-----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, AJ5dbNbp+vo+fPA5RRLppiQ0cwq13k/wc9rOfsjK3yCLTNywNoxUv188yUn5rhfa eEuhBCFJf2uzXTE6Nfeujw== /in/edgar/work/20000526/0001035704-00-000384/0001035704-00-000384.txt : 20000919 0001035704-00-000384.hdr.sgml : 20000919 ACCESSION NUMBER: 0001035704-00-000384 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000526 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BERGER OMNI INVESTMENT TRUST CENTRAL INDEX KEY: 0000765924 STANDARD INDUSTRIAL CLASSIFICATION: [0000 ] IRS NUMBER: 363344166 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-04273 FILM NUMBER: 644886 BUSINESS ADDRESS: STREET 1: 210 UNIVERSITY BLVD STREET 2: STE 800 CITY: DENVER STATE: CO ZIP: 80206 BUSINESS PHONE: 3033364563 MAIL ADDRESS: STREET 1: 210 UNIVERSITY BLVD STREET 2: STE 800 CITY: DENVER STATE: CO ZIP: 80206 FORMER COMPANY: FORMER CONFORMED NAME: OMNI INVESTMENT FUND DATE OF NAME CHANGE: 19920703 N-30D 1 SEMI ANNUAL REPORT DATED MARCH 31, 2000 1 March 31, 2000 SEMI-ANNUAL REPORT [BERGER FUNDS LOGO] BERGER INFORMATION TECHNOLOGY FUND BERGER NEW GENERATION FUND BERGER SELECT FUND BERGER SMALL COMPANY GROWTH FUND BERGER SMALL CAP VALUE FUND BERGER MID CAP GROWTH FUND BERGER MID CAP VALUE FUND BERGER GROWTH FUND BERGER/BIAM INTERNATIONAL FUND BERGER GROWTH AND INCOME FUND BERGER BALANCED FUND 2 Berger Funds are presenting a combined semi-annual report which includes Berger Information Technology Fund, Berger New Generation Fund, Berger Select Fund, Berger Small Company Growth Fund, Berger Small Cap Value Fund, Berger Mid Cap Growth Fund, Berger Mid Cap Value Fund, Berger Growth Fund, Berger BIAM/International Fund, Berger Growth and Income Fund, and Berger Balanced Fund. This report reflects the financial position of each Fund at March 31, 2000 and the results of their operations and changes in their net assets for the periods indicated, in a single document. 3 Berger Funds 3 Berger Funds o March 31, 2000 Combined Semi-Annual Report Table of Contents - -------------------------------------------------------------------------------- A Message for Berger Investors ............................................................................ 4 BERGER FUNDS Berger Information Technology Fund ........................................................................ 6 Berger New Generation Fund ................................................................................ 11 Berger Select Fund ........................................................................................ 16 Berger Small Company Growth Fund .......................................................................... 19 Berger Small Cap Value Fund ............................................................................... 24 Berger Mid Cap Growth Fund ................................................................................ 29 Berger Mid Cap Value Fund ................................................................................. 32 Berger Growth Fund ........................................................................................ 36 Berger/BIAM International Fund ............................................................................ 40 Berger Growth and Income Fund ............................................................................. 42 Berger Balanced Fund ...................................................................................... 46 FINANCIAL STATEMENTS AND NOTES Statements of Assets and Liabilities ...................................................................... 50 Statements of Operations .................................................................................. 52 Statements of Changes in Net Assets ....................................................................... 54 Berger/BIAM International Fund Financial Statements ....................................................... 58 Berger Funds Notes to Financial Statements ................................................................ 60 Berger/BIAM International Portfolio Financial Statements .................................................. 67 (to be read in conjunction with the Berger/BIAM - International Fund) Berger/BIAM International Portfolio Notes to Financial Statements ......................................... 73 FINANCIAL HIGHLIGHTS ...................................................................................... 76
To obtain a prospectus for any of the Berger Funds, which contains more complete information, including risks, fees and expenses, call (800) 551-5849. Please read it carefully before you invest. Berger Distributors LLC - Distributor www.bergerfunds.com 4 4 Berger Funds o March 31, 2000 Combined Semi-Annual Report A Message To Our Shareholders - -------------------------------------------------------------------------------- Dear Berger Investor: Investors have enjoyed extraordinary times over the last few years. In fact, last year a record number of mutual fund investors saw stellar performance that could well have been a once in a lifetime experience. More recently, however, we've had a strong dose of market volatility. The spring of 2000 has been marked by steep dives and dizzying ascents that could leave even experienced investors a little unsettled. While this semiannual report is required to discuss the six-month period ended March 31, I'd also like to offer a little perspective on April's events. Through the end of March, nine of eleven Berger Funds outpaced their benchmarks. Clearly market conditions had for some time favored the growth investors, and results for Berger Funds demonstrate that. Berger's New Generation, Select, Small Company Growth, Mid Cap Growth, Information Technology, Growth, Growth and Income, and Balanced Funds continued the excellent performance they demonstrated in 1999. Our value funds, Small Cap and Mid Cap and International, showed smaller gains. The International Fund topped the EAFE Index,(1) while the other two beat their value benchmarks but lagged the broader Russell 2000(1) and Standard & Poor's Mid Cap 400(1) indices. As all investors are aware, the picture has changed. The huge gap between the old economy stocks represented by the blue chips and the technology stocks of the new economy had to narrow. Enter the correction. It's been a bumpy ride, but our investment team believes the correction has been necessary to shake out excesses in the market and will be healthy over the long term. Berger's portfolio managers and analysts remain confident in the fundamentals of the companies held in the Funds and have taken advantage of this opportunity to buy quality companies at the most reasonable valuations seen in some time. Despite the market's severe "mood swings" and the belief that continued volatility should be expected, our investment team remains optimistic about the long-term prospects for the stock market. I encourage you to call Investor Services at (800) 551-5849 or visit our Web site at bergerfunds.com for performance information that reflects current events. I also encourage you to read the semiannual commentaries by each portfolio manager that appear later in this report. The market's dramatic moves have been enough to leave even the most committed long-term investors a little weak in the knees, but keep the following in mind: o Our domestic economy is very healthy. o The market seems comfortable with the actions of the Federal Reserve even though additional interest rate hikes remain possible. o The most recent earnings reports were very strong overall. One of the most important things we as investors can do now is to maintain realistic expectations. History tells us it would be a mistake to look for exceptional double- and even triple-digit returns to continue. As investors we should expect annual returns more in line with the long-term historical return of 12%. 5 Berger Funds 5 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Other basics to keep in mind include: o Know yourself. Risk is inherent in the stock market. It's important to understand the relationship between risk and reward. Ask yourself how much risk are you really able to tolerate. Find your comfort zone. o Keep short-term market moves in perspective. Trying to "time" the market is extremely risky. o Invest for the long term. Although individual stocks generally are more volatile, the long-term trend of the stock market has been to outperform other types of investments. Historically the stock market spends more time going up than down. Successful investors are patient. o Invest regularly. As a committed long-term investor, dollar cost averaging can help you accumulate shares with less price risk than buying a large block of shares all at once.(2) o Diversify your holdings. The market tends to favor or punish certain sectors at various times. To reduce your overall portfolio volatility, you might divide your investments across market capitalizations, put some money into an international fund, and invest in both value and growth funds. Regardless of the twists and turns the market may take, at Berger we remain focused on our goal of producing consistently competitive performance over time in every Berger Fund. We are in the process of building a cohesive investment team composed of talented, forward-thinking individuals. We've made very encouraging progress and remain dedicated to making every effort to meet the expectations of our investors. Sincerely /s/ JACK R. THOMPSON Jack R. Thompson President Past performance is no guarantee of future results. 1. The Morgan Stanley Capital International EAFE Index represents major overseas markets. The Russell 2000 Index represents small cap U.S. stocks. The Standard & Poor's Mid Cap 400 Index represents mid cap U.S. stocks. 2. Periodic investing does not assure a profit or protect against loss in a declining market. You should consider your ability to continue your purchases through periods of low price levels before investing. This material must be preceded or accompanied by a prospectus. Berger Distributors LLC - Member NASD.(5/00) 6 6 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol - Investor Shares BINVX - Institutional Shares BINFX Fund Number - Investor Shares 912 - Institutional Shares 913 Berger Information Technology Fund PORTFOLIO MANAGER COMMENTARY WILLIAM F. K. SCHAFF - -------------------------------------------------------------------------------- Performance The Berger Information Technology Fund (the "Fund") gained 127.82% (Investor Shares) and 128.23% (Institutional Shares) for the six-month period ended March 31, 2000. Its benchmark, the Wilshire 5000 Index,(1) gained 22.78% over the same period. The technology sector outshone all others for the first five months of this reporting period. Then, in March, high volatility roiled the sector, shaking the confidence of many technology investors and driving down prices. Period in Review The few semiconductor stocks we own were the best performers this quarter, particularly Applied Micro Circuits, one of our top ten positions. Applied Micro Circuits is a supplier of the type of silicon chips used in high-bandwidth communications and networking applications. By the end of March 2000, investors seemed to be looking for some shelter. This meant moving away from multiples-of-revenue stocks back to multiples-of-earnings stocks. Profits always count, and the expectation of becoming profitable is a very important consideration when investing in emerging technology issues. Surprisingly, many of the early e-commerce infrastructure stocks may move into the black in 2000. One example is likely to be Vignette, a leading relation management software vendor focused on e-commerce. Another phenomenon that is rapidly being adopted is the business-to-business exchange. First came the announcements from the big auto players for an auto parts exchange. Then came the defense and aerospace industry. Clearly, the writing is on the wall that the days are numbered for many of the middlemen and distributors who try to muddy the waters between manufacturers and their customers. The industry that was hardest hit was the Internet segment and related issues, such as companies that are tied to the Internet and e-commerce infrastructure. Though the Fund has few direct Internet plays, it does contain many of the software companies that produce the required nuts and bolts of e-commerce infrastructure, such as Oracle, BEA Systems, Allaire and Siebel Systems. The Fund benefited greatly in 1999 from their presence but was hit hard in March 2000. We remain committed to this emphasis as we fully expect the buildout of the Internet to continue. However, valuations will definitely adjust to any major near-term disappointments as the current valuations leave little room for downside mistakes. Wireless communications and infrastructure companies were some of the hottest areas in technology at the end of 1999, and the Fund benefited from holdings in QUALCOMM and LM Ericsson, which we sold to lock in gains, and Nortel and Nokia. Optical networking equipment companies, which support build-out of the fiber-optic communications backbone, also generated substantial returns in the fourth quarter 1999 as did some storage companies including two of our storage holdings--EMC and Veritas. Initial public offerings (IPOs) also made a positive contribution to the Fund's performance during the period, although it is unclear whether this market for IPOs will continue. Looking Ahead Our portfolio remains overweighted in software and services because we expect the Internet build-out to continue regardless of the direction of the economy. Given the heady levels of many current valuations in this segment, however, we also expect to see adjustments in those valuations in response to any major near-term economic disappointments. To help ensure a better night's sleep, we believe technology investors should be well-diversified among asset classes and that they should carefully consider the percentage of stock assets invested in technology. Going forward, we expect market volatility to continue over the near term, fueled by large gyrations in share price caused by short-term investors and traders who abandon the technology sector. Most of the companies we own are profitable and are likely to remain that way. We believe in the e-commerce expansion and will continue to play it through the software infrastructure companies that are building the new virtual businesses in the new economy. Past performance is no guarantee of future results. (1) The Wilshire 5000 Index measures the performance of all U.S.-headquartered equity securities with readily available price data. More than 7,000 capitalization weighted security returns are used to adjust the index. One cannot invest directly in an index. 7 Berger Funds 7 Berger Funds o March 31, 2000 Combined Semi-Annual Report Performance Overview - -------------------------------------------------------------------------------- Berger Information Technology Fund - Investor Shares* Comparison of Change in Value of Berger Information Technology Fund; Investor Shares vs. Wilshire 5000 Index [GRAPH] AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 173.23% Life of Fund (4/8/97) 87.85% Berger Information Technology Fund- Investor Shares $65,453 Wilshire 5000 Index $20,369 Berger Information Technology Fund - Institutional Shares* Comparison of Change in Value of Berger Information Technology Fund; Institutional Shares vs. Wilshire 5000 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 177.47% Life of Fund (4/8/97) 88.82% [GRAPH] Berger Information Technology Fund- Institutional Shares $1,661,718 Wilshire 5000 Index $509,228 * Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. IPO's have made a significant contribution to the Fund's recent performance. There can be no assurance that such contribution will continue. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. Performance data for the Investor Shares include periods prior to the adoption of class designations on July 2,1999, and therefore do not reflect the 0.25% per year 12b-1 fee applicable to the Investor Shares. This would have reduced the Investor Shares' return. 8 8 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Information Technology Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (96.95%) Commercial - Leasing Companies (1.10%) 33,000 Comdisco, Inc. $ 1,456,125 ------------ Commercial Services - Advertising (1.79%) 30,400 TMP Worldwide, Inc.* 2,363,600 ------------ Computer - Integrated Systems (0.01%) 330 Wind River Systems, Inc.* 11,962 ------------ Computer - Local Networks (5.06%) 12,140 3Com Corp.* 675,287 3,700 Apropos Technology, Inc.* 136,900 4,600 Brocade Communication Systems, Inc.* 824,837 36,880 Cabletron Systems* 1,081,045 39,600 Cisco Systems, Inc.* 3,061,575 2,500 Cobalt Networks, Inc.* 117,500 1,500 Crossroads Systems, Inc.* 154,875 2,000 Foundry Networks, Inc.* 287,500 1,430 JNI Corp.* 72,751 10,000 Novell, Inc.* 286,250 ------------ 6,698,520 ------------ Computer - Manufacturers (3.14%) 6,800 Dell Computer Corp.* 366,775 1,500 Hewlett-Packard Co. 198,843 4,600 International Business Machines Corp. 542,800 32,460 Sun Microsystems, Inc.* 3,041,603 ------------ 4,150,021 ------------ Computer - Memory Devices (5.44%) 26,215 EMC Corp.* 3,276,875 47,360 Network Appliance, Inc.* 3,919,040 ------------ 7,195,915 ------------ Computer - Peripheral Equipment (0.27%) 6,000 American Power Conversion Corp.* 257,250 4,000 SmartDisk Corp.* 106,000 ------------ 363,250 ------------ Computer - Services (1.91%) 4,480 Automatic Data Processing, Inc. 216,160 17,200 Cognizant Technology Solutions Corp.* 1,075,000 1,570 Computer Sciences Corp.* 124,226 4,255 Electronic Data Systems Corp. 273,117 6,000 Harbinger Corp.* 174,750 12,200 MarchFirst, Inc.* 435,387 5,000 Predictive Systems, Inc.* 227,812 ------------ 2,526,452 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (96.95%) - continued Computer Software - Desktop (1.02%) 5,700 Macromedia, Inc.* $ 514,781 2,700 Microsoft Corp.* 286,875 2,200 Red Hat, Inc.* 93,225 5,975 Symantec Corp.* 448,871 ------------ 1,343,752 ------------ Computer Software - Educational/Entertainment (1.57%) 45,400 Smartforce PLC - Sponsored ADR* 2,082,725 ------------ Computer Software - Enterprise (19.22%) 8,200 Actuate Software Corp.* 441,262 5,640 Adobe Systems Inc. 627,802 26,010 BMC Software, Inc.* 1,284,243 7,500 Broadbase Software, Inc.* 598,125 33,820 Citrix Systems, Inc.* 2,240,575 5,300 Computer Associates International Inc. 313,693 2,500 Cysive, Inc.* 171,250 1,000 E.piphany, Inc.* 133,594 13,000 Electronics For Imaging* 780,000 13,593 Hyperion Solutions Corp.* 441,772 400 i2 Technologies, Inc.* 48,850 480 Intertrust Technologies Corp.* 20,400 10,000 Latitude Communications Inc.* 262,500 45,000 Legato Systems, Inc.* 2,008,125 7,500 Manugistics Group Inc.* 376,875 14,000 Mercury Interactive Corp.* 1,109,500 22,930 New Era of Networks, Inc.* 900,002 75,440 Oracle Corp.* 5,889,035 23,050 Peoplesoft, Inc.* 461,000 7,300 Rational Software Corp.* 558,450 19,500 SERENA Software, Inc.* 621,562 13,900 Siebel Systems, Inc.* 1,660,181 47,420 Sterling Software, Inc.* 1,446,310 23,145 VERITAS Software Corp.* 3,031,995 ------------ 25,427,101 ------------ Computer Software - Finance (1.28%) 7,800 Advent Software, Inc.* 357,825 24,680 Intuit, Inc.* 1,341,975 ------------ 1,699,800 ------------ Computer Software - Network (1.00%) 3,800 Check Point Software Technologies Ltd.* 650,037 2,540 Digimarc Corp.* 111,760 4,440 Nortel Networks Corp. 559,440 ------------ 1,321,237 ------------
9 Berger Funds 9 Berger Funds o March 31, 2000 Combined Semi-Annual Report SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.95%) - continued Computer Software - Security (0.60%) 42,000 Axent Technologies, Inc.* $ 790,125 ------------ Diversified Operations (0.79%) 10,000 Agilent Technologies, Inc.* 1,040,000 ------------ Electrical - Military Systems (0.14%) 1,500 General Motors Corp. - Class H* 186,750 ------------ Electronic - Miscellaneous Components (1.38%) 13,600 RF Micro Devices, Inc.* 1,827,500 ------------ Electronic - Semiconductor Manufacturing (11.68%) 10,200 Analog Devices, Inc.* 821,737 32,400 Applied Micro Circuits, Inc.* 4,862,025 7,000 Cypress Semiconductor Corp.* 345,187 3,500 Intel Corp. 461,781 26,000 LSI Logic Corp.* 1,888,250 24,300 Plexus Corp.* 1,618,987 1,400 PMC-Sierra, Inc.* 285,162 11,000 QuickLogic Corp.* 372,625 5,000 Silicon Image, Inc.* 358,125 2,400 STMicroelectronics NV - NY Shares* 449,250 18,220 Texas Instruments Inc. 2,915,200 13,000 Xilinx, Inc.* 1,076,562 ------------ 15,454,891 ------------ Financial Services - Miscellaneous (1.42%) 15,000 Checkfree Holdings Corp.* 1,057,500 9,050 First Data Corp. 400,462 10,000 Official Payments Corp.* 420,000 ------------ 1,877,962 ------------ Internet - E*Commerce (0.41%) 7,500 PurchasePro.com, Inc.* 543,750 ------------ Internet - ISP/Content (2.03%) 1,060 Avenue A, Inc.* 32,330 2,030 Commerce One, Inc.* 302,977 7,200 Earthlink Inc.* 139,950 1,210 Finisar Corp.* 177,283 3,400 Ibasis Inc.* 139,612 500 Navisite Inc.* 60,875 1,000 Vicinity Corp.* 34,750 10,460 Yahoo!, Inc.* 1,792,582 ------------ 2,680,359 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.95%) - continued Internet - Network Security/Solutions (7.07%) 8,000 724 Solutions Inc.* $ 996,000 2,400 Alteon Websystems, Inc.* 196,800 9,100 Baltimore Technologies - ADR* 1,301,300 20,000 Breakaway Solutions, Inc.* 910,000 650 CacheFlow Inc.* 77,025 7,000 Exodus Communications, Inc.* 983,500 3,150 Inktomi Corp.* 614,250 6,050 Juniper Networks, Inc.* 1,594,553 15,000 Network Associates, Inc.* 483,750 2,000 Sapient Corp.* 167,750 13,600 VeriSign, Inc.* 2,033,200 ------------ 9,358,128 ------------ Internet - Software (10.35%) 11,500 Active Software, Inc.* 731,507 8,200 Agile Software Corp.* 512,500 24,720 Allaire Corp.* 1,869,450 2,600 Ariba, Inc.* 545,025 43,480 BEA Systems, Inc.* 3,190,345 15,300 Bluestone Software, Inc.* 516,375 4,155 BroadVision, Inc.* 186,455 4,000 C-Bridge Internet Solutions, Inc.* 228,000 6,630 Centra Software, Inc.* 139,230 5,000 Delano Technology Corp.* 112,187 5,000 Eloquent, Inc.* 101,875 6,730 Extensity, Inc.* 323,040 1,320 FirePond, Inc.* 54,037 5,500 Interwoven, Inc.* 603,625 14,000 Kana Communications, Inc.* 952,000 5,000 Niku Corp.* 236,562 5,100 OnDisplay, Inc.* 421,387 2,270 OpenTV Corp.* 268,711 5,000 PC-Tel, Inc.* 376,250 2,000 Phone.com, Inc.* 326,250 6,650 Portal Software* 378,634 1,700 Quintus Corp.* 50,468 1,070 Retek Inc.* 44,070 1,000 Selectica, Inc.* 88,250 4,700 SilverStream Software, Inc.* 347,212 10,000 Versata, Inc.* 601,875 1,225 Vignette Corp.* 196,306 1,210 Webmethods Inc.* 292,063 ------------ 13,693,689 ------------ Media - Cable TV (0.39%) 8,800 AT&T Corp. - Liberty Media Group* 521,400 ------------ Media - Products (0.17%) 2,720 Caliper Technologies Corp.* 219,980 ------------
10 10 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Information Technology Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.95%) - continued Telecommunications - Cellular (2.44%) 10,730 Nextel Communications, Inc.* $ 1,590,722 12,500 TeleCorp. PCS, Inc.* 646,875 7,650 VoiceStream Wireless Corp.* 985,415 ------------ 3,223,012 ------------ Telecommunications - Equipment (10.76%) 22,114 ADC Telecommunications Inc.* 1,191,391 520 Avanex Corp.* 78,910 27,780 Ciena Corp.* 3,503,752 8,500 Com21, Inc.* 399,500 2,300 Comverse Technology, Inc.* 434,700 8,200 Copper Mountain Networks, Inc.* 671,887 8,800 JDS Uniphase Corp.* 1,060,950 26,500 Lucent Technologies, Inc. 1,609,875 9,737 Motorola, Inc. 1,386,305 310 Next Level Communications, Inc.* 33,712 10,140 Nokia Corp. - Sponsored ADR 2,202,915 6,171 Sycamore Networks, Inc.* 796,059 1,000 Telaxis Communications Corp.* 60,109 2,800 Turnstone System Inc.* 322,000 5,000 UTStarcom, Inc.* 390,312 860 Virata Corp.* 85,892 ------------ 14,228,269 ------------ Telecommunications - Services (4.18%) 2,000 Aether Systems, Inc.* 363,000 5,000 Illuminet Holdings, Inc.* 246,171 23,800 Intermedia Communications, Inc.* 1,149,837 6,080 Metasol Software, Inc.* 359,100 1,000 NEXTLINK Communications, Inc.* 123,687 10,300 Sonera Corp. - Sponsored ADR 683,662 17,870 Teligent, Inc. - Class A* 1,193,939 10,000 Universal Access, Inc.* 335,000 18,000 Winstar Communications, Inc.* 1,080,000 ------------ 5,534,396 ------------
March 31, 2000 Shares/Par Value Value - ---------------- -------------- Common Stock (96.95%) - continued Utility - Telephone (0.33%) 6,100 US West, Inc. $ 443,012 ------------ Total Common Stock (Cost $80,530,454) 128,263,683 ------------ Repurchase Agreement (2.18%) $ 2,878,000 State Street Repurchase Agreement, 6.05%, dated March 31, 2000, to be repurchased at $2,879,431 on April 3, 2000, collateralized by FNMA Agency Note, 6.40% - December 21, 2001, with a value of $2,940,127 2,878,000 ------------ Total Repurchase Agreement (Cost $2,878,000) 2,878,000 ------------ Total Investments (Cost $83,408,454) (99.13%) 131,141,683 Total Other Assets, Less Liabilities (0.87%) 1,147,287 ------------ Net Assets (100.00%) $132,288,970 ------------
* Non-income producing security. ADR - American Depositary Receipt. FNMA - Federal National Mortgage Association. See notes to financial statements. 11 Berger Funds 11 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol - Investor Shares BENGX - Institutional Shares N/A Fund Number - Investor Shares 344 Berger New - Institutional Shares 914 Generation Fund PORTFOLIO MANAGER COMMENTARY MARK S.SUNDERHUSE - -------------------------------------------------------------------------------- Performance Despite high market volatility and a correction in technology stocks that began in March, the Berger New Generation Fund (the "Fund") had an outstanding 84.01% (Investor Shares) and 82.12% (Institutional Shares) return for the six-month period ended March 31, 2000. This return significantly outpaced the 17.50% gain of the S&P 500 Index(1) over the same period. The key reason for this dramatic outperformance was our investment in innovative, fast-growing companies. We continue to hold a diverse mix of leading technology companies that cross many industries, including broadband, energy, healthcare, biotechnology, telecommunications, software, hardware and consumer industries. Period in Review Technology was our strongest performing group of stocks this period. Some of our strongest performance came from core technology infrastructure companies that are building out the Internet, such as Applied Micro Circuits, Akamai and Sycamore Networks. We also favor companies that are focused on business-to-business enterprise, including i2 Technologies and Ariba. We believe that these companies have strong long-term potential and a definite place in the economy. The strong supply/demand fundamentals, such as the increase in demand for oil, coupled with a decrease in oil reserves, led to stellar performance from our energy companies. We continue to favor the exploration and production and the oil services industries, particularly National-Oilwell, BJ Services and Enron. Among our consumer holdings, we have focused on the broadcasting and media industries. The performance over the last six months has been mixed. Companies such as Echostar Communications and Hispanic Broadcasting performed well. But on the downside, Clear Channel Communications was a performance laggard. Clear Channel became the victim of profit-taking and short-selling pressure after its acquisition of SFX. We are optimistic about this acquisition, however, and expect it to add to Clear Channel's growth rate over the next 24-36 months. We are also finding opportunities in the financial sector, which contains new, often overlooked growth companies. Knight/Trimark is a company that provides the back-end processing of trades for some on-line brokers. As on-line transactions increase, so will the demand for this type of company to provide more services. Another example is Concord EFS, a company that provides credit and debit card transaction processing for supermarkets and convenience stores. Looking Ahead Although we are pleased with the Fund's outperformance this reporting period, we look to the future with guarded optimism. The market is seeking validation for the high prices of many stocks. As a result, we estimate that the correction in technology stocks, which began in March, may continue until valuations reach less lofty levels--below those seen at the beginning of the year. While uncomfortable, this sort of correction can be healthy for the market over the long term and may present an excellent buying opportunity in the types of innovative, fast-growing companies we seek for our Fund. We remain committed to a wide array of companies in all sectors of the economy that have solid long-term growth prospects. We will continue to focus on companies that have open-ended opportunities, which we believe will facilitate their earnings and cash growth and give heightened visibility to their business model. Past performance is no guarantee of future results. (1) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S.companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 12 12 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW Berger New Generation Fund - Investor Shares(*) Comparison of Change in Value of Berger New Generation Fund; Investor Shares vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 160.26% Three Year 75.22% Life of Fund (3/29/96) 50.76% Berger New Generation Fund- Investor Shares $51,872 S&P 500 Index $24,812 [GRAPH] Berger New Generation Fund - Institutional Shares(*) Comparison of Change in Value of Berger New Generation Fund; Institutional Shares vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 157.79% Three Year 74.66% Life of Fund (3/29/96) 50.40% Berger New Generation Fund- Institutional Shares $1,284,497 S&P 500 Index $620,289 [GRAPH] * Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. IPO's have made a significant contribution to the Fund's recent performance. There can be no assurance that such contribution will continue. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. 13 Berger Funds 13 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger New Generation Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.98%) Banks - West/Southwest (0.36%) 47,730 Silicon Valley Bancshares* $ 3,430,593 ------------ Commercial Services - Advertising (1.57%) 69,180 Lamar Advertising Co.* 3,147,690 58,000 Omnicom Group 5,419,375 80,000 Tmp Worldwide, Inc.* 6,220,000 ------------ 14,787,065 ------------ Computer - Local Networks (2.06%) 219,320 Cisco Systems, Inc.* 16,956,177 135,000 ESOFT Inc.* 2,463,750 ------------ 19,419,927 ------------ Computer - Manufacturers (1.29%) 130,000 Sun Microsystems, Inc.* 12,181,406 ------------ Computer - Memory Devices (3.86%) 113,920 EMC Corp.* 14,240,000 300,000 Silicon Storage Technology, Inc.* 22,162,500 ------------ 36,402,500 ------------ Computer - Optical Recognition (0.40%) 80,000 Optical Robotics Corp.* 3,760,000 ------------ Computer - Services (1.37%) 100,000 FutureLink Corp.* 2,512,500 123,000 Internap Network Services Corp.* 5,658,000 134,075 MarchFirst, Inc.* 4,784,801 ------------ 12,955,301 ------------ Computer Software - Desktop (2.03%) 115,210 Gemstar International Group Ltd.* 9,908,060 101,850 Macromedia, Inc.* 9,198,328 ------------ 19,106,388 ------------ Computer Software - Enterprise (5.58%) 150,000 Caminus Corp.* 3,000,000 155,000 Citrix Systems, Inc.* 10,268,750 35,000 i2 Technologies, Inc.* 4,274,375 200,290 New Era of Networks, Inc.* 7,861,382 122,030 SeaChange International, Inc.* 7,520,098 150,500 VERITAS Software Corp.* 19,715,500 ------------ 52,640,105 ------------ Computer Software - Network (0.60%) 48,580 ISS Group, Inc.* 5,659,570 ------------ Electrical - Military Systems (0.79%) 60,000 General Motors Corp. - Class H* 7,470,000 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.98%) - continued Electronic - Laser System/Component (0.03%) 40,000 Laser Vision Centers, Inc.* $ 277,500 ------------ Electronic - Miscellaneous Components (2.42%) 169,950 RF Micro Devices, Inc.* 22,837,031 ------------ Electronic - Semiconductor Equipment (2.93%) 100,000 Applied Materials, Inc.* 9,425,000 140,000 Asyst Technologies, Inc.* 8,190,000 74,540 Infineon Technologies - ADR* 4,281,391 70,000 Teradyne, Inc.* 5,757,500 ------------ 27,653,891 ------------ Electronic - Semiconductor Manufacturing (5.27%) 180,000 Applied Micro Circuits Corp.* 27,011,250 170,000 Conexant Systems, Inc.* 12,070,000 50,000 SDL Corp.* 10,643,750 ------------ 49,725,000 ------------ Electronic Products - Miscellaneous (1.72%) 255,540 American Superconductor Corp.* 11,371,530 112,000 Symyx Technologies* 4,830,000 ------------ 16,201,530 ------------ Finance - Investment Bankers (1.14%) 211,020 Knight/Trimark Group, Inc.* 10,762,020 ------------ Financial Services - Miscellaneous (1.30%) 533,200 Concord EFS, Inc.* 12,230,275 ------------ Internet - E*Commerce (1.07%) 192,250 Neoforma.com Inc.* 3,148,093 453,700 NextCard, Inc.* 6,940,192 ------------ 10,088,285 ------------ Internet - ISP/Content (2.25%) 28,120 Akamai Technologies, Inc.* 4,522,047 26,050 Commerce One, Inc.* 3,887,962 50,000 InfoSpace.com, Inc.* 7,271,875 120,000 National Information Consortium, Inc.* 4,170,000 50,000 VIA NET.WORKS, Inc.* 1,328,125 ------------ 21,180,009 ------------ Internet - Network Security/Solutions (5.44%) 68,700 Juniper Networks, Inc.* 18,106,743 70,830 Redback Networks, Inc.* 21,244,573 80,000 VeriSign, Inc.* 11,960,000 ------------ 51,311,316 ------------
