-----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, MW8VFsrII1dufCXfyuJjoCJIpZn8NQmozZfI1b1XT0oFoPrkMzVOYxgtoSCKKUWr yMvgMiKYGusdGaRcflEDZg== /in/edgar/work/0000014170-00-000011/0000014170-00-000011.txt : 20001027 0000014170-00-000011.hdr.sgml : 20001027 ACCESSION NUMBER: 0000014170-00-000011 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIDGES INVESTMENT FUND INC CENTRAL INDEX KEY: 0000014170 STANDARD INDUSTRIAL CLASSIFICATION: [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: 746299 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 0001.txt BRIDGES INVESTMENT FUND, INC. THIRD QUARTER 2000 CONTENTS OF REPORT Pages 1 - 3 Shareholder Letter Exhibit 1 Portfolio Transactions from July 1, 2000, through September 30, 2000 Exhibit 2 Quarter-to-Quarter Changes in Financial Data Pages F1-F13 Unaudited Financial Statements for the Nine Months Ended September 30, 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 Counsel to Independent Directors Baird, Holm Koley, Jessen, P.C. Attorneys at Law Attorneys at Law 1500 Woodmen Tower One Pacific Place, Suite 800 Omaha, Nebraska 68102 1125 South 103 Street Omaha, Nebraska 68124 October 23, 2000 Dear Shareholder: Review of Recent Results The net asset value per share of the Fund was $42.82 on September 30, 2000. This price was up $.19 per share or 0.7% from the June 30, 2000 net asset value per share of $42.63, and it was down 7.2% from the year 1999 net asset value of $46.24. On a trailing twelve month basis, the Fund price of $42.63 at September 30, 2000 had risen 16.0%, a reflection of very strong progress for the common stocks held in the portfolio during the Fourth Quarter of 1999. After mid-March of 2000, the trading in our Fund's common stocks has generally been shaving off portions of the previous price advances. The net assets of the Fund were $76,910,923 on September 30, 2000, representing the second highest value ever reported at the end of a calendar quarter for our company. Net assets at September 30, 2000 were up $1,487,331 or 2.0% from June 30, 2000. For the First Nine Months of 2000, net assets were up $7,175,239 or 10.3% from the $69,735,684 level at December 31, 1999. During the September 30, 1999 to September 30, 2000 time frame, the net assets of the Fund gained $22,711,691 from $54,199,232 to $76,910,923 for an increase of 41.9%. There were 1,796,215 shares outstanding for the Fund on September 30, 2000, establishing a new record high level for the financial history of the Fund. The shares outstanding were up 1.5% for the quarter ending September 30, 2000, and they were 19.1% above the 1,508,154 shares outstanding level set at December 31, 1999. Net investment income was $535,608 for the First Nine Months of 2000, compared to $312,402 for the same period in 1999. Net realized gains on investments for the First Nine Months of 2000 were $1,262,957. There were $1,132,419 in net realized gains on securities sold for the same period in 1999. The change for unrealized appreciation of investments for the First Nine Months of 2000 was a net decrease of $5,842,417. By comparison, there was a $1,704,786 net increase in unrealized appreciation of investments during the First Nine Months of 1999. Please refer to Exhibits 1 and 2 and Pages F-1 through F-13 for specific details covering the Fund's recent portfolio transactions, the historical data with respect to dividends and capital gains distributions, and other financial statement information as of September 30, 2000. In conclusion, the total rate of return results for the Fund's price performance for the past quarter, for the year to date, and for the past twelve months are shown in the table below, along with the results for the Standard & Poor's 500 Composite Stock Index: S & P Management Period BIF 500 Three Months to 09-30-00 +0.69% -0.97% Nine Months to 09-30-00 -5.55% -1.39% Twelve Months to 09-30-00 +21.08% +13.28% Shareholder Letter 2 October 23, 2000 Dividend On October 17, 2000, the Board of Directors declared an $.11 per share dividend on the shares of capital stock outstanding on the October 17, 2000 record date. This income distribution amount is payable on or about October 23, 2000. This dividend is generated from the net investment income earned during the July - September, 2000 quarter. Organizational Matters On October 17, 2000, the twelve independent directors of the Fund held their first organizational meeting. The independent directors are: Frederick N. Backer, N. P. Dodge, Jr., John W. Estabrook, Jon D. Hoffmaster, John J. Koraeski, Roger D. Kupka, Gary L. Petersen, John T. Reed, Janice D. Stoney, L.B. Thomas, and John K. Wilson. Mr. Paul C. Jessen acted as interim legal counsel to the independent directors. The purpose for classifying members of the Board of Directors into independent persons who are unrelated to or unaffiliated with Bridges Investment Counsel, Inc. as manager for the Fund is to achieve the highest possible level of objectivity with respect to administrative and contract matters, financial audits and reports, and the nominations