-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BsSFe/87JGmBNz41g/9/e+IbIfgsIm5TnmHc4AFL5DDRtj5Fm6WKp5/GmA/lSVR5 EF5a9SH2e1pi8KbRrDfBIA== 0000014170-00-000007.txt : 20000501 0000014170-00-000007.hdr.sgml : 20000501 ACCESSION NUMBER: 0000014170-00-000007 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIDGES INVESTMENT FUND INC CENTRAL INDEX KEY: 0000014170 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 476027880 STATE OF INCORPORATION: NE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: SEC FILE NUMBER: 811-01209 FILM NUMBER: 612094 BUSINESS ADDRESS: STREET 1: 8401 W DODGE RD STREET 2: SUITE 256 CITY: OMAHA STATE: NE ZIP: 68114 BUSINESS PHONE: 4023974700 MAIL ADDRESS: STREET 1: 8401 WEST DODGE ROAD STREET 2: SUITE 256 CITY: OMAHA STATE: NE ZIP: 68114 N-30B-2 1 BRIDGES INVESTMENT FUND, INC. FIRST QUARTER 2000 CONTENTS OF REPORT Pages 1 - 3 Shareholder Letter Exhibit 1 Portfolio Transactions from January 1, 2000, through March 31, 2000 Exhibit 2 Selected Historical Financial Information Exhibit 3 Reports to Stockholders of Management Companies Pages F1-F14 Unaudited Financial Statements for the Three Months Ended March 31, 2000 This report has been prepared for the information of the shareholders of Bridges Investment Fund, Inc. and is under no circumstances to be construed as an offering of shares of the Fund. Such offering is made only by Prospectus, a copy of which may be obtained by inquiry to the Fund's office. BRIDGES INVESTMENT FUND, INC. 8401 West Dodge Road Omaha, Nebraska 68114 Telephone 402-397-4700 Facsimile 402-397-8617 Directors Frederick N. Backer Edson L. Bridges II Edson L. Bridges III N. P. Dodge, Jr. John W. Estabrook Jon D. Hoffmaster John J. Koraleski Roger A. Kupka Gary L. Petersen John T. Reed Roy A. Smith Janice D. Stoney L.B. Thomas John K. Wilson Officers Edson L. Bridges II - Chairman and Chief Executive Officer Edson L. Bridges III _ President and Chief Investment Officer Brian M. Kirkpatrick _ Vice President Mary Ann Mason - Secretary Kathleen J. Stranik - Assistant Secretary Nancy K. Dodge - Treasurer Linda J. Morris _ Assistant Treasurer Auditor KPMG LLP Two Central Park Plaza Suite 1501 Omaha, Nebraska 68102-1617 Corporate Counsel Baird, Holm, McEachen, Pedersen, Hamann & Strasheim 1500 Woodmen Tower Omaha, Nebraska 68102 April 24, 2000 Dear Shareholder: Investment Results Bridges Investment Fund, Inc. had a total return of 1.63% during the First Quarter of 2000 based on a year-end 1999 net asset value of $46.24 per share and a March 31, 2000, net asset value of $46.30 per share. On a trailing 12-month basis for the period ending March 31, Bridges Investment Fund had a total return of 31.99%. By comparison, the S&P 500 had total returns of 2.29% for the First Quarter and 17.94% for the trailing 12 months ended March 31, 2000. The First Quarter was characterized by extreme volatility in the marketplace, as investors grappled with the crosscurrents of a rising interest rate environment and high valuations in the technology segment of the equity market. We continue to expect that the remainder of this year will be characterized by relatively significant equity market volatility. In this environment, we will continue to look to be flexible with respect to both asset allocation between fixed income and equities within the Fund and with regard to stock selection within the equity portion of the Fund's portfolio. The following table summarizes the 10 largest equity holdings in the Fund as of March 31, 2000, and includes some salient performance and valuation data:
