[LETTERHEAD OF BALLARD SPAHR ANDREWS & INGERSOLL]
November 17, 1997
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street NW
Washington, DC 20549
Re: The PBHG Funds, Inc.
Post-Effective Amendment No. 32
-------------------------------
Dear Sir or Madam:
Filed herewith electronically via EDGAR is Post-Effective
Amendment No. 32 to the Registration Statement on Form N-1A of The PBHG Funds,
Inc. The Amendment is being filed to fulfill an undertaking to update financial
statements with respect to the PBHG Mid-Cap Value and PBHG Small Cap Value
Funds.
Please call me at (215) 864-8202 if you have any
questions.
Sincerely,
/s/ Edward T. Searle
-----------------------
Edward T. Searle
<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
NOVEMBER 17, 1997.
1933 ACT REGISTRATION NO. 2-99810
1940 ACT REGISTRATION NO. 811-4391
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933
PRE-EFFECTIVE AMENDMENT NO.
POST-EFFECTIVE AMENDMENT NO. 32
AND
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 30
THE PBHG FUNDS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
32 SOUTH STREET
BALTIMORE, MARYLAND 21202
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (800) 443-0051
HAROLD J. BAXTER
PILGRIM BAXTER & ASSOCIATES, LTD.
1255 DRUMMERS LANE
SUITE 300
WAYNE, PENNSYLVANIA 19087-1590
(NAME AND ADDRESS OF AGENT FOR SERVICE)
Copies to:
JOHN M. ZERR, ESQ. WILLIAM H. RHEINER, ESQ.BALLARD SPAHR
PILGRIM BAXTER & ASSOCIATES, LTD. ANDREWS & INGERSOLL
GENERAL COUNSEL 1735 MARKET STREET, 51ST FLOOR
1255 DRUMMERS LANE, SUITE 300 PHILADELPHIA, PENNSYLVANIA 19103-7599
WAYNE, PENNSYLVANIA 19087-1590 (215) 864-8600
(610) 341-9000
<PAGE>
It is proposed that this filing will become effective:
X
- ----- immediately upon filing pursuant to paragraph (b)
- ----- on [date] pursuant to paragraph (b)
- ----- 60 days after filing pursuant to paragraph (a)
- ----- on [date] pursuant to paragraph (a) of Rule 485
- ----- 75 days after filing pursuant to paragraph (a)
If appropriate, check the following box:
- ----- This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Being Registered: Common Stock
<PAGE>
THE PBHG FUNDS, INC.
Contents of Registration Statement
This registration statement consists of the following:
Cover Sheet
Contents of Registration Statement
Cross Reference Sheet
Part A - Incorporated by Reference and Supplement to Prospectus
Part B - Incorporated by Reference and Financial Statements
Part C - Other Information
Signature Page
Powers of Attorney
Exhibits
<PAGE>
THE PBHG FUNDS, INC.
CROSS REFERENCE SHEET
(as required by Rule 495)
<TABLE>
<S> <C> <C>
PART A. Item No. and Captions Caption in Prospectus
1. Cover Page Cover Page
2. Synopsis Summary
3. Condensed Financial Information Expense Summary; Financial Highlights;
Supplement to Prospectus
4. General Description of Registrant The Fund and the Portfolios; Investment
Objectives and Policies; General Investment
Policies and Strategies; Risk Factors; Investment
Limitations; General Information - The Fund
5. Management of the Fund General Information - Directors of the Fund;
General Information - The Adviser and
Sub-Advisers; General Information - The
Administrator and Sub-Administrator; General
Information - The Transfer Agent and Sub
Transfer Agents; General Information - The
Distributor
6. Capital Stock and Other Securities General Information - Voting Rights;
General Information - Dividends and
Distributions; Taxes
7. Purchase of Securities Being Offered How to Purchase Fund Shares; How to Redeem
Fund Shares; Determination of Net Asset Value
8. Redemption or Repurchase How to Purchase Fund Shares; How to Redeem
Fund Shares; Determination of Net Asset Value
9. Pending Legal Proceedings Not Applicable
PART B. Item No. and Captions Caption in Statement of Additional Information
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History The Fund
13. Investment Objectives and Policies Description of Permitted Investments;
Investment Limitations; Description of Shares
14. Management of the Registrant Directors and Officers of the Fund; The
Administrator
15. Control Persons and Principal Holders of Securities Directors and Officers of the Fund; 5% and
25% Shareholders
16. Investment Advisory and Other Services The Adviser and Sub-Advisers; The
Administrator and Sub-Administrator; The
Distributor
17. Brokerage Allocation Portfolio Transactions
18. Capital Stock and Other Securities Description of Shares
19. Purchase, Redemption, and Pricing of Securities Purchase and Redemption of Shares;
Being Offered Determination of Net Asset Value
20. Tax Status Taxes
21. Underwriters The Distributor
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
22. Calculation of Yield Quotations Computation of Yield; Calculation of Total
Return
23. Financial Statements Financial Statements
Part C. Information required to be included in Part C is set forth
under the appropriate item, so numbered, in Part C of this
Registration Statement.
</TABLE>
<PAGE>
PART A
In addition to the Supplement set forth herein, pursuant to Rule 411 under the
Securities Act of 1933, as amended, and Rules 0-4 and 8b-23 under the Investment
Company Act of 1940, as amended, the information required to be included in Part
A of this Registration Statement is incorporated by reference to the Prospectus
dated June 30, 1997, as filed in electronic format via EDGAR with the Securities
and Exchange Commission (the "Commission") on July 10, 1997.
<PAGE>
THE PBHG FUNDS, INC.
SUPPLEMENT DATED NOVEMBER 17, 1997
TO THE PROSPECTUS FOR THE PBHG CLASS SHARES DATED JUNE 30, 1997,
This Supplement updates certain information contained in the above-dated
Prospectus with respect to the PBHG Mid-Cap Value Fund and the PBHG Small Cap
Value Fund.
The Financial Highlights table set forth in this Supplement with respect to the
PBHG Mid-Cap Value Fund and the PBHG Small Cap Value Fund should be considered
to be included in the table presented on pages 6 and 7 of the Prospectus.
You may obtain copies of the Prospectus free of charge, by calling
1-800-433-0051.
<PAGE>
For the period ended September 30, 1997
Financial Highlights
For a Share Outstanding Throughout the Period
<TABLE>
<CAPTION>
The PBHG Funds, Inc.
Unaudited
Net Net Net
Asset Realized and Distributions Distributions Asset Assets
Value Net Unrealized from Net from Value End
Beginning Investment Gains or Losses Investment Capital End Total of Period
of Period Income (Loss) on Securities Income Gains of Period Return (000)
--------- ------------- --------------- ------------- ------------- --------- ------ ---------
- -------------------------
PBHG Mid-Cap Value Fund
- -------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 -- $4.30 -- -- $14.30 43.00% $29,769
- -------------------------
PBHG Small Cap Value Fund
- -------------------------
1997(1) $10.00 -- $4.55 -- -- $14.55 45.50% $59,236
<CAPTION>
Ratio
Ratio of Net
Ratio of Expenses Income (Loss)
Ratio of Net to Average to Average
of Expenses Income (Loss) Net Assets Net Assets Portfolio Average
to Average to Average (Excluding (Excluding Turnover Commission
Net Assets Net Assets Waivers) Waivers) Rate Rate(2)
- -------------------------
PBHG Mid-Cap Value Fund
- -------------------------
<S> <C> <C> <C> <C> <C> <C>
1.50% -(0.10)% 1.52% -(0.12)% 144.93% $0.0545
- -------------------------
PBHG Small Cap Value Fund
- -------------------------
1.50% 0.01% 1.51% (0.00)% 97.58% $0.0530
</TABLE>
* Annualized.
Total returns have not been annualized.
(1) The PBHG Mid-Cap Value and PBHG Small Cap Value Funds commenced operations
on May 1, 1997
(2) Average commission rate paid per share for security purchases and sales
during the period.
<PAGE>
PART B
In addition to the information set forth herein, pursuant to Rule 411 under the
Securities Act of 1933, as amended, and Rules 0-4 and 8b-23 under the Investment
Company Act of 1940, as amended, the information required to be included in Part
B of this Registration Statement is incorporated by reference to the Statement
of Additional Information dated May 20, 1997, as revised July 21, 1997, as filed
in electronic format via EDGAR with the Commission on July 21, 1997.
The financial statements set forth below with respect to the PBHG Mid-Cap Value
Fund and the PBHG Small Cap Value Fund are added to the Financial Statements
section in the Statement of Additional Information.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
As of September 30, 1997
PBHG - MID CAP VALUE
- ---------------------------------------------------------------------------------------------------------------
Market
Description Shares Value (000)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks - 94.4%
BASIC MATERIALS - 11.0%
CHEMICALS & ALLIED PRODUCTS - 1.2%
ARCO CHEMICAL 7,600 $346
- ---------------------------------------------------------------------------------------------------------------
346
- ---------------------------------------------------------------------------------------------------------------
NON-FERROUS METALS & MINING - 2.4%
COMMONWEALTH INDUSTRIES INCORPORATED 30,000 578
TITANIUM METALS* 4,000 149
- ---------------------------------------------------------------------------------------------------------------
727
- ---------------------------------------------------------------------------------------------------------------
PAPER - 0.7%
JEFFERSON SMURFIT* 10,000 200
- ---------------------------------------------------------------------------------------------------------------
200
- ---------------------------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 1.5%
LUBRIZOL 10,600 445
- ---------------------------------------------------------------------------------------------------------------
STEEL - 5.2%
BRITISH STEEL PLC ADR 13,900 405
NS GROUP* 27,000 874
OREGON STEEL MILLS 10,100 274
- ---------------------------------------------------------------------------------------------------------------
1,553
- ---------------------------------------------------------------------------------------------------------------
Total Basic Materials (Cost $3,144) 3,271
- ---------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 21.7%
AEROSPACE & EQUIPMENT - 1.6%
AAR 4,500 150
PRECISION CASTPARTS 3,300 215
RMI TITANIUM* 2,400 60
SUNDSTRAND 800 46
- ---------------------------------------------------------------------------------------------------------------
471
- ---------------------------------------------------------------------------------------------------------------
BUILDING & CONSTRUCTION - 5.3%
CENTEX 4,900 286
LAFARGE 16,100 519
LONE STAR INDUSTRIES 6,800 367
U S G* 8,500 408
- ---------------------------------------------------------------------------------------------------------------
1,580
- ---------------------------------------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC - 5.7%
AVX 1,500 49
ESSEX INTERNATIONAL* 40,000 1,540
TEKTRONIX 1,400 94
- ---------------------------------------------------------------------------------------------------------------
1,683
- ---------------------------------------------------------------------------------------------------------------
MACHINERY & INSTRUMENTATION - 7.4%
CHICAGO BRIDGE & IRON-NY SHR 4,200 87
COLTEC INDUSTRIES* 12,400 268
DENISON INTL PLC-ADR* 23,000 437
INGERSOLL RAND 11,500 495
JLK DIRECT DISTRIBUTION, CL A* 5,400 162
MSC INDUSTRIAL DIRECT* 1,900 87
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
PARKER-HANNIFIN 8,850 398
TRINITY INDUSTRIES 5,800 280
- ---------------------------------------------------------------------------------------------------------------
2,214
- ---------------------------------------------------------------------------------------------------------------
POLLUTION CONTROLS - 1.7%
KENNAMETAL 10,300 500
- ---------------------------------------------------------------------------------------------------------------
500
- ---------------------------------------------------------------------------------------------------------------
Total Capital Goods (Cost $6,123) 6,448
- ---------------------------------------------------------------------------------------------------------------
CONSUMER CYCLICAL - 9.4%
AUTO & RELATED - 1.5%
DANA 4,400 217
EATON 800 74
INTERNATIONAL TOTAL SERVICES* 10,000 153
- ---------------------------------------------------------------------------------------------------------------
444
- ---------------------------------------------------------------------------------------------------------------
FURNITURE/APPLIANCES - 0.2%
O'SULLIVAN INDUSTRIES HOLDINGS* 5,600 70
- ---------------------------------------------------------------------------------------------------------------
70
- ---------------------------------------------------------------------------------------------------------------
LEISURE TIME - 1.4%
ROYAL CARIBBEAN CRUISES LIMITED 9,400 411
- ---------------------------------------------------------------------------------------------------------------
411
- ---------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING - 1.4%
SAFEGUARD SCIENTIFICS* 3,000 88
SCRIPPS CO E.W., CL A 3,300 145
WASHINGTON POST, CL B 400 179
- ---------------------------------------------------------------------------------------------------------------
412
- ---------------------------------------------------------------------------------------------------------------
RETAIL-DEPARTMENT STORES - 1.3%
DILLARDS INCORPORATED, CL A 4,600 202
MEYER (FRED)* 3,300 176
- ---------------------------------------------------------------------------------------------------------------
378
- ---------------------------------------------------------------------------------------------------------------
RETAIL-SPECIALTY - 1.8%
PROFFITTS* 1,600 95
ROSS STORES 4,000 136
TJX COMPANIES l0,100 309
- ---------------------------------------------------------------------------------------------------------------
540
- ---------------------------------------------------------------------------------------------------------------
RUBBER - 1.8%
COOPER TIRE AND RUBBER 19,900 529
- ---------------------------------------------------------------------------------------------------------------
529
- ---------------------------------------------------------------------------------------------------------------
Total Consumer Cyclical (Cost $2,597) 2,784
