<PAGE>
<PAGE>
SEMIANNUAL
REPORT
June 30, 1997
WARBURG PINCUS
CASH RESERVE FUND
WARBURG PINCUS
NEW YORK TAX EXEMPT FUND
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.
More complete information about the Funds, including charges and expenses,
is provided in the Prospectus, which must precede or accompany this
document and which should be read carefully before investing. You may
obtain additional copies by calling 800-WARBURG (800-927-2874) or by
writing to Warburg Pincus Funds, P.O. Box 9030, Boston, MA 02205-9030.
[Logo]
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<PAGE>
From time to time, the Funds' investment adviser and co-administrator may waive
some fees and/or reimburse some expenses, without which performance would be
lower. Waivers and/or reimbursements are subject to change.
The views of the Funds' management are as of the date of the letters and
portfolio holdings described in this semiannual report are as of June 30, 1997;
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: August 15, 1997
For the six-month period ended June 30, 1997, short-term interest rates, in the
overnight to one-year area of the yield curve, were often volatile. During the
first three months of 1997 interest rates rose across the yield curve, but
following the Federal Reserve's tightening of monetary policy in late March (the
Fed raised its targeted federal-funds rate by 25 basis points, to 5.50%),
interest rates declined dramatically in the April-through-June span. The market
was also buoyed by continued benign inflation and economic data indicating
slowing demand (Fed Chairman Alan Greenspan had cited stronger demand as a
reason for the earlier tightening). As the market rallied in the second half of
the period, yields narrowed between securities in the three-to-nine-month area
and those in the 10-to-12-month range.
The annualized yield for Warburg Pincus Cash Reserve Fund (the 'Fund') for the
seven-day period ended June 30, 1997 was 5.10% (4.96% without waivers and/or
reimbursements), up from 5.03% for the period ended December 31, 1996. Net
assets declined to $372.2 million, down from $451.6 million six months ago. The
Fund's average weighted maturity on June 30, 1997, was 49 days, down from 54
days on December 31, 1996.
The Fund will continue to emphasize high-quality securities in order to provide
competitive returns without compromising safety and stability of principal. We
appreciate your continued support and investment in the Fund.
Eugene L. Podsiadlo
President
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<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
- --------------------------------------------------------------------------------
Dear Shareholder: August 15, 1997
New York state has a broad and diverse economic base, enhanced by substantial
wealth and resources. The state's fiscal condition continues to improve, which
is reflected in fiscal 1997's estimated $1.5 billion surplus. This represents
the fifth consecutive year positive budget results have been achieved since the
recession of the early 1990s. Unfortunately, however, the state, once again,
failed to pass a budget in a timely manner. This persistent lateness and the
highly political nature of the budget process will likely preclude any credit
rating upgrade from the major credit agencies in the foreseeable future.
New York City, which continues to see steady growth, likewise had very
positive budget results. It closed its 1997 fiscal year on June 30 with its
largest surplus ever, an estimated $856 million. Though Wall Street's banner
year had a disproportionate effect on the City's finances, the City also
benefited from growth within areas such as the hotel and real-estate industries.
While the City's recently improved fiscal situation is heartening, it should be
noted that there are substantial budgetary shortfalls that remain to be
addressed.
The tax-free market experienced seasonal asset volatility during the six-
month period ended June 30, 1997. Total tax-exempt assets rose to a record
$152.7 billion in mid-April as investors parked their money to pay income taxes,
and then decreased to $143.7 billion by the period-end. Assets for Warburg
Pincus New York Tax Exempt Fund (the 'Fund') followed the same pattern,
increasing to $158.8 million by mid-April and then declining to $113.6 million
by June 30. The market's cash outflow created buying opportunities as demand for
paper decreased and yields increased.
The Fund's strategy was to lock in rates at attractive levels, while
maintaining liquidity to meet redemptions. Notes and commercial paper were
acquired by the Fund to take advantage of the rising yields, and consequently
the average weighted maturity of the Fund jumped from the 20 to 30 day range to
the 50 to 65 day range in the latter part of the period (the Fund's maturity was
63 days as of June 30). The Fund's 12-month return as of June 30, 1997, was
3.00%, outperforming IBC's New York tax-exempt funds by eight basis points. The
Fund's seven-day annualized yield was 3.34% (3.17% without waivers and/or
reimbursements), up from 3.31% on December 31.*
The Fund seeks to provide investors with a high 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. We appreciate your
continued support and investment in the Fund.
Eugene L. Podsiadlo
President
- ------------
* A portion of the Fund's income may be subject to state and city taxes or the
federal alternative minimum tax.