14 14 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger New Generation Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (96.98%) - continued Internet - Software (6.46%) 18,450 Ariba, Inc.* $ 3,867,581 5,000 ArrowPoint Communications, Inc.* 592,421 60,000 CMGI Inc.* 6,798,750 51,580 FreeMarkets, Inc.* 6,241,180 371,470 Healtheon/WebMD Corp.* 8,543,810 390,00 Interactive Objects, Inc.* 1,958,043 80,730 OpenTV Corp. 9,556,413 67,320 Phone.com, Inc.* 10,981,575 59,340 SilverStream Software, Inc.* 4,383,742 50,000 Vignette Corp.* 8,012,500 ------------ 60,936,015 ------------ Media - Cable TV (4.38%) 266,844 AT&T Corp. - Liberty Media Group* 15,810,507 38,200 Comcast Corp. - Class A 1,575,750 1,656,925 Comcast Corp. - Special Class A 1,666,925 208,400 EchoStar Communications Corp. - Class A* 16,463,600 300,000 TCI Satellite Entertainment, Inc.* 5,765,625 ------------ 41,272,407 ------------ Media - Radio/TV (5.52%) 90,000 AMFM Inc.* 5,591,250 137,950 CBS Corp.* 7,811,418 114,719 Clear Channel Communications, Inc.* 7,922,780 60,000 Hispanic Broadcasting Corp.* 6,795,000 82,820 Pegasus Communications Corp.* 11,656,915 321,590 Spanish Broadcasting System, Inc.* 7,542,290 93,310 TV Guide, Inc.* 4,725,024 ------------ 52,044,677 ------------ Medical - Biomed/Genetics (5.47%) 45,000 PE Corp. - Celera Genomics Group* 4,120,312 121,680 Diversa Corp.* 5,718,960 70,560 Genentech, Inc.* 10,725,120 160,000 Invitrogen Corp.* 9,290,000 100,000 Medimmune, Inc.* 17,412,500 108,780 Sequenom Inc.* 4,283,212 ------------ 51,550,104 ------------ Medical - Ethical Drugs (0.89%) 150,000 Pharmacyclics, Inc.* 8,353,125 ------------ Medical - Instruments (2.17%) 51,740 Aclara Biosciences Inc.* 2,040,496 573,300 Eclipse Surgical Tech, Inc.* 4,263,918 80,000 Ventana Medical Systems, Inc.*@(X) 3,144,048 255,000 Ventana Medical Systems, Inc.* 11,012,812 ------------ 20,461,274 ------------ Medical - Medical/Dental Services (0.88%) 251,700 Accredo Health, Inc.* 8,337,562 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (96.98%) - continued Medical - Outpatient/Home Care (0.12%) 110,000 TLC Laser Eye Centers Inc.* $ 1,106,875 ------------ Medical - Products (2.05%) 90,000 Caliper Technologies Corp.* 7,278,750 205,620 Guidant Corp.* 12,093,026 ------------ 19,371,776 ------------ Medical - Wholesale Drug/Sundries (1.59%) 249,500 Allscripts, Inc.* 15,001,187 ------------ Metal Products & Fabrication (0.53%) 155,000 Maverick Tube Corp.* 5,027,812 ------------ Oil & Gas - Drilling (3.47%) 393,000 Global Marine Inc.* 9,972,375 369,000 Marine Drilling Companies, Inc.* 10,124,437 269,000 Precision Drilling* 8,977,875 186,000 R&B Falcon Corp.* 3,661,875 ------------ 32,736,562 ------------ Oil & Gas - Field Services (0.55%) 70,000 BJ Services Co.* 5,171,250 ------------ Oil & Gas - Machinery/Equipment (1.15%) 351,450 National - Oilwell, Inc.* 10,851,018 ------------ Oil & Gas Production/Pipeline (1.94%) 150,000 Enron Corp. 11,231,250 447,970 Western Gas Resources, Inc. 7,111,523 ------------ 18,342,773 ------------ Oil & Gas - U.S. Exploration & Production (2.59%) 76,999 Devon Energy Corp. 3,739,263 249,000 Louis Dreyfus Natural Gas Corp.* 8,466,000 440,000 Pennaco Energy, Inc.* 6,022,500 307,500 Vintage Petroleum, Inc. 6,188,437 ------------ 24,416,200 ------------ Telecommunications - Equipment (8.74%) 39,530 Avanex Corp.* 5,998,677 205,000 Crown Castle International Corp.* 7,764,375 148,000 JDS Uniphase Corp.* 17,843,250 150,560 Next Level Communications, Inc.* 16,373,400 50,000 Powerwave Technologies, Inc.* 6,250,000 139,032 Sycamore Networks, Inc.* 17,935,128 50,000 Terayon Communication Systems, Inc.* 10,250,000 ------------ 82,414,830 ------------
15 Berger Funds 15 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (96.98%) - continued Telecommunications - Services (5.00%) 131,900 FirstCom Corp.* $ 4,509,352 50,000 Nextlink Communications - Class A* 6,184,375 140,000 PT Pasifik Satelit Nusantara* 3,552,500 406,470 Qwest Communications International, Inc.* 19,713,795 130,000 Teligent, Inc.* 8,685,625 75,000 Winstar Communications, Inc.* 4,500,000 ------------ 47,145,647 ------------ Total Common Stock (Cost $621,041,680) 914,620,806 ------------ Preferred Stock - Convertible (0.64%) Internet - ISP/Content (0.64%) 396,417 netLibrary Inc. - Series C*@(X) $ 6,001,753 ------------ Total Preferred Stock - Convertible (Cost $5,000,008) 6,001,753 ------------ Total Investments (Cost $626,041,688) (97.62%) 920,622,559 Total Other Assets, Less Liabilities (2.38%) 22,463,881 ------------ Net Assets (100.00%) $943,086,440 ------------
* Non-income producing security. ADR - American Depositary Receipt. @ - Security valued at fair value determined in good faith pursuant to procedures established by and under the supervision of the Fund's trustees. (X) Schedule of Restricted Securities and/or Illiquid Securities
Fair Value Date Fair as a % Acquired Cost Value of Net Assets -------- ---- ----- ------------- netLibrary Inc. - Series C - 10/13/1999 $5,000,008 $6,001,753 0.63% Preferred Stock Ventana Medical Systems, Inc. - 3/27/2000 $3,200,000 $3,144,048 0.33% Common Stock
See notes to financial statements. 16 16 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BESLX Fund Number 214 PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO Berger AMY K. SELNER Select Fund MARK S. SUNDERHUSE - -------------------------------------------------------------------------------- Performance In the fourth quarter 1999, technology stocks surged impressively. They continued their momentum through most of the first quarter 2000. On March 10, however, profit-taking and interest rate fears began to drive prices down, initiating a correction in these stocks. Investors then fled to lower-valuation sectors such as financials, consumer cyclicals and energy. Rotation into large cap stocks began late in the first quarter, simultaneous with the weakness in technology stocks. This led to a one-month gain of more than 10% in the Standard & Poor's (S&P) 500 Index(1) in March. Against this backdrop, the Berger Select Fund (the "Fund") gained a strong 68.62% for the six months ended March 31, 2000, significantly outpacing the 17.50% return of the S&P 500 Index. Period in Review Individual stock selection was the key to the Fund's outperformance this reporting period. Some of the Fund's top ten holdings had notable returns, especially Cisco Systems, Sycamore Networks, and Sony Corporation. Within technology, we continue to favor the companies with strong growth prospects relating to the broadband build-out and the Internet. Broadband companies provide the plumbing that enables broad acceptance of Internet applications and services. Among our holdings that contributed to performance are RF Micro Devices, a developer of wireless communication chips, and Redback Networks, a provider of advanced networking systems that enable carriers, cable operators and service providers to rapidly deploy high-speed access to the Internet and corporate networks. Charles Schwab rallied from its fourth quarter decline as investors focused on the company's rapid asset inflows and the increase in earnings and revenue estimates. Energy companies, such as Ensco International, turned in stellar performances, particularly in the first quarter 2000. Supply-and-demand fundamentals are quite favorable in this sector, and we believe that strong earnings potential continues to exist. On the down side, poor performers included Spanish Broadcasting and Clear Channel Communications. We expect both of these stocks to perform well as their fundamentals play out over the next two to five years. Clear Channel was the victim of profit-taking and short-selling pressure after its recent acquisition of SFX. We are optimistic about this acquisition, however, and expect it to add to Clear Channel's growth rate over the next 24-36 months. Looking Ahead We look for more volatility in the second quarter as the market digests more potential rate increases by the Federal Reserve Board and tries to cope with high valuations of premier growth companies. Once the market comes to terms with these two major issues, we believe market leadership will be regained by those companies delivering strong long-term growth. Past performance is no guarantee of future results. (1) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 17 Berger Funds 17 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Select Fund Comparison of Change in Value of Berger Select Fund vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 85.24% Life of Fund (12/31/97) 72.77% Berger Select Fund $24,621 S&P 500 Index $14,130 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. IPO's have made a significant contribution to the Fund's recent performance. There can be no assurance that such contribution will continue. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.31%) Commercial Services - Advertising (1.80%) 65,000 Lamar Advertising Co.* $ 2,957,500 ------------ Computer - Local Networks (6.57%) 140,000 Cisco Systems, Inc.* 10,823,750 ------------ Computer - Services (3.56%) 164,350 MarchFirst, Inc.* 5,865,240 ------------ Electronic - Miscellaneous Components (2.69%) 33,000 RF Micro Devices, Inc.* 4,434,375 ------------ Finance - Investment Bankers (3.52%) 101,930 Schwab (Charles) Corp. 5,790,898 ------------ Financial Services - Miscellaneous (6.25%) 449,000 Concord EFS, Inc.* 10,298,937 ------------ Household - Audio/Video (3.08%) 18,100 Sony Corp. - Sponsored ADR 5,070,268 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (96.31%) - continued Internet - ISP/Content (3.52%) 15,626 Akamai Technologies, Inc.* $ 2,512,856 47,100 Internet Initiative - Sponsored ADR* 3,285,225 ------------ 5,798,081 ------------ Internet - Network Security/Solutions (23.15%) 55,500 Juniper Networks, Inc.* 14,627,718 37,400 Redback Networks Inc.* 11,217,662 75,000 Sapient Corp.* 6,290,625 40,000 VeriSign, Inc.* 5,980,000 ------------ 38,116,005 ------------ Internet - Software (10.21%) 100,000 Agile Software Corp.* 6,250,000 93,200 CMGI Inc.* 10,560,725 ------------ 16,810,725 ------------ Media - Radio/TV (7.36%) 143,100 Clear Channel Communications, Inc.* 9,882,843 95,000 Spanish Broadcasting System, Inc.* 2,228,046 ------------ 12,110,889 ------------
18 18 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Select Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares/Par Value Value - ---------------- -------------- Common Stock (96.31%) - continued Medical - Biomed/Genetics (4.75%) 51,500 Genentech, Inc.* $ 7,828,000 ------------ Medical - Products (1.98%) 55,500 Guidant Corp.* 3,264,093 ------------ Oil & Gas - Drilling (4.03%) 183,700 ENSCO International Inc. 6,636,162 ------------ Telecommunications - Equipment (13.84%) 176,648 Sycamore Networks, Inc.* 22,787,592 ------------ Total Common Stock (Cost $102,142,820) 158,592,515 Repurchase Agreement (1.12%) $1,842,000 State Street Repurchase Agreement, 6.05% dated March 31, 2000 to be repurchased at $1,842,916 on April 3, 2000, collateralized by FNMA Agency Note, 6.40% - December 21, 2001, with a value of $1,881,076 1,842,000 ------------ Total Repurchase Agreement (Cost $1,842,000) 1,842,000 Total Investments (Cost $103,984,820) (97.43%) 160,434,515 Total Other Assets, Less Liabilities (2.57%) 4,238,352 Net Assets (100.00%) $164,672,867 ------------
* Non-income producing security. ADR - American Depositary Receipt. FNMA - Federal National Mortgage Association. See notes to financial statements. 19 Berger Funds 19 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol - Investor Shares BESCX - Institutional Shares N/A Fund Number - Investor Shares 345 Berger Small Company - Institutional Shares 915 Growth Fund PORTFOLIO MANAGER COMMENTARY AMY K. SELNER - -------------------------------------------------------------------------------- Performance The Berger Small Company Growth Fund (the "Fund") had a very strong fiscal first half ending March 31, 2000, gaining 90.96% (Investor Shares) and 89.48% (Institutional Shares) while the Russell 2000 Index(1) and Russell 2000 Growth(2) Index rose 26.83% and 45.77%, respectively. The Russell 2000 Index remained very strong during the fourth quarter of 1999, through March 10 in the first quarter of 2000. This corresponded with the strong move in technology stocks and small caps over the same period when profit-taking and continued interest rate fears set in. The ensuing weeks to quarter end marked the beginning of a correction in small cap and technology stocks. From their highs, this move stole more than 11% in performance from the Russell 2000 Index and 16% from the Russell 2000 Growth Index in the first quarter alone. Investors fled to large cap stocks, which are perceived to be less risky in volatile markets, as well as to lower-valuation sectors such as financials, consumer cyclicals and energy. This rotation to large cap stocks led to the S&P 500 Index(3) rise of more than 10% in the last month of the first quarter, simultaneous to the weakness in small caps and technology stocks. Period in Review The dramatic fourth-quarter 1999 rise in technology stocks ended March 10, when profit taking, interest rate fears and liquidity issues triggered the correction. Prior to that many tech stocks had jumped more than 100% from the market's October low. Within technology, we continue to focus on companies assisting businesses in transitioning to conducting their business over the Internet. Within software, both Primus and Onyx Software enable companies to embrace the Internet and contributed to performance during the two quarters. Also within this theme lies the technology service companies that provide strategic Internet consulting services. Forrester is a strong holding in this segment. We continue to favor the semiconductor stocks, including Cree Research. Visibility remains strong within the semiconductor capital equipment companies as well. These companies provide the actual tools for building semiconductors. Within healthcare, the biotechnology sector went on a roller coaster ride. After tremendous strength in the fourth quarter of 1999 and the first two months of 2000, the group broke down in March 2000. Profit-taking, excessive equity issuance and confusion around the potential for genomics, the study of mapping and sequencing genes, led to the downfall. The long-term fundamentals for this group are stronger than ever. We believe the biotech industry continues to acquire critical mass as genomics and combinatorial chemistry, the process that helps increase the efficiency of the drug development timeline, lead to an explosion in new drug targets. Within the consumer sector, radio stocks have been very volatile as well. Radio stocks gave back most of their strong fourth-quarter gains during the first quarter as high valuations led to profit-taking. We continue to favor the long-term growth prospects for Emmis Communications within this industry. Our energy exposure had stellar performance in the first quarter of 2000 after being relatively flat in the fourth quarter of 1999. Supply-and-demand fundamentals are quite favorable, and strong earnings potential exists. The strength in the drilling industry reflects the move to a recovery in day rates and utilization over the next twelve months. We believe that we are in the early stages of a long-term recovery and the onshore drilling stocks are leading the way. Contract driller Pride International has been a strong performer for the fund. Looking Ahead We are cautious in our outlook for small caps and the market in the short term. If economic metrics continue to show an overheating economy, interest rates will continue to creep up, and the market may continue to be volatile and move sideways as we enter the slower summer period. We estimate that this correction in technology stocks may continue until their valuations are below the levels we saw at the beginning of this year. While uncomfortable, this sort of correction should be healthy for the market over the long term and may present an excellent buying opportunity in the strongest growth stocks. Past performance is no guarantee of future results. (1) The Russell 2000 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 2000 U.S. companies. It is a generally recognized indicator used to measure overall performance of small company stocks. One cannot invest directly in an index. (2) The Russell 2000 Growth Index is an unmanaged index, with dividends reinvested, which consists of common growth stocks included in the Russell 2000 Index. Companies in this index tend to exhibit higher price-to-book and price-earnings ratios. It is a generally recognized indicator used to measure overall small company growth stock performance in the U.S. stock market. One cannot invest directly in an index. (3) The S&P 500 is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 20 20 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Small Company Growth Fund - Investor Shares(*) Comparison of Change in Value of Berger Small Company Growth Fund; Investor Shares vs. Russell 2000 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 146.18% Three Year 49.02% Five Year 34.83% Life of Fund (12/30/93) 30.30% Berger Small Company Growth Fund- Investor Shares $52,289 Russell 2000 Index $22,747 [GRAPH] - -------------------------------------------------------------------------------- Berger Small Company Growth Fund - Institutional Shares(*) Comparison of Change in Value of Berger Small Company Growth Fund; Institutional Shares vs. Russell 2000 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 144.27% Three Year 48.64% Five Year 34.62% Life of Fund (12/30/93) 30.14% Berger Small Company Growth Fund- Institutional Shares $1,297,121 Russell 2000 Index $568,682 [GRAPH] * Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. 21 Berger Funds 21 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Small Company Growth Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.64%) Banks - West/Southwest (0.56%) 117,290 Silicon Valley Bancshares* $ 8,430,218 ------------ Building - Heavy Construction (2.03%) 631,790 Dycom Industries, Inc.* 30,799,762 ------------ Commercial Services - Miscellaneous (5.45%) 270,640 Diamond Technology Partners, Inc.* 17,794,580 641,580 Forrester Research, Inc.*# 34,805,715 588,040 The Corporate Executive Board Co.* 29,843,030 ------------ 82,443,325 ------------ Commercial Services - Schools (1.14%) 565,360 Devry, Inc.* 17,243,480 ------------ Computer - Optical Recognition (0.82%) 779,260 Robotic Vision Systems, Inc.* 12,468,160 ------------ Computer - Services (1.69%) 218,320 Internap Network Services Corp.* 10,042,720 435,050 MarchFirst, Inc.* 15,525,846 ------------ 25,568,566 ------------ Computer Software - Desktop (1.72%) 288,080 Macromedia, Inc.* 26,017,225 ------------ Computer Software - Educational/Entertainment (1.48%) 486,950 Smartforce PLC - Sponsored ADR* 22,338,831 ------------ Computer Software - Enterprise (4.14%) 243,600 Mercury Interactive Corp.* 19,305,300 1,035,000 ONYX Software Corp.*# 32,990,625 288,780 SAGA Systems, Inc.* 10,323,885 ------------ 62,619,810 ------------ Electrical - Scientific Instruments (1.61%) 180,000 Newport Corp.* 24,300,000 ------------ Electronic - Laser System/Component (1.72%) 522,060 Cymer, Inc.* 26,103,000 ------------ Electronic - Semiconductor Equipment (8.58%) 268,803 Applied Materials, Inc.* 25,334,665 460,230 DuPont Photomasks, Inc.* 26,664,575 585,530 Mattson Technology, Inc.* 24,958,216 474,480 PRI Automation, Inc.* 29,002,590 323,930 Veeco Instruments Inc.* 23,970,820 ------------ 129,930,866 ------------ Electronic - Semiconductor Manufacturing (4.51%) 173,500 Applied Micro Circuits Corp.* 26,035,843 208,790 Cree Research Inc.* 23,567,171 500,000 PLX Technology, Inc.* 18,617,187 ------------ 68,220,201 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.64%) - continued Electronic Products - Miscellaneous (5.19%) 480,930 American Superconductor Corp.* $ 21,401,385 241,440 Proxim, Inc.* 28,897,350 1,164,280 Universal Electronics Inc.* # 28,233,790 ------------ 78,532,525 ------------ Finance - Mortgage & Related Services (0.16%) 331,700 Resource America, Inc. 2,404,825 ------------ Finance - Savings & Loans (0.26%) 172,720 Webster Financial Corp. 3,972,560 ------------ Financial Services - Miscellaneous (0.65%) 255,060 Metris Companies Inc. 9,915,457 ------------ Insurance - Brokers (0.57%) 289,010 Pre-Paid Legal Services, Inc.* 8,579,984 ------------ Internet - E*Commerce (0.38%) 194,420 Ebenx Inc.* 5,735,390 ------------ Internet - ISP/Content (1.00%) 101,620 Commerce One, Inc.* 15,166,785 ------------ Internet - Network Security/Solutions (3.37%) 49,600 Redback Networks Inc.* 14,876,900 143,010 Sapient Corp.* 11,994,963 310,580 Spyglass, Inc.* 24,084,508 ------------ 50,956,371 ------------ Internet - Software (5.69%) 320,660 Agile Software Corp.* 20,041,250 77,400 Ariba, Inc.* 16,224,975 123,400 CMGI Inc.* 13,982,762 416,770 Primus Knowledge Solutions* 35,842,220 ------------ 86,091,207 ------------ Media - Periodicals (0.25%) 138,900 Martha Stewart Living - Class A* 3,750,300 ------------ Media - Radio/TV (6.77%) 383,840 Cox Radio, Inc.* 32,242,560 330,650 Cumulus Media Inc. - Class A* 4,753,093 550,040 Emmis Communications Corp.* 25,576,860 140,250 Hispanic Broadcasting Corp.* 15,883,312 295,960 Salem Communications Corp.* 3,533,022 333,920 SBS Broadcasting SA* 20,536,080 ------------ 102,524,927 ------------
22 22 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Small Company Growth Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (99.64%) - continued Medical - Biomed/Genetics (10.61%) 670,220 BioCryst Pharmaceuticals, Inc.* $ 18,305,383 717,620 Cephalon, Inc.* 26,910,750 1,173,580 Creative Biomolecules, Inc.* 11,625,776 153,070 Diversa Corp.* 7,194,290 131,200 IDEC Pharmaceuticals Corp.* 12,890,400 307,090 Invitrogen Corp.* 17,830,413 500,000 LightPath Technologies, Inc. - Class A*# 22,562,500 139,700 Medimmune, Inc.* 24,325,262 62,900 Myriad Genetics Inc.* 3,789,725 513,720 Regeneron Pharmaceuticals, Inc.* 15,186,847 -------------- 160,621,346 -------------- Medical - Ethical Drugs (2.67%) 912,010 PathoGenesis Corp.*# 20,748,227 353,880 Pharmacyclics, Inc.* 19,706,692 -------------- 40,454,919 -------------- Medical - Instruments (3.77%) 43,990 Aclara Biosciences Inc.* 1,734,855 673,910 IDEXX Laboratories, Inc.* 15,710,526 542,500 Ventana Medical Systems, Inc.* 23,429,218 90,000 Ventana Medical Systems, Inc.*@(X) 3,537,054 342,300 Visible Genetics Inc.* 12,665,100 -------------- 57,076,753 -------------- Medical - Medical/Dental Services (1.04%) 476,520 Accredo Health, Inc.*# 15,784,725 -------------- Medical - Wholesale Drug/Sundries (3.34%) 528,970 Allscripts, Inc.* 31,804,321 372,520 Priority Healthcare Corp.* 18,719,130 -------------- 50,523,451 -------------- Metal Products & Fabrication (1.00%) 464,840 Maverick Tube Corp.* 15,078,247 -------------- Oil & Gas - Drilling (3.96%) 743,950 Marine Drilling Companies, Inc.* 20,412,147 512,160 Patterson Energy, Inc.* 16,261,080 1,020,800 Pride International Inc.* 23,287,000 -------------- 59,960,227 -------------- Oil & Gas - Field Services (1.79%) 961,120 Veritas DGC, Inc.* 27,031,500 -------------- Oil & Gas - Machinery/Equipment (1.43%) 700,000 National-Oilwell, Inc.* 21,612,500 -------------- Oil & Gas - U.S. Exploration & Production (0.55%) 168,460 Stone Energy Corp.* 8,296,655 --------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (99.64%) - continued Retail - Consumer Electric (0.54%) 185,130 Tweeter Home Entertainment Group, Inc.* $ 8,192,002 -------------- Retail - Miscellaneous Diversified (1.64%) 484,340 Michaels Stores, Inc.* 19,736,855 383,480 The Right Start, Inc.*# 5,129,045 -------------- 24,865,900 -------------- Retail - Super/Mini-Markets (1.44%) 525,140 Whole Foods Market, Inc.* 21,760,488 -------------- Telecommunications - Equipment (2.33%) 162,100 Powerwave Technologies, Inc.* 20,262,500 283,120 Tollgrade Communications Inc.* 15,005,360 -------------- 35,267,860 -------------- Telecommunications - Services (3.79%) 346,280 Advanced Radio Telecom Corp.* 11,470,525 1,250,000 Metrocall Inc.* 12,500,000 426,410 Viatel, Inc.* 21,400,451 900,000 Weblink Wireless Inc.* 12,037,500 -------------- 57,408,476 -------------- Total Common Stock (Cost $1,029,538,445) 1,508,048,824 -------------- Preferred Stock - Non-Convertible (0.11%) Computer - Peripheral Equipment (0.11%) 665,000 Candescent Technologies Corp.*@(X) $ 1,662,500 -------------- Total Preferred Stock - Non-Convertible (Cost $3,657,500) 1,662,500 -------------- Total Investments (Cost $1,033,195,945) (99.75%) 1,509,711,324 Total Other Assets, Less Liabilities (0.25%) 3,802,601 -------------- Net Assets (100.00%) $1,513,513,925 --------------
* Non-income producing security. ADR - American Depositary Receipt. @ - Security valued at fair value determined in good faith pursuant to procedures established by and under the supervision of the Fund's trustees. # The Investment Company Act of 1940 defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities. Following is a summary of the transactions with affiliates for the six months ended March 31, 2000:
Accredo Forrester Health, Inc. Research, Inc. ------------ -------------- Market Value at 9/30/99 $ 8,690,850 -- Purchases at Cost 1,237,545 $ 31,410,372 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) 5,856,330 3,395,343 ------------ ------------ Market Value at 3/31/2000 $ 15,784,725 $ 34,805,715 ------------ ------------ Dividend Income -- -- Realized Gain (Loss) -- --
23 Berger Funds 23 Berger Funds o March 31, 2000 Combined Semi-Annual Report SCHEDULE OF INVESTMENTS (UNAUDITED) - --------------------------------------------------------------------------------
LightPath Technologies, Inc.- ONYX Class A Software Corp. ------------------- -------------- Market Value at 9/30/99 -- -- Purchases at Cost $ 18,106,319 $ 30,820,398 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) 4,456,181 2,170,227 ------------ ------------ Market Value at 3/31/2000 $ 22,562,500 $ 32,990,625 ------------ ------------ Dividend Income -- -- Realized Gain (Loss) -- --
Paradigm PathoGenesis Geophysical Ltd. Corp. ---------------- ------------ Market Value at 9/30/99 $ 3,389,546 -- Purchases at Cost -- $ 23,225,657 Sales at Cost (4,104,100) -- Change in Unrealized Appreciation/(Depreciation) 714,554 (2,477,430) ------------ ------------ Market Value at 3/31/2000 -- $ 20,748,227 ------------ ------------ Dividend Income -- -- Realized Gain (Loss) $ (787,461) --
The Right Universal Start, Inc Electronics Inc. ------------ ---------------- Market Value at 9/30/99 -- $ 10,262,875 Purchases at Cost $ 6,485,403 5,658,861 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) (1,356,358) 12,312,054 ------------ ------------ Market Value at 3/31/2000 $ 5,129,045 $ 28,233,790 ------------ ------------ Dividend Income -- -- Realized Gain (Loss) -- --
(X) Schedule of Restricted Securities and/or Illiquid Securities
Fair Value Date Fair as a % Acquired Cost Value of Net Assets -------- ---------- ---------- ------------- Candescent Technologies Corp.- 5/1/1996 $3,657,500 $1,662,500 0.11% Preferred Stock Ventana Medical Systems, Inc.- 3/27/2000 $3,600,000 $3,537,054 0.23% Common Stock
See notes to financial statements. 24 24 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol - Investor Shares BSCVX - Institutional Shares BSVIX Fund Number - Investor Shares 120 - Institutional Shares 403 Berger Small Cap PORTFOLIO MANAGER COMMENTARY ROBERT H. PERKINS Value Fund THOMAS M. PERKINS - -------------------------------------------------------------------------------- Performance For the six-month period ended March 31, 2000, the Berger Small Cap Value Fund (the "Fund") gained 9.37% (Investor Shares) and 9.50% (Institutional Shares). While this significantly lagged the 26.83% return of the Russell 2000 Index,(1) it outperformed the 5.41% return of the Russell 2000 Value Index.(2) Growth was again the favored investment style this reporting period, as evidenced by the 45.77% gain in the Russell 2000 Growth Index.(3) Yet, over the Fund's 13-year history, growth and value styles have delivered very similar average annual returns--11.1% for growth and 10.6% for value. These styles seldom perform in lockstep; instead, there are cycles of underperformance and outperformance. In the past 13 years, for example, value outperformed growth in seven of those years and growth outperformed value in six years. The percentage of outperformance was nearly identical in both cases: value led growth by an average margin of 10.6% and growth led value by an average margin of 10.2%. Period in Review Our holdings in the energy sector were positive contributors to Fund performance. We initiated investments in energy when oil prices were in the low teens. Using the supply-and-demand theory, we correctly surmised that low prices were causing reduced production and that a cyclical recovery was inevitable. Our timely investments in the sector led to gains in some holdings that ranged from 20% to 120% this reporting period. We are taking profits and scaling back our exposure to this sector. Financials--our single largest sector--dragged down Fund performance, even though the companies in our portfolio continued to experience strong loan growth and fee income, and continue to buy back stock. The financials sector has significantly underperformed the market because of continued concerns over rising interest rates, even after five rate hikes by the Federal Reserve Board since mid-1999. We remain committed to this sector, however, because its near-term problems have depressed earnings multiples to attractive levels relative to the general market. We recently committed a significant portion of Fund assets to the homebuilding and insurance industries. Both groups are selling at or beneath their all-time low valuations because of the market's overdiscounting of short-term problems. We believe the correction of these problems to be an economic inevitability. In the insurance industry, weakness in policy prices is being corrected, and premium rates are being aggressively increased. Therefore, we have expanded investment in two portfolio companies, Old Republic and IPC Holdings. These companies have excess capital, strong industry positions, proven management and stock prices that are 75% below their two-year highs. In the homebuilding group, we have made investments in Lennar and Pulte. Because of the market's knee-jerk reaction to higher interest rates, these stocks have declined about 55% from their previous highs. At these prices, our investments are trading at five to six times estimated 2000 earnings--levels that haven't been this low since housing starts declined 30% in 1990. Looking Ahead In the past two-and-one-half years, there has been a huge disparity in performance of growth stocks and value stocks. This is an indication, in our opinion, of the unprecedented excesses, both positive and negative, that exist in the market today--and that we have referred to in previous communications. Investor preoccupation with large companies having a high rate of short-term momentum has created relative valuations in the small company value area not seen in more than 30 years. We continue to believe that capital will, in the long term, flow to investments providing the best returns with the lowest risk. In the meantime, we will continue to seek investments with the type of risk-reward profile that enables us to maintain a portfolio that delivers above-average long-term returns at below-average risk Past performance is no guarantee of future results. (1) The Russell 2000 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 2000 U.S. companies. It is a generally recognized indicator used to measure overall performance of small company stocks. One cannot invest directly in an index. (2) The Russell 2000 Value Index is an unmanaged index, with dividends reinvested, which consists of common value stocks included in the Russell 2000 Index. Companies in this index tend to exhibit lower price-to-book and price-earnings ratios. It is a generally recognized indicator used to measure overall small company value stock performance in the U.S. stock market. One cannot invest directly in an index. (3) The Russell 2000 Growth Index is an unmanaged index, with dividends reinvested, which consists of common growth stocks included in the Russell 2000 Index. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios. It is a generally recognized indicator used to measure overall small company growth stock performance in the U.S. stock market. One cannot invest directly in an index. 25 Berger Funds 25 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Small Cap Value Fund - Investor Shares* Comparison of Change in Value of Berger Small Cap Value Fund; Investor Shares vs. Russell 2000 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 25.35% Five Year 18.82% Ten Year 14.58% Berger Small Cap Value Fund- Investor Shares $39,006 Russell 2000 Index $38,519 [GRAPH] Berger Small Cap Value Fund - Institutional Shares* Comparison of Change in Value of Berger Small Cap Value Fund; Institutional Shares vs. Russell 2000 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 25.73% Five Year 19.09% Ten Year 14.71% Berger Small Cap Value Fund- Institutional Shares $986,047 Russell 2000 Index $962,986 [GRAPH] * Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance data for the Investor Shares include periods prior to the adoption of class designations on February 14, 1997, and therefore do not reflect the 0.25% per year 12b-1 fee applicable to the Investor Shares. This would have reduced the Investor Shares' return. 26 26 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Small Cap Value Fund SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (91.29%) Banks - Midwest (1.21%) 500,000 Associated Banc-Corp. $ 14,937,500 ------------ Banks - Northeast (5.70%) 315,000 Community Bank Systems, Inc. 7,185,943 770,000 Community First Bankshares 12,320,000 660,000 F.N.B. Corp. 12,127,500 1,600,000 Peoples Heritage Financial Group, Inc. 24,000,000 1,496,890 Seacoast Financial Services Corp.# 14,781,788 ------------ 70,415,231 ------------ Banks - Southeast (2.87%) 800,000 CCB Financial Corp. 35,400,000 ------------ Banks - West/Southwest (0.67%) 600,000 InterWest Bancorp, Inc. 8,250,000 ------------ Building - Mobile/Manufacturing & RV (0.40%) 850,000 Champion Enterprises Inc.* 4,887,500 ------------ Building - Paint & Allied Products (1.65%) 1,850,000 RPM, Inc. 20,350,000 ------------ Building - Residential/Commercial (4.11%) 1,000,000 Lennar Corp. 21,687,500 1,395,250 Pulte Corp. 29,125,843 ------------ 50,813,343 ------------ Building Products- Wood (2.80%) 710,000 Rayonier Inc. 34,612,500 ------------ Chemicals - Plastics (1.93%) 1,800,000 A. Schulman, Inc.# 23,850,000 ------------ Commercial Services - Staffing (3.21%) 1,575,000 Interim Services Inc.* 29,235,937 1,150,000 Romac International, Inc.* 10,421,875 ------------ 39,657,812 ------------ Computer - Graphics (0.90%) 736,810 Mentor Graphics Corp.* 11,144,251 ------------ Computer - Peripheral Equipment (0.54%) 560,210 AVT Corp.* 6,617,480 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (91.29%) - continued Computer - Services (2.80%) 820,000 Complete Business Solutions, Inc.* $ 18,347,500 950,000 Computer Horizons Corp.* 16,268,750 ------------ 34,616,250 ------------ Computer Software - Enterprise (2.13%) 600,000 JDA Software Group Inc.* 8,775,000 1,295,000 Structural Dynamics Research Corp.* 17,482,500 ------------ 26,257,500 ------------ Diversified Operations (3.80%) 2,600,000 Federal Signal Corp.# 46,962,500 ------------ Electrical - Control Instruments (1.78%) 900,000 Circor International Inc.*# 11,981,250 810,000 Watts Industries, Inc. 10,023,750 ------------ 22,005,000 ------------ Finance - Equity REIT (12.59%) 550,000 EastGroup Properties, Inc. 11,825,000 840,000 Gables Residential Trust 18,900,000 650,000 Highwoods Properties, Inc. 13,812,500 785,000 Home Properties of New York, Inc. 20,998,750 1,000,000 IRT Property Co. 8,000,000 300,000 Parkway Properties, Inc. 8,831,250 1,200,000 Plum Creek Timber Co. Inc. 29,550,000 880,000 Prentiss Properties Trust 19,635,000 1,250,000 Summit Properties, Inc. 23,906,250 ------------ 155,458,750 ------------ Finance - Public Investment Fund - Foreign (1.20%) 1,365,000 Morgan Stanley Asia Pacific Fund, Inc.* 14,844,375 ------------ Finance - Savings & Loans (3.29%) 1,815,960 Republic Security Financial Corp. 11,917,237 336,500 Warren Bancorp, Inc. 2,229,312 1,150,000 Webster Financial Corp. 26,450,000 ------------ 40,596,549 ------------ Food - Miscellaneous Preparation (0.28%) 1,470,000 Vlasic Foods International Inc.* 3,491,250 ------------