- ---------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3%
FOOD, HOUSE & PERSONAL PRODUCTS - 1.7%
PILGRIMS PRIDE 32,000 476
TYSON FOODS 2,000 47
- ---------------------------------------------------------------------------------------------------------------
523
- ---------------------------------------------------------------------------------------------------------------
TOBACCO - 0.6%
UNIVERSAL - VIRGINIA 4,600 167
- ---------------------------------------------------------------------------------------------------------------
167
- ---------------------------------------------------------------------------------------------------------------
Total Consumer Staples (Cost $617) 690
- ---------------------------------------------------------------------------------------------------------------
ENERGY - 8.8%
GEOPHYSICAL SERVICE COMPANY - 0.6%
VERITAS DGC* 4,100 174
- ---------------------------------------------------------------------------------------------------------------
NATURAL GAS PIPELINES - 0.9% 174
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
CAL DIVE INTERNATIONAL* 7,000 261
- ---------------------------------------------------------------------------------------------------------------
261
- ---------------------------------------------------------------------------------------------------------------
OIL & GAS DOMESTIC - 0.3%
MONTERY RESOURCES 4,700 99
- ---------------------------------------------------------------------------------------------------------------
99
- ---------------------------------------------------------------------------------------------------------------
OIL & GAS PIPELINES - 1.5%
VALERO ENERGY 13,300 436
- ---------------------------------------------------------------------------------------------------------------
436
- ---------------------------------------------------------------------------------------------------------------
OIL & GAS SERVICES - 3.3%
BJ SERVICES* 5,200 386
OFFSHORE LOGISTICS* 13,000 234
TIDEWATER 1,800 107
TUBOSCOPE* 4,000 125
WEATHERFORD ENTERRA* 2,700 144
- ---------------------------------------------------------------------------------------------------------------
996
- ---------------------------------------------------------------------------------------------------------------
OIL WELL CONTRACT DRILLING - 0.5%
ENSCO INTERNATIONAL 3,600 142
- ---------------------------------------------------------------------------------------------------------------
142
- ---------------------------------------------------------------------------------------------------------------
OILS-DOMESTIC - 1.7%
OCEAN ENERGY* 2,500 172
OCEANEERING INTERNATIONAL* 3,900 93
SUN COMPANY 5,400 237
- ---------------------------------------------------------------------------------------------------------------
502
- ---------------------------------------------------------------------------------------------------------------
Total Energy (Cost $2,121) 2,610
- ---------------------------------------------------------------------------------------------------------------
FINANCE - 11.0%
FINANCE-INSURANCE - 4.6%
MID OCEAN LTD 3,300 209
CMAC INVESTMENT 5,300 284
LIBERTY FINANCIAL COMPANIES 3,200 168
MERCURY GENERAL 3,000 262
OLD REPUBLIC INTERNATIONAL 8,500 332
TORCHMARK 2,900 114
- ---------------------------------------------------------------------------------------------------------------
1,369
- ---------------------------------------------------------------------------------------------------------------
FINANCE-INVESTMENT - 2.5%
AMVESCAP PLC SPONSORED ADR* 2,500 169
ARM FINANCIAL GROUP* 1,900 45
BEAR STEARNS 900 40
EDWARDS A G 2,800 144
GATX 4,200 284
MGIC INVESTMENT 1,300 74
- ---------------------------------------------------------------------------------------------------------------
756
- ---------------------------------------------------------------------------------------------------------------
FINANCE-MONEY CENTER BANKS - 1.6%
BANK PLUS* 4,000 51
COAST SAVINGS FINANCIAL* 1,300 68
DIME BANCORP 16,600 348
- ---------------------------------------------------------------------------------------------------------------
FINANCE-REGIONAL BANKS - 1.1% 467
- ---------------------------------------------------------------------------------------------------------------
AUST & NZ BNKG GRP-SPON ADR* 900 37
FIRST OF AMERICA BANK 900 48
NATIONAL CITY 1,100 68
WESTAMERICA BANCORPORATION 1,000 87
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
WILMINGTON TRUST 1,500 82
- ---------------------------------------------------------------------------------------------------------------
322
- ---------------------------------------------------------------------------------------------------------------
REAL ESTATE/REITS - 1.2%
LASALLE PARTNERS* 10,700 374
- ---------------------------------------------------------------------------------------------------------------
374
- ---------------------------------------------------------------------------------------------------------------
Total Finance (Cost $2,921) 3,288
- ---------------------------------------------------------------------------------------------------------------
HEALTHCARE - 4.6%
DRUGS & HEALTH CARE - 4.6%
BERGEN BRUNSWIG 4,200 170
BEVERLY ENTERPRISES* 5,800 101
BINDLEY WESTERN INDUSTRIES 3,200 89
HILLENBRAND INDUSTRIES 1,000 45
ICN PHARMACEUTICALS 5,600 275
OCULAR SCIENCES* 7,000 162
SULZER MEDICA-SPONS ADR* 7,500 198
VIVUS 3,000 113
XOMED SURGICAL PRODUCTS* 11,000 218
- ---------------------------------------------------------------------------------------------------------------
1,371
- ---------------------------------------------------------------------------------------------------------------
Total Healthcare (Cost $1,138) 1,371
- ---------------------------------------------------------------------------------------------------------------
MISCELLANEOUS - 2.5%
DIVERSIFIED COMPANIES - 2.5%
ACCUSTAFF* 1,800 56
SEQUENT COMPUTER SYSTEMS* 28,000 695
- --------------------------------------------------------------------------------------------------------------
751
- --------------------------------------------------------------------------------------------------------------
Total Miscellaneous (Cost $815) 751
- --------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 14.7%
COMPUTERS/NETWORKING - 4.6%
BAY NETWORKS* 11,600 448
BOX HILL SYSTEMS* 8,000 140
IOMEGA* 7,600 198
SILICON GRAPHICS* 7,000 184
STRUCTURAL DYNAMICS RESEARCH* 5,000 128
VIEWLOGIC SYSTEMS* 11,200 267
- --------------------------------------------------------------------------------------------------------------
1,365
- --------------------------------------------------------------------------------------------------------------
ELECTRONICS & INSTRUMENT - 3.1%
FLEXTRONICS INTERNATIONAL LIMITED* 5,000 238
GALILEO INTERNATIONAL* 11,700 327
JETFAX* 11,000 94
KENT ELECTRONICS* 5,100 201
TECH DATA* 1,000 46
VIVID TECHNOLOGIES* 2,000 31
- --------------------------------------------------------------------------------------------------------------
937
- --------------------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES - 3.5%
AEHR TEST SYSTEMS* 5,000 89
CADENCE DESIGN SYSTEMS* 1,800 96
HMT TECHNOLOGY* 5,000 78
HON INDUSTRIES 1,000 58
INGRAM MICRO * 3,100 84
PIERCE LEAHY* 2,900 79
STORAGE TECHNOLOGY* 4,700 225
SUN MICROSYSTEMS* 4,000 187
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
WALLACE COMPUTER SERVICES 4,100 151
--------------------------------------------------------------------------------------------------------------
1,047
-------------------------------------------------------------------------------------------------------------
SOFTWARE/SOFTWARE SERVICE - 3.5%
AT HOME CORPORATION - SERIES A* 1,000 23
AXENT TECHNOLOGIES* 3,000 62
ELECTRONIC ARTS* 4,000 155
INSO* 4,000 50
INTUIT* 8,000 256
SIMULATION SCIENCES* 3,000 59
SOFTWARE ARTISTRY* 2,000 27
SYMANTEC* 18,000 409
-------------------------------------------------------------------------------------------------------------
1,041
-------------------------------------------------------------------------------------------------------------
Total Technology (Cost $4,124) 4,390
-------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.7%
TRANSPORTATION - 4.7%
ARNOLD INDUSTRIES 5,000 117
CNF TRANSPORTATION 4,500 196
ROADWAY EXPRESS 4,000 109
SEACOR MOLDINGS* 600 37
SOUTHWEST AIRLINES 15,400 492
USFREIGHTWAYS 10,000 336
YELLOW* 3,000 98
-------------------------------------------------------------------------------------------------------------
1,385
-------------------------------------------------------------------------------------------------------------
Total Transportation (Cost $1,251) 1,385
-------------------------------------------------------------------------------------------------------------
UTILITIES - 3.7%
UTILITIES-ELECTRICAL - 0.3%
HOUSTON INDUSTRIES 3,800 83
-------------------------------------------------------------------------------------------------------------
83
-------------------------------------------------------------------------------------------------------------
UTILITIES-NATURAL GAS UTILITIES - 3.4%
COLUMBIA GAS SYSTEM 3,400 238
NICOR 10,300 386
PEOPLES ENERGY 10,800 407
-------------------------------------------------------------------------------------------------------------
1,031
-------------------------------------------------------------------------------------------------------------
Total Utilities (Cost $1,087) 1,114
-------------------------------------------------------------------------------------------------------------
Total Common Stock
(Cost $25,938) 28,102
-------------------------------------------------------------------------------------------------------------
Repurchase Agreement - 6.1%
Lehman Brothers
5.36%, dated 09/30/97, matures 10/01/97, repurchase price
$1,817,747 (collateralized by U.S. Government Obligations: total
market value $1,873,443) $ 1,817 $ 1,817
-------------------------------------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $1,817) 1,817
-------------------------------------------------------------------------------------------------------------
Total Investments - 100.5%
(Cost $27,755) 29,919
-------------------------------------------------------------------------------------------------------------
</TABLE>
* - Non-income producing security
(A) - Tri-party repurchase agreement
ADR - American Depository Receipt
Cl - Class
<PAGE>
STATEMENT OF NET ASSETS
As of September 30, 1997
PBHG - SMALL CAP VALUE
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Market
Description Shares Value (000)
-----------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks-88.6%
BASIC MATERIALS-9.0%
NON-FERROUS METALS & MINING-3.7%
COMMONWEALTH INDUSTRIES 70,000 $ 1,348
MUELLER INDUSTRIES* 14,100 641
TITANIUM METALS* 5,000 186
-----------------------------------------------------------------------------------------------------
2,175
-----------------------------------------------------------------------------------------------------
PAPER-0.2%
JEFFERSON SMURFIT* 5,600 112
-----------------------------------------------------------------------------------------------------
112
-----------------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS-0.4%
LUBRIZOL 6,100 256
-----------------------------------------------------------------------------------------------------
256
-----------------------------------------------------------------------------------------------------
STEEL-4.7%
NS GROUP* 34,600 1,120
OREGON STEEL MILLS 34,600 938
SCHNITZER STEEL INDUSTRIES, CL A 14,000 471
SHAW GROUP* 12,800 281
-----------------------------------------------------------------------------------------------------
2,810
-----------------------------------------------------------------------------------------------------
Total Basic Materials (Cost $5,114) 5,353
-----------------------------------------------------------------------------------------------------
CAPITAL GOODS-15.8%
AEROSPACE & EQUIPMENT-3.3%
AAR 34,800 1,161
PRECISION CASTPARTS 1,500 98
RMI TITANIUM* 10,900 273
WYMAN-GORDAN COMPANY* 17,000 446
-----------------------------------------------------------------------------------------------------
1,978
-----------------------------------------------------------------------------------------------------
BUILDING & CONSTRUCTION-2.4%
CENTEX 3,800 222
LONE STAR INDUSTRIES 12,700 686
U S G* 10,800 517
-----------------------------------------------------------------------------------------------------
1,425
-----------------------------------------------------------------------------------------------------
ELECTRICAL & ELECTRONIC-6.5%
BARRINGER TECHNOLOGIES 89,400 950
ESSEX INTERNATIONAL* 75,000 2,887
-----------------------------------------------------------------------------------------------------
3,837
-----------------------------------------------------------------------------------------------------
MACHINERY & INSTRUMENTATION-3.2%
CHICAGO BRIDGE & IRON-NY SHR 8,400 174
DENISON INTL PLC-ADR* 12,000 228
GORMAN-RUPP 2,300 46
JLK DIRECT DISTRIBUTION, CL A* 14,200 425
MANITOWOC 10,200 364
MSC INDUSTRIAL DIRECT* 6,800 313
TRINITY INDUSTRIES 7,100 343
-----------------------------------------------------------------------------------------------------
1,893
-----------------------------------------------------------------------------------------------------
POLLUTION CONTROLS-0.4%
KENNAMETAL 5,100 247
-----------------------------------------------------------------------------------------------------
247
-----------------------------------------------------------------------------------------------------
Total Capital Goods (Cost $9,172) 9,380
-----------------------------------------------------------------------------------------------------
COMMUNICATIONS SERVICES-0.8%
UTILITIES-TELECOMMUNICATIONS-0.8%
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
TOWER SEMICONDUCTOR LIMITED* 22,400 445
----------------------------------------------------------------------------------------------------
445
----------------------------------------------------------------------------------------------------
Total Communications Services (Cost $397) 445
----------------------------------------------------------------------------------------------------