2
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<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ----------- ------------- -------- ----- ------------
<C> <S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (5.9%)
Federal Farm Credit Bank (2.7%)
$ 5,000,000 Federal Farm Credit Bank Note NR, NR 07/01/97 5.55 $ 5,000,000
5,000,000 Federal Farm Credit Bank Note NR, NR 08/01/97 5.55 4,999,763
------------
9,999,763
------------
Federal Home Loan Bank (1.9%)
6,960,000 Federal Home Loan Bank NR, NR 09/24/97 6.00 6,963,307
------------
Federal National Mortgage Association (1.3%)
5,000,000 Federal National Mortgage Association NR, NR 10/29/97 5.53 4,995,557
------------
TOTAL AGENCY OBLIGATIONS
(Cost $21,958,627) 21,958,627
------------
CERTIFICATES OF DEPOSIT (26.9%)
Banks (4.9%)
5,000,000 Barclays Bank PLC (A-1+, P-1) 01/16/98 5.81 5,000,236
5,000,000 Bank of Tokyo-Mitsubishi (A-1, P-1) 07/31/97 5.84 5,000,000
5,000,000 Chase Manhattan Bank (A-1, P-1) 07/28/97 5.55 5,000,000
3,000,000 Morgan Guaranty Trust Co. of New York (A-1+, P-1) 06/22/98 5.97 2,999,011
------------
17,999,247
------------
Domestic Certificates of Deposit (7.3%)
2,000,000 Bankers Trust Co. (A-1, P-1) 06/19/98 5.98 1,999,630
5,000,000 Chase Manhattan Corp. (A-1, P-1) 07/10/97 5.50 5,000,000
5,000,000 Comerica Bank (A-1, P-1) 08/13/97 5.77 4,999,682
5,000,000 Wilmington Trust Co. (A-1, P-1) 07/07/97 5.45 5,000,000
5,000,000 Wilmington Trust Co. (A-1, P-1) 07/10/97 5.70 5,000,000
5,000,000 Wilmington Trust Co. (A-1, P-1) 07/21/97 5.53 5,000,000
------------
26,999,312
------------
National Commercial Banks (1.3%)
5,000,000 Westdeutsche Landesbank Gironzentrale (A-1+, P-1) 07/30/97 5.52 5,000,039
------------
</TABLE>
See Accompanying Notes to Financial Statements.
3
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<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ----------- ------------- -------- ----- ------------
<C> <S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT (CONT'D)
Yankee Dollar Certificates Of Deposit (13.4%)
$10,000,000 Banque National de Paris (A-1, P-1) 07/25/97 5.57 $ 10,000,189
10,000,000 Deutsche Bank AG (A-1+, P-1) 10/28/97 5.69 10,004,078
5,000,000 Industrial Bank of Japan (A-1, P-1,) 08/27/97 5.73 5,000,078
5,000,000 Royal Bank of Canada (A-1+, P-1) 06/25/98 5.94 4,997,178
5,000,000 Societe Generale (A-1+, P-1) 11/24/97 5.88 5,001,145
5,000,000 Sumitomo Bank (A-1, P-1) 07/14/97 5.78 5,000,000
5,000,000 Sumitomo Bank (A-1, P-1) 07/23/97 5.70 5,000,000
5,000,000 Sumitomo Bank (A-1, P-1) 08/29/97 5.76 5,000,162
------------
50,002,830
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $145,001,428) 100,001,428
------------
COMMERCIAL PAPER (52.1%)
Asset Backed Securities (5.3%)
5,000,000 CC USA, Inc. (A-1+, P-1) 09/09/97 5.61 4,945,458
5,000,000 CC USA, Inc. (A-1+, P-1) 07/21/97 5.67 4,984,250
5,000,000 CC USA, Inc. (A-1+, P-1) 08/15/97 5.65 4,964,688
5,000,000 Sigma Finance, Inc. (A-1+, P-1) 07/07/97 5.61 4,995,325
------------
19,889,721
------------
Banks (8.0%)
5,000,000 AB Spintab Swedmortgage (NR, P-1) 07/10/97 5.64 4,992,950
5,000,000 AMRO N.A. Finance, Inc. (A-1+, P-1) 07/09/97 5.34 4,994,067
5,000,000 Cheltenham and Gloucester Building
Society (A-1+, P-1) 07/14/97 5.42 4,990,214
5,000,000 Svenska Handelsbanken, Inc. (A-1, P-1) 07/11/97 5.61 4,992,208
5,000,000 Svenska Handelsbanken, Inc. (A-1, P-1) 08/15/97 5.61 4,964,938
5,000,000 Commonwealth Bank of Australia (A-1+, P-1) 07/21/97 5.37 4,985,083
------------
29,919,460
------------
Business Services (2.7%)
5,000,000 Dun & Bradstreet Corp. (A-1, P-1) 09/09/97 5.60 4,945,556
5,000,000 Dun & Bradstreet Corp. (A-1, P-1) 09/23/97 5.60 4,934,666
------------
9,880,222
------------
Chemicals & Allied Products (4.0%)
5,000,000 Akzo Nobel, Inc. (A-1, P-1) 07/08/97 5.61 4,994,546
10,000,000 Akzo Nobel, Inc. (A-1, P-1) 07/14/97 5.63 9,979,669
------------
14,974,215
------------
Conglomerates (1.3%)
5,000,000 BTR Dunlop Finance, Inc. PLC (A-1, P-1) 08/04/97 5.40 4,974,500
------------
</TABLE>
See Accompanying Notes to Financial Statements.
