[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
SEMIANNUAL
REPORT
APRIL 30, 2000
(UNAUDITED)
WARBURG PINCUS
INTERMEDIATE MATURITY GOVERNMENT FUND
(BULLET)
WARBURG PINCUS
NEW YORK INTERMEDIATE MUNICIPAL FUND
(BULLET)
WARBURG PINCUS
FIXED INCOME FUND
(BULLET)
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.
Provident Distributors, Inc., Distributor, located at Four Falls Corporate
Center, 6th floor, West Conshohocken, PA 19428-2961 is not affiliated with
Credit Suisse Asset Management, LLC. 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 APRIL 30, 2000; THESE
VIEWS AND PORTFOLIO HOLDINGS MAY HAVE CHANGED SUBSEQUENT TO THESE DATES.
NOTHING IN THIS DOCUMENT IS A RECOMMENDATION TO PURCHASE OR SELL SECURITIES.
FUND SHARES ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF CREDIT SUISSE ASSET
MANAGEMENT, LLC ("CSAM") OR ANY AFFILIATE, ARE NOT FDIC INSURED AND ARE NOT
GUARANTEED BY CSAM OR ANY AFFILIATE. FUND INVESTMENTS ARE SUBJECT TO INVESTMENT
RISKS, INCLUDING LOSS OF YOUR INVESTMENT.
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Intermediate Maturity Government Fund had a return of 1.00%, vs. a return
of 1.05% for the Lehman Brothers Intermediate Government Bond Index.* The Fund's
one-year return through April 30, 2000 was 1.00%. Its five-year, 10-year and
since-inception (on August 22, 1988) average annual total returns through April
30, 2000 were 5.86%, 7.17% and 7.27%, respectively.
The domestic bond market continued to struggle, hampered by a difficult
interest-rate backdrop. The Federal Reserve raised interest rates three times
during the six months, while leaving the door open to additional increases,
reflecting its ongoing effort to keep inflation under control within a strong
economy. Still, most major bond indexes had positive results for the period in
terms of total return, i.e., bond-price changes plus coupon income. Factors that
helped bonds, and government bonds in particular, included late-period
volatility in the stock market (which increased demand for safety and liquidity)
and announced buybacks of Treasury securities.
Our strategy throughout was to manage the Fund's interest-rate exposure from
a risk-reward perspective. In practice, this meant extending the Fund's duration
when inflation-adjusted yields were, in our view, attractive, and reducing
duration when we believed market fundamentals were less favorable. We sought to
keep a firm hand on risk, and thus attempted to err on the side of caution.
In terms of sector allocation, we maintained a bias in favor of
government-agency bonds, including mortgage "pass through" bonds. We deemed
agency bonds to be compelling on a risk-adjusted yield basis: They continued to
offer higher yields compared to yields on comparable-maturity Treasury bonds,
yet with minimal added credit risk.
Going forward, our efforts will remain devoted to providing what
we deem to be attractive levels of yield while maintaining a high-quality
portfolio. In this context, 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
---------------------
* The Lehman Brothers Intermediate Bond Index is an unmanaged index (with no
defined investment objective) of intermediate-term government bonds, and is
calculated by Lehman Brothers Inc.
1
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus New York Intermediate Municipal Fund had a gain of 1.61%, vs. a gain of
1.22% for the Lehman Brothers Five-Year Municipal Bond Index.* The Fund's
one-year return through April 30, 2000 was a negative 0.07%. Its five- and
10-year average annual total returns through April 30, 2000 were 4.47% and
5.85%, respectively.
Municipal bonds struggled during the period, reflecting a difficult
interest-rate environment. Due to a strong economy, the Federal Reserve
continued its efforts to control inflation by raising interest rates, moves that
weighed on bond prices. Still, most municipal-bond indexes had gains in terms of
total return (which includes coupon income) for the six months, and municipal
bonds performed well vs. their taxable counterparts. Factors that helped
mitigate interest-rate and inflation worries included a supportive supply
backdrop, with the strong and improving financial conditions of municipalities
resulting in less debt issuance.
We made few noteworthy changes to the Fund during the period in terms of its
interest-rate exposure. We kept the Fund's average duration fairly close to that
of its benchmark, making marginal adjustments as we deemed appropriate on a
risk-vs.-reward basis. Our duration-management strategy contributed positively
to the Fund's relative showing for the six months.
With respect to credit exposure, we maintained a strong bias in favor of
high-quality bonds (i.e., bonds rated A or higher). Yield spreads between
high-quality and lower-quality debt remained too narrow, in our view, to justify
the added credit risk. By sector, we maintained a mix of general-obligation and
revenue bonds, while largely avoiding health-care issues due to the industry's
uncertain regulatory backdrop.
2
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
Looking ahead, we have a favorable outlook on the New York municipal-bond
market, based on the potential for a continued supportive supply/demand
backdrop. We believe that supply should remain fairly stable, and could quite
possibly decline further, barring an unforeseen economic recession. We believe
that demand, meanwhile, is unlikely to fade, given municipal bonds' currently
compelling after-tax yields, especially for high-net-worth investors (which are
abundant in New York). Also standing to support the municipal-bond market is
continued credit upgrades, which lately have far outpaced downgrades both within
New York and nationally. Set within this environment, we will continue to strive
to identify bonds we judge to have the most attractive risk-adjusted after-tax
yields.
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.
-------------
* The Lehman Brothers Five-Year Municipal Bond Index is an unmanaged index
(with no defined investment objective) of municipal bonds, and is compiled by
Lehman Brothers Inc.
3
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Fixed Income Fund had a gain of 0.10%, vs. a gain of 1.06% for the Lehman
Brothers Intermediate Government/Corporate Bond Index.* The Fund's one-year
return through April 30, 2000 was 0.04%. Its five-year, 10-year and
since-inception (on August 17, 1987) average annual total returns through April
30, 2000 were 6.45%, 7.34 % and 7.21%, respectively.
The U.S. bond market continued to struggle, hampered by the Federal Reserve's
ongoing campaign to keep inflation at bay by raising interest rates (the Fed
increased rates three times during the six months). On a positive note, bonds
performed relatively well over the latter half of the period. This reflected
heightened volatility in the stock market, which sparked periodic flights to
safety; an improving supply/demand backdrop for Treasuries, especially long-term
Treasuries; and growing optimism that the Fed's rate hikes would end sooner
rather than later.
The Fund managed only a slight gain for the period, restrained by the
difficult environment for bonds and by its continued emphasis on corporate and
mortgage-backed bonds, which lagged Treasury securities in terms of total return
(i.e., bond-price changes plus coupon income). That notwithstanding, we
continued to view non-Treasury bonds as quite attractive on a relative-yield
basis.
We made no material changes to the Fund during the period in terms of basic
strategy, maintaining a focus on intermediate-term, high-quality bonds (the
Fund's average credit rating remained AA through the period) in order to limit
overall risk. We did, however, reduce the Fund's duration somewhat, a move we
deemed appropriate, given the prospects for continued Fed rate increases.
With regard to sector allocation, the most noteworthy move we made was to
further raise the Fund's weighting in mortgage-backed securities, which we
viewed as increasingly attractive from a risk-adjusted-yield perspective. Our
buying activity here was focused on Fannie Mae bonds carrying coupons in the 7%
to 8% range. We also maintained exposure to other agency mortgage-backed bonds
as well as commercial mortgage-backed securities. Elsewhere, we maintained a
significant weighting in corporate issues, which we also judged to have
compelling yields. As indicated, we remained underweighted in Treasury bonds.
4
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
Looking ahead, our view on the long-term picture for inflation and interest
rates remains constructive, though we see potential for continued upward
pressure on rates over the intermediate term. In this context, we plan to
maintain a fairly conservative duration stance, as we continue our efforts to
identify bonds with attractive risk-adjusted yields and appreciation potential.
M. Anthony E. van Daalen
Portfolio Manager
-----------------
* The Lehman Brothers 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.
5
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000
--------------------------------------------------------------------------------
June 20, 2000
Dear Shareholder:
For the six months ended April 30, 2000, the Common Class shares of Warburg
Pincus Global Fixed Income Fund had a gain of 1.14%, vs. returns of 3.37% for
the Salomon Brothers World Government Bond Index (Currency-Hedged)1, 1.41% for
the Lehman Brothers Aggregate Bond Index2 and 2.02% for a Composite Benchmark3.
The Fund's one-year return through April 30, 2000 was a negative 1.01%. Its
five-year and since-inception (on November 1, 1990) average annual total returns
through April 30, 2000 were 6.80% and 7.00%, respectively.
Global bond markets had mixed results for the period, with performance
varying by region. Within Europe, most bond markets had positive returns, though
performance was restrained by worries that a growing regional economy would put
upward pressure on inflation. The U.S. market also saw positive, albeit modest,
results, tempered by a difficult interest-rate backdrop. Elsewhere in developed
markets, Canadian and Australian bonds rallied while Japanese bonds were mostly
flat. Emerging-market bonds, meanwhile, had generally solid showings, buoyed by
continued optimism over the group's revenue growth and potential for credit
upgrades (however, high-yield bonds within developed markets were less
impressive).
The Fund had only a modest gain for the six months, restrained by the
uncertain interest-rate and inflation environment and by weakness in specific
issues, for example certain of its U.S. corporate holdings. On the positive
side, relatively good performers for the Fund included its U.S. Treasury
securities (roughly 14% of the Fund as of April 30), which were helped by an
improving supply/demand backdrop for these issues. Also supporting the Fund was
our currency strategy. We continued to hedge the bulk of the Fund's
foreign-currency exposure (as of April 30, about 90% of the Fund was denominated
in or hedged into U.S. dollars), which proved beneficial, as most major
currencies declined vs. the dollar during the period.
We made few noteworthy changes to the Fund during the period with respect to
its interest-rate exposure, credit-quality profile or regional/currency
emphasis. Regarding the first, the Fund's duration stood at 5.42 years on April
30, about equal to its level at the start of the period (though we made several
intra-period adjustments as we deemed appropriate from a risk/reward
perspective). We remained reluctant to take a more-aggressive stance, reflecting
our concerns over the near-term backdrop for interest rates, particularly within
the U.S.
In terms of credit exposure, we maintained a high-quality portfolio (whose
average credit rating was AA through the period), though we continued to
6
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SEMIANNUAL INVESTMENT ADVISER'S REPORT -- APRIL 30, 2000 (CONT'D)
--------------------------------------------------------------------------------
have a meaningful weighting in high-yield bonds (about 13% of the Fund as of
April 30). In fact, we modestly increased our position in high-yield debt as the
period progressed, taking advantage of market volatility to add several issues
we judged to be compelling. Our purchases included high-yield U.S. corporate
bonds as well as emerging-market issues, in particular those of Latin American
countries, where we generally saw the best values.
