SEMIANNUAL
REPORT
JUNE 30, 1999
WARBURG PINCUS
CASH RESERVE FUND
(BLOCK)
WARBURG PINCUS
NEW YORK TAX EXEMPT FUND
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.
Warburg Pincus Funds is a division of Credit Suisse Asset Management, LLC.
WARBURG PINCUS FUNDS
[GRAPHIC OMITTED]
<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.
PERFORMANCE DATA REPRESENT PAST PERFORMANCE AND ARE NOT A GUARANTEE OF FUTURE
PERFORMANCE. THE FUNDS' YIELDS WILL FLUCTUATE. EACH FUND SEEKS TO MAINTAIN A
CONSTANT NET ASSET VALUE OF $1 PER SHARE; THERE CAN BE NO ASSURANCE THAT IT CAN
DO SO ON A CONTINUING BASIS. AN INVESTMENT IN EACH FUND IS NEITHER INSURED NOR
GUARANTEED BY THE U.S. GOVERNMENT.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF JUNE 30, 1999; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES. NOTHING
IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999
- --------------------------------------------------------------------------------
August 12, 1999
Dear Shareholder:
The domestic economy displayed surprising health during the first six months
of 1999, fueling expectations that the Federal Reserve would raise interest
rates to ward off potential inflation. Indeed, at its May meeting the Fed
announced a bias toward raising rates (it specifically noted the potential for
wage increases to outpace productivity gains). In a widely anticipated move, and
one preceded by a significant rise in short-term yields, the Fed raised the
federal funds target rate by 25 basis points, to 5%, on June 30.
Warburg Pincus Cash Reserve Fund continued to emphasize high-quality
securities through the period, as is its general policy. The fund's annualized
seven-day yield as of June 30, 1999 was 4.47% (4.35% without waivers and/or
reimbursements), down from 4.61% for the period ended December 31, 1998. The
fund had net assets of $446.6 million as of that date, up from $430.0 million at
the start of the period. The fund's average weighted seven-day maturity as of
June 30, 1999 was 59 days, up from 39 days on December 31, 1998.
The fund will continue to emphasize the highest-quality securities in an
effort to provide competitive returns without compromising safety and stability
of principal. We appreciate your continued support and investment in the fund.
Eugene L. Podsiadlo BlackRock Institutional Management Corporation
President Sub-Investment Adviser
Warburg Pincus Funds
1
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT--JUNE 30, 1999
- --------------------------------------------------------------------------------
August 12, 1999
Dear Shareholder:
Fiscally New York state has continued to benefit from an improving economy.
Particularly noteworthy is the state's year-over-year economic growth rate,
which in April matched the national rate for the first time in years, and its
private-sector employment, which currently stands at an all-time high. Credit
concerns, however, remain on the horizon. The state's large and growing debt
burden, dependence on the financial-services sector and failure to build up
reserves during the economic expansion are factors that could negatively impact
the state should the national economy enter recession. In addition, the state is
once again late in passing its (as usual, politically contentious) budget.
Combined, these factors limit the upside potential for the state's credit
ratings.
New York City's economy also continues to improve. As of February, the city
had recovered employment lost during the 1989-1992 recession, and the state
comptroller is currently projecting a $2.1 billion surplus for fiscal-year 1999
(which would mark three straight years of record surpluses).
Warburg Pincus New York Tax Exempt Fund's seven-day annualized yield as of
June 30 was 2.89% (without waivers and/or reimbursements, the fund's seven-day
annualized yield would have been 2.75%). Its seven-day average weighted maturity
as of that date was 46 days. The fund had net assets of $148.2 million on June
30, 1999.
The fund's assets during the period peaked in late January at about $195
million and reached a low of $140 million in April. This reflected seasonal
factors (e.g., April tax payments) that drive flows for money-market funds
generally. In terms of strategy, we kept the fund's average weighted maturity
within the 25- to 35-day range over much of the period, since yields were often
actually lower among longer-dated municipal money-market securities. We began to
extend the fund's maturity in May, however, when market expectations of a
Federal Reserve interest-rate hike caused yields farther out on the yield curve
to rise.
We will continue to strive to provide investors a high level of current
income that is exempt from federal, New York state and New York City taxes as is
consistent with preservation of capital and liquidity. We appreciate your
continued support and investment in the fund.
Eugene L. Podsiadlo BlackRock Institutional Management Corporation
President Sub-Investment Adviser
Warburg Pincus Funds
A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO STATE AND CITY TAXES OR THE
FEDERAL ALTERNATIVE MINIMUM TAX.