03/31/00 % % of Tot. Tot. EPS EPS EPS Rtn. Rtn. LT No. of Market of Tot. % Chg.% Chg. 5 Yr. % Chg. P/E P/E Futu Net Hist. re SharesCompany Value Equi Asset Qtr. 12 Gr. 00 Vs. 2000 2001 Gr. ties s Mos. Rate 99 Rate 26,000Qualcomm 3,882,125 5.7% 5.0% -15.2% 860.4% 141% 75% 142.0 107.0 35% 36,000Cisco 2,783,250 4.1% 3.6% 44.3% 182.3% 35% 36% 152.0 117.0 30% Systems 20,000Intel 2,638,750 3.9% 3.4% 60.3% 122.2% 21% 27% 44.9 38.8 20% 12,000Nokia 2,610,000 3.8% 3.4% 16.2% 186.4% - 27% 76.8 59.8 25% 50,000Gap 2,490,625 3.7% 3.2% 8.3% 11.2% 36% 23% 31.9 26.2 20% 40,000Vodafone 2,222,500 3.3% 2.9% 12.5% 48.6% 26% 22% 75.1 50.5 25% Airtouch 20,000Microsoft 2,125,000 3.1% 2.8% -9.0% 18.5% 45% 22% 62.9 55.1 25% 16,000EMC Corp 2,000,000 2.9% 2.6% 15.3% 97.3% 32% 33% 86.9 65.6 30% 30,000Home 1,935,000 2.8% 2.5% -6.1% 55.7% 28% 25% 51.6 41.6 25% Depot 40,000Capital 1,917,500 2.8% 2.5% -0.5% -4.5% 27% 31% 21.3 17.1 25% One Finl. 24,604,750 36.1% 32.0% Total 67,350,932 87.5% Equities Total 76,970,473 Assets
Shareholder Letter -2- April 24, 2000 As always, our focus will remain on holding in the Fund's portfolio those companies which we believe embody the best combination of above-average earnings and cash flow growth prospects and reasonable valuation characteristics. We will look to capitalize on the opportunities afforded us by the volatility we expect in the market over the next several quarters. We appreciate your confidence in our growth-oriented approach to investing and your patience during those periods of time when our short-term results may be disappointing. Financial Statements The Fund's unaudited financial statements, appearing on pages F-1 through F-14, provide the Schedule of Portfolio Investments, the Statement of Assets and Liabilities, the Statement of Operations, the Statement of Changes in Net Assets, and the Notes to Financial Statements as of March 31, 2000. These presentations comprise our basic report to you. In addition, please refer to Exhibits 1 and 2 for information about the Fund's portfolio transactions for this First Quarter of 2000 and for the Fund's historical information with respect to net assets, shares outstanding, net asset value per share, dividends, and capital gains distributions. Required Reports Rule 30d-1(6) of the General Rules and Regulations under the Investment Company Act of 1940, as promulgated by the Securities and Exchange Commission, require certain reports to stockholders with respect to any matter that was submitted to a shareholder vote during the period covered by the shareholder report. The 2000 Annual Meeting of Shareholders of the Fund was held on February 15, 2000. The information that is required to be reported to you with respect to this meeting appears in Exhibit 3, attached hereto. A similar presentation will be made each time there is an annual or special meeting, and, in the instance of this report, the same information will be published again in January, 2001, within the Annual Shareholder Report for 2000 to fulfill certain requirements in connection with the solicitation of proxies for the next Annual Meeting of Shareholders. Cash Distributions On April 13, 2000, the Board of Directors declared a $.075 per share dividend on shares of capital stock that were outstanding on April 13, 2000 -- - - - the record date for this income distribution. This dividend amount will be payable on or about April 24, 2000. This dividend is payable from net investment income earned during the January-March, 2000 Quarter. On January 14, 2000, the Board of Directors declared a $.6910571 per share capital gains distribution to shareholders of record on that date with the payment to be made on April 24, 2000. Net short-term capital gains earned in the period from November 1, 1999, through December 31, 1999 were the source for this payment. Shareholders who received their quarterly dividends and capital gains amounts will notice that a different number of shares were used to compute the dollar values to be received. This phenomenon is due to the two separate dates of record. Shareholder Letter -3- April 24, 2000 Sales of Shares in States Other Than Nebraska The Fund has now registered its shares to be sold in 4 states in addition to Nebraska: California, Colorado, Florida, and Minnesota. The total market value of shares sold in those additional states has reached $481,354 as of March 31, 2000. Welcome to our new shareholders from outside Nebraska. Thank you for your investment in our Fund. Sincerely yours, Edson L. Bridges II CFA Chairman Edson L. Bridges III CFA President ELBII:ELBIII:elc:kjs Exhibit 1 BRIDGES INVESTMENT FUND, INC. PORTFOLIO TRANSACTIONS DURING THE PERIOD FROM JANUARY 1, 2000, THROUGH MARCH 31, 2000