27 Berger Funds 27 Berger Funds o March 31, 2000 Combined Semi-Annual Report SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (91.29%) - continued Insurance - Property/Casualty/Title (4.80%) 1,500,000 IPC Holdings Ltd.# $ 18,000,000 3,000,000 Old Republic International Corp. 41,000,000 -------------- 59,250,000 -------------- Machinery - General/Industrial (2.53%) 950,000 Flowserve Corp. 12,231,250 1,500,000 Hussmann International, Inc. 19,031,250 -------------- 31,262,500 -------------- Medical - Medical/Dental Services (2.05%) 2,100,000 Omnicare, Inc. 25,331,250 -------------- Medical - Nursing Homes (1.09%) 1,000,000 Manor Care, Inc.* 13,500,000 -------------- Medical/Dental - Supplies (1.00%) 1,200,000 Steris Corp.* 12,300,000 -------------- Office Equipment - Equipment & Automation (3.07%) 1,470,000 HON Industries, Inc. 37,852,500 -------------- Oil & Gas - Field Services (1.79%) 1,900,000 Key Energy Group* 22,087,500 -------------- Oil & Gas - U.S. Exploration & Production (5.74%) 240,000 Barrett Resources Corp.* 7,155,000 751,000 Chieftain International, Inc.* 15,113,875 521,070 Evergreen Resources, Inc.* 12,603,380 547,830 Mitchell Energy & Development Corp.* 12,052,260 729,560 Noble Affiliates, Inc. 23,938,687 -------------- 70,863,202 -------------- Retail - Apparel/Shoe (3.63%) 1,000,000 AnnTaylor Stores Corp.* 23,000,000 420,000 Payless ShoeSource, Inc.* 21,813,750 -------------- 44,813,750 --------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (91.29%) - continued Retail - Miscellaneous Diversified (1.83%) 2,200,000 Pier 1 Imports, Inc. $ 22,550,000 -------------- Retail - Restaurants (0.79%) 1,540,000 Landry's Seafood Restaurants, Inc.# 9,817,500 -------------- Retail - Super/Mini-Markets (0.70%) 800,000 Casey's General Stores, Inc. 8,700,000 -------------- Retail/Wholesale - Auto Parts (1.49%) 1,000,000 Keystone Financial, Inc. 18,375,000 -------------- Shoes & Related Apparel (2.13%) 2,387,840 Wolverine World Wide, Inc.# 26,266,240 -------------- Textile - Apparel Manufacturing (0.50%) 427,850 Tommy Hilfiger Corp.* 6,203,825 -------------- Transportation - Shipping (0.96%) 664,510 Knightsbridge Tankers Ltd. 11,836,584 -------------- Transportation - Truck (1.79%) 792,000 Knight Transportation, Inc.*# 13,860,000 400,000 Swift Transportation Co., Inc.* 8,200,000 -------------- 22,060,000 -------------- Trucks & Parts - Heavy Duty (1.55%) 1,700,000 Stewart & Stevenson Services, Inc.# 19,125,000 -------------- Total Common Stock (Cost $1,087,839,847) 1,127,362,642 -------------- Repurchase Agreement (4.37%) $54,007,000 State Street Repurchase Agreement, 6.05% dated March 31, 2000 to be repurchased at $54,033,856 on April 3, 2000, collateralized by FHLB Agency Note, 5.875% - September 17, 2001 with a value of $55,087,688 54,007,000 -------------- Total Repurchase Agreement (Cost $54,007,000) 54,007,000 --------------
28 28 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Small Cap Value Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Par Value Value - --------- -------------- U.S. Government Agency Obligations (5.18%) $64,000,000 FHLMA Discount Note - 6.00% 4/3/2000 $ 63,978,666 -------------- Total U.S. Government Agency Obligations (Cost $63,978,667) 63,978,666 -------------- Total Investments (Cost $1,205,825,513) (100.84%) 1,245,348,308 Total Other Assets, Less Liabilities (-0.84%) (10,405,014) -------------- Net Assets (100.00%) $1,234,943,294 --------------
* Non-income producing security. FHLB - Federal Home Loan Bank. FHLMA - Federal Home Loan Mortgage Association. # The Investment Company Act of 1940 defines affiliates as those companies in which a fund holds 5% or more of the outstanding voting securities. Following is a summary of the transactions with affiliates for the six months ended March 31, 2000.
Circor Federal International, Inc. Signal Corp. ------------------- ------------ Market Value at 9/30/99 -- $ 14,474,962 Purchases at Cost $ 8,404,392 31,371,545 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) 3,576,858 1,115,993 ------------ ------------ Market Value at 3/31/2000 $ 11,981,250 $ 46,962,500 ------------ ------------ Dividend Income -- $ 751,500 Realized Gain (Loss) -- --
IPC Knight Holdings, Ltd. Transportation, Inc. -------------- -------------------- Market Value at 9/30/99 $ 18,562,500 -- Purchases at Cost 7,320,451 $ 10,341,638 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) (7,882,951) 3,518,362 ------------ ------------ Market Value at 3/31/2000 $ 18,000,000 $ 13,860,000 ------------ ------------ Dividend Income $ 316,800 -- Realized Gain (Loss) -- --
Landry's Seacoast Seafood Financial Restaurants, Inc. Services Corp. ----------------- -------------- Market Value at 9/30/99 $ 5,280,800 $ 7,000,000 Purchases at Cost 7,428,915 8,220,320 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) (2,892,215) (438,532) ------------ ------------ Market Value at 3/31/2000 $ 9,817,500 $ 14,781,788 ------------ ------------ Dividend Income -- $ 120,366 Realized Gain (Loss) -- --
Splash A. Schulman, Technology Inc. Holdings, Inc. ------------ -------------- Market Value at 9/30/99 $ 21,121,250 $ 4,287,500 Purchases at Cost 8,465,254 -- Sales at Cost -- (6,575,744) Change in Unrealized Appreciation/(Depreciation) (5,736,504) 2,288,244 ------------ ------------ Market Value at 3/31/2000 $ 23,850,000 -- ------------ ------------ Dividend Income $ 350,527 -- Realized Gain (Loss) -- $ (24,751)
Stewart & Stevenson Wolverine Services, Inc. Worldwide, Inc. -------------- --------------- Market Value at 9/30/99 $ 8,859,375 $ 23,432,500 Purchases at Cost 11,528,615 4,145,952 Sales at Cost -- -- Change in Unrealized Appreciation/(Depreciation) (1,262,990) (1,312,212) Market Value at 3/31/2000 $ 19,125,000 $ 26,266,240 ------------ ------------ Dividend Income $ 150,875 $ 290,749 Realized Gain (Loss) -- --
See notes to financial statements. 29 Berger Funds 29 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BEMGX Berger Mid Cap Fund Number 215 Growth Fund PORTFOLIO MANAGER COMMENTARY AMY K. SELNER - -------------------------------------------------------------------------------- Performance The Berger Mid Cap Growth Fund (the "Fund") had a very strong fiscal first half ending March 31, 2000, gaining 94.36% while the S&P Mid Cap 400 Index(1) rose 32.06%. The S&P Mid Cap 400 Index remained very strong in the fourth quarter of 1999 and the first quarter of 2000. The Index outperformed both the small caps in the Russell 2000 Index(2) and the large caps in the S&P 500 Index(3) during the first quarter of 2000. This first quarter outperformance was due to multiple issues. The S&P Mid Cap 400 Index's heavy weighting in energy and specifically utilities, which were up more than 14% in March, contributed to the divergent performance versus the small caps in the Russell 2000 Index. Also, investors fled to larger cap stocks, which are perceived to be less risky in volatile markets, as well as to lower-valuation sectors such as financials, consumer cyclicals and energy. Profit-taking and continued interest rates fears were the primary drivers of the market rotation. This rotation to larger cap stocks led to the 8% rise in the S&P Mid Cap 400 Index and the S&P 500 Index rise of more than 12% in the last month of the first quarter, simultaneous with the weakness in small caps and technology stocks. Technology stocks climbed dramatically in the fourth quarter 1999 and through March 10, 2000, as investors continue to recognize the strong growth prospects relating to the broadband build-out and the Internet. Broadband companies provide the plumbing that enables broad acceptance of Internet applications and services. This marked a major upward move in technology stocks, many of which rose more than 100% in a five-month period. Profit-taking, interest rate fears and liquidity issues led to the beginning of a correction in technology stocks, which began March 10. Period in Review Within technology, optics continues to be a focus, and JDS Uniphase, a top provider of advanced fiber-optic components and modules, contributed to performance. The semiconductor and semi-capital equipment companies were also strong contributors. Both PMC-Sierra and Applied Micro Circuits within telecommunication semiconductors remained solid holdings. Although Internet performance was quite strong in the fourth quarter of 1999, it was less than stellar in the first quarter of 2000. Both Verisign and CMGI were hit with profit-taking. Longer term, the fundamentals for Internet growth remain strong. Within healthcare, the biotechnology sector went on a roller coaster ride. After tremendous strength in the fourth quarter of 1999 and the first two months of 2000, the group broke down in March 2000. Profit-taking, excessive equity issuance and confusion around the potential for genomics, the study of mapping and sequencing genes, led to the downfall. The long-term fundamentals for this group are stronger than ever. We believe the biotech industry continues to acquire critical mass as genomics and combinatorial chemistry, the process that helps increase the efficiency of the drug development timeline, lead to an explosion in new drug targets. Within the consumer sector, radio stocks have been very volatile as well. Radio stocks gave back most of their strong fourth-quarter gains during the first quarter as high valuations led to profit-taking. We continue to favor the long-term growth prospects for Cox Radio within this industry. Our energy exposure had strong performance in the first quarter of 2000 after being relatively flat in the fourth quarter of 1999. Supply-and-demand fundamentals are quite favorable, and strong earnings potential exists. Initial public offerings (IPOs) also made a positive contribution to the Fund's performance during the period, although it is unclear whether this market for IPOs will continue. Looking Ahead We are cautious in our outlook for mid caps and the market in the short term. If economic metrics continue to show an overheating economy, interest rates will continue to creep up, and the market may continue to be volatile and move sideways as we enter the slower summer period. We estimate that this correction in technology stocks may continue until their valuations are below the levels we saw at the beginning of this year. While uncomfortable, this sort of correction should be healthy for the market over the long term and may present an excellent buying opportunity in the strongest growth stocks. Past performance is no guarantee of future results. (1) The S&P Mid Cap 400 Index is an unmanaged index, with dividends reinvested, and is generally representative of the market for mid-sized companies. One cannot invest directly in an index. (2) The Russell 2000 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 2000 U.S. companies. It is a generally recognized indicator used to measure overall performance of small company stocks. One cannot invest directly in an index. (3) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 30 30 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW Berger Mid Cap Growth Fund Comparison of Change in Value of Berger Mid Cap Growth Fund vs. S&P Mid Cap 400 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 150.20% Life of Fund (12/31/97) 91.37% Berger Mid Cap Growth Fund $43,072 S&P Mid Cap 400 Index $15,386 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. IPO's have made a significant contribution to the Fund's recent performance. There can be no assurance that such contribution will continue. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.09%) Banks - Northeast (0.60%) 4,120 U.S. Trust Corp. $ 778,680 ------------ Banks - West/Southwest (0.56%) 17,280 Zions Bancorp. 719,280 ------------ Commercial Services - Advertising (1.93%) 32,020 TMP Worldwide, Inc.* 2,489,555 ------------ Commercial Services - Miscellaneous (1.24%) 34,230 Young and Rubicam Inc. 1,608,810 ------------ Commercial Services - Schools (0.52%) 22,010 Devry, Inc.* 671,305 ------------ Computer - Services (2.76%) 31,420 Internap Network Services Corp.* 1,445,320 59,350 MarchFirst, Inc.* 2,118,053 ------------ 3,563,373 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.09%) - continued Computer Software - Desktop (2.09%) 29,960 Macromedia, Inc.* $ 2,705,762 Computer Software - Educational/Entertainment (1.31%) 36,910 Smartforce PLC - Sponsored ADR* 1,693,246 ------------ Computer Software - Enterprise (2.06%) 6,000 Broadbase Software, Inc.* 478,500 32,500 Peregrine Systems, Inc.* 2,179,531 ------------ 2,658,031 ------------ Electronic - Semiconductor Equipment (6.21%) 22,150 ASM Lithography Holding NV* 2,475,262 17,320 KLA-Tencor Corp.* 1,459,210 34,080 Lam Research Corp.* 1,535,730 31,060 Teradyne, Inc.* 2,554,685 ------------ 8,024,887 ------------
31 Berger Funds 31 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Mid Cap Growth Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (99.09%) - continued Electronic - Semiconductor Manufacturing (12.59%) 29,900 Applied Micro Circuits Corp.* $ 4,486,868 26,700 Conexant Systems, Inc.* 1,895,700 14,500 Cree Research Inc.* 1,636,687 38,000 Linear Technology Corp. 2,090,000 16,600 PMC-Sierra, Inc.* 3,381,212 13,080 SDL, Inc.* 2,784,405 ------------ 16,274,872 ------------ Internet - E*Commerce (0.92%) 72,860 Neoforma.com Inc.* 1,193,082 ------------ Internet - ISP/Content (2.11%) 6,070 Akamai Technologies, Inc. 976,131 7,410 Commerce One, Inc.* 1,105,942 8,510 Engage Technologies Inc.* 649,419 ------------ 2,731,492 ------------ Internet - Network Security/Solutions (7.00%) 7,470 Juniper Networks, Inc.* 1,968,811 10,170 Redback Networks Inc.* 3,050,364 28,310 Sapient Corp.* 2,374,501 11,080 VeriSign, Inc.* 1,656,460 ------------ 9,050,136 ------------ Internet - Software (7.77%) 35,880 Agile Software Corp.* 2,242,500 5,680 Ariba, Inc.* 1,190,670 17,140 CMGI Inc.* 1,942,176 43,000 Healtheon/WebMD Corp.* 989,000 10,980 Kana Communications, Inc.* 746,640 9,360 Software.com, Inc.* 1,206,270 10,750 Vignette Corp.* 1,722,687 ------------ 10,039,943 ------------ Media - Cable TV (4.12%) 34,300 Cox Communications, Inc.* 1,663,550 46,400 EchoStar Communications Corp. - Class A* 3,665,600 ------------ 5,329,150 ------------ Media - Radio/TV (10.11%) 22,576 Clear Channel Communications, Inc.* 1,559,155 43,300 Cox Radio, Inc.* 3,637,200 26,700 Hispanic Broadcasting Corp.* 3,023,775 12,000 Pegasus Communications Corp.* 1,689,000 28,030 Univision Communications, Inc.* 3,167,390 ------------ 13,076,520 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (99.09%) - continued Medical - Biomed/Genetics (11.46%) 79,280 Antigenics Inc.* $ 1,615,330 25,000 Diversa Corp.* 1,175,000 50,000 Gene Logic Inc.* 2,103,125 13,480 Genentech, Inc.* 2,048,960 22,920 IDEC Pharmaceuticals Corp.* 2,251,890 27,500 Medarex, Inc.* 1,381,875 19,850 Medimmune, Inc.* 3,456,381 8,500 PE Corp. - Celera Genomics Group* 778,281 ------------ 14,810,842 ------------ Medical - Generic Drugs (2.26%) 73,750 Watson Pharmaceuticals, Inc.* 2,926,953 ------------ Medical - Products (1.57%) 34,550 Guidant Corp.* 2,031,971 ------------ Oil & Gas - Drilling (4.09%) 88,570 ENSCO International Inc. 3,199,591 50,470 Noble Drilling Corp.* 2,091,350 ------------ 5,290,941 ------------ Oil & Gas - Field Services (3.43%) 27,470 BJ Services Co.* 2,029,346 85,550 Veritas DGC, Inc.* 2,406,093 ------------ 4,435,439 ------------ Oil & Gas - Machinery/Equipment (2.34%) 51,230 Weatherford International, Inc.* 3,019,368 ------------ Retail - Discount & Variety (0.74%) 18,460 Dollar Tree Stores, Inc.* 962,227 ------------ Telecommunications - Equipment (4.57%) 25,560 JDS Uniphase Corp.* 3,081,577 10,650 Powerwave Technologies, Inc.* 1,331,250 11,586 Sycamore Networks Inc.* 1,494,594 ------------ 5,907,421 ------------ Telecommunications - Services (4.73%) 23,880 McLeodUSA, Inc. 2,025,322 23,380 Metromedia Fiber Network, Inc.* 2,262,015 36,530 Viatel, Inc.* 1,833,362 ------------ 6,120,699 ------------ Total Common Stock and Investments (Cost $97,867,337) (99.09)% 128,113,985 ------------ Total Other Assets, Less Liabilities (0.91%) 1,176,946 ------------ Net Assets (100.00%) $129,290,931 ------------
* Non-income producing security. ADR - American Depositary Receipt. See notes to financial statements. 32 32 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BEMVX Fund Number 216 Berger Mid Cap PORTFOLIO MANAGER COMMENTARY THOMAS M. PERKINS Value Fund ROBERT H. PERKINS - -------------------------------------------------------------------------------- Performance We are pleased to report that in the six months ended March 31, 2000, the Berger Mid Cap Value Fund (the "Fund") gained 24.21% compared with the 14.01% for the S&P Mid Cap Value Index,(1) 32.06% for the S&P Mid Cap 400 Index,(2) and 17.50% for the S&P 500 Index.(3) Our Fund underperformed the S&P Mid Cap 400 Index because growth stocks continued to outpace value stocks. We outperformed the other indices mainly because we had strong appreciation in the prices of some of our severely depressed technology and energy stocks. Calendar year 1999 was the sixth consecutive year in which the S&P Mid Cap 400 Index underperformed the large cap-dominated S&P 500 Index (14.72% vs. 21.03%). In the preceding five years (1988-1993), mid caps significantly outperformed large caps. There is a cycle. We believe that mid caps (and especially value mid caps) now are relatively under priced and poised for an extended period of outperformance. Assuming world economic prospects continue to be positive, mid cap value stocks should have good earnings growth and benefit from a broadening of the market as investors reduce their recent years' narrow focus on high-growth companies. Period in Review The financial sector remains our largest sector, constituting 26.8% of the portfolio. Although we have had gains in this sector, it generally has underperformed as interest rates have continued to rise. However, the fundamentals of our holdings have been solid--their earnings and dividends have been increasing, and many are buying back their stock. Regional bank stocks now are cheaper than at any time since the lows of 1990. (These stocks subsequently had tremendous appreciation for most of the rest of the decade of the `90s as interest rates declined.) Moreover, we expect consolidation to continue. For example, the acquisition of CCB, one of our high-quality bank holdings, was recently announced. We increased our positions in real estate investment trusts (REITs) as they have current dividend yields of almost 9% and are selling near net asset value. We continued to use the extreme strength in technology stocks to reduce or eliminate many of our holdings in this sector. We bought these issues when Wall Street was focused on uncertain short-term factors, not on favorable long-term trends. Subsequently, these stocks' strong long-term fundamentals have been "rediscovered" by the market, and they have become adequately valued. As this has happened, the risk/reward relationships of the stocks became less favorable. For example, we reduced our exposure to Aspect, Convergys, Comdisco, Tektronix and Telephone Data, and eliminated Adaptec, Analog Devices and Tellabs. When we purchased each of these stocks, its price was down 50%-75% from its recent high, and they were selling at reasonable multiples of book value and earnings power. The companies had good balance sheets, positive cash flow and, in most cases, stock buyback programs. If these stocks experience temporary problems again in the future, we may want to reinvest. In the meantime, some of the proceeds of these sales were deployed to other financially sound issues that more recently fell into what we believe is only temporary market disfavor. These include Autodesk, Complete Business Solutions, Robert Half, Silicon Graphics and Structural Dynamics. When we purchased these stocks, they were all down over 50% from their recent highs, and most were at below-average price/earnings valuations. By investing in temporarily out-of-favor industries and companies, we seek to lessen risk while maintaining strong upside potential. Looking Ahead Most major stock market indices are near record high levels, particularly the valuations of "new economy" stocks. With the U.S. economy growing at an unsustainable pace, the Federal Reserve continuing to raise interest rates and some signs of accelerating inflation, the market could be vulnerable. However, assuming the economy has a soft landing, any market correction should be relatively short-lived. We are more comfortable with mid and small cap value stocks than we are with the overall market. We are still finding many stocks to buy at 10-15 times earnings, at less than 2.5 times book value and with strong balance sheets and cash flows. Interestingly, corporate America is also attracted to undervalued mid and small cap companies and is acquiring them at a record pace. About 10% of our portfolio has been acquired at premiums of 25-50% above market prices. As the performance of high-momentum stocks wanes, we expect investor interest to return to the value sector. Past performance is no guarantee of future results. (1) The S&P Mid Cap Value Index is an unmanaged index, with dividends reinvested, and is generally representative of the market for value stocks for mid-sized companies. One cannot invest directly in an index. (2) The S&P Mid Cap 400 Index is an unmanaged index, with dividends reinvested, and is generally representative of the market for mid-sized companies. One cannot invest directly in an index. (3) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 33 Berger Funds 33 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Mid Cap Value Fund Comparison of Change in Value of Berger Mid Cap Value Fund vs. S&P Mid Cap 400 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 35.35% Life of Fund (8/12/98) 29.06% Berger Mid Cap Value Fund $15,195 S&P Mid Cap 400 Index $14,752 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (97.43%) Banks - Midwest (1.82%) 15,000 Associated Banc-Corp. $ 448,125 ------------ Banks - Northeast (0.91%) 15,000 Peoples Heritage Financial Group, Inc. 225,000 ------------ Banks - Southeast (2.79%) 9,000 CCB Financial Corp. 398,250 14,500 Compass Bancshares, Inc. 289,093 ------------ 687,343 ------------ Banks - Super Regional (1.06%) 9,500 UnionBanCal Corp. 261,852 Banks - West/Southwest (1.50%) 11,000 City National Corp. 370,562 ------------ Building - Cement/Concrete/Aggregates (1.32%) 5,500 Southdown, Inc. 324,500 ------------ Building - Paint & Allied Products (1.43%) 16,000 The Sherwin Williams Co. 351,000 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (97.43%) - continued Building - Residential/Commercial (2.49%) 10,000 Centex Corp. $ 238,125 18,000 Pulte Corp. 375,750 ------------ 613,875 ------------ Building Products - Wood (3.63%) 14,000 Georgia-Pacific Corp. (Timber Group) 358,750 11,000 Rayonier Inc. 536,250 ------------ 895,000 ------------ Chemicals - Plastics (0.91%) 17,000 A. Schulman, Inc. 225,250 ------------ Chemicals - Specialty (1.38%) 17,000 Millennium Chemicals Inc. 340,000 ------------ Commercial - Leasing Companies (0.99%) 5,500 Comdisco, Inc. 242,687 ------------ Commercial Services - Miscellaneous (1.63%) 14,000 The Dun & Bradstreet Corp. 400,750 ------------
34 34 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Mid Cap Value Fund SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (97.43%) - continued Commercial Services - Security/Safety (1.12%) 10,000 Diebold, Inc. $ 275,000 ------------ Commercial Services - Staffing (3.09%) 27,000 Interim Services Inc.* 501,187 5,500 Robert Half International, Inc.* 260,906 ------------ 762,093 ------------ Computer - Graphics (2.46%) 7,500 Autodesk, Inc. 341,250 25,000 Silicon Graphics Inc.* 264,062 ------------ 605,312 ------------ Computer - Services (3.43%) 11,000 Complete Business Solutions, Inc.* 246,125 18,000 Computer Horizons Corp.* 308,250 7,500 Convergys Corp.* 289,687 ------------ 844,062 ------------ Computer Software - Enterprise (1.69%) 5,500 Keane, Inc.* 138,875 20,500 Structural Dynamics Research Corp.* 276,750 ------------ 415,625 ------------ Containers - Paper/Plastic (0.52%) 8,000 Crown Cork & Seal Company, Inc. 128,000 ------------ Diversified Operations (1.47%) 20,000 Federal Signal Corp. 361,250 ------------ Electrical - Connectors (1.54%) 7,500 Methode Electronics, Inc. 378,750 ------------ Electronic - Measuring Instruments (1.14%) 5,000 Tektronix, Inc. 280,000 ------------ Electronic - Semiconductor Equipment (1.69%) 3,000 Novellus Systems, Inc.* 168,375 3,000 Teradyne, Inc.* 246,750 ------------ 415,125 ------------ Finance - Equity REIT (7.86%) 23,000 Archstone Communities Trust 458,562 8,000 First Industrial Realty Trust, Inc. 218,000 14,000 Highwoods Properties, Inc. 297,500 19,500 Liberty Property Trust 466,781 19,500 Mack-Cali Realty Corp. 497,250 ------------ 1,938,093 ------------ Finance - Investment Bankers (2.21%) 7,500 Legg Mason, Inc. 324,375 5,000 Paine Webber Group Inc. 220,000 ------------ 544,375 ------------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (97.43%) - continued Finance - Public Investment Fund - Foreign (2.63%) 17,000 Emerging Markets Telecommunications Fund* $ 310,250 31,000 Morgan Stanley Asia Pacific Fund, Inc.* 337,125 ------------ 647,375 ------------ Finance - Publicly Traded Investment Fund (0.71%) 6,500 H & Q Healthcare Investors Fund* 173,875 ------------ Financial Services - Miscellaneous (1.41%) 15,000 Heller Financial, Inc. 346,875 ------------ Insurance - Property/Casualty/Title (3.81%) 9,000 Everest Reinsurance Holdings, Inc. 293,625 17,000 IPC Holdings, Ltd. 204,000 32,000 Old Republic International Corp. 440,000 ------------ 937,625 ------------ Leisure - Toys/Games/Hobby (1.44%) 21,500 Hasbro, Inc. 354,750 ------------ Machinery - General/Industrial (0.90%) 5,000 Ingersoll-Rand Co. 221,250 ------------ Media - Newspapers (0.92%) 21,000 Hollinger International, Inc. - Class A 225,750 ------------ Medical - Dental - Supplies (1.04%) 25,000 Steris Corp.* 256,250 ------------ Medical - Ethical Drugs (1.35%) 7,000 Elan Corp. PLC 332,500 ------------ Medical - Hospitals (0.84%) 14,500 Health Management Associates, Inc.* 206,625 ------------ Medical - Medical/Dental Services (1.71%) 35,000 Omnicare, Inc. 422,187 ------------ Medical - Nursing Homes (1.04%) 19,000 Manor Care, Inc.* 256,500 ------------ Medical - Outpatient/Home Care (0.45%) 20,000 Healthsouth Corp.* 111,250 ------------ Medical - Wholesale Drug/Sundries (0.81%) 9,500 McKesson HBOC, Inc. 199,500 ------------ Office Equipment - Equipment & Automation (1.31%) 12,500 HON Industries, Inc. 321,875 ------------
35 Berger Funds 35 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (97.43%) - continued Oil & Gas - Field Services (1.60%) 34,000 Key Energy Group* $ 395,250 ------------ Oil & Gas - International Specialty (1.40%) 6,000 Murphy Oil Corp. 345,750 ------------ Oil & Gas - Production/Pipeline (1.52%) 8,500 The Williams Companies, Inc. 373,468 ------------ Oil & Gas - U.S. Exploration & Production (5.28%) 6,000 Barrett Resources Corp.* 178,875 5,500 Devon Energy Corp. 267,093 15,000 Mitchell Energy & Development Corp.* 330,000 16,000 Noble Affiliates, Inc. 525,000 ------------ 1,300,968 ------------ Oil & Gas - U.S. Integrated (1.41%) 6,000 Kerr-McGee Corp. 346,500 ------------ Retail - Apparel/Shoe (3.85%) 9,000 Payless ShoeSource, Inc.* 467,437 20,000 Ross Stores Inc. 481,250 ------------ 948,687 ------------ Retail - Major Discount Chains (0.54%) 9,000 Toys "R" Us, Inc.* 133,312 ------------ Retail - Miscellaneous Diversified (1.04%) 25,000 Pier 1 Imports, Inc. 256,250 ------------ Shoes & Related Apparel (1.43%) 32,000 Wolverine World Wide, Inc. 352,000 ------------ Telecommunications - Equipment (1.19%) 6,000 Aspect Communications Corp.* 222,375 7,000 Loral Space & Communications Ltd.* 71,312 ------------ 293,687 ------------ Textile - Apparel Manufacturing (1.06%) 18,000 Tommy Hilfiger Corp.* 261,000 ------------ Trucks & Parts - Heavy Duty (1.37%) 30,000 Stewart & Stevenson Services, Inc. 337,500 ------------ Utility - Gas Distribution (1.81%) 10,000 National Fuel Gas Co. 445,625 ------------
