SEMI-ANNUAL REPORT
March 31, 1996
THE BERGER FUNDS
BERGER ONE HUNDRED FUND
BERGER GROWTH & INCOME FUND
BERGER SMALL COMPANY GROWTH FUND
BERGER NEW GENERATION FUND
Dear Berger Funds Investor,
The Berger Funds are presenting a combined semi-annual report which
includes the Berger One Hundred Fund, Berger Growth & Income Fund,
Berger Small Company Growth Fund and Berger New Generation Fund. The
report reflects the financial position of each Fund at March 31, 1996
and the results of their operations and changes in their net assets for
the six months then ended in a single document.
Table of Contents
<TABLE>
<CAPTION>
<S>
A Message From the Founder <C>
Bill Berger, Shareholder & Director 3
An Economic and Market Perspective
A look at the past six months and
what lies ahead for investors 4
Berger One Hundred Fund
Portfolio Manager's Letter 5
Schedule of Investments 8
Berger Growth & Income Fund
Portfolio Manager's Letter 12
Schedule of Investments 15
Berger Small Company Growth Fund
Portfolio Manager's Letter 18
Schedule of Investments 21
Berger New Generation Fund
Portfolio Manager's Letter 26
Financial Statements 28
Notes to Financial Statements 32
Financial Highlights 35
</TABLE>
A MESSAGE FROM THE FOUNDER
Dear Fellow Shareholder:
The stock market has turned in a strong performance over the past six
months, but, particularly since the first of the year, there have been
huge price swings up and down. Successfully navigating through the
choppy, though rising waters of this market requires investors to have
patience, confidence, and courage.
Patience
History has proven that patient investors, the ones who take a long-
term view, are the most successful investors. There have been 170
rolling 25-year periods between 1800 and 1995. Stock prices have
increased in every 25-year period, even those that include the decade
of the Great Depression. This record doesn't guarantee that the next
25-year period won't be the first to have a decline. But I have enough
faith in the American economy, which has weathered some very difficult
times since 1800, to believe that the upward trend will continue.
Confidence
Confidence, the second characteristic investors need today, comes
from more than just a positive attitude. It comes from having a plan
and sticking to it. Investors are usually more confident when they
have more control over their investments, particularly over the level
of risk they are taking with their money. There are many ways to
control risk. First of all, be an informed investor. Make sure the
investments you pick match your risk tolerance and time frame. The
materials sent to you by the companies and funds in which you invest
will enable you to monitor performance and assess that they are doing
what you expected them to do.
Diversification also controls risk. A portfolio made up of only one
stock or one type of security, such as blue chip stocks, is as risky as
a basket containing all the eggs. Confident investors hold a variety
of stocks from different industries or funds that invest in different
industries and categories of stock such as large and small
capitalization. Don't overlook investment opportunities beyond U.S.
borders. The strengths of the free enterprise system are radiating
throughout the world, creating successful, profitable countries and
companies.
Time is an investor's greatest ally against risk. A study by
Ibbotson Associates reveals that the shorter the time period, the
greater the investment risk. Between 1926 and 1995, a one-year
investment in the Standard & Poor's 500 would have increased 71% of the
time and decreased 29%. Over five years, it would have increased 89%
and decreased 11%. A 15-year investment, however, would have increased
100% of the time.
Courage
Finally, it takes some courage to be an investor. A market that goes
up, also goes down. It takes courage to stay the course, particularly
after a period of such strong stock market performance as we have seen
since January 1995. For the near future, however, I remain bullish.
The market is driven by money, profits, and people. Today's maturing
Baby Boomers have the numbers and the money to change markets, and the
desire to own successful companies. Money is pouring into 401(k) plans
and Americans can easily own another one to two trillion dollars worth
of equity mutual funds before we are fully invested. My gut feeling
also tells me that U.S. corporations have embarked on a new era of
profitability. This all adds up to a period very similar to that in
the 1950s and 1960s when common stocks were exceptionally rewarding
investments.
On the other hand, it is possible to have 10-15 years of stagnation
in individual stocks and in the stock market averages. But, in my
opinion, conditions won't be ripe for that for another decade.
I have been in the investment business for more than 45 years. Over
that time I have seen few, if any, investors successfully "time" the
market. Attempting to do so in today's market would probably prove to
be just as elusive a goal. Statistically, the odds greatly favor
common stocks and those who invest in them. My advice is to be
patient, be confident, and have courage.
Sincerely,
Bill Berger
Shareholder & Director
AN ECONOMIC AND MARKET PERSPECTIVE
The past six-month period was a time of significant change in the
complexion of this phase of the Great Bull Market. Major market
averages such as the Dow Jones Industrial Average and the Standard &
Poor's 500 continued to show tremendous strength despite serious
uncertainties in some market fundamentals. The conditions that fueled
the spectacular rise of investment markets in 1995 gave way to a brief
period of economic uncertainty triggered by rising interest rates and
commodity prices and by relatively uninspiring growth in corporate
profits.
Market leadership rotated among industry groups
The past six months in the stock market saw an increase in volatility
and a lack of consistent leadership. Market leadership once resided
solidly in the technology and financial sectors of our economy. That
was no longer true in this period. Leadership rotated violently as one
industry group after another briefly led the market, and then fell in
favor of another group. At various times over the past six months, the
market leaders were gold, airlines, retailers, energy, heavy cyclicals,
and healthcare.
We believe that this type of rotational market is due to a low level
of conviction on the part of investors as to the strength and direction
of the market. While this has been the case for some time, the lack of
a strong leadership group like technology has made the rotational
behavior of the market more noticeable. In addition to conflicting
signs of economic activity, significant nonrecurring (we hope) events,
such as Government shutdowns and severe winter storms, affected and
distorted economic indicators during the first calendar quarter of
1996.
A stronger economy with possibly higher rates ahead
The current consensus economic forecast, which we believe is driving
market activity, calls for a strengthening of the economy with modest
upward pressure on interest rates. Additionally, there have been signs
that inflation may be increasing at a faster rate than has been the
case for several years. Such an environment would present a number of
challenges to stock performance going forward. On the positive side, a
stronger economy would tend to reduce the risk of earnings
disappointments. However, rising interest rates would be negative for
stock valuations, and would create more competition for investor
assets. On average, the higher interest rates go, the less investors
want to pay for stocks (the price/earnings ratio of the market would
likely be reset at lower levels). Higher inflation would also put
further upward pressure on interest rates and would change the mix of
companies that would benefit from the type of economy we would be
experiencing. Those companies that could pass on their higher costs in
the form of higher prices would be rewarded in the market. Those that
could not would probably see their earnings come under pressure and
their stocks sell off.
At the present time we do not believe there is a sharp rise in
inflation. We believe that the bond market has essentially taken into
account potentially higher interest rates. While the stock market may
have some further modest downside, we do not believe that it will be
significant at current levels. If this appraisal is accurate, the
stocks of those companies that deliver strong earnings growth relative
to the market are likely to be the best performing investments.
An environment favorable to growth stock investing
While we believe the potential for a near-term correction in the
market is higher than at any other time in this cycle, we also strongly
believe that the intermediate and long-term fundamentals justify an
optimistic approach to portfolio investing. We are optimistic because
we believe that any market correction will be nothing more than "the
pause that refreshes," possibly a trading range rotation that gives us
a little time to gain clearer insight into the direction of the economy
and interest rates.
We are also optimistic because, looking to the future, we believe
many of today's economic uncertainties will resolve themselves in a
manner favorable to growth stock investors. We anticipate that
economic growth will settle in the 2-3% range and that commodity prices
will stabilize, thus allowing interest rates to trend back downward.
Earnings per share growth rates, while not likely to reach the
spectacular levels of 1995, should return to more normal levels,
providing the momentum for a resumption in the upward trend in equity
prices. We continue to be extremely pleased with the number of
individual companies available for investment that show the potential
for earnings per share growth at rates well above those of market
averages.
PORTFOLIO MANAGER'S LETTER
Berger One Hundred Fund
Dear Shareholder:
The Berger 100 Fund's total return during the six months ended March
31, 1996 was 7.2%. For the preceding one year period, the Fund's
average annual total return was 27.0%. The average annual total return
for five years was 17.9% and for 10 years was 17.6%. The average
annual total return since the Fund's inception on September 30, 1974
was 15.3%.*
Timely sector decisions boost performance
Technology
As reported to you in our last shareholder letter, we entered the
1996 fiscal year with a dramatic reduction in our exposure to the
technology sector. This proved to be a very timely move because
technology stocks were hard hit both in the fourth quarter of 1995 and
the first quarter of 1996. We believe, however, that this sector still
holds significant long-term potential. Therefore, we have selectively
added new technology positions at what we believe to be very attractive
valuation levels relative to both current and forecasted future growth
rates.
Energy Services
We also reported in our last letter that the largest area of new
portfolio exposure came from the energy services sector. This
decision, too, proved to be timely. Energy services turned in the
strongest performance of any sector for the past six-month period.
