[GRAPHIC OMITTED] [GRAPHIC OMITTED]
WARBURG PINCUS FUNDS CREDIT ASSET
SUISSE MANAGEMENT
ANNUAL
REPORT
DECEMBER 31, 1999
WARBURG PINCUS
CASH RESERVE FUND
(BULLET)
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.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center, 6th Floor, West Conshohocken, PA 19428-2961 is not affiliated with
Credit Suisse Asset Management, LLC. Telephone: 800-927-2874. Warburg Pincus
Funds are advised by Credit Suisse Asset Management, LLC.
<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 DECEMBER 31, 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.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
ANNUAL INVESTMENT ADVISER'S REPORT--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
January 19, 2000
Dear Shareholder:
The second half of 1999 witnessed a strong and expanding economy. The Federal
Reserve responded by increasing rates in August and November, raising the
federal fund target to 5.50% at year-end. The Fed, after providing substantial
liquidity for year-end and Y2K concerns, postponed any further monetary policy
changes until 2000 so that year-end pressures would not be intensified.
Inflation, during the second half of the year, remained modest at 2-3%, but the
Fed continued to voice concern that tight labor markets might outpace gains in
productivity. As we enter the new year, market sentiment anticipates that the
Fed will increase rates early in the first quarter.
The annualized yield for Warburg Pincus Cash Reserve Fund (the "Fund") for
the seven-day period ended December 31, 1999 was 5.18% (5.12% without waivers
and/or reimbursements), up from 4.47% for the similar period ended June 30,
1999. Net assets rose to $464.0 million from $446.6 million six months ago. The
Fund's average weighted maturity on December 31, 1999 was shortened to 33 days,
down from 59 days on June 30, 1999, to build liquidity at year-end.
The Fund will continue to emphasize the highest 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 BlackRock Institutional Management Corporation
President Sub-Investment Adviser
Warburg Pincus Funds
1
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
ANNUAL INVESTMENT ADVISER'S REPORT--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
January 19, 2000
Dear Shareholder:
New York State's economic rebound continued with private sector employment
growing 2.0% year-over-year. Employment growth was particularly strong in the
service sector with year-over-year gains in most component industries. The
November 1999 unemployment rate was 5.0%, down from 5.5% in November 1998, but
still higher than the national rate of 4.1%. The growing economy, combined with
greater fiscal discipline, has improved the State's financial performance and
resulted in surplus operations in seven of the past eight years. Standard &
Poor's gave recognition to this in November when they raised the State's general
obligation credit to A+ from A.
New York City's economy continued to expand as well. Unemployment dropped to
6.4% in November 1999 from 8.0%, a year earlier. The City's commercial and
residential real estate markets continued to boom. New York City's fiscal 1999
surplus of $2.6 billion surpassed 1998's record of $2.1 billion. The City
Comptroller is forecasting a budget surplus of $1.6 billion for fiscal year
2000.
During the second half of 1999, assets in the Warburg Pincus New York Tax
Exempt Fund (the "Fund") ranged from a low of $151.0 million in early July to a
peak in mid-October of $254.3 million. Amid rising rates and Y2K-related
concerns, assets fell to $181.8 million at year-end. With a positively sloped
yield curve for much of the period, the Fund took advantage of these
opportunities and kept the average weighted maturity in the 50-60 day range. At
the same time, slightly over half the assets were invested in variable rate
demand notes to provide liquidity, particularly as year-end approached. The
Fund's seven-day effective yield was 3.61% on December 31, 1999.
The Fund continued 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 the 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 INCOME MAY BE SUBJECT TO STATE AND CITY TAXES OR THE FEDERAL
ALTERNATIVE MINIMUM TAX.