CONSUMER CYCLICAL-11.3%
AUTO & RELATED-0.6%
INTERNATIONAL TOTAL SERVICES* 18,000 275
SUPERIOR INDUSTRIES INTERNATIONAL 4,200 116
----------------------------------------------------------------------------------------------------
391
----------------------------------------------------------------------------------------------------
FURNITURE/APPLIANCES-0.5 %
O'SULLIVAN INDUSTRIES HOLDINGS* 22,900 286
----------------------------------------------------------------------------------------------------
286
---------------------------------------------------------------------------------------------------
LEISURE TIME-0.6%
ROYAL CARIBBEAN CRUISES LIMITED 6,000 262
SERVICO* 3,900 67
----------------------------------------------------------------------------------------------------
329
----------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING-0.5%
SAFEGUARD SCIENTIFICS* 10,400 304
----------------------------------------------------------------------------------------------------
304
----------------------------------------------------------------------------------------------------
RESTAURANTS-0.5 %
SONIC* 11,000 308
----------------------------------------------------------------------------------------------------
308
----------------------------------------------------------------------------------------------------
RETAIL-DEPARTMENT STORES-2.5%
CROSS-CONTINENT AUTO RETAILERS* 17,700 238
FOOTSTAR* 19,200 517
MEYER (FRED)* 5,500 293
NOVEL DENIM HOLDINGS STK* 6,000 162
STEIN MART* 8,000 262
----------------------------------------------------------------------------------------------------
1,472
----------------------------------------------------------------------------------------------------
RETAIL-SPECIALTY-5.4 %
CLAIRE'S STORES 3,200 72
FAMILY DOLLAR STORES 5,600 128
HANCOCK FABRICS 22,250 299
MAC FRUGALS BARGAINS CLOSE* 22,200 677
MAXIM GROUP* 26,900 437
PROFFITTS* 3,200 190
ROSS STORES 3,000 102
SHOPKO STORES 30,300 788
WINDMERE 20,600 490
----------------------------------------------------------------------------------------------------
3,183
----------------------------------------------------------------------------------------------------
RUBBER-0.2%
COOPER TIRE AND RUBBER 4,700 125
----------------------------------------------------------------------------------------------------
125
----------------------------------------------------------------------------------------------------
TEXTILES & APPAREL-0.5%
TEFRON LTD STK* 15,000 300
----------------------------------------------------------------------------------------------------
300
----------------------------------------------------------------------------------------------------
Total Consumer Cyclical (Cost $6,176) 6,698
----------------------------------------------------------------------------------------------------
CONSUMER STAPLES-2.1%
FOOD, HOUSE & PERSONAL PRODUCTS-0.8%
PILGRIMS PRIDE 12,800 190
PRIME MEDICAL SERVICES* 18,000 252
----------------------------------------------------------------------------------------------------
442
----------------------------------------------------------------------------------------------------
TOBACCO-1.3%
JR CIGAR* 16,300 570
UNIVERSAL - VIRGINIA 6,000 218
----------------------------------------------------------------------------------------------------
788
----------------------------------------------------------------------------------------------------
Total Consumer Staples (Cost $980) 1,230
----------------------------------------------------------------------------------------------------
ENERGY-1.7%
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
GEOPHYSICAL SERVICE COMPANY-0.3%
VERITAS DGC* 3,900 166
----------------------------------------------------------------------------------------------------
166
----------------------------------------------------------------------------------------------------
NATURAL GAS PIPELINES-0.1 %
CAL DIVE INTERNATIONAL* 2,000 74
----------------------------------------------------------------------------------------------------
74
----------------------------------------------------------------------------------------------------
OIL & GAS PIPELINES - 0.5%
VALERO ENERGY* 10,000 328
----------------------------------------------------------------------------------------------------
328
----------------------------------------------------------------------------------------------------
OIL & GAS SERVICES-0.5%
COMSTOCK RESOURCES* 10,900 126
MIDCOAST ENERGY RESOURCES 5,400 111
TUBOSCOPE* 2,000 63
----------------------------------------------------------------------------------------------------
300
----------------------------------------------------------------------------------------------------
OIL REFINING & MARKETING-0.1%
TESORO PETROLEUM* 2,600 47
----------------------------------------------------------------------------------------------------
47
----------------------------------------------------------------------------------------------------
OILS-DOMESTIC-0.2%
OCEANEERING INTERNATIONAL* 4,700 112
----------------------------------------------------------------------------------------------------
112
----------------------------------------------------------------------------------------------------
Total Energy (Cost $874) 1,027
----------------------------------------------------------------------------------------------------
FINANCE-16.3%
FINANCE-INSURANCE-4.2%
ALLIED GROUP 6,200 315
CMAC INVESTMENT 4,200 225
EXEL LIMITED 4,400 262
HCC INSURANCE HOLDINGS COMPANY 1,700 45
HSB GROUP 9,000 501
LIBERTY FINANCIAL COMPANIES 13,700 719
MERCURY GENERAL 5 000 438
----------------------------------------------------------------------------------------------------
2,505
----------------------------------------------------------------------------------------------------
FINANCE-INVESTMENT-0.6 %
ARM FINANCIAL GROUP* 14,200 338
----------------------------------------------------------------------------------------------------
338
----------------------------------------------------------------------------------------------------
FINANCE-MONEY CENTER BANKS-6.2%
BAYONNE BANCSHARES 34,000 425
CITY NATIONAL 3,200 102
COAST SAVINGS FINANCIAL* 8,900 467
FIRST COMMONWEALTH FINANCIAL 7,200 157
FIRST ESSEX BANCORP INC STK 28,000 571
FIRST INTERNATIONAL BANCORP* 15,000 269
ML BANCORP 35,000 958
PROVIDENT BANKSHARES 11,300 644
SOVEREIGN BANCORP 5,000 88
----------------------------------------------------------------------------------------------------
3,681
----------------------------------------------------------------------------------------------------
FINANCE-OTHER-0.8%
ORION CAPITAL 3,000 136
SIS BANCORP 10,100 351
----------------------------------------------------------------------------------------------------
487
----------------------------------------------------------------------------------------------------
FINANCE-REGIONAL BANKS 2.5%
ALBANK FINANCIAL 5,300 224
COLONIAL BANCGROUP 2,700 78
FFY FINANCIAL 9,000 251
HAMILTON BANK* 4,400 121
JACKSONVILLE BANCORP 20,000 345
MEDFORD SAVINGS BANK 7,700 277
PRIME BANCSHARES* 8,500 161
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
TRUSTCO BANK 1,200 33
----------------------------------------------------------------------------------------------------
1,490
----------------------------------------------------------------------------------------------------
REAL ESTATE/REITS-2.0%
COLONIAL PROPERTIES TRUST 10,700 320
CROSSMAN COMMUNITIES* 31,000 701
LASALLE PARTNERS* 4,000 140
----------------------------------------------------------------------------------------------------
1,161
----------------------------------------------------------------------------------------------------
Total Finance (Cost $8,427) 9,662
----------------------------------------------------------------------------------------------------
HEALTHCARE-6.3%
DRUGS & HEALTH CARE-6.3%
BEVERLY ENTERPRISES* 37,700 655
BINDLEY WESTERN INDUSTRIES 13,500 377
EAGLE GEOPHYSICAL* 3,000 59
JONES MEDICAL INDUSTRIES 14,000 441
OCULAR SCIENCES* 13,000 301
PHYMATRIX* 35,000 525
RESPIRONICS* 13,000 357
SULZER MEDICA-SPONS ADR* 5,000 132
VIVUS* 14,000 525
XOMED SURGICAL PRODUCTS* 18,000 358
----------------------------------------------------------------------------------------------------
3,730
----------------------------------------------------------------------------------------------------
Total Healthcare (Cost $3,323) 3,730
----------------------------------------------------------------------------------------------------
MISCELLANEOUS-3.2%
DIVERSIFIED COMPANIES-1.6%
SEQUENT COMPUTER SYSTEMS* 39,000 968
----------------------------------------------------------------------------------------------------
968
----------------------------------------------------------------------------------------------------
MISCELLANEOUS-1.6 %
PARTY CITY* 4,000 105
PRIME HOSPITALITY* 37,300 841
----------------------------------------------------------------------------------------------------
946
----------------------------------------------------------------------------------------------------
Total Miscellaneous (Cost $1,840) 1,914
----------------------------------------------------------------------------------------------------
TECHNOLOGY-13.0%
COMPUTERS/NETWORKING-0.5%
STRUCTURAL DYNAMICS RESEARCH* 5,000 128
VIEWLOGIC SYSTEMS* 6,000 143
----------------------------------------------------------------------------------------------------
271
----------------------------------------------------------------------------------------------------
ELECTRONICS & INSTRUMENT-5.0%
CABLE DESIGN TECHNOLOGIES* 6,800 259
FLEXTRONICS INTERNATIONAL LIMITED* 13,000 619
JETFAX* 42,000 357
KENT ELECTRONICS* 13,900 549
MELITA INTERNATIONAL* 12,000 141
METHODE ELECTRONICS CL A 3,500 90
METRIKA SYSTEMS* 8,300 132
S3* 9,000 106
SUMMIT DESIGN* 13,000 231
TRACOR* 12,000 369
VIVID TECHNOLOGIES* 7,000 109
----------------------------------------------------------------------------------------------------
2,962
----------------------------------------------------------------------------------------------------
OFFICE EQUIPMENT & SUPPLIES-3.8%
AEHR TEST SYSTEMS* 28,000 495
DAISYTEK INTERNATIONAL* 2,000 88
HMT TECHNOLOGY* 30,000 471
HON INDUSTRIES 4,000 232
PIERCE LEAHY* 17,100 464
WALLACE COMPUTER SERVICES 14,100 519
----------------------------------------------------------------------------------------------------
2,269
----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<S> <C>
SOFTWARE/SOFTWARE SERVICE-3.7%
AMERICAN POWER CONVERSION* 4,000 113
AT HOME CORPORATION - SERIES A* 1,000 23
AXENT TECHNOLOGIES* 3,700 77
COMPUCOM SYSTEMS* 39,000 361
INSO* 7,000 88
SIMULATION SCIENCES* 13,000 256
SOFTWARE ARTISTRY* 13,750 184
SYMANTEC* 31,600 719
VANSTAR* 23,500 357
----------------------------------------------------------------------------------------------------
2,178
----------------------------------------------------------------------------------------------------
Total Technology (Cost $7,012) 7,680
----------------------------------------------------------------------------------------------------
TRANSPORTATION-7.5%
TRANSPORTATION-7.5%
AIRBORNE FREIGHT 2,400 145
AMERICAN FREIGHTWAYS* 21,000 399
ARKANSAS BEST* 16,500 187
ARNOLD INDUSTRIES 7,000 164
AVONDALE INDUSTRIES* 3,000 79
CNF TRANSPORTATION 6,500 283
CONSOLIDATED FREIGHTWAYS* 2,500 44
COVENANT TRANSPORTATION, CL A* 35,000 630
GREENBRIER COMPANIES 53,900 903
GULFMARK OFFSHORE* 11,000 380
ROADWAY EXPRESS 14,000 383
SEACOR HOLDINGS* 2,000 124
USFREIGHTWAYS 16,000 538
YELLOW* 5,000 163
----------------------------------------------------------------------------------------------------
4,422
----------------------------------------------------------------------------------------------------
Total Transportation (Cost $3,948) 4,422
----------------------------------------------------------------------------------------------------
UTILITIES-1.6%
UTILITIES-NATURAL GAS UTILITIES-1.6%
BAY STATE GAS 7,000 204
CTG RESOURCES INC STK 7,900 183
PEOPLES ENERGY 11,900 448
WICOR 2,100 91
----------------------------------------------------------------------------------------------------
926
----------------------------------------------------------------------------------------------------
Total Utilities (Cost $916) 926
----------------------------------------------------------------------------------------------------
Total Common Stock
(Cost $48,179) 52,467
----------------------------------------------------------------------------------------------------
Repurchase Agreement-6.3%
Greenwich Agency
6.03%, dated 09/30/97, matures 10/01/97,
repurchase price $3,773,999 (collateralized by U.S. Government
obligations: total market value $3,850,942)(A) $ 3,774 $ 3,774
----------------------------------------------------------------------------------------------------
Total Repurchase Agreement
(Cost $3,774) 3,774
----------------------------------------------------------------------------------------------------
Total Investments-94.9%
(Cost $51,953) 56,241
----------------------------------------------------------------------------------------------------
</TABLE>
* Non-income producing security
(A) - Tri-party repurchase agreement
ADR - American Depository Receipt
Cl - Class
<PAGE>
THE PBHG FUNDS, INC.
Unaudited
Statement of Assets and Liabilities
September 30, 1997
PBHG
Mid-Cap Value
Fund(1)
(000)
-------------
Assets:
Investment securities (Cost $27,755) $ 29,919
Cash 107
Accrued Income 23
Receivable for capital shares sold 1,148
Receivable for investment securities sold 1,027
--------
Total assets 32,224
--------
Liabilities:
Payable for investment securities purchased 2,447
Accrued Expenses 8
--------
Total liabilities 2,455
--------
Net Assets:
Portfolio shares (authorized 200 million
shares - $0.001 par value) based on
2,081,818 outstanding shares of beneficial interest 26,473
Accumulated net investment loss (4)
Accumulated net realized gain on investments 1,136
Net unrealized appreciation on investments 2,164
--------
Net assets $ 29,769
========
Net Asset Value, Offering and Redemption Price Per Share $ 14.30
========
(1) PBHG Mid-Cap Value Fund commenced operations on May 1, 1997
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE PBHG FUNDS, INC.
