<PAGE>
<PAGE>
SEMIANNUAL
REPORT
April 30, 1996
WARBURG PINCUS
FIXED INCOME FUND
-
WARBURG PINCUS
GLOBAL FIXED INCOME FUND
-
WARBURG PINCUS
INTERMEDIATE MATURITY GOVERNMENT FUND
-
WARBURG PINCUS
NEW YORK INTERMEDIATE MUNICIPAL FUND
[Logo]
<PAGE>
<PAGE>
The views of the Funds' management are as of the date of the letters and
portfolio holdings described in this semiannual report are as of April 30, 1996;
these views and portfolio holdings may have changed subsequent to these dates.
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: June 21, 1996
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, 1996, the Fund gained 1.38%, vs. a 1.16%
gain in the Lehman Brothers Intermediate Government/Corporate Bond Index. The
Fund's 30-day annualized current yield was 6.85% as of April 30. Its total net
assets were $126,478,000.
The first half of the reporting period -- November 1995 through January
1996 -- was a positive environment for bonds, as interest rates fell in response
to signs of continued moderate economic growth and controlled inflation. Through
this period, we kept the Fund's average maturity and duration equal to or
extended slightly beyond those of its benchmark index, which allowed the Fund to
take advantage of the general increase in bond prices. By sector, the Fund was
concentrated most heavily in U.S. Treasuries, which we deemed most attractive on
a relative basis.
The second half of the reporting period proved far less hospitable to the
bond market. Mounting evidence of a rejuvenated U.S. economy and accompanying
fears of inflation led to a significant backup in interest rates -- the yield on
the Treasury's benchmark 30-year bond rose from 6.04% at the beginning of
February to nearly 7% at the end of April. The magnitude of the rise negated
most, if not all, of the price gains seen over the November-through-January
span, and left most bond funds with nominal gains, or even losses, for the six
months ended April 30.
Our strategy as interest rates rose was to shorten the Fund's average
maturity and duration in an effort to minimize price losses. We also increased
the Fund's diversification among market sectors, reducing its Treasury exposure
and adding selectively to other areas (e.g., mortgage-backed and corporate
securities). The combination of a more-defensive positioning on the yield curve
and broadened sector diversification resulted in performance that was favorable
in relative terms, if not absolute terms.
Our outlook on the near-term prospects for bonds remains, in general,
guarded, given our expectations for stronger economic growth and the likelihood
of a further rise in interest rates. But we continue to find attractive
opportunities, and will maintain our efforts toward providing shareholders with
an attractive level of current income as well as the potential for capital
appreciation.
<TABLE>
<S> <C>
Dale C. Christensen M. Anthony E. van Daalen
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
<PAGE>
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: June 21, 1996
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, 1996, the Fund gained 4.66%, vs. gains
of 3.19% in the Salomon Brothers World Government Bond Index (Hedged) and 3.99%
in the Lipper General World Income Funds Average. The Fund's 30-day annualized
current yield was 7.39% as of April 30. Its total net assets were $101,812,000.
Most foreign bond markets saw modest gains for the six months. By region,
the Fund's largest weighting through the period was in Europe, with a particular
focus on securities of the markets of Denmark and Germany. We also held
significant positions in government securities of the markets of Ireland and the
United Kingdom. We considered these bonds to be attractive based on their yields
and on their prospects for price appreciation, which appeared favorable given
the absence of inflation and the generally slow rate of economic growth across
most of Europe. The Fund's European holdings contributed positively to its
performance through the period.
The Fund also benefited from its exposure to Asian and Latin American debt
markets. In the former, the portfolio's holdings included Indonesian bonds, as
well as convertible issues from Hong Kong, the Philippines and Thailand. The
Fund's Latin American holdings consisted primarily of corporate bonds of
Argentine and Brazilian banks. We favored these securities because of their
attractive yields and because they are denominated in U.S. dollars.
Our decision to hedge the majority of the Fund's foreign-currency exposure
during the period proved beneficial, as the U.S. dollar strengthened against
most overseas currencies. We remain, in general, bullish on the dollar's
relative prospects vs. most foreign currencies, and as of April 30, 87% of the
Fund's assets were either dollar-denominated or hedged into dollars.
<TABLE>
<S> <C>
Dale C. Christensen Laxmi C. Bhandari
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
2
<PAGE>
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: June 21, 1996
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, 1996, the Fund gained 0.81%, vs. a gain
of 1.23% for the Lehman Brothers Intermediate Government Bond Index. The Fund's
30-day annualized current yield as of April 30 was 6.06%. Its total net assets
were $49,729,000.
The reporting period was a volatile one for the bond market, particularly
for U.S. government securities. The first three months (November 1995 through
January 1996) saw a general rise in bond prices, reflecting investors' bullish
expectations for continued slow economic growth and low inflation. The second
half of the period (February through April) saw a reversal in investor
sentiment, prompted by increasing signs of stronger economic growth and hints of
inflationary pressures. The resultant heavy selling pressure pushed government
bond yields sharply higher across the full spectrum of maturities.
We attempted to position the Fund optimally on the yield curve throughout
the period, in general extending its average maturity and duration as rates fell
and assuming a more-defensive stance as rates climbed. We erred on the side of
caution as rates were falling, keeping the Fund's duration and interest-rate
sensitivity below that of its benchmark index. This strategy may have cost the
Fund somewhat in terms of its relative performance, but it is consistent with
our focus on maintaining low volatility in the Fund's net asset value and with
our view that the economy's strength was greater than widely expected.
We made relatively few changes in terms of sector weightings through the
November-through-April period. The Fund's heaviest emphasis throughout was on
government and agency securities, primarily Treasuries, which we believed
represented better values, in general, than either mortgage- or asset-backed
issues. As of April 30, U.S. government and agency securities accounted for over
90% of the portfolio.
<TABLE>
<S> <C>
Dale C. Christensen M. Anthony E. van Daalen
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
3
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
Dear Shareholder: June 21, 1996
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 obligations
with an average maturity of between three and 10 years.
For the six months ended April 30, 1996, the Fund gained 1.46%, vs. a 0.80%
gain in the Lipper New York Intermediate Municipal Debt Funds Average. The
Fund's 30-day annualized current yield as of April 30 was 4.67%. Its total net
assets were $75,232,000.
The performance of New York municipal obligations, and municipal
obligations in general, over the six months tracked closely that of taxable
issues. Bond prices rose during the November-through-January period, supported
by data suggesting continued moderate economic growth and low inflation. Prices
fell, in general, over much of the next three months, as growing signs of a
strengthening economy stirred fears of inflation, reducing the relative
attractiveness of fixed-income securities.
Throughout, we actively managed the Fund's interest-rate exposure, which
allowed the Fund to capture much of the price appreciation afforded by falling
interest rates and to avoid the worst of the damage when rates subsequently
moved higher. One defensive hedging technique we employed with positive results
was the sale of futures contracts. Specifically, we took short positions in U.S.
Treasury futures contracts during the February-through-April span as rates
climbed, which allowed us to shorten the Fund's duration without having to sell
securities.
In terms of credit quality, we maintained the Fund's focus on high-grade
New York municipal bonds throughout the period, since yield spreads between
these and lower-quality securities were relatively narrow and there was
therefore little incentive for taking on greater credit risk. As of April 30,
the Fund's average credit quality was AA. We found attractive values across a
range of sectors, though in general we continued to underweight hospital bonds
due to credit concerns.
