[GRAPHICS OMITTED]
WARBURG PINCUS FUNDS
PART OF CREDIT SUISSE ASSET MANAGEMENT
ANNUAL
REPORT
OCTOBER 31, 2000
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.
Credit Suisse Asset Management Securities, Inc., Distributor, is located at 466
Lexington Avenue, New York, NY 10017. Warburg Pincus Funds are advised by Credit
Suisse Asset Management, LLC.
<PAGE>
FROM TIME TO TIME, THE FUNDS' INVESTMENT ADVISER AND CO-ADMINISTRATORS MAY WAIVE
SOME FEES AND/OR REIMBURSE SOME EXPENSES, WITHOUT WHICH PERFORMANCE WOULD BE
LOWER. WAIVERS AND/OR REIMBURSEMENTS ARE SUBJECT TO CHANGE.
RETURNS ARE HISTORICAL AND INCLUDE CHANGE IN SHARE PRICE AND REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS. PAST PERFORMANCE CANNOT GUARANTEE FUTURE RESULTS.
RETURNS AND SHARE PRICE WILL FLUCTUATE, AND REDEMPTION VALUE MAY BE MORE OR LESS
THAN ORIGINAL COST.
INTERNATIONAL INVESTING ENTAILS SPECIAL RISK CONSIDERATIONS, INCLUDING CURRENCY
FLUCTUATIONS, LOWER LIQUIDITY, ECONOMIC AND POLITICAL RISKS, AND DIFFERENCES IN
ACCOUNTING METHODS.
THE VIEWS OF THE FUNDS' MANAGEMENT ARE AS OF THE DATE OF THE LETTERS AND
PORTFOLIO HOLDINGS DESCRIBED IN THIS DOCUMENT ARE AS OF OCTOBER 31, 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.WARBURG PINCUS INTERMEDIATE MATURITY
GOVERNMENT FUND
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
ANNUAL INVESTMENT ADVISER'S REPORT-- OCTOBER 31, 2000
--------------------------------------------------------------------------------
December 6, 2000
Dear Shareholder:
For the 12 months ended October 31, 2000, the Common Class shares of Warburg
Pincus Intermediate Maturity Government Fund had a return of 6.27%, vs. a return
of 6.73% for the Lehman Brothers Intermediate Government Bond Index.
The domestic bond market struggled during the first half of the period, but
conditions became much more favorable for bonds over the May-through-October
span. This was mainly due to two factors. First, the Federal Reserve, which had
raised interest rates by 175 basis points between June 1999 and May 2000,
appeared to be at or near the end of its campaign to contain inflation with rate
hikes (in fact, the Fed has left its tightening efforts on hold since May).
Given the prospects for stable or even lower interest rates, the outlook
improved for fixed-income securities. In addition, fears of a slowing economy
late in the period clouded the outlook for corporate profits and fueled
volatility in the stock market. This raised the premium on the safety and
liquidity of bonds, at least high-quality bonds such as Treasuries and
government-agency securities.
The Fund had a gain for the period, aided by the ultimately favorable
environment for the high-quality bonds in which it invests. With respect to
sector allocation, we maintained a bias in favor of government-agency bonds,
such as mortgage "pass through" securities. While agency bonds slightly lagged
Treasury bonds for the 12 months in terms of total return, we continued to view
them as more attractive than Treasuries on a risk-adjusted yield basis.
Going forward, our efforts will remain devoted to providing what we deem to
be attractive levels of yield while maintaining a high-quality portfolio. We
will continue to make duration and sector adjustments to the Fund based on
risk-vs.-reward considerations.
M. Anthony E. van Daalen
Portfolio Manager
1
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN COMMON CLASS SHARES OF
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SINCE INCEPTION AS OF OCTOBER 31, 2000
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Intermediate Maturity Government Fund (the
"Fund") from August 22, 1988 (inception) to October 31, 2000, compared to the
Lehman Brothers Intermediate Government Bond Index ("LIG")1 for the same time
period. Past performance does not predict future results.
