<PAGE>
BEA INVESTMENT FUNDS, INC.
INSTITUTIONAL GOVERNMENT FUND
153 EAST 53RD STREET
NEW YORK, NY 10022
- - --------------------------------------------------------------------------------
OFFICERS AND DIRECTORS
Richard H. Francis Michael A. Pignataro
Chairman of the Board, Vice President
President and Chief
Executive Officer Mark Silverstein
Vice President
Desmond G. FitzGerald
Director Hal Liebes
Secretary
Robert G. Stone, Jr.
Director Paul P. Stamler
Treasurer
Bruce N. Lehmann
Director John M. Corcoran
Assistant Treasurer
- - --------------------------------------------------------------------------------
INVESTMENT ADVISER
BEA Associates
153 East 53rd Street
New York, New York 10022
- - --------------------------------------------------------------------------------
ADMINISTRATOR
United States Trust Company of New York
73 Tremont Street Boston, Massachusetts 02108
- - --------------------------------------------------------------------------------
CUSTODIAN
United States Trust Company of New York
770 Broadway
New York, New York 10003
- - --------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT
United States Trust Company of New York
73 Tremont Street
Boston, Massachusetts 02108
(800) 545-5799
- - --------------------------------------------------------------------------------
LEGAL COUNSEL
Willkie Farr & Gallagher
153 East 53rd Street
New York, New York 10022
- - --------------------------------------------------------------------------------
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
160 Federal Street
Boston, Massachusetts 02110
- - --------------------------------------------------------------------------------
This report, including the financial statements herein, is transmitted to the
shareholders of the Institutional Government Fund for their information. This
is not a prospectus, circular or representation intended for use in the
purchase of shares of the Fund or any securities mentioned in this report.
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
BEA INVESTMENT FUNDS, INC.
INSTITUTIONAL GOVERNMENT FUND
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
SEMI-ANNUAL REPORT
June 30, 1995
<PAGE>
BEA Investment Funds, Inc.
Institutional Government Fund
- - -------
Dear Shareholders:
We are pleased to report on the activities of the Institutional Government Fund
(the "Fund") for the six-month period ended June 30, 1995. The net asset value
(NAV) of the Fund as of June 30, 1995 was $9.45, compared to an NAV of $9.00 at
December 31, 1994. As a result, the Fund's total return (assuming the
reinvestment of dividends) was 8.94%. In comparison, the Lehman Brothers
Government/ Mortgage Index generated a 11.04% return during the same period.
During the first half of 1995, interest rates fell over 150 basis points. Two
and three year securities fell the most, 190 basis points and 10-year
securities fell 162 basis points. Because the Federal Reserve did not ease
policy until July 6th, short term rates remained roughly unchanged through
June. As a result, the yield curve from cash to 10-year notes flattened 150
basis points. The 2-year note was trading about even yield with Fed Funds on
June 30th. This relationship would indicate that the market anticipates further
easing of monetary policy. As a result of this market activity during the first
half, performance has reserved the trend of 1994 and turned in a strong
performance.
The rally during the first half of 1995 was caused by several forces and
largely unexpected by many fixed income investors. The initial fuel for the
rally was two fold; first it became apparent that the tighter monetary policy
of 1994 was working to slow down the economy and that easing may be necessary.
The second factor was substantial investing by foreign central banks, namely
Japan. In the past, central banks have typically invested in U.S. Treasury
Bills with their dollar purchases. Therefore, currency intervention had a
limited effect on bond markets. During 1995, however, this activity drove rates
lower because dollars were used to purchase two to five year Treasuries instead
(which unintentionally hurt the dollar). Because rates fell and many investors
were underweighted in bonds, they had to buy more bonds to return to a neutral
posture. This additional buying helped to cause the rally to be so dramatic.
Falling interest rates have had a significant effect on the mortgage market.
Because of lower interest rates, many investors became fearful of increased
prepayments and supply. This caused mortgage securities to underperform
comparable Treasury securities. By mid-June, mortgage securities had cheapened
and provided the best relative value seen since 1992.