March 31, 2000 -------------- Shares/Par Value Value - ---------------- -------------- Common Stock (97.43%) - continued Utility - Telephone (3.48%) 2,900 Telecomunicacoes Brasileiras S.A. - Telebras* $ 434,093 3,800 Telephone and Data Systems, Inc. 421,800 ------------ 855,893 ------------ Total Common Stock (Cost $19,813,972) 23,993,706 ------------ Warrants (1.48%) Retail - Department Stores (1.48%) 21,500 Federated Department Stores Inc. - D* 365,500 ------------ Total Warrants (Cost $337,728) 365,500 ------------ Repurchase Agreement (0.36%) $89,000 State Street Repurchase Agreement, 6.05%, dated March 31, 2000, to be repurchased at $89,044 on April 3, 2000, collateralized by FNMA Agency Note, 6.40% - December 21, 2001, with a value of $95,819 89,000 ------------ Total Repurchase Agreement (Cost $89,000) 89,000 ------------ Total Investments (Cost $20,240,700) (99.27%) 24,448,206 Total Other Assets, Less Liabilities (0.73%) 179,380 ------------ Net Assets (100.00%) $ 24,627,586 ------------
* Non-income producing security. FNMA - Federal National Mortgage Association. PLC - Public Limited Company. See notes to financial statements. 36 36 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BEONX Berger Fund Number 43 Growth Fund PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO - -------------------------------------------------------------------------------- Performance Despite high volatility, the market continued to favor growth stocks over value stocks this reporting period. Against this backdrop, the Berger Growth Fund (the "Fund") significantly outperformed its benchmark, the S & P 500 Index.(1) The Fund gained 69.95% for the six-month period ended March 31, 2000, compared with 17.50% for the Index. The market performed very differently in the two quarters included in this reporting period. In the fourth quarter 1999, technology stocks fueled a massive surge in the market. The new year started slowly, but rallied towards the end of January and into February with technology stocks again leading the way. In March, things changed. Financial stocks started to rally. Energy stocks, particularly in the oil and gas drilling and equipment industries, were strong throughout the quarter as the market started to anticipate the positive earnings outlook for energy companies. Period in Review Effective January 31, 2000, we changed the name of the Fund from the Berger 100 Fund to the Berger Growth Fund. We felt the name change is a more accurate reflection of the Fund's objective and style. Individual stock selection was the key to the Fund's outperformance this reporting period. In the fourth quarter 1999, many of the Fund's largest holdings had notable returns, especially those in the technology sector, which even outperformed that sector's average for the quarter. Strong upward moves were registered that quarter by Qualcomm, Genentech, Sony, Veritas Software and ST Microelectronics. During the first quarter 2000, the Fund continued to benefit from increases in some of its largest holdings, including Network Appliance, Echostar and Cisco Systems. Oracle Japan registered a big gain in the first quarter, which reflects accelerating growth in the software market (Oracle produces database software) after the "Y2K" lockdowns of 1999. Charles Schwab rallied from its fourth-quarter decline as investors focused on the company's rapid asset inflows and the increase in earnings and revenue estimates. We own some outstanding companies in the energy sector. The strong supply/demand fundamentals in energy led to stellar performance from companies such as Enron Corporation, Ensco International and Transocean Sedco Forex, the world's largest offshore drilling contractor. Enron specializes in the exploration and production of natural gas, while Ensco and Transocean Sedco Forex are drilling and oil service companies. On the down side, poor performers included Agile Software and Clear Channel Communications. However, we expect both of these stocks to perform well as their fundamentals play out over the next two to five years. Agile, which exploded out of the box, became one of the most expensive stocks in the software industry. The market readjusted the company's valuation throughout the quarter, making Agile in a sense the victim of its own success. Once this period of readjustment is over, we expect investors to refocus on Agile's fundamentals. Clear Channel was the victim of profit-taking and short-selling pressure after its recent acquisition of SFX. We are optimistic about this acquisition, however, and expect it to add to Clear Channel's growth rate over the next 24-36 months. Looking Ahead We believe the Fund is well-positioned for the growth opportunities that we see for the rest of the year and into 2001. Our continued focus on careful stock selection to identify the best large cap growth companies should provide a solid base to build on for the rest of the year. We look for continued volatility in the following months as the market digests more potential rate increases by the Federal Reserve Board and tries to cope with high valuations of premier growth companies. Once the market comes to terms with these two major issues, we believe market leadership will be regained by those companies delivering strong long-term growth. Past performance is no guarantee of future results. (1) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 37 Berger Funds 37 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Growth Fund Comparison of Change in Value of Berger Growth Fund vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 74.66% Five Year 26.57% Ten Year 22.23% Berger Growth Fund $74,449 S&P 500 Index $56,104 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.95%) Computer - Local Networks (4.21%) 1,141,962 Cisco Systems, Inc.* $ 88,287,937 ------------ Computer - Manufacturers (1.90%) 424,038 Sun Microsystems, Inc.* 39,733,685 ------------ Computer - Memory Devices (3.03%) 300,269 EMC Corp.* 37,533,625 313,060 Network Appliance, Inc.* 25,905,715 ------------ 63,439,340 ------------ Computer - Software (1.94%) 48,437 Oracle Corp. 40,564,630 ------------ Computer Software - Desktop (4.33%) 255,560 Gemstar International Group Ltd.* 21,978,160 646,100 Microsoft Corp.* 68,648,125 ------------ 90,626,285 ------------ Computer Software - Enterprise (2.51%) 211,820 Siebel Systems, Inc.* 25,299,251 207,759 VERITAS Software Corp.* 27,216,429 ------------ 52,515,680 ------------
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.95%) - continued Computer Software - Network (1.05%) 175,390 Nortel Networks Corp. $ 22,099,140 ------------ Electronic - Military Systems (0.70%) 117,780 General Motors Corp. - Class H* 14,663,610 ------------ Electronic - Miscellaneous Components (2.03%) 315,833 RF Micro Devices, Inc.* 42,440,059 ------------ Electronic - Semiconductor Equipment (5.94%) 494,216 Applied Materials, Inc.* 46,579,858 130,008 ASM Lithography Holding NV* 14,528,394 49,160 Infineon Technologies ADR* 2,823,627 272,110 KLA-Tencor Corp.* 22,925,267 370,890 Lam Research Corp.* 16,713,230 252,670 Teradyne, Inc.* 20,782,107 ------------ 124,352,483 ------------ Electronic - Semiconductor Manufacturing (8.31%) 307,020 Applied Micro Circuits Corp.* 46,072,188 227,710 Conexant Systems, Inc.* 16,167,410 275,879 Intel Corp. 36,398,785 153,942 SDL, Inc.* 32,770,403 228,525 STMicroelectronics NV* 42,777,023 ------------ 174,185,809 ------------
38 38 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Growth Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (99.95%) - continued Finance - Investment Bankers (1.62%) 595,570 Schwab (Charles) Corp. $33,835,820 ----------- Household - Audio/Video (3.07%) 229,801 Sony Corp. - Sponsored ADR 64,373,005 ----------- Internet - ISP/Content (4.13%) 44,050 Akamai Technologies, Inc.* 7,083,790 585,858 America Online, Inc.* 39,398,950 167,485 Internet Initiative Japan Inc.* 11,682,078 166,054 Yahoo!, Inc.* 28,457,504 ----------- 86,622,322 ----------- Internet - Network Security/Solutions (4.72%) 105,990 Juniper Networks, Inc.* 27,934,989 97,790 Redback Networks Inc.* 29,330,888 278,170 VeriSign, Inc.* 41,586,415 ----------- 98,852,292 ----------- Internet - Software (1.77%) 224,220 Agile Software Corp.* 14,013,750 100,037 Phone.com, Inc.* 16,318,535 41,970 Vignette Corp.* 6,725,692 ----------- 37,057,977 ----------- Leisure - Products (1.30%) 458,872 The Seagram Co. Ltd. 27,302,884 ----------- Media - Cable/TV (6.28%) 479,460 AT&T Corp. - Liberty Media Group* 28,408,005 833,420 EchoStar Communications Corp. - Class A* 65,840,180 372,446 Time Warner, Inc. 37,244,600 ----------- 131,492,785 ----------- Media - Radio TV (4.19%) 442,092 Clear Channel Communications, Inc.* 30,531,978 210,700 Hispanic Broadcasting Corp.* 23,861,775 1,029,053 Infinity Broadcasting Corp.* 33,315,590 ----------- 87,709,343 ----------- Medical - Biomed/Genetics (5.93%) 487,909 Amgen, Inc.* 29,945,414 422,623 Genentech, Inc.* 64,238,696 117,360 Medimmune, Inc.* 20,435,310 98,760 PE Corp.-PE Biosystems Group 9,530,340 ----------- 124,149,760 ----------- Medical - Drug/Diversified (1.40%) 507,390 Bristol-Myers Squibb Co. 29,301,772 -----------
March 31, 2000 Shares/Par Value Value - ---------------- -------------- Common Stock (99.95%) - continued Medical - Ethical Drugs (1.48%) 577,652 American Home Products Corp. $30,976,588 ----------- Medical - Products (1.57%) 559,640 Guidant Corp.* 32,913,827 ----------- Oil & Gas - Drilling (4.04%) 1,233,507 ENSCO International, Inc. 44,560,440 652,128 Nabors Industries* 25,310,718 288,751 Transocean Sedco Forex, Inc. 14,816,535 ----------- 84,687,693 ----------- Oil & Gas - Field Services (1.38%) 181,987 Halliburton Co. 7,461,467 279,949 Schlumberger Ltd. 21,416,098 ----------- 28,877,565 ----------- Oil & Gas - Production/Pipeline (1.17%) 326,597 Enron Corp. 24,453,950 ----------- Retail - Apparel/Shoe (0.71%) 361,067 Intimate Brands, Inc. 14,803,747 ----------- Retail - Major Discount Chains (1.24%) 495,186 Costco Wholesale Corp.* 26,028,214 ----------- Retail/Wholesale - Computers (1.22%) 504,025 Tandy Corp. 25,579,268 ----------- Telecommunications - Cellular (1.50%) 243,644 VoiceStream Wireless Corp.* 31,384,392 ----------- Telecommunications - Equipment (9.04%) 5,390 Avanex Corp.* 817,932 251,240 Corning Inc. 48,740,560 281,312 JDS Uniphase Corp.* 33,915,678 120,630 Next Level Communications, Inc.* 13,118,512 283,562 Nokia Corp.- Sponsored ADR 61,603,844 242,463 Sycamore Networks, Inc.* 31,277,727 ----------- 189,474,253 ----------- Telecommunications - Services (3.83%) 112,450 COLT Telecom Group PLC* 22,251,043 858,500 Qwest Communications International, Inc.* 41,637,250 246,560 Sonera Corp.- Sponsored ADR 16,365,420 ----------- 80,253,713 -----------
39 Berger Funds 39 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares/Par Value Value - ---------------- -------------- Common Stock (99.95%) - continued Utilities (2.42%) 1,238 NTT Mobile Communications Network, Inc. $ 50,754,523 --------------- Total Common Stock (Cost $1,308,709,191) 2,093,794,351 --------------- Repurchase Agreement (0.17%) $3,515,000 State Street Repurchase Agreement, 6.05% dated March 31, 2000, to be repurchased at $3,516,748 on April 3, 2000, collateralized by U.S. Treasury Note, 5.75% - June 30, 2001 with a value of $3,587,850 3,515,000 --------------- Total Repurchase Agreement (Cost $3,515,000) 3,515,000 --------------- Total Investments (Cost $1,312,224,191) (100.12%) 2,097,309,351 Total Other Assets, Less Liabilities (-0.12%) (2,434,015) --------------- Net Assets (100.00%) $ 2,094,875,336 ---------------
* Non-income producing security. ADR - American Depositary Receipt. PLC - Public Limited Company. See notes to financial statements. 40 40 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BBINX Berger/BIAM Fund Number 349 International Fund PORTFOLIO MANAGER COMMENTARY BANK OF IRELAND ASSET MANAGEMENT (U.S.) LTD. - -------------------------------------------------------------------------------- Performance The Berger/BIAM International Fund (the "Fund") gained 21.34% in the six-month period ended March 31, 2000, compared with 17.00% for its benchmark, the MSCI EAFE Index.(1) World equity markets registered exceptional gains toward the end of 1999, fueled by a combination of low interest rates and rising commodity prices. There was significant divergence in the performance of those markets in the first quarter 2000, however. Half of the markets in the 22 countries that comprise the MSCI World Index registered gains and half registered losses (as measured in U.S. dollars). Investor enthusiasm for particularly high-flying Internet stocks dimmed during the quarter as the pricey valuations of these stocks began to be called into question. Indeed, in Europe, there was profit-taking from the technology, media and telecommunications sectors and some evidence that this money was directed toward financial and cyclical stocks. Rising interest rates in all markets except Japan also served as a drag on returns. Period in Review The Fund's investment in telecommunications, media and technology stocks was the key reason that it was able to outperform the MSCI EAFE Index this reporting period. The most significant positive contribution came from stocks in the Growth in Telecommunications theme. Vodafone/Mannesmann agreed to a friendly merger in the first quarter 2000, ending their lengthy takeover saga and creating the largest mobile phone operator in the world, with businesses in 25 countries. The combined entity is now our largest holding and, given its global reach and superior growth rate, one we continue to believe in strongly. Other notable performers in the sector were KPN and Ericsson. Japanese-quoted stocks, such as Murata Manufacturing, in the Technological Innovation theme delivered strong performance in the fourth quarter 1999. Stocks in the Undervalued Asset Profile theme aided performance in the first quarter. Vivendi is one of the companies at the forefront of Europe's corporate activity, which favorably impacted its share price. Philips Electronics, which we added to the portfolio in the first quarter, moved up strongly following its announcement that earnings had more than tripled over the previous year's figures. Total Fina had a 24% increase in profits, aided by the recent run-up in crude oil prices. Other companies that performed well were News Corp., one of the world's premier media companies, and Takeda Chemical. Analysts are forecasting that Takeda's diabetes drug, Actos, will gain market share now that the U.S. Federal Drug Administration has halted the sale of its largest competitor, Rezulin. Financial stocks continued their underperformance; their negative returns were largely a reaction to anticipated, and then to actual, increases in global interest rates. Stocks in the Positive Banking Environment and Growth in Personal Savings Products themes felt this rate move, including ING, which fared poorly despite announcing a 54% increase in net operating profits in the first quarter. We do not believe that the financial stocks in our portfolio deserve the valuations currently attributed to them by the market. Looking Forward Toward the end of March, there was some respite for value-oriented investors as several major global, blue-chip, old-economy companies behaved like hot Internet stocks, appreciating 20%-25% in a matter of days. On a global basis, rising interest rates have started to challenge the high valuations of certain stocks and to make other, previously ignored investment options more attractive. When all is said and done, most of the old-economy companies have valuable products and competent, proven management. Undoubtedly, some of these companies will struggle, but there will also be winners as equity market strength broadens. We believe our job is to identify these winners. We will continue to take profits from stocks that we believe are close to or at full valuation and redirect the money to areas where we find value. Past performance is no guarantee of future results. (1) The Morgan Stanley Capital International EAFE Index represents major overseas stock markets. It is an unmanaged index. One cannot invest directly in an index. 41 Berger Funds 41 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger/BIAM International Fund Comparison of Change in Value of Berger/BIAM International Fund vs. MSCI EAFE Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 27.78% Five Year 16.63% Ten Year 12.26% Berger/BIAM International Fund $31,791 MSCI EAFE Index $24,525 [GRAPH] Performance figures are historical and, in part, reflect the performance of a pool of assets advised by BIAM (Bank of Ireland Asset Management) for periods before the Fund commenced operations on November 7, 1996,adjusted to reflect any increased expenses associated with operating the Fund. The asset pool was not registered with the Securities and Exchange Commission and therefore was not subject to the investment restrictions imposed by law on registered mutual funds. If the pool had been registered, its performance might have been adversely affected. Investments in the Fund are not insured by the Federal Deposit Insurance Corporation, are not deposits and are not obligations of, or endorsed or guaranteed in any way by, any bank. Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. 42 42 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BEOOX Berger Growth and Fund Number 44 Income Fund PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO - -------------------------------------------------------------------------------- Performance Despite high volatility, the market continued to favor growth stocks over value stocks this reporting period. Against this backdrop, the Berger Growth and Income Fund (the "Fund"), which invests primarily in large cap companies with strong fundamentals and growth prospects, significantly outperformed its benchmark, the S&P 500 Index.(1) The Fund was up 62.07% for the six-month period ended March 31, compared with 17.50% for the Index. The market performed very differently during the two quarters included in this reporting period. In the fourth quarter 1999, technology stocks fueled a massive surge in the market. The new year started slowly but rallied toward the end of January and into February with technology stocks leading the way. In March, things changed. Financial stocks began to rally. Energy stocks, particularly in the oil and gas drilling and equipment industries, were strong throughout the quarter as the market started to anticipate the positive earnings outlook for energy companies. Period in Review Individual stock selection was the key to the Fund's outperformance this reporting period. In the fourth quarter 1999, many of the Fund's largest holdings had notable returns, including Nokia, QUALCOMM, Amgen and Toyota. During the first quarter 2000, the Fund continued to benefit from increases in some of its largest holdings, including Network Appliance, Echostar and Cisco Systems. Oracle Japan registered a big gain for the quarter, which reflects accelerating growth in the software market (Oracle produces database software) after the "Y2K" lockdowns of 1999. Charles Schwab rallied from its fourth-quarter decline as investors focused on the company's rapid asset inflows and the increase in earnings and revenue estimates. We own some outstanding companies in the energy sector. The strong supply/demand fundamentals in energy led to stellar performance from companies such as Enron Corporation, a company that specializes in the exploration and production of natural gas, and ENSCO International, an international offshore drilling company. On the down side, poor performers included Alltel and Clear Channel Communications. We expect both of these stocks to perform well as their fundamentals play out over the next two to five years. Alltel, a telecommunications company with cellular operations, was hurt by investor concerns over industry wide reductions in cellular phone roaming fees. Clear Channel was the victim of profit-taking and short-selling pressure after its recent acquisition of SFX. We are optimistic about this acquisition, however, and expect it to add to Clear Channel's growth rate over the next 24-36 months. Looking Ahead We believe the Fund is well positioned for the growth opportunities that we see for the rest of the year and into 2001. Our continued focus on careful stock selection to identify the best large cap growth companies should provide a solid base to build on for the rest of the year. We look for continued volatility in the second quarter as the market digests more potential rate increases by the Federal Reserve Board and tries to cope with soaring valuations of premier growth companies. Once the market comes to terms with these two major issues, we believe market leadership will be regained by those companies delivering strong long-term growth. Past performance is no guarantee of future results. (1) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 43 Berger Funds 43 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Growth and Income Fund Comparison of Change in Value of Berger Growth and Income Fund vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 65.75% Five Year 31.36% Ten Year 21.90% Berger Growth and Income Fund $72,459 S&P 500 Index $56,104 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (76.69%) Auto Manufacturers - Foreign (1.07%) 69,100 Toyota Motor Corp. Sponsored ADR $ 7,186,400 Banks - Super Regional (3.94%) 140,430 Fifth Third Bancorp 8,847,090 151,800 Northern Trust Corp. 10,255,987 175,880 The Bank of New York Co., Inc. 7,310,012 ---------- 26,413,089 ---------- Chemicals - Basic (0.88%) 137,000 Akzo Nobel NV ADR 5,899,562 ---------- Commercial Services - Advertising (1.20%) 85,730 Omnicom Group 8,010,396 ---------- Computer - Local Networks (2.99%) 258,648 Cisco Systems, Inc.* 19,996,723 ---------- Computer - Manufacturers (2.01%) 143,832 Sun Microsystems, Inc.* 13,477,507 ----------
March 31, 2000 Shares Value - ------ -------------- Common Stock (76.69%) - continued Computer - Memory Devices (4.01%) 101,611 EMC Corp.* $12,701,375 170,876 Network Appliance, Inc.* 14,139,989 ----------- 26,841,364 ----------- Computer - Software (1.77%) 14,152 Oracle Corp. 11,851,903 ----------- Computer Software - Desktop (2.31%) 145,300 Microsoft Corp.* 15,438,125 ----------- Computer Software - Network (1.52%) 80,930 Nortel Networks Corp. 10,197,180 ----------- Electrical - Equipment (0.85%) 36,460 General Electric Co. 5,658,136 ----------- Electronic - Semiconductor Equipment (3.11%) 124,294 Applied Materials, Inc.* 11,714,709 15,120 Infineon Technologies - ADR 868,455 100,018 Teradyne, Inc. 8,226,480 ----------- 20,809,644 -----------
44 44 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Growth and Income Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Shares Value - ------ -------------- Common Stock (76.69%) - continued Electronic - Semiconductor Manufacturing (5.70%) 98,240 Applied Micro Circuits Corp. $14,742,140 102,163 Intel Corp. 13,476,130 53,226 STMicroelectronics NV* 9,963,241 ----------- 38,184,511 ----------- Finance - Investment Bankers (3.16%) 93,800 Morgan Stanley Dean Witter & Co. 7,650,562 162,140 Schwab (Charles) Corp. 9,211,578 41,100 The Goldman Sachs Group, Inc. 4,320,637 ----------- 21,182,777 ----------- Household - Audio/Video (2.75%) 65,850 Sony Corp.- Sponsored ADR 18,446,231 ----------- Internet - ISP/Content (0.29%) 11,982 Akamai Technologies, Inc.* 1,926,855 ----------- Internet - Network Security/Solutions (1.38%) 61,620 VeriSign, Inc.* 9,212,190 ----------- Leisure - Products (1.01%) 113,980 The Seagram Co. Ltd. 6,781,810 ----------- Media - Radio/TV (2.36%) 50,550 Hispanic Broadcasting Corp.* 5,724,787 310,660 Infinity Broadcasting Corp.* 10,057,617 ----------- 15,782,404 ----------- Medical - Biomed/Genetics (4.29%) 186,200 Amgen, Inc.* 11,428,025 113,980 Genentech, Inc.* 17,324,960 ----------- 28,752,985 ----------- Medical - Drug/Diversified (1.23%) 142,820 Bristol-Myers Squibb Co. 8,247,855 ----------- Medical - Ethical Drugs (1.49%) 186,380 American Home Products Corp. 9,994,627 ----------- Medical - Products (1.55%) 176,050 Guidant Corp.* 10,353,940 ----------- Oil & Gas - Drilling (2.00%) 371,590 ENSCO International, Inc. 13,423,688 ----------- Oil & Gas - Field Services (2.24%) 185,820 Halliburton Co. 7,618,620 96,060 Schlumberger Ltd. 7,348,590 ----------- 14,967,210 ----------- Oil & Gas - International Integrated (1.59%) 144,150 Total Fina SA - Sponsored ADR 10,613,043 -----------
March 31, 2000 Shares/Par Value Value - ---------------- -------------- Common Stock (76.69%) - continued Oil & Gas - Production/Pipeline (2.17%) 194,000 Enron Corp. $ 14,525,750 ------------ Retail - Apparel/Shoe (2.36%) 134,640 Intimate Brands, Inc. 5,520,240 206,660 The Gap, Inc. 10,294,251 ------------ 15,814,491 ------------ Retail - Major Discount Chains (1.06%) 135,400 Costco Wholesale Corp.* 7,116,962 ------------ Retail/Wholesale - Building Products (0.91%) 94,916 The Home Depot, Inc. 6,122,049 ------------ Retail/Wholesale - Computers (1.23%) 162,040 Tandy Corp. 8,223,530 ------------ Telecommunications - Equipment (9.40%) 1,720 Avanex Corp.* 261,010 109,109 Corning Inc. 21,167,201 108,881 Nokia Corp.- Sponsored ADR 23,654,397 64,498 QUALCOMM Inc.* 9,630,373 63,912 Sycamore Networks, Inc.* 8,244,648 ------------ 62,957,629 ------------ Telecommunications - Services (1.40%) 119,200 Nippon Telegraph & Telephone Corp. (NTT) 9,394,450 ------------ Transportation - Air Freight (0.22%) 23,700 United Parcel Service, Inc. 1,493,100 ------------ Utility - Telephone (1.22%) 129,800 ALLTEL Corp. 8,185,512 ------------ Total Common Stock (Cost $294,943,047) 513,483,628 ------------ Corporate Debt - Convertible (17.00%) Computer Software - Enterprise (3.11%) $ 3,348,000 Siebel Systems Inc.- 144A 5.50%, 9/15/2006 8,595,990 3,480,000 VERITAS Software Corp. 1.86%, 8/13/2006 12,240,900 ------------ 20,836,890 ------------ Electronic - Semiconductor Equipment (1.04%) 5,877,000 ASM Lithography Holding NV 4.25%, 1/30/2004 6,964,245 ------------ Electronic - Semiconductor Manufacturing (1.51%) 3,166,000 Conexant Systems, Inc.- 144A 4.25%, 5/1/2006 10,107,455 ------------
45 Berger Funds 45 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Par Value Value - --------- -------------- Corporate Debt - Convertible (17.00%) - continued Internet - ISP/Content (1.32%) $851,000 America Online, Inc. 4.00%, 1/15/2002 $ 8,853,591 ------------ Internet - Network Security/Solutions (2.41%) 8,973,000 Juniper Networks Inc. 4.75%, 3/15/2007 8,950,567 7,417,000 Redback Networks Inc. - 144A 5.00%, 4/1/2007 7,194,490 ------------ 16,145,057 ------------ Media - Cable TV (3.76%) 13,607,000 EchoStar Communications Corp. - Class A - 144A 4.88%, 1/1/2007 25,206,967 ------------ Media - Radio/TV (1.75%) 9,514,000 Clear Channel Communications, Inc. 2.62%, 4/1/2003 11,726,005 ------------ Telecommunications - Services (2.09%) *3,556,000 COLT Telecom Group PLC 2.20%, 3/29/2006 7,769,892 $3,663,000 Level Three Communications Inc. 6.00%, 9/15/2009 6,227,100 ------------ 13,996,992 ------------ Total Corporate Debt - Convertible (Cost $76,119,418) 113,837,202 ------------ Preferred Stock - Convertible (5.63%) Media - Cable TV (2.00%) 84,050 Houston Industries, Inc., 7.00%* 13,363,950 ------------ Telecommunications - Cellular (1.71%) 61,970 Omnipoint Corp.,- 144A, 7.00%* 11,479,961 ------------ Telecommunications - Services (1.92%) 164,500 Qwest Trends Trust - 144A, 5.75% 12,831,000 ------------ Total Preferred Stock - Convertible (Cost $23,429,895) 37,674,911 ------------
March 31, 2000 -------------- Par Value Value - --------- -------------- Repurchase Agreement (0.47%) $3,149,000 State Street Repurchase Agreement, 6.05% dated March 31, 2000 to be repurchased at $3,150,566 on April 3, 2000, collateralized by U.S. Treasury Note, 5.75% - June 30, 2001 with a value of $3,216,000 $ 3,149,000 ------------ Total Repurchase Agreement (Cost $3,149,000) 3,149,000 ------------ Total Investments (Cost $397,641,360) (99.79%) 668,144,741 Total Other Assets, Less Liabilities (0.21%) 1,414,244 ------------ Net Assets (100.00%) $669,558,985 ------------
* Non-income producing security. ADR - American Depositary Receipt. PLC - Public Limited Company. 144A - Resale is restricted to qualified institutional buyers. See notes to financial statements. 46 46 Berger Funds o March 31, 2000 Combined Semi-Annual Report Ticker Symbol BEBAX Fund Number 213 PORTFOLIO MANAGER COMMENTARY TINO R. SELLITTO Berger AMY K. SELNER Balanced Fund MARK S. SUNDERHUSE - -------------------------------------------------------------------------------- Performance The market performed very differently in the two quarters included in this reporting period. In the fourth quarter 1999, technology stocks surged impressively. The new year started with a precipitous sell off in growth stocks, followed by a recovery and then, beginning March 10, another strong sell off. Despite this high volatility, Berger Balanced Fund (the "Fund"), which invests in a balance of stocks and fixed income securities, gained 37.33% over the six-month period ended March 31, 2000. This was considerably higher than the 17.50% gain registered by its benchmark, the S&P 500 Index(1). This performance is attributable to two factors: (1) the Fund's equity-oriented asset allocation, and (2) our focus towards high quality, market leading, large cap growth companies. Period in Review As of March 31, the Fund's net assets were allocated as follows: 68% stocks, 28% fixed income and 4% cash. The stock side of the portfolio benefited greatly from the fourth quarter's strong technology sector. Many of our technology holdings had stand-out performances that quarter, including Oracle Corp., QUALCOMM, Lam Research, Yahoo! and Motorola. Performance was further enhanced in the first quarter 2000 by the dominant, large cap stocks we added to the portfolio at the beginning of the quarter, such as Intel, Corning, Qwest Communications and Charles Schwab. Charles Schwab rallied from its fourth quarter decline as investors focused on the company's rapid asset inflows and the increase in earnings and revenue estimates. The Fund also enjoyed good returns from some of its consumer holdings, which bounced back after a weak fourth quarter, particularly Best Buy and Nordstrom. On the downside, poor performers this reporting period included Alltel and Clear Channel Communications. We expect both of these stocks to perform well as their fundamentals play out over the next two to five years. Alltel, a telecommunications company with cellular operations, was hurt by investor concerns over industry-wide reductions in cellular phone roaming fees. Clear Channel was the victim of profit taking and short selling pressure after its recent acquisition of SFX. We are optimistic about this acquisition, however, and expect it to add to Clear Channel's growth rate over the next 24-36 months. On the fixed income side of the portfolio, we continue to favor the high-quality bonds that help protect the Fund in a volatile market. We continue our short duration posture, although we have slightly extended the average maturity of our holdings to almost four years to take advantage of pricing opportunities. Looking Ahead We look for continued volatility in the second quarter as the market digests more potential rate increases by the Federal Reserve Board and tries to cope with soaring valuations of premier growth companies. Once the market has come to terms with these two major issues, we believe market leadership will be regained by those companies that deliver strong long-term growth. Past performance is no guarantee of future results. (1) The S&P 500 Index is an unmanaged index, with dividends reinvested, which consists of the common stocks of 500 publicly traded U.S. companies. It is a generally recognized indicator used to measure overall performance of the U.S. stock market. One cannot invest directly in an index. 47 Berger Funds 47 Berger Funds o March 31, 2000 Combined Semi-Annual Report PERFORMANCE OVERVIEW - -------------------------------------------------------------------------------- Berger Balanced Fund Comparison of Change in Value of Berger Balanced Fund vs. S&P 500 Index AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2000 One Year 50.74% Life of Fund (9/30/97) 55.21% Berger Balanced Fund $30,014 S&P 500 Index $16,376 [GRAPH] Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Life of Fund performance includes returns for the last quarter of 1997, which reflect a higher-than-normal level of trading activity undertaken to pursue equity opportunities available as the Advisor was beginning to implement the Fund's long-term approach to equity management. IPO's have made a significant contribution to the Fund's recent performance. There can be no assurance that such contribution will continue. Recent market volatility has significantly impacted performance. Please contact us for updated performance information. - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (67.59%) Banks - Money Center (1.60%) 50,490 Citigroup Inc. $2,994,688 ---------- Banks - Super Regional (1.04%) 47,900 Wells Fargo Co. 1,960,906 ---------- Computer - Local Networks (1.52%) 36,800 Cisco Systems, Inc.* 2,845,100 ---------- Computer Software - Desktop (2.94%) 51,960 Microsoft Corp.* 5,520,750 ---------- Computer Software - Enterprise (3.50%) 53,400 Oracle Corp.* 4,168,537 40,000 SAP AG - Sponsored ADR 2,390,000 ---------- 6,558,537 ---------- Electrical - Equipment (2.57%) 31,050 General Electric Co. 4,818,571 ----------
