<PAGE>
<PAGE>
SEMIANNUAL
REPORT
August 31, 1996
WARBURG PINCUS
CASH RESERVE FUND
-
WARBURG PINCUS
NEW YORK TAX EXEMPT FUND
[Logo]
<PAGE>
<PAGE>
The views of the Funds' management are as of the date of the letters and
portfolio holdings are as of August 31, 1996; these views and portfolio holdings
may have changed subsequent to these dates. Nothing in this semiannual report is
a recommendation to purchase or sell securities.
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
- --------------------------------------------------------------------------------
Dear Shareholder: October 18, 1996
Most short-term interest rates moved higher during the six-month period ended
August 31, 1996, despite the fact that monetary policy was unchanged. Overnight
rates remained near the 5.25% federal-funds rate; however, longer-dated
money-market securities offered 10 to 50 basis points more, as the threat of
inflation caused the short end of the yield curve to shift to a positive slope.
The primary cause of this heightened concern about inflation was a jump in
economic activity. Gross domestic product in the January to March quarter
advanced 2%, and grew at an annualized rate of 4.7% in the April to June
quarter. Offsetting this news on economic strength, however, were reports on
consumer and wholesale prices that showed little, if any, acceleration in
inflationary pressures. In fact, inflation rose a mild 2.1% in the second
quarter, even slower than the 2.3% increase reported in the first quarter. Our
current outlook is that the third quarter should show that gross domestic
product slowed to between 2.0% and 2.5%, in line with the Fed's target. The
resumption of slower growth, coupled with low inflation, should keep Federal
Reserve monetary policy on hold through year end.
Warburg Pincus Cash Reserve (the 'Fund') had a 30-day annualized current
yield of 4.94% on August 31, 1996. Net assets of the Fund were $495.4 million,
up from $383.8 million on February 29, 1996. For the 7-day period ended August
31, 1996, the annualized current yield was 4.95%. The Fund's average weighted
maturity on August 31, 1996, was 56 days, six days longer than at the end of
February.
The Fund will continue to purchase only high-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
President
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
- --------------------------------------------------------------------------------
Dear Shareholder: October 18, 1996
The recent tendency of the national economy to emit conflicting signals about
its strength made it difficult for a consensus to form about the movement of
short-term interest rates during the six months ended August 31, 1996. The
debate led to bouts of intense Fed watching and, on several occasions, the
markets attempted to discount a Fed tightening only to retrace the steps when it
failed to materialize. The effect on the short-term municipal market has been
slight due to built-in seasonal patterns and overriding supply considerations.
New York City marketed an $800 million issue of tax anticipation notes maturing
in February 1997 that was well received despite aggressive pricing. New note
supply entered the market in early July and several issues were purchased by
Warburg Pincus New York Tax Exempt Fund (the 'Fund').
Assets for the Fund ranged from a low of $101.8 million in February to a high
of $151.9 million in March. On August 31, 1996, net assets stood at $113.0
million. For the 7-day period ended August 31, 1996 the annualized current yield
was 2.88%. The Fund's average weighted maturity remained in the 30 to 40 day
range during the early part of the period, but increased as attractive
opportunities to extend became available. On August 31, 1996, the average
weighted maturity was 48 days and the Fund's 30-day annualized current yield was
2.91%.
New York state's diverse economic base continues to recover modestly from the
recession of the late '80s and early '90s. While the state's budget process is
highly politicized, financial operations have been improving with operating
surpluses being generated in the past four fiscal years. Strides have also been
made in cutting expenditures, though more belt tightening is required to reach
structural balance. Recent tax cutting makes this a more difficult task. New
federal welfare regulations, which will reduce certain reimbursements, will have
a greater impact on New York than on other states due to New York's
constitutional mandate to provide aid to all its needy citizens. How the state
deals with this challenge will need to be closely monitored. New York City's
economy continues to show steady, albeit modest, growth. The City closed fiscal
1996 with its 16th consecutive operating surplus, though long-term budgetary
balance seems elusive. Despite substantial expenditure reductions, the City has
been unable to eliminate non-recurring revenue enhancements from its budget.
Warburg Pincus New York Tax Exempt Fund continues to seek investments in
high-quality issues, the income from which is exempt from federal, New York
state and New York City personal income taxes and that is consistent with
preservation of capital and liquidity. We appreciate your continued support and
investment in the Fund.
Dale C. Christensen
