bif-ncsrs.htm

N-CSRS 1 bif-ncsrs.htm BRIDGES INVESTMENT FUND SEMIANNUAL REPORT 6-30-15 bif-ncsrs.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01209

Bridges Investment Fund, Inc.

(Exact name of registrant as specified in charter)

8401 West Dodge Road, Suite 256

Omaha, NE 68114

(Address of principal executive offices) (Zip code)

Edson A. Bridges III

8401 West Dodge Road, Suite 256

Omaha, NE 68114

(Name and address of agent for service)

(402) 397-4700

Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2015

Date of reporting period: June 30, 2015

Item 1. Reports to Stockholders.

Semi-Annual

Shareholder Report

2015

8401 West Dodge Road - 256 Durham Plaza - Omaha, Nebraska 68114

voice: (402) 397-4700 fax: (402) 397-8617 www.bridgesfund.com

This page has been intentionally left blank.

Contents of Report

Page 1	Shareholder Letter
Exhibit 1	Portfolio Transactions During the
Pages 3	Period from January 1, 2015 through
	June 30, 2015
Exhibit 2	Selected Historical Financial Information
Pages 4 – 5
Pages 6 – 7	Expense Example
Page 8	Allocation of Portfolio Holdings
Pages 9 – 23	Financial Statements
Pages 24 – 31	Additional Disclosures

IMPORTANT NOTICES

Must be preceded or accompanied by a Prospectus.

Opinions expressed herein are those of Edson L. Bridges III and are subject to change. They are not guarantees and should not be considered investment advice.

The S&P 500 Index is a broadly based unmanaged composite of 500 stocks which is widely recognized as representative of price changes for the U.S. equity market in general. The Russell 1000 Growth Index is an unmanaged composite of stocks that measures the performance of the stocks of companies with higher price-to- book ratios and higher forecasted growth values from a universe of the 1,000 largest U.S. companies based on total market capitalization. You cannot invest directly in a specific index.

Free Cash Flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

Earnings growth for a Fund holding does not guarantee a corresponding increase in market value of the holding or the Fund.

Fund holdings are subject to change and should not be considered a recommendation to buy or sell any security. Please click here for Fund holdings.

Mutual fund investing involves risk. Principal loss is possible. Small and medium capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies. Investments in debt securities typically decrease in value when interest rates rise. This

risk is usually greater for longer-term debt securities. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods.

The Bridges Investment Fund is distributed by Quasar Distributors, LLC.

July 7, 2015

Dear Shareholder:

Bridges Investment Fund had a total return of 1.07% in the second quarter of 2015, which bettered the 0.28% total return for the S&P 500 and the 0.12% total return for the Russell 1000 Growth Index over the same period. For the twelve month period ended June 30, 2015, the Fund had a total return of 5.88% versus 7.42% for the S&P 500 and 10.56% for the Russell 1000 Growth Index. For the three year period ended June 30, 2015, the Fund had an average annual total return of 16.25% versus 17.31% for the S&P 500 and 17.99% for the Russell 1000 Growth Index. For the five year period ended June 30, 2015, the Fund had an average annual total return of 15.85% versus 17.34% for the S&P 500 and 18.59% for the Russell 1000 Growth Index. For the ten year period ended June 30, 2015, the Fund had an average annual total return of 6.63% versus 7.89% for the S&P 500 and 9.10% for the Russell 1000 Growth Index. The Fund’s expense ratio is 0.82%.

Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance stated above. Performance data current to the most recent month end may be obtained by calling 866-934-4700.

During the second quarter, we sold McDonalds, Ameriprise, Biogen, Facebook, FedEx, and Gilead Sciences.

Stocks were close to unchanged during the second quarter. The S&P 500 had a total return of 0.28% for the second quarter, bringing its year-to-date total return to 1.23%.

Stock trading was volatile during the second quarter, even though equity indexes showed little net progress. Investors are grappling with the impact of economic weakness in Europe, particularly in Greece, as well as the impact of a stronger dollar on the earnings of U.S. multinational corporations, and the effects of an eventual end to the Federal Reserve’s quantitative easing activities on interest rates and the capital markets.

Stocks are trading close to our estimate of fair value. Our expectation is that equity returns could track the trajectory of corporate earnings over the next several years. We remain constructive on the outlook for continued corporate profit growth, although we are vigilant regarding risks to the profit outlook that emanate from global economic sluggishness and a strong dollar. We remain focused on identifying and owning companies that we believe can show solid earnings and cash flow progress in a challenging economic environment.

We believe the Fund’s portfolio holdings are attractively valued. The Fund’s portfolio ended the second quarter trading at -17.0x estimated 2015 earnings and -15.0x estimated 2016 earnings. The Fund’s companies are estimated to grow their earnings at 12-13% annually over the next three to five years, versus consensus earnings growth of 6-7% for the S&P 500.

Shareholder Letter

July 7, 2015

We expect increased equity market volatility during the second half of 2015, but we remain constructive on the longer term outlook for both U.S. stocks in general and the Fund’s portfolio.

	Sincerely,



	Edson L. Bridges III, CFA
	President and Chief Executive Officer

- 2 -

Exhibit 1

BRIDGES INVESTMENT FUND, INC.

PORTFOLIO TRANSACTIONS

DURING THE PERIOD FROM

JANUARY 1, 2015 THROUGH JUNE 30, 2015

(Unaudited)

	Bought or		Held After
Securities	Received		Transactions
Common Stock Unless	$1,000 Par		$1,000 Par
Described Otherwise	Value (M)		Value (M)
	or Shares		or Shares

American Express Co.		10,000		20,000
Ameriprise Financial, Inc.		7,000		7,000
Amgen, Inc.		5,000		5,000
Biogen Idec, Inc.		1,500		5,500
Cognizant Technology Solutions Corp. – Class A		10,000		10,000
Facebook, Inc.		12,000		12,000
FedEx Corp.		2,000		7,000
Gilead Sciences, Inc.		2,000		15,000
Google Inc. – Class C(1)		10		4,010
Starbucks Corp.(2)		15,000		30,000
Visa, Inc. – Class A(3)		30,000		40,000

(1)	Received 10 Shares in a .275% Stock Dividend on May 4, 2015.
(2)	Received 15,000 Shares in a 2-for-1 Stock Split on April 8, 2015.
(3)	Received 30,000 Shares in a 4-for-1 Stock Split on March 18, 2015.

