NORTHWEST
AIRLINES
- -------------------------
WORLDPERKS (REGISTRATION MARK)
INVESTORMILES (SERVICE MARK)
[GRAPHIC OMITTED]
SEMIANNUAL
REPORT
JUNE 30, 1999
WARBURG PINCUS
WORLDPERKS MONEY MARKET FUND
(BOX)
WARBURG PINCUS
WORLDPERKS TAX FREE MONEY MARKET FUND
[GRAPHIC OMITTED]
More complete information about the funds, including charges and expenses, is
provided in the PROSPECTUS, which must precede or accompany this document and
which should be read carefully before investing. You may obtain additional
copies by calling 800-WARBURG(800-927-2874) or by writing to Warburg Pincus
WorldPerks Funds, P.O. Box 9030, Boston, MA 02205-9030.
Warburg Pincus Funds is a division of Credit Suisse Asset Management, LLC.
WARBURG PINCUS FUNDS (LOGO)
[GRAPHIC OMITTED]
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATOR MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
PERFORMANCE DATA REPRESENT PAST PERFORMANCE AND ARE NOT A GUARANTEE OF FUTURE
PERFORMANCE. THE FUNDS' YIELDS WILL FLUCTUATE. EACH FUND SEEKS TO MAINTAIN A
CONSTANT NET ASSET VALUE OF $1 PER SHARE; THERE CAN BE NO ASSURANCE THAT IT CAN
DO SO ON A CONTINUING BASIS. AN INVESTMENT IN EACH FUND IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF JUNE 30, 1999; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999
- --------------------------------------------------------------------------------
AUGUST 12, 1999
Dear Shareholder:
Moving into 1999, U.S. economic prospects appeared strong, with consumer
confidence seemingly as high as the stock market. This reflected optimism over
the domestic economy and a belief that the global economic crisis was abating.
The money market yield curve became dramatically steeper over the course of
the period, as the market realized that the Federal Reserve would most likely
reverse its earlier accommodative stance. The Fed adopted a tightening bias at
its May meeting and a 25 basis-point interest-rate increase at its June 30
meeting. These moves were preceded by sharply higher interest rates across the
short-term yield curve.
The annualized yield for Warburg Pincus WorldPerks Money Market Fund for the
seven-day period ended June 30, 1999 was 4.24% (without waivers and/or
reimbursements, the fund's annualized seven-day yield would have been 3.38%).
Net assets steadily increased throughout the period and totaled $15.0 million on
June 30, 1999, compared to $12.9 million on December 31, 1998. The fund's
average weighted maturity on June 30 was 48 days, vs. 17 days at the end of
December. This reflected the increasingly attractive rate advantage we saw at
the longer end of the money-market yield curve. We remain positioned to further
extend the fund's maturity as yield opportunities arise.
Going forward, the fund will continue to emphasize high-quality securities in
an effort to provide competitive returns consistent with preservation of capital
and liquidity. We are committed to providing both an awarding investment
experience to our shareholders and an attractive, convenient means of
accumulating WorldPerks* Bonus Miles, which can be used for free and discounted
award travel on Northwest Airlines, Continental Airlines, KLM Royal Dutch
Airlines and other WorldPerks partner members. We appreciate your continued
support and investment in the fund.
Eugene L. Podsiadlo BlackRock Institutional Management Corporation
President Sub-Investment Manager
Warburg Pincus
WorldPerks Fund
- -----------------
*WorldPerks is a registered trademark of Northwest Airlines, Inc.
1
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999
- --------------------------------------------------------------------------------
August 12, 1999
Dear Shareholder:
During the first half of 1999, U.S. economic conditions were favorable. The
trend of consistent growth continued while inflation remained well-contained.
Against this positive backdrop, municipal money market funds, in general,
experienced some growth in assets but were not immune to volatility. Underlying
market fundamentals (e.g., strong investor demand and limited issuance) put
pressure on interest rates during the period. Often, the municipal money-market
yield curve was inverted, with longer-date issues offering lower yields than
those found on shorter-dated securities.
Assets in Warburg Pincus WorldPerks Tax Free Money Market Fund increased by
about 15% from December 31, 1998 to June 30, 1999. Due to ongoing interest-rate
volatility, we directed the bulk of the fund's new assets into variable-rate
demand notes (whose yields traded in a range of 1.2% to 4.5% over the first half
of 1999). That notwithstanding, we found occasional opportunities to purchase
longer-dated, fixed-coupon paper. As of June 30, the fund's composition included
small positions in general market notes, put bonds and tax-exempt commercial
paper that, at time of purchase, offered positive yield value vs. variable-rate
demand notes.
On June 30, 1999, the fund's average weighted maturity was 31 days and its
annualized seven-day yield was 2.79% (without waivers and/or reimbursements, the
fund's annualized seven-day yield would have been 1.79%).