Strong gains were registered by Sonat Offshore Drilling, BJ Services,
Tidewater, Schlumberger Ltd., Reading & Bates, Halliburton,
Input/Output, and Western Atlas. Since industry fundamentals continue
to be very strong, we are maintaining the Fund's exposure level in this
sector.
Healthcare
The healthcare sector also turned in strong performance. BioChem
Pharma, Health Management Associates, Guidant Corp., and HEALTHSOUTH
Corp. registered strong gains during this reporting period. We have
reduced exposure to the drug industry because a rising dollar will
likely put pressure on profit growth in this industry going forward,
and valuations, in our opinion, largely reflect near-term earnings
potential for drug companies.
Consumer
We have selectively increased our consumer sector holdings, adding
positions in such quality retailers as Gap Inc., Tommy Hilfiger,
AutoZone, and Home Depot and maintaining significant positions in what
we believe are prominent growth opportunities such as Federated
Department Stores and Luxottica Group SPA ADR. While the consumer
sector performed quite well the past six months, we will continue to be
very selective and focus on those companies that have made the
adjustments necessary to effectively compete in a still-difficult
retail environment.
Long-term optimism and near-term caution
While we remain very optimistic about the intermediate and longer-
term outlook for growth stocks, our near-term caution has led us to
take some precautionary measures. For defensive purposes, we sold S&P
futures contracts in order to reduce some of the downside portfolio
risk and volatility in the event of a market correction. Use of these
instruments has allowed us to focus on what we do best, which is
assembling and holding a diversified portfolio of high-quality growth
companies at attractive valuations, while reducing the risk associated
with the timing of individual security purchases and sales. We do not
regard the use of S&P futures contracts as a major component in our
long-term strategy for success. But, we do value the opportunity to
utilize them when near-term uncertainties lead us to the conclusion
that short-term risk/reward relationships are less than favorable.
A well-diversified portfolio
Overall, your Fund's portfolio is well-diversified among nine
different industry sectors. Cash, currently at 9% of portfolio value,
is available for future opportunities. We strongly encourage you to
review the schedule of portfolio investments on the following pages
that list the individual companies owned by the Fund.
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 you have placed in the Berger 100
Fund and look forward to continuing to earn 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.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS AS
OF 3/31/96
% of % of Fund's
Fund's Investments
Investment in these holdings
on 9/30/95
<S> <C> <C>
1. WorldCom Inc. 2.3% 1.6%
2. Sonat Offshore Drilling Inc. 1.9% 1.5%
3. Schlumberger Ltd. 1.8% 1.5%
4. Luxottica Group SPA ADR 1.8% 1.4%
5. Tidewater Inc. 1.8% 0.9%
6. HBO & Co. 1.7% 1.1%
7. Conseco Inc. 1.7% 0.0%
8. Microsoft Corp. 1.7% 0.0%
9. Mirage Resorts Inc. 1.6% 1.5%
10.Health Management Associates Inc. Cl A 1.6% 0.0%
</TABLE>
(DESCRIPTION OF BERGER 100 FUND PERFORMANCE CHART)
The following table reflects data presented in a line chart at this
point in the Semi-Annual Report to Shareholders. The chart compares
the value of shares invested in the Berger 100 Fund to the S&P 500
Index and to the Cost of Living Index. The chart is based on an
initial investment of $10,000 on March 31, 1986 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 March 31, 1996
for 1 year--27.0%, 5 years--17.9% and 10 years--17.6%.
<TABLE>
<CAPTION>
Total
Value Cost of
Berger S&P 500 Living
Date 100 Fund Index Index
<S> <C> <C> <C>
3/31/86 $10,000 $10,000 $10,000
3/31/87 12,914 12,619 10,303
3/31/88 11,911 11,562 10,708
3/31/89 13,327 13,646 11,241
3/31/90 17,346 16,263 11,829
3/31/91 22,145 18,599 12,408
3/31/92 30,958 20,644 12,803
3/31/93 34,675 23,780 13,199
3/31/94 40,088 24,132 13,529
3/31/95 39,764 27,882 13,915
3/31/96 50,509 36,804 14,237
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
SIX MONTH COMPARISON OF TOP FIVE MARKET SECTORS
September 30, 1995 March 31, 1996
<S> <C> <C> <C> <C>
27% Technology 1 Technology 29%
22% Consumer Cyclicals 2 Consumer Cyclicals 20%
22% Consumer Staples 3 Energy 16%
10% Energy 4 Healthcare 14%
5% Capital Goods 5 Consumer Staples 3%
</TABLE>
Berger One Hundred Fund
<TABLE>
<CAPTION>
Schedule of Investments / March 31, 1996
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 90.8%
<S> <C> <C> <C>
Aerospace/Defense - 1.6%
400,000 Boeing Co. 34,650,000
Auto Manufacturers - Domestic - 1.4%
500,000 Chrysler Corp. 31,125,000
Auto/Truck - Original Equipment - 1.2%
800,000 Lear Seating Corp.* 26,100,000
Chemicals - Specialty - 1.5%
800,000 Praxair Inc. 31,900,000
Commercial Services - Misc. - 1.1%
322,500 APAC TeleServices Inc.* 22,978,125
Computer - Integrated Systems - 1.5%
700,000 Oracle Corp.* 32,987,500
Computer - Memory Devices - 1.0%
1,000,000 EMC Corp.* 21,875,000
Computer - Mini/Micro - 0.6%
500,000 Gateway 2000 Inc.* 13,937,500
Computer - Peripheral Equipment - 1.1%
500,000 Adaptec Inc.* 24,125,000
Computer - Services - 4.6%
500,000 America Online Inc.* 28,000,000
600,000 General Motors Corp. Cl E 34,200,000
400,000 HBO & Co. 37,700,000
99,900,000
Computer - Software - 2.4%
600,000 Informix Corp.* 15,825,000
350,000 Microsoft Corp.* 36,093,750
51,918,750
Cosmetics/Personal Care - 1.4%
1,200,000 General Nutrition Companies 30,000,000
Inc.*
Electrical - Control Instruments - 1.1%
500,000 Roper Industries Inc. 23,000,000
Electronic - Military Systems - 1.3%
450,000 General Motors Corp. Cl H 28,462,500
Electronic - Misc. Components - 1.5%
750,000 Solectron Corp.* 33,000,000
Electronic - Scientific Instruments - 2.5%
800,000 Input/Output Inc.* 24,800,000
500,000 Thermo Electron Corp.* 29,750,000
54,550,000
Electronic - Semiconductor Manufacturing - 2.0%
502,700 MEMC Electronic Materials Inc.* 18,285,713
800,000 Sanmina Corp.* 23,800,000
42,085,713
Finance - Mortgage & Related Services - 1.5%
1,000,000 Federal National Mortgage Assn. 31,875,000
Financial Services - Misc. - 1.6%
475,770 First Data Corp. 33,541,785
Insurance - Life - 1.7%
519,000 Conseco Inc. 37,562,625
Leisure - Gaming - 1.6%
800,000 Mirage Resorts Inc.* 35,100,000
Leisure - Photo Equipment/Related - 1.3%
400,000 Eastman Kodak Co. 28,400,000
Machinery - Farm - 1.2%
500,000 Case Corp. 25,437,500
Media - Periodicals - 1.5%
800,000 Time Warner Inc. 32,700,000
Media - Radio/TV - 2.1%
600,000 Infinity Broadcasting Corp. Cl 26,025,000
A*
1,000,000 New World Communications Group 19,625,000
Inc. Cl A*
45,650,000
Medical - Biomedics/Genetics - 3.1%
500,000 Amgen Inc.* 29,062,500
475,000 BioChem Pharma Inc.* (Canada) 19,475,000
500,000 Human Genome Sciences Inc.* 19,250,000
67,787,500
Medical - Drug/Diversified - 1.1%
500,000 Astra AB Cl A Sponsored ADR 23,250,000
(Sweden)
Medical - Ethical Drugs - 1.3%
300,000 Elan Corp. PLC ADR* (Ireland) 19,275,000
480,000 NeXstar Pharmaceuticals Inc.* 9,480,000
28,755,000
Medical - Health Maintenance Organizations - 2.8%
750,000 Healthsource Inc.* 29,062,500
500,000 United HealthCare Corp. 30,750,000
59,812,500
Medical - Hospitals - 3.0%
500,000 Columbia/HCA Healthcare Corp. 28,875,000
1,000,000 Health Management Associates 35,000,000
Inc. Cl A*
63,875,000
Medical - Instruments - 1.0%
500,000 IDEXX Laboratories Inc.* 21,000,000
Medical - Outpatient/Home Care - 1.6%
1,000,000 HEALTHSOUTH Corp.* 34,000,000
Medical - Products - 1.6%
300,000 Boston Scientific Corp.* 13,800,000
400,000 Guidant Corp. 21,650,000
35,450,000
Medical/Dental - Supplies - 1.8%
500,000 Luxottica Group SPA ADR (Italy) 39,062,500
Office - Equipment & Automation - 1.1%
550,000 Danka Business Systems PLC ADR 23,237,500