Unaudited
Statement of Assets and Liabilities
September 30, 1997
<TABLE>
<CAPTION>
PBHG
Small Cap Value
Fund(1)
(000)
------------
Assets:
<S> <C>
Investment securities (Cost $37,626) $56,241
Cash 355
Accrued Income 57
Receivable for capital shares sold 3,417
Receivable for investment securities sold 2,745
-------
Total assets 62,815
-------
Liabilities:
Payable for investment securities purchased 3,579
-------
Total liabilities 3,579
-------
Net Assets:
Portfolio shares (authorized 200 million shares - $0.001 par value) based on
4,070,626 outstanding shares of beneficial interest 52,562
Accumulated net investment income 1
Accumulated net realized gain on investments 2,385
Net unrealized appreciation on investments 4,288
-------
Net assets $59,236
=======
Net Asset Value, Offering and Redemption Price Per Share $ 14.55
=======
(1) The PBHG Small Cap Value Fund commenced operations on May 1, 1997
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
The PBHG Funds, Inc.
Unaudited
Statement of Operations
For the period ended September 30, 1997
<TABLE>
<CAPTION>
PBHG PBHG
Mid-Cap Value Small Cap Value
Fund(1) Fund(1)
05/01/97 05/01/97
09/30/97 09/30/97
(000) (000)
----- -----
<S> <C> <C>
Investment Income:
Dividends $ 37 $ 77
Interest 22 42
------- ------
Total Investment Income 59 119
------- ------
Expenses:
Investment Advisory Fees 36 79
Waiver of Investment Advisory Fees (1) (1)
Administrative Fees 6 12
Custodian Fees 3 5
Professional Fees -- --
Transfer Agent Fees 12 14
Printing Fees 2 1
Directors' Fees -- --
Registration and Filing Fees 4 7
Insurance and Other Fees 1 1
Amortization of Deferred Organizational Costs -- --
Princing Fees -- --
------- ------
Total Expenses 63 118
------- ------
Net Investment Income (Loss) (4) $ 1
------- ------
Net Realized Gain from Security Transactions 1,136 2,386
Net Change in Unrealized Appreciation on Investments 2,164 4,288
------- ------
Net Realized and Unrealized Gain on Investments 3,300 6,674
------- ------
Increase in Net Assets Resulting from Operations $ 3,296 $6,675
======= ======
</TABLE>
1 The PBHG Mid-Cap Value and Small Cap Value Funds commenced operations on
May 1, 1997.
The accompanying notes are an integral part of the financial statements.
<PAGE>
The PBHG Funds, Inc.
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
For the period ended September 30, 1997
<TABLE>
<CAPTION>
PBHG PBHG
Mid-Cap Value Small Cap Value
Fund(1) Fund(1)
05/01/97 05/01/97
09/30/97 09/30/97
(000) (000)
------ -----
Investment Activities:
<S> <C> <C>
Net Investment Income (Loss) $ (4) $ 1
Net Realized Gain from Security Transactions 1,136 2,385
Net Change in Unrealized Appreciation on Investments 2,164 4,288
-------- --------
Net Increase in Net Assets Resulting from Operations 3,296 6,674
-------- --------
Distributions to Shareholders:
Net Investment Income -- --
Net Realized Gains -- --
-------- --------
Total Distributions
Capital Share Transactions: -- --
-------- --------
Shares Issued 41,630 70,904
Shares issued in Lieu of Cash Distributions -- --
Shares Redeemed (15,157) (18,342)
-------- --------
Increase in Net Assets Derived from Capital Share Transactions 26,473 52,562
-------- --------
Total Increase in Net Assets 29,769 59,236
-------- --------
Net Assets:
Beginning of Period -- --
-------- --------
End of Period $ 29,769 $ 59,236
======== ========
Shares Issued and Redeemed:
Shares Issued 3,249 5,460
Shares Issued in Lieu of Cash Distributions -- --
Shares Redeemed (1,167) (1,389)
-------- --------
Net Increase (Decrease) in Share Transactions 2,082 4,071
======== ========
</TABLE>
1 The PBHG Mid-Cap Value and Small Cap Value Funds commenced operations on
May 1, 1997.
The accompanying notes are an integral part of the financial statements.
<PAGE>
Notes To Financial Statements The PBHG Funds, Inc.
As of September 30, 1997
1. Organization
The PBHG Funds, Inc. (the "Fund"), a Maryland corporation, is registered under
the Investment Company Act of 1940, as amended, as a diversified open-end
management investment company with fourteen series: the PBHG Growth Fund (the
"Growth Fund"), the PBHG Emerging Growth Fund (the "Emerging Growth Fund"), the
PBHG Core Growth Fund (the "Core Growth Fund"), the PBHG Select Equity Fund (the
"Select Equity Fund"), the PBHG Large Cap Growth Fund (the "Large Cap Growth
Fund"), the PBHG Technology & Communications Fund (the "Technology &
Communications Fund"), the PBHG Limited Fund (the "Limited Fund"), the PBHG
Large Cap 20 Fund (the "Large Cap 20 Fund"), the PBHG Large Cap Value Fund (the
"Large Cap Value Fund"), the PBHG Mid-Cap Value Fund (the "Mid-Cap Value Fund"),
the PBHG Small Cap Value Fund (the "Small Cap Value Fund"), the PBHG Strategic
Small Company Fund ("the Strategic Small Company Fund"), the PBHG International
Fund (the "International Fund"), (collectively referred to as the "Equity
Portfolios"), and the PBHG Cash Reserves Fund (the "Cash Reserves Fund") (each a
"Portfolio" and, collectively, the "Portfolios"). Each Portfolio's prospectus
provides a description of the Portfolio's investment objectives, policies and
strategies. The Fund is registered to offer two classes of shares, PBHG Class
and Trust Class. Currently the Trust Class of shares is only offered by the
Growth Fund. The assets of each Portfolio are segregated, and a shareholder's
interest is limited to the Portfolio in which shares are held.
2. Significant Accounting Policies
The following is a summary of the significant accounting policies followed by
the Portfolios.
Security Valuation - Investment securities of the Equity Portfolios that are
listed on a securities exchange for which market quotations are available are
valued at the last quoted sales price on each business day. If there is no such
reported sale, these securities and unlisted securities for which market
quotations are readily available, are valued at the mean between the most recent
bid and asked prices. Short-term investments may be valued at amortized cost
which approximates market value. Foreign securities in the International Fund
are valued based upon quotations from the primary market in which they are
traded. The values of investment securities held by the Cash Reserves Fund are
stated at amortized cost, which approximates market value. Under this valuation
method, acquisition discounts and premiums are accreted and amortized ratably to
maturity and are included in interest income.
Security Transactions and Investment Income - Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Dividend income and distributions to shareholders are recognized on the
ex-dividend date; interest income is recognized on the accrual basis. Costs used
in determining realized capital gains and losses on the sale of investment
securities are those of the specific securities sold adjusted for the accretion
and amortization of acquisition discounts and premiums during the respective
holding periods.
Dividends - Dividends from net investment income for the Equity Portfolios are
declared annually, if available. Dividends from net investment income for the
Cash Reserves Fund are declared daily and paid monthly. Distributions of net
realized capital gains, for all portfolios, are generally made to shareholders
annually.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital or accumulated net realized gain, as
appropriate, in the period that the differences arise.
Federal Income Taxes - It is each Portfolio's intention to qualify or continue
to qualify as a regulated investment company for Federal income tax purposes and
to distribute all of its taxable income and net capital gains. Accordingly, no
provision has been made for Federal income taxes.
Net Asset Value Per Share - The net asset value per share is calculated each
business day by dividing the total value of each Portfolio's assets, less
liabilities, by the number of shares outstanding.
Repurchase Agreements - Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements and procedures adopted by
Pilgrim Baxter & Associates, Ltd. (the "Adviser") ensure that the market value
of the collateral including accrued interest thereon, is sufficient in the event
of default by the counterparty. If the counterparty defaults and the value of
the collateral declines, or if the counterparty enters into insolvency
proceedings, realization of the collateral by a Portfolio may be delayed or
limited.
Foreign Currency Translation - The books and records of the International Fund
are maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars on the following basis:
(I) market value of investment securities, other assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of such
transactions.
<PAGE>
The International Fund does not isolate that portion of gains and losses on
investment securities that is due to changes in the foreign exchange rates from
that which is due to changes in market prices of such securities.
The International Fund reports gains and losses on foreign currency related
transactions as components of realized gains for financial reporting purposes,
whereas such components are treated as ordinary income or loss for Federal
income tax purposes.
Forward Foreign Currency Exchange Contracts - In connection with portfolio
purchases and sales of securities denominated in a foreign currency, the PBHG
International Fund may enter into forward foreign currency exchange contracts.
Foreign currency exchange contracts are recorded at market value. Certain risks
may arise upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts. Realized gains or losses
arising from such transactions are included in net realized gain (loss) from
foreign currency transactions.
Other - Expenses that are directly related to one of the Portfolios are charged
directly to that Portfolio. Other operating expenses are prorated to the
Portfolios on the basis of relative net assets. Class specific expenses, such as
12b-1 distribution fees, are borne by that class. Income, other expenses and
realized and unrealized gains and losses of a Portfolio are allocated to the
respective class on the basis of the relative net assets each day.
All organizational costs incurred with the start up of the Emerging Growth Fund,
the Core Growth Fund, the Select Equity Fund, the Large Cap Growth Fund, the
Technology & Communications Fund, the Limited Fund, the Large Cap 20 Fund, the
Large Cap Value Fund, the Mid-Cap Value Fund, the Small Cap Value Fund, the
Strategic Small Company Fund, the International Fund and the Cash Reserves Fund
are being amortized on a straight line basis over a period of sixty months. In
the event that any of the initial shares of the Portfolio are redeemed by any
holder thereof during the period that the Portfolio is amortizing its
organizational costs, the redemption proceeds payable to the holder thereof will
be reduced by the unamortized organizational costs in the same ratio as the
number of initial shares being redeemed bears to the number of initial shares
outstanding at the time of redemption.
Use of Estimates in the Preparation of Financial Statements - The preparation of
financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect
the reported amount of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the reporting period. Actual results
could differ from those estimates.
3. Investment Advisory Fees, Administrative Fees and Other Transactions with
Affiliates
The Fund and the Adviser are parties to an Investment Advisory Agreement (the
"Advisory Agreement"). Under the terms of the Advisory Agreement, the Adviser is
paid a monthly fee at an annual rate of 0.85 % of the average daily net assets
of the Growth, Emerging Growth, Core Growth, Select Equity, Technology &
Communications, Large Cap 20 and Mid-Cap Value Funds, 0.75% of the average daily
net assets of the Large Cap Growth Fund, 1.00% of the average daily net assets
of the Limited, Small Cap Value, Strategic Small Company and International
Funds, 0.65 % of the average daily net assets of the Large Cap Value Fund and
0.30% of the average daily net assets of the Cash Reserves Fund.
In the interest of limiting expenses of the Portfolios, the Adviser has entered
into expense limitation agreements with the Fund ("Expense Limitation
Agreements"), with respect to Core Growth, Technology & Communications, Limited,
Large Cap 20, Large Cap Value, Mid-Cap Value, Small Cap Value, Strategic Small
Company and International Fund, pursuant to which the Adviser has agreed to
waive or limit its fees and to assume other expenses of the Portfolios to the
extent necessary to limit the total annual expenses (expressed as a percentage
of the Portfolios' average daily net assets) to 1.50% for the Core Growth,
Technology & Communications, Limited, Large Cap 20, Large Cap Value, Mid-Cap
Value, Small Cap Value and Strategic Small Company and 2.25% for the
International Fund. Reimbursement by the Portfolios of the advisory fees waived
or limited and other expenses paid by the Adviser pursuant to the Expense
Limitation Agreements may be made at a later date when the Portfolios have
reached a sufficient asset size to permit reimbursement to be made without
causing the total annual expenses rate of each Portfolio to exceed 1.50% for the
Core Growth, Technology & Communications, Limited, Large Cap 20, Large Cap
Value, Mid-Cap Value, Small Cap Value and Strategic Small Company and 2.25% for
the International Fund. Consequently, no reimbursement by a Portfolio will be
made unless: (i) the Portfolio's assets exceed $75 million; (ii) the Portfolio's
total annual expense ratio is less than 1.50% for the Core Growth, Technology &
Communications, Limited, Large Cap 20, Large Cap Value, Mid-Cap Value, Small Cap
Value and Strategic Small Company Funds and 2.25% for the International Fund,
and (iii) the payment of such reimbursement was approved by the Board of
Directors on a quarterly basis.
Newbold's Asset Management, Inc. ("Newbold") serves as the sub-adviser to the
Large Cap Value Fund, the Mid-Cap Value Fund, the Small Cap Value Fund and the
Strategic Small Company Fund. For its services provided pursuant to its
Investment Sub-Advisory Agreement with the Adviser and the Fund, Newbold
receives a fee from the Adviser at an annual rate of 0.40%, 0.50%, 0.65% and
0.30%, respectively, of the average daily net assets of the Large Cap Value
Fund, the Mid-Cap Value Fund, the Small Cap Value Fund and the Strategic Small
Company Fund. Newbold receives no fees directly from the Large Cap Value Fund,
the Mid-Cap Value Fund, the Small Cap Value Fund, or the Strategic Small Company
Fund.
