-----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, UBuQq9kCRPaAFHM0RiuPQCVEwdULiTZaElPAe1qn5wBF8vi2b61dD5Nl+FtEw7T2 h8uk6FzHvjjX0HMG0IZZWw== 0000765924-97-000001.txt : 19970222 0000765924-97-000001.hdr.sgml : 19970222 ACCESSION NUMBER: 0000765924-97-000001 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970220 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OMNI INVESTMENT FUND CENTRAL INDEX KEY: 0000765924 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 363344166 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-04273 FILM NUMBER: 97539542 BUSINESS ADDRESS: STREET 1: 53 W JACKSON BLVD STREET 2: STE 818 CITY: CHICAGO STATE: IL ZIP: 60604 BUSINESS PHONE: 3129220355 N-30D 1 THE BERGER SMALL CAP VALUE FUND FORMERLY KNOWN AS THE OMNI INVESTMENT FUND DECEMBER 31, 1996 ANNUAL REPORT TABLE OF CONTENTS Portfolio Manager's Letter 2 Report of Independent Auditors 5 Portfolio of Investments 6 Statement of Assets and Liabilities 8 Statement of Operations 9 Statement of Changes in Net Assets 9 Financial Highlights 10 Notes to Financial Statements 11
the omni investment fund portfolio manager's letter The Omni Investment Fund Dear Shareholder: The Omni Investment Fund (whose name is proposed to be changed to the Berger Small Cap Value Fund on February 14, 1997, as explained in Note 6 of the Financial Statements) turned in a strong performance in 1996. In a year led, primarily, by gains among large cap stocks, the Fund's small cap value stocks delivered a total return of 25.6%, which was nearly equal to the large cap stock-dominated Dow Jones Industrial Average's return of 26%. The Fund's 1996 return was significantly higher than the 16.5% total return registered by the Russell 2000, a stock index which is widely regarded in the industry as the premier measure of small cap stocks. The Fund's average annual total return for the five-year period ended December 31, 1996 was 18.6%; since inception (October 21, 1987, the date of its public offering), the Fund's average annual total return through December 31, 1996 was 14.4%.* We were very pleased to receive two high industry rankings for the Fund's past performance. The Fund received an -A' rating from The Wall Street Journal for its one-year, three-year and five-year performance for these periods ended December 31, 1996.** Additionally, the well-known fund evaluator, Morningstar, gave the Fund a 4 star rating for its one-year performance, its highest rating-5 stars-for the Fund's three-year and five-year performance, and 3 stars for its ten-year performance for these periods ended December 31, 1996.*** Identifying Value Stocks The Fund's investment objective is capital appreciation. We seek to achieve this objective by using a -value style' investment process, which focuses on the common stocks of, primarily, small cap companies (market capitalization of less than $1 billion at the time of initial purchase) we believe to be undervalued relative to their assets, earnings, cash flow or business franchise. The potential rewards of this investment style are well-illustrated by the performance of stocks in an industry sector we invested in only recently--equipment manufacturers for the semiconductor industry. Stocks of many of these companies were once considered to be growth stocks; they were selling at 20-25 times earnings and everyone wanted to own them. Wall Street analysts followed them very closely. But, then, the fundamentals of the industry changed and the high-flyers nose dived. Stock prices plummeted 60-70% and, not surprisingly, analysts were no longer interested. That's when they became value stocks and we began to take note. The more we investigated the underlying value of some of these companies, the more convinced we were that they had the financial strength to weather what were likely to be short-term problems. We bought six semiconductor equipment manufacturers in the fourth quarter 1996, including Tencor Instruments and Teradyne. By year-end, these stocks registered gains of 30-50%-enough to account for about one-fifth (4-5 percentage points) of the Fund's total return for 1996. It's important to realize, of course, that most value stocks don't turn around this fast or this dramatically. I expect the stocks I select for the Fund's portfolio to fully develop to their potential within about 24 months. Fund Winners in 1996 The Fund's 1996 performance also benefited from developments in two other industries-natural gas and financial. Performance of Fund holdings in the natural gas area was bolstered by the firming of natural gas prices. In the financial area, companies continue to consolidate. Three of our financial stocks-American Reinsurance, California Federal and Walden Bancorp-were bought