	Sold or		Held After
Securities	Exchanged		Transactions
Common Stock Unless	$1,000 Par		$1,000 Par
Described Otherwise	Value (M)		Value (M)
	or Shares		or Shares

Capital One Financial Corp.		5,000		35,000
Caterpillar, Inc.		10,000		—
Chicago Bridge and Iron Company N.V.		40,000		—
General Electric Company		50,000		—
McDonald’s Corp.		20,000		—
United Parcel Service, Inc.		10,000		—

- 3 -

Exhibit 2

BRIDGES INVESTMENT FUND, INC.

SELECTED HISTORICAL FINANCIAL INFORMATION

(Unaudited)

– – – – – – – – – – – 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

- 4 -

Exhibit 2

(Continued)

BRIDGES INVESTMENT FUND, INC.

SELECTED HISTORICAL FINANCIAL INFORMATION

(Unaudited)

– – – – – – – – – – – Year End Statistics – – – – – – – – – – –

Valuation		Net		Shares		Net Asset		Dividend/		Capital
Date		Assets		Outstanding		Value/Share		Share		Gains/Share
	12-31-99	$	69,735,684		1,508,154	$	46.24	$	.30	$	.91088
	12-31-00		71,411,520		1,850,301		38.59		.40		.80880716
	12-31-01		60,244,912		1,940,494		31.05		.26		—
	12-31-02		45,854,541		1,989,769		23.05		.20		—
	12-31-03		62,586,435		2,016,560		31.04		.24		—
	12-31-04		74,281,648		2,230,038		33.31		.305		—
	12-31-05		80,715,484		2,305,765		35.01		.2798		—
	12-31-06		82,754,479		2,336,366		35.42		.2695		—
	12-31-07		77,416,617		2,258,380		34.28		.2364		2.5735
	12-31-08		49,448,417		2,257,410		21.91		.2603		—
	12-31-09		67,435,343		2,303,377		29.28		.17		—
	12-31-10		75,014,486		2,307,301		32.51		.126		—
	12-31-11		73,779,028		2,266,478		32.55		.1586		—
	12-31-12		83,361,384		2,256,216		36.95		.207		—
	12-31-13		110,155,511		2,335,264		47.17		.2408		1.62945
	12-31-14		122,102,388		2,463,893		49.56		.265		1.71490

– – – – – Current Six Months Compared to Same Six Months in Prior Year – – – – –

Valuation		Net		Shares		Net Asset		Dividend/		Capital
Date		Assets		Outstanding		Value/Share		Share		Gains/Share
	06-30-14	$	118,326,296		2,365,804	$	50.02	$	.13	$	—
	06-30-15		120,413,571		2,366,647		50.88		.13		—

- 5 -

BRIDGES INVESTMENT FUND, INC.

EXPENSE EXAMPLE

JUNE 30, 2015

(Unaudited)

As a shareholder of the Bridges Investment Fund, Inc., you incur ongoing costs, including management fees; services fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held the entire period (January 1, 2015 – June 30, 2015).

ACTUAL EXPENSES

The first line of the table below provides information about actual account values and actual expenses. Although the Fund charges no sales load or transactions fees, you will be assessed fees for outgoing wire transfers (including redemption requests), returned checks or stop payment orders at prevailing rates charged by U.S. Bancorp Fund Services, LLC, the Fund’s transfer agent. To the extent that the Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which a Fund invests in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the example below. The example includes, but is not limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. However, the example below does not include portfolio trading commissions and related expenses, interest expense or dividends on short positions taken by the Fund and other extraordinary expenses as determined under generally accepted accounting principles. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

- 6 -

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

			Expenses Paid
	Beginning	Ending	During Period*
	Account Value	Account Value	January 1, 2015 –
	January 1, 2015	June 30, 2015	June 30, 2015
Actual	$1,000	$1,029.30	$3.96
Hypothetical
(5% annualized return
before expenses)	$1,000	$1,020.89	$3.94

*	Expenses are equal to the Fund’s annualized expense ratio of 0.79%, multiplied by the average account value over the period, multiplied by 181/365 to reflect the one-half year period.

- 7 -

BRIDGES INVESTMENT FUND, INC.

ALLOCATION OF PORTFOLIO HOLDINGS

PERCENTAGE OF TOTAL INVESTMENTS

JUNE 30, 2015

(Unaudited)

COMPONENTS OF PORTFOLIO HOLDINGS

Common Stocks	$	107,386,537
Exchange Traded Funds		10,917,400
Corporate Bonds		997,830
Short-Term Investments		1,242,786
Total	$	120,544,553

- 8 -

BRIDGES INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS

JUNE 30, 2015

(Unaudited)

Title of Security	Shares		Cost		Value
COMMON STOCKS – 89.18%
Ambulatory Health Care Services – 1.06%
DaVita Healthcare Partners, Inc. (a)		16,000	$	961,035	$	1,271,520

Amusement, Gambling, and
Recreation Industries – 3.13%
The Walt Disney Co.		33,000	$	1,706,859	$	3,766,620

Beverage and Tobacco
Product Manufacturing – 3.76%
Altria Group, Inc.		35,000	$	823,041	$	1,711,850
PepsiCo, Inc.		13,000		632,331		1,213,420
Philip Morris International, Inc.		20,000		782,617		1,603,400
			$	2,237,989	$	4,528,670
Broadcasting (except Internet) – 4.58%
Comcast Corp. –
Class A Special Common Stock		30,000	$	1,381,050	$	1,798,200
DIRECTV (a)		40,000		1,657,230		3,711,600
			$	3,038,280	$	5,509,800
Chemical Manufacturing – 8.99%
Allergan Plc (a)		15,000	$	2,160,149	$	4,551,900
Ecolab, Inc.		15,000		1,436,988		1,696,050
Gilead Sciences, Inc.		15,000		1,256,091		1,756,200
Johnson & Johnson		10,000		866,300		974,600
Perrigo Company Plc		10,000		1,469,667		1,848,300
			$	7,189,195	$	10,827,050
Computer and Electronic
Product Manufacturing – 9.37%
Apple, Inc.		70,000	$	1,181,978	$	8,779,750
QUALCOMM, Inc.		40,000		1,687,005		2,505,200
			$	2,868,983	$	11,284,950
Couriers and Messengers – 0.99%
FedEx Corp.		7,000	$	1,183,862	$	1,192,800

See accompanying Notes to the Financial Statements.

Percentages are stated as a percent of net assets.

(a)	Non Income Producing.