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (67.59%) - continued Electrical - Military Systems (1.86%) 28,000 General Motors Corp.- Class H* $3,486,000 ---------- Electronic - Semiconductor Equipment (4.34%) 47,240 Applied Materials, Inc.* 4,452,370 13,080 ASM Lithography Holding NV* 1,461,690 49,560 Lam Research Corp.* 2,233,297 ---------- 8,147,357 ---------- Electronic - Semiconductor Manufacturing (4.77%) 38,900 Intel Corp. 5,132,368 23,800 Texas Instruments Inc. 3,808,000 ---------- 8,940,368 ---------- Finance - Investment Bankers (2.76%) 59,470 Schwab (Charles) Corp. 3,378,639 22,000 Morgan Stanley Dean Witter & Co. 1,794,375 ---------- 5,173,014 ----------
48 48 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger Balanced Fund - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares Value - ------ -------------- Common Stock (67.59%) - continued Household - Audio/Video (1.45%) 9,680 Sony Corp. - Sponsored ADR $ 2,711,610 -------------- Internet - ISP/Content (1.75%) 26,800 America Online, Inc.* 1,802,300 8,600 Yahoo!, Inc.* 1,473,825 -------------- 3,276,125 -------------- Internet - Network Security/Solutions (0.94%) 6,670 Juniper Networks, Inc.* 1,757,961 -------------- Internet - Software (1.41%) 12,600 Ariba, Inc.* 2,641,275 -------------- Leisure - Products (1.71%) 53,990 The Seagram Co. Ltd. 3,212,414 -------------- Media - Radio/TV (1.36%) 36,850 Clear Channel Communications, Inc.* 2,544,953 -------------- Medical - Biomed/Genetics (2.39%) 29,830 Amgen, Inc.* 1,830,816 17,440 Genentech, Inc.* 2,650,880 -------------- 4,481,696 -------------- Medical - Drug/Diversified (1.59%) 51,690 Bristol-Myers Squibb Co. 2,985,097 -------------- Medical - Ethical Drugs (2.31%) 42,320 American Home Products Corp. 2,269,410 34,780 Pharmacia & Upjohn, Inc. 2,060,715 -------------- 4,330,125 -------------- Medical - Products (0.82%) 26,000 Guidant Corp.* 1,529,125 -------------- Oil & Gas - Drilling (1.22%) 44,750 Transocean Sedco Forex Inc. 2,296,234 -------------- Oil & Gas - Field Services (0.91%) 41,790 Halliburton Co. 1,713,390 -------------- Oil & Gas - International Integrated (1.31%) 33,340 Total Fina SA - Sponsored ADR 2,454,657 -------------- Oil & Gas - Machinery/Equipment (0.89%) 25,000 Cooper Cameron Corp.* 1,671,875 -------------- Oil & Gas - Production/Pipeline (2.48%) 62,190 Enron Corp. 4,656,476 --------------
March 31, 2000 -------------- Shares/Par Value Value - ---------------- -------------- Common Stock (67.59%) - continued Retail - Apparel/Shoe (1.92%) 57,000 Nordstrom, Inc. $ 1,681,500 38,500 The Gap, Inc. 1,917,781 ------------ 3,599,281 ------------ Retail - Consumer Electronics (1.94%) 42,360 Best Buy Co., Inc.* 3,642,960 ------------ Retail - Drug Stores (0.93%) 67,800 Walgreen Co. 1,745,850 ------------ Retail - Super/Mini-Markets (1.27%) 52,610 Safeway, Inc.* 2,380,602 ------------ Telecommunications - Equipment (7.45%) 19,710 Corning Inc. 3,823,740 19,630 Motorola, Inc. 2,794,821 9,020 Nokia Corp. - Sponsored ADR 1,959,595 15,600 QUALCOMM Inc.* 2,329,275 23,802 Sycamore Networks, Inc.* 3,070,458 ------------ 13,977,889 ------------ Telecommunications - Services (3.03%) 75,640 Qwest Communications International, Inc.* 3,668,540 30,400 Sonera Corp. - Sponsored ADR 2,017,800 ------------ 5,686,340 ------------ Transportation - Air Freight (0.26%) 7,700 United Parcel Service, Inc. 485,100 ------------ Utility - Telephone (1.35%) 40,000 ALLTEL Corp. 2,522,500 ------------ Total Common Stock (Cost $87,197,930) 126,748,826 ------------ Corporate Debt - Non-Convertible (9.83%) Banks - Foreign (0.84%) $ 1,600,000 Barclays Bank PLC - 5.95%, 7/15/2001 1,570,168 ------------ Computer - Manufacturers (1.01%) 2,000,000 IBM Corp. - 5.63%, 4/12/2004 1,891,274 ------------ Finance - Consumer/Commercial Loans (3.62%) 2,000,000 Boeing Capital Corp. - 6.21%, 8/15/2003 1,923,827 2,000,000 Ford Motor Credit Co. - 6.13%, 4/28/2003 1,927,652 2,000,000 General Electric Capital Corp. - 5.89%, 5/11/2001 1,977,944 1,000,000 General Motors Acceptance Corp. - 5.60%, 4/30/2002 964,850 ------------ 6,794,273 ------------
49 Berger Funds 49 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Shares/Par Value Value - ---------------- -------------- Corporate Debt - Non-Convertible (9.83%) - continued Finance - Investment Bankers (1.33%) $1,045,000 Bear Stearns Co. Inc. - 6.50%, 8/1/2002 $ 1,023,005 1,000,000 Merrill Lynch & Co. - 5.71%, 1/15/2002 973,102 500,000 Merrill Lynch & Co. - 6.02%, 5/11/2001 494,162 ------------ 2,490,269 ------------ Finance - Investment Management (1.08%) 2,000,000 Morgan Stanley Dean Witter & Co. - 8.10%, 6/24/2002 2,027,916 ------------ Insurance - Diversified (0.66%) 1,275,000 Transamerica Financial Corp. - 6.13%, 11/1/2001 1,248,175 ------------ Medical - Drug/Diversified (1.03%) 2,000,000 Warner-Lambert Co. - 5.75%, 1/15/2003 1,929,010 ------------ Retail - Super/Mini-Markets (0.26%) 500,000 Albertson's Inc. - 6.55%, 8/1/2004 483,228 ------------ Total Corporate Debt - Non-Convertible (Cost $19,113,542) 18,434,313 ------------ Preferred Stock - Convertible (0.21%) Utility - Electric Power (0.21%) 10,200 Texas Utilities Co., 9.25% 402,262 ------------ Total Preferred Stock - Convertible (Cost $510,000) 402,262 ------------ U.S. Government Agency Obligations (14.64%) $15,000,000 FHLMC Discount Note - 6.25%, 7/15/2004 14,547,795 5,000,000 FNMA Discount Note - 5.75%, 4/15/2003 4,822,585 8,000,000 FNMA Discount Note - 7.40%, 7/1/2004 8,093,520 ------------ Total U.S. Government Agency Obligations (Cost $27,351,714) 27,463,900 ------------
March 31, 2000 -------------- Par Value Value - --------- -------------- U.S. Treasury Notes (3.09%) $2,000,000 U.S. Treasury Note - 4.25%, 11/15/2003 $ 1,865,626 4,000,000 U.S. Treasury Note - 5.75%, 8/15/2003 3,923,752 -------------- Total U.S. Treasury Notes (Cost $5,815,673) 5,789,378 -------------- Repurchase Agreement (3.78%) 7,086,000 State Street Repurchase Agreement, 6.05% dated March 31, 2000 to be repurchased at $7,089,524 on April 3, 2000, collateralized by FNMA Agency Note, 6.40% - December 21, 2001 with a value of $7,231,805 7,086,000 -------------- Total Repurchase Agreement (Cost $7,086,000) 7,086,000 -------------- Total Investments (Cost $147,074,859) (99.14%) 185,924,679 Total Other Assets, Less Liabilities (0.86%) 1,621,049 -------------- Net Assets (100.00%) $ 187,545,728 --------------
* Non-income producing security. ADR - American Depositary Receipt. FHLMC - Federal Home Loan Mortgage Corp. FNMA - Federal National Mortgage Association. See notes to financial statements. 50 50 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Statements - -------------------------------------------------------------------------------- Statements of Assets and Liabilities
Berger Berger Information New Generation Berger March 31,2000 (Unaudited) Technology Fund Fund Select Fund - ------------------------- --------------- --------------- --------------- Assets Investments, at cost $ 83,408,454 $ 626,041,688 $ 103,984,820 --------------- --------------- --------------- Investments, at value $ 131,141,683 $ 920,622,559 $ 160,434,515 Cash 79,354 679,128 138 Foreign Cash (cost:$68,329) -- -- -- Receivables Investment securities sold 1,756,242 14,890,558 4,433,704 Fund shares sold 1,517,400 17,854,394 291,536 Dividends 11,329 30,086 4,208 Interest 484 -- 310 Investment held as collateral for securities loaned 39,744,569 214,030,614 78,748,257 Deferred organization costs 7,468 -- -- Other assets 7,583 -- -- --------------- --------------- --------------- Total Assets 174,266,112 1,168,107,339 243,912,668 --------------- --------------- --------------- Liabilities Payables Investment securities purchased 852,913 7,112,440 -- Fund shares redeemed 1,216,842 2,705,073 285,836 Loan payable to Banks -- -- -- Interest -- -- -- Collateral on securities loaned 39,744,569 214,030,614 78,748,257 Accrued investment advisory fees 108,204 717,278 116,899 Accrued custodian and accounting fees 11,145 34,036 7,880 Accrued transfer agent fees 16,816 130,862 33,343 Accrued 12b-1 fees 14,141 192,776 38,966 Accrued audit fees 8,570 9,329 6,504 Accrued shareholder reporting fees 416 53,651 2,116 Other accrued expenses 3,526 34,840 -- --------------- --------------- --------------- Total Liabilities 41,977,142 225,020,899 79,239,801 --------------- --------------- --------------- Net Assets Applicable to Shares Outstanding $ 132,288,970 $ 943,086,440 $ 164,672,867 --------------- --------------- --------------- Components of Net Assets Capital (par value and paid in surplus) $ 81,714,681 $ 551,680,486 $ 87,206,308 Undistributed net investment income/(Accumulated net investment loss) (407,137) (3,804,227) (923,314) Undistributed net realized gain on securities 3,248,197 100,629,310 21,940,178 Net unrealized appreciation of securities and foreign currency transactions 47,733,229 294,580,871 56,449,695 --------------- --------------- --------------- $ 132,288,970 $ 943,086,440 $ 164,672,867 --------------- --------------- --------------- Shares Outstanding 1,012,501 22,549,888 6,023,332 --------------- --------------- --------------- Shares Authorized (par value $0.01) Unlimited Unlimited Unlimited --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share N/A N/A $ 27.34 --------------- --------------- --------------- Net Assets: Investor Shares $ 64,242,600 $ 938,680,890 N/A --------------- --------------- --------------- Institutional Shares $ 68,046,370 $ 4,405,550 N/A --------------- --------------- --------------- Shares Outstanding: Investor Shares 492,206 22,443,498 N/A --------------- --------------- --------------- Institutional Shares 520,295 106,390 N/A --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share: Investor Shares $ 130.52 $ 41.82 N/A --------------- --------------- --------------- Institutional Shares $ 130.78 $ 41.41 N/A --------------- --------------- ---------------
See notes to financial statements. 51 Financial Statements 51 Berger Funds o March 31, 2000 Combined Semi-Annual Report - --------------------------------------------------------------------------------
Berger Berger Berger Small Company Small Cap Mid Cap March 31,2000 (Unaudited) Growth Fund Value Fund Growth Fund - ------------------------- --------------- --------------- --------------- Assets Investments, at cost $ 1,033,195,945 $ 1,205,825,513 $ 97,867,337 --------------- --------------- --------------- Investments, at value $ 1,509,711,324 $ 1,245,348,308 $ 128,113,985 Cash 2,808,022 1,036,289 -- Foreign Cash (cost:$68,329) -- -- -- Receivables Investment securities sold 25,757,632 3,780,899 2,184,812 Fund shares sold 14,144,497 10,445,602 1,420,490 Dividends -- 1,012,106 -- Interest -- 9,076 -- Investment held as collateral for securities loaned 221,076,125 -- 49,919,498 Deferred organization costs -- -- -- Other assets -- -- -- --------------- --------------- --------------- Total Assets 1,773,497,600 1,261,632,280 181,638,785 --------------- --------------- --------------- Liabilities Payables Investment securities purchased 21,266,655 23,942,239 -- Fund shares redeemed 3,375,486 1,699,840 240,639 Loan payable to Banks 12,000,000 -- 2,035,291 Interest 2,271 -- -- Collateral on securities loaned 221,076,125 -- 49,919,498 Accrued investment advisory fees 1,138,186 786,037 91,312 Accrued custodian and accounting fees 62,701 43,985 7,834 Accrued transfer agent fees 412,007 89,240 15,695 Accrued 12b-1 fees 357,774 113,238 30,437 Accrued audit fees 11,335 9,642 6,597 Accrued shareholder reporting fees 281,135 -- 551 Other accrued expenses -- 4,765 -- --------------- --------------- --------------- Total Liabilities 259,983,675 26,688,986 52,347,854 --------------- --------------- --------------- Net Assets Applicable to Shares Outstanding $ 1,513,513,925 $ 1,234,943,294 $ 129,290,931 --------------- --------------- --------------- Components of Net Assets Capital (par value and paid in surplus) $ 738,450,985 $ 1,117,062,209 $ 89,889,322 Undistributed net investment income/(Accumulated net investment loss) (5,722,424) 4,814,765 (340,949) Undistributed net realized gain on securities 304,269,985 73,543,525 9,495,914 Net unrealized appreciation of securities and foreign currency transactions 476,515,379 39,522,795 30,246,644 --------------- --------------- --------------- $ 1,513,513,925 $ 1,234,943,294 $ 129,290,931 --------------- --------------- --------------- Shares Outstanding 196,491,654 54,971,759 3,158,724 --------------- --------------- --------------- Shares Authorized (par value $0.01) Unlimited Unlimited Unlimited --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share N/A N/A $ 40.93 --------------- --------------- --------------- Net Assets: Investor Shares $ 1,511,595,038 $ 583,615,692 N/A --------------- --------------- --------------- Institutional Shares $ 1,918,887 $ 651,327,602 N/A --------------- --------------- --------------- Shares Outstanding: Investor Shares 196,239,196 26,012,489 N/A --------------- --------------- --------------- Institutional Shares 252,458 28,959,270 N/A --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share: Investor Shares $ 7.70 $ 22.44 N/A --------------- --------------- --------------- Institutional Shares $ 7.60 $ 22.49 N/A --------------- --------------- ---------------
Berger Berger Mid Cap Berger Growth and March 31,2000 (Unaudited) Value Fund Growth Fund Income Fund - ------------------------- --------------- --------------- --------------- Assets Investments, at cost $ 20,240,700 $ 1,312,224,191 $ 397,641,360 --------------- --------------- --------------- Investments, at value $ 24,448,206 $ 2,097,309,351 $ 668,144,741 Cash 635 744 801,213 Foreign Cash (cost:$68,329) -- -- 68,022 Receivables Investment securities sold 207,779 -- -- Fund shares sold 235,406 650,158 1,781,900 Dividends 48,293 390,280 372,661 Interest 15 591 542,693 Investment held as collateral for securities loaned 6,836,223 -- Deferred organization costs -- -- -- Other assets -- -- -- --------------- --------------- --------------- Total Assets 31,776,557 2,098,351,124 671,711,230 --------------- --------------- --------------- Liabilities Payables Investment securities purchased 259,971 -- 800,914 Fund shares redeemed 6,835 917,547 560,997 Loan payable to Banks -- -- -- Interest -- -- -- Collateral on securities loaned 6,836,223 -- -- Accrued investment advisory fees 14,950 1,251,668 420,160 Accrued custodian and accounting fees 5,391 83,872 23,191 Accrued transfer agent fees 13,074 676,939 175,279 Accrued 12b-1 fees 4,983 456,911 142,474 Accrued audit fees 6,714 16,882 11,335 Accrued shareholder reporting fees 830 71,969 17,895 Other accrued expenses -- -- -- --------------- --------------- --------------- Total Liabilities 7,148,971 3,475,788 2,152,245 --------------- --------------- --------------- Net Assets Applicable to Shares Outstanding $ 24,627,586 $ 2,094,875,336 $ 669,558,985 --------------- --------------- --------------- Components of Net Assets Capital (par value and paid in surplus) $ 17,647,814 $ 1,086,371,214 $ 356,570,098 Undistributed net investment income/(Accumulated net investment loss) 56,657 (7,349,476) (957,324) Undistributed net realized gain on securities 2,715,607 230,768,245 43,443,136 Net unrealized appreciation of securities and foreign currency transactions 4,207,508 785,085,353 270,503,075 --------------- --------------- --------------- $ 24,627,586 $ 2,094,875,336 $ 669,558,985 --------------- --------------- --------------- Shares Outstanding 1,802,082 95,066,498 30,125,948 --------------- --------------- --------------- Shares Authorized (par value $0.01) Unlimited 200,000,000 100,000,000 --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share $ 13.67 $ 22.04 $ 22.23 --------------- --------------- --------------- Net Assets: Investor Shares N/A N/A N/A --------------- --------------- --------------- Institutional Shares N/A N/A N/A --------------- --------------- --------------- Shares Outstanding: Investor Shares N/A N/A N/A --------------- --------------- --------------- Institutional Shares N/A N/A N/A --------------- --------------- --------------- Net Asset Value, Offering and Redemption Price Per Share: Investor Shares N/A N/A N/A --------------- --------------- --------------- Institutional Shares N/A N/A N/A --------------- --------------- ---------------
Berger Balanced March 31,2000 (Unaudited) Fund - ------------------------- --------------- Assets Investments, at cost $ 147,074,859 --------------- Investments, at value $ 185,924,679 Cash 1,889 Foreign Cash (cost:$68,329) -- Receivables Investment securities sold -- Fund shares sold 968,091 Dividends 44,762 Interest 845,368 Investment held as collateral for securities loaned 29,951,121 Deferred organization costs -- Other assets -- --------------- Total Assets 217,735,910 --------------- Liabilities Payables Investment securities purchased -- Fund shares redeemed 46,173 Loan payable to Banks -- Interest -- Collateral on securities loaned 29,951,121 Accrued investment advisory fees 106,367 Accrued custodian and accounting fees 8,026 Accrued transfer agent fees 30,776 Accrued 12b-1 fees 37,988 Accrued audit fees 7,598 Accrued shareholder reporting fees 2,133 Other accrued expenses -- --------------- Total Liabilities 30,190,182 --------------- Net Assets Applicable to Shares Outstanding $ 187,545,728 --------------- Components of Net Assets Capital (par value and paid in surplus) $ 136,177,410 Undistributed net investment income/(Accumulated net investment loss) 116,008 Undistributed net realized gain on securities 12,402,490 Net unrealized appreciation of securities and foreign currency transactions 38,849,820 --------------- $ 187,545,728 --------------- Shares Outstanding 9,091,191 --------------- Shares Authorized (par value $0.01) Unlimited --------------- Net Asset Value, Offering and Redemption Price Per Share $ 20.63 --------------- Net Assets: Investor Shares N/A --------------- Institutional Shares N/A --------------- Shares Outstanding: Investor Shares N/A --------------- Institutional Shares N/A --------------- Net Asset Value, Offering and Redemption Price Per Share: Investor Shares N/A --------------- Institutional Shares N/A ---------------
52 52 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Statements - -------------------------------------------------------------------------------- Statements of Operations
Berger Berger Information New Generation Berger For the Six Months Ended March 31,2000 (Unaudited) Technology Fund Fund Select Fund --------------- --------------- --------------- Investment Income Income Dividends $ 24,807 $ 114,790 $ 35,217 Interest 70,463 167,794 216,802 Securities lending income 13,719 135,742 17,565 --------------- --------------- --------------- Total Income 108,989 418,326 269,584 --------------- --------------- --------------- Expenses Investment advisory fees 340,068 2,744,688 550,793 Accounting fees 11,830 47,016 10,226 Custodian fees 11,619 25,332 1,167 Transfer agent fees 44,290 339,344 77,258 Registration fees 39,234 82,286 39,165 12b-1 fees (Investor Shares or single-class funds only) 36,118 816,389 183,597 Audit fees 7,185 7,944 5,119 Legal fees 758 7,365 2,031 Directors'/Trustees' fees and expenses 1,568 14,731 3,655 Shareholder reporting fees 22,089 117,724 25,130 Amortization of deferred organization costs 1,856 -- -- Interest expense -- 7,693 2,433 Other expenses 895 4,096 3,717 --------------- --------------- --------------- Gross Expenses 517,510 4,214,608 904,291 Less fees paid indirectly -- (1,575) (12,097) Less earnings credits (1,384) (7,940) (2,066) --------------- --------------- --------------- Net Expenses 516,126 4,205,093 890,128 --------------- --------------- --------------- Net Investment Income (Loss) (407,137) (3,786,767) (620,544) --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain on securities and foreign currency transactions 3,344,677 105,025,417 21,807,335 Net change in unrealized appreciation on securities and foreign currency transactions 39,960,478 221,996,546 48,218,228 --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments 43,305,155 327,021,963 70,025,563 --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 42,898,018 $ 323,235,196 $ 69,405,019 --------------- --------------- ---------------
See notes to financial statements. 53 Financial Statements 53 Berger Funds o March 31, 2000 Combined Semi-Annual Report - --------------------------------------------------------------------------------
Berger Berger Berger Small Company Small Cap Mid Cap For the Six Months Ended March 31,2000 (Unaudited) Growth Fund Value Fund Growth Fund --------------- --------------- --------------- Investment Income Income Dividends $ 81,932 $ 11,463,788 $ 18,432 Interest 1,579,659 1,540,506 150,852 Securities lending income 137,743 -- 13,470 --------------- --------------- --------------- Total Income 1,799,334 13,004,294 182,754 --------------- --------------- --------------- Expenses Investment advisory fees 4,667,108 3,979,784 305,801 Accounting fees 66,953 64,682 7,471 Custodian fees 40,917 43,788 9,031 Transfer agent fees 767,317 225,409 44,337 Registration fees 69,686 212,602 34,156 12b-1 fees (Investor Shares or single-class funds only) 1,429,400 565,407 101,934 Audit fees 9,950 8,257 5,212 Legal fees 14,095 15,683 771 Directors'/Trustees' fees and expenses 26,307 26,153 1,747 Shareholder reporting fees 330,797 75,116 13,268 Amortization of deferred organization costs -- -- -- Interest expense 12,398 10,861 -- Other expenses 14,401 8,863 576 --------------- --------------- --------------- Gross Expenses 7,449,329 5,236,605 524,304 Less fees paid indirectly -- -- -- Less earnings credits (11,662) (12,761) (1,006) --------------- --------------- --------------- Net Expenses 7,437,667 5,223,844 523,298 --------------- --------------- --------------- Net Investment Income (Loss) (5,638,333) 7,780,450 (340,544) --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain on securities and foreign currency transactions 318,867,140 73,393,905 9,725,428 Net change in unrealized appreciation on securities and foreign currency transactions 329,803,935 19,515,894 26,520,866 --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments 648,671,075 92,909,799 36,246,294 --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 643,032,742 $ 100,690,249 $ 35,905,750 --------------- --------------- ---------------
Berger Berger Mid Cap Berger Growth and For the Six Months Ended March 31,2000 (Unaudited) Value Fund Growth Fund Income Fund --------------- --------------- --------------- Investment Income Income Dividends $ 253,302 $ 2,067,487 $ 1,455,930 Interest 6,753 509,991 766,756 Securities lending income 1,126 -- -- --------------- --------------- --------------- Total Income 261,181 2,577,478 2,222,686 --------------- --------------- --------------- Expenses Investment advisory fees 87,514 6,075,710 1,981,913 Accounting fees 5,549 80,962 29,210 Custodian fees 9,962 47,868 16,950 Transfer agent fees 32,941 993,845 286,999 Registration fees 14,935 28,796 40,941 12b-1 fees (Investor Shares or single-class funds only) 29,172 2,192,185 663,061 Audit fees 5,329 15,464 9,950 Legal fees 375 24,777 7,873 Directors'/Trustees' fees and expenses 656 45,347 13,535 Shareholder reporting fees 8,761 156,799 63,380 Amortization of deferred organization costs -- -- -- Interest expense -- 9,399 3,479 Other expenses 925 54,934 14,489 --------------- --------------- --------------- Gross Expenses 196,119 9,726,086 3,131,780 Less fees paid indirectly -- (26,357) (7,151) Less earnings credits (1,207) (14,747) (9,051) --------------- --------------- --------------- Net Expenses 194,912 9,684,982 3,115,578 --------------- --------------- --------------- Net Investment Income (Loss) 66,269 (7,107,504) (892,892) --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain on securities and foreign currency transactions 2,848,481 235,906,336 45,408,585 Net change in unrealized appreciation on securities and foreign currency transactions 2,097,410 665,499,190 200,123,566 --------------- --------------- --------------- Net Realized and Unrealized Gain on Investments 4,945,891 901,405,526 245,532,151 --------------- --------------- --------------- Net Increase in Net Assets Resulting from Operations $ 5,012,160 $ 894,298,022 $ 244,639,259 --------------- --------------- ---------------
Berger Balanced For the Six Months Ended March 31,2000 (Unaudited) Fund --------------- Investment Income Income Dividends $ 267,445 Interest 1,507,300 Securities lending income 10,405 --------------- Total Income 1,785,150 --------------- Expenses Investment advisory fees 527,686 Accounting fees 10,945 Custodian fees 3,665 Transfer agent fees 75,344 Registration fees 29,424 12b-1 fees (Investor Shares or single-class funds only) 188,460 Audit fees 6,213 Legal fees 2,178 Directors'/Trustees' fees and expenses 4,056 Shareholder reporting fees 24,354 Amortization of deferred organization costs -- Interest expense -- Other expenses 3,650 --------------- Gross Expenses 875,975 Less fees paid indirectly (6,318) Less earnings credits (3,011) --------------- Net Expenses 866,646 --------------- Net Investment Income (Loss) 918,504 --------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain on securities and foreign currency transactions 13,353,576 Net change in unrealized appreciation on securities and foreign currency transactions 32,146,206 --------------- Net Realized and Unrealized Gain on Investments 45,499,782 --------------- Net Increase in Net Assets Resulting from Operations $ 46,418,286 ---------------
54 54 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Statements - -------------------------------------------------------------------------------- Statements of Changes in Net Assets
Berger Information Technology Fund --------------------------------------------------------- Six Months Ended Period from Year Ended March 31,2000 March 1,1999 to February 28, (Unaudited) September 30,1999 1999 ----------------- ----------------- ----------------- From Operations Net investment income (loss) $ (407,137) $ (131,128) $ (85,891) Net realized gain on securities and foreign currency transactions 3,344,677 388,198 123,091 Net realized gain on futures contracts -- -- -- Net realized gain on distributions from investment companies -- -- -- Net change in unrealized appreciation on securities and foreign currency transactions 39,960,478 4,446,738 2,901,441 ----------------- ----------------- ----------------- Net Increase in Net Assets Resulting from Operations 42,898,018 4,703,808 2,938,641 ----------------- ----------------- ----------------- From Dividends and Distributions to Shareholders Dividends from net investment income: Investor Shares and single-class Funds only -- -- -- Institutional Shares -- -- -- Distributions in excess of net investment income: Investor Shares and single-class Funds only -- -- -- Distributions from net realized gains on investments: Investor Shares and single-class Funds only (72,711) -- -- Institutional Shares (153,075) (240,971) -- ----------------- ----------------- ----------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (225,786) (240,971) -- ----------------- ----------------- ----------------- From Fund Share Transactions Proceeds from shares sold 93,070,851 9,473,739 8,406,475 Net asset value of shares issued in reinvestment of dividends and distributions 225,245 240,876 -- Payments for shares redeemed (28,584,126) (1,718,686) (1,572,857) ----------------- ----------------- ----------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 64,711,970 7,995,929 6,833,618 ----------------- ----------------- ----------------- Net Increase in Net Assets 107,384,202 12,458,766 9,772,259 Net Assets Beginning of period 24,904,768 12,446,002 2,673,743 ----------------- ----------------- ----------------- End of period $ 132,288,970 $ 24,904,768 $ 12,446,002 ----------------- ----------------- ----------------- Undistributed net investment income/(Accumulated net investment loss) $ (407,137) -- -- ----------------- ----------------- ----------------- Transactions in Fund Shares (Note 5) Shares sold 830,809 182,321 233,427 Shares issued to shareholders in reinvestment of dividends and distributions 2,036 4,504 -- Shares redeemed (253,700) (34,016) (41,565) ----------------- ----------------- ----------------- Net Increase (Decrease) in Shares 579,145 152,809 191,862 Shares outstanding, beginning of period 433,356 280,547 88,685 ----------------- ----------------- ----------------- Shares outstanding, end of period 1,012,501 433,356 280,547 ----------------- ----------------- -----------------
See notes to financial statements. 55 Financial Statements 55 Berger Funds o March 31, 2000 Combined Semi-Annual Report - --------------------------------------------------------------------------------
Berger New Generation Berger Fund Select Fund ----------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended March 31, 2000 September 30, March 31, 2000 September 30, (Unaudited) 1999 (Unaudited) 1999 ---------------- ---------------- ---------------- ---------------- From Operations Net investment income (loss) $ (3,786,767) $ (2,457,353) $ (620,544) $ 267,758 Net realized gain on securities and foreign currency transactions 105,025,417 70,131,198 21,807,335 26,109,272 Net realized gain on futures contracts -- -- -- 613,845 Net realized gain on distributions from investment companies -- -- -- -- Net change in unrealized appreciation on securities and foreign currency transactions 221,996,546 62,553,374 48,218,228 8,283,724 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets Resulting from Operations 323,235,196 130,227,219 69,405,019 35,274,599 ---------------- ---------------- ---------------- ---------------- From Dividends and Distributions to Shareholders Dividends from net investment income: Investor Shares and single-class Funds only -- -- -- (267,759) Institutional Shares -- -- -- -- Distributions in excess of net investment income: Investor Shares and single-class Funds only -- -- (416,086) (102,138) Distributions from net realized gains on investments: Investor Shares and single-class Funds only (71,662,846) (4,495,277) (24,133,140) (4,692,942) Institutional Shares (146,231) -- -- -- ---------------- ---------------- ---------------- ---------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (71,809,077) (4,495,277) (24,549,226) (5,062,839) ---------------- ---------------- ---------------- ---------------- From Fund Share Transactions Proceeds from shares sold 595,534,395 266,445,474 41,846,833 135,890,110 Net asset value of shares issued in reinvestment of dividends and distributions 67,719,663 4,318,823 23,771,946 4,474,373 Payments for shares redeemed (302,878,397) (178,904,170) (47,153,364) (110,795,590) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 360,375,661 91,860,127 18,465,415 29,568,893 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets 611,801,780 217,592,069 63,321,208 59,780,653 Net Assets Beginning of period 331,284,660 113,692,591 101,351,659 41,571,006 ---------------- ---------------- ---------------- ---------------- End of period $ 943,086,440 $ 331,284,660 $ 164,672,867 $ 101,351,659 ---------------- ---------------- ---------------- ---------------- Undistributed net investment income/(Accumulated net investment loss) $ (3,804,227) $ (17,460) $ (923,314) $ 113,316 ---------------- ---------------- ---------------- ---------------- Transactions in Fund Shares (Note 5) Shares sold 15,801,134 12,508,663 1,617,650 8,477,635 Shares issued to shareholders in reinvestment of dividends and distributions 1,991,178 305,888 969,493 290,230 Shares redeemed (8,096,140) (8,938,999) (1,850,292) (6,617,655) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Shares 9,696,172 3,875,552 736,851 2,150,210 Shares outstanding, beginning of period 12,853,716 8,978,164 5,286,481 3,136,271 ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period 22,549,888 12,853,716 6,023,332 5,286,481 ---------------- ---------------- ---------------- ----------------