4
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<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ----------- ------------- -------- ----- ------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
Finance Lessors (1.4%)
$ 5,000,000 General Electric Capital Corp. (A-1+, P-1) 07/15/97 5.42 $ 4,989,461
------------
Finance Services (2.7%)
5,000,000 Countrywide Funding Corp. (A-1, NR) 08/12/97 5.60 4,967,333
5,000,000 Dakota Certificates Program (A-1+, P-1) 07/14/97 5.66 4,989,781
------------
9,957,114
------------
Government (1.3%)
5,000,000 Province de Quebec (A-1+, P-1) 08/20/97 5.60 4,961,111
------------
Motor Vehicles & Car Bodies (2.7%)
5,000,000 BMW U.S. Capital Corp. (A-1, NR) 08/12/97 5.60 4,967,333
5,000,000 Daimler-Benz North America Corp. (A-1, P-1) 07/11/97 5.61 4,992,209
------------
9,959,542
------------
National Commercial Banks (1.3%)
5,000,000 Santander Finance (De), Inc. (A-1+, P-1) 07/23/97 5.40 4,983,500
------------
Personal Credit Institutions (2.7%)
5,000,000 General Motors Acceptance Corp. (NR, P-1) 11/17/97 5.75 4,888,993
5,000,000 Dean Witter, Discover and Co. (A-1,P-1) 07/01/97 5.62 5,000,000
------------
9,888,993
------------
Security Brokers & Dealers (13.3%)
5,000,000 Bear Stearns Companies, Inc. (A-1, P-1) 07/02/97 5.63 4,999,218
5,000,000 Bear Stearns Companies, Inc. (A-1, P-1) 07/08/97 5.62 4,994,536
5,000,000 Bear Stearns Companies, Inc. (A-1, P-1) 07/15/97 5.63 4,989,053
5,000,000 Goldman Sachs Group L.P. (A-1+, P-1) 11/07/97 5.63 4,899,129
5,000,000 Merrill Lynch & Co. (A-1+, P-1) 09/16/97 5.57 4,940,432
5,000,000 Merrill Lynch & Co. DCP (A-1+, P-1) 08/14/97 5.30 4,967,611
5,000,000 Morgan Stanley Group, Inc. (A-1+, P-1) 07/24/97 5.63 4,982,015
10,000,000 Nomura Holding America, Inc. (A-1+, P-1) 09/09/97 5.74 9,888,389
5,000,000 Nomura Holding America, Inc. (A-1+, P-1) 08/07/97 5.73 4,970,555
------------
49,630,938
------------
Short-Term Business Credit Institutions (2.7%)
5,000,000 Caterpillar Financial Service Corp. (A-1, P-1) 08/18/97 5.60 4,962,667
5,000,000 Corporate Receivables Corp. (A-1, P-1) 07/10/97 5.65 4,992,938
------------
9,955,605
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ----------- ------------- -------- ----- ------------
<C> <S> <C> <C> <C> <C>
COMMERCIAL PAPER (CONT'D)
Telecommunications (2.7%)
$ 5,000,000 MCI Communications Corp. (A-1, P-1) 08/11/97 5.43 $ 4,969,078
5,000,000 MCI Communications Corp. (A-1, P-1) 11/06/97 5.62 4,900,089
------------
9,869,167
------------
TOTAL COMMERCIAL PAPER
(Cost $193,833,549) 193,833,549
------------
VARIABLE RATE OBLIGATIONS (10.7%)
Asset Backed Securities (1.3%)
5,000,000 SMM Trust 1996-R + (A-1+, P-1) 07/15/97 5.69 5,000,000
------------
Federal National Morgtgage Association (1.4%)
5,000,000 Federal National Mortgage
Association+ (A-1+, P-1) 07/01/97 5.44 5,000,387
------------
Personal Credit Institutions (1.3%)
5,000,000 Associates Corp. of North America + (A-1+, P-1) 07/01/97 5.57 4,997,578
------------
Security Brokers & Dealers (1.3%)
5,000,000 Morgan Stanley Group, Inc. + (A-1+, P-1) 07/10/97 5.65 5,000,000
------------
Student Loan Marketing Association (5.4%)
10,000,000 Student Loan Marketing Association
Floating Rate Note + NR, NR 07/01/97 5.42 10,000,580
5,000,000 Student Loan Marketing Association
Floating Rate Note + NR, NR 07/01/97 5.42 5,001,923
5,000,000 Student Loan Marketing Association
Floating Rate Note + NR, NR 07/01/97 5.26 5,000,000
------------
20,002,503
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $40,000,468) 40,000,468
------------
REPURCHASE AGREEMENT (4.2%)
15,800,000 Repurchase agreement with Morgan
