BERGER SMALL CAP VALUE FUND
SEMI-ANNUAL REPORT
JUNE 30, 1997
TABLE OF CONTENTS
Portfolio Manager's Letter 2
Schedule of Investments 5
Statement of Assets and Liabilities 7
Statement of Operations 8
Statement of Changes in Net Assets 9
Notes to Financial Statements 10
Financial Highlights 14
1
<PAGE>
BERGER SMALL CAP VALUE FUND
PORTFOLIO MANAGER'S LETTER
Dear Shareholder,
The Berger Small Cap Value Fund continued to perform quite well in the first
half of 1997. The Fund gained 15.47% for Investor Shares* and 15.53% for
Institutional Shares versus gains of 20.12%, 20.60% & 10.20% in the DJIA, S&P
500 and Russell 2000 Indices respectively. This relative performance of your
Fund, which invests primarily in small companies, was particularly pleasing in
light of the continued narrowness of the market. During the first six months of
the year, we have seen the largest companies in the market propel S&P 500 and
Dow Jones Industrial Average to new highs.
The Russell 2000 Index, a relatively similar stock universe to the issues the
Fund typically owns, trailed the S&P 500 by 18.35% in the last 12 months, one of
the largest gaps since 1979. Obviously, the disparities in the performance of
large capitalization stocks versus small capitalization stocks make the relative
performance of your Fund all the more noteworthy.
Of greater importance, however, is historical evidence which suggests that the
stock market eventually evens out these disparities which we believe should make
the relative investment environment for smaller companies that much more
rewarding.
The second reason for our satisfaction with your Fund's performance was the fact
that your management continued to emphasize the risk side of the risk/reward
equation. This is indicated both by the very low BETA**of .71 for both Investor
and Institutional Shares and by the relatively high amount of cash the Fund has
maintained. This should serve the Fund in good stead when an inevitable market
correction occurs.
RECOGNITION OF VALUE
During the first half 1997, your Fund continued to capitalize on the short-term
inefficiencies of the market. Very rewarding investments were made in
"yesterday's growth stocks" that had fallen approximately 50%-70% due to
short-term problems, were selling at between two and three times cash, had zero
or extremely low long-term debt and remained profitable even with the temporary
decline within their given industry. When these issues recovered from the
market's over-reaction, we were able to sell these issues with gains of up to
100%. Semiconductor equipment manufacturers, Tencor, Teradyne, Electrogas and
Silicon Valley Group were examples of this opportunity. Your Fund currently is
taking a similar approach with such issues as CP Clare, Robotic Vision Systems,
Ppt Vision and Eltron International. The Fund also continues to benefit from the
market place finding value in our investments and pursuing mergers. Nellcor
Puritan - Bennett and Bucyrus Erie appreciated over 40% when they entered into
agreement to be acquired.
THE SECOND HALF OUTLOOK
The opportunity in the near term for your Fund will revolve around the disparity
in recent market performance between small and large companies mentioned
earlier. In the short term, the market can be highly inefficient with both
positive and negative excesses, but eventually these are corrected. We believe
either the large stocks that have driven the popular averages must correct from
their current lofty valuations or small stocks must catch up. Either way, we
feel confident Berger Small Cap Value will have good relative performances.
2
<PAGE>
If the market suffers a correction, the relatively high cash position should
allow us to take advantage of the opportunities created and make new investments
in stocks which already have suffered large declines and should have less
downside risk. As to the current holdings, the large exposure to banks and
thrifts should continue to benefit from relatively stable growth and industry
consolidation. The large foreign investment through closed-end funds should be
benefited by the long term favorable demographics and low economic base of
emerging countries. The frosting on this type of investment comes when measures
are taken to remove the discount to net asset value that presently exists. An
example of this is GT Global Developing Market Fund management's decision to
convert to an open end status by the end of 1997. We believe this alone could
lead to an 18% annualized return in the GT Global Developing Market Fund if the
fund's net asset value remains unchanged.
Thank you again for your confidence and your investment in the fund.
Bob Perkins
Portfolio Manager
Berger Small Cap Value Fund
* The investor shares returned 10.38% since the date of first public
offering, 2/14/97.