(United Kingdom)
Oil & Gas - Drilling - 2.8%
1,000,000 Reading & Bates Corp.* 19,750,000
800,000 Sonat Offshore Drilling Inc. 40,800,000
60,550,000
Oil & Gas - Field Services - 8.9%
900,000 BJ Services Co.* 30,150,000
500,000 Halliburton Co. 28,437,500
1,000,000 Petroleum Geo-Services A/S ADR* 25,187,500
(Norway)
500,000 Schlumberger Ltd. 39,562,500
1,000,000 Tidewater Inc. 38,000,000
500,000 Western Atlas Inc.* 30,000,000
191,337,500
Oil & Gas - Machinery/Equipment - 2.8%
1,000,000 Baker Hughes Inc. 29,250,000
1,000,000 Dresser Industries Inc. 30,500,000
59,750,000
Retail - Apparel/Shoe - 1.0%
400,000 Gap Inc. 22,150,000
Retail - Department Stores - 1.5%
1,000,000 Federated Department Stores 32,250,000
Inc.*
Retail - Mail Order & Direct - 1.0%
750,000 CUC International Inc.* 21,937,500
Retail - Misc./Diversified - 0.2%
100,000 Baby Superstore Inc.* 4,550,000
Retail/Wholesale - Auto Parts - 0.9%
600,000 AutoZone Inc.* 20,325,000
Retail/Wholesale - Building Products - 1.3%
600,000 Home Depot Inc. 28,725,000
Shoes & Related Apparel - 1.2%
600,000 Nine West Group Inc.* 25,950,000
Steel - Specialty Alloys - 0.9%
500,000 UCAR International Inc.* 19,437,500
Telecommunications - Equipment - 1.0%
1,000,000 ECI Telecom Ltd. (Israel) 22,375,000
Telecommunications - Services - 6.5%
1,000,000 IntelCom Group Inc.* (Canada) 17,750,000
1,000,000 Paging Network Inc.* 25,000,000
1,000,000 PanAmSat Corp.*# 30,500,000
820,000 U S WEST Media Group* 16,912,500
1,100,000 WorldCom Inc.* 50,600,000
140,762,500
Textile - Apparel Manufacturing - 1.1%
500,000 Tommy Hilfiger Corp.* 22,937,500
Transportation - Airline - 1.0%
1,000,000 America West Airlines Inc. Cl B* 21,375,000
TOTAL COMMON STOCK (Cost $1,438,999,502) 1,963,504,498
STUDENT LOAN MARKETING ASSOCIATION DISCOUNT NOTES - 3.3%
$70,000,000 SLMA Discount Notes due 04/01/96 70,000,000
TOTAL SLMA DISCOUNT NOTES(Amortized Cost $70,000,000) 70,000,000
U.S. GOVERNMENT OBLIGATIONS - 6.4%
50,000 U.S. Treasury Bills due 04/11/96 49,935
34,600,000 U.S. Treasury Bills due 04/18/96 34,521,338
26,700,000 U.S. Treasury Bills due 05/02/96 26,588,490
27,400,000 U.S. Treasury Bills due 05/09/96 27,258,281
17,600,000 U.S. Treasury Bills due 05/16/96 17,491,025
32,600,000 U.S. Treasury Bills due 05/23/96 32,366,910
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost $138,275,979) 138,275,979
TOTAL INVESTMENTS (Cost 1,647,275,481+) - 100.5% 2,171,780,477
OTHER ASSETS, LESS LIABILITIES - (0.5)% (10,343,932)
NET ASSETS - 100% $2,161,436,545
</TABLE>
INDEX FUTURES
1,800 Contracts June 1996 S&P 500 Index (Collateralized by
U.S. Treasury Bills due 04/18/96, principal amount
$23,700,000, market value $23,645,964) cumulative
depreciation $2,786,108
*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 period ended March 31, 1996:
<TABLE>
<CAPTION>
Market Purchases Sales Change in Market Dividend Realized
Value at at at Unrealized Value at Income Gain
9/30/95 Cost Cost Appreciation 3/31/96 (Loss)
(Depreciation)
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
PanAmSat Corp. $0 $23,656 $0 $6,844 $30,500 $0 $0
</TABLE>
See notes to financial statements.
PORTFOLIO MANAGER'S LETTER
Berger Growth and Income Fund
Dear Shareholder:
The Berger Growth and Income Fund's total return during the six
months ended March 31, 1996 was 5.0%. For the preceding one year
period, the Fund's average annual total return was 25.9%. The average
annual total return for five years was 15.7% and for 10 years was
11.0%. The average annual total return since the Fund's inception on
September 30, 1974 was 13.7%.*
Convertible bond performance meets expectations
As reported to you in our last shareholder letter, convertible bonds
and telephone utilities were our largest areas of portfolio commitment
at the beginning of the 1996 fiscal year. In spite of the recent rise
in interest rates, the convertible bond portion of the portfolio
performed up to expectations as the underlying equities did quite well.
Significant gains were registered in the bonds of Thermo Electron,
HEALTHSOUTH Corp., and First Financial Management Corp. (now First Data
Corp.). Although the correction in the technology sector took its toll
while we owned the convertible bonds of LSI Logic Corp., we realized a
significant profit upon their sale. We continue to be very optimistic
regarding the outlook for selected convertible bonds and currently have
15% of the portfolio committed to this asset class.
Industry sector moves based on market/economic analysis
Telephone Utilities
We have reduced our exposure to the telephone utility sector. The
passage of telecommunications reform legislation leads us to believe
that a more competitive environment lies ahead for the Regional Bell
Operating Companies.
Technology
Our technology exposure was low entering this reporting period
because we believed the perceived risk in this sector was high. While
our exposure level remains low, we are growing more positive about the
prospects for technology and will likely add to this area on additional
price weakness or clarification of the near-term fundamental picture.
Energy Services
Improving industry fundamentals were the logic behind the large new
commitment we made to the energy services sector six months ago. This
decision proved to be a timely one. Energy services companies were the
star performers in this reporting period. Strong gains were registered
by Dresser Industries, Schlumberger Ltd., Halliburton, and Baker
Hughes, Inc. Since industry fundamentals continue to be very strong, we
continue to be very comfortable with the outlook for this group. We
have committed approximately 16% of total portfolio assets to the
energy services sector.
Healthcare
Healthcare exposure has been reduced from nearly 12% of portfolio
assets to 10%. The impact of a rising dollar and valuation concerns
prompted us to take some profits within the drug sector. Strong gains
were realized in the shares of Pfizer and Merck, while Johnson &
Johnson also turned in a good performance and remains in the portfolio.
Capital Goods
Capital goods stocks contributed to the Fund's performance in the
period with nice gains in the price of shares of Boeing and Alco
Standard leading the way. Capital goods stocks account for 7% of
assets.
Financial
We reduced our total financial sector exposure to 9% of portfolio
value because rising interest rates do not typically provide a
constructive backdrop for companies in that sector. Federal National
Mortgage Association (Fannie Mae) shares, however, recorded strong
performance.
Consumer Cyclicals
The largest area of increased focus is consumer cyclicals, where the
weighting has been increased from approximately 9% to 14% of the
portfolio. Shares of high-quality consumer stocks such as Dole Food
Co., Nike Inc., and PepsiCo were added to the portfolio during this
reporting period.
We strongly encourage you to review the schedule of portfolio
investments on the following pages that list the individual companies
owned by the Fund.
S&P futures contracts reduce downside risk
While we remain very optimistic about the intermediate and longer-
term outlook for growth stocks, our near-term caution has led us to
take some precautionary measures. For defensive purposes, we sold S&P
futures contracts in order to reduce some of the downside risk to the
portfolio in the event of a market correction. Use of these
instruments has allowed us to focus on what we do best, which is to
assemble and hold a diversified portfolio of high-quality growth
companies at attractive valuations, while reducing the risk associated
with the timing of individual security purchases and sales. We do not
regard the use of S&P futures contracts as a major component in our
long-term strategy for success. But, we do value the opportunity to
utilize them when near-term uncertainties lead us to the conclusion
that short-term risk/reward relationships are less than favorable.