Our outlook on the relative prospects of New York's municipal market over
the next several months is, in general, positive. This optimism is based on an
improved tax environment for municipals (the likelihood of tax reform, at least
prior to the November elections, appears to have diminished); projections
calling for a relatively light supply of new issues (which should support prices
of outstanding bonds); and the attractive yields currently offered by New York
municipal bonds vs. those of taxable issues. Set against this backdrop, we will
continue our efforts toward providing shareholders with an attractive level of
income free from federal, New York state and New York City taxes.
<TABLE>
<S> <C>
Dale C. Christensen Sharon B. Parente
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
4
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ -------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
CORPORATE BONDS/NOTES
(26.6%)
$ 2,000,000 ABN-AMRO Bank N.V. New
York Branch Subordinate
Notes (Callable 08/01/04
@ $100.00) (Aa2, NR) 08/01/09 8.250 $ 2,095,000
5,200,000 Banque Paribas
Subordinate Notes (A2, A-) 06/15/07 8.350 5,382,000
1,500,000 Benedek Broadcast Corp.
(Callable 03/01/00 @
$105.938) (Ba3, B+) 03/01/05 11.875 1,565,625
1,000,000 Continental Cablevision,
Inc. Senior Note (NR, BB+) 05/15/06 8.300 1,030,000
500,000 Grancare, Inc. (Callable
09/15/00 @ $104.69) (B2, B) 09/15/05 9.375 487,500
500,000 K-III Communications
Corp. Senior Notes
(Callable 02/01/01 @
$104.25) (Ba3, BB-) 02/01/06 8.500 475,000
1,000,000 Lenfest Communications,
Inc. Senior Note (Ba3, BB+) 11/01/05 8.375 940,000
2,500,000 Loewen Group
International, Inc.
Senior Guaranteed Notes (Ba3, BB+) 04/15/01 7.500 2,465,625
2,000,000 Mediq, Inc. Subordinated
Debenture (Callable
07/15/96 @ $105) (B3, B-1) 07/15/03 7.500 1,705,000
2,500,000 Nationwide Health
Properties, Inc.
Medium-Term Note, Series
B (Baa3, BBB) 04/18/03 7.670 2,484,375
1,000,000 Nationwide Mutual
Insurance Co. Surplus
Notes (A1, A+) 02/15/04 6.500 948,750
1,250,000 Paging Network, Inc.
Senior Subordinate Notes
(Callable 08/01/00 @
$105.06) (B2, B) 08/01/07 10.125 1,290,625
1,500,000 PanAmerican Beverage
Corp. Senior Notes (NR, BBB-) 04/01/03 8.125 1,486,875
1,500,000 Peregrine Investment
Holdings Convertible
Bonds (Euro) (Callable
02/02/97 @ $100) (NR, NR) 12/01/00 4.500 1,250,625
1,000,000 Pueblo Xtra
International, Inc.
Senior Notes (Callable
08/01/98 @ $104.75) (B2, B-) 08/01/98 9.500 922,500
2,350,000 Salomon, Inc. Senior
Notes (Baa1, BBB) 02/01/03 7.500 2,303,000
2,000,000 Seventh Mexican
Acceptance Bonds (Grupo
Sidek) (Euro)# (NR, NR) 08/15/99 10.000 740,000
3,800,000 Spieker Properties LP
Notes (Baa3, BBB) 12/15/00 6.650 3,662,250
500,000 Telewest PLC (Callable
10/01/00 @ $104.81) (B1, BB) 10/01/06 9.625 492,500
2,000,000 360 Communications Corp.
Senior Notes (Ba2, BBB-) 03/01/03 7.125 1,922,500
------------
TOTAL CORPORATE
BONDS/NOTES
(Cost $35,888,915) 33,649,750
------------
MORTGAGE-BACKED
SECURITIES (27.1%)
2,350,000 Asset Securitization
Corp., Series 1996-D2
Class A2 (Nomura
Securities Corp.) (Aa, AA) 02/14/29 7.243 2,261,875
582,825 Bankers Trust Company
Multi-Class Pass-Through
CTFS, Series 1988-1,
Class 1D (Aaa, AAA) 04/01/18 8.625 600,814
666,254 Donaldson, Lufkin, &
Jenrette Acceptance
Trust, Series 1989-1,
Class F (Aaa, AAA) 08/01/19 11.000 706,310
4,300,000 Federal Home Loan Bank
Structured Note
(Callable 07/27/96 @
$100) (Aaa, AAA) 07/27/00 5.000 4,193,575
350,691 Federal Home Loan
Mortgage Corp., Pool
#220014 (Aaa, AAA) 10/01/01 8.750 359,453
2,055,779 Federal Home Loan
Mortgage Corp., REMIC
Series-1589, Class Z (Aaa, AAA) 09/15/23 6.250 1,506,339
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ -------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
MORTGAGE-BACKED SECURITIES (cont'd)
$ 5,659,371 Federal National Mortgage
Association Pool# 250322 (Aaa, AAA) 07/01/25 7.500 $ 5,600,332
494,378 Guaranteed Mortgage Corp.
III, Series-M, Class M1 (Aaa, AAA) 04/01/03 8.500 496,849
3,480,734 Mortgage Capital Funding,
Inc., Series 1995-MCI,
Class A-1A (Aaa, AAA) 05/25/27 7.700 3,528,594
4,000,000 Nomura Asset Securities
Corp., Series 1993-1,
Class B1 (Aaa, NR) 12/15/03 6.680 3,691,875
2,031,109 Nomura Asset Securities
Corp., Series 1994-4B,
Class 4A (Aaa, AAA) 09/25/24 8.300 2,046,659
4,000,000 Resolution Trust Corp.,
94-C1, Class B (Aa, AA+) 06/25/26 8.000 4,035,000
2,200,000 Resolution Trust
Corporation Mortgage
Pass-Through CTFS,
Series-95-C1, Class A-2C (Aaa, AAA) 02/25/27 6.900 2,182,125
1,000,000 Security Pacific Home
Equity, Series 1991,
Class B (Aaa, AAA) 05/15/98 8.850 1,034,260
2,000,000 Shurgard CMO Asset Backed
Pass-Through CTFS,
Series 1, Class 1 (NR, AA) 06/15/01 8.240 2,065,000
------------
TOTAL MORTGAGE-BACKED
SECURITIES
(Cost $34,534,943) 34,309,060
------------
MUNICIPAL BONDS (0.8%)
1,000,000 Los Angeles County,
California Pension
Obligation, Series D, RB
(Cost $1,000,000) (Aaa, AAA) 06/30/05 6.770 973,750
------------
U.S. TREASURY OBLIGATIONS
(30.4%)
22,500,000 U.S. Treasury Notes 11/15/97 8.875 23,463,223
1,000,000 U.S. Treasury Notes 07/15/98 8.250 1,043,800
12,500,000 U.S. Treasury Notes 04/15/99 7.000 12,758,999
1,035,000 U.S. Treasury Notes 02/15/05 7.500 1,089,172
------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $38,459,298) 38,355,194
------------
AGENCY OBLIGATIONS (1.3%)
1,632,859 Small Business
Administration
Guaranteed Development
Participation
Certificate
Debenture Series
1992-20D (Cost
$1,632,859) 04/01/12 8.200 1,694,091
------------
NUMBER
OF SHARES
- ------------
COMMON STOCK (4.6%)
50,000 American Health
Properties, Inc. 1,043,750
45,000 First Industrial Realty
Trust, Inc. 1,074,375
50,000 Healthcare Realty Trust,
Inc. 1,118,750
20,000 Meditrust SBI 677,500
30,000 Universal Health Realty
Income Trust SBI 573,750
59,000 Wellsford Residential
Property Trust SBI 1,283,250
------------
TOTAL COMMON STOCK (Cost
$5,566,762) 5,771,375
------------
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER
OF SHARES RATE% VALUE
- ------------ ------- ------------
<C> <S> <C> <C>
PREFERRED STOCK (7.8%)
40,000 Banesto Holdings Ltd,
Series A (Callable
06/30/12 @ $25) 10.500 $ 1,135,000
50,000 Credit Lyonnaise Capital
SCA ADR (Callable
07/12/03 @ $25) 9.500 1,137,500
30,000 Globalstar
Telecommunications, Ltd.