Our regional emphasis, through the period, remained on the U.S. and Europe,
with a continued bias toward the former. That said, we expect to gradually
increase our exposure to Europe at the expense of the U.S., over the
intermediate term, based on our outlook on these respective regions'
interest-rate dynamics.
Looking ahead, we believe that the global economy will continue to improve,
with potentially significant growth in certain areas. In this context, we intend
to maintain at least some exposure to high-yield bonds and foreign currencies
that stand to benefit from economic growth, while taking an overall relatively
cautious approach to interest-rate exposure. As ever, we will continue to strive
to deliver competitive total returns, focusing on bonds and currencies we deem
to have the brightest prospects.
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.
-----------
1 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.
2 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Government/Corporate Bond Index and the Lehman Brothers 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.
3 The Composite Benchmark measures the weighted performance of three component
indexes. The weights of the component indexes -- 50% Lehman Brothers
Aggregate 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. The Merrill
Lynch High Yield Master II Index provides a broad-based measure of the
performance of the non-investment-grade U.S. domestic bond market.
7
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
AGENCY OBLIGATIONS (1.1%)
$ 243,920 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10B Class 1 (Aaa, AAA) 04/01/02 7.450 $ 244,928
383,276 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10C Class 1 (Aaa, AAA) 07/01/02 6.600 381,472
-----------
TOTAL AGENCY OBLIGATIONS (Cost $627,196) 626,400
-----------
MORTGAGE-BACKED SECURITIES (77.4%)
2,814,934 Fannie Mae (Aaa, AAA) 12/01/05 6.625 2,684,605
1,948,088 Fannie Mae (Aaa, AAA) 08/01/07 6.750 1,860,229
2,000,000 Fannie Mae, Series 1998-15, Class PI (Aaa, AAA) 02/18/21 5.750 1,868,720
2,400,000 Fannie Mae, Series 1998-M4, Class B (Aaa, AAA) 12/25/23 6.424 2,283,300
1,675,000 Fannie Mae (Callable 12/10/02 @ $100.00) (Aaa, AAA) 12/10/07 6.560 1,574,621
2,700,000 Fannie Mae, Series 1998-15, Class PA (Aaa, AAA) 12/18/19 6.000 2,632,622
641,531 Fannie Mae (Aaa, AAA) 05/01/29 7.500 628,099
637,378 Fannie Mae (Aaa, AAA) 07/01/29 7.000 610,090
26,117 Fannie Mae (Aaa, AAA) 07/01/29 7.500 25,570
535,961 Fannie Mae (Aaa, AAA) 09/01/29 7.500 524,740
67,276 Fannie Mae (Aaa, AAA) 10/01/29 7.500 65,868
26,395 Fannie Mae (Aaa, AAA) 11/01/29 7.000 25,265
29,258 Fannie Mae (Aaa, AAA) 12/01/29 7.000 28,005
749,474 Fannie Mae (Aaa, AAA) 01/01/30 8.000 748,772
941,088 Fannie Mae (Aaa, AAA) 02/01/30 7.000 900,798
26,535 Fannie Mae (Aaa, AAA) 02/01/30 7.000 25,399
438,407 Fannie Mae (Aaa, AAA) 03/01/30 7.500 429,227
436,618 Fannie Mae (Aaa, AAA) 03/01/30 7.500 427,476
533,746 Fannie Mae (Aaa, AAA) 03/01/30 7.500 522,571
549,537 Fannie Mae (Aaa, AAA) 03/01/30 7.500 538,031
434,508 Fannie Mae (Aaa, AAA) 03/01/30 8.000 434,100
435,562 Fannie Mae (Aaa, AAA) 03/01/30 8.000 435,154
120,695 Fannie Mae (Aaa, AAA) 03/01/30 8.000 120,582
2,000,000 Fannie Mae, 1997-51, Class KB (Aaa, AAA) 03/20/08 7.000 1,940,623
2,000,000 Fannie Mae, Series 1993-196, Class J (Aaa, AAA) 10/25/08 5.500 1,846,250
2,450,000 Fannie Mae, Series 1993-50 (Aaa, AAA) 09/25/20 5.000 2,270,207
2,865,000 Federal Farm Credit Bank (Aaa, AAA) 05/01/02 5.250 2,766,203
1,820,000 Federal Home Loan Bank (Aaa, AAA) 04/25/02 5.250 1,759,441
2,250,000 Federal Home Loan Bank (Aaa, AAA) 03/06/03 5.720 2,164,550
3,000,000 Federal Home Loan Bank (Aaa, AAA) 09/02/03 5.575 2,853,654
2,450,000 Financial Assistance Corp.
(Callable 09/27/00 @ $100.00) (Aaa, AAA) 09/27/05 9.200 2,475,242
1,180,000 Freddie Mac (Aaa, AAA) 05/15/02 5.500 1,143,936
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
MORTGAGE-BACKED SECURITIES (CONT'D)
$1,495,000 Freddie Mac (Aaa, AAA) 07/15/03 5.750 $ 1,432,418
2,000,000 Freddie Mac, Series 1490, Class CA (Aaa, AAA) 04/15/08 6.500 1,932,141
925,838 GE Capital Mortgage Services, Inc.,
Series 1994-7, Class A10 (Aaa, AAA) 02/25/09 6.000 894,222
612,620 Morgan Stanley Mortgage Trust,
Series 40 Class 8 (Aaa, AAA) 07/20/21 7.000 603,746
-----------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $45,102,319) 43,476,477
-----------
U.S. GOVERNMENT OBLIGATIONS (16.7%)
910,000 U.S. Treasury Bonds (Aaa, AAA) 11/15/11 14.000 1,259,369
2,000,000 U.S. Treasury Notes (Aaa, AAA) 08/15/02 6.375 1,988,652
140,000 U.S. Treasury Notes (Aaa, AAA) 08/15/03 5.750 136,555
5,760,000 U.S. Treasury Notes (Aaa, AAA) 02/15/05 7.500 5,976,317
-----------
TOTAL U.S. GOVERNMENT OBLIGATIONS (Cost $9,401,163) 9,360,893
-----------
NUMBER
OF
SHARES
---------
SHORT TERM INVESTMENTS (4.2%)
2,346,997 RBB Money Market Portfolio (Cost $2,346,997) 2,346,997
-----------
TOTAL INVESTMENTS AT VALUE (99.4%) (Cost $57,477,675*) 55,810,767
OTHER ASSETS IN EXCESS OF LIABILITIES (0.6%) 349,084
-----------
NET ASSETS (100.0%) $56,159,851
===========
<FN>
--------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
* Cost for federal income tax purposes is $57,483,757.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (98.6%)
NEW YORK (87.9%)
$1,000,000 New York City General Obligation Bond
Series A-4 (Aa2, AA-) 08/01/21 5.900 $ 1,000,000
1,000,000 Long Island Power Authority Revenue Bond (Aaa, AAA) 04/01/04 5.000 998,750
1,750,000 Metropolitan Transportation Authority Commuter
Facilities Revenue Bond Series C-1 (Aaa, AAA) 07/01/05 6.000 1,822,187
2,000,000 Metropolitan Transportation Authority Commuter
Facilities Revenue Bond Series D (Aaa, AAA) 07/01/05 6.000 2,082,500
3,000,000 Municipal Assistance Corp. for New York City
Revenue Bond Series L (Aa2, AA) 07/01/04 6.000 3,116,250
2,000,000 Municipal Assistance Corp. for New York City
Revenue Bond Series M (Aa2, AA) 07/01/06 5.250 2,020,000
1,350,000 Nassau County New York General Obligation
Bond General Improvements
Series R (FGIC Insured) (Aaa, AAA) 11/01/02 5.125 1,356,750
3,000,000 New York City General Obligation Bond
Series A (A3, A-) 08/01/06 7.000 3,258,750
60,000 New York City General Obligation
Bond Series L (A3, A-) 08/01/02 5.500 60,900
2,550,000 New York City Municipal Water Finance Authority
& Sewer System Revenue Bond Series A
(Pre-Refunded 06/15/05 @ $101.00) (Aaa, AAA) 06/15/05 6.000 2,683,875
2,000,000 New York City Transitional Finance Authority
Series A (Callable 08/15/09 @ $101.00 ) (Aa3, AA) 08/15/18 5.750 1,997,500
1,000,000 New York City General Obligation
Bond Series D (A3, A-) 08/01/07 5.750 1,026,250
1,000,000 New York City General Obligation Bond Series J
(FGIC Insured) (Callable
08/01/08 @ $101.00) (Aaa, AAA) 08/01/12 5.350 992,500
1,500,000 New York State Dormitory Authority Revenue Bond
City University Series B (AMBAC Insured) (Aaa, AAA) 07/01/03 6.000 1,545,000
3,000,000 New York State Dormitory Authority Revenue Bond
Consolidated City University Series A (Baa1, A) 07/01/05 5.700 3,063,750
2,000,000 New York State Dormitory Authority Revenue Bond
Education Facilities Improvement (A3, A) 05/15/07 6.000 2,075,000
1,000,000 New York State Dormitory Authority Revenue
Bond Rockefeller University
(Callable 07/01/08 @ $101.00) (Aaa, AAA) 07/01/16 5.000 927,500
1,000,000 New York State Dormitory Authority Revenue
Bond Sloan Kettering Memorial
Cancer Center (Aaa, AAA) 07/01/19 5.750 1,000,000
1,000,000 New York State Dormitory Authority Revenue
Bond State University Education Facilities
Series A (A3, A) 05/15/02 5.400 1,008,750
2,495,000 New York State Dormitory Authority Revenue
Bond State University Facilities Lease Revenue
Series A (Aaa, AAA) 07/01/06 5.750 2,582,325
1,000,000 New York State Dormitory Authority Revenue
Bond Upstate Community Colleges Series A (Baa1, A) 07/01/02 5.300 1,006,250
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
$2,000,000 New York State General Obligation
Bond Series C (A2, A+) 10/01/03 6.000 $ 2,065,000
1,200,000 New York State General Obligation
Bond Series C (A2, A+) 10/01/04 6.000 1,246,500
1,000,000 New York State General Obligation
Bond Series F (A2, A+) 09/15/04 5.000 998,750
2,245,000 New York State General Obligation
Bond Series F (A2, A+) 09/15/06 5.000 2,230,969
1,000,000 New York State Housing Finance Agency
(Pre-Refunded 09/15/05 @ $102.00) Series A(Aaa, AAA) 09/15/05 6.500 1,085,000
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (Aaa, AAA) 04/01/05 5.000 997,500
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/05 5.400 1,012,500
600,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/06 6.000 625,500
1,125,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (Aaa, AAA) 04/01/06 6.000 1,174,219
1,000,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (A3, AA-) 04/01/07 6.000 1,045,000
1,265,000 New York State Local Government Assistance
Corp. Revenue Bond Series A (FGIC Insured)(Aaa, AAA) 04/01/04 5.000 1,265,000
1,025,000 New York State Mortgage Finance Agency
(Callable 11/23/09 @ $101.00) (Aa1, NR) 10/01/15 5.900 1,030,125
1,000,000 New York State Power Authority Revenue Bond
Series C (Aa3, AA-) 02/15/04 5.000 1,001,250
2,000,000 New York State Thruway Authority General
Revenue Bond Series E
(Callable 01/01/08 @ $101.00) (Aa3, AA-) 01/01/15 5.250 1,900,000
2,000,000 New York State Thruway Authority Service
Contract Local Highway & Bridge Revenue
Bonds (Callable 04/01/09 @ $101.00) (Baa1, AAA) 04/01/14 5.750 2,035,000
3,000,000 New York State Thruway Authority Service
Contract Revenue Bond Local Highway &
Bridges Series A (Aaa, AAA) 01/01/04 6.000 3,093,750
1,000,000 New York State Urban Development Corp.