out at attractive prices. Finally, I have to say that Fund performance was helped by the fact that there were no disasters or major surprises in 1996. A Well-Diversified Portfolio We enter 1997 with a well-diversified portfolio. Capital Goods, Thrifts and Semiconductors constitute the largest percentage of portfolio emphasis at 15%, 16% and 15% respectively, followed by Consumer (11%), Natural Resources (11%), Banks (10%), Insurance (6%), Communications (4%), Closed-End Mutual Funds (4%), and Real Estate (2%). The Fund's 5% cash position at year-end reflects our belief in staying fully invested and in the ability of undervalued securities to hold up better than the general market in case of a major downturn. 1997 Outlook-A Year of Opportunity We see great opportunity for small cap value stocks in 1997 for several reasons. First, large company stocks, which dominated market performance in 1995 and 1996, may now be fully valued. This is largely attributable to a remarkable run-up of nearly 70% in the compound total return for the S&P 500 over this two-year period and to an anticipated 1997 economic scenario of higher corporate profits (4-6%) and slightly higher long-term interest rates around 7%. Another reason we are optimistic about small cap value stocks in 1997 is the fact that small cap company market performance lagged large company performance in 1996. As a result, small company stock prices, unlike those of large company stocks, may not yet be fully valued. What about value versus growth stocks in the small cap area? Here, too, we see reason for optimism. According to the accompanying chart, which shows the relative performance of small cap value stocks versus small cap growth stocks, the price-earnings ratio of value stocks is at a level not seen since 1982. While there can be no guarantee that history will repeat itself, from the second quarter of 1983 to the third quarter of 1986, small cap value stocks rose 44% and growth stocks gained only 13%. We continue to believe that our area of specialty-small cap value companies-is largely neglected and that their stock prices are well below inherent value. This was certainly the case for semiconductor equipment manufacturers in 1996. At the time we purchased them, these formerly high-flying companies had retreated from their lofty price levels and had virtually no following in the investment community. But, they had strong financials. To us, there is greater potential reward to be had, at much less risk, by investing in stocks that have had the market "exuberance" wrung out of them and that have the strong financials necessary to recover from temporary setbacks and move ahead. Thank you for your confidence and your investment in the Fund. Sincerely, Robert H. Perkins Portfolio Manager *Performance figures are based on historical results and are not intended to be indicative of future performance. 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 that their original cost. **The Wall Street Journal proprietary ratings reflect historical performance (average annual total returns) through 12/31/96. The Fund was rated among 134 funds in the Wall Street Journal's capital appreciation category. the percentage of such funds included in each rating category are as follows: A=top 20%; B=next 20%; C=middle 20%; D=next 20%; E=bottom 20%. ***Morningstar's proprietary ratings reflect historical risk-adjusted performance through 12/31/96. The ratings are subject to change every month. Ratings are calculated from the Fund's one-, three-, five- and ten- year average annual total returns in excess of 90-day Treasury bill returns, with appropriate fee adjustments and a risk factor that reflects fund performance below 90-day T-bill returns. If was rated among 2,959; 1,826; 1,058 and 598 funds in Morningstar's equity category for the one-, three-, five- and ten-year periods respectively. 10% of the funds in an investement category receive 5 stars, the next 22.5% receive 4 stars and the next 35% earn 3 stars. COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTEMENT IN OMNI INVESTMENT FUND VS. RUSSELL 2000 AND COST OF LIVING INDEX (DESCRIPTION OF OMNI INVESTEMMENT FUND PERFORMANCE CHART) The following table reflects data presented in a line chart at this point in the Annual Report to Shareholders. The chart compares the value of shares invested in Omni Investment Fund to the Russell 2000 Index and the Cost of Living Index. The chart is based on an initial investment of $10,000 on October 21, 1987 with all dividends and capital gains reinvested. Also included is a smaller chart reflecting the Omni Investment Fund's Average annual Total Return as of December 31, 1996 for 1 year-- 25.6%, 5 years--18.6% amd 10 years--14.4%.