One reason mortgage securities have become attractive is a result of the
market's volatility. Our expectation is the volatility will decline and
mortgages will perform well. Other factors that should benefit mortgages are
reduced supply in the fall and increased demand as prepayment fears decrease.
The Fund has been positioned in higher coupon securities to improve the yield.
This has caused performance to lag the index.
Looking forward, our investment strategy is to have the interest rate
exposure targeted to the benchmark. Mortgage positions will be adjusted to
improve diversification between most types of agency mortgage products, such as
balloons, 15-years and 30-years. As opportunities arise, positions will be
adjusted to benefit from pricing swings in the mortgage market.
We thank you for your interest in the Fund and would be pleased to respond to
your questions or comments.
Respectfully,
Mark Silverstein
Vice President
July 26, 1995
1
<PAGE>
PORTFOLIO OF INVESTMENTS (UNAUDITED)
- - -------
June 30, 1995
<TABLE>
<CAPTION>
Principal Value
Amount (Note A-1)
- - -------------------------------------------------------------------------------
- - ------------
MORTGAGE BACKED OBLIGATIONS (50.3%)
- - -------------------------------------------------------------------------------
- - ------------
<S> <C> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (34.0%)
Federal Home Loan
Mortgage Corporation:
Series 7-G REMIC
8.50%, 9/15/18 $ 989,571 $ 1,018,328
Series 32-C REMIC
9.50%, 3/15/20 2,000,000 2,222,500
Federal National
Mortgage Association:
Series 1990-31G REMIC
7.00%, 2/25/18 1,427,277 1,426,820
Series 1990-39H REMIC
8.95%, 11/25/18 2,000,000 2,106,240
Series 1990-93D REMIC
9.00%, 10/25/18 967,844 972,984
-----------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS 7,746,872
-----------
- - -------------------------------------------------------------------------------
- - ------------
FEDERAL HOME LOAN MORTGAGE ASSOCIATION (6.6%)
Various Pools:
9.00%, 5/1/21-8/1/21 1,451,248 1,512,462
-----------
- - -------------------------------------------------------------------------------
- - ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (9.0%)
Various Pools:
8.50%, 4/1/25-6/1/25 980,001 1,010,626
9.00%, 4/1/16 35,552 37,425
11.00%, 10/1/10 924,098 1,007,137
-----------
TOTAL FEDERAL NATIONAL
MORTGAGE ASSOCIATION 2,055,188
-----------
- - -------------------------------------------------------------------------------
- - ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.7%)
8.00%, 8/15/07 31,671 32,680
10.50%, 10/15/15 40,369 44,537
Various Pools:
11.00%, 9/15/10-9/15/15 65,127 72,311
-----------
TOTAL GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION 149,528
-----------
- - -------------------------------------------------------------------------------
- - ------------
TOTAL MORTGAGE BACKED OBLIGATIONS (Cost
$11,524,270) 11,464,050
-----------
- - -------------------------------------------------------------------------------
- - ------------
</TABLE>
<TABLE>
<CAPTION>
Value
Principal (Notes A-1
Amount and A-3)
- - -------------------------------------------------------------------------------
- - ------------
<S> <C> <C>
U.S. GOVERNMENT OBLIGATIONS (25.0%)
- - -------------------------------------------------------------------------------
- - ------------
U.S. TREASURY BONDS (9.4%)
9.00%, 11/15/18 $ 1,700,000 $ 2,149,174
-----------
- - -------------------------------------------------------------------------------
- - ------------
U.S. TREASURY NOTES (15.6%)
4.75%, 10/31/98 150,000 144,633
7.25%, 5/15/04 1,700,000 1,815,022
10.75%, 8/15/05 1,200,000 1,593,372
-----------
TOTAL U.S.
TREASURY
NOTES 3,553,027
-----------
- - -------------------------------------------------------------------------------
- - ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS (Cost $5,146,234) 5,702,201
-----------
- - -------------------------------------------------------------------------------
- - ------------
REPURCHASE AGREEMENT (24.3%)
- - -------------------------------------------------------------------------------
- - ------------
Sanwa Securities
Co.