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 you have placed in the Berger
Growth and Income Fund and look forward to continuing to earn 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.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS AS OF 3/31/96
% of % of Fund's
Fund's Investments
Investment in these holdings
on 9/30/95
<S> <C> <C>
1. Dresser Industries Inc. 3.2% 2.0%
2. Thermo Electron Corp. 144A - 5% 3.1% 2.4%
due 01/15/01
3. Baker Hughes Inc. 3.0% 0.0%
4. First Financial Management Corp. - 3.0% 2.5%
5% due 12/15/99
5. HEALTHSOUTH Corp. - 5% due 2.9% 0.0%
04/01/01
6. Federal National Mortgage Assn. 2.8% 2.2%
7. Schlumberger Ltd. 2.8% 2.2%
8. Frontier Corp. 2.8% 2.3%
9. Chrysler Corp. 2.8% 0.0%
10. Telecom Corp. of New Zealand Ltd. 2.6% 2.2%
</TABLE>
Berger Growth & Income Fund
(DESCRIPTION OF BERGER GROWTH & INCOME FUND PERFORMANCE CHART)
The following table reflects data presented in a line chart at this
point in the Semi-Annual Report to Shareholders. The chart compares
the value of shares invested in the Berger Growth & Income Fund to the
S&P 500 Index and the Cost of Living Index. The chart is based on an
initial investment of $10,000 on March 31, 1986 with all dividends and
capital gains reinvested. Also included is a smaller chart reflecting
the Berger Growth & Income Fund's Average Annual Total Return as of
March 31, 1996 for 1 year--25.9%, 5 years--15.7% and 10 years--11.0%.
<TABLE>
<CAPTION>
Berger Total
Date Growth & Value Cost of
Income S&P 500 Living
Fund Index Index
<S> <C> <C> <C>
3/31/86 $10,000 $10,000 $10,000
3/31/87 11,837 12,619 10,303
3/31/88 10,208 11,562 10,708
3/31/89 10,717 13,646 11,241
3/31/90 12,132 16,263 11,829
3/31/91 13,624 18,599 12,408
3/31/92 18,665 20,644 12,803
3/31/93 20,449 23,780 13,199
3/31/94 22,772 24,132 13,529
3/31/95 22,473 27,882 13,915
3/31/96 28,284 36,804 14,237
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
SIX MONTH COMPARISON OF TOP FIVE MARKET SECTORS
September 30, 1995 March 31, 1996
<S> <C> <C> <C> <C>
19% Technology 1 Technology 22%
17% Utilities 2 Utilities 16%
15% Consumer Staples 3 Energy 16%
13% Consumer Cyclicals 4 Consumer Cyclicals 14%
11% Interest Sensitive 5 Interest Sensitive 12%
</TABLE>
Berger Growth & Income Fund
<TABLE>
<CAPTION>
Schedule of Investments / March 31, 1996
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 72.8%
<S> <C> <C> <C>
Aerospace/Defense - 2.6%
100,000 Boeing Co. $8,662,500
Auto Manufacturers - Domestic - 2.7%
150,000 Chrysler Corp. 9,337,500
Beverages - Soft Drinks - 2.2%
120,000 PepsiCo Inc. 7,590,000
Computer - Mainframes - 2.0%
60,000 International Business Machines Corp. 6,667,500
Computer - Services - 4.9%
120,000 Computer Sciences Corp.* 8,445,000
140,780 General Motors Corp. Cl E 8,024,460
16,469,460
Diversified Operations - 2.3%
150,000 Alco Standard Corp. 7,818,750
Electronic - Military Systems - 2.2%
120,000 General Motors Corp. Cl H 7,590,000
Finance - Equity REIT - 3.4%
175,000 Crescent Real Estate Equities Inc. 5,884,375
250,000 Security Capital Pacific Trust 5,500,000
11,384,375
Finance - Mortgage & Related Services - 5.3%
100,000 Federal Home Loan Mortgage Corp. 8,525,000
300,000 Federal National Mortgage Assn. 9,562,500
18,087,500
Food - Canned - 2.3%
200,000 Dole Food Company Inc. 7,700,000
Leisure - Photo Equipment/Related - 2.1%
100,000 Eastman Kodak Co. 7,100,000
Media - Periodicals - 1.8%
150,000 Time Warner Inc. 6,131,250
Medical - Drug/Diversified - 7.1%
150,000 Astra AB Cl A Sponsored ADR (Sweden) 6,975,000
80,000 American Home Products Corp. 8,670,000
90,000 Johnson & Johnson 8,302,500
23,947,500
Medical - Health Maintenance Organizations - 2.0%
150,000 U.S. Healthcare Inc. 6,881,250
Oil & Gas - Field Services - 5.3%
150,000 Halliburton Co. 8,531,250
120,000 Schlumberger Ltd. 9,495,000
18,026,250
Oil & Gas - Machinery/Equipment - 6.2%
350,000 Baker Hughes Inc. 10,237,500
350,000 Dresser Industries Inc. 10,675,000
20,912,500
Oil & Gas - Production/Pipeline - 2.2%
200,000 Enron Corp. 7,375,000
Shoes & Related Apparel - 2.2%
90,000 Nike Inc. Cl B 7,312,500
Telecommunications - Services - 5.2%
135,000 Sprint Corp. 5,130,000
125,000 Telecom Corp. of New Zealand Ltd. ADR (New 8,953,125
Zealand)
180,000 U S WEST Media Group* 3,712,500
17,795,625
Tobacco - 2.1%
80,000 Philip Morris Companies Inc. 7,020,000
Transportation - Airline - 0.3%
90,000 Singapore Airlines (Singapore) 933,239
Utility - Telephone - 6.4%
300,000 Frontier Corp. 9,450,000
200,000 Telefonos de Mexico S.A. Cl L ADR (Mexico) 6,575,000
180,000 U S WEST Communications Group 5,827,500
21,852,500
TOTAL COMMON STOCK (Cost $203,694,795) 246,595,199
CONVERTIBLE PREFERRED STOCK - 6.7%
Computer - Software - 1.1%
65,000 Wang Laboratories Inc. 144A 6.5% Cv Pfd 3,566,875
Series B**
Funeral Services & Related - 2.1%
85,000 SCI Finance LLC $3.125 Cv Pfd Series A 7,118,750
Insurance - Life - 2.1%
120,000 Conseco Inc. Cv Pfd Series D 6,960,000
Oil & Gas - Production/Pipeline - 1.4%
100,000 Tejas Gas Corp. 5.25% Cv Pfd 4,887,500
TOTAL CONVERTIBLE PREFERRED STOCK (Cost $21,693,615) 22,533,125
CONVERTIBLE DEBENTURES - 14.5%
Computer - Local Networks - 2.1%
5,000,000 3Com Corp. 144A - 10.25% due 11/01/01** 7,081,250
Computer - Services - 3.0%
6,000,000 First Data Corp. - 5% due 12/15/99 10,192,500
Electronic - Scientific Instruments - 3.1%
5,500,000 Thermo Electron Corp. 144A - 5% due 10,621,875
0 01/15/01**
Medical - Outpatient/Home Care - 2.9%
5,000,000 HEALTHSOUTH Corp. - 5% due 04/01/01 9,712,500
Retail - Department Stores - 2.0%
6,000,000 Federated Department Stores Inc. - 5% due 6,727,500
10/01/03
Telecommunications - Services - 1.4%
4,000,000 WorldCom Inc. - 5% due 08/15/03 4,960,000
TOTAL CONVERTIBLE DEBENTURES (Cost $39,845,495) 49,295,625
FOREIGN GOVERNMENT OBLIGATIONS - 0.3%
A$ 700,000 Queensland Treasury-Global Note 12% due 622,148
08/15/01 (Australia)
A$ 700,000 Queensland Treasury-Global Note 8% due 529,426
08/14/01 (Australia)
TOTAL FOREIGN GOVERNMENT OBLIGATIONS (Cost $1,132,486) 1,151,574
U.S. GOVERNMENT OBLIGATIONS - 3.2%
$5,100,000 U.S. Treasury Bills due 04/04/96 5,097,989
300,000 U.S. Treasury Bills due 05/02/96 298,688
2,400,000 U.S. Treasury Bills due 05/09/96 2,387,207
2,000,000 U.S. Treasury Bills due 05/16/96 1,987,275
950,000 U.S. Treasury Bills due 05/23/96 943,139
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost $10,714,298) 10,714,298
TOTAL INVESTMENTS (Cost $277,080,689+) - 97.5% 330,289,821
OTHER ASSETS, LESS LIABILITIES - 2.5% 8,573,115
NET ASSETS - 100% $338,862,936
</TABLE>
INDEX FUTURES
200 Contracts June 1996 S&P 500 Index (Collateralized by
U.S. Treasury Bills due 04/04/96,
principal amount $2,700,000, market value $2,698,920)
cumulative depreciation $309,568
*Non-Income Producing Security.
**Pursuant to Rule 144A, resale is restricted to qualified institutional
buyers.
A$ Australian Dollars
+Also represents cost for tax purposes.
See notes to financial statements.
PORTFOLIO MANAGER'S LETTER
Berger Small Company Growth Fund
Dear Shareholder:
The Berger Small Company Growth Fund's total return during the six
months ended March 31, 1996 was 11.9%. For the preceding one-year
period, the Fund's average annual total return was 37.9%. The average
annual total return since the Fund's inception on December 30, 1993 was
23.8%.*
Technology: Taking a watchful view
As veteran shareholders of this Fund are aware, we have been
underweighted in technology stocks since about the middle of 1995.
