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ANNUAL
REPORT
October 31, 1999
WARBURG PINCUS
INTERMEDIATE MATURITY GOVERNMENT FUND
/ /
WARBURG PINCUS
NEW YORK INTERMEDIATE MUNICIPAL FUND
/ /
WARBURG PINCUS
FIXED INCOME FUND
/ /
WARBURG PINCUS
GLOBAL FIXED INCOME FUND
More complete information about the Funds, including charges and expenses, is
provided in the Prospectus, which must precede or accompany this document and
which should be read carefully before investing. You may obtain additional
copies by calling 800-WARBURG(800-927-2874) or by writing to Warburg Pincus
Funds, P.O. Box 9030, Boston, MA 02205-9030.
Credit Suisse Asset Management Securities, Inc., Distributor, 466 Lexington
Avenue, New York, NY 10017. Telephone: 800-927-2874. Warburg Pincus Funds are
advised by Credit Suisse Asset Management, LLC.
<PAGE>
From time to time, the Funds' investment adviser and co-administrators may waive
some fees and/or reimburse some expenses, without which performance would be
lower. Waivers and/or reimbursements are subject to change.
Returns are historical and include change in share price and reinvestment of
dividends and capital gains. Past performance cannot guarantee future results.
Returns and share price will fluctuate, and redemption value may be more or less
than original cost.
International investing entails special risk considerations, including currency
fluctuations, lower liquidity, economic and political risks, and differences in
accounting methods.
The views of the Funds' management are as of the date of the letters and
portfolio holdings described in this document are as of October 31, 1999; these
views and portfolio holdings may have changed subsequent to these dates. Nothing
in this document is a recommendation to purchase or sell securities.
Fund shares are not deposits or other obligations of Credit Suisse Asset
Management, LLC ("CSAM LLC") or any affiliate, are not FDIC insured and are not
guaranteed by CSAM LLC or any affiliate. Fund investments are subject to
investment risks, including loss of your investment.
<PAGE>
Warburg Pincus Intermediate Maturity Government Fund
Annual Investment Adviser's Report -- October 31, 1999
- --------------------------------------------------------------------------------
December 9, 1999
Dear Shareholder:
For the 12 months ended October 31, 1999, the Common Class shares of Warburg
Pincus Intermediate Maturity Government Fund had a loss of 0.05%, vs. a gain of
0.81% for the Lehman Intermediate Government Bond Index.
The reporting period was a lackluster one for the high-quality bonds in which
the fund invests, reflecting investors' decreased emphasis on safety and
liquidity. A rebound in emerging-market economies, combined with stabilizing
global financial conditions generally, helped reverse a "flight to quality" that
had strongly benefited U.S. government bonds in the months prior to the start of
the period. These bonds were also hampered by better-than-expected domestic
growth. The strong economy raised the specter of potential inflation, prompting
the Federal Reserve to raise rates in June and August (the Fed raised rates
again in November, in effect "taking back" the third of the three rate cuts it
made in 1998). All told, bond yields rose along the length of the yield curve,
with the yield on the U.S. Treasury's 30-year bond standing at 6.16% at the end
of October, up from 5.15% at the start of the period.
Against this backdrop, the fund had a marginal loss and modestly lagged
behind its benchmark for the 12 months. The fund's performance largely reflected
its interest-rate sensitivity. The fund's duration was somewhat longer than that
of its benchmark during much of the period, reflecting our desire to maintain
what we viewed as attractive levels of risk-adjusted yield. This stance cost the
fund in terms of total return (i.e., bond-price changes plus coupon income),
however, given the rise in bond yields during the period.
With respect to sector emphasis, we remained underweighted in Treasury bonds
in favor of government-agency bonds, which we viewed as generally more
attractive. Our agency weighting included a significant position in
mortgage-backed bonds (e.g., Fannie Mae bonds), a weighting we raised over the
course of the period. This contributed positively to the fund's return, as these
issues had relatively good performance, supported by declining worries over
prepayment risk.
Going forward, we remain devoted to providing what we deem to be attractive
levels of yield while maintaining a high-quality portfolio. As always, we will
continue to make duration and sector adjustments to the fund based on
risk-vs.-reward considerations.
M. Anthony E. van Daalen
Portfolio Manager
1
<PAGE>
Warburg Pincus Intermediate Maturity Government Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Common Class shares of
Warburg Pincus Intermediate Maturity Government Fund
since Inception as of October 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Intermediate Maturity Government Fund (the
"Fund")from August 22, 1988 (inception) to October 31, 1999, compared to the
Lehman Intermediate Government Bond Index ("LIG")* for the same time period.
Past performance does not predict future results.
[GRAPH OMITTED]
In the printed version of the document, a line graph appears which depicts the
following plot points:
Fund LIG
08/15/97 10000 10000
08/31/97 9989 9961.9
09/30/97 10104.9 10070.2
10/31/97 10221.1 10187.5
11/30/97 10227.2 10209.9
12/31/97 10325.4 10293.6
01/31/98 10453.4 10428
02/28/98 10425.2 10417
03/01/98 10462.7 10449.4
04/01/98 10499.3 10499.3
05/01/98 10579.2 10571.7
06/01/98 10647.9 10642.6
07/01/98 10663.9 10683.6
08/01/98 10869.7 10885.8
09/01/98 11139.3 11139.7
10/01/98 11120.3 11158.2
11/01/98 11089.2 11124.1
12/01/98 11139.1 11167.3
01/01/99 11174.7 11217.1
02/01/99 11000.4 11063.3
03/01/99 11079.6 11136.7
04/01/99 11091.8 11166.9
05/01/99 11006.4 11098.5
06/01/99 10998.7 11114.4
07/01/99 10989.9 11116
08/01/99 10981.1 11131.5
09/01/99 11074.4 11227.3
10/01/99 11078.9 11249.7
Fund
----
1 Year Total Return (9/30/98 to 9/30/99) .......................... -0.35%
3 Year Average Annual Total Return (9/30/96 to 9/30/99) ........... 5.87%
5 Year Average Annual Total Return (9/30/94 to 9/30/99) ........... 6.58%
10 Year Average Annual Total Return (9/30/89 to 9/30/99) .......... 7.28%
- ------------
* The Lehman Intermediate Government Bond Index is an unmanaged index (with no
defined investment objective) of intermediate-term government bonds, and is
calculated by Lehman Brothers Inc.
2
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Annual Investment Adviser's Report -- October 31, 1999
- --------------------------------------------------------------------------------
December 9, 1999
Dear Shareholder:
For the 12 months ended October 31, 1999, the Common Class shares of Warburg
Pincus New York Intermediate Municipal Fund had a loss of 0.26%, vs. a gain of
1.01% for the Lehman Brothers Five-Year Municipal Bond Index.
Municipal bonds struggled with their taxable counterparts during the 12
months, hampered by inflation and interest-rate worries. The economy showed
surprising strength, which raised the specter of potential inflation and
prompted the Federal Reserve to announce a bias in favor of raising interest
rates (the Fed in fact raised rates in June, August and shortly after the
period's close). The general uncertainty weighed on bond prices, despite
continued benign reported inflation.
Against this backdrop, the fund experienced a marginal loss, hindered by the
difficult environment for bonds generally. The fund modestly trailed its
benchmark, largely because we kept the fund's duration somewhat longer than that
of its benchmark during much of the period. While this decision hampered the
fund in terms of total return (i.e., bond-price changes plus coupon income),
given the rise in interest rates during the period, it reflected our desire to
provide what we deemed to be attractive levels of risk-adjusted after-tax yield.
Our general strategy during the period was largely unchanged. We remained
focused on high-quality bonds (the fund's average credit quality through the
period was AA), since we continued to view yield spreads between high-quality
and lower-quality debt as too slim to justify the added credit risk associated
with the latter. We also remained diversified by sector and issuer, holding a
mix of general-obligation and essential-service revenue bonds.
Going forward, we have a positive outlook on the prospects for the New York
municipal bond market. Our optimism is founded on the potential for a
more-favorable supply/demand dynamic. We believe that the demand for these
issues should remain, at minimum, supportive, given the state's large and
growing base of highly-taxed individuals, many of which face a "triple tax" rate
of nearly 50%. At the same time we feel that supply could continue to trend
lower. New York municipal-debt issuance for 1999 is projected to be
significantly below 1998's issuance, though still high in historical terms. In
addition, the economy's health is boosting municipalities' coffers at the state
3
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
and local level, lowering the need for debt financing (that said,
municipalities' improved health has also made voters more amenable to approving
bond issuances, a situation that merits continued monitoring). Set within this
environment, we will continue to strive to provide what we deem to be attractive
levels of risk-adjusted after-tax yield.
Sharon B. Parente Patrick A. Bittner
Co-Portfolio Manager Co-Portfolio Manager
A portion of the fund's income may be subject to state and city taxes or the
federal alternative minimum tax.
4
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Common Class shares of
Warburg Pincus New York Intermediate Municipal Fund
since Inception as of October 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus New York Intermediate Municipal Fund (the
"Fund")from April 1, 1987 (inception) to October 31, 1999, compared to the
Lehman 5-year Municipal Bond Index ("LBMUNI")* for the same time period. Past
performance does not predict future results.
[GRAPH OMITTED]
In the printed version of the document, a line graph appears which depicts the
following plot points:
[INSERT PLOT POINTS]
Fund
----
1 Year Total Return (9/30/98 to 9/30/99) ........................... 0.24%
3 Year Average Annual Total Return (9/30/96 to 9/30/99) ............ 4.24%
5 Year Average Annual Total Return (9/30/94 to 9/30/99) ............ 4.94%
10 Year Average Annual Total Return (9/30/89 to 9/30/99) ........... 5.98%
- ---------
* The Lehman 5-year Municipal Bond Index is an unmanaged index of municipal
bonds that is compiled by Lehman Brothers Inc. and has no defined investment
objective. The inception date of this index was 01/01/88. The Average Annual
Total Return for the period 01/01/88 to 10/31/99 for the Fund was 5.87% and
for Lehman 5-year Municipal bond Index was 6.55%
5
<PAGE>
Warburg Pincus Fixed Income Fund
Annual Investment Adviser's Report -- October 31, 1999
- --------------------------------------------------------------------------------
December 9, 1999
Dear Shareholder:
For the 12 months ended October 31, 1999, the Common Class shares of Warburg
Pincus Fixed Income Fund had a return of 0.92%, vs. a return of 0.98% for the
Lehman Brothers Intermediate Government/Corporate Bond Index.
The period was a mostly difficult one for the U.S. bond market, reflecting
persistent strength in the economy. The economy's health prompted worries that
the Federal Reserve, which raised interest rates in June and August, would
continue to raise rates in order to contain potential inflation. While actual
inflation remained subdued, these worries (and the Fed's actions) weighed on
bond prices, and most major bond indexes had only slim gains in terms of total
return, i.e., bond-price changes plus coupon income. One area of relative
strength for the bond market was high-yield, or lower-quality, bonds, which were
aided by optimism over credit upgrades (these bonds, however, struggled over the
latter part of the period).
Set against this backdrop, the fund had a marginal gain, restrained by the
general weakness in the high-quality bonds emphasized by the fund. The fund
performed in line with its benchmark, largely reflecting our decision to keep
the fund's duration fairly close to that of its benchmark over much of the
period. While we remained optimistic regarding the longer-term outlook for
inflation and interest rates, we were reluctant to extend duration materially,
given near-term uncertainties regarding the Fed's monetary policy.
In terms of sector exposure, we remained well-diversified through the period,
with a continued bias in favor of corporate and mortgage-backed bonds. In
general, our preference for these issues reflected our view that they continued
to offer attractive yields compared to Treasury bonds with similar maturities,
with relatively little added credit risk (we maintained a strong bias in favor
of investment-grade corporate and mortgage-backed bonds). That said, we
continued to view Treasuries as attractive from a total-return perspective,
given the price support they stand to receive over the longer term from a
potential declining supply of these issues (i.e., due to the government's
declining borrowing needs).
6
<PAGE>
Warburg Pincus Fixed Income Fund
Annual Investment Adviser's Report (cont'd} -- October 31, 1999
- --------------------------------------------------------------------------------
Going forward, we plan to maintain a diversified mix of Treasury and
non-Treasury issues, adjusting our sector exposure as we deem appropriate on a
risk-vs.-reward basis. Overall, our focus will remain on high-quality,
intermediate-term bonds with what we deem to be attractive risk-adjusted yields
and potential for longer-term appreciation.
M. Anthony E. van Daalen
Portfolio Manager
7
<PAGE>
Warburg Pincus Fixed Income Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Common Class shares of Warburg Pincus
Fixed Income Fund since Inception as of October 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Fixed Income Fund (the "Fund") from August 17,
1987 (inception) to October 31, 1999, compared to the Lehman Intermediate
Government/Corporation Bond Index ("LIGC")* for the same time period. Past
performance does not predict future results.