President
2
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (2.4%)
Federal Farm Credit Bank (2.4%)
$ 2,000,000 Federal Farm Credit Bank 09/03/96 4.9800 $ 2,000,000
5,000,000 Federal Farm Credit Bank 10/01/96 5.4100 5,000,000
5,000,000 Federal Farm Credit Bank 12/02/96 5.3400 5,000,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $12,000,000) 12,000,000
------------
BANKERS' ACCEPTANCES (36.3%)
Domestic Bankers' Acceptances (23.3%)
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 09/20/96 5.2000 997,256
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 09/27/96 5.2000 996,244
1,500,000 Bank of America National Trust &
Savings Association (P-1, A-1) 09/27/96 5.4000 1,494,150
2,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 09/30/96 5.4000 1,991,300
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 10/03/96 5.4300 995,173
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 12/04/96 5.4000 985,900
2,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 12/17/96 5.4000 1,967,900
3,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 12/18/96 5.4000 2,951,400
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 12/23/96 5.4000 983,050
1,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 02/07/97 5.3300 976,459
1,000,000 Bank of Hawaii (P-1, A-1) 11/04/96 5.3100 990,560
1,177,165 Bank of Hawaii (P-1, A-1) 12/02/96 5.4200 1,160,860
1,080,000 Bank of Hawaii (P-1, A-1) 12/19/96 5.4200 1,062,277
1,076,247 Chase Manhattan Corp. (P-1, A-1) 09/05/96 5.3400 1,075,608
500,000 Chase Manhattan Corp. (P-1, A-1) 09/16/96 5.2500 498,906
1,400,000 Chase Manhattan Corp. (P-1, A-1) 09/23/96 5.2700 1,395,491
2,635,884 Chase Manhattan Corp. (P-1, A-1) 11/12/96 5.4200 2,607,311
887,360 Chase Manhattan Corp. (P-1, A-1) 12/04/96 5.3200 875,034
1,000,000 Chase Manhattan Corp. (P-1, A-1) 12/04/96 5.4200 985,848
1,000,000 Chase Manhattan Corp. (P-1, A-1) 12/04/96 5.4300 985,822
1,908,079 Chase Manhattan Corp. (P-1, A-1) 12/05/96 5.3200 1,881,292
971,518 Chase Manhattan Corp. (P-1, A-1) 12/06/96 5.3200 957,735
1,000,000 Chase Manhattan Corp. (P-1, A-1) 12/11/96 5.4200 984,794
1,000,000 Chase Manhattan Corp. (P-1, A-1) 12/11/96 5.4300 984,766
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
BANKERS' ACCEPTANCES (CONT'D)
<C> <S> <C> <C> <C> <C>
Domestic Bankers' Acceptances (cont'd)
$ 800,779 Chase Manhattan Corp. (P-1, A-1) 12/23/96 5.3300 $ 787,382
3,000,000 Chase Manhattan Corp. (P-1, A-1) 12/23/96 5.4400 2,948,772
1,000,000 Chase Manhattan Corp. (P-1, A-1) 12/24/96 5.4400 982,773
2,000,000 Chase Manhattan Corp. (P-1, A-1) 01/15/97 5.5400 1,958,142
667,591 Citibank, N.A. (P-1, A-1) 09/06/96 5.4500 667,086
2,000,000 Citibank, N.A. (P-1, A-1) 09/16/96 5.2300 1,995,642
716,969 Citibank, N.A. (P-1, A-1) 09/19/96 5.6000 714,961
549,555 Citibank, N.A. (P-1, A-1) 09/20/96 5.4500 547,974
2,000,000 Citibank, N.A. (P-1, A-1) 09/23/96 5.2300 1,993,608
411,138 Citibank, N.A. (P-1, A-1) 10/01/96 5.5700 409,230
393,263 Citibank, N.A. (P-1, A-1) 10/07/96 5.5200 391,092
335,574 Citibank, N.A. (P-1, A-1) 10/28/96 5.4000 332,705
362,610 Citibank, N.A. (P-1, A-1) 11/04/96 5.3800 359,141
767,901 Citibank, N.A. (P-1, A-1) 11/07/96 5.3800 760,212
310,513 Citibank, N.A. (P-1, A-1) 11/22/96 5.4100 306,686
836,086 Citibank, N.A. (P-1, A-1) 12/30/96 5.6800 820,256
2,000,000 Citibank, N.A. (P-1, A-1) 01/27/97 5.5500 1,954,367
1,980,539 CoreStates Bank, N.A. (P-1, A-1) 09/23/96 5.2100 1,974,233
2,000,000 CoreStates Bank, N.A. (P-1, A-1) 10/07/96 5.3000 1,989,400
2,000,000 CoreStates Bank, N.A. (P-1, A-1) 12/23/96 5.4500 1,965,786
3,000,000 CoreStates Bank, N.A. (P-1, A-1) 12/23/96 5.5000 2,948,208
1,000,000 CoreStates Bank, N.A. (P-1, A-1) 12/27/96 5.4700 982,223
1,500,000 CoreStates Bank, N.A. (P-1, A-1) 12/30/96 5.4700 1,472,650
3,500,000 CoreStates Bank, N.A. (P-1, A-1) 12/30/96 5.4900 3,435,950
1,380,000 CoreStates Bank, N.A. (P-1, A-1) 01/21/97 5.4000 1,350,606
5,895,099 CoreStates Bank, N.A. (P-1, A-1) 02/03/97 5.3700 5,758,800
1,000,000 First National Bank of Chicago (P-1, A-1+) 09/24/96 5.3500 996,582
1,000,000 First National Bank of Chicago (P-1, A-1+) 09/25/96 5.3500 996,433
500,000 First National Bank of Chicago (P-1, A-1+) 10/08/96 5.3000 497,276
1,000,000 First National Bank of Chicago (P-1, A-1+) 10/10/96 5.3100 994,248
500,000 First National Bank of Chicago (P-1, A-1+) 10/15/96 5.3000 496,761
1,500,000 First National Bank of Chicago (P-1, A-1+) 11/04/96 5.3100 1,485,840
2,000,000 First Union National Bank of NC (P-1, A-1) 09/04/96 5.2300 1,999,128
2,000,000 First Union National Bank of NC (P-1, A-1) 09/16/96 5.2300 1,995,642
1,000,000 First Union National Bank of NC (P-1, A-1) 09/20/96 5.2300 997,240
2,000,000 First Union National Bank of NC (P-1, A-1) 10/29/96 5.2900 1,982,954
2,000,000 First Union National Bank of NC (P-1, A-1) 11/14/96 5.4100 1,977,759
3,000,000 First Union National Bank of NC (P-1, A-1) 12/02/96 5.4500 2,958,217
2,000,000 First Union National Bank of NC (P-1, A-1) 12/06/96 5.5200 1,970,560
1,000,000 First Union National Bank of NC (P-1, A-1) 12/13/96 5.5400 984,149
</TABLE>
See Accompanying Notes to Financial Statements.
4
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
BANKERS' ACCEPTANCES (CONT'D)
<C> <S> <C> <C> <C> <C>
Domestic Bankers' Acceptances (cont'd)