5.90%, dated
6/30/95,
due 7/3/95, to
be repurchased
at $5,536,721,
collateralized
by $5,490,000,
U.S. Treasury
Notes, 6.125%,
due 7/31/96 ,
valued at
$5,644,776
(Cost 5,534,000) $ 5,534,000 5,534,000
-----------
- - -------------------------------------------------------------------------------
- - ------------
TOTAL INVESTMENTS
(99.6%) (Cost
$22,204,504) 22,700,251
-----------
- - -------------------------------------------------------------------------------
- - ------------
OTHER ASSETS IN
EXCESS OF
LIABILITIES
(0.4%) 77,757
-----------
- - -------------------------------------------------------------------------------
- - ------------
NET ASSETS (100%) $22,778,008
-----------
- - -------------------------------------------------------------------------------
- - ------------
</TABLE>
REMIC--Real Estate Mortgage Investment Conduit.
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
June 30, 1995
(Unaudited)
- - --------------------------------------------------------------------------------
<S> <C>
ASSETS:
Investments at Value
(Cost $16,670,504) (Note A-1)................................... $17,166,251
Repurchase Agreement at Value
(Cost $5,534,000) (Note A-3).................................... 5,534,000
Cash............................................................. 1,334
Receivables:
Interest (Note A-6).............................................. 188,633
Fund Shares Sold (Note F)........................................ 2,346
Investment Adviser (Note B)...................................... 2,306
Other Assets..................................................... 13,056
- - --------------------------------------------------------------------------------
Total Assets.................................................... 22,907,926
- - --------------------------------------------------------------------------------
LIABILITIES:
Payables:
Dividends (Note A-5)............................................. 120,514
Administrative Fees (Note C)..................................... 3,907
Other Liabilities................................................ 5,497
- - --------------------------------------------------------------------------------
Total Liabilities............................................... 129,918
- - --------------------------------------------------------------------------------
NET ASSETS........................................................ $22,778,008
===========
NET ASSETS CONSIST OF:
Paid in Capital.................................................. $23,616,702
Undistributed Net Investment Income.............................. 1,346
Accumulated Net Realized Loss.................................... (1,335,787)
Unrealized Appreciation on Investments........................... 495,747
-----------
NET ASSETS, applicable to 2,410,525 issued
and outstanding $.001 par value shares
(Authorized Shares 500,000,000).................................. $22,778,008
===========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE ($22,778,008/2,410,525
Shares Outstanding).............................................. $ 9.45
===========
CALCULATION OF MAXIMUM OFFERING PRICE
Net Asset Value Per Share........................................ $ 9.45
Sales Charge--2.50% of Public
Offering Price.................................................. 0.24
-----------
Maximum Offering Price Per Share................................. $ 9.69
- - --------------------------------------------------------------------------------
- - --------------------------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1995
(Unaudited)
- - ----------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME:
Interest Income (Note A-6).......................................... $ 765,021
- - ----------------------------------------------------------------------------------
EXPENSES:
Investment Advisory Fees (Note B)................................... 52,278
Organizational Expense (Note A-8)................................... 37,603
Professional Fees................................................... 28,183
Administrative Fees (Note C)........................................ 15,468
Directors' Fees and Expenses........................................ 10,696
Other............................................................... 16,130
- - ----------------------------------------------------------------------------------
Total Expenses..................................................... 160,358
- - ----------------------------------------------------------------------------------
Less: Expense Waived by Adviser (Note B)............................ (55,926)
- - ----------------------------------------------------------------------------------
Net Expenses....................................................... 104,432
- - ----------------------------------------------------------------------------------
Net Investment Income............................................. 660,589
- - ----------------------------------------------------------------------------------