This was somewhat early, but the decision served the Fund well in the
fourth quarter of 1995 and into 1996. While technology stocks peaked
well before there was any clear evidence that there were serious
fundamental problems at technology companies (as is usually the case in
the stock market), we are now beginning to see many of these problems.
Weakness in pricing among commodity semiconductor products, hints of
weak demand for PCs and other computer systems, slower than expected
migration to Windows 95, and other disappointments have caused downward
revisions in earnings growth for many technology companies. Even
though stock prices have come down, we think it is too early to load up
on technology stocks. We are watching the situation closely, however,
because we do believe that, in the foreseeable future, technology
stocks will be among the biggest winners in the stock market.
Healthcare: Holding potential for significant growth
Heatlhcare remains the largest sector in the Fund, even though we
took some profits among our holdings in biotechnology companies and
healthcare information systems companies where we felt the risk-reward
ratio was not in our favor. Healthcare is another very dynamic sector
with constantly emerging companies that offer the potential for
significant earnings growth. Since the stock market focuses on
companies with fortunes that are tied closely to the economy,
healthcare may underperform briefly. Longer term, however, we expect
many of our best performing stocks to be healthcare companies.
Outsourcing: Riding a trend to positive performance
The growing trend towards outsourcing was one of the most significant
contributors to the market's positive performance during this reporting
period. (Outsourcing refers to the increasing practice among companies
to cut costs by purchasing products and services from outside suppliers
instead of maintaining in-house resources.) Stocks of companies that
benefit from outsourcing have risen sharply for much of the past year.
We have been fortunate to have owned a large position in many of these
companies, including AccuStaff, Inc., Cambridge Technology Partners,
and Technology Solutions, all of which have been strong performers in
the Fund.
Retailing: Adding positions selectively
Since inception, the Fund has avoided retailing stocks due to the
poor retail environment. However, during the past period we added
positions in a basket of retailing companies we believe are well-
positioned to benefit from a somewhat better retail environment.
Certain other consumer stocks, particularly broadcasters, have been
long-term holdings in the Fund. They have been good performers, aided
recently by passage of telecommunications reform legislation that paves
the way for these companies to operate more efficiently and expand
their businesses. Stocks of companies such as Emmis Broadcasting,
Clear Channel Communications, Evergreen Media, and Jacor Communications
contributed positively to the Fund's performance during the period.
An economy conducive to small company investing
We are cautiously optimistic looking forward. Although smaller
capitalization stocks have underperformed for much of the past two
years, they have acted much better relative to large capitalization
stocks since the beginning of March 1996. To the extent that the
economy strengthens, investors will probably feel more comfortable with
smaller companies and those stocks could extend their recent
performance. This shifting market performance leadership between large
and small capitalization stocks is one of the reasons we emphasize that
successful investing in small capitalization stocks requires taking a
long-term view.
Finally, I want to thank you for your willingness to trust Berger
Associates with the management of your assets. It is a charge we take
very seriously and we hope to continue to earn your trust.
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.
<TABLE>
<CAPTION>
TOP TEN HOLDINGS AS OF 3/31/96
% of % of Fund's
Fund's Investments
Investment in these
holdings
on 9/30/95
<S> <C> <C>
1. AccuStaff Inc. 1.9% 0.2%
2. Corrections Corp. of America 1.7% 1.0%
3. Orthodontic Centers of 1.5% 1.0%
America Inc.
4. Kent Electronics Corp. 1.4% 1.3%
5. Omnicare Inc. 1.3% 1.1%
6. BioChem Pharma Inc. 1.3% 1.2%
7. Total Renal Care Holdings Inc. 1.3% 0.0%
8. HBO & Co. 1.2% 0.7%
9. Marine Drilling Companies Inc. 1.2% 0.0%
10. Checkpoint Systems Inc. 1.2% 0.0%
</TABLE>
(DESCRIPTION OF SMALL COMPANY GROWTH FUND CHART)
The following table reflects data presented in a line chart at this
point in the Semi-Annual Report to Shareholders. The chart compares
the value of shares invested in the Berger Small Company Growth Fund to
the Russell 2000 Index and the Cost of Living Index. The chart
presents 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 average annual total return from inception,
December 30, 1993, to March 31, 1996 --23.8% and for 1 year--37.9%.
<TABLE>
<CAPTION>
Total
Value
Berger Small
Company Russell Cost of
Date Growth Fund 2000 Living
Index Index
<S> <C> <C> <C>
12/30/93 $10,000 $10,000 $10,000
03/31/94 10,120 9,734 10,096
03/31/95 11,734 10,271 10,384
03/31/96 16,179 13,258 10,679
</TABLE>
Past performance is not predictive of future performance.
<TABLE>
<CAPTION>
SIX MONTH COMPARISON OF TOP FIVE MARKET SECTORS
September 30, 1995 March 31, 1996
<S> <C> <C> <C> <C>
23% Healthcare 1 Healthcare 25%
21% Technology 2 Consumer Growth 14%
15% Consumer 3 Computer Technology 13%
9% Industrial 4 Business Services 13%
8% Business Services 5 Industrial 9%
</TABLE>
Berger Small Company Growth Fund
<TABLE>
<CAPTION>
Schedule of Investments / March 31, 1996
Shares, Units or Market
Principal Amount Value
COMMON STOCK - 90.2%
<S> <C> <C> <C>
Banks - Northeast - 0.8%
375,000 Dime Bancorp Inc.* $4,640,625
Commercial - Leasing Companies - 0.5%
110,000 Oxford Resources Corp. Cl A* 3,080,000
Commercial Services - Misc. - 6.0%
150,000 ABR Information Services Inc.* 6,975,000
450,000 AccuStaff Inc.* 11,362,500
227,000 Career Horizons Inc.* 6,753,250
29,000 Caribiner International Inc.* 746,750
200,000 Copart Inc.* 4,950,000
250,000 Data Broadcasting Corp.* 2,656,250
100,000 Mail Boxes Etc.* 1,462,500
37,500 On Assignment Inc.* 1,425,000
36,331,250
Commercial Services - Printing - 0.2%
54,500 Consolidated Graphics Inc.* 940,125
Commercial Services - Security/Safety - 4.1%
300,000 Checkpoint Systems Inc.* 7,462,500
185,000 Corrections Corp. of America* 10,545,000
75,000 LoJack Corp.* 712,500
155,000 Wackenhut Corrections Corp.* 6,045,000
24,765,000
Computer - Graphics - 0.2%
370,000 Chyron Corp.* 1,156,250
Computer - Integrated Systems - 1.1%
160,000 VeriFone Inc.* 6,720,000
Computer - Local Networks - 1.4%
65,000 Ascend Communications Inc.* 3,501,875
200,000 NETCOM On-Line Communication Services 4,800,000
Inc.*
8,301,875
Computer - Memory Devices - 0.1%
20,000 Network Appliance Inc.* 635,000
Computer - Peripheral Equipment - 0.4%
100,000 MICROS Systems Inc.* 2,500,000
Computer - Services - 5.6%
247,500 American Management Systems Inc.* 6,311,250
220,000 Envoy Corp.* 5,170,000
100,000 Gartner Group Inc. Cl A* 6,100,000
80,000 HBO & Co. 7,540,000
122,000 QuickResponse Services Inc.* 3,141,500
225,000 Technology Solutions Co.* 6,103,125
34,365,875
Computer - Software - 10.2%
90,000 Atria Software Inc.* 4,927,500
53,000 Baan Co. N.V.* (Netherlands) 3,054,125
30,000 Business Objects S.A. ADR* (France) 2,550,000
85,000 Cambridge Technology Partners Inc.* 4,855,625
80,000 CBT Group PLC ADR* (Ireland) 5,880,000
190,000 Comshare Inc.* 4,370,000
22,000 Cylink Corp.* 390,500
40,500 Health Systems Design Corp.* 556,875