** Beta measures the sensitivity of rates of return on a fund to general
market movements. Beta is based on historical performance of the trailing
36 months and does not indicate future results.
3
<PAGE>
(DESCRIPTION OF BERGER SMALL CAP VALUE FUND - INVESTOR SHARES 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 Small Cap Value Fund - Investor Shares and Institutional
Shares to the Russell 2000 Index and to the Cost of Living Index. The chart is
based on an initial investment of $10,000 on October 21, 1987, with all
dividends and capital gains reinvested. Also included is a smaller chart
reflecting Investor and Institutional Shares Average Annual Total Returns as of
June 30, 1997; for 1 year - 34.25% and 34.32%; 3 years - 22.55% and 22.57%; 5
years - 21.36% and 21.37%; and from inception - 15.32% and 15.33%, respectively.
<TABLE>
<CAPTION>
Berger Small Cap Value Fund Russell Cost of
Date Investor Shares Institutional Shares 2000 Index Living Index
<S> <C> <C> <C> <C>
10/21/87 $ 10,000 $ 10,000 $ 10,000 $ 10,000
12/31/87 $ 9,905 $ 9,905 $ 10,227 $ 10,009
12/31/88 $ 11,894 $ 11,894 $ 12,785 $ 10,451
12/31/89 $ 15,038 $ 15,038 $ 14,864 $ 10,937
12/31/90 $ 11,742 $ 11,742 $ 11,969 $ 11,605
12/31/91 $ 14,673 $ 14,673 $ 17,480 $ 11,960
12/31/92 $ 17,551 $ 17,551 $ 20,698 $ 12,307
12/31/93 $ 20,407 $ 20,407 $ 24,606 $ 12,645
12/31/94 $ 21,775 $ 21,775 $ 24,157 $ 12,984
12/31/95 $ 27,450 $ 27,450 $ 31,030 $ 13,313
12/31/96 $ 34,478 $ 34,478 $ 36,149 $ 13,755
6/30/97 $ 39,812 $ 39,833 $ 39,836 $ 13,903
</TABLE>
Past performance is not predictive of future performance.
TOP TEN HOLDINGS AS OF JUNE 30, 1997
% of Net Assets
6/30/97
1. Knightsbridge Tankers, Ltd. 3.2%
2. Medford Savings Bank 3.1%
3. Imperial Bancorp 3.0%
4. Mechanics Savings Bank 3.0%
5. Jostens, Inc. 3.0%
6. Chieftain International, Inc. 2.9%
7. Centennial Cellular Corp. Class A 2.8%
8. CCB Financial Corp. 2.8%
9. Ultratech Stepper, Inc. 2.7%
10. First Commerce Corp. 2.6%
4
<PAGE>
BERGER SMALL CAP VALUE FUND
SCHEDULE OF INVESTMENTS (UNAUDITED)
JUNE 30, 1997
Shares, Units or
Principal Amount Market Value
COMMON STOCK - 87.7%
Auto/Truck - Original Equipment - 3.4%
160,000 Simpson Industries, Inc. $ 1,700,000
30,000 Walbro Corp. 607,500
----------------
2,307,500
----------------
Banks - Northeast - 0.1%
2,000 CFX Corp.* 42,000
----------------
Banks - Southeast - 5.4%
25,500 CCB Financial Corp. 1,864,688
39,569 First Commerce Corp. 1,741,036
----------------
3,605,724
----------------
Banks - West - 3.0%
70,000 Imperial Bancorp* 2,021,250
----------------
Computer - Local Networks - 1.4%
73,000 ACT Networks* 930,750
----------------
Computer - Optical Recognition - 2.0%
115,000 Robotic Vision Systems* 1,365,625
----------------
Computer - Peripheral Equipment - 2.0%
45,000 Eltron International, Inc.* 1,338,750
----------------
Consumer Products - Miscellaneous - 3.0%
74,000 Jostens, Inc. 1,979,500
----------------
Diversified Operations - 2.3%
75,800 Glatfelter Co. 1,516,000
----------------
Electronics - Laser Systems/Components - 0.7%
30,000 Cyberoptics Corp.* 472,500
----------------
Electronics - Semiconductor Equipment - 5.1%
60,000 Silicon Valley Group, Inc.* 1,582,500
80,000 Ultratech Stepper, Inc.* 1,830,000
----------------
3,412,500
----------------
Electronics - Semiconductor Manufacturing - 2.6%
110,000 C.P. Clare Corp.* 1,732,500
----------------
Finance-Equity Real Estate Investment Trust - 4.3%