[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Average Total Returns for years ended 10/31/00
1 year 3 year 5 year 10 year
6.27% 5.03% 5.44% 6.98%
Fund LIG
8/22/88 $10,000.00 $10,000.00
9/1/88 10,133.80 10,172.80
10/1/88 10,250.20 10,313.00
11/1/88 10,136.10 10,224.40
12/1/88 10,154.40 10,234.20
1/1/89 10,245.10 10,336.20
2/1/89 10,208.10 10,292.10
3/1/89 10,239.70 10,340.40
4/1/89 10,424.90 10,549.00
5/1/89 10,591.80 10,752.60
6/1/89 10,814.40 11,026.70
7/1/89 11,023.50 11,250.80
8/1/89 10,884.00 11,098.80
9/1/89 10,943.90 11,151.80
10/1/89 11,177.60 11,385.80
11/1/89 11,269.40 11,498.50
12/1/89 11,322.30 11,532.30
1/1/90 11,230.60 11,460.70
2/1/90 11,253.60 11,503.10
3/1/90 11,239.30 11,516.80
4/1/90 11,178.20 11,478.20
5/1/90 11,445.20 11,724.10
6/1/90 11,597.70 11,878.30
7/1/90 11,776.60 12,044.80
8/1/90 11,703.90 12,001.40
9/1/90 11,800.80 12,108.60
10/1/90 11,970.50 12,277.40
11/1/90 12,161.90 12,462.30
12/1/90 12,332.80 12,634.90
1/1/91 12,445.90 12,764.80
2/1/91 12,516.40 12,842.20
3/1/91 12,571.00 12,913.20
4/1/91 12,693.80 13,046.60
5/1/91 12,758.30 13,120.10
6/1/91 12,737.70 13,131.00
7/1/91 12,903.00 13,273.20
8/1/91 13,180.40 13,525.20
9/1/91 13,432.10 13,755.10
10/1/91 13,611.90 13,912.40
11/1/91 13,777.10 14,075.70
12/1/91 14,185.20 14,417.70
1/1/92 13,957.50 14,279.10
2/1/92 13,978.00 14,323.50
3/1/92 13,873.50 14,266.50
4/1/92 14,012.20 14,394.60
5/1/92 14,241.90 14,609.40
6/1/92 14,508.90 14,819.90
7/1/92 14,841.90 15,104.20
8/1/92 15,016.50 15,258.50
9/1/92 15,269.90 15,468.80
10/1/92 15,020.10 15,283.20
11/1/92 14,901.40 15,221.10
12/1/92 15,129.40 15,417.20
1/1/93 15,441.40 15,703.60
2/1/93 15,692.00 15,935.10
3/1/93 15,750.00 15,993.70
4/1/93 15,892.10 16,118.80
5/1/93 15,819.10 16,075.00
6/1/93 16,034.50 16,307.70
7/1/93 16,046.00 16,340.50
8/1/93 16,261.70 16,583.80
9/1/93 16,329.40 16,651.30
10/1/93 16,340.60 16,690.80
11/1/93 16,244.90 16,608.30
12/1/93 16,320.20 16,677.10
1/1/94 16,502.70 16,841.90
2/1/94 16,299.90 16,610.80
3/1/94 16,100.20 16,368.60
4/1/94 15,948.30 16,262.90
5/1/94 15,944.70 16,274.40
6/1/94 15,939.80 16,277.70
7/1/94 16,130.80 16,491.40
8/1/94 16,175.20 16,539.40
9/1/94 16,069.40 16,402.90
10/1/94 16,049.60 16,406.20
11/1/94 15,979.70 16,333.40
12/1/94 16,029.20 16,386.60
1/1/95 16,298.60 16,653.20
2/1/95 16,563.60 16,974.50
3/1/95 16,649.60 17,068.00
4/1/95 16,801.80 17,265.80
5/1/95 17,352.80 17,752.70
6/1/95 17,437.50 17,865.60
7/1/95 17,420.00 17,874.20
8/1/95 17,646.10 18,021.80
9/1/95 17,782.30 18,142.60
10/1/95 18,027.50 18,341.40
11/1/95 18,360.20 18,565.00