Stanley & Co., dated 06/30/97 at
6.20% to be repurchased on 07/01/97
at $15,802,721. (Collateralized by
$16,150,000 U.S. Treasury Note at
3.375%, due 01/15/07 and $100,000
U.S. Treasury Note at 5.875%, due
11/30/01, Market value of collateral
is $16,215,576.) (Cost $15,800,000) 15,800,000
------------
TOTAL INVESTMENTS AT VALUE (99.8%) (Cost $416,594,072*) 371,594,072
OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%) 650,794
------------
NET ASSETS (100.0%) (applicable to 372,248,163 shares) $372,244,866
------------
------------
NET ASSETS VALUE, offering and redemption price per share ($372,244,866[div]372,248,163) $1.00
-----
-----
INVESTMENT ABBREVIATIONS
NR = Not Rated
</TABLE>
- --------------------------------------------------------------------------------
+ The interest rate shown is as of June 30, 1997 and the maturity date is the
next interest readjustment date.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
MATURITY SCHEDULE OF PORTFOLIO
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) PAR AMOUNT PERCENTAGE OF PORTFOLIO
- ----------------- ------------ -----------------------------
(CUMULATIVE)
<S> <C> <C> <C>
1-7 $ 35,000,000 9.4% 9.4%
8-14 0 0.0 9.4
15-30 20,800,000 5.6 15.0
31-60 145,000,000 38.9 53.9
61-90 75,000,000 20.1 74.0
91-120 36,960,000 9.9 83.9
121-150 10,000,000 2.7 86.6
Over 150 50,000,000 13.4 100.0
------------ -----
$372,760,000 100.0%
------------ -----
------------ -----
</TABLE>
Average Weighted Maturity -- 49 days
See Accompanying Notes to Financial Statements.
7
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<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- -------------- -------- ----- ------------
<C> <S> <C> <C> <C> <C>
NEW YORK (96.4%)
$2,250,000 Erie County, New York Industrial
Development Agency VRDN+ (A-1, NR) 07/07/97 4.25 $ 2,250,000
2,950,000 Galway, New York, Central School
District BANS (A-1, NR) 06/18/98 4.13 2,957,511
4,400,000 Horseheads, New York Central School
District BANS (A-1, NR) 03/27/98 4.00 4,409,295
2,500,000 Metropolitan Transportation
Authority Commuter Facility Series
1991 (Multiple Credit Enhancements
LOC) VRDN+ (A-1, VMIG-1) 07/07/97 4.15 2,500,000
1,000,000 Monroe County New York Industrial
Development Agency (AJL
Manufacturing, Inc. Facility)
(Marine Midland LOC) VRDN+ (A-1, NR) 07/07/97 4.25 1,000,000
1,000,000 Monroe County New York Industrial
Development Agency (Electronic
Navigational Industries Inc.)
Series 1984 RB (A-1, NR) 07/01/97 3.85 1,000,000
100,000 Montgomery Town Industrial
Development Agency (Industrial
Bank of Japan LOC) VRDN+ (A-1, NR) 07/15/97 3.85 100,000
1,500,000 New York State Energy Research &
Development Pollution Control RB
(Long Island Lighting Co. Project)
(Deutsche Bank LOC) (NR, VMIG-1) 03/01/98 3.60 1,500,000
4,000,000 New Paltz, New York, Central School
District BANS (NR, VMIG-1) 06/15/98 4.13 4,008,651
3,800,000 New York City General Obligation (A-1+,
1994 Series H-3 TECP VMIG-1) 09/16/97 3.75 3,800,000
5,500,000 New York City General Obligation
1994 Series H-3 (State Street Bank (A-1+,
& Co. LOC) TECP VMIG-1) 07/16/97 3.45 5,500,000
500,000 New York City General Obligation (A-1+,
Bond (Mitsubishi Bank LOC) VRDN+ VMIG-1) 07/07/97 4.10 500,000
200,000 New York City General Obligation
Bond 1995 Series F-7 (Union Bank
of Switzerland LOC) VRDN+ (A-1+, P-1) 07/07/97 4.10 200,000
2,000,000 New York City General Obligation
Series B TECP (Chase Manhattan
LOC) (A-1, VMIG-1) 08/14/97 3.80 2,000,000
3,100,000 New York City General Obligation
1995 Series B-9 TECP (Chase (A-1+,
Manhattan LOC) VMIG-1) 09/17/97 3.75 3,100,000