2
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
SCHEDULE OF INVESTMENTS--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT (2.2%)
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
------------
COMMERCIAL PAPER (47.4%)
ASSET BACKED SECURITIES (15.3%)
6,000,000 Emerald Certificates Program (A-1+, P-1) 01/20/00 6.300 5,980,050
20,000,000 Fairway Finance, Ltd. (A-1, P-1) 03/14/00 6.120 19,751,800
20,000,000 Moriarty LLC (A-1+, P-1) 01/18/00 6.100 19,942,389
25,000,000 Trident Capital Finance, Inc. (A-1+, P-1) 01/25/00 6.200 24,896,667
------------
70,570,906
------------
BANKS (10.7%)
30,000,000 ING Bank (A-1+, P-1) 03/01/00 5.880 29,706,000
20,000,000 UBS Finance, Inc. (A-1+, P-1) 01/04/00 5.000 19,991,667
------------
49,697,667
------------
COMMUNICATION EQUIPMENT (6.4%)
30,000,000 Alcatel Alsthom, Inc. (A-1, P-1) 03/08/00 5.780 29,677,283
------------
ELECTRIC & OTHER SERVICES (5.3%)
25,000,000 Allegheny Energy, Inc. (A-1, P-1) 03/10/00 5.780 24,723,042
------------
EQUIPMENT RENT & LEASE (5.4%)
25,000,000 HD Real Estate Funding Corp. (A-1+, P-1) 02/07/00 5.720 24,853,028
------------
MOTOR VEHICLES & CAR BODIES (4.3%)
20,000,000 BMW U.S. (A-1+, P-1) 01/04/00 5.000 19,991,667
------------
TOTAL COMMERCIAL PAPER 219,513,593
(Cost $219,513,593) ------------
VARIABLE RATE OBLIGATIONS (31.1%)
BANKS (17.0%)
20,000,000 Bayerische Hypo-Und Vereinsbank + (A-1+, P-1) 01/14/00 6.372 19,996,590
10,410,000 J P Morgan & Co., Inc.+ (A-1+, NR) 03/02/00 6.065 10,410,129
9,000,000 J P Morgan & Co., Inc.+ (A-1+, NR) 01/06/00 6.073 9,000,048
20,000,000 Key Bank, N.A.+ (A-1, P-1) 03/14/00 6.031 19,994,674
19,500,000 Wells Fargo & Co.+ (A-1, P-1) 03/30/00 6.063 19,495,231
------------
78,896,672
------------
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
VARIABLE RATE OBLIGATIONS (CONT'D)
PERSONAL CREDIT INSTITUTIONS (3.3%)
$15,000,000 American Honda Finance Corp.+ (A-1, P-1) 03/06/00 6.121 $ 15,000,874
------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS (4.3%)
20,000,000 General Electric Capital Corp.+ (A-1+, P-1) 01/12/00 6.126 20,000,000
------------
Telecommunications & Equipment (6.5%)
30,000,000 AT&T Corp.+ (A-1+, P-1) 01/13/00 6.133 29,993,622
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $143,891,168) 143,891,168
------------
TIME DEPOSITS (12.9%)
20,000,000 Amsouth Bank (A-1, P-1) 01/03/00 5.000 20,000,000
20,000,000 Bank of Montreal (A-1+, P-1) 01/03/00 4.500 20,000,000
20,000,000 Mercantile Bank, N.A. (A-1, P-1) 01/03/00 4.500 20,000,000
------------
TOTAL TIME DEPOSITS
(Cost $60,000,000) 60,000,000
------------
REPURCHASE AGREEMENTS (6.4%)
10,000,000 Repurchase Agreement with Lehman Brothers
Holdings, Inc. dated 12/31/99 at 3.000% to be
repurchased on 01/03/00 at $10,003,333.
(Collateralized by $10,053,000 in U.S. Treasury
Notes at rates ranging from 5.000% to 8.875%,
due from 02/15/00 to 05/15/05 with a market
value of $10,047,089.) 10,000,000
19,600,000 Repurchase Agreement with Morgan Stanley & Co.
dated 12/31/99 at 2.50% to be repurchased on
01/03/00 at $19,604,083. (Collateralized by $30,307, 000 U.S.
Treasury Principal Strip Note, due on 05/15/06 with a market value
of $20,041,383.) 19,600,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $29,600,000) 29,600,000
------------
TOTAL INVESTMENTS AT VALUE (100.0%)(Cost $463,004,761*) $463,004,761
============
</TABLE>
INVESTMENT ABBREVIATIONS
NR= Not Rated
- --------------------------------------------------------------------------------
= Credit ratings given by Moody's Investor's Service, Inc. and Standard & Poor's
Ratings Services are unaudited.
+ The interest rate shown is as of December 31, 1999 and the maturity date 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--DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
------------------ ------------ ----------------------------
(CUMULATIVE)
1-7 $138,600,000 29.8% 29.8%
8-14 80,000,000 17.2 47.0
15-30 51,000,000 11.0 58.0
31-60 25,000,000 5.4 63.4
61-90 169,910,000 36.6 100.0
91-120 0 0.0 100.0
121-150 0 0.0 100.0
Over 150 0 0.0 100.0
------------ ------
$464,510,000 100.0%
============ ======
Average Weighted Maturity -- 33.41 days
See Accompanying Notes to Financial Statements.