12/1/95 18,635.20 18,748.20
1/1/96 18,721.30 18,906.50
2/1/96 18,458.30 18,706.80
3/1/96 18,271.40 18,621.50
4/1/96 18,173.80 18,567.30
5/1/96 18,152.80 18,557.90
6/1/96 18,350.60 18,746.40
7/1/96 18,385.80 18,804.50
8/1/96 18,402.40 18,826.00
9/1/96 18,621.70 19,069.40
10/1/96 18,958.10 19,381.90
11/1/96 19,180.50 19,615.90
12/1/96 19,057.70 19,510.50
1/1/97 19,114.60 19,585.70
2/1/97 19,163.70 19,617.60
3/1/97 19,044.60 19,506.10
4/1/97 19,233.80 19,726.20
5/1/97 19,368.20 19,879.80
6/1/97 19,540.90 20,049.80
7/1/97 19,934.00 20,419.50
8/1/97 19,810.40 20,341.70
9/1/97 20,044.20 20,562.80
10/1/97 20,280.70 20,802.40
11/1/97 20,315.20 20,848.20
12/1/97 20,496.00 21,019.10
1/1/98 20,778.80 21,293.40
2/1/98 20,726.90 21,271.10
3/1/98 20,805.60 21,337.20
4/1/98 20,861.80 21,439.00
5/1/98 21,024.50 21,586.90
6/1/98 21,186.40 21,731.80
7/1/98 21,203.30 21,815.40
8/1/98 21,640.10 22,228.20
9/1/98 22,181.20 22,746.80
10/1/98 22,125.70 22,784.50
11/1/98 22,088.10 22,714.80
12/1/98 22,169.80 22,803.20
1/1/99 22,265.10 22,904.90
2/1/99 21,920.00 22,590.80
3/1/99 22,062.50 22,740.60
4/1/99 22,113.20 22,802.20
5/1/99 21,947.40 22,662.70
6/1/99 21,936.40 22,695.10
7/1/99 21,901.30 22,698.30
8/1/99 21,910.10 22,730.10
9/1/99 22,100.70 22,925.60
10/1/99 22,114.00 22,971.40
11/1/99 22,127.20 22,987.20
12/1/99 22,071.90 22,915.10
1/1/00 21,972.60 22,838.30
2/1/00 22,139.60 23,027.40
3/1/00 22,343.30 23,290.20
4/1/00 22,336.60 23,280.80
5/1/00 22,401.30 23,343.00
6/1/00 22,746.30 23,713.70
7/1/00 22,882.80 23,871.10
8/1/00 23,136.80 24,138.70
9/1/00 23,368.20 24,349.50
10/1/00 23,503.70 24,516.50
FUND
------
1 Year Total Return (9/30/99 to 9/30/00) .............................. 5.72%
3 Year Average Annual Total Return (9/30/97 to 9/30/00) ............... 5.24%
5 Year Average Annual Total Return (9/30/95 to 9/30/00) ............... 5.61%
10 Year Average Annual Total Return (9/30/90 to 9/30/00) ......... 7.07%
----------
1 The Lehman Brothers Intermediate Government Bond Index is an unmanaged index
(with no defined investment objective) of intermediate-term government bonds,
and is calculated by Lehman Brothers Inc.
2
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
ANNUAL INVESTMENT ADVISER'S REPORT-- OCTOBER 31, 2000
--------------------------------------------------------------------------------
December 6, 2000
Dear Shareholder:
For the 12 months ended October 31, 2000, the Common Class shares of Warburg
Pincus New York Intermediate Municipal Fund had a gain of 6.54%, vs. a gain of
5.79% for the Lehman Brothers Five-Year Municipal Bond Index.