$ 2,629,554 First Union National Bank of NC (P-1, A-1) 12/16/96 5.3200 $ 2,588,364
1,000,000 First Union National Bank of NC (P-1, A-1) 12/20/96 5.3200 983,744
3,000,000 First Union National Bank of NC (P-1, A-1) 12/23/96 5.4400 2,948,773
1,500,000 First Union National Bank of NC (P-1, A-1) 02/07/97 5.3500 1,464,556
2,000,000 NationsBank of North Carolina (P-1, A-1) 09/09/96 5.3900 1,997,604
2,000,000 NationsBank of North Carolina (P-1, A-1) 09/11/96 5.2600 1,997,078
2,000,000 NationsBank of North Carolina (P-1, A-1) 10/04/96 5.2900 1,990,302
1,000,000 NationsBank of North Carolina (P-1, A-1) 10/11/96 5.2900 994,122
1,136,580 NationsBank of North Carolina (P-1, A-1) 10/18/96 5.2900 1,128,730
1,400,000 NationsBank of North Carolina (P-1, A-1) 11/12/96 5.2900 1,385,188
1,000,000 NBD Bank, N.A. (P-1, A-1) 09/12/96 5.3000 998,381
1,789,054 State Street Bank & Trust Co. (P-1, A-1+) 09/19/96 5.2900 1,784,322
2,264,992 State Street Bank & Trust Co. (P-1, A-1+) 11/20/96 5.5000 2,237,309
1,980,854 State Street Bank & Trust Co. (P-1, A-1+) 11/27/96 5.5000 1,954,525
------------
115,378,808
------------
Foreign Bankers' Acceptances (13.0%)
2,000,000 Bank of Montreal (P-1, A-1+) 09/26/96 5.2800 1,992,667
1,500,000 Bank of Montreal (P-1, A-1+) 10/21/96 5.3600 1,488,833
3,000,000 Bank of Montreal (P-1, A-1+) 10/25/96 5.3500 2,975,925
2,000,000 Bank of Tokyo (P-1, A-1) 09/24/96 5.4000 1,993,100
2,000,000 Bank of Tokyo (P-1, A-1) 09/25/96 5.4000 1,992,800
3,000,000 Bank of Tokyo (P-1, A-1) 10/23/96 5.4700 2,976,297
2,000,000 Bank of Tokyo (P-1, A-1) 10/31/96 5.4900 1,981,700
2,000,000 Bank of Tokyo (P-1, A-1) 11/05/96 5.3100 1,980,825
1,550,000 Bank of Tokyo-Mitsubishi (P-1, A-1) 09/04/96 5.4200 1,549,300
1,950,000 Bank of Tokyo-Mitsubishi (P-1, A-1) 09/06/96 5.4200 1,948,532
2,500,000 Bank of Tokyo-Mitsubishi (P-1, A-1) 09/12/96 5.4200 2,495,860
5,000,000 Dai-Ichi Kangyo Bank (P-1, A-1) 09/04/96 5.3400 4,997,775
700,000 Dai-Ichi Kangyo Bank (P-1, A-1) 09/04/96 5.3500 699,688
5,000,000 Dai-Ichi Kangyo Bank (P-1, A-1) 09/05/96 5.3300 4,997,039
3,700,000 Dai-Ichi Kangyo Bank (P-1, A-1) 09/09/96 5.3300 3,695,618
2,100,000 Dai-Ichi Kangyo Bank (P-1, A-1) 09/27/96 5.3000 2,091,962
1,000,000 Rabobank Nederland (P-1, A-1+) 10/17/96 5.4800 992,998
4,800,000 Sanwa Bank Ltd Japan (P-1, A-1) 09/03/96 5.3600 4,798,571
378,932 Societe Generale (P-1, A-1+) 11/05/96 5.3100 375,299
850,600 Societe Generale (P-1, A-1+) 11/08/96 5.3100 842,069
1,169,569 Societe Generale (P-1, A-1+) 11/12/96 5.3100 1,157,148
863,153 Societe Generale (P-1, A-1+) 11/13/96 5.3100 853,859
717,519 Societe Generale (P-1, A-1+) 11/20/96 5.3100 709,052
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
BANKERS' ACCEPTANCES (CONT'D)
<C> <S> <C> <C> <C> <C>
Foreign Bankers' Acceptances (cont'd)
$ 804,289 Societe Generale (P-1, A-1+) 11/22/96 5.3100 $ 794,561
768,801 Societe Generale (P-1, A-1+) 11/25/96 5.3100 759,162
386,512 Societe Generale (P-1, A-1+) 12/02/96 5.3000 381,277
1,061,000 Societe Generale (P-1, A-1+) 12/02/96 5.3100 1,046,602
696,278 Societe Generale (P-1, A-1+) 12/02/96 5.3200 686,812
650,599 Societe Generale (P-1, A-1+) 12/05/96 5.3200 641,465
908,122 Societe Generale (P-1, A-1+) 12/06/96 5.3000 895,287
500,000 Societe Generale (P-1, A-1+) 12/10/96 5.3100 492,625
856,978 Societe Generale (P-1, A-1+) 12/12/96 5.3200 844,060
500,000 Societe Generale (P-1, A-1+) 12/16/96 5.3200 492,168
341,285 Societe Generale (P-1, A-1+) 12/18/96 5.3200 335,838
3,000,000 Societe Generale (P-1, A-1+) 12/20/96 5.3000 2,951,417
798,148 Societe Generale (P-1, A-1+) 12/20/96 5.3200 785,174
1,000,000 Societe Generale (P-1, A-1+) 12/24/96 5.3000 983,217
526,612 Societe Generale (P-1, A-1+) 12/24/96 5.3200 517,740
1,231,000 Societe Generale (P-1, A-1+) 12/26/96 5.3100 1,209,938
861,000 Societe Generale (P-1, A-1+) 01/21/97 5.3900 842,695
------------
64,246,955
------------
TOTAL BANKERS' ACCEPTANCES
(Cost $179,625,763) 179,625,763
------------
BANK NOTES (1.0%)
5,000,000 Bank of America National Trust &
Savings Association (P-1, A-1) 09/26/96 5.3600 5,000,000
------------
TOTAL BANK NOTES
(Cost $5,000,000) 5,000,000
------------
CERTIFICATES OF DEPOSIT (1.0)%
Domestic Certificates Of Deposit (1.0%)
5,000,000 Comerica Bank -- Detroit (P-1, A-1) 08/13/97 5.7700 4,997,437
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $4,997,437) 4,997,437
------------
COMMERCIAL PAPER (52.0%)
Asset-Backed Securities (5.9%)
2,000,000 Beta Finance, Inc. (P-1, A-1+) 09/23/96 5.2400 1,993,596
1,000,000 Beta Finance, Inc. (P-1, A-1+) 09/27/96 5.2200 996,230
5,000,000 Beta Finance, Inc. (P-1, A-1+) 10/03/96 5.2400 4,976,711
3,500,000 Beta Finance, Inc. (P-1, A-1+) 11/15/96 5.3000 3,461,354
2,000,000 Beta Finance, Inc. (P-1, A-1+) 11/22/96 5.3000 1,975,856
4,000,000 Beta Finance, Inc. (P-1, A-1+) 01/10/97 5.6200 3,918,198
5,000,000 Beta Finance, Inc. (P-1, A-1+) 02/04/97 5.5000 4,880,833
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
COMMERCIAL PAPER (CONT'D)
<C> <S> <C> <C> <C> <C>
Asset-Backed Securities (cont'd)
$ 5,100,000 Delaware Funding Corp. (P-1, A-1+) 09/06/96 5.2900 $ 5,096,253
2,000,000 Sigma Finance, Inc. (P-1, A-1+) 11/04/96 5.4900 1,980,480
------------
29,279,511
------------
Banks (1.0%)
2,585,000 Abbey National North America Corp.
