<PAGE>
[Logo]
SEMIANNUAL
REPORT
APRIL 30, 1995
[ ] WARBURG PINCUS FIXED INCOME FUND
[ ] WARBURG PINCUS GLOBAL FIXED INCOME FUND
[ ] WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
[ ] WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
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WARBURG PINCUS FIXED INCOME FUND
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June 15, 1995
Dear Shareholder:
The objective of Warburg Pincus Fixed Income Fund (the 'Fund') is high
current income consistent with reasonable risk. Capital appreciation is a
secondary objective. The Fund invests in a broadly diversified portfolio of
securities, including both corporate and U.S. government issues.
For the six months ended April 30, 1995, the Fund had a return of 3.87%,
vs. a return of 5.56% in the Lehman Brothers Intermediate Government/Corporate
Bond Index. For the trailing 12 months, the Fund gained 5.30%, compared with a
gain of 6.51% in its benchmark index. The Fund's 30-day annualized current yield
was 7.62% at April's close. Its net assets stood at $113,902,141.
Over the past several months, the Fund has benefited from a favorable
interest-rate environment, one that has seen rates fall sharply across the
intermediate and long sections of the yield curve. This has had a commensurate
impact on prices of bonds held in the portfolio, reflected in the Fund's total
return.
Regarding portfolio composition, the Fund is currently weighted most
heavily in U.S. government and agency securities, which combined accounted for
62% of the Fund's net assets through April. We also have a fairly sizable
position in mortgage-backed securities (19%), which we believe are attractively
valued at their current levels. One sector we've underweighted is corporate
bonds, which we think are relatively expensive compared with Treasuries and
agency issues.
In terms of credit quality, our primary emphasis is on high-rated issues.
As of April 30, 77% of the portfolio was invested in AAA-rated bonds, 7% in AA-
and A-rated issues, 4% in BBB-rated issues and 12% in higher-yielding or
nonrated bonds.
<TABLE>
<S> <C>
Dale C. Christensen M. Anthony E. van Daalen
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
1
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WARBURG PINCUS GLOBAL FIXED INCOME FUND
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June 15, 1995
Dear Shareholder:
The objective of Warburg Pincus Global Fixed Income Fund (the 'Fund') is
maximum total return -- consistent with prudent management -- through a
combination of interest income, currency gains and capital appreciation. The
Fund's holdings mainly include a wide range of investment-grade,
income-producing securities of governmental and corporate issuers.
For the six months ended April 30, 1995, the Fund had a gain of 0.88%,
compared with a return of 10.88% in the J.P. Morgan Global Government Bond Index
and a return of 3.78% in the Lipper General World Income Fund Average. For the
trailing 12 months, the Fund gained 0.89%, vs. gains of 14.26% and 5.78% in the
respective J.P. Morgan and Lipper benchmarks. The Fund's 30-day annualized
current yield was 9.82% as of April 30. Its total net assets stood at
$79,650,530.
Contributing to the Fund's recent underperformance relative to its
benchmarks were its Latin American holdings (7% of the portfolio through April),
which consisted of Mexican and Argentine debt issues. These bonds fell sharply
following the December 20, 1994, devaluation of the Mexican peso, and the Fund's
returns suffered proportionately. The Mexican and Argentine markets are now
recovering, and we expect significantly improved performance from them going
forward.
Currently, the Fund is positioned somewhat defensively with regard to its
duration, which stood at 4.0 years (3.3 years including futures hedging) on
April 30. Our longest duration exposure is in Europe and Australia, and we have
recently increased our duration in these markets, reflecting our bullishness on
their near-term prospects.
We have also taken a defensive stance in terms of currency exposure, and
through April, 91% of the Fund's net assets were either U.S. dollar-denominated
(46%) or hedged into dollars (45%). The Fund's only significant non-dollar
exposure is in Australia. This heavy dollar bias proved less than timely over
the last few months, given the U.S. currency's general weakness against most
foreign (particularly European) currencies. We believe, however, that this
strategy will prove its merits when the dollar rebounds.
<TABLE>
<S> <C>
Dale C. Christensen Laxmi C. Bhandari
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
2
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WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
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June 15, 1995
Dear Shareholder:
The objective of Warburg Pincus Intermediate Maturity Government Fund (the
'Fund') is a high level of current income consistent with capital preservation.
The Fund invests primarily in high-quality U.S. government bonds with very low
credit risk and an average maturity of between three and 10 years.
For the six months ended April 30, 1995, the Fund gained 4.69%, vs. a gain
of 5.23% in the Lehman Brothers Intermediate Government Bond Index. For the
trailing 12 months, the Fund gained 5.35%, compared with a 6.16% gain in the
benchmark Lehman Brothers Index. The Fund's 30-day annualized current yield as
of April 30 was 6.33%. Its total net assets stood at $51,428,083.
Interest rates have fallen sharply among intermediate-term bonds over the
last several months, pushing up the prices of securities held in the portfolio
proportionately. We will continue to emphasize intermediate-term issues over
longer-term issues within our stated maturity range until we believe longer-term
bonds offer a significant yield advantage relative to their intermediate-term
counterparts.
Regarding sector weightings, we've concentrated the bulk of the Fund's
assets in U.S. government and agency securities (78% of the portfolio through
April), principally Treasuries and Treasury strips, which we believe represent
the best value given the current market environment. The remainder of the Fund's
assets are in mortgage-backed securities (19% of the portfolio through April)
and short-term assets (3%).
<TABLE>
<S> <C>
Dale C. Christensen M. Anthony E. van Daalen
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
3
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WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
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June 15, 1995
Dear Shareholder:
The objective of Warburg Pincus New York Intermediate Municipal Fund (the
'Fund') is maximum current income -- free from federal, New York State and New
York City taxes -- consistent with capital preservation and prudent management.
The Fund's assets consist primarily of investment-grade municipal securities
with an average maturity of between three and 10 years.
For the six months ended April 30, 1995, the Fund gained 3.98%, vs. a 5.03%
increase in the Lipper New York Intermediate Municipal Debt Funds Average. For
the trailing 12 months, the Fund gained 5.10%, vs. a 4.95% rise in the Lipper
benchmark. The Fund's 30-day annualized current yield was 4.04% at the close of
April. Its total net assets stood at $82,105,444.
The portfolio's average maturity and duration were 4.0 and 3.2 years,
respectively, at the end of the reporting period. This reflects our somewhat
cautious view on the market during the past several months, as well as our goal
of maintaining low price volatility while providing a high level of triple-tax-
free income.
Over the past several months, we have been able to improve the Fund's
overall credit quality. As yields declined, the interest-rate spread between
low- and high-grade bonds contracted. As a result, we were able to sell slightly
lower quality bonds and replace them with prerefunded Aaa bonds (backed by U.S.
Treasuries), obtaining higher-rated bonds without giving up substantial yield.
At the end of April, 88% of the portfolio was rated Aaa.
New issuance of New York municipal bonds was fairly low during the first
few months of 1995, but we expect this to change following passage of the New
York State budget. The increased supply of new issues should give us an
opportunity to modestly extend the Fund's average maturity to lock in attractive
triple-tax-exempt yields in anticipation of the reinvestment of record proceeds
from bonds maturing in the third calendar quarter of 1995.