Berger Berger Small Company Small Cap Growth Fund Value Fund ----------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended March 31, 2000 September 30, March 31, 2000 September 30, (Unaudited) 1999 (Unaudited) 1999 ---------------- ---------------- ---------------- ---------------- From Operations Net investment income (loss) $ (5,638,333) $ (7,513,231) $ 7,780,450 $ 6,803,460 Net realized gain on securities and foreign currency transactions 318,867,140 189,375,085 73,393,905 11,471,038 Net realized gain on futures contracts -- -- -- -- Net realized gain on distributions from investment companies -- -- -- 557,430 Net change in unrealized appreciation on securities and foreign currency transactions 329,803,935 119,733,366 19,515,894 42,568,780 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets Resulting from Operations 643,032,742 301,595,220 100,690,249 61,400,708 ---------------- ---------------- ---------------- ---------------- From Dividends and Distributions to Shareholders Dividends from net investment income: Investor Shares and single-class Funds only -- -- (4,123,328) (554,980) Institutional Shares -- -- (5,601,904) (1,033,592) Distributions in excess of net investment income: Investor Shares and single-class Funds only -- -- -- -- Distributions from net realized gains on investments: Investor Shares and single-class Funds only (193,042,529) (105,864,218) (4,761,730) (6,307,111) Institutional Shares (107,996) -- (5,368,562) (4,874,484) ---------------- ---------------- ---------------- ---------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (193,150,525) (105,864,218) (19,855,524) (12,770,167) ---------------- ---------------- ---------------- ---------------- From Fund Share Transactions Proceeds from shares sold 544,418,020 237,959,062 566,150,606 740,240,947 Net asset value of shares issued in reinvestment of dividends and distributions 188,999,144 102,148,841 15,420,635 9,947,049 Payments for shares redeemed (345,422,446) (421,943,412) (215,872,376) (211,660,639) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 387,994,718 (81,835,509) 365,698,865 538,527,357 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets 837,876,935 113,895,493 446,533,590 587,157,898 Net Assets Beginning of period 675,636,990 561,741,497 788,409,704 201,251,806 ---------------- ---------------- ---------------- ---------------- End of period $ 1,513,513,925 $ 675,636,990 $ 1,234,943,294 $ 788,409,704 ---------------- ---------------- ---------------- ---------------- Undistributed net investment income/(Accumulated net investment loss) $ (5,722,424) $ (84,091) $ 4,814,765 $ 6,759,547 ---------------- ---------------- ---------------- ---------------- Transactions in Fund Shares (Note 5) Shares sold 76,057,429 59,395,752 26,880,489 36,191,725 Shares issued to shareholders in reinvestment of dividends and distributions 30,337,087 30,583,466 735,730 532,011 Shares redeemed (48,906,792) (106,782,836) (10,241,364) (10,560,918) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Shares 57,487,724 (16,803,618) 17,374,855 26,162,818 Shares outstanding, beginning of period 139,003,930 155,807,548 37,596,904 11,434,086 ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period 196,491,654 139,003,930 54,971,759 37,596,904 ---------------- ---------------- ---------------- ----------------
56 56 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Statements - -------------------------------------------------------------------------------- Statements of Changes in Net Assets
Berger Mid Cap Growth Fund ----------------------------------- Six Months Ended Year Ended March 31,2000 September 30, (Unaudited) 1999 ---------------- ---------------- From Operations Net investment income (loss) $ (340,544) $ (121,812) Net realized gain on securities and foreign currency transactions 9,725,428 2,534,503 Net realized gain on futures contracts -- -- Net realized gain on distributions from investment companies -- -- Net change in unrealized appreciation on securities and foreign currency transactions 26,520,866 4,040,333 ---------------- ---------------- Net Increase in Net Assets Resulting from Operations 35,905,750 6,453,024 ---------------- ---------------- From Dividends and Distributions to Shareholders Dividends from net investment income -- -- Distributions in excess of net investment income -- -- Distributions from net realized gains on investments (2,604,437) (87,008) Distributions in excess of net realized gains on investments -- -- ---------------- ---------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (2,604,437) (87,008) ---------------- ---------------- From Fund Share Transactions Proceeds from shares sold 102,408,325 23,393,763 Net asset value of shares issued in reinvestment of dividends and distributions 2,525,230 84,722 Payments for shares redeemed (34,494,049) (8,577,110) ---------------- ---------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 70,439,506 14,901,375 ---------------- ---------------- Net Increase in Net Assets 103,740,819 21,267,391 Net Assets Beginning of period 25,550,112 4,282,721 ---------------- ---------------- End of period $ 129,290,931 $ 25,550,112 ---------------- ---------------- Undistributed net investment income/(Accumulated net investment loss) $ (340,949) $ (405) ---------------- ---------------- Transactions in Fund Shares (Note 5) Shares sold 2,822,412 1,247,919 Shares issued to shareholders in reinvestment of dividends and distributions 70,380 6,375 Shares redeemed (905,034) (475,129) ---------------- ---------------- Net Increase (Decrease) in Shares 1,987,758 779,165 Shares outstanding, beginning of period 1,170,966 391,801 ---------------- ---------------- Shares outstanding, end of period 3,158,724 1,170,966 ---------------- ----------------
See notes to financial statements. 57 Financial Statements 57 Berger Funds o March 31, 2000 Combined Semi-Annual Report - --------------------------------------------------------------------------------
Berger Mid Cap Berger Value Fund Growth Fund --------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended March 31, 2000 September 30, March 31, 2000 September 30, (Unaudited) 1999 (Unaudited) 1999 ---------------- ---------------- ---------------- ---------------- From Operations Net investment income (loss) $ 66,269 $ 126,159 $ (7,107,504) $ (5,553,325) Net realized gain on securities and foreign currency transactions 2,848,481 2,470,373 235,906,336 296,796,365 Net realized gain on futures contracts -- 116,325 -- 4,015,058 Net realized gain on distributions from investment companies -- 62,909 -- -- Net change in unrealized appreciation on securities and foreign currency transactions 2,097,410 3,004,508 665,499,190 181,661,229 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets Resulting from Operations 5,012,160 5,780,274 894,298,022 476,919,327 ---------------- ---------------- ---------------- ---------------- From Dividends and Distributions to Shareholders Dividends from net investment income (79,196) (116,337) -- -- Distributions in excess of net investment income -- -- -- -- Distributions from net realized gains on investments (39,220) -- (294,401,242) (100,312,667) Distributions in excess of net realized gains on investments (2,192,266) -- -- -- ---------------- ---------------- ---------------- ---------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (2,310,682) (116,337) (294,401,242) (100,312,667) ---------------- ---------------- ---------------- ---------------- From Fund Share Transactions Proceeds from shares sold 3,363,736 9,641,513 47,025,579 125,981,311 Net asset value of shares issued in reinvestment of dividends and distributions 2,272,486 114,595 287,586,300 97,500,281 Payments for shares redeemed (6,628,121) (12,212,494) (173,427,018) (553,122,803) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions (991,899) (2,456,386) 161,184,861 (329,641,211) ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets 1,709,579 3,207,551 761,081,641 46,965,449 Net Assets Beginning of period 22,918,007 19,710,456 1,333,793,695 1,286,828,246 ---------------- ---------------- ---------------- ---------------- End of period $ 24,627,586 $ 22,918,007 $ 2,094,875,336 $ 1,333,793,695 ---------------- ---------------- ---------------- ---------------- Undistributed net investment income/(Accumulated net investment loss) $ 56,657 $ 69,584 $ (7,349,476) $ (241,972) ---------------- ---------------- ---------------- ---------------- Transactions in Fund Shares (Note 5) Shares sold 263,298 792,667 2,407,978 8,690,069 Shares issued to shareholders in reinvestment of dividends and distributions 187,190 10,513 16,039,376 7,075,507 Shares redeemed (531,566) (1,032,615) (9,126,450) (37,344,829) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Shares (81,078) (229,435) 9,320,904 (21,579,253) Shares outstanding, beginning of period 1,883,160 2,112,595 85,745,594 107,324,847 ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period 1,802,082 1,883,160 95,066,498 85,745,594 ---------------- ---------------- ---------------- ----------------
Berger Berger Growth and Balanced Income Fund Fund ------------------------------------------------------------------------- Six Months Ended Year Ended Six Months Ended Year Ended March 31, 2000 September 30, March 31, 2000 September 30, (Unaudited) 1999 (Unaudited) 1999 ---------------- ---------------- ---------------- ---------------- From Operations Net investment income (loss) $ (892,892) $ (797,736) $ 918,504 $ 1,437,031 Net realized gain on securities and foreign currency transactions 45,408,585 65,478,686 13,353,576 12,467,719 Net realized gain on futures contracts -- -- -- 75,053 Net realized gain on distributions from investment companies -- -- -- -- Net change in unrealized appreciation on securities and foreign currency transactions 200,123,566 46,438,095 32,146,206 6,836,202 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets Resulting from Operations 244,639,259 111,119,045 46,418,286 20,816,005 ---------------- ---------------- ---------------- ---------------- From Dividends and Distributions to Shareholders Dividends from net investment income -- -- (868,644) (1,397,262) Distributions in excess of net investment income -- (257,511) -- -- Distributions from net realized gains on investments (56,432,262) (61,153,780) (13,392,318) (3,773,574) Distributions in excess of net realized gains on investments -- -- -- -- ---------------- ---------------- ---------------- ---------------- Net Decrease in Net Assets from Dividends and Distributions to Shareholders (56,432,262) (61,411,291) (14,260,962) (5,170,836) ---------------- ---------------- ---------------- ---------------- From Fund Share Transactions Proceeds from shares sold 106,126,446 72,124,316 69,085,507 170,043,914 Net asset value of shares issued in reinvestment of dividends and distributions 54,705,769 58,191,986 13,140,616 4,755,161 Payments for shares redeemed (58,836,601) (101,997,289) (49,603,849) (98,398,671) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Net Assets Derived from Fund Share Transactions 101,995,614 28,319,013 32,622,274 76,400,404 ---------------- ---------------- ---------------- ---------------- Net Increase in Net Assets 290,202,611 78,026,767 64,779,598 92,045,573 Net Assets Beginning of period 379,356,374 301,329,607 122,766,130 30,720,557 ---------------- ---------------- ---------------- ---------------- End of period $ 669,558,985 $ 379,356,374 $ 187,545,728 $ 122,766,130 ---------------- ---------------- ---------------- ---------------- Undistributed net investment income/(Accumulated net investment loss) $ (957,324) $ (64,432) $ 116,009 $ 66,148 ---------------- ---------------- ---------------- ---------------- Transactions in Fund Shares (Note 5) Shares sold 5,390,072 4,849,258 3,610,824 10,911,427 Shares issued to shareholders in reinvestment of dividends and distributions 2,939,590 4,775,021 721,768 333,300 Shares redeemed (2,965,621) (7,022,370) (2,629,679) (6,169,658) ---------------- ---------------- ---------------- ---------------- Net Increase (Decrease) in Shares 5,364,041 2,601,909 1,702,913 5,075,069 Shares outstanding, beginning of period 24,761,907 22,159,998 7,388,278 2,313,209 ---------------- ---------------- ---------------- ---------------- Shares outstanding, end of period 30,125,948 24,761,907 9,091,191 7,388,278 ---------------- ---------------- ---------------- ----------------
58 58 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger/BIAM International Fund - -------------------------------------------------------------------------------- Statement of Assets and Liabilities
March 31, 2000 (Unaudited) --------------- Assets Investment in Berger/BIAM International Portfolio ("Portfolio"), at value $ 24,896,818 Receivables from fund shares sold 3,793,710 --------------- Total Assets 28,690,528 --------------- Liabilities Payable for fund shares redeemed 2,046 Accrued administrative services fee 9,910 Accrued 12b-1 fees 6,147 --------------- Total Liabilities 18,103 --------------- Net Assets Applicable to Shares Outstanding $ 28,672,425 --------------- Components of Net Assets Capital (par value and paid in surplus) $ 17,991,484 Accumulated net investment loss (172,058) Undistributed net realized gain from investments and foreign currency transactions 928,749 Net unrealized appreciation of securities and foreign currency transactions 9,924,250 --------------- $ 28,672,425 --------------- Shares Outstanding (Unlimited Shares Authorized, Par Value $0.01) 1,889,287 --------------- Net Asset Value, Offering and Redemption Price Per Share $ 15.18 ---------------
Statement of Operations
Six Months Ended March 31,2000 (Unaudited) ---------------- Net Investment Income Allocated from Portfolio Dividends (net of foreign tax withholding of $13,666) $ 122,704 Interest 19,808 Portfolio expenses (net of earnings credits and fee waivers totaling $301) (122,774) ---------------- Net Investment Income Allocated from Portfolio 19,738 ---------------- Fund Expenses Administrative services fee 46,675 Registration fees 21,983 12b-1 fees 31,569 Legal fees 188 ---------------- Total Fund Expenses 100,415 ---------------- Net Investment Loss (80,677) ---------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Allocated from Portfolio Net realized gain on investments and foreign currency transactions 1,604,028 Net change in unrealized appreciation on investments and foreign currency transactions 4,093,786 ---------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Allocated from Portfolio 5,697,814 ---------------- Net Increase in Net Assets Resulting from Operations $ 5,617,137 ----------------
See notes to financial statements. 59 Financial Statements 59 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Statements of Changes in Net Assets
Six Months Ended March 31, 2000 Year Ended (Unaudited) September 30, 1999 ---------------- ------------------ From Operations Net investment loss $ (80,677) $ (1,020) Net realized gain (loss) on investments and foreign currency transactions allocated from Portfolio 1,604,028 (480,189) Net change in unrealized appreciation on investments and foreign currency transactions allocated from Portfolio 4,093,786 5,758,774 ---------------- ------------------ Net Increase in Net Assets Resulting from Operations 5,617,137 5,277,565 ---------------- ------------------ From Dividends and Distributions to Shareholders Net investment income -- (768,790) In excess of net realized gains on investments and foreign currency transactions -- (31,977) ---------------- ------------------ Net Decrease in Net Assets from Dividends and Distributions to Shareholders -- (800,767) ---------------- ------------------ From Fund Share Transactions Proceeds from shares sold 96,461,474 64,254,931 Net asset value of shares issued in reinvestment of dividends and distributions -- 784,624 Payments for shares redeemed (96,419,771) (63,014,956) ---------------- ------------------ Net Increase in Net Assets Derived from Fund Share Transactions 41,703 2,024,599 ---------------- ------------------ Net Increase in Net Assets 5,658,840 6,501,397 Net Assets Beginning of period 23,013,585 16,512,188 ---------------- ------------------ End of period $ 28,672,425 $ 23,013,585 ---------------- ------------------ Accumulated net investment loss $ (172,058) $ (91,381) ---------------- ------------------ Transactions in Fund Shares Shares sold 6,831,771 5,362,766 Shares issued to shareholders in reinvestment of dividends and distributions -- 68,500 Shares redeemed (6,782,310) (5,233,010) ---------------- ------------------ Net Increase in Shares 49,461 198,256 Shares outstanding, beginning of period 1,839,826 1,641,570 ---------------- ------------------ Shares outstanding, end of period 1,889,287 1,839,826 ---------------- ------------------
See notes to financial statements. 60 60 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Organization Berger Information Technology Fund ("TECH"), Berger New Generation Fund ("BNG"), Berger Select Fund ("BSEL"), Berger Small Company Growth Fund ("BSCG"), Berger Small Cap Value Fund ("BSCV"), Berger Mid Cap Growth Fund ("BMCG"), Berger Mid Cap Value Fund ("BMCV"), Berger Growth Fund (formerly Berger 100 Fund) ("Growth"), Berger Growth and Income Fund ("BG&I"), Berger Balanced Fund ("BBAL"), and Berger/BIAM International Fund ("BBIF") (individually the "Fund" and collectively, the "Funds") are open-end management investment companies registered under the Investment Company Act of 1940, as amended (the "1940 Act"). Shares of each fund are fully paid and non-assessable when issued. All shares issued by a particular Fund participate equally in dividends and other distributions by that Fund. The investment objective of each Fund is capital appreciation, including the BG&I and BBAL, which also pursue current income. Growth and BG&I are corporations registered in the State of Maryland. TECH, BNG, BSEL, BSCG, BMCG, BMCV and BBAL are separate series established under the Berger Investment Portfolio Trust ("BIP Trust"), a Delaware business trust. BSCV is the only series established under the Berger Omni Investment Trust ("OMNI Trust"), a Massachusetts business trust. Prior to July 2, 1999, TECH was known as the InformationTech 100 Fund ("InfoTech"). On July 2, 1999,all of the outstanding shares of InfoTech were designated Institutional Shares ("TECH; Inst") and a separate class of shares, Investor Shares ("TECH; Inv"), was offered. BNG, BSCG and BSCV each also offer two separate classes of shares; Investor Shares ("BNG; Inv", "BSCG; Inv", and "BSCV; Inv", respectively) and Institutional Shares ("BNG; Inst", "BSCG; Inst", and "BSCV; Inst", respectively). Both classes of each Fund have identical rights to earnings, assets and voting privileges. BNG; Inst and BSCG; Inst commenced operations on August 16, 1999 and October 16, 1999, respectively. BBIF is one of three series established under the Berger/BIAM Worldwide Funds Trust ("BBWF Trust"), a Delaware business trust. Other series or portfolios may be added under each trust in the future. All costs in organizing the trusts were borne by Berger LLC ("Berger"), or BBOI Worldwide LLC ("BBOI"). BBIF invests all of its investable assets in the Berger/BIAM International Portfolio (the "Portfolio"), a series of Berger/BIAM Worldwide Portfolios Trust ("BBWP Trust"). The value of such investment reflects BBIF's proportionate interest in the net assets of the Portfolio (7% at March 31, 2000).The Portfolio is an open-end management investment company and has the same investment objective and policies as BBIF. The performance of BBIF will be derived from the investment performance of the Portfolio. The financial statements of the Portfolio, including the schedule of investments, are included elsewhere in this report and should be read in conjunction with BBIF's financial statements. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. The policies are in conformity with generally accepted accounting principles. Investment Valuation Securities are valued at the close of the regular trading session of the New York Stock Exchange (the "Exchange") on each day that the Exchange is open. Securities listed on national exchanges, the Nasdaq Stock Market and foreign exchanges are valued at the last sale price on such markets, or, if no last sale price is available, they are valued using the mean between their current bid and ask prices. Securities traded in the over-the-counter market are valued at the mean between their current bid and ask prices. Short-term obligations maturing within sixty days are valued at amortized cost, which approximates market value. Prices of foreign securities are converted to U.S. dollars using exchange rates determined prior to the close of the Exchange. Securities for which quotations are not readily available are valued at fair values as determined in good faith pursuant to consistently applied procedures established by the directors/trustees of the Funds. Generally, trading in foreign securities markets is substantially completed each day at various times prior to the close of the Exchange. The values of foreign securities are deter- mined as of the earlier of such market close or the closing time of the Exchange. Occasionally, events affecting the value of such securities may occur between the times at which they are determined and the close of the Exchange, or when the foreign market on which such securities trade is closed but the Exchange is open. If during such periods, events occur that materially affect the value of such securities, the securities will be valued at their fair market value as determined in good faith pursuant to consistently applied procedures established by the directors/trustees of the Funds. 61 Notes to Financial Statements 61 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Since BBIF invests all of its investable assets in the Portfolio, the value of BBIF's investable assets will be equal to the value of its beneficial interest in the Portfolio. Valuation of securities by the Portfolio is discussed in Note 1 of the Portfolio's Notes to Financial Statements, which are included elsewhere in this report. Calculation Of Net Asset Value Each Fund's per share calculation of net asset value for each share class is determined by dividing the net assets applicable to each share class by the total number of shares outstanding for that class. Federal Income Tax Status It is the Funds' policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their taxable income to shareholders. Therefore, no income tax provision is required. Foreign Currency Translation Assets and liabilities initially expressed in terms of foreign currencies are translated into U.S. dollars at the prevailing market rates as quoted by one or more banks or dealers on the date of valuation. The cost of securities is translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued. Investment Transactions And Investment Income Investment transactions are accounted for on the date investments are purchased or sold. Dividend income is recorded on the ex-dividend date with the exception that certain dividends from foreign securities are recorded as soon as a Fund is informed of the ex-dividend date if such information is obtained subsequent to the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discount and amortization of premium. Gains and losses are computed on the identified cost basis for both financial statement and federal income tax purposes for all securities. Allocation Of Income, Expenses And Gains And Losses Income, expenses (other than those attributable to a specific share class) and gains and losses of TECH, BNG, BSCG and BSCV are allocated daily to each class of shares based upon the ratio of net assets represented by each class as a percentage of total net assets of each of the aforementioned Funds. Expenses directly attributable to a specific class of shares are charged against the operations of such class. As an investor in the Portfolio, BBIF is allocated its pro rata share of the aggregate investment income, realized and unrealized gains or losses and annual operating expenses (including the investment advisory fee, custodian fees, independent accountants' fees, recordkeeping and pricing agent fees) of the Portfolio. Income, realized and unrealized gains or losses and expenses are allocated on the day incurred in proportion to the prior day's net assets of BBIF relative to the other investors in the Portfolio. Common Expenses Certain expenses that are not directly allocable to a specific Fund are allocated to each of the Funds on the basis of relative net assets. Organization Costs Expenses incurred in connection with the organization of TECH are being amortized over sixty months from April 8, 1997, the commencement of investment operations of TECH. Use Of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. 62 62 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- 2. Agreements Berger renders investment advisory services to TECH, BNG, BSEL, BSCG, BSCV, BMCG, BMCV, Growth, BG&I and BBAL pursuant to agreements that provide for an investment advisory fee to be paid to Berger according to the following schedule:
Average Daily Fund Net Assets Annual Rate - ---- ------------- ----------- BSEL, BMCG, BMCV, First $500 million .75% Growth, BG&I Next $500 million .70% Over $1 billion .65% TECH, BNG, First $500 million .85% BSCG, BSCV Next $500 million .80% Over $1 billion .75% BBAL First $1 billion .70% Over $1 billion .65%
All investment advisory fees are accrued daily and paid monthly. Berger has delegated the day-to-day investment management of BSCV and BMCV to Perkins, Wolf, McDonnell & Company ("PWM"). Additionally, Berger has delegated the day-to-day investment management of TECH to Bay Isle Financial Corporation ("BIFC"). Berger pays PWM and BIFC sub-advisory fees from the investment advisory fee it receives from BSCV, BMCV and TECH. Pursuant to an Administrative Services Agreement, whereby BBOI serves as the administrator to BBIF, BBIF pays BBOI a fee at an annual rate equal to the lesser of 0.45% of its average daily net assets or BBOI's annual cost to provide or procure such services plus 0.02% of BBIF's average daily net assets. Under the Agreement, BBOI is responsible at its own expense, for providing or procuring administrative services reasonably necessary for the operation of BBIF, including recordkeeping and pricing services, custodian services, transfer agency and dividend disbursing services, tax and audit services, insurance, printing and mailing to share- holders of prospectuses and other required communication and certain other administrative services. BBOI has delegated the administration of BBIF to Berger. The Funds have adopted plans pursuant to Rule 12b-1 under the 1940 Act (the "Plans"). The TECH, BNG, BSCG and BSCV Plans apply only to the Investor Shares class of each Fund. The Plans provide for the payment to Berger of a 12b- 1 fee of .25% per annum of each Fund's average daily net assets (or the net assets of a particular class of shares, where applicable) to finance activities primarily intended to result in the sale of Fund shares. The Plans provide that such payments will be made to Berger as compensation rather than as reimbursements for actual expenses incurred to promote the sale of shares of the Funds. The Funds (except BBIF) have also entered into recordkeeping and pricing agreements with State Street Bank & Trust ("State Street"), which also serves as the Funds' custodian and transfer agent. The recordkeeping and pricing agreements provide for the monthly payment of a base fee plus a fee computed as a percentage of average daily net assets on a total relationship basis with other Berger Funds. State Street's fees for custody, recordkeeping, pricing and transfer agency services are subject to reduction by credits earned by each Fund, based on the cash balances of each Fund held by State Street as custodian, and by credits received from directed brokerage transactions. DST Systems, Inc. ("DST"), an affiliate of Berger through a degree of common ownership, provides shareholder accounting services to the Funds as a sub-transfer agent. DST Securities, Inc., a wholly-owned subsidiary of DST, is designated as an introductory broker on certain portfolio transactions. The Funds receive an amount equal to the brokerage commissions paid to DST Securities, Inc. as credits against transfer agent fees and expenses. Such credits are presented as fees paid indirectly on the Statement of Operations. For the period ended March 31, 2000, the following credits were earned:
Fund Credits - ---- ------- TECH $ -- BNG 1,575 BSEL 12,097 BSCG -- BSCV -- BMCG -- BMCV -- Growth 26,357 BG&I 7,151 BBAL 6,318 BBIF --
Certain officers and/or directors of Berger and BBOI are also officers and/or directors/trustees of the Funds. Directors/Trustees who are not affiliated with Berger or BBOI are compensated for their services according to a fee schedule which includes an annual fee component and a per meeting fee component. For the period ended March 31, 2000, such directors'/trustees' fees and expenses totaled $137,755 for the Funds. The Funds adopted a director/trustee fee deferral plan (the "Plan") which allows the non-affiliated directors/trustees to defer the receipt of all or a portion of the directors'/trustees' fees payable. The deferred fees are invested in certain of the Funds until distribution in accordance with the Plan. 63 Notes to Financial Statements 63 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- 3. Investment Transactions Purchases and sales proceeds of investment securities (excluding short-term securities) during the period ended March 31, 2000, were as follows:
Fund Purchases Sales - ---- --------- ----- TECH $ 77,386,817 $ 16,415,030 BNG 683,153,469 413,815,643 BSEL 80,742,558 92,892,025 BSCG 783,826,606 555,914,083 BSCV 711,807,414 311,557,019 BMCG 107,994,534 39,747,295 BMCV 14,329,796 16,177,588 Growth 945,451,723 1,089,483,488 BG&I 256,981,610 217,372,166 BBAL 111,451,897 88,715,201 BBIF(1) N/A N/A
1. See the Portfolio's Notes to Financial Statements for information regarding purchases and sales proceeds of investment securities. BBAL had purchases of $5,799,375 and sales of $13,952,500 of long-term U.S. government securities during the period ended March 31, 2000. No other Funds purchased or sold long-term U.S. government securities. Unrealized Appreciation, Unrealized Depreciation And Federal Tax Cost Of Securities At March 31, 2000, the federal tax cost of securities and the composition of net unrealized appreciation (depreciation) of investment securities were as follows:
Gross Gross Net Federal Unrealized Unrealized Appreciation/ Fund Tax Cost Appreciation Depreciation (Depreciation) - ---- -------------- -------------- -------------- -------------- TECH $ 83,408,454 $ 50,759,545 $ (3,026,316) $ 47,733,229 BNG 626,212,882 353,447,175 (59,037,498) 294,409,677 BSEL 104,142,030 60,830,595 (4,538,110) 56,292,485 BSCG 1,036,262,307 544,241,136 (70,792,119) 473,449,017 BSCV 1,205,713,761 113,848,012 (74,213,465) 39,634,547 BMCG 99,083,355 40,427,006 (11,396,377) 29,030,630 BMCV 20,382,653 4,799,994 (734,441) 4,065,553 Growth 1,314,276,865 798,908,991 (15,876,505) 783,032,486 BG&I 398,831,379 273,439,537 (4,126,175) 269,313,362 BBAL 147,831,954 40,439,178 (2,346,453) 38,092,725 BBIF(1) N/A N/A N/A N/A