(Abbey National PLC) (P-1, A-1+) 11/12/96 5.3400 2,557,392
2,500,000 AMRO N.A. Finance, Inc. (P-1, A-1+) 10/25/96 5.4200 2,479,675
------------
5,037,067
------------
Chemicals & Allied Products (0.4%)
2,000,000 Monsanto Co. (P-1, A-1) 09/27/96 5.3000 1,992,344
------------
Communication Equipment (1.4%)
5,000,000 Lucent Technologies, Inc. (P-1, A-1) 11/06/96 5.3100 4,951,325
2,000,000 Lucent Technologies, Inc. (P-1, A-1) 12/16/96 5.4800 1,967,729
------------
6,919,054
------------
Finance Lessors (4.4%)
4,000,000 General Electric Capital Corp. (P-1, A-1+) 09/05/96 5.3000 3,997,644
750,000 General Electric Capital Corp. (P-1, A-1+) 09/09/96 5.3800 749,103
1,000,000 General Electric Capital Corp. (P-1, A-1+) 09/24/96 5.4000 996,550
750,000 General Electric Capital Corp. (P-1, A-1+) 10/17/96 5.2900 744,930
2,800,000 General Electric Capital Corp. (P-1, A-1+) 11/08/96 5.3100 2,771,916
800,000 General Electric Capital Corp. (P-1, A-1+) 11/12/96 5.4900 791,216
2,000,000 General Electric Capital Corp. (P-1, A-1+) 11/13/96 5.5000 1,977,694
1,000,000 General Electric Capital Corp. (P-1, A-1+) 11/20/96 5.4500 987,889
5,000,000 General Electric Capital Corp. (P-1, A-1+) 12/02/96 5.3800 4,931,256
1,000,000 General Electric Capital Corp. (P-1, A-1+) 12/19/96 5.4500 983,499
1,000,000 General Electric Capital Corp. (P-1, A-1+) 12/26/96 5.4800 982,342
2,000,000 General Electric Capital Corp. (P-1, A-1+) 01/28/97 5.5600 1,953,976
------------
21,868,015
------------
Malt Beverages (0.1%)
450,000 Anheuser-Busch, Inc. (P-1, A-1+) 09/04/96 5.4000 449,798
------------
National Commercial Banks (1.0%)
5,000,000 Citicorp (P-1, A-1) 09/03/96 5.3000 4,998,528
------------
Newspaper: Publishing & Printing (1.0%)
5,000,000 Tribune Company (P-1, A-1) 09/11/96 5.4000 4,992,500
------------
Personal Credit Institutions (5.4%)
5,000,000 Associates Corp. of North America (P-1, A-1+) 11/06/96 5.4600 4,949,950
2,000,000 Associates Corp. of North America (P-1, A-1+) 11/13/96 5.3400 1,978,343
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
COMMERCIAL PAPER (CONT'D)
<C> <S> <C> <C> <C> <C>
Personal Credit Institutions (cont'd)
$ 2,000,000 Ford Motor Credit Corp. (P-1, A-1) 09/09/96 5.4100 $ 1,997,596
5,000,000 Ford Motor Credit Corp. (P-1, A-1) 10/16/96 5.4500 4,965,938
1,000,000 Ford Motor Credit Corp. (P-1, A-1) 10/30/96 5.4600 991,052
1,000,000 Ford Motor Credit Corp. (P-1, A-1) 11/14/96 5.5000 988,694
4,000,000 Ford Motor Credit Corp. (P-1, A-1) 11/20/96 5.4500 3,951,556
5,000,000 Ford Motor Credit Corp. (P-1, A-1) 12/03/96 5.4000 4,930,250
1,000,000 Ford Motor Credit Corp. (P-1, A-1) 12/16/96 5.3000 984,394
1,000,000 Ford Motor Credit Corp. (P-1, A-1) 12/17/96 5.3000 984,247
------------
26,722,020
------------
Pharmaceutical Preparations (2.0%)
5,000,000 Glaxo Wellcome PLC (P-1, A-1+) 10/15/96 5.4700 4,966,572
5,000,000 Glaxo Wellcome PLC (P-1, A-1+) 11/22/96 5.3000 4,939,639
------------
9,906,211
------------
Security Brokers & Dealers (13.9%)
5,000,000 Bear Stearns Companies, Inc. (P-1, A-1) 11/07/96 5.3200 4,950,494
5,000,000 Bear Stearns Companies, Inc. (P-1, A-1) 11/12/96 5.3100 4,946,900
5,000,000 Goldman Sachs Group L.P. (P-1, A-1+) 09/03/96 5.3000 4,998,528
2,000,000 Goldman Sachs Group L.P. (P-1, A-1+) 09/05/96 5.3700 1,998,807
2,000,000 Goldman Sachs Group L.P. (P-1, A-1+) 09/10/96 5.3700 1,997,315
5,000,000 Goldman Sachs Group L.P. (P-1, A-1+) 10/07/96 5.3500 4,973,250
3,000,000 Goldman Sachs Group L.P. (P-1, A-1+) 10/08/96 5.4000 2,983,350
3,000,000 Merrill Lynch & Co. Canadian (P-1, A-1+) 09/16/96 5.3700 2,993,288
2,000,000 Merrill Lynch & Co. Canadian (P-1, A-1+) 10/31/96 5.2900 1,982,367
2,000,000 Merrill Lynch & Co. Canadian (P-1, A-1+) 11/04/96 5.3200 1,981,084
5,000,000 Merrill Lynch & Co. Canadian (P-1, A-1+) 11/18/96 5.5000 4,940,417
5,000,000 Merrill Lynch & Co. Canadian (P-1, A-1+) 11/27/96 5.4200 4,934,508
3,000,000 Morgan Stanley Group, Inc. (P-1, A-1+) 09/23/96 5.4000 2,990,100
2,000,000 Morgan Stanley Group, Inc. (P-1, A-1+) 12/09/96 5.5000 1,969,750
5,000,000 Nomura Holding America, Inc. (P-1, A-1+) 09/11/96 5.4700 4,992,403
5,000,000 Nomura Holding America, Inc. (P-1, A-1+) 09/16/96 5.4500 4,988,646
5,000,000 Nomura Holding America, Inc. (P-1, A-1+) 10/09/96 5.5000 4,970,972
5,000,000 Nomura Holding America, Inc. (P-1, A-1+) 11/13/96 5.4000 4,945,250
------------
68,537,429
------------
Services -- Auto Rent & Lease (1.0%)
5,000,000 PHH Corp. (P-1, A-1) 09/24/96 5.2900 4,983,101
------------
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ----------------------------------- ------------- -------- ------- ------------