Net Realized Gain on Investments (Note A-6).......................... 138,828
Change in Unrealized Appreciation/Depreciation on Investments........ 1,008,678
- - ----------------------------------------------------------------------------------
Net Realized Gain and Change in Unrealized Appreciation/Depreciation. 1,147,506
- - ----------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations................. $1,808,095
- - ----------------------------------------------------------------------------------
- - ----------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1995 Year Ended
(Unaudited) December 31, 1994
- - ---------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income..................... $ 660,589 $ 1,494,495
Net Realized Gain (Loss) on Investments... 138,828 (1,455,923)
Net Change in Unrealized
Appreciation/Depreciation on Investments. 1,008,678 (927,476)
- - ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RE-
SULTING FROM OPERATIONS................... 1,808,095 (888,904)
- - ---------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net Investment Income..................... (771,357) (1,382,381)
- - ---------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Proceeds from Subscriptions............... 5,696,950 5,642,390
Reinvestment of Dividends and Distribu-
tions.................................... 646,271 1,246,907
Cost of Redemptions....................... (5,087,252) (22,182,433)
- - ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) RESULTING FROM CAP-
ITAL SHARE TRANSACTIONS................... 1,255,969 (15,293,136)
- - ---------------------------------------------------------------------------------
Total Net Increase (Decrease) in Net As-
sets.................................... 2,292,707 (17,564,421)
- - ---------------------------------------------------------------------------------
NET ASSETS
Beginning of Period....................... 20,485,301 38,049,722
- - ---------------------------------------------------------------------------------
End of Period (including undistributed net
investment income of $1,346 and $112,114,
respectively)............................ $22,778,008 $ 20,485,301
- - ---------------------------------------------------------------------------------
- - ---------------------------------------------------------------------------------
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months
PER SHARE OPERATING Ended Year Ended December 31, Period Ended
PERFORMANCE: June 30, 1995 ------------------------- December 31,
(Unaudited) 1994 1993 1992 1991*
- - -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGIN-
NING OF PERIOD......... $ 9.00 $ 9.73 $ 10.01 $ 10.25 $ 9.75
- - -------------------------------------------------------------------------------------
Income from Investment
Operations:
Net Investment Income+. 0.29 0.53 0.47 0.56 0.71
Net Realized and
Unrealized Gain (Loss)
on Investments........ 0.50 (0.78) 0.43 (0.01) 0.67
- - -------------------------------------------------------------------------------------
Total from Investment
Operations............. 0.79 (0.25) 0.90 0.55 1.38
- - -------------------------------------------------------------------------------------
Distributions:
Net Investment Income.. (0.34) (0.48) (0.47) (0.56) (0.71)
Net Realized Gain...... -- -- (0.71) (0.23) (0.17)
- - -------------------------------------------------------------------------------------
Total Distributions..... (0.34) (0.48) (1.18) (0.79) (0.88)
- - -------------------------------------------------------------------------------------
NET ASSET VALUE, END OF
PERIOD................. $ 9.45 $ 9.00 $ 9.73 $ 10.01 $ 10.25
- - -------------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN
(1)++.................. 8.94%# (2.58)% 9.10% 5.52% 14.78%#
- - -------------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------------
RATIOS AND SUPPLEMENTAL
DATA:
Ratio of Expenses to Av-
erage Net Assets....... 1.00%** 0.96% 0.88% 0.99% 0.59%**
Ratio of Net Investment
Income to Average Net
Assets................. 6.32%** 5.45% 4.37% 5.66% 7.39%**
Portfolio Turnover Rate. 9.66% 201.23% 244.53% 371.19% 201.42%
Net Assets, End of Pe-
riod (000 omitted)..... $22,778 $20,485 $38,050 $66,630 $34,631
- - -------------------------------------------------------------------------------------
</TABLE>
* Reflects operations for the period from January 8, 1991 (commencement of
operations) to December 31, 1991.
** Annualized.
# Not annualized.
+ Net of waived fees and reimbursed expenses of $0.13, $0.02 per share for the
years ended December 31, 1991 and December 31, 1992, respectively and $0.02
for the six months ended June 30, 1995.
++ Total return for the years ended December 31, 1991, December 31, 1992 and
for the six months ended June 30, 1995 would have been lower if fees had not
been waived and reimbursed.
(1) Total return is calculated exclusive of sales charge.
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
A.ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES--BEA Investment Funds, Inc.