1. See the Portfolio's Notes to Financial Statements for federal tax cost of investment securities and the composition of net unrealized appreciation or unrealized depreciation of investment securities. Futures Contracts Each Fund may enter futures contracts for hedging purposes. Upon entering a contract, a Fund deposits and maintains as collateral such initial margin as may be required by the exchanges on which the transaction is affected. Pursuant to the contracts, a Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as "variation margin" and are recorded by a Fund as variation margin receivable or payable on futures contracts. During the period the futures contracts are open, changes in the value of the contracts are recognized on a daily basis to reflect the market value of the contracts at the end of each day's trading and are recorded as realized or unrealized gain or loss, as appropriate. A Fund's use of futures contracts may subject it to certain risks as a result of unanticipated movements in the market. A lack of correlation between the value of an instrument underlying a futures contract and the asset being hedged, or unexpected adverse price movements, could render a Fund's hedging strategy unsuccessful and result in losses. In addition, there can be no assurance that a liquid secondary market will exist for any contract purchased or sold. Realized gains or losses on these contracts are presented as a separate component of Net Realized Gain (Loss) on Investments and Foreign Currency Transactions in the Statement of Operations. At March 31,2000,the Funds had no outstanding futures contracts. Forward Contracts And Options Each Fund may hold certain types of forward contracts and/or options for the purpose of hedging each portfolio against exposure to market value fluctuations. The use of such instruments may involve certain risks as a result of unanticipated movements in the market. A lack of correlation between the value of such instruments and the assets being hedged, or unexpected adverse price movements, could render a Fund's hedging strategy unsuccessful and result in losses. In addition, there can be no assurance that a liquid secondary market will exist for the instrument. Realized gains or losses on these investments are included in Net Realized Gain (Loss) on Investments and Foreign Currency Transactions in the Statement of Operations. At March 31, 2000, the Funds held no options or open forward contracts. Securities Lending Under an agreement with State Street, TECH, BNG, BSEL, BSCG, BMCG, BMCV, BBAL and the Portfolio have the ability to lend securities to brokers, dealers and other financial institutions. Loans of portfolio securities are collateralized by cash in an amount equal to at least 102% of the market value of the loaned securities at the time the loan is made. The collateral is evaluated daily to ensure that it exceeds the current market value of the loaned securities. 64 64 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- The cash collateral received is invested in a money market fund and any income generated by such investment, net of any rebates paid by State Street to borrowers, is remitted to State Street, as lending agent, and the remainder is paid to the Fund. At March 31, 2000, the Funds had securities on loan with the following market values:
Fund Value - ---- ----- TECH $ 38,723,534 BNG 207,736,444 BSEL 76,929,269 BSCG 213,607,589 BMCG 46,618,711 BMCV 6,554,194 BBAL 29,215,487 BBIF(1) N/A
1. See the Portfolio's Notes to Financial Statements for market value of securities on loan. Income earned from securities lending transactions is included in securities lending income in the Statement of Operations. Repurchase Agreements Repurchase agreements held by a Fund are fully collateralized by U.S. government securities and such collateral is in the possession of the Fund's custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. Concentration of Risk The Funds may have elements of risk due to concentrated investments in specific industries or foreign issuers located in a specific country. Such concentrations may subject the Fund to additional risk resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws or currency exchange restrictions. Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions in the Statement of Operations includes fluctuations from currency exchange rates and fluctuations in market value. Federal Income Taxes Dividends paid by the Funds from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders. The Funds distribute net realized capital gains, if any, to their shareholders at least annually, if not offset by capital loss carryovers. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are primarily due to the differing treatment of net operating losses, foreign currency and tax allocations. Accordingly, these permanent differences in the character of income and distributions between financial statements and tax basis have been reclassified to paid-in-capital. At September 30, 1999, BBIF had capital loss carryovers in the amount of $593,333, expiring on September 30, 2007, which may be used to offset future realized gains for federal income tax purposes. Growth, BBAL, and BBIF incurred and elected to defer post-October 31 net capital and/or currency losses of $12,732, $165,238, and $234,056, respectively, to the year ended September 30, 2000. 4. Line of Credit BNG, BSEL, BSCG, BSCV, BMCG, BMCV, Growth, BG&I, BBAL and the Portfolio are party to an ongoing agreement with certain banks that allows the Funds, collectively, to borrow up to $150 million for temporary or emergency purposes. Interest on the borrowings, if any, is charged to the specific Fund or Portfolio at the Federal Funds Rate plus 50 basis points. In addition, the line of credit requires a quarterly payment of a commitment fee based on the average daily unused portion of the line of credit. At March 31, 2000, BSCG had borrowings outstanding of $12,000,000. No other Funds had line of credit borrowings outstanding at March 31, 2000. 65 Notes to Financial Statements 65 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- 5. Capital Share Transactions The following Funds are authorized to issue an unlimited number of shares of each share class with a par value of $0.01 per share. Transactions in capital shares for the periods presented were as follows: Berger Information Technology Fund
Six Months Ended Period from July 2, 1999(1) March 31, 2000 to September 30, 1999 -------------------------- ---------------------------- Investor Shares Shares sold 543,697 $ 64,835,282 85,821 $ 4,639,114 Shares issued to shareholders in reinvestment of dividends and distributions 654 72,263 -- -- Shares redeemed (135,867) (15,403,764) (2,099) (115,896) ----------- ------------- ------------- ------------- 408,484 $ 49,503,781 83,722 $ 4,523,218 ----------- ------------- ------------- ------------- Six Months Ended Period from March 1, 1999 Year Ended March 31, 2000 to September 30, 1999 February 28, 1999 -------------------------- ---------------------------- --------------------------- Institutional Shares Shares sold 287,112 $ 28,235,569 96,500 $ 4,834,625 233,427 $ 8,406,475 Shares issued to shareholders in reinvestment of dividends and distributions 1,382 152,982 4,504 240,876 -- -- Shares redeemed (117,833) (13,180,362) (31,917) (1,602,790) (41,565) (1,572,857) ----------- ------------- ------------- ------------- ------------- ----------- 170,661 15,208,189 69,087 3,472,711 191,862 6,833,618 ----------- ------------- ------------- ------------- ------------- ----------- Total Increase from Capital Share Transactions 579,145 $ 64,711,970 152,809 $ 7,995,929 191,862 $ 6,833,618 ----------- ------------- ------------- ------------- ------------- ----------- Berger New Generation Fund Six Months Ended Year Ended March 31, 2000 September 30, 1999 -------------------------- ---------------------------- Investor Shares Shares sold 15,710,080 $ 592,123,714 12,495,220 $ 266,105,602 Shares issued to shareholders in reinvestment of dividends and distributions 1,986,845 67,573,451 305,888 4,318,823 Shares redeemed (8,093,700) (302,781,649) (8,938,999) (178,904,170) ----------- ------------- ------------- ------------- 9,603,225 $ 356,915,516 3,862,109 $ 91,520,255 ----------- ------------- ------------- ------------- Six Months Ended Period from August 16, 1999(1) March 31, 2000 to September 30, 1999 -------------------------- ---------------------------- Institutional Shares Shares sold 91,054 $ 3,410,681 13,443 $ 339,872 Shares issued to shareholders in reinvestment of dividends and distributions 4,333 146,212 -- -- Shares redeemed (2,440) (96,748) -- -- ----------- ------------- ------------- ------------- 92,947 3,460,145 13,443 339,872 ----------- ------------- ------------- ------------- Total Increase from Capital Share Transactions 9,696,172 $ 360,375,661 3,875,552 $ 91,860,127 ----------- ------------- ------------- -------------
(1) Commencement of operations for the share class. 66 66 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- 5. Capital Share Transactions (continued)
Berger Small Company Growth Fund Six Months Ended Year Ended March 31, 2000 September 30, 1999 ------------------------------ ------------------------------ Investor Shares Shares sold 75,803,575 $ 542,698,198 59,395,752 $ 237,959,062 Shares issued to shareholders in reinvestment of dividends and distributions 30,319,532 188,891,176 30,583,466 102,148,841 Shares redeemed (48,887,841) (345,298,743) (106,782,836) (421,943,412) ------------- ------------- ------------- ------------- 57,235,266 $ 386,290,631 (16,803,618) $ (81,835,509) ------------- ------------- ------------- ------------- Period from October 16, 1999(1) to March 31, 2000 ------------------------------ Institutional Shares Shares sold 253,854 $ 1,719,822 Shares issued to shareholders in reinvestment of dividends and distributions 17,555 107,968 Shares redeemed (18,951) (123,703) ------------- ------------- 252,458 1,704,087 ------------- ------------- Total Increase (Decrease) from Capital Share Transactions 57,487,724 $ 387,994,718 (16,803,618) $ (81,835,509) ------------- ------------- ------------- ------------- Berger Small Cap Value Fund Six Months Ended Year Ended March 31, 2000 September 30, 1999 ------------------------------ ------------------------------ Investor Shares Shares sold 13,712,136 $ 289,076,900 18,450,177 $ 379,815,718 Shares issued to shareholders in reinvestment of dividends and distributions 374,603 7,844,197 305,000 5,696,711 Shares redeemed (5,938,002) (125,565,979) (7,062,053) (141,792,819) ------------- ------------- ------------- ------------- 8,148,737 171,355,118 11,693,124 243,719,610 ------------- ------------- ------------- ------------- Institutional Shares Shares sold 13,168,353 277,073,706 17,741,548 360,425,229 Shares issued to shareholders in reinvestment of dividends and distributions 361,127 7,576,438 227,011 4,250,338 Shares redeemed (4,303,362) (90,306,397) (3,498,865) (69,867,820) ------------- ------------- ------------- ------------- 9,226,118 194,343,747 14,469,694 294,807,747 ------------- ------------- ------------- ------------- Total Increase from Capital Share Transactions 17,374,855 $ 365,698,865 26,162,818 $ 538,527,357 ------------- ------------- ------------- -------------
(1) Commencement of operations for the share class. 6. Other Matters Effective March 31, 2000, the trustees of the OMNI Trust approved closing both share classes of BSCV. During the period in which the Fund is closed to new investors, Berger shall reduce the 12b-1 fee payable by BSCV; Inv by the amount of such fee that is not utilized by Berger to provide or to compensate third party administrators or other companies for providing shareholder services to shareholders in connection with the distribution of shares. 7. Subsequent Events On January 19, 2000, Berger and BIAM entered into an agreement to dissolve BBOI. This agreement was approved by shareholders on May 5, 2000. The dissolution of BBOI will have no effect on the investment advisory services to or on the fees borne by BBIF for advisory services. Upon approval of the new management agreement, Berger became the Fund's advisor and BIAM continues to be responsible for the day-to-day management of the Fund's portfolio as sub-advisor. Additionally, BBIF has been renamed Berger International Fund and the BBWF Trust has been renamed Berger Worldwide Funds Trust. 67 International Portfolio 67 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger/BIAM International Portfolio - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Country/Shares Company Industry Value - -------------- ------- -------- -------------- Common Stock (96.70%) Australia (3.38%) 43,125 Brambles Industries Ltd. Business & Industrial Services $ 1,097,985 166,700 National Australia Bank Ltd. Commercial Banks & Other Banks 2,145,433 361,740 News Corp. Ltd. Media 5,060,056 423,895 Telstra Corp. Ltd. Utilities 1,957,606 212,370 Westpac Banking Corp. Ltd. Commercial Banks & Other Banks 1,330,857 -------------- 11,591,937 -------------- China (0.47%) 9,868,000 PetroChina Co. Ltd.* Oil 1,622,161 -------------- Denmark (0.71%) 27,255 Tele Danmark - Class B Utilities 2,450,909 -------------- France (10.12%) 17,111 Alcatel Alsthom Computer/Commercial/Office Equipment 3,752,681 92,312 Aventis S.A. Chemicals 5,050,291 46,452 AXA-UAP Insurance - Multi/Property/Casualty 6,579,937 34,250 Michelin - Class B Automobile Components 1,098,717 48,682 Total S.A. - Class B Oil 7,286,937 95,028 Vivendi Diversified Holding Companies 10,952,188 -------------- 34,720,751 -------------- Germany (3.36%) 52,150 Bayerische HypoVereinsbank A.G. Commercial Banks & Other Banks 3,217,186 117,242 Bayerische Motoren Werk A.G. DM Automobiles 3,694,884 63,731 Veba A.G. Diversified Industrials 3,255,024 67,080 Viag A.G. DM Utilities 1,360,163 -------------- 11,527,257 -------------- Hong Kong (2.23%) 208,000 Cheung Kong (Holdings) Ltd. Real Estate 3,112,032 282,000 China Telecom Ltd.* Utilities 2,471,762 144,500 Hong Kong Electric Holdings Utilities 436,104 189,000 Sun Hung Kai Properties Ltd. Real Estate 1,638,402 -------------- 7,658,300 -------------- Italy (3.06%) 411,566 ENI S.p.A. Oil 2,058,749 566,607 Telecom Italia S.p.A. Utilities 8,454,127 -------------- 10,512,876 -------------- Japan (21.36%) 15,600 ACOM Co. Ltd. Insurance - Multi/Property/Casualty 1,687,759 93,000 Bank of Tokyo-Mitsubishi Ltd.+ Commercial Banks & Other Banks 1,328,571 183,000 Canon, Inc.+ Computer/Commercial/Office Equipment 7,930,178 83,000 Fuji Photo Film Co. Ltd. Photo Equipment & Supplies 3,653,325 383,000 Hitachi Ltd. Electronics & Instruments 4,546,469 47,000 Honda Motor Co. Ltd. Automobiles 1,940,597 28,000 Hoya Corp. Electronics & Instruments 2,644,853 95,000 Kao Corp. Food & Grocery Products 2,904,859 130 Keyence Corp. Electronics & Instruments 51,903
68 68 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Berger/BIAM International Portfolio - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 -------------- Country/Shares Company Industry Value - -------------- ------- -------- -------------- Common Stock (96.70%) - continued Japan (21.36%) - continued 7,000 Mabuchi Motor Co. Ltd. Electronics & Instruments $ 743,012 36,000 Murata Manufacturing Co. Ltd.+ Electronics & Instruments 8,746,713 146,000 NEC Corp. Electronics & Instruments 4,307,916 191 Nippon Telegraph & Telephone Corp.+ Utilities 3,031,745 186 NTT Mobile Communications Network, Inc.+ Utilities 7,625,474 33,000 Pioneer Corp. Household Durables & Appliances 935,144 11,700 Rohm Co. Ltd. Electronics & Instruments 4,067,484 104,000 Shiseido Co. Ltd. Health & Personal Care 1,412,795 24,300 Sony Corp. - New* Household Durables & Appliances 3,454,864 24,300 Sony Corp. Household Durables & Appliances 3,431,200 107,000 Takeda Chemical Industries Health & Personal Care 7,606,388 11,600 Takefuji Corp. Insurance - Multi/Property/Casualty 1,242,574 ----------- 73,293,823 ----------- Netherlands (10.29%) 155,580 ABN Amro Holdings N.V. Commercial Banks & Other Banks 3,465,656 158,137 Elsevier N.V. Media 1,603,251 56,877 Fortis N.V. Commercial Banks & Other Banks 1,455,200 22,700 Heineken N.V. Beverage Industry/Tobacco Manufacturing 1,212,582 163,217 ING Groep N.V. Insurance - Multi/Property/Casualty 8,835,763 114,980 Koninklijke Ahold N.V. Retail Trade 2,990,155 64,175 Koninklijke KPN N.V. Utilities 7,344,138 15,375 Philips Electronics N.V. Household Durables & Appliances 2,582,271 48,480 Royal Dutch Petroleum Co. Oil 2,828,954 73,490 TNT Post Group N.V. Utilities 1,649,694 22,760 VNU N.V. Media 1,339,869 ----------- 35,307,533 ----------- New Zealand (0.14%) 101,787 Telecom Corp. of New Zealand Ltd. Utilities 460,162 ----------- Portugal (0.26%) 46,450 Electricidade de Portugal S.A. Utilities 868,549 ----------- Singapore (1.44%) 217,027 Development Bank of Singapore Ltd. Commercial Banks & Other Banks 2,864,957 112,450 Overseas Chinese Banking Corp. Ltd. Commercial Banks & Other Banks 696,244 86,000 Singapore Press Holdings Ltd. Media 1,371,378 ----------- 4,932,579 ----------- South Korea (0.62%) 24,200 Korea Telecom Corp. - Sponsored ADR Utilities 1,058,750 39,250 Pohang Iron & Steel Co. Ltd. - Sponsored ADR Mining, Metals & Minerals 1,079,375 ----------- 2,138,125 ----------- Spain (2.47%) 346,322 Banco De Santander S.A. Commercial Banks & Other Banks 3,719,821 188,536 Telefonica S.A.* Utilities 4,760,591 ----------- 8,480,412 ----------- Sweden (0.97%) 37,670 Telefonaktiebolaget LM Ericsson - Class B Utilities 3,309,319 -----------
69 International Portfolio 69 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED)
March 31, 2000 Country/Shares/Par Value Company Industry Value - ------------------------ ------- -------- -------------- Common Stock (96.70%) - continued Switzerland (7.91%) 2,052 Alusuisse Lonza Group A.G.* Fabricated Metal Products $ 1,295,337 2,052 Lonza A.G.Reg.* Chemicals 1,112,756 3,441 Nestle S.A.Reg. Food & Grocery Products 6,164,775 3,401 Novartis A.G.Reg. Health & Personal Care 4,649,577 493 Roche Holding A.G. Health & Personal Care 5,352,800 2,492 Schweizerische Rueckversicherungs Reg. Insurance - Multi/Property/Casualty 4,316,260 16,211 Union Bank of Switzerland A.G.Reg. Commercial Banks & Other Banks 4,258,999 ------------ 27,150,504 ------------ United Kingdom (27.91%) 10,300 3i Group PLC Diversified Holding Companies 216,324 277,603 Allied Zurich PLC Insurance - Life & Agents/Brokers 3,045,653 92,180 AstraZeneca PLC Health & Personal Care 3,729,509 196,175 Barclays PLC Commercial Banks & Other Banks 5,195,496 309,767 British American Tobacco PLC Beverage Industry/Tobacco Manufacturing 1,704,202 341,530 Cable & Wireless PLC Utilities 6,411,010 398,560 Cadbury Schweppes PLC Beverage Industry/Tobacco Manufacturing 2,675,383 490,260 Diageo PLC Beverage Industry/Tobacco Manufacturing 3,679,592 156,656 EMIGroup PLC* Media 1,737,435 217,550 Glaxo Wellcome PLC Health & Personal Care 6,222,657 447,032 Granada Group PLC Entertainment/Leisure/Toys 4,790,526 409,750 Hilton Group PLC Entertainment/Leisure/Toys 1,904,943 752,414 Invensys PLC Machinery & Engineering Services 3,339,138 380,588 Lloyds TSB Group PLC Commercial Banks & Other Banks 4,014,813 295,300 Marconi PLC Electronics & Instruments 3,524,500 241,350 Old Mutual PLC* Insurance - Multi/Property/Casualty 576,887 79,020 Pearson PLC Media 2,746,281 373,915 Prudential PLC Insurance - Life & Agents/Brokers 5,639,568 69,560 Railtrack Group PLC Road & Rail 813,040 115,550 Reuters Group PLC Media 2,342,121 98,458 Royal Bank of Scotland Group PLC* Commercial Banks & Other Banks 1,448,121 843,732 Shell Transport & Trading Co. PLC Oil 6,991,336 144,600 TI Group PLC Machinery & Engineering Services 711,998 4,018,240 Vodafone AirTouch Group PLC Utilities 22,314,699 ------------ 95,775,232 ------------ Total Common Stock (Cost $240,706,613) 331,800,429 ------------ Repurchase Agreement (1.82%) U.S.A.(1.82%) $6,261,000 State Street Repurchase Agreement,6.05% dated March 31, 2000,to be repurchased at $6,264,113 on April 3, 2000,collateralized by U.S. Treasury Note,5.75% - June 30, 2001, with a value of $6,386,775 6,261,000 ------------ Total Repurchase Agreement (Cost $6,261,000) 6,261,000 ------------ Total Investments (Cost $246,967,613) (98.52%) 338,061,429 Total Other Assets, Less Liabilities (1.48%) 5,091,454 ------------ Net Assets (100.00%) $343,152,883 ------------
* Non-income producing security. + - Security is designated as collateral for forward foreign currency contracts. ADR - American Depositary Receipt. PLC - Public Limited Company. See notes to financial statements. 70 70 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger/BIAM International Portfolio - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS (UNAUDITED) Outstanding Forward Foreign Currency Contracts
Unrealized Contract Maturity Value on Appreciation/ Currency Amount Date March 31, 2000 (Depreciation) ------------ ----------- --------- -------------- -------------- Sell Japanese Yen 266,718,000 4/18/2000 $ 2,605,991 $ (48,943) Sell Japanese Yen 332,650,000 4/28/2000 3,256,231 (46,253) Sell Japanese Yen 338,962,000 5/2/2000 3,320,292 (241,059) Sell Japanese Yen 279,612,000 5/9/2000 2,741,939 (122,132) Sell Japanese Yen 266,718,000 5/18/2000 2,619,196 (49,659) Sell Japanese Yen 253,531,000 5/18/2000 2,489,699 (136,524) Sell Japanese Yen 220,022,000 5/30/2000 2,164,719 (153,365) ----------- --------- $19,198,067 $(797,935) ----------- ---------
See notes to financial statements. 71 International Portfolio 71 Berger Funds o March 31, 2000 Combined Semi-Annual Report - --------------------------------------------------------------------------------
Statement of Assets and Liabilities March 31, 2000 (Unaudited) -------------- Assets Investments, at cost $ 246,967,613 -------------- Investments, at value $ 338,061,429 Cash 749 Foreign cash (cost:$2,478,677) 2,525,425 Receivables Investment securities sold 696,575 Contributions 4,180,825 Dividends 1,142,791 Interest 1,052 Investment held as collateral for securities loaned 25,964,940 -------------- Total Assets 372,573,786 -------------- Liabilities Payables Investment securities purchased 1,795,678 Withdrawals 544,266 Collateral on securities loaned 25,964,940 Accrued investment advisory fees 260,943 Accrued custodian and accounting fees 41,852 Accrued audit fees 15,289 Net unrealized depreciation on forward currency contracts 797,935 -------------- Total Liabilities 29,420,903 -------------- Net Assets $ 343,152,883 -------------- Statement of Operations Six Months Ended March 31, 2000 (Unaudited) -------------- Investment Income Dividends (net of foreign tax withholding of $172,344) $ 1,554,581 Interest 234,590 Securities lending income 480 -------------- Total Income 1,789,651 -------------- Expenses Investment advisory fees 1,381,557 Accounting fees 31,841 Custodian fees 66,967 Audit fees 14,989 Legal fees 2,311 Trustees' fees and expenses 8,213 Shareholder reporting fees 2,438 Other expenses 4,005 -------------- Gross Expenses 1,512,321 -------------- Less earnings credits (3,815) -------------- Net Expenses 1,508,506 -------------- Net Investment Income 281,145 -------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions Net realized gain on investments and foreign currency transactions 19,441,598 Net change in unrealized appreciation on investments and foreign currency transactions 40,844,946 -------------- Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions 60,286,544 -------------- Net Increase in Net Assets Resulting from Operations $ 60,567,689 --------------
See notes to financial statements 72 72 Berger Funds o March 31, 2000 Combined Semi-Annual Report Berger/BIAM International Portfolio - -------------------------------------------------------------------------------- Statements of Changes in Net Assets
Six Months Ended March 31, 2000 Year Ended (Unaudited) September 30, 1999 -------------- ------------------ From Operations Net investment income $ 281,145 $ 1,669,631 Net realized gain (loss) on securities and foreign currency transactions 19,441,598 (5,205,587) Net change in unrealized appreciation on securities and foreign currency transactions 40,844,946 58,159,547 -------------- -------------- Net Increase in Net Assets Resulting from Operations 60,567,689 54,623,591 -------------- -------------- From Transactions in Investors' Beneficial Interest Contributions 190,340,888 161,557,439 Withdrawals (172,967,064) (128,565,460) -------------- -------------- Net Increase in Net Assets Derived from Investors' Beneficial Interest Transactions 17,373,824 32,991,979 -------------- -------------- Net Increase in Net Assets 77,941,513 87,615,570 Net Assets Beginning of period 265,211,370 177,595,800 -------------- -------------- End of period $ 343,152,883 $ 265,211,370 -------------- --------------
Six Months Ended Period from March 31, 2000 Years Ended September 30, October 11, 1996(1) (Unaudited) 1999 1998 to September 30, 1997 ------------ ------------ ------------ --------------------- Ratios/Supplementary Data Net assets, end of period (in thousands) $ 343,153 $ 265,211 $ 177,596 $ 122,217 Net expense ratio to average net assets(3) 0.98%(2) 1.00% 1.00% 0.89%(2) Ratio of net income to average net assets 0.18%(2) 0.75% 3.45% 1.63%(2) Gross expense ratio to average net assets 0.98%(2) 1.01% 1.04% 1.10%(2) Portfolio turnover rate(4) 17% 16% 17% 17%
(1) Commencement of investment operations. (2) Annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Not annualized. See notes to financial statements 73 Notes to Financial Statements 73 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- 1. Organization and Significant Accounting Policies Organization The Berger/BIAM International Portfolio (the "Portfolio") is registered under the Investment Company Act of 1940, as amended, as a diversified open-end management investment company. The Portfolio is a series of the Berger/BIAM Worldwide Portfolios Trust (the "Trust"), which was organized as a Delaware business trust on May 31, 1996. All costs in organizing the Trust were borne by BBOI Worldwide LLC ("BBOI"), the investment advisor of the Portfolio. Currently there are three investors in the Portfolio, the Berger/BIAM International Fund, the International Equity Fund and the Berger/BIAM International CORE Fund. The investment objective of the Portfolio is long-term capital appreciation. The Portfolio invests primarily in common stocks of well-established companies located outside of the United States. The Portfolio is advised by BBOI, which has delegated daily investment management of the Portfolio to Bank of Ireland Asset Management (U.S.) Limited ("BIAM"). Berger LLC ("Berger") and BIAM each own 50% of BBOI. Significant Accounting Policies The following is a summary of significant accounting policies consistently followed by the Portfolio in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. Investment Valuation Securities are valued at the close of the regular trading session of the New York Stock Exchange (the "Exchange") on each day that the Exchange is open. Securities listed on national exchanges, the Nasdaq Stock Market and foreign exchanges are valued at the last sale price on such markets, or, if no last sale price is available, they are valued using the mean between their current bid and ask prices. Securities traded in the over-the-counter market are valued at the mean between their current bid and ask prices. Short-term obligations maturing within sixty days are valued at amortized cost, which approximates market value. Prices of foreign securities are converted to U.S. dollars using exchange rates determined prior to the close of the Exchange. Securities for which quotations are not readily available are valued at fair values as determined in good faith pursuant to consistently applied procedures established by the trustees of the Portfolio. Generally, trading in foreign securities markets is substantially completed each day at various times prior to the close of the Exchange. The values of foreign securities are determined as of the earlier of such market close or the closing time of the Exchange. Occasionally, events affecting the value of such securities may occur between the times at which they are determined and the close of the Exchange, or when the foreign market on which such securities trade is closed but the Exchange is open. If during such periods, events occur that materially affect the value of such securities, the securities will be valued at their fair market value as determined in good faith pursuant to consistently applied procedures established by the trustees of the Portfolio. Foreign Currency Translation Assets and liabilities initially expressed in terms of foreign currencies are translated into U.S. dollars at the prevailing market rates as quoted by one or more banks or dealers on the date of valuation. The cost of securities is translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued. Federal Income Taxes The Portfolio is considered a partnership for federal income tax purposes. As such, each investor in the Portfolio will be taxed on its share of the Portfolio's ordinary income and capital gains. It is intended that the Portfolio's assets will be managed in such a way that an investor in the Portfolio will be able to satisfy the requirements of Sub-Chapter M of the Internal Revenue Code. Investment Transactions And Investment Income Investment transactions are accounted for on the date investments are purchased or sold. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are reported as soon as the Portfolio is informed of the ex-dividend date if such information is obtained subsequent to the ex-dividend date. Dividend income is recorded net of foreign taxes withheld. Interest income is recorded on the accrual basis and includes accretion of discount and amortization of premium. Gains and losses are computed on the identified cost basis for both financial statement and federal income tax purposes for all securities. 74 74 Berger Funds o March 31, 2000 Combined Semi-Annual Report Notes to Financial Statements March 31, 2000 (Unaudited) - -------------------------------------------------------------------------------- Use Of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results may differ from those estimates. 2. Agreements BBOI renders investment advisory services to the Portfolio pursuant to an agreement that provides for an investment advisory fee to be paid to BBOI at the annual rate of .90% of the Portfolio's average daily net assets. BBOI is also responsible for providing for or arranging for all managerial and administrative services necessary for the operations of the Portfolio BBOI pays BIAM a sub-advisory fee from the investment advisory fee it receives from the Portfolio. The Portfolio has also entered into recordkeeping and pricing agreements with State Street Bank & Trust ("State Street"), which also serves as the Portfolio's custodian and transfer agent. The recordkeeping and pricing agreements provide for the monthly payment of a base fee plus a fee computed as a percentage of average daily net assets on a total relationship basis with other funds in the Berger Funds complex. State Street's fees for custody, recordkeeping, pricing and transfer agency services are subject to reduction by credits earned by the Portfolio, based on the cash balances of the Portfolio held by State Street as custodian. Certain officers and trustees of the Trust are officers and directors of Berger and/or BBOI. Trustees who are not affiliated with Berger and/or BBOI are compensated for their services according to a fee schedule, allocated among all of the funds in the Berger Funds complex, which includes an annual fee component and a per meeting component. The Portfolio's portion of the trustees' fees and expenses for the period ended March 31, 2000,totaled $8,213. The Trust adopted a Trustee Fee Deferral Plan (the "Plan") which allows the non-affiliated trustees to defer the receipt of all or a portion of the trustee fees payable. The deferred fees are invested in various Berger Funds until distribution in accordance with the Plan. 3. Investment Transactions Purchases And Sales Purchases and sales proceeds of investment securities (excluding short-term securities) during the period ended March 31, 2000 were as follows:
Purchases Sales ----------- ----------- $63,920,962 $48,563,395 ----------- -----------
There were no purchases or sales of long-term U.S. government securities during the period ended March 31, 2000. Unrealized Appreciation, Unrealized Depreciation And Federal Tax Cost Of Securities At March 31, 2000, the federal tax cost of securities and the composition of net unrealized appreciation (depreciation) of investment securities held was as follows:
Gross Unrealized Gross Unrealized Federal Tax Cost Appreciation Depreciation Net - ---------------- ------------ ------------ ----------- $247,056,513 $105,425,718 $(14,420,802) $91,004,916 ------------ ------------ ------------ -----------