Total Value Date Omni Russell Cost of 2000 Living 10/21/87 $10,000 $10,000 $10,000 12/31/87 9,907 9,266 10,009 12/31/88 11,897 11,584 10,451 12/31/89 15,042 13,468 10,937 12/31/90 11,742 10,845 11,605 12/31/91 14,675 15,838 11,960 12/31/92 17,552 18,754 12,307 12/31/93 20,408 22,294 12,645 12/31/94 21,776 21,888 12,984 12/31/95 27,450 28,115 13,313 12/31/96 34,478 32,752 13,755
the omni investment fund report of independent auditors The Board of Trustees and Shareholders The Omni Investment Fund We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of The Omni Investment Fund as of December 31, 1996, and the related statements of operations for the year then ended and changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the fiscal periods since 1989. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods ended December 31, 1988 and 1987 were audited by other auditors whose report dated February 23, 1989, expressed an unqualified opinion. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 1996, by correspondence with the central depositories and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Omni Investment Fund at December 31, 1996, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the fiscal periods since 1989, in conformity with generally accepted accounting principles. ERNST & YOUNG LLP Chicago, Illinois January 24, 1997
The Omni Investment Fund Portfolio Of Investments - December 31, 1996 Shares, or Principal Amount Value COMMON STOCKS Banks - 9.8% 27,569 First Commerce Corp. $ 1,071,745 (a) 40,200 Imperial Bancorp 964,800 39,500 Walden Bancorp Inc. 1,510,875 Total banks 3,547,420 Capital goods - 15.4% (a) 70,900 Anangel American Shipping Holdings 567,200 (a) 91,600 Bucyrus International Inc. 801,500 (a) 19,000 Eltron International Inc. 382,375 (a) 52,600 ILC Technology Inc. 683,800 (a)270,000 Kaneb Services Inc. 877,500 80,500 M.C. Shipping Inc. 332,063 99,200 Simpson Industries Inc. 1,080,387 45,000 Walbro Corp. 821,250 Total capital goods 5,546,075 Closed end mutual funds - 4.3% 50,000 Latin American Discovery Fund 625,000 83,500 Morgan Stanley Asia Pacific Fund 814,125 9,200 New Germany Fund Inc. 123,050 Total closed end mutual funds 1,562,175 Communications - 3.5% (a) 58,000 Centennial Cellular Corp. 703,250 (a) 52,000 Jones Intercable Inc. 552,500 Total communications 1,255,750 Consumer goods and services - 11.2% 14,500 Bob Evans Farms, Inc. 195,750 (a) 53,100 Congoleum Corp. 736,763 (a) 49,500 Department 56 Inc. 1,206,562 (a)100,000 Designs Inc. 562,500 (a) 81,000 Lechters Inc. 410,103 50,000 Lillian Vernon Corp. 612,500 (a) 33,500 Perrigo Co. 305,687 Total consumer goods and services 4,029,865 Insurance - 6.0% 24,000 Allied Group 783,000 52,200 Old Republic Int'l Corp.1,396,350 Total insurance 2,179,350 Natural resources -10.9% (a) 30,000 Chieftain Int'l Inc. 780,000 25,500 Coflexip 669,375 18,000 Pogo Producing Co. 850,500 (a) 35,000 Seagull Energy Corp. 770,000 50,000 Snyder Oil Corp. 868,750 Total natural resources 3,938,625 Real estate - 1.8% 43,500 Town & Country Trust 636,187 Total real estate 636,187 Semiconductors - 15.4% (a) 18,500 Atmel Corp. 612,813 (a) 52,800 C.P. Clare Corp. 528,000 (a) 34,700 Electroglas Inc. 559,537 5,200 Intel Corp. 680,878 (a) 15,000 Network Equipment Technologies 247,500 (a) 45,000 Silicon Valley Group 905,625 (a) 76,000 Telcom Semiconductor Inc. 313,500 (a) 30,000 Tencor Instruments 791,250 (a) 22,000 Teradyne 536,250 (a) 16,000 Ultratech Stepper Inc. 380,000 Total semiconductors 5,555,353 Thrifts - 16.2% 22,000 American Bank of Connecticut 616,000 (a) 10,000 California Federal Savings Bank 245,000 (a) 5,600 California Federal Savings - goodwill 78,400 22,000 Commercial Federal Corp.1,056,000 50,000 First Financial Corp. 1,225,000 (a) 71,000 Mechanics Savings Bank 1,118,250 57,500 Medford Savings Bank 1,480,625 Total thrifts 5,819,275 Total common stocks - 94.5% (cost: $26,005,789) 34,070,075 SHORT-TERM TREASURY SECURITIES: $800,000 U.S. Treasury Bills - 5.16% Due 02/27/97 793,632 100,000 U.S. Treasury Bills - 5.19% Due 03/06/97 99,103 900,000 U.S. Treasury Bills - 5.22% Due 03/13/97 891,018 Total short-term treasury securities - 4.9% (cost: $1,779,915) 1,783,753 Total investments - 99.4% - (cost: $27,785,704) 35,853,828 Covered call options written - (0.1%) Intel Corp. $140 expiring 04/18/97 (premiums received: $56,866) (Contracts 52) (49,400) Other assets less liabilities - 0.7% 236,221 Net assets - 100% $ 36,040,649