60,000 IRT Property Co. 705,000
70,000 Summit Property, Inc. 1,443,750
48,500 Town & Country Trust 745,688
----------------
2,894,438
----------------
Finance - Mortgage & Related Services - 0.4%
10,000 North American Mortgage* 236,875
----------------
Finance - Public Investment Fund-Foreign - 6.9%
44,900 Emerging Markets Telecom Fund* 841,875
45,173 GT Greater Eastern Europe Fund 784,881
50,000 Latin America Discovery Fund 987,500
148,500 Morgan Stanley Asia-Pacific Fund 1,559,250
30,200 New Germany Fund 475,650
----------------
4,649,156
----------------
Finance - Savings & Loan - 9.3%
33,000 Commercial Federal Corp. 1,225,125
105,000 Mechanics Savings Bank* 1,981,875
71,000 Medford Savings Bank 2,076,750
50,000 Poncebank 965,625
----------------
6,249,375
----------------
5
<PAGE>
Household - Textiles & Furnishings - 2.4%
135,100 Congoleum Corp. Class A* $ 1,587,425
----------------
Insurance - Multi Line - 1.8%
40,000 Old Republic International Corp. 1,212,500
----------------
Leisure - Products - 1.2%
20,000 Community Bankshares, Inc. 802,500
----------------
Machine - Tools & Related Products - 0.9%
90,800 PPT Vision, Inc.* 624,250
----------------
Machinery - Construction/Mining - 2.0%
125,000 Bucyrus International, Inc.* 1,328,125
----------------
Media - Cable TV - 2.6%
147,500 Jones Intercable, Inc.* 1,714,688
----------------
Media - Periodicals - 2.3%
135,400 Playboy Enterprises Class B* 1,565,561
----------------
Medical - Instruments - 0.9%
50,000 Idexx Laboratories, Inc.* 621,875
----------------
Medical - Products - 1.9%
70,000 Nellcor Puritan-Bennett* 1,268,750
----------------
Medical - Wholesale Drug/Sundries - 1.1%
60,000 Perrigo Co.* 750,000
----------------
Oil & Gas - Field Services - 2.2%
50,000 Coflexip ADR* 1,506,250
----------------
Oil & Gas - Products/Pipeline - 1.5%
270,000 Kaneb Services, Inc.* 995,625
----------------
Oil & Gas - U.S. Exploration & Production - 5.4%
90,000 Chieftain International, Inc.* 1,974,375
18,000 Pogo Producing Co. 696,375
55,000 Seagull Energy Corp.* 962,500
----------------
3,633,250
----------------
Retail - Mail Order & Direct - 1.1%
49,800 Blair Corp. 715,875
----------------
Retail - Restaurants - 0.8%
30,000 Bob Evans Farms, Inc. 508,125
----------------
Telecommunications - Cellular - 2.8%
120,000 Centennial Cellular Corp. Class A* 1,905,000
----------------
Transportation - Shipping - 4.9%
78,900 Anangel-American Shipholdings, Ltd. ADR* 769,275
85,000 Knightsbridge Tankers, Ltd. 2,146,250
100,000 M.C. Shipping, Inc. 375,000
----------------
3,290,525
----------------
TOTAL COMMON STOCK (Cost $49,089,631) 58,784,767
----------------
U.S. GOVERNMENT OBLIGATIONS - 13.6%
$ 680,000 U.S. Treasury Bills due 07/03/97 679,820
160,000 U.S. Treasury Bills due 07/10/97 159,816
950,000 U.S. Treasury Bills due 07/17/97 948,083
2,710,000 U.S. Treasury Bills due 07/24/97 2,701,615
1,080,000 U.S. Treasury Bills due 07/31/97 1,075,680
2,230,000 U.S. Treasury Bills due 08/07/97 2,219,296
----------------
1,370,000 U.S. Treasury Bills due 08/14/97 1,361,779
----------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(Amortized Cost $9,146,089) 9,146,089
----------------
TOTAL INVESTMENTS (Cost $58,235,720)- 101.3% 67,930,856
OTHER ASSETS, LESS LIABILITIES - (1.3%) (884,930)
----------------
NET ASSETS - 100% $ 67,045,926
----------------
* Non-income producing security ADR - American Depository Receipt See notes to
financial statements.