(the "Company") formerly CS First Boston Investment Funds, Inc. was
incorporated in Maryland on July 2, 1987 and its operations through July 27,
1988 were limited to its organization and registration as a diversified, open-
end investment company under the Investment Company Act of 1940. The
Institutional Government Fund (the "Fund") commenced operations on January 8,
1991.
The following significant accounting policies are in conformity with generally
accepted accounting principles for investment companies. Such policies are
consistently followed by the Fund in the preparation of financial statements.
1. SECURITY VALUATION: Investments for which the primary market is a national
securities exchange are valued at the last sale price on such exchange on
the day of valuation or, if no sale occurred on such day, at the mean of the
bid and asked prices on such day. Investments for which the primary market
is believed to be over-the-counter are valued at the mean of the most recent
quoted bid and asked prices provided by one or more principal market makers.
Securities or other assets for which market quotations are not readily
available are valued at their fair value as determined in good faith in
accordance with procedures adopted by the Board of Directors. U.S.
government obligations and other short-term obligations maturing in sixty
days or less are valued at amortized cost, which approximates market value.
2. FEDERAL INCOME TAXES: It is the Fund's intention to comply with the
requirements of the Internal Revenue Code to qualify as a regulated
investment company and distribute all of its taxable income and realized
gains to shareholders. Accordingly, no provision for Federal income taxes is
required.
The cost of investments for Federal income tax purposes amounted to
$22,204,504. The net unrealized depreciation on a Federal income tax basis
amounts to $495,747 and is comprised of appreciation of $629,446 and
depreciation of $133,699 at June 30, 1995.
For the year ended December 31, 1994, the Fund had capital loss
carryforwards totaling $1,300,447 which can be used to offset capital gains
until December 31, 2002. The Fund incurred $146,001 of post-October losses
during 1994. A tax election was made to defer such losses until January 1,
1995.
Undistributed net investment income and accumulated net realized loss have
been adjusted for prior period permanent book-tax differences.
3. REPURCHASE AGREEMENTS: The Fund enters into agreements to purchase
securities and to resell them (repurchase agreements) at a future date. It
is the Fund's policy to take custody of securities purchased and to ensure
that the market value of the collateral including accrued interest is
sufficient to protect the Fund from losses incurred in the event the
counterparty does not repurchase the securities. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
4. DOLLAR ROLLS: The Fund may enter into dollar rolls in which the Fund sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities
on a specified future date. During the roll period, the Fund forgoes
principal and interest paid on the securities. The Fund is compensated by
the interest earned on the cash proceeds of the initial sale and a fee
earned for entering into the roll transaction. The fee is amortized into
income over the duration of the roll transaction.
5. DIVIDENDS AND DISTRIBUTIONS: Distributions from net investment income are
declared on a monthly basis payable on the last calendar day (or next
business day if the last calendar day falls on a holiday or weekend) of the
month. Distributions of net realized gains will be paid at least annually.
However, to the extent that net realized gains of the Fund can be reduced by
any capital loss carryforwards of the Fund, such gains will not be
distributed.
Income distributions and capital gains distributions are determined in
accordance with U.S. Federal Income Tax regulations which may differ from
generally accepted accounting principles.
6. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on the date the securities are purchased or sold. Costs used
in determining realized gains and losses on the sale of investment
securities are those of specific securities sold. Interest income is
recognized on the accrual basis. Discounts and premiums on securities
purchased are accreted/amortized over their respective estimated lives on a
yield to maturity basis for long term securities, with the exception of
mortgage backed securities, and on a straight line basis for short term
securities. Discount or premium on mortgage backed securities is recognized
upon receipt of principal payments on the underlying mortgage pools.
7. DELAYED DELIVERY COMMITMENTS: The Fund may purchase or sell securities on a
when-issued or forward commitment basis. Payment and delivery
5
<PAGE>
may take place a month or more after the date of the transaction. The price
of the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is negotiated.
8. OTHER: Organization expenses are being amortized on a straight line basis
over a period not to exceed sixty months.
