125,000 Telecom Corp. of New Zealand Ltd. ADR (New 7,718,750
Zealand)
Transportation - Airline - 0.2%
90,000 Singapore Airlines (Singapore) 834,270
Utility - Telephone - 9.5%
160,000 Ameritech Corp. 8,340,000
300,000 Frontier Corp. 7,987,500
160,000 SBC Communications Inc. 8,800,000
180,000 U S West Inc. 8,482,500
33,610,000
TOTAL COMMON STOCK (Cost $196,103,159) 252,654,429
CONVERTIBLE PREFERRED STOCK - 2.3%
Computer - Services - 0.9%
50,000 General Motors Corp. Cl C Cv Pfd 3,243,750
Oil & Gas - Production/Pipeline - 1.4%
100,000 Tejas Gas Corp. 5.25% Cv Pfd 4,900,000
TOTAL CONVERTIBLE PREFERRED STOCK (Cost 8,143,750
$7,779,925)
CONVERTIBLE DEBENTURES - 16.6%
Computer - Local Networks - 2.2%
$5,000,000 3Com Corp. 144A - 10.25% due 11/01/01** 7,812,500
Computer - Services - 2.4%
6,000,000 First Financial Management Corp. - 5% due 8,685,000
12/15/99
Electronic - Misc. Components - 0.6%
2,500,000 Solectron Corp. LYON - 0% due 05/05/12# 2,075,000
Electronic - Scientific Instruments - 2.4%
5,500,000 Thermo Electron Corp. 144A - 5% due 01/15/01** 8,373,750
Electronic - Semiconductor Manufacturing -
3.5%
2,500,000 LSI Logic Corp. 144A - 5.5% due 03/15/01** 12,250,000
Media - Periodicals - 1.3%
4,386,500 Time Warner Inc. - 8.75% due 01/10/15 4,583,892
Medical - Generic Drugs - 1.5%
5,000,000 IVAX Corp. 144A - 6.5% due 11/15/01** 5,362,500
Telecommunications - Equipment - 1.5%
4,000,000 General Instrument Corp. - 5% due 06/15/00 5,425,000
Telecommunications - Services - 1.2%
4,000,000 WorldCom Inc. - 5% due 08/15/03 4,090,000
TOTAL CONVERTIBLE DEBENTURES (Cost $45,857,324) 58,657,642
FOREIGN GOVERNMENT OBLIGATIONS - 0.3%
A$700,000 Queensland Treasury-Global Note 12% due 08/15/01 616,851
(Australia)
A$700,000 Queensland Treasury-Global Note 8% due 08/14/01 519,696
(Australia)
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost 1,136,547
$1,132,486)
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT
NOTES - 2.0%
4,500,000 FNMA Discount Notes due 10/19/95 4,487,490
2,500,000 FNMA Discount Notes due 10/25/95 2,490,717
TOTAL FNMA DISCOUNT NOTES (Amortized Cost 6,978,207
$6,978,207)
U.S. GOVERNMENT OBLIGATIONS - 6.6%
900,000 U.S. Treasury Bills due 10/05/95 899,466
2,100,000 U.S. Treasury Bills due 10/12/95 2,096,625
5,600,000 U.S. Treasury Bills due 10/19/95 5,585,300
5,450,000 U.S. Treasury Bills due 10/26/95 5,430,736
5,000,000 U.S. Treasury Bills due 11/09/95 4,971,454
4,750,000 U.S. Treasury Bills due 11/16/95 4,718,014
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost
$23,701,595) 23,701,595
TOTAL INVESTMENTS (Cost $281,552,696+) - 351,272,170
99.1%
OTHER ASSETS, LESS LIABILITIES - 0.9% 3,123,637
NET ASSETS - 100% $354,395,807
</TABLE>
*Non-Income Producing Security.
**Pursuant to Rule 144A, resale is
restricted to qualified institutional buyers.
#Liquid Yield Option Note
A$ Australian Dollars
Also represents cost for tax purposes.
THE BERGER FUNDS
Berger 101 Fund
Report of Independent Accountants
To the Board of Directors and Shareholders of
Berger 101 Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Berger 101 Fund, Inc. (the
"Fund") at September 30, 1995, the results of its operations, the changes in its
net assets and the financial highlights for the year then ended, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our
audit of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at September 30, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provides a reasonable basis for
the opinion expressed above. The financial statements of the Fund for the year
ended September 30, 1994 were audited by other independent accountants whose
report dated October 28, 1994 expressed an unqualified opinion on those
financial statements.
Price Waterhouse LLP
Denver, Colorado
October 27, 1995
THE BERGER FUNDS
Berger Small Company Growth Fund
(DESCRIPTION OF SMALL COMPANY GROWTH FUND CHARTS)
The following table reflects data presented in two line charts at this point in
the Annual Report to Shareholders. The first chart compares the value of shares
invested in the Berger Small Company Growth Fund to the Russell 2000 Index. The
second chart compares the Berger Small Company Growth Fund to the Cost of Living
Index. Both charts present quarterly data based on an initial investment of
$10,000 on December 30, 1993 (inception date of Fund) with all dividends and
capital gains reinvested. Also included is a smaller chart reflecting the
Berger Small Company Growth Fund's Total Return from inception, December 30,
1993, to September 30, 1995 --23.4% and the Average Annual Total Return as of
September 30, 1995 for 1 year--31.9%.
<TABLE>
<CAPTION>
Total Value
Berger Small
Company Russell 2000 Cost of
Date Growth Fund Index Living Index
<S> <C> <C> <C>
12/30/93 $10,000 $10,000 $10,000
03/31/94 10,120 9,734 10,096
06/30/94 9,440 9,353 10,151
09/30/94 10,960 10,003 10,247
12/31/94 11,373 9,818 10,267
03/31/95 11,734 10,271 10,384
06/30/95 12,414 11,234 10,460
09/30/95 14,457 12,343 10,487
</TABLE>
Past performance is not predictive of future performance.