6
<PAGE>
BERGER SMALL CAP VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 1997
ASSETS
Investments at cost $ 58,235,720
===============================================================================
Investments at value $67,930,856
Cash 261,869
Receivables:
Fund shares sold 146,296
Dividends 49,001
- -------------------------------------------------------------------------------
Total Assets 68,388,022
- -------------------------------------------------------------------------------
Liabilities
Payables:
Investment securities purchased 1,271,920
Accrued investment advisory fees (Note 2)
47,471
Accrued expenses 22,705
- -------------------------------------------------------------------------------
Total Liabilities 1,342,096
- -------------------------------------------------------------------------------
Net Assets $67,045,926
===============================================================================
Net Asset Value, Offering and Redemption Price Per Share:
Investor Shares (based on net assets of $26,196,710 and
1,376,817 shares outstanding) $ 19.03
===============================================================================
Institutional Shares (based on net assets of $40,849,216 and
2,145,087 shares outstanding) $ 19.04
===============================================================================
See notes to financial statements.
7
<PAGE>
BERGER SMALL CAP VALUE FUND
STATEMENT OF OPERATIONS (UNAUDITED)
For the Six Months Ended June 30, 1997
<TABLE>
<CAPTION>
INVESTMENT INCOME
Income:
<S> <C>
Dividends $ 253,873
Interest 153,463
- ------------------------------------------------------------------------------------------------------------
Total Income 407,336
- ------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees (Note 2) 218,413
Accounting fees 7,678
Legal fees 16,845
Custodian fees 8,018
12b-1 distribution and advertising fees - Investor shares (Note 2) 11,260
Transfer agent fees - Investor shares 7,220
Transfer agent fees - Institutional shares 16,619
Postage, printing and reports 17,592
Insurance & bonds 2,839
Registration fees - Investor Shares 1,502
Registration fees - Institutional Shares 11,968
Audit fees 14,500
Trustees' fees and expenses 2,072
Administrative services (Note 2) 1,927
Miscellaneous 1,650
- ------------------------------------------------------------------------------------------------------------
Total Expenses 340,103
Less earnings credits (Note 2) (2,424)
- ------------------------------------------------------------------------------------------------------------
Expenses - Net 337,679
- ------------------------------------------------------------------------------------------------------------
Net Investment Income 69,657
- ------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on securities and foreign currency transactions 5,840,058
Net change in unrealized appreciation (depreciation) on securities and foreign
currency transactions 1,619,546
- ------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Transactions 7,459,604
- ------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations $ 7,529,261
============================================================================================================
</TABLE>
See notes to financial statements.
8
<PAGE>
BERGER SMALL CAP VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1997 Year Ended
(Unaudited) December 31, 1996
FROM OPERATIONS:
<S> <C> <C>
Net investment income (loss) $ 69,657 $ 224,486
Net realized gain (loss) on securities and foreign
currency transactions 5,840,058 3,442,492
Net change in unrealized appreciation (depreciation)
on securities and foreign currency transactions 1,619,546 3,815,909
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations 7,529,261 7,482,887
- -----------------------------------------------------------------------------------------------------------------------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income 0 (208,266)
Net realized gains on investments 0 (3,401,673)
- -----------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets from Distributions to Shareholders 0 (3,609,939)
- -----------------------------------------------------------------------------------------------------------------------
FROM FUND SHARE TRANSACTIONS:
Proceeds from shares sold 32,196,155 3,119,256
Net asset value of shares issued in reinvestment of dividends 0 3,359,418
- -----------------------------------------------------------------------------------------------------------------------
Total 32,196,155 6,478,674
Payments for shares redeemed (8,720,139) (6,143,497)
- -----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Derived From
Fund Share Transactions 23,476,016 335,177
- -----------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 31,005,277 4,208,125
- -----------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of period 36,040,649 31,832,524
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 67,045,926 $ 36,040,649
=======================================================================================================================
Undistributed net investment income included in the above $ 85,877 $ 16,220
=======================================================================================================================
COMPONENTS OF NET ASSETS:
Capital (par value and paid-in-surplus) $ 51,349,024 $ 27,873,008
Undistributed net investment income 85,877 16,220
Undistributed net realized gain from investments 5,915,889 75,831
Unrealized appreciation (depreciation) on investments 9,695,136 8,075,590
- -----------------------------------------------------------------------------------------------------------------------
Total $ 67,045,926 $ 36,040,649
=======================================================================================================================
</TABLE>
See notes to financial statements.