Going forward, the fund will continue to emphasize high-quality municipal
securities in an effort to provide competitive after-tax returns consistent with
preservation of capital and liquidity. We are committed to providing both an
awarding investment experience to our shareholders and an attractive, convenient
means of accumulating WorldPerks* Bonus Miles, which can be used for free and
discounted award travel on Northwest Airlines, Continental Airlines, KLM Royal
Dutch Airlines and other WorldPerks partner members. We appreciate your
continued support and investment in the fund.
Eugene L. Podsiadlo BlackRock Institutional Management Corporation
President Sub-Investment Manager
Warburg Pincus
WorldPerks Fund
- -----------------
*WorldPerks is a registered trademark of Northwest Airlines, Inc.
THE FUND'S INCOME MAY BE SUBJECT TO STATE AND CITY TAXES AND, FOR CERTAIN
INVESTORS, THE FEDERAL ALTERNATIVE MINIMUM TAX.
2
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET FUND
STATEMENT OF NET ASSETS--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- ---------------- ---------- -------- ------
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT (12.3%)
DOMESTIC CERTIFICATES OF DEPOSIT (4.0%)
$ 600,000 Wilmington Trust (A-1, P-1) 01/14/00 5.070 $ 600,000
-----------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT (8.3%)
150,000 Bank of Montreal CHIC (A-1+, P-1) 05/10/00 5.180 149,950
600,000 Bank of Nova Scotia (NR, NR) 07/09/99 6.256 600,135
200,000 Cibc NY Yankee (A-1+, P-1) 07/28/99 4.880 200,004
300,000 Cibc Yankee Cd (A-1+, P-1) 03/15/00 5.180 300,014
-----------
1,250,103
TOTAL CERTIFICATES OF DEPOSIT
(Cost $1,850,103) 1,850,103
-----------
COMMERCIAL PAPER (51.7%)
ASSET-BACKED SECURITIES (18.4%)
600,000 Barton Capital Corp. (A-1+, P-1) 07/13/99 4.810 599,038
600,000 Dakota Certificates (A-1+, P-1) 07/07/99 4.810 599,519
600,000 Delaware Funding Corp. (A-1+, P-1) 07/21/99 4.800 598,400
200,000 Enterprise (A-1+, P-1) 07/26/99 4.810 199,332
300,000 Preferred Receivables Funding Corp. (A-1, P-1) 08/11/99 4.960 298,305
459,000 Windmill Funding Corp. (A-1+, P-1) 07/19/99 4.820 457,894
-----------
2,752,488
-----------
COMMUNICATIONS EQUIPMENT, NEC (3.9%)
600,000 Alcatel Alsthom Inc. (A-1, P-1) 08/19/99 4.870 596,023
-----------
MOTOR VEHICLES & CAR BODIES (1.5%)
225,000 Daimler-Benz North America Corp. (A-1, P-1) 07/15/99 4.900 224,571
-----------
NEWSPAPER: PUBLISHING OR PUBLISH & PRINTING (1.6%)
250,000 Knight-Ridder, Inc. (A-1, NR) 08/17/99 5.070 248,345
-----------
OIL (9.9%)
500,000 AB SPIN TAB SWEDMORTGAGE (NR, P-1) 09/07/99 4.880 495,391
200,000 Abbey National North America (A-1+, P-1) 07/08/99 4.850 199,811
200,000 Abbey National North America (A-1+, P-1) 01/31/00 4.920 194,151
600,000 San Paolo U.S. (A-1, P-1) 08/10/99 4.830 596,780
-----------
1,486,133
-----------
PERSONAL CREDIT INSTITUTIONS (3.9%)
600,000 Countrywide Funding Corp. (A-1, NR) 08/20/99 4.930 595,892
-----------
PETROLEUM REFINING (1.9%)
300,000 Repsol International (A-1+, P-1) 10/15/99 4.820 295,742
-----------
SECURITY BROKERS, DEALERS & FLOTATION COS. (2.0%)
311,000 Merrill Lynch & Co. Inc. (A-1+, P-1) 07/16/99 4.900 310,365
-----------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS (5.3%)
500,000 CIT Group Holdings Inc. (A-1, P-1) 08/17/99 4.830 496,847
300,000 General Electric Capital Corp. (A-1+, P-1) 07/16/99 4.900 299,388
-----------
796,235
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- ---------------- ---------- -------- ------
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
TELEPHONE COMMUNICATIONS (3.3%)
$500,000 AT&T Corp. (A-1+, P-1) 08/17/99 4.790 $ 496,873
-----------
TOTAL COMMERCIAL PAPER
(Cost $7,802,667) 7,802,667
-----------
SHORT TERM INVESTMENTS (6.7%)
1,000,000 Repurchase Agreement with Morgan
Stanley & Co. Inc. dated 6/30/99
at 6.700% to be repurchased at
$1,000,186 on 07/01/99.
(Collaterized by $1,007,057 U.S.
Treasury Note at 7.750%, due
11/30/99. Market value of
collateral is $1,020,782.)