- 9 -

BRIDGES INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS

(Continued)

JUNE 30, 2015

(Unaudited)

Title of Security	Shares		Cost		Value
COMMON STOCKS (Continued)
Credit Intermediation and
Related Activities – 9.25%
American Express Co.		20,000	$	1,740,831	$	1,554,400
Ameriprise Financial, Inc.		7,000		889,478		874,510
Capital One Financial Corp.		35,000		1,042,098		3,078,950
JPMorgan Chase & Co.		25,000		1,383,242		1,694,000
Wells Fargo & Co.		70,000		1,821,948		3,936,800
			$	6,877,597	$	11,138,660
Food Services and Drinking Places – 1.34%
Starbucks Corp.		30,000	$	561,001	$	1,608,450

Health and Personal Care Stores – 3.69%
Express Scripts Holding Co. (a)		50,000	$	1,352,414	$	4,447,000

Insurance Carriers and
Related Activities – 2.26%
Berkshire Hathaway, Inc. – Class B (a)		20,000	$	678,649	$	2,722,200

Machinery Manufacturing – 1.43%
Roper Industries, Inc.		10,000	$	437,286	$	1,724,600

Nonstore Retailers – 2.94%
Amazon.com, Inc. (a)		4,000	$	725,244	$	1,736,360
eBay, Inc. (a)		30,000		1,181,192		1,807,200
			$	1,906,436	$	3,543,560
Oil and Gas Extraction – 1.30%
Anadarko Petroleum Corp.		20,000	$	1,335,558	$	1,561,200

Other Information Services – 4.38%
Facebook, Inc. (a)		12,000	$	1,004,479	$	1,029,180
Google, Inc. – Class A (a)		4,000		847,060		2,160,160
Google, Inc. – Class C (a)		4,010		844,083		2,087,245
			$	2,695,622	$	5,276,585

See accompanying Notes to the Financial Statements.

Percentages are stated as a percent of net assets.

(a)	Non Income Producing.

- 10 -

BRIDGES INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS

(Continued)

JUNE 30, 2015

(Unaudited)

Title of Security	Shares		Cost		Value
COMMON STOCKS (Continued)
Petroleum and
Coal Products Manufacturing – 1.60%
Chevron Corp.		20,000	$	1,010,364	$	1,929,400

Professional, Scientific, and
Technical Services – 18.33%
Amgen, Inc.		5,000	$	805,992	$	767,600
Biogen Idec, Inc. (a)		5,500		1,555,466		2,221,670
Celgene Corp. (a)		45,000		2,036,215		5,208,075
Cognizant Technology Solutions Corp. –
Class A (a)		10,000		545,270		610,900
MasterCard, Inc.		75,000		1,337,065		7,011,000
Priceline Group, Inc. (a)		3,100		1,807,093		3,569,247
Visa, Inc. – Class A		40,000		745,136		2,686,000
			$	8,832,237	$	22,074,492
Rail Transportation – 4.12%
Union Pacific Corp.		52,000	$	1,674,381	$	4,959,240

Securities, Commodity Contracts,
and Other Financial Investments
and Related Activities – 3.27%
BlackRock, Inc.		8,000	$	1,783,768	$	2,767,840
T. Rowe Price Group, Inc.		15,000		725,747		1,165,950
			$	2,509,515	$	3,933,790
Support Activities for Mining – 1.43%
Schlumberger Ltd.		20,000	$	1,607,823	$	1,723,800

Transportation Equipment Manufacturing – 1.96%
Eaton Corp. Plc		35,000	$	1,816,696	$	2,362,150

TOTAL COMMON STOCKS			$	52,481,782	$	107,386,537

See accompanying Notes to the Financial Statements.

Percentages are stated as a percent of net assets.

(a)	Non Income Producing.

- 11 -

BRIDGES INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS

(Continued)

JUNE 30, 2015

(Unaudited)

Title of Security	Shares		Cost		Value
EXCHANGE TRADED FUNDS – 9.07%
Funds, Trusts, and Other
Financial Vehicles – 9.07%
iShares Core S&P Mid-Cap ETF		40,000	$	3,684,766	$	5,999,200
iShares Core S&P Small-Cap ETF		35,000		2,407,647		4,125,800
iShares MSCI Emerging Markets ETF		20,000		827,798		792,400

TOTAL EXCHANGE TRADED FUNDS			$	6,920,211	$	10,917,400

	Principal
	Amount		Cost		Value
CORPORATE BONDS – 0.83%
Broadcasting (except Internet) – 0.18%
Comcast Corp.
6.500%, 01/15/2017	$	200,000	$	199,592	$	216,336

Building Material and Garden
Equipment and Supplies Dealers – 0.17%
Home Depot, Inc.
5.400%, 03/01/2016		200,000	$	197,725	$	206,315

Funds, Trusts, and Other
Financial Vehicles – 0.25%
Spectra Energy Capital, LLC
8.000%, 10/01/2019		250,000	$	260,288	$	296,224

Machinery Manufacturing – 0.23%
Applied Materials, Inc.
7.125%, 10/15/2017		250,000	$	251,466	$	278,955

TOTAL CORPORATE BONDS			$	909,071	$	997,830

See accompanying Notes to the Financial Statements.

Percentages are stated as a percent of net assets.

- 12 -

BRIDGES INVESTMENT FUND, INC.

SCHEDULE OF INVESTMENTS

(Continued)

JUNE 30, 2015

(Unaudited)

Title of Security	Shares		Cost		Value
SHORT-TERM INVESTMENTS – 1.03%
Mutual Fund – 1.03%
SEI Daily Income Trust
Treasury Fund, 0.01% (b)		1,242,786	$	1,242,786	$	1,242,786

TOTAL SHORT-TERM INVESTMENTS			$	1,242,786	$	1,242,786

TOTAL INVESTMENTS – 100.11%			$	61,553,850	$	120,544,553
LIABILITIES IN EXCESS
OF OTHER ASSETS – (0.11)%						(130,982	)
TOTAL NET ASSETS – 100.00%					$	120,413,571

See accompanying Notes to the Financial Statements.

Percentages are stated as a percent of net assets.

(a)	Non Income Producing.
(b)	Variable rate security; the rate shown is the effective date as of June 30, 2015.