9
<PAGE>
BERGER SMALL CAP VALUE FUND
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Berger Small Cap Value Fund (the "Fund") is registered under the Investment
Company Act of 1940, as amended, as a diversified open-end management investment
company. The Fund is a series of the Berger Omni Investment Trust, a
Massachusetts business trust. Prior to February 14, 1997, the Fund and the Trust
were known as The Omni Investment Fund. On February 14, 1997, all of the
outstanding shares of the Omni Investment Fund were designated Institutional
Shares of the Berger Small Cap Value Fund and a separate class of shares,
Investor Shares, were offered. Both classes of shares have identical rights to
earnings, assets and voting privileges. The investment objective of the Fund is
capital appreciation.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its 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 in 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 amortized cost, which
approximates market value. Foreign securities are converted to U.S. dollars
using exchange rates determined prior to 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 trustees.
Federal Income Taxes
It is the Fund's policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
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. Assets and
liabilities initially expressed in terms of foreign currencies are translated
into U.S. dollars at the prevailing market rates as quoted by one or more banks
or dealers on the date of valuation. The cost of securities is translated into
U.S. dollars at the rates of exchange prevailing when such securities were
acquired. Income and expenses are translated into U.S. dollars at rates of
exchange prevailing when accrued.
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.
10
<PAGE>
Allocation of Income, Expenses and Gains and Losses
Income, expenses (other than those attributable to a specific class) and gains
and losses are allocated daily to each class of shares based upon the proportion
of relative net assets represented by each class as a percentage of the Fund's
total net assets. Expenses directly attributable to a specific class are charged
against the operations of that class.
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
Fund pursuant to an agreement which provides for an investment advisory fee to
be paid to Berger at the annual rate of .90 of 1% of the Fund's average daily
net assets. Berger has delegated the day-to-day portfolio management of the Fund
to Perkins, Wolf & McDonnell (the "Sub-Advisor"). As compensation for services
rendered to the Fund, the Sub-Advisor receives a sub-advisory fee from Berger at
an annual rate of .9 of 1% of the Fund's average daily net assets up to $75
million; .5 of 1% of average daily net assets between $75 million and $200
million and .2 of 1% of average daily net assets in excess of $200 million. Such
fee is accrued daily and paid monthly.
The 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
Fund has also entered into a recordkeeping and pricing agreement with Investors
Fiduciary Trust Company ("IFTC"), who also serves as the Fund's custodian and
transfer agent. The recordkeeping and pricing agreement provides for the monthly
payment of a base fee plus a fee computed as a percentage of average daily net
assets on a total relationship basis with other Berger Funds. IFTC's fees for
custody, recordkeeping and pricing, or transfer agency services are subject to
reduction by credits earned by the 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 June 30, 1997, the Fund received $2,424
in earnings and brokerage credits and paid IFTC fees (after earnings and
brokerage credits) of $29,433 for services rendered.
Effective February 14, 1997, the Fund adopted a plan pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the "Plan") for the Investor Shares.
The Plan provides for the payment to Berger of a 12b-1 fee of .25 of 1% per
annum of the Investor Shares' average daily net assets to finance activities
primarily intended to result in the sale of the Investor 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.
Certain officers and directors of Berger are also officers and/or trustees of
the Fund. Trustees who are not affiliated with Berger received trustees' fees
from the Fund totaling $2,072 for the six months ended June 30, 1997.
3. INVESTMENT TRANSACTIONS
PURCHASES AND SALES
Purchases and sales of investment securities during the six months ended June
30, 1997, were $38,402,881 and $21,188,258, respectively. There were no
purchases or sales of long-term U.S. Government securities during the period.