40,000 INSO Corp.* 1,845,000
5,000 Intuit Inc.* 225,000
100,000 Macromedia Inc.* 4,275,000
270,000 MDL Information Systems Inc.* 5,686,875
80,000 Network General Corp.* 3,200,000
150,000 SPSS Inc.* 2,681,250
240,000 Stac Inc.* 2,520,000
100,000 Sterling Software Inc.* 7,050,000
117,500 Verity Inc.* 3,965,625
150,000 VIASOFT Inc.* 4,218,750
62,252,125
Diversified Operations - 0.9%
115,650 Pittway Corp. Cl A 5,724,675
Electronic - Misc. Components - 0.7%
150,000 Aavid Thermal Technologies Inc.* 1,275,000
120,000 Leitch Technology Corp.* (Canada) 3,303,964
4,578,964
Electronic - Parts Distributors - 1.4%
250,000 Kent Electronics Corp.* 8,843,750
Electronic - Semiconductor Manufacturing - 0.7%
141,000 Maxim Integrated Products Inc.* 4,371,000
Finance - SBIC & Commercial - 1.8%
90,200 Safeguard Scientifics Inc.* 5,287,975
240,000 Sirrom Capital Corp. 5,490,000
10,777,975
Financial Services - Misc. - 1.6%
250,000 PMT Services Inc.* 6,000,000
250,000 Pre-Paid Legal Services Inc.* 3,718,750
9,718,750
Funeral Services & Related - 0.8%
115,000 Stewart Enterprises Inc. Cl A 4,916,250
Insurance - Accident & Health - 0.4%
125,000 RISCORP Inc. Cl A* 2,375,000
Insurance - Property/Casualty/Title - 0.7%
150,000 Amerin Corp.* 4,087,500
Leisure - Toys/Games/Hobby - 1.0%
300,000 Lewis Galoob Toys Inc.* 6,075,000
Machinery - Materials Handling/Automation - 0.6%
175,000 3D Systems Corp.* 3,675,000
Media - Radio/TV - 5.3%
155,000 American Radio Systems Corp. Cl A* 5,231,250
100,000 Clear Channel Communications Inc.* 5,650,000
160,000 Emmis Broadcasting Corp. Cl A* 6,160,000
177,500 Evergreen Media Corp. Cl A* 6,390,000
200,000 Jacor Communications Inc. Cl A* 3,950,000
200,250 Renaissance Communications Corp.* 4,981,219
32,362,469
Medical - Biomedics/Genetics - 2.5%
75,000 Agouron Pharmaceuticals Inc.* 2,906,250
190,000 BioChem Pharma Inc.* (Canada) 7,790,000
40,000 Gilead Sciences Inc.* 1,150,000
100,000 Pharmaceutical Product Development 3,525,000
Inc.*
15,371,250
Medical - Ethical Drugs - 0.9%
30,000 Biovail Corp. International* (Canada) 851,250
225,000 NeXstar Pharmaceuticals Inc.* 4,443,750
5,295,000
Medical - Health Maintenance Organizations - 1.7%
150,000 CompDent Corp.* 5,400,000
200,000 Maxicare Health Plans Inc.* 4,987,500
10,387,500
Medical - Hospitals - 1.4%
115,000 Community Health Systems Inc.* 4,715,000
150,000 Veterinary Centers of America Inc.* 4,050,000
8,765,000
Medical - Instruments - 1.7%
25,000 ESC Medical Systems Ltd.* (Israel) 862,500
150,000 Sofamor/Danek Group Inc.* 5,081,250
420,000 Vidamed Inc.*# 4,462,500
10,406,250
Medical - Outpatient/Home Care - 7.1%
138,000 American HomePatient Inc.* 5,416,500
200,000 HEALTHSOUTH Corp.* 6,800,000
135,000 PhyCor Inc.* 5,940,000
160,000 Physician Reliance Network Inc.* 6,340,000
132,000 Renal Care Group Inc.* 3,663,000
200,000 RoTech Medical Corp.* 7,400,000
250,000 Total Renal Care Holdings Inc.* 7,781,250
43,340,750
Medical - Products - 2.4%
300,000 Cytyc Corp.* 5,025,000
160,000 PAREXEL International Corp.* 6,920,000
125,000 TheraTech Inc.* 2,656,250
14,601,250
Medical - Wholesale Drug/Sundries - 0.5%
150,000 Grupo Casa Autrey S.A. de C.V. ADR 2,775,000
(Mexico)
Medical/Dental - Supplies - 4.2%
150,000 Omnicare Inc. 8,081,250
300,000 Orthodontic Centers of America Inc.* 9,000,000
150,000 STERIS Corp.* 4,500,000
70,000 Target Therapeutics Inc.* 4,243,750
25,825,000
Metal Processing & Fabrication - 0.8%
120,000 Wolverine Tube Inc.* 4,875,000
Oil & Gas - Drilling - 2.4%
700,000 Global Marine Inc.* 7,000,000
950,000 Marine Drilling Companies Inc.* 7,481,250
14,481,250
Oil & Gas - Field Services - 1.1%
175,000 Tidewater Inc. 6,650,000
Pollution Control - Services - 0.7%
200,000 Tetra Tech Inc.* 4,450,000
Retail - Apparel/Shoe - 3.1%
50,000 AnnTaylor Stores Corp.* 900,000
200,000 Gymboree Corp.* 5,225,000
215,500 Men's Wearhouse Inc.* 6,788,250
165,000 Talbots Inc. 6,270,000
19,183,250
Retail - Department Stores - 0.4%
85,000 Proffitt's Inc.* 2,677,500
Retail - Home Furnishings - 0.3%
150,000 Bombay Company Inc.* 1,218,750
30,000 Renters Choice Inc.* 521,250
1,740,000
Retail - Misc./Diversified - 0.5%
111,500 Urban Outfitters Inc.* 3,372,875
Retail/Wholesale - Building Products - 0.7%
400,000 Eagle Hardware & Garden Inc.* 4,100,000
Telecommunications - Cellular - 0.5%
125,000 InterCel Inc.* 2,812,500
Telecommunications - Equipment - 5.5%
60,000 Cascade Communications Corp.* 5,385,000
140,000 Comverse Technology Inc.* 3,377,500
130,000 Gilat Satellite Networks Ltd.* 3,152,500
(Israel)
165,000 Glenayre Technologies Inc.* 6,311,250
241,000 P-COM Inc.* 4,850,125
114,800 PairGain Technologies Inc.* 7,433,300
5,000 Premisys Communications Inc.* 162,500
80,000 Westell Technologies Inc. Cl A* 2,960,000
33,632,175
Telecommunications - Services - 2.7%
250,000 ACC Corp.* 7,406,250
200,000 IntelCom Group Inc.* (Canada) 3,550,000
220,000 LCI International Inc.* 5,390,000
16,346,250
Textile - Apparel Manufacturing - 1.0%
125,000 Nautica Enterprises Inc.* 5,968,750
Tobacco - 0.2%
20,500 Culbro Corp.* 1,258,188
Transportation - Airline - 1.4%
355,000 Mesa Air Group Inc.* 3,816,250
370,000 Reno Air Inc.* 4,625,000
8,441,250
TOTAL COMMON STOCK (Cost $368,692,273) 549,950,446
STOCK APPRECIATION INCOME LINKED SECURITIES (SAILS) - 0.6%
Media - Books - 0.6%
45,000 Houghton Mifflin Co. - 6% Exchangeable 3,960,000
Notes due 8/1/99 - Stock Appreciation
Income Linked Securities (SAILS)
TOTAL SAILS (Cost $3,060,000) 3,960,000
FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT NOTES - 3.9%
$6,400,000 FNMA Discount Notes due 04/02/96 6,399,067
200,000 FNMA Discount Notes due 04/09/96 199,772
4,000,000 FNMA Discount Notes due 04/24/96 3,986,558
2,500,000 FNMA Discount Notes due 04/26/96 2,491,250
3,300,000 FNMA Discount Notes due 04/30/96 3,286,070
5,300,000 FNMA Discount Notes due 05/15/96 5,265,862
2,400,000 FNMA Discount Notes due 05/17/96 2,384,023
TOTAL FNMA DISCOUNT NOTES (Amortized Cost $24,012,602) 24,012,602
U.S. GOVERNMENT OBLIGATIONS - 4.2%
2,500,000 U.S. Treasury Bills due 04/18/96 24,939,319
600,000 U.S. Treasury Bills due 05/17/96 596,006
TOTAL U.S. GOVERNMENT OBLIGATIONS (Amortized Cost $25,535,325) 25,535,325
TOTAL INVESTMENTS (Cost $421,300,200+) - 98.9% 603,458,373
OTHER ASSETS, LESS LIABILITIES - 1.1% 6,460,491
NET ASSETS - 100% $609,918,864
</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 period ended March 31, 1996:
<TABLE>
<CAPTION>
Change in
Market Purchases Sales Unrealized Market Dividend Realized
Value at at at Appreciation Value at Income Gain
9/30/95 Cost Cost (Depreciation) 3/31/96 (Loss)
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Data $5,414 $0 $2,180 $(3,234) $0 $0 $2,047
Translation
Inc.
Malofilm 0 1,705 1,705 0 0 0 (442)
Communications
Inc. Cl B
Vidamed 3,623 0 260 1,100 4,463 0 138
Inc.
</TABLE>
See notes to financial statements.
PORTFOLIO MANAGER'S LETTER
Berger New Generation Fund
Dear Shareholder:
The Berger New Generation Fund is the newest member of the growing
family of Berger mutual funds. The Fund became operational on March
29, 1996, so we are including it in this semi-annual report, but no
investments will be made until April 1, 1996.
The subscription period for investing in the Fund ended March 29,
1996, and, on that date, all orders were processed. As of March 31,
1996, total assets in the Fund were $25,842,285.
The Fund's investment objective is capital appreciation. We will
seek to achieve this objective by investing in visionary companies with
innovative products, technologies, or ways of doing business that have
the potential to dramatically change the dynamics of their industries.