(Callable 04/19/96 @
$65) (Convertible) 6.500 1,440,000
161,000 Indosuez Holdings SCA ADR
(Callable 12/19/01 @
$25) 10.375 4,186,000
2,000 Time Warner Inc., Series
K (Callable 07/01/06 @
$1,051.30) 10.250 2,000,000
------------
TOTAL PREFERRED STOCK
(Cost $9,957,405) 9,898,500
------------
PAR
- ------------
SHORT-TERM INVESTMENTS
(0.3%)
$ 410,000 Repurchase agreement with
State Street Bank and
Trust Co. dated 04/30/96
at 5.24% to be
repurchased at $410,060
on 05/01/96.
(Collateralized by
$415,000 U.S. Treasury
Note at 6.00% due
08/31/97, with a market
value of $419,669.) (Cost
$410,000) 410,000
------------
TOTAL INVESTMENTS AT
VALUE (98.9%)
(Cost $127,450,182*) 125,061,720
OTHER ASSETS IN EXCESS OF
LIABILITIES (1.1%) 1,416,249
------------
NET ASSETS (100.0%)
(applicable to
12,783,110 shares) $126,477,969
------------
------------
NET ASSETS VALUE,
offering and redemption
price per share
($126,477,969[div]12,783,110) $9.89
-----
-----
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
CMO = Collateralized Mortgage Obligation
CTFS = Certificates
NR = Not Rated
RB = Revenue Bond
REMIC = Real Estate Mortgage Investment Conduit
</TABLE>
- --------------------------------------------------------------------------------
# Illiquid security.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
7
<PAGE>
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS`D'
PAR+ (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ------------- -------- ------ ------------
<C> <S> <C> <C> <C> <C>
BONDS (89.8%)
Argentina (4.2%)
1,000,000(A) Banco de Galicia & Buenos
Aires SA (Callable 11/01/98
at $103.375) (B1, BB-) 11/01/03 9.000 $ 913,126
1,280,000(A) Banco del Suquia (Ba, BB) 07/05/96 10.000 1,254,400
2,000,000(A) Bridas Corp. (B1, BB-) 11/15/99 12.250 2,105,000
------------
4,272,526
------------
Australia (0.8%)
1,000,000 State Electric
Commission -- Victoria (Aa2, NR) 09/18/03 9.250 797,942
------------
Brazil (3.9%)
1,000,000(A) Banco America do Sul (B1, BB-) 10/17/97 10.750 1,008,750
900,000(A) Banco Bandeirantes SA (B1, BB-) 12/20/97 12.000 896,625
1,000,000(A) Banco Braseg AG (B1, NR) 12/07/97 11.250 1,030,000
1,000,000(A) Banco Itamarati SA (B1/NR) 11/23/97 11.625 1,010,000
------------
3,945,375
------------
Canada (1.3%)
2,000,000 Canadian Government Real
Return (Inflation
Indexed) (Aa1/AA+) 12/01/26 4.250 1,307,724
------------
Cayman Islands (2.0%)
2,500,000(A) PIV Investment Financial
(Convertible) (Callable
02/02/97 at $100.00) (A, NR) 12/01/00 4.500 2,075,000
------------
Denmark (13.7%)
54,750,000 Kingdom of Denmark (Aa1, AA) 03/15/06 8.000 9,785,699
780,000(B) Kingdom of Denmark
Mortgage-Backed (Zero
Coupon) (Aa1, NR) 05/30/96 -- 954,081
8,480,000 Kreditforeningen Danmark
(Callable 04/15/01 at
100.00 DKR) (NR/NR) 04/15/04 10.200 1,615,101
8,750,000 Nykredit (Aa, AA) 10/01/22 11.000 1,571,634
------------
13,926,515
------------
Germany (22.0%)
6,000,000 DSL Finance NV (Aaa, NR) 02/21/06 6.000 3,760,533
6,000,000 German Government (Aaa, AAA) 10/14/05 6.500 3,969,430
5,000,000 Land Hessen (Putable
11/29/03 at 100.00 DMK) (Aaa, AAA) 11/29/03 6.000 3,193,592
7,000,000 Landesbank Rheinland
Finance (Aa1, AA+) 04/20/05 7.250 4,759,945
9,500,000 Treuhandanstalt (Aaa, AAA) 09/09/04 7.500 6,716,833
------------
22,400,333
------------
Hong Kong (1.8%)
2,000,000(A) Paliburg International
Finance (Convertible)
(Matures at $121.85) (NR/NR) 02/06/01 3.500 1,890,000
------------
Indonesia (3.4%)
1,500,000(A) Indah Kiat International
Finance Co. (Callable
06/15/01 at $106.25) (Ba2, BB) 06/15/06 12.500 1,530,000
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS`D'
PAR+ (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ ------------- -------- ------ ------------
<C> <S> <C> <C> <C> <C>
BONDS (CONT'D)
Indonesia (cont'd)
2,000,000(A) Polymax (Convertible)
(Putable 02/27/01 at
$125.10) (NR, NR) 02/27/06 2.000 $ 1,905,000
------------
3,435,000
------------
Ireland (7.9%)
5,000,000 Ireland Treasury (Aa, AA) 08/18/06 8.000 8,054,900
------------
Mexico (2.2%)
2,420,000(A) Grupo Simec SA de CV (CAA, CCC) 12/15/98 8.875 1,489,813
2,000,000(A) Seventh Mexican
Acceptance Corp.# (CAA, CCC) 08/15/99 10.000 740,000
------------
2,229,813
------------
Netherlands (4.2%)
7,500,000 Netherlands Government (Aaa, AAA) 01/15/06 6.000 4,295,972
------------
Philippines (1.0%)
1,000,000(A) C.E. Casecnan Water and
Energy Co., Inc. (Ba2/BB) 11/15/10 11.950 977,690
------------
United Kingdom (9.6%)
2,000,000 North American Capital
Corp. (Aa2/AA-) 11/17/03 8.250 2,916,984
4,320,000 United Kingdom Treasury (Aaa, AAA) 03/03/00 9.000 6,860,927
------------
9,777,911
------------
United States (11.8%)
12,000,000 U.S. Treasury Note (Aaa, AAA) 04/30/98 5.875 11,962,499
100,000 U.S. Treasury Note (Aaa, AAA) 06/30/96 6.000 100,167
------------
12,062,666
------------
TOTAL BONDS (Cost
$94,421,946) 91,449,367
------------
PREFERRED STOCK (4.6%)
NUMBER
OF SHARES
- ------------
France (1.1%)
50,000 Credit Lyonnais Capital
SCA ADR 9.500 1,137,500
------------
Luxembourg (2.6%)
100,000 Banque Indosuez Holdings
SCA ADR 10.375 2,600,000
------------
United States (0.9%)
20,000 Globalstar
Telecommunications, Ltd.