(Callable 01/01/09 @ $101.00) (Aaa, AAA) 01/01/13 6.000 1,042,500
1,000,000 New York State Urban Development Corp.
Revenue Bond Correctional Capital A
(AMBAC Insured) (Aaa, AAA) 01/01/06 5.400 1,015,000
1,215,000 Orange County New York General Obligation
Bond (Callable 07/15/08 @ $101.00 ) (Aa2, NR) 07/15/20 5.000 1,072,238
3,000,000 Port Authority of New York & New Jersey
Revenue Bond Consolidated 72nd Series
(Callable 10/01/02 @ $101.00) (A1, AA-) 10/01/27 7.350 3,183,750
1,000,000 Rockland County New York General Obligation
Bond (Callable 10/15/09 @ $101.00) (Aa3, AA) 10/15/14 5.500 997,500
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS (CONT'D)
$1,000,000 Triborough Bridge & Tunnel Authority Revenue
Bond Series Y (Aa3, A+) 01/01/03 5.500 $ 1,015,000
1,000,000 Triborough Bridge & Tunnel Authority Revenue
Bond Series Y (Aa3, A+) 01/01/06 5.800 1,036,250
1,000,000 Triborough Bridge & Tunnel Authority General
Purpose Revenue Bond Series A (Aa3, A+) 01/01/07 5.500 1,020,000
1,050,000 Westchester County New York General Obligation
Bond (Callable 11/01/09 @ $101.00) (Aaa, AAA) 11/01/18 5.250 968,625
-----------
TOTAL NEW YORK (Cost $70,579,195) 69,781,713
-----------
PUERTO RICO (10.7%)
1,000,000 Puerto Rico Commonwealth Aqueduct & Sewer
Authority Revenue Bond (Aaa, AAA) 07/01/07 6.000 1,062,500
1,000,000 Puerto Rico Commonwealth General Obligation
Bond (MBIA Insured) (Aaa, AAA) 07/01/01 5.500 1,012,500
1,000,000 Puerto Rico Commonwealth Highway &
Transportation Authority Series X (Aaa, AAA) 07/01/15 5.500 1,010,000
2,000,000 Puerto Rico Commonwealth Infrastructure
Finance Authority Revenue Bond Series A
(OID)(Callable 01/01/08 @ $101.00) (Aaa, AAA) 07/01/11 5.000 1,957,500
1,000,000 Puerto Rico Electric Power Authority Revenue
Bond Series FF (Callable
07/01/09 @ $101.50) (Aaa, AAA) 07/01/10 5.250 1,006,250
2,000,000 Puerto Rico Electric Power Authority Revenue
Bond Series EE (Callable
07/01/08 @ $101.50) (Aaa, AAA) 07/01/16 5.250 1,925,000
500,000 Puerto Rico Electric Power Authority Revenue
Bond Series N (Callable
06/09/00 @ $101.50) (Baa1, BBB+) 07/01/00 6.800 501,800
-----------
TOTAL PUERTO RICO (Cost $8,628,020) 8,475,550
-----------
TOTAL MUNICIPAL BONDS (Cost $79,207,215) 78,257,263
-----------
NUMBER
OF
SHARES
----------
MONEY MARKET (0.1%)
95,472 Municipal Fund For New York Investors, Inc. -
New York Money (Cost $95,472) 95,472
-----------
TOTAL INVESTMENTS AT VALUE (98.7%) (Cost $79,302,687*) 78,352,735
OTHER ASSETS IN EXCESS OF LIABILITIES (1.3%) 1,057,286
-----------
NET ASSETS (100.0%) $79,410,021
===========
INVESTMENT ABBREVIATIONS
FGIC = Financial Guaranty Insurance Company
AMBAC = American Municipal Bond Assurance Corporation
MBIA = Municipal Bond Investors Assurance, Inc.
<FN>
--------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
* Cost for federal income tax purposes.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
AGENCY OBLIGATIONS (4.9%)
$ 4,400,000 Federal Home Loan Bank (Aaa, NR) 08/09/00 5.710 $ 4,394,905
11,820,000 Freddie Mac Discount Note (NA, NA) 07/07/00 5.490# 11,684,490
-----------
TOTAL AGENCY OBLIGATIONS (Cost $16,102,962) 16,079,395
-----------
CORPORATE BONDS (27.5%)
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 1,990,000
3,000,000 Adelphia Communications (B1, B+) 11/15/09 9.375 2,820,000
1,900,000 Allied Waste North America Series B (Callable
08/01/04 @ $105.00) (B2, B+) 08/01/09 10.000 1,296,750
7,450,000 AT&T Capital Corp. (A1, A+) 11/15/00 7.500 7,471,644
1,160,000 AT&T Corp. (A1, AA-) 09/15/02 6.500 1,141,150
4,580,000 Conseco, Inc. (Ba1, BBB-) 10/15/06 9.000 2,679,300
4,500,000 Countrywide Home Loan Co. (A3, A) 04/15/09 6.250 3,931,875
3,660,000 Dime Bancorp, Inc. (Ba1, BBB-) 07/25/01 7.000 3,614,250
3,565,000 Federal-Mogul Corp. (Ba2, BB+) 01/15/06 7.375 2,905,475
3,000,000 Global Crossing Holdings, Ltd. (Ba2, BB) 11/15/09 9.500 2,940,000
1,000,000 Globalstar Capital Corp. Senior Notes
(Callable 02/15/02 @ $105.69) (CAA, B) 02/15/04 11.375 365,000
3,115,000 Golden State Escrow Corp.
(Callable @ Make Whole + 50BP) (Ba1, BB+) 08/01/03 7.000 2,854,119
2,980,000 HMH Properties, Inc.++ (Ba3, NR) 05/15/05 9.500 2,890,600
1,370,000 Household Finance Corp. (A2, A) 05/01/04 6.000 1,286,087
5,910,000 Household Finance Corp. (A2, A) 11/15/08 6.500 5,363,325
3,050,000 K-Mart Corp. (Baa3, BB+) 12/01/04 8.375 2,969,937
2,110,000 Lehman Brothers Holdings (A3, A) 01/15/05 7.750 2,078,350
3,000,000 Level 3 Communications, Inc. Senior Notes (B3, B) 05/01/08 9.125 2,625,000
4,575,000 Lockheed Martin Corp. (Baa3, BBB-) 12/01/05 7.950 4,512,094
3,050,000 Lowe's Companies (Putable 05/15/07 @ $100.00)(A2, A) 05/15/37 7.110 3,023,312
1,000,000 Nextlink Communications 144A Senior Notes (B2, B) 12/01/09 10.500 970,000
3,100,000 NTL Communications Corp. Class B++ (B3, B-) 10/01/08 11.500 3,162,000
3,700,000 Philip Morris Co., Inc. Notes (A2, A) 12/01/03 6.800 3,459,500
2,000,000 Potomac Electric Power Co.