The period was a positive one for municipal bonds nationally and in New York,
with the group benefiting from a favorable supply/demand backdrop. On the supply
side, municipal issuance continued to decline through the period. This was
mainly due to the vibrancy of the U.S. economy. Tax revenues remained high,
keeping municipalities' fiscal profiles healthy and lessening the need for bond
financing. A slowdown in refundings also kept a lid on supply.
Demand, meanwhile, remained supportive, and in fact rose over the latter part
of the period. Within an increasingly volatile stock market, many investors
opted for the relative safety and liquidity of high-quality bonds, including
high-quality municipal securities. And because municipal securities are
generally sheltered from currency volatility and rising energy prices--two
factors that clouded the outlook for corporate profits late in the period--this
added to their appeal in the eyes of risk-conscious investors.
In addition, municipal bond prices were aided by a strong flow of credit
upgrades through the year. Many New York bonds were upgraded in the period,
including New York City and related bonds as well as State debt.
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 12 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.
3
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 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. Supply should remain relatively low, barring unlikely developments
such as an economic recession and/or voter approval of massive new issuance.
(Indeed, New York voters rejected a $3.8 billion "transportation improvements"
bond proposal in November's election. However, there is a pending MTA deal that
could add some supply to the market early in 2001, and we continue to monitor
this development.) While demand for these bonds will no doubt fluctuate, there
remains a solid base of New York investors who should continue to find the
after-tax yields offered by municipal bonds very appealing, especially on a
risk-adjusted basis. As ever, we will continue to focus on bonds that we deem to
have attractive risk-adjusted, after-tax yields.
Sharon B. Parente Patrick A. Bittner, CFA
Co-Portfolio Manager Co-Portfolio Manager
A PORTION OF THE FUND'S INCOME MAY BE SUBJECT TO STATE AND CITY TAXES OR THE
FEDERAL ALTERNATIVE MINIMUM TAX.
4
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN COMMON CLASS SHARES OF
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SINCE INCEPTION AS OF OCTOBER 31, 2000
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus New York Intermediate Municipal Fund (the "Fund")
from April 1, 1987 (inception) to October 31, 2000, compared to the Lehman
Brothers 5-year Municipal Bond Index ("LBMUNI")1 for the same time period. Past
performance does not predict future results.[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Average Total Returns for years ended 10/31/00
1 year 3 year 5 year 10 year
6.54% 4.13% 4.61% 5.87%
Fund LBMUNI
4/1/87 $10,000.00 $10,000.00
4/1/87 9,675.84 10,000.00
5/1/87 9,700.40 10,000.00
6/1/87 9,853.24 10,000.00
7/1/87 9,969.78 10,000.00
8/1/87 9,975.30 10,000.00
9/1/87 9,733.56 10,000.00
10/1/87 9,687.35 10,000.00