Murray Johnstone International, Ltd. ("Murray Johnstone") serves as the
sub-adviser to the International Fund. For its services provided pursuant to its
Investment Sub-Advisory Agreement with the Adviser and the Fund, Murray
Johnstone receives a fee from the
<PAGE>
Adviser at an annual rate of 0.50% of the International Fund's average daily net
assets. Murray Johnstone receives no fees directly from the International Fund,
and may periodically reduce its sub-advisory fee.
Wellington Management Company, LLP ("WMC") serves as the sub-adviser to the Cash
Reserves Fund. For its services provided pursuant to the Investment Sub-Advisory
Agreement with the Adviser and the Fund, WMC is entitled to receive a fee from
the Adviser, computed daily and paid monthly, at an annual rate equal to 0.075%
of the Cash Reserves Fund's average daily net assets up to and including $500
million and 0.020% of the Cash Reserves Fund's average daily net assets over
$500 million, but subject to a minimum annual fee of $50,000. WMC may, from time
to time, waive all or a portion of its fee from the Adviser. WMC receives no
fees directly from the Cash Reserves Fund.
PBHG Fund Services (the "Administrator"), a wholly-owned subsidiary of the
Adviser, provides the Fund with administrative services, including regulatory
reporting and all necessary office space, equipment, personnel and facilities.
For these administrative services, the Administrator receives a fee, which is
calculated daily and paid monthly, at an annual rate of 0.15% of the average
daily net assets of each Portfolio.
SEI Financial Management Corporation, a wholly-owned subsidiary of SEI
Investments Company, is the owner of all beneficial interest in SEI Fund
Resources (the "Sub-Administrator"). The Sub-Administrator is an affiliate of
the Fund's distributor and assists the Administrator in providing administrative
services to the Fund. For acting in this capacity, the Administrator pays the
Sub-Administrator a fee at the annual rate of 0.07% of the average daily net
assets of each Portfolio with respect to $2.5 billion of the total average daily
net assets of the Fund, and a fee at the annual rate of 0.025% of the average
daily net assets of each Portfolio with respect to the total daily net assets of
the Fund in excess of $2.5 billion.
Prior to July 1, 1996, SEI Fund Resources acted as Administrator to the Funds.
For it services prior to July 1, 1996, SKI Fund Resources received an annual fee
with respect to each Portfolio equal to the greater of $75,000 or 0.20% of the
average daily net assets of the Portfolio.
The Fund and SEI Financial Services Company (the "Distributor") are parties to a
Distribution Agreement. The Distributor receives no fees for its distribution
services in connection with distribution of the PBHG Class. The Trust has
adopted a Distribution Plan (the "Plan") on behalf of the Trust Class shares
pursuant to Rule 12b-1 under the Investment Company Act of 1940. The Plan
provides for the payment by the Funds to the Distributor of up to 0.25% of the
average daily net assets of the Trust Class shares. Currently only the Growth
Fund has Trust Class shareholders.
DST Systems, Inc. serves as the transfer agent, dividend disbursing agent and
shareholder servicing agent of the Fund. From time to time, the Fund may pay
amounts to third parties that provide sub-transfer agency and other
administrative services relating to the Fund to persons who beneficially own
interests in the Fund. CoreStates Bank, N.A. serves as the custodian for the
Growth Fund, the Emerging Growth Fund, the Core Growth Fund, the Select Equity
Fund, the Large Cap Growth Fund, the Technology & Communications Fund, the
Limited Fund, the Large Cap 20 Fund, the Large Cap Value Fund, the Mid-Cap Value
Fund, the Small Cap Value Fund, the Strategic Small Company Fund, and the Cash
Reserves Fund. The Northern Trust Company serves as the custodian for the
International Fund.
Certain officers and directors of the Fund who are or were officers of the
Adviser, Administrator, Sub-Administrator and the Distributor received no
compensation from the Fund.
4. Investment Transactions
The cost of securities purchased and the proceeds from securities sold, other
than short-term investments, for the Equity Portfolios for the period ended
September 30, 1997 were as follows:
Purchases Sales
(000) (000)
Mid-Cap Value Fund 39,399 14,598
Small Cap Value Fund 65,097 19,303
The aggregate gross unrealized appreciation and depreciation of securities held
by the Portfolios and the total cost of securities for Federal income tax
purposes at September 30, 1997 are as follows:
<PAGE>
<TABLE>
<CAPTION>
Total Cost
Net of of Securities
Unrealized for Federal
Unrealized Unrealized Appreciation/ Income Tax
Appreciation Depreciation (Depreciation) Purposes
(000) (000) (000) (000)
------------ ------------ -------------- --------
<S> <C> <C> <C> <C>
Mid-Cap
Value Fund 2,425 (261) 2,164 27,755
Small Cap
Value Fund 4,938 (650) 4,288 51,953
</TABLE>
5. Concentration of Credit Risk
The Cash Reserves Fund invests primarily in a portfolio of money market
instruments maturing in 397 days or less whose ratings are within one of the two
highest ratings categories assigned by a nationally recognized statistical
rating agency, or, if not rated, are believed to be of comparable quality. The
ability of the issuers of the securities held by the portfolio to meet their
obligations may be affected by economic developments in a specific industry,
state or region.
The International Fund invests in securities of foreign issuers in various
countries. These investments may involve certain considerations and risks not
typically associated with investments in the United States, as a result of,
among other factors, the possibility of future political and economic
developments and the level of governmental supervision and regulation of
securities markets in the respective countries.
<PAGE>
PART C: OTHER INFORMATION
<TABLE>
<S> <C>
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
Part A - Prospectus:
The Financial Highlights table concerning the PBHG Mid-Cap Value Fund and the PBHG Small Cap Value Fund
are contained in the Supplement filed herewith.
Part B - Statement of Additional Information:
The following financial statements concerning each of the PBHG Mid-Cap Value Fund and the PBHG Small
Cap Value Fund are filed herewith:
Statement of Net Assets as of September 30, 1997
Statement of Assets and Liabilities as of September 30, 1997
Statement of Operations for the period ended September 30, 1997
Notes to Financial Statements as of September 30, 1997
The audited financial statements of The PBHG Funds, Inc. as of and for the fiscal year ended March
31, 1997, are incorporated by reference into the Statement of Additional Information under "Financial
Statements."
<S> <C> <C>
(b) Exhibits:
1(a) Certificate of Incorporation(1)
1(b) Certificate of Amendment dated October 28, 1985(2)
1(c) Certificate of Amendment to Certificate of Incorporation(3)
1(d) Agreement and Articles of Merger of PBHG Growth Fund, Inc., a Maryland corporation(5)
1(e) Articles of Incorporation of The PBHG Funds, Inc.(5)
1(f) Articles of Amendment to the Articles of Incorporation of The PBHG Funds, Inc., dated
November 12, 1993(6)
1(g) Articles of Amendment to the Articles of Incorporation of The PBHG Funds, Inc. dated May 5,
1994(7)
1(h) Articles of Amendment to the Articles of Incorporation of The PBHG Funds, Inc. dated December
28, 1995(12)
1(i) Articles of Amendment to the Articles of Incorporation of the PBHG Funds, Inc. dated June 30,
1997(17)
1(j) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated May 25,
1994(7)
1(k) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated December
5, 1994(8)
1(l) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated December
9, 1994(8)
1(m) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated August
21, 1995(16)
1(n) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated December
28, 1995(12)
</TABLE>
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<TABLE>
<S> <C> <C>
1(o) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated December
28, 1995(12)
1(p) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated May 20,
1996(13)
1(q) Articles Supplementary to the Articles of Incorporation of THE PBHG Funds, Inc. dated July 1,
1996(13)
1(r) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated September
6, 1996(13)
1(s) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated October
2, 1996(14)
1(t) Articles Supplementary to the Articles of Incorporation of The PBHG Funds, Inc. dated January
31, 1997(15)
1(u) Certificate of Correction dated October 30, 1997, with respect to Articles Supplementary dated
December 28, 1995
1(v) Certificate of Correction dated October 30, 1997, with respect to Articles Supplementary dated
October 2, 1996
2 By-Laws(5)
3 Voting trust agreement - none
4 Specimen Common Stock Certificate(1)
5(a) Investment Advisory Agreement dated April 28, 1995 and Schedule A dated April 1, 1997(16)
5(b) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of the
PBHG Cash Reserves Fund, Pilgrim Baxter & Associates, Ltd. and Wellington Management
Company dated April 4, 1995(12)
5(c) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of the
International Fund, Pilgrim Baxter & Associates, Ltd. and Murray Johnstone International Limited
dated June 30, 1995(12)
5(d)(1) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of
PBHG Large Cap Value Fund, Pilgrim Baxter & Associates, Ltd. and Newbold's Asset
Management, Inc. dated December 16, 1996 (as revised effective May 1, 1997)(16)
5(d)(2) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of
PBHG Strategic Small Company Fund, Pilgrim Baxter & Associates, Ltd. and Newbold's Asset
Management, Inc. dated December 16, 1996(16)
5(d)(3) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of
PBHG Mid-Cap Value Fund, Pilgrim Baxter & Associates, Ltd. and Newbold's Asset Management,
Inc. dated April 1, 1997(16)
5(d)(4) Investment Sub-Advisory Agreement between and among The PBHG Funds, Inc., on behalf of
PBHG Small Cap Value Fund, Pilgrim Baxter & Associates, Ltd. and Newbold's Asset
Management, Inc. dated April 1, 1997(16)
6(a) Distribution Agreement between The PBHG Funds, Inc. and SEI Financial Services Company
dated July 1, 1996 and Schedule A dated April 1, 1997(16)
6(b) Form of Selling Group Agreement(4)
7 Bonus, profit sharing or pension plans - none
8(a) Custodian Agreement between The PBHG Funds, Inc., on behalf of the International Fund, and
The Northern Trust Company(16)
8(b) Custodian Agreement between The PBHG Funds, Inc. and CoreStates Bank, N.A. and Schedule
A dated April 1, 1997(16)
9(a) Transfer Agency Agreement between Registrant and Supervised Service Company dated December
16, 1993(6)
9(b) Administrative Services Agreement between The PBHG Funds, Inc. and PBHG Fund Services
dated July 1, 1996 and Exhibit A dated April 1, 1997(16)
</TABLE>
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<TABLE>
<S> <C> <C>
9(c) Sub-Administrative Services Agreement between The PBHG Funds, Inc. and SEI Fund Resources
dated July 1, 1996 and Schedule A dated April 1, 1997(16)
9(d)(1) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Core Growth
Fund and Pilgrim Baxter & Associates, Ltd. dated September 24, 1996(14)
9(d)(2) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Limited Fund
and Pilgrim Baxter & Associates, Ltd. dated September 24, 1996(14)
9(d)(3) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Large Cap 20
Fund and Pilgrim Baxter & Associates, Ltd. dated November 24, 1996(15)
9(d)(4) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Large Cap
Value Fund and Pilgrim Baxter & Associates, Ltd. dated December 16, 1996(15)
9(d)(5) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Strategic
Small Company Fund and Pilgrim Baxter & Associates, Ltd. dated December 16, 1996(15)
9(d)(6) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG International
Fund and Pilgrim Baxter & Associates, Ltd. dated March 6, 1997(16)
9(d)(7) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Mid-Cap
Value Fund and Pilgrim Baxter & Associates, Ltd. dated April 1, 1997(16)
9(d)(8) Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of PBHG Small Cap
Value Fund and Pilgrim Baxter & Associates, Ltd. dated April 1, 1997(16)
9(d)(9) Form of Expense Limitation Agreement between The PBHG Funds, Inc. on behalf of each
Portfolio with respect to its Advisor Class shares(17)
10 Opinion of Counsel - not applicable
11(a) Consent of Arthur Andersen LLP
11(b) Consent of Coopers & Lybrand L.L.P.