(Cost $1,000,000) 07/01/99 5.900 1,000,000
-----------
VARIABLE RATE DEMAND NOTES (28.5%)
400,000 American Honda Finance Corp. Honda
Motor Company, Ltd. (NR, C) 08/13/99 4.950 399,931
500,000 Bayerische Hypo-Und Vereinsbank A-1+, P-1) 07/14/99 4.810 499,764
600,000 Goldman Sachs Group (A-1, B) 07/07/99 5.200 600,585
500,000 Province of Ontario (NR, A-3) 08/17/99 5.000 500,022
500,000 Smm Trust 1999-E NR, NR 07/06/99 4.983 500,000
150,000 Smm Trust 1999-I NR, NR 08/26/99 5.040 150,000
500,000 Texaco Capital, Inc. (A1, B) 08/04/99 4.845 499,587
600,000 U.S. Bancorp (A1, C) 07/27/99 4.979 600,440
500,000 Wells Fargo & Co. (NR, B) 09/30/99 4.880 499,684
-----------
TOTAL VARIABLE RATE DEMAND NOTES
(Cost $4,250,013) 4,250,013
-----------
TOTAL INVESTMENTS ATVALUE (99.2%) (Cost $14,902,783*) 14,902,783
-----------
OTHER ASSETS IN EXCESS OF LIABILITIES (0.8%) 123,526
-----------
NET ASSETS (100.0%) (applicable to 15,026,348 shares) $15,026,309
===========
NET ASSETS VALUE, offering and redemption price
per share ($15,026,309 (DIVIDE) 15,026,348) $ 1.00
===========
</TABLE>
INVESTMENT ABBREVIATIONS
NR = Not Rated
- --------------------------------------------------------------------------------
* Also cost for federal income tax purposes:
See Accompanying Notes to Financial Statements.
4
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
----------------- ----------- --------------------------
(CUMULATIVE)
1-7 $ 2,700,000 18.1% 18.1%
8-14 1,900,000 12.7 30.8
15-30 2,895,000 19.4 50.2
31-60 4,900,000 32.8 83.0
61-90 500,000 3.3 86.3
91-120 800,000 5.4 91.7
121-150 0 0.0 91.7
Over 150 1,250,000 8.3 100.0
------------ ------
$14,945,000 100.0%
============ =====
Average Weighted Maturity -- 48.13 days
See Accompanying Notes to Financial Statements.
5
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS -- JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE
---- ---------------- ---------- -------- ------
<S> <C> <C> <C> <C>
MUNICIPAL OBLIGATIONS (100.1%)
ALASKA (4.0%)
$ 500,000 Valdez, Alaska, Marine Terminal Revenue
Bonds (Arco Transportation Project)
Series A (Cost $500,000) (A-1, P-1) 07/16/99 3.200 $ 500,000
-----------
GEORGIA (4.7%)
100,000 Burke County Development Authority
Pollution Control Revenue Bonds
(Georgia Power Company Plant Vogtle
Project) Series 1994 VRDN (A-1, VMIG-1) 07/01/99 3.500 100,000
500,000 Burke County Development Authority
Pollution Control Revenue Bonds
(Oglethorpe Power Corp. Project)
Series 1994A VRDN
(FGIC Insurance LOC) (A-1+, VMIG-1) 07/07/99 3.300 500,000
-----------
TOTAL GEORGIA (Cost $600,000) 600,000
-----------
ILLINOIS (0.8%)
100,000 City of Chicago General Obligation
Tender Note Series 1992B
(Cost $100,000) (A-1+, VMIG-1) 07/07/99 3.500 100,000
-----------
INDIANA (4.0%)
500,000 Indiana State Development Financial
Authority Pollution Control Revenue
Bonds (Canadian Imperial Bank LOC)
(Cost $100,000) (A-1+, VMIG-1) 07/07/99 3.500 500,000
-----------
IOWA (4.0%)
500,000 Iowa Finance Authority Solid Waste
Dispo Solid Waste Disposal Revenue
Bonds (Cedar River Paper Co. Project)
(Bank of Nova Scotia LOC)
(Cost $500,000) (A-1+, P-1) 07/01/99 3.800 500,000
-----------
LOUISIANA (7.1%)
500,000 Louisiana Offshore Terminal Authority
First Stage 1991 A (Loop Inc.) VRDN
(Morgan Guaranty LOC) (A-1+, VMIG-1) 07/07/99 3.450 500,000
400,000 Louisiana Public Facilities Authority,
Hospital Revenue, Willis-Knighton
Medical Center (AMBAC Insured)
(final maturity 9/1/27) (A-1+, VMIG-1) 07/07/99 3.550 400,000
-----------
TOTAL LOUISIANA (Cost $900,000) 900,000
-----------
MARYLAND (4.0%)
500,000 Maryland Health & Higher Ed. Fac.
Authority Revenue Bonds (Catholic
Health Initiatives)(Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.500 500,000
-----------
MICHIGAN (1.6%)
200,000 Midland County Economic Development
Corp. (Dow Chemical Company)
Series B VRDN (Cost $200,000) (A-1, P-1) 07/01/99 3.750 200,000
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE
---- ---------------- ---------- -------- ------
<S> <C> <C> <C> <C>
MISSISSIPPI (4.0%
$500,000 Mississippi Hospital Equipment &
Facilities Authority Revenue Bond
(North Mississippi Health Services)
Series 1997 (Westdeutsche Landesbank
Girozentrale LOC
(Cost $500,000) (A-1+, VMIG-1) 10/08/99 3.200 $ 500,000
-----------
MISSOURI (3.9%
500,000 Kansas City, Industrial Development
Authority Multifamily Housing Revenue
Ref. Bonds (Sleepy Hollow Apts.
