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YES, I WANT TO INVEST
IN WARBURG PINCUS
EUROPEAN EQUITY FUND.
CALL SCHWAB TODAY
1-800-435-4000
OR COMPLETE AND
MAIL THIS SUBSCRIPTION FORM
You can invest in the fund after reading the Fund Profile, or you can call
1-800-435-4000 for a Prospectus (and other information) before you invest.
__ I've enclosed my initial investment order of
$_______________________________________________________________________________
($2,500 MINIMUM; $1,000 MINIMUM FOR IRA AND CUSTODIAL ACCOUNTS)
__ I would like to invest in the fund using cash in my account.
Please invest $__________________________
($2,500 MINIMUM)
of the cash available in my Schwab account indicated below.
DISTRIBUTION METHOD:*
__ Reinvest both capital gains and dividends
__ Pay capital gains and dividends in cash
__ Reinvest capital gains, pay dividends in cash
*IF NO OPTION IS INDICATED, ALL DISTRIBUTIONS WILL BE REINVESTED IN THE FUND
AUTOMATICALLY.
________________________________________________________________________________
SCHWAB ACCOUNT NUMBER (8-DIGIT NUMBER)
________________________________________________________________________________
FIRST NAME MI LAST NAME
( )
________________________________________________________________________________
DAYTIME PHONE
________________________________________________________________________________
SIGNATURE DATE
[Mutual Fund Alliance with Credit Suisse Asset Management]
[Warburg Pincus Funds]
COUNSELLORS SECURITIES INC., DISTRIBUTOR.
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This material must be accompanied or preceded by a Fund Profile or Prospectus.
Charles Schwab & Co., Inc. is a selected dealer for Warburg Pincus European
Equity Fund during the subscription offering period. For this service, it will
receive remuneration from Counsellors Securities Inc., the fund's distributor,
as disclosed in the fund's Prospectus. After the subscription offering period,
Schwab will receive remuneration for recordkeeping and shareholder servicing for
customers who purchase Warburg Pincus European Equity Fund through Schwab's
Mutual Fund OneSource(R) service.
Orders for the subscription offer must be received in good form by 4:00 p.m.
Eastern Time on January 28, 1999. Orders received after that time will be
invested at the net asset value next determined after receipt of the order by
Schwab. The purchase price for the shares will not be deducted from a Schwab
brokerage account until the close of business on January 28, 1999. (There is a
$2,500 minimum initial investment; $1,000 for IRA and custodial accounts.) This
material was sent to you by Schwab's mailing agent. If you do not want to
receive these materials in the future, contact Schwab at 1-800-435-4000. Charles
Schwab & Co., Inc. Member NYSE/SIPC (1298-5752).
[OneSource From Schwab]
Charles Schwab & Co., Inc.
101 Montgomery Street
San Francisco, CA 94104
1-800-435-4000 * www.schwab.com/funds
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Cover Copy:
FUND PROFILE
Warburg Pincus
European Equity Fund
Subscription Offering of Common Class Shares
January 4, 1999
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 calling
Warburg Pincus Funds at 1-800-927-2874 or by calling Charles Schwab & Co., Inc.
at 1-800-435-4000. Information is also available on the Warburg Pincus Funds Web
site (www.warburg.com) and on the Schwab Web site (www.schwab.com/funds).
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GOAL
Capital appreciation
STRATEGY
* Invests in European equity securities
* Targets Western European countries
* Emphasizes a growth investment approach but may also include value
considerations
* Portfolio managers look at factors such as earnings growth, stock
price, relative valuation and merger-and-acquisition trends
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
* merger-and-acquisition trends, particularly trends related to the
impact of the introduction of the new single European currency, the "euro," on
companies' business strategies
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
* 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 has a higher degree of
volatility
* 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.
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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 and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency. 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. The fund may, but is not required to, seek to reduce
currency risk by hedging part or all of its exposure to various foreign
currencies.
* EURO CONVERSION
The introduction of a new single European currency, the euro, may result in
uncertainties for securities of European companies, European markets and the
operation of the fund. The euro was introduced on January 1, 1999, by 11
European Union member countries who are participating in European Monetary Union
(EMU).
The introduction of the euro results in the redenomination of certain European
debt and equity securities over a period of time, which may bring in differences
in various accounting, tax and/or legal treatments that would not otherwise
occur. Any market disruptions relating to the introduction of the euro could
adversely affect the value of European securities and currencies held by the
fund. Other risks relate to the ability of financial institutions' systems to
process euro transactions. Additional economic and operational issues are raised
by the fact that certain European Union member countries, including the United
Kingdom, did not participate in EMU on January 1, 1999, and therefore did not
implement the euro on that date.
At this early stage no one knows what the degree of impact of the introduction
of the euro will be. To the extent that the market impact or effect on a fund
holding is negative or that fund service-provider systems cannot process the
euro conversion, the fund's performance could be hurt.