(Convertible) 6.500 960,000
------------
TOTAL PREFERRED STOCK
(Cost $4,558,500) 4,697,500
------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR+ MATURITY RATE% VALUE
- ------------ -------- ------ ------------
<C> <S> <C> <C> <C>
SHORT-TERM INVESTMENTS (2.6%)
Repurchase Agreements (0.1%)
Repurchase agreement with J.P. Morgan
Securities, Inc. dated 04/30/96 at 5.10%
to be repurchased at $71,010 on 05/01/96.
$ 71,000 (Collateralized by $67,000 U.S. Treasury
Note 7.875%, due 8/15/01, with a market
value of $72,444.)
$ 71,000
------------
Time Deposits (2.5%)
2,585,000 Bank of Montreal 05/01/96 5.344 2,585,000
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $2,656,000) 2,656,000
------------
TOTAL INVESTMENTS AT VALUE (97.0%) (Cost $101,636,446*) $ 98,802,867
ASSETS IN EXCESS OF OTHER LIABILITIES (3.0%) 3,009,462
------------
NET ASSETS (100.0%) (applicable to 9,351,060 shares) $101,812,329
------------
------------
NET ASSET VALUE, offering and redemption price per share
($101,812,329[div]9,351,060) $10.89
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipts
DKR = Danish Krone
DMK = German Marks
NR = Not Rated
</TABLE>
- --------------------------------------------------------------------------------
`D' Credit ratings given by Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group are unaudited.
* Cost for Federal income tax purposes is $101,647,421.
# Illiquid security.
+ Unless 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.
10
<PAGE>
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR SECURITY DESCRIPTION MATURITY RATE% VALUE
- ----------- ------------------------- -------- ------- ------------
<C> <S> <C> <C> <C>
AGENCY OBLIGATIONS (20.1%)
Small Business Administration (5.1%)
$ 1,272,721 Small Business
Administration Guaranteed
Development Participation
Certificate 07/01/02 6.600 $ 1,271,130
1,237,825 Small Business
Administration Guaranteed
Development Participation
Certificate Debenture
Series 1992-10 B 04/01/02 7.450 1,245,562
------------
Total Small Business
Administration 2,516,692
------------
Other (15.0%)
5,490,000 Government Trust
Certificate Israel State
Series 2 Class 2-E
Registered 05/15/02 9.400 5,881,163
1,500,000 Private Export Funding
Group Secured Notes
Series BB 10/30/98 9.100 1,591,875
------------
Total Other 7,473,038
------------
TOTAL AGENCY OBLIGATIONS
(Cost $10,468,243) 9,989,730
------------
MORTGAGE-BACKED SECURITIES (4.6%)
2,289,392 Federal National Mortgage
Association (Cost
$2,305,166) 08/05/06 7.500 2,262,921
------------
UNITED STATES TREASURY OBLIGATIONS
(72.9%)
U.S. Treasury Notes/Bonds (65.6%)
18,000,000 U.S. Treasury Note 11/15/97 8.875 18,765,178
2,450,000 U.S. Treasury Note 05/15/01 8.000 2,611,675
8,900,000 U.S. Treasury Note 02/15/05 7.500 9,360,218
1,500,000 U.S. Treasury Bond 11/15/12 10.375 1,904,880
------------
Total U.S. Treasury
Notes/Bonds 32,641,951
------------
U.S. Treasury Strip Note (7.3%)
4,800,000 U.S. Treasury Strip Note 11/15/00 -- 3,612,623
------------
TOTAL UNITED STATES
TREASURY OBLIGATIONS
(Cost $36,827,083) 36,254,574
------------
SHORT-TERM INVESTMENTS (0.3%)
159,000 Repurchase agreement with
State Street Bank and
Trust Co. dated 04/30/96
at 5.24% to be
repurchased at $159,023
on 05/01/96.
(Collateralized by
$165,000 U.S. Treasury
Note at 6.00% due
08/31/97, with a market
value of $166,856 (Cost
$159,000) 159,000
------------
TOTAL INVESTMENTS AT VALUE (97.9%) (Cost
$49,759,492*) 48,666,225
OTHER ASSETS IN EXCESS OF LIABILITIES
(2.1%) 1,062,421
------------
NET ASSETS (100%) (applicable to
5,001,803 shares) $49,728,646
------------
------------
NET ASSETS VALUE, offering and
redemption price per share
($49,728,646[div]5,001,803) $9.94
-----
-----
</TABLE>
- --------------------------------------------------------------------------------
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
11
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ -------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
NEW YORK (82.7%)
$ 750,000 Canandaigua New York School
District (FGIC Insured) (Aaa, AAA) 06/01/99 7.125 $ 809,062
1,000,000 Municipal Assistance Corporation
Series #59 (MBIA Insured)
(Callable 07/01/97 @ $102) (Aaa, AAA) 07/01/01 7.750 1,063,750
225,000 Municipal Assistance Corporation
Series #67 (Callable 07/01/99 @
$102) (Aa, AA - ) 07/01/01 7.400 247,219
640,000 Municipal Assistance Corporation
Series #68 (Callable 07/01/99 @
$102) (Aa, AA - ) 07/01/03 7.200 697,600
1,000,000 Municipal Assistance Corporation
Series #67 (Callable 07/01/99 @
$102) (Aa, AA - ) 07/01/04 7.600 1,102,500
150,000 Municipal Assistance Corporation
New York City Series E (Aa, A+) 07/01/05 6.000 160,500
1,045,000 Nassau County General Obligation
Series L (FGIC Insured)
(Escrowed To Maturity) (Aaa, AAA) 11/15/01 6.300 1,131,212
1,350,000 Nassau County General
Improvements Series R (FGIC
Insured) (Aaa, AAA) 11/01/02 5.125 1,373,625
1,000,000 New York City General Obligation
Series B Sub Series B2 (Aaa, AAA) 08/15/03 4.000 1,000,000
1,500,000 New York State Dormitory
Authority Revenue Bond City
University (AMBAC Insured) (Aaa, AAA) 07/01/03 6.000 1,599,375
1,000,000 New York State Dormitory
Authority Revenue Bond City
University (FGIC Insured) (Call-
able 07/01/05 @ $102) (Aaa,AAA) 07/01/14 5.375 945,000
1,000,000 New York New York General
Obligation Series G (Baa1, BBB+) 02/01/06 5.750 977,500
2,000,000 New York City Municipal Water
Finance Authority Water & Sewer
System Revenue Bond (MBIA
Insured) (Aaa, AAA) 06/15/97 7.000 2,100,000
2,000,000 New York State Dormitory
Authority Revenue Bond State
University Educational
Facilities Series A (Baa1, BBB+) 05/15/02 5.4000 1,992,500
3,000,000 New York State Dormitory
Authority Revenue Bond City
University Series A (Baa1, BBB) 07/01/05 5.700 2,977,500
750,000 New York State Dormitory
Authority Revenue Bond Upstate
Community Colleges Series A (Baa1, BBB - ) 07/01/01 5.200 742,500
1,000,000 New York State Dormitory
Authority Revenue Bond Upstate
Community Colleges Series A (Baa1, BBB - ) 07/01/02 5.300 985,000
225,000 New York State Dormitory
Authority Revenue Bond
Unrefunded Balance Series A
(Callable 05/15/99 @ $102) (Baa1, BBB+) 05/15/02 7.000 245,053
2,495,000 New York State Dormitory
Authority Lease Revenue Bond
State University Facilities Is-
sue-Series A (AMBAC Insured) (Aaa, AAA) 07/01/06 5.750 2,597,919
250,000 New York State Dormitory
Authority Revenue Bond State
University Educational
Facilities Series A (Baa1, BBB+) 05/15/04 6.500 264,375
1,750,000 New York State Dormitory