- 13 -

BRIDGES INVESTMENT FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES

JUNE 30, 2015

(Unaudited)

ASSETS:
Investments in securities, at fair value (cost: $61,553,850)	$	120,544,553
Receivables
Fund shares issued		6,250
Dividends and interest		92,590
Prepaid expenses		13,591

TOTAL ASSETS	$	120,656,984

LIABILITIES:
Payables
Distributions to shareholders	$	22,046
Payable for capital shares redeemed		1,000
Payable to Adviser		145,417
Payable to Directors		22,087
Accrued expenses		52,863

TOTAL LIABILITIES	$	243,413

TOTAL NET ASSETS	$	120,413,571

NET ASSETS CONSIST OF:
Capital stock	$	60,425,018
Accumulated undistributed net investment income		4,135
Accumulated undistributed net realized gain on investments		993,715
Unrealized appreciation on investments		58,990,703

TOTAL NET ASSETS	$	120,413,571

SHARES OUTSTANDING
($0.0001 par value; 100,000,000 shares authorized)		2,366,647

NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE	$	50.88

See accompanying Notes to the Financial Statements.

- 14 -

BRIDGES INVESTMENT FUND, INC.

STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2015

(Unaudited)

INVESTMENT INCOME:
Dividend income	$	771,227
Interest income		31,438

Total investment income	$	802,665

EXPENSES:
Advisory fees	$	307,107
Administration fees		56,301
Fund accounting fees		29,830
Dividend disbursing and transfer agent fees		22,469
Independent director’s expenses and fees		22,082
Other		18,808
Professional Services		12,476
Custody fees		7,621
Printing and supplies		6,827
Taxes and licenses		724

Total expenses	$	484,245

NET INVESTMENT INCOME	$	318,420

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments		1,385,818

Net change in unrealized appreciation of investments		1,979,912

NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS		3,365,730

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,684,150

See accompanying Notes to the Financial Statements.

- 15 -

BRIDGES INVESTMENT FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS

	Six Months Ended			Year Ended
	June 30, 2015			December 31,
	(Unaudited)			2014
OPERATIONS:
Net investment income	$	318,420		$	630,737
Net realized gain on investments		1,385,818			3,365,354
Net increase in unrealized
appreciation on investments		1,979,912			6,459,974

Net increase in net assets
resulting from operations	$	3,684,150		$	10,456,065

Net equalization of debits/credits		(3,220	)		614

Distributions to shareholders:
From net investment income		(312,716	)		(634,475	)
From net realized gains		—			(4,093,888	)

Total distributions	$	(312,716	)	$	(4,728,363	)

Capital Share Transactions:
Net increase/(decrease) in net assets
from capital share transactions		(5,057,031	)		6,218,561

Total Increase/(Decrease) in Net Assets	$	(1,688,817	)	$	11,946,877

NET ASSETS:
Beginning of the Period	$	122,102,388		$	110,155,511
End of the Period (including undistributed net
investment income of $4,135
and $1,651, respectively)	$	120,413,571		$	122,102,388

See accompanying Notes to the Financial Statements.

- 16 -

BRIDGES INVESTMENT FUND, INC.

FINANCIAL HIGHLIGHTS

For a Fund share outstanding throughout the period

	For the Six
	Months Ended
	June 30, 2015			Years Ended December 31,
	(Unaudited)			2014			2013			2012			2011			2010

Net asset value,
beginning of period	$	49.56		$	47.17		$	36.95		$	32.55		$	32.51		$	29.28
Income from investment operations:
Net investment income1		0.13			0.26			0.24			0.21			0.16			0.14
Net realized and unrealized
gain on investments		1.32			4.11			11.85			4.40			0.04			3.22
Total from
investment operations		1.45			4.37			12.09			4.61			0.20			3.36

Less dividends and distributions:
Dividends from net
investment income		(0.13	)		(0.27	)		(0.24	)		(0.21	)		(0.16	)		(0.13	)
Dividends from
net realized gain		—			(1.71	)		(1.63	)		—			—			—
Total distributions		(0.13	)		(1.98	)		(1.87	)		(0.21	)		(0.16	)		(0.13	)

Net asset value, end of period	$	50.88		$	49.56		$	47.17		$	36.95		$	32.55		$	32.51

Total return		2.93	%2		9.37	%		32.99	%		14.16	%		0.62	%		11.50	%

Supplemental data and ratios:
Net assets, end of period
(in thousands)	$	120,414		$	122,102		$	110,156		$	83,361		$	73,779		$	75,014
Ratio of net expenses
to average net assets		0.79	%3		0.80	%		0.85	%		0.88	%		0.88	%		0.90	%
Ratio of net investment income
to average net assets		0.52	%3		0.55	%		0.57	%		0.58	%		0.47	%		0.42	%
Portfolio turnover rate		4.4	%		13.6	%		12.0	%		17.0	%		26.6	%		26.3	%

See accompanying Notes to the Financial Statements.

1	Net investment income per share is calculated using the ending balances prior to consideration or adjustment for permanent book-to-tax difference.
2	Not Annualized.
3	Annualized.

- 17 -

BRIDGES INVESTMENT FUND, INC.

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

(Unaudited)

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Bridges Investment Fund, Inc. (the “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 accounting principles generally accepted in the United States of America (“GAAP”).

A. Investments –

Security transactions are recorded on trade date. Dividend income is recognized on the ex-dividend date, and interest income is recognized on an accrual basis. Discount and premium on fixed income securities is accreted or amortized into interest income using the effective interest method. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

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.

Securities owned are reflected in the accompanying statement of assets and liabilities and the schedule of investments at fair value based on quoted market prices. Bonds and other fixed-income securities (other than repurchase agreements and demand notes) are valued using the bid price provided by an independent pricing service. Other securities traded on a national securities exchange are valued at the last reported sale price at the close of regular trading on each day the exchange is open for trading. Securities listed on the NASDAQ National Market System for which market quotations are readily available are valued using the NASDAQ Official Closing Price (“NOCP”). If no sales were reported on that day, quoted market price represents the closing bid price.

Investments in registered open-end management investment companies will be valued based upon the Net Asset Values (“NAVs”) of such investments and are categorized as Level 1 of the fair value hierarchy. Government and retail money-market funds, for which neither vendor pricing nor market maker prices are available, shall be valued at amortized cost on the day of valuation, unless the Adviser determines that the use of amortized cost valuation on such day is not appropriate (in which case such instrument shall be fair valued in accordance with the procedures established by the Fund’s Board of Directors). Investments in privately held investment funds will be valued based upon the NAVs of such investments and are categorized as Level 2 of the fair value hierarchy if significant observable inputs are used.