11/1/87 9,846.04 10,000.00
12/1/87 9,976.44 10,000.00
1/1/88 10,266.00 10,255.00
2/1/88 10,322.10 10,360.00
3/1/88 10,203.10 10,326.10
4/1/88 10,259.70 10,387.20
5/1/88 10,256.60 10,341.20
6/1/88 10,325.30 10,420.30
7/1/88 10,353.60 10,462.20
8/1/88 10,349.50 10,438.40
9/1/88 10,495.70 10,569.40
10/1/88 10,600.70 10,681.40
11/1/88 10,563.50 10,611.60
12/1/88 10,616.40 10,638.50
1/1/89 10,693.30 10,791.50
2/1/89 10,643.10 10,700.70
3/1/89 10,597.90 10,637.70
4/1/89 10,741.10 10,830.80
5/1/89 10,877.30 11,011.80
6/1/89 10,989.70 11,147.80
7/1/89 11,080.40 11,301.80
8/1/89 11,045.10 11,241.90
9/1/89 11,019.30 11,249.90
10/1/89 11,121.80 11,357.90
11/1/89 11,246.50 11,506.90
12/1/89 11,339.80 11,604.00
1/1/90 11,281.90 11,601.00
2/1/90 11,382.60 11,693.00
3/1/90 11,382.60 11,713.00
4/1/90 11,286.70 11,665.10
5/1/90 11,453.50 11,868.20
6/1/90 11,550.90 11,969.20
7/1/90 11,721.70 12,125.30
8/1/90 11,650.80 12,074.40
9/1/90 11,699.20 12,119.40
10/1/90 11,809.80 12,307.50
11/1/90 11,992.30 12,484.50
12/1/90 12,016.60 12,536.50
1/1/91 12,141.60 12,714.60
2/1/91 12,260.20 12,844.60
3/1/91 12,284.70 12,816.80
4/1/91 12,394.70 12,975.80
5/1/91 12,455.90 13,055.90
6/1/91 12,463.00 13,044.00
7/1/91 12,588.60 13,203.00
8/1/91 12,700.90 13,379.00
9/1/91 12,811.60 13,542.10
10/1/91 12,923.00 13,646.10
11/1/91 12,941.30 13,707.10
12/1/91 13,158.40 14,004.10
1/1/92 13,216.30 14,045.20
2/1/92 13,243.00 14,051.20
3/1/92 13,220.90 14,012.30
4/1/92 13,302.60 14,132.40
5/1/92 13,454.80 14,269.40
6/1/92 13,646.10 14,483.50
7/1/92 13,986.20 14,859.60
8/1/92 13,838.00 14,713.70
9/1/92 13,930.60 14,832.70
10/1/92 13,780.20 14,687.80
11/1/92 14,026.90 14,858.90
12/1/92 14,148.20 14,973.90
1/1/93 14,316.80 15,153.90
2/1/93 14,815.90 15,533.10
3/1/93 14,645.30 15,368.10
4/1/93 14,739.20 15,459.10
5/1/93 14,793.70 15,506.10
6/1/93 15,003.40 15,728.10
7/1/93 15,004.20 15,741.20
8/1/93 15,261.50 15,968.20
9/1/93 15,374.10 16,089.20
10/1/93 15,389.00 16,129.30
11/1/93 15,285.30 16,047.30
12/1/93 15,547.80 16,284.40
1/1/94 15,710.00 16,429.40
2/1/94 15,449.00 16,161.50
3/1/94 15,101.50 15,824.50
4/1/94 15,231.30 15,923.60
5/1/94 15,335.90 16,003.70
6/1/94 15,350.50 15,994.90
7/1/94 15,500.30 16,180.90
8/1/94 15,572.80 16,258.90
9/1/94 15,475.60 16,150.00
10/1/94 15,395.40 16,043.00
11/1/94 15,283.40 15,897.20
12/1/94 15,462.30 16,077.30
1/1/95 15,649.80 16,277.30
2/1/95 15,891.40 16,562.30
3/1/95 15,966.10 16,731.40
4/1/95 16,008.00 16,795.50
5/1/95 16,272.20 17,148.60
6/1/95 16,316.20 17,178.60
7/1/95 16,425.50 17,388.70
8/1/95 16,535.50 17,546.70
9/1/95 16,548.10 17,590.80
10/1/95 16,674.10 17,697.70
11/1/95 16,846.20 17,858.80
12/1/95 16,953.70 17,951.80
1/1/96 17,081.80 18,131.90
2/1/96 17,026.20 18,081.10
3/1/96 16,939.70 17,954.20
4/1/96 16,918.00 17,952.40
5/1/96 16,948.30 17,945.60
6/1/96 17,043.20 18,051.60
7/1/96 17,224.00 18,183.80
8/1/96 17,238.70 18,199.80
9/1/96 17,385.60 18,349.70
10/1/96 17,485.30 18,509.70
11/1/96 17,684.40 18,750.70
12/1/96 17,686.20 18,714.90
1/1/97 17,752.40 18,778.90
2/1/97 17,863.50 18,916.00
3/1/97 17,755.20 18,710.20
4/1/97 17,785.90 18,790.30
5/1/97 18,012.00 19,021.40
6/1/97 18,113.00 19,176.40
7/1/97 18,374.90 19,513.60
8/1/97 18,317.90 19,413.60