The Fund will look for today's equivalent of the companies that brought
us Velcro, bar coding, and artificial hearts in the past. We will
focus on companies with breakthrough ideas in industries on the cutting
edge, such as information and telecommunications technology,
electronics, entertainment, environmental services, healthcare, and
pharmaceuticals.
We are pleased to be able to bring you this new investment
opportunity. If you are interested in more information and a
prospectus for the Berger New Generation Fund, please call 1-800-333-
1001.
Respectfully submitted,
William Keithler
President and Portfolio Manager
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
(in thousands)
Berger Berger
Berger Berger Small New
One Hundred Growth & Company Generation
Fund Income Fund Growth Fund Fund
March 31, 1996 (unaudited)
<S> <C> <C> <C> <C>
Assets
Investments at cost $1,647,275 $277,081 $421,300 $0
Investments at value $2,171,780 $330,290 $603,458 $0
Cash 5,745 885 3,755 $0
Receivables:
Investment securities sold 34,883 7,624 3,103 0
Fund shares sold 1,861 256 4,868 25,842
Variation margin 3,150 350 0 0
Dividends and interest 907 1,119 13 0
Total Assets 2,218,326 340,524 615,197 25,842
Liabilities
Payables:
Investment securities 48,799 0 1,795 0
purchased
Fund shares redeemed 5,634 1,243 2,709 0
Accrued investment 1,369 216 450 0
advisory fees
Accrued transfer agent 468 104 146 0
fees
Accrued 12b-1 distribution 456 72 125 0
& advertising
Other accrued expenses 163 26 53 0
Total Liabilities 56,889 1,661 5,278 0
Net Assets Applicable to $2,161,437 $338,863 $609,919 $25,842
Shares Outstanding
Capital Shares:
Authorized (Par Value 200,000 100,000 unlimited unlimited
$0.01)
Shares Outstanding 112,271 24,999 150,919 2,584
Net Asset Value, Offering and
Redemption Price Per Share $19.25 $13.56 $4.04 $10.00
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
Statements of Operations
(in thousands)
For the six months ended
March 31, 1996 (unaudited)
Berger Berger Berger Berger
100 G&I SCG NG
Fund Fund Fund Fund
<S> <C> <C> <C> <C>
Investment Income
Income:
Dividends $ 4,886 $3,447 $349 $0
Interest 6,812 1,769 1,345 0
Total Income 11,698 5,216 1,694 0
Expenses:
Investment advisory fees 7,998 1,291 2,479 0
(Note 2)
12b-1 distribution & 2,666 431 688 0
advertising
Transfer agent fees 2,802 610 1,012 0
Postage, printing & 1,223 220 407 0
reports
Registration fees 108 38 57 0
Custodian fees 108 19 36 0
Directors'/Trustees' fees 80 13 20 0
& expenses
Accounting fees 113 21 31 0
Administrative services 107 17 27 0
(Note 2)
Legal fees 93 21 24 0
Insurance & bonds 24 5 7 0
Audit fees 21 14 9 0
Total Expenses 15,343 2,700 4,797 0
Less fees paid ( 29) (11) 0 0
indirectly (Note 2)
Less earnings credits (103) (17) (27) 0
(Note 2)
Expenses - Net 15,211 2,672 4,770 0
Net Investment Income ( 3,513) 2,544 (3,076) 0
(Loss)
Realized and Unrealized Gain
(Loss) on Investments and Foreign
Currency Transactions
Net realized gain (loss) on
securities and foreign 183,083 34,039 21,838 0
currency transactions
Net change in unrealized
appreciation (depreciation) on
securities and foreign (30,157) (16,510) 45,722 0
currency transactions
Net unrealized gain (loss) (2,786) (310) 0 0
on futures transactions
Net Realized and
Unrealized Gain on 150,140 17,219 67,560 0
Investments and Foreign
Currency Transactions
Net Increase in Net Assets
Resulting from Operations $146,627 $19,763 $64,484 $0
</TABLE>
*For the period 3/29/96 (date operations commenced) to 3/31/96.
See notes to financial statements.
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
(in thousands)
Berger One Hundred Fund
Six Months Ended
3/31/96 Year Ended
(unaudited) 9/30/95
<S> <C> <C>
From Operations:
Net investment income (loss) (3,513) $(5,682)
Net realized gain (loss) on securities 183,083 116,060
and foreign currency transactions
Net change in unrealized appreciation
(depreciation) on securities and (30,157) 241,776
foreign currency transactions
Net unrealized gain (loss) on futures (2,786)
transactions
Net Increase (Decrease) in Net Assets 146,627 352,154
Resulting From Operations
From Distributions to Shareholders:
Net investment income dividend 0 0
Net realized gains on investments (106,043) 0
dividend
Net Decrease in Net Assets from (106,043) 0
Distributions to Shareholders
From Fund Share Transactions:
Proceeds from shares sold 176,905 624,009
Net asset value of shares issued in 103,262 0
reinvestment of dividends
Total 280,167 624,009
Payments for shares redeemed (364,992) (999,228)
Net Increase (Decrease) in Net Assets
Derived From Fund Share Transactions (84,825) (375,219)
Increase (Decrease) in Net Assets (44,241) (23,065)
Net Assets:
Beginning of period 2,205,678 2,228,743
End of period $2,161,437 $2,205,678
Undistributed net investment income $(3,513) $0
(loss) included in the above
Components of Net Assets:
Capital (par value and paid in surplus) $1,508,416 $1,593,241
Undistributed net investment income (3,513) 0
(loss)
Undistributed net realized gain (loss ) 134,816 57,776
from investments
Unrealized appreciation (depreciation) on 521,718 554,661
investments
Total $2,161,437 $2,205,678
Transactions in fund shares:
Shares sold 9,623 38,571
Shares issued to shareholders in 5,759 0
reinvestment of dividends
Total 15,382 38,571
Shares repurchased (19,848) (61,464)
Net increase (decrease) in shares (4,466) (22,893)
Shares outstanding, beginning of period 116,737 139,630
Shares outstanding, end of period 112,271 116,737
</TABLE>
*Date operations commenced.
See notes to financial statements.
<TABLE>
<CAPTION>
Berger Growth & Berger Small Company
Income Fund Growth Fund
Six Months Six Months Berger New Generation
Ended Ended Fund
3/31/96 Year Ended 3/31/96 Year Ended For the Period 3/29/96*
(unaudited) 9/30/95 (unaudited) 9/30/95 to 3/31/96 (unaudited)
<S> <C> <C> <C> <C>
$2,544 $4,852 $(3,076) $(2,570) $0
34,039 (11,391) 21,838 2,251 0
(16,510) 50,552 45,722 112,795 0
(310) 0 0 0 0
19,763 44,013 64,484 112,476 0
(2,478) (5,641) 0 (286) 0
0 0 0 0 0
(2,478) (5,641) 0 (286) 0
29,391 97,651 178,313 432,630 25,842
2,359 5,341 0 274 0
31,750 102,992 178,313 432,904 25,842
64,568) (178,538) (155,545) (234,279) 0
(32,818) (75,546) 22,768 198,625 25,842
(15,533) (37,174) 87,252 310,815 25,842
354,396 391,570 522,667 211,852 0
$338,863 $354,396 $609,919 $522,667 $25,842
$94 $28 $(3,076) $0 $0
$269,779 $302,597 $420,006 $397,238 $25,842
94 28 (3,076) 0 0
16,090 (17,949) 10,831 (11,007) 0
52,900 69,720 182,158 136,436 0
$338,863 $354,396 $609,919 $522,667 $25,842
2,260 8,673 48,436 146,265 2,584
179 461 0 97 0
2,439 9,134 48,436 146,362 2,584
(4,940) (15,751) (42,133) (79,121) 0
(2,501) (6,617) 6,303 67,241 2,584
27,500 34,117 144,616 77,375 0
24,999 27,500 150,919 144,616 2,584
</TABLE>
Notes to Financial Statements / March 31, 1996
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization
The One Hundred Fund, Inc. ("Berger 100") and the Berger One Hundred
and One Fund, Inc., doing business as the Berger Growth & Income Fund,
Inc. ("Berger G&I") 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, and Berger New Generation Fund
("Berger NG"), which commenced operations on March 29, 1996, are the
only portfolios established under the Trust, although others may be
added in the future.
The Berger 100 and Berger G&I Funds and the Trust (individually the
"Fund" or collectively 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.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of increases
and decreases in net assets from operations during the reporting
period. Actual results could differ from those estimates.
2. AGREEMENTS
Berger Associates, Inc. ("Berger") renders investment advisory
services to the Berger 100 and Berger G&I Funds pursuant to agreements
which 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
and Berger NG Funds 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 each Fund. Berger has also
agreed to waive its advisory fee for the Berger NG Fund to the extent
that the Fund's normal operating expenses in any fiscal year (including
the management fee and the 12b-1 fee, but excluding brokerage
commissions, interest, taxes and extraordinary expenses) exceeds 1.90%
of the Fund's average daily net assets for that fiscal year.