Bought or Held After Securities Received Transaction Common Stocks Unless $1,000 Par $1,000 Par Described Otherwise Value (M) Value (M) or Shares or Shares AES Corporation 5,000 10,000 AT&T Liberty Media Group Class A 1,500 5,000 Altera Corporation 4,000 10,000 American Express Company 3,000 5,000 Berkshire-Hathaway, Inc. Class B 290 500 Broadcom Corporation 1,500 1,500 (1) Brocade Communications Systems 2,500 2,500 CSG Systems International, Inc. 2,000 20,000 Capital One Financial 5,000 40,000 (2) Cintas Corporation 2,000 6,000 (3) Cisco Systems 18,000 36,000 Citigroup 2,000 2,000 Comcast Corp. Class A Special 4,000 10,000 EGL, Inc. 2,000 35,000 Echostar Communications Corp. 2,500 10,000 Flextronics International, Ltd. 5,000 5,000 I2 Technologies, Inc. 1,500 1,500 (4) JDS Uniphase Corporation 2,500 2,500 Juniper Networks 1,500 1,500 Level 3 Communications 3,000 15,000 MCI WorldCom, Inc. 500 20,000 Medtronic, Inc. 5,000 5,000 (5) Morgan Stanley Dean Witter 7,000 10,000 Qualcomm, Inc. 1,000 26,000 (6) Solectron Corporation 4,000 30,000 (7) Sprint PCS Corporation 9,500 15,000 3Com Corporation 500 500 Texas Instruments 3,000 3,000 (8) Tibco Software, Inc. 4,000 6,000 VeriSign, Inc. 1,000 1,000 VERITAS Sortware Company 1,500 1,500 VoiceStream Wireless Corporation 2,000 2,000 West Teleservices 1,800 60,000 Various Issues of Commercial Paper 72,910M 5,425M Notes Purchased during 1st Quarter, 2000 Exhibit 1 BRIDGES INVESTMENT FUND, INC. PORTFOLIO TRANSACTIONS DURING THE PERIOD FROM JANUARY 1, 2000, THROUGH MARCH 31, 2000 (Continued) Sold or Held After Securities Exchanged Transacion Common Stocks Unless $1,000 Par $1,000 Par Described Otherwise Value (M) Value (M) or Shares or Shares America Online, Inc. 2,000 10,000 Dell Computer 3,000 -- E*Trade Group 4,000 -- Lamar Advertising Company 2,000 -- MBIA, Inc. 8,000 -- MBNA Corporation 15,000 -- Nike, Inc. Class B 5,000 -- Philip Morris Cos., Inc. 15,000 -- Qualcomm, Inc. 1,000 26,000 3Com Corporation 500 -- Union Pacific Corporation 4,000 -- (9) Xerox Cororation Notes 100M -- 9.75% due 3-15-2000 Various Issues of Commercial 70,615M -- Paper Notes maturing during 1st Qtr., 2000 (1) Received 1,000 shares in a 2-for-1 stock split on March 15, 2000. (2) Received 2,000 shares in a 3-for-2 stock split on March 8, 2000. (3) Received 18,000 shares in a 2-for-1 stock split on March 23, 2000. (4) Received 1,000 shares in a 2-for-1 stock split on March 13, 2000. (5) Received 5,000 shares in a 2-for-1 stock split on January 27, 2000. (6) Received 13,000 shares in a 2-for-1 stock split on March 9, 2000. (7) Received 5,500 shares in a 2-for-1 stock split on February 7, 2000. (8) Received 4,000 shares in a 3-for-1 stock split on February 22, 2000. (9) Matured 100M par value on March 15, 2000 at par.
Exhibit 2 BRIDGES INVESTMENT FUND, INC. SELECTED HISTORICAL FINANCIAL INFORMATION - - - - - - - - - - - - -Year End Statistics - - - - - - - - - - - - -
Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share 07-01-63 $ 109,000 10,900 $10.00 $ - $ - 12-31-63 159,187 15,510 10.13 .07 - 12-31-64 369,149 33,643 10.97 .28 - 12-31-65 621,241 51,607 12.04 .285 .028 12-31-66 651,282 59,365 10.97 .295 - 12-31-67 850,119 64,427 13.20 .295 - 12-31-68 1,103,734 74,502 14.81 .315 - 12-31-69 1,085,186 84,807 12.80 .36 - 12-31-70 1,054,162 90,941 11.59 .37 - 12-31-71 1,236,601 93,285 13.26 .37 - 12-31-72 1,272,570 93,673 13.59 .35 .08 12-31-73 1,025,521 100,282 10.23 .34 .07 12-31-74 757,545 106,909 7.09 .35 - 12-31-75 1,056,439 111,619 9.46 .35 - 12-31-76 1,402,661 124,264 11.29 .38 - 12-31-77 1,505,147 145,252 10.36 .428 .862 12-31-78 1,574,097 153,728 10.24 .481 .049 12-31-79 1,872,059 165,806 11.29 .474 .051 12-31-80 2,416,997 177,025 13.65 .55 .0525 12-31-81 2,315,441 185,009 12.52 .63 .0868 12-31-82 2,593,411 195,469 13.27 .78 .19123 