Authority Revenue Bond Fordham
University (Aaa, AAA) 07/01/00 7.200 1,955,625
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ -------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
NEW YORK (CONT'D)
$ 1,000,000 New York State Dormitory
Authority Revenue Bond Upstate
Community Colleges Series A (Baa1, NR) 07/01/00 7.600 $ 1,131,250
775,000 New York State Dormitory
Authority Revenue Bond State
University Educational
Facilities Series A (Baa1, BBB+) 05/15/99 7.000 844,073
3,000,000 New York State Dormitory
Authority Reveue Bond State
University Educational
Facilities Series B (Aaa, BBB+) 05/15/00 7.250 3,352,500
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 1,023,120
2,000,000 New York State General Obligation
Series C (A, A - ) 10/01/03 6.000 2,120,000
1,200,000 New York State General Obligation
Series C (A, A - ) 10/01/04 6.000 1,272,000
2,500,000 New York State Housing Finance
Agency Service Contract
Obligation Revenue Bond Series C (Aaa, AAA) 09/15/01 7.300 2,856,250
1,000,000 New York State Local Government
Assistance Corp Series A (A, A) 04/01/99 6.000 1,042,500
1,000,000 New York State Local Government
Assistance Corp. Series A (A, A) 04/01/05 5.400 1,007,500
2,000,000 New York State Medicare
Facilities Finance Agency
Revenue Bond (Aaa, AAA) 02/15/99 7.800 2,217,500
750,000 New York State Power Authority
Revenue & General Purpose Series
V
(Callable 01/01/98 @ $102) (Aa, AA - ) 01/01/03 7.600 797,812
3,000,000 New York State Thruway Authority
Service Contract Revenue Bond
Highway & Bridge Series A (Aaa, AAA) 01/01/04 6.000 3,217,500
2,500,000 New York State Urban Development
Corporation Correctional Capital
Facilities Series 1 (Aaa, Aaa) 01/01/00 7.500 2,793,750
1,300,000 New York State Urban Development
State Facilities (Baa1, BBB) 04/01/11 5.750 1,256,125
2,000,000 New York City General Obligation
Series J (Baa1, BBB+) 02/15/01 5.100 1,852,500
3,000,000 Port Authority of New York & New
Jersey Consolidated 72nd Series (A1, AA - ) 10/01/02 7.350 3,438,750
880,000 Suffolk County New York Water
Authority
Water-Works Revenue Bond (Aaa, AAA) 06/01/00 6.875 971,300
1,000,000 Triboro Bridge & Tunnel Authority
New York Revenue Bond Series O (Aaa, A+) 01/01/99 7.300 1,087,500
1,000,000 Triborough Bridge & Tunnel
Authority New York Revenue Bond
Series O (Aaa, AAA) 01/01/99 7.700 1,097,500
2,000,000 Triborough Bridge & Tunnel
Authority New York Revenue Bond
Series T (Aaa, A+) 01/01/01 7.000 2,232,500
------------
TOTAL NEW YORK (Cost $61,740,882) 62,208,370
------------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
- ------------ -------------- -------- ------- ------------
<C> <S> <C> <C> <C> <C>
PUERTO RICO (15.5%)
$ 1,000,000 Puerto Rico Commonwealth Aqueduct
& Sewer Authority Revenue Bond (Aaa, AAA) 07/01/07 6.000 $ 1,068,750
300,000 Puerto Rico Commonwealth Aqueduct
& Sewer Authority (Escrowed To
Maturity)
(Callable 07/01/96 @ $100) (Aaa, AAA) 7/01/99 7.875 315,750
3,000,000 Puerto Rico Commonwealth General
Obligation (MBIA Insured) (Aaa, AAA) 07/01/01 5.500 3,135,000
250,000 Puerto Rico Commonwealth General
Obligation (Aaa, AAA) 07/01/08 6.500 278,750
2,000,000 Puerto Rico Commonwealth Highway
Authority Revenue Bond (Aaa, AAA) 07/01/98 8.125 2,202,500
185,000 Puerto Rico Commonwealth Public
Improvement (Callable 07/01/97 @
$102) (NR, A) 07/01/02 7.125 194,250
2,000,000 Puerto Rico Electric Power
Authority Revenue Bond Series 0
(MBIA Insured) (Aaa, AAA) 07/01/99 6.400 2,125,000
500,000 Puerto Rico Electric Power
Authority Revenue Bond Series N
(Callable 07/01/99 @ $101.50) (Baa1, A - ) 07/01/00 6.800 537,500
1,700,000 Puerto Rico Public Building
Authority Revenue Bond Series I
(FGIC Insured) (Aaa, AAA) 07/01/99 6.850 1,821,125
------------
TOTAL PUERTO RICO (Cost
$11,514,938) 11,678,625
------------
SHORT-TERM INVESTMENTS (0.6%)
418,033 Federated Investments NY
Municipal Cash Trust 418,033
4,772 Nuveen Tax Exempt Money Fund 4,772
------------
TOTAL SHORT-TERM INVESTMENTS (Cost $422,805) 422,805
------------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $73,678,625*) 74,309,800
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%) 922,314
------------
NET ASSETS (100.0%) (applicable to 7,352,666 shares) $ 75,232,114
------------
------------
NET ASSET VALUE, offering and redemption price per share
($75,232,114[div]7,352,666) $10.23
------
------
</TABLE>
<TABLE>
<S> <C> <C>
INVESTMENT ABBREVIATIONS
FGIC = Financial Guaranty Insurance Company
LOC = Letter of Credit
MBIA = Municipal Bond Insurance Association
NR = Not Rated
</TABLE>
- --------------------------------------------------------------------------------
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
14
<PAGE>
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS
WARBURG PINCUS INTERMEDIATE NEW YORK
WARBURG PINCUS GLOBAL MATURITY INTERMEDIATE
FIXED INCOME FIXED INCOME GOVERNMENT MUNICIPAL
FUND FUND FUND FUND
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 3,790,603 $ 3,553,774 $ 1,649,822 $ 1,825,868
Dividends 612,189 189,062 0 23,214
-------------- -------------- -------------- --------------
Total investment income 4,402,792 3,742,836 1,649,822 1,849,082
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory 308,304 453,891 133,526 148,951
Administrative services 123,322 99,856 53,410 74,476
Audit 7,748 7,448 7,478 7,239
Custodian/Sub-custodian 24,235 45,242 8,818 10,683
Directors/Trustees 4,972 4,972 4,972 4,972
Insurance 3,482 1,320 3,979 3,232
Legal 31,737 26,221 23,865 28,173
Printing 6,593 4,837 2,892 9,348
Registration 24,933 53,955 17,683 7,678
Transfer agent 29,554 31,277 23,194 19,047
Miscellaneous 6,854 7,289 8,082 6,357
-------------- -------------- -------------- --------------
571,734 736,308 287,899 320,156
Less: fees waived (109,278) (305,112) (127,667) (96,730)
-------------- -------------- -------------- --------------
Total expenses 462,456 431,196 160,232 223,426
-------------- -------------- -------------- --------------
Net investment income 3,940,336 3,311,640 1,489,590 1,625,656
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
FROM INVESTMENTS AND FOREIGN CURRENCY
RELATED ITEMS:
Net realized gain (loss) from
security transactions 1,312,714 (278,093) 1,131,332 480,964
Net realized gain from futures
contracts 0 0 0 265,141
Net realized gain from foreign
currency related items 0 1,646,227 0 0
Net change in unrealized
depreciation from investments and
foreign currency related items (3,664,801) (1,385,678) (2,130,051) (1,284,978)