[GRAPH OMITTED]
In the printed version of the document, a line graph appears which depicts the
following plot points:
Fund LIGC
07/03/96 10000 10000
07/31/96 10014.1 10029.7
08/01/96 10058.2 10037.6
09/01/96 10213.7 10177.5
10/01/96 10393.1 10357.3
11/01/96 10573.2 10494
12/01/96 10565.2 10426.8
01/01/97 10637.9 10467.4
02/01/97 10703.2 10487.4
03/01/97 10615.2 10415.1
04/01/97 10709 10537.5
05/01/97 10812.6 10625
06/01/97 10938.9 10722
07/01/97 11209.8 10940.2
08/01/97 11128.9 10885.2
09/01/97 11272.2 11011.8
10/01/97 11381.1 11133.9
11/01/97 11387.9 11158.3
12/01/97 11466.5 11247.6
01/01/98 11628.2 11395
02/01/98 11595.6 11386.4
03/01/98 11616.5 11423
04/01/98 11667.6 11480.2
05/01/98 11763.3 11564
06/01/98 11844.5 11638.2
07/01/98 11839.7 11679.3
08/01/98 11971.2 11862.9
09/01/98 12161.5 12160.9
10/01/98 12086.1 12149
11/01/98 12147.7 12148
12/01/98 12168.4 12196.9
01/01/99 12202.5 12263.8
02/01/99 12060.9 12083.5
03/01/99 12150.2 12173.7
04/01/99 12178.1 12211.1
05/01/99 12089.2 12117.2
06/01/99 12082 12125.5
07/01/99 12062.6 12114.6
08/01/99 12043.3 12123.8
09/01/99 12149.3 12236.6
10/01/99 12168.7 12268.4
11/01/99 12174.8 12283.1
Fund
----
1 Year Total Return (9/30/98 to 9/30/99) ........................... 0.14%
3 Year Average Annual Total Return (9/30/96 to 9/30/99) ............ 6.23%
5 Year Average Annual Total Return (9/30/94 to 9/30/99) ............ 7.28%
10 Year Average Annual Total Return (9/30/89 to 9/30/99) ........... 7.38%
- ----------
* The Lehman Intermediate Government/Corporate Bond Index is an unmanaged index
(with no defined investment objective) of intermediate-term government and
corporate bonds, and is calculated by Lehman Brothers Inc.
8
<PAGE>
Warburg Pincus Global Fixed Income Fund
Annual Investment Adviser's Report -- October 31, 1999
- --------------------------------------------------------------------------------
December 9, 1999
Dear Shareholder:
For the 12 months ended October 31, 1999, the Common Class shares of Warburg
Pincus Global Fixed Income Fund had a return of 2.18%, vs. returns of 1.34% for
the Salomon Brothers World Government Bond Index (Currency-Hedged), 0.53% for
the Lehman Brothers Aggregate Bond Index and 2.00% for a Composite Benchmark.
The reporting period was, on the whole, a less-than-stellar one for global
bond markets, though performance varied significantly by region and sector. Most
emerging-market bonds had solid performance, boosted by optimism that these
markets had turned the corner economically and financially. Within developed
markets, European bonds generally had losses, beset by inflation and
interest-rate uncertainties (for dollar-based, or unhedged, investors, these
losses were exacerbated by the weakness in the euro and other European
currencies vs. the dollar during the period). The U.S. bond market also
struggled, due to worries over interest rates, though high-yield domestic bonds
fared relatively well, reflecting a more-supportive backdrop for high-yield debt
in general. Elsewhere of note, Japanese bonds had middling returns in
local-currency terms, though these bonds had significant gains in dollar terms
as the yen strengthened vs. the dollar over the 12 months.
Against this backdrop, the fund had a positive yet very modest return,
restrained by the weakness in the high-quality debt that continued to comprise
the bulk of the fund. The fund performed well compared to its benchmarks,
however, supported by its relatively large weighting in high-yield bonds,
including emerging-market bonds, through much of the period. The fund was also
helped by our currency strategies. We maintained a strong bias in favor of the
dollar through the 12 months, which proved beneficial, as most major currencies
weakened vs. the dollar during the period (we also had some timely exposure to
the yen and South Africa's rand).
In terms of sector/regional allocation, we continued to hold a diversified
mix of government, corporate and mortgage-backed issues representing a wide
range of countries. Our government holdings included U.S. Treasuries as well as
sovereign debt from Denmark, Norway and Japan. In the corporate and
mortgage-backed segments, the bulk of our emphasis remained on the U.S.,
reflecting our positive view on the U.S. economy. We also held some corporate
and mortgage-backed bonds from Europe, whose economic prospects seem to be
improving (though forecasts vary widely by country). Our European holdings
included a U.K. high-yield
9
<PAGE>
Warburg Pincus Global Fixed Income Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
telecommunications issue and a Swedish mortgage-backed bond that we believe have
good total-return prospects.
Elsewhere, we maintained a weighting in emerging-markets (approximately 9% of
the Fund as of October 31, 1999), whose fundamentals generally seem to continue
to improve. Our holdings here were primarily Latin American and South African
bonds that we believe stand to benefit from more-supportive macroeconomic
backdrops (e.g., falling interest rates and rising exports) in these areas.
Looking ahead, we believe that the global economy could continue to improve
(perhaps significantly, if Japan's recovery proves sustainable), potentially
resulting in a rise in inflation and/or interest rates in certain areas. We
therefore will likely maintain an overall focus on intermediate-term bonds,
which are less sensitive to interest-rate fluctuations compared to longer-term
securities. That said, a stronger global economy stands to benefit certain
bonds, in particular emerging-market and high-yield bonds, which are likely to
remain a meaningful part of the fund. Overall, we will continue to strive to
provide a diversified portfolio of bonds and currencies offering what we deem to
be attractive levels of risk-adjusted total return.
Charles C. Van Vleet
Portfolio Manager
International investing entails special risk considerations, including
currency fluctuations, lower liquidity, economic and political risks, and
differences in accounting methods. These are detailed in the Fund's Prospectus,
which should be read carefully before investing.
10
<PAGE>
Warburg Pincus Global Fixed Income Fund
Annual Investment Adviser's Report -- October 31, 1999 (cont'd)
- --------------------------------------------------------------------------------
Growth of $10,000 Invested in Common Class shares of Warburg Pincus
Global Fixed Income Fund since Inception as of October 31, 1999
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Global Fixed Income Fund (the "Fund") from
November 1, 1990 (inception) to October 31, 1999, compared to the Salomon
Brothers World Government Bond Index (Currency-Hedged) ("Salomon"),* the Lehman
Aggregate Bond Index ("Lehman"),** and a Composite Benchmark ("Composite")***
for the same time period. Past performance does not predict future results.
[GRAPH OMITTED]
In the printed version of the document, a line graph appears which depicts the
following plot points:
Fund Solomon Lehman Composite
8/12/96 10000 10000 10000 10000
08/31/96 10018.3 10038.9 9983.3 10058.8
09/01/96 10211 10079.7 10157.3 10252.8
10/01/96 10340.6 10268.2 10382.3 10438.3
11/01/96 10488.7 10403.6 10560.1 10627.2
12/01/96 10521.6 10319.5 10462 10597.6
01/01/97 10559.8 10043.8 10494 10670.6
02/01/97 10664.7 9968.66 10520.2 10732.3
03/01/97 10617 9893 10403.7 10637
04/01/97 10665.4 9806.33 10559.5 10772.8
05/01/97 10742.7 10072.8 10659.2 10874.9
06/01/97 10858.8 10192.9 10785.8 11028.5
07/01/97 10956.8 10113.6 11076.7 11279.6
08/01/97 10917.6 10107.8 10982.3 11238
09/01/97 11005.8 10323.1 11144.3 11416.6
10/01/97 10876.1 10537.3 11306 11535.9
11/01/97 10835.8 10375.6 11358 11606.6
12/01/97 10708 10344.4 11472.4 11730.4
01/01/98 10687.6 10445 11619.7 11884.5
02/01/98 10791.3 10529.9 11611.1 11924.4
03/01/98 10791.3 10425.6 11651 11999.1
04/01/98 10886.2 10592.3 11711.8 12061.3
05/01/98 10928.7 10617.1 11823.1 12186.9
06/01/98 10917.8 10632.8 11923.2 12264.5
07/01/98 10971.3 10647 11948.6 12327.8
08/01/98 11034.9 10937 12143 12417.9
09/01/98 11279.9 11518.5 12427.4 12668.4
10/01/98 11258.4 11859.7 12361.7 12591.8
11/01/98 11471.2 11691.4 12431.9 12767
12/01/98 11548.1 11927.6 12469.3 12767.5
01/01/99 11624.3 11818.1 12558.4 12894.8
02/01/99 11439.5 11438.2 12339.1 12736.7
03/01/99 11526.4 11467.3 12407.5 12852.5
04/01/99 11700.5 11462.6 12446.8 12965.5
05/01/99 11471.1 11269.4 12337.8 12879.2
06/01/99 11362.2 11071.9 12298.4 12780.5
07/01/99 11286 11343.2 12245.5 12748.5
08/01/99 11264.6 11395.3 12239.3 12733.2
09/01/99 11384 11573.1 12381.2 12819.8
10/01/99 11417 11567.3 12427 12842.9
11/01/99 11460.4 11445.8 12426.2 12894.2
Fund
----
1 Year Total Return (9/30/98 to 9/30/99) .............................. 1.59%
3 Year Average Annual Total Return (9/30/96 to 9/30/99) ............... 4.30%
5 Year Average Annual Total Return (9/30/94 to 9/30/99) ............... 6.85%
Average Annual Total Return Since Inception (11/01/90 to 9/30/99) ..... 7.29%
- -----------
* The Salomon Brothers World Government Bond Index (Currency-Hedged) is a
market capitalization-weighted index designed to track major government debt
markets and is currency-hedged into U.S. dollars.
** The Lehman Aggregate Bond Index is composed of the Lehman
Government/Corporate Bond Index and the Lehman Mortgage-Backed Securities
Index. The Aggregate Index includes U.S. Treasury and agency issues,
corporate bond issues and mortgage-backed securities rated investment-grade
or higher by Moody's Investors Service, Standard & Poor's Corporation or
Fitch Investors' Service.
*** The Composite Benchmark measures the weighted perfomance of three component
indexes. The weights of the component indexes -- 50% Lehman Aggregate Bond
Index, 35% Salomon Brothers World Government Bond Index excluding the U.S.
(Currency-Hedged), and 15% Merrill Lynch High Yield Master II Index --
correspond to the investment strategy of the Fund's manager of the
performance of the non-investment-grade U.S. domestic bond market.
11
<PAGE>
Warburg Pincus Intermediate Maturity Government Fund
Statement of Net Assets--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
AGENCY OBLIGATIONS (1.3%)
$ 321,296 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10B (Aaa, AAA) 04/01/02 7.450 $ 324,551
452,744 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10C (Aaa, AAA) 07/01/02 6.600 448,217
-----------
TOTAL AGENCY OBLIGATIONS
(Cost $774,039) 772,768
-----------
MORTGAGE-BACKED SECURITIES (79.1%)
80,349 Fannie Mae Series G97-1 Class J (Aaa, AAA) 02/18/04 6.750 80,100
2,849,172 Fannie Mae (Aaa, AAA) 12/01/05 6.625 2,802,702
1,958,631 Fannie Mae (Aaa, AAA) 08/01/07 6.750 1,921,825
1,675,000 Fannie Mae Series MTN (Aaa, AAA) 12/10/07 6.560 1,627,810
2,000,000 Fannie Mae, 1997-51, Class KB (Aaa, AAA) 03/20/08 7.000 1,989,120
2,000,000 Fannie Mae, Series 1993-196, Class J (Aaa, AAA) 10/25/08 5.500 1,882,750
2,400,000 Fannie Mae, Series 1993-50 (Aaa, AAA) 09/25/20 5.000 2,241,492
2,000,000 Fannie Mae, 1998-51, Class PI (Aaa, AAA) 02/18/21 5.750 1,913,467
2,400,000 Fannie Mae REMIC 98-M4 (Aaa, AAA) 12/25/23 6.424 2,366,580
2,865,000 Federal Farm Credit Bank (Aaa, AAA) 05/01/02 5.250 2,798,341
6,300,000 Federal Home Loan Bank (Aaa, AAA) 04/25/02 5.250 6,157,057
2,250,000 Federal Home Loan Bank (Aaa, AAA) 03/06/03 5.720 2,207,700
3,000,000 Federal Home Loan Bank (Aaa, AAA) 09/02/03 5.575 2,916,791
329,827 Federal Home Loan Bank
Series El-04 Class 1 (Aaa, AAA) 04/23/04 7.130 329,978
2,230,000 Federal Home Loan Bank (Aaa, AAA) 08/15/06 6.375 2,199,032
2,450,000 Financial Assistance Corp.
(Callable 09/27/00 @ $100.00) (Aaa, AAA) 09/27/05 9.200 2,515,393
1,150,000 Freddie Mac Discount Note (Aaa, AAA) 08/04/00 5.715# 1,104,341
1,680,000 Freddie Mac (Aaa, AAA) 05/15/02 5.500 1,649,632
1,495,000 Freddie Mac (Aaa, AAA) 07/15/03 5.750 1,464,666
952,006 Freddie Mac Series 1275 Class VN (Aaa, AAA) 02/15/05 7.000 951,178
2,000,000 Freddie Mac Series 1490 Class CA (Aaa, AAA) 04/15/08 6.500 1,987,171
973,826 GE Capital Mortgage Services, Inc.