- 18 -

Securities for which prices are not readily available are valued by the Fund’s valuation committee (the “Valuation Committee”) at a fair value determined in good faith under procedures established by and under the general supervision of the Fund’s Board of Directors.

The Valuation Committee concludes that a price determined under the Fund’s valuation procedures is not readily available if, among other things, the Valuation Committee believes that the value of the security might be materially affected by an intervening significant event. A significant event may be related to a single issuer, to an entire market sector, or to the entire market. These events may include, among other things: issuer–specific events including rating agency action, earnings announcements and corporate actions, significant fluctuations in domestic or foreign markets, natural disasters, armed conflicts, and government actions. In the event that the market quotations are not readily available, the fair value of such securities will be determined in good faith, taking into consideration: (i) fundamental analytical data relating to the investment; (ii) the nature and duration of restrictions on disposition of the securities; and (iii) an evaluation of the forces which influence the market in which these securities are purchased and sold. The members of the Valuation Committee shall continuously monitor for significant events that might necessitate the use of fair value procedures.

B. Federal Income Taxes –

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to Regulated Investment Companies (“RICs”) to distribute all of its taxable income to shareholders. Therefore, no Federal income tax provision for the Fund is required. Under applicable foreign tax law, a withholding tax may be imposed on interest, dividends, and capital gains earned on foreign securities.

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. The Fund has reclassified the components of its capital accounts for the year ended December 31, 2014, by decreasing accumulated investment income by $614 and increasing capital stock by $614.

The Fund has not recorded any liability for material unrecognized tax benefits as of June 30, 2015. It is the Fund’s policy to recognize accrued interest and penalties related to uncertain benefits in income taxes as appropriate. Tax years that remain open to examination by major jurisdiction include tax years ended December 31, 2011 through December 31, 2014.

C. Distribution To Shareholders –

The Fund records and pays dividends to shareholders on a quarterly basis on the ex-dividend date. Distribution of net realized gains, if any, are recorded and made on an annual basis to shareholders on 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.

- 19 -

E. Use of Estimates –

The preparation of financial statements in conformity with GAAP 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 increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.

F. Fair Value Measurements –

GAAP defines fair value as the price that each Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data “inputs” and minimize the use of unobservable “inputs” and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:

	Level 1 –	Unadjusted quoted prices in active markets for identical investments.
	Level 2 –	Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
	Level 3 –	Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

The valuation techniques used by the Fund to measure fair value for the six months ended June 30, 2015 maximized the use of observable inputs and minimized the use of unobservable inputs. During the six months ended June 30, 2015, no securities held by the Fund were deemed as Level 3.

- 20 -

The following is a summary of the inputs used as of June 30, 2015, in valuing the Fund’s investments carried at fair value:

	Level 1		Level 2		Level 3		Total
Investments
Common Stocks	$	107,386,537	$	—	$	—	$	107,386,537
Exchange Traded Funds		10,917,400		—		—		10,917,400
Corporate Bonds		—		997,830		—		997,830
Short-Term Investments		1,242,786		—		—		1,242,786
Total Investments
in Securities	$	119,546,723	$	997,830	$	—	$	120,544,553

There were no transfers between Levels 1 and 2 during the six months ended June 30, 2015. Transfers between levels are recognized at the end of the reporting period. Refer to the Schedule of Investments for further information on the classification of investments.

(2) INVESTMENT ADVISORY CONTRACT AND

OTHER TRANSACTIONS WITH AFFILIATES

Under an Investment Advisory Contract, Bridges Investment Management, Inc. (the “Investment Adviser”) furnishes investment advisory services for the Fund. In return, the Fund has agreed to pay the Investment Adviser a management fee computed on a quarterly basis at the rate of 1/8 of 1% of the average month-end 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. For the six months ended June 30, 2015, the Fund incurred $307,107 in advisory fees.

The contract between the Fund and the Investment Adviser provides that total expenses of the Fund in any year, exclusive of 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 during the six months ended June 30, 2015.

The Fund has entered into a Board-approved contract with the Investment Adviser in which the Investment Adviser acts as primary administrator to the Fund at an annual rate of $42,000. U.S. Bancorp Fund Services, LLC acts as sub-administrator to the Fund, and for its services, receives an annual fee at the rate of 0.065% for the first $50 million of the Fund’s average net assets, 0.050% on the next $50 million of average net assets, and 0.04% on the balance, subject to an annual minimum of $40,000. These administrative expenses are shown as Administration fees on the Statement of Operations.

Quasar Distributors, LLC (the “Distributor”), a registered broker-dealer, acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares. The Distributor is an affiliate of U.S. Bancorp Fund Services, LLC.

- 21 -

(3)SECURITY TRANSACTIONS

The cost of long-term investment purchases during the six months ended June 30, 2015 and 2014, was:

		2015				2014
Non U.S. government securities		$	5,168,242			$	11,628,954

Net proceeds from sales of long-term investments during the six months ended June 30, 2015 and 2014, were:

		2015				2014
Non U.S. government securities		$	6,853,562			$	7,777,431

There were no long-term U.S. government transactions for the six months ended June 30, 2015 and 2014.

(4)NET ASSET VALUE

The net asset value per share represents the effective price for all subscriptions and redemptions.

(5)CAPITAL STOCK

Shares of capital stock issued and redeemed during the six months ended June 30, 2015 and 2014, were as follows:

	2015			2014
Shares sold		16,895			58,479
Shares issued to shareholders in
reinvestment of net investment income		5,358			5,590
		22,253			64,069
Shares redeemed		(119,499	)		(33,529	)
Net increase/(decrease)		(97,246	)		30,540

Value of capital stock issued and redeemed during the six months ended June 30, 2015 and 2014, was as follows:

	2015			2014
Net proceeds from shares sold	$	859,883		$	2,760,655
Reinvestment of distributions		271,441			273,118
		1,131,324			3,033,773
Cost of shares redeemed		(6,188,355	)		(1,591,955	)
Net increase/(decrease)	$	(5,057,031	)	$	1,441,818

(6)DISTRIBUTIONS TO SHAREHOLDERS

On March 31, 2015 and June 30, 2015, cash distributions were declared from net investment income accrued through March 31, 2015 and June 30, 2015, respectively. These distributions were calculated as $0.06 and $0.07 per share. The dividends were paid on March 31, 2015 and June 30, 2015, to shareholders of record on March 30, 2015 and June 29, 2015.