5
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (100.0%)
NEW YORK (99.9%)
$ 1,430,000 Auburn IDA Revenue Bond Series 1997
(Fat Tire, LLC Project)
(Key Corp. Bank N.A. LOC) VRDN+ (NR, NR) 01/07/00 5.700 $ 1,430,000
300,000 Babylon, New York IDA Resource
Recovery Series 1998 (Ogden Martin
Project) (Financial Service
Assurance LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.050 300,000
500,000 Board of Cooperative Education
Services For The Sole Supervisory
District of Broome, Delaware &
Tioga Counties RAN (NR, NR) 06/30/00 4.625 501,266
1,500,000 Board of Cooperative Education Services For
The Sole Supervisory District of Broome,
Delaware & Tioga Counties RAN (NR, NR) 06/30/00 4.000 1,503,579
1,252,000 Canajoharie NY Central School District
(Financial Service Assurance LOC) (NR, NR) 06/15/00 4.750 1,258,068
2,000,000 Centereach NY Middle Country Central
School District (NR, NR) 06/30/00 4.250 2,003,869
1,000,000 Chautauqua County IDA Series 1985
(The Red Wing Co., Inc.)
(Wachovia Bank of Georgia LOC) VRDN+ (NR, NR) 01/07/00 5.550 1,000,000
4,500,000 Clinton County, New York BAN (NR, NR) 07/28/00 4.000 4,511,162
1,000,000 Clinton County, New York BAN (NR, NR) 09/22/00 4.125 1,002,752
1,000,903 Geneva, New York BAN (MIG-1, NR) 06/01/00 3.625 1,001,346
1,540,000 Harrison, New York BAN (NR, NR) 10/05/00 4.125 1,544,786
2,155,000 Lancaster, IDA Revenue Bond
(1997 Jiffy-Tite Co., Inc. Project)
(Key Corp. Bank N.A. LOC) VRDN+ (NR, NR) 01/07/00 5.700 2,155,000
2,500,000 Long Island Power Authority NY
Electric System Revenue Bond
(MBIA Insurance LOC) VRDN+ (A-1+C, NR) 01/06/00 5.550 2,500,000
1,000,000 Long Island Power Authority NY
(Bayerische
Landesbank Girozentrale LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.500 1,000,000
2,695,000 Long Island Power Authority NY
Electric System Revenue Bond
(MBIA Insurance LOC) VRDN+ (A-1+, NR) 01/06/00 5.550 2,695,000
1,000,000 Manhasset Union Free School District,
Nassau County TAN (NR, NR) 06/29/00 4.000 1,002,610
2,500,000 Massapequa, New York Union Free School
District TAN (MIG-1, NR) 06/29/00 4.000 2,507,134
1,720,000 Monroe County, New York IDA (Windsor
Manufacturing Co. Inc. Project) 1999
(Key Corp. Bank N.A. LOC) VRDN+ (NR, NR) 01/06/00 5.700 1,720,000
2,000,000 Monroe County, New York IDA Revenue Bond
Series 1984 (Electronic Navigational
Industries Inc. Facilities) (NR, NR) 01/01/00 3.450 2,000,000
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) 01/07/00 5.250 1,535,000
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
NEW YORK (cont'd)
$ 1,000,000 Monroe County, New York IDA Series B
(JMT Properties) VRDN+ (NR, P-1) 01/07/00 5.550 $ 1,000,000
2,000,000 Nassau County IDA Civic Facility Refunding
& Improvement Revenue Bond (Cold Spring
Harbor Laboratory Project) (Morgan
Guaranty Trust LOC) VRDN+ (A-1+, NR) 01/01/00 4.750 2,000,000
4,445,000 Nassau Health Care Corp. (Merrill Lynch
LOC) VRDN+ (NR, NR) 01/07/00 5.550 4,445,000
1,000,000 New York City Eagle Tax Exempt (Escrowed
to Maturity in U.S. Treasuries) VRDN+ (NR, NR) 01/07/00 5.530 1,000,000
5,000,000 New York City General Obligation
(AMBAC Insurance LOC) (A-1+C, VMIG-1) 02/17/00 3.700 5,000,000
300,000 New York City General Obligation
(Mitsubishi Bank LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.450 300,000
2,800,000 New York City General Obligation Series
1994 H-3 (Financial Service
Assurance LOC) (A-1+C, VMIG) 01/31/00 3.350 2,800,000
2,800,000 New York City General Obligation Series
1994 H-3 (Financial Service
Assurance LOC) (A-1+C, VMIG) 02/10/00 3.350 2,800,000
5,500,000 New York City General Obligation
Series 1994 H-3 (Financial Service
Assurance LOC) (A-1+C, VMIG) 01/26/00 3.450 5,500,000
1,500,000 New York City General Obligation Series