Notes to Portfolio of Investments: (a) Non-income producing security. (b) Based on the cost of investments of $27,785,704 and premiums received for options written of $56,866 for Federal income tax purposes at December 31, 1996, the aggregate gross unrealized appreciation was $8,754,872, the aggregate gross unrealized depreciation was $679,282 and the net unrealized appreciation of investments was $8,075,590. See accompanying Notes to Financial Statements
THE OMNI INVESTMENT FUND STATEMENT OF ASSETS AND LIABILITIES December 31, 1996 ASSETS Investments, at value (Cost: $27,785,704) $ 35,853,828 Cash 53,008 Receivables for investments sold 379,366 Receivable for capital shares sold 7,662 Dividends receivable 142,033 Interest receivable 207 Total assets 36,436,104 LIABILITIES Options written, at value (Premiums received: $56,866) 49,400 Payable for investments purchased 42,316 Payable for capital shares redeemed 12,546 Accrued expenses 10,000 Advisory fees payable 30,537 Dividends payable 250,656 Total liabilities 395,455 Net assets applicable to 2,186,549 shares outstanding, equivalent to $16.48 per share $ 36,040,649 Net assets consist of: Shares of beneficial interest, $.01 par value 21,865 Additional paid-in capital 27,851,143 Undistributed net realized gains 75,831 Unrealized appreciation of investments and options written 8,075,590 Undistributed net investment income 16,220 Net assets applicable to shares outstanding $ 36,040,649
See accompanying Notes to Financial Statements.
THE OMNI INVESTMENT FUND STATEMENT OF OPERATIONS Year ended December 31, 1996 Investment income: Dividends $ 495,456 Interest 209,855 Total investment income 705,311 Expenses: Investment advisory fees 325,488 Custodian fees 10,934 Transfer agent fees 26,836 Regulatory fees 27,708 Legal fees 25,492 Auditing fees 23,000 Other expenses 41,367 Total expenses 480,825 Net investment income 224,486 Net realized and unrealized gain (loss) on investments: Net realized gain on sales of investments 3,595,804 Net realized loss on covered call options written (153,312) Net realized gain on investments 3,442,492 Change in net unrealized appreciation of investments 3,815,909 Net realized and unrealized gain on investments 7,258,401 Net increase in net assets resulting from operations $ 7,482,887
STATEMENTS OF CHANGES IN NET ASSETS Year ended Year ended December 31, 1996 December 31, 1995 Operations: Net investment income $ 224,486 $ 175,346 Net realized gain on investments 3,442,492 2,781,540 Change in net unrealized appreciation of investments 3,815,909 3,049,072 Net increase in net assets resulting from operations 7,482,887 6,005,958 Dividends to shareholders from: Net investment income (208,266) (175,346) Net realized gains (3,401,673) (2,804,377) Net increase from capital share transactions 335,177 10,536,459 Total increase in net assets 4,208,125 13,562,694 Net assets: Beginning of year 31,832,524 18,269,830 End of year (including undistributed net investment income of $16,220 and $0, respectively) $ 36,040,649 $ 31,832,524
THE OMNI INVESTMENT FUND FINANCIAL HIGHLIGHTS Eleven mos. Year ended December 31, ended Dec. 31, 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987(a) Per share operating peformance (b): Net asset value at beginning of period $14.57 $12.75 $13.99 $13.39 $11.39 $9.23 $12.19 $11.21 $10.06 $11.33 Income (loss) from investment operations: Net investment income (loss) 0.12 0.09 (0.01) 0.03 0.09 0.14 0.28 0.23 0.24 0.21 Net realized and urealized gain (loss) on investments 3.62 3.23 0.91 2.14 2.14 2.16 (2.95) 2.71 1.77 (0.29) Total from investment operations 3.74 3.32 0.90 2.17 2.23 2.30 (2.67) 2.94 2.01 (0.08) Dividends: Dividends from net investment income (0.11) (0.09) 0.00 (0.03) (0.10)(0.14) (0.29) (0.22) (0.24) (0.20) Dividends from net realized gain on investments (1.72) (1.41) (2.14) (1.54) (0.13) 0.00 0.00 (1.74 (0.62) (0.99) Total dividends (1.83 (1.50) (2.14) (1.57) (0.23)(0.14) (0.29) (1.96) (0.86) (1.19) Net asset value at end of period $16.48 $14.57 $12.75 $13.99 $13.39 $11.39 $19.23 $12.19 $11.21 $10.06 Total Return (%): 25.58 26.07 6.74 16.25 19.59 25.01 (21.94) 26.44 20.09 (0.68) Ratios to average net assets (%): Expenses 1.48 1.64 1.43 1.31 1.41 1.52 1.84 1.78 1.44 1.69 Net investment income (loss) 0.69 0.64 (0.04) 0.18 0.73 1.24 2.34 1.85 2.33 1.87 Portfolio turnover rate (%) 69 90 125 108 105 130 146 118 103 189 Average commission rate paid per share $0.1015 - - - - - - - - - Total net assets at end of period (in thousands) $36,041 $18,270 $14,007 $9,839 $9,976 $31,833 $16,309 $11,940 $13,576 $6,748