<TABLE>
<S> <C>
Dale C. Christensen Sharon B. Parente
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
4
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WARBURG PINCUS FIXED INCOME FUND
STATEMENT OF NET ASSETS
April 30, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ----------- ------------------------------------------------------ ------------- --------- ------ ------------
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS (13.9%)
$ 1,500,000 Benedek Broadcast Corp. [Callable 03/01/00 @ $105.938] (B2/NR) 03/01/05 11.875% $ 1,522,500
1,500,000 Continental Homes Holdings Corp. (B1/B) 08/01/97 12.000 1,413,750
2,400,000 El Puerto de Liverpool Debenture (Euro) (NR/NR) 10/19/96 7.250 2,040,000
2,500,000 Figgie International, Inc. of Delaware Senior Note (Ba3/BB+) 10/01/99 9.875 2,356,250
2,000,000 Mediq, Inc. Subordinated Debenture [Callable 07/15/96
@ $105] (Convertible) (B3/CCC+) 07/15/03 7.500 1,600,000
1,500,000 NTS Steel Group Convertible Bond (Euro) [Callable
12/16/96 @ $100] (NR/NR) 12/16/08 4.000 832,500
2,500,000 PT Inti Indorayon Utama Senior Subordinated Note
[Callable 10/15/98 @ $101.52] (Nr/BB) 10/15/00 9.125 2,146,875
1,500,000 Peregrine Investment Holdings Convertible Bond (Euro)
[Callable 02/02/97 @ $100] (NR/NR) 12/01/00 4.500 1,087,500
1,000,000 Pueblo Xtra International, Inc. Senior Subordinated
Note [Callable 08/01/98 @ $104.75] (B2/B-) 08/01/03 9.500 907,500
1,000,000 Republic of South Africa (Euro) (Baa3/BB) 12/15/99 9.625 973,750
2,000,000 Seventh Mexican Acceptance Bond (Euro) (NR/NR) 08/15/99 10.000 951,250
------------
TOTAL CORPORATE BONDS (Cost $17,772,848) 15,831,875
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MORTGAGE-BACKED SECURITIES (19.4%)
752,438 Bankers Trust Company Multi-Class Pass Through CTSF
Series 1988-1 Class D (Aaa/AAA) 04/01/18 8.625 773,416
347,012 Donaldson, Lufkin, & Jenrette Acceptance Trust Series
1989-1 Class F (Aaa/AAA) 08/01/19 11.000 362,938
3,900,000 Federal Home Loan Bank Multi-Coupon [Callable 07/27/95
@ $100] (Aaa/AAA) 07/27/00 4.550 3,625,167
419,436 Federal Home Loan Mortgage Corp. Pool #220014 (Aaa/AAA) 10/01/01 8.750 423,229
358,673 Federal Home Loan Mortgage Corp. Pool #252400 (Aaa/AAA) 09/01/12 8.750 364,949
230,716 Federal Home Loan Mortgage Corp. Series 1043 Class E (Aaa/AAA) 02/15/01 9.000 230,366
4,524,379 Federal National Mortgage Association Discount Note
Seven-Year Pool #19019 (Aaa/AAA) 11/01/00 6.000 4,349,584
307,651 Goldman Sachs Trust 2 Series F Class 3 (Aaa/AAA) 10/15/18 9.250 319,595
315,651 Guaranteed Mortgage Corp. Series M Class M1 (Aaa/AAA) 04/01/03 8.500 321,528
2,000,000 Nomura Asset Capital Corp. Series 1993-M1 Class A1 (Aaa/AAA) 11/25/03 7.640 1,969,688
2,388,120 Nomura Asset Securities Corp. Series 1994-4B Class 4A (Aaa/AAA) 09/25/24 8.300 2,394,090
4,000,000 Resolution Trust Corp. 94-C1 Class B (Aa/AA+) 06/25/26 8.000 3,965,000
1,000,000 Security Pacific Home Equity ABS Series 1991 Class B (Aaa/NR) 05/15/98 8.850 1,028,100
2,000,000 Shurgard CMO Asset Backed Pass Through Certificates
Series 1 Class 1 (NR/AA) 06/15/01 8.240 2,020,311
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TOTAL MORTGAGE-BACKED SECURITIES (Cost $22,039,056) 22,147,961
------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
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WARBURG PINCUS FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1995 (Unaudited)
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<TABLE>
<CAPTION>
PAR SECURITY DESCRIPTION MATURITY RATE VALUE
- ----------- ------------------------------------------------------ --------- ------ ------------
<S> <C> <C> <C> <C> <C>
UNITED STATES TREASURY OBLIGATIONS (60.5%)
$ 2,600,000 U.S. Treasury Note 02/15/96 7.875% $ 2,631,642
24,175,000 U.S. Treasury Note 05/15/97 8.500 25,032,004
16,000,000 U.S. Treasury Note 04/15/99 7.000 16,114,078
15,000,000 U.S. Treasury Note 07/15/98 8.250 15,631,949
9,000,000 U.S. Treasury Note 05/15/01 8.000 9,471,598
------------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $68,492,576) 68,881,271
------------
AGENCY OBLIGATIONS (1.5%)
1,735,121 Small Business Administration Guaranteed Development
Participation Certificate Debenture Series 1992-20D
(Cost $1,735,121) 04/01/12 8.200 1,735,121
------------
PREFERRED STOCK (1.9%)
40,000 Banesto Holdings Limited 10.500 1,065,000
50,000 Credit Lyonnaise Capital SCA ADR # 9.500 1,056,250
------------
TOTAL PREFERRED STOCK (Cost $2,167,790) 2,121,250
------------
SHORT-TERM INVESTMENTS (0.6%)
625,000 Repurchase agreement with State Street Bank & Trust
Co. dated 04/28/95 at 5.87% to be repurchased at
$625,306 on 05/01/95. (Collateralized by $635,000 U.S.
Treasury Note 6.25%, due 08/31/96, with a market value
of $639,763.) (Cost $625,000) 05/01/95 5.870 625,000
------------
TOTAL INVESTMENTS AT VALUE (97.8%)(Cost $112,832,391*) 111,342,478
OTHER ASSETS IN EXCESS OF LIABILITIES (2.2%) 2,559,663
------------
NET ASSETS (100.0%) (applicable to 11,843,757 shares) $113,902,141
------------
------------
NET ASSET VALUE, offering and redemption price per share ($113,902,141[div]11,843,757) $9.62
------
------
</TABLE>
# Restricted security.
* Cost for Federal income tax purposes is $113,163,468.
See Accompanying Notes to Financial Statements.