COMMERCIAL PAPER (CONT'D)
<C> <S> <C> <C> <C> <C>
Services -- Miscellaneous Amusement (1.9%)
$ 5,000,000 Walt Disney Co. (P-1, A-1) 09/03/96 5.1900 $ 4,998,558
1,500,000 Walt Disney Co. (P-1, A-1) 09/09/96 5.4000 1,498,200
2,800,000 Walt Disney Co. (P-1, A-1) 01/30/97 5.3500 2,737,167
------------
9,233,925
------------
Short-Term Business Credit Institutions (11.2%)
5,000,000 American Express Credit Corp. (P-1, A-1) 09/16/96 5.2800 4,989,000
5,000,000 Caterpiller Financial Service Corp. (P-1, A-1) 09/17/96 5.2800 4,988,267
5,000,000 Corporate Asset Funding, Inc. (P-1, A-1+) 09/03/96 5.2500 4,998,542
2,000,000 Corporate Receivables Corp. (P-1, A-1) 10/21/96 5.4300 1,984,917
3,600,000 Corporate Receivables Corp. (P-1, A-1) 11/04/96 5.4700 3,564,992
5,000,000 Corporate Receivables Corp. (P-1, A-1) 11/20/96 5.3000 4,941,111
7,000,000 CXC, Inc. (P-1, A-1+) 09/17/96 5.3000 6,983,511
2,000,000 CXC, Inc. (P-1, A-1+) 11/15/96 5.5000 1,977,083
2,000,000 Transamerica Finance Corp. (P-1, A-1) 09/18/96 5.3900 1,994,909
5,000,000 Transamerica Finance Corp. (P-1, A-1) 10/15/96 5.3000 4,967,611
5,000,000 Transamerica Finance Corp. (P-1, A-1) 11/18/96 5.2900 4,942,692
2,200,000 Transamerica Finance Corp. (P-1, A-1) 11/18/96 5.4200 2,174,165
5,000,000 Transamerica Finance Corp. (P-1, A-1) 11/18/96 5.4700 4,940,742
2,000,000 Transamerica Finance Corp. (P-1, A-1) 02/03/97 5.3900 1,953,586
------------
55,401,128
------------
Telephone Communications (1.4%)
7,047,000 Bell Communications Research (P-1, NR) 09/03/96 5.3000 7,044,925
------------
TOTAL COMMERCIAL PAPER
(Cost $257,365,556) 257,365,556
------------
VARIABLE RATE OBLIGATIONS (5.0%)
Banks (1.0%)
5,000,000 Norwest Corp. + (P-1, A-1+) 09/30/96 5.3984 5,000,000
------------
Student Loan Marketing Association (4.0%)
5,000,000 Student Loan Marketing Association
Floating Rate Note + 09/03/96 5.5300 5,000,586
15,000,000 Student Loan Marketing Association
Floating Rate Note + 09/03/96 5.5600 15,008,066
------------
20,008,652
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $25,008,652) 25,008,652
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SECURITY DESCRIPTION VALUE
- --------------------------------------------------------------------------- ------------
<S> <C>
REPURCHASE AGREEMENT (3.7%)
Repurchase agreement with Morgan Stanley & Co., dated 08/30/96 at $ 18,400,000
5.2725% to be repurchased on 09/03/96 at $18,410,779. (Collateralized
by $10,000 U.S. Treasury Note at 5.125%, due 03/31/98 and $18,275,000
U.S. Treasury Note at 6.50%, due 04/30/97. Market value of collateral
is $18,777,171.)(Cost $18,400,000.)
------------
TOTAL INVESTMENTS AT VALUE (101.4%) (Cost $502,397,408*) 502,397,408
LIABILITIES IN EXCESS OF OTHER ASSETS (1.4%) (7,004,591)
------------
NET ASSETS (100.0%) (applicable to 495,398,024 shares) $495,392,817
------------
------------
NET ASSETS VALUE, offering and redemption price per share $1.00
($495,392,817[div]495,398,024) -----
-----
INVESTMENT ABBREVIATIONS
NR = Not Rated
</TABLE>
- --------------------------------------------------------------------------------
+ The interest rate shown is the rate as of August 31, 1996 and the maturity
date shown is the next interest readjustment date.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
10
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
MATURITY SCHEDULE OF PORTFOLIO
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) PAR AMOUNT PERCENTAGE OF PORTFOLIO
- ----------------- ------------ -----------------------------
(CUMULATIVE)
<S> <C> <C> <C>
1-7 $101,740,838 20.1% 20.1%
8-14 27,450,000 5.4 25.5
15-30 80,536,117 15.9 41.4
31-60 65,026,555 12.9 54.3
61-90 114,260,617 22.6 76.9
91-120 75,910,989 15.0 91.9
121-150 18,077,086 3.5 95.4
Over 150 23,195,099 4.6 100.0
------------ -----
$506,197,301 100.0%
------------ -----
------------ -----
</TABLE>
Average Weighted Maturity -- 56 days
See Accompanying Notes to Financial Statements.
11
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- ---------------------------------- --------------- -------- ------ ------------
<C> <S> <C> <C> <C> <C>
NEW YORK (95.9%)
$ 700,000 Erie County New York Water
Authority Series B (AMBAC
Insurance) VRDN+ (VMIG-1, A-1+) 09/07/96 3.050 $ 700,000
3,000,000 Hempstead New York Series 1996
TANS (NR, NR) 06/30/97 4.125 3,005,366
400,000 Metropolitan Transportation
Authority Commuter Facility
Series 1991 (Morgan Guaranty LOC)
VRDN+ (VMIG-1, A-1) 09/07/96 3.300 400,000
1,000,000 Monroe County Industrial
Development Agency Electronic
Navigational Industries Inc.