- 22 -

(7)FEDERAL INCOME TAX INFORMATION

The tax character of distributions during the years ended December 31, 2014 and 2013 were as follows:

	Ordinary		Long-Term
	Income		Capital Gain
12/31/14	$	634,475	$	4,093,888
12/31/13	$	1,412,051	$	2,819,100

As of December 31, 2014, the components of the tax basis cost of investments and net unrealized appreciation were as follows:

Federal tax cost of investments	$	65,181,856
Unrealized appreciation	$	57,220,747
Unrealized depreciation		(237,757	)
Net unrealized appreciation	$	56,982,990

As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:

Net unrealized appreciation	$	56,982,990
Undistributed ordinary income	$	1,651
Undistributed long term gains		—
Distributable earnings		1,651
Other accumulated loss		(364,302	)
Total accumulated capital earnings	$	56,620,339

As of December 31, 2014, the Fund did not have any capital loss carryovers and had deferred post-October losses of $364,302. The difference between book and tax basis distributable earnings is primarily related to the deferral of losses on wash sales.

- 23 -

ADDITIONAL DISCLOSURES

(Unaudited)

Availability of Quarterly Portfolio Holdings Schedules

The Fund files its complete schedule of portfolio holdings with the SEC for the First and Third Quarters of each fiscal year on Form N-Q, which is available on the SEC’s website at http://www.sec.gov or can be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.) These reports can also be obtained from the Fund by sending an e-mail to fund@bridgesinv.com or calling 1-800-939-8401.

Proxy Voting Policies and Procedures and Proxy Voting Record

A description of the policies and/procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, and a report on how the Fund voted such proxies during the 12-month period ended June 30, 2014 can be obtained by request and without charge from the Fund by sending an e-mail to fund@bridgesinv.com or calling 1-800-939-8401, or from the SEC’s website at http://www.sec.gov.

- 24 -

Disclosure Regarding Fund Trustees and Officers

**Disinterested Persons

Also Known As Independent Directors**

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Daniel J. Brabec		Daniel J. Brabec has been a Director of Spectrum Financial Services,
Age: 56		Inc. in Omaha, Nebraska since February 1999 and has served as Vice
		President, Secretary, and Treasurer since 2000. He has directly managed
Director		real estate and commercial credit assets for a number of affiliates
(2015 – present)		of Spectrum Financial Services, Inc. since January 2009. He served as
		a Director of Great Western Bank, Omaha, Nebraska and was its Chief
		Executive Officer and President from 2001 until its sale in 2008, and
		served as Controller for Great Western Bancorporation in an interim
		role from 1999 to 2001. He began his career in banking in 1985
		joining Pioneer Bank, St Louis, Missouri after three years with
		Control Data Corporation and served as Executive Vice President,
		Security Officer, and Director of Rushmore Bank and Trust, Rapid
		City, South Dakota from 1993 to 1999. Over the years, Mr. Brabec has
		served on the Board of Directors of the United Way of the Black Hills,
		The United Way of the Midlands, and the Nebraska Association of
		Bankers and as a Director and Officer for the Nebraska Chapters of
		Young Presidents Organization and World Presidents Organization.

Nathan Phillips		Mr. Dodge is the President of N.P. Dodge Company since April 2014,
Dodge III		and prior to that position, served as the Executive Vice President. He
Age: 51		has worked at N.P. Dodge Company since October, 1993. Mr. Dodge
		is also a principal officer and director of a number of subsidiary and
Director		affiliated companies in the property management, insurance, and real
(2010 – present)		estate syndication fields. Mr. Dodge became a Director of Lauritzen
		Corp. in 2008 and of First State Bank of Loomis in 2003.

Adam M. Koslosky		Mr. Koslosky is Vice Chairman and Chief Executive Officer of Magnolia
Age: 58		Metal Corporation since 2014 and previously served as President and
		Chief Executive Officer. Magnolia Metal Corporation is a bronze
Director		bearing manufacturer located in Omaha, Nebraska. Mr. Koslosky
(2007 – present)		commenced his career with Magnolia Metal Corporation in 1978. Mr.
		Koslosky also is a general partner of Mack Investments, Ltd. and Tax
		Matter Partner and Manager of TriStone Property Group, LLC, both
		privately held investment companies located in Omaha, Nebraska. He
		has been a Director of Nebraska Methodist Hospital Foundation since
		1993. Mr. Koslosky has been determined to be an “audit committee
		financial expert” within the meaning of the Sarbanes Oxley Act of 2002
		and the regulations related thereto by the Fund’s Board of Directors.
		Mr. Koslosky serves as the Chairman of the Fund’s Audit Committee.

- 25 -

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Michael C. Meyer		Mr. Meyer was elected Chairman on April 10, 2012. Mr. Meyer joined
Age: 56		McCarthy Capital Corporation as Operating Partner during March
		2013. McCarthy Capital is an Omaha based private equity firm
Director		focused on lower middle market companies. Mr. Meyer retired from
(2008 – present)		Tenaska, Inc. during July 2014 after serving in various capacities since
		1995. Tenaska is a privately held energy company located in Omaha,
Chairman		Nebraska. In his 30-plus years of financial and operations
(2012 – present)		management experience in the banking and energy industries, Mr.
		Meyer has held positions with the United States Treasury Department’s
		Office of the Comptroller of the Currency, the Farm Credit System and
		the First National Bank of Omaha. Mr. Meyer is on the Board of
		Directors of the following privately held companies: Guild Mortgage
		Company, LLC in San Diego, California, a residential mortgage loan
		company; Amerisphere Multifamily Finance, LLC, in Omaha,
		Nebraska, a multifamily mortgage loan company; MarketSphere
		Consulting, LLC, in Omaha, Nebraska, an enterprise management and
		unclaimed property company; and Environmental Planning Group, LLC
		in Phoenix, Arizona, an environmental consulting group. Mr. Meyer
		has been designated as the Lead Independent Director of the Fund.

Robert Slezak		Mr. Slezak was elected Vice Chairman on April 10, 2012. Mr. Slezak
Age: 57		is currently an independent management consultant, and has been since
		November 1999. Prior to that, Mr. Slezak served as Vice President,
Director		Chief Financial Officer and Treasurer of the Ameritrade Holding
(2008 – present)		Corporation from January 1989 to November 1999 and as a director
		from October 1996 to September 2002. Mr. Slezak currently serves as
Vice Chairman		a member of the board of directors of Xanadoo Company, a provider of
(2012 – present)		wireless communication services and until 2013, served as a member
		of the board of directors of United Western Bancorp, Inc. Mr. Slezak
		has been determined to be an “audit committee financial expert” within
		the meaning of the Sarbanes Oxley Act of 2002 and the regulations
		related thereto by the Fund’s Board of Directors.