6
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WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS
April 30, 1995 (Unaudited)
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<TABLE>
<CAPTION>
RATINGS
PAR+ SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ------------ --------------------------------------------------- ------------- --------- ------ -----------
<S> <C> <C> <C> <C> <C>
BONDS (84.4%)
Argentina (2.1%)
2,000,000 (A) Bridas Sapic (B1/BB-) 11/15/99 12.500% $ 1,765,000
-----------
Australia (6.0%)
6,500,000 Australian Government (NR/AAA) 07/15/05 7.500 4,064,937
1,000,000 State Electric Commission -- Victoria (Aa3/NR) 09/18/03 9.250 688,302
-----------
4,753,239
-----------
Austria (2.0%)
15,000,000 Republic of Austria (Aaa/AAA) 06/15/98 6.500 1,556,550
-----------
Cayman Islands (4.1%)
4,500,000 (A) PIV Investment Financial (Callable 02/02/97 at
$100) (NR/NR) 12/01/00 4.500 3,228,750
-----------
Denmark (12.0%)
25,000,000 Kingdom of Denmark (Aa1/AAA) 11/15/98 9.000 4,756,682
780,000 (B) Kingdom of Denmark Mortgage-Backed (Zero Coupon) (Aa1/AA-) 05/30/96 -- 961,959
20,328,000 Nykredit (NR/NR) 10/01/22 11.000 3,850,142
-----------
9,568,783
-----------
France (0.4%)
2,036,300 Euro Disney SCA (Convertible)
(Matures at 110.00 Frf) (NR/NR) 10/01/01 6.750 334,868
-----------
Germany (12.6%)
5,000,000 Land Hessen
(Putable 11/29/03 at 100.00 Dmk) (NR/NR) 11/29/13 6.000 3,349,975
9,500,000 Treuhandanstalt (Aaa/AAA) 07/09/03 6.625 6,712,069
-----------
10,062,044
-----------
Hong Kong (2.4%)
2,500,000 (A) Lai Fung Overseas Finance Ltd. (Convertible) (NR/NR) 01/05/98 5.500 1,887,500
-----------
Indonesia (2.7%)
2,500,000 (A) PT Inti Indorayan Utama
(Callable 10/15/98 at $101.52) (NR/BB) 10/15/00 9.125 2,146,875
-----------
Ireland (6.0%)
3,500,000 Ireland Treasury (Aa2/AA-) 10/18/04 6.250 4,791,128
-----------
Mexico (4.8%)
2,000,000 (A) El Puerto de Liverpool (NR/NR) 10/19/96 7.250 1,700,000
2,420,000 (A) Grupo Simec (NR/NR) 12/15/98 8.875 1,151,012
2,000,000 (A) Seventh Mexican Acceptance Corp. (NR/NR) 08/15/99 10.000 951,250
-----------
3,802,262
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
7
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WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR+ SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ------------ --------------------------------------------------- ------------- --------- ------ -----------
<S> <C> <C> <C> <C> <C>
BONDS (CONT'D)
South Africa (5.0%)
2,000,000 (A) Electricity Supply Commission (Baa3/BB) 06/06/96 10.250% $ 2,010,000
2,000,000 (A) Republic of South Africa (Baa3/BB) 12/15/99 9.625 1,947,500
-----------
3,957,500
-----------
Spain (6.6%)
350,000,000 Telefonica de Espana (Zero Coupon)
(Matures at 295.74 Esp) (NR/NR) 04/15/99 -- 5,220,513
-----------
Taiwan (1.3%)
1,000,000 (A) Sincere Navigation Corp. (Convertible) (Callable
05/26/98 at $103.00; Putable 05/26/98 at $119.74) (NR/NR) 05/26/03 3.750 1,040,000
-----------
Thailand (1.0%)
1,500,000 (A) NTS Steel Group (Callable 12/16/96 at $100.00;
Putable 12/16/03 at $150.00) (NR/NR) 12/16/08 4.000 832,500
-----------
United Kingdom (6.1%)
1,000,000 Elf Enterprise Finance PLC (Convertible) (Callable
06/27/96 at 100 GBP) (Aa3/AA-) 06/27/06 8.750 1,568,287
2,000,000 United Kingdom Gilts (Aaa/NR) 03/03/00 9.000 3,307,478
-----------
4,875,765
-----------
United States (9.3%)
2,000,000 U.S. Treasury Bill (Zero Coupon) (Aaa/AAA) 07/27/95 -- 1,971,530
5,500,000 U.S. Treasury Note (Aaa/AAA) 06/30/96 6.000 5,474,480
-----------
7,446,010
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TOTAL BONDS (Cost $68,216,650) 67,269,287
-----------
PREFERRED STOCK (7.4%)
SHARES
France (1.4%)
50,000 (A) Credit Lyonnais Capital SCA ADR # 9.500 1,056,250
-----------
Luxembourg (3.2%)
100,000 (A) Indosuez Holdings SCA ADR # 10.375 2,537,500
-----------
United States (2.8%)
85,000 (A) Banesto Holdings # 10.500 2,263,125
-----------
TOTAL PREFERRED STOCK (Cost $5,746,050) 5,856,875
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
8
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WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR SECURITY DESCRIPTION VALUE
- ------------ --------------------------------------------------- -----------
<S> <C> <C> <C> <C> <C>
SHORT-TERM INVESTMENTS (4.5%)
$3,545,000 Repurchase agreement with State Street Bank dated
04/28/95 at 5.87% to be repurchased at $3,546,734
on 05/01/95. (Collateralized by $3,590,000 U.S.
Treasury Note 6.25%, due 08/31/96, with a market
value of $3,616,925.) (Cost $3,545,000) $ 3,545,000
-----------
TOTAL INVESTMENTS AT VALUE (96.3%) (Cost $77,507,700*) 76,671,162
OTHER ASSETS IN EXCESS OF LIABILITIES (3.7%) 2,979,368
-----------
NET ASSETS (100.0%) (applicable to 7,733,037 shares) $79,650,530
-----------
-----------
NET ASSET VALUE, offering and redemption price per share
($79,650,530[div]7,733,037) $10.30
------
------
</TABLE>
# Restricted security.
* Also cost for Federal income tax purposes.
+ Unless as otherwise indicated below, all securities are denominated in the
currency of the issuers' country of origin.
(A) Denominated in Dollars (U.S.)
(B) Denominated in European Currency Units (ECU)
See Accompanying Notes to Financial Statements.
9
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<PAGE>
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WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
STATEMENT OF NET ASSETS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR SECURITY DESCRIPTION MATURITY RATE VALUE
----------- --------------------------------------------------------------------- --------- ----- ------------
<S> <C> <C> <C> <C> <C>
AGENCY OBLIGATIONS (21.1%)
Small Business Administration (6.5%)
$1,610,429 Small Business Administration Guaranteed Development Participation 07/01/02 6.600% $1,580,233
Certificate
1,786,477 Small Business Administration Guaranteed Development Participation 04/01/02 7.450 1,784,244
Certificate Debenture Series 1992-10 B
------------
Total Small Business Administration 3,364,477
------------
Other (14.6%)
5,490,000 Government Trust Certificate Israel State Series 2 Class 2-E 05/15/02 9.400 5,908,612
Registered
1,500,000 Private Export Funding Group Secured Notes Series B 10/30/98 9.100 1,593,750
------------
Total Other 7,502,362
------------
TOTAL AGENCY OBLIGATIONS (Cost $11,492,310) 10,866,839
------------
MORTGAGE-BACKED SECURITIES (18.9%)
5,788,037 Federal National Mortgage Association 08/01/00 6.000 5,549,280
3,074,843 Federal National Mortgage Association 10/01/00 6.500 3,001,816
1,180,235 Federal National Mortgage Association 10/25/00 8.500 1,181,721
------------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $9,591,425) 9,732,817
------------
UNITED STATES TREASURY OBLIGATIONS (56.8%)
U.S. Treasury Notes (42.8%)
2,000,000 U.S. Treasury Note 08/31/96 7.250 2,019,860
6,500,000 U.S. Treasury Note 05/15/97 8.500 6,730,425
7,000,000 U.S. Treasury Note 07/15/98 8.250 7,299,039
2,000,000 U.S. Treasury Note 10/15/98 7.125 2,024,500
3,750,000 U.S. Treasury Note 05/15/01 8.000 3,946,500
------------
Total U.S. Treasury Notes 22,020,324
------------
U.S. Treasury Strip Notes (14.0%)
4,500,000 U.S. Treasury Strip Note 08/15/97 -- 3,878,505
4,800,000 U.S. Treasury Strip Note 11/15/00 -- 3,307,152
------------
Total U.S. Treasury Strip Notes 7,185,657
------------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $29,215,477) 29,205,981
------------
MONEY MARKET FUNDS (1.4%)
<CAPTION>
SHARES
-----------
<S> <C> <C> <C> <C> <C>
713,267 Trust for Federal Securities -- FedFund Portfolio (Cost $713,267) 713,267
------------
TOTAL INVESTMENTS AT VALUE (98.2%) (Cost $51,012,479*) 50,518,904
OTHER ASSETS IN EXCESS OF LIABILITIES (1.8%) 909,179
------------
NET ASSETS (100.0%) (applicable to 5,239,841 shares) $51,428,083
------------
------------
NET ASSET VALUE, offering and redemption price per share ($51,428,083[div]5,239,841) $9.81
------
------
</TABLE>
* Also cost for Federal income tax purposes.