Series 1994-7 Class A10 (Aaa, AAA) 02/25/09 6.000 944,460
749,069 Morgan Stanley Mortgage Trust
Series 40 Class 8 (Aaa, AAA) 07/20/21 7.000 749,604
-----------
TOTAL MORTGAGE-BACKED SECURITIES
(Cost $45,797,329) 44,801,190
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
Warburg Pincus Intermediate Maturity Government Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
UNITED STATES TREASURY OBLIGATIONS (17.3%)
$1,410,000 U.S. Treasury Bond (Aaa, AAA) 11/15/11 14.000 $ 2,013,521
4,860,000 U.S. Treasury Note (Aaa, AAA) 02/15/05 7.500 5,165,214
2,525,000 U.S. Treasury Note Inflation Index (Aaa, AAA) 07/15/02 3.625 2,620,024
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS
(Cost $9,766,600) 9,798,759
-----------
Number
of
Shares
- -------
SHORT TERM INVESTMENTS (2.3%)
1,291,852 RBB Money Market Portfolio
(Cost $1,291,852) 1,291,852
-----------
TOTAL INVESTMENTS AT VALUE (100.0%) (Cost $57,629,820*) 56,664,569
LIABILITIES IN EXCESS OF OTHER ASSETS (0.0%) (19,318)
-----------
NET ASSETS (100.0%) $56,645,251
===========
NET ASSET VALUE, offering and redemption price per Common Class share
($56,625,196 (divided by) 5,793,918) $ 9.77
======
NET ASSET VALUE, offering and redemption price per Advisor Class share
($20,055 (divided by) 2,052) $ 9.77
======
</TABLE>
INVESTMENT ABBREVIATIONS
REMIC = Real Estate Mortgage Investment Conduit
- --------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
# Rate shown reflects yield to maturity on date of purchase.
* Cost for federal income tax purposes is $57,677,093.
See Accompanying Notes to Financial Statements.
13
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Statement of Net Assets (cont'd)--October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (97.8%)
New York (84.0%)
$1,000,000 Long Island Power Authority NY Revenue Bond (Aaa, AAA) 04/01/04 5.000 $ 1,010,000
1,000,000 Long Island Power Authority NY Revenue Bond (Aaa, AAA) 04/01/06 5.000 1,001,250
1,750,000 Metropolitan Transportation Authority
Commuter Facilities Revenue Bond Series C-1 (Aaa, AAA) 07/01/05 6.000 1,855,000
2,000,000 Metropolitan Transportation Authority
Commuter Facilities Revenue Bond Series C-2 (Aaa, AAA) 07/01/05 6.000 2,120,000
3,000,000 Municipal Assistance Corp. for New York City
Revenue Bond Series L (Aa2, AA) 07/01/04 6.000 3,168,750
2,000,000 Municipal Assistance Corp. for New York City
Revenue Bond Series M (Aa2, AA) 07/01/06 5.250 2,042,500
1,350,000 Nassau County New York General Obligation
Bond General Improvements
Series R (FGIC Insured) (Aaa, AAA) 11/01/02 5.125 1,373,625
1,045,000 Nassau County New York General Obligation
Bond Series L (FGIC Insured) (Escrowed
to Maturity) (Aaa, AAA) 11/15/01 6.300 1,088,106
3,000,000 New York City General Obligation Bond
Series A (A3, A-) 08/01/06 7.000 3,322,500
1,000,000 New York City General Obligation Bond
Series C- Subseries C-1 (Pre-Refunded
08/01/02 @ $101.50) (Aaa, AAA) 08/01/07 6.375 1,065,000
60,000 New York City General Obligation Bond
Series L (A3, A-) 08/01/02 5.500 61,650
2,000,000 New York City Transitional Finance Authority
(Callable 08/15/09 @ $101.00) (Aa3, AA) 08/15/18 5.750 1,955,000
1,500,000 New York State Dormitory Authority Revenue
Bond City University Series B
(AMBAC Insured) (Aaa, AAA) 07/01/03 6.000 1,571,250
3,000,000 New York State Dormitory Authority Revenue
Bond Consolidated City University Series A (Baa1, A-) 07/01/05 5.700 3,112,500
2,000,000 New York State Dormitory Authority Revenue
Bond Education Facilities Improvement (A3, A) 05/15/07 6.000 2,110,000
1,000,000 New York State Dormitory Authority Revenue
Bond Rockefeller University
(Callable 07/01/08 @ $101.00) (Aaa, AAA) 07/01/16 5.000 917,500
1,000,000 New York State Dormitory Authority Revenue
Bond Sloan Kettering Memorial Cancer Center (Aaa, AAA) 07/01/19 5.750 993,750
2,000,000 New York State Dormitory Authority Revenue
Bond State University Education Facilities
Series A (A3, A) 05/15/02 5.400 2,042,500
2,495,000 New York State Dormitory Authority Revenue
Bond State University Facilities Lease
Revenue Series A (Aaa, AAA) 07/01/06 5.750 2,619,750
1,000,000 New York State Dormitory Authority Revenue
Bond Upstate Community Colleges Series A (Baa1, A-) 07/01/02 5.300 1,018,750
2,000,000 New York State General Obligation Bond
Series C (A2, A+) 10/01/03 6.000 2,100,000
1,200,000 New York State General Obligation Bond
Series C (A2, A+) 10/01/04 6.000 1,269,000
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
New York (cont'd)
$1,000,000 New York State General Obligation Bond
Series F (A2, A+) 09/15/04 5.000 $ 1,013,750
2,245,000 New York State General Obligation Bond
Series F (A2, A+) 09/15/06 5.000 2,253,419
2,500,000 New York State Housing Finance Agency Service
Contract Obligation Revenue Bond Series C
(Pre-Refunded 09/15/01 @ $102.00) (Aaa, AAA) 09/15/01 7.300 2,684,375
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (Aaa, AAA) 04/01/05 5.000 1,008,750
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/05 5.400 1,026,250
600,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/06 6.000 634,500
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/07 6.000 1,058,750
1,265,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (FGIC Insured) (Aaa, AAA) 04/01/04 5.000 1,280,812
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A
(Pre-Refunded 04/01/02 @ $102.00) (Aaa, AAA) 04/01/02 7.125 1,080,000
1,125,000 New York State Local Government Assistance
Corp. Revenue Bond Series A Revenue Bond (Aaa, AAA) 04/01/06 6.000 1,191,094
1,000,000 New York State Power Authority Revenue Bond
Series C (Aa3, AA-) 02/15/04 5.000 1,012,500
2,000,000 New York State Thruway Authority General
Revenue Bond Series E (Aa3, AA-) 01/01/15 5.250 1,872,500
2,000,000 New York State Thruway Authority Service
Contract Local Highway & Bridge Revenue
Bonds (NR, AAA) 04/01/14 5.750 2,012,500
3,000,000 New York State Thruway Authority Service
Contract Revenue Bond Local Highway &
Bridges Series A (Aaa, AAA) 01/01/04 6.000 3,153,750
1,000,000 New York State Urban Development Corp.
Revenue Bond Correctional Capital A
(AMBAC Insured) (Aaa, AAA) 01/01/06 5.400 1,027,500
1,000,000 New York State Housing Finance Agency
(Prerefunded - Series A (Aaa, AAA) 03/15/25 6.500 1,105,000
1,000,000 New York State Urban Development Corp.
(Callable 01/01/09 @ $101.00) (NR, AAA) 01/01/13 6.000 1,028,750
3,000,000 Port Authority of New York & New Jersey
Revenue Bond Consolidated 72nd Series
(Pre-Refunded 10/01/02 @ $101.00) (A1, AA-) 10/01/02 7.350 3,213,750
1,000,000 Rockland County NY General Obligation
(Callable 10/15/09 @ $101.00) (Aa3, AA) 10/15/14 5.500 987,500
1,000,000 Triborough Bridge & Tunnel Authority (Aa3, A+) 01/01/03 5.500 1,027,500
1,000,000 Triborough Bridge & Tunnel Authority (Aa3, A+) 01/01/06 5.800 1,047,500
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (cont'd)
New York (cont'd)
$1,000,000 Triborough Bridge & Tunnel Authority General
Purpose Revenue Bond Series A (Aa3, A+) 01/01/07 5.500 $ 1,031,250
1,050,000 Westchester County NY
(Callable 11/01/09 @ $101.00) (Aaa, AAA) 11/01/18 5.250 972,878
-----------
Total New York (Cost $70,805,685) 70,542,959
-----------
Puerto Rico (13.7%)
1,000,000 Puerto Rico Electric Power Authority
(Callable 07/01/09 @ $101.50) (Aaa, AAA) 07/01/10 5.250 1,011,250
1,000,000 Puerto Rico Commonwealth Aqueduct & Sewer
Authority Revenue Bond (Aaa, AAA) 07/01/07 6.000 1,072,500
1,000,000 Puerto Rico Commonwealth General Obligation
Bond (Baa1, A) 07/01/05 5.000 1,010,000
3,000,000 Puerto Rico Commonwealth General Obligation
Bond (MBIA Insured) (Aaa, AAA) 07/01/01 5.500 3,067,500
1,000,000 Puerto Rico Commonwealth Highway &
Transportation Authority (Aaa, AAA) 07/01/15 5.500 991,250
2,000,000 Puerto Rico Commonwealth Infrastructure
Finance Authority Revenue Bond
Series 1997 Class A (OID) (Aaa, AAA) 07/01/11 5.000 1,957,500
2,000,000 Puerto Rico Electric Power Authority
Series EE Revenue Bond (Callable 07/01/08
@ $101.50) (Aaa, AAA) 07/01/16 5.250 1,915,000
500,000 Puerto Rico Electric Power Authority
Series N (Callable 07/01/99 @ $101.50) (Baa1, BBB+) 07/01/00 6.800 508,485
-----------
Total Puerto Rico (Cost $11,704,118) 11,533,485
-----------
TOTAL MUNICIPAL BONDS (Cost $82,509,803) 82,076,444
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
Number
of
Shares Value
------ -----
MONEY MARKET (2.1%)
1,781,813 Municipal Fund for New York
Investors, Inc. - New York Money $ 1,781,813
-----------
TOTAL MONEY MARKET (Cost $1,781,813) 1,781,813
-----------
TOTAL INVESTMENTS AT VALUE (99.9%) (Cost $84,291,616*) 83,858,257
OTHER ASSETS IN EXCESS OF LIABILITIES (0.1%) 75,666
-----------
NET ASSETS (100.0%) $83,933,923
===========
NET ASSET VALUE, offering and redemption price per
Common Class share ($83,933,923 (divided by) 8,356,615) $10.04
======
INVESTMENT ABBREVIATIONS
AMBAC = American Municipal Bond Assurance Corporation
FGIC = Financial Guaranty Insurance Company
MBIA = Municipal Bond Investors Assurance, Inc.
- --------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
* Also cost for federal income tax purposes.
See Accompanying Notes to Financial Statements.
17
<PAGE>
Warburg Pincus Fixed Income Fund
Statement of Net Assets--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
AGENCY OBLIGATIONS (14.8%)
$ 4,500,000 Fannie Mae (Aaa, Aaa) 06/09/00 5.330 $ 4,488,624
12,178,000 Fannie Mae (Aaa, Aaa) 02/18/21 5.750 11,651,098
2,200,000 Federal Home Loan Bank (Aaa, Aaa) 06/22/00 5.505 2,196,477
4,400,000 Federal Home Loan Bank (Aaa, Aaa) 08/09/00 5.710 4,395,293
21,050,000 Freddie Mac Discount Note (Aaa, Aaa) 07/07/00 5,491# 20,298,726
15,915,000 Freddie Mac Discount Note (Aaa, Aaa) 08/04/00 5,715# 15,283,120
1,106,408 Small Business Administration Guaranteed-
Development Participation Certificate
Debenture Series 1992-20D (Callable
10/01/02 @ $100.00) (Aaa, AAA) 04/01/12 8.200 1,132,685
-----------
TOTAL AGENCY OBLIGATIONS (Cost $59,733,521) 59,446,023
-----------
CORPORATE BONDS (27.9%)
2,000,000 ABN-AMRO Bank NV New York Branch Subordinate
Deposit Notes (Callable
08/01/04 @ $100.00) (Aa2, AA-) 08/01/09 8.250 2,092,500
4,140,000 Aetna Services, Inc. (A3, A) 08/15/06 7.125 3,969,225
1,900,000 Allied Waste North America
(Callable 08/01/04 @ $105.00) (B2, B+) 08/01/09 10.000 1,624,500
7,450,000 AT&T Capital Corp. (A1, BBB) 11/15/00 7.500 7,553,418
1,160,000 AT&T Corp. (A1, AA-) 09/15/02 6.500 1,155,650
2,740,000 Charter Communications Holdings LLC
(Callable 04/01/04 @ $104.313) (B2, B+) 04/01/09 8.625 2,596,150
4,500,000 Conseco, Inc. (Ba1, BBB+) 10/15/06 9.000 4,522,500
4,500,000 Countrywide Home Loan Co. (A3, A) 04/15/09 6.250 4,100,625
6,950,000 Delphi Auto Systems Corp. (Baa2, BBB) 05/01/04 6.125 6,663,313
3,660,000 Dime Bancorp, Inc. (Ba1, BBB-) 07/25/01 7.000 3,646,275
3,565,000 Federal-Mogul Corp. (Ba2, BB+) 01/15/06 7.375 3,279,800
1,000,000 Globalstar Capital Corp. Senior Notes
(Callable 02/15/02 @ $105.69)+ (CAA, B) 02/15/04 11.375 605,000
3,115,000 Golden State Escrow Corp.
(Callable @ Make Whole + 50BP) (Ba1, BB+) 08/01/03 7.000 2,955,356
2,980,000 HMH Properties, Inc.+ (Ba3, NR) 05/15/05 9.500 3,143,900
1,370,000 Household Finance Corp. (A2, A) 05/01/04 6.000 1,304,925
5,910,000 Household Finance Corp. (A2, A) 11/15/08 6.500 5,562,788
3,050,000 Lowe's Companies (Putable 05/15/07 @ $100.00) (A2, A) 05/15/37 7.110 3,099,563
3,900,000 MBNA Master Credit Card Trust Series 1997-I,
Class A (NR, NR) 01/15/07 6.550 3,869,492
5,065,000 Nationwide Health Properties, Inc.