Forward Currency Contracts The Portfolio may enter into forward foreign currency exchange contracts for the purpose of hedging the Portfolio against exposure to market value fluctuations in foreign currencies. The use of such instruments may involve risks such as the possibility of illiquid markets or imperfect correlation between the value of the contracts and the underlying securities, or that the counterparty will fail to perform its obligations. Forward currency contracts and foreign denominated assets may involve more risks than domestic transactions, including currency risk, political and economic risk, regulatory risk and market risk. Risk may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of foreign currencies relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted to the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. Realized gains or losses on these securities are included in Net Realized Gain (Loss) on Investments and Foreign Currency Transactions in the Statement of Operations. 75 Notes to Financial Statements 75 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Securities Lending Under an agreement with State Street, the Portfolio has the ability to lend securities to brokers, dealers and other financial institutions. Loans of portfolio securities are collateralized by cash in an amount equal to at least 102% of the market value of the loaned securities at the time the loan is made. The collateral is evaluated daily to ensure that it exceeds the current market value of the loaned securities. The cash collateral received is invested in a money market fund and any income generated by such investment, net of any rebates paid by State Street to borrowers, is remitted to State Street, as lending agent, and the remainder is paid to the Portfolio. At March 31, 2000, the Portfolio had securities on loan with a market value of $24,699,259. Income earned from securities lending transactions is included in securities lending income in the Statement of Operations. Repurchase Agreements Repurchase agreements held by the Portfolio are fully collateralized by U.S. government securities and such collateral is in the possession of the Portfolio's custodian. The collateral is evaluated daily to ensure its market value exceeds the current market value of the repurchase agreements including accrued interest. In the event of default on the obligation to repurchase, the Portfolio has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. Concentration Of Risk The Portfolio may have elements of risk due to concentrated investments in specific industries or foreign issuers located in a specific country. Such concentrations may subject the Portfolio to additional risk resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws or currency exchange restrictions. Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions in the Statement of Operations includes fluctuations from currency exchange rates and fluctuations in market value of securities. 4. Line of Credit The Portfolio, along with certain other Berger Funds, is party to an ongoing agreement with certain banks that allows these Funds and the Portfolio, collectively, to borrow up to $150 million, subject to certain conditions, for temporary or emergency purposes. Interest, based on the Federal Funds Rate, is charged to the specific party that executes the borrowing. In addition, the unsecured line of credit requires a quarterly payment of a commitment fee based on the average daily unused portion of the line of credit. At March 31, 2000, the Portfolio had no borrowings outstanding on the line of credit. 5. Subsequent Events On January 19, 2000, Berger and BIAM entered into an agreement to dissolve BBOI. This agreement was approved by shareholders on May 5, 2000. The dissolution of BBOI will have no effect on the investment advisory services to the Portfolio; however, effective May 12 the investment advisory fee charged to the Portfolio will be reduced according to the following schedule:
Average Daily Net Assets Annual Rate - ------------------------ ----------- First $500 million .85% Next $500 million .80% Over $1 billion .75%
Immediately upon shareholder approval Berger became the Fund's advisor and BIAM continues to be responsible for the day-to-day management of the Portfolio as sub-advisor. Additionally, the Portfolio has been renamed the Berger International Portfolio and the Trust has been renamed Berger Worldwide Portfolios Trust. 76 76 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Highlights - -------------------------------------------------------------------------------- Berger Information Technology Fund - Investor Shares For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 July 2, 1999(1) (Unaudited) to September 30, 1999 -------------- --------------------- Net asset value, beginning of period $ 57.46 $ 53.47 -------------- -------------- From investment operations Net investment income (loss) (0.41) (0.00)(5) Net realized and unrealized gains (losses) from investments and foreign currency transactions 73.80 3.99 -------------- -------------- Total from investment operations 73.39 3.99 -------------- -------------- Less dividends and distributions Distributions (from capital gains) (0.33) -- -------------- -------------- Total dividends and distributions (0.33) -- -------------- -------------- Net asset value, end of period $ 130.52 $ 57.46 -------------- -------------- Total Return(2) 127.82% 7.46% -------------- -------------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 64,243 $ 4,811 Net expense ratio to average net assets(3) 1.67%(4) 1.83%(4) Ratio of net income (loss) to average net assets (1.38)%(4) (1.58)%(4) Gross expense ratio to average net assets 1.67%(4) 2.16%(4) Portfolio turnover rate(2) 22% 31%
(1) Commencement of investment operations for Investor Shares. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Amount represents less than $0.01 per share. Berger Information Technology Fund - Institutional Shares For a Share Outstanding Throughout the Period
Six Months Ended Period from Period from March 31, 2000 March 1, 1999 to Year Ended April 8, 1997(1) to (Unaudited) September 30, 1999 February 28, 1999 February 28, 1998 ----------- --------- ----------- ---------- Net asset value, beginning of period $ 57.47 $ 44.36 $ 30.15 $ 20.00 ----------- --------- ----------- ---------- From investment operations Net investment income (loss) (0.40) (0.00)(5) (0.31) (0.10) Net realized and unrealized gains (losses) from investments and foreign currency transactions 74.04 13.83 14.52 10.25 ----------- --------- ----------- ---------- Total from investment operations 73.64 13.83 14.21 10.15 ----------- --------- ----------- ---------- Less dividends and distributions Distributions (from capital gains) (0.33) (0.72) -- -- ----------- --------- ----------- ---------- Total dividends and distributions (0.33) (0.72) -- -- ----------- --------- ----------- ---------- Net asset value, end of period $ 130.78 $ 57.47 $ 44.36 $ 30.15 ----------- --------- ----------- ---------- Total Return(2) 128.23% 31.30% 47.13% 50.75% ----------- --------- ----------- ---------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 68,046 $ 20,094 $ 12,446 $ 2,674 Net expense ratio to average net assets(3) 1.08%(4) 1.49%(4) 1.50% 1.50%(4) Ratio of net income (loss) to average net assets (0.81)%(4) (1.22)%(4) (1.19)% (1.01)%(4) Gross expense ratio to average net assets 1.08%(4) 1.94%(4) 2.67% 12.17%(4) Portfolio turnover rate(2) 22% 31% 35% 33%
(1) Commencement of investment operations for Institutional Shares. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Amount represents less than $0.01 per share. See notes to financial statements. 77 Financial Highlights 77 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Berger New Generation Fund - Investor Shares For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 Years Ended September 30, March 29, 1996(1) to (Unaudited) 1999 1998 1997 September 30, 1996 -------- -------- -------- -------- -------------------- Net asset value, beginning of period $ 25.77 $ 12.66 $ 14.72 $ 11.82 $ 10.00 -------- -------- -------- -------- -------- From investment operations Net investment income (loss) (0.17) (0.00)(6) -- (0.13) 0.56 Net realized and unrealized gains (losses) from investments and foreign currency transactions 20.77 13.61 (2.06) 3.64 1.26 -------- -------- -------- -------- -------- Total from investment operations 20.60 13.61 (2.06) 3.51 1.82 -------- -------- -------- -------- -------- Less dividends and distributions Dividends (from net investment income) -- -- -- (0.61) -- Distributions (from capital gains) (4.55) (0.50) -- -- -- -------- -------- -------- -------- -------- Total dividends and distributions (4.55) (0.50) 0.00 (0.61) 0.00 Net asset value, end of period $ 41.82 $ 25.77 $ 12.66 $ 14.72 $ 11.82 -------- -------- -------- -------- -------- Total Return(2) 84.01% 110.82% (13.99)% 31.53% 18.20% -------- -------- -------- -------- -------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $938,681 $330,938 $113,693 $190,164 $116,912 Net expense ratio to average net assets(3) 1.29%(4) 1.54% 1.72% 1.89% 1.90%(4) Ratio of net income (loss) to average net assets (1.15)%(4) (1.29)% (1.37)% (1.51)% 12.35%(4) Gross expense ratio to average net assets 1.29%(4) 1.54% 1.72% 1.89% 2.09%(4) Portfolio turnover rate(2) 66% 168% 243% 184% 474%(5)
(1) Commencement of investment operations for Investor Shares. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Portfolio turnover was greater than anticipated during this period as a result of portfolio transactions undertaken in response to volatile markets and the short tax year for its initial period of operations. (6) Amount represents less than $0.01 per share. Berger New Generation Fund - Institutional Shares For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 August 16, 1999(1) (Unaudited) to September 30, 1999 ------------ ------------ Net asset value, beginning of period $ 25.79 $ 23.29 ------------ ------------ From investment operations Net investment income (loss) (0.16) (0.00)(5) Net realized and unrealized gains (losses) from investments and foreign currency transactions 20.31 2.50 ------------ ------------ Total from investment operations 20.15 2.50 ------------ ------------ Less dividends and distributions Distributions (from capital gains) (4.53) -- ------------ ------------ Total dividends and distributions (4.53) -- ------------ ------------ Net asset value, end of period $ 41.41 $ 25.79 ------------ ------------ Total Return(2) 82.12% 10.73% ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 4,406 $ 347 Gross/Net expense ratio to average net assets(3) 1.81%(4) 1.02%(4) Ratio of net income (loss) to average net assets (1.66)%(4) (0.85)%(4) Portfolio turnover rate(2) 66% 168%
(1) Commencement of investment operations for Institutional Shares. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Amount represents less than $0.01 per share. See notes to financial statements. 78 78 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Highlights - -------------------------------------------------------------------------------- Berger Select Fund For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 Year Ended December 31, 1997(1) (Unaudited) September 30, 1999 to September 30, 1998 -------------- -------------- -------------- Net asset value, beginning of period $ 19.17 $ 13.26 $ 10.00 -------------- -------------- -------------- From investment operations Net investment income (loss) (0.15) 0.01 0.07 Net realized and unrealized gains (losses) from investments and foreign currency transactions 12.79 6.80 3.19 -------------- -------------- -------------- Total from investment operations 12.64 6.81 3.26 -------------- -------------- -------------- Less dividends and distributions Dividends (from net investment income) (0.02) (0.05) -- Dividends (in excess of net investment income) -- (0.01) -- Distributions (from capital gains) (4.45) (0.84) -- -------------- -------------- -------------- Total dividends and distributions (4.47) (0.90) -- -------------- -------------- -------------- Net asset value, end of period $ 27.34 $ 19.17 $ 13.26 -------------- -------------- -------------- Total Return(2) 68.62% 53.06% 32.60% -------------- -------------- -------------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 164,673 $ 101,352 $ 41,571 Gross/Net expense ratio to average net assets(3) 1.23%(5) 1.29% 1.48%(5) Ratio of net income (loss) to average net assets (0.85)%(5) 0.27% 1.13%(5) Portfolio turnover rate(2) 60% 696% 1486%(4)
(1) Commencement of investment operations. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Portfolio turnover was greater than expected during this period due to active trading undertaken in response to market conditions at a time when the Fund's assets were still relatively small and before the Fund was fully invested. (5) Annualized. See notes to financial statements. 79 Financial Highlights 79 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Berger Small Company Growth Fund - Investor Shares For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998 1997 ---------- ---------- ---------- --------- Net asset value, beginning of period $ 4.86 $ 3.61 $ 5.33 $ 4.74 ---------- ---------- ---------- --------- From investment operations Net investment income (loss) (0.03) (0.00)(1) -- (0.05) Net realized and unrealized gains (losses) from investments and foreign currency transactions 4.15 1.95 (1.24) 0.84 ---------- ---------- ---------- --------- Total from investment operations 4.12 1.95 (1.24) 0.79 ---------- ---------- ---------- --------- Less dividends and distributions Dividends (from net investment income) -- -- -- -- Distributions (from capital gains) (1.28) (0.70) (0.48) (0.20) ---------- ---------- ---------- --------- Total dividends and distributions (1.28) (0.70) (0.48) (0.20) ---------- ---------- ---------- --------- Net asset value, end of period $ 7.70 $ 4.86 $ 3.61 $ 5.33 ---------- ---------- ---------- --------- Total Return(4) 90.96% 62.78% (24.70)% 17.68% ---------- ---------- ---------- --------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $1,511,595 $ 675,637 $ 561,741 $ 902,685 Net expense ratio to average net assets(2) 1.30%(3) 1.60% 1.48% 1.67% Ratio of net income (loss) to average net assets (0.98)%(3) (1.21)% (1.01)% (1.09)% Gross expense ratio to average net assets 1.30%(3) 1.60% 1.59% 1.67% Portfolio turnover rate(4) 52% 128% 97% 111% Years Ended September 30, 1996 1995 --------- --------- Net asset value, beginning of period $ 3.61 $ 2.74 --------- --------- From investment operations Net investment income (loss) (0.03) (0.02) Net realized and unrealized gains (losses) from investments and foreign currency transactions 1.16 0.89 --------- --------- Total from investment operations 1.13 0.87 --------- --------- Less dividends and distributions Dividends (from net investment income) -- (0.00)(1) Distributions (from capital gains) -- -- --------- --------- Total dividends and distributions -- -- --------- --------- Net asset value, end of period $ 4.74 $ 3.61 --------- --------- Total Return(4) 31.30% 31.90% --------- --------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 871,467 $ 522,667 Net expense ratio to average net assets(2) 1.68% 1.89% Ratio of net income (loss) to average net assets (0.97)% (0.74)% Gross expense ratio to average net assets 1.68% 1.89% Portfolio turnover rate(4) 91% 109%
(1) Amount represents less than $0.01 per share (2) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (3) Annualized. (4) Not annualized. Berger Small Company Growth Fund - Institutional Shares For a Share Outstanding Throughout the Period
Period from October 16, 1999(1) March 31, 2000 (Unaudited) -------------- Net asset value, beginning of period $ 4.77 -------------- From investment operations Net investment income (0.04) Net realized and unrealized gains (losses) from investments and foreign currency transactions 4.17 -------------- Total from investment operations 4.13 -------------- Less dividends and distributions Distributions (from capital gains) (1.30) -------------- Total dividends and distributions (1.30) -------------- Net asset value, end of period $ 7.60 -------------- Total Return(3) 89.48% -------------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 1,919 Gross/Net expense ratio to average net assets(4) 2.85%(2) Ratio of net income (loss) to average net assets (2.56)%(2) Portfolio turnover rate(3) 52%
(1) Commencement of investment operations for Institutional Shares. (2) Annualized. (3) Not annualized. (4) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. See notes to financial statements. 80 80 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Highlights - -------------------------------------------------------------------------------- Berger Small Cap Value Fund - Investor Shares For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 Years Ended September 30, February 14, 1997(1) (Unaudited) 1999 1998 to September 30, 1997 ------------ ---------- ---------- --------- Net asset value, beginning of period $ 20.94 $ 17.58 $ 22.28 $ 17.24 ------------ ---------- ---------- --------- From investment operations Net investment income (loss) 0.13 (0.20) 0.42 0.03 Net realized and unrealized gains (losses) from investments and foreign currency transactions 1.80 4.26 (2.58) 5.01 ------------ ---------- ---------- --------- Total from investment operations 1.93 4.24 (2.16) 5.04 ------------ ---------- ---------- --------- Less dividends and distributions Dividends (from net investment income) (0.20) (0.07) (0.17) -- Distributions (from capital gains) (0.23) (0.81) (2.37) -- ------------ ---------- ---------- --------- Total dividends and distributions (0.43) (0.88) (2.54) -- ------------ ---------- ---------- --------- Net asset value, end of period $ 22.44 $ 20.94 $ 17.58 $ 22.28 ------------ ---------- ---------- --------- Total Return(2) 9.37% 24.69% (10.98)% 29.23% ------------ ---------- ---------- --------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 583,616 $ 374,063 $ 108,465 $ 55,211 Gross/Net expense ratio to average net assets(3) 1.27%(4) 1.37% 1.56% 1.66%(4) Ratio of net income (loss) to average net assets 1.43%(4) 1.36% 0.87% 0.60%(4) Portfolio turnover rate(2) 35% 66% 69% 81%
(1) Commencement of investment operations for Investor Shares. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. Berger Small Cap Value Fund - Institutional Shares For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998 ------------ ------------ ------------ Net asset value, beginning of period $ 21.00 $ 17.63 $ 22.33 ------------ ------------ ------------ From investment operations Net investment income (loss) 0.12 0.04 0.45 Net realized and unrealized gains (losses) from investments and foreign currency transactions 1.84 4.28 (2.55) ------------ ------------ ------------ Total from investment operations 1.96 4.32 (2.10) ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) (0.24) (0.14) (0.23) Distributions (from capital gains) (0.23) (0.81) (2.37) ------------ ------------ ------------ Total dividends and distributions (0.47) (0.95) (2.60) ------------ ------------ ------------ Net asset value, end of period $ 22.49 $ 21.00 $ 17.63 ------------ ------------ ------------ Total Return(2) 9.50% 25.18% (10.65)% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 651,328 $ 414,347 $ 92,787 Gross/Net expense ratio to average net assets(3) 0.92%(1) 1.01% 1.19% Ratio of net income (loss) to average net assets 1.78%(1) 1.69% 1.26% Portfolio turnover rate(2) 35% 66% 69%
Period from January 1, 1997 to Years Ended December 31, September 30, 1997 1996 1995 ------------ ------------ ------------ Net asset value, beginning of period $ 16.48 $ 14.57 $ 12.75 ------------ ------------ ------------ From investment operations Net investment income (loss) 0.07 0.12 0.09 Net realized and unrealized gains (losses) from investments and foreign currency transactions 5.78 3.62 3.23 ------------ ------------ ------------ Total from investment operations 5.85 3.74 3.32 ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) 0.00 (0.11) (0.09) Distributions (from capital gains) 0.00 (1.72) (1.41) ------------ ------------ ------------ Total dividends and distributions 0.00 (1.83) (1.50) ------------ ------------ ------------ Net asset value, end of period $ 22.33 $ 16.48 $ 14.57 ------------ ------------ ------------ Total Return(2) 33.50% 25.58% 26.07% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 58,450 $ 36,041 $ 31,833 Gross/Net expense ratio to average net assets(3) 1.34%(1) 1.48% 1.64% Ratio of net income (loss) to average net assets 0.63%(1) 0.69% 0.64% Portfolio turnover rate(2) 81% 69% 90%
(1) Annualized. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. See notes to financial statements. 81 Financial Highlights 81 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Berger Mid Cap Growth Fund For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 Year Ended December 31, 1997(1) (Unaudited) September 30, 1999 to September 30, 1998 ------------ ------------ ------------ Net asset value, beginning of period $ 21.82 $ 10.93 $ 10.00 ------------ ------------ ------------ From investment operations Net investment income (loss) (0.11) (0.00)(5) -- Net realized and unrealized gains (losses) from investments and foreign currency transactions 20.52 11.10 0.93 ------------ ------------ ------------ Total from investment operations 20.41 11.10 0.93 ------------ ------------ ------------ Less dividends and distributions Distributions (from capital gains) (1.30) (0.21) -- ------------ ------------ ------------ Total dividends and distributions (1.30) (0.21) -- ------------ ------------ ------------ Net asset value, end of period $ 40.93 $ 21.82 $ 10.93 ------------ ------------ ------------ Total Return(2) 94.36% 102.76% 9.30% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 129,291 $ 25,550 $ 4,283 Net expense ratio to average net assets(3) 1.29%(4) 1.78% 2.00%(4) Ratio of net income (loss) to average net assets (0.84)%(4) (1.03)% (0.82)%(4) Gross expense ratio to average net assets 1.29%(4) 1.78% 2.46%(4) Portfolio turnover rate(2) 53% 178% 262%
(1) Commencement of investment operations. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Amount represents less than $0.01 per share. Berger Mid Cap Value Fund For a Share Outstanding Throughout the Period
Six Months Ended Period from March 31, 2000 Year Ended August 12, 1998(1) (Unaudited) September 30, 1999 to September 30, 1998 ------------ ------------ ------------ Net asset value, beginning of period $ 12.17 $ 9.33 $ 10.00 ------------ ------------ ------------ From investment operations Net investment income (loss) 0.03 0.07 0.03 Net realized and unrealized gains (losses) from investments and foreign currency transactions 2.75 2.83 (0.70) ------------ ------------ ------------ Total from investment operations 2.78 2.84 (0.67) ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) (0.04) (0.06) -- Dividends (from capital gains) (1.24) -- -- ------------ ------------ ------------ Total dividends and distributions (1.28) (0.06) -- ------------ ------------ ------------ Net asset value, end of period $ 13.67 $ 12.17 $ 9.33 ------------ ------------ ------------ Total Return(2) 24.21% 31.12% 6.70% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 24,628 $ 22,918 $ 19,710 Gross/Net expense ratio to average net assets(3) 1.68%(4) 1.62% 1.68%(4) Ratio of net income (loss) to average net assets 0.57%(4) 0.54% 2.30%(4) Portfolio turnover rate(2) 64% 154% 25%
(1) Commencement of investment operations. (2) Not annualized. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. See notes to financial statements. 82 82 Berger Funds o March 31, 2000 Combined Semi-Annual Report Financial Highlights - -------------------------------------------------------------------------------- Berger Growth Fund For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998 -------------- -------------- -------------- Net asset value, beginning of period $ 15.56 $ 11.99 $ 21.51 -------------- -------------- -------------- From investment operations Net investment income (loss) (0.08) (0.00)(2) -- Net realized and unrealized gains (losses) from investments and foreign currency transactions 10.14 4.55 (2.57) -------------- -------------- -------------- Total from investment operations 10.06 4.55 (2.57) -------------- -------------- -------------- Less dividends and distributions Distributions (from capital gains) (3.58) (0.98) (6.95) -------------- -------------- -------------- Total dividends and distributions (3.58) (0.98) (6.95) -------------- -------------- -------------- Net asset value, end of period $ 22.04 $ 15.56 $ 11.99 -------------- -------------- -------------- Total Return(5) 69.95% 38.96% (16.08)% -------------- -------------- -------------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 2,094,875 $ 1,333,794 $ 1,286,828 Gross/Net expense ratio to average net assets(3) 1.11%(4) 1.36% 1.38% Ratio of net income (loss) to average net assets (0.81)%(4) (0.38)% (0.38)% Portfolio turnover rate(5) 55% 274% 280% Years Ended September 30, 1997(1) 1996(1) 1995(1) -------------- -------------- -------------- Net asset value, beginning of period $ 19.64 $ 18.89 $ 15.96 -------------- -------------- -------------- From investment operations Net investment income (loss) (0.09) (0.08) (0.04) Net realized and unrealized gains (losses) from investments and foreign currency transactions 4.73 1.76 2.97 -------------- -------------- -------------- Total from investment operations 4.64 1.68 2.93 -------------- -------------- -------------- Less dividends and distributions Distributions (from capital gains) (2,77) (0.93) -- -------------- -------------- -------------- Total dividends and distributions (2.77) (0.93) -- -------------- -------------- -------------- Net asset value, end of period $ 21.51 $ 19.64 $ 18.89 -------------- -------------- -------------- Total Return(5) 26.50% 9.36% 18.36% -------------- -------------- -------------- Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 1,889,048 $ 2,012,706 $ 2,205,678 Gross/Net expense ratio to average net assets(3) 1.41% 1.42% 1.49% Ratio of net income (loss) to average net assets (0.40)% (0.43)% (0.28)% Portfolio turnover rate(5) 200% 122% 114%
(1) Per share calculations for the period were based on average shares outstanding. (2) Amount represents less than $0.01 per share. (3) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (4) Annualized. (5) Not annualized. Berger Growth and Income Fund For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998 ------------ ------------ ------------ Net asset value, beginning of period $ 15.32 $ 13.60 $ 16.72 ------------ ------------ ------------ From investment operations Net investment income (loss) (0.03) (0.00)(3) 0.04 Net realized and unrealized gains (losses) from investments and foreign currency transactions 9.12 4.53 (0.30) ------------ ------------ ------------ Total from investment operations 9.09 4.53 (0.26) ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) -- -- (0.03) Dividends (in excess of net investment income) -- (0.01) (0.01) Distributions (from capital gains) (2.18) (2.80) (2.82) ------------ ------------ ------------ Total dividends and distributions (2.18) (2.81) (2.86) ------------ ------------ ------------ Net asset value, end of period $ 22.23 $ 15.32 $ 13.60 ------------ ------------ ------------ Total Return(5) 62.07% 38.67% (1.60)% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 669,559 $ 379,356 $ 301,330 Gross/Net expense ratio to average net assets(1) 1.18%(4) 1.35% 1.44% Ratio of net income (loss) to average net assets (0.34)%(4) (0.22)% 0.25% Portfolio turnover rate(5) 42% 173% 417%(2) Years Ended September 30, 1997 1996 1995 ------------ ------------ ------------ Net asset value, beginning of period $ 14.06 $ 12.89 $ 11.48 ------------ ------------ ------------ From investment operations Net investment income (loss) 0.14 0.20 0.16 Net realized and unrealized gains (losses) from investments and foreign currency transactions 4.28 1.17 1.43 ------------ ------------ ------------ Total from investment operations 4.42 1.37 1.59 ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) (0.13) (0.20) (0.18) Dividends (in excess of net investment income) -- -- -- Distributions (from capital gains) (1.63) -- -- ------------ ------------ ------------ Total dividends and distributions (1.76) (0.20) (0.18) ------------ ------------ ------------ Net asset value, end of period $ 16.72 $ 14.06 $ 12.89 ------------ ------------ ------------ Total Return(5) 34.56% 10.66% 14.05% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 357,023 $ 315,538 $ 354.396 Gross/Net expense ratio to average net assets(1) 1.51% 1.56% 1.64% Ratio of net income (loss) to average net assets 0.87% 1.39% 1.33% Portfolio turnover rate(5) 173% 112% 85%
(1) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (2) Portfolio turnover was greater than expected during this period due to active trading undertaken in response to market conditions that existed at the time. (3) Amount represents less than $0.01 per share. (4) Annualized. (5) Not annualized. See notes to financial statements. 83 Financial Highlights 83 Berger Funds o March 31, 2000 Combined Semi-Annual Report - -------------------------------------------------------------------------------- Berger Balanced Fund For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998(1) ------------ ------------ ------------ Net asset value, beginning of period $ 16.62 $ 13.28 $ 10.00 ------------ ------------ ------------ From investment operations Net investment income (loss) 0.11 0.23 0.22 Net realized and unrealized gains (losses) from investments and foreign currency transactions 5.83 4.69 5.17 ------------ ------------ ------------ Total from investment operations 5.94 4.92 5.39 ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) (0.11) (0.23) (0.21) Distributions (from capital gains) (1.82) (1.35) (1.90) ------------ ------------ ------------ Total dividends and distributions (1.93) (1.58) (2.11) ------------ ------------ ------------ Net asset value, end of period $ 20.63 $ 16.62 $ 13.28 ------------ ------------ ------------ Total Return(5) 37.33% 39.41% 56.77% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 187,546 $ 122,766 $ 30,721 Net expense ratio to average net assets(2) 1.16%(4) 1.23% 1.50% Ratio of net income (loss) to average net assets 1.22%(4) 1.63% 1.81% Gross expense ratio to average net assets 1.16%(4) 1.23% 1.57% Portfolio turnover rate(5) 63% 227% 658%(3)
(1) The Fund had no financial highlights for the one day of operations during the period ended September 30, 1997. (2) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (3) Portfolio turnover was greater than expected during this period due to higher than normal trading activity undertaken in response to market conditions at a time when the Fund's assets were still relatively small and before the Fund was fully invested. (4) Annualized. (5) Not annualized. Berger/BIAM International Fund For a Share Outstanding Throughout the Period
Six Months Ended March 31, 2000 Years Ended September 30, (Unaudited) 1999 1998 ------------ ------------ ------------ Net asset value, beginning of period $ 12.51 $ 10.06 $ 11.46 ------------ ------------ ------------ From investment operations Net investment income (loss) (0.04) (0.07) 0.50 Net realized and unrealized gains (losses) from investments and foreign currency transactions 2.71 3.01 (1.46) ------------ ------------ ------------ Total from investment operations 2.67 2.94 (0.96) ------------ ------------ ------------ Less dividends and distributions Dividends (from net investment income) -- (0.47) (0.06) Distributions (from capital gains) -- (0.02) (0.38) ------------ ------------ ------------ Total dividends and distributions -- (0.49) (0.44) ------------ ------------ ------------ Net asset value, end of period $ 15.18 $ 12.51 $ 10.06 ------------ ------------ ------------ Total Return(3) 21.34% 29.64% (8.46)% ------------ ------------ ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 28,672 $ 23,014 $ 16,515 Net expense ratio to average net assets(4,5) 1.77%(2) 1.76% 1.80% Ratio of net income (loss) to average net assets (0.64)%(2) (0.01)% 2.20% Gross expense ratio to average net assets(5) 1.77%(2) 1.77% 1.83% Portfolio turnover rate(3,6) 17% 16% 17% Period from November 7, 1996(1) to September 30, 1997 ------------ Net asset value, beginning of period $ 10.00 ------------ From investment operations Net investment income (loss) 0.05 Net realized and unrealized gains (losses) from investments and foreign currency transactions 1.41 ------------ Total from investment operations 1.46 ------------ Less dividends and distributions Dividends (from net investment income) -- Distributions (from capital gains) -- ------------ Total dividends and distributions -- ------------ Net asset value, end of period $ 11.46 ------------ Total Return(3) 14.60% ------------ Ratios/Supplemental Data: Net assets, end of period (in thousands) $ 18,673 Net expense ratio to average net assets(4,5) 1.90%(2) Ratio of net income (loss) to average net assets 0.61%(2) Gross expense ratio to average net assets(5) 1.99%(2) Portfolio turnover rate(3,6) 17%
(1) Commencement of investment operations. (2) Annualized. (3) Not annualized. (4) Net expenses represent gross expenses reduced by fees waived and/or reimbursed by the Advisor. (5) Reflects the Fund's expenses plus the Fund's pro rata share of the Portfolio's expenses. (6) Represents the portfolio turnover rate of the Portfolio. All of the investable assets of the Fund are invested in the Portfolio. See notes to financial statements. 84 Shareholders with questions should write to: PRESORTED STANDARD Berger Funds, c/o Berger LLC U.S. POSTAGE PAID [BERGER FUNDS LOGO] P.O. Box 5005,Denver,CO 80217 CHICAGO, IL or call 800.551.5849. PERMIT NO. 941 Visit our Web site at bergerfunds.com.
210 University Blvd Denver, CO 80206 COMSAR -----END PRIVACY-ENHANCED MESSAGE-----