11(c) Consent of Ballard Spahr Andrews & Ingersoll
12 Financial Statements omitted from Part B - none
13 Letter from Philadelphia Life Insurance Company to the Registrant with respect to the initial
capitalization of the Registrant(2)
14(a) Southwestern Life Insurance Company Defined Benefit Pension Plan and Trust(1)
14(b) Adoption Agreement for Southwestern Life Insurance Company Standardized Integrated Defined
Benefit Pension Plan and Trust (with Pairing Provisions)(1)
14(c) Adoption Agreement for Southwestern Life Insurance Company Standardized Non-Integrated
Defined Benefit Pension Plan and Trust (with Pairing Provisions)(1)
14(d) Adoption Agreement for Southwestern Life Insurance Company Non-Standardized Integrated
Defined Benefit Pension Plan and Trust(1)
14(e) Adoption Agreement for Southwestern Life Insurance Company Non-Standardized Non-Integrated
Defined Benefit Pension Plan and Trust(1)
14(f) Southwestern Life Insurance Company Combination Profit Sharing-Money Purchase Plan and
Trust(1)
14(g) Adoption Agreement for Southwestern Life Insurance Company Standardized Money Purchase
Plan and Trust (with Pairing Provisions)(1)
14(h) Adoption Agreement for Southwestern Life Insurance Company Standardized Profit Sharing Plan
and Trust (with Pairing Provisions)(1)
14(i) Adoption Agreement for Southwestern Life Insurance Company Non-Standardized Money Purchase
Plan and Trust(1)
14(j) Adoption Agreement for Southwestern Life Insurance Company Non-Standardized Profit Sharing
Plan and Trust(1)
14(k) Form 5305, Simplified Employee Pension-Individual Retirement Accounts Contribution
Agreement(1)
14(l) Form 5305-A, Individual Retirement Custodial Account(1)
14(m) Southwestern Life Insurance Company Tax Deferred Annuity Program Custodial Agreement(1)
14(n) Amendment to Application for Investment Plans under a 403(b)(7) Plan(9)
15 Plan pursuant to Rule 12b-1 with respect to Advisor Class shares(10)
</TABLE>
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<TABLE>
<S> <C> <C>
16 Schedule for computation of Performance Quotation provided in the Registration Statement(16)
18 Rule 18f-3 Multiple Class Plan dated November 20, 1995 and Schedule A dated April 1, 1997(16)
27 Financial Data Schedule
1 Incorporated herein by reference to Pre-Effective Amendment No. 1 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
2 Incorporated herein by reference to Pre-Effective Amendment No. 2 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
3 Incorporated herein by reference to Post-Effective Amendment No. 6 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
4 Incorporated herein by reference to Post-Effective Amendment No. 10 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
5 Incorporated herein by reference to Post-Effective Amendment No. 11 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
6 Incorporated herein by reference to Post-Effective Amendment No. 12 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
7 Incorporated herein by reference to Post-Effective Amendment No. 13 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
8 Incorporated herein by reference to Post-Effective Amendment No. 14 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
9 Incorporated herein by reference to Post-Effective Amendment No. 19 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
10 Incorporated herein by reference to Post-Effective Amendment No. 21 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
11 Incorporated herein by reference to Post-Effective Amendment No. 22 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
12 Incorporated herein by reference to Post-Effective Amendment No. 23 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
13 Incorporated herein by reference to Post-Effective Amendment No. 24 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
14 Incorporated herein by reference to Post-Effective Amendment No. 25 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
15 Incorporated herein by reference to Post-Effective Amendment No. 27 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
16 Incorporated herein by reference to Post-Effective Amendment No. 30 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
</TABLE>
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<PAGE>
<TABLE>
<S> <C>
17 Incorporated herein by reference to Post-Effective Amendment No. 31 to Registrant's Registration Statement
on Form N-1A (File No. 2-99810).
</TABLE>
Item 25. Persons Controlled by or under Common Control with Registrant
There are no persons that are controlled by or under common control with the
Registrant.
Item 26. Number of Holders of Securities
As of October 31, 1997:
Title of Class Number of Record Holders
PBHG Class
PBHG Core Growth Fund 20,815
PBHG Emerging Growth Fund 73,652
PBHG Growth Fund 200,285
PBHG Large Cap Growth Fund 9,553
PBHG Large Cap 20 Fund 7,910
PBHG Limited Fund 8,983
PBHG Select Equity Fund 23,711
PBHG Mid-Cap Value Fund 1,560
PBHG Large Cap Value Fund 2,697
PBHG Small Cap Value Fund 2,689
PBHG International Fund 3,397
PBHG Strategic Small Company Fund 6,633
PBHG Technology & Communications Fund 34,807
PBHG Cash Reserves Fund 8,585
Advisor Class
PBHG Growth Fund 44
Item 27. Indemnification
The Articles of Incorporation of the Registrant include the following:
ARTICLE VII
7.4 Indemnification. The Corporation, including its successors and assigns,
shall indemnify its directors and officers and make advance payment of related
expenses to the fullest extent permitted, and in accordance with the procedures
required, by the General Laws of the State of Maryland and the Investment
Company Act of 1940, as amended ("1940 Act"). The By-Laws may provide that the
Corporation shall indemnify its employees and/or agents in any manner and within
such limits as permitted by applicable law. Such indemnification shall be in
addition to any other right or claim to which any director, officer, employee or
agent may otherwise be entitled. The Corporation may purchase and maintain
insurance on behalf of any person who is or was a director, officer, employee or
agent of the Corporation or is or was serving at the request of the Corporation
as a director, officer, partner, trustee, employee or agent of another foreign
or domestic corporation, partnership, joint venture, trust or other enterprise
or employee benefit plan, against any liability (including, with respect to
employee benefit plans, excise taxes) asserted against and incurred by such
person in any such capacity or arising out of such person's position, whether or
not the
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<PAGE>
Corporation would have had the power to indemnify against such liability. The
rights provided to any person by this Article 7.4 shall be enforceable against
the Corporation by such person who shall be presumed to have relied upon such
rights in serving or continuing to serve in the capacities indicated herein. No
amendment of these Articles of Incorporation shall impair the rights of any
person arising at any time with respect to events occurring prior to such
amendment.
The By-Laws of the Registrant include the following:
ARTICLE VI
Indemnification
"The Corporation shall indemnify (a) its Directors and
officers, whether serving the Corporation or at its
request any other entity, to the full extent required or
permitted by (i) Maryland law now or hereafter in force,
including the advance of expenses under the procedures and
to the full extent permitted by law, and (ii) the
Investment Company Act of 1940, as amended, and (b) other
employees and agents to such extent as shall be authorized
by the Board of Directors and be permitted by law. The
foregoing rights of indemnification shall not be exclusive
of any other rights to which those seeking indemnification
may be entitled. The Board of Directors may take such
action as is necessary to carry out these indemnification
provisions and is expressly empowered to adopt, approve
and amend from time to time such resolutions or contracts
implementing such provisions nor such further
indemnification arrangement as may be permitted by law."
Insofar as indemnification for liability arising under the Securities Act of
1933, as amended ("1933 Act") may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the 1933 Act and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a director, officer or
controlling person of the Registrant in the successful defense of any action,
suite or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the 1933 Act
and will be governed by the final adjudication of such issue.
To the extent that the Articles of Incorporation, By-Laws or any other
instrument pursuant to which the Registrant is organized or administered
indemnify any director or officer of the Registrant, or that any contract or
agreement indemnifies any person who undertakes to act as investment adviser or
principal underwriter to the Registrant, any such provision protecting or
purporting to protect such persons against any liability to the Registrant or
its security holders to which he would otherwise by subject by reason of willful
misfeasance, bad faith, or gross negligence, in the performance of his duties,
or by reason of his contract or agreement, will be interpreted and enforced in a
manner consistent with the provisions of Sections 17(h) and (i) of the 1940 Act,
as amended, and Release No. IC-11330 issued thereunder.
Item 28. Business and Other Connections of the Investment Adviser:
Other business, profession, vocation, or employment of a substantial nature in
which each director or principal officer of Pilgrim Baxter & Associates, Ltd.
and Newbold's Asset Management, Inc. is or has been, at any time during the last
two fiscal years, engaged for his own account or in the capacity of director,
officer, employee, partner or trustee are as follows:
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<PAGE>
<TABLE>
<CAPTION>
Name and Position with Connection with Other
Pilgrim Baxter & Associates, Ltd. Name of Other Company Company
--------------------------------- --------------------- ---------------------
<S> <C> <C>
Harold J. Baxter PBHG Fund Services Trustee
Director, Chairman & Chief
Executive Officer United Asset Management Member, Board of
Corporation Directors
Newbold's Asset Management, Director, Chairman and
Inc. Chief Executive Officer
Gary L. Pilgrim PBHG Fund Services Trustee
Director, President, Treasurer &
Chief Investment Officer
Brian F. Bereznak PBHG Fund Services President and Trustee
Chief Operating Officer
(from 1989 through 1996) Newbold's Asset Management, Director
Inc.
Eric C. Schneider Newbold's Asset Management, Chief Financial Officer
Chief Financial Officer Inc.
John M. Zerr Newbold's Asset Management, General Counsel and Secretary
General Counsel and Secretary Inc.
Name and Position
with Newbold's Asset Connection with Other
Management, Inc. Name of Other Company Company
-------------------- --------------------- ---------------------
Harold J. Baxter Pilgrim Baxter & Associates, Ltd. Director, Chairman & Chief
Director, Chairman and Executive Officer
Chief Executive Officer
PBHG Fund Services Trustee
United Asset Management Member, Board of Directors
Corporation
</TABLE>
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<PAGE>
<TABLE>
<S> <C> <C>
Brian F. Bereznak Pilgrim Baxter & Associates, Ltd. Chief Operating Officer
Director (from 1989 through 1996)
PBHG Fund Services President and Trustee
Gary L. Pilgrim Pilgrim Baxter & Associates, Ltd. Director, President, Treasurer &
Director Chief Investment Officer
PBHG Fund Services Trustee
James Farrell None None
Chief Investment Officer
David W. Jennings Pilgrim Baxter & Associates, Ltd. Director of Client Service
President & Chief
Operating Officer
Eric C. Schneider Pilgrim Baxter & Associates, Ltd. Chief Financial Officer
Chief Financial Officer
John M. Zerr Pilgrim Baxter & Associates, Ltd. General Counsel and Secretary
General Counsel and
Secretary
</TABLE>
The list required by this Item 28 of officers and directors of Murray Johnstone
International Limited, together with information as to any other business,
profession, vocation or employment of a substantial nature engaged in by such
officers and directors during the past two years, is incorporated by reference
to Schedules A and D of Form ADV, filed by Murray Johnstone International
Limited pursuant to the Investment Advisers Act of 1940, as amended ("Advisers
Act"), (SEC File No. 801-34926).
The list required by this Item 28 of officers and directors of Wellington
Management, together with information as to any other business, profession,
vocation or employment of a substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference to Schedules A
and D of Form ADV, filed by Wellington Management pursuant to the Advisers Act
(SEC File No. 801-15908).
Item 29. Principal Underwriters
(a) Furnish the name of each investment company (other than the
Registrant) for which each principal underwriter currently distributing
the securities of the Registrant also acts as a principal underwriter,
distributor or investment adviser.
Registrant's distributor, SEI Investments Distribution Co. (the
"Distributor") acts as distributor for:
SEI Daily Income Trust July 15, 1982
SEI Liquid Asset Trust November 29, 1982
SEI Tax Exempt Trust December 3, 1982
SEI Index Funds July 10, 1985
SEI Institutional Managed Trust January 22, 1987
SEI International Trust August 30, 1988
The Advisors' Inner Circle Fund November 14, 1991
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<PAGE>
The Pillar Funds February 28, 1992
CUFund May 1, 1992
STI Classic Funds May 29, 1992
CoreFunds, Inc. October 30, 1992
First American Funds, Inc. November 1, 1992
First American Investment Funds, Inc. November 1, 1992
The Arbor Fund January 28, 1993
Boston 1784 Funds (R) June 1, 1993
MarquisSM Funds August 17, 1993
Morgan Grenfell Investment Trust January 3, 1994
The Achievement Funds Trust December 27, 1994
Bishop Street Funds January 27, 1995
CrestFunds, Inc. March 1, 1995
STI Classic Variable Trust August 18, 1995
Ark Funds November 1, 1995
Monitor Funds January 11, 1996
FMB Funds, Inc. March 1, 1996
SEI Asset Allocation Trust April 1, 1996
TIP Funds April 28, 1996
SEI Institutional Investments Trust June 14, 1996
First American Strategy Funds, Inc. October 1, 1996
HighMark Funds February 15, 1997
Armada Funds March 8, 1997
PBHG Insurance Series Fund, Inc. April 1, 1997
Expedition Funds June 9, 1997
The Distributor provides numerous financial services to investment managers,
pension plan sponsors, and bank trust departments. These services include
portfolio evaluation, performance measurement and consulting services ("Funds
Evaluation") and automated execution, clearing and settlement of securities
transactions ("MarketLink").
(b) Furnish the information required by the following table with
respect to each director, officer or partner of each principal
underwriter named in the answer to Item 21 of Part B.
The principal business address of each person named in the table below is SEI
Investments Distribution Co., One Freedom Valley Road, Oaks, Pennsylvania 19456.
<TABLE>
<CAPTION>
Positions and Offices Positions and Offices
Name with Underwriter with Registrant
---- --------------------- ---------------------
<S> <C> <C>
Alfred P. West, Jr. Director, Chairman & Chief Executive Officer --
Henry H. Greer Director, President & Chief Operating Officer --
Carmen V. Romeo Director, Executive Vice President, President - --
Investment Advisory Group
Gilbert L. Beebower Executive Vice President --
Richard B. Lieb Executive Vice President, President -- Investment --
Services Division
</TABLE>
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<PAGE>
<TABLE>
<S> <C> <C>
Leo J. Dolan, Jr. Senior Vice President --
Carl A. Guarino Senior Vice President --
Larry Hutchinson Senior Vice President --
David G. Lee Senior Vice President --
Jack May Senior Vice President --
A. Keith McDowell Senior Vice President --
Dennis J. McGonigle Executive Vice President --
Hartland J. McKeown Senior Vice President --
Barbara J. Moore Senior Vice President --
Kevin P. Robins Senior Vice President, General Counsel & Secretary Vice President &
Assistant Secretary
Robert Wagner Senior Vice President --
Patrick K. Walsh Senior Vice President --
Marc H. Cahn Vice President & Assistant Secretary --
Robert Crudup Vice President & Managing Director --
Vic Galef Vice President & Managing Director --
Kim Kirk Vice President & Managing Director --
John Krzeminski Vice President & Managing Director --
Carolyn McLaurin Vice President &Managing Director --
Donald Pepin Vice President & Managing Director --
Mark Samuels Vice President & Managing Director --
Wayne M. Withrow Vice President & Managing Director --
Robert Aller Vice President --
Gordon W. Carpenter Vice President --
Todd Cipperman Vice President & Assistant Secretary --
Barbara Doyne Vice President --
Jeff Drennen Vice President --
Kathy Heilig Vice President & Treasurer --
Michael Kantor Vice President --
Samuel King Vice President --
Joanne Nelson Vice President --
W. Kelso Morrill Vice President --
</TABLE>
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<PAGE>
<TABLE>
<S> <C> <C>
Barbara A. Nugent Vice President & Assistant Secretary Vice President &
Assistant Secretary
Sandra K. Orlow Vice President & Assistant Secretary Vice President &
Assistant Secretary
Cynthia M. Parrish Vice President & Assistant Secretary --
Kim Rainey Vice President --
Steve Smith Vice President --
Daniel Spaventa Vice President --
Kathryn L. Stanton Vice President & Assistant Secretary Vice President &
Assistant Secretary
James Dougherty Director of Brokerage Services --
</TABLE>
c. None.