(Callable 05/15/02 @ $103.21) (A1, A) 05/15/27 8.500 1,947,500
3,000,000 PSEG Energy Holdings Series 144A (Ba1, BBB-) 02/10/04 9.125 3,000,000
3,400,000 Riggs Capital Trust II Preferred Securities,
Series C (Callable 03/15/07 @ $104.44) (Baa3, BB-) 03/15/27 8.875 2,822,000
2,365,000 Safeway, Inc. (Callable @ Make
Whole +12.5BP) (Baa2, BBB) 09/15/04 7.250 2,305,875
3,000,000 Saks, Inc. (Baa3, BB+) 07/15/04 7.000 2,778,750
6,950,000 Union Electric Co. (Callabe
12/01/01 @ $104.38) (A1, AA-) 12/01/21 8.750 6,976,062
2,885,000 Voicestream Wireless Holding
(Callable 11/15/04 @ $105.19), Series 144A (B2, B-) 11/15/09 10.375 2,942,700
-----------
TOTAL CORPORATE BONDS (Cost $97,236,025) 89,122,655
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
ASSET/MORTGAGE BACKED SECURITIES (50.7%)
$11,000,000 Amresco Commercial Mortgage Funding I
Series 1997-C1, Class B (NR, AA) 06/17/29 7.240 $10,599,131
2,425,000 Asset Securitization Corp. (Nomura Asset
Securities Corp.) Series 1996-D2, Class A2 (NR, AA) 02/14/29 7.204+ 2,320,802
4,660,000 California Infrastructure, PG&E-1,
Series 1997-1,
Class A7 (Callable 09/25/06 @ $100.00) (NR, NR) 09/25/08 6.420 4,475,594
2,500,000 Commonwealth Edison Co. (Baa2, BBB) 02/01/22 8.625 2,476,078
5,650,000 Commonwealth Edison Transitional Funding
Trust, Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.630 5,140,455
190,009 Donaldson, Lufkin, & Jenrette, Inc. Acceptance
Trust, Series 1989-1, Class F (NR, NR) 08/01/19 11.000 203,509
7,987,838 Fannie Mae (Aaa,AAA) 08/01/06 6.000 7,580,958
12,248,000 Fannie Mae (Aaa,AAA) 02/18/21 5.750 11,444,041
5,121,490 Fannie Mae (Aaa,AAA) 03/01/28 8.000 5,116,688
24,408 Fannie Mae (Aaa,AAA) 04/01/29 6.500 22,791
11,088,383 Fannie Mae (Aaa,AAA) 04/01/29 6.500 10,353,777
926,728 Fannie Mae (Aaa,AAA) 05/01/29 7.500 907,325
40,279 Fannie Mae (Aaa,AAA) 06/01/29 6.500 37,611
69,554 Fannie Mae (Aaa,AAA) 07/01/29 7.500 68,098
315,590 Fannie Mae (Aaa,AAA) 08/01/29 6.500 294,682
33,555 Fannie Mae (Aaa,AAA) 08/01/29 7.500 32,852
590,508 Fannie Mae (Aaa,AAA) 08/01/29 7.500 578,144
76,159 Fannie Mae (Aaa,AAA) 08/01/29 7.500 74,565
682,738 Fannie Mae (Aaa,AAA) 08/01/29 7.500 668,443
25,473 Fannie Mae (Aaa,AAA) 08/01/29 7.500 24,940
324,703 Fannie Mae (Aaa,AAA) 09/01/29 7.000 310,802
28,115 Fannie Mae (Aaa,AAA) 09/01/29 7.500 27,526
111,878 Fannie Mae (Aaa,AAA) 09/01/29 7.500 109,535
36,415 Fannie Mae (Aaa,AAA) 09/01/29 7.500 35,652
347,063 Fannie Mae (Aaa,AAA) 10/01/29 6.500 324,070
667,378 Fannie Mae (Aaa,AAA) 10/01/29 7.000 638,806
80,325 Fannie Mae (Aaa,AAA) 10/01/29 7.500 78,643
37,439 Fannie Mae (Aaa,AAA) 10/01/29 7.500 36,655
41,168 Fannie Mae (Aaa,AAA) 10/01/29 7.500 40,306
557,813 Fannie Mae (Aaa,AAA) 10/01/29 7.500 546,134
39,205 Fannie Mae (Aaa,AAA) 10/01/29 7.500 38,384
606,236 Fannie Mae (Aaa,AAA) 10/01/29 7.500 593,543
25,510 Fannie Mae (Aaa,AAA) 10/01/29 7.500 24,976
210,406 Fannie Mae (Aaa,AAA) 10/01/29 8.000 210,208
317,528 Fannie Mae (Aaa,AAA) 11/01/29 6.500 296,492
24,761 Fannie Mae (Aaa,AAA) 11/01/29 6.500 23,120
612,559 Fannie Mae (Aaa,AAA) 11/01/29 6.500 571,977
679,141 Fannie Mae (Aaa,AAA) 11/01/29 7.500 664,921
345,148 Fannie Mae (Aaa,AAA) 11/01/29 7.500 337,922
652,022 Fannie Mae (Aaa,AAA) 11/01/29 7.500 638,370
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
ASSET/MORTGAGE BACKED SECURITIES (CONT'D)
$ 42,063 Fannie Mae (Aaa,AAA) 11/01/29 7.500 $ 41,183
102,385 Fannie Mae (Aaa,AAA) 11/01/29 7.500 100,241
55,107 Fannie Mae (Aaa,AAA) 12/01/29 7.000 52,748
1,111,415 Fannie Mae (Aaa,AAA) 12/01/29 7.000 1,063,832
145,707 Fannie Mae (Aaa,AAA) 12/01/29 7.000 139,469
563,400 Fannie Mae (Aaa,AAA) 12/01/29 7.000 539,279
386,129 Fannie Mae (Aaa,AAA) 12/01/29 7.500 378,044
46,010 Fannie Mae (Aaa,AAA) 12/01/29 7.500 45,047
1,745,919 Fannie Mae (Aaa,AAA) 12/01/29 7.500 1,709,364
193,716 Fannie Mae (Aaa,AAA) 12/01/29 7.500 189,660
592,813 Fannie Mae (Aaa,AAA) 12/01/29 7.500 580,401
659,903 Fannie Mae (Aaa,AAA) 01/01/30 6.500 616,184
369,315 Fannie Mae (Aaa,AAA) 01/01/30 6.500 344,848
562,656 Fannie Mae (Aaa,AAA) 01/01/30 6.500 525,380
388,389 Fannie Mae (Aaa,AAA) 01/01/30 6.500 362,658
25,017 Fannie Mae (Aaa,AAA) 01/01/30 6.500 23,360
853,008 Fannie Mae (Aaa,AAA) 01/01/30 7.000 816,489
41,366 Fannie Mae (Aaa,AAA) 01/01/30 7.000 39,595
51,978 Fannie Mae (Aaa,AAA) 01/01/30 7.000 49,752
587,510 Fannie Mae (Aaa,AAA) 01/01/30 7.500 575,209
79,893 Fannie Mae (Aaa,AAA) 01/01/30 7.500 78,220
1,245,864 Fannie Mae (Aaa,AAA) 01/01/30 7.500 1,219,779
686,213 Fannie Mae (Aaa,AAA) 01/01/30 8.000 685,569
654,525 Fannie Mae (Aaa,AAA) 02/01/30 6.500 611,162
328,071 Fannie Mae (Aaa,AAA) 02/01/30 7.000 314,025
1,042,321 Fannie Mae (Aaa,AAA) 02/01/30 7.000 997,696
24,973 Fannie Mae (Aaa,AAA) 02/01/30 7.000 23,904
1,257,633 Fannie Mae (Aaa,AAA) 02/01/30 7.000 1,203,791
547,110 Fannie Mae (Aaa,AAA) 02/01/30 7.500 535,713
100,371 Fannie Mae (Aaa,AAA) 02/01/30 7.500 98,269
47,491 Fannie Mae (Aaa,AAA) 02/01/30 7.500 46,496
35,430 Fannie Mae (Aaa,AAA) 02/01/30 7.500 34,688
219,329 Fannie Mae (Aaa,AAA) 02/01/30 8.000 219,123
697,609 Fannie Mae (Aaa,AAA) 03/01/30 6.500 651,392
344,794 Fannie Mae (Aaa,AAA) 03/01/30 7.000 330,032
955,534 Fannie Mae (Aaa,AAA) 03/01/30 7.000 914,625
423,473 Fannie Mae (Aaa,AAA) 03/01/30 7.000 405,343
458,304 Fannie Mae (Aaa,AAA) 03/01/30 7.000 438,683
654,096 Fannie Mae (Aaa,AAA) 03/01/30 7.000 626,092
1,489,189 Fannie Mae (Aaa,AAA) 03/01/30 7.000 1,425,433
499,568 Fannie Mae (Aaa,AAA) 03/01/30 7.000 478,180
726,523 Fannie Mae (Aaa,AAA) 03/01/30 7.000 695,419
272,676 Fannie Mae (Aaa,AAA) 03/01/30 7.000 261,002
932,539 Fannie Mae (Aaa,AAA) 03/01/30 7.500 913,014
700,837 Fannie Mae (Aaa,AAA) 03/01/30 7.500 686,164
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
ASSET/MORTGAGE BACKED SECURITIES (CONT'D)
$ 700,297 Fannie Mae (Aaa,AAA) 03/01/30 7.500 $ 685,634
77,173 Fannie Mae (Aaa,AAA) 03/01/30 7.500 75,557
176,628 Fannie Mae (Aaa,AAA) 03/01/30 7.500 172,930
778,007 Fannie Mae (Aaa,AAA) 03/01/30 7.500 761,718
780,519 Fannie Mae (Aaa,AAA) 03/01/30 7.500 764,177
65,481 Fannie Mae (Aaa,AAA) 03/01/30 7.500 64,110
696,317 Fannie Mae (Aaa,AAA) 03/01/30 7.500 681,737
70,225 Fannie Mae (Aaa,AAA) 03/01/30 7.500 68,755
173,902 Fannie Mae (Aaa,AAA) 03/01/30 7.500 170,261
2,775,826 Fannie Mae (Aaa,AAA) 03/01/30 7.500 2,717,707
831,249 Fannie Mae (Aaa,AAA) 03/01/30 7.500 813,845
999,137 Fannie Mae (Aaa,AAA) 03/01/30 7.500 978,217
848,368 Fannie Mae (Aaa.AAA) 03/01/30 8.000 847,572
920,291 Fannie Mae (Aaa,AAA) 03/01/30 8.000 919,428
569,593 Fannie Mae (Aaa,AAA) 03/01/30 8.000 569,059
565,674 Fannie Mae (Aaa,AAA) 03/01/30 8.000 565,143
1,300,212 Fannie Mae (Aaa,AAA) 03/01/30 8.000 1,298,993
3,038,000 Fannie Mae, Series 1993-196, Class J (Aaa,AAA) 10/25/08 5.500 2,804,454
4,920,000 Fannie Mae, Series 1997-51, Class KB
Guaranteed REMIC TR (Aaa,AAA) 03/20/08 7.000 4,773,932
11,000,000 Fannie Mae, Series 1997-79, Class KB (Aaa,AAA) 07/18/26 6.000 9,806,088
4,700,000 Fannie Mae, Series 1998-M4, Class B (Aaa,AAA) 12/25/23 6.424 4,471,463
51,987 Freddie Mac (Aaa,AAA) 10/01/01 8.750 52,718
2,419,433 General Motors Acceptance Corp.,
Series 1996-C2, Class A (NR,AA) 10/15/11 7.350 2,387,145
1,500,000 General Motors Acceptance Corp.,
Series 96C-2B, Class B (NR, A) 10/15/11 7.530 1,468,508
1,000,000 General Motors Acceptance Corp.,
Series1998-C1, Class E (Aaa,AAA) 06/03/09 7.154 916,364
9,099,081 Ginnie Mae (Aaa,AAA) 11/15/27 7.000 8,757,866
5,573,115 Ginnie Mae (Aaa,AAA) 10/15/28 6.500 5,224,795
3,185,622 Morgan Stanley Mortgage Trust,
Series 40, Class 8 (NR, AAA) 07/20/21 7.000 3,139,477
10,000,000 Nomura Asset Securites Corp.,
Series 1998-D6, Class A3 (NR,A2) 03/17/28 7.224 9,254,652
4,000,000 Nomura Asset Securities Corp.,
Series 1993-1, Class B1 (NR, BBB) 12/15/01 6.680 3,929,620
580,274 Nomura Asset Securities Corp.,
Series 1994-4B, Class 4A (Aaa, AAA) 09/25/24 8.300 583,161
1,139,944 Residential Funding Mortgage Securities I,
Series 96 - S2, Class A1 (NR, NR) 01/25/11 6.750 1,132,979
2,500,000 Shurgard Pass-Through CTFS Trust
(Nomura Asset Securities Corp.),
Series 1, Class 1 (Aaa,AAA) 06/15/04 8.240+ 2,494,988
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
ASSET/MORTGAGE BACKED SECURITIES (CONT'D)
$ 1,035,841 Small Business Administration
Guaranteed-Development Participation
Certificate Debenture Series 1992-20D
(Callable 10/01/02 @ $100.00) (Aaa, AAA) 04/01/12 8.200 $ 1,052,665
------------
TOTAL ASSET/MORTGAGE BACKED SECURITIES (Cost $171,083,586) 164,460,801
------------
U.S. TREASURY NOTES (12.9%)
40,075,000 (Aaa, AAA) 05/15/01 8.000 40,695,605
1,135,000 (Aaa, AAA) 08/15/02 6.375 1,128,560
------------
TOTAL U.S. TREASURY NOTES (Cost $41,923,978) 41,824,165
------------
NUMBER
OF
SHARES
-----------
PREFERRED STOCKS (2.9%)
36,800 Banco Totta & Acores Financial Corp.,
Series A (Callable 10/11/06 @ $25.00) 8.875 841,800
72,000 Equity Residential Properties Trust,
Series D REIT (Callable 07/15/07 @ $25.00)++ 8.600 1,552,500
65,050 Natexis Bank, Series A
(Callable 06/30/08 @ $100.00)++ 8.440 5,956,141
27,250 Prologis Trust, Series C
(Callable 11/13/26 @ $50.00) 8.540 1,062,151
------------
TOTAL PREFERRED STOCKS (Cost $10,573,125) 9,412,592
------------
SHORT TERM INVESTMENTS (0.1%)
1 RBB Money Market Portfolio 1
331,310 Institutional Money Market Trust 331,310
------------
TOTAL SHORT TERM INVESTMENTS (Cost $331,311) 331,311
------------
TOTAL INVESTMENTS AT VALUE (99.0%) (Cost $337,250,987*) 321,230,919
OTHER ASSETS IN EXCESS OF LIABILITIES (1.0%) 3,222,744
------------
NET ASSETS (100.0%) $324,453,663
============
INVESTMENT ABBREVIATIONS
NR = Not Rated
REMIC = Real Estate Mortgage Investment Conduit
CTFS = Certificates
REIT = Real Estate Investment Trust
<FN>
--------------------------------------------------------------------------------
+ Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
+ On instruments with variable rates, the interest rate shown reflects the
current rate as of April 30, 2000.
