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[Warburg Pincus Funds Logo]
SEMIANNUAL
REPORT
AUGUST 31, 1995
[ ] WARBURG PINCUS CASH RESERVE FUND
[ ] WARBURG PINCUS NEW YORK TAX EXEMPT FUND
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WARBURG PINCUS CASH RESERVE FUND
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October 16, 1995
Dear Shareholder:
Short-term interest rates declined during the six months ended August 31,
1995, abetted by a 25-basis-point easing of the federal-funds rate by the
Federal Reserve on July 6, and a slowing economy with very little inflation. The
nation's gross domestic product grew by an annualized 1.3% during the second
quarter of 1995, well below the first quarter and under the Fed's long-term
target of 2.5% annualized growth. Third-quarter reports showed a resumption of
moderate growth with low inflation as an inventory correction continued. As a
result of the Fed's easing and the possibility of further easing, annualized
yields on three-month Treasury bills decreased from 6.06% at the end of February
to 5.50% at the end of August.
Warburg Pincus Cash Reserve Fund (the 'Fund') had a 30-day annualized
current yield of 5.42% as of August 31, 1995. Net assets of the Fund were $273.9
million, down from $403.2 million on February 28, 1995. For the seven-day period
ended August 31, 1995, the net annualized yield was 5.42% down from 5.65% on
February 28, 1995. The Fund's average weighted maturity on August 31, 1995, was
56 days, nine days longer than in February.
The resumption of real gross domestic product growth is apt to keep Federal
Reserve policy on hold until a 1996 federal budget is in place. At that time, a
credible package of deficit reduction could trigger a small additional rate cut.
In response, the Fund will continue to purchase only the highest-quality
securities in order to provide competitive returns without compromising
stability of principal. We appreciate your continued support and investment in
the Fund.
Dale C. Christensen
Dale C. Christensen
President
1
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WARBURG PINCUS NEW YORK TAX EXEMPT FUND
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October 16, 1995
Dear Shareholder:
Tax-exempt money-fund yields continued to rise during the six-month period
ended August 31, 1995. The Donoghue's All Tax-Free category produced a 12-month
total return of 3.25% for the year ended August 31, 1995, 64 basis points higher
than February's 12-month total return. The interest-rate environment also
resulted in longer average weighted maturities, as funds extended to enhance
yields, and strong growth overall in tax-free money-fund assets, which reached
an all-time high during the period.
For the period, inflation remained well-behaved and in the Fed's targeted
2.5%-3.0% range, as progress toward an economic 'soft landing' continued.
Weaker-than-expected economic data in June, however, shifted sentiment toward a
possible recession. As a result, yields on the one-year Treasury bill fell to
5.50%. To stimulate the economy, the Federal Open Market Committee lowered the
federal-funds rate by 25 basis points in July. By the end of the period, signs
of renewed strength in economic activity enabled the FOMC to leave interest
rates unchanged at the August meeting.
Warburg Pincus New York Tax Exempt Fund (the 'Fund') seeks to invest in
high-quality issues, the income from which is exempt from federal, New York
state and New York City personal income taxes. The general credit quality within
New York state remains steady, as Standard & Poor's maintains a positive rating
with no expected downgrade. However, on July 10, 1995, New York City bonds were
downgraded by Standard & Poor's to 'BBB'.
The Fund had a 30-day annualized current yield of 3.23% as of August 31,
1995, and net assets of $72.7 million. Its average weighted maturity was 57
days. The Fund's current yield for the seven-day period ended August 31, 1995,
was 3.17%.
The Fund will continue to seek current income that is exempt from federal,
New York state and New York City personal income taxes, consistent with
preservation of capital and liquidity. We appreciate your continued support and
investment in the Fund.
Dale C. Christensen
Dale C. Christensen
President
2
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WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS
August 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- ---------------------------------------- -------------- --------- ------ ------------
<C> <S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (21.6%)
Federal Farm Credit Bank (3.7%)
$ 5,000,000 Federal Farm Credit Bank 10/02/95 5.8000% $ 5,000,000
5,000,000 Federal Farm Credit Bank 11/01/95 5.7300 5,000,000
------------
Total Federal Farm Credit Bank (Cost $10,000,000) 10,000,000
------------
Student Loan Marketing Association (17.9%)
15,000,000 Student Loan Marketing Association
Floating Rate Note+ 09/05/95 5.6800 15,000,000
34,000,000 Student Loan Marketing Association
Floating Rate Note+ 09/05/95 5.8500 34,024,556
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Total Student Loan Marketing Association (Cost $49,024,556) 49,024,556
------------
TOTAL AGENCY OBLIGATIONS (Cost $59,024,556) 59,024,556
------------
BANKERS' ACCEPTANCES (12.5%)
Domestic Bankers' Acceptances (10.6%)
1,000,000 Bank of America (P-1/A-1) 12/18/95 5.5000 983,500
3,000,000 Bank of America (P-1/A-1) 12/27/95 5.5000 2,946,375
2,000,000 Bank of America National Trust &
Savings Association (P-1/A-1) 11/17/95 5.7500 1,975,403
1,000,000 Bank of America National Trust &
Savings Association (P-1/A-1) 02/23/96 5.6200 972,680
1,000,000 Barclays Bank PLC (P-1/A-1+) 11/01/95 5.6500 990,426
507,291 Citibank, N.A. (P-1/A-1) 09/22/95 5.8500 505,560
3,000,000 Citibank, N.A. (P-1/A-1) 10/11/95 5.7000 2,981,000
1,000,000 Citibank, N.A. (P-1/A-1) 10/27/95 5.7000 991,133
1,000,000 CoreStates Bank NA (P-1/A-1) 01/09/96 5.5000 980,139
1,500,000 First National Bank of Chicago Corp. (P-1/A-1) 11/06/95 5.7500 1,484,187
2,000,000 First National Bank of Chicago Corp. (P-1/A-1) 11/13/95 5.7500 1,976,681
3,500,000 First National Bank of Chicago Corp. (P-1/A-1) 11/20/95 5.7500 3,455,278
500,000 First National Bank of Chicago Corp. (P-1/A-1) 01/16/96 5.6100 489,325
500,000 First National Bank of Chicago Corp. (P-1/A-1) 02/13/96 5.6000 487,167
</TABLE>
See Accompanying Notes to Financial Statements.