of new persons as members of the Board of Directors for the Fund. The independent director concept is being implemented across the investment company industry this year in response to mandated requirements from the Securities and Exchange Commission that were issued last year. These rules also require the retention of a legal counsel who is independent of the investment adviser and of the attorneys in the Baird Holm Firm who normally represent the Fund in corporate and securities matters. At the organizational meeting, the independent directors elected Mr. Roy A. Smith as the Lead Independent Director. Mr. Smith has been a director of the Fund since 1976. The independent directors adopted a charter for an expanded Audit Committee, and they replaced the Executive Committee with a charter for a new Administrative and Nominating Committee. Mr. N. P. Dodge, Jr. was elected as Chairman of the Administrative and Nominating Committee, and Mr. John T. Reed was elected as Chairman of the Audit Committee. Mr. Backer, Mr. Kupka, Mr. Petersen, and Mrs. Stoney were appointed to the Administrative and Nominating Committee. Mr. Estabrook, Mr. Hoffmaster, Mr. Koraleski, Mr. Thomas, and Mr. Wilson were selected as members of the Audit Committee. The permanent appointment of Koley, Jessen, P.C. as legal counsel to the independent directors was another action arranged for at the organizational meeting on October 17, 2000. State Registrations As of the date of this letter, the Fund's shares of capital stock have been registered for sale in the following states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Iowa, Illinois, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Pennsylvania, and Washington. Management is progressively moving towards qualifying the Fund's shares for sale in all fifty states. Shareholder Letter 3 October 23, 2000 The Outlook There are indications of a slowing in the pace of the advance for the national economy as a result of somewhat higher interest rates and greater price inflation in 2000 than the levels for those measures that prevailed in 1999. The somewhat restricted available supplies and the elevated costs for energy, particularly petroleum products, are somewhat problematic for the economy for the foreseeable future. Nevertheless, our expectations are for modest growth in gross domestic product for the balance of 2000 and into 2001. Corporate profits may be less uniformly positive, yet most of the companies in our Fund's portfolio are anticipated to reach their growth objectives. The price volatility from downward moves over the most recent weeks and months has provided some favorable purchase opportunities in the stock market. Closing Comment Ted Bridges is in Washington, D.C. attending a briefing by the management of Capital One Financial, one of the strong growth companies in our portfolio. Therefore, his remarks about the financial markets and specific holdings within the portfolio are not included in this letter. We both appreciate your investment in and support of our Fund. Sincerely yours, Edson L. Bridges II Chairman ELBII:elc Exhibit 1 BRIDGES INVESTMENT FUND, INC. PORTFOLIO TRANSACTIONS DURING THE PERIOD FROM JULY 1, 2000, THROUGH SEPTEMBER 30, 2000
Bought or Held After Received Transaction Securities $1,000 Par $1,000 Par Common Stocks Unless Value (M) Value (M) Described Otherwise or Shares or Shares (1) Altera 10,000 20,000 American Express Co. 5,000 20,000 (2) American International Group 5,000 10,000 Amgen, Inc. 2,000 15,000 Broadcom Corp. 1,000 3,000 CSG Systems International 3,000 25,000 Calpine Corporation 6,000 6,000 (3) Citigroup 4,999 9,999 Enron Corporation 4,000 4,000 Flextronics International Ltd. 2,000 7,000 Goldman Sachs Group 4,000 4,000 (4) Intel 20,000 40,000 Medtronic, Inc. 3,000 10,000 (5) Merrill Lynch 3,000 6,000 Nokia Corporation Sponsored ADR 2,000 50,000 PMC - Sierra 1,000 3,000 Providian Financial 3,000 3,000 Schwab, Charles Corporation 3,000 8,000 Sprint PCS Corp 5,000 20,000 Sun Microsystems, Inc. 2,000 15,000 (6) Target 15,000 30,000 Veritas Software Co. 1,000 3,000 West Teleservices 5,000 75,000 Various Issues of Commercial Paper 120,085M 7,400M Notes Purchased during 3rd Quarter, 2000 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 AT&T Corporation Liberty Media Group 10,000 -- Class A Carnival Corporation Class A 5,000 -- Chase Manhattan Corporation 3,000 -- Sprint Corporation (FON Group) 10,000 -- Texas Instruments, Inc. 8,000 -- (7) U.S. Treasury Notes 200M -- 8.75% due 8-15-2000 Various Issues of Commercial 122,030M -- Paper Notes maturing during 3rd Qtr., 2000 (1) Received 10,000 shares in a 2-for-1 stock split on August 11, 2000. (2) Received 2,500 shares in a 3-for-2 stock split on July 31, 2000. (3) Received 1,666 shares in a 4-for-3 stock split on August 28, 2000. (4) Received 20,000 shares in a 2-for-1 stock split on July 31, 2000. (5) Received 3,000 shares in a 2-for-1 stock split on September 1, 2000. (6) Received 15,000 shares in a 2-for-1 stock split on July 20, 2000. (7) Matured 200M notes on August 15, 2000.