++ Illiquid security.
# Rate shown reflects yield to maturity on date of purchase.
* Cost for federal income tax purposes is $337,324,005.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR+ (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
BONDS (90.8%)
ARGENTINA (2.5%)
$ 692,000 (A) Banco Hipotecario SA
(Putable 12/03/01 @ $100.00) (B1, NR) 12/03/08 13.000 $ 704,110
740,000 (A) Republic of Argentina, Series XW (NR, NR) 12/04/05 11.000 726,125
1,484,000 (A) Telecom Argentina (B1, BBB-) 07/12/01 9.750 1,495,130
------------
2,925,365
------------
BRAZIL (1.1%)
1,280,000 (A) Republic of Brazil (B2, B+) 04/15/04 11.625 1,272,000
------------
CANADA (5.3%)
1,960,000 (A) Newcourt Credit Group, Inc. (A1, A+) 12/17/03 7.125 1,930,600
6,845,000 Province of British Columbia (Aa2, AA-) 12/01/06 5.250 4,323,827
------------
6,254,427
------------
CHINA (0.8%)
985,000 (B) HSBC Capital Funding LP (NR, NR) 06/30/49 8.030 906,111
------------
DENMARK (4.6%)
40,400,000 Kingdom of Denmark (Aaa, AAA) 11/15/07 7.000 5,352,929
------------
GERMANY (7.2%)
1,173,000 Deutsche Bank AG, Series 144A
(Callable 06/30/09 @ $100.00) (A1, A+) 12/29/49 7.872 1,076,941
2,000,000 German Government (Aaa, NR) 01/04/10 5.375 1,828,156
6,500,000 German Government, Series 99 (Aaa, NR) 07/04/09 4.500 5,577,826
------------
8,482,923
------------
ITALY (3.2%)
4,200,000 Buoni Poloennali Del Tes (Aa3, AA) 05/01/03 4.750 3,803,917
------------
JAPAN (5.2%)
580,000,000 Japan Government (Aa1, AAA) 06/20/05 4.000 6,130,275
------------
LUXEMBOURG (0.7%)
986,000 (B) Tyco International Group SA (NR, A-) 04/04/07 6.125 884,120
------------
MEXICO (1.2%)
1,200,000 (A) Cemex SA (Putable 10/01/04 @ $100.00)(Ba2, BB+) 10/01/09 9.625 1,223,065
198,000 (A) Nuevo Grupo Iusacell SA (B1, B+) 12/01/06 14.250 205,920
------------
1,428,985
------------
PHILIPPINES (0.4%)
487,000 (A) Republic of Philippines (Ba1, BB+) 01/15/19 9.875 432,212
------------
POLAND (0.4%)
482,000 (B) Polska Telefonica Cyfrowa International
Finance II SA (B2, B+) 12/01/09 11.250 477,674
------------
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR+ (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
BONDS (CONT'D)
SOUTH AFRICA (2.0%)
$ 6,860,000 Republic of South Africa (Baa1, BBB+) 08/31/10 13.000 $ 2,291,997
------------
SOUTH KOREA (0.8%)
976,000 (A) Korea Development Bank (Baa3, BBB) 10/01/02 7.625 962,678
------------
SWEDEN (3.7%)
39,000,000 Swedish Government (Aaa, AAA) 01/15/04 5.000 4,312,025
------------
TURKEY (0.7%)
641,550,000,000 Republic of Turkey (NR, NR) 05/23/01 33.137# 783,779
------------
UNITED KINGDOM (1.9%)
1,456,000 Lloyds TSB Bank PLC
(Callable 07/15/09 @ 100 EUR) (Aa2, A+) 07/15/49 5.625 1,244,826
1,000,000 Royal Bank of Scotland PLC (A1, AA-) 03/31/49 6.770 921,641
------------
2,166,467
------------
UNITED STATES OF AMERICA (49.1%)
3,560,000 California Infrastructure San Diego
Gas & Electric Rate Reduction
Series 1997-1 Class A7 (Aaa, AAA) 12/26/09 6.370 3,349,408
1,490,000 Conseco, Inc. (Ba1, BBB-) 10/15/06 9.000 871,650
623,891 Fannie Mae (Aaa, AAA) 10/01/24 6.500 582,558
601,584 Fannie Mae (Aaa, AAA) 07/01/29 6.500 561,729
373,747 Fannie Mae (Aaa, AAA) 08/01/29 6.500 348,987
630,383 Fannie Mae (Aaa, AAA) 06/01/29 6.500 588,620
94,135 Fannie Mae (Aaa, AAA) 06/01/29 6.500 87,898
25,552 Fannie Mae (Aaa, AAA) 10/01/29 6.500 23,860
565,134 Fannie Mae (Aaa, AAA) 01/01/30 6.500 527,694
409,215 Fannie Mae (Aaa, AAA) 01/01/30 6.500 382,104
126,017 Fannie Mae (Aaa, AAA) 03/01/30 6.500 117,668
250,014 Fannie Mae (Aaa, AAA) 04/01/30 6.500 233,451
280,000 Freddie Mac (Aaa, AAA) 08/15/06 6.375 266,955
3,000,000 Federal-Mogul Corp. (Ba2, BB+) 01/15/06 7.375 2,445,000
197,000,000 (C) Ford Motor Credit Co. (A1, A+) 02/07/05 1.200 1,803,635
2,880,799 Ginnie Mae (Aaa, AAA) 03/15/26 7.000 2,772,769
3,524,298 Ginnie Mae (Aaa, AAA) 03/15/29 6.500 3,304,029
2,931,000 GMAC Swift Trust Series 1999-1 (Aaa, AAA) 01/18/05 5.000 2,608,117
1,600,000 Golden State Escrow Corp.
(Callable @ Make Whole +50BP) (Ba1, BB+) 08/01/03 7.000 1,466,000
2,435,000 Illinois Power Transitional Funding
Trust, Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.540 2,207,681
1,200,000 Lehman Brothers Holdings (A3, A) 01/15/05 7.750 1,182,000
5,308,000 MBNA Master Credit Card Trust II
Series 1997-I, Class A (NR, NR) 01/15/07 6.550 5,152,741
1,840,000 NTL Communications Corp. Class B++ (B3, B-) 10/01/08 11.500 1,876,800
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS+
PAR+ (MOODY'S/S&P) MATURITY RATE% VALUE
---- ----------- -------- ----- ----------
<S> <C> <C> <C> <C> <C>
BONDS (CONT'D)
$ 5,070,000 PECO Energy Transition Trust (Aaa, AAA) 03/01/09 6.050 $ 4,667,974
248,000,000 (C) Toyota Motor Credit Corp. (Aa1, AAA) 12/20/04 1.000 2,280,548
5,661,000 U.S. Treasury Bonds (Aaa, AAA) 08/15/29 6.125 5,671,879
11,165,000 U.S. Treasury Notes (Aaa, AAA) 08/15/09 6.000 10,923,187
1,100,000 Voicestream Wireless Holding,
Series 144A (Callable
11/15/04 @ $105.19) (B2, B-) 11/15/09 10.375 1,122,000
------------
57,426,942
------------
TOTAL BONDS (Cost $113,806,797) 106,294,826
------------
NUMBER OF
SHARES
---------
PREFERRED STOCK (1.9%)
23,900 Natexis AMBS Co., Series A
(Callable 06/30/08 @ $100.00)
(Cost $2,387,492)++ 8.540 2,188,344
------------
SHORT TERM INVESTMENTS (4.4%)
5,186,452 RBB Select Sweep (Cost $5,186,452) 5,186,453
------------
TOTAL INVESTMENTS AT VALUE (97.1%) (Cost $121,380,743*) 113,669,624
OTHER ASSETS IN EXCESS OF LIABILITIES (2.9%) 3,370,007
------------
NET ASSETS (100.0%) $117,039,631
============
INVESTMENT ABBREVIATIONS
EUR = European Currency Unit
NR = Not Rated
<FN>
--------------------------------------------------------------------------------
+ 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.
(B) Denominated in Euro.
(C) Denominated in Japanese Yen.