Note: (a) Effective October 20, 1987 the Fund became publicly registered under the Investment Company Act of 1940. Prior thereto, its shares were not publicly offered. (b) Prior to December 31, 1994, the per share amounts have been adjusted for a 10 for 1 share split which occurred September 30, 1994. (c) Annualized. Notes to Financial Statements / December 31, 1996 1. Significant accounting policies The Omni Investment Fund (the -Fund') is a series of the Massachusetts business trust also known as The Omni Investment Fund (the -Trust'), registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The investment objective of the Fund is to seek capital appreciation by investing primarily in the common stocks of companies that the Fund's investment advisor believes are experiencing, or have the potential to experience, growth in revenues, earnings or assets or companies that are undervalued relative to their assets. Security valuation Investments are stated at value. Investments in securities traded on a national securities exchange or reported on the Nasdaq System for which last sale information is regularly reported are valued at the last reported sales prices on their primary exchange or the Nasdaq System that day. Unlisted securities and securities traded on the Nasdaq System for which last sales prices are not regularly reported but for which over-the-counter market quotations are readily available are valued at the mean of the last quoted bid price and the last quoted asked price at the time of valuation, or if no quoted bid or asked price is reported, on the basis of the mean of bid and asked prices obtained from a dealer who maintains an active market in that security. Unlisted debt securities or debt securities having an inactive market are valued based upon the mean of bid and offered prices obtained from dealers maintaining an active market in the security. Securities not having readily available market quotations are valued at fair value determined in good faith by the Board of Trustees. Other short-term debt securities with a remaining maturity of more than 60 days are valued at the mean of the bid and offered price obtained from a dealer which maintains an active market in that security; and other short-term debt securities (having a remaining maturity of 60 days or less) are valued at cost, adjusted for amortization of premiums and accretion of discounts, which approximates value. Federal income taxes The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and, in the manner provided therein, to distribute all of its taxable income to its shareholders. Such provisions are being complied with and therefore no federal income tax provision is required. Distributions to shareholders Distributions to shareholders are recorded by the Fund on the ex-dividend date. Distributions of net investment income and capital gains are determined in accordance with income tax regulations. Fund share valuation Fund shares are sold and redeemed on a continuous basis at net asset value. On each day the New York Stock Exchange is open for trading, the net asset value per share is determined (as of 4:00 p.m. New York time) by dividing the total value of the Fund's investments and other assets, less liabiblites, by the nubmer of fund shares outstanding. Other The Fund records security transactions on the trade date. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Discounts on fixed income securities are amortized over the life of the respective securities. Realized gains and losses from investment transactions are reported on an identified cost basis. 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 amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 2. Investments Purchases and proceeds from sales of investments (excluding short-term obligations) for the year ended December 31, 1996 were $19,779,745 and $20,287,521, respectively. 3. Capital share transactions The following table summarizes the activity in capital shares of the Fund:
Year ended Year ended December 31, 1996 December 31, 1995 Shares Amount Shares Amount Shares sold 196,908 $3,119,256 677,474 $19,507,691 Shares issued in reinvestment of dividends from net investment income and net realized gains 203,848 3,359,418 192,870 2,798,929 Total 400,756 6,478,674 870,344 12,306,620 Less shares redeemed 398,665 6,143,497 118,518 1,770,161 Net increase in shares outstanding 2,091 $3,335,17 751,826 $10,536,459