500,000 New York City General Obligation
Bond Series B-10 (Union Bank of (A-1+,
Switzerland LOC) VRDN+ VMIG-1) 07/07/97 4.10 500,000
500,000 New York City General Obligation
Bond Series C-4 (Morgan Guaranty (A-1+,
LOC) VRDN+ VMIG-1) 07/01/97 3.95 500,000
1,500,000 New York City General Obligation (A-1+,
TECP VMIG-1) 10/17/97 3.85 1,500,000
800,000 New York City Health and Hospitals
Health System Bonds 1997 Series A (A-1+,
(Morgan Guaranty LOC) VRDN+ VMIG-1) 07/07/97 4.10 800,000
1,800,000 New York City Housing Development
Corp.(E. 96th St. Project) (A-1+,
(Mitsubishi Bank LOC) VRDN+ VMIG-1) 07/07/97 4.15 1,800,000
1,600,000 New York City Industrial
Development Agency Field Hotel
Association (JFK Airport Project)
(Banque Indosuez LOC) VRDN+ (A-1, VMIG-1) 07/07/97 4.15 1,600,000
400,000 New York City Industrial
Development Agency RB (Nippon
Cargo Airlines Company)
(Industrial Bank of Japan LOC)
VRDN+ (A-1, NR) 07/01/97 5.80 400,000
3,700,000 New York City Industrial
Development Authority (LaGuardia
Airport Project) (Banque Indosuez
LOC) VRDN+ (A-1, NR) 07/07/97 4.15 3,700,000
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- -------------- -------- ----- ------------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$3,500,000 New York City Municipal Water
Finance Authority Series 5 TECP
(Westdeutsche Landesbank
Gironzentale LOC) (A-1+, P-1) 07/31/97 3.75 $ 3,500,000
1,447,000 New York City Trust For Cultural
Resources (Carnegie Hall) (A-1+,
(Dai-Ichi Kangyo LOC) VRDN+ VMIG-1) 07/07/97 3.90 1,447,000
500,000 New York Local Government
Assistance Corporation RB (A-1+,
(Canadian Imperial Bank LOC) VRDN+ VMIG-1) 07/07/97 4.05 500,000
4,000,000 New York State BANS Series S TECP
(Westdeutsche Landesbank
Gironzentale LOC) (A-1, P-1) 07/23/97 3.80 4,000,000
3,400,000 New York State Dormitory Authority
RB (Beverwyck Inc.) (Banque
Paribas LOC) VRDN+ (A-1, VMIG-1) 07/07/97 4.15 3,400,000
2,000,000 New York State Energy Research &
Development Authority Electric
Facilities RB 1995 Series A (Long
Island Lighting Company Project)
(Union Bank of Switzerland LOC)
VRDN+ (NR, VMIG-1) 07/07/97 4.20 2,000,000
6,600,000 New York State Energy Research &
Development Authority Pollution
Control RB (Bank of New York LOC)
VRDN+ (NR, P-1) 07/01/97 3.55 6,600,000
2,750,000 New York State Energy Research &
Development Authority Pollution
Control RB (Central Hudson Gas &
Electric) 1985 Series A (Bankers
Trust LOC) VRDN+ (NR, P-1) 07/07/97 3.95 2,750,000
2,200,000 New York State Energy Research &
Development Authority Electric
Facilities RB 1993 Series B (Long
Island Lighting Co. Project)
(Toronto Dominion LOC) VRDN+ (NR, VMIG-1) 07/07/97 4.20 2,200,000
600,000 New York State Energy Research &
Development Authority Pollution
Control RB (Orange & Rockland
Utilities Inc. Project) 1995
Series A (AMBAC Insurance LOC)
VRDN+ (NR, NR) 07/07/97 4.05 600,000
5,000,000 New York State Energy Research &
Development Authority New York
State Electric & Gas 1985 Series A
(Morgan Guaranty LOC) (A-1+, P-1) 03/15/98 3.65 5,000,000
2,500,000 New York State Energy Research and
Development Authority Pollution
Control RB (Deutsche Bank LOC) (NR, VMIG-1) 09/01/97 3.60 2,500,000
1,200,000 New York State Housing Finance
Agency 1991 (Normandie Court I
Project) (Society General LOC) (A-1+,
VRDN+ VMIG-1) 07/07/97 4.00 1,200,000
1,500,000 New York State Housing Finance
Agency Series A (Mt. Sinai School
of Medicine) (Sanwa Bank LOC)
VRDN+ (NR, VMIG-1) 07/07/97 3.80 1,500,000
2,000,000 New York State Housing Finance
Agency 1995
Series A (East 84th Street Housing
Project) (Fleet Bank LOC) VRDN+ (NR, VMIG-1) 07/07/97 4.20 2,000,000