-------------- -------------- -------------- --------------
Net realized and unrealized
loss from investments and
foreign currency related
items (2,352,087) (17,544) (998,719) (538,873)
-------------- -------------- -------------- --------------
Net increase in net assets
resulting from operations $ 1,588,249 $ 3,294,096 $ 490,871 $ 1,086,783
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIXED INCOME GLOBAL FIXED
FUND INCOME FUND INTERMEDIATE MATURITY GOVERNMENT
------------------------------ ------------------------------ FUND
FOR THE SIX FOR THE SIX ------------------------------------
MONTHS ENDED MONTHS ENDED FOR THE SIX MONTHS
APRIL 30, FOR THE YEAR APRIL 30, FOR THE YEAR ENDED FOR THE YEAR
1996 ENDED 1996 ENDED APRIL 30, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995 (UNAUDITED) OCTOBER 31, 1995 (UNAUDITED) OCTOBER 31, 1995
------------ ---------------- ------------ ---------------- ------------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment
income $ 3,940,336 $ 8,013,396 $ 3,311,640 $ 6,324,709 $ 1,489,590 $ 3,045,785
------------ ------------ ------------ ------------ ------------ ------------
Net realized
gain (loss)
from security
transactions 1,312,714 1,132,052 (278,093) 508,655 1,131,332 514,443
Net realized
gain (loss)
from futures
contracts 0 (606,653) 0 (849,500) 0 0
Net realized
gain (loss)
from foreign
currency
related items 0 49,446 1,646,227 (961,036) 0 0
Net change in
unrealized
appreciation
(depreciation)
from
investments and
foreign
currency
related items (3,664,801) 4,869,743 (1,385,678) 2,015,972 (2,130,051) 2,406,718
------------ ------------ ------------ ------------ ------------ ------------
Net increase
in net
assets
resulting
from
operations 1,588,249 13,457,984 3,294,096 7,038,800 490,871 5,966,946
------------ ------------ ------------ ------------ ------------ ------------
FROM DISTRIBUTIONS:
Dividends from
net investment
income (3,940,336) (8,013,396) (5,169,678) (3,445,878) (1,489,590) (3,045,785)
Distributions
from capital
gains 0 0 0 0 (458,455) 0
------------ ------------ ------------ ------------ ------------ ------------
Net decrease
from
distributions (3,940,336) (8,013,396) (5,169,678) (3,445,878) (1,948,045) (3,045,785)
------------ ------------ ------------ ------------ ------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS:
Proceeds from
sale of shares 32,656,692 47,678,747 70,347,397 42,488,917 10,062,656 26,773,501
Reinvested
dividends 2,674,282 6,555,741 4,421,935 2,941,954 1,350,609 2,288,064
Net asset value
of shares
redeemed (23,483,826) (44,942,286) (34,722,465) (75,776,818) (16,125,348) (22,818,476)
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease)
in net
assets from
capital
share
transactions 11,847,148 9,292,202 40,046,867 (30,345,947) (4,712,083) 6,243,089
------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease)
in net
assets 9,495,061 14,736,790 38,171,285 (26,753,025) (6,169,257) 9,164,250
NET ASSETS:
Beginning of
period 116,982,908 102,246,118 63,641,044 90,394,069 55,897,903 46,733,653
------------ ------------ ------------ ------------ ------------ ------------
End of period $126,477,969 $116,982,908 $101,812,329 $ 63,641,044 $ 49,728,646 $ 55,897,903
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
<PAGE>
<CAPTION>
NEW YORK INTERMEDIATE MUNICIPAL FUND
------------------------------------
FOR THE SIX MONTHS
ENDED FOR THE YEAR
APRIL 30, 1996 ENDED
(UNAUDITED) OCTOBER 31, 1995
------------------ ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment
income $ 1,625,656 $ 3,553,765
------------ ------------
Net realized
gain (loss)
from security
transactions 480,964 818,720
Net realized
gain (loss)
from futures
contracts 265,141 0
Net realized
gain (loss)
from foreign
currency
related items 0 0
Net change in
unrealized
appreciation
(depreciation)
from
investments and
foreign
currency
related items (1,284,978) 1,979,229
------------ ------------
Net increase
in net
assets
resulting
from
operations 1,086,783 6,351,714
------------ ------------
FROM DISTRIBUTIONS:
Dividends from
net investment
income (1,625,656) (3,553,765)
Distributions
from capital
gains (818,543) (47,531)
------------ ------------
Net decrease
from
distributions (2,444,199) (3,601,296)
------------ ------------
FROM CAPITAL SHARE
TRANSACTIONS:
Proceeds from
sale of shares 25,244,937 32,441,402
Reinvested
dividends 1,934,100 3,073,742
Net asset value
of shares
redeemed (23,950,984) (40,620,180)
------------ ------------
Net increase
(decrease)
in net
assets from
capital
share
transactions 3,228,053 (5,105,036)
------------ ------------
Net increase
(decrease)
in net
assets 1,870,637 (2,354,618)
NET ASSETS:
Beginning of
period 73,361,477 75,716,095
------------ ------------
End of period $ 75,232,114 $ 73,361,477
------------ ------------
------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
<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, 1996 ---------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
-------------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.07 $9.61 $10.42 $9.90 $9.61 $8.95
------- -------- -------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .32 .70 .63 .56 .67 .73
Net Gain (Loss) on Securities and
Foreign Currency Related Items (both
realized and unrealized) (.18) .46 (.70) .52 .29 .66
------- -------- -------- ------- ------- -------
Total from Investment Operations .14 1.16 (.07) 1.08 .96 1.39
------- -------- -------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income (.32) (.70) (.65) (.56) (.67) (.73)
Distributions from Capital Gains .00 .00 (.09) .00 .00 .00
------- -------- -------- ------- ------- -------
Total Distributions (.32) (.70) (.74) (.56) (.67) (.73)
------- -------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.89 $ 10.07 $ 9.61 $ 10.42 $ 9.90 $ 9.61
------- -------- -------- ------- ------- -------
------- -------- -------- ------- ------- -------
Total Return 1.38%`D' 12.59% (.60%) 11.63% 10.28% 16.08%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $126,478 $116,983 $102,246 $81,181 $65,095 $61,908
Ratios to average daily net assets:
Operating expenses .75%* .75% .75% .75% .75% .75%
Net investment income 6.39%* 7.25% 6.53% 5.99% 6.82% 7.85%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .18%* .18% .18% .09% .27% .24%
Portfolio Turnover Rate 106.28%`D' 182.93% 179.44% 227.37% 122.04% 150.61%
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-Annualized
* Annualized
See Accompanying Notes to Financial Statements.