12-31-83 3,345,988 229,238 14.60 .85 .25 12-31-84 3,727,899 278,241 13.40 .80 .50 12-31-85 4,962,325 318,589 15.58 .70 .68 12-31-86 6,701,786 407,265 16.46 .688 .86227 12-31-87 7,876,275 525,238 15.00 .656 1.03960 12-31-88 8,592,807 610,504 14.07 .85 1.10967 12-31-89 10,895,182 682,321 15.97 .67 .53769 12-31-90 11,283,448 744,734 15.15 .67 .40297 12-31-91 14,374,679 831,027 17.30 .66 .29292 12-31-92 17,006,789 971,502 17.51 .635 .15944 12-31-93 17,990,556 1,010,692 17.80 .6225 .17075 12-31-94 18,096,297 1,058,427 17.10 .59 .17874 12-31-95 24,052,746 1,116,620 21.54 .575 .19289 12-31-96 29,249,488 1,190,831 24.56 .55 .25730 12-31-97 36,647,535 1,262,818 29.02 .5075 .30571 12-31-98 48,433,113 1,413,731 34.26 .44 2.11648 12-31-99 69,735,684 1,508,154 46.24 .30 .91088 - - - - - - - - - - - - - - Quarterly Comparison - - - - - - - - - - - Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share 03-31-99 52,835,162 1,442,077 36.64 - - 03-31-00 77,180,256 1,667,111 46.30 - .6910571
Exhibit 3 BRIDGES INVESTMENT FUND, INC. REPORTS TO STOCKHOLDERS OF MANAGEMENT COMPANIES In Accordance With Rule 30d-1(b) of the General Rules and Regulations Promulgated Under The Investment Company Act of 1940 as Amended "If any matter was submitted during the period covered by the shareholder report to a vote of the shareholders, through the solicitation of proxies or otherwise, furnish the following information:" (1) Annual Meeting held on February 15, 2000, at 11:00 a.m. (2) Election of Directors for one year terms (All Directors Stand for Annual Election):
- - - - - -Votes Cast - - - - - - Withhold For All Authority Names of Directors Nominees To Vote For Elected at Meeting For Except All Nominees Frederick N. Backer 1,274,346 None 3,607 Edson L. Bridges II 1,274,346 None 3,607 Edson L. Bridges III 1,274,346 None 3,607 N. P. Dodge, Jr. 1,274,346 None 3,607 John W. Estabrook 1,274,346 None 3,607 Jon D. Hoffmaster 1,274,346 None 3,607 John J. Koraleski 1,274,346 None 3,607 Roger D. Kupka 1,274,346 None 3,607 Gary L. Petersen 1,274,346 None 3,607 John T. Reed 1,274,346 None 3,607 Roy A. Smith 1,274,346 None 3,607 Janice D. Stoney 1,274,346 None 3,607 L.B. Thomas 1,274,346 None 3,607 John K. Wilson 1,274,346 None 3,607
(3) A brief description for each matter voted upon at the meeting:
Matters Voted Upon For Against Abstain (a) For a proposed investment 1,277,233 None 720 advisory contract which continues the employment of Bridges Investment Counsel, Inc. as investment adviser to the Fund for the period from April 17, 2000 through April 17, 2001 (b) For the ratification of the 1,275,796 None 2,157 selection of KPMG LLP as independent auditors of the Fund for the Fiscal Year ending December 31, 2000
F-1 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 2000 (Unaudited)
Number Market of Shares Cost Value Title of Security COMMON STOCKS - (87.3%) Advertising _ 0.2% Interpublic Group of Companies, Inc. (The) 4,000 $ 106,953 $ 189,000 Aircraft _ Manufacturing - 0.6% The Boeing Company 12,000 $ 278,135 $ 453,750 Banking and Finance - 2.5% Chase Manhattan Corporation (The) 2,000 $ 86,650 $ 174,375 First National of Nebraska, Inc. 230 346,835 437,000 State Street Corporation 8,000 66,525 775,000 U.S. Bancorp 5,000 166,370 109,375 Wells Fargo & Co. 10,000 138,173 407,500 $ 804,553 $ 1,903,250 Beverages _ Soft Drinks - 1.1% PepsiCo, Inc. 24,000 $ 307,470 $ 837,000 Broadcast Service/Program _ 0.4% AT&T Corporation _ Liberty Media* 5,000 $ 248,596 $ 296,563 Chemicals - 0.9% The Dow Chemical Company 6,000 $ 396,947 $ 684,000 Communications _ Radio and Television _ 0.9% Clear Channel Communications, Inc.* 10,000 $ 366,954 $ 690,625 Computers _ Hardware and Software - 12.7% Brocade Communications Systems, Inc.* 2,500 $ 418,399 $ 448.281 Cisco Systems, Inc.* 36,000 290,726 2,783,250 HNC Software, Inc.* 18,000 598,741 1,297,125 Hewlett-Packard Co. 6,000 83,784 797,250 I2 Technologies, Inc.* 1,500 297,594 183,187 Juniper Networks, Inc.* 1,500 409,250 395,344 Microsoft Corporation* 20,000 93,361 2,125,000 Tibco Software, Inc.