THE BERGER FUNDS
Berger Small Company Growth Fund
Portfolio Manager's Letter
Dear Shareholder,
Berger Associates, Inc., has managed the Berger Small Company Growth fund
since its inception on December 30, 1993. During this period, the value of a
hypothetical $10,000 investment would have grown to $14,457 at September 30,
1995, which represents a 23.4% average annual total return. For the one year
period ending September 30, 1995, the average annual total return was 31.9%.*
The twelve months which preceded the end of the fiscal year of your Fund have
been quite extraordinary for growth stock investors. Following 1994, which was
lack-luster for most investors, 1995 has proven to be most rewarding. However,
a look beneath the surface of the market indices reveals a somewhat one-sided
picture with technology stocks, both large and small, having dominated the
performance of most major indices. While we firmly believe in the importance of
technology--as it pertains to growth stock investing and for the future of this
country--we also believe that the market became unrealistic with respect to it's
expectations for the ability of this sector of the market to grow, particularly
in the semiconductor sector of the market. While the fundamental underpinnings
of technology broadly were (and still remain) above average compared to other
sectors of the market, they are not infallible. As I write this letter, we
believe that the market, led by technology stocks, may be positioned for a
correction. There are a variety of factors which are causing this concern.
First, with the exception of a few scattered days of short selling, the market
has not seen much of a correction or pullback thus far this year. Such
corrections are normal and common; indeed, it is uncommon for a market to make
the kind of sustained advance that we have seen through September of this year
without seeing some retrenchment. Hence, we are not especially worried about
the market. The term "correction" is not just a euphemism to disguise an
unpleasant situation. The market is in constant flux, as investors continually
assess the ever changing landscape. The market is the mechanism through which
the expectations of the future fortunes of corporations around the world are
gauged. Sometimes, these adjustments overshoot on both the upside and the
downside, and it is rallies and pullbacks, or "corrections", which serve to more
closely align expectations and reality. Expectations are simply another word
for perceptions, and perceptions can and do get clouded by emotions. It is the
emotional overlay which causes the market to make tops and bottoms.
We believe that, despite the strong earnings growth likely to be achieved by
many companies in the technology arena, we have probably seen an emotional top
in the sector overall. We believe that the stock performance we are currently
seeing--periods of sharp and panic driven selling, followed by rallies back up--
could persist for a while, but will likely clear the air and create a bottom in
the sector, providing investors with the opportunity to become owners of
excellent companies at prices not seen in several years. We would expect,
however, to see greater differentiation and more of a focus on quality in the
sector. We would hope to take advantage of any pull-back in the market to
upgrade the quality of our holdings, something we try to do continually.
Elsewhere in the small cap arena, it is difficult to find any other sector
with the broad and comprehensive strong fundamentals as exist in technology.
However, we are still able to find numerous attractive investment opportunities
in a variety of sectors elsewhere in the market. Healthcare, consumer growth,
business services, telecommunications and financial services as well as the
industrial sector of the economy all offer numerous strong companies with
attractive products or services which we expect will cause these companies to
show correspondingly strong earnings growth.
The ability to grow earnings is, we believe, the single most important
variable in determining the future stock price for companies. While we do not
attempt to predict the economic environment, we of course pay close attention to
it. It is our current expectation that while the rate of economic growth has
probably peaked for this cycle, positive growth could well continue for quite
some time. A moderate course of action by the Federal Reserve has so far proven
to be successful in guiding the economic progress of the country to lower, more
sustainable levels of growth. With the positive, but moderate tone in the
economy, it will be more difficult for companies to show strong earnings growth,
particularly those companies which are dependent on a strong economy for their
growth, i.e., cyclicals. The expected benign interest rate environment should
allow those companies which are able to grow their earnings to achieve price
appreciation in their stock prices in line with the rate of earnings growth. In
addition, the increased difficulty of showing earnings growth may cause the
winners to be doubly rewarded by the market as premiums expand for true growth
companies. If this is the case, that should bode well for the stocks of
companies held in your Fund.
Your Fund has been generally a good performer during the fiscal year. We
outlined the Fund's performance from October 1, 1994 to March 31, 1995 in the
semi-annual report to shareholders. The highlights (and lowlights) from that
report were: a) technology stocks played a major role in the positive
performance of the Fund and, b) January was a difficult month with the primary
negative factor being the Fund's exposure to stocks in so-called emerging
markets, which were severely beaten down following the devaluation of the
currency in Mexico. In the period since March, 1995, several industries
identified with the technology sector, as mentioned above, continued to perform
very well and those industries combined have averaged about 30-35% of the Fund's
assets during the year. We have been scaling back on our exposure to this
sector, in some cases selling stocks prematurely, but believing that the risk
outweighed the return potential of the securities. Additionally, we have been
fortunate to own stocks in other sectors which have performed extremely well.
Some of the stocks which have delivered stellar returns in the Fund this year
include the consultant, Gartner Group; radio operators, Clear Channel
Communications and Emmis Broadcasting; a biotechnology company, BioChem Pharma;
an operator of private prisons, Corrections Corporation of America; and CyCare
Systems, Inc., which provides information systems to medical practitioners.
Some stocks we wished we hadn't owned included Fossil Corp., a maker of watches
and accessories which has fallen victim to weak consumer spending and, Rock
Bottom Restaurants, which has failed to deliver the earnings and growth expected
by investors from an otherwise attractive dining concept.
The companies whose securities are held in the Fund continue to perform well
by and large. Earnings are expected to show an improvement from 1994's results
by some 46% this year and again by 37% in 1996. This is well above the expected
growth rate of the market overall, which is expected to grow it's earnings at a
level of somewhere near 10% next year. While these stocks are also selling at a
premium to the market, we believe that this is justified given the strength of
the earnings growth and the increasing difficulty we expect companies to have in
achieving growth. We constantly attempt to stay on top of the fortunes of our
holdings and to be responsive to changes in their outlook. Our confidence level
in the management teams of these companies is high, and while our share of
missteps will be inevitable, we believe most stocks will perform well. Indeed,
if they perform in line with their expected earnings growth we would be quite
happy.
The Fund is highly diversified with over 120 individual securities being held
in a wide variety of industries. Our holdings of non-U.S. companies is
relatively small, comprising about 6% of the Fund's assets. It should be
pointed out that only one stock is in a so-called emerging market--Giordano
Holdings of Hong Kong, a well established apparel retailer with operations
throughout Asia. Virtually all of the other foreign holdings are domiciled in
developed countries and/or have a significant proportion of their operations
stemming from U.S. business activities.
In summary, the overall outlook for the companies held in your Fund remains
very positive. The economic environment, as well as we can discern it, remains
positive to benign. Our ability to find those companies which can excel in the
delivery of strong earnings growth will hopefully be realized in the continued
appreciation of the prices of their stocks. To be sure, there are risks
associated with investing in rapidly growing companies; however, in the long
haul, earnings growth will be rewarded by the market.