Facility Series 1984 MB (NR, AA+) 07/01/97 3.850 1,000,000
2,400,000 New York City General Obligation
Series A-7 (Morgan Guaranty LOC)
VRDN+ (VMIG-1, A-1+) 09/01/96 3.700 2,400,000
500,000 New York City General Obligation
Series B-10 (Union Bank of
Switzerland LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.300 500,000
500,000 New York City General Obligaiton
(Mitsubishi Bank LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.300 500,000
1,300,000 New York City General Obligation
(FGIC Insurance) VRDN+ (MIG-1, A-1+) 09/01/96 3.700 1,300,000
1,200,000 New York City General Obligation
(Mitsubishi Bank LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.400 1,200,000
1,500,000 New York City General Obligation
Series B-9 (Chemical Bank LOC)
TECP (VMIG-1, A-1) 10/11/96 3.600 1,500,000
2,000,000 New York City General Obligation
1994 (MBIA Insurance) TECP (VMIG-1, A-1+) 09/09/96 3.700 2,000,000
2,900,000 New York City General Obligation
1995 Series F-4 (Landesbank
Hessen-Thuringen LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.400 2,900,000
2,000,000 New York City General Obligation
Tax Exempt Adjustable Rate Bond
Series 1996J (Commerzbank LOC)
VRDN+ (MIG-1, A-1+) 09/13/96 3.500 2,000,000
5,100,000 New York City Housing Development
Authority (York Ave.) (Chemical
Bank LOC) VRDN+ (NR, A-1) 09/07/96 3.500 5,100,000
1,800,000 New York City Housing Development
Corp. E. 96th St. Project
(Mitsubishi Bank LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.450 1,800,000
1,000,000 New York City Housing Development
Multi-Family Mortgage Revenue
Bond (Columbus Gardens Project)
(Citibank LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.400 1,000,000
2,275,000 New York City Housing Development
Corporation (Parkgate Tower)
(Citibank LOC) VRDN+ (VMIG-1, A-1) 09/07/96 3.300 2,275,000
1,950,000 New York City Housing Development
Corporation (Upper Fifth Avenue
Project) Series 1989A (Bankers
Trust LOC) VRDN+ (VMIG-1, A-1) 09/07/96 3.350 1,950,000
200,000 New York City Industrial
Development Agency (La Guardia
Project) Series 1985 (Banque
Indosuez LOC) VRDN+ (NR, A-1) 09/07/96 3.300 200,000
1,000,000 New York City Industrial
Development Agency Columbia
Grammar and Preparatory School
Civic Facility Revenue Bond 1994
(Chemical Bank LOC) VRDN+ (NR, A-1) 09/07/96 3.300 1,000,000
1,600,000 New York City Industrial
Development Agency Field Hotel
Association (John Fitzgerald
Kennedy Project) Series 1985
(Banque Indosuez LOC) VRDN+ (VMIG-1, A-1) 09/07/96 3.300 1,600,000
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- ---------------------------------- --------------- -------- ------ ------------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$ 600,000 New York City Industrial
Development Agency Japan Airlines
(Morgan Guaranty LOC) VRDN+ (NR, A-1+) 09/01/96 3.900 $ 600,000
400,000 New York City Industrial
Development Revenue Bond Nippon
Cargo Airlines Company (Ind. Bank
of Japan LOC) VRDN+ (NR, A-1) 09/01/96 4.500 400,000
100,000 New York City Municipal Water
Finance Authority Water and Sewer
System Revenue Bond 1994 Series C
(FGIC Insurance) VRDN+ (VMIG-1, A-1+) 09/01/96 3.800 100,000
1,900,000 New York City Series E-5 VRDN+ (VMIG-1, A-1) 09/01/96 3.700 1,900,000
1,447,000 New York City Trust For Cultural
Resources (Carnegie Hall)
(Dai-Ichi Kangyo LOC) VRDN+ (VMIG-1, A-1) 09/07/96 3.300 1,447,000
1,000,000 New York City Trust For Cultural
Resources Adjustable Tender
Revenue Bond (American Museum of
Natural History) Series 1991B
(MBIA Insurance) (Swiss Bank LOC)
VRDN+ (VMIG-1, A-1+) 09/07/96 3.050 1,000,000
1,900,000 New York City Trust For Cultural
Resources Museum of Broadcasting
Series 1989 (Sumitomo Bank LOC)
VRDN+ (VMIG-1, A-1) 09/07/96 3.500 1,900,000
7,400,000 New York Local Government
Assistance Corp. (Multiple Credit
Enhancements LOC) VRDN+ (NR, A-1+) 09/07/96 3.250 7,400,000
2,700,000 New York Local Government
Assistance Corporation Variable
Rate Bond (Society General LOC)
VRDN+ (VMIG-1, A-1+) 09/07/96 3.350 2,700,000
600,000 New York State Dormitory Authority
Revenue Bond (Beverwyck Inc.)
(Banque Paribas LOC) VRDN+ (VMIG-1, A-1) 09/07/96 3.400 600,000
6,600,000 New York State Energy Research &
Development Authority Pollution
Control Revenue Refunding Bond
(Rochester Gas & Electric) Series
1984 (Bank of New York LOC) VRDN+ (P-1, NR) 09/03/96 3.550 6,600,000
2,000,000 New York State Energy Research and
Development Authority Electric
Facilities Revenue Bond 1995
Series A (Long Island Lighting
Company Project) (Union Bank of
Switzerland LOC) VRDN+ (VMIG-1, NR) 09/07/96 3.250 2,000,000
2,200,000 New York State Energy Research and
Development Authority Long Island
Lighting Company (Toronto
Dominion LOC) VRDN+ (VMIG-1, NR) 09/07/96 3.250 2,200,000
2,000,000 New York State Energy Research and
Development Authority Pollution
Control Refunding Revenue Bond
(New York State Electric & Gas
Corp. Proj.) Series 1985 A
(Morgan Guaranty LOC) MB (P-1, A-1+) 03/15/97 3.300 2,000,000
2,500,000 New York State Energy Research and
Development Authority Pollution
Control Revenue Bond (Deutsche
Bank LOC) MB (VMIG-1, A-1+) 03/01/97 3.250 2,500,000
3,800,000 New York State General Obligation
Series R BANS (P-1, A-1) 09/10/96 3.550 3,800,000
3,000,000 New York State General Obligation
Series S BANS (P-1, A-1) 10/09/96 3.550 3,000,000
2,000,000 New York State Housing Finance
Agency East 84th Street Housing
Revenue Bond 1995 Series A (Fleet
Bank LOC) VRDN+ (VMIG-1, NR) 09/07/96 3.450 2,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- ---------------------------------- --------------- -------- ------ ------------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$ 400,000 New York State Housing Finance
Agency Housing Revenue Bonds (Mt.