11
<PAGE>
At June 30, 1997, net unrealized appreciation of investments of $9,695,136 was
comprised of $10,127,243 of gross appreciation (the excess of value over tax
cost) and $432,107 of gross depreciation (the excess of tax cost over value).
The Fund may hold certain types of options for the purpose of hedging the
portfolio against exposure to market value fluctuations. The use of such
instruments may involve certain risks as a result of unanticipated movements in
the market. A lack of correlation between the value of such instruments and the
assets being hedged, or unexpected adverse price movements, could render the
Fund's hedging strategy unsuccessful. In addition, there can be no assurance
that a liquid secondary market will exist for the instrument. Realized gains or
losses on these securities are included in Net Realized Gain (Loss) on
Securities Transactions in the Statements of Operations. A summary of options
transactions for the six months ended June 30, 1997 is as follows:
<TABLE>
<CAPTION>
Number of Contracts Premiums Received
<S> <C> <C>
Options outstanding at January 1, 1997 52 $ 56,866
Options written 0 0
Options closed (52) (56,866)
- ----------------------------------------------------------------------------------------
Options outstanding at June 30, 1997 0 $ 0
========================================================================================
</TABLE>
FEDERAL INCOME TAX STATUS
Dividends paid by the Fund 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 Fund distributes 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 will be reclassified to paid-in-capital.
4. CAPITAL SHARE TRANSACTIONS
The Fund has authorized an unlimited number of shares of each class with a par
value of $0.01. Transactions in shares of each class for the periods presented
were as follows:
<TABLE>
<CAPTION>
Period Ended June 30, 1997 (1) Year Ended December 31, 1996
Shares Amount Shares Amount
Institutional Shares:
<S> <C> <C> <C> <C>
Sold 288,382 $ 5,041,433 196,908 $ 3,119,256
Dividends and distributions
reinvested 0 0 203,848 3,359,418
Redeemed (329,844) (5,760,078) (398,665) (6,143,497)
--------- ------------- --------- --------------
Net increase (decrease) (41,462) $ (718,645) 2,091 $ 335,177
========= ============= ========= ==============
Investor Shares:
Sold 1,538,453 $ 27,154,722
Dividends and distributions
reinvested 0 0
Redeemed (161,636) (2,960,061)
--------- -------------
Net increase 1,376,817 $ 24,194,661
========= =============
</TABLE>
(1) Represents the six months ended June 30, 1997 for the Institutional Shares
and for the period from February 14, 1997 (inception of offering) to June
30, 1997 for the Investor Shares.
12
<PAGE>
5. LINE OF CREDIT
Subsequent to June 30, 1997, the Fund, along with certain other Berger Funds,
entered into an ongoing agreement with certain banks which allows the Berger
Funds, collectively, to borrow up to $150 million for temporary or emergency
purposes. In connection with the establishment of the line-of-credit, the Fund
paid $323 representing its pro-rata share of the origination fee totaling
$15,000. Since the line-of-credit was established, there have been no
borrowings.
6. CHANGE OF FISCAL YEAR AND INDEPENDENT AUDITORS
Effective April 11, 1997, the trustees of Berger Omni Investment Trust changed
the fiscal year end for the Fund from December 31 to September 30, and appointed
Price Waterhouse LLP as independent auditors for the fiscal year ended September
30, 1997.
7. OTHER MATTERS
A special meeting of shareholders of the Fund was held on February 13, 1997, at
which shareholders approved a number of actions which facilitated the Fund
becoming part of the Berger Funds family of mutual funds. The actions approved
included the following:
(a) election of ten new individuals as trustees of the Trust, each who also
serve as trustees of other Berger Funds;
(b) approval of a new Investment Advisory Agreement with Berger Associates,
Inc. ("Berger"), pursuant to which the Fund will pay Berger a fee at the
annual rate of 0.90% of the Fund's average daily net assets for its
services;
(c) approval of a new Sub-Advisory Agreement between Berger and Perkins, Wolf,
McDonnell & Company ("PWM"), pursuant to which Berger will pay PWM a fee at
the annual rate of 0.90% of the first $75 million of average daily net
assets of the Fund, 0.50% of the next $125 million, and 0.20% of any amount
in excess of $200 million for sub-advisory services.