Project) (Federal National Mortgage
Assoc. LOC)(Cost $500,000) (A-1+, NR) 07/07/99 3.500 500,000
-----------
NEVADA (3.9%)
500,000 Clark County Airport Improvement
Revenue Series 1993A DN (National
Westminster LOC)(Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.300 500,000
-----------
NEW JERSEY (5.5%
700,000 New Jersey Economic Development
Authority Water Facilities Revenue
Bond (United Water New Jersey Inc.
Project) Series 1996A VRDN (AMBAC
Insurance) (Cost $700,000) (A-1, VMIG-1) 07/01/99 3.100 700,000
-----------
NEW YORK (3.9%)
100,000 City of New York General Obligation
Series A VRDN (Morgan Guaranty Bank
LOC) (A-1+, VMIG-1) 07/01/99 4.000 100,000
300,000 New York State Energy Research &
Development Authority Pollution
Control Revenue Bond (Niagara Mohawk
Power) Series A VRDN (Toronto
Dominion LOC) (A-1+, VMIG-1) 07/01/99 3.500 300,000
100,000 New York State Job Development
Authority Series B (LOC Fuji Bank)
VRDN (Fuji Bank LOC) (A-1+, VMIG-1) 07/01/99 3.500 100,000
-----------
TOTAL NEW YORK (Cost $500,000) 500,000
-----------
NORTH CAROLINA (7.9%)
500,000 Charlotte Airport Refunding RB
Series 1997A VRDN
(MBIA Insurance LOC) (A-1+, VMIG-1) 07/07/99 3.400 500,000
500,000 Mecklenburg County General
Obligation Series 1996B VRDN (A-1+, VMIG-1) 07/07/99 3.700 500,000
-----------
TOTAL NORTH CAROLINA (Cost $1,000,000) 1,000,000
-----------
OHIO (8.7%)
250,000 Butler County Ohio Bond
Anticipation Notes (NR, MIG-1) 10/21/99 3.510 250,270
250,000 Butler County Ohio Bond
Anticipation Notes (NR, MIG-1) 03/16/00 3.670 250,809
500,000 Ohio State Building Authority
Series A 10/01/99 4.000 501,030
100,000 Ohio Water Development Authority
Pollution Control Revenue Bonds
(Cleveland Electric Co. Project)
Series 1997B VRDN (FNB Chicago LOC) (A-1+, P-1) 07/07/99 3.650 100,000
-----------
TOTAL OHIO (Cost $1,102,109) 1,102,109
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE%(DAGGER) VALUE
---- ---------------- ---------- -------- ------
<S> <C> <C> <C> <C>
PENNSYLVANIA (7.1%)
$ 100,000 Pennsylvania Higher Education
Assistance Agency Student Loan
Revenue Bond Series 1988A VRDN
(Sallie Mae LOC) (A-1+, VMIG-1) 07/07/99 3.600 $ 100,000
300,000 Pennsylvania State Higher Education
Revenue Bond (University of
Pennsylvania Health Services
Project) Series C
(LOC Credit Suisse ) (A-1+, VMIG-1) 07/07/99 3.700 300,000
500,000 Philadelphia, Pennsylvania Water &
Waste Revenue Bond Series 1997B (A-1+, VMIG-1) 07/07/99 3.300 500,000
-----------
TOTAL PENNSYLVANIA (Cost $900,000) 900,000
-----------
RHODE ISLAND (3.9%)
500,000 Rhode Island, State and Providence
Plan. Multi-Modal General Obligation
Bonds (Landesbank Hessen-Thuringen
LOC) (Cost $500,000) (A-1+C, VMIG-1) 07/07/99 3.400 500,000
-----------
SOUTH CAROLINA (3.9%)
500,000 York County, South Carolina Pollution
Control Revenue Bond
(Cost $500,000) (A-1+, VMIG-1) 08/15/99 2.750 500,000
-----------
TENNESSE (3.2%)
400,000 Memphis, TN General Improvement
Refunding Revenue Bond VRDN
(Cost $400,000) (A-1+, VMIG-1) 07/07/99 3.550 400,000
-----------
VIRGINIA (3.8%)
485,000 Alexandria IDA RB (Super & Curr
Project) Series 1997 VRDN (First
Union National Bank of North
Carolina LOC) (Cost $485,000) (A-1, NR) 07/07/99 3.700 485,000
-----------
WASHINGTON (2.4%)
300,000 Washington State Public Power Supply
System Nuclear Project No. 1 Revenue
Bonds Series 1993 (Cost $300,000) (A-1+, VMIG-1) 07/07/99 3.350 300,000
-----------
WEST VIRGINIA (3.9%)
500,000 Marion County, West Virginia Solid
Waste Disposal Facilities Revenue
Bond (Grant Town Project) Series D /
(National Westminster Bank PLC LOC)
(Cost $500,000) (A-1+, VMIG-1) 07/07/99 3.600 500,000
-----------
WISCONSIN (3.9%)
500,000 Oak Creek Pollution Control Revenue
Bond (Wisconsin Electric Power Co.