# Rate shown reflects yield to maturity on date of purchase.
++ Illiquid security
* Cost for federal income tax purposes is $121,453,762.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<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>
ASSETS
Investments at value (Cost -
$57,477,675, $79,302,687,
$337,250,987 and $121,380,743,
respectively) $ 5,810,767 $78,352,735 $321,230,919 $113,669,624
Cash 0 192,449 47,003 0
Receivable on forward currency contracts 0 0 0 1,768,246
Dividends and interest receivable 586,914 1,209,668 5,204,697 1,788,378
Receivable for fund shares sold 75,563 10,000 6,262 61,225
Prepaid expenses and other assets 17,310 7,874 12,024 11,452
----------- ----------- ------------ ------------
Total Assets 56,490,554 79,772,726 326,500,905 117,298,925
----------- ----------- ------------ ------------
LIABILITIES
Advisory fee payable 14,363 19,438 134,761 57,265
Administration fee payable 4,602 6,588 27,224 9,663
Foreign tax payable 0 0 0 22,787
Payable for fund shares redeemed 0 0 9,948 0
Dividends payable 272,185 302,085 1,706,640 3,900
Accrued expenses payable 39,553 34,593 168,669 165,679
----------- ----------- ------------ ------------
Total Liabilities 330,703 362,704 2,047,242 259,294
----------- ----------- ------------ ------------
NET ASSETS
Capital stock, $0.001 par value 5,860 7,957 33,815 5,426
Paid-in capital 8,876,637 80,706,925 349,062,284 136,868,708
Accumulated undistributed net investment
income 0 0 23,203 1,892,025
Accumulated net realized loss from
investments and foreign currency
related transactions 1,055,738) (354,909) (8,645,571) (15,591,132)
Net unrealized depreciation
from investments and foreign currency
related translations 1,666,908) (949,952) (16,020,068) (6,135,396)
----------- ----------- ------------ ------------
Net Assets 56,159,851 79,410,021 324,453,663 117,039,631
=========== =========== ============ ============
COMMON SHARES
Net assets $56,131,692 $79,410,021 $317,954,092 $117,018,593
----------- ----------- ------------ ------------
Shares outstanding 5,850,995 7,956,642 33,137,941 11,938,210
----------- ----------- ------------ ------------
Net asset value, offering price and
redemption price per share $ 9.59 $ 9.98 $ 9.59 $ 9.80
=========== =========== ============ ============
ADVISOR SHARES
Net assets $ 28,159 $ 6,499,571 $ 21,038
----------- ------------ ------------
Shares outstanding 2,934 677,698 2,027
----------- ------------ ------------
Net asset value, offering price and
redemption price per share $ 9.60 $ 9.59 $ 10.38
=========== ============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
For the Six Months Ended April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
<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 $ 23,084 $ 411,125 $ 100,858
Interest 1,716,359 2,015,543 12,244,678 3,909,373
---------- ---------- ------------ -----------
Total investment income 1,716,359 2,038,627 12,655,803 4,010,231
---------- ---------- ------------ -----------
EXPENSES:
Investment advisory fees 135,417 162,673 892,919 616,748
Administrative fees 42,702 66,101 271,557 94,796
Transfer agent fees 23,010 20,312 148,331 122,337
Registration fees 13,486 6,832 21,836 18,582
Legal fees 9,088 11,144 16,432 13,846
Custodian/Sub-custodian fees 7,925 6,412 29,723 52,965
Printing expense 7,789 10,496 33,620 18,086
Directors/Trustees fees 6,370 6,585 6,605 5,860
Audit fees 6,212 6,178 11,146 8,985
Insurance expense 574 798 2,216 1,740
Interest expense 50 238 1,408 329
Shareholder servicing/distribution fees 31 0 8,188 74
Miscellaneous expenses 643 2,396 4,691 2,567
---------- ---------- ------------ -----------
253,297 300,165 1,448,672 956,915
Less: fees waived, expenses reimbursed
and transfer agent offsets (90,767) (56,156) (101,105) (370,931)
---------- ---------- ------------ -----------
Total expenses 162,530 244,009 1,347,567 585,984
---------- ---------- ------------ -----------
Net investment income 1,553,829 1,794,618 11,308,236 3,424,247
---------- ---------- ------------ -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Security transactions (281,833) 28,625 (6,562,048) (1,899,934)
Foreign currency forward transactions 0 0 0 4,069,039
Other foreign exchange transactions 0 0 0 (1,166,796)
---------- ---------- ------------ -----------
(281,833) 28,625 (6,562,048) 1,002,309
---------- ---------- ------------ -----------
Net change in unrealized appreciation/ (depreciation) from:
Investments (701,657) (516,593) (4,190,076) (3,687,749)
Translation of assets and liabilities
in foreign currencies 0 0 0 795,772
---------- ---------- ------------ -----------
(701,657) (516,593) (4,190,076) (2,891,977)
---------- ---------- ------------ -----------
Net loss on investments and foreign
currency transactions (983,490) (487,968) (10,752,124) (1,889,668)
---------- ---------- ------------ -----------
Net increase in net assets
resulting from operations $ 570,339 $1,306,650 $ 556,112 $ 1,534,579
========== ========== ============ ===========
</TABLE>
See Accompanying Notes to Financial Statements.
22
<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 FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 1,553,829 $ 3,596,379 $ 1,794,618 $ 4,004,059
Net realized gain (loss) from security transactions (281,833) (578,188) 28,625 (383,534)
Net change in unrealized depreciation
from investments (701,657) (3,074,269) (516,593) (3,789,693)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets
resulting from operations 570,339 (56,078) 1,306,650 (169,168)
------------ ------------ ------------ -------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares (1,553,159) (3,595,653) (1,794,618) (4,004,059)
Advisor Class shares (670) (726) 0 0
Distributions from net realized gains:
Common Class shares 0 (287,008) 0 (623,895)
Advisor Class shares 0 (66) 0 0
Distributions in excess of net realized gains:
Common Class shares 0 (196,423) 0 (210)
Advisor Class shares 0 (14) 0 0
------------ ------------ ------------ -------------
Net decrease in net assets from
dividends and distributions (1,553,829) (4,079,890) (1,794,618) (4,628,164)
------------ ------------ ------------ -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 27,718,157 68,865,628 22,521,776 54,393,636
Reinvestment of dividends and distributions 1,101,019 3,612,598 1,271,033 4,058,953
Net asset value of shares redeemed (28,321,087) (89,908,731) (27,828,743) (76,643,731)
------------ ------------ ------------ -------------
Net increase (decrease) in net assets from
capital share transactions 498,089 (17,430,505) (4,035,934) (18,191,142)
------------ ------------ ------------ -------------
Net decrease in net assets (485,401) (21,566,473) (4,523,902) (22,988,474)
NET ASSETS:
Beginning of period 56,645,251 78,211,724 83,933,923 106,922,397
------------ ------------ ------------ -------------
End of period $ 56,159,851 $ 56,645,251 $ 79,410,021 $ 83,933,923
============ ============ ============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS
FIXED INCOME FUND GLOBAL FIXED INCOME FUND
-------------------------------- --------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 11,308,236 $ 23,252,281 $ 3,424,247 $ 7,389,712
Net realized loss from security transactions (6,562,048) (1,962,658) (1,899,934) (5,859,598)
Net realized gain from foreign currency forward
transactions 0 0 4,069,039 5,729,634
Net realized loss from other foreign exchange
transactions 0 0 (1,166,796) (2,810,765)
Net change in unrealized appreciation/
(depreciation) from:
Investments (4,190,076) (17,380,764) (3,687,749) (1,598,484)
Translation of assets and liabilites in
foreign currencies 0 0 795,772 616,925
------------- ------------- ------------ -------------
Net increase in net assets resulting
from operations 556,112 3,908,859 1,534,579 3,467,424
------------- ------------- ------------ -------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income:
Common Class shares (11,147,373) (23,048,992) (7,040,003) (8,236,456)
Advisor Class shares (200,653) (203,289) (398) 0
Dividends in excess of net investment income:
Common Class shares 0 (40,837) 0 (164,530)
Advisor Class shares 0 (326) 0 (148,403)
Distributions from net realized gains:
Common Class shares 0 (1,625,676) 0 0
Advisor Class shares 0 (12,945) 0 0
Distributions in excess of net realized gains:
Common Class shares 0 (61,094) 0 0
Advisor Class shares 0 0 0 0
------------- ------------- ------------ -------------
Net decrease in net assets from
dividends and distributions (11,348,026) (24,993,159) (7,040,401) (8,549,389)
------------- ------------- ------------ -------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 142,428,032 189,568,336 23,778,843 77,765,560
Reinvestment of dividends and distributions 8,411,937 21,725,382 6,494,524 7,581,877
Net asset value of shares redeemed (215,844,395) (216,553,616) (43,123,620) (105,518,211)
------------- ------------- ------------ -------------
Net decrease in net assets from capital
share transactions (65,004,426) (5,259,898) (12,850,253) (20,170,774)
------------- ------------- ------------ -------------
Net decrease in net assets (75,796,340) (26,344,198) (18,356,075) (25,252,739)
NET ASSETS:
Beginning of period 400,250,003 426,594,201 135,395,706 160,648,445
------------- ------------ -------------
End of period $ 324,453,663 $ 400,250,003 $117,039,631 $ 135,395,706
============= ============= ============ =============
Undistributed net investment income $ 23,203 $ 62,993 $ 1,892,025 $ 2,605,936
============= ============= ============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
24
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 9.77 $ 10.37 $ 10.05 $ 10.07 $ 10.22 $ 9.66
------- ------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.23 0.53 0.56 0.58 0.58 0.59
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) (0.18) (0.54) 0.32 0.10 (0.06) 0.56
------- ------- ------- ------- ------- -------
Total from investment
activities 0.05 (0.01) 0.88 0.68 0.52 1.15
------- ------- ------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income (0.23) (0.53) (0.56) (0.58) (0.58) (0.59)
Distributions from net realized
gains 0 (0.04) 0.00 (0.08) (0.09) 0.00
Distributions in excess of net
realized gains 0 (0.02) 0.00 (0.04) 0.00 0.00
------- ------- ------- ------- ------- -------
Total dividends and
distributions (0.23) (0.59) (0.56) (0.70) (0.67) (0.59)
------- ------- ------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.59 $ 9.77 $ 10.37 $ 10.05 $ 10.07 $ 10.22
======= ======= ======= ======= ======= =======
Total return 1.00%+ (0.05)% 9.35% 6.99% 5.16% 12.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $56,132 $56,625 $78,200 $48,421 $47,690 $55,898
Ratio of expenses to
average net assets 0.63%*@ 0.61%@ 0.60%@ 0.61%@ 0.61%@ 0.60%
Ratio of net income to
average net assets 5.74%* 5.27% 5.54% 5.81% 5.68% 6.00%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.31%* 0.28% 0.34% 0.33% 0.46% 0.49%
Portfolio turnover rate 30.65% 91.13% 133.98% 104.34% 163.59% 105.79%
<FN>
--------------------------------------------------------------------------------
@ 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 .03% for the six months ended April 30,
2000 and .01%, .00%, .01% 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 the six months ended April
30, 2000 and for each of the years ended October 31, 1999, 1998, 1997 and
1996, respectively.
+ Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
25
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
---------------- ------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 10.04 $ 10.54 $ 10.35 $ 10.34 $ 10.42 $ 10.07
------- ------- -------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.22 0.42 0.44 0.45 0.45 0.47
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) (0.06) (0.44) 0.19 0.13 0.04 0.36
------- ------- -------- ------- ------- -------
Total from investment
activities 0.16 (0.02) 0.63 0.58 0.49 0.83
------- ------- -------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.22) (0.42) (0.44) (0.45) (0.45) (0.47)
Distributions from net realized gains 0 (0.06) 0.00 (0.12) (0.12) (0.01)
------- ------- -------- ------- ------- -------
Total dividends and distributions (0.22) (0.48) (0.44) (0.57) (0.57) (0.48)
------- ------- -------- ------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.98 $ 10.04 $ 10.54 $ 10.35 $ 10.34 $ 10.42
======= ======= ======== ======= ======= =======
Total return 1.61%+ (0.26)% 6.24% 5.83% 4.87% 8.31%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $79,410 $83,934 $106,922 $88,944 $77,559 $73,361
Ratio of expenses to
average net assets 0.63%*@ 0.61%@ 0.60%@ 0.60%@ 0.61%@ 0.60%
Ratio of net income to
average net assets 4.41%* 4.03% 4.24% 4.40% 4.41% 4.50%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.11%* 0.10% 0.07% 0.08% 0.17% 0.26%
Portfolio turnover rate 13.34% 54.97% 37.25% 69.84% 69.23% 105.17%
<FN>
--------------------------------------------------------------------------------
@ 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 .03% for the six months ended April 30,
2000 and .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 the six months ended
April 30, 2000 and for each of the years ended October 31, 1999, 1998, 1997
and 1996, respectively.
+ Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 9.89 $ 10.41 $ 10.43 $ 10.10 $ 10.07 $ 9.61
-------- -------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.31 0.57 0.59 0.62 0.63 0.70
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) (0.30) (0.48) 0.07 0.33 0.03 0.46
-------- -------- -------- -------- -------- --------
Total from investment
activities 0.01 0.09 0.66 0.95 0.66 1.16
-------- -------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.31) (0.57) (0.59) (0.62) (0.63) (0.70)
Distributions from net realized gains 0 (0.04) (0.09) 0.00 0.00 0.00
-------- -------- -------- -------- -------- --------
Total dividends and distributions (0.31) (0.61) (0.68) (0.62) (0.63) (0.70)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $ 9.59 $ 9.89 $ 10.41 $ 10.43 $ 10.10 $ 10.07
======== ======== ======== ======== ======== ========
Total return 0.10%+ 0.92% 6.48% 9.78% 6.80% 12.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $317,954 $393,433 $423,536 $265,453 $151,184 $116,983
Ratio of expenses to
average net assets 0.78%*@ 0.76%@ 0.75%@ 0.75%@ 0.76%@ 0.75%
Ratio of net income to
average net assets 6.34%* 5.63% 5.64% 6.05% 6.30% 7.25%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.03%* 0.04% 0.04% 0.08% 0.15% 0.18%
Portfolio turnover rate 48.22% 144.02% 124.04% 129.06% 194.23% 182.93%
<FN>
---------------------------------------------------------------------------------
@ 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 .03% for the six months ended April 30,
2000 and 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 the six months ended
April 30, 2000 and for each of the years ended October 31, 1999, 1998, 1997
and 1996, respectively.
+ Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Period)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 2000
(UNAUDITED) 1999 1998 1997 1996 1995
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value,
beginning of period $ 10.25 $ 10.62 $ 10.91 $ 11.17 $ 11.04 $ 10.45
-------- -------- -------- -------- -------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.27 0.52 0.58 0.54 0.62 0.99
Net gains (losses) on investments
and foreign currency related items
(both realized and unrealized) (0.15) (0.29) (0.16) 0.08 0.57 0.09
-------- -------- -------- -------- -------- -------
Total from investment
activities 0.12 0.23 0.42 0.62 1.19 1.08
-------- -------- -------- -------- -------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.57) (0.59) (0.71) (0.34) (1.06) (0.49)
Dividends in excess of net
investment income 0 (0.01) 0.00 0.00 0.00 0.00
Distributions from net realized gains 0 0.00 0.00 (0.54) 0.00 0.00
-------- -------- -------- -------- -------- -------
Total dividends and
distributions (0.57) (0.60) (0.71) (0.88) (1.06) (0.49)
-------- -------- -------- -------- -------- -------
NET ASSET VALUE, END OF PERIOD $ 9.80 $ 10.25 $ 10.62 $ 10.91 $ 11.17 $ 11.04
======== ======== ======== ======== ======== =======
Total return 1.14%+ 2.18% 4.10% 5.76% 11.35% 10.65%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $117,019 $135,327 $154,131 $194,731 $131,072 $63,641
Ratio of expenses to
average net assets 0.98%*@ 0.96%@ 0.95%@ 0.96%@ 0.95%@ 0.95%
Ratio of net income to
average net assets 5.55%* 5.00% 5.21% 5.40% 6.78% 8.18%
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.57%* 0.57% 0.46% 0.39% 0.56% 0.63%
Portfolio turnover rate 63.71% 365.02% 233.73% 202.92% 123.90% 128.70
<FN>
--------------------------------------------------------------------------------
@ 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 .03% for the six months ended April 30,
2000 and .01%, .00%, .01% and .00% 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 the six months ended
April 30, 2000 and for each of the years ended October 31, 1999, 1998, 1997
and 1996, respectively.
+ Non-annualized.
* Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Intermediate Maturity Government Fund (the "Intermediate
Government Fund"), a Maryland Corporation, and the Warburg Pincus Fixed Income
Fund (the "Fixed Income Fund"), a Massachusetts Business Trust, 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"), a Massachusetts
Business Trust, and the Warburg Pincus Global Fixed Income Fund (the "Global
Fixed Income Fund"), a Maryland Corporation, 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 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
29
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
are not readily available, securities and other assets are valued by another
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
30
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
foreign securities. Focusing on emerging (less developed) markets involves
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 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.
31
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
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 ("CSAM"), the Fund's investment adviser (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 April 30, 2000, 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 six months ended April 30, 2000, the Funds
received credits or reimbursements under this arrangement as follows:
FUND AMOUNT
---- --------
Intermediate Government $ 7,674
New York Municipal 11,548
Fixed Income 49,581
Global Fixed Income 17,291
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Pursuant to Investment Advisory Agreements, CSAM, an indirect, wholly-owned
subsidiary of Credit Suisse Group, serves as investment advisor for the funds
described herein.
For its investment advisory services, CSAM 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
32
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the six months ended April 30, 2000, investment advisory fees and
voluntary waivers were as follows:
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ --------- -------------
Intermediate Government $135,417 $ (69,551) $ 65,866
New York Municipal 162,673 (44,608) 118,065
Fixed Income 892,919 (51,524) 841,395
Global Fixed Income 616,748 (353,640) 263,108
Counsellors Funds Service, Inc. ("CFSI"), a wholly-owned subsidiary of CSAM
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 subsidiary of
PNC Financial Services Group, Inc. ("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 six months ended April 30, 2000, administrative services fees
earned by CFSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Intermediate Government $ 27,083
New York Municipal 40,668
Fixed Income 178,584
Global Fixed Income 61,675
For its 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.
For the six months ended April 30, 2000, administrative services fees earned
and voluntarily waived by PFPC (including out-of-pocket expenses) were as
follows:
<TABLE>
<CAPTION>
NET
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- ----------------- ---------- ---------------------
<S> <C> <C> <C>
Intermediate Government $15,619 $(13,542) $ 2,077
New York Municipal 25,433 0 25,433
Fixed Income 92,973 0 92,973
Global Fixed Income 33,121 0 33,121
</TABLE>
CSAMSI served as distributor of each Fund's shares until January 1, 2000. On
January 1, 2000, Provident Distributors, Inc. ("PDI") replaced CSAMSI as
distributor to each Fund. No compensation is paid by the Common Class shares for
distribution services. Also, no compensation is payable by any of the Fund's to
PDI for distribution services. Pursuant to a distribution plan
33
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
adopted by each Fund pursuant to Rule 12b-1 under the 1940 Act, CSAMSI receives
a fee for its selling services. This fee is 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. CSAMSI may use this
fee to compensate service organizations for shareholder servicing and
distribution services. For the six months ended April 30, 2000, shareholder
servicing and distribution fees were as follows:
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- -----------------------
Intermediate Government $ 31
Fixed Income 8,188
Global Fixed Income 74
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 April 30, 2000, and during the
six months ended April 30, 2000, the Funds had no borrowings under the credit
facility.
4. INVESTMENTS IN SECURITIES
For the six months ended April 30, 2000, purchases and sales of investment
securities (excluding short-term investments) and U.S. government and agency
obligations were as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT AND
INVESTMENT SECURITIES AGENCY OBLIGATIONS
------------------------ -------------------------
FUND PURCHASES SALES PURCHASES SALES
---- ----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Intermediate Government $ 0 $ 0 $ 16,272,127 $ 15,024,087
New York Municipal 10,608,232 13,728,320 0 0
Fixed Income 32,108,941 78,827,946 128,197,400 111,579,453
Global Fixed Income 49,949,414 69,121,063 24,225,998 22,077,133
</TABLE>
34
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
4. INVESTMENTS IN SECURITIES -- (CONT'D)
At April 30, 2000, 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 $ 23,955 $(1,696,945) $ (1,672,990)
New York Municipal 309,172 (1,259,124) (949,952)
Fixed Income 316,801 (16,409,887) (16,093,086)
Global Fixed Income 453,455 (8,237,593) (7,784,138)
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.
