BERGER SMALL COMPANY GROWTH FUND
SUPPLEMENT DATED MAY 22, 1998
to
PROSPECTUS DATED DECEMBER 31, 1997
The Berger Small Company Growth Fund (the Fund) will re-open to
new investors on May 29, 1998. In addition, effective May 29, 1998, the
Fund's investment policies will change so that, under normal
circumstances, the Fund will invest at least 65% of its assets in equity
securities of companies whose market capitalization, at the time of
initial purchase, is less than the 12-month average of the maximum
market capitalization for companies included in the Russell 2000 Index.
This average is updated monthly.
Currently, the Fund's investment policies state that it will,
under normal circumstances, invest at least 65% of its assets in
companies which have a market capitalization of less than $1 billion at
the time of initial purchase. The Fund's new investment policy will
keep the Fund's target capitalization range more closely aligned with
one of the more widely recognized measures of the small company market,
the Russell 2000 Index, which is an unaffiliated and unmanaged stock
index. In addition, the new policy is expected to increase the range of
suitable investments available to the Fund and, accordingly, the
Trustees of the Fund determined that it would be in the best interests
of the Fund and its shareholders to re-open the Fund to new investors
and permit the Fund to continue to grow.
In light of the re-opening of the Fund, all references in the
Prospectus to the closure of the Fund are deleted. In addition, on page
6 of the Prospectus, the second sentence under the heading "What the
Fund Invests In" is deleted and is replaced with the second and third
sentences of this Supplement.
When the Fund is re-opened, a currently effective partial waiver
of the Fund's 12b-1 fee will no longer apply. As a result, the
voluntary fee waiver referred to in footnote 1 to the Annual Fund
Operating Expenses table on page 6 of the Prospectus should be read as
inapplicable. As noted in that footnote, the Fund's 12b-1 fee will
therefore be 0.25% and total Fund operating expenses will be 1.67%.
The glossary entry on page 23 of the Prospectus for "Smaller
company securities" is deleted in its entirety and replaced with the
following: "SMALLER COMPANY SECURITIES. Securities issued by small or
mid-sized companies, as measured by their market capitalization. The
market capitalization range targeted by each of the Berger Funds
investing primarily in small or mid-sized companies varies by Fund and
appears in the description for those Funds under the heading "What the
Fund Invests In." In general, the smaller the company, the greater its
risks."