* 6,000 153,194 489,000 Transaction Systems Architects, Inc.* 32,000 1,102,118 924,000 VeriSign, Inc.* 1,000 212,500 149,500 VERITAS Software Corporation* 1,500 245,313 187,500 $ 3,904,980 $ 9,779,437 Computers _ Memory Devices _ 2.6% EMC Corporation/MASS* 16,000 $ 358,855 $ 2,000,000 Computers _ Micro _ 1.2% Sun Microsystems, Inc.* 10,000 $ 281,812 $ 937,031 *Nonincome-producing security F-2 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Data Processing and ManagemenT _ 1.8% CSG Systems* 20,000 $ 636,419 $ 976,250 First Data Corporation 10,000 458,100 443,750 $ 1,094,519 $ 1,420,000 Diversified Operations _ 1.2% Berkshire Hathaway Inc., Class B * 500 $ 600,020 $ 910,000 Drugs - Medicines _ Cosmetics - 5.7% Abbott Laboratories 15,000 $ 169,395 $ 527,812 Amgen, Inc.* 12,000 248,688 736,500 Bristol-Myers Squibb Co. 8,000 141,675 463,500 Elan Corporation PLC ADR* 20,000 419,005 950,000 Johnson & Johnson 10,000 109,396 702,500 Merck & Co., Inc. 16,000 274,266 994,000 $ 1,362,425 $ 4,374,312 Electrical Equipment and Supplies - 1.6% General Electric Co. 8,000 $ 147,473 $ 1,245,000 Electric _ Generation _ 1.5% AES Corporation* 10,000 $ 635,202 $ 787,500 Broadcom Corporation Class A* 1,500 351,444 364,313 $ 986,646 $ 1,151,813 Electronic Components _ Conductors _ 1.8% Altera Corporation* 10,000 $ 563,375 $ 892,500 Texas Instruments Incorporated 3,000 529,144 480,000 $ 1,092,519 $ 1,372,500 Electronics - 5.4% Flextronics International Ltd.* 5,000 $ 316,485 $ 352,188 Intel Corporation 20,000 334,735 2,638,750 Solectron Corporation * 30,000 439,416 1,203,750 $ 1,090,636 $ 4,194,688 Finance _ Credit Cards _ 1.0% American Express Company 5,000 $ 543,410 $ 744,688 Finance _ Diversified _ 1.2% Citigroup, Inc. 2,000 $ 123,476 $ 119,750 Morgan Stanley, Dean Witter, Discover & Co. 10,000 441,550 828,750 $ 565,026 $ 948,500 Finance _ Investment Banks _ 0.4% Merrill Lynch & Co., Inc. 3,000 $ 168,586 $ 314,250 *Nonincome-producing security F-3 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Finance - Real Estate - 1.7% Freddie Mac 30,000 $ 470,320 $ 1,325,625 Finance _ Services - 2.8% Capital One Financial Corporation 40,000 $ 866,856 $ 1,917,500 Paychex, Inc. 5,000 154,125 261,875 $ 1,020,981 $ 2,179,375 Insurance _ Multiline - 0.4% American International Group, Inc. 3,125 $ 118,455 $ 342,187 Internet Software _ 0.9% America Online, Inc.* 10,000 $ 442,708 $ 680,000 Linen Supply and Related Products - 0.3% Cintas Corporation* 6,000 $ 166,578 $ 235,125 Medical Instruments - 0.3% Medtronic, Inc. 5,000 $ 253,001 $ 257,187 Motion Pictures and Theatres - 1.2% The Walt Disney Company 22,000 $ 236,300 $ 907,500 Petroleum Producing - 3.9% BP Amoco PLC-Sponsored ADR 13,232 $ 246,135 $ 704,604 Atlantic Richfield Company 4,000 211,835 340,000 Chevron Corporation 10,000 340,535 924,375 Exxon Mobil Corporation 13,280 325,810 1,035,010 $ 1,124,315 $ 3,003,989 Publishing _ Newspapers - 0.7% Gannett Co., Inc. 8,000 $ 179,310 $ 563,000 Publishing _ Electronic - 0.8% Reuters Group PLC, ADR Sponsored 5,199 $ 166,303 $ 620,631 Retail Stores _ Apparel and Clothing - 3.2% Gap, Inc. 50,000 $ 521,360 $ 2,490,625 Retail Stores _ Building Materials and Home Improvement _ 2.5% The Home Depot, Inc. 30,000 $ 587,115 $ 1,935,000 *Nonincome-producing security F-4 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Retail Stores _ Department - 1.5% Target Corporation 15,000 $ 146,129 $ 1,121,250 Steel - Producers _ 0.4% Nucor Corporation 5,500 $ 122,061 $ 275,000 Telecommunications - 10.5% Level 3 Communications * 15,000 $ 876,675 $ 1,586,250 MCI WorldCom, Inc. * 20,000 490,156 906,250 Sprint Corporation 10,000 83,964 682,500 Sprint PCS Corporation * 15,000 424,658 982,500 Vodafone Airtouch PLC Sponsored ADR 40,000 915,541 2,222,500 VoiceStream Wireless Cororation* 2,000 238,125 257,625 West Teleservices Corporation* 60,000 821,597 1,545,000 $ 3,850,716 $ 8,132,625 Telecommunications _ Equipment _ 8.8% JDS Uniphase Corporation* 2,500 $ 329,542 $ 301,406 Nokia Corporation Sponsored ADR 12,000 492,858 