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FUND PROFILE
WARBURG PINCUS
EUROPEAN EQUITY FUND
Subscription Offering
November 2, 1998
[MAN HOLDING GLOBE GRAPHIC](SM)
This profile summarizes key information about the fund that is included in
the fund's prospectus. The prospectus includes additional information about the
fund, including a more detailed description of the risks associated with
investing in the fund, that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by
contacting the Shareholder Service Center or by calling Charles Schwab & Co.,
Inc. at 800-435-4000. Information is also available at the Schwab Web site
(www.schwab.com/funds).
[WARBURG PINCUS LOGO]
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GOAL
Capital appreciation
STRATEGY
- Invests in European stocks
- Targets Western European countries
- May use growth and/or growth-at-a-reasonable-price approaches
The fund considers Western Europe to include the European Union, Norway and
Switzerland.
In choosing stocks, the portfolio managers consider a number of factors
including:
- stock price relative to the company's rate of earnings growth
- valuation relative to other European companies and market averages
- the stock's currency denomination
- merger and acquisition trends, particularly trends related to the impact
of the introduction of the new European currency, the "euro," on the
finance, marketing and distribution strategies of European companies
INVESTOR PROFILE
This fund is designed for investors who:
- have longer time horizons
- are willing to assume the risk of losing money in exchange for attractive
potential long-term returns
- are investing for capital appreciation
- can accept a higher degree of volatility
- are seeking access to European markets, which can be less accessible to
individual investors
It may NOT be appropriate if you:
- are investing for a shorter time horizon
- are uncomfortable with an investment that may suffer substantial declines
in value
- are looking for a broadly diversified global or international equity fund
- are looking for income
You should base your investment decision on your own goals, risk
preferences and time horizon.
MAIN INVESTMENT RISKS
All investments involve some level of risk. Simply defined, risk is the
possibility that you will lose money or not make money. Before investing in this
fund, please make sure you understand the risks.
An investment in the fund is not a bank deposit. It is not FDIC-insured or
government-endorsed. As with any mutual fund, you could lose money over any
period of time.
MARKET RISK
The market value of a security may move up and down, sometimes rapidly and
unpredictably. These fluctuations, which are often referred to as "volatility,"
may cause a security to be worth less than it was worth at an earlier time.
Market risk may affect a single issuer, industry, sector of the economy, or the
market as a whole. Market risk is common to most investments -- including stocks
and bonds, and the mutual funds that invest in them.
FOREIGN SECURITIES
A fund that invests outside the U.S. carries additional risks that include:
- CURRENCY RISK Fluctuations in exchange rates between the U.S. dollar and
foreign currencies may negatively affect an investment. Adverse changes
in exchange rates may erode or reverse any gains produced by
foreign-currency denominated investments and may widen any losses.
- INFORMATION RISK Key information about an issuer, security or market may
be inaccurate or unavailable.
- POLITICAL RISK Foreign governments may expropriate assets, impose capital
controls or punitive taxes, or nationalize a company or industry. Any of
these actions could have a severe effect on security prices and impair a
fund's ability to bring its capital or income back to the U.S. Other
political risks include economic policy
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changes, social and political instability, military action and war.
REGION FOCUS
Market swings in the targeted region (Western Europe) will likely have a
greater effect on fund performance than they would in a more geographically
diversified equity fund.
FEES AND FUND EXPENSES
This table describes the fees and expenses you may bear as a shareholder.
Annual fund operating expense figures are estimates for fiscal 1999, but do not
reflect fee waivers and expense reimbursements.*
<TABLE>
<CAPTION>
SHAREHOLDER FEES
(paid directly from your investment)
<S> <C>
Sales charge "load" on purchases NONE
Deferred sales charge "load" NONE
Sales charge "load" on reinvested distributions NONE
Redemption fee NONE
Exchange fee NONE
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(deducted from fund assets)
<S> <C>
Management fee 1.00%
Distribution and service (12b-1) fee 0.25%
Other expenses 0.90%
TOTAL ANNUAL FUND OPERATING EXPENSES 2.15%
</TABLE>
*Through at least February 2000, fund service providers have voluntarily agreed
to waive some of their fees and reimburse expenses. These waivers and
reimbursements are expected to lower fund expenses as follows:
<TABLE>
<CAPTION>
Distribution Total
and annual fund
Management service Other operating
fee (12b-1) fee expenses expenses
---------- ------------- --------- -----------
<S> <C> <C> <C>
0.40% 0.25% 0.80% 1.45%
</TABLE>
EXAMPLE
This example may help you compare the cost of investing in this fund with the
cost of investing in other mutual funds. Because the example uses hypothetical
conditions, your actual costs may be higher or lower.