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"), 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
per Fund plus a fee computed as a percentage of average daily net
assets on a total relationship basis. IFTC's fees for custody,
recordkeeping and pricing, or 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 or by credits received from directed
brokerage transactions. For the six months ended March 31, 1996, the
Berger 100, Berger G&I and the Berger SCG Funds received $132,576,
$28,642 and $26,674, respectively, in earnings and brokerage credits
and paid IFTC fees (after earnings and brokerage credits) of
$2,237,044, $479,907 and $851,665, respectively, for services rendered.
The Funds have adopted plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "Plans"). The Plans provide for
the payment to Berger of a 12b-1 fee of .25 of 1% per annum of each
Fund's average daily net assets to finance activities primarily
intended to result in the sale of each Fund's shares. The Plans
provide 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 Funds. Payments made by the Funds pursuant
to their Rule 12b-1 Plans are excluded from the expenses subject to the
most restrictive state expense limitations, as noted above, contained
in the agreement with Berger. Payments made by the Berger NG Fund
pursuant to its Rule 12b-1 Plan are included in the expenses subject to
the voluntary expense limitation, also noted above, contained in the
agreement with Berger.
Certain officers and directors of Berger are also officers and
directors/trustees of the Funds. Directors/trustees who are not
affiliated with Berger received directors'/trustees' fees from the
Berger 100 Fund, Berger G&I Fund and Berger SCG Fund of $77,455,
$12,521, and $19,857 respectively, for the six months ended March 31,
1996.
3. INVESTMENT TRANSACTIONS
A. Purchases and Sales
Purchases and sales of investment securities (in thousands) during
the six months ended March 31, 1996 were as follows:
<TABLE>
<CAPTION>
Berger Berger Berger Berger
100 Fund G&I Fund SCG Fund NG Fund
<S> <C> <C> <C> <C>
Purchases of investment
securities (excluding $1,280,145 $ 185,334 $ 319,748 $ 0
short-term securities)
Sales of investment
securities (excluding $1,510,513 $ 203,902 $ 315,373 $ 0
short-term securities)
</TABLE>
There were no purchases or sales of long-term U.S. Government
securities during the period.
At March 31, 1996, the composition of unrealized appreciation (the
excess of value over tax cost) and unrealized depreciation (the excess
of tax cost over value) for securities (in thousands) was as follows:
<TABLE>
<CAPTION>
Berger Berger Berger Berger
100 Fund G&I Fund SCG Fund NG Fund
<S> <C> <C> <C> <C>
Appreciation $536,702 $56,083 $187,985 $0
Depreciation (12,197) (2,874) (5,827) $0
Net $524,505 $53,209 $182,158 $0
</TABLE>
The Berger 100 Fund and Berger G&I Fund sold futures contracts on the
S&P 500 Index during the six months ended March 31, 1996. The Funds
use such derivative instruments as a hedge against adverse movements in
security prices. The unrealized depreciation on the futures positions
as of March 31, 1996 was $2,786,108 and $309,568, respectively.
A summary of futures transactions for the period ended March 31,
1996 is as follows:
<TABLE>
<CAPTION>
Berger 100 Berger G&I
Fund Fund
<S> <C> <C>
Futures contracts open at 0 0
October 1, 1995
Futures contracts opened- 18,000 2,000
sold
Futures contracts closed 0 0
Futures contracts open at 18,000 2,000
March 31, 1996
</TABLE>
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 G&I Fund
incurred and elected to defer post-October 31, 1995, 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 G&I 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.
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 (in thousands) expire as follows:
<TABLE>
<CAPTION>
Berger Berger Berger Berger
100 Fund G&I Fund SCG Fund NG Fund
<S> <C> <C> <C> <C>
September 30, 2000 $0 $ 221 $ 0 $0
September 30, 2001 0 304 0 0
September 30, 2002 0 6,032 10,934 0
September 30, 2003 0 219 0 0
$0 $6,776 $10,934 $0
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights / March 31, 1996
Berger One Hundred Fund
For a Share Outstanding Throughout the Period Ended
March 31, September 30,
<s <C> <C> <C> <C> <C> <C>
1996* 1995* 1994* 1993* 1992* 1991*
Net asset value, beginning $18.89 $15.96 $16.54 $11.73 $11.13 $6.67
of period
Income from investment
operations:
Net investment income (.03) (.04) (.12) (.14) (.09) (.10)
(loss)
Net realized and
unrealized gains 1.32 2.97 (.46) 4.95 .86 5.15
(losses) on securities
Total from investment 1.29 2.93 (.58) 4.81 .77 5.05
operations
Less distributions:
Dividends (from net .00 .00 .00 .00 .00 .00
investment income)
Distributions (from (.93) .00 .00 .00 (.17) (.59)
capital gains)
Total distributions (.93) .00 .00 .00 (.17) (.59)
Net asset value, end of $19.25 $18.89 $15.96 $16.54 $11.73 $11.13
period
Total return 6.35% 18.36%# (3.51)%# 41.01%# 6.97% 83.02%
Ratios:
Net assets, end of 2,161,437 2,205,678 2,228,743 1,407,849 384,089 76,847
period (in thousands)
Ratio of expenses to 1.44%~+ 1.48%#+ 1.70%# 1.69%# 1.89% 2.24%
average net assets
Ratio of net income (loss) (.33)%~+ (.28)%#+ (.74)%# (1.00)%# (.75)% (1.06)%
to average net assets
Portfolio turnover rate 68% 114% 64% 74% 51% 78%
Average commission rate $.06 -- -- -- -- --
</TABLE>
* Per share calculations for the year were based on average shares
outstanding.
~Annualized.
+Ratio reflects total expenses, including fees paid indirectly with
brokerage commissions and fees offset by earnings credits, for 1995 and
1996 only.
# 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 Growth & Income Fund
For a Share Outstanding Throughout the Period Ended
March 31, September 30,
<S> <C> <C> <C> <C> <C> <C>
1996 1995 1994 1993 1992 1991
Net asset value, beginning $12.89 $11.48 $11.27 $8.96 $9.20 $5.88
of period
Income from investment
operations:
Net investment income .10 .16 .12 .08 .13 .18
(loss)
Net realized and
unrealized gains (losses) .67 1.43 .21 2.29 .54 3.25
on securities
Total from investment .77 1.59 .33 2.37 .67 3.43
operations
Less distributions:
Dividends (from net (.10) (.18) (.12) (.06) (.17) (.11)
investment income)
Distributions (from .00 .00 .00 .00 (.74) .00
capital gains)
Total distributions (.10) (.18) (.12) (.06) (.91) (.11)
Net asset value, end of $13.56 $12.89 $11.48 $11.27 $8.96 $9.20
period
Total return 3.94% 14.05%# 2.91%# 26.48%# 7.96% 58.76%
Ratios:
Net assets, end of period 338,863 354,396 391,570 112,932 32,942 4,081
(in thousands)
Ratio of expenses to 1.57%~* 1.63%#+ 1.81%# 2.10%# 2.56% 2.66%
average net assets
Ratio of net income (loss) 1.49%~* 1.33%#+ 1.19%# 1.05%# 1.05% 1.99%
to average net assets
Portfolio turnover rate 60% 85% 23% 62% 42% 143%
Average commission rate $.06 -- -- -- -- --
</TABLE>
~Annualized.
*Ratio reflects total expenses, including fees paid indirectly with
brokerage commissions and fees offset by earnings credits, for 1996
only.
+Ratio reflects total expenses, including fees offset by earnings
credits, for 1995 only.
# 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
March 31, September 30,
<S> <C> <C> <C>
1996 1995 1994*
Net asset value, beginning $3.61 $2.74 $2.50
of period
Income from investment
operations:
Net investment income (.02) (.02) .00
(loss)
Net realized and
unrealized gains (losses) .45 .89 .24
on securities
Total from investment .43 .87 .24
operations
Less distributions:
Dividends (from net .00 .00 .00^
investment income)
Distributions (from .00 .00 .00
capital gains)
Total distributions .00 .00 .00
Net asset value, end of $4.04 $3.61 $2.74
period
Total return 6.32% 31.90% 9.60%
Ratios:
Net assets, end of period 609,919 522,667 211,852
(in thousands)
Ratio of expenses to 1.74%~+ 1.89%+ 2.10%~+
average net assets
Ratio of net income (loss) (1.13)%~+ (.74)%+ .32%~+
to average net assets
Portfolio turnover rate 62% 109% 108%
Average commission rate $.06 -- --
</TABLE>
*For the period 12/30/93 (commencement of operations) to 9/30/94.
^Dividend from net investment income less than $.01 per share.
~Annualized.
+Ratio reflects total expenses, including fees offset by earnings
credits.
See notes to financial statements.
Directors of Berger One Hundred Fund and Berger Growth & Income 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 One Hundred Fund and
Berger Growth & Income Fund
President of Berger Investment Portfolio Trust
William R. Keithler
President of Berger Small
Company Growth Fund and
Berger New Generation 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.
1996 Berger Associates, Inc.