2,610,000 Qualcomm Incorporated * 26,000 414,787 3,882,125 $ 1,237,187 $ 6,793,531 Telecommunications - Satellite - 1.0% EchoStar Communications Corporation* 10,000 $ 630,244 $ 790,000 Television _ Cable _ 0.6% Comcast Corporation* 10,000 $ 309,375 $ 433,750 Transportation _ Airfreight _ 1.1% EGL, Inc. * 35,000 $ 466,542 $ 818,125 TOTAL COMMON STOCKS (Cost - $26,755,515) $26,755,515 $67,350,932 PREFERRED STOCKS (1.1%) Banking and Finance _ 0.7% CFB Capital II 8.20% Cumulative Preferred 5,000 $ 125,000 $ 108,750 CFC Capital Trust 9.375% Preferred, Series B 5,000 125,000 107,188 Harris Preferred Capital Corp., 10,000 250,000 204,375 7.375%, Series A Silicon Valley Bancshares 5,000 125,000 98,125 8.25% Preferred Series I $ 625,000 $ 518,438 *Nonincome-producing security F-5 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value Oil Comp. _ Exploration and Production _ 0.1% Canadian Occidental Petroleum Ltd. 5,000 $ 125,000 $ 113,125 9.375% Preferred _ Series 1 Utilities _ Electric _ 0.3% Tennessee Valley Authority 6.75% 10,000 $ 250,000 $ 216,250 Variable Preferred Series D Total Preferred Stocks (Cost - $1,000,000) $ 1,000,000 $ 847,813 Total Stocks (Cost - $27,755,515) $27,755,515 $68,198,745 DEBT SECURITIES (12.2%) Auto-Cars/Light Trucks _ 0.3% General Motors Corporation 7.700% Debentures due April 15, 2016 $250,000 $ 252,320 $ 254,304 Energy _ Alternate Sources - 0.3% CalEnergy Co., Inc., 7.630% Notes due October 15, 2007 $200,000 $ 200,000 $ 198,974 Hotels and Motels _ 0.3% Marriot International 7.875% Notes Series C due September 15, 2009 $250,000 $ 250,068 $ 246,832 Household Appliances and Utensils - 0.1% Maytag Corp., 9.750% Notes, due May 15, 2002 $100,000 $ 102,200 $ 103,657 Retail Stores _ Department - 0.3% Dillard Department Stores, Inc., 7.850% Debentures, due October 1, 2012 $150,000 $ 151,347 $ 137,798 Sears Roebuck & Co., 9.375% Debentures due November 1, 2011 100,000 $ 106,399 110,278 $ 257,746 $ 248,076 *Nonincome-producing security F-6 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) MARCH 31, 2000 (Unaudited) Principal Market Title of Security Amount Cost Value DEBT SECURITIES (Continued) Telecommunications _ 0.3% Level 3 Communications, Inc., 9.125% Senior $250,000 $ 241,938 $ 216,091 Notes due May 1, 2008 U.S. Government _ 3.6% U.S. Treasury, 8.750% Notes, due August 15, 2000 200,000 $ 211,900 $ 201,906 U.S. Treasury, 8.000% Notes, due May 15, 2001 200,000 199,052 203,406 U.S. Treasury, 7.500% Notes, due May 15, 2002 200,000 214,098 204,000 U.S. Treasury, 10.750% Bonds due February 15, 2003 200,000 219,525 221,906 U.S. Treasury, 7.250% Notes, due May 15, 2004 300,000 303,245 309,375 U.S. Treasury, 7.500% Notes, due February 15, 2005 300,000 305,871 314,016 U.S. Treasury, 9.375% Bonds, due February 15, 2006 200,000 256,223 229,000 U.S. Treasury, 7.625% Bonds, due February 15, 2007 300,000 307,910 305,391 U.S. Treasury, 8.750% Bonds, due November 15, 2008 200,000 237,472 213,625 U.S. Treasury, 9.125% Bonds, due May 15, 2009 200,000 234,910 218,000 U.S. Treasury, 7.500% Bonds, due November 15, 2016 300,000 308,539 340,125 $ 2,798,744 $ 2,760,750 F-7 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS MARCH 31, 2000 (Unaudited) Principal Market Title of Security Amount Cost Value DEBT SECURITIES (Continued) Commercial Paper _ Short Term _ 7.0% American Express Credit Corporation Commercial Paper Note 5.937% due April 4, 2000 $2,350,000 $ 2,350,000 $ 2,350,000 Ford Motor Credit Corporation Commercial Paper Note 5.917% due April 7, 2000 1,975,000 1,975,000 1,975,000 Prudential Funding Corporation Commercial Paper Note 5.810% due April 24,2000 1,100,000 1,100,000 1,100,000 $ 5,425,000 $ 5,425,000 TOTAL DEBT SECURITIES (Cost - $9,528,016) $ 9,528,016 $ 9,453,684 TOTAL INVESTMENTS IN SECURITIES - (100.6%) (Cost - $37,283,531) $37,283,531 $77,652,429 CASH AND RECEIVABLES LESS TOTAL LIABILITIES _ (-0.6%) (472,173) NET ASSETS, March 31, 2000 _ (100.0%) $77,180,256 The accompanying notes to financial statements are an integral part of this schedule.