Sinai School of Medicine) Series
1984A (Golden State Sanwa Bank
LOC) VRDN+ (VMIG-1, NR) 09/07/96 3.650 $ 400,000
400,000 New York State Housing Finance
Agency Housing Revenue Bonds
(Normandie Court) Series 1991A
(Societe General LOC LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.350 400,000
1,100,000 New York State Housing Finance
Agency Housing Revenue Bonds
(Sloan Memorial Kettering Cancer
Center) Series 1985A VRDN+ (MIG-1, A-1+) 09/07/96 3.350 1,100,000
1,200,000 New York State Housing Finance
Agency Multi-Family Housing
(Pleasant Creek Association) 1988
Series A (AMBAC Insurance) VRDN+ (VMIG-1, A-1+) 09/07/96 3.350 1,200,000
215,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bond Series 1984C (Sumitomo Bank
LOC) VRDN+ (VMIG-1, A-1+) 09/03/96 3.700 215,000
100,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bond Series 1984F (Sumitomo Bank
LOC) VRDN+ (VMIG-1, A-1+) 09/03/96 3.700 100,000
565,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bond Series 1984G (Sumitomo Bank
LOC) VRDN+ (VMIG-1, A-1+) 09/03/96 3.700 565,000
745,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bond Series 1984H (Sumitomo Bank
LOC) VRDN+ (VMIG-1, A-1+) 09/03/96 3.700 745,000
1,400,000 New York State Medical Care
Facilities Finance Agency (Lenox
Hill Hospital Project) 1990
Series A (Chemical Bank LOC)
VRDN+ (VMIG-1, NR) 09/07/96 3.250 1,400,000
2,120,000 New York State Power Authority
(Citibank LOC) TECP (P-1, A-1) 10/10/96 3.500 2,120,000
2,000,000 New York State Power Authority
(Citibank LOC) TECP (P-1, A-1) 11/12/96 3.550 2,000,000
600,000 New York State Research &
Development Authority Pollution
Control Refunding Revenue Bond
(Orange & Rockland Utilities,
Inc. Project) (AMBAC Insurance)
VRDN+ (VMIG-1, A-1+) 09/07/96 3.050 600,000
300,000 North Hempstead New York Solid
Waste Management Authority Series
A 1993 (National Westminster LOC)
VRDN+ (VMIG-1, NR) 09/07/96 3.200 300,000
1,650,000 Port Authority New York and New
Jersey TECP (P-1, A-1+) 10/25/96 3.600 1,650,000
1,200,000 Port Authority of New York & New
Jersey Versatile Structure
Obligations VRDN+ (VMIG-1, A-1+) 09/07/96 3.650 1,200,000
2,000,000 Sachem Central School District
Holbrook Suffolk County, TANS (MIG-1, NR) 06/26/97 4.1250 2,004,717
3,000,000 Smithtown Central School District
Suffolk County TANS (NR, NR) 06/26/97 4.500 3,015,308
100,000 State of New York Dormitory
Authority Cornell University
Revenue Bond Series 1990B VRDN+ (MIG-1, P1+) 09/01/96 3.750 100,000
2,570,000 State of New York Power Authority
Adjustable Tender Notes MB (VMIG-1, A-1) 09/01/96 3.250 2,570,000
1,000,000 State of New York Series R TECP (P-1, A-1) 10/01/96 3.400 1,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- ---------------------------------- --------------- -------- ------ ------------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$3,600,000 Suffolk County Industrial
Development Authority
(Nissequogue Cogen) Series 1993
(Toronto Dominion LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.250 $ 3,600,000
2,864,500 Tompkins County New York BANS (NR, NR) 06/19/97 4.250 2,873,498
1,600,000 Town of Babylon Industrial
Development Agency (J. D'addario
& Company, Inc. Project) Series
1994 (National Westminster LOC)
VRDN+ (VMIG-1, NR) 09/07/96 3.450 1,600,000
100,000 Town of Montgomery Industrial
Development Agency Authority
(Service Merchandise Co., Inc.)
(Industrial Bank of Japan LOC)
(Canadian Imperial Bank LOC)
VRDN+ (NR, A-1) 09/16/96 3.650 100,000
1,100,000 Triborough Bridge and Tunnel
Authority (FGIC Insurance) VRDN+ (VMIG-1, A-1+) 09/07/96 3.200 1,100,000
------------
TOTAL NEW YORK 108,435,889
------------
PUERTO RICO (4.0%)
1,600,000 Government Development Bank For
Puerto Rico Adjustable Refunding
Bond Series 1985 (Credit Suisse
LOC) VRDN+ (VMIG-1, NR) 09/07/96 3.100 1,600,000
2,000,000 Government Development Bank of
Puerto Rico TECP (NR, A-1+) 09/16/96 3.400 2,000,000
900,000 Puerto Rico Highway and Trans.
Auth. Highway Revenue and Revenue
Refunding Bond (Landesbank
Hessen-Thuringen LOC) VRDN+ (VMIG-1, A-1+) 09/07/96 3.100 900,000
------------
TOTAL PUERTO RICO 4,500,000
------------
TOTAL INVESTMENTS AT VALUE (99.9%) (Cost $112,935,889*) 112,935,889
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) 93,892
------------
NET ASSETS (100.0%) (applicable to 113,042,900 shares) $113,029,781
------------
------------
NET ASSET VALUE, offering and redemption price per common
share ($113,029,781[div]113,042,900) $1.00
-----
-----
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
BANS = Bond Anticipation Notes
FGIC = Financial Guaranty Insurance Company
LOC = Letter of Credit
MB = Municipal Bonds
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, 1996 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.
15
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
MATURITY SCHEDULE OF PORTFOLIO
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) PAR AMOUNT PERCENTAGE OF PORTFOLIO
- ----------------- -------------- ---------------------------
(CUMULATIVE)
<S> <C> <C> <C>
1-7 $ 75,367,000 66.8% 66.8%
8-14 7,800,000 6.9 73.7
15-30 2,100,000 1.9 75.6
31-60 9,270,000 8.2 83.8
61-90 2,000,000 1.8 85.6
91-120 0 0.0 85.6
121-150 0 0.0 85.6
Over 150 16,364,500 14.4 100.0
------------ -----
$112,901,500 100.0%
------------ -----
------------ -----
</TABLE>
Average Weighted Maturity -- 48 days
See Accompanying Notes to Financial Statements.
16
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
----------------- ------------------------
<S> <C> <C>
INTEREST INCOME: $11,046,095 $2,095,634
----------------- --------
EXPENSES:
Investment advisory 508,912 154,322
Sub-investment advisory and administration 508,912 154,322
Administrative services 203,565 61,729
Audit 13,161 16,357
Custodian 51,066 15,237
Directors' 10,082 10,082
Insurance 4,724 2,133
Legal 19,112 22,639
Printing 4,936 4,607
Registration 38,299 5,434
Transfer agent 56,924 8,794
Miscellaneous 10,534 5,179
----------------- --------
1,430,227 460,835
Less: fees waived (310,621) (121,325)
----------------- --------
Total expenses 1,119,606 339,510
----------------- --------
Net investment income 9,926,489 1,756,124
----------------- --------
NET REALIZED LOSS FROM INVESTMENTS:
Net realized loss from security transactions (4,559) 0
----------------- --------
Net increase in net assets resulting from
operations $ 9,921,930 $1,756,124
----------------- --------
----------------- --------
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS
CASH RESERVE FUND WARBURG PINCUS
------------------------------------ NEW YORK TAX EXEMPT FUND
FOR THE SIX ------------------------------------
MONTHS FOR THE SIX
ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
AUGUST 31, 1996 ENDED AUGUST 31, 1996 ENDED
(UNAUDITED) FEBRUARY 29, 1996 (UNAUDITED) FEBRUARY 29, 1996
--------------- ----------------- --------------- -----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 9,926,489 $ 16,771,726 $ 1,756,124 $ 2,899,499
Net realized gain (loss) from
security transactions (4,559) (507) 0 645
--------------- ----------------- --------------- -----------------
Net increase in net
assets resulting
from operations 9,921,930 16,771,219 1,756,124 2,900,144
--------------- ----------------- --------------- -----------------
FROM DISTRIBUTIONS:
Dividends from net investment
income:
Common shares (9,926,489) (16,771,726) (1,756,124) (2,810,063)
Series 2 shares 0 0 0 (89,436)
--------------- ----------------- --------------- -----------------
Net decrease from
distributions (9,926,489) (16,771,726) (1,756,124) (2,899,499)
--------------- ----------------- --------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS
(AT $1 PER SHARE):
Proceeds from sale of shares 1,130,042,691 1,883,249,803 220,981,475 314,824,220
Reinvested dividends 5,186,325 10,583,684 484,117 1,142,300
Net asset value of shares
redeemed (1,023,439,350) (1,913,436,052) (205,019,560) (307,102,780)