9/1/97 18,435.20 19,585.70
10/1/97 18,503.40 19,687.70
11/1/97 18,551.50 19,748.70
12/1/97 18,725.90 19,918.60
1/1/98 18,885.00 20,100.60
2/1/98 18,892.60 20,131.60
3/1/98 18,907.70 20,148.50
4/1/98 18,792.40 20,064.70
5/1/98 19,061.10 20,305.80
6/1/98 19,146.90 20,374.90
7/1/98 19,160.30 20,447.00
8/1/98 19,432.30 20,697.10
9/1/98 19,646.10 20,910.20
10/1/98 19,657.90 20,971.30
11/1/98 19,703.10 21,008.40
12/1/98 19,750.40 21,081.50
1/1/99 19,989.40 21,304.60
2/1/99 19,879.40 21,282.60
3/1/99 19,889.40 21,300.70
4/1/99 19,935.10 21,364.80
5/1/99 19,831.40 21,277.90
6/1/99 19,589.50 21,036.80
7/1/99 19,697.20 21,167.20
8/1/99 19,667.70 21,158.80
9/1/99 19,695.20 21,234.90
10/1/99 19,608.60 21,181.90
11/1/99 19,755.70 21,306.00
12/1/99 19,670.70 21,235.90
1/1/00 19,605.80 21,225.90
2/1/00 19,731.30 21,295.90
3/1/00 20,005.50 21,490.00
4/1/00 19,921.50 21,441.00
5/1/00 19,859.80 21,435.00
6/1/00 20,292.70 21,828.10
7/1/00 20,507.80 22,058.10
8/1/00 20,784.70 22,295.30
9/1/00 20,714.00 22,258.30
10/1/00 20,888.00 22,407.40
FUND
-----
1 Year Total Return (9/30/99 to 9/30/00) ............................... 5.18%
3 Year Average Annual Total Return (9/30/97 to 9/30/00) ................ 3.96%
5 Year Average Annual Total Return (9/30/95 to 9/30/00) ................ 4.60%
10 Year Average Annual Total Return (9/30/90 to 9/30/00) .......... 5.88%
----------
1 The Lehman Brothers 5-year Municipal Bond Index is an unmanaged index of
municipal bonds that is compiled by Lehman Brothers Inc. and has no defined
investment objective. The inception date of this index was 01/01/88. The
Average Annual Total Return for the period 01/01/88 to 10/31/99 for the Fund
was 5.87% and for the Lehman 5-year Municipal bond Index was 6.55%
5
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT-- OCTOBER 31, 2000
--------------------------------------------------------------------------------
December 6, 2000
Dear Shareholder:
For the 12 months ended October 31, 2000, the Common Class shares of Warburg
Pincus Fixed Income Fund (the "Fund") had a gain of 5.59%. For the six months
ended October 31, 2000, the Fund had a gain of 5.49%, vs. a return of 5.80% for
the Lehman Brothers Aggregate Bond Index, the Fund's new benchmark effective May
1, 2000. For the six months ended April 30, 2000, the 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 benchmark prior to May 1, 2000.
The 12 month period was ultimately a positive one for the U.S. bond market.
While bonds struggled early on, sentiment became more favorable on the
perception that the Federal Reserve was winding down its campaign to raise
interest rates (in fact, the Fed last raised rates in May of this year). In
short, the economy appeared to be slowing, and inflation remained subdued. Bonds
also benefited from volatility in the stock market and worries over corporate
profits late in the period, two factors that raised demand for liquidity and
safety.
By sector, high-quality securities such as Treasury bonds had the best
results. High-quality corporate and mortgage-backed bonds also had positive
total returns, although high-yield (non-investment-grade) corporate bonds were
lackluster, hampered by the increasingly clouded profit outlook.