10
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<PAGE>
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WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ---------- ------------------------------------------------------ -------------- --------- -------- -----------
<S> <C> <C> <C> <C> <C>
NEW YORK (73.6%)
$1,000,000 Albany New York Parking Authority Revenue Bond (LOC
Key Trust) [Pre-refunded 11/01/98 @ $100] (NR/AAA) 11/01/98 6.875% $ 1,067,500
1,000,000 Buffalo NY General Obligation Unlimited (FGIC Insured) (Aaa/AAA) 02/01/97 5.600 1,017,500
750,000 Canandaigua New York City School District (FGIC
Insured) (Aaa/AAA) 06/01/99 7.125 811,875
3,000,000 Metropolitan Transit Authority Facility NY Series F
[Pre-refunded 07/01/96 @ $102] (Aaa/AAA) 07/01/96 8.375 3,191,250
1,000,000 Municipal Assistance Corporation Series #59 (MBIA
Insured) [Callable 07/01/97 @ $102] (Aaa/AAA) 07/01/01 7.750 1,082,500
225,000 Municipal Assistance Corporation Series #67 [Callable
07/01/99 @ $102] (Aa/AA-) 07/01/01 7.400 246,655
1,000,000 Municipal Assistance Corporation Series #67 [Callable
07/01/99 @ $102] (Aa/AA-) 07/01/04 7.600 1,108,750
640,000 Municipal Assistance Corporation Series #68 [Callable
07/01/99 @ $102] (Aa/AA-) 07/01/03 7.200 696,800
700,000 Nassau County General Obligation Series A (MBIA
Insured) [Escrowed to Maturity] (Aaa/AAA) 07/01/99 6.000 729,750
1,045,000 Nassau County General Obligation Series L (FGIC
Insured) [Escrowed to Maturity] (Aaa/AAA) 11/15/01 6.300 1,116,844
2,000,000 Nassau County General Obligation Series O [FGIC
Insured] (Aaa/AAA) 08/01/98 5.625 2,052,500
2,605,000 New York City Municipal Water & Sewer System Series A
(Pre-refunded 06/15/97 @ $101.50) (Aaa/A-) 06/15/97 7.625 2,800,375
1,515,000 New York State Dormitory Authority/City University
Series B (FGIC Insured) (Aaa/AAA) 07/01/99 6.900 1,628,625
1,000,000 New York State Dormitory Authority/Cornell University
[Callable 07/01/96 @ $102] (Aa/AA) 07/01/98 6.250 1,036,250
1,750,000 New York State Dormitory Authority/Fordham University
(Pre-refunded 07/01/00 @ $102) (Aaa/AAA) 07/01/00 7.200 1,957,813
2,130,000 New York State Dormitory Authority/State University
Educational Facilities Series B [Escrowed To Maturity] (Aaa/AAA) 05/01/00 6.000 2,228,513
3,000,000 New York State Dormitory Authority/State University
Educational Facilities Series B [Pre-refunded 05/15/00
@ $102] (Aaa/BBB) 05/15/00 7.250 3,356,250
1,000,000 New York State Dormitory Authority/State University
Educational Facilities [Callable 05/15/99 @ $102] (A/A+) 05/15/02 7.000 1,061,250
1,000,000 New York State Dormitory Authority/Upstate Community
College Issue A (Baa1/NR) 07/01/00 7.600 1,132,500
1,000,000 New York State Environmental Facility Corporation
Pollution Control Series E (Aa/A) 06/15/97 5.750 1,023,750
2,500,000 New York State General Obligation Series B (A/A-) 08/15/00 6.375 2,650,000
1,000,000 New York State Local Government Assistance Corp.
Series A (A/A) 04/01/99 6.000 1,033,750
2,500,000 New York State Local Government Assistance Corp.
(Pre-refunded 04/01/02 @ $102) (Aaa/AAA) 04/01/02 6.750 2,781,250
2,500,000 New York State Power Authority Revenue & General
Purpose Bond Series T [Pre-refunded 01/01/96 @ $102] (Aaa/AA-) 01/01/96 7.375 2,596,875
</TABLE>
See Accompanying Notes to Financial Statements.