1994 H-5 (Morgan Guaranty LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.400 1,500,000
2,500,000 New York City General Obligation Series
1996 J-3 (Morgan Guaranty Trust
LOC) VRDN+ (A-1+, VMIG-1) 01/05/00 5.750 2,500,000
2,500,000 New York City General Obligation
Series 1990 (Escrowed to Maturity in
U.S. Treasuries) (NR, NR) 03/15/00 7.500 2,521,042
1,200,000 New York City General Obligation Series
1992 D (FGIC Insurance LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.550 1,200,000
5,000,000 New York City General Obligation Series
1994 H-4 (AMBAC Insurance LOC) (A-1+C, VMIG) 01/28/00 3.400 5,000,000
1,500,000 New York City General Obligation Series
1994 H-5 (MBIA Insurance LOC) (A-1+, VMIG-1) 01/26/00 3.350 1,500,000
2,180,000 New York City General Obligation Series
1995 F-4 (Hessen LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.450 2,180,000
1,000,000 New York City General Obligation Series
1993 H-3 (Morgan Guaranty LOC) VRDN+ (NR, VMIG-1) 01/07/00 4.750 1,000,000
1,500,000 New York City Health & Hospital
Corporation (Bank of New York LOC) (A-1, VMIG-1) 02/01/00 3.750 1,500,000
1,180,000 New York City Health & Hospitals Health
System Revenue Bond Series 1997 C
(Toronto-Dominion Bank LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.400 1,180,000
3,800,000 New York City Housing Development Corp.
Mortgage Revenue Bond (West 89th Street)
Series A (Marine Midland LOC) VRDN+ (A-1, NR) 01/05/00 5.550 3,800,000
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
NEW YORK (cont'd)
$ 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) 01/07/00 5.200 $ 1,200,000
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) VRDN+ (NR, NR) 01/05/00 5.500 1,100,000
200,000 New York City Housing Development Corp.
Multi-Housing Revenue Bond Series 1997 A
(Columbus Green) (Federal National
MortgageAssociation LOC) VRDN+ (A-1+, NR) 01/07/00 5.500 200,000
1,100,000 New York City Housing Development Corp.
(Columbus Apartments Project) Series A
Federal National Mortgage Association
LOC) VRDN+ (A-1+, NR) 01/05/00 5.500 1,100,000
200,000 New York Local Government Assistance Corp.
Series 1994-B (Credit Suisse LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.400 200,000
3,655,000 New York State Dormitory Authority Revenue
Bond (NY University) VRDN+ (NR, VMIG-1) 02/10/00 4.000 3,655,000
1,000,000 New York State Dormitory Authority Revenue
Bond (Metropolitan Museum of Art)
Series 1993 B VRDN+ (A-1+, VMIG-1) 01/07/00 5.350 1,000,000
2,840,000 New York State Dormitory Authority Revenue
Bond (Beverwyck Inc.) (Banque Paribas
LOC) VRDN+ (A-1, VMIG-1) 01/07/00 5.250 2,840,000
1,000,000 New York State Dormitory Authority Revenue
Bond (Rockefeller University) VRDN+ (A-1+, VMIG-1) 01/07/00 5.350 1,000,000
3,500,000 New York State Dormitory Authority
Revenue Bond Series A (State University
Educational Facilities) (NR, NR) 05/15/00 7.700 3,623,339
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) 01/07/00 5.450 1,220,000
6,000,000 New York State Energy Research &
Development Authority New York State
Electric & Gas Series 1985 A (Morgan
Guaranty LOC) VRDN+ (A-1+, P-1) 03/15/00 3.000 6,000,000
600,000 New York State Energy Research &
Development Authority Pollution Control
Refunding Revenue Bond (New York State
Electric & Gas Corp. Project) Series
1994 D (Union Bank of Switzerland LOC)
VRDN+ (NR, VMIG-1) 01/01/00 4.650 600,000
1,800,000 New York State Energy Research &
Development Authority Pollution Control
Revenue Bond (New York State Electric
& Gas Corp.)(Morgan Guaranty LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 4.650 1,800,000
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
NEW YORK (cont'd)
$ 100,000 New York State Energy Research &
Development Authority Pollution Conrol
Revenue Bond (New York State Electric
& Gas Corp.) Series 1994 D-2 (NBD Bank