(Putable 07/01/03 @ $100.00) (Baa2, BBB) 07/07/38 6.590 4,805,419
5,886,221 Niagara Mohawk Power Corp. Series D
(Callable 04/01/99 to 12/31/00 @
Make Whole + 50BP) (Baa3, BBB-) 10/01/02 7.250 5,893,579
6,255,000 Noble Drilling Corp. (Baa2, A-) 03/15/09 6.950 6,059,531
3,100,000 NTL Communications Corp. Class B+ (B3, B-) 10/01/08 11.500 3,301,500
4,140,000 Occidental Petroleum (Baa3, BBB) 02/15/06 7.650 4,171,050
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
Warburg Pincus Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
CORPORATE BONDS (cont'd)
$ 4,760,000 Philip Morris Cos., Inc. (Putable 06/01/01
@ $100.00) (A2, A) 06/01/06 6.950 $ 4,658,850
2,000,000 Potomac Electric Power Co.
(Callable 05/15/02 @ $103.21) (A1, A) 05/15/27 8.500 2,032,500
6,020,000 Qwest Communications International, Inc.,
Series B (Ba1, BB+) 11/01/08 7.500 5,997,425
3,400,000 Riggs Capital Trust II Preferred Securities,
Series C (Callable 03/15/07 @ $104.44) (Baa3, BB-) 03/15/27 8.875 3,225,750
2,365,000 Safeway, Inc. (Callable @ Make Whole +12.5BP) (Baa2, BBB) 09/15/04 7.250 2,362,044
6,950,000 Union Electric Co. (Callabe 12/01/01 @ $104.38) (Aa3, AA-) 12/01/21 8.750 7,262,750
------------
TOTAL CORPORATE BONDS (Cost $115,737,668) 111,515,378
------------
ASSET/MORTGAGE-BACKED SECURITIES (37.8%)
11,000,000 Amresco Commercial Mortgage Funding I
Series 1997-C1, Class B (NR, AA) 06/17/29 7.240 11,027,005
2,425,000 Asset Securitization Corp. (Nomura Asset
Securities Corp.) Series 1996-D2, Class A2 (NR, AA) 02/14/29 7.205+ 2,383,472
137,826 Bankers Trust Co. Pass-Through CTFS
Series 1988-1, Class 1D (NR, AAA) 04/01/18 8.625 139,513
4,660,000 California Infrastructure PG&E-1
Series 1997-1, Class A7 (Callable 09/25/06
@ $100.00) (Aaa, AAA) 09/25/08 6.420 4,550,928
6,200,000 California Infrastructure SCE-1 Series 1997-1,
Class A7 (Callable 12/26/07 @ $100.00) (Aaa, AAA) 12/26/09 6.420 5,892,542
2,500,000 Commonwealth Edison Co. (Baa2, BBB) 02/01/22 8.625 2,561,060
5,650,000 Commonwealth Edison Transitional Funding
Trust Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.630 5,313,062
217,650 Donaldson, Lufkin, & Jenrette, Inc. Acceptance
Trust Series 1989-1, Class F (Aaa, AAA) 08/01/19 11.000 237,379
11,525,203 Fannie Mae Pool #492402 (Aaa, AAA) 04/01/29 6.500 11,060,184
8,161,730 Fannie Mae Pool #N98512 (Aaa, AAA) 08/01/06 6.000 7,920,673
4,920,000 Fannie Mae Series 1997-51, Class KB
Guaranteed REMIC TR (Aaa, AAA) 03/20/08 7.000 4,893,235
11,000,000 Fannie Mae Series 1997-79, Class PG (Aaa, AAA) 07/18/26 6.000 10,004,288
4,700,000 Fannie Mae Series 1998-M4, Class B (Aaa, AAA) 12/25/23 6.424 4,634,553
3,038,000 Fannie Mae, Series 1993-196, Class J (Aaa, AAA) 10/25/08 5.500 2,859,897
3,040,000 Federal Home Loan Bank Zero Coupon (Aaa, AAA) 11/30/99 5.870# 3,027,683
55,219 Federal Home Loan Mortgage Corp. PC
Pool #220014 (Aaa, AAA) 10/01/01 8.750 56,393
5,000,000 First Chicago/Lennar Trust, Series 1997-CHl1,
Class B (NR, NR) 04/29/06 8.075+ 4,696,875
1,500,000 General Motors Acceptance Corp. Series 96C-2B,
Class B (NR, A) 10/15/11 7.530 1,499,903
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
Warburg Pincus Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings+
Par (Moody's/S&P) Maturity Rate% Value
--- ------------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
ASSET/MORTGAGE BACKED SECURITIES (cont'd)
$1,000,000 General Motors Acceptance Corp.
Series 1998-C1, Class E (NR, Baa2) 03/15/11 7.154 $ 921,325
4,799,022 General Motors Acceptance Corp.
Series 1996-C2, Class A (NR, AA) 10/15/11 7.350 4,886,148
9,420,197 Ginnie Mae (Aaa, AAA) 11/15/27 7.000 9,269,728
11,465,724 Ginnie Mae (Aaa, AAA) 10/15/28 6.500 10,973,258
9,000,000 LB Commercial Conduit Mortgage Trust
Series 1996-C2, Class C (A2, NR) 10/25/26 7.745+ 8,930,025
3,895,159 Morgan Stanley Mortgage Trust Series 40, Class 8 (NR, AAA) 07/20/21 7.000 3,897,940
4,970,000 Mortgage Capital Funding, Inc. Series
1998-MC1, Class E (NR, BBB+) 01/18/08 7.060+ 4,680,671
10,000,000 Nomura Asset Securites Corp. Series 1998-D6,
Class A3 (NR, A2) 03/17/28 6.980+ 9,269,550
4,000,000 Nomura Asset Securities Corp. Series 1993-1,
Class B1 (NR, BBB) 12/15/01 6.680 3,942,100
650,661 Nomura Asset Securities Corp. Series 1994-4B,
Class 4A (Aaa, AAA) 09/25/24 8.300 660,433
1,705,355 Residential Funding Mortgage Securities I
Series 96 - S2, Class A1 (NR, AAA) 01/25/11 6.750 1,701,945
72,558 Resolution Trust Corp. 1994-C1, Class B (NR, AA) 06/25/26 8.000 72,383
44,121 Resolution Trust Corp. Pass-Through CTFS
Series-95 C1, Class A-2C (Aaa, NR) 02/25/27 6.900 44,042
2,500,000 Shurgard Pass-Through CTFS Trust (Nomura
Asset Securities Corp.) Series 1, Class 1 (NR, NR) 06/15/04 8.240+ 2,528,613
6,790,000 Standard Credit Card Master Trust Series 1995-9,
Class A (Aaa, AAA) 10/07/07 6.550 6,761,094
------------
TOTAL ASSET/MORTGAGE BACKED SECURITIES (Cost $157,636,659) 151,297,900
------------
UNITED STATES TREASURY OBLIGATIONS (15.6%)
U.S. Treasury Inflation Protection (1.1%)
4,115,000 U.S. Treasury Note (Aaa, AAA) 07/15/02 3.625 4,269,861
------------
U.S. Treasury Notes (14.5%)
28,010,000 U.S. Treasury Note (Aaa, AAA) 05/15/01 8.000 28,924,042
15,010,000 U.S. Treasury Note (Aaa, AAA) 08/15/02 6.375 15,200,672
10,910,000 U.S. Treasury Note (Aaa, AAA) 02/15/05 7.500 11,595,162
2,320,000 U.S. Treasury Note (Aaa, AAA) 08/15/07 6.125 2,310,527
-----------
58,030,403
------------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $62,438,421) 62,300,264
------------
</TABLE>
See Accompanying Notes to Financial Statements.
20
<PAGE>
Warburg Pincus Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of
Shares Rate% Value
- ------ ----- -----
<S> <C> <C>
PREFERRED STOCK (2.4%)
36,800 Banco Totta & Acores Financial Corp. Series A
(Callable 10/11/06 @ $25.00) 8.875 $ 915,400
72,000 Equity Residential Properties Trust Series D REIT
(Callable 07/15/07 @ $25.00)++ 8.600 1,584,000
65,050 Natexis Bank Series A 144A (Callable 06/30/08
@ $100.00)++ 8.440 6,137,032
27,250 Prologis Trust, Series C (Callable 11/13/26
@ $50.00) 8.540 1,093,406
------------
TOTAL PREFERRED STOCK (Cost $10,573,126) 9,729,838
------------
SHORT TERM INVESTMENTS (0.3%)
1,147,594 Institutional Money Market Trust (Cost $1,147,594) 1,147,594
------------
TOTAL INVESTMENTS AT VALUE (98.8%) (Cost $407,266,989*) 395,436,997
OTHER ASSETS IN EXCESS OF LIABILITIES (1.2%) 4,813,006
------------
NET ASSETS (100.0%) $400,250,003
============
NET ASSET VALUE, offering and redemption price per Common Class
share ($393,432,767 (div) 39,777,907 shares) $ 9.89
======
NET ASSET VALUE, offering and redemption price per Advisor Class
share ($6,817,236 (div) 689,529 shares) $ 9.89
======
</TABLE>
INVESTMENT ABBREVIATIONS
CTFS = Certificates
NR = Not Rated
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit
- --------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are undaudited.
** On instruments with variable rates, the interest
rate shown reflects the current rate as of October 31, 1999.
++ Illiquid security.
# Rate shown reflects yield to maturity on date of purchase.
* Cost for federal income tax purposes is $407,380,182.
See Accompanying Notes to Financial Statements.
21
<PAGE>
Warburg Pincus Global Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings**
Par+ (Moody's/S&P) Maturity Rate% Value
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
BONDS (95.4%)
Argentina (1.6%)
683,000 (A) Banco Hipotecario SA
(Putable 12/03/01 @ $100.00) (B1, BB-) 12/03/08 13.000 $ 693,245
1,464,000 (A) Telecom Argentinaa (B1, BBB-) 07/12/01 9.750 1,460,340
-----------
2,153,585
-----------
Canada (4.7%)
1,960,000 (A) Newcourt Credit Group, Inc. (A1, A+) 12/17/03 7.125 1,942,850
6,845,000 Province of British Columbia (Aa2, AA-) 12/01/06 5.250 4,373,140
-----------
6,315,990
-----------
Chile (1.0%)
1,464,000 (A) Republic of Chile (Baa1, A-) 04/28/09 6.875 1,374,330
-----------
Denmark (4.6%)
40,400,000 Kingdom of Denmark (Aaa, AAA) 11/15/07 7.000 6,249,687
-----------
Germany (6.1%)
6,221,000 Allgemeine HypothekenBank AG (Aa1, AAA) 09/02/09 5.000 6,259,381
2,200,000 (A) Deutsche Bank AG, Series 144A
(Callable 06/30/09 @ $100.00) (A1, A+) 12/29/49 7.872 2,078,661
-----------
8,338,042
-----------
Italy (3.3%)
4,200,000 Buoni Poliennali Del Tes (Aa3, AA) 05/01/03 4.750 4,431,624
-----------
Japan (8.8%)
1,072,000,000 Japan Government (Aa1, AAA) 06/20/03 4.900 11,869,118
-----------
Korea (0.7%)
976,000 (A) Korea Development Bank Series Reg S (Baa3, BBB) 10/01/02 7.625 976,000
-----------
Mexico (0.9%)
1,200,000 (A) Cemex SA (Putable 10/01/04 @ $100.00) (Ba2, BB+) 10/01/09 9.625 1,184,250
-----------
Norway (4.2%)
45,000,000 Norwegian Government (Aaa, AAA) 11/30/04 5.750 5,703,159
-----------
Panama (1.0%)
1,465,000 (A) Republic of Panama
(Putable 04/01/06 @ $100.00) (Ba1, BB+) 04/01/29 9.375 1,388,088
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
Warburg Pincus Global Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratings**
Par+ (Moody's/S&P) Maturity Rate% Value
---- ------------- -------- ----- -----
<S> <C> <C> <C> <C>
BONDS (cont'd)
South Africa (3.7%)
33,720,000 Republic of South Africa (Baa1, BBB+) 08/31/10 13.000 $ 4,957,563
-----------
Sweden (3.5%)
39,000,000 Swedish Government (Aa1, AAA) 01/15/04 5.000 4,674,658
-----------
United Kingdom (1.1%)
1,456,000 Lloyds TSB Bank PLC (Callable 07/15/09
@ 100 EUR) (Aa2, A+) 07/15/49 5.625 1,471,533
-----------
United States (50.2%)
2,927,000 American Standard, Inc.+ (Ba3, BB-) 06/01/06 7.125 3,030,275
4,510,000 California Infrastructure San Diego Gas & Electric
Rate Reduction Series 1997-1 Class A7 (Aaa, AAA) 12/26/09 6.370 4,382,750
1,200,000 Charter Communications Holdings LLC (B2, B+) 04/01/09 8.625 1,137,000
1,490,000 Conseco, Inc. (Ba1, BBB+) 10/15/06 9.000 1,497,450
3,000,000 Federal-Mogul Corp. (Ba2, BB+) 01/15/06 7.375 2,760,000
6,500,000 Freddie Mac (Aaa, AAA) 07/15/04 6.250 6,451,250
9,575,484 Ginnie Mae Pool #506601 (Aaa, AAA) 03/15/29 6.500 9,153,564
3,985,255 Ginnie Mae Pool #415189 (Aaa, AAA) 03/15/26 7.000 3,910,532
2,931,000 GMAC Swift Trust Series 1999-1 (Aaa, AAA) 01/18/05 5.000 3,053,671
1,600,000 Golden State Escrow Corp.