11
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ---------- ------------------------------------------------------ -------------- --------- -------- -----------
NEW YORK (CONT'D)
<S> <C> <C> <C> <C> <C>
$ 750,000 New York State Power Authority Revenue and General
Purpose Bond Series V [Callable 01/01/98 @ $102] (Aa/AA-) 01/01/03 7.600% $ 810,000
5,000,000 New York State Urban Development Authority
Correctional Facilities Revenue Bond (Pre-refunded
01/01/96 @ $102) (Aaa/BBB) 01/01/96 8.000 5,212,500
1,000,000 New York State Urban Development Corporation
Correctional Facility Series 2 [Pre-refunded 01/01/01
@ $100] (Aaa/NR) 01/01/01 6.500 1,072,500
2,500,000 New York State Urban Development Corporation
Correctional Facility Series C (Pre-refunded 01/01/98
@ $102) (Aaa/AAA) 01/01/98 7.500 2,718,750
2,500,000 New York State Urban Development Correctional Capital
Facilities Series 1 (Pre-refunded 01/01/00 @ $102) (Aaa/AAA) 01/01/00 7.500 2,806,250
880,000 Suffolk County New York Water Authority Water Works
(Pre-refunded 06/01/00 @ $102) (Aaa/AAA) 06/01/00 6.875 971,300
1,350,000 Syracuse New York General Obligation Public
Improvement Onondaga County [Escrowed to Maturity] (NR/NR) 02/15/98 6.600 1,414,125
1,000,000 Triborough Bridge & Tunnel Authority New York Series N
[Pre-refunded 01/01/98 @ $101.50] (Aaa/AAA) 01/01/98 7.875 1,092,500
2,000,000 Triborough Bridge & Tunnel Authority New York Series O
[Pre-refunded 01/01/99 @ $101.50] (Aaa/AAA) 01/01/99 7.700 2,203,750
2,000,000 Triborough Bridge & Tunnel Authority New York Series T
(Pre-refunded 01/01/01 @ $102) (Aaa/A+) 01/01/01 7.000 2,225,000
1,325,000 Triborough Bridge and Tunnel Authority New York
Special Obligation Mortgage Recording Tax Series A
(Pre-refunded 01/01/00 @ $102) (Aaa/AAA) 01/01/00 7.125 1,457,500
-----------
TOTAL NEW YORK (Cost $59,364,311) 60,393,300
-----------
PUERTO RICO (25.1%)
370,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority
[Escrowed To Maturity] [Callable 07/01/95 @ $101] (Aaa/AAA) 07/01/99 7.875 393,124
4,000,000 Puerto Rico Commonwealth General Obligation (MBIA
Insured) (Aaa/AAA) 07/01/01 5.500 4,110,000
2,500,000 Puerto Rico Commonwealth Public Improvement Series B
[Pre-refunded 07/01/97 @ $102] (Nr/AAA) 07/01/97 7.250 2,687,500
185,000 Puerto Rico Commonwealth Public Improvement [Callable
07/01/97 @ $102] (Baa1/A) 07/01/02 7.125 196,563
40,000 Puerto Rico Commonwealth Public Improvement
[Pre-refunded 07/01/97 @ $102] (Baa1/A) 07/01/97 7.125 42,900
2,000,000 Puerto Rico Electric Power Authority Power Revenue
Series L (Pre-refunded 07/01/97 @ $102) (Aaa/AAA) 07/01/97 7.600 2,165,000
1,000,000 Puerto Rico Electric Power Authority Revenue Series M
(Pre-refunded 07/01/98 @ $102) (Aaa/AAA) 07/01/98 8.000 1,115,000
500,000 Puerto Rico Electric Power Authority Revenue Series N
[Callable 07/01/99 @ $101.50] (Baa1/A-) 07/01/00 6.800 534,375
2,000,000 Puerto Rico Electric Power Authority Revenue Series O
(MBIA Insured) (Aaa/AAA) 07/01/99 6.400 2,107,500
</TABLE>
See Accompanying Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR SECURITY DESCRIPTION (MOODY'S/S&P) MATURITY RATE VALUE
- ---------- ------------------------------------------------------ -------------- --------- -------- -----------
PUERTO RICO (CONT'D)
<S> <C> <C> <C> <C> <C>
$2,500,000 Puerto Rico Highway and Transportation Authority
Series S (Pre-refunded 07/01/02 @ $101.50) (Nr/AAA) 07/01/02 6.500% $ 2,756,250
1,700,000 Puerto Rico Public Building Authority Revenue Bond
Series I (FGIC Insured) (Aaa/AAA) 07/01/99 6.850 1,819,000
2,500,000 Puerto Rico Public Buildings Authority Guaranteed
Public Education and Health Facilities Series H [Pre-
refunded 07/01/97 @ $102] (Aaa/AAA) 07/01/97 7.875 2,718,750
-----------
TOTAL PUERTO RICO (Cost $20,309,370) 20,645,962
-----------
MONEY MARKET FUNDS (0.1%)
<CAPTION>
SHARES
- ----------
<S> <C> <C> <C> <C> <C>
40,012 Municipal Fund For New York Investors, Inc. 40,012
11,855 Nuveen Tax Exempt Money Fund 11,855
-----------
TOTAL MONEY MARKET FUNDS (Cost $51,867) 51,867
-----------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $79,725,548*) 81,091,129
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%) 1,014,315
-----------
NET ASSETS (100.0%) (applicable to 8,027,859 shares) $82,105,444
-----------
-----------
NET ASSET VALUE, offering and redemption price per share ($82,105,444[div]8,027,859) $10.23
------
------
</TABLE>
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Warburg
Warburg Pincus Pincus
Warburg Pincus Intermediate New York
Pincus Global Maturity Intermediate
Fixed Income Fixed Income Government Municipal
Fund Fund Fund Fund
------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $4,241,937 $ 3,702,513 $1,509,676 $2,013,885
Dividends 166,969 251,617 63,491 31,231
------------ ------------ ---------- ----------
Total investment income 4,408,906 3,954,130 1,573,167 2,045,116
------------ ------------ ---------- ----------
EXPENSES:
Investment advisory 267,917 426,534 116,472 158,597
Administrative services 107,166 92,645 50,143 79,299
Audit 8,400 8,854 8,333 8,498
Custodian/Sub-custodian 23,558 36,392 7,795 11,576
Directors/Trustees 4,959 4,959 4,959 4,959
Insurance 4,216 1,898 3,968 3,224
Legal 13,389 17,918 13,950 14,876
Organizational 0 13,220 0 0
Printing 8,717 9,884 6,447 6,893
Registration 16,544 19,626 10,608 7,412
Transfer agent 22,315 24,157 19,729 16,257
Miscellaneous 8,040 7,833 7,596 7,176
------------ ------------ ---------- ----------
485,221 663,920 250,000 318,767
Less: fees waived (83,346) (258,702) (110,234) (80,871)
------------ ------------ ---------- ----------
Total expenses 401,875 405,218 139,766 237,896
------------ ------------ ---------- ----------
Net investment income 4,007,031 3,548,912 1,433,401 1,807,220
------------ ------------ ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS) FROM
INVESTMENTS AND FOREIGN CURRENCY RELATED ITEMS:
Net realized loss from security transactions (1,983,139) (3,069,866) (147,401) (55,007)
Net realized gain (loss) from foreign currency
related items 89,969 (753,098) 0 0
Net increase in unrealized appreciation from
investments and foreign currency related items 2,065,353 754,175 876,359 1,385,408
------------ ------------ ---------- ----------
Net realized and unrealized gain (loss) from
investments and foreign currency related
items 172,183 (3,068,789) 728,958 1,330,401
------------ ------------ ---------- ----------
Net increase in net assets from operations $4,179,214 $ 480,123 $2,162,359 $3,137,621
------------ ------------ ---------- ----------
------------ ------------ ---------- ----------
</TABLE>
See Accompanying Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Fixed Income Global Fixed
Fund Income Fund
----------------------------- -----------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1995 October 31, 1995 October 31,
(Unaudited) 1994 (Unaudited) 1994
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 4,007,031 $ 5,867,260 $ 3,548,912 $ 5,807,634
Net realized gain (loss) from security transactions (1,983,139) (1,542,624) (3,069,866) (1,599,708)
Net realized gain (loss) from foreign currency