3,000,000 New York State Housing Finance
Agency (Liberty View Apartments
Project) (Chemical Bank LOC) VRDN+ (A-1, VMIG-1) 07/07/97 4.20 3,000,000
1,200,000 New York State Housing Finance
Agency Multi-family Mortgage RB
(AMBAC Insurance) VRDN+ (NR, VMIG-1) 07/07/97 4.10 1,200,000
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ---------- -------------- -------- ----- ------------
NEW YORK (CONT'D)
<C> <S> <C> <C> <C> <C>
$2,100,000 New York State Housing Finance
Agency 1996 Series A (Union Square
South Housing Project) VRDN+ (NR, VMIG-1) 07/07/97 4.05 $ 2,100,000
5,000,000 New York State Housing Finance
Agency Series A (250 West 50th
Street) (Fleet Bank LOC) VRDN+ (NR, VMIG-1) 07/07/97 4.20 5,000,000
465,000 New York State Job Development
Authority State Special Purpose
Bonds 1984 Series G1 to G55 (A-1+,
(Sumitomo Bank LOC) VRDN+ VMIG-1) 07/01/97 4.00 465,000
200,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bonds 1984 Series C (Sumitomo Bank (A-1+,
LOC) VRDN+ VMIG-1) 07/01/97 4.00 200,000
90,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bonds 1984 Series F (Sumitomo Bank (A-1+,
LOC) VRDN+ VMIG-1) 07/01/97 4.00 90,000
570,000 New York State Job Development
Authority State Guaranteed
Variable Rate Special Purpose
Bonds 1984 Series H (Sumitomo Bank (A-1+,
LOC) VRDN+ VMIG-1) 07/01/97 4.00 570,000
2,000,000 New York State Power Authority TECP
(Citibank LOC) (A-1, P-1) 08/20/97 3.80 2,000,000
2,000,000 New York State Power Authority (A-1, VMIG-1) 09/01/97 3.50 2,000,000
900,000 New York State Thruway Authority
General RB (FGIC Insurance LOC)
VRDN+ (NR, VMIG-1) 07/01/97 4.05 900,000
1,200,000 Port Authority of New York & New
Jersey Versatile Structure (A-1+,
Obligations VRDN+ VMIG-1) 07/01/97 4.10 1,200,000
535,000 New York State Power Authority
Adjustable Tender Notes (A-1, VMIG-1) 09/01/97 3.50 535,000
3,600,000 Suffolk County Industrial
Development Authority 1994
(Nissequogue Cogen) (Toronto (A-1+,
Dominion LOC) VRDN+ VMIG-1) 07/07/97 4.15 3,600,000
1,800,000 Town of Babylon Industrial
Development Agency 1994 (J.
D'addario & Company, Inc.)
(National Westminster LOC) VRDN+ (NR, VMIG-1) 07/07/97 4.10 1,800,000
------------
TOTAL NEW YORK (cost $109,482,457) 109,482,457
------------
PUERTO RICO (3.4%)
3,500,000 Puerto Rico Government Development
Bank 1985 (Credit Suisse LOC)
VRDN+ (A-1+,VMIG-1) 07/07/97 3.75 3,500,000
200,000 Puerto Rico Highway and
Transportation Authority 1993
(Multiple Credit Enhancements LOC)
VRDN+ (A-1+,VMIG-1) 07/07/97 3.75 200,000
200,000 Puerto Rico Industrial Medical
Health Education and Environmental
PCR (Anna G. Mendez Project)
(Lloyds Bank International LOC)
VRDN+ (A-1+, NR) 07/07/97 4.20 200,000
------------
TOTAL PUERTO RICO (cost $3,900,000) 3,900,000
------------
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
------------
<C> <S> <C>
TOTAL INVESTMENTS AT VALUE (99.8%) (Cost $113,382,457*) $113,382,457
OTHER ASSETS IN EXCESS OF LIABILITIES (0.2%) 200,257
------------
NET ASSETS (100.0%) (applicable to 113,595,834 shares) $113,582,714
------------
------------
NET ASSET VALUE, offering and redemption price per share
($113,582,714[div]113,595,834) $1.00
-----
-----
</TABLE>
<TABLE>
<S> <C> <C>
INVESTMENT ABBREVIATIONS
BANS = Bond Anticipation Notes
FGIC = Financial Guaranty Insurance Company
LOC = Letter of Credit
NR = Not Rated
RB = Revenue Bond
TECP = Tax Exempt Commercial Paper
VRDN = Variable Rate Demand Notes
</TABLE>
- --------------------------------------------------------------------------------
+ The interest rate shown is the rate as of June 30, 1997 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.