(Callable @ Make Whole +50BP) (Ba1, BB+) 08/01/03 7.000 1,518,000
3,400,000 Illinois Power Transitional Funding Trust,
Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.540 3,175,821
1,500,000 KBC Bank Funding Trust IV (NR, NR) 11/29/49 8.220 1,598,489
6,308,000 MBNA Master Credit Card Trust II
Series 1997-I, Class A (Aaa, AAA) 01/15/07 6.550 6,258,656
6,850,000 Nomura Asset Securities Corp.,
Series 1998-D6, Class A3 (Aaa, AAA) 03/17/28 6.690 6,436,979
1,840,000 NTL Communications Corp. Class Ba (B3, B-) 10/01/08 11.500 1,959,600
6,000,000 PECO Energy Transition Trust (Aaa, AAA) 03/01/09 6.050 5,682,390
2,060,000 Qwest Communications Intl., Inc. Class B (Ba1, BB+) 11/01/08 7.500 2,052,275
4,580,000 U.S. Treasury Bond (Aaa, AAA) 02/15/29 5.250 3,967,579
-----------
68,026,281
-----------
TOTAL BONDS (Cost $133,018,656) 129,113,908
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
Warburg Pincus Global Fixed Income Fund
Statement of Net Assets (cont'd)--October 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number
of
Shares Rate% Value
- ------ ----- -----
<S> <C> <C>
PREFERRED STOCK (1.6%)
23,900 Natexis AMBS Co. Series A
(Callable 06/30/08 @ $100.00)++
(Cost $2,387,493) 8.540 $ 2,254,806
------------
RIGHTS & WARRANTS (0.0%)
Argentina (0.0%)
1,940 Republic of Argentina Wts., 12/03/99
(Cost $0) 14,065
------------
TOTAL INVESTMENTS AT VALUE (97.0%) (Cost $135,406,149*) 131,382,779
OTHER ASSETS IN EXCESS OF LIABILITIES (3.0%) 4,012,927
------------
NET ASSETS (100.0%) $135,395,706
============
NET ASSET VALUE, offering and redemption price per Common Class
share ($135,326,812 divided by 13,207,953) $10.25
======
NET ASSET VALUE, offering and redemption price per Advisor Class
share ($68,894 divided by 6,575) $10.48
======
</TABLE>
INVESTMENT ABBREVIATIONS
EUR = European Currency Unit
NR = Not Rated
- --------------------------------------------------------------------------------
# Unless otherwise indicated below, all securities are denominated in the
currency of the issuers' country of origin.
+ Credit ratings given by Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group are unaudited.
(A) Denominated in U.S. Dollars.
++ Illiquid security
* Cost for federal income tax purposes is $135,479,168.
See Accompanying Notes to Financial Statements.
24
<PAGE>
Warburg Pincus Fixed Income Funds
Statements of Operations
For the Year Ended October 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Intermediate New York Warburg Pincus
Maturity Intermediate Warburg Pincus Global
Government Municipal Fixed Income Fixed Income
Fund Fund Fund Fund
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
Investment Income:
Dividends $ 0 $ 63,971 $ 785,181 $ 175,927
Interest 4,005,566 4,536,380 25,574,480 8,660,339
Foreign taxes withheld 0 0 0 (25,046)
----------- ----------- ------------ -----------
Total investment income 4,005,566 4,600,351 26,359,661 8,811,220
----------- ----------- ------------ -----------
Expenses:
Investment Advisory 340,960 397,528 2,066,252 1,483,284
Administrative services 106,742 160,836 630,507 226,703
Audit 12,465 12,598 21,181 19,304
Custodian/Sub-custodian 13,294 19,953 68,391 112,534
Directors/Trustees 13,466 15,159 15,790 13,283
Insurance 1,973 2,737 7,095 4,107
Interest 294 888 4,068 840
Legal 19,260 23,154 40,781 28,409
Printing 15,641 19,098 125,716 40,745
Registration 34,414 14,890 68,904 53,733
Shareholder servicing/distribution 36 0 9,445 12,388
Transfer Agent 42,037 27,708 245,511 270,696
Miscellaneous 722 5,299 11,205 5,953
----------- ----------- ------------ -----------
601,304 699,848 3,314,846 2,271,979
Less: fees waived, expenses
reimbursed and transfer agent
offsets (192,117) (103,556) (207,466) (850,471)
----------- ----------- ------------ -----------
Total expenses 409,187 596,292 3,107,380 1,421,508
----------- ----------- ------------ -----------
Net investment income 3,596,379 4,004,059 23,252,281 7,389,712
----------- ----------- ------------ -----------
Net Realized and Unrealized Gain (Loss)
from Investments and Foreign Currency
Related Items:
Net realized loss from security
transactions (578,188) (383,534) (1,962,658) (5,859,598)
Net realized gain from foreign currency
related items 0 0 0 2,918,869
Net change in unrealized appreciation
(depreciation) from investments
and foreign currency related items (3,074,269) (3,789,693) (17,380,764) (981,559)
----------- ----------- ------------ -----------
Net realized and unrealized
loss from investments and
foreign currency related items (3,652,457) (4,173,227) (19,343,422) (3,922,288)
----------- ----------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations $ (56,078) $ (169,168) $ 3,908,859 $ 3,467,424
=========== =========== ============ ===========
</TABLE>
See Accompanying Notes to Financial Statements.
25
<PAGE>
Warburg Pincus Fixed Income Funds
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Intermediate Maturity New York Intermediate
Government Fund Municipal Fund
------------------------------ --------------------------------
For the Year Ended For the Year Ended
October 31, October 31,
1999 1998 1999 1998
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
From Operations:
Net investment income $ 3,596,379 $ 3,037,610 $ 4,004,059 $ 4,098,648
Net realized gain (loss) from security transactions (578,188) 484,032 (383,534) 771,345
Net realized loss from futures contracts 0 0 0 (129,543)
Net change in unrealized appreciation
(depreciation) from investments and foreign
currency related items (3,074,269) 1,403,224 (3,789,693) 1,158,201
------------ ------------ ------------- -------------
Net increase (decrease) in net assets
resulting from operations (56,078) 4,924,866 (169,168) 5,898,651
------------ ------------ ------------- -------------
From Dividends and Distributions:
Dividends from net investment income:
Common Class shares (3,595,653) (3,037,272) (4,004,059) (4,098,642)
Advisor Class shares (726) (338) 0 (6)
Distributions from realized gains:
Common Class shares (287,008) 0 (623,895) 0
Advisor Class shares (66) 0 0 0
Distributions in excess of realized gains:
Common Class shares (196,423) 0 (210) 0
Advisor Class shares (14) 0 0 0
------------ ------------ ------------- -------------
Net decrease in net assets from
dividends and distributions (4,079,890) (3,037,610) (4,628,164) (4,098,648)
------------ ------------ ------------- -------------
From Capital Share Transactions:
Proceeds from sale of shares 68,865,628 79,574,872 54,393,636 49,747,129
Reinvested dividends and distributions 3,612,598 2,564,065 4,058,953 3,489,604
Net asset value of shares redeemed (89,908,731) (54,238,174 (76,643,731) (37,058,061)
------------ ------------ ------------- -------------
Net increase (decrease) in net assets from
capital share transactions (17,430,505) 27,900,763 (18,191,142) 16,178,672
------------ ------------ ------------- -------------
Net increase (decrease) in net assets (21,566,473) 29,788,019 (22,988,474) 17,978,675
Net Assets:
Beginning of year 78,211,724 48,423,705 106,922,397 88,943,722
------------ ------------ ------------- -------------
End of year $ 56,645,251 $ 78,211,724 $ 83,933,923 $ 106,922,397
============ ============ ============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
Warburg Pincus Fixed Income Funds
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus
Fixed Global Fixed
Income Fund Income Fund
-------------------------------- --------------------------------
For the Year Ended For the Year Ended
October 31, October 31,
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
From Operations:
Net investment income $ 23,252,281 $ 20,301,303 $ 7,389,712 $ 9,393,375
Net realized gain (loss) from security
transactions (1,962,658) 1,801,417 (5,859,598) (6,983,874)
Net realized gain (loss) from foreign
currency related items 0 0 2,918,869 (523,167)
Net change in unrealized appreciation
(depreciation) from investments and
foreign currency related items (17,380,764) 323,605 (981,559) 4,632,353
------------- ------------- ------------- -------------
Net increase in net assets resulting
from operations 3,908,859 22,426,325 3,467,424 6,518,687
------------- ------------- ------------- -------------
From Dividends and Distributions:
Dividends from net investment income:
Common Class shares (23,048,992) (20,111,834) (8,236,456) (11,720,477)
Advisor Class shares (203,289) (189,469) 0 (562,512)
Dividends in excess of net investment income:
Common Class shares (40,837) 0 (164,530) 0
Advisor Class shares (326) 0 (148,403) 0
Distributions from realized gains:
Common Class shares (1,625,676) (2,591,321) 0 0
Advisor Class shares (12,945) (32,099) 0 0
Distributions in excess of realized gains:
Common Class shares (61,094) 0 0 0
Advisor Class shares 0 0 0 0
------------- ------------- ------------- -------------
Net decrease in net assets from
dividends and distributions (24,993,159) (22,924,723) (8,549,389) (12,282,989)
------------- ------------- ------------- -------------
From Capital Share Transactions:
Proceeds from sale of shares 189,568,336 275,617,900 77,765,560 105,148,731
Reinvested dividends and distributions 21,725,382 20,421,111 7,581,877 11,252,140
Net asset value of shares redeemed (216,553,616) (138,361,653) (105,518,211) (153,653,681)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets
from capital share transactions (5,259,898) 157,677,358 (20,170,774) (37,252,810)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets (26,344,198) 157,178,960 (25,252,739) (43,017,112)
Net Assets:
Beginning of year 426,594,201 269,415,241 160,648,445 203,665,557
------------- ------------- ------------- -------------
End of year $ 400,250,003 $ 426,594,201 $ 135,395,706 160,648,445
============= ============= ============= =============
Undistributed net investment income $ 62,993 $ 0 $ 2,605,936 $ 846,745
============= ============= ============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
Warburg Pincus Intermediate Maturity Government Fund
Financial Highlights
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED: 1999 1998 1997 1996 1995
------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per-share data
Net asset value,
beginning of year $10.37 $ 10.05 $ 10.07 $ 10.22 $ 9.66
------ ------- ------- ------- -------
Investment activities:
Net investment income 0.53 0.56 0.58 0.58 0.59
Net gains (losses) on
investments (both realized
and unrealized) (0.54) 0.32 0.10 (0.06) 0.56
------ ------- ------- ------- -------
Total from investment
activities (0.01) 0.88 0.68 0.52 1.15
------ ------- ------- ------- -------
Less Dividends and Distributions:
Dividends from net investment income (0.53) (0.56) (0.58) (0.58) (0.59)
Distributions from realized capital gains (0.04) 0.00 (0.08) (0.09) 0.00
Distributions in excess of realized capital gains (0.02) 0.00 (0.04) 0.00 0.00
------ ------- ------- ------- -------
Total dividends and distributions (0.59) (0.56) (0.70) (0.67) (0.59)
------ ------- ------- ------- -------
Net asset value, end of year $ 9.77 $ 10.37 $ 10.05 $ 10.07 $ 10.22
====== ======= ======= ======= =======
Total return (0.05)% 9.35% 6.99% 5.16% 12.32%
Ratios/Supplemental Data:
Net assets, end of year
(000s omitted) $56,625 $78,200 $48,421 $47,690 $55,898
Ratio of expenses to
average net assets 0.61%@ 0.60%@ 0.61%@ 0.61%@ 0.60%
Ratio of net income to
average net assets 5.27% 5.54% 5.81% 5.68% 6.00%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.28% 0.34% 0.33% 0.46% 0.49%
Portfolio turnover rate 91.13% 133.98% 104.34% 163.59% 105.79%
====== ======= ======= ======= =======
</TABLE>
- --------------------
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' expense ratio by .01%, .00%, .00% and .01% for
years ending October 31, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .60% for each of the years ended October 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
28
<PAGE>
Warburg Pincus New York Intermediate Municipal Fund
Financial Highlights
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED: 1999 1998 1997 1996 1995
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Per-share data
Net asset value,
beginning of year $10.54 $10.35 $10.34 $10.42 $10.07
------- -------- ------- ------- -------
Investment activities:
Net investment income 0.42 0.44 0.45 0.45 0.47
Net gains (losses) on
investments (both realized
and unrealized) (0.44) 0.19 0.13 0.04 0.36
------- -------- ------- ------- -------
Total from investment
activities (0.02) 0.63 0.58 0.49 0.83
------- -------- ------- ------- -------
Less Dividends and Distributions:
Dividends from net investment income (0.42) (0.44) (0.45) (0.45) (0.47)
Distributions from realized capital gains (0.06) 0.00 (0.12) (0.12) (0.01)
------- -------- ------- ------- -------
Total dividends and distributions (0.48) (0.44) (0.57) (0.57) (0.48)
------- -------- ------- ------- -------
Net asset value, end of year $10.04 $10.54 $10.35 $10.34 $10.42
======= ======== ======= ======= =======
Total return (0.26)% 6.24% 5.83% 4.87% 8.31%
Ratios/Supplemental Data:
Net assets, end of year
(000s omitted) $83,934 $106,922 $88,944 $77,559 $73,361
Ratio of expenses to
average net assets 0.61%@ 0.60%@ 0.60%@ 0.61%@ 0.60%
Ratio of net income to
average net assets 4.03% 4.24% 4.40% 4.41% 4.50%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.10% 0.07% 0.08% 0.17% 0.26%
Portfolio turnover rate 54.97% 37.25% 69.84% 69.23% 105.17%
</TABLE>
- -------------------
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' expense ratio by .01%, .00%, .00% and .01% for the
years ending October 31, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .60% for each of the years ended October 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
29
<PAGE>
Warburg Pincus Fixed Income Fund
Financial Highlights
(For a Common Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED: 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per-share data
Net asset value,
beginning of year $ 10.41 $ 10.43 $ 10.10 $ 10.07 $ 9.61
-------- -------- -------- -------- --------
Investment activities:
Net investment income 0.57 0.59 0.62 0.63 0.70
Net gains (losses) on
investments and foreign
currency related items
(both realized and unrealized) (0.48) 0.07 0.33 0.03 0.46
-------- -------- -------- -------- --------
Total from investment
activities 0.09 0.66 0.95 0.66 1.16
-------- -------- -------- -------- --------
Less Dividends and Distributions:
Dividends from net investment income (0.57) (0.59) (0.62) (0.63) (0.70)
Distributions from realized capital gains (0.04) (0.09) 0.00 0.00 0.00
-------- -------- -------- -------- --------
Total dividends and distributions (0.61) (0.68) (0.62) (0.63) (0.70)
-------- -------- -------- -------- --------
Net asset value, end of year $ 9.89 $ 10.41 $ 10.43 $ 10.10 $ 10.07
======== ======== ======== ======== ========
Total return 0.92% 6.48% 9.78% 6.80% 12.59%
Ratios/Supplemental Data:
Net assets, end of year
(000s omitted) $393,433 $423,536 $265,453 $151,184 $116,983
Ratio of expenses to
average net assets 0.76%@ 0.75%@ 0.75%@ 0.76%@ 0.75%
Ratio of net income to
average net assets 5.63% 5.64% 6.05% 6.30% 7.25%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.04% 0.04% 0.08% 0.15% 0.18%
Portfolio turnover rate 144.02% 124.04% 129.06% 194.23% 182.93%
</TABLE>
- ----------------
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' expense ratio by .01%, .00%, .00% and .01% for the
years ending October 31, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .75% for each of the years ended October 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
30
<PAGE>
Warburg Pincus Global Fixed Income Fund
Financial Highlights
(For a Common Share of the Fund Outstanding Throughout Each Year)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED: 1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Per-share data
Net asset value,
beginning of year $ 10.62 $ 10.91 $ 11.17 $ 11.04 $ 10.45
-------- -------- -------- -------- --------
Investment activities:
Net investment income 0.52 0.58 0.54 0.62 0.99
Net gains (losses) on
investments and foreign
currency related items (both
realized and unrealized) (0.29) (0.16) 0.08 0.57 0.09
-------- -------- -------- -------- --------
Total from investment
activities 0.23 0.42 0.62 1.19 1.08
-------- -------- -------- -------- --------
Less Dividends and Distributions:
Dividends from net investment income (0.59) (0.71) (0.34) (1.06) (0.49)
Dividends in excess of net investment income (0.01) 0.00 0.00 0.00 0.00
Distributions from realized capital gains 0.00 0.00 (0.54) 0.00 0.00
-------- -------- -------- -------- --------
Total dividends and distributions (0.60) (0.71) (0.88) (1.06) (0.49)
-------- -------- -------- -------- --------
Net asset value, end of year $ 10.25 $ 10.62 $ 10.91 $ 11.17 $ 11.04
======== ======== ======== ======== ========
Total return 2.18% 4.10% 5.76% 11.35% 10.65%
Ratios/Supplemental Data:
Net assets, end of year
(000s omitted) $135,327 $154,131 $194,731 $131,072 $63,641
Ratio of expenses to
average net assets 0.96%@ 0.95%@ 0.96%@ 0.95%@ 0.95%
Ratio of net income to
average net assets 5.00% 5.21% 5.40% 6.78% 8.18%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.57% 0.46% 0.39% 0.56% 0.63%
Portfolio turnover rate 365.02% 233.73% 202.92% 123.90% 128.70%
</TABLE>
- ----------------
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Common Class shares' expense ratio by .01%, .00%, .00% and .01% for the
years ending October 31, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .95% for each of the years ended October 31, 1999, 1998,
1997 and 1996, respectively.