2
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS--JUNE 30, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- ------------- -------- ------- ------------
<S> <C> <C> <C> <C> <C>
COMMERCIAL PAPER (51.0%)
ASSET BACKED SECURITIES (4.5%)
$20,000,000 Dakota Trust Certificates (A-1+, P-1) 07/07/99 4.820 $ 19,983,933
------------
BANKS (28.8%)
20,000,000 AB Spin Tab Swedmortgage (A-1, P-1) 09/07/99 4.880 19,815,644
25,000,000 Abbey National N.A. (A-1+, P-1) 07/21/99 4.800 24,933,333
20,000,000 Deutsche Bank Financial, Inc. (A-1+, P-1) 10/25/99 4.890 19,684,867
20,000,000 National City Credit Corp. (A-1, P-1) 08/06/99 4.900 19,902,000
25,000,000 Svenska Handelsbanken, Inc. (A-1, P-1) 12/20/99 4.850 24,420,695
20,000,000 UBS Finance LLC (A-1+, P-1) 10/25/99 4.900 19,684,222
------------
128,440,761
------------
COMMUNICATION EQUIPMENT (3.3%)
15,000,000 Alcatel Alsthom Inc. (A-1, P-1) 08/19/99 4.870 14,900,571
------------
ENTERTAINMENT (2.2%)
10,000,000 Walt Disney Co. (A-1, P-1) 09/14/99 4.890 9,898,125
------------
MOTOR VEHICLE PARTS AND ACCESSORIES (4.5%)
20,000,000 Eaton Corp. (A-2, P-1) 07/27/99 4.870 19,929,656
------------
NEWSPAPER: PUBLISHING AND PRINTING (3.3%)
15,000,000 Knight_Ridder, Inc. (A-1, P-2) 07/28/99 4.820 14,945,775
------------
SECURITY BROKERS AND DEALERS (4.4%)
20,000,000 Goldman Sachs Group, Inc. (The) (A-1+, P-1) 10/21/99 4.920 19,693,867
------------
TOTAL COMMERCIAL PAPER
(Cost $227,792,688) 227,792,688
------------
VARIABLE RATE OBLIGATIONS (40.1%)
BANKS (26.6%)
20,000,000 Bayerische Hypo-Und Vereinsbank+ (A-1+, P-1) 07/14/99 4.874 19,990,557
10,410,000 J P Morgan & Co., Inc.+ (A-1+, P-1) 09/02/99 5.016 10,410,521
9,000,000 J P Morgan & Co., Inc.+ (A-1+, P-1) 07/06/99 4.980 9,000,140
20,000,000 Key Bank N.A.+ (A-1, P-1) 09/14/99 5.035 19,988,735
20,000,000 Royal Bank of Canada+ (A-1+, P-1) 07/14/99 4.844 19,997,123
20,000,000 U.S. National Bank of Oregon+ (A-1, P-1) 07/21/99 4.950 20,000,000
19,500,000 Wells Fargo & Co.+ (A-1, P-1) 09/30/99 5.208 19,487,667
------------
118,874,743
------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS (4.5%)
20,000,000 General Electric Capital Corp.+ (A-1+, P-1) 07/12/99 4.950 20,000,000
------------
PERSONAL CREDIT INSTITUTIONS (9.0%)
15,000,000 American Honda Finance Corp.+ (A-1, P-1) 09/07/99 5.096 15,003,349
25,000,000 General Motors Acceptance Corp.+ (A-1, P-1) 08/26/99 4.958 24,998,481
------------
40,001,830
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $178,876,573) 178,876,573
------------
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- ------------- -------- ------- ------------
<S> <C> <C> <C> <C> <C>
DOMESTIC CERTIFICATES OF DEPOSIT (2.2%)
$10,000,000 Wilmington Trust Co.
(Cost $10,000,000) (A-1, P-1) 01/14/00 5.070 $ 10,000,000
------------
AGENCY OBLIGATIONS (4.5%)
20,000,000 Federal Home Loan Mortgage Corp.
(Cost $19,951,900) (A-1+, P-1) 07/19/99 4.810 19,951,900
------------
REPURCHASE AGREEMENTS (2.4%)
10,700,000 Repurchase Agreement with
Morgan Stanley & Co., dated
6/30/99 at 5.90% to be
repurchased on 7/1/99 at
$10,701,754. (Collateralized by
$1,444,000 U.S. Treasury Note
at 6.125%, due on 08/15/07 with
a market value of $1,444,725,
$2,179,000 U.S. Treasury Note
at 5.375%, due on 06/30/03 with
a market value of $2,140,236,
$2,064,000 U.S. Treasury Note
at 6.25%, due on 10/31/01 with
a market value of $2,086,737,
$2,445,000 U.S. Treasury Note
at 7.875%, due on 08/15/01 with
a market value of $2,548,913
and $2,508,000 U.S. Treasury
Bond at 8.25%, due on 05/15/05
with a market value of
$2,566,110.)
(Cost $10,700,000) 10,700,000
------------
TOTAL INVESTMENTS AT VALUE (100.2%)
(Cost $447,321,161*) 447,321,161
LIABILITIES IN EXCESS OF OTHER ASSETS (-0.2%) (756,229)
------------
NET ASSETS (100%) (applicable to 446,707,288 shares) $446,564,932
============
NET ASSET VALUE, offering and redemption price per share
($446,564,932 (DIVIDE) 446,707,288) $ 1.00
============
</TABLE>
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+ The interest rate shown is as of June 30, 1999 and the maturity is the next
interest readjustment date.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
4
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
MATURITY SCHEDULE OF PORTFOLIO--JUNE 30, 1999 (UNAUDITED)
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MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
----------------- ------------ -------------------------------
(CUMULATIVE)
1-7 $ 39,700,000 8.9% 8.9%
8-14 60,000,000 13.3 22.2
15-30 100,000,000 22.2 44.4
31-60 60,000,000 13.3 57.7
61-90 75,410,000 16.8 74.5
91-120 79,500,000 17.7 92.2
121-150 0 0.0 92.2
Over 150 35,000,000 7.8 100.0
------------ -----
$449,610,000 100.0%
============ =====
Average Weighted Maturity -- 58.93 days
See Accompanying Notes to Financial Statements.