3
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WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- -------------------------------------- -------------- --------- ------ ------------
<C> <S> <C> <C> <C> <C>
BANKERS' ACCEPTANCES (CONT'D)
$ 5,000,000 First Union National Bank (P-1/A-1) 11/06/95 5.5800% $ 4,948,850
500,000 First Union National Bank (P-1/A-1) 12/08/95 5.5000 492,514
2,585,547 State Street Bank & Trust Co. (P-1/A-1+) 01/10/96 5.6200 2,532,671
------------
Total Domestic Bankers' Acceptances (Cost $29,192,889) 29,192,889
------------
Yankee Dollar Bankers' Acceptance (1.9%)
3,061,000 Societe Generale (P-1/A-1+) 09/27/95 5.9600 3,047,824
484,000 Societe Generale (P-1/A-1+) 10/02/95 5.9600 481,516
1,583,000 Societe Generale (P-1/A-1+) 10/11/95 5.9600 1,572,517
------------
Total Yankee Dollar Bankers' Acceptance (Cost $5,101,857) 5,101,857
------------
TOTAL BANKERS' ACCEPTANCES (Cost $34,294,746) 34,294,746
------------
BANK NOTES (1.9%)
5,000,000 Mellon Bank (P-1/A+) 11/01/95 6.2200 5,000,082
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TOTAL BANK NOTES (Cost $5,000,082) 5,000,082
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CERTIFICATES OF DEPOSIT (7.3%)
Yankee Dollar Certificates of Deposit (7.3%)
5,000,000 Canadian Imperial Bank of Commerce (P-1/A-1+) 09/12/95 7.0000 5,000,000
5,000,000 Commerzbank (P-1/A-1+) 02/09/96 7.1200 5,000,209
5,000,000 National Westminster Bank (P-1/A-1+) 10/23/95 6.2200 5,000,257
5,000,000 Royal Bank of Canada (P-1/A-1+) 12/13/95 7.4200 5,013,117
------------
TOTAL CERTIFICATES OF DEPOSIT (Cost $20,013,583) 20,013,583
------------
COMMERCIAL PAPER (37.3%)
Banks (16.7%)
3,700,000 Abbey National North America Corp. (P-1/A-1+) 11/07/95 5.6700 3,660,956
1,700,000 AMRO N.A. Finance Inc. (P-1/A-1+) 10/12/95 5.7300 1,688,906
5,000,000 CoreStates Capital Corp. (P-1/A-1) 09/07/95 6.0900 4,994,925
2,000,000 National City Corp. (P-1/A-1) 02/12/96 5.6600 1,948,431
2,600,000 National City Corp. (P-1/A-1) 09/27/95 6.1600 2,588,433
1,000,000 National City Corp. (P-1/A-1) 10/02/95 6.1600 994,696
3,000,000 National City Corp. (P-1/A-1) 10/10/95 6.1000 2,980,175
</TABLE>
See Accompanying Notes to Financial Statements.