Corp. LOC) VRDN+ (A-1+, VMIG-1) 01/01/00 4.700 $ 100,000
1,100,000 New York State Environmental Quality
General Obligation Series 1997A
(Bayerische Landesbank Girozentrale LOC) (A-1+, VMIG) 01/26/00 3.350 1,100,000
2,290,000 New York State Housing Finance Agency
Series A(Mount Sinai School Of Medicine)
(Sanwa Bank LOC) VRDN+ (NR,VMIG-1) 01/07/00 4.750 2,290,000
2,200,000 New York State Housing Finance Agency
RevenueBond Series 1998 A (Fleet National
Bank,N.A. LOC) VRDN+ (NR, VMIG-1) 01/07/00 5.750 2,200,000
870,000 New York State Housing Finance Agency
Series 1991 (Normandie Court Project)
(Society General LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.200 870,000
3,700,000 New York State Housing Finance Authority
Revenue Bond (Tribeca Park Housing
Authority)Series A (Bayerische Landesbank
Girozentrale LOC) VRDN+ (NR, VMIG-1) 01/07/00 5.600 3,700,000
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) 01/30/00 3.900 1,930,000
605,000 New York State Job Development Authority
Special Purpose Bond Series C
(Sumitomo Bank LOC) VRDN+ (A-1+, VMIG-1) 01/30/00 3.750 605,000
15,500,000 New York State Power Authority
(Bank of Nova Scotia LOC) (A-1, P-1) 01/20/00 3.700 15,500,000
4,300,000 New York State Power Authority
(Bank of Nova Scotia LOC) (A-1, P-1) 03/09/00 3.750 4,300,000
6,100,000 New York State Power Authority (Multiple
Credit Enhancements) (A-1,P-1) 03/13/00 3.700 6,100,000
2,000,000 New York State Power Authority VRDN+ (NR, VMIG-1) 03/01/00 3.550 2,000,000
460,000 New York State Power Authority Adjustable
Tender Notes (NR, VMIG-1) 03/01/00 3.550 460,000
3,000,000 Oneonta, City of, City School District
Otsego County, New York RAN (NR, NR) 06/16/00 3.625 3,002,973
1,440,000 Onondaga County IDA Revenue Bond Series 1998
(Plainville Turkey Farm, Inc. Project)
(Key Corp.Bank, N.A. LOC) VRDN+ (NR,NR) 01/07/00 5.700 1,440,000
4,000,000 Oswego, County of, IDA Revenue Bond
(Crysteel Manufacturing, Inc. Project)
(Key Corp. Bank, N.A. LOC) VRDN+ (NR,NR) 01/07/00 5.700 4,000,000
2,000,000 Port Authority of New York & New Jersey
Versatile Structure Obligations VRDN+ (A-1+, VMIG-1) 01/01/00 4.900 2,000,000
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS (CONT'D)--DECEMBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS=
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
NEW YORK (cont'd)
$5,240,000 Rensselaer County, New York Series A BAN (NR, NR) 08/02/00 4.000 $ 5,253,303
2,000,000 Rochester, New York (AAA, AAA) 10/01/00 5.000 2,017,410
1,416,800 South Colonie, New York Central School
District (NR, NR) 09/22/00 4.125 1,420,698
1,000,000 Southwestern Central School District,
New York (NR, NR) 12/08/00 4.250 1,002,236
1,000,000 St. Lawrence County IDA Environmental
Facilities Revenue Bond Series 1998 A
(Aluminum Co. of America Project) VRDN+ (A-1, NR) 01/07/00 4.760 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) 01/07/00 5.400 1,600,000
1,200,000 Suffolk County Water Authority BAN (Bank
of Nova Scotia LOC) VRDN+ (NR, VMIG-1) 01/07/00 5.150 1,200,000
1,500,000 Town of Babylon IDA Series 1994
(J. D'addario & Co., Inc. Project)
(National Westminster LOC) VRDN+ (NR,VMIG-1) 01/07/00 5.600 1,500,000
1,500,000 Triborough Bridge & Tunnel Authority NY
(Westdeutsche Landesbank Gironzentrale
LOC) VRDN+ (A-1+, VMIG-1) 01/07/00 5.400 1,500,000
2,200,000 Ulster County IDA Revenue Bond Series
1998 A (Viking Industries, Inc. Project)
(Key Corp. Bank, N.A. LOC) VRDN+ (NR,NR) 01/07/00 5.700 2,200,000
1,250,000 Williston Park Village BAN (NR, MIG-1) 03/10/00 3.400 1,250,685
------------
TOTAL NEW YORK (Cost $178,978,258) $178,978,258
------------
PUERTO RICO (0.1%)
195,000 Puerto Rico Industrial, Tourist, Education,
Medical, and Environmental Control Finance
Authority Revenue Bond Series 1998 (Ana G.