4. Investment advisory fees and other transactions with affiliates The Fund pays advisory fees for investment management and advisory services under a management agreement with Perkins, Wolf, McDonnell & Co. (PWM) that provides for fees at an annual rate of 1% of average daily net assets, payable monthly. During the year ended December 31, 1996, the Fund incurred advisory fees of $325,488. Portfolio transactions for the Fund have been executed through PWM, consistent with the Fund's policy of obtaining the best price and execution. PWM acted as custodian for the Fund's investments through December 31, 1996. Effective January 1, 1997 Investors Fiduciary Trust Company became the Fund's custodian and transfer agent. For the year ended December 31, 1996, PWM received commissions of $306,562 from purchases and sales of the Fund's portfolio investments and received custodian fees of $10,934. During the year ended December 31, 1996, the Fund paid fees to its unaffiliated trustees of $4,350. 5. Covered call options written The Fund may write call options on investments held in its portfolio. Transactions in options written for the year ended December 31, 1996 were as follows:
Number of Premiums Contracts Received Options outstanding at beginning of year - - Options written 278 $ 184,337 Options closed (226) (127,471) Options outstanding at end of year 52 $ 56,866
The Fund may write covered call options to protect against market risk due to market movements that may adversely effect the value of the Fund's securities. 6. Other Matters A special meeting of shareholders of the Fund has been scheduled for February 13, 1997, at which shareholders will consider approval of a number of actions facilitating the Fund becoming part of the Berger Funds family of mutual funds, including the following: (a) election as trustees of the Trust 10 new individuals who also serve as trustees of other Berger Funds; (b) approval of a new Investment Advisory Agreement with Berger Associates, Inc. (-Berger'), pursuant to which the Fund will pay Berger a fee at the annual rate of 0.90% of the Fund's average daily net assets for its services; (c) approval of a new Sub-Advisory Agreement between Berger and PWM, pursuant to which Berger will pay PWM a fee at the annual rate of 0.90% of the first $75 million of average daily net assets of the Fund, 0.50% of the next $125 million, and 0.20% of any amount in excess of $200 million for sub-advisory services; (d) approval of amendments to the Trust's Declaration of Trust to permit the establishment of multiple classes of shares. If the foregoing matters are approved by shareholders, the Trust and the Fund will implement the following additional arrangements: the Trust will enter into an Administrative Services Agreement with Berger pursuant to which Berger will be paid a fee at the annual rate of 0.01% of the Fund's average daily net assets for administrative services, and enter into a Distribution Agreement with Berger Distributors, Inc. (-BDI'), a wholly-owned broker-dealer subsidiary of Berger, for BDI to act as the principal underwriter of the Fund. BDI will not be entitled to any compensation in connection with its services under the Distribution Agreement. In addition, the Fund will implement a multiple class share structure, with the Fund's existing shares being designated as -Institutional Shares' and a new class of shares known as -Investor Shares' being established. The Fund's multiple share structure is set forth in a Rule 18f-3 Plan adopted by the Trustees under the Investment Company Act of 1940. A Rule 12b-1 Plan for the Investor Shares of the Fund will also be implemented, pursuant to which Berger will be paid a fee of 0.25% per annum of the Fund's average daily net assets attributable to the Investor Shares to finance activities primarily intended to result in the sale of Investor Shares. In addition, if the foregoing matters are implemented, the name of the Fund will be changed to -Berger Small Cap Value Fund' and the name of the Trust will be changed to -Berger Omni Investment Trust.' TRUSTEES OF BERGER OMNI INVESTMENT TRUST Michael Owen, Chairman--Dennis E. Baldwin--William M.B. Berger Louis R. Bindner, P.E.--Katherine A. Cattanach--Lucy Black Creighton-- Paul R. Knapp--Gerard M. Lavin--Harry T. Lewis, Jr.--William Sinclaire Officers: Gerard M. Lavin, President Kevin R. Fay, Vice President, Secretary and Treasurer Craig D. Cloyed, Vice President David J. Schultz, Assistant Treasurer Susan G. Kohlman, Assistant Treasurer Janice M. Teague, Assistant Secretary Investment Advisor: Berger Associates, Inc. PO Box 5005 Denver, Colorado 80217 1-303-329-0200 or 1-800-333-1001 -----END PRIVACY-ENHANCED MESSAGE-----