4
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WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- -------------------------------------- -------------- --------- ------ ------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
$ 2,000,000 National City Corp. (P-1/A-1) 10/23/95 6.5500% $ 1,981,078
5,000,000 NationsBank Corp. (P-1/A-1) 09/18/95 6.1400 4,985,503
5,000,000 NationsBank Corp. (P-1/A-1) 10/02/95 6.1300 4,973,607
5,000,000 Norwest Corporation (P-1/A-1+) 09/27/95 5.8800 4,978,767
5,000,000 Norwest Corporation (P-1/A-1+) 09/11/95 6.1600 4,991,444
5,000,000 Republic National Bank NY (P-1/A-1+) 10/10/95 5.6200 4,969,558
------------
45,736,479
------------
Electric Services (0.4%)
1,000,000 Allegheny Power System (P-1/A-1) 10/25/95 5.7000 991,450
------------
Finance Lessors (2.5%)
1,000,000 General Electric Capital Corp. (P-1/A-1+) 10/06/95 5.7000 994,458
1,000,000 General Electric Capital Corp. (P-1/A-1+) 11/03/95 5.6800 990,060
1,000,000 General Electric Capital Corp. (P-1/A-1+) 12/05/95 5.6500 985,090
1,000,000 General Electric Capital Corp. (P-1/A-1+) 12/06/95 5.6500 984,933
1,000,000 General Electric Capital Corp. (P-1/A-1+) 02/12/96 5.6600 974,216
1,000,000 General Electric Capital Corp. (P-1/A-1+) 02/13/96 5.6800 973,967
1,000,000 General Electric Capital Corp. (P-1/A-1+) 04/01/96 5.6400 966,630
------------
6,869,354
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Industrial Inorganic Chemical (0.4%)
1,000,000 Air Products & Chemicals Inc. (P-1/A-1) 11/21/95 5.7000 987,175
------------
Motor Vehicles & Car Bodies (1.1%)
3,000,000 Daimler-Benz North America Corp. (P-1/A-1+) 03/15/96 5.5800 2,908,860
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Personal Credit Institutions (2.9%)
5,000,000 Associates Corp. of North America (P-1/A-1+) 12/06/95 5.6600 4,924,533
1,000,000 Ford Motor Credit Corp. (P-1/A-1) 10/16/95 5.7300 992,838
1,000,000 Ford Motor Credit Corp. (P-1/A-1) 10/17/95 5.7300 992,678
1,000,000 Ford Motor Credit Corp. (P-1/A-1) 10/18/95 5.7300 992,519
------------
7,902,568
------------
Plastic Mail, Synthetic Resin/Rubber (1.7%)
5,000,000 DuPont (E.I.) de Nemours & Co. (P-1/A-1+) 07/23/96 5.5300 4,749,614
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
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WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- -------------------------------------- -------------- --------- ------ ------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
Publishing (0.3%)
$ 1,000,000 Dun & Bradstreet Corporation (P-1/A-1+) 11/21/95 5.7000% $ 987,175
------------
Security Brokers & Dealers (3.9%)
5,000,000 Merrill Lynch & Co. (P-1/A-1+) 02/05/96 5.6200 4,877,453
5,000,000 Merrill Lynch & Co. (P-1/A-1+) 02/07/96 5.6000 4,876,333
1,000,000 Merrill Lynch & Co. (P-1/A-1+) 02/13/96 5.6700 974,013
------------
10,727,799
------------
Short-Term Business Credit Institutions (6.3%)
3,000,000 American Express Credit Corp. (P-1/A-1) 10/30/95 5.6800 2,972,073
1,000,000 American Express Credit Corp. (P-1/A-1) 01/23/96 5.6600 977,360
2,000,000 American Express Credit Corp. (P-1/A-1) 02/26/96 5.6300 1,944,326
1,000,000 American Express Credit Corp. (P-1/A-1) 02/26/96 5.6400 972,113
5,500,000 Corporate Asset Funding, Inc. (P-1/A-1+) 02/01/96 5.6300 5,368,399
1,200,000 Corporate Receivables Corp. (P-1/A-1) 09/18/95 5.7700 1,196,730
1,000,000 CXC, Inc. (P-1/A-1) 11/08/95 5.7300 989,177
3,000,000 McKena Triangle National Corp. (P-1/A-1+) 10/30/95 5.6800 2,972,073
------------
17,392,251
------------
Soaps & Detergents Cleaning (0.7%)
2,000,000 Colgate-Palmolive Company (P-1/A-1) 10/26/95 5.6900 1,982,614
------------
Sugar & Confectionary Products (0.4%)
1,000,000 Hershey Foods Corp. (P-1/A-1+) 09/01/95 5.9000 1,000,000
------------
TOTAL COMMERCIAL PAPER (Cost $102,235,339) 102,235,339
------------
TIME DEPOSITS (4.8%)
5,000,000 Bank of Hawaii (P-1/A-1) 09/08/95 5.7812 5,000,000
3,240,000 First Union National Bank (P-1/A-1) 09/01/95 5.8125 3,240,000
5,000,000 Harris Trust & Savings Bank (P-1/A-1+) 09/14/95 5.7500 5,000,000
------------
TOTAL TIME DEPOSITS (Cost $13,240,000) 13,240,000
------------
</TABLE>
See Accompanying Notes to Financial Statements.
6
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WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- -------------------------------------- -------------- --------- ------ ------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
VARIABLE RATE OBLIGATIONS (14.6%)
Banks (12.8%)
$ 5,000,000 Boatmen's National Bank St. Louis+ (P-1/A-1) 09/12/95 5.8550% $ 5,000,000
10,000,000 Comerica Bank (Detroit)+ (P-1/A-1) 09/07/95 5.6000 9,998,208
10,000,000 Huntington National Bank of Ohio+ (P-1/A-1) 09/01/95 6.0600 9,998,685
10,000,000 Morgan Guaranty Trust+ (P-1/A-1+) 09/01/95 5.9200 9,994,320
------------
Total Banks 34,991,213
------------
Security Brokers & Dealers (1.8%)
5,000,000 Bear Stearns & Co. Inc.+ (P-1/A-1) 11/16/95 5.9875 5,000,000
------------
TOTAL VARIABLE RATE OBLIGATIONS (Cost $39,991,213) 39,991,213
------------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $273,799,519*) 273,799,519
OTHER ASSETS IN EXCESS OF LIABILITIES (0.0%) 91,956
------------
NET ASSETS (100.0%) (applicable to 273,890,248 shares) $273,891,475
------------
------------
NET ASSETS VALUE, offering and redemption price per share ($273,891,475[div]273,890,248)
$1.00
-----
-----
</TABLE>
+ The interest rate shown is the rate as of August 31, 1995 and the maturity
date shown is the next interest readjustment date.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
7
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WARBURG PINCUS CASH RESERVE FUND
MATURITY SCHEDULE OF PORTFOLIO
August 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) PAR AMOUNT PERCENTAGE OF PORTFOLIO
- ------------------ ------------ -----------------------------
<S> <C> <C> <C>
(CUMULATIVE)
1-7 $ 88,240,000 32.0% 32.0%
8-14 25,000,000 9.1 41.1
15-30 17,368,291 6.3 47.4
31-60 46,767,000 17.0 64.4
61-90 37,700,000 13.7 78.1
91-120 16,500,000 6.0 84.1
121-150 5,085,547 1.8 85.9
Over 150 39,000,000 14.1 100.0
</TABLE>
Average Weighted Maturity -- 50 Days
See Accompanying Notes to Financial Statements.