5
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS--JUNE 30, 1999 (UNAUDITED)
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<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
--- -------------- -------- ----- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (99.7%)
NEW YORK (97.7%)
$1,045,000 Auburn IDA Revenue Bond Series 1997 (Fat Tire,
LLC Project) (Key Corp. Bank N.A. LOC) VRDN+ (NR, NR) 07/07/99 3.750 $ 1,045,000
2,400,000 Babylon, New York IDA Resource Recovery
Series 1998 (Ogden Martin Project) (Financial
Service Assurance LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.100 2,400,000
1,000,000 Chautauqua County IDA Series 1985 (The Red
Wing Co., Inc.) (Wachovia Bank of GA LOC)
VRDN+ (NR, NR) 07/07/99 3.350 1,000,000
1,650,000 Erie County, New York IDA VRDN+ (A-1, NR) 07/07/99 3.700 1,650,000
2,290,000 Lancaster, IDA Revenue Bond (1997 Jiffy-Tite
Co., Inc. Project) (Key Corp. Bank N.A. LOC)
VRDN+ (NR, NR) 07/07/99 3.750 2,290,000
2,750,000 Metropolitan Transportation Authority Transit
Facilities Revenue Bond, Series 1998 C
(ABN-AMRO Bank NV LOC) VRDN+ (A-1+, P-1) 07/07/99 3.770 2,750,000
1,000,000 Monroe County, New York IDA Revenue Bond
Series 1984 (Electronic Navigational
Industries Inc. Facilities) (NR, NR) 07/01/99 3.750 1,000,000
1,535,000 Monroe County, New York IDA Series A
(Collegiate Housing Foundation) (First Union
National Bank of North Carolina LOC) VRDN+ (NR, VMIG-1) 07/07/99 3.650 1,535,000
1,000,000 Monroe County, New York IDA Series B (JMT
Properties) VRDN+ (NR, P-1) 07/07/99 3.700 1,000,000
1,000,000 New York City Eagle Tax Exempt (Escrowed to
Maturity in U.S. Treasuries) VRDN+ (NR, VMIG-1) 07/07/99 3.600 1,000,000
1,200,000 New York City General Obligation (FGIC
Insurance LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.300 1,200,000
2,000,000 New York City General Obligation (Mitsubishi
Bank LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.350 2,000,000
2,500,000 New York City General Obligation Series 1990
(Escrowed to Maturity in U.S. Treasuries) (NR, NR) 03/15/00 7.500 2,573,363
900,000 New York City General Obligation Series 1992 D
(FGIC Insurance LOC) VRDN+ (A-1+, VMIG-1) 07/01/99 3.400 900,000
1,200,000 New York City General Obligation Series 1993
A-7 (Morgan Guaranty Trust LOC) VRDN+ (A-1+, VMIG-1) 07/01/99 3.500 1,200,000
2,800,000 New York City General Obligation Series 1994
H-3 (Financial Service Assurance LOC) (A-1+, VMIG-1) 07/20/99 3.200 2,800,000
2,800,000 New York City General Obligation Series 1994
H-3 (Financial Service Assurance LOC) (A-1+, VMIG-1) 07/22/99 3.050 2,800,000
5,500,000 New York City General Obligation Series 1994
H-3 (Financial Service Assurance LOC) (A-1+, VMIG-1) 08/24/99 3.350 5,500,000
5,000,000 New York City General Obligation Series 1994
H-4 (Kredietbank LOC) (A-1+, VMIG-1) 07/29/99 2.850 5,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- -------------- -------- ----- -----------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
NEW YORK (cont'd)
$2,000,000 New York City General Obligation Series 1994
H-5 (Landesbank Hessen-Thuringen
Girozentrale LOC) (A-1+, VMIG-1) 07/30/99 2.850 $ 2,000,000
2,180,000 New York City General Obligation Series 1995
F-4 (Hessen LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.350 2,180,000
2,100,000 New York City General Obligation Series H-3
(Financial Service Assurance LOC) (NR, NR) 08/25/99 3.150 2,100,000
4,000,000 New York City General Obligation Series H-4
(Kredietbank LOC) (NR, NR) 08/19/99 2.850 4,000,000
6,870,000 New York City Health and Hospitals Health
System Revenue Bond Series 1997 A
(Morgan Guaranty LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.300 6,870,000
1,180,000 New York City Health & Hospitals Health System
Revenue Bond Series 1997 C (Toronto-
Dominion Bank LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.350 1,180,000
1,200,000 New York City Housing Development Corp.
Multi-Family Mortgage Revenue Bond Series
1989 A (Queenswood Apartments) (National
City Bank of Cleveland LOC) VRDN+ (NR, VMIG-1) 07/07/99 3.200 1,200,000
700,000 New York City Housing Development Corp.
Multi-Family Mortgage Revenue Bond Series
1993 A (Columbus Gardens Project)
(Citibank LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.250 700,000
1,100,000 New York City Housing Development Corp.