Most expenses of the Company can be directly attributed to a fund. Expenses
which cannot be directly attributed are apportioned among the funds in the
Company.
B.INVESTMENT ADVISORY AGREEMENT--Effective June 13, 1995, BEA Associates (the
"Adviser") provides investment advisory services to the Fund under the terms of
an Investment Advisory Agreement (the "Advisory Agreement"). Under the Advisory
Agreement, the Fund pays the Adviser a fee, calculated daily and payable
monthly, at a base annual rate of .50% of the Fund's average daily net assets.
Prior to June 13, 1995, CS First Boston Investment Management Corporation
provided investment advisory services to the Fund under substantially the same
terms, conditions and fees as stated above.
The Adviser has agreed to reimburse to the Fund a portion of its advisory fees
to the extent that the expenses of the Fund exceed 1.00% of average daily net
assets.
C.ADMINISTRATIVE AND CUSTODY AGREEMENTS--United States Trust Company of New
York ("U.S. Trust"), through its wholly owned subsidiary, Mutual Funds Service
Company provides administrative, fund accounting, dividend disbursing and
transfer agent services under an Administrative Agreement. U.S. Trust also
provides custodial services for the Fund's assets under a Custody Agreement.
Under the Agreements, U.S. Trust (the "Administrator") is paid a combined fee,
computed daily and payable monthly at an annual rate of .05% of the Fund's
average daily net assets.
D.DISTRIBUTION AGREEMENT--Effective April 19, 1995, Funds Distributor, Inc.
(the "Distributor") serves as distributor of shares of the Fund. Under its
Distribution Agreement with the Company, the Distributor sells shares of the
Fund upon the terms of the prospectus and at the current offering price. The
Distributor is not obligated to sell any certain number of shares of the Fund.
For the six months ended June 30, 1995, the Distributor received no commissions
from sales of the Fund's shares. Prior to April 19, 1995, CS First Boston
Corporation served as distributor of shares of the Fund.
E.PORTFOLIO ACTIVITY--Purchases and sales of investment securities, other than
short term investments for the six months ended June 30, 1995 were $1,864,851
and $4,285,806, respectively.
F.CAPITAL--The Company is authorized to issue 50,000,000,000 shares of Common
Stock, $.001 par value, of which the Fund is authorized to issue 500,000,000
shares. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, 1994
------------- -----------------
<S> <C> <C>
Shares outstanding, beginning
of period...................................... 2,275,820 3,910,001
Shares sold..................................... 617,332 602,487
Shares issued in reinvestment
of dividends and distributions................. 70,452 134,526
Shares redeemed................................. (553,079) (2,371,194)
--------- ----------
Shares outstanding, end of period............... 2,410,525 2,275,820
========= ==========
</TABLE>
G.SUPPLEMENTAL PROXY INFORMATION
The Annual Meeting of the Stockholders of the BEA Investment Funds, Inc. was
held on Tuesday, June 13, 1995 at the offices of BEA Associates, One Citicorp
Center, 153 East 53rd Street, New York City. The following is a summary of each
proposal presented and the total number of shares voted:
<TABLE>
<CAPTION>
VOTES IN VOTES VOTES
PROPOSAL FAVOR OF AGAINST ABSTAINED
- - -------- --------- ------- ---------
<S> <C> <C> <C>
1. To elect the following four Directors:
Messrs. Desmond G. FitzGerald, Robert G.
Stone, Bruce N. Lehmann and Richard H. Francis 2,408,211 -- --
2. To ratify the selection of Price Waterhouse
LLP as independent public accountants of Fund
until the next annual meeting. 2,408,211 -- --
3. To approve or disapprove a new Investment
Advisory Agreement between the Fund and BEA
Associates containing substantially the same
terms and conditions and fees as the Fund's
previous investment agreement with CS First
Boston Investment Management Corporation. 2,408,211 -- --
4. To approve or disapprove an amendment to the
Articles of Incorporation of the Fund to change
its name to "BEA Investment Funds, Inc." from
"CS First Boston Investment Funds, Inc." 2,408,211 -- --
</TABLE>
6