8
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WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS
August 31, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
------------ ------------------------------------------ ------------- --------- ----- -----------
<C> <S> <C> <C> <C> <C>
NEW YORK (97.4%)
$ 2,000,000 Albany County New York BANS (NR/NR) 02/21/96 6.000% $ 2,011,214
700,000 Erie County New York Water Authority
Series B (AMBAC Insurance) VRDN+ (VMIG1/A-1+) 09/07/95 3.250 700,000
3,000,000 Massapequa New York Union Free School
District TANS (MIG1/NR) 06/28/96 4.250 3,011,878
5,100,000 Metropolitan Transportation Authority
Commuter Facility Series 1991 (Morgan
Guaranty LOC) VRDN+ (VMIG1/A-1) 09/07/95 3.450 5,100,000
1,000,000 Monroe County Industrial Development
Agency Electronic Navigational Industries
Facility Series 1984 MB (Aa1/A-1+) 07/01/96 3.800 1,000,000
500,000 New York City General Obligation Bonds
Series E2 (Fuji Bank LOC) VRDN+ (VMIG1/A-1) 09/01/95 3.500 500,000
1,500,000 New York City General Obligation Fiscal
1994 H-3 TECP (VMIG/A-1) 10/02/95 3.900 1,500,000
2,000,000 New York City General Obligation Fiscal
1994 H-3 TECP (VMIG1/A-1) 10/25/95 3.800 2,000,000
1,500,000 New York City General Obligation Series B
(Chemical Bank LOC) TECP (VMIG1/A-1) 10/12/95 3.650 1,500,000
700,000 New York City Housing Development
Authority (York Ave.) (Chemical Bank LOC)
VRDN+ (NR/A-1) 09/07/95 3.500 700,000
2,095,000 New York City Housing Development
Corporation (Parkgate Tower) (Citibank
LOC) VRDN+ (VMIG1/A-1) 09/07/95 3.400 2,095,000
1,000,000 New York City Housing Development
Corporation (Upper Fifth Avenue Project)
Series 1989A (Bankers Trust LOC) VRDN+ (VMIG1/A-1) 09/07/95 3.300 1,000,000
1,800,000 New York City Industrial Development
Agency (La Guardia Project) Series 1985
(Banque Indosuez LOC) VRDN+ (NR/A-1) 09/07/95 3.350 1,800,000
1,000,000 New York City Industrial Development
Agency Columbia Grammar and Preparatory
School Civic Facility Revenue Bonds 1994
(Chemical Bank LOC) VRDN+ (NR/A-1) 09/07/95 3.450 1,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
9
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<PAGE>
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WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
------------ ------------------------------------------ ------------- --------- ----- -----------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$ 500,000 New York City Industrial Development
Revenue Bonds Nippon Cargo Airlines
Company (Ind. Bank of Japan LOC) VRDN+ (NR/A-1+) 09/07/95 4.000% $ 500,000
2,000,000 New York City Municipal Water TECP (P-1/A-1+) 10/05/95 3.800 2,000,000
3,000,000 New York City RANS (MIG1/SP-1+) 04/11/96 4.500 3,013,354
1,447,000 New York City Trust for Cultural Resources
(Carnegie Hall) (Dai-Ichi Kangyo LOC)
VRDN+ (VMIG1/A-1) 09/07/95 3.450 1,447,000
1,000,000 New York City Trust for Cultural Resources
Adjustable Tender Revenue Bonds (American
Museum of Natural History) Series 1991B
(MBIA Insurance) (Swiss Bank LOC) VRDN+ (VMIG1/A-1+) 09/07/95 3.200 1,000,000
1,900,000 New York City Trust for Cultural Resources
Museum of Broadcasting Series 1989
(Sumitomo Bank LOC) VRDN+ (VMIG1/A-1) 09/07/95 3.450 1,900,000
2,100,000 New York Local Government Assistance
Corporation (Canadian Imperial Bank LOC)
VRDN+ (VMIG1/A-1+) 09/07/95 3.500 2,100,000
900,000 New York State Energy Research
& Development Authority Pollution Control
Revenue Refunding Bond (Central Hudson Gas
& Electric) Series 1985A (Bankers Trust
LOC) VRDN+ (P-1/NR) 09/07/95 3.350 900,000
1,400,000 New York State Energy Research &
Development Authority Pollution Control
Revenue Refunding Bonds (Rochester Gas &
Electric) Series 1984 (Bank of New York
LOC) VRDN+ (P-1/NR) 09/01/95 3.500 1,400,000
2,000,000 New York State Energy Research and
Development Authority (New York State
Electric & Gas) Series 1985A (Morgan
Guaranty LOC) MB (P-1/A-1+) 03/15/96 4.650 2,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
10
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<PAGE>
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WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