Multi-Family Rental Housing Revenue Bond
Series 1999 A (West 43rd Street Development)
(Federal National Mortgage Association LOC) (NR, NR) 07/07/99 3.300 1,100,000
200,000 New York City Housing Development Corp.
Multi-Housing Revenue Bond Series 1997 A
(Columbus Green) (Federal National Mortgage
Association LOC) VRDN+ (A-1+, NR) 07/07/99 3.200 200,000
3,000,000 New York City Municipal Water & Finance
Authority Series 3 (Bank of Nova Scotia LOC) (A-1+, P-1) 08/02/99 3.250 3,000,000
700,000 New York City Transitional Finance Authority
Revenue Bond (Future Tax Project) Series
1998 A-2 VRDN (Bank of Nova Scotia LOC)+ (VMIG-1) 07/07/99 3.350 700,000
900,000 New York Local Government Assistance Bond
(Toronto Dominion LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.200 900,000
1,295,000 New York Local Government Assistance Corp.
(Societe Generale LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.250 1,295,000
600,000 New York Local Government Assistance Corp.
Revenue Bond Series 1995 B (Bank of Nova
Scotia LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.250 600,000
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- -------------- -------- ----- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
NEW YORK (cont'd)
$5,900,000 New York Local Government Assistance Corp.
Revenue Bond (Canadian Imperial Bank
LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.250 $ 5,900,000
1,000,000 New York State Dormitory Authority Metropolitan
Museum of Art Revenue Bond Series 1993 B
VRDN+ (A-1+, VMIG-1) 07/07/99 3.250 1,000,000
3,440,000 New York State Dormitory Authority Revenue
Bond (Beverwyck, Inc.) (Banque Paribas LOC)
VRDN+ (A-1, VMIG-1) 07/07/99 3.250 3,440,000
1,000,000 New York State Dormitory Authority Revenue
Bond (Rockefeller University) (A-1+, VMIG-1) 07/07/99 3.300 1,000,000
1,795,000 New York State Dormitory Authority Revenue
Bond Series A (Miriam Osborn Memorial
Home) (Banque Paribas LOC) (A-1, VMIG-1) 07/07/99 3.250 1,795,000
3,500,000 New York State Dormitory Authority Revenue
Bond Series A (State University Educational
Facilities) (NR, NR) 05/15/00 7.700 3,696,039
1,220,000 New York State Energy Research & Development
Authority Gas Facilities Revenue Bond (The
Brooklyn Union Gas Co. Project) (MBIA
Insurance LOC) VRDN+ (A-1+, VMIG-1) 070/7/99 3.350 1,220,000
6,000,000 New York State Energy Research & Development
Authority New York State Electric & Gas Series
1985 A (Morgan Guaranty LOC) (A-1+, P-1) 03/15/00 3.000 6,000,000
1,500,000 New York State Energy Research & Development
Authority Pollution Control Revenue Bond
Series 1985 A (Central Hudson Gas & Electric)
(Bankers Trust LOC) VRDN+ (NR, P-1) 07/07/99 3.550 1,500,000
800,000 New York State Energy Research & Development
Authority Pollution Control Revenue Bond
(New York State Electric & Gas Corp.)
(Morgan Guaranty LOC) (A-1+, VMIG-1) 07/07/99 3.800 800,000
4,800,000 New York State Energy Research &
Development Authority Pollution Control
Revenue Bond Series A (Niagara Mohawk
Power) VRDN+ (A-1+, NR) 07/01/99 3.500 4,800,000
2,400,000 New York State Housing Finance Agency
Series A (Mount Sinai School Of Medicine)
(Sanwa Bank LOC) VRDN+ (NR, VMIG-1) 07/07/99 3.500 2,400,000
800,000 New York State Housing Finance Agency
Series 1991 (Normandie Court Project)
(Society General LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.200 800,000
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- -------------- -------- ----- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
NEW YORK (cont'd)
$1,930,000 New York State Job Development Authority
Special Purpose Bond Series 1986 A1 to A14
(Sumitomo Bank LOC) VRDN+ (A-1+, VMIG-1) 07/30/99 3.300 $ 1,930,000
605,000 New York State Job Development Authority
Special Purpose Bond Series C (Sumitomo
Bank LOC) VRDN+ (A-1+, VMIG-1) 07/30/99 3.200 605,000
2,300,000 New York State Power Authority (Bank of Nova
Scotia LOC) (A-1, P-1) 07/12/99 3.200 2,300,000
2,000,000 New York State Power Authority VRDN+ (A-1, VMIG-1) 09/01/99 2.900 2,000,000
2,100,000 New York State Power Authority Series 4
(Bank of Nova Scotia LOC) (A-1, P-1) 07/09/99 3.150 2,100,000
5,000,000 New York State Power Authority (Bank of Nova
Scotia LOC) (A-1, P-1) 07/08/99 3.250 5,000,000
10,300,000 Niagara County IDA Solid Waste Disposal
Facility Revenue Bond (American Ref-Fuel Co.