We are pleased to announce that Price Waterhouse LLP was appointed as
independent accountants of the Fund. We thank you again for your confidence and
hope we can exceed your expectations for our performance.
Respectfully submitted,
William Keithler
President and Portfolio Manager
*Performance figures are based on historical results and are not intended to be
indicative of future performance. The investment return and principal value of
an investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost.
THE BERGER FUNDS
Berger Small Company Growth Fund
<TABLE>
<CAPTION>
Berger Small Company Growth Fund
Schedule of Investments / September 30, 1995
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 91.7%
<S> <C> <C> <C>
Auto/Truck - Original Equipment - 0.8%
125,000 OEA Inc. $ 4,093,750
Banks - Northeast - 0.8%
375,000 Dime Bancorp Inc.* 4,406,250
Commercial Services - Misc. - 2.2%
30,000 AccuStaff Inc.* 1,102,500
89,000 American Oncology Resources Inc.* 3,827,000
200,000 Copart Inc.* 4,550,000
100,000 Mail Boxes Etc.* 1,325,000
25,000 NFO Research Inc.* 587,500
11,392,000
Commercial Services - Security/Safety - 1.6%
105,000 Corrections Corp. of America* 5,053,125
200,000 LoJack Corp.* 3,300,000
8,353,125
Commerical Services - Misc. - 0.2%
50,000 Pediatrix Medical Group Inc.* 1,025,000
Computer - Graphics - 0.8%
129,000 Pinnacle Systems Inc.* 3,966,750
Computer - Integrated Systems - 0.7%
70,000 Medic Computer Systems Inc.* 3,552,500
Computer - Local Networks - 0.4%
50,000 NETCOM On-Line Communication Services Inc.* 2,200,000
Computer - Memory Devices - 0.7%
390,000 Stac Electronics Inc.* 3,656,250
Computer - Optical Recognition - 0.9%
190,000 Telxon Corp. 4,536,250
Computer - Peripheral Equipment - 3.2%
75,000 Bolt Beranek & Newman Inc.* 2,803,125
300,000 Creative Technology Ltd.* (Singapore) 4,087,500
305,000 Data Translation Inc.*# 5,413,750
125,000 MICROS Systems Inc.* 4,468,750
16,773,125
Computer - Services - 5.7%
165,000 American Management Systems Inc.* 4,413,750
133,000 Broadway & Seymour Inc.* 3,325,000
189,500 CyCare Systems Inc.* 6,300,875
20,000 Desktop Data Inc.* 695,000
120,000 Gartner Group Inc. Cl A* 3,930,000
60,000 HBO & Co. 3,750,000
147,000 QuickResponse Services Inc.* 3,822,000
140,400 Systems & Computer Technology Corp.* 3,790,800
30,027,425
Computer - Software - 13.3%
90,000 Atria Software Inc.* 2,632,500
53,000 Baan Co. N.V.* (Netherlands) 2,385,000
300,000 Borland International Inc.* 4,387,500
50,000 Business Objects S.A. ADR* (France) 2,131,250
100,000 Cambridge Technology Partners Inc.* 5,075,000
100,000 CBT Group PLC ADR* (Ireland) 4,775,000
15,000 Edmark Corp.* 721,875
40,000 HNC Software Inc.* 1,050,000
40,000 INSO Corp.* 1,290,000
169,000 Integrated Silicon Systems Inc.* 5,070,000
90,000 Intuit Inc.* 4,230,000
80,000 Learning Co.* 4,840,000
11,200 Maxis Inc.* 492,800
270,000 MDL Information Systems Inc.* 5,028,750
95,000 Network General Corp.* 3,918,750
50,000 Premenos Technology Corp.* 1,625,000
125,000 Sierra On-Line Inc.* 4,906,250
87,000 Softdesk Inc.* 2,196,750
202,000 Spectrum HoloByte Inc.* 2,550,250
75,000 SPSS Inc.* 1,293,750
100,000 Sterling Software Inc.* 4,550,000
20,000 Synopsys Inc.* 615,000
98,000 Wonderware Corp.* 3,809,750
69,575,175
Consumer Products - Misc. - 0.3%
65,000 Ultralife Batteries Inc.* 1,592,500
Diversified Operations - 0.9%
74,000 Pittway Corp. Cl A 4,606,500
Electrical - Equipment - 1.6%
85,000 Anixter International Inc.* 3,516,875
195,000 Baldor Electric Co. 4,899,375
8,416,250
Electronic - Laser Systems/Components - 0.8%
200,000 ThermoLase Corp.* 4,075,000
Electronic - Misc. Components - 1.2%
83,000 Maxim Integrated Products Inc.* 6,142,000
Electronic - Parts Distributors - 1.3%
152,900 Kent Electronics Corp.* 6,708,488
Electronic - Semiconductor Manufacturing -
1.2%
60,000 Altron Inc.* 1,875,000
120,000 Burr-Brown Corp.* 4,470,000
6,345,000
Electronic Products - Misc. - 1.0%
60,500 Franklin Electronic Publishers Inc.* 2,382,187
150,000 Harmonic Lightwaves Inc.* 2,700,000
5,082,187
Finance - Savings & Loan - 0.6%
80,000 Brooklyn Bancorp Inc.* 3,150,000
Finance - Small Business Investment Co. &
Commercial - 1.1%
66,800 Safeguard Scientifics Inc.* 3,206,400
155,000 Sirrom Capital Corp. 2,809,375
6,015,775
Financial Services - Misc. - 1.1%
150,000 Checkfree Corp.* 3,000,000
120,000 PMT Services Inc.* 2,895,000
5,895,000
Food - Misc. Preparation - 0.9%
175,400 Mafco Consolidated Group Inc.* 4,516,550
Funeral Services & Related - 1.7%
114,100 Loewen Group Inc. (Canada) 4,706,625
115,000 Stewart Enterprises Inc. Cl A 4,168,750
8,875,375
Household - Audio/Video - 0.1%
50,000 Mackie Designs Inc.* 725,000
Leisure - Gaming - 1.1%
225,000 Station Casinos Inc.* 3,459,375