------------ ------------------------------------------ ------------- --------- ----- -----------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$ 2,000,000 New York State Energy Research and
Development Authority Electric Facilities
Revenue Bonds 1995 Series A (Long Island
Lighting Company Project) (Union Bank of
Switzerland LOC) VRDN+ (VMIG1/NR) 09/07/95 3.350% $ 2,000,000
2,500,000 New York State Energy Research and
Development Authority Pollution Control
Revenue Bonds (Long Island Lighting
Company) (Deutsche Bank LOC) MB (VMIG1/A-1+) 03/01/96 4.700 2,500,000
7,000,000 New York State G.O. BANS Series R (P-1/A-1) 10/19/95 3.750 7,000,000
500,000 New York State Housing Finance Agency
Housing Revenue Bonds (Mt. Sinai School of
Medicine) Series 1984A (LOC Golden State
Sanwa Bank) VRDN+ (VMIG1/NR) 09/07/95 3.600 500,000
100,000 New York State Housing Finance Agency
Housing Revenue Bonds (Normandie Court)
Series 1991A (LOC Societe Generale)
(Society General LOC) VRDN+ (VMIG1/A-1+) 09/07/95 3.400 100,000
1,300,000 New York State Housing Finance Agency
Housing Revenue Bonds (Memorial Sloan
Kettering Cancer Center) Series 1985A
VRDN+ (NR/A-1+) 09/07/95 3.450 1,300,000
1,200,000 New York State Housing Finance Agency
Multi-Family Housing (Pleasant Creek
Assoc) 1988 Series A (AMBAC Insurance)
VRDN+ (VMIG1/A-1+) 09/07/95 3.450 1,200,000
230,000 New York State Job Development Authority
State Guaranteed Variable Rate Special
Purpose Bonds Series 1984C (Sumitomo Bank
LOC) VRDN+ (VMIG1/A-1+) 09/01/95 3.700 230,000
110,000 New York State Job Development Authority
State Guaranteed Variable Rate Special
Purpose Bonds Series 1984F (Sumitomo Bank
LOC) VRDN+ (VMIG1/A-1+) 09/01/95 3.700 110,000
</TABLE>
See Accompanying Notes to Financial Statements.
11
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
------------ ------------------------------------------ ------------- --------- ----- -----------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$ 640,000 New York State Job Development Authority
State Guaranteed Variable Rate Special
Purpose Bonds Series 1984G (Sumitomo Bank
LOC) VRDN+ (VMIG1/A-1+) 09/01/95 3.700% $ 640,000
810,000 New York State Job Development Authority
State Guaranteed Variable Rate Special
Purpose Bonds Series 1984H (Sumitomo Bank
LOC) VRDN+ (VMIG1/A-1+) 09/01/95 3.700 810,000
2,400,000 New York State Local Government Assistance
Corporation Variable Rate Revenue Bonds
Series 1995F (Toronto Dominion LOC) VRDN+ (VMIG1/A-1+) 09/07/95 3.350 2,400,000
500,000 New York State Medical Care Facilities
Finance Agency (Lenox Hill Hospital
Project) 1990 Series A (Chemical Bank LOC)
VRDN+ (VMIG1/NR) 09/07/95 3.450 500,000
2,600,000 New York State Power Authority Adjustable
Tender Notes MB (VMIG1/A-1) 09/01/95 4.400 2,600,000
1,000,000 North Hempstead New York Solid Waste
Management Authority Series A 1993 VRDN+ (VMIG1/NR) 09/07/95 3.500 1,000,000
3,000,000 Suffolk County Industrial Development
Authority (Nissequogue Cogen) Series 1993
(Toronto Dominion LOC) VRDN+ (VMIG1/A-1+) 09/07/95 3.550 3,000,000
1,500,000 Suffolk County Water Authority BANS 1994
VRDN+ (VMIG1/NR) 09/07/95 3.400 1,500,000
1,000,000 Town of Babylon Industrial Development
Agency (J. D'Addario & Company, Inc.
Project) Series 1994 (National Westminster
LOC) VRDN+ (MIG1/NR) 09/07/95 3.550 1,000,000
100,000 Town of Montgomery Industrial Development
Agency Authority (Service Merchandise Co.,
Inc.) (LOC Industrial Bank of Japan) VRDN+ (NR/A-1) 09/15/95 4.050 100,000
2,100,000 Triborough Bridge and Tunnel Authority
(FGIC Insurance) VRDN+ (VMIG1/A-1+) 09/07/95 3.300 2,100,000
-----------
TOTAL NEW YORK (Cost $70,768,446) 70,768,446
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
------------ ------------------------------------------ ------------- --------- ----- -----------
<C> <S> <C> <C> <C> <C>
PUERTO RICO (2.3%)
$ 200,000 Government Development Bank for Puerto
Rico Adjustable Refunding Bonds Series
1985 (Credit Suisse LOC) VRDN+ (VMIG1/NR) 09/07/95 3.200% $ 200,000
1,000,000 Puerto Rico Industrial Medical Higher
Education and Environmental Pollution
Control Facility Financing Authority (Key
Pharmaceuticals Schering-Plough Inc.
Project) Series 1983A MB (NR/AAA) 12/01/95 4.350 1,000,000
500,000 Puerto Rico Industrial, Medical, Higher
Education and Environmental Pollution
Control Facilities Authority (Ana G.