Mendez University System Project) (Banco de
Santander LOC) VRDN+ (Cost $195,000) (NR, NR) 01/07/00 4.750 195,000
------------
TOTAL MUNICIPAL BONDS (Cost $179,173,258) 179,173,258
------------
TOTAL INVESTMENTS AT VALUE 100.0% (Cost $179,173,258) $179,173,258
============
</TABLE>
INVESTMENT ABBREVIATIONS
BAN = Bond Anticipation Note
IDA = Industrial Development Agency
LOC = Letter of Credit
NR = Not Rated
RAN = Revenue Anticipation Note
TAN = Tax Anticipation Note
VRDN = Variable Rate Demand Note
- --------------------------------------------------------------------------------
= Credit ratings given by Moody's Investor's Service, Inc. and Standard & Poor's
Ratings Services are unaudited.
+ The interest rate shown is as of December 31, 1999 and the maturity date is
the longer of the next interest readjustment date or the date the principal
amount 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--DECEMBER 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
MATURITY SCHEDULE
(DAYS) PAR PERCENTAGE OF PORTFOLIO
------------------ ------------ ----------------------------
(CUMULATIVE)
1-7 $ 76,495,000 42.7% 42.7%
8-14 0 0.0 42.7
15-30 31,135,000 17.4 60.1
31-60 15,755,000 8.8 68.9
61-90 22,610,000 12.6 81.5
91-120 0 0.0 81.5
121-150 3,500,000 2.0 83.5
Over 150 29,449,703 16.5 100.0
------------ -----
$178,944,703 100.0%
============ =====
Average Weighted Maturity -- 57.30 days
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $463,004,761) $463,004,761
Receivable for fund shares sold 2,744,163
Interest receivable 1,445,192
Cash 34,773
Prepaid insurance 137
------------
TOTAL ASSETS 467,229,026
------------
LIABILITIES
Payable for fund shares redeemed 1,972,503
Dividend payable 959,021
Accrued expenses payable 186,215
Investment advisory fee payable 96,987
Administration services fee payable 43,345
------------
TOTAL LIABILITIES 3,258,071
------------
$463,970,955
============
NET ASSETS
Net assets consist of:
Capital contributed, net 464,114,652
Accumulated net realized loss from
security transactions (143,697)
------------
$463,970,955
============
NET ASSET VALUE, offering price and redemption
price per share ($463,970,955 (DIVIDE) 464,115,269
shares of $0.001 par value capital stock outstanding) $1.00
=====
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
- --------------------------------------------------------------------------------
ASSETS
Investments at value (Cost $179,173,258) $179,173,258
Receivable for fund shares sold 1,531,707
Interest receivable 1,447,695
Cash 62,614
Prepaid insurance 137
------------
TOTAL ASSETS 182,215,411
------------
LIABILITIES
Dividend payable 242,473
Accrued expenses payable 70,281
Investment advisory fee payable 34,732
Administration services fee payable 17,229
Payable for fund shares redeemed 8,891
Other liabilities 112
------------
TOTAL LIABILITIES 373,718
------------
$181,841,693
============
NET ASSETS
Net assets consist of:
Capital contributed, net 181,845,970
Accumulated net realized loss from
security transactions (4,277)
------------
$181,841,693
============
NET ASSET VALUE, offering price and redemption price
per share ($181,841,693 (DIVIDE) 181,854,812 shares
of $0.001 par value capital stock outstanding) $1.00
=====
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1999
- --------------------------------------------------------------------------------
CASH RESERVE NEW YORK
FUND TAX EXEMPT FUND
------------ ---------------
INTEREST INCOME: $ 27,322,675 $ 6,289,255
------------ -----------
EXPENSES:
Sub-investment advisory and administration 1,834,975 684,601
Investment advisory 1,310,320 486,328
Transfer agent 147,472 36,963
Custodian 83,025 28,445
Legal 40,188 23,270
Printing 39,214 21,423
Directors 24,027 24,080
Audit 21,352 17,303
Miscellaneous 9,916 4,186
Blue sky 60,943 9,598
Registration 6,696 1,426
Insurance 4,773 2,605
------------ -----------
3,582,901 1,340,228
------------ -----------
Less: fees waived, expenses reimbursed
and transfer agent fee offsets (700,196) (270,306)
------------ -----------
Total expenses 2,882,705 1,069,922
------------ -----------
Net investment income 24,439,970 5,219,333
------------ -----------
NET REALIZED GAIN FROM INVESTMENTS
Net realized gain from security transactions 4,557 0
------------ -----------
Net increase in net assets resulting
from operations $ 24,444,527 $ 5,219,333
============ ===========
See Accompanying Notes to Financial Statements.