100,000 TABCORP Holdings Ltd. ADR 144A** (Australia) 2,575,000
6,034,375
Leisure - Movies & Related - 0.9%
110,000 Avid Technology Inc.* 4,730,000
Machinery - Materials Handling/Automation -
0.6%
175,000 3D Systems Corp.* 2,931,250
Media - Radio/TV - 4.5%
155,000 American Radio Systems Corp. Cl A* 3,836,250
60,000 Clear Channel Communications Inc.* 4,545,000
180,000 Emmis Broadcasting Corp. Cl A* 5,647,500
167,500 Evergreen Media Corp. Cl A* 4,773,750
133,500 Renaissance Communications Corp.* 4,672,500
23,475,000
Medical - Biomedics/Genetics - 5.2%
75,000 Agouron Pharmaceuticals Inc.* 2,156,250
200,000 BioChem Pharma Inc.* (Canada) 6,375,000
205,000 Cephalon Inc.* 5,637,500
253,000 Curative Technologies Inc.* 3,573,625
78,700 Genzyme Corp.* 4,564,600
300,000 Liposome Co. Inc.* 5,062,500
27,369,475
Medical - Generic Drugs - 1.1%
146,200 Watson Pharmaceuticals Inc.* 5,994,200
Medical - Health Maintenance Organizations -
1.2%
195,500 CompDent Corp.* 5,718,375
20,000 United Dental Care Inc.* 600,000
6,318,375
Medical - Hospitals - 1.3%
125,000 Community Health Systems Inc.* 5,046,875
100,000 Veterinary Centers of America* 1,700,000
6,746,875
Medical - Instruments - 1.8%
204,000 Sofamor/Danek Group Inc.* 5,661,000
460,000 Vidamed Inc.*# 3,622,500
9,283,500
Medical - Outpatient/Home Care - 4.2%
160,000 HEALTHSOUTH Corp.* 4,080,000
180,000 MedPartners Inc.* 5,670,000
180,000 PhyCor Inc.* 6,165,000
160,000 Physician Reliance Network Inc.* 5,920,000
21,835,000
Medical - Products - 0.6%
235,000 Ovid Technologies Inc.* 3,113,750
Medical/Dental - Supplies - 3.1%
150,000 Omnicare Inc. 5,850,000
155,000 Orthodontic Centers of America Inc.* 4,998,750
75,000 Target Therapeutics Inc.* 5,250,000
16,098,750
Metal Processing & Fabrication - 0.9%
120,000 Wolverine Tube Inc.* 4,545,000
Oil & Gas - Drilling - 0.9%
700,000 Global Marine Inc.* 4,987,500
Oil & Gas - Machinery/Equipment - 1.0%
185,000 Tidewater Inc. 5,203,125
Oil & Gas - U.S. Exploration & Production -
0.9%
385,000 Cairn Energy USA Inc.* 4,908,750
Pollution Control - Services - 0.9%
200,000 Tetra Tech Inc.* 4,650,000
Retail - Apparel/Shoe - 1.4%
3,320,000 Giordano Holdings Ltd. (Hong Kong) 3,049,023
115,000 Men's Wearhouse Inc.* 4,140,000
7,189,023
Retail - Consumer Electronics - 0.3%
125,000 Good Guys Inc.* 1,421,875
Retail - Mail Order & Direct - 0.3%
30,000 Micro Warehouse Inc.* 1,372,500
Retail - Misc./Diversified - 1.8%
200,000 Hollywood Entertainment Corp.* 4,287,500
250,000 Moovies Inc.* 4,906,250
9,193,750
Retail - Restaurants - 2.0%
125,000 Cheesecake Factory Inc.* 3,343,750
240,000 Landry's Seafood Restaurants Inc.* 4,320,000
180,000 O'Charleys Inc.* 2,700,000
10,363,750
Retail/Wholesale Computers - 0.8%
135,000 Creative Computers Inc.* 3,982,500
Shoes & Related Apparel - 0.9%
180,000 Wolverine World Wide Inc. 4,927,500
Telecommunications - Cellular - 1.0%
225,000 Palmer Wireless Inc.* 5,006,250
Telecommunications - Equipment - 4.0%
75,000 Cascade Communications Corp.* 3,693,750
215,000 Comverse Technology Inc.* 4,676,250
100,000 Glenayre Technologies Inc.* 7,200,000
157,500 PairGain Technologies Inc.* 5,433,750
21,003,750
Telecommunications - Services - 2.7%
155,000 Arch Communications Group Inc.* 4,068,750
200,000 IntelCom Group Inc.* (Canada) 2,550,000
110,000 LCI International Inc.* 4,317,500
120,000 Metrocall Inc.* 3,330,000
14,266,250
Tobacco - 0.1%
20,500 Culbro Corp.* 825,125
Transport - Air Freight - 0.1%
25,000 Atlas Air Inc.* 556,250
Transportation - Rail - 1.0%
75,000 Wisconsin Central Transportation Corp.* 5,006,250
TOTAL COMMON STOCK (Cost $342,471,473) 479,042,923
STOCK APPRECIATION INCOME LINKED SECURITIES
(SAILS) - 0.6%
Media - Books - 0.6%
45,000 Houghton Mifflin Co. - 6% Exchangeable Notes due 2,925,000
8/1/99 (SAILS)
TOTAL SAILS (Cost $3,060,000) 2,925,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT
NOTES - 4.0%
$2,100,000 FNMA Discount Notes due 10/16/95 $2,095,083
6,800,000 FNMA Discount Notes due 10/25/95 6,775,067
6,700,000 FNMA Discount Notes due 11/02/95 6,666,887
5,500,000 FNMA Discount Notes due 11/07/95 5,468,627
TOTAL FNMA DISCOUNT NOTES (Amortized Cost 21,005,664
$21,005,664)
U.S. GOVERNMENT OBLIGATIONS - 2.7%
1,400,000 U.S. Treasury Bills due 10/19/95 1,396,307
1,200,000 U.S. Treasury Bills due 11/02/95 1,194,443
6,500,000 U.S. Treasury Bills due 11/09/95 6,463,118
5,250,000 U.S. Treasury Bills due 11/16/95 5,214,647
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost
$14,268,515) 14,268,515
TOTAL INVESTMENTS (Cost $380,805,652)(Cost 517,242,102
for tax purposes $380,879,390) - 99.0%
OTHER ASSETS, LESS LIABILITIES - 1.0% 5,424,977
NET ASSETS - 100% $522,667,079
</TABLE>
*Non-Income Producing Security.