of Niagara) (Wachovia LOC) VRDN+ (A-1+, P-1) 07/07/99 3.450 10,300,000
1,255,000 North Greenbush, New York BAN (NR, NR) 10/01/99 3.800 1,255,762
3,000,000 Oneonta City Of, City School District Otsego
County, New York RAN (NR, NR) 06/16/00 3.625 3,006,248
1,470,000 Onondaga County IDA Revenue Bond Series
1998 (Plainville Turkey Farm, Inc. Project)
(Key Corp. Bank N.A. LOC) VRDN+ (NR, NR) 07/07/99 3.750 1,470,000
2,400,000 Oswego, County of, IDA Revenue Bond (Crysteel
Manufacturing, Inc. Project) (Key Corp. Bank
N.A. LOC) VRDN+ (NR, NR) 07/01/99 3.750 2,400,000
1,100,000 Port Authority of New York & New Jersey
Versatile Structure Obligations VRDN+ (A-1+, VMIG-1) 07/01/99 3.400 1,100,000
1,000,000 St. Lawrence County IDA Environmental
Facilities Revenue Bond Series 1998 A
(Aluminum Co. of America Project) VRDN+ (A-1, NR) 07/07/99 3.670 1,000,000
1,600,000 St. Lawrence County IDA Environmental
Improvement Revenue Bond (Reynolds Metals
Co.) (Royal Bank of Canada LOC) VRDN+ (A-1+, VMIG-1) 07/07/99 3.200 1,600,000
460,000 State of New York Power Authority Adjustable
Tender Notes (A-1, VMIG-1) 09/01/99 2.900 460,000
1,200,000 Suffolk County Water Authority BAN (Bank of
Nova Scotia LOC) (VMIG-1) 07/07/99 3.200 1,200,000
1,600,000 Town of Babylon IDA Series 1994 (J. D'addario
& Co., Inc. Project) (National Westminster
LOC) VRDN+ (NR, VMIG-1) 07/07/99 3.400 1,600,000
2,200,000 Ulster County IDA Revenue Bond Series 1998 A
(Viking Industries, Inc. Project) (Key Corp.
Bank N.A. LOC) VRDN+ (NR, NR) 07/07/99 3.750 2,200,000
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF NET ASSETS (CONT'D)--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (S&P/MOODY'S) MATURITY RATE% VALUE
---- -------------- -------- ----- ------------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
NEW YORK (cont'd)
$1,250,000 Williston Park Village (NR, NR) 03/10/00 3.400 $ 1,252,513
------------
TOTAL NEW YORK (Cost $144,798,925) 144,798,925
------------
PUERTO RICO (2.0%)
3,000,000 Puerto Rico Government Development Bank
(Credit Suisse LOC) (Cost $3,000,000) (A-1+, VMIG-1) 07/07/99 3.000 3,000,000
------------
TOTAL INVESTMENTS AT VALUE (99.7%) (Cost $147,798,925*) 147,798,925
OTHER ASSETS IN EXCESS OF LIABILITIES (0.3%) 389,982
------------
NET ASSETS (100.0%) (applicable to 148,202,026 shares) $148,188,907
============
NET ASSET VALUE, offering and redemption price per share
($148,188,907 (DIVIDE) 148,202,026) $ 1.00
============
</TABLE>
INVESTMENT ABBREVIATIONS
BAN = Bond Anticipation Notes
FGIC = Financial Guarantee Insurance Company
IDA = Industrial Development Agency
LOC = Letter of Credit
NR = Not Rated
RAN = Revenue Anticipation Notes
VRDN = Variable Rate Demand Notes
- --------------------------------------------------------------------------------
+ The interest rate shown is the rate as of June 30, 1999 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 cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
MATURITY SCHEDULE OF PORTFOLIO--JUNE 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
----------------- ------------ -------------------------------
(CUMULATIVE)
1-7 $ 88,420,000 59.9% 59.9%
8-14 9,400,000 6.4 66.3
15-30 15,135,000 10.3 76.6
31-60 14,600,000 9.9 86.5
61-90 2,460,000 1.7 88.2
91-120 1,255,000 0.9 89.1
121-150 0 0.0 89.1
Over 150 16,250,000 10.9 100.0
------------ ------
$147,520,000 100.0%
============ =====
Average Weighted Maturity -- 46.05 days
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
CASH RESERVE NEW YORK
FUND TAX EXEMPT FUND
----------- ---------------
INTEREST INCOME: $10,866,469 $2,492,093
----------- ----------
EXPENSES:
Investment advisory 548,226 203,742
Sub-investment advisory and administration 767,900 285,537
Audit 11,190 9,850
Custodian 33,090 12,272
Directors 12,334 12,054
Insurance 3,832 1,509
Legal 16,594 10,650
Printing 13,559 5,173
Registration 22,406 10,156
Transfer agent 52,276 9,301
Miscellaneous 832 948
----------- ----------
1,482,239 561,192
Less: fees waived, expenses reimbursed
and transfer agent fee offsets (276,142) (112,960)
----------- ----------
Total expenses 1,206,097 448,232
----------- ----------
Net investment income 9,660,372 2,043,861
----------- ----------
NET REALIZED GAIN FROM INVESTMENTS
Net realized gain from security transactions 6,514 0
----------- ----------
Net increase in net assets resulting
from operations $ 9,666,886 $2,043,861
=========== ==========
See Accompanying Notes to Financial Statements.