Mendez Educational Foundation) (Bank of
Tokyo LOC) VRDN+ (NR/A-1) 09/07/95 3.600 500,000
-----------
TOTAL PUERTO RICO (Cost $1,700,000) 1,700,000
-----------
TOTAL INVESTMENTS AT VALUE (99.7%) (Cost $72,468,446*) 72,468,446
OTHER ASSETS IN EXCESS OF LIABILITIES (0.3%) 235,051
-----------
NET ASSETS (100.0%) (applicable to 72,716,616 common shares) $72,703,497
-----------
-----------
NET ASSET VALUE, offering and redemption price per common share
($72,703,497[div]72,716,616) $1.00
-----
-----
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C> <C>
BANS = Bond Anticipation Notes
MB = Municipal Bonds
RANS = Revenue Anticipation Notes
TANS = Tax Anticipation Notes
TECP = Tax Exempt Commercial Paper
VRDN = Variable Rate Demand Notes
</TABLE>
+ The interest rate shown is the rate as of August 31, 1995 and the maturity
date shown is the longer of the next interest readjustment date or the date
the principal amount owed can be recovered through demand.
* Also represents cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
MATURITY SCHEDULE OF PORTFOLIO
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) PAR AMOUNT PERCENTAGE OF PORTFOLIO
- ------------------ ----------- -----------------------------
(CUMULATIVE)
<S> <C> <C> <C>
1-7 $43,832,000 60.5% 60.5%
8-14 0 0.0 60.5
15-30 100,000 0.1 60.6
31-60 14,000,000 19.4 80.0
61-90 0 0.0 80.0
91-120 1,000,000 1.4 81.4
121-150 0 0.0 81.4
Over 150 13,500,000 18.6 100.0
Average Weighted Maturity -- 57 Days
</TABLE>
See Accompanying Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS MONEY MARKET FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Cash Reserve New York Tax
Fund Exempt Fund
-------------- --------------
<S> <C> <C>
INTEREST INCOME $9,570,667 $1,533,359
---------- ----------
EXPENSES:
Investment advisory 385,889 98,153
Sub-investment advisory and administration 385,889 98,153
Administrative services 154,356 39,261
Audit 13,781 13,877
Custodian 38,734 10,168
Directors' 9,981 10,054
Distribution 0 10,080
Insurance 11,060 3,016
Legal 11,698 10,642
Printing 11,872 7,962
Registration 27,675 5,785
Transfer agent 61,700 18,518
Miscellaneous 16,703 12,045
---------- ----------
1,129,338 337,714
Less: fees waived (280,382) (111,698)
---------- ----------
Total expenses 848,956 226,016
---------- ----------
Net investment income 8,721,711 1,307,343
---------- ----------
NET REALIZED GAIN FROM INVESTMENTS:
Net realized gain from security transactions 2,141 645
---------- ----------
Net increase in net assets from operations $8,723,852 $1,307,988
---------- ----------
---------- ----------
</TABLE>
See Accompanying Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS MONEY MARKET FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Cash Reserve New York Tax
Fund Exempt Fund
-------------------------------------- ---------------------------------------
For the Six For the Six
Months Ended Months Ended
August 31, 1995 For the Year Ended August 31, 1995 For the Year Ended
(Unaudited) February 28, 1995 (Unaudited) February 28, 1995
------------- ------------------ ------------- ------------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 8,721,711 $ 14,018,197 $ 1,307,343 $ 2,138,667
Net realized gain (loss) from
security transactions 2,141 9,641 645 (189)
Net decrease in unrealized market
discount 0 0 0 (6)
------------- ---------------- ------------- --------------
Net increase in net assets
resulting from operations 8,723,852 14,027,838 1,307,988 2,138,472
------------- ---------------- ------------- --------------
FROM DISTRIBUTIONS:
Dividends from net investment
income:
Common shares (8,721,711) (14,018,197) (1,217,907) (1,892,371)
Series 2 shares 0 0 (89,436) (246,296)
------------- ---------------- ------------- ---------------
Net decrease from
distributions (8,721,711) (14,018,197) (1,307,343) (2,138,667)
------------- ---------------- ------------- ---------------
FROM CAPITAL SHARE TRANSACTIONS
(AT $1 PER SHARE):
Proceeds from sale of shares 836,624,320 1,886,500,990 122,365,169 246,396,767
Reinvested dividends 4,509,670 8,456,201 558,226 1,066,251
Net asset value of shares redeemed (970,455,438) (1,769,313,517) (137,939,907) (237,850,988)
------------- ---------------- ------------- ---------------
Net increase (decrease) in net
assets from capital share
transactions (129,321,448) 125,643,674 (15,016,512) 9,612,030
------------- ---------------- ------------- ---------------
Net increase (decrease) in net
assets (129,319,307) 125,653,315 (15,015,867) 9,611,835
NET ASSETS:
Beginning of period 403,210,782 277,557,467 87,719,364 78,107,529
------------- ---------------- ------------- ---------------
End of period $ 273,891,475 $ 403,210,782 $ 72,703,497 $ 87,719,364
------------- ---------------- ------------- --------------
------------- ---------------- ------------- --------------
</TABLE>
See Accompanying Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS CASH RESERVE FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended February 28 or 29,
August 31, 1995 ----------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
---------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
Income from Investment
Operations:
Net Investment Income .0284 .0426 .0273 .0322 .0542 .0760
Net Realized Gain on Securities 0 0 0 0 .0010 0
-------- -------- -------- -------- -------- --------
Total from Investment
Operations .0284 .0426 .0273 .0322 .0552 .0760
-------- -------- -------- -------- -------- --------
Less Distributions:
Dividends (from net investment
income) (.0284) (.0426) (.0273) (.0322) (.0542) (.0760)
Distributions (from capital
gains) 0 0 0 0 (.0010) 0
-------- -------- -------- -------- -------- --------