* INFORMATION RISK
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Key information about an issuer, security or market may be inaccurate or
unavailable.
* POLITICAL RISK
Foreign governments may expropriate assets, impose capital or currency controls,
impose 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 changes, social and political instability, military
action and war.
REGION FOCUS
Focusing on a single region involves increased currency, political, regulatory
and other risks. 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.
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FEES AND FUND EXPENSES
This table describes the fees and expenses you may bear as a shareholder. Annual
fund operating expense figures are expected amounts for the fiscal period ending
August 31, 1999.
Annual fund operating expenses
(deducted from fund assets)
Management fee 1.00%
Distribution and service (12b-1) fee 0.25%
Other expenses(1) 0.95%
Total annual fund operating expenses(2) 2.20%
(1) Other expenses are based on estimated amounts to be charged in the current
fiscal period.
(2) Fund service providers have voluntarily agreed to waive some of their fees
and reimburse expenses. These waivers and reimbursements are expected to lower
the fund's expenses as follows:
Management fee 0.30%
Distribution and service (12b-1) fee 0.25%
Other expenses 0.90%
Total annual fund operating expenses 1.45%
EXAMPLE
This example may help you compare the cost of investing in this fund with the
cost of investing in other mutual funds. Because it 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 in the table above (before fee waivers and expense reimbursements and
credits), and you close your account at the end of each of the time periods
shown. Based on these assumptions, your cost would be:
ONE YEAR THREE YEARS
$223 $688
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INVESTMENT ADVISER
BEA Associates
SUB-INVESTMENT ADVISER
Credit Suisse Asset Management Limited
PORTFOLIO MANAGEMENT
Susan E. Boland is the Portfolio Manager of the fund, and Emily F. Baker is the
Assistant Portfolio Manager. Ms. Boland is a Director of BEA Associates. She
joined BEA in 1996 from Barran & Partners Limited, where she was a director and
portfolio manager from 1995 to 1996. Prior to that she was a partner and
European portfolio manager for Teton Partners from 1992 to 1995, and a portfolio
manager and analyst with Fidelity Management & Research Company from 1985 to
1991. Ms. Baker is a Vice President of BEA Associates. From 1994 to 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 group at
Merrill Lynch.
HOW TO BUY SHARES
Counsellors Securities Inc., the fund's distributor, will solicit orders to
purchase fund shares during an initial offering period from January 4 until the
close of the New York Stock Exchange (usually 4 p.m., Eastern Time) on January
28, 1999 (offering period). The purchase price will be the fund's initial
subscription offering price of $10 per share, and payments for orders received
during the offering period will be accepted by the fund at the end of the
offering period on January 28, 1999. Until that time, payments will be held
uninvested by the fund's transfer agent.
Charles Schwab & Co., Inc. (Schwab) will also solicit orders for fund shares
during the offering period pursuant to a selected dealer agreement with
Counsellors Securities. Payment for fund shares ordered through Schwab will be
deducted from a Schwab customer's brokerage account at the end of the offering
period on January 28, 1999. For these services, Counsellors Securities will pay
Schwab a fee equal to the greater of one hundred thousand dollars or up to half
of one percent of the total dollar amount of fund shares sold through Schwab
during the offering period. All fees paid to Schwab under these arrangements
will be paid by Counsellors Securities and will have no effect on the fund's
fees or expenses.
Shares of the fund will not be available to the public prior to the fund's
commencement of investment operations except through this subscription offer.
After the offering period Schwab will receive a fee for recordkeeping and
shareholder servicing of fund shares purchased through Schwab.
If your order is received after the offering period, it will receive the next
price determined after it is received and accepted. After January 28, the price
per share may be more or less than $10. Subscriptions are revocable during the
offering period by calling Counsellors Securities or Schwab.
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The minimum initial investment is $2,500 for most accounts ($1,000 for IRAs and
Uniform Transfers/Gifts-to-Minors accounts), and the minimum subsequent
investment is $100 ($50 through the Automatic Monthly Investment Plan).
HOW TO SELL AND
EXCHANGE SHARES
After January 28, 1999, 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 typically distributes net income and capital gains annually, usually in
December. Distributions will be reinvested unless you choose otherwise.
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 Funds Shareholder Guide, which you will receive after you
have made your investment or which you can order from the Shareholder Service
Center.
Shareholder Service Center 1-800-WARBURG (1-800-927-2874)
Monday - Friday, 8 a.m. - 8 p.m. ET Saturday, 8 a.m. - 4 p.m. ET
[Mutual Fund Alliance with Credit Suisse Asset Management]
[Warburg Pincus Funds]
P.O. Box 9030, Boston, MA 02205-9030
1-800-WARBURG (1-800-927-2874) * www.warburg.com
COUNSELLORS SECURITIES INC., DISTRIBUTOR.