The Fund's relative return was hindered by its underweighting in Treasury
bonds (compared to both Lehman indexes cited above), as these securities
outpaced the mortgage-backed and corporate bonds that we continued to favor.
That notwithstanding, we believe that the Fund's non-Treasury holdings offer
attractive yield differentials over Treasuries and, with regard to corporate
bonds, have good potential for credit upgrades.
We made one significant change to the Fund as a result of the change in
benchmark. We raised the Fund's duration, from about 3.8 years in April to
roughly 4.8 years as of October 31 (a level more in line with the duration of
the Aggregate Bond Index).
Otherwise, we made no dramatic shifts in strategy, remaining focused on
high-quality bonds while favoring corporate and mortgage-backed securities, as
noted. Bonds that were well-represented in the Fund included Fannie Mae
mortgage-backed issues 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. In the corporate-bond sector, one
6
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
noteworthy movewe made was to add certain telecommunications bonds late in the
period, when we viewed them as very attractively priced.
Looking ahead, we believe that the bond market's underlying fundamentals will
remain supportive as a "soft landing" scenario--i.e., moderate economic growth
combined with low inflation--continues to unfold. While another Fed
interest-rate hike cannot be ruled out, bonds are unlikely to face the sustained
rate increases that restrained the group in 1999 and over the first part of this
year. Set within a potentially more-favorable environment for bonds over the
next year, we will maintain a relatively conservative portfolio while looking
for opportunities to add value on the margin.
M. Anthony E. van Daalen
Portfolio Manager
7
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN COMMON CLASS SHARES OF WARBURG PINCUS
FIXED INCOME FUND SINCE INCEPTION AS OF OCTOBER 31, 2000
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Fixed Income Fund (the "Fund") from August 17,
1987 (inception) to October 31, 2000, compared to the Lehman Brothers Aggregate
Bond Index ("Lehman")1,2 and the Lehman Brothers Intermediate
Government/Corporation Bond Index ("LIGC")3 for the same time period. Past
performance does not predict future results.[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Average Total Returns for years ended 10/31/00
1 year 3 year 5 year 10 year
5.59% 4.30% 5.87% 7.84%
Fund LIGC Lehman
8/17/87 $10,000.00 $10,000.00 $10,000.00
9/1/87 9,865.38 9,865.00 9,787.10
10/1/87 9,776.10 10,152.40 10,135.70
11/1/87 9,989.00 10,216.90 10,216.90
12/1/87 10,116.50 10,324.30 10,356.10
1/1/88 10,463.20 10,588.50 10,720.10
2/1/88 10,628.90 10,706.40 10,847.30
3/1/88 10,632.50 10,665.00 10,745.60
4/1/88 10,633.40 10,647.40 10,687.50
5/1/88 10,604.50 10,600.70 10,615.70
6/1/88 10,784.30 10,769.70 10,871.90
7/1/88 10,798.10 10,747.00 10,814.90
8/1/88 10,779.70 10,763.10 10,843.20
9/1/88 10,922.50 10,949.80 11,088.70