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 - - - - Current Quarter Compared to Same Quarter in Prior Year - - - - Valuation Net Shares Net Asset Dividend/ Capital Date Assets Outstanding Value/Share Share Gains/Share 09-30-99 54,199,232 1,464,952 37.00 .066 - 09-30-00 76,910,823 1,796,215 42.82 .105 -
F-1 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS SEPTEMBER 30, 2000 (Unaudited)
Number Market Title of Security of Shares Cost Value COMMON STOCKS - (83.5%) Advertising _ 0.2% Interpublic Group of Companies, Inc. (The) 5,000 $ 151,678 $ 170,312 Banking and Finance - 2.9% First National of Nebraska, Inc. 230 $ 346,835 $ 517,500 State Street Corporation 8,000 66,525 1,040,800 U.S. Bancorp 10,000 282,657 227,500 Wells Fargo & Co. 10,000 138,173 459,375 $ 834,190 $ 2,245,175 Beverages _ Soft Drinks - 1.2% PepsiCo, Inc. 20,000 $ 256,225 $ 920,000 Chemicals - 0.6% The Dow Chemical Company 18,000 $ 396,947 $ 448,875 Communications _ Radio and Television _ 0.7% Clear Channel Communications, Inc.* 10,000 $ 366,954 $ 565,000 Computers _ Hardware and Software - 8.7% Cisco Systems, Inc.* 36,000 290,726 1,989,000 HNC Software, Inc.* 18,000 598,741 1,472,625 I2 Technologies, Inc.* 3,000 480,406 561,187 Microsoft Corporation* 20,000 93,361 1,206,250 Tibco Software, Inc.* 6,000 153,194 506,625 Transaction Systems Architects, Inc.* 32,000 1,102,118 520,000 VERITAS Software Corporation* 3,000 375,063 426,000 $ 3,093,609 $ 6,681,687 Computers _ Memory Devices _ 4.1% EMC Corporation/MASS* 32,000 $ 358,855 $ 3,184,000 Computers _ Micro _ 2.3% Sun Microsystems, Inc.* 15,000 $ 777,750 $ 1,751,250 Data Processing and ManagemenT _ 1.7% CSG Systems* 25,000 $ 873,688 $ 725,000 First Data Corporation 15,000 728,228 585,938 $ 1,601,916 $ 1,310,938 Diversified Operations _ 1.3% Berkshire Hathaway Inc., Class B * 500 $ 600,020 $ 1,035,000 *Nonincome-producing security F-2 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) SEPTEMBER 30, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Drugs - Medicines _ Cosmetics - 7.1% Abbott Laboratories 15,000 $ 169,395 $ 713,437 Amgen, Inc.* 15,000 463,500 1,047,422 Bristol-Myers Squibb Co. 8,000 141,675 457,000 Elan Corporation PLC ADR* 20,000 419,005 1,095,000 Johnson & Johnson 10,000 109,396 939,375 Merck & Co., Inc. 16,000 274,266 1,191,000 $ 1,577,237 $ 5,443,234 Electrical Equipment and Supplies - 1.8% General Electric Co. 24,000 $ 147,473 $ 1,387,500 Electric _ Generation _ 3.1% AES Corporation* 20,000 $ 635,202 $ 1,370,000 Calpine Corporation* 6,000 572,287 624,750 Enron Corp. 4,000 346,467 350,500 $ 1,553,956 $ 2,345,250 Electronic Components _ Conductors _ 5.2% Altera Corporation* 20,000 $ 563,375 $ 955,000 Broadcom Corporation Class A* 3,000 538,240 731,250 Intel Corporation 40,000 334,735 1,662,500 PMC - Sierra, Inc.* 3,000 608,812 645,750 $ 2,045,162 $ 3,994,500 Electronics - 2.5% Flextronics International Ltd.