17
<PAGE>
<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, 1996 -------------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991+
-------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.04 $10.45 $11.38 $10.68 $10.40 $10.00
------- ------- ------- ------- ------- -------
Income from Investment Operations:
Net Investment Income .27 .99 .34 .54 .86 .59
Net Gain (Loss) on Securities and
Foreign Currency Related Items (both
realized and unrealized) .24 .09 (.64) 1.13 .28 .14
------- ------- ------- ------- ------- -------
Total from Investment Operations .51 1.08 (.30) 1.67 1.14 .73
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income (.66) (.49) (.45) (.85) (.67) (.33)
Distributions from Capital Gains .00 .00 (.14) (.12) (.19) .00
Return of Capital .00 .00 (.04) .00 .00 .00
------- ------- ------- ------- ------- -------
Total Distributions (.66) (.49) (.63) (.97) (.86) (.33)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $10.89 $11.04 $10.45 $11.38 $10.68 $10.40
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total Return 4.66%`D' 10.65% (2.79%) 16.72% 11.08% 7.66%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $101,812 $63,641 $90,394 $61,994 $17,092 $12,160
Ratios to average daily net assets:
Operating expenses .95%* .95% .95% .49% .45% 1.09%
Net investment income 7.30%* 8.18% 6.96% 8.60% 8.66% 7.45%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .67%* .63% .65% 1.44% 2.42% 2.73%
Portfolio Turnover Rate 60.87%`D' 128.70% 178.11% 109.54% 93.14% 185.74%
</TABLE>
- --------------------------------------------------------------------------------
+ The Fund commenced operations on November 1, 1990.
`D' Non-Annualized
* Annualized
See Accompanying Notes to Financial Statements.
18
<PAGE>
<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, 1996 -----------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
-------------- ------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.22 $9.66 $11.03 $11.23 $10.83 $10.24
Income from Investment Operations:
Net Investment Income .28 .59 .54 .59 .68 .76
Net Gain (Loss) on Securities (both
realized and unrealized) (.19) .56 (.73) .34 .41 .59
------ ------- ------- -------- -------- -------
Total from Investment Operations .09 1.15 (.19) .93 1.09 1.35
------ ------- ------- -------- -------- -------
Less Distributions:
Dividends from Net Investment Income (.28) (.59) (.55) (.59) (.68) (.76)
Distributions from Capital Gains (.09) .00 (.63) (.54) (.01) .00
------ ------- ------- -------- -------- -------
Total Distributions (.37) (.59) (1.18) (1.13) (.69) (.76)
------ ------- ------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $9.94 $10.22 $9.66 $11.03 $11.23 $10.83
------ ------- ------- -------- -------- -------
------ ------- ------- -------- -------- -------
Total Return .81%`D' 12.32% (1.78%) 8.79% 10.34% 13.71%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) 4$9,729 $55,898 $46,734 $77,565 $113,336 $89,006
Ratios to Average Daily Net Assets:
Operating expenses .60%* .60% .60% .60% .60% .57%
Net investment income 5.56%* 6.00% 5.43% 5.34% 6.10% 7.29%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .48%* .49% .42% .21% .25% .30%
Portfolio Turnover Rate 92.52%`D' 105.79% 115.37% 108.00% 165.70% 39.13%
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-Annualized
* Annualized
See Accompanying Notes to Financial Statements.
19
<PAGE>
<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, 1996 ---------------------------------------------------
(UNAUDITED) 1995 1994 1993 1992 1991
-------------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.42 $10.07 $10.65 $10.02 $9.88 $9.57
Income from Investment Operations:
Net Investment Income .23 .47 .46 .47 .50 .53
Net Gain (Loss) on Securities (both
realized and unrealized) (.07) .36 (.45) .68 .14 .31
------ ------- ------- ------- ------- -------
Total from Investment Operations .16 .83 .01 1.15 .64 .84
------ ------- ------- ------- ------- -------
Less Distributions:
Dividends from Net Investment Income (.23) (.47) (.46) (.47) (.50) (.53)
Distributions from Capital Gains (.12) (.01) (.13) (.05) .00 .00
------ ------- ------- ------- ------- -------
Total Distributions (.35) (.48) (.59) (.52) (.50) (.53)
------ ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $10.23 $10.42 $10.07 $10.65 $10.02 $9.88
------ ------- ------- ------- ------- -------
------ ------- ------- ------- ------- -------
Total Return 1.46%`D' 8.31% .04% 11.67% 6.63% 9.43%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $75,232 $73,361 $75,716 $69,578 $54,012 $29,016
Ratios to average daily net assets:
Operating expenses .60%* .60% .60% .58% .55% .55%
Net investment income 4.35%* 4.50% 4.41% 4.50% 4.99% 5.84%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .26%* .26% .20% .20% .40% .65%
Portfolio Turnover Rate 47.94%`D' 105.17% 167.09% 115.98% 47.79% 66.53%
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-Annualized
* Annualized
See Accompanying Notes to Financial Statements.
20
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Fixed Income Funds are comprised of the Warburg Pincus
Fixed Income Fund (the 'Fixed Income Fund') and the 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 the Warburg
Pincus Global Fixed Income Fund (the 'Global Fixed Income Fund') and the 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; and 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
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 mean price. In the absence of market quotations, investments are
generally valued at fair value as determined by or under the direction of the
Fund's governing Board. Short-term investments that mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value.
The books and records of the 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
at the end of the period. 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 a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. The cost
21
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 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 and paid 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.
No provision is made for Federal taxes as it is each Fund's intention to
continue to qualify for and elect the tax treatment applicable to regulated
investment companies under the Internal Revenue Code and make the requisite
distributions to its shareholders which will be sufficient to relieve it from
Federal income and excise taxes.
Each Fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, a Fund acquires an underlying security
subject to an obligation of the seller to repurchase. The value of the
underlying security collateral will be maintained at an amount at least equal to
the total amount of the purchase obligation, including interest. The collateral
is in the Fund's possession.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts 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 these
estimates.
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of the transfer
agent expense. For the period ended April 30, 1996, the Funds received credits
or reimbursements under this arrangement as follows:
<TABLE>
<CAPTION>
FUND AMOUNT
- ----------------------------------------------------------------------- -------
<S> <C>
Fixed Income $ 5,285
Global Fixed Income 3,928
Intermediate Government 2,310
New York Municipal 3,186
-------
$14,709
-------
-------
</TABLE>
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), a wholly owned subsidiary of
Warburg, Pincus Counsellors G.P. ('Counsellors G.P.'), serves as each Fund's
22
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
investment adviser. For its investment advisory services, Warburg 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, 1996, investment advisory fees and
waivers were as follows:
<TABLE>
<CAPTION>
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
- ----------------------------------------------- ------------ --------- ------------
<S> <C> <C> <C>
Fixed Income $308,304 $ (86,661) $221,643
Global Fixed Income 453,891 (268,914) 184,977
Intermediate Government 133,526 (104,464) 29,062
New York Municipal 148,951 (74,835) 74,116
</TABLE>
Counsellors Funds Service, Inc. ('CFSI'), a wholly owned subsidiary of
Warburg, and PFPC Inc. ('PFPC'), an indirect, wholly owned subsidiary of PNC
Bank Corp. ('PNC'), serve as each Fund's co-administrators. For administrative
services, CFSI currently receives a fee calculated at an annual rate of .10% of
each Fund's average daily net assets. For the six months ended April 30, 1996,
administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE
- ------------------------------------------------------------- ---------------------
<S> <C>
Fixed Income $61,661
Global Fixed Income 45,389
Intermediate Government 26,705
New York Municipal 37,238
</TABLE>
For its administrative services, PFPC currently receives a fee calculated
at an annual rate of .10% of the average daily net assets of the Fixed Income
Fund, the Intermediate Government Fund and the New York Municipal Fund. For the
Global Fixed Income Fund, PFPC currently receives a fee calculated at an annual
rate of .12% of the first $250 million in average daily net assets, .10% of the
next $250 million in average daily net assets, .08% of the next $250 million in
average daily net assets and .05% of average daily net assets over $750 million.