See Accompanying Notes to Financial Statements.
31
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements
October 31, 1999
- -------------------------------------------------------------------------------
1. Significant Accounting Policies
The Warburg Pincus Intermediate Maturity Government Fund (the "Intermediate
Government Fund") and the Warburg Pincus Fixed Income Fund (the "Fixed Income
Fund") are registered under the Investment Company Act of 1940, as amended (1940
Act), as diversified, open-end management investment companies. The Warburg
Pincus New York Intermediate Municipal Fund (the "New York Municipal Fund") and
the Warburg Pincus Global Fixed Income Fund (the "Global Fixed Income Fund") are
registered under the 1940 Act as non-diversified, open-end management investment
companies (each, a "Fund" and collectively, the "Funds").
Investment objectives for each Fund are as follows: the Intermediate
Government Fund seeks to achieve as high a level of current income as is
consistent with the 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 management and the preservation of capital; the Fixed Income
Fund seeks to generate high current income consistent with reasonable risk and,
secondarily, capital appreciation; and 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.
Each Fund (except the New York Municipal Fund) offers two classes of
shares, one class being referred to as the Common Class shares and one class
being referred to as the Advisor Class shares. Common and Advisor Class shares
in each Fund represent an equal pro rata interest in each Fund, except that they
bear different expenses which reflect the difference in the range of services
provided to them. Advisor Class shares for each Fund bear expenses paid pursuant
to a distribution plan adopted by each Fund at an annual rate not to exceed .75%
of the average daily net asset value of each Fund's outstanding Advisor Class
shares. The Advisor Class shares for the Intermediate Government Fund and the
Fixed Income Fund currently bear expenses of .25% of average daily net assets.
The Advisor Class shares of the Global Fixed Income Fund currently bear expenses
of .50% of average daily net assets. The Advisor Class shares for the New York
Municipal Fund was liquidated on December 16, 1998.
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 generally determined using market quotations.
If no sales are reported, investments are generally valued at the mean between
the last reported bid and asked prices. If market quotations are not readily
available, securities and other assets are valued by another
32
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
1. Significant Accounting Policies -- (cont'd)
method that the Fund's Board believe accurately reflects fair value. Debt that
will mature in 60 days or less is valued on the basis of amortized cost, which
approximates market value, unless the Board determines that using this method
would not reflect an investment's value.
When a Fund writes or purchases a call or a put option, an amount equal to
the premium received or paid by the Fund is recorded as a liability or asset,
the value of which is marked-to-market daily to reflect the current market value
of the option. When the option expires, the Fund realizes a gain or loss equal
to the amount of the premium received or paid. When the Fund exercises an option
or enters into a closing transaction by purchasing or selling an offsetting
option, it realizes a gain or loss without regard to any unrealized gain or loss
on the underlying security. The potential loss associated with purchasing an
option is limited to the premium paid, and the premium would partially offset
any gains achieved from its use.
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 Fixed Income Fund and the Global Fixed
Income Fund isolate that portion of realized 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.
The Fixed Income and the Global Fixed Income Funds may invest in securities
of foreign countries and governments, which involve certain risks in addition to
those inherent in domestic investments. Such risks generally include, among
other things, currency risk (fluctuations in currency exchange rates),
information risk (key information may be inaccurate or unavailable) and
political risk (expropriation, nationalization or the imposition of capital or
currency controls or punitive taxes). Other risks of investing in foreign
securities include liquidity and valuation risks.
The Fixed Income and the Global Fixed Income Funds' investments in
securities of issuers located in less developed countries considered to be
"emerging markets" involve risks in addition to those generally applicable to
foreign securities. Focusing on emerging (less developed) markets involves
33
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
1. Significant Accounting Policies -- (cont'd)
higher levels of risk, including increased currency, information, liquidity,
market, political and valuation risks. Deficiencies in regulatory oversight,
market infrastructure, shareholder protections and company laws could expose the
Funds to operational and other risks as well. Some countries may have
restrictions that could limit the Funds access to attractive opportunities.
Additionally, emerging markets often face serious economic problems (such as
high external debt, inflation and unemployment) that could subject the portfolio
to increased volatility or substantial declines in value.
Each Fund may each invest up to 15% of its net assets in non-publicly
traded securities. Non-publicly traded securities may be less liquid than
publicly- traded securities, and they may be difficult or impossible to sell at
the time and at the price the Fund would like. In addition, the lack of an
active market may make it difficult to obtain an accurate price for a Fund
security.
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. Income, expenses (excluding class-specific expenses,
principally distribution and shareholder servicing fees) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of the outstanding shares of that class. 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 Intermediate Government Fund, the New York Municipal Fund and the Fixed
Income 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 at least annually for all
Funds. 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 of 1986, as amended (the
"Code"), and make the requisite distributions to its shareholders which will be
sufficient to relieve it from Federal income and excise taxes.
34
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
1. Significant Accounting Policies -- (cont'd)
Pursuant to an exemptive order issued by the Securities and Exchange
Commission, each Fund, along with other Funds advised by Credit Suisse Asset
Management, LLC, the Fund's investment adviser ("CSAM LLC") (collectively the
"Warburg Funds"), may transfer uninvested cash balances to a pooled cash
account, which is invested in repurchase agreements secured by U.S. government
securities. Securities pledged as collateral for repurchase agreements are held
by the Funds' custodian bank until the agreements mature. Each agreement
requires that the market value of the collateral be sufficient to cover payments
of interest and principal; however, in the event of default or bankruptcy by the
other party to the agreement, retention of the collateral may be subject to
legal proceedings. At October 31, 1999, the Funds had no investments in
repurchase agreements.
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 their
transfer agent expense. For the year ended October 31, 1999, the Funds received
credits or reimbursements under this arrangement as follows:
Fund Amount
---- -------
Intermediate Government $ 3,900
New York Municipal 6,350
Fixed Income 30,417
Global Fixed Income 9,393
35
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
2. Investment Adviser, Co-Administrators and Distributor
On July 6, 1999, CSAM LLC became each Fund's investment adviser as a result
of the acquisition of Warburg Pincus Asset Management, Inc. ("Warburg Pincus")
by Credit Suisse Group ("Credit Suisse"). Warburg Pincus was combined with CSAM
LLC, which is an indirect wholly-owned U.S. subsidiary of Credit Suisse. For its
investment advisory services, CSAM LLC receives the following fees based on each
Fund's average daily net assets:
Fund Annual Rate
------ ----------------------------------
Intermediate Government .50% of average daily net assets
New York Municipal .40% of average daily net assets
Fixed Income .50% of average daily net assets
Global Fixed Income 1.00% of average daily net assets
For the year ended October 31, 1999, investment advisory fees and voluntary
waivers were as follows:
Gross Net
Fund Advisory Fee Waiver Advisory Fee
---- ------------- ---------- ------------
Intermediate Government $ 340,960 $(185,777) $ 155,183
New York Municipal 397,528 (97,206) 300,322
Fixed Income 2,066,252 (177,049) 1,889,203
Global Fixed Income 1,483,284 (841,078) 642,206
Counsellors Funds Service, Inc. ("CFSI"), a wholly-owned subsidiary of CSAM
LLC served as co-administrator of each Fund until November 1, 1999. On November
1, 1999, Credit Suisse Asset Management Securities, Inc. ("CSAMSI") replaced
CFSI as co-administrator to each Fund. PFPC Inc. ("PFPC"), an indirect,
wholly-owned subsidiary of PNC Bank Corp. ("PNC"), also serves as each Fund's
co-administrator. For its administrative services, CSAMSI, currently receives a
fee calculated at an annual rate of .10% of each Fund's average daily net
assets. For the year ended October 31, 1999, administrative services fees earned
by CFSI were as follows:
Fund Co-Administration Fee
---- ---------------------
Intermediate Government $ 68,192
New York Municipal 99,382
Fixed Income 413,250
Global Fixed Income 148,328
For administrative services, PFPC currently receives a fee calculated at an
annual rate of .05% of each Fund's average daily net assets, exclusive of
out-of-pocket expenses.
36
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
2. Investment Adviser, Co-Administrators and Distributor -- (cont'd)
For the year ended October 31, 1999, administrative services fees earned
and voluntarily waived by PFPC (including out-of-pocket expenses) were as
follows:
Net
Co-Administration Co-Administration
Fund Fee Waiver Fee
---- ----------------- ------- -----------------
Intermediate Government $ 38,550 $(2,440) $ 36,110
New York Municipal 61,454 0 61,454
Fixed Income 217,257 0 217,257
Global Fixed Income 78,375 0 78,375
CSAMSI also serves as each Fund's distributor. Provident Distributors, Inc.
will become each Fund's distributor effective January 3, 2000. No compensation
is paid by the Common Class shares to CSAMSI for distribution services. CSAMSI
receives a fee calculated at an annual rate of .25% of the average daily net
assets of the Advisor Class shares of the Intermediate Government Fund and Fixed
Income Fund, and .50% of the average daily net assets of the Advisor Class
shares of the Global Fixed Income Fund pursuant to Rule 12b-1 under the 1940
Act. CSAMSI pays all of the Advisor Class shares fees to institutions and
financial-services firms that offer the Advisor Class shares. For the year ended
October 31, 1999, shareholder servicing and distribution fees paid to CSAMSI
were as follows:
Shareholder Servicing/
Fund Distribution Fee
---- ----------------------
Intermediate Government $ 36
Fixed Income 9,445
Global Fixed Income 12,388
3. Line of Credit
The Funds, together with other Funds advised by CSAM, have established a
$250 million committed, unsecured, line of credit facility ("Credit Facility")
with Deutsche Bank AG as administrative agent, State Street Bank and Trust
Company as operations agent, Bank of Nova Scotia as syndication agent as well as
certain other lenders, for temporary or emergency purposes primarily relating to
unanticipated Fund share redemption. Under the terms of the Credit Facility, the
Funds with access to the Credit Facility pay an aggregate commitment fee at a
rate of .075% per annum on the average daily balance of the Credit Facility that
is undisbursed and uncanceled during the preceding quarter allocated among the
participating Funds in such manner as is determined by the governing Boards of
the various Funds. In addition, the participating Funds will pay interest on
borrowing at the Federal funds rate plus .50%. At October 31, 1999, and during
the year ended October 31, 1999, the Funds had no borrowings under the credit
facility.