* 7,000 $ 482,610 $ 574,875 Solectron Corporation * 30,000 439,416 1,383,750 $ 922,026 $ 1,958,625 Finance _ Credit Cards _ 1.6% American Express Company 20,000 $ 837,772 $ 1,215,000 Finance _ Diversified _ 2.2% Citigroup, Inc. 9,999 $ 514,720 $ 540,571 Morgan Stanley, Dean Witter, Discover & Co. 13,000 659,100 1,188,688 $ 1,173,820 $ 1,729,259 Finance _ Investment Banks _ 1.1% Merrill Lynch & Co., Inc. 6,000 $ 108,586 $ 396,000 Golman Sachs Group, Inc. (The) 4,000 479,050 455,750 $ 647,636 $ 851,750 *Nonincome-producing security F-3 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) SEPTEMBER 30, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Finance - Real Estate - 2.1% Freddie Mac 30,000 $ 470,320 $ 1,621,875 Finance _ Services - 4.7% Capital One Financial Corporation 40,000 $ 866,856 $ 2,802,500 Paychex, Inc. 7,500 154,125 393,750 Providian Financial Corportion 3,000 339,938 381,000 $ 1,360,919 $ 3,577,250 Insurance _ Multiline - 1.2% American International Group, Inc. 10,000 $ 566,397 $ 956,875 Internet Brokers _ 0.4% Charles Schwab Corporation (The) 8,000 $ 254,706 $ 288,000 Linen Supply and Related Products - 0.3% Cintas Corporation* 6,000 $ 166,578 $ 261,375 Medical Instruments - 0.7% Medtronic, Inc. 10,000 $ 504,734 $ 518,125 Motion Pictures and Theatres - 1.1% The Walt Disney Company 22,000 $ 236,300 $ 841,500 Petroleum Producing - 3.9% BP Amoco PLC-Sponsored ADR 19,000 $ 443,238 $ 1,007,000 Chevron Corporation 10,000 340,535 852,500 Exxon Mobil Corporation 13,000 318,735 1,158,625 $ 1,102,508 $ 3,018,125 Publishing _ Electronic - 0.8% Reuters Group PLC, ADR Sponsored 5,199 $ 166,303 $ 584,238 Retail Stores _ Apparel and Clothing - 1.3% Gap, Inc. 50,000 $ 521,360 $ 1,006,250 Retail Stores _ Building Materials and Home Improvement _ 2.1% The Home Depot, Inc. 30,000 $ 587,115 $ 1,588,125 Retail Stores _ Department - 1.0% Target Corporation 30,000 $ 146,129 $ 768,750 *Nonincome-producing security F-4 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) SEPTEMBER 30, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value COMMON STOCKS (Continued) Telecommunications - 7.6% Level 3 Communications * 15,000 $ 876,675 $ 1,156,875 Sprint PCS Corporation * 20,000 581,333 702,500 Vodafone Airtouch PLC Sponsored ADR 40,000 915,541 1,480,000 VoiceStream Wireless Cororation* 2,000 238,125 232,125 West Teleservices Corporation* 75,000 1,150,972 1,650,000 WorldCom, Inc. * 20,000 490,156 607,500 $ 4,252,802 $ 5,829,000 Telecommunications _ Equipment _ 5.0% Nokia Corporation Sponsored ADR 50,000 $ 585,643 $ 1,990,625 Qualcomm Incorporated * 26,000 605,060 1,852,500 $ 1,190,703 $ 3,843,125 Telecommunications - Satellite - 1.1% EchoStar Communications Corporation* 16,000 $ 906,306 $ 844,000 Television _ Cable _ 0.5% Comcast Corporation* 10,000 $ 309,375 $ 409,375 Transportation _ Airfreight _ 1.4% EGL, Inc. * 35,000 $ 466,542 $ 1,058,750 TOTAL COMMON STOCKS (Cost - $30,552,323) $30,552,323 $64,252,093 PREFERRED STOCKS (1.2%) Banking and Finance _ 0.7% CFB Capital II 8.20% Cumulative Preferred 5,000 $ 125,000 $ 110,000 CFC Capital Trust 9.375% Preferred, Series B 5,000 125,000 113,750 Harris Preferred Capital Corp., 10,000 250,000 220,000 7.375%, Series A Silicon Valley Bancshares 5,000 