Project) VRDN (Cost $500,000) (NR, P-1) 07/07/99 3.450 500,000
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
------
<S> <C>
TOTAL INVESTMENTS AT VALUE (100.1%) (Cost $12,687,109*) $12,687,109
-----------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.1%) (18,033)
-----------
NET ASSETS (100.0%) (applicable to 12,669,076 shares) $12,669,076
===========
NET ASSETS VALUE, offering and redemption price per share
($12,669,076 (DIVIDE) 12,669,076) $ 1.00
===========
</TABLE>
INVESTMENT ABBREVIATIONS
LOC = Letter of Credit
NR = Not Rated
VRDN = Variable Rate Demand Note
- --------------------------------------------------------------------------------
(DAGGER) The interest rate shown is the rate as of June 30, 1999 and the
maturity date shown is the longer of the next interest readjustment
date or thedate the principal amount owed can be recovered through
demand.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
MATURITY SCHEDULE OF PORTFOLIO--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
---------------- -------- ------------------------
(CUMULATIVE)
1-7 $ 9,685,000 76.4% 76.4%
8-14 0 0.0 76.4
15-30 500,000 3.9 80.3
31-60 500,000 3.9 84.2
61-90 0 0.0 84.2
91-120 1,250,000 9.9 94.1
121-150 0 0.0 94.1
Over 150 750,000 5.9 100.0
---------- -----
$12,685,000 100.0%
=========== =====
Average Weighted Maturity -- 31.48 days
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLD PERKS TAX FREE MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDPERKS WORLDPERKS TAX FREE
MONEY MARKET FUND MONEY MARKET FUND
----------------- -----------------
<S> <C> <C>
INVESTMENT INCOME $316,250 $168,990
-------- --------
EXPENSES:
Investment advisory 25,634 22,137
Administrative Services 13,178 11,430
Distribution fees 16,021 13,835
Registration 11,804 11,804
Audit 9,837 9,837
Blue Sky 9,837 9,837
Legal 9,837 9,837
Custodian 6,000 6,001
Transfer agent 2,950 2,950
Directors 2,460 2,460
Printing 1,969 1,969
Miscelleneous 1,968 1,968
-------- --------
111,495 104,065
Less: fees waived, expenses reimbursed
and transfer agent fee offsets (62,790) (62,005)
-------- --------
Total expenses 48,705 42,060
-------- --------
Net investment income 267,545 126,930
-------- --------
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS
Net realized loss from security transactions (151) 0
-------- --------
Net increase in net assets resulting
from operations $267,394 $126,930
-------- --------
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WORLDPERKS WORLDPERKS TAX FREE
MONEY MARKET FUND MONEY MARKET FUND
--------------------------------- -------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998* (UNAUDITED) 1998*
-------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 267,545 $ 135,178 $ 126,930 $ 72,430
Net realized gain from
security transactions (151) 112 0 0
----------- ----------- ----------- -----------
Net increase in net assets
resulting from operations 267,394 135,290 126,930 72,430
----------- ----------- ----------- -----------
FROM DISTRIBUTIONS:
Dividends from net
investment income (267,545) (135,178) (126,930) (72,430)
----------- ----------- ----------- -----------
FROM CAPITAL SHARE TRANSACTIONS
(AT $1 PER SHARE):
Proceeds from sale of shares 11,236,516 19,852,748 6,325,594 13,444,874
Reinvested dividends 254,841 121,553 115,760 62,708
Net asset value of shares
redeemed (9,390,403) (7,148,907) (4,360,838) (3,019,022)
----------- ----------- ----------- -----------
Net increase in net assets from
capital share transactions 2,100,954 12,825,394 2,080,516 10,488,560
----------- ----------- ----------- -----------
Net increase in net assets 2,100,803 13,825,506 2,080,516 10,488,560
NET ASSETS:
Beginning of period 12,925,506 100,000 10,588,560 100,000
----------- ----------- ----------- -----------
End of period $15,026,309 $12,925,506 $12,669,076 $10,588,560
=========== =========== =========== ===========
<FN>
* For the period October 1, 1998 (Commencement of Operations) through December
31, 1998.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
JUNE 30, 1999
PERIOD ENDED: (UNAUDITED) 1998 1
----------- ------
<S> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 1.00 $ 1.00
------ ------
INVESTMENT ACTIVITIES:
Net investment income .0207 .0115
------ ------
DISTRIBUTIONS:
From net investment income (.0207) (.0115)
------ ------
NET ASSETS VALUE, END OF PERIOD $ 1.00 $ 1.00
====== ======
Total return 2.09%2 1.15%2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $15,026 $12,926
Ratios of expenses to average net assets .76%3,4 .58%3,4
Ratio of net income to average net assets 4.17%4 5.13%4
Decrease reflected in above operating
expense ratios due to waivers/reimbursements .98%4 1.24%4
<FN>
- --------------------------------------------------------------------------------
1 For the period October 1, 1998 (Commencement of Operations) through December 31, 1998.
2 Non-annualized.
3 Interest earned on uninvested cash balances is used to offset portons of the
transfer agent expense. These arrangements had no effect on the fund's expense ratio.