Total Distributions (.0284) (.0426) (.0273) (.0322) (.0552) (.0760)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return 5.78%* 4.35% 2.76% 3.27% 5.66% 7.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $273,891 $403,211 $277,557 $287,723 $426,479 $361,428
Ratios to average daily net assets:
Operating expenses .55%* .55% .54% .50% .50% .50%
Net investment income 5.63%* 4.41% 2.73% 3.22% 5.45% 7.59%
Decrease reflected in above
operating expense ratios due
to waivers/ reimbursements .18%* .19% .13% .17% .16% .13%
</TABLE>
* Annualized
See Accompanying Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Common Shares
-------------------------------------------------------------------------------------------
For the Six
Months Ended For the Year Ended February 28 or 29,
August 31, 1995 --------------------------------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
----------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income .0169 .0246 .0175 .0224 .0329 .0486
Less Distributions:
Dividends (from net
investment income) (.0169) (.0246) (.0175) (.0224) (.0329) (.0486)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total Return 3.40%* 2.48% 1.77% 2.26% 3.34% 4.97%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000s) $72,703 $77,111 $65,984 $76,995 $65,438 $85,783
Ratios to average daily
net assets:
Operating expenses .55%* .55% .54% .50% .50% .50%
Net investment income 3.34%* 2.46% 1.75% 2.23% 3.27% 4.84%
Decrease reflected in
above operating
expense ratios due
to waivers/
reimbursements .28%* .27% .19% .28% .23% .21%
<CAPTION>
Series 2 Shares
---------------------------------------------------------------------------------------------------
For the Period April 30, 1990
March 1, 1995 (Initial Issuance)
Through For the Year Ended February 28 or 29, Through
June 9, 1995 -------------------------------------------------------- February 28,
(Unaudited) 1995 1994 1993 1992 1991
----------- -------- -------- -------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income From Investment
Operations:
Net Investment Income .0085 .0211 .0140 .0189 .0295 .0391
Less Distributions:
Dividends (from net
investment income) (.0085) (.0211) (.0140) (.0189) (.0295) (.0391)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total Return 3.15%* 2.13% 1.41% 1.90% 2.99% 4.78%*
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000s) $ 0 $10,608 $12,123 $10,165 $9,307 $15,151
Ratios to average daily
net assets:
Operating expenses .90%* .90% .89% .85% .85% .65%*
Net investment income 3.15%* 2.11% 1.40% 1.87% 2.95% 4.63%*
Decrease reflected in
above operating
expense ratios due
to waivers/
reimbursements .26%* .27% .19% .28% .23% .42%*
</TABLE>
* Annualized
See Accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
18
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Money Market Funds are comprised of the Warburg Pincus
Cash Reserve Fund (the 'Cash Reserve Fund') and the Warburg Pincus New York Tax
Exempt Fund (the 'New York Tax Exempt Fund') which are registered under the
Investment Company Act of 1940, as amended (the '1940 Act'), as diversified and
non-diversified, open-end management investment companies, respectively.
Investment objectives for each Fund are as follows: the Cash Reserve Fund
is designed to provide investors with high current income consistent with
liquidity and stability of principal; the New York Tax Exempt Fund is designed
to provide investors with as high a level of current income that is exempt from
Federal, New York State, and New York City personal income taxes as is
consistent with preservation of capital and liquidity.
Issuers of New York tax-exempt securities (including issuers whose
obligations may be acquired by the New York Tax Exempt Fund) have experienced
serious financial difficulties in recent years. These difficulties have at times
jeopardized the credit standing and impaired the borrowing abilities of all New
York issuers and have generally contributed to higher interest costs for their
borrowings and fewer markets for their outstanding debt obligations. During the
recent past, several different issuers of Municipal Securities of New York State
and its agencies and instrumentalities and of New York City have been downgraded
by Standard & Poor's Ratings Group and Moody's Investors Service, Inc. A
recurrence of the financial difficulties experienced by certain issuers of New
York tax-exempt securities could result in defaults or declines in the market
values of their existing obligations and, possibly, in the obligations of other
issuers of New York tax-exempt securities.
The net asset value of each Fund is determined as of noon and the close of
regular trading on the New York Stock Exchange on each day, except on days when
the Exchange is closed. Each Fund's investments are valued under the amortized
cost method which approximates current market value. Under this method,
investments are valued at cost when purchased and thereafter a constant
proportionate amortization of any discount or premium is recorded until maturity
of the investment.
Security transactions are accounted for on trade date. 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 capital gains, if any, are declared and paid annually,
although the Cash Reserve 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.
Each Fund intends to continue to comply with the special provisions of the
Internal Revenue Code available to investment companies and therefore no Federal
income tax provision is required.
Each Fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, each Fund acquires an underlying security
subject to an obligation of the seller to repurchase the security. The value of
the underlying security will be maintained at an amount at least equal to the
total amount of the repurchase obligation, including interest. The collateral is
in the Fund's possession.