12
<PAGE>
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<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 SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31, 1998 (UNAUDITED) DECEMBER 31, 1998
-------------- ----------------- ------------- -----------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 9,660,372 $ 25,975,339 $ 2,043,861 $ 4,511,197
Net realized gain (loss) from security transactions 6,514 (128,038) 0 0
-------------- -------------- ------------- -------------
Net increase in net assets resulting
from operations 9,666,886 25,847,301 2,043,861 4,511,197
-------------- -------------- ------------- -------------
FROM DISTRIBUTIONS:
Dividends from net investment income (9,660,372) (25,975,339) (2,043,861) (4,511,197)
-------------- -------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS (AT $1 PER SHARE):
Proceeds from sale of shares 1,386,625,310 2,813,181,462 182,791,317 430,856,437
Reinvested dividends 5,284,256 17,073,030 995,368 2,192,770
Net asset value of shares redeemed (1,375,329,130) (2,872,823,033) (210,340,961) (409,478,827)
-------------- -------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions 16,580,436 (42,568,541) (26,554,276) 23,570,380
-------------- -------------- ------------- -------------
Net increase (decrease) in net assets 16,586,950 (42,696,579) (26,554,276) 23,570,380
NET ASSETS:
Beginning of period 429,977,982 472,674,561 174,743,183 151,172,803
-------------- -------------- ------------- -------------
End of Period $ 446,564,932 $ 429,977,982 $ 148,188,907 $ 174,743,183
============== ============== ============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
14 & 15
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FOR THE TEN FOR THE YEAR ENDED FEBRUARY 28 OR 29,
JUNE 30, 1999 YEAR ENDED MONTHS ENDED ----------------------------------------
(UNAUDITED) DECEMBER 31, 1998 DECEMBER 31, 1997 1997 1996 1995 1994
------------- ----------------- ----------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED:
PER-SHARE DATA
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.0218 0.0499 0.0428 0.0492 0.0543 0.0426 0.0273
-------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS:
From net investment income (0.0218) (0.0499) (0.0428) (0.0492) (0.0543) (0.0426) (0.0273)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ========
Total return 2.18% 5.12% 4.28%3 5.03% 5.57% 4.35% 2.76%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $446,565 $429,978 $472,675 $416,735 $383,607 $403,211 $277,557
Ratio of expenses to average
net assets .55%1,2 .56%1 .55%1,2 .55%1 .56%1 .55% .54%
Ratio of net income to average
net assets 4.41%2 5.00% 5.11%2 4.93% 5.43% 4.41% 2.73%
Decrease reflected in above
operating expense ratios due to
waivers/reimbursements .12%2 .12% .12%2 .14% .16% .19% .13%
<FN>
- --------------------------------------------------------------------------------
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
fund's net expense ratio by .00%, .01%, .00%, .00% and .01% for the period
ended June 30, 1999, the year ended December 31, 1998, the period ended
December 31, 1997 and the years ended February 28 or 29, 1997 and 1996
respectively. The operating expense ratio after reflecting these arrangements
was .55%, .56%, .55%, .55% and .56% for the period ended June 30, 1999, the
year ended December 31, 1998, the period ended December 31, 1997 and the years
ended February 28 or 29, 1997 and 1996, respectively.
2 Annualized.
3 NON-ANNUALIZED.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
16 & 17
<PAGE>
WARBURG NEW YORK TAX EXEMPT FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE FOR THE TEN FOR THE YEAR ENDED FEBRUARY 28 OR 29,
JUNE 30, 1999 YEAR ENDED MONTHS ENDED ----------------------------------------
(UNAUDITED) DECEMBER 31, 1998 DECEMBER 31, 1997 1997 1996 1995 1994
------------ ----------------- ----------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
PERIOD ENDED:
PER-SHARE DATA
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.0127 0.0287 0.0261 0.0288 0.0326 0.0246 0.0175
-------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS:
From net investment income (0.0127) (0.0287) (0.0261) (0.0288) (0.0326) (0.0246) (0.0175)
-------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======== ========
Total return 1.26% 2.92% 2.64%3 2.92% 3.31% 2.48% 1.77%
RATIOS AND SUPPLEMENTAL DATA:
NET ASSETS, END OF PERIOD (000S OMITTED) $148,189 $174,743 $151,173 $124,191 $ 96,584 $ 77,111 $ 65,984
Ratio of expenses to average
net assets .55%1,2 .55%1 .55%1,2 .55%1 .56%1 .55% .54%
Ratio of net income to average
net assets 2.51%2 2.86% 3.12%2 2.88% 3.24% 2.46% 1.75%
Decrease reflected in above
operating ratios due to
waivers/reimbursements .13%2 .14% .12%2 .17% .27% .27% .19%
<FN>
- --------------------------------------------------------------------------------
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
fund's net expense ratio by .00%, .00%, .00%, .00% and .01% for the period
ended June 30, 1999, the year ended December 31, 1998, the period ended
December 31, 1997 and the years ended February 28 or 29, 1997 and 1996,
respectively. The operating expense ratio after reflecting these arrangements
was .55%, .55%, .55%, .55% and .56% for for the period ended June 30, 1999,
the year ended December 31, 1998, the period ended December 31, 1997 and the
years ended February 28 or 29, 1997 and 1996, respectively.