4 Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS WORLDPERKS TAX FREE MONEY MARKET FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
JUNE 30, 1999
PERIOD ENDED: (UNAUDITED) 1998 1
----------- ------
<S> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 1.00 $ 1.00
------ ------
INVESTMENT ACTIVITIES:
Net investment income .0114 .0066
------ ------
DISTRIBUTIONS:
From net investment income (.0114) (.0066)
------ ------
NET ASSETS VALUE, END OF PERIOD $ 1.00 $ 1.00
====== ======
Total return 1.14%2 .66%2
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $12,669 $10,589
Ratios of expenses to average net assets .76%3,4 .58%3,4
Ratio of net income to average net assets 2.29%4 2.91%4
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 1.12%4 1.31%4
<FN>
- --------------------------------------------------------------------------------
1 For the period October 1, 1998 (Commencement of Operations) through December 31, 1998.
2 Non-annualized.
3 Interest earned on uninvested cash balances is used to offset portons of the
transfer agent expense. These arrangements had no effect on the fund's expense ratio.
4 Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus WorldPerks Money Market Fund and the Warburg Pincus
WorldPerks Tax Free Money Market Fund are registered under the Investment
Company Act of 1940, as amended (1940 Act), as diversified, open-end management
investment companies.
Investment objectives for each fund are as follows: the WorldPerks Money
Market Fund is designed to provide investors with high current income consistent
with preservation of capital and liquidity; and the WorldPerks Tax Free Money
Market Fund is designed to provide investors with as high a level of current
income that is exempt from federal personal income taxes as is consistent with
preservation of capital and liquidity.
The net asset value of each fund is determined twice daily as of noon and
the close of regular trading on the New York Stock Exchange. Each fund's
investments are valued under the amortized cost method, which approximates
market value, unless a fund's Board of Directors determines that using this
method would not reflect an investment's value. Amortized cost involves valuing
a fund holding initially at its cost and then assumes a constant amortization to
maturity of any discount or premium. The amortized cost method ignores any
impact of fluctuating interest rates.
Security transactions are accounted for on a trade date basis. Interest
income is recorded on the accrual basis. The cost of investments sold is
determined by use of the specific identification method for both financial
reporting and income tax purposes.
Dividends from net investment income are declared daily and paid monthly.
Distributions of net realized capital gains, if any, are declared and paid
annually, although the WorldPerks Money Market Fund may declare and pay
short-term capital gains, if any, periodically as the Board of Directors
determines. To the extent that a net realized capital gain can be reduced by a
capital loss carryover, such gain will not be distributed. Income and capital
gain distributions are determined in accordance with federal income tax
regulations which may differ from generally accepted accounting principles.
No provision is made for federal income taxes as it is each fund's intention
to continue to qualify for and elect the tax treatment applicable to regulated
investment companies under the Internal Revenue Code of 1986, as amended, and
make the requisite distributions to its shareholders which will be sufficient to
relieve it from federal income and excise taxes.
15
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
Each fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, a fund acquires security subject to an
obligation of the seller to repurchase. Securities pledged as collateral for
repurchase agreements are held by the fund's custodian bank until the agreements
mature. Each agreement requires that the market value of the collateral be
sufficient to cover payments of interest and principal; however, in the event of
default or bankruptcy by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
The funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of their
transfer agent expense. For the period ended June 30, 1999, each fund received
credits or reimbursements under this arrangement as follows:
FOR SIX
MONTHS ENDED
FUND JUNE 30, 1999
---- ----------------
WorldPerks Money Market 0
WorldPerks Tax Free Money Market 0
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
On July 6, 1999, Credit Suisse Asset Management, LLC(CSAM) became each
fund's investment adviser as a result of the completion of the previously
announced acquisition of Warburg Pincus Asset Management, Inc. (WPAM) by Credit
Suisse Group (Credit Suisse) and the combination of WPAM with Credit Suisse's
existing U.S. asset management business. CSAM is an indirect wholly-owned U.S.
subsidiary of Credit Suisse. For its investment advisory services, CSAM receives
a fee calculated at an annual rate of .40% of each fund's average daily net
assets. For the six months ended June 30, 1999, investment advisory fees,
voluntary waivers and expense reimbursements were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
FUND ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENT
---- ------------ ---------- ------------ -------------
<S> <C> <C> <C> <C>
WorldPerks Money Market $25,634 $(25,634) $ 0 $(24,340)
WorldPerks Tax Free Money Market 22,137 (22,137) 0 (28,800)
</TABLE>
16
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS
AND DISTRIBUTOR -- (CONT'D)
BlackRock Institutional Management Corporation (BIMC), formerly PNC
Institutional Management Corporation, a wholly-owned susidiary of PNC Bank,
N.A., serves as each fund's sub-investment adviser. From its investment advisory
fee, CSAM pays BIMC a fee. No compensation is paid by the WorldPerks Funds to
BIMC for its sub-investment advisory service.