Item 30. Location of Accounts and Records
Books or other documents required to be maintained by Section 31(a) of the 1940
Act, and the rules promulgated thereunder, are maintained as follows:
(a) With respect to Rules 31a1(a); 31a-1(b)(1), (2)(a) and (b), (3), (6),
(8), (12); and 31a-1(d), the required books and records are maintained
at the offices of Registrant's Custodians:
CoreStates Bank, N.A. The Northern Trust Company
Broad and Chestnut Streets 50 South LaSalle Street
P.O. Box 7618 Chicago, IL 60675
Philadelphia, PA 19101
(b) With respect to Rules 31a-1(a); 31a-1(b)(1),(4); (2)(C) and (D); (4);
(5); (6); (8); (9); (10); (11) and 31a-1(f), the required books and
records are currently maintained at the offices of Registrant's
Sub-Administrator:
SEI Fund Resources
One Freedom Valley Road
Oaks, PA 19456
(c) With respect to Rules 31a-1(b)(5), (6), (9) and (10) and 31a-1(f), the
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<PAGE>
required books and records are maintained at the principal offices of
the Registrant's Adviser or Sub-Adviser:
Pilgrim Baxter & Associates, Ltd. Murray Johnstone
1255 Drummers Lane, Suite 300 International Limited
Wayne, PA 19087 11 West Nile Street
Glasgow, Scotland G12PX
Wellington Management Company, LLP Newbold's Asset Management, Inc.
75 State Street 950 Haverford Road
Boston, MA 02109 Bryn Mawr, PA 19010
Item 31. Management Services: None.
Item 32. Undertakings
Registrant undertakes to furnish each person to whom a prospectus is
delivered with a copy of the Registrant's latest annual report to Shareholders,
upon request and without charge.
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<PAGE>
Signatures
Pursuant to the requirements of the Securities Act of 1933, as amended, and the
Investment Company Act of 1940, as amended, the Registrant certifies that this
filing meets all of the requirements for effectiveness pursuant to Rule 485(b)
under the Securities Act of 1933 and the Registrant has duly caused this
Post-Effective Amendment No. 32 to its Registration Statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Wayne,
and Commonwealth of Pennsylvania on the 14th day of November, 1997.
THE PBHG FUNDS, INC.
Registrant
By:/s/ Harold J. Baxter
------------------------------------
Harold J. Baxter
Chairman and Chief Executive Officer
ATTEST:
/s/ Brian F. Bereznak
- ----------------------------------
Brian F. Bereznak, Vice President
and Assistant Secretary
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 32 to the Registration Statement has been signed below by the
following persons in the capacities and on the dates indicated.
<TABLE>
<S> <C> <C>
/s/ Harold J. Baxter Chairman, Chief
- ---------------------------- Executive Officer
Harold J. Baxter and Director November 14, 1997
* Director ------------
- ----------------------------
John R. Bartholdson
* Director ------------
- ----------------------------
Jettie M. Edwards
* Director ------------
- ----------------------------
Albert A. Miller
* Chief Financial
- ---------------------------- Officer and Controller ------------
Stephen G. Meyer
* By: /s/ Harold J. Baxter November 14, 1997
-----------------------
(Attorney-in-Fact)
Harold J. Baxter
</TABLE>
<PAGE>
POWER OF ATTORNEY
-----------------
We, the undersigned Directors of The PBHG Funds, Inc. (the "Company"),
whose signatures appear below, hereby make, constitute and appoint Harold J.
Baxter, John M. Zerr and William H. Rheiner, and each of them acting
individually, to be our true and lawful attorneys and agents, each of them with
the power to act without any other and with full power of substitution, to
execute, deliver and file in each undersigned Director's capacity as shown
below, any and all instruments that said attorneys and agents may deem necessary
or advisable to enable the Company to comply with the Securities Act of 1933, as
amended, including any and all pre-effective and post-effective amendments to
the Company's registration statement, and any rules, regulations, orders or
other requirements of the Securities and Exchange Commission thereunder in
connection with the registration of shares or additional shares of common stock
of the Company or any of its series or classes thereof, and the registration of
the Company or any of its series under the Investment Company Act of 1940, as
amended, including any and all amendments to the Company's registration
statement; and without limitation of the foregoing, the power and authority to
sign the name of the Company on its behalf, and to sign the name of each such
Director on his or her behalf, and we hereby grant to said attorney or
attorneys, full power and authority to do and perform each and every act and
thing whatsoever as said attorney or attorneys may deem necessary or advisable
to carry out fully the intent of this Power of Attorney to the same extent and
with the same effect as if we might or could do personally in our capacity as
aforesaid and we ratify, confirm and approve all acts and things which said
attorney or attorneys might do or cause to be done by virtue of this Power of
Attorney and his and her signatures as the same may be signed by said attorney
or attorneys.
SIGNATURE TITLE DATE
- --------- ----- ----
/s/ Harold J. Baxter Director 10/10/97
- --------------------------- --------
Harold J. Baxter
/s/ John R. Bartholdson Director 10/10/97
- --------------------------- --------
John R. Bartholdson
/s/ Jettie M. Edwards Director 10/10/97
- --------------------------- --------
Jettie M. Edwards
/s/ Albert A. Miller Director 10/10/97
- --------------------------- --------
Albert A. Miller
<PAGE>
REPRESENTATION OF COUNSEL PURSUANT TO RULE
485(b) UNDER THE SECURITIES ACT OF 1933
We hereby represent that Post-Effective Amendment No. 32 to the
Registration Statement on Form N-1A of The PBHG Funds, Inc. (File No. 2-99810)
filed with the Securities and Exchange Commission under the Securities Act of
1933 and Amendment No. 30 under the Investment Company Act of 1940 (File No.
811-4391) contains no disclosure which would render it ineligible to become
effective pursuant to paragraph (b) of Rule 485 under the Securities Act of
1933.
/s/ Ballard Spahr Andrews & Ingersoll
---------------------------------------
Ballard Spahr Andrews & Ingersoll
<PAGE>
POWER OF ATTORNEY
-----------------
We, the undersigned Officers of The PBHG Funds, Inc. (the "Company"),
whose signatures appear below, hereby make, constitute and appoint Harold J.
Baxter, John M. Zerr and William H. Rheiner, and each of them acting
individually, to be our true and lawful attorneys and agents, each of them with
the power to act without any other and with full power of substitution, to
execute, deliver and file in each undersigned Officer's capacity as shown below,
any and all instruments that said attorneys and agents may deem necessary or
advisable to enable the Company to comply with the Securities Act of 1933, as
amended, including any and all pre-effective and post-effective amendments to
the Company's registration statement, and any rules, regulations, orders or
other requirements of the Securities and Exchange Commission thereunder in
connection with the registration of shares or additional shares of common stock
of the Company or any of its series under the Investment Company Act of 1940, as
amended, including any and all amendments to the Company's registration
statement; and without limitation of the foregoing, the power and authority to
sign the name of the Company on its behalf, and to sign the name of each such
Officer on his behalf and we grant to said attorney or attorneys, full power and
authority to do and perform each and every act and thing whatsoever as said
attorney or attorneys may deem necessary or advisable to carry out fully the
intent of this Power of Attorney to the same extent and with the same effect as
if we might or could do personally in our capacity as aforesaid and we ratify,
confirm and approve all acts and things which said attorney or attorneys might
do or cause to be done by virtue of this Power of Attorney and his signatures as
the same may be signed by said attorney or attorneys.
SIGNATURE TITLE DATE
- --------- ----- ----
/s/ Harold J. Baxter Chairman and Chief 10/10/97
- -------------------------- Executive Officer --------
Harold J. Baxter
/s/ Brian F. Bereznak Vice President and 10/10/97
- -------------------------- Assistant Secretary --------
Brian F. Bereznak
/s/ Stephen G. Meyer Chief Financial Officer 10/10/97
- -------------------------- and Controller --------
Stephen G. Meyer
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT LIST
Exhibit Number Description
-------------- -----------
<S> <C> <C>
1(u) Certificate of Correction dated October 30, 1997, with respect to Articles
Supplementary dated December 28, 1995
1(v) Certificate of Correction dated October 30, 1997, with respect to Articles
Supplementary dated October 2, 1996
11(a) Consent of Arthur Andersen LLP
11(b) Consent of Coopers & Lybrand L.L.P.
11(c) Consent of Ballard Spahr Andrews & Ingersoll
17 Financial Data Schedule
</TABLE>
<PAGE>
Exhibit 1(u)
THE PBHG FUNDS, INC.
CERTIFICATE OF CORRECTION
THE PBHG FUNDS, INC., a Maryland corporation registered as an open-end
investment company under the Investment Company Act of 1940 having its principal
office in the State of Maryland in Baltimore City (the "Corporation"), hereby
certifies to the State Department of Assessments and Taxation of Maryland that:
FIRST: The title of the document being corrected is ARTICLES
SUPPLEMENTARY to the Articles of Incorporation of The PBHG Funds, Inc., which
document was filed for record with the State Department of Assessments and
Taxation of Maryland on January 25, 1996 (the "Articles").
SECOND: Article Third of the Articles as filed reads as follows:
Third: The Corporation's Board of Directors in accordance with
Section 2-105(c) of the Maryland General Corporation Law and
Article V Section 5.4 of the Articles of Incorporation has
adopted a resolution classifying and redesignating the
Corporation's Six Billion Four Hundred Million (6,400,000,000)
shares of Common Stock, par value one tenth of one cent
($.001) per share, having an aggregate par value of Six
Million Four Hundred Thousand Dollars ($6,400,000), as set
forth below. Immediately prior to the classification, the
Three Billion Two Hundred Million (3,200,000,000) shares of
the Corporation's stock, par value one tenth of one cent
($.001) per share, having an aggregate par value of Three
Million Two Hundred Thousand Dollars ($3,200,000) all of which
previously classified shares of the Corporation's Common Stock
were designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund 200 million
PBHG Emerging Growth Fund 200 million
PBHG International Fund 200 million
PBHG Cash Reserves Fund 1 billion, 800 million
PBHG Select Equity Fund 200 million
PBHG Large Cap Growth Fund 200 million
PBHG Technology Growth Fund 200 million
PBHG Mid-Cap Growth Fund 200 million
<PAGE>
The Six Billion Four Hundred Million (6,400,000,000) shares of
the Corporation's Common Stock are classified and designated
as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 200 million
PBHG Emerging Growth Fund PBHG Class Shares 200 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Mid-Cap Growth Fund PBHG Class Shares 200 million
PBHG Growth Fund Advisers Class Shares 200 million
PBHG International Fund Advisers Class Shares 200 million
PBHG Cash Reserves Fund Advisers Class Shares 1 billion, 800 million
PBHG Select Equity Fund Advisers Class Shares 200 million
PBHG Large Cap Growth Fund Advisers Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Advisers Class Shares
PBHG Mid-Cap Growth Fund Advisers Class 200 million
Shares
THIRD: Article Third of the Articles as corrected reads as follows:
Third: The Corporation's Board of Directors in accordance with
Section 2-105(c) of the Maryland General Corporation Law and
Article V, Section 5.4 of the Articles of Incorporation has
adopted a resolution classifying and redesignating the
Corporation's Six Billion Four Hundred Million (6,400,000,000)
shares of Common Stock, par value one tenth of one cent
($.001) per share, having an aggregate par value of Six
Million Four Hundred Thousand Dollars ($6,400,000), as set
forth below. Immediately prior to the classification, the
Three Billion Two Hundred Million (3,200,000,000) shares of
the Corporation's stock, par value one tenth of one cent
($.001) per share, having an aggregate par value of Three
Million Two Hundred Thousand Dollars ($3,200,000) all of which
previously classified shares of the Corporation's Common Stock
were designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund 200 million
PBHG Emerging Growth Fund 200 million
PBHG International Fund 200 million
PBHG Cash Reserves Fund 1 billion, 800 million
PBHG Select Equity Fund 200 million
PBHG Large Cap Growth Fund 200 million
PBHG Technology Growth Fund 200 million
PBHG Mid-Cap Growth Fund 200 million
<PAGE>
The Six Billion Four Hundred Million (6,400,000,000) shares of
the Corporation's Common Stock are classified and designated
as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 200 million
PBHG Emerging Growth Fund PBHG Class Shares 200 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Mid-Cap Growth Fund PBHG Class Shares 200 million
PBHG Growth Fund Advisers Class Shares 200 million
PBHG Emerging Growth Fund Advisers Class 200 million
Shares
PBHG International Fund Advisers Class Shares 200 million
PBHG Cash Reserves Fund Advisers Class Shares 1 billion, 800 million
PBHG Select Equity Fund Advisers Class Shares 200 million
PBHG Large Cap Growth Fund Advisers Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Advisers Class Shares
PBHG Mid-Cap Growth Fund Advisers Class 200 million
Shares
The undersigned Vice President hereby acknowledges this Certificate of
Correction and the Articles which are the subject of the Certificate to be the
corporate act of the Corporation and states that to the best of his knowledge,
information and belief, the matters and facts set forth in this Certificate and
the Articles with respect to authorization and approval are true in all material
respects and that this statement is made under the penalties for perjury.