(d) approval of amendments to the Trust's Declaration of Trust to permit the
establishment of multiple classes of shares.
13
<PAGE>
BERGER SMALL CAP VALUE FUND
INSTITUTIONAL SHARES
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
For a Share Outstanding Throughout the Period Ended
June 30, 1997 December 31,
(Unaudited) 1996 1995 1994 1993 1992
10
<PAGE>
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 16.48 $ 14.57 $ 12.75 $ 13.99 $ 13.39 $ 11.39
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 0.02 0.12 0.09 (0.01) 0.03 0.09
Net realized and unrealized
gain (loss) on investments 2.54 3.62 3.23 0.91 2.14 2.14
- --------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 2.56 3.74 3.32 0.90 2.17 2.23
- --------------------------------------------------------------------------------------------------------------------------------
Dividends:
Dividends from net investment
income 0.00 (0.11) (0.09) 0.00 (0.03) (0.10)
Dividends from net realized gain
on investments 0.00 (1.72) (1.41) (2.14) (1.54) (0.13)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends 0.00 (1.83) (1.50) (2.14) (1.57) (0.23)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value,
end of period $ 19.04 $ 16.48 $ 14.57 $ 12.75 $ 13.99 $ 13.39
================================================================================================================================
Total Return (%) 15.53 25.58 26.07 6.74 16.25 19.59
================================================================================================================================
Ratios/Supplemental Data:
Total net assets, end of
period (in thousands) $ 40,849 $ 36,041 $ 31,833 $ 18,270 $ 16,309 $ 14,007
Ratios to average net assets (%):
Expenses 1.44*~ 1.48 1.64 1.43 1.31 1.41
Net investment income (loss) 0.24~ 0.69 0.64 (0.04) 0.18 0.73
Portfolio turnover rate (%) 50 69 90 125 108 105
Average commission rate $ 0.0562 $ 0.1015 - - - -
</TABLE>
* Ratio reflects total expenses, including fees offset by earnings credits.
~ Annualized.
See notes to financial statements.
14
<PAGE>
BERGER SMALL CAP VALUE FUND
INVESTOR SHARES
FINANCIAL HIGHLIGHTS (UNAUDITED)
FOR A SHARE OUTSTANDING
THROUGHOUT THE PERIOD FROM FEBRUARY 14, 1997
(INCEPTION OF OFFERING)THROUGH JUNE 30, 1997
Net asset value, beginning of period $ 17.24
- ---------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 0.02
Net realized and unrealized gain (loss) on investments 1.77
- ---------------------------------------------------------------------------
Total from investment operations 1.79
- ---------------------------------------------------------------------------
Dividends:
Dividends from net investment income 0.00
Dividends from net realized gain on investments 0.00
- ---------------------------------------------------------------------------
Total dividends 0.00
- ---------------------------------------------------------------------------
Net asset value, end of period $ 19.03
===========================================================================
Total Return (%) 10.38
===========================================================================
Ratios/Supplemental Data:
Total net assets, end of period (in thousands) $ 26,197
Ratios to average net assets (%):
Expenses*~ 1.40
Net investment income (loss)~ 0.52
Portfolio turnover rate (%) 50
Average commission rate $ .0562
* Ratio reflects total expenses, including fees offset by earnings credits.
~ Annualized.
See notes to financial statements.
15
<PAGE>
TRUSTEES OF BERGER OMNI INVESTMENT 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 * GERARD M. LAVIN *
HARRY T. LEWIS, JR. * WILLIAM SINCLAIRE
OFFICERS:
GERARD M. LAVIN
President
KEVIN R. FAY
Vice President, Secretary and Treasurer
CRAIG D. CLOYED
Vice President
JANICE M. TEAGUE
Assistant Secretary
DAVID J. SCHULTZ
Assistant Treasurer
INVESTMENT ADVISOR
Berger Associates, Inc.
P.O. Box 5005
Denver, Colorado 80217
1-303-329-0200 or 1-800-333-1001
THE BERGER FUNDS
Together we can move mountains.(TM)
(C)1997 Berger Associates, Inc.
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