- 26 -

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Kelly A. Walters		Kelly A. Walters is currently Director, President and Chief Executive
Age: 54		Officer of Supertel Hospitality, Inc., a NASDAQ listed hospitality real
		estate investment trust based in Norfolk, Nebraska. Mr. Walters joined
Director		Supertel in April 2009 as President and CEO, and was elected to the
(2013 – present)		Supertel Board of Directors in April 2010. Prior to joining Supertel,
		Mr. Walters was the Senior Vice President of Capital Markets at
		Investors Real Estate Trust from October 2006 to March 2009. Prior to
		IRET, Mr. Walters was a Senior Vice President and Chief Investment
		Officer of Magnum Resources, Inc., a privately held real estate
		investment and operating company, from 1996 to 2006. Prior to
		Magnum, Mr. Walters was a Deputy Manager of Brown Brothers
		Harriman from 1993 to 1996, an Investment Manager at Peter Kiewit
		Sons, Inc. from 1985 to 1993, and a stockbroker at Piper, Jaffrey and
		Hopwood from 1983 to 1985. Mr. Walters has been determined to be
		an “audit committee financial expert” within the meaning of the
		Sarbanes Oxley Act of 2002 and the regulations related thereto by the
		Fund’s Board of Directors.

Lyn Wallin		Ms. Wallin Ziegenbein is an attorney and currently serves as the
Ziegenbein		Executive Director Emerita of the Peter Kiewit Foundation, a private
Age: 62		foundation awarding charitable grants throughout Nebraska and
		portions of Iowa and Wyoming, since April 2013 and served as the
Director		Executive Director of the Peter Kiewit Foundation since March, 1983.
(2013 – present)		Ms. Wallin Ziegenbein has served on the Board of Directors of
		Assurity Life Insurance Company since 1984 and of Lamp Rynearson
		Engineering. Previously, Ms. Wallin Ziegenbein served on the Federal
		Reserve Bank of Kansas City’s Omaha Branch Board of Directors from
		2006 to 2011. Ms. Wallin Ziegenbein’s prior experience also includes
		serving as a director of Norwest Bank Nebraska and Lincoln Telephone
		and Telegraph. Ms. Wallin Ziegenbein also served as an Assistant
		United States Attorney for Nebraska from 1978 to 1982.

*	Except as otherwise indicated, each individual has held the position shown or other positions in the same company for the last five years.

The address for all Fund Directors is 256 Durham Plaza, 8401 West Dodge Road, Omaha, Nebraska 68114

- 27 -

Interested Person Directors and Officers

The following Directors and Officers are interested persons of the Fund. The determination of an interested person is based on the definition in Section 2(a)(19) of the Investment Company Act of 1940 and Securities and Exchange Commission Release (Release No. IC-24083, dated October 14, 1999), providing additional guidance to investment companies about the types of professional and business relationships that may be considered to be material for purposes of Section 2(a)(19).

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Edson L.		Since December 2000, Mr. Bridges has been President, Chief
Bridges III, CFA		Executive Officer, and Director of Bridges Investment Management,
Age: 56		Inc. Since August of 1983, Mr. Bridges was a full-time member of the
		professional staff of Bridges Investment Counsel, Inc. where he has
President		served as Executive Vice President since 1993. Mr. Bridges is also a
(1997 – present)		Director of that firm. Mr. Bridges has been responsible for securities
		research and the investment management for an expanding base of
Chief Executive		discretionary management accounts, including the Fund, for more than
Officer		15 years. Mr. Bridges was elected President of Bridges Investment
(2004 – present)		Fund, Inc. on April 11, 1997, and he assumed the position of Portfolio
		Manager at the close of business on that date. Mr. Bridges became
Director		Chief Executive and Investment Officer of the Fund on April 13, 2004.
(1991 – present)		Mr. Bridges is Chairman and a director of Bridges Investor Services,
		Inc. and Chairman of the Board and a director of Provident Trust
		Company. Mr. Bridges became a Director of Stratus Fund, Inc., an
		open-end, regulated investment company located in Lincoln, Nebraska,
		in October, 1990 and is Chairman of the Audit Committee of the
		Stratus Fund.

Robert W.		Mr. Bridges is an Executive Director, Portfolio Manager, and Co-Head
Bridges, CFA		of Behavioral Finance at Sterling Capital Management LLC. Sterling
Age: 49		Capital Management LLC, located in Charlotte, North Carolina, is an
		investment management company founded in 1970. Mr. Bridges
Director		commenced his career with Sterling Capital Management, LLC in
(2007 – present)		1996 and served in a variety of capacities including client service,
		systems integration, and compliance before assuming his current
		position in 2000. Mr. Bridges has been a Director of Bridges
		Investment Counsel, Inc. since December 2006, and a Director of
		Provident Trust Company since 2007. Prior to joining Sterling, Mr.
		Bridges served in accounting, research analysis and several other roles
		for Bridges Investment Counsel, Inc. for six years. Mr. Bridges earned
		his B.S. in Business from Wake Forest University, and became a CFA
		charter holder in 2003.

- 28 -

Additional Officers of the Fund

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Edson L.		Mr. Bridges was elected Chairman Emeritus on April 15, 2006.
Bridges II, CFA		Mr. Bridges had previously served as Chairman, Vice-Chairman, Chief
Age: 82		Executive Officer, and President of the Fund. Mr. Bridges was
		replaced by Edson L. Bridges III as Chief Executive Officer of the
Chairman Emeritus		Fund on April 13, 2004. Since December 2000, Mr. Bridges has
(2006 – present)		served as a director of Bridges Investment Management, Inc. In
		September, 1959, Mr. Bridges became associated with the predecessor
Vice-Chairman		firm to Bridges Investment Counsel, Inc. and is presently the President,
(2005 – 2006)		Director, CEO, and Chief Compliance Officer of Bridges Investment
		Counsel, Inc. Mr. Bridges is also President and Director of Bridges
Chairman		Investor Services, Inc., and is President, Director, and Chief Executive
(1997 – 2005)		Officer of Provident Trust Company, chartered to conduct business on
March 11, 1992.
Chief Executive
Officer
(1997 – 2004)

President
(1970 – 1997)

Director
(1963 – 2007)

Nancy K. Dodge		Ms. Dodge has been an employee of Bridges Investment Management,
Age: 53		Inc. since 1994, where she serves as a Senior Vice President. After
		joining Bridges Investment Counsel, Inc. in January of 1980, her
Treasurer		career progressed through the accounting department of that Firm, to
(1986 – present)		her present position as Senior Vice President of Investor Support and
		Fund Services. Ms. Dodge is the person primarily responsible for
Chief Compliance		overseeing day to day operations for the Fund, and she is also the key
Officer		person for handling relations with shareholders, the custodian bank,
(2006 – present)		transfer agent, and the auditor. She was appointed Chief Compliance
		Officer of the Fund, as of November 21, 2006. Ms. Dodge is a Senior
		Vice President and Director of Bridges Investor Services, Inc., and a
		Senior Vice President and Trust Officer for Provident Trust Company.