**Pursuant to Rule 144A, resale is restricted to qualified institutional buyers.
#The Investment Company Act of 1940 defines affiliates as those companies in
which a fund holds 5% or more of the outstanding voting securities. Following
is a summary of the transactions with each such affiliate for the year ended
September 30, 1995:
<TABLE>
<CAPTION>
Change in
Market Value Unrealized Market Value Realized Gain
at 9/30/94 Purchases at Sales Appreciation at 9/30/95 Dividend (Loss)
Cost at Cost (Depreciation) Income
<S> <C> <C> <C> <C> <C> <C> <C>
Data Translation $0 $2,402,500 $222,500 $3,233,750 $5,413,750 $0 $200,875
Inc.(1)
Shanghai Haixing
Shipping Co., 0 2,426,977 2,426,977 0 0 0 (326,932)
Ltd.
Ultrajaya Milk
Industry 1,655,934 0 1,674,836 18,902 0 0 (749,694)
& Trading Co.
Vidamed Inc. 0 2,990,000 0 632,500 3,622,500 0 0
</TABLE>
(1) Adjusted for 2-for-1 split 7/31/95
See notes to financial statements.
THE BERGER FUNDS
Berger Small Company Growth Fund
Report of Independent Accountants
To the Board of Trustees and Shareholders of
Berger Investment Portfolio Trust
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Berger Small Company Growth
Fund (constituting the Berger Investment Portfolio Trust, hereafter referred to
as the "Fund") at September 30, 1995, the results of its operations, the changes
in its net assets and the financial highlights for the year then ended, in
conformity with generally accepted accounting principles. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fund's management; our responsibility
is to express an opinion on these financial statements based on our audit. We
conducted our audit of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at September 30, 1995 by
correspondence with the custodian and the application of alternative auditing
procedures for unsettled security transactions, provides a reasonable basis for
the opinion expressed above. The financial statements of the Fund for the
period ended September 30, 1994 were audited by other independent accountants
whose report dated October 28, 1994 expressed an unqualified opinion on those
financial statements.
Price Waterhouse LLP
Denver, Colorado
October 27, 1995
THE BERGER FUNDS
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
September 30, 1995
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
Assets
Investment securities, at value (cost $1,623,824,131,
$281,552,696 and $380,805,652, respectively) $2,178,484,151 $351,272,170 $517,242,102
Cash 6,242,727 954,867 1,356,185
Receivables:
Investment securities sold 83,099,394 0 9,435,623
Fund shares sold 3,439,455 1,897,766 3,928,911
Dividends and interest 630,571 1,171,476 35,500
Total Assets 2,271,896,298 355,296,279 531,998,321
Liabilities
Payables:
Investment securities purchased 58,412,780 0 7,617,748
Fund shares redeemed 5,357,628 478,640 981,762
Accrued investment advisory fees 1,366,480 216,857 376,781
Accrued transfer agent fees 468,017 104,204 146,503
Accrued 12b-1 distribution & advertising 455,493 72,286 104,661
Other accrued expenses 157,397 28,485 103,787
Total Liabilities 66,217,795 900,472 9,331,242
Net Assets Applicable to Shares Outstanding $2,205,678,503 $354,395,807 $522,667,079
Shares Outstanding (Note 4) 116,736,651 27,499,870 144,616,429
Net Asset Value, Offering and Redemption
Price Per Share $18.89 $12.89 $3.61
Components of Net Assets
Capital (par value and paid in surplus) $1,593,240,926 $302,597,361 $397,238,008
Undistributed net investment income (loss) 0 27,721 0
Undistributed net realized gain (loss) from
investments and foreign currency transactions 57,776,277 (17,948,956) (11,007,379)
Unrealized appreciation (depreciation) on
investments and translation of assets and
liabilities in foreign currencies 554,661,300 69,719,681 136,436,450
Total $2,205,678,503 $354,395,807 $522,667,079
</TABLE>
See notes to financial statements.
THE BERGER FUNDS
Financial Statements
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended September 30, 1995
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
Investment Income
Income:
Dividends $ 9,708,887 $6,295,682 $952,956
Interest 15,737,984 4,393,682 3,137,223
Total Income 25,446,871 10,689,364 4,090,179
Expenses:
Investment advisory fees (Note 2) 15,753,914 2,680,832 3,211,591
12b-1 distribution & advertising 5,710,480 972,858 892,107
Transfer agent fees 5,990,467 1,360,201 1,589,552
Postage, printing & reports 2,086,115 445,496 546,632
Registration fees 373,032 157,188 231,555
Custodian fees 365,842 71,763 81,044
Directors'/Trustees' fees & expenses 269,040 45,844 44,819
Accounting fees 259,269 50,231 46,974
Administrative services (Note 2) 212,623 36,143 35,692
Legal fees 209,838 35,843 37,003
Insurance & bonds 53,348 10,649 6,755
Dues & assessments 76,308 10,773 2,693
Audit fees 25,950 16,950 10,450
Other expenses 261 128 21
Total Expenses 31,386,487 5,894,899 6,736,888
Less fees paid indirectly ( 10,085) 0 0
Less earnings credits (Note 2) (247,543) (57,096) (76,422)
Expenses - Net 31,128,859 5,837,803 6,660,466
Net Investment Income (Loss) (5,681,988) 4,851,561 (2,570,287)
Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions
Net realized gain (loss) on securities and foreign
currency transactions 116,059,976 (11,391,364) 2,250,884
Net change in unrealized appreciation on securities
and foreign currency transactions 241,776,527 50,552,398 112,795,405
Net Realized and Unrealized Gain on Investments
and Foreign Currency Transactions 357,836,503 39,161,034 115,046,289
Net Increase in Net Assets Resulting from Operations $352,154,515 $44,012,595 $112,476,002
</TABLE>
See notes to financial statements.