37
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
4. Investments in Securities
For the year ended October 31, 1999, 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
----------------------- ---------------------------
Purchases Sales Purchases Sales
--------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Intermediate Government $ 0 $ 250,931 $ 58,459,548 $ 69,284,769
New York Municipal 52,546,965 70,943,934 0 0
Fixed Income 218,489,711 245,974,521 336,733,690 350,467,937
Global Fixed Income 307,346,682 318,014,276 185,329,740 188,206,070
</TABLE>
At October 31, 1999, 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:
Net
Unrealized Unrealized Unrealized
Fund Appreciation Depreciation Depreciation
---- ------------ -------------- -------------
Intermediate Government $ 53,915 $ (1,066,439) $ (1,012,524)
New York Municipal 568,773 (1,002,132) (433,359)
Fixed Income 508,380 (12,451,565) (11,943,185)
Global Fixed Income 4,304,271 (8,400,660) (4,096,389)
5. 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 and from movements
in the value of a foreign currency relative to the U.S. dollar and from the
potential default of counterparties to the contract. Each Fund will enter into
forward contracts primarily for hedging purposes. However, on occasion the Funds
may enter into forward contracts for speculative purposes, which may increase
the Fund's investment risk. 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.
38
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
5. Forward Foreign Currency Contracts -- (cont'd)
At October 31, 1999, the Global Fixed Income Fund had the following open
forward foreign currency contracts:
<TABLE>
<CAPTION>
Unrealized
Foreign
Expiration Foreign Currency Contract Contract Exchange
Forward Currency Contract Date To Be Sold Amount Value Gain/(Loss)
- ------------------------- ---------- ---------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
European Economic Unit 01/20/2000 30,585,927 $33,216,945 $32,350,735 $866,210
Swedish Krona 01/20/2000 41,000,000 5,045,532 5,003,905 41,627
Canadian Dollar 01/20/2000 6,880,000 4,615,591 4,688,884 (73,293)
Japanese Yen 01/20/2000 388,500,000 3,739,882 3,774,725 (34,843)
South African Rand 01/20/2000 14,000,000 2,242,304 2,251,564 (9,260)
----------- ----------- --------
$48,860,254 $48,069,813 $790,441
=========== =========== ========
</TABLE>
6. Futures Contracts
Each Fund may enter into futures contracts to the extent permitted by its
investment policies and objectives. Upon entering into a futures contract, a
Fund is required to 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 for hedging purposes 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. In addition, the
purchase of a futures contract involves the risk that a Fund could lose more
than the original margin deposit and subsequent payments required for a futures
transaction. For the year ended October 31, 1999, the Funds did not enter into
futures contracts.
7. Capital Share Transactions
The Intermediate Government Fund and the Global Fixed Income Fund are each
authorized to issue three billion full and fractional shares of capital stock,
$.001 par value per share, of which two billion shares are classified as the
Advisor Class shares. The New York Municipal Fund and the Fixed Income Fund are
each authorized to issue an unlimited number of full and fractional shares of
beneficial interest, $.001 par value per share, of which an unlimited number of
shares are classified as the Common Class and an unlimited number of shares are
classified as the Advisor Class.
39
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
7. Capital Share Transactions -- (cont'd)
Transactions in classes of each Fund were as follows:
<TABLE>
<CAPTION>
Intermediate Government Fund
---------------------------------------------------------
Common Class Advisor Class
------------------------------ ----------------------
For the Year Ended For the Year Ended
October 31, October 31,
------------------------------ ----------------------
1999 1998 1999 1998
------------ ------------ --------- -------
<S> <C> <C> <C> <C>
Shares sold 6,866,626 7,804,541 1,181 861
Shares issued to shareholders on reinvestment
of dividends and distributions 360,109 252,353 81 33
Shares redeemed (8,973,318) (5,334,372) (312) (20)
------------ ------------ -------- -------
Net increase (decrease) in shares outstanding (1,746,583 2,722,522 950 874
============ ============ ======== =======
Proceeds from sale of shares $ 68,853,863 $ 79,566,141 $ 11,765 $ 8,731
Reinvested dividends and distributions 3,611,795 2,563,729 803 336
Net asset value of shares redeemed (89,905,584) (54,237,972) (3,147) (202)
------------ ------------ -------- -------
Net increase (decrease) from capital
share transactions $(17,439,926) $ 27,891,898 $ 9,421 $ 8,865
============ ============ ======== =======
<CAPTION>
New York Municipal Fund
---------------------------------------------------------
Common Class Advisor Class
------------------------------ ----------------------
For the Year Ended For the Year Ended
October 31, October 31,
------------------------------ ----------------------
1999 1998 1999 1998
------------ ------------ --------- --------
<S> <C> <C> <C> <C>
Shares sold 5,216,327 4,761,389 0 0
Shares issued to shareholders on reinvestment
of dividends and distributions 392,124 334,796 0 0
Shares redeemed (7,392,453) (3,553,241) (16) 0
------------ ------------ ----- --
Net increase (decrease) in shares outstanding (1,784,002) 1,542,944 (16) 0
============ ============ ===== ==
Proceeds from sale of shares $ 54,393,636 $ 49,747,129 0 $0
Reinvested dividends and distributions 4,058,953 3,489,600 0 4
Net asset value of shares redeemed (76,643,566) (37,058,061) (165) 0
------------ ------------ ----- --
Net increase (decrease) from capital
share transactions $(18,190,977) $ 16,178,668 $(165) $4
============ ============ ===== ==
</TABLE>
40
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
7. Capital Share Transactions -- (cont'd)
<TABLE>
<CAPTION>
Fixed Income Fund
------------------------------------------------------------
Common Class Advisor Class
------------------------------ -------------------------
For the Year Ended For the Year Ended
October 31, October 31,
------------------------------ -------------------------
1999 1998 1999 1998
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
Shares sold 18,227,693 26,398,769 439,586 100,566
Shares issued to shareholders on reinvestment
of dividends and distributions 2,122,951 1,946,842 21,355 21,378
Shares redeemed (21,257,886) (13,107,841) (65,295) (208,103)
------------- ------------- ----------- -----------
Net increase (decrease) in shares outstanding (907,242) 15,237,770 395,646 (86,159)
============= ============= =========== ===========
Proceeds from sale of shares $ 185,177,834 $ 274,574,003 $ 4,390,502 $ 1,043,897
Reinvested dividends and distributions 21,509,897 20,199,526 215,485 221,585
Net asset value of shares redeemed (215,896,103) (136,202,146) (657,513) (2,159,507)
------------- ------------- ----------- -----------
Net increase (decrease) from capital
share transactions $ (9,208,372) $ 158,571,383 $ 3,948,474 $ (894,025)
============= ============= =========== ===========
<CAPTION>
Global Fixed Income Fund
-----------------------------------------------------------------
Common Class Advisor Class
------------------------------- ------------------------------
For the Year Ended For the Year Ended
October 31, October 31,
------------------------------- ------------------------------
1999 1998 1999 1998
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
Shares sold 7,349,863 9,874,066 6,616 157,868
Shares issued to shareholders on reinvestment
of dividends 712,944 1,031,287 14,067 52,605
Shares redeemed (9,371,367) (14,237,226) (630,756) (413,879)
------------ ------------- ----------- -----------
Net decrease in shares outstanding (1,308,560) (3,331,873) (610,073) (203,406)
============ ============= =========== ===========
Proceeds from sale of shares $ 77,695,811 $ 103,490,118 $ 69,749 $ 1,658,613
Reinvested dividends 7,433,475 10,706,804 148,402 545,336
Net asset value of shares redeemed (98,813,056) (149,374,012) (6,705,155) (4,279,669)
------------ ------------- ----------- -----------
Net decrease from capital
share transactions $(13,683,770) $ (35,177,090) $(6,487,004) $(2,075,720)
============ ============= =========== ===========
</TABLE>
41
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
8. Liabilities
At October 31, 1999, each Fund had the following liabilities:
<TABLE>
<CAPTION>
Intermediate New York Fixed Global Fixed
Government Fund Municipal Fund Income Fund Income Fund
--------------- -------------- ----------- -----------
<S> <C> <C> <C> <C>
Payable for securities purchased $ 0 $1,964,764 $ 0 $1,576,574
Investment advisory fee payable 17,214 8,023 108,347 50,898
Administrative services fees payable 4,881 7,327 34,093 11,452
Payable for fund shares redeemed 551,894 660,771 418,170 226,460
Distributions payable 39,784 41,300 254,263 0
</TABLE>
9. Net Assets
At October 31, 1999, capital contributions, undistributed net investment
income, accumulated net realized gain (loss) from security transactions and
current period distributions have been adjusted for current period permanent
book/tax differences which arose principally from differing book/tax treatments
of foreign currency transactions. The Intermediate Government Fund, New York
Municipal Fund and the Fixed Income Fund reclassified $(720), $(210) and
$(43,602) respectively from accumulated net realized gain (loss) from security
transactions to capital contributed. The Fixed Income Fund reclassified $(783)
and $(103,373) from undistributed net investment income to capital contributed
and accumulated net realized gain (loss) from security transactions
respectively. The Global Fixed Income Fund reclassified $2,918,869 from
accumulated net realized gain on foreign currency related items to undistributed
net investment income.
Net Assets at October 31, 1999 consisted of the following:
<TABLE>
<CAPTION>
Intermediate New York Fixed Global Fixed
Government Fund Municipal Fund Income Fund Income Fund
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Capital contributed, net $ 58,384,407 $ 84,750,816 $ 414,100,525 $ 149,724,387
Undistributed net investment income 0 0 62,993 2,605,936
Accumulated net realized loss from
security transactions (773,905) (383,534) (2,083,523) (13,691,198)
Net unrealized depreciation
from investments and foreign currency
related items (965,251) (433,359) (11,829,992) (3,243,419)
------------ ------------ ------------- -------------
Net assets $ 56,645,251 $ 83,933,923 $ 400,250,003 $ 135,395,706
============ ============ ============= =============
</TABLE>
10. Capital Loss Carryover
At October 31, 1999, capital loss carryovers available to offset possible
future capital gains of each Fund were as follows:
<TABLE>
<CAPTION>
Capital Loss Carryover Expires in
-------------------------------------------------- Total Capital
Fund 2002 2003 2006 2007 Loss Carryover
- ---- ------- -------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
Intermediate Government $ 0 $ 0 $ 0 $ 726,633 $ 726,633
New York Municipal 0 0 0 383,534 383,534
Fixed Income 0 0 0 1,970,328 1,970,328
Global Fixed Income 517,856 329,870 6,945,772 5,824,681 13,618,179
</TABLE>
42
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
11. Other Financial Highlights
Each Fund (other than the New York Municipal Fund) currently offers one
other class of shares, the Advisor Class shares, representing equal pro rata
interests in each of the respective Funds. The financial highlights for an
Advisor Class share of each Fund are as follows:
<TABLE>
<CAPTION>
Intermediate Maturity Government Fund
-------------------------------------
Advisor Class
-------------------------------------
For the Year Ended October 31,
-------------------------------------
PERIOD ENDED: 1999 1998 1997**
------ ------ ------
<S> <C> <C> <C>
Per-share data
Net asset value, beginning of period $10.38 $10.06 $ 9.95
------ ------ ------
Investment activities:
Net investment income 0.51 0.53 0.11
Net gains (losses) on investments and foreign
currency related items (both realized and unrealized) (0.55) 0.32 0.11
------ ------ ------
Total from investment activities (0.04) 0.85 0.22
------ ------ ------
Less Dividends and Distributions:
Dividends from net investment income (0.51) (0.53) (0.11)
Distributions from realized capital gains (0.05) 0.00 0.00
Distributions in excess of realized capital gains (0.01) 0.00 0.00
------ ------ ------
Total dividends and distributions (0.57) (0.53) (0.11)
------ ------ ------
Net asset value, end of period $ 9.77 $10.38 $10.06
====== ====== ======
Total return (0.39)% 8.99% 2.22%+
Ratios/Supplemental Data:
Net assets, end of period (000s omitted) $20 $12 $2
Ratio of expenses to average net assets 0.86%@ 0.85%@ 0.85%*@
Ratio of net loss to average net assets 5.08% 5.28% 5.62%*
Decrease reflected in above operating expense ratios
due to waivers/reimbursements 0.30% 3.30% 0.00%*
Portfolio turnover rate 91.13% 133.98% 104.34%+
</TABLE>
- --------------------
Non-annualized.
* Annualized.
** For the period August 15, 1997 (Commencement of Operations) through October
31, 1997.
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Advisor Class shares' expense ratio by .01%, .00%, and .00% for the
years or period ended October 31, 1999, 1998, and 1997, respectively. The
Advisor Class shares' operating expense ratio after reflecting these
arrangements was .85% for the years or period ended October 31, 1999, 1998,
and 1997, respectively.