related items 89,969 18,246 (753,098) (2,237,413)
Net increase (decrease) in unrealized appreciation
from investments and foreign currency related
items 2,065,353 (4,804,661) 754,175 (4,227,712)
------------ ------------- ------------ -------------
Net increase (decrease) in net assets resulting
from operations 4,179,214 (461,779) 480,123 (2,257,199)
------------ ------------- ------------ -------------
FROM DISTRIBUTIONS:
Dividends from net investment income (4,007,031) (5,926,319) (1,951,810) (3,215,939)
Distributions from capital gains 0 (732,741) 0 (827,403)
Return of capital 0 0 0 (366,074)
------------ ------------- ------------ -------------
Net decrease from distributions (4,007,031) (6,659,060) (1,951,810) (4,409,416)
------------ ------------- ------------ -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 27,103,623 58,018,967 26,492,059 61,614,112
Reinvested dividends 2,770,653 5,623,287 1,659,902 3,798,759
Net asset value of shares redeemed (18,390,436) (35,456,760) (37,423,813) (30,346,474)
------------ ------------- ------------ -------------
Net increase (decrease) in net assets from
capital share transactions 11,483,840 28,185,494 (9,271,852) 35,066,397
------------ ------------- ------------ -------------
Net increase (decrease) in net assets 11,656,023 21,064,655 (10,743,539) 28,399,782
NET ASSETS:
Beginning of period 102,246,118 81,181,463 90,394,069 61,994,287
------------ ------------- ------------ -------------
End of period $113,902,141 $102,246,118 $79,650,530 $90,394,069
------------ ------------- ------------ -------------
------------ ------------- ------------ -------------
</TABLE>
See Accompanying Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Intermediate Maturity New York Intermediate
Government Fund Municipal Fund
--------------------------- ---------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1995 October 31, 1995 October 31,
(Unaudited) 1994 (Unaudited) 1994
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,433,401 $2,827,703 $ 1,807,220 $3,215,210
Net realized gain (loss) from security transactions (147,401) (58,020) (55,007) 47,719
Net realized gain (loss) from foreign currency related
items 0 0 0 0
Net increase (decrease) in unrealized appreciation
from investments and foreign currency related items 876,359 (3,492,181) 1,385,408 (3,387,003)
------------ ----------- ------------ -----------
Net increase (decrease) in net assets resulting
from operations 2,162,359 (722,498) 3,137,621 (124,074)
------------ ----------- ------------ -----------
FROM DISTRIBUTIONS:
Dividends from net investment income (1,433,401) (2,827,703) (1,807,220) (3,222,899)
Distributions from capital gains 0 (3,937,754) (47,531) (912,745)
Return of capital 0 0 0 0
------------ ----------- ------------ -----------
Net decrease from distributions (1,433,401) (6,765,457) (1,854,751) (4,135,644)
------------ ----------- ------------ -----------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 16,053,578 24,310,135 19,311,765 50,293,197
Reinvested dividends 882,750 5,552,546 1,327,049 3,404,096
Net asset value of shares redeemed (12,970,856) (53,205,957) (15,532,335) (43,299,063)
------------ ----------- ------------ -----------
Net increase (decrease) in net assets from capital
share transactions 3,965,472 (23,343,276) 5,106,479 10,398,230
------------ ----------- ------------ -----------
Net increase (decrease) in net assets 4,694,430 (30,831,231) 6,389,349 6,138,512
NET ASSETS:
Beginning of period 46,733,653 77,564,884 75,716,095 69,577,583
------------ ----------- ------------ -----------
End of period $51,428,083 $46,733,653 $82,105,444 $75,716,095
------------ ----------- ------------ -----------
------------ ----------- ------------ -----------
</TABLE>
16
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended October 31,
April 30, 1995 ----------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.61 $ 10.42 $ 9.90 $ 9.61 $ 8.95 $ 9.74
------------ -------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .35 .63 .56 .67 .73 .88
Net Gain (Loss) from Securities and
Foreign Currency Related Items (both
realized and unrealized) .01 (.70) .52 .29 .66 (.79)
------------ -------- ------- ------- ------- -------
Total from Investment Operations .36 (.07) 1.08 .96 1.39 .09
------------ -------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment income (.35) (.65) (.56) (.67) (.73) (.88)
Distributions from capital gains .00 (.09) .00 .00 .00 .00
------------ -------- ------- ------- ------- -------
Total Distributions (.35) (.74) (.56) (.67) (.73) (.88)
------------ -------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.62 $ 9.61 $ 10.42 $ 9.90 $ 9.61 $ 8.95
------------ -------- ------- ------- ------- -------
------------ -------- ------- ------- ------- -------
Total Return 7.95%* (.60%) 11.63% 10.28% 16.08% 0.88%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $113,902 $102,246 $81,181 $65,095 $61,908 $60,815
Ratios to average daily net assets:
Operating expenses .75%* .75% .75% .75% .75% .75%
Net investment income 7.48%* 6.53% 5.99% 6.82% 7.85% 9.35%
Decrease reflected in above expense
ratios due to waivers/reimbursements .15%* .18% .09% .27% .24% .06%
Portfolio turnover rate 53.91%* 179.44% 227.37% 122.04% 150.61% 132.01%
</TABLE>
* Annualized
See Accompanying Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS GLOBAL FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended October 31,
April 30, 1995 --------------------------------------------------------
(Unaudited) 1994 1993 1992 1991`D'
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.45 $ 11.38 $ 10.68 $ 10.40 $ 10.00
------------ ----------- ----------- ----------- -----------
Income from Investment Operations:
Net Investment Income .48 .34 .54 .86 .59
Net Gain (Loss) from Securities and
Foreign Currency Related Items (both
realized and unrealized) (.39) (.64) 1.13 .28 .14
------------ ----------- ----------- ----------- -----------
Total from Investment Operations .09 (.30) 1.67 1.14 .73
------------ ----------- ----------- ----------- -----------
Less Distributions:
Dividends from net investment income (.24) (.45) (.85) (.67) (.33)
Distributions from capital gains .00 (.14) (.12) (.19) .00
Return of capital .00 (.04) .00 .00 .00
------------ ----------- ----------- ----------- -----------
Total Distributions (.24) (.63) (.97) (.86) (.33)
------------ ----------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD $ 10.30 $ 10.45 $ 11.38 $ 10.68 $ 10.40
------------ ----------- ----------- ----------- -----------
------------ ----------- ----------- ----------- -----------
Total Return 1.78%* (2.79%) 16.72% 11.08% 7.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $ 79,651 $90,394 $61,994 $17,092 $12,160
Ratios to average daily net assets:
Operating expenses .95%* .95% .49% .45% 1.09%
Net investment income 8.32%* 6.96% 8.60% 8.66% 7.45%
Decrease reflected in above expense
ratios due to waivers/reimbursements .61%* .65% 1.44% 2.42% 2.73%
Portfolio turnover rate 111.38%* 178.11% 109.54% 93.14% 185.74%
</TABLE>
`D' The Fund commenced operations on November 1, 1990.
* Annualized
See Accompanying Notes to Financial Statements.