2 Annualized.
3 Non-annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
18 & 19
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Cash Reserve Fund and the Warburg Pincus New York Tax
Exempt Fund are registered under the Investment Company Act of 1940, as amended
(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; and 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 issuers 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 twice daily as of noon and the
close of regular trading on the New York Stock Exchange. Each fund's investments
are valued under the amortized cost method, which approximates market value,
unless a fund's Board of Directors determines that using this method would not
reflect an investment's value. Amortized cost involves valuing a fund holding
initially at its cost and then assumes a constant amortization to maturity of
any discount or premium. The amortized cost method ignores any impact of
fluctuating interest rates.
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 realized 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 principals.
20
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
No provision is made for federal income 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 of 1986, as amended, 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 a security subject to an
obligation of the seller to repurchase. Securities pledged as collateral for
repurchase agreements are held by the fund's custodian bank until the agreements
mature. Each agreement requires that the market value of the collateral be
sufficient to cover payments of interest and principal; however, in the event of
default or bankruptcy by the other party to the agreement, retention of the
collateral may be subject to legal proceedings.
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 funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of their
transfer agent expense. For the six months ended June 30, 1999, each Fund
received credits or reimbursements under this arrangement as follows:
FUND AMOUNT
---- --------
Cash Reserve $9,522
New York Tax Exempt 3,876
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR
On July 6, 1999, Credit Suisse Asset Management, LLC (CSAM) became each
fund's investment adviser as a result of the completion of the previously
announced acquisition of Warburg Pincus Asset Management, Inc. (WPAM) by Credit
Suisse Group (Credit Suisse) and the combination of WPAM with Credit Suisse's
existing U.S. asset management business. CSAM is an indirect wholly-owned U.S.
subsidiary of Credit Suisse. For its investment advisory services, CSAM receives
a fee calculated at an annual rate of .25% of each fund's average daily net
assets. For the six months ended June 30, 1999, investment advisory fees and
voluntary waivers were as follows:
21
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR -- (CONT'D)
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ --------- --------------
CASH RESERVE $548,226 $(106,648) $441,578
New York Tax Exempt 203,742 (43,634) 160,108
BlackRock Institutional Management Corporation (BIMC), formerly PNC
Institutional Management Corporation, 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, BIMC receives a fee
calculated at an annual rate of .25% of each fund's average daily net assets.
For the six months ended June 30, 1999, sub-investment advisory and
administration fees and voluntary waivers were as follows:
GROSS SUB-ADVISORY NET SUB-ADVISORY
AND AND
FUND ADMINISTRATION FEE WAIVER ADMINISTRATION FEE
---- ------------------ ---------- ------------------
Cash Reserve $548,610 $(159,972) $388,638
New York Tax Exempt 204,040 (65,450) 138,590
Counsellors Funds Service, Inc. (CFSI), an indirect wholly-owned subsidiary
of Credit Suisse, 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 June 30, 1999,
administrative services fees earned by CFSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Cash Reserve $219,290
New York Tax Exempt 81,497
It is currently contemplated that, on or before January 6, 2000, CFSI will be
replaced as co-administrator of each Portfolio by Credit Suisse Asset Management
Securities, Inc. (CSAMSI), an indirect wholly-owned subsidiary of Credit Suisse
that was formerly known as Counsellors Securities Inc. CSAMSI serves as each
fund's distributor. No compensation is payable by the funds to CSAMSI for
distribution services. On June 20, 1999, the Fund's Board of Directors approved
Provident Distributors, Inc. (PDI) as each Fund's distributor, effective on or
before January 6, 2000. PDI, a Delaware corporation, is a registered
broker-dealer and serves as distributor to other mutual funds.
22
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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.
Transactions in shares of each fund were as follows:
<TABLE>
<CAPTION>
CASH RESERVE FUND NEW YORK EXEMPT FUND
------------------------------- ------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE MONTHS ENDED FOR THE
JUNE 30, 1999 YEAR ENDED JUNE 30, 1999 YEAR ENDED
(UNAUDITED) DECEMBER 31,1998 (UNAUDITED) DECEMBER 31,1998
-------------- ---------------- ------------- ----------------
<S> <C> <C> <C> <C>
Shares Sold 1,386,625,309 2,813,181,431 182,791,317 430,856,437
Shares issued to shareholders
on reinvestment of dividends 5,284,256 17,073,030 995,368 2,192,770
Shares Redeemed (1,375,329,130) (2,872,823,033) (210,340,961) (409,478,828)
------------------------------- -------------------------------
Net increase
(decrease) in
shares outstanding 16,580,435 (42,568,572) (26,554,276) 23,570,379
=============================== ===============================
</TABLE>
4. LIABILITIES
At June 30, 1999, the funds had the following affiliated and investment
related liabilities:
NEW YORK
CASH RESERVE FUND TAX EXEMPT FUND
----------------- ---------------
Dividends payable $1,641,703 $330,614
Investment advisory fee payable 76,921 24,263
Administrative services fee payable 37,861 12,503
5. NET ASSETS
At June 30, 1999, capital contributions and accumulated net realized loss
from security transactions have been adjusted for permanent book/tax
differences.