11
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
MATURITY SCHEDULE OF PORTFOLIO
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MATURITY SCHEDULE
(DAYS) AMOUNT PAR PERCENTAGE OF PORTFOLIO
- ----------------- ------------ -----------------------------
(CUMULATIVE)
<S> <C> <C> <C>
1- 7 $ 64,972,000 57.4% 57.4%
8- 14 0 0.0% 57.4%
15- 30 9,600,000 8.5% 65.9%
31- 60 7,500,000 6.6% 72.5%
61- 90 11,935,000 10.5% 83.0%
91-120 1,500,000 1.3% 84.3%
121-150 0 0.0% 84.3%
Over 150 17,850,000 15.7% 100.0%
------------ -----
$113,357,000 100.0%
------------ -----
------------ -----
Average Weighted Maturity -- 64 days
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF OPERATIONS
For the Four Months Ended June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH RESERVE NEW YORK TAX
FUND EXEMPT FUND
------------ ------------
<S> <C> <C>
INTEREST INCOME: $8,848,698 $1,632,663
------------ ------------
EXPENSES:
Investment advisory 395,742 111,582
Sub-investment advisory and administration 395,742 111,582
Administrative services 158,297 44,633
Audit 8,950 9,024
Custodian 23,854 6,716
Directors 6,684 6,684
Insurance 4,011 1,672
Legal 10,027 8,356
Printing 6,684 1,672
Registration 21,727 5,682
Transfer agent 50,529 5,395
Miscellaneous 5,014 5,014
------------ ------------
1,087,261 318,012
Less fees waived and expenses reimbursed (216,630) (72,532)
------------ ------------
Total expenses 870,631 245,480
------------ ------------
Net investment income 7,978,067 1,387,183
------------ ------------
NET REALIZED AND UNREALIZED LOSS FROM INVESTMENTS:
Net realized loss from security transactions (423) 0
------------ ------------
Net increase in net assets resulting from operations $7,977,644 $1,387,183
------------ ------------
------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
-------------------------------------- ------------------------------------
FOR THE FOUR FOR THE FOUR
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE 30, 1997 YEAR ENDED JUNE 30, 1997 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1997 (UNAUDITED) FEBRUARY 28, 1997
--------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 7,978,067 $ 21,525,922 $ 1,387,183 $ 3,306,940
Net realized loss from
security transactions (423) (2,226) 0 0
--------------- ----------------- ------------- -----------------
Net increase in net
assets resulting
from operations 7,977,644 21,523,696 1,387,183 3,306,940
--------------- ----------------- ------------- -----------------
FROM DISTRIBUTIONS:
Dividends from net
investment income (7,978,067) (21,525,922) (1,387,183) (3,306,940)
--------------- ----------------- ------------- -----------------
Net decrease in net
assets from
distributions (7,978,067) (21,525,922) (1,387,183) (3,306,940)
--------------- ----------------- ------------- -----------------
FROM CAPITAL SHARE
TRANSACTIONS
(AT $1 PER SHARE):
Proceeds from sale of
shares 959,227,646 2,207,941,180 131,132,492 375,730,772
Reinvested dividends 4,048,828 14,490,731 492,043 1,179,911
Net asset value of shares
redeemed (1,007,766,415) (2,189,302,165) (142,232,647) (349,303,606)
--------------- ----------------- ------------- -----------------
Net increase
(decrease) in net
assets from capital
share transactions (44,489,941) 33,129,746 (10,608,112) 27,607,077
--------------- ----------------- ------------- -----------------
Net increase
(decrease) in net
assets (44,490,364) 33,127,520 (10,608,112) 27,607,077
NET ASSETS:
Beginning of period 416,735,230 383,607,710 124,190,826 96,583,749
--------------- ----------------- ------------- -----------------
End of period $ 372,244,866 $ 416,735,230 $113,582,714 $ 124,190,826
--------------- ----------------- ------------- -----------------
--------------- ----------------- ------------- -----------------
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE FOUR
MONTHS ENDED FOR THE YEAR ENDED FEBRUARY 28 OR 29,
JUNE 30, 1997 ------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------- ------ ------ ------ ------ ------
<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 0.0169 0.0492 0.0543 0.0426 0.0273 0.0322
Less Distributions:
Dividends from net
investment income (0.0169) (0.0492) (0.0543) (0.0426) (0.0273) (0.0322)
----- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----- ------ ------ ------ ------ ------
----- ------ ------ ------ ------ ------
Total Return 1.70%`D' 5.03% 5.57% 4.35% 2.76% 3.27%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000s) $372,245 $416,735 $383,607 $403,211 $277,557 $287,723
Ratios to average daily net
assets:
Operating expenses 0.55%* 0.55% 0.55% 0.55% 0.54% 0.50%
Net investment income 5.04%* 4.93% 5.43% 4.41% 2.73% 3.22%
Decrease reflected in
above operating expense
ratios due to
waivers/reimbursements 0.14%* 0.14% 0.16% 0.19% 0.13% 0.17%
</TABLE>
- --------------------------------------------------------------------------------
* Annualized.
`D' Non-annualized.
See Accompanying Notes to Financial Statements.
15
<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 FOUR
MONTHS ENDED FOR THE YEAR ENDED FEBRUARY 28 OR 29,
JUNE 30, 1997 -------------------------------------------------------
(UNAUDITED) 1997 1996 1995 1994 1993
------------- ------- ------- ------- ------- -------
<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 0.0104 0.0288 0.0326 0.0246 0.0175 0.0224
Less Distributions:
Dividends from Net
Investment Income (0.0104) (0.0288) (0.0326) (0.0246) (0.0175) (0.0224)
------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total Return 1.04%`D' 2.92% 3.31% 2.48% 1.77% 2.26%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period
(000s) $113,583 $124,191 $96,584 $77,111 $65,984 $76,995
Ratios to average daily net
assets:
Operating expenses 0.55%* 0.55% 0.55% 0.55% 0.54% 0.50%
Net investment income 3.11%* 2.88% 3.24% 2.46% 1.75% 2.23%
Decrease reflected in
above operating expense
ratios due to
waivers/reimbursements 0.16%* 0.17% 0.27% 0.27% 0.19% 0.28%
</TABLE>
- --------------------------------------------------------------------------------
* Annualized.