At April 30, 2000, 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
------------------------- ---------- ---------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
European Economic Unit 07/19/00 20,485,000 $19,812,887 $18,772,454 $1,040,433
Japanese Yen 07/19/00 627,500,000 6,080,426 5,892,782 187,644
Swedish Krona 07/19/00 40,000,000 4,613,610 4,491,808 121,802
Danish Krona 07/19/00 44,000,000 5,670,103 5,401,888 268,215
South African Rand 07/19/00 7,000,000 1,045,713 1,023,422 22,291
----------- ----------- ----------
$37,222,739 $35,582,354 $1,640,385
=========== =========== ==========
</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
35
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
6. FUTURES CONTRACTS -- (CONT'D)
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 six months ended April 30, 2000, 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.
Transactions in classes of each Fund were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT FUND
----------------------------------------------------------
COMMON CLASS ADVISOR CLASS
---------------------------- ----------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Shares sold 2,876,541 6,866,626 1,178 1,181
Shares issued to shareholders on reinvestment
of dividends and distributions 114,153 360,109 56 81
Shares redeemed (2,933,617) (8,973,318) (352) (312)
------------ ------------ ------- -------
Net increase (decrease) in shares outstanding 57,077 (1,746,583) 882 950
============ ============ ======= =======
Proceeds from sale of shares $ 27,706,782 $ 68,853,863 $11,375 $11,765
Reinvestment of dividends and distributions 1,100,478 3,611,795 541 803
Net asset value of shares redeemed (28,317,691) (89,905,584) (3,396) (3,147)
------------ ------------ ------- -------
Net increase (decrease) from capital
share transactions $ 489,569 $(17,439,926) $ 8,520 $ 9,421
============ ============ ======= =======
</TABLE>
36
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
<TABLE>
<CAPTION>
NEW YORK MUNICIPAL FUND
-------------------------------------------------
COMMON CLASS ADVISOR CLASS
----------------------------- -------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, OCTOBER 31,
(UNAUDITED) 1999 1999
-------------- ------------ -----------
<S> <C> <C> <C>
Shares sold 2,248,927 5,216,327 0
Shares issued to shareholders on reinvestment
of dividends and distributions 127,037 392,124 0
Shares redeemed (2,775,937) (7,392,453) (16)
------------ ------------ -----
Net decrease in shares outstanding (399,973) (1,784,002) (16)
============ ============ =====
Proceeds from sale of shares $ 22,521,776 $ 54,393,636 0
Reinvestment of dividends and distributions 1,271,033 4,058,953 0
Net asset value of shares redeemed (27,828,743) (76,643,566) (165)
------------ ------------ -----
Net decrease from capital share transactions $ (4,035,934) $(18,190,977) $(165)
============ ============ =====
</TABLE>
<TABLE>
<CAPTION>
FIXED INCOME FUND
----------------------------------------------------------
COMMON CLASS ADVISOR CLASS
---------------------------- ---------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
-------------- ----------- -------------- -----------
<S> <C> <C> <C> <C>
Shares sold 14,547,384 18,227,693 55,193 439,586
Shares issued to shareholders on reinvestment
of dividends and distributions 845,616 2,122,951 17,171 21,355
Shares redeemed (22,032,966) (21,257,886) (84,195) (65,295)
------------- -------------- --------- ----------
Net increase (decrease) in shares outstanding (6,639,966) (907,242) (11,831) 395,646
============= ============== ========= ==========
Proceeds from sale of shares $ 141,889,568 $ 185,177,834 $ 538,464 $4,390,502
Reinvestment of dividends and distributions 8,244,647 21,509,897 167,290 215,485
Net asset value of shares redeemed (215,023,621) (215,896,103) (820,774) (657,513)
------------- -------------- --------- ----------
Net increase (decrease) from capital
share transactions $ (64,889,406) $ (9,208,372) $(115,020) $3,948,474
============= ============== ========= ==========
</TABLE>
37
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
7. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
----------------------------------------------------------------
COMMON CLASS ADVISOR CLASS
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999 (UNAUDITED) 1999
------------- ------------ -------------- ------------
<S> <C> <C> <C> <C>
Shares sold 2,378,129 7,349,863 0 6,616
Shares issued to shareholders on reinvestment
of dividends 652,123 712,944 38 14,067
Shares redeemed (4,299,995) (9,371,367) (4,586) (630,756)
------------ ------------ -------- -----------
Net decrease in shares outstanding (1,269,743) (1,308,560) (4,548) (610,073)
============ ============ ======== ===========
Proceeds from sale of shares $ 23,778,843 $ 77,695,811 $ 0 $ 69,749
Reinvestment of dividends 6,494,127 7,433,475 397 148,402
Net asset value of shares redeemed (43,075,377) (98,813,056) (48,243) (6,705,155)
------------ ------------ -------- -----------
Net decrease from capital
share transactions $(12,802,407 $(13,683,770) $(47,846) $(6,487,004)
============ ============ ======== ===========
</TABLE>
8. CAPITAL LOSS CARRYOVER
At April 30, 2000, 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>
38
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. 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 SIX -----------------------------
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 -----------------------------
(UNAUDITED) 1999 1998 1997**
-------------- ------ ------ --------
<S> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 9.77 $10.38 $10.06 $ 9.95
------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income 0.22 0.51 0.53 0.11
Net gains (losses) on investments and
foreign currency related items (both
realized and unrealized) (0.17) (0.55) 0.32 0.11
------ ------ ------ ------
Total from investment activities 0.05 (0.04) 0.85 0.22
------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.22) (0.51) (0.53) (0.11)
Distributions from net realized gains 0.00 (0.05) 0.00 0.00
Distributions in excess of net realized gains 0.00 (0.01) 0.00 0.00
------ ------ ------ ------
Total dividends and distributions (0.22) (0.57) (0.53) (0.11)
------ ------ ------ ------
Net asset value, end of period $ 9.60 $ 9.77 $10.38 $10.06
====== ====== ====== ======
Total return 0.98%+ (0.39)% 8.99% 2.22%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 28 $ 20 $ 12 $ 2
Ratio of expenses to average net assets@ 0.88%* 0.86% 0.85% 0.85%*
Ratio of net loss to average net assets 5.52%* 5.08% 5.28% 5.62%*
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 0.30%* 0.30% 3.30% 0.00%*
Portfolio turnover rate 30.65% 91.13% 133.98% 104.34%
<FN>
--------------------------------------------------------------------------------
+ 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 .03% for the six months ended April
30, 2000 and .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 six months
ended April 30, 2000 and for each of the years or period ended October 31,
1999, 1998, and 1997, respectively.
</FN>
</TABLE>
39
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
FIXED INCOME FUND
-----------------------------------------------------
ADVISOR CLASS
FOR THE SIX --------------------------------------
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 --------------------------------------
(UNAUDITED) 1999 1998 1997 1996**
-------------- ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $ 9.89 $10.41 $10.43 $10.10 $ 9.90
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income 0.30 0.54 0.56 0.60 0.19
Net gains (losses) on investments
and foreign currency related
items (both realized and unrealized) (0.30) (0.48) 0.07 0.33 0.20
------ ------ ------ ------ ------
Total from investment activities 0.00 0.06 0.63 0.93 0.39
------ ------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income (0.30) (0.54) (0.56) (0.60) (0.19)
Distributions from net realized gains 0.00 (0.04) (0.09) 0.00 0.00
------ ------ ------ ------ ------
Total dividends and
distributions (0.30) (0.58) (0.65) (0.60) (0.19)
------ ------ ------ ------ ------
Net asset value, end of period $ 9.59 $ 9.89 $10.41 $10.43 $10.10
====== ====== ====== ====== ======
Total return (0.03)%+ 0.67% 6.21% 9.51% 3.93%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s omitted) $6,500 $6,817 $3,058 $3,963 $ 911
Ratio of expenses to average
net assets@ 1.03%* 1.01% 1.00% 1.00% 1.00%*
Ratio of net income to average
net assets 6.10%* 5.38% 5.40% 5.62% 5.85%*
Decrease reflected in above
operating ratios due to
waivers/reimbursements 0.03%* 0.05% 0.04% 0.08% 0.11%*
Portfolio turnover rate 48.22% 144.02% 124.04% 129.06% 194.23%
<FN>
--------------------------------------------------------------------------------
+ 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 .03% for the six months ended April
30, 2000 and .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
six months ended April 30, 2000 and for each of the years or period ended
October 31, 1999, 1998, 1997, and 1996, respectively.
</FN>
</TABLE>
40
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 2000 (Unaudited)
--------------------------------------------------------------------------------
9. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
-------------------------------------------------------
ADVISOR CLASS
FOR THE SIX --------------------------------------
MONTHS ENDED FOR THE YEAR ENDED OCTOBER 31,
APRIL 30, 2000 --------------------------------------
(UNAUDITED) 1999 1998 1997 1996**
-------------- ------- ------ ------ -------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of period $10.48 $10.57 $10.90 $11.17 $10.90
------ ------ ------ ------ ------
INVESTMENT ACTIVITIES:
Net investment income 0.26 0.44(a) 0.37 0.41 0.10
Net gains (losses) on investments and
foreign currency related items (both
realized and unrealized) (0.16) (0.29) (0.02) 0.15 0.27
------ ------ ------ ------ ------
Total from investment activities 0.10 0.15 0.35 0.56 0.37
------ ------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.20) (0.00) (0.68) (0.29) (0.10)
Dividends in excess of net investment
income 0.00 (0.24) 0.00 0.00 0.00
Distributions from net
realized gains 0.00 0.00 0.00 (0.54) 0.00
------ ------ ------ ------ ------
Total dividends and distributions (0.20) (0.24) (0.68) (0.83) (0.10)
------ ------ ------ ------ ------
Net asset value, end of period $10.38 $10.48 $10.57 $10.90 $11.17
====== ====== ====== ====== ======
Total return 0.93%+ 1.41% 3.51% 5.18% 3.41%+
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted)$ 21 $ 69 $6,518 $8,935 $ 39
Ratio of expenses to average
net assets@ 1.48%* 1.45% 1.45% 1.45% 1.45%*
Ratio of net income to average
net assets 4.85%* 4.14% 4.75% 4.76% 5.69%*
Decrease reflected in above operating
expense ratios due to
waviers/reimbursements 0.59%* 0.49% 0.37% 0.33% 0.21%*
Portfolio turnover rate 63.71% 365.02% 233.73% 202.92% 123.90%
<FN>
--------------------------------------------------------------------------------
(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 resulted in a reduction to the
Advisor Class shares' expense ratio by .03% for the six months ended April
30, 2000 and .00%, .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 1.45% for the
six months ended April 30, 2000 and for each of the years or period ended
October 31, 1999, 1998, 1997, and 1996, respectively.
</FN>
</TABLE>
41
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[GRAPHIC OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (BULLET) www.warburg.com
PROVIDENT DISTRIBUTORS, INC., DISTRIBUTOR. WPBDF-3-0400