--------------- ----------------- --------------- -----------------
Net increase
(decrease) in net
assets from capital
share transactions 111,789,666 (19,602,565) 16,446,032 8,863,740
--------------- ----------------- --------------- -----------------
Net increase
(decrease) in net
assets 111,785,107 (19,603,072) 16,446,032 8,864,385
NET ASSETS:
Beginning of period 383,607,710 403,210,782 96,583,749 87,719,364
--------------- ----------------- --------------- -----------------
End of period $ 495,392,817 $ 383,607,710 $ 113,029,781 $ 96,583,749
--------------- ----------------- --------------- -----------------
--------------- ----------------- --------------- -----------------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
<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
AUGUST 31, FOR THE YEAR ENDED FEBRUARY 28 OR 29,
1996 -------------------------------------------------------
(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 .0246 .0543 .0426 .0273 .0322 .0542
Net Realized Gain on Securities 0 0 0 0 0 .0010
----------- ------- ------- ------- ------- -------
Total from Investment
Operations .0246 .0543 .0426 .0273 .0322 .0552
----------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment
income (.0246) (.0543) (.0426) (.0273) (.0322) (.0542)
Distributions from capital gains 0 0 0 0 0 (.0010)
----------- ------- ------- ------- ------- -------
Total Distributions (.0246) (.0543) (.0426) (.0273) (.0322) (.0552)
----------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ------- ------- ------- ------- -------
----------- ------- ------- ------- ------- -------
Total Return 2.46%`D' 5.57% 4.35% 2.76% 3.27% 5.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $495,393 $383,607 $403,211 $277,557 $287,723 $426,479
Ratios to average daily net assets:
Operating expenses .55%* .55% .55% .54% .50% .50%
Net investment income 4.88%* 5.43% 4.41% 2.73% 3.22% 5.45%
Decrease reflected in above
operating expense ratios due to
waivers/reimbursements .16%* .16% .19% .13% .17% .16%
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
See Accompanying Notes to Financial Statements.
19
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE
SIX COMMON SHARES
MONTHS ------------------------------------------------------------
ENDED
AUGUST FOR THE YEAR ENDED FEBRUARY 28 OR 29,
31, 1996 ------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
-------- -------- -------- -------- -------- --------
<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 .0143 .0326 .0246 .0175 .0224 .0329
Less Distributions:
Dividends from net investment
income (.0143 ) (.0326) (.0246) (.0175) (.0224) (.0329)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Total Return 1.43%`D' 3.31% 2.48% 1.77% 2.26% 3.34%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $113,030 $ 96,584 $ 77,111 $ 65,984 $ 76,995 $ 65,438
Ratios to average daily net assets:
Operating expenses .55%* .55% .55% .54% .50% .50%
Net investment income 2.84%* 3.24% 2.46% 1.75% 2.23% 3.27%
Decrease reflected in above
operating expense ratios due
to waivers/reimbursements .20%* .27% .27% .19% .28% .23%
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
See Accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
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') 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.
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 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 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. 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 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 and make the requisite
distributions to its shareholders which will be sufficient to relieve it from
Federal income and excise taxes.
Each Fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, a Fund acquires an underlying security
subject to an obligation of the seller to repurchase. The value of the
underlying security collateral will be maintained at an amount at least equal to
the total amount of the purchase obligation, including interest. The collateral
is in the Fund's possession.
21
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
effect 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.
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), 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, Warburg 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, 1996, investment advisory fees and waivers
were as follows:
<TABLE>
<CAPTION>
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
- ------------------------------- ------------------ --------- ------------------
<S> <C> <C> <C>
Cash Reserve $508,912 $(124,248) $384,664
New York Tax Exempt 154,322 (48,530) 105,792
</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
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, 1996, 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 $508,912 $(186,373) $322,539
New York Tax Exempt 154,322 (72,795) 81,527
</TABLE>
Counsellors Funds Service, Inc. ('CFSI'), a wholly owned subsidiary of
Warburg, 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, 1996,
administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE
- ------------------------------------------------------ ---------------------
<S> <C>
Cash Reserve $ 203,565
New York Tax Exempt 61,729
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly owned subsidiary of
Warburg, 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
22
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
August 31, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 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.
Series 2 Shares ceased being offered on June 9, 1995.
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
NEW YORK TAX NEW YORK TAX
CASH RESERVE FUND EXEMPT FUND EXEMPT FUND
------------------------------- --------------------------- ----------------------------
SERIES 2 SHARES
FOR THE SIX COMMON SHARES FOR THE SIX
MONTHS FOR THE SIX MONTHS FOR THE PERIOD
ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR ENDED MARCH 1,
AUGUST 31, ENDED AUGUST 31, ENDED AUGUST 31, 1995
1996 FEBRUARY 29, 1996 FEBRUARY 29, 1996 THROUGH
(UNAUDITED) 1996 (UNAUDITED) 1996 (UNAUDITED) JUNE 8, 1995
-------------- -------------- ------------ ------------ ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,130,042,691 1,883,249,027 220,981,475 300,237,798 0 14,586,422
Shares issued to
shareholders on
reinvestment of
dividends 5,186,325 10,583,684 484,117 1,048,655 0 93,645
Shares redeemed (1,023,439,350) (1,913,436,052) (205,019,560) (281,813,622) 0 (25,289,158)
-------------- -------------- ------------ ------------ - --------------
Net increase (decrease)
in shares 111,789,666 (19,603,341) 16,446,032 19,472,831 0 (10,609,091)
-------------- -------------- ------------ ------------ - --------------
-------------- -------------- ------------ ------------ - --------------
</TABLE>
4. NET ASSETS
Net Assets at August 31, 1996, consisted of the following:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
----------------- ------------------------
<S> <C> <C>
Capital contributed, net $ 495,397,812 $113,042,907
Accumulated net realized loss from
security
transactions (4,995) (13,126)
----------------- -----------
Net assets $ 495,392,817 $113,029,781
----------------- -----------
----------------- -----------
</TABLE>
23
<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
Further information is contained in the Prospectus, which must
precede or accompany this report.
The Funds seek to maintain a constant net asset value of $1.00
per share; there can be no assurance that they can do so on a
continuing basis. An investment in the Funds is neither insured
nor guaranteed by the U.S. government.
[Logo]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874)
COUNSELLORS SECURITIES INC., DISTRIBUTOR WPCRNY-3-0896
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as 'D'
The division sign shall be expressed as [div]