18
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended October 31,
April 30, 1995 ----------------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.66 $ 11.03 $ 11.23 $ 10.83 $ 10.24 $ 10.33
------------ ------- ------- -------- ------- -------
Income from Investment Operations:
Net Investment Income .30 .54 .59 .68 .76 .79
Net Gain (Loss) from Securities (both
realized and unrealized) .15 (.73) .34 .41 .59 (.09)
------------ ------- ------- -------- ------- -------
Total from Investment Operations .45 (.19) .93 1.09 1.35 .70
------------ ------- ------- -------- ------- -------
Less Distributions:
Dividends from net investment income (.30) (.55) (.59) (.68) (.76) (.79)
Distributions from capital gains .00 (.63) (.54) (.01) .00 .00
------------ ------- ------- -------- ------- -------
Total Distributions (.30) (1.18) (1.13) (.69) (.76) (.79)
------------ ------- ------- -------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.81 $ 9.66 $ 11.03 $ 11.23 $ 10.83 $ 10.24
------------ ------- ------- -------- ------- -------
------------ ------- ------- -------- ------- -------
Total Return 8.78%* (1.78%) 8.79% 10.34% 13.71% 7.10%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $ 51,428 $46,734 $77,565 $113,336 $89,006 $63,663
Ratios to average daily net assets:
Operating expenses .60%* .60% .60% .60% .57% .50%
Net investment income 6.15%* 5.43% 5.34% 6.10% 7.29% 7.78%
Decrease reflected in above expense
ratios due to waivers/reimbursements .47%* .42% .21% .25% .30% .44%
Portfolio turnover rate 41.96%* 115.37% 108.00% 165.70% 39.13% 112.69%
</TABLE>
* Annualized
See Accompanying Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended October 31,
April 30, 1995 -----------------------------------------------
(Unaudited) 1994 1993 1992 1991 1990
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.07 $ 10.65 $ 10.02 $ 9.88 $ 9.57 $ 9.59
------------ ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .24 .46 .47 .50 .53 .60
Net Gain (Loss) from Securities (both
realized and unrealized) .17 (.45) .68 .14 .31 (.02)
------------ ------- ------- ------- ------- -------
Total from Investment Operations .41 .01 1.15 .64 .84 .58
------------ ------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment income (.24) (.46) (.47) (.50) (.53) (.60)
Distributions from capital gains (.01) (.13) (.05) .00 .00 .00
------------ ------- ------- ------- ------- -------
Total Distributions (.25) (.59) (.52) (.50) (.53) (.60)
------------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 10.23 $ 10.07 $ 10.65 $ 10.02 $ 9.88 $ 9.57
------------ ------- ------- ------- ------- -------
------------ ------- ------- ------- ------- -------
Total Return 8.19%* .04% 11.67% 6.63% 9.43% 6.18%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) 8$2,105 $75,716 $69,578 $54,012 $29,016 $21,916
Ratios to average daily net assets:
Operating expenses .60%* .60% .58% .55% .55% .55%
Net investment income 4.56%* 4.41% 4.50% 4.99% 5.84% 6.21%
Decrease reflected in above expense ratios
due to waivers / reimbursements .20%* .20% .20% .40% .65% .76%
Portfolio turnover rate 93.68%* 167.09% 115.98% 47.79% 66.53% 70.45%
</TABLE>
* Annualized
See Accompanying Notes to Financial Statements.
20
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1995 (Unaudited)
- ----------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Fixed Income Funds are comprised of Warburg Pincus Fixed
Income Fund (the 'Fixed Income Fund') and Warburg Pincus Intermediate Maturity
Government Fund (the 'Intermediate Government Fund') which are registered under
the Investment Company Act of 1940, as amended (the '1940 Act'), as diversified,
open-end management investment companies and Warburg Pincus Global Fixed Income
Fund (the 'Global Fixed Income Fund') and Warburg Pincus New York Intermediate
Municipal Fund (the 'New York Municipal Fund') which are registered under the
1940 Act as non-diversified, open-end management investment companies.
Investment objectives for each Fund are as follows: the Fixed Income Fund
seeks to generate high current income consistent with reasonable risk with
capital appreciation a secondary objective; the Global Fixed Income Fund seeks
to maximize total investment return consistent with prudent investment
management, consisting of a combination of interest income, currency gains and
capital appreciation; the Intermediate Government Fund seeks to achieve as high
a level of current income as is consistent with preservation of capital; the New
York Municipal Fund seeks to maximize current interest income exempt from
Federal income tax and New York state and New York city personal income tax to
the extent consistent with prudent investment and preservation of capital.
The net asset value of each Fund is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Fund's investments are
generally valued at market value, which is currently determined using the last
reported sales price. If no sales are reported, investments are generally valued
at the last reported bid price. In the absence of market quotations, investments
are valued at fair value as determined by or under the direction of each Fund's
governing Board. Short-term investments that mature in 60 days or less are
valued on the basis of amortized cost, which attempts to approximate market
value.
The books and records of these Funds are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities denominated in foreign
currencies are translated into U.S. dollar amounts at the current exchange rate.
Translation gains or losses resulting from changes in the exchange rate during
the reporting period and realized gains and losses on the settlement of foreign
currency transactions are reported in the results of operations for the current
period. The Global Fixed Income Fund isolates that portion of gains and losses
on investments in debt securities which are due to changes in the foreign
exchange rate from that which are due to changes in market prices of debt
securities.
Security transactions are accounted for on trade date. Interest income is
recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
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
for the Fixed Income Fund, the Intermediate Government Fund and the New York
Municipal Fund. Dividends from net
21
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
investment income are declared and paid quarterly for the Global Fixed Income
Fund. Distributions for all Funds of net realized capital gains, if any, are
declared annually. However, to the extent that a net realized capital gain can
be reduced by a capital loss carryover, such gain will not be distributed.
Income and capital gain distributions are determined in accordance with Federal
income tax regulations which may differ from generally accepted accounting
principles.
Each Fund intends to continue to comply with the special provisions of the
Internal Revenue Code available to investment companies and therefore no Federal
income tax provision is required.
Costs incurred by the Global Fixed Income Fund in connection with its
organization have been deferred and are being amortized over a period of five
years from the date the Global Fixed Income Fund commenced its operations.
Each Fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, the Fund acquires an underlying security
subject to an obligation of the seller to repurchase. The value of the
underlying security collateral will be maintained at an amount at least equal to
the total amount of the purchase obligation, including interest. The collateral
is in the Fund's possession.
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Counsellors'), a wholly owned
subsidiary of Warburg, Pincus Counsellors G.P. ('Counsellors G.P.'), serves as
each Fund's investment adviser. For its investment advisory services,
Counsellors receives the following fees based on each Fund's average daily net
assets:
<TABLE>
<CAPTION>
FUND ANNUAL RATE
- --------------------------------- ----------------------------------
<S> <C>
Fixed Income .50% of average daily net assets
Global Fixed Income 1.00% of average daily net assets
Intermediate Government .50% of average daily net assets
New York Municipal .40% of average daily net assets
</TABLE>
For the six months ended April 30, 1995, investment advisory fees and
waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
- --------------------------------------------------- ------------ --------- ------------
<S> <C> <C> <C>
Fixed Income $267,917 $ (61,913) $206,004
Global Fixed Income 426,534 (234,792) 191,742
Intermediate Government 116,472 (110,234) 6,238
New York Municipal 158,597 (67,112) 91,485
</TABLE>
Counsellors Funds Service, Inc. ('CFSI'), a wholly owned subsidiary of
Counsellors, and PFPC Inc. ('PFPC'), an indirect, wholly owned subsidiary of PNC
Bank Corp. ('PNC'), serve as each Fund's co-administrators. For its
administrative services, CFSI currently receives a fee calculated at an annual
22
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
rate of .10% of each Fund's average daily net assets. For the six months ended
April 30, 1995, administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE
- ----------------------------------------------------------------------- ---------------------
<S> <C>
Fixed Income $53,583
Global Fixed Income 42,653
Intermediate Government 25,141
New York Municipal 39,649
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly owned subsidiary of
Counsellors, serves as each Fund's distributor. No compensation is payable by
the Funds to CSI for distribution services.