Net assets at June 30, 1999 consisted of the following:
NEW YORK
CASH RESERVE FUND TAX EXEMPT FUND
------------ ---------------
Capital contributed, net $446,707,108 $148,193,184
Accumulated net realized loss from
security transactions (142,176) (4,277)
------------ ------------
Net assets $446,564,932 $148,188,907
============ ============
23
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
6. CAPITAL LOSS CARRYOVER
At June 30, 1999, the Cash Reserve Fund and the New York Tax Exempt Fund have
capital loss carryovers of $148,690 and $4,277, respectively, to offset possible
future capital gains of each fund. These carryovers expire as follows:
YEAR AMOUNT
---- --------
Cash Reserve 2004 $ 2,662
2005 17,990
2006 128,038
New York Tax Exempt 2000 4,089
2002 188
7. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
At a special meeting of shareholders held on May 21, 1999, three proposals
were submitted for the vote of shareholders of the Funds. The proposals and
voting results were:
1. To approve a new investment advisory agreement between each fund and CSAM.
<TABLE>
<CAPTION>
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
CASH RESERVE FUND SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- ------ -------------------- --------------------
<S> <C> <C> <C>
For 302,590,552.8510 75.5481% 99.4889%
Against 633,649.4900 0.1582% 0.2083%
Abstain 920,825.5190 0.2299% 0.3028%
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
NEW YORK TAX EXEMPT FUND SHARES OUTSTANDING SHARES SHARES VOTED
- ------------------------ ------ -------------------- --------------------
For 155,623,403.7300 88.4532% 97.1702%
Against 176,042.4400 0.1001% 0.1099%
Abstain 4,355,966.6000 2.4758% 2.7198%
</TABLE>
24
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
7. RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (CONT'D)
2. To elect Directors of each fund.
CASH RESERVE FUND FOR WITHHELD
----------------- ---------------- --------------
R.H. Francis 300,744,866.7460 3,400,161.1140
J.W. Fritz 300,825,145.9360 3,319,881.9240
J.E. Garten 300,800,204.7660 3,344,823.0940
J.S. Pasman 300,794,823.7660 3,350,204.0940
W.W. Priest 300,773,912.3460 3,371,115.5140
S.N. Rappaport 300,794,823.7660 3,350,204.0940
A.M. Reichman 300,813,740.6360 3,331,287.2240
A.B. Trowbridge 300,800,330.4560 3,344,697.4040
NEW YORK TAX EXEMPT FUND FOR WITHHELD
------------------------ ---------------- ------------
R.H. Francis 159,458,408.0150 697,004.8150
J.W. Fritz 159,458,408.0150 697,004.8150
J.E. Garten 159,458,408.0150 697,004.8150
J.S. Pasman 159,458,408.0150 697,004.8150
W.W. Priest 159,458,408.0150 697,004.8150
S.N. Rappaport 159,458,408.0150 697,004.8150
A.M. Reichman 159,458,408.0150 697,004.8150
A.B. Trowbridge 159,343,002.0150 812,410.8150
3. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants for each fund.
<TABLE>
<CAPTION>
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
CASH RESERVE FUND SHARES OUTSTANDING SHARES SHARES VOTED
- ----------------- ------ -------------------- --------------------
<S> <C> <C> <C>
For 295,108,948.2460 73.6801% 97.0290%
Against 6,100,251.4600 1.5231% 2.0057%
Abstain 2,935,828.1540 0.7330% 0.9653%
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
NEW YORK TAX EXEMPT FUND SHARES OUTSTANDING SHARES SHARES VOTED
- ------------------------ ------ -------------------- --------------------
For 159,773,521.4500 90.8121% 99.7615%
Against 28,553.4600 0.0162% 0.0178%
Abstain 353,337.9200 0.2008% 0.2206%
</TABLE>
8. YEAR 2000 COMPLIANCE
Many services provided to the portfolios and their shareholders by CSAMand
certain of its affiliates (CSAM Service Providers) and the funds' other service
providers rely on the functioning of their respective computer systems. Many
computer systems cannot distinguish the year 2000 from the year 1900, resulting
in potential difficulty in performing various calculations (Year 2000 Issue).
The Year 2000 Issue could potentially have an adverse impact on the handling of
security trades, the payment of interest and dividends, pricing, account
services and other portfolio operations.
25
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
June 30, 1999 (Unaudited)
- --------------------------------------------------------------------------------
8. YEAR 2000 COMPLIANCE (CONT'D)
The CSAM Service Providers recognize the importance of the Year 2000 Issue
and are taking appropriate steps necessary in preparation for the year 2000. The
CSAM Service Providers anticipate that their systems and those of the funds'
other major service providers will be adapted in time for the Year 2000. The
CSAM Service Providers have completed mission critical systems testing and have
participated in industry-wide testing programs. In addition, the CSAM Service
Providers are formulating a contingency plan to address the Year 2000 Issue and
anticipate completion of the plan by the end off the third quarter of 1999.
The CSAMService Providers continue to monitor the Year 2000 Issue and its
potential impact on the funds. However, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on the funds nor can there
be any assurance that the Year 2000 Issue will not have an adverse effect on the
funds' investments or on global markets or economies, generally.
26
<PAGE>
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<PAGE>
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<PAGE>
WARBURG PINCUS FUNDS
[GRAPHIC OMITTED]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (BLOCK) www.warburg.com
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPMMF-3-0699