Assume you invest $10,000, the fund returns 5% annually, expense ratios remain
as listed previously, and you close your account at the end of the time periods
shown. Based on these assumptions, your cost would be:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS
-------- -----------
Before waivers and reimbursements*
----------------------------------
<S> <C>
$218 $673
</TABLE>
*Fee waivers and expense reimbursements would lower your cost as follows:
<TABLE>
<CAPTION>
One year Three years
-------- -----------
<S> <C>
$148 $459
</TABLE>
INVESTMENT ADVISER
BEA Associates
SUB-ADVISER
Credit Suisse Asset Management Limited
PORTFOLIO MANAGERS
Susan E. Boland is the Portfolio Manager of the fund, and Emily F. Baker is
the Assistant Portfolio Manager. Ms. Boland is a Senior Vice President of BEA
Associates. She joined BEA in 1996 from Barran & Partners Limited, where she was
a director and portfolio manager from 1995 - 1996. Prior to that she was a
partner and European portfolio manager for Teton Partners from 1992 - 1995, and
a portfolio manager and analyst with Fidelity Management & Research Company from
1985 - 1991. Ms. Baker is a Vice President of BEA Associates. From 1994 - 1996
she was a vice president at Mastrapasqua & Associates, an investment management
firm. Prior to that she was a financial consultant with the private client
services group at Merrill Lynch. Prior to that, she was director of business
development at Davis-Kidd Booksellers from 1992-1993.
HOW TO BUY SHARES
During the offering period of November 2 through November 23, 1998,
investors may subscribe to purchase shares of the fund at the fund's initial
net asset value of $10.00 per share. Subscriptions will be available from
Counsellors Securities Inc., the fund's distributor, and Charles Schwab & Co.,
Inc., a dealer selected to assist in the offering. Counsellors Securities Inc.
will pay Schwab a fee for its services during the offering
period. This fee will be paid solely by Counsellors Securities Inc. out of its
own resources or those of its affiliates and will have no effect on the fund's
fees or expenses.
The opportunity to subscribe to purchase shares during the offering period
is available only to current Warburg Pincus fund shareholders and
Schwab brokerage account clients. Qualified investors who wish to participate
in the offering should complete the [Subscription Coupon] and return
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SHAREHOLDER SERVICE CENTER
800-WARBURG (800-927-2874)
MONDAY-FRIDAY, 8 A.M.-8 P.M. (ET)
SATURDAY, 8 A.M.-4 P.M. (ET)
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it for receipt before the offering period has expired. Current Warburg
Pincus fund shareholders should call 800-WARBURG (800-927-2874) to speak with a
Service Associate to obtain more information or to receive an application.
Current brokerage account clients of Schwab should
call 800-435-4000 to obtain more information or to receive a [Subscription
Coupon].
Orders and payment for fund shares received during the offering period
will be processed after the close of regular trading on the New York Stock
Exchange (usually 4:00 p.m. Eastern Time) on November 23, 1998. Payments will be
held uninvested by the fund's transfer agent until November 23; exchanges will
be scheduled to take place on November 23.
Subscriptions are revocable during the offering period by calling
Counsellors Securities Inc. or Schwab.
Orders received after the close of regular trading on the New York
Stock Exchange on November 23, 1998, will receive the next price determined
after your order has been received and accepted. After November
23, the price per share may be more or less than $10.
The initial minimum investment is $2,500 for most accounts ($500 for IRAs
and Uniform Transfers/Gifts-to-Minors accounts), and the subsequent minimum
investment is $100 ($50 through the Automatic Monthly Investment Plan). You can
invest in the fund after reading this Profile or you can call 800-XXX-XXXX for
a fund prospectus (or other information).
HOW TO SELL AND EXCHANGE SHARES
After November 23, 1998, you may sell (redeem) your fund shares
on days when the New York Stock Exchange is open, typically
Monday through Friday. You may redeem your shares in writing or by telephone
and have redemption proceeds sent to you by check or electronic transfer. You
can also redeem shares by exchanging into another Warburg Pincus fund or you
can participate in the Automatic Withdrawal Plan.
DISTRIBUTIONS AND TAXES
The fund will typically distribute net income and capital gains annually,
usually in November or December. Distributions will be reinvested unless you
select another option.
Distributions you receive from the fund, whether reinvested or taken in
cash, are generally considered taxable. Fund distributions are taxed based on
the length of time the fund holds its assets, regardless of how long you have
held fund shares. Distributions from the fund's long-term capital gains are
taxed as long-term capital gains; distributions from other sources are generally
taxed as ordinary income. The fund will mostly make capital gains distributions.
OTHER SERVICES
Investors in this fund have available to them a number of services that
make buying and selling shares easy. Automatic services include the Automatic
Monthly Investment Plan, the Automatic Withdrawal Plan and Distribution Sweep.
In addition, fund shares can be held in certain tax-advantaged accounts such as
traditional IRAs and Roth IRAs. These services are described in more detail in
the Warburg Pincus Shareholder Guide, which you will receive after you have
made your investment or which you can order from the Shareholder Service Center.
[WARBURG PINCUS LOGO]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) - www.warburg.com
(C)1998 COUNSELLORS SECURITIES INC., DISTRIBUTOR. SCEEQ-14-1198