F-8 BRIDGES INVESTMENT FUND, INC. STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 2000 (Unaudited)
ASSETS Amount Investments, at market value Common and preferred stocks (cost $27,755,515) $68,198,745 Debt securities (cost $9,528,016) 9,453,684 Total investments $77,652,429 Cash 152,765 Receivables Dividends and interest 143,051 Subscriptions to capital stock 433,150 TOTAL ASSETS $78,381,395 LIABILITIES Capital Gains distributions payable $ 1,058,779 Redemption of capital stock 12,900 Investment advisor, management and service fees payable 89,183 Accrued operating expenses 40,277 TOTAL LIABILITIES $ 1,201,139 NET ASSETS Capital stock, $1 par value - Authorized 3,000,000 shares, 1,667,111 shares outstanding $ 1,667,111 Paid-in surplus - 34,745,742 Net capital paid in on shares $36,412,853 Net unrealized appreciation on investments 40,368,898 Accumulated undistributed net realized gains 242,098 Accumulated undistributed net investment income 156,407 TOTAL NET ASSETS $77,180,256 NET ASSET VALUE PER SHARE $46.30 OFFERING PRICE PER SHARE $46.30 REDEMPTION PRICE PER SHARE $46.30 The accompanying notes to financial statements are an integral part of this statement.
F-9 BRIDGES INVESTMENT FUND, INC. STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 (Unaudited)
INVESTMENT INCOME Amount Amount Interest $173,836 Dividends (Net of foreign withholding taxes of $463) 108,703 Total Investment Income $ 282,539 EXPENSES Management fees $ 89,183 Custodian fees 11,418 Insurance and Other Administrative Fees 6,349 Bookkeeping services 6,418 Printing and supplies 7,377 Professional services 2,625 Dividend disbursing and transfer agent fees 8,114 Computer programming 1,250 Taxes and licenses 266 Total Expenses $ 133,000 NET INVESTMENT INCOME $ 149,539 NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on transactions in investment securities $ 242,098 Net increase in unrealized appreciation of investments 1,017,922 NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS $ 1,260,020 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,409,559 The accompanying notes to financial statements are an integral part of this statement.
F-10 BRIDGES INVESTMENT FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (Unaudited)
2000 1999 INCREASE IN NET ASSETS Operations - Net investment income $ 149,539 $ 112,304 Net realized gain on transactions in investment securities 242,098 187,172 Net increase in unrealized appreciation of investments 1,017,922 3,112,351 Net increase in net assets resulting from operations $ 1,409,559 $ 3,411,827 Net equalization credits 5,474 730 Distributions to shareholders from - Net investment income - - Net realized gain from investment transactions (1,058,779) - Return of capital - - Net capital share transactions 7,088,318 989,492 Total increase in Net Assets $ 7,444,572 $ 4,402,049 NET ASSETS: Beginning of year $ 69,735,684 $48,433,113 End of three months $ 77,180,256 $52,835,162 The accompanying notes to financial statements are an integral part of these statements.
F-11 BRIDGES INVESTMENT FUND, INC. NOTES TO FINANCIAL STATEMENTS MARCH 31, 2000 (Unaudited) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Bridges Investment Fund, Inc. (Fund) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The primary investment objective of the Fund is long- term capital appreciation. In pursuit of that objective, the Fund invests primarily in common stocks. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. A. Investments - Security transactions are recorded on the trade date at purchase cost or sales proceeds. Dividend income is recognized on the ex- dividend date, and interest income is recognized on an accrual basis. Securities owned are reflected in the accompanying statement of assets and liabilities and the schedule of portfolio investments at quoted market value. Quoted market value represents the last recorded sales price on the last business day of the calendar year for securities traded on a national securities exchange. If no sales were reported on that day, quoted market value represents the closing bid price. The cost of investments reflected in the statement of assets and liabilities and the schedule of portfolio investments is the same as the basis used for Federal income tax purposes. The difference between cost and quoted market value of securities is reflected separately as unrealized appreciation (depreciation) as applicable.