- 29 -

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Brian		Mr. Kirkpatrick has been an employee of Bridges Investment
Kirkpatrick, CFA		Management since 1994. Mr. Kirkpatrick serves as a Senior Vice
Age: 43		President, Director of Research, Chief Compliance Officer, and
		Director of Bridges Investment Management. Having joined Bridges
Executive		Investment Counsel, Inc. on August 24, 1992, he is a Senior Vice
Vice President		President of Bridges Investment Counsel, and has been a full-time
(2006 – present)		member of the professional staff of Bridges Investment Counsel, Inc.,
		responsible for securities research, and the investment management for
Vice President		an expanding base of discretionary management accounts, including
(2000 – 2006)		the Fund, for more than 15 years. Mr. Kirkpatrick was appointed Sub
		Portfolio Manager of the Fund on April 12, 2005. Mr. Kirkpatrick also
		serves as a Senior Vice President for Provident Trust Company.

Mary Ann Mason		Ms. Mason has been an employee of Bridges Investment Management
Age: 63		since 1994, where she currently serves as Senior Vice President,
		Corporate Secretary, and Treasurer. She joined Bridges Investment
Secretary		Counsel, Inc. in June 1981, and currently is Senior Vice President,
(1987 – present)		Corporate Secretary and Treasurer of such entity, and the Secretary,
		Treasurer and Director of Bridges Investor Services, Inc. Ms. Mason
		also acts as Vice President, Secretary and Treasurer for Provident Trust
		Company.

Linda Morris		Ms. Morris has been an employee of Bridges Investment Management,
Age: 48		Inc. since 1994. Having joined Bridges Investment Counsel, Inc. in
		August of 1992, her career has been largely in the client accounting
		area where she currently serves as Associate Director of Accounting.
Assistant		Ms. Morris was elected Assistant Treasurer of the Fund in April, 1999.
Treasurer		Ms. Morris is also a Trust Assistant for Provident Trust Company.
(1999 – present)

- 30 -

Name, Age,
Position with
Fund and Term
of Office		Principal Occupation(s) and Directorships*
Trinh Wu		Ms. Wu has been an employee of Bridges Investment Management and
Age: 58		has served Bridges Investment Counsel, Inc. since February 1, 1997.
		Ms. Wu has functioned as the lead accountant for the day to day
Controller		operation of the Fund. Ms. Wu currently is the Senior Accountant of
(2001 – present)		Bridges Investment Counsel, Inc. Prior to her employment at Bridges
		Investment Management, Inc., Ms. Wu performed operating and
		accounting activities for 17 years in the Estate and Trust Department of
		the predecessor institutions to U.S. Bank, N.A. Nebraska. Ms. Wu was
		elected to the position of Controller of the Fund at the October 16,
		2001 meeting of the Board of Directors. Ms. Wu is also Vice President,
		Accounting and Internal Audits, for Provident Trust Company.

*	Except as otherwise indicated, each individual has held the position shown or other positions in the same company for the last five years.

The address for all Fund Officers is 256 Durham Plaza, 8401 West Dodge Road, Omaha, Nebraska 68114

The Statement of Additional Information (SAI) includes additional information about Fund directors and is available at the Fund’s website, www.bridgesfund.com, or by calling 1-800-939-8401.

- 31 -

BRIDGES INVESTMENT FUND, INC.

8401 West Dodge Road

Omaha, Nebraska 68114

Telephone 402-397-4700

Facsimile 402-397-8617

Directors

	Daniel J. Brabec	Michael C. Meyer
	Edson L. Bridges III	Robert T. Slezak
	Robert W. Bridges	Kelly A. Walters
	Nathan Phillips Dodge III	Lyn Wallin Ziegenbein
	Adam M. Koslosky

Officers

	Michael C. Meyer	Chairman and Lead Independent Director
	Robert T. Slezak	Vice Chairman
	Edson L. Bridges II	Chairman Emeritus
	Edson L. Bridges III	President and Chief Executive and
		Investment Officer
	Brian M. Kirkpatrick	Executive Vice President
	Mary Ann Mason	Secretary
	Nancy K. Dodge	Treasurer and Chief Compliance Officer
	Linda J. Morris	Assistant Treasurer
	Trinh Wu	Controller

Independent Registered Public Accounting Firm

	Cohen Fund Audit Services, Ltd.
	1350 Euclid Avenue, Suite 800
	Cleveland, Ohio 44115

	Corporate Counsel	Counsel to Independent Directors

	Baird, Holm, LLP	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

	Distributor

	Quasar Distributors, LLC
	615 East Michigan Street
	Milwaukee, Wisconsin 53202

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not applicable to registrants who are not listed issuers (as defined in Rule 10A-3 under the Securities Exchange Act of 1934).

Item 6. Investments.

(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not Applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable to open-end investment companies.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 11. Controls and Procedures.

(a)

The Registrant’s President and Treasurer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider.

(b)

There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12. Exhibits.

(a)	(1) Any code of ethics or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy Item 2 requirements through filing an exhibit. Incorporated by reference to the Registrant’s Form N-CSR filed March 3, 2008.

(2) A separate certification for each principal executive and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.

(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.

(b)	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Bridges Investment Fund

By (Signature and Title)* /s/ Edson L. Bridges III

Edson L. Bridges III, President, CEO, CIO

Date August 25, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ Edson L. Bridges III

Edson L. Bridges III, President, CEO, CIO

Date August 25, 2015

By (Signature and Title)* /s/ Brian M. Kirkpatrick

Brian M. Kirkpatrick, Executive Vice President

Date August 25, 2015

By (Signature and Title)* /s/ Nancy K. Dodge

Nancy K. Dodge, Treasurer, CCO

Date August 25, 2015

* Print the name and title of each signing officer under his or her signature.