THE BERGER FUNDS
Financial Statements
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
For the Period
12/30/93
(commencement
of operations)
Year Ended Year Ended Year Ended Year Ended Year Ended to
9/30/95 9/30/94 9/30/95 9/30/94 9/30/95 9/30/94
<S> <C> <C> <C> <C> <C> <C>
From Operations:
Net investment income (loss) $(5,681,988) $(13,287,087) $4,851,561 $3,258,736 $(2,570,287) $277,543
Net realized gain (loss) on
securities and foreign currency
transactions 116,059,976 (41,493,414) (11,391,364) (6,291,756) 2,250,884 (13,258,264)
Net change in unrealized
appreciation (depreciation) on
securities and foreign currency
transactions 241,776,527 (6,356,751) 50,552,398 5,203,859 112,795,405 23,641,046
Net Increase (Decrease) in Net
Assets Resulting From
Operations 352,154,515 (61,137,252) 44,012,595 2,170,839 112,476,002 10,660,325
From Distributions to Shareholders:
Net investment income
dividend 0 0 (5,640,754) (2,719,839) (286,160) 0
From Fund Share Transactions (Note 4):
Proceeds from shares sold 624,009,434 1,644,476,136 97,651,240 386,003,954 432,629,803 250,282,617
Net asset value of shares issued
in reinvestment of dividends 0 0 5,340,853 2,531,231 274,408 0
Total 624,009,434 1,644,476,136 102,992,093 388,535,185 432,904,211 250,282,617
Payments for shares redeemed (999,228,626) (762,444,546) 178,538,160) (109,347,983) (234,279,153) (49,090,763)
Net Increase (Decrease) in Net
Assets Derived From Fund
Share Transactions (375,219,192) 882,031,590 (75,546,067) 279,187,202 198,625,058 201,191,854
Increase (Decrease) in Net Assets
(23,064,677) 820,894,338 (37,174,226) 278,638,202 310,814,900 211,852,179
Net Assets:
Beginning of year 2,228,743,180 1,407,848,842 391,570,033 112,931,831 211,852,179 0
End of year $2,205,678,503 $2,228,743,180 $354,395,807 $391,570,033 $522,667,079 $211,852,179
Undistributed net investment income
(loss) included in the above
$0 $0 $27,721 $816,913 $0 $277,543
</TABLE>
See notes to financial statements.
THE BERGER FUNDS
Notes to Financial Statements / September 30, 1995
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization
The One Hundred Fund, Inc. ("Berger 100") and the Berger One Hundred and One
Fund, Inc. ("Berger 101") were incorporated in March, 1966 in the state of
Maryland. The Berger Investment Portfolio Trust ("Trust") is a Delaware
business trust organized on August 23, 1993. The Trust is authorized to issue
an unlimited number of shares of beneficial interest in series or portfolios.
Currently, the series comprising Berger Small Company Growth Fund ("Berger
SCG"), which commenced operations on December 30, 1993, is the only portfolio
established under the Trust, although others may be added in the future.
The Berger 100 and Berger 101 Funds and the Trust (the "Funds") are registered
under the Investment Company Act of 1940 (the "Act"), as amended, as open-end
management investment companies. Each Fund is diversified as defined in the
Act. Shares of each Fund are fully paid and non-assessable when issued. All
shares issued by a particular Fund participate equally in dividends and other
distributions by that Fund.
Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
Investment Valuation
Securities are valued at the close of the regular trading session of the New
York Stock Exchange (the "Exchange") on each day that the Exchange is open.
Securities listed on national exchanges, the NASDAQ Stock Market and foreign
exchanges are valued at the last sale price on such markets, or, if no last sale
price is available, they are valued using the mean between their current bid and
asked prices. Securities that are traded on the over-the-counter market are
valued at the mean between their current bid and asked prices. Short-term
obligations maturing within sixty days are valued at original cost plus
amortized discount or accrued interest from the date of acquisition, which
approximates market value. Foreign securities are converted to U.S. Dollars
using exchange rates at the close of the Exchange. Securities for which
quotations are not readily available are valued at fair values determined in
good faith pursuant to consistently applied procedures established by the
directors or trustees.
Federal Income Taxes
It is the Funds' policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of their taxable income to shareholders. Therefore, no income tax provision is
required.
Security Gains and Losses
Gains and losses are computed on the identified cost basis for both financial
statement and Federal income tax purposes for all securities. Currency gain and
loss is calculated on payables and receivables that are denominated in foreign
currencies. The payables and receivables are generally related to security
transactions and income.
Investment Transactions and Investment Income
Investment transactions are accounted for on the date investments are
purchased or sold. Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Interest income is recorded on the accrual
basis and includes amortization of discounts.
2. AGREEMENTS
During the period October 1, 1994 to October 13, 1994, Berger Associates, Inc.
(Berger) rendered investment advisory services to the Berger 100 and Berger 101
Funds pursuant to agreements which provided for the monthly payment of a fee
computed at the following annual rates on average daily net assets of each Fund:
.75 of 1% of the first $50,000,000, .625 of 1% of the next $25,000,000 and .5 of
1% of the amount in excess of $75,000,000. The agreements also provided that
Berger would reimburse the Funds to the extent that each Fund's normal operating
expenses (exclusive of brokerage commissions, 12b-1 fees, interest, taxes and
extraordinary expenses) exceeded 2% of the first $10,000,000, 1.5% of the next
$20,000,000 and 1% of the balance of the Fund's average daily net assets for its
fiscal year.
Beginning October 14, 1994, new Investment Advisory Agreements between the
Berger 100 and Berger 101 Funds and Berger provide for an investment advisory
fee to be paid to Berger at the annual rate of .75 of 1% of each Fund's average
daily net assets.
Berger also renders investment advisory services to the Berger SCG Fund
pursuant to an agreement with the Trust which provides for the monthly payment
of a fee computed at the annual rate of .9 of 1% of average daily net assets of
the Fund.
In addition, Berger has agreed to reimburse each Fund to the extent that the
Fund's normal operating expenses (exclusive of brokerage commissions, 12b-1
fees, interest, taxes and extraordinary expenses) exceed the most restrictive
expense limitation imposed by any applicable state, which is currently 2.5% of
the first $30,000,000, 2% of the next $70,000,000 and 1.5% of the balance of the
Fund's average daily net assets for its fiscal year.
Each Fund has entered into an administrative services agreement with Berger.
The administrative services agreement provides for an annual fee of .01 of 1% of
the average daily net assets of the Fund, computed daily and payable monthly.
The Funds have also entered into a recordkeeping and pricing agreement with
Investors Fiduciary Trust Company ("IFTC"), a former affiliate of Berger through
a degree of common ownership, who also serves as each Fund's custodian and
transfer agent. The recordkeeping and pricing agreement provides for the
monthly payment of a base fee of $500 plus a fee computed at the following
annual rates on average daily net assets: .02 of 1% of the first $150,000,000,
.015 of 1% of the next $150,000,000 and .01 of 1% of the amount in excess of
$300,000,000. The monthly minimum asset fee under the recordkeeping and pricing
agreement is $2,000. IFTC's fees for custody, recordkeeping and pricing, and
transfer agency services are subject to reduction by credits earned by each
Fund, based on the cash balances of the Fund held by IFTC as custodian. For the
year ending September 30, 1995, the Berger 100, Berger 101 and the Berger SCG
Funds received $247,543, $57,096 and $76,422, respectively, in earnings credits
and paid IFTC fees (after earnings credits) of $4,723,047, $1,026,945 and
$1,258,685, respectively, for services rendered.