`D' Non-annualized.
See Accompanying Notes to Financial Statements.
16
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1997 (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.
Certain New York state and New York city municipal obligations in the New
York Tax Exempt Fund may be obligations of issues which rely in whole or in part
on New York state or New York city revenues, real property taxes, revenues from
health care institutions, or obligations secured by mortgages on real property.
Consequently, the possible effect of economic conditions in New York or of
changes in New York regulations on these obligations must be considered.
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
17
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
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 through its custodian.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
The Cash Reserve Fund and the New York Tax Exempt Fund have, effective March
1, 1997, each changed their fiscal and tax year-ends from February 28th to
December 31st, which was approved by the Funds' Board of Directors on January
15, 1997.
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of the transfer
agent expense. For the period ended June 30, 1997, each Fund received credits or
reimbursements as follows:
<TABLE>
<CAPTION>
FUND AMOUNT
- ----------------------------------------- ---------------------
<S> <C>
Cash Reserve $17,105
New York Tax Exempt 3,724
</TABLE>
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), which is indirectly controlled
by Warburg, Pincus & Co., 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 period ended June
30, 1997, investment advisory fees and waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
- --------------------------- ------------------ -------- ------------------
<S> <C> <C> <C>
Cash Reserve $395,742 $(79,810) $315,932
New York Tax Exempt 111,582 (27,523) 84,059
</TABLE>
PNC Institutional Management Corporation ('PIMC'), a wholly owned subsidiary
of PNC Bank, N.A., serves as each Fund's sub-investment adviser and
18
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR (CONT'D)
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 period ended June 30, 1997, 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 $395,742 $(119,715) $276,027
New York Tax Exempt 111,582 (41,285) 70,297
</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 period ended June 30, 1997,
administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE
- ----------------------------------------- ---------------------
<S> <C>
Cash Reserve $ 158,297
New York Tax Exempt 44,633
</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 two billion shares are
designated Advisor Shares. Neither Fund currently offers Advisor Shares.
19
<PAGE>
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1997 (Unaudited)
- --------------------------------------------------------------------------------
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
------------------------------------ ------------------------------------
FOR THE FOUR FOR THE FOUR
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE 30, 1997 YEAR ENDED JUNE 30, 1997 YEAR ENDED
(UNAUDITED) FEBRUARY 28, 1997 (UNAUDITED) FEBRUARY 28, 1997
-------------- ----------------- -------------- -----------------
<S> <C> <C> <C> <C>
Shares sold 959,227,646 2,207,941,180 131,132,492 375,730,772
Shares issued to
shareholders on
reinvestment of
dividends 4,048,828 14,490,731 492,043 1,179,911
Shares redeemed (1,007,766,415) (2,189,302,165) (142,232,646) (349,303,606)
-------------- ----------------- -------------- -------------
Net increase (decrease)
in shares (44,489,941) 33,129,746 (10,608,111) 27,607,077
-------------- ----------------- -------------- -------------
-------------- ----------------- -------------- -------------
</TABLE>
4. LIABILITIES
At June 30, 1997 the Funds had the following liabilities:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
----------------- ------------------------
<S> <C> <C>
Dividends Payable $1,611,857 $316,589
Investment advisory fee payable 64,313 19,016
</TABLE>
5. NET ASSETS
Net Assets at June 30, 1997, consisted of the following:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK TAX EXEMPT FUND
----------------- ------------------------
<S> <C> <C>
Capital contributed, net $ 372,247,951 $113,595,840
Accumulated net realized loss from
security transactions (3,085) (13,126)
----------------- ------------
Net assets $ 372,244,866 $113,582,714
----------------- ------------
----------------- ------------
</TABLE>
6. CAPITAL LOSS CARRYOVER
For the Fiscal year ended February 28, 1997, the Cash Reserve Fund and the
New York Tax Exempt Fund have capital loss carryovers of $2,733 and $13,126,
respectively, to offset possible future capital gains of each Fund. These
carryovers expire as follows:
<TABLE>
<CAPTION>
FUND YEAR AMOUNT
- ---------------------------- ---- ------
<S> <C> <C>
Cash Reserve 2004 $ 507
2005 2,226
New York Tax Exempt 1997 4,822
1998 4,026
2000 4,089
2002 189
</TABLE>
20
<PAGE>
<PAGE>
[Logo]
P.O. Box 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874)
COUNSELLORS SECURITIES INC., DISTRIBUTOR. WPMMF-3-0697
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as `D'
The division sign shall be expressed as [div]