14
<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 FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
--------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 24,439,970 $ 25,975,339 $ 5,219,333 $ 4,511,197
Net realized gain (loss)
from security transactions 4,557 (128,038) 0 0
--------------- --------------- ------------- -------------
Net increase in net assets
resulting from operations 24,444,527 25,847,301 5,219,333 4,511,197
--------------- --------------- ------------- -------------
FROM DIVIDENDS:
Dividends from net
investment income (24,439,970) (25,975,339) (5,219,333) (4,511,197)
--------------- --------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS :
Proceeds from sale of shares 4,531,226,098 2,813,181,462 457,504,060 430,856,437
Reinvested dividends 14,989,322 17,073,030 3,045,502 2,192,770
Net asset value of shares redeemed (4,512,227,004) (2,872,823,033) (453,451,052) (409,478,827)
--------------- --------------- ------------- -------------
Net increase (decrease) in net
assets from capital share
transactions 33,988,416 (42,568,541) 7,098,510 23,570,380
--------------- --------------- ------------- -------------
Net increase (decrease) in
net assets 33,992,973 (42,696,579) 7,098,510 23,570,380
NET ASSETS:
Beginning of year 429,977,982 472,674,561 174,743,183 151,172,803
--------------- --------------- ------------- -------------
End of year $ 463,970,955 $ 429,977,982 $ 181,841,693 $ 174,743,183
=============== =============== ============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS CASH RESERVE FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31, FOR THE TEN FOR THE YEAR ENDED FEBRUARY 28 OR 29,
----------------------- MONTHS ENDED -------------------------------------
1999 1998 DECEMBER 31, 1997 1997 1996 1995
-------- ---------- ----------------- -------- -------- --------
<S> <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
------ -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.0464 0.0499 0.0428 0.0492 0.0543 0.0426
------ -------- -------- -------- -------- --------
DIVIDENDS:
Dividends from net
investment income (0.0464) (0.0499) (0.0428) (0.0492) (0.0543) (0.0426)
------ -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total return 4.74% 5.12% 4.28% 3 5.03% 5.57% 4.35%
RATIOS AND
SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $463,971 $429,978 $472,675 $416,735 $383,607 $403,211
Ratio of expenses to
average net assets .56% 1 .56% 1 .55% 1,2 .55% 1 .56% 1 .55%
Ratio of net income to
average net assets 4.66% 5.00% 5.11% 2 4.93% 5.43% 4.41%
Decrease reflected in
above operating expense
ratios due to waivers/
reimbursements .12% .12% .12% 2 .14% .16% .19%
</TABLE>
- --------------------------------------------------------------------------------
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 .01%, .01%, .00%, .00% and .01% for the year
ended December 31, 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%, for each of the years ended December 31, 1999 and
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.
See Accompanying Notes to Financial Statements.
16-17
<PAGE>
WARBURG PINCUS NEW YORK TAX EXEMPT FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31, FOR THE TEN FOR THE YEAR ENDED FEBRUARY 28 OR 29,
----------------------- MONTHS ENDED -------------------------------------
1999 1998 DECEMBER 31, 1997 1997 1996 1995
-------- --------- ----------------- -------- -------- --------
<S> <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
-------- --------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.0267 0.0287 0.0261 0.0288 0.0326 0.0246
-------- --------- -------- -------- -------- --------
DIVIDENDS:
Dividends from net
investment income (0.0267) (0.0287) (0.0261) (0.0288) (0.0326) (0.0246)
-------- --------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ========= ======== ======== ======== ========
Total return 2.70% 2.92% 2.64% 3 2.92% 3.31% 2.48%
RATIOS AND
SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $181,842 $174,743 $151,173 $124,191 $ 96,584 $ 77,111
Ratio of expenses to
average net assets .56% 1 .55% 1 .55% 1,2 .55% 1 .56% 1 .55%
Ratio of net income to
average net assets 2.68% 2.86% 3.12% 2 2.88% 3.24% 2.46%
Decrease reflected in above
operating ratios due to
waivers/reimbursements .13% .14% .12% 2 .17% .27% .27%
</TABLE>
- --------------------------------------------------------------------------------
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 .01%, .00%, .00%, .00% and .01% for the year
ended December 31, 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%, for each of the years ended December 31, 1999 and
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.
See Accompanying Notes to Financial Statements.