On June 19, 1990, the shareholders of the Berger 100 and Berger 101 Funds
approved amendments to each Fund's Rule 12b-1 Plan which increased the Fund's
payments under their Plans from .3% to 1% of its average daily net assets and
provided that such payments will be made to Berger as compensation rather than
as reimbursements for actual expenses incurred to promote the sale of shares of
each Fund. The shareholders also approved amendments to the Funds' Investment
Advisory Agreements which excluded payments made by the Funds pursuant to the
Rule 12b-1 Plan from the expenses subject to the expense limitations, as noted
above, contained in the Advisory Agreement. Effective February 1, 1993, the
Funds' investment adviser voluntarily agreed to waive payment of any amounts
which exceeded .75 of 1% of the Fund's average daily net assets. Effective
October 14, 1994, shareholders of the Berger 100 and Berger 101 Funds approved
an amendment to the Funds' 12b-1 Plans which reduced the distribution fees
payable to Berger to .25 of 1% per annum of each Fund's average daily net
assets.
The Trust has adopted a plan with respect to the Berger SCG Fund pursuant to
Rule 12b-1 under the Investment Company Act of 1940 (the "Plan"). The Plan
provides for the payment to Berger of a 12b-1 fee of .25 of 1% per annum of the
Fund's average daily net assets to finance activities primarily intended to
result in the sale of Fund shares. The Plan provides that such payments will be
made to Berger as compensation rather than as reimbursements for actual expenses
incurred to promote the sale of shares of the Fund. Payments made by the Fund
pursuant to its Rule 12b-1 Plan are excluded from the expenses subject to the
expense limitations, as noted above, contained in the agreement with Berger.
Certain officers and directors of Berger are also officers and
directors/trustees of the Berger Funds. Directors/trustees who are not
affiliated with Berger received directors'/trustees' fees from the Berger 100
Fund, the Berger 101 Fund and the Berger SCG Fund of $258,837, $44,111 and
$43,052, respectively, for the year ended September 30, 1995.
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities during the year ended September
30, 1995 were as follows:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
Purchases of investment securities (excluding short-
term securities) $2,088,634,298 $ 271,745,639 $ 518,420,439
Sales of investment securities (excluding short-term
securities) $2,445,191,033 $ 338,301,916 $ 328,074,798
</TABLE>
There were no purchases or sales of long-term U.S. Government securities
during the year.
At September 30, 1995, the composition of unrealized appreciation (the
excess of value over tax cost) and unrealized depreciation
(the excess of tax cost over value) for securities was as follows:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
Appreciation $570,610,488 $69,997,274 $139,785,595
Depreciation (15,950,468) (277,800) (3,349,145)
Net $554,660,020 $69,719,474 $136,436,450
</TABLE>
During the year ended September 30, 1995, there were no options or futures
transactions.
B. Federal Income Tax Status
Dividends paid by the Funds from net investment income and distributions of
net realized short-term capital gains are, for Federal income tax purposes,
taxable as ordinary income to shareholders. The Berger 101 Fund incurred and
elected to defer post-October 31 net capital losses of $11,172,532 to the
year ended September 30, 1996. Of the ordinary income distributions declared
for the year ended September 30, 1995, 100% and 97% qualified for the dividends
received deduction available to the corporate shareholders of the Berger 101
Fund and Berger SCG Fund, respectively.
The Funds distribute net realized capital gains, if any, to their
shareholders at least annually, if not offset by capital loss carryovers.
Income distributions and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to the differing
treatments for net operating losses and expiring capital loss carryforwards.
Accordingly, these permanent differences in the character of income and
distributions between financial statements and tax basis have been
reclassified to paid-in-capital. During the year ended September 30, 1995 the
following reclassifications were made:
<TABLE>
<CAPTION>
Berger
Berger Small Company
100 Fund Growth Fund
<S> <C> <C>
Paid in Capital $5,681,991 $2,578,905
Undistributed Net Investment Income (5,681,991) (2,578,905)
</TABLE>
At September 30, 1995, the Funds had capital loss carryovers which may be used
to offset future realized capital gains for Federal
income tax purposes. The carryovers expire as follows:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
September 30, 2000 $0 $ 221,627 $ 0
September 30, 2001 0 304,076 0
September 30, 2002 0 6,031,755 10,933,642
September 30, 2003 0 218,846 0
$0 $6,776,304 $10,933,642
</TABLE>
Net capital loss carryovers used in 1995 by the Berger 100 and Berger SCG
Funds amounted to $57,892,647 and $2,250,884, respectively.
4. FUND SHARE TRANSACTIONS
At September 30, 1995, the following table reflects shares of $.01 par value
capital stock authorized and paid in capital:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
<S> <C> <C> <C>
Capital stock authorized 200,000,000 100,000,000 Unlimited
Paid in capital $1,593,240,926 $302,597,361 $397,238,008
</TABLE>
Transactions in fund shares were as follows:
<TABLE>
<CAPTION>
Berger
Berger Berger Small Company
100 Fund 101 Fund Growth Fund
For the Period
12/30/93
(commencement of
Year Ended Year Ended Year Ended Year Ended Year Ended operations) to
9/30/95 9/30/94 9/30/95 9/30/94 9/30/95 9/30/94
<S> <C> <C> <C> <C> <C> <C>
Shares sold 38,570,934 102,084,323 8,672,877 33,477,318 146,265,319 96,760,806
Shares issued to shareholders in
reinvestment of dividends
0 0 460,751 226,306 96,623 0
Total 38,570,934 102,084,323 9,133,628 33,703,624 146,361,942 96,760,806
Shares repurchased (61,464,723) (47,570,217)(15,751,250) (9,605,417) (79,120,932) (19,385,387)
Net increase (decrease) in shares
(22,893,789) 54,514,106 (6,617,622) 24,098,207 67,241,010 77,375,419
Shares outstanding, beginning of year
139,630,440 85,116,334 34,117,492 10,019,285 77,375,419 0
Shares outstanding, end of year
116,736,651 139,630,440 27,499,870 34,117,492 144,616,429 77,375,419
</TABLE>
THE BERGER FUNDS
Financial Highlights / September 30, 1995
<TABLE>
<CAPTION>
Berger 100 Fund
For a Share Outstanding Throughout the
Year Ended
September 30,
1995* 1994* 1993* 1992* 1991*
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.96 $16.54 $11.73 $11.13 $ 6.67
Income From Investment Operations:
Net Investment Income or (Loss) (.04) (.12) (.14) (.09) (.10)
Net Realized and Unrealized Gains or
(Losses) on Securities 2.97 (.46) 4.95 .86 5.15
Total From Investment Operations 2.93 (.58) 4.81 .77 5.05
Less Distributions:
Dividends (from net investment income) .00 .00 .00 .00 .00
Distributions (from capital gains) .00 .00 .00 (.17) (.59)
Total Distributions .00 .00 .00 (.17) (.59)
Net Asset Value, End of Year $18.89 $15.96 $16.54 $11.73 $11.13
Total Return 18.36%# (3.51)%# 41.01%# 6.97% 83.02%
Ratios/Supplemental Data:
Net Assets, End of Year (in thousands) 2,205,679 2,228,743 1,407,849 384,089 76,847
Ratio of Expenses to Average Net Assets 1.48%#** 1.70%# 1.69%# 1.89% 2.24%
Ratio of Net Income or (Loss) to
Average Net Assets (.28)%#** (.74)%# (1.00)%# (.75)% (1.06)%
Portfolio Turnover Rate 114% 64% 74% 51% 78%
</TABLE>
* Per share calculations for the year were based on average shares outstanding.