43
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
11. Other Financial Highlights -- (cont'd)
<TABLE>
<CAPTION>
Fixed Income Fund
--------------------------------------------------
Advisor Class
--------------------------------------------------
For the Year Ended October 31,
--------------------------------------------------
PERIOD ENDED: 1999 1998 1997 1996**
------ ------ ------ ------
<S> <C> <C> <C> <C>
Per-share data
Net asset value, beginning of period $10.41 $10.43 $10.10 $ 9.90
------ ------ ------ ------
Investment activities:
Net investment income 0.54 0.56 0.60 0.19
Net gains (losses) on investments and foreign currency
related items (both realized and unrealized) (0.48) 0.07 0.33 0.20
------ ------ ------ ------
Total from investment activities 0.06 0.63 0.93 0.39
------ ------ ------ ------
Less Dividends and Distributions:
Dividends from net investment income (0.54) (0.56) (0.60) (0.19)
Distributions from realized capital gains (0.04) (0.09) 0.00 0.00
------ ------ ------ ------
Total dividends and distributions (0.58) (0.65) (0.60) (0.19)
------ ------ ------ ------
Net asset value, end of period $ 9.89 $10.41 $10.43 $10.10
====== ====== ====== ======
Total return 0.67% 6.21% 9.51% 3.93%+
Ratios/Supplemental Data:
Net assets, end of period (000s omitted) $6,817 $3,058 $3,963 $ 911
Ratio of expenses to average net assets 1.01%@ 1.00%@ 1.00%@ 1.00%*@
Ratio of net income to average net assets 5.38% 5.40% 5.62% 5.85%*
Decrease reflected in above operating ratios
due to waivers/reimbursements 0.05% 0.04% 0.08% 0.11%*
Portfolio turnover rate 144.02% 124.04% 129.06% 194.23%+
</TABLE>
- ------------------
+ Non-annualized.
* Annualized.
** For the period July 3, 1996 (Commencement of Operations) through October 31,
1996.
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements resulted in a reduction to
the Advisor Class shares' expense ratio by .01%, .00%, .00%, and .00% for
the years or period ended October 31, 1999, 1998, 1997, and 1996,
respectively. The Advisor Class shares' operating expense ratio after
reflecting these arrangements was 1.00% for the years or period ended
October 31, 1999, 1998, 1997, and 1996, respectively.
44
<PAGE>
Warburg Pincus Fixed Income Funds
Notes to Financial Statements (cont'd)
October 31, 1999
- -------------------------------------------------------------------------------
11. Other Financial Highlights -- (cont'd)
<TABLE>
<CAPTION>
Global Fixed Income Fund
--------------------------------------------------
Advisor Class
--------------------------------------------------
For the Year Ended October 31,
--------------------------------------------------
PERIOD ENDED: 1999 1998 1997 1996**
------ ------ ------ ------
<S> <C> <C> <C> <C>
Per-share data
Net asset value, beginning of period $10.57 $10.90 $11.17 $10.90
------ ------ ------ ------
Investment activities:
Net investment income 0.44(a) 0.37 0.41 0.10
Net gains (losses) on investments and foreign currency
related items (both realized and unrealized) (0.29) (0.02) 0.15 0.27
------ ------ ------ ------
Total from investment activities 0.15 0.35 0.56 0.37
------ ------ ------ ------
Less Dividends and Distributions:
Dividends from net investment income (0.00) (0.68) (0.29) (0.10)
Dividends in excess of net investment income (0.24) 0.00 0.00 0.00
Distributions from realized capital gains 0.00 0.00 (0.54) 0.00
------ ------ ------ ------
Total dividends and distributions (0.24) (0.68) (0.83) (0.10)
------ ------ ------ ------
Net asset value, end of period $10.48 $10.57 $10.90 $11.17
====== ====== ====== ======
Total return 1.41% 3.51% 5.18% 3.41%+
Ratios/Supplemental Data:
Net assets, end of period (000s omitted) $69 $6,518 $8,935 $39
Ratio of expenses to average net assets 1.45%@ 1.45%@ 1.45%@ 1.45%*@
Ratio of net income to average net assets 4.14% 4.75% 4.76% 5.69%*
Decrease reflected in above operating expense
ratios due to waviers/reimbursements 0.49% 0.37% 0.33% 0.21%*
Portfolio turnover rate 365.02% 233.73% 202.92% 123.90%+
</TABLE>
- --------------
(a) Per share information is calculated using the average outstanding
shares method.
+ Non-annualized.
* Annualized.
** For the period August 12, 1996 (Commencement of Operations) through
October 31, 1996.
@ Interest earned on uninvested cash balances is used to offset portions of
the transfer agent expense. These arrangements had no effect on the Advisor
Class shares' expense ratio.
45
<PAGE>
Warburg Pincus Fixed Income Funds
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
Warburg, Pincus Intermediate Maturity Government Fund, Inc.;
Warburg, Pincus New York Intermediate Municipal Fund, Inc.;
Warburg, Pincus Fixed Income Fund, Inc.; and
Warburg, Pincus Global Fixed Income Fund, Inc.;
In our opinion, the accompanying statements of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Warburg, Pincus Intermediate Maturity Government Fund, Inc., Warburg, Pincus New
York Intermediate Municipal Fund, Inc., Warburg, Pincus Fixed Income Fund, Inc.
and Warburg, Pincus Global Fixed Income Fund, Inc. (all funds collectively
referred to as the "Funds") at October 31, 1999, and the results of each of
their operations for the year then ended, the changes in each of their net
assets for each of the two years in the period then ended and the financial
highlights for each of the years (or periods) presented in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 1999 by
correspondence with the custodians and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
2400 Eleven Penn Center
Philadelphia, Pennsylvania
December 10, 1999
46
<PAGE>
ANNUAL REPORT
October 31, 1999
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
WARBURG PINCUS FIXED INCOME FUND
WARBURG PINCUS GLOBAL FIXED INCOME FUND
Shareholder Meeting Results
A special meeting of shareholders of each Fund was held on May 21, 1999. At the
special meeting, the following persons were elected as directors of each Fund,
constituting the entire Board of Directors: Richard H. Francis, Jack W. Fritz,
Jeffrey E. Garten, James S. Pasman, Jr., William W. Priest, Steven N. Rappaport,
Arnold M. Reichman and Alexander B. Trowbridge.
In addition, shareholders of each Fund voted on the following matters:
<TABLE>
<S> <C>
Proposal 1: Approval of a new investment advisory agreement
between each Fund and Credit Suisse Asset
Management, LLC.
Proposal 2: Ratification of the selection of
PricewaterhouseCoopers
LLP as the independent accountants for each of
the Funds for the fiscal year ending October 31,
1999.
</TABLE>
The voting results for each Fund were as follows:
Election of Directors:
<TABLE>
<S> <C> <C>
|INTERMEDIATE MATURITY GOVERNMENT FOR | WITHHELD |
|Richard H. Francis 4,350,340.6926 | 19,616.1655 |
|Jack W. Fritz 4,351,002.6926 | 18,954.1655 |
|Jeffrey E. Garten 4,350,340.6926 | 19,616.1655 |
|James S. Pasman, Jr. 4,350,340.6926 | 19,616.1655 |
|William W. Priest 4,351,002.6926 | 18,954.1655 |
|Steven N. Rappaport 4,351,002.6926 | 18,954.1655 |
|Arnold M. Reichman 4,350,340.6926 | 19,616.1655 |
|Alexander B. Trowbridge 4,351,002.6926 | 18,954.1655 |
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
|NEW YORK INTERMEDIATE MUNICIPAL FOR | WITHHELD |
|Richard H. Francis 6,808,728.1843 | 70,276.3567 |
|Jack W. Fritz 6,808,966.0863 | 70,038.4547 |
|Jeffrey E. Garten 6,815,238.3093 | 63,766.2317 |
|James S. Pasman, Jr. 6,813,336.1613 | 65,668.3797 |
|William W. Priest 6,808,728.1843 | 70,276.3567 |
|Steven N. Rappaport 6,810,897.1843 | 68,107.3567 |
|Arnold M. Reichman 6,813,336.1613 | 65,668.3797 |
|Alexander B. Trowbridge 6,810,897.1843 | 68,107.3567 |
|FIXED INCOME FOR | WITHHELD |
|Richard H. Francis 25,969,361.5729 | 218,661.7336 |
|Jack W. Fritz 25,980,896.7229 | 207,126.5836 |
|Jeffrey E. Garten 25,994,768.7679 | 193,254.5386 |
|James S. Pasman, Jr. 25,972,380.5069 | 215,642.7996 |
|William W. Priest 25,995,235.5069 | 192,787.7996 |
|Steven N. Rappaport 25,988,362.3949 | 199,660.9116 |
|Arnold M. Reichman 26,008,117.1329 | 179,906.1736 |
|Alexander B. Trowbridge 25,983,009.9769 | 205,013.3296 |
|GLOBAL FIXED INCOME FOR | WITHHELD |
|Richard H. Francis 11,679,337.2769 | 121,797.0966 |
|Jack W. Fritz 11,691,722.7339 | 109,411.6396 |
|Jeffrey E. Garten 11,684,332.3009 | 116,802.0726 |
|James S. Pasman, Jr. 11,688,975.3169 | 112,159.0566 |
|William W. Priest 11,690,302.6479 | 110,831.7256 |
|Steven N. Rappaport 11,688,520.4409 | 112,613.9326 |
|Arnold M. Reichman 11,690,643.2289 | 110,491.1446 |
|Alexander B. Trowbridge 11,690,345.1049 | 110,789.2686 |
</TABLE>
<PAGE>
Proposal 1:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
| INTERMEDIATE | NEW YORK | | |
| MATURITY | INTERMEDIATE | | GLOBAL FIXED |
| GOVERNMENT | MUNICIPAL | FIXED INCOME | INCOME |
-------------- -------------- --------------- ---------------
| TOTAL NUMBER | TOTAL NUMBER | TOTAL NUMBER | TOTAL NUMBER |
| OF VOTES | OF VOTES | OF VOTES | OF VOTES |
Approve | 4,296,352.6852 | 6,743,833.4568 | 25,253,985.4464 | 11,479,613.6442 |
Disapprove | 20,675.6472 | 15,482.7407 | 421,191.6385 | 121,583.8652 |
Abstain | 52,928.5257 | 119,688.3435 | 512,846.2216 | 199,936.8641 |
</TABLE>
Proposal 2:
<TABLE>
<S> <C> <C> <C> <C> <C>
| INTERMEDIATE | NEW YORK | | |
| MATURITY | INTERMEDIATE | | GLOBAL FIXED |
| GOVERNMENT | MUNICIPAL | FIXED INCOME | INCOME |
-------------- -------------- --------------- ---------------
| TOTAL NUMBER | TOTAL NUMBER | TOTAL NUMBER | TOTAL NUMBER |
| OF VOTES | OF VOTES | OF VOTES | OF VOTES |
Approve | 4,347,244.6666 | 6,846,128.9558 | 25,693,965.1733 | 11,649,048.9785 |
Disapprove | 7,486.0786 | 3,386.2965 | 279,360.8137 | 58,643.6974 |
Abstain | 15,226.1129 | 29,489.2887 | 214,697.3195 | 93,441.6976 |
</TABLE>
<PAGE>
Warburg Pincus Fixed Income Funds
Shareholder Tax Information (Unaudited)
- -------------------------------------------------------------------------------
Each Fund is required by Subchapter M of the Code, to advise its
shareholders within 60 days of each Fund's fiscal year end as to the U.S.
federal tax status distributions received by the Fund's shareholders in respect
of such fiscal year. During the fiscal year ended October 31, 1999, the
following dividends and distributions per share were paid by each of the Funds:
<TABLE>
<CAPTION>
Ordinary Long-term % of Ordinary Income Dividend
Income Capital Gains Qualifying for
Fund Per Share Per Share Dividends Received Deduction*
- ---- --------- ------------- ------------------------------
1998
------
Payment dates Month End 12/31/98
- ------------- --------- --------
<S> <C> <C> <C>
Intermediate Maturity Government 0.00
Common Shares $0.1333 $0.0179
Advisor Shares 0.1290 0.0179
New York Intermediate Municipal** 0.00
Common Shares 0.0705 0.0596
Fixed Income 1.99
Common Shares 0.1356 0.0000
Advisor Shares 0.1313 0.0000
Payment date 12/04/98 12/04/98
- ---------------- -------- --------
Global Fixed Income 1.84
Common Shares $0.3003 $0.0000
Advisor Shares 0.2409 0.0000
</TABLE>
The above information was provided to calendar year taxpayers on Form
1099-DIV mailed in January of 1999.
<TABLE>
<CAPTION>
Ordinary % of Ordinary Income Dividend
Income Qualifying for
Fund Per Share Dividends Received Deduction*
- ---- --------- ------------------------------
1999
------
Payment dates Month End
- ------------- ---------
<S> <C> <C>
Intermediate Maturity Government 0.00
Common Shares 0.4426
Advisor Shares 0.4225
New York Intermediate Municipal** 0.00
Common Shares 0.3465
Fixed Income 3.47
Common Shares 0.4783
Advisor Shares 0.4571
Payment dates 03/31/99, 06/30/99, 09/30/99
- ------------- ----------------------------
Global Fixed Income 2.30
Common Shares $0.3000
Advisor Shares 0.0000
</TABLE>
47
<PAGE>
Warburg Pincus Fixed Income Funds
Shareholder Tax Information (Unaudited)(cont'd)
- -------------------------------------------------------------------------------
Because the fiscal year of the Funds is not a calendar year, another
notification will be sent with respect to calendar year 1999. The second
notification, which will reflect the amount to be used by calendar year
taxpayers on their U.S. federal income tax returns, will be made in conjunction
with Form 1099-DIV and will be mailed in January 2000.
- ------------------
* Available to Corporate Shareholders only.
** 100% of the dividends paid by this Fund were exempt-interest dividends
for the purposes of federal income tax.
48
<PAGE>
[GRAPHIC]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) o www.warburg.com
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR WPBDF-2-1099