Net unrealized appreciation (depreciation): 2000 1999 Net Change Aggregate gross unrealized appreciation on securities $41,234,927 $26,395,715 Aggregate gross unrealized depreciation on securities (866,029) (513,352) Net $40,368,898 $25,882,363 $14,486,535
The net realized gain (loss) from the sales of securities is determined for income tax and accounting purposes on the basis of the cost of specific securities. The gain computed on the basis of average cost would have been substantially the same as that reflected in the accompanying statement of operations. F-12 B. Federal Taxes - The Fund intends to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and not be subject to federal income tax. Therefore, no income tax provision is required. The Fund also intends to distribute its taxable net investment income and realized gains, if any, to avoid the payment of any federal excise taxes. The character of distributions made during the year from net investment income or net realized gains may differ from its ultimate characterization for federal income tax purposes. In addition, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the year that the income or realized gains or losses were recorded by the Fund. C. Distribution To Shareholders - The Fund accrues income dividends to shareholders on a quarterly basis as of the ex-dividend date. Distributions of net realized gains are made on an annual basis to shareholders as of the ex-dividend date. D. Equalization - The Fund uses the accounting practice of equalization by which a portion of the proceeds from sales and costs of redemption of capital shares, equivalent on a per share basis to the amount of undistributed net investment income on the date of the transactions, is credited or charged to undistributed income. As a result, undistributed net investment income per share is unaffected by sales or redemption of capital shares. E. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (2) INVESTMENT ADVISORY CONTRACT Under an Investment Advisory Contract, Bridges Investment Counsel, Inc. (Investment Adviser) furnishes investment advisory services and performs certain administrative functions for the Fund. In return, the Fund has agreed to pay the Investment Adviser a fee computed on a quarterly basis at the rate of 1/8 of 1% of the average net asset value of the Fund during the quarter, equivalent to 1/2 of 1% per annum. Certain officers and directors of the Fund are also officers and directors of the Investment Adviser. These officers do not receive any compensation from the Fund other than that which is received indirectly through the Investment Adviser. F-13 The contract between the Fund and the Investment Adviser provides that total expenses of the Fund in any year, exclusive of stamp and other taxes, but including fees paid to the Investment Adviser, shall not exceed, in total, a maximum of 1 and 1/2% of the average month end net asset value of the Fund for the year. Amounts, if any, expended in excess of this limitation are reimbursed by the Investment Adviser as specifically identified in the Investment Advisory Contract. There were no amounts reimbursed in the three months ended March 31, 2000. (3) DIVIDEND DISBURSING AND TRANSFER AGENT Dividend disbursing and transfer agent services are provided by Bridges Investor Services, Inc. (Transfer Agent). The fees paid to the Transfer Agent are intended to approximate the cost to the Transfer Agent for providing such services. Certain officers and directors of the Fund are also officers and directors of the Transfer Agent. (4) SECURITY TRANSACTIONS The cost of long-term investment purchases during the three months ended March 31, was:
2000 1999 United States government obligations $ -- $ -- Other Securities 7,805,123 3,723,354 Total Cost $7,805,123 $3,723,354
Net proceeds from sales of long-term investments during the three months ended March 31, were:
2000 1999 United States government obligations $ -- $ -- Other Securities 1,973,006 977,905 Total Net Proceeds $1,973,006 $ 977,905 Total Cost Basis of Securities Sold $1,730,908 $ 790,733
(5) NET ASSET VALUE The net asset value per share represents the effective price for all subscriptions and redemptions. F-14 (6) CAPITAL STOCK Shares of capital stock issued and redeemed are as follows:
2000 1999 Shares sold 165,473 35,551 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 2,445 3,512 167,918 39,063 Shares redeemed 8,961 10,718 Net increase 158,957 28,345
Value of capital stock issued and redeemed is as follows:
2000 1999 Shares sold $7,387,998 $1,247,512 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 107,252 122,203 $7,495,250 $1,369,715 Shares redeemed 406,932 380,223 Net increase $7,088,318 $ 989,492
(7) DISTRIBUTION TO SHAREHOLDERS On January 14, 2000, a cash distribution was declared reflecting net capital gains taken from November 1, 1999 through December 31, 1999. This distribution was calculated at $.6910571 per share aggregating $1,058,779. This capital gain distribution will be paid on April 24, 2000 to shareholders of record January 14, 2000. On April 13, 2000, a cash distribution was declared from net investment income accrued through March 31, 2000. This distribution was calculated at $.085 per share aggregating $143,785. The dividend will be paid on April 24, 2000 to shareholders of record on April 13, 2000. -----END PRIVACY-ENHANCED MESSAGE-----