125,000 108,125 8.25% Preferred Series I $ 625,000 $ 551,875 Oil Comp. _ Exploration and Production _ 0.2% Canadian Occidental Petroleum Ltd. 5,000 $ 125,000 $ 122,188 9.375% Preferred _ Series 1 *Nonincome-producing security F-5 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) SEPTEMBER 30, 2000 (Unaudited) Number Market Title of Security of Shares Cost Value Utilities _ Electric _ 0.3% Tennessee Valley Authority 6.75% 10,000 $ 250,000 $ 222,500 Variable Preferred Series D Total Preferred Stocks (Cost - $1,000,000) $ 1,000,000 $ 896,563 Total Stocks (Cost - $31,552,323) $31,552,323 $65,148,656 DEBT SECURITIES (14.6%) Auto-Cars/Light Trucks _ 0.3% General Motors Corporation 7.700% Debentures due April 15, 2016 $250,000 $ 252,320 $ 247,313 Energy _ Alternate Sources - 0.3% CalEnergy Co., Inc., 7.630% Notes due October 15, 2007 $200,000 $ 200,000 $ 199,397 Hotels and Motels _ 0.3% Marriot International 7.875% Notes Series C due September 15, 2009 $250,000 $ 250,068 $ 249,429 Household Appliances and Utensils - 0.1% Maytag Corp., 9.750% Notes, due May 15, 2002 $100,000 $ 102,200 $ 104,168 Retail Stores _ Department - 0.3% Dillard Department Stores, Inc., 7.850% Debentures, due October 1, 2012 $150,000 $ 151,347 $ 107,644 Sears Roebuck & Co., 9.375% Debentures due November 1, 2011 100,000 $ 106,399 108,022 $ 257,746 $ 215,666 Telecommunications _ 0.3% Level 3 Communications, Inc., 9.125% Senior $250,000 $ 241,938 $ 216,619 Notes due May 1, 2008 U.S. Government _ 3.4% U.S. Treasury, 8.000% Notes, due May 15, 2001 $200,000 $ 199,052 $ 202,031 U.S. Treasury, 7.500% Notes, due May 15, 2002 200,000 214,098 204,344 F-6 BRIDGES INVESTMENT FUND, INC. SCHEDULE OF PORTFOLIO INVESTMENTS (Continued) SEPTEMBER 30, 2000 (Unaudited) Principal Market Title of Security Amount Cost Value DEBT SECURITIES (Continued) U.S. Treasury, 10.750% Bonds due February 15, 2003 200,000 219,525 220,500 U.S. Treasury, 7.250% Notes, due May 15, 2004 300,000 303,245 312,891 U.S. Treasury, 7.500% Notes, due February 15, 2005 300,000 305,871 318,328 U.S. Treasury, 9.375% Bonds, due February 15, 2006 200,000 256,222 231,469 U.S. Treasury, 7.625% Bonds, due February 15, 2007 300,000 307,910 305,203 U.S. Treasury, 8.750% Bonds, due November 15, 2008 200,000 237,472 214,687 U.S. Treasury, 9.125% Bonds, due May 15, 2009 200,000 234,910 219,250 U.S. Treasury, 7.500% Bonds, due November 15, 2016 300,000 308,539 342,047 $ 2,586,844 $ 2,570,750 Commercial Paper _ Short Term _ 9.6% Ford Motor Credit Corporation Commercial Paper Note 6.428% due October 6, 2000 3,750,000 3,750,000 3,750,000 Prudential Funding Corporation Commercial Paper Note 6.388% due October 3, 2000 3,650,000 3,650,000 3,650,000 $ 7,400,000 $ 7,400,000 TOTAL DEBT SECURITIES (Cost - $11,291,116) $11,291,116 $11,203,342 TOTAL INVESTMENTS IN SECURITIES - (99.3%) (Cost - $42,843,439) $42,843,439 $76,351,998 CASH AND RECEIVABLES LESS TOTAL LIABILITIES _ (0.7%) 558,825 NET ASSETS, Seotember 30, 2000 _ (100.0%) $76,910,823 The accompanying notes to financial statements are an integral part of this schedule.