18-19
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Cash Reserve Fund ("Cash Reserve") and Warburg Pincus New
York Tax Exempt Fund ("New York Tax Exempt") 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: Cash Reserve is designed
to provide investors with high current income consistent with liquidity and
stability of principal; New York Tax Exempt 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 New York
Tax Exempt 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 Cash Reserve 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)
December 31, 1999
- --------------------------------------------------------------------------------
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 year ended December 31, 1999, each Fund received
credits or reimbursements under this arrangement as follows:
FUND AMOUNT
---- -------
Cash Reserve $54,213
New York Tax Exempt 21,136
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR
On July 6, 1999, CSAM became each Fund's investment advisor as a result of
the acquisition of Warburg Pincus Asset Management, Inc. ("Warburg Pincus") by
Credit Suisse Group ("Credit Suisse") and the combination of Warburg Pincus 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 year ended December 31, 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)
December 31, 1999
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER AND SUB-ADVISER, CO-ADMINISTRATORS AND
DISTRIBUTOR -- (CONT'D)
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ --------- --------------
Cash Reserve $1,310,320 $(258,393) $1,051,927
New York Tax Exempt 486,328 (99,668) 386,660
BlackRock Institutional Management Corporation ("BIMC") a majority-owned
subsidiary of PNC Bank, Corp., 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 year ended Decmber 31, 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 $1,310,847 $(387,590) $923,257
New York Tax Exempt 490,070 (149,502) 340,568
Counsellors Funds Service, Inc. ("CFSI"), a wholly-owned subsidiary of CSAM
LLC served as co-administrator of each Fund until November 1, 1999. On November
1, 1999, Credit Suisse Asset Management Securities, Inc. ("CSAMSI") replaced
CFSI as co-administrator to each Fund. For its administrative services, CSAMSI
receives a fee calculated at an annual rate of .10% of each Fund's average daily
net assets.
For the period January 1, 1999 through October 31, 1999, co-administrative
services fees earned by CFSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Cash Reserve $436,419
New York Tax Exempt 158,034
For the period November 1, 1999 through December 31, 1999, co-administrative
service fees earned by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Cash Reserve $87,709
New York Tax Exempt 36,497
22
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
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 Class shares. Neither Fund currently offers Advisor Class
shares.
Transactions in shares of each Fund were as follows:
CASH RESERVE NEW YORK TAX EXEMPT
---------------------------- --------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
------------- ------------- ------------ ------------
Shares Sold 4,531,226,098 2,813,181,431 457,504,060 430,856,437
Shares issued to
shareholders
on reinvestment
of dividends 14,989,322 17,073,030 3,045,502 2,192,770
Shares Redeemed (4,512,227,004)(2,872,823,033) (453,451,052) (409,478,828)
---------------------------- --------------------------
Net increase
(decrease) in
shares outstanding 33,988,416 (42,568,572) 7,098,510 23,570,379
============================ ==========================
4. NET ASSETS
At December 31, 1999, capital contributions and accumulated net realized loss
from security transactions have been adjusted for permanent book/tax
differences. The Cash Reserve Fund transferred $436 of expired capital loss
carryover from accumulated net realized loss from security transactions to
capital contribution.
5. CAPITAL LOSS CARRYOVER
For the year ended DECEMBER 31, 1999 Cash Reserve and New York Tax Exempt
have capital loss carryovers of $143,697 and $188, respectively, to offset
possible future capital gains of each Fund. These carryovers expire as follows:
YEAR AMOUNT
---- --------
Cash Reserve 2005 $ 15,659
2006 128,038
New York Tax Exempt 2000 4,089
2002 188
23
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
WARBURG, PINCUS CASH RESERVE FUND, INC. AND
WARBURG, PINCUS NEW YORK TAX EXEMPT FUND, INC.:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Warburg, Pincus Cash Reserve Fund,
Inc. and Warburg, Pincus New York Tax Exempt Fund, Inc. (the "Funds") at
December 31, 1999, and the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for each of the years (or
periods) presented, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1999 by
correspondence with the custodians and brokers, provide a reasonable basis for
the opinion expressed above.
PRICEWATERHOUSECOOPERS LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 4, 2000
24
<PAGE>
WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS
December 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
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.
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
CASH RESERVE SHARES OUTSTANDING SHARES SHARES VOTED
------------- ------ -------------------- --------------------
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 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%
2. To elect Directors of each fund.
CASH RESERVE 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 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
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WARBURG PINCUS CASH RESERVE AND NEW YORK TAX EXEMPT FUNDS
RESULTS OF SPECIAL MEETING OF SHAREHOLDERS (CONT'D)
December 31, 1999
- --------------------------------------------------------------------------------
3. To ratify the selection of PricewaterhouseCoopers LLP as the independent
accountants for each fund.
% OF SHARES TO TOTAL % OF SHARES TO TOTAL
CASH RESERVE SHARES OUTSTANDING SHARES SHARES VOTED
------------- ------ -------------------- --------------------
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%
NEW YORK % OF SHARES TO TOTAL % OF SHARES TO TOTAL
TAX EXEMPT 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%
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[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (TM) WWW.WARBURG.COM
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPMMF-2-1299