For the six months ended April 30 1996, 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 $61,661 $(17,332) $44,329
Global Fixed 54,467 (32,270) 22,197
Intermediate Government 26,705 (20,893) 5,812
New York Municipal 37,238 (18,709) 18,529
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly owned subsidiary of
Warburg, serves as each Fund's distributor. No compensation is paid by the Funds
to CSI for distribution services.
23
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
3. INVESTMENTS IN SECURITIES
For the six months ended April 30, 1996, purchases and sales of investment
securities (excluding short-term investments) and United States 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 $55,818,625 $27,835,452 $85,878,450 $100,265,857
Global Fixed Income 74,963,143 49,867,894 11,974,688 0
Intermediate Government 0 0 48,051,456 51,097,514
New York Municipal 40,752,769 35,187,130 0 0
</TABLE>
At April 30, 1996, the net unrealized appreciation from investments for
those securities having an excess of value over cost and net unrealized
depreciation from investments for those securities 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 $1,040,480 $(3,428,942) $ (2,388,462)
Global Fixed Income 909,946 (3,754,500) (2,844,554)
Intermediate Government 82,770 (1,176,037) (1,093,267)
New York Municipal 1,168,532 (537,357) 631,175
</TABLE>
4. FORWARD FOREIGN CURRENCY CONTRACTS
The Fixed Income Fund and 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 Funds will enter into forward
contracts primarily for hedging purposes. 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, 1996, the Global Fixed Income Fund had the following open
forward foreign currency contracts:
24
<PAGE>
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
4. FORWARD FOREIGN CURRENCY CONTRACTS (CONT'D)
<TABLE>
<CAPTION>
FORWARD FOREIGN UNREALIZED
CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN (LOSS)
- -------------- ---------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Australian
Dollars 05/30/96 1,242,250 $ 978,893 $ 974,172 $ 4,721
French Franc 05/30/96 1,195,000 233,262 231,625 1,637
German Mark 05/30/96 30,825,000 20,346,535 20,173,429 173,106
Irish Punt 05/30/96 5,157,500 8,084,484 8,022,491 61,993
Irish Punt 05/30/96 292,500 458,500 454,984 3,516
Italian Lira 05/30/96 116,500,000 74,636 74,406 230
Netherlands
Gilder 05/30/96 12,614,000 7,530,746 7,380,061 150,685
Spanish Peseta 05/30/96 6,725,000 53,164 52,827 337
Canadian
Dollar 06/03/96 1,822,228 1,328,542 1,339,381 (10,839)
Danish Krone 07/01/96 74,531,000 12,929,309 12,621,463 307,846
----------- ----------- -------
$52,018,071 $51,324,839 $693,232
----------- ----------- -------
----------- ----------- -------
</TABLE>
5. FUTURES CONTRACTS
Each Fund may enter into futures contracts for hedging purposes to the
extent permitted by its investment policies and objectives. To enter into a
futures contract, a Fund must make a deposit of an initial margin with its
custodian in a segregated account. Subsequent payments, which are dependent on
the daily fluctuations in the value of the underlying instrument, are made or
received by a Fund each day (daily variation margin) and are recorded as
unrealized gains or losses until the contracts are closed. When the contract is
closed, a Fund records a realized gain or loss equal to the difference between
the proceeds from (or cost of) the closing transactions and a Fund's basis in
the contract. Risks of entering into futures contracts include the possibility
that a change in the value of the contract may not correlate with the changes in
the value of the underlying instruments. During the period, the New York
Municipal Fund entered into futures contracts which resulted in net realized
gains of $265,141 for the six months ended April 30, 1996. At April 30, 1996,
the New York Municipal Bond Fund had open futures contracts with recorded net
unrealized gains of $39,843.
6. 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 billion shares are designated Series 2
Shares (the Advisor 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 designated Series 2 Shares (the Advisor Shares). At April 30, 1996,
no Advisor Shares were outstanding.
25
<PAGE>
<PAGE>
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
GLOBAL FIXED INTERMEDIATE
FIXED INCOME FUND INCOME FUND GOVERNMENT FUND
------------------------- ------------------------- -------------------------
FOR THE SIX FOR THE SIX FOR THE SIX
MONTHS FOR THE MONTHS FOR THE MONTHS FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR
APRIL 30, ENDED APRIL 30, ENDED APRIL 30, ENDED
1996 OCTOBER 31, 1996 OCTOBER 31, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995 (UNAUDITED) 1995
------------ ----------- ------------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 3,227,425 4,918,036 6,364,023 4,066,768 984,770 2,723,498
Shares issued to
shareholders on
reinvestment of dividends 264,253 672,751 407,782 281,288 131,051 230,993
Shares redeemed (2,326,614) (4,609,035) (3,185,089) (7,231,335) (1,581,172) (2,323,291)
------------ ----------- ------------ ----------- ------------ -----------
Net increase (decrease) in
shares outstanding 1,165,064 981,752 3,586,716 (2,883,279) (465,351) 631,200
------------ ----------- ------------ ----------- ------------ -----------
------------ ----------- ------------ ----------- ------------ -----------
<CAPTION>
NEW YORK
MUNICIPAL FUND
------------------------
FOR THE SIX
MONTHS FOR THE
ENDED YEAR
APRIL 30, ENDED
1996 OCTOBER 31,
(UNAUDITED) 1995
----------- -----------
<S> <C> <C>
Shares sold 2,427,838 3,181,012
Shares issued to
shareholders on
reinvestment of dividends 186,033 299,821
Shares redeemed (2,303,106) (3,957,382)
----------- -----------
Net increase (decrease) in
shares outstanding 310,765 (476,549)
----------- -----------
----------- -----------
</TABLE>
7. NET ASSETS
Net assets at April 30, 1996, consisted of the following:
<TABLE>
<CAPTION>
FIXED INCOME GLOBAL FIXED INTERMEDIATE NEW YORK
FUND INCOME FUND GOVERNMENT FUND MUNICIPAL FUND
------------ ---------------- --------------- --------------
<S> <C> <C> <C> <C>
Capital contributed, net $128,655,434 $104,010,782 $ 49,695,545 $ 73,808,689
Accumulated net investment income
(loss) (66,850) 1,705,984 (5,346) 0
Accumulated net realized gain (loss)
from security transactions 277,847 (1,811,428) 1,131,714 746,470
Net unrealized appreciation
(depreciation) from investments and
foreign currency related items (2,388,462) (2,093,009) (1,093,267) 676,955
------------ ---------------- --------------- --------------
Net assets $126,477,969 $101,812,329 $ 49,728,646 $ 75,232,114
------------ ---------------- --------------- --------------
------------ ---------------- --------------- --------------
</TABLE>
26
<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
<PAGE>
Further information is contained in the Prospectus, which must
precede or accompany this report.
[Logo]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874)
COUNSELLORS SECURITIES INC., DISTRIBUTOR WPBDF-3-0496
- --------------------------------------------------------------------------------
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as `D'
The division sign shall be expressed as [div]