F-7 BRIDGES INVESTMENT FUND, INC. STATEMENT OF ASSETS AND LIABILITIES SEPTEMBER 30, 2000 (Unaudited)
ASSETS Amount Investments, at market value Common and preferred stocks (cost $31,552,323) $65,148,656 Debt securities (cost $11,291,116) 11,203,342 Total investments $76,351,998 Cash 246,667 Receivables Dividends and interest 125,028 Subscriptions to capital stock 55,006 Securities Sold 987,547 TOTAL ASSETS $77,766,246 LIABILITIES Purchase of Securities $ 705,816 Redemption of capital stock 18,814 Investment advisor, management and service fees payable 96,807 Accrued operating expenses 33,986 TOTAL LIABILITIES $ 855,423 NET ASSETS Capital stock, $1 par value - Authorized 3,000,000 shares,1,796,215 shares outstanding $ 1,796,215 Paid-in surplus - 40,124,898 Net capital paid in on shares $41,921,113 Accumulated net realized gain on investment transactions 1,262,958 Net unrealized appreciation on investments 33,508,559 Accumulated undistributed net investment income 218,193 TOTAL NET ASSETS $76,910,823 NET ASSET VALUE PER SHARE $42.82 OFFERING PRICE PER SHARE $42.82 REDEMPTION PRICE PER SHARE $42.82 The accompanying notes to financial statements are an integral part of this statement.
F-8 BRIDGES INVESTMENT FUND, INC. STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 (Unaudited)
INVESTMENT INCOME Amount Amount Interest $637,731 Dividends (Net of foreign withholding taxes of $4,316) 294,677 Total Investment Income $ 932,408 EXPENSES Management fees $ 278,645 Custodian fees 35,365 Insurance and Other Administrative Fees 19,046 Bookkeeping services 16,806 Printing and supplies 13,076 Professional services 9,095 Dividend disbursing and transfer agent fees 20,218 Computer programming 3,750 Taxes and licenses 799 Total Expenses $ 396,800 NET INVESTMENT INCOME $ 535,608 NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS Net realized gain on transactions in investment securities $1,262,957 Net decrease in unrealized appreciation of investments (5,842,417) NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS $(4,579,460) NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(4,043,852) The accompanying notes to financial statements are an integral part of this statement.
F-9 BRIDGES INVESTMENT FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 (Unaudited)
2000 1999 INCREASE IN NET ASSETS Operations - Net investment income $ 535,608 $ 312,402 Net realized gain on transactions in investment securities 1,262,957 1,132,418 Net decrease in unrealized appreciation of investments (5,842,417) 2,704,786 Net decrease in net assets resulting from operations $ (4,043,852) $ 4,149,606 Net equalization credits 11,374 852 Distributions to shareholders from - Net investment income (330,181) (204,282) Net realized gain from investment transactions (1,058,779) - Return of capital - - Net capital share transactions 12,596,577 1,819,943 Total increase in Net Assets $ 7,175,139 $ 5,766,119 NET ASSETS: Beginning of year $ 69,735,684 $48,433,113 End of nine months $ 76,910,823 $54,199,232
[FN] The accompanying notes to financial statements are an integral part of these statements. F-10 BRIDGES INVESTMENT FUND, INC. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 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 $34,782,786 $26,292,916 Aggregate gross unrealized depreciation on securities (1,274,227) (818,119) Net $33,508,559 $25,474,797 $8,033,762
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-11 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-12 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 nine months ended September 30, 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 nine months ended September 30, was:
2000 1999 United States government obligations $ -- $ -- Other Securities 17,293,080 7,636,919 Total Cost $17,293,080 $7,636,919
Net proceeds from sales of long-term investments during the nine months ended September 30, were:
2000 1999 United States government obligations $ 200,000 $ 200,500 Other Securities 8,696,914 5,023,750 Total Net Proceeds $8,896,914 $5,224,250 Total Cost Basis of Securities Sold $7,633,957 $4,091,831
(5) NET ASSET VALUE The net asset value per share represents the effective price for all subscriptions and redemptions. F-13 (6) CAPITAL STOCK Shares of capital stock issued and redeemed are as follows:
2000 1999 Shares sold 302,577 79,128 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 28,767 8,000 331,344 87,128 Shares redeemed 43,283 35,908 Net increase 288,061 51,220
Value of capital stock issued and redeemed is as follows:
2000 1999 Shares sold $13,264,216 $2,876,124 Shares issued to shareholders in reinvestment of net investment income and realized gain from security transactions 1,218,275 286,633 $14,482,491 $3,162,757 Shares redeemed 1,885,914 1,342,814 Net increase $12,596,577 $1,819,943
(7) DISTRIBUTIONS TO SHAREHOLDERS On October 17, 2000 a cash distribution of $.11 per share aggregating $198,057.23 was declared to shareholders of record on October 17, 2000, to be payable on October 23, 2000. -----END PRIVACY-ENHANCED MESSAGE-----