Credit Suisse Asset Management Limited (CSAM Ltd.), an indirect wholly-owned
subsidiary of Credit Suisse, and PFPC Inc. (PFPC), an indirect, wholly-owned
subsidiary of PNC Bank Corp. serve as each fund's co-administrator. For its
administrative services, CSAM Ltd. currently receives a fee calculated at an
annual rate of .10% of each fund's average daily net assets. For the six months
ended June 30, 1999, administrative services fees earned and voluntarily waived
by CSAM Ltd. were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- --------------------- -------- ---------------------
<S> <C> <C> <C>
WorldPerks Money Market $6,408 $(6,408) $ 0
WorldPerks Tax Free Money Market 5,534 (5,534) 0
</TABLE>
For administrative services, PFPC currently receives a fee calculated at an
annual rate of .10% on each fund's first $500 million in average daily net
assets, .075% on the next $1 billion in average daily net assets, and .05% of
average daily net assets in excess of $1.5 billion.
For the six months ended June 30, 1999, administrative service fees earned
and voluntarily waived by PFPC (including out-of-pocket expenses) were as
follows:
<TABLE>
<CAPTION>
NET
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- --------------------- -------- ---------------------
<S> <C> <C> <C>
WorldPerks Money Market $6,770 $(6,408) $362
WorldPerks Tax Free Money Market 5,896 (5,534) 362
</TABLE>
It is currently contemplated that, on or before January 6, 2000, CSAMLtd.
will be replaced as co-administrator of each fund by Credit Suisse Asset
Management Securities, Inc. (CSAMSI), an indirect wholly-owned subsidiary of
Credit Suisse that was formerly known as Counsellors Securities Inc. CSAMSI
serves as each fund's distributor. For its distribution services, CSAMSI
receives a fee calculated at an annual rate of .25% of the average
17
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR -- (CONT'D)
daily net assets of each fund. For the six months ended June 30, 1999,
shareholder servicing and distribution fees earned by CSAMSI were as follows:
FUND DISTRIBUTION FEE
---- ----------------------
WorldPerks Money Market $16,021
WorldPerks Tax Free Money Market 13,835
On June 20, 1999, the Fund's Board of Directors approved Provident
Distributors, Inc. (PDI) as each Fund's distributor, effective on or before
January 6, 2000. PDI, a Delaware corporation, is a registered Broker-dealer and
serves as distributor to other mutual funds.
3. CAPITAL SHARE TRANSACTIONS
Transactions in shares of each fund were as follows:
<TABLE>
<CAPTION>
WORLDPERKS WORLDPERKS
MONEY MARKET TAX FREE MONEY MARKET
--------------------------------------- -------------------------------------
FOR THE PERIOD FOR THE PERIOD
OCTOBER 1, 1998 OCTOBER 1, 1998
(COMMENCEMENT OF (COMMENCEMENT OF
FOR THE OPERATIONS FOR THE OPERATIONS
SIX MONTHS ENDED THROUGH SIX MONTHS ENDED THROUGH
JUNE 30, 1999 DECEMBER 31, 1998 JUNE 30, 1999 DECEMBER 31, 1998
--------------- ------------------ --------------- ------------------
<S> <C> <C> <C> <C>
Shares sold $11,236,516 $19,852,748 $6,325,594 $13,444,874
Shares issued to shareholders on
reinvestments of dividends 254,841 121,553 115,760 62,708
Shares redeemed (9,390,403) (7,148,907) (4,360,838) (3,019,022)
----------- ----------- ---------- -----------
Net increase in shares 2,100,954 12,825,394 2,080,516 10,488,560
----------- ----------- ---------- -----------
</TABLE>
4. LIABILITIES
At June 30, 1999 the funds had the following liabilities:
WORLDPERKS WORLDPERKS
MONEY MARKET TAX FREE MONEY MARKET
-------------- ------------------------
Dividends Payable $1,189 $1,816
18
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
5. NET ASSETS
At June 30, 1999, capital contributions and accumulated net realized loss
from security transactions have been adjusted for permanent book/tax
differences.