**Ratio reflects total expenses, including fees paid indirectly with brokerage
commissions and fees offset by earnings credits.
# Ratios are net of a voluntary waiver made under the Fund's former 12b-1 Plan,
which reduced 12b-1 payments from 1.0% to .75% during the period February 1,
1993 to October 13, 1994. Effective October 14, 1994, a new 12b-1 Plan was
adopted with shareholder approval that reduced payments under the Plan to .25%
per year. Had the voluntary waiver not been made, the Ratio of Expenses to
Average Net Assets would have been 1.49% in 1995, 1.95% in 1994 and 1.88% in
1993. Absent the waiver, the Ratio of Net Income or (Loss) to Average Net
Assets would have been (.29)% in 1995, (.99)% in 1994 and (1.19)% in 1993. The
Total Return would have remained 18.36% in 1995, and would have been (3.63)% in
1994 and 40.84% in 1993.
See notes to financial statements.
<TABLE>
<CAPTION>
Berger 101 Fund
For a Share Outstanding Throughout the
Year Ended
September 30,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $11.48 $11.27 $ 8.96 $ 9.20 $ 5.88
Income From Investment Operations:
Net Investment Income or (Loss) .16 .12 .08 .13 .18
Net Realized and Unrealized Gains or
(Losses) on Securities 1.43 .21 2.29 .54 3.25
Total From Investment Operations 1.59 .33 2.37 .67 3.43
Less Distributions:
Dividends (from net investment (.18) (.12) (.06) (.17) (.11)
income)
Distributions (from capital gains) .00 .00 .00 (.74) .00
Total Distributions (.18) (.12) (.06) (.91) (.11)
Net Asset Value, End of Year $12.89 $11.48 $11.27 $ 8.96 $ 9.20
Total Return 14.05%# 2.91%# 26.48%# 7.96% 58.76%
Ratios/Supplemental Data:
Net Assets, End of Year (in thousands) 354,396 391,570 112,932 32,942 4,081
Ratio of Expenses to Average Net Assets 1.63%#** 1.81%# 2.10%# 2.56% 2.66%
Ratio of Net Income or (Loss) to
Average Net Assets 1.33%#** 1.19%# 1.05%# 1.05% 1.99%
Portfolio Turnover Rate 85% 23% 62% 42% 143%
</TABLE>
**Ratio reflects total expenses, including fees paid indirectly with brokerage
commissions and fees offset by earnings credits.
# Ratios are net of a voluntary waiver made under the Fund's former 12b-1 Plan,
which reduced 12b-1 payments from 1.0% to .75% during the period February 1,
1993 to October 13, 1994. Effective October 14, 1994, a new 12b-1 Plan was
adopted with shareholder approval that reduced payments under the Plan to .25%
per year. Had the voluntary waiver not been made, the Ratio of Expenses to
Average Net Assets would have been 1.64% in 1995, 2.06% in 1994 and 2.29% in
1993. Absent the waiver, the Ratio of Net Income or (Loss) to Average Net
Assets would have been 1.32% in 1995, .94% in 1994 and .86% in 1993. The Total
Return would have remained 14.05% in 1995, and would have been 2.73% in 1994 and
26.34% in 1993.
See notes to financial statements.
<TABLE>
<CAPTION>
Berger Small Company Growth Fund
For a Share Outstanding Throughout the
Period Ended
September 30,
1995 1994*
<S> <C> <C>
Net Asset Value, Beginning of Period $ 2.74 $ 2.50
Income From Investment Operations:
Net Investment Income or (Loss) (.02) .00
Net Realized and Unrealized Gains or .89 .24
(Losses) on Securities
Total From Investment Operations .87 .24
Less Distributions:
Dividends (from net investment .00 .00
income)
Distributions (from capital gains) .00 .00
Total Distributions .00 .00
Net Asset Value, End of Period $3.61 $ 2.74
Total Return 31.90% 9.60%
Ratios/Supplemental Data:
Net Assets, End of Period (in 522,667 211,852
thousands)
Ratio of Expenses to Average Net Assets 1.89% 2.05%**
Ratio of Net Income or (Loss) to (.74)% 0.32%**
Average Net Assets
Portfolio Turnover Rate 109% 108%
</TABLE>
*For the period 12/30/93 (commencement of operations) to 9/30/94.
**Annualized
See notes to financial statements.
Directors of Berger 100 Fund and Berger 100 Fund
and Trustees of Berger Investment Portfolio Trust
Michael Owen, Chairman * Dennis E. Baldwin
William M.B. Berger * Louis R. Bindner, P.E. * Katherine A. Cattanach
Lucy Black Creighton * Paul R. Knapp
Harry T. Lewis, Jr. * Rodney L. Linafelter * William Sinclaire
OFFICERS:
Rodney L. Linafelter
President of Berger 100 Fund and Berger 101 Fund
President of Berger Investment Portfolio Trust
William R. Keithler
President of Berger Small
Company Growth Fund
Kevin R. Fay
Vice President, Secretary and Treasurer of
the Berger Funds
Patricia M. Blaha
Assistant Secretary of the Berger Funds
Susan G. Kohlman
Assistant Treasurer of the Berger Funds
Investment Adviser
Berger Associates, Inc.
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS (logo)
Together we can move mountains.
1995 Berger Associates, Inc.