IN WITNESS WHEREOF, THE PBHG FUNDS, INC. has caused this Certificate of
Correction to be executed in its name and on its behalf by its Vice President
and witnessed by its General Counsel and Secretary on October 30 , 1997.
THE PBHG FUNDS, INC.
Witness:
/s/ John M. Zerr By: /s/ Brian F. Bereznak
- ----------------------------------- -----------------------------
John M. Zerr Brian Bereznak
General Counsel and Secretary Vice President
<PAGE>
Exhibit 1(v)
THE PBHG FUNDS, INC.
CERTIFICATE OF CORRECTION
THE PBHG FUNDS, INC., a Maryland corporation registered as an open-end
investment company under the Investment Company Act of 1940 having its principal
office in the State of Maryland in Baltimore City (the "Corporation"), hereby
certifies to the State Department of Assessments and Taxation of Maryland that:
FIRST: The title of the document being corrected is ARTICLES
SUPPLEMENTARY to the Articles of Incorporation of The PBHG Funds, Inc., which
document was filed for record with the State Department of Assessments and
Taxation of Maryland on October 15, 1996 (the "Articles").
SECOND: Article Third of the Articles as filed reads as follows:
Third: The Corporation's Board of Directors in accordance with
Section 2-105(c) of the Maryland General Corporation Law and
Article V Section 5.4 of the Articles of Incorporation has
adopted a resolution classifying and redesignating the
Corporation's Eight Billion Eight Hundred Million
(8,800,000,000) shares of Common Stock, par value one tenth of
one cent ($.001) per share, having an aggregate par value of
Eight Million Eight Hundred Thousand Dollars ($8,800,000), as
set forth below. Immediately prior to the classification,
Seven Billion Six Hundred Million (7,600,000,000) shares of
the Corporation's Common Stock, par value one tenth of one
cent ($.001) per share, having an aggregate par value of Seven
Billion Two Hundred Million Dollars ($7,600,000) all of which
previously classified shares of the Corporation's Common Stock
were designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 400 million
PBHG Emerging Growth Fund PBHG Class Shares 400 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Core Growth Fund PBHG Class Shares 200 million
PBHG Limited Fund PBHG Class Shares 200 million
PBHG Large Cap 20 Fund PBHG Class Shares 200 million
PBHG Growth Fund Trust Class Shares 200 million
<PAGE>
PBHG Emerging Growth Fund Trust Class Shares 200 million
PBHG International Fund Trust Class Shares 200 million
PBHG Cash Reserves Fund Trust Class Shares 1 billion, 800 million
PBHG Select Equity Fund Trust Class Shares 200 million
PBHG Large Cap Growth Fund Trust Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Trust Class Shares
PBHG Core Growth Fund Trust Class Shares 200 million
PBHG Limited Fund Trust Class Shares 200 million
PBHG Large Cap 20 Fund Trust Class Shares 200 million
The Eight Billion Eight Hundred Million (8,800,000,000) shares of the
Corporation's Common Stock are classified and designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 400 million
PBHG Emerging Growth Fund PBHG Class Shares 400 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Core Growth Fund PBHG Class Shares 200 million
PBHG Limited Fund PBHG Class Shares 200 million
PBHG Large Cap 20 Fund PBHG Class Shares 200 million
PBHG Large Cap Value Fund PBHG Class Shares 200 million
PBHG Mid-Cap Value Fund PBHG Class Shares 200 million
PBHG Strategic Small Company Fund PBHG Class 200 million
Shares
PBHG Growth Fund Trust Class Shares 200 million
PBHG Emerging Growth Fund Trust Class Shares 200 million
PBHG International Fund Trust Class Shares 200 million
PBHG Cash Reserves Fund Trust Class Shares 1 billion, 800 million
PBHG Select Equity Fund Trust Class Shares 200 million
PBHG Large Cap Growth Fund Trust Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Trust Class Shares
PBHG Core Growth Fund Trust Class Shares 200 million
PBHG Limited Fund Trust Class Shares 200 million
PBHG Large Cap Fund Trust Class Shares 200 million
PBHG Large Cap Value Fund Trust Class Shares 200 million
PBHG Mid-Cap Value Fund Trust Class Shares 200 million
PBHG Strategic Small Company Fund Trust Class 200 million
Shares
<PAGE>
THIRD: Article Third of the Articles as corrected reads as follows:
Third: The Corporation's Board of Directors in accordance with
Section 2-105(c) of the Maryland General Corporation Law and
Article V, Section 5.4 of the Articles of Incorporation has
adopted a resolution classifying and redesignating the
Corporation's Eight Billion Eight Hundred Million
(8,800,000,000) shares of Common Stock, par value one tenth of
one cent ($.001) per share, having an aggregate par value of
Eight Million Eight Hundred Thousand Dollars ($8,800,000), as
set forth below. Immediately prior to the classification,
Seven Billion Six Hundred Million (7,600,000,000) shares of
the Corporation's Common Stock, par value one tenth of one
cent ($.001) per share, having an aggregate par value of Seven
Million Six Hundred Thousand Dollars ($7,600,000) all of which
previously classified shares of the Corporation's Common Stock
were designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 400 million
PBHG Emerging Growth Fund PBHG Class Shares 400 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Core Growth Fund PBHG Class Shares 200 million
PBHG Limited Fund PBHG Class Shares 200 million
PBHG Large Cap 20 Fund PBHG Class Shares 200 million
PBHG Growth Fund Trust Class Shares 200 million
PBHG Emerging Growth Fund Trust Class Shares 200 million
PBHG International Fund Trust Class Shares 200 million
PBHG Cash Reserves Fund Trust Class Shares 1 billion, 800 million
PBHG Select Equity Fund Trust Class Shares 200 million
PBHG Large Cap Growth Fund Trust Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Trust Class Shares
PBHG Core Growth Fund Trust Class Shares 200 million
PBHG Limited Fund Trust Class Shares 200 million
PBHG Large Cap 20 Fund Trust Class Shares 200 million
The Eight Billion Eight Hundred Million (8,800,000,000) shares of the
Corporation's Common Stock are classified and designated as follows:
Designation Number of Shares
----------- ----------------
PBHG Growth Fund PBHG Class Shares 400 million
PBHG Emerging Growth Fund PBHG Class Shares 400 million
PBHG International Fund PBHG Class Shares 200 million
PBHG Cash Reserves Fund PBHG Class Shares 1 billion, 800 million
PBHG Select Equity Fund PBHG Class Shares 200 million
PBHG Large Cap Growth Fund PBHG Class Shares 200 million
<PAGE>
PBHG Technology & Communications Fund 200 million
PBHG Class Shares
PBHG Core Growth Fund PBHG Class Shares 200 million
PBHG Limited Fund PBHG Class Shares 200 million
PBHG Large Cap 20 Fund PBHG Class Shares 200 million
PBHG Large Cap Value Fund PBHG Class Shares 200 million
PBHG Mid-Cap Value Fund PBHG Class Shares 200 million
PBHG Strategic Small Company Fund PBHG Class 200 million
Shares
PBHG Growth Fund Trust Class Shares 200 million
PBHG Emerging Growth Fund Trust Class Shares 200 million
PBHG International Fund Trust Class Shares 200 million
PBHG Cash Reserves Fund Trust Class Shares 1 billion, 800 million
PBHG Select Equity Fund Trust Class Shares 200 million
PBHG Large Cap Growth Fund Trust Class 200 million
Shares
PBHG Technology & Communications Fund 200 million
Trust Class Shares
PBHG Core Growth Fund Trust Class Shares 200 million
PBHG Limited Fund Trust Class Shares 200 million
PBHG Large Cap 20 Fund Trust Class Shares 200 million
PBHG Large Cap Value Fund Trust Class Shares 200 million
PBHG Mid-Cap Value Fund Trust Class Shares 200 million
PBHG Strategic Small Company Fund Trust Class 200 million
Shares
The undersigned Vice President hereby acknowledges this Certificate of
Correction and the Articles which are the subject of the Certificate to be the
corporate act of the Corporation and states that to the best of his knowledge,
information and belief, the matters and facts set forth in this Certificate and
the Articles with respect to authorization and approval are true in all material
respects and that this statement is made under the penalties for perjury.
IN WITNESS WHEREOF, THE PBHG FUNDS, INC. has caused this Certificate of
Correction to be executed in its name and on its behalf by its Vice President
and witnessed by its General Counsel and Secretary on October 30 , 1997.
THE PBHG FUNDS, INC.
Witness:
/s/ John M. Zerr By: /s/ Brian F. Bereznak
- -------------------------------- ---------------------------
John M. Zerr Brian Bereznak
General Counsel and Secretary Vice President
<PAGE>
Exhibit 11(a)
[LETTERHEAD OF ARTHUR ANDERSEN LLP]
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
As independent public accountants, we hereby consent to all references to our
firm included in Post-Effective Amendment No. 32 to the Registration Statement
on Form N-1A of The PBHG Funds, Inc. (File No. 2-99810).
/s/ Arthur Andersen LLP
Philadelphia, PA
November 11, 1997
<PAGE>
Exhibit 11(b)
(COOPERS & LYBRAND L.L.P.)
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
We consent to the incorporation by reference in this Post-Effective Amendment
No. 32 to the Registration Statement under the Securities Act of 1933 on Form
N-1A (File No. 2-99810) of our report dated April 23, 1997 on our audit of the
financial statements and financial highlights of The PBHG Funds, Inc. as of and
for the year (or period ended) March 31, 1997 in the Statement of Additional
Information. We also consent to the reference to our Firm under the headings
"Financial Highlights" and "Counsel and Independent Accountants" in the
Prospectus and under the heading "Financial Statements" in the Statement of
Additional Information.
/s/ Coopers & Lybrand L.L.P.
------------------------------
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, PA
November 13, 1997
<PAGE>
Exhibit 11(c)
CONSENT OF COUNSEL
We hereby consent to the use of our name under the caption "General
Information - Counsel and Independent Public Accountants" in the Prospectus
incorporated by reference in Post-Effective Amendment No. 32 to the Registration
Statement on Form N-1A of The PBHG Funds, Inc. under the Securities Act of 1933
(File No. 2-99810) and Amendment No. 30 under the Investment Company Act of 1940
(File No. 811-4391).
/s/ Ballard Spahr Andrews & Ingersoll
---------------------------------------
Ballard Spahr Andrews & Ingersoll
Philadelphia, PA
November 14, 1997
<PAGE>
<TABLE> <S> <C>
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<CIK> 0000775180
<NAME> PBHG FUNDS INC.
<SERIES>
<NUMBER> 130
<NAME> MID-CAP VALUE
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> MAY-01-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 27755
<INVESTMENTS-AT-VALUE> 29919
<RECEIVABLES> 2175
<ASSETS-OTHER> 130
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 32224
<PAYABLE-FOR-SECURITIES> 2447
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8
<TOTAL-LIABILITIES> 2455
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 26473
<SHARES-COMMON-STOCK> 2082
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (4)
<ACCUMULATED-NET-GAINS> 1136
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2164
<NET-ASSETS> 29769
<DIVIDEND-INCOME> 37
<INTEREST-INCOME> 22
<OTHER-INCOME> 0
<EXPENSES-NET> 63
<NET-INVESTMENT-INCOME> (4)
<REALIZED-GAINS-CURRENT> 1136
<APPREC-INCREASE-CURRENT> 2164
<NET-CHANGE-FROM-OPS> 3296
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3249
<NUMBER-OF-SHARES-REDEEMED> 1167
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 29769
<ACCUMULATED-NII-PRIOR> 0
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<GROSS-EXPENSE> 64
<AVERAGE-NET-ASSETS> 10062
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 4.30
<PER-SHARE-DIVIDEND> 0
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</TABLE>
<TABLE> <S> <C>
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<CIK> 0000775180
<NAME> PBHG FUNDS INC.
<SERIES>
<NUMBER> 140
<NAME> SMALL CAP VALUE
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 5-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> MAY-01-1997
<PERIOD-END> SEP-30-1997
<INVESTMENTS-AT-COST> 51953
<INVESTMENTS-AT-VALUE> 56241
<RECEIVABLES> 6162
<ASSETS-OTHER> 412
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 62815
<PAYABLE-FOR-SECURITIES> 3579
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 3579
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 52562
<SHARES-COMMON-STOCK> 4071
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 1
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2385
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4288
<NET-ASSETS> 59236
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<NET-INVESTMENT-INCOME> 1
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<NET-CHANGE-FROM-OPS> 6674
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<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 5460
<NUMBER-OF-SHARES-REDEEMED> 1389
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 59236
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 79
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 119
<AVERAGE-NET-ASSETS> 18990
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 4.55
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
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