For the six months ended April 30, 1995, administrative services fees
earned and voluntarily waived by PFPC were as follows:
<TABLE>
<CAPTION>
FUND GROSS FEE WAIVER NET
- ----------------------------------------------------------- --------- -------- -------
<S> <C> <C> <C>
Fixed Income $53,583 $(21,433) $32,150
Global Fixed Income 49,992 (23,910) 26,082
Intermediate Government 25,002 0 25,002
New York Municipal 39,650 (13,759) 25,891
</TABLE>
3. INVESTMENTS IN SECURITIES
For the six months ended April 30, 1995, purchases and sales of investment
securities (excluding short-term investments) and U.S. government and agency
obligations were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT AND
INVESTMENT SECURITIES AGENCY OBLIGATIONS
-------------------------- --------------------------
FUND PURCHASES SALES PURCHASES SALES
- ------------------------------------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Fixed Income $23,598,201 $39,302,584 $75,193,336 $22,705,307
Global Fixed Income 33,934,566 53,494,792 8,831,484 5,412,910
Intermediate Government 0 0 24,191,668 9,262,093
New York Municipal 51,219,533 36,023,149 0 0
</TABLE>
23
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
At April 30, 1995, the net unrealized appreciation from investments for
those securities having an excess of value over cost and net unrealized
depreciation from investments having an excess of cost over value (based on cost
for Federal income tax purposes) was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
- ------------------------------------------------ ------------ ------------ --------------
<S> <C> <C> <C>
Fixed Income $ 431,706 $ (2,252,696) $ (1,820,990)
Global Fixed Income 4,630,025 (5,466,563) (836,538)
Intermediate Government 207,047 (700,622) (493,575)
New York Municipal 1,446,272 (80,691) 1,365,581
</TABLE>
4. FORWARD FOREIGN CURRENCY CONTRACTS AND FUTURES
The Global Fixed Income Fund may enter into forward currency contracts for
the purchase or sale of a specific foreign currency at a fixed price on a future
date. Risks may arise upon entering into these contracts from the potential
inability of counterparties to meet the terms of their contracts and from
unanticipated movements in the value of a foreign currency relative to the U.S.
dollar. The Global Fixed Income Fund may enter into forward contracts for
hedging purposes or to increase income and total return. The forward currency
contracts are adjusted by the daily exchange rate of the underlying currency and
any gains or losses are recorded for financial statement purposes as unrealized
until the contract settlement date.
At April 30, 1995, the Global Fixed Income Fund had the following open
forward currency contracts and had recorded net unrealized losses on these
contracts of $1,066,026:
<TABLE>
<CAPTION>
SETTLEMENT CURRENCY CURRENCY
DATE BOUGHT SOLD
- ----------- ----------------------- ----------------------------
<S> <C> <C> <C>
06/21/95 4,826,651 U.S. Dollars 632,774,000 Spanish Pesetas
06/21/95 4,898,000 U.S. Dollars 3,100,000 Irish Punt
06/21/95 99,198 U.S. Dollars 501,445 French Francs
06/28/95 3,331,841 U.S. Dollars 2,073,330 British Pounds
06/28/95 1,632,365 U.S. Dollars 1,030,208 British Pounds
07/03/95 8,199,955 U.S. Dollars 46,657,745 Danish Krone
07/10/95 11,454,778 U.S. Dollars 16,036,690 German Marks
</TABLE>
At April 30, 1995, the Global Fixed Income Fund had open futures contracts
with recorded net unrealized losses of $72,846.
5. CAPITAL SHARE TRANSACTIONS
The Global Fixed Income Fund and the Intermediate Government Fund are each
authorized to issue three billion full and fractional shares of capital stock,
$.001 par value per share, of which one
24
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
billion shares are designated Series 2 Shares. The Fixed Income Fund and the New
York Municipal Fund are each authorized to issue an unlimited number of full and
fractional shares of beneficial interest, $.001 par value per share, of which
one billion shares are classified as Series 2 Shares. At April 30, 1995, no
Series 2 Shares were outstanding.
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
FIXED INCOME FUND GLOBAL FIXED INCOME FUND
---------------------------------------- ----------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1995 October 31, 1995 October 31,
(Unaudited) 1994 (Unaudited) 1994
------------------- ------------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Shares sold 2,844,246 5,837,372 2,588,818 5,678,256
Shares issued to
shareholders on
reinvestment of
dividends 290,699 566,407 162,287 350,063
Shares redeemed (1,927,482) (3,561,347) (3,665,691) (2,829,142)
------------------- ------------------- ---------------- ----------------
Net increase (decrease)
in shares outstanding 1,207,463 2,842,432 (914,586) 3,199,177
------------------- ------------------- ---------------- ----------------
------------------- ------------------- ---------------- ----------------
</TABLE>
6. NET ASSETS
Net assets at April 30, 1995, consisted of the following:
<TABLE>
<CAPTION>
FIXED INCOME FUND GLOBAL FIXED INCOME FUND
---------------------------- ------------------------
<S> <C> <C>
Capital contributed, net $118,999,924 $ 85,038,011
Accumulated net investment income
(loss) (52,111) 844,004
Accumulated net realized loss from
security transactions (3,517,622) (4,262,357)
Net unrealized appreciation
(depreciation) from investments
and foreign currency related
items (1,528,050) (1,969,128)
---------------- ------------------------
Net assets $113,902,141 $ 79,650,530
---------------- ------------------------
---------------- ------------------------
</TABLE>
25
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT FUND NEW YORK MUNICIPAL FUND
---------------------------------------- ----------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1995 October 31, 1995 October 31,
(Unaudited) 1994 (Unaudited) 1994
------------------- ------------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Shares sold 1,656,847 2,426,890 1,915,201 4,835,896
Shares issued to
shareholders on
reinvestment of
dividends 91,355 538,360 131,222 328,635
Shares redeemed (1,344,315) (5,159,908) (1,537,014) (4,178,180)
------------------- ------------------- ---------------- ----------------
Net increase (decrease)
in
shares outstanding 403,887 (2,194,658) 509,409 986,351
------------------- ------------------- ---------------- ----------------
------------------- ------------------- ---------------- ----------------
</TABLE>
6. NET ASSETS
Net assets at April 30, 1995, consisted of the following:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT FUND NEW YORK MUNICIPAL FUND
---------------------------- ------------------------
<S> <C> <C>
Capital contributed, net $ 52,130,011 $ 80,792,151
Accumulated net investment income
(loss) (30,805) 0
Accumulated net realized loss from
security transactions (177,548) (54,819)
Net unrealized appreciation
(depreciation) from investments
and foreign currency related
items (493,575) 1,368,112
---------------- ------------------------
Net assets $ 51,428,083 $ 82,105,444
---------------- ------------------------
---------------- ------------------------
</TABLE>
26
- --------------------------------------------------------------------------------
<PAGE>
FURTHER INFORMATION IS CONTAINED IN THE
PROSPECTUS, WHICH MUST PRECEDE OR
ACCOMPANY THIS REPORT.
WARBURG PINCUS FUNDS
P.O. BOX 9030
BOSTON, MASSACHUSETTS 02205-9030
SHAREHOLDER SERVICES
1-800-888-6878
PROSPECTUSES
1-800-257-5614
[LOGO]
SEMIANNUAL
REPORT
APRIL 30, 1995
[ ] WARBURG PINCUS
FIXED INCOME FUND
[ ] WARBURG PINCUS
GLOBAL FIXED INCOME FUND
[ ] WARBURG PINCUS
INTERMEDIATE MATURITY GOVERNMENT FUND
[ ] WARBURG PINCUS
NEW YORK INTERMEDIATE
MUNICIPAL FUND
COUNSELLORS SECURITIES INC., DISTRIBUTOR
WPBDF-3-0495
STATEMENT OF DIFFERENCES
<TABLE>
<S> <C>
The dagger symbol shall be expressed as ......... 'D'
</TABLE>