Net assets at June 30, 1999, consisted of the following:
WORLDPERKS WORLDPERKS
MONEY MARKET TAX FREE MONEY MARKET
-------------- ----------------------
Capital contributed, net $15,026,348 $12,669,076
Accumulated net realized
gain/(loss) from security
transactions (39) 0
----------- -----------
Net assets $15,026,309 $12,669,076
=========== ===========
6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
At a special meeting of shareholders held on May 21, 1999, four proposals
were submitted for the vote of shareholders of the Funds. The proposals and
voting results were:
1. To approve a new investment advisory agreement between each fund and CSAM.
<TABLE>
<CAPTION>
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
---------------- ------ -------------------- --------------------
<S> <C> <C> <C>
For 7,195,639.7100 58.5756% 95.5767%
Against 201,544.0000 1.6407% 2.6770%
Abstain 131,469.2300 1.0702% 1.7463%
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
----------------- ------ -------------------- --------------------
For 8,098,863.5600 73.4264% 92.5890%
Against 566,455.0500 5.1356% 6.4759%
Abstain 81,789.9700 0.7415% 0.9351%
</TABLE>
19
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D)
2. To elect Directors of each fund.
<TABLE>
<CAPTION>
WORLD PERKS MONEY
MARKET FUND FOR WITHHELD
---------------- -------------- ------------
<S> <C> <C>
R.H. Francis 7,236,351.5700 292,301.3700
J.W. Fritz 7,236,351.5700 292,301.3700
J.E. Garten 7,236,351.5700 292,301.3700
J.S. Pasman 7,236,351.5700 292,301.3700
W.W. Priest 7,236,351.5700 292,301.3700
S.N. Rappaport 7,236,351.5700 292,301.3700
A.M. Reichman 7,236,351.5700 292,301.3700
A.B. Trowbridge 7,236,351.5700 292,301.3700
WORLD PERKS TAX-FREE
MONEY MARKET FUND FOR WITHHELD
---------------- -------------- ------------
R.H. Francis 8,325,794.1900 421,314.3900
J.W. Fritz 8,325,794.1900 421,314.3900
J.E. Garten 8,140,688.5300 606,420.0500
J.S. Pasman 8,325,794.1900 421,314.3900
W.W. Priest 8,325,794.1900 421,314.3900
S.N. Rappaport 8,140,688.5300 606,420.0500
A.M. Reichman 8,140,688.5300 606,420.0500
A.B. Trowbridge 8,325,794.1900 421,314.3900
</TABLE>
3. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants for each fund.
<TABLE>
<CAPTION>
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
---------------- ------ -------------------- --------------------
<S> <C> <C> <C>
For 7,353,133.9800 59.8577% 97.6687%
Against 109,387.2500 0.8905% 1.4529%
Abstain 66,131.7100 0.5383% 0.8784%
WORLD PERKS TAX-FREE % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
---------------- ------ -------------------- --------------------
For 8,420,158.2900 76.3394% 96.2622%
Against 187,588.0600 1.7007% 2.1446%
Abstain 139,362.2300 1.2635% 1.5932%
</TABLE>
20
<PAGE>
WARBURG PINCUS WORLDPERKS MONEY MARKET AND
WORLDPERKS TAX FREE MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
6. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS -- (CONT'D)
4. To approve a new sub-investment advisory agreement between each fund,
CSAM and the fund's sub-investment adviser.
<TABLE>
<CAPTION>
WORLD PERKS MONEY % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
---------------- ------ -------------------- --------------------
<S> <C> <C> <C>
FOR 7,089,350.5600 57.7104% 94.1649%
Against 261,765.2600 2.1309% 3.4769%
Abstain 177,537.1200 1.4452% 2.3582%
WORLD PERKS TAX-FREE % OF SHARES TO TOTAL % OF SHARES TO TOTAL
MONEY MARKET FUND SHARES OUTSTANDING SHARES SHARES VOTED
---------------- ------ -------------------- --------------------
For 7,702,486.2800 69.8328% 88.0575%
Against 964,673.2800 8.7460% 11.0285%
Abstain 79,949.0200 0.7248% 0.9140%
</TABLE>
7. YEAR 2000 COMPLIANCE
Many Services provided to the portfolios and their shareholders by CSAM and
certain of its affiliates (CSAMService Providers) and the funds' other service
providers rely on the functioning of their respective computer systems. Many
computer systems cannot distinguish the year 2000 from the year 1900, resulting
in potential difficulty in performing various calculations (Year 2000 Issue).
The Year 2000 Issue could potentially have an adverse impact on the handling of
security trades, the payment of interest and dividends, pricing, account
services and other portfolio operations.
The CSAM Service Providers recognize the importance of the Year 2000 Issue
and are taking appropriate steps necessary in preparation for the year 2000. The
CSAMService Providers anticipate that their systems and those of the funds'
other major service providers will be adapted in time for the Year 2000. The
CSAM Service Providers have completed mission critical systems testing and have
participated in industry-wide testing programs. In addition, the CSAMService
Providers are formulating a contingency plan to address the Year 2000 Issue and
anticipate completion of the plan by the end of the third quarter of 1999.
The CSAM Service Providers continue to monitor the Year 2000 Issue and its
potential impact on the funds. However, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on the funds nor can there
be any insurance that the Year 2000 Issue will not have an adverse effect on the
funds' investments or on global markets or economies, generally.
21
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<PAGE>
WARBURG PINCUS FUNDS (LOGO)
[GRAPHIC OMITTED]
WARBURG PINCUS WORLDPERKS FUNDS, P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (BOX) WWW.WARBURG.COM
CREDIT SUISSE ASSET MANAGEMENT SECURITIES INC., DISTRIBUTOR. FFNWF-3-0699