19
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Counsellors'), a wholly-owned
subsidiary of Warburg, Pincus Counsellors G.P. ('Counsellors G.P.'), serves as
each Fund's investment adviser. For its investment advisory services,
Counsellors currently receives a fee calculated at an annual rate of .25% of
each Fund's average daily net assets. For the six months ended August 31, 1995,
investment advisory fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- --------------------- --------- ---------------------
<S> <C> <C> <C>
Cash Reserve $ 385,889 $(112,153) $ 273,736
New York Tax Exempt 98,153 (44,755) 53,398
</TABLE>
PNC Institutional Management Corporation ('PIMC'), a wholly-owned
subsidiary of PNC Bank, N.A., serves as each Fund's sub-investment adviser and
administrator. For its sub-investment advisory and administrative services, PIMC
currently receives a fee calculated at an annual rate of .25% of each Fund's
average daily net assets. For the six months ended August 31, 1995,
sub-investment advisory and administration fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS SUB-ADVISORY NET SUB-ADVISORY
AND AND
FUND ADMINISTRATION FEE WAIVER ADMINISTRATION FEE
---- ------------------ --------- ------------------
<S> <C> <C> <C>
Cash Reserve $385,889 $(168,229) $217,660
New York Tax Exempt 98,153 (66,943) 31,210
</TABLE>
Counsellors Funds Service, Inc. ('CFSI'), a wholly-owned subsidiary of
Counsellors, serves as each Fund's co-administrator. For its administrative
services, CFSI currently receives a fee calculated at an annual rate of .10% of
each Fund's average daily net assets. For the six months ended August 31, 1995,
administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
GROSS
FUND ADMINISTRATION FEE
---- ------------------
<S> <C>
Cash Reserve $154,356
New York Tax Exempt 39,261
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly-owned subsidiary of
Counsellors, serves as each Fund's distributor. No compensation is payable by
the Funds to CSI for distribution services.
3. CAPITAL SHARE TRANSACTIONS
Each Fund is authorized to issue three billion full and fractional shares
of capital stock, $.001 par value per share, of which one billion shares of New
York Tax Exempt Fund are designated as Series 2 Shares. Series 2 Shares are
identical to Common Shares in all respects except that Series 2 Shares are
20
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS MONEY MARKET FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
August 31, 1995 (Unaudited)
- --------------------------------------------------------------------------------
sold to institutions ('Service Organizations') that perform certain
distribution, shareholder servicing, accounting and/or administrative services
for their customers who are beneficial owners of Series 2 Shares. Series 2
Shares bear the fees paid pursuant to a distribution plan adopted by each Fund
in an amount not to exceed .75 of 1.00% (on an annualized basis) of the average
daily net asset value of the shares held by the institutions for the benefit of
their customers and enjoy certain exclusive voting rights on matters relating to
those fees.
With respect to Series 2 Shares, Service Organizations earned the following
distribution fees for the period March 1, 1995 through June 9, 1995:
<TABLE>
<CAPTION>
FUND DISTRIBUTION FEE
---- ----------------
<S> <C>
New York Tax Exempt $ 10,080
</TABLE>
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
--------------------------------- --------------------------------
Common Shares Common Shares
For the For the
Six Months Ended For the Six Months Ended For the
August 31, 1995 Year Ended August 31, 1995 Year Ended
(Unaudited) February 28, 1995 (Unaudited) February 28, 1995
----------- ----------------- ----------- -----------------
<S> <C> <C> <C> <C>
Shares sold 836,624,320 1,886,500,990 107,778,747 204,764,009
Shares issued to shareholders
on reinvestment of dividends 4,509,670 8,456,201 464,581 822,241
Shares redeemed (970,455,438) (1,769,313,517) (112,650,749) (194,459,365)
------------ -------------- ------------ ------------
Net increase (decrease) in
shares (129,321,448) 125,643,674 (4,407,421) 11,126,885
------------ -------------- ------------ ------------
------------ -------------- ------------ ------------
<CAPTION>
Series 2 Shares
For the Period
March 1, 1995
through For the
June 9, 1995 Year Ended
(Unaudited) February 28, 1995
----------- -----------------
<S> <C> <C>
Shares sold 14,586,422 41,632,750
Shares issued to shareholders
on reinvestment of dividends 93,645 244,010
Shares redeemed (25,289,158) (43,391,623)
----------- -----------
Net increase (decrease) in
shares (10,609,091) (1,514,863)
----------- -----------
----------- -----------
</TABLE>
4. NET ASSETS
Net Assets at August 31, 1995, consisted of the following:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
----------------- ------------------------
<S> <C> <C>
Capital contributed, net $273,889,263 $72,716,623
Accumulated net realized gain (loss) from
security transactions 2,212 (13,126)
------------ -----------
Net assets $273,891,475 $72,703,497
------------ -----------
------------ -----------
</TABLE>
21
- --------------------------------------------------------------------------------
<PAGE>
FURTHER INFORMATION IS CONTAINED IN THE
PROSPECTUS, WHICH MUST PRECEDE OR
ACCOMPANY THIS REPORT.
WARBURG PINCUS FUNDS
P.O. BOX 9030
BOSTON, MASSACHUSETTS 02205-9030
SHAREHOLDER SERVICES
1-800-888-6878
PROSPECTUSES
1-800-257-5614
[WARBURG PINCUS FUNDS LOGO]
SEMIANNUAL
REPORT
AUGUST 31, 1995
[ ] WARBURG PINCUS
CASH RESERVE FUND
[ ] WARBURG PINCUS
NEW YORK TAX EXEMPT FUND
COUNSELLORS SECURITIES INC., DISTRIBUTOR
WPCRNY-3-0895
STATEMENT OF DIFFERENCES
The division symbol shall be expressed as ...... [div]