10/1/88 11,014.70 11,098.60 11,297.50
11/1/88 10,972.80 11,004.10 11,160.30
12/1/88 10,991.60 11,013.70 11,172.90
1/1/89 11,147.20 11,129.90 11,333.70
2/1/89 11,144.70 11,084.10 11,251.50
3/1/89 11,119.60 11,132.00 11,300.10
4/1/89 11,298.00 11,354.50 11,536.60
5/1/89 11,507.40 11,580.00 11,839.80
6/1/89 11,758.90 11,871.90 12,200.30
7/1/89 11,895.30 12,115.70 12,459.70
8/1/89 11,825.90 11,959.20 12,275.00
9/1/89 11,818.00 12,015.70 12,337.90
10/1/89 11,872.10 12,269.70 12,641.70
11/1/89 11,922.00 12,387.00 12,762.10
12/1/89 12,002.90 12,420.90 12,796.30
1/1/90 11,858.00 12,341.50 12,644.30
2/1/90 11,789.50 12,386.40 12,685.30
3/1/90 11,886.60 12,402.50 12,694.70
4/1/90 11,897.60 12,359.60 12,578.40
5/1/90 12,098.50 12,631.30 12,950.80
6/1/90 12,282.20 12,800.30 13,158.70
7/1/90 12,490.50 12,977.90 13,340.70
8/1/90 12,277.50 12,924.70 13,162.60
9/1/90 12,188.90 13,024.50 13,271.40
10/1/90 11,976.60 13,175.70 13,440.00
11/1/90 12,188.20 13,375.80 13,729.30
12/1/90 12,356.50 13,558.50 13,943.20
1/1/91 12,550.10 13,696.00 13,943.20
2/1/91 12,692.50 13,805.00 14,115.60
3/1/91 12,772.90 13,899.50 14,236.10
4/1/91 12,935.50 14,051.00 14,334.10
5/1/91 13,031.90 14,137.40 14,574.00
6/1/91 13,071.20 14,147.30 14,566.60
7/1/91 13,226.80 14,305.00 14,768.60
8/1/91 13,510.70 14,578.10 15,088.20
9/1/91 13,763.70 14,828.80 15,393.90
10/1/91 13,902.20 14,997.70 15,565.20
11/1/91 14,011.40 15,170.20 15,708.00
12/1/91 14,438.60 15,540.70 16,174.50
1/1/92 14,286.00 15,400.00 15,954.50
2/1/92 14,318.70 15,460.90 16,058.20
3/1/92 14,264.90 15,400.20 15,967.70
4/1/92 14,417.40 15,535.60 16,083.00
5/1/92 14,648.10 15,776.40 16,386.40
6/1/92 14,847.80 16,009.90 16,611.90
7/1/92 15,215.70 16,328.20 16,950.80
8/1/92 15,339.00 16,491.50 17,122.50
9/1/92 15,539.40 16,715.30 17,325.80
10/1/92 15,331.30 16,498.60 17,095.70
11/1/92 15,263.10 16,436.10 17,099.60
12/1/92 15,406.00 16,656.20 17,371.50
1/1/93 15,753.80 16,980.10 17,704.70
2/1/93 16,060.40 17,247.90 18,014.70
3/1/93 16,195.70 17,316.60 18,089.80
4/1/93 16,345.10 17,456.00 18,215.70
5/1/93 16,340.70 17,417.40 18,238.80
6/1/93 16,586.30 17,690.80 18,569.30
7/1/93 16,640.50 17,734.20 18,674.40
8/1/93 16,868.90 18,015.40 19,001.80
9/1/93 16,972.60 18,090.20 19,054.10
10/1/93 17,114.50 18,138.70 19,125.30
11/1/93 17,037.10 18,037.70 18,962.60
12/1/93 17,136.60 18,120.30 19,065.30
1/1/94 17,397.50 18,321.60 19,322.70
2/1/94 17,257.80 18,050.80 18,987.10
3/1/94 16,964.20 17,753.10 18,519.00
4/1/94 16,779.60 17,632.40 18,371.10
5/1/94 16,734.80 17,644.20 18,368.50
6/1/94 16,739.80 17,646.70 18,327.90
7/1/94 16,935.20 17,900.60 18,691.90
8/1/94 17,060.50 17,956.70 18,715.10
9/1/94 16,954.40 17,791.70 18,439.60
10/1/94 17,011.40 17,789.30 18,423.20
11/1/94 16,949.70 17,708.80 18,382.30
12/1/94 17,021.70 17,771.40 18,509.30
1/1/95 17,158.60 18,070.90 18,875.60
2/1/95 17,455.60 18,445.70 19,324.50
3/1/95 17,402.50 18,551.20 19,443.10
4/1/95 17,669.30 18,780.10 19,714.70
5/1/95 18,269.00 19,347.80 20,477.70
6/1/95 18,414.20 19,477.50 20,627.80
7/1/95 18,485.70 19,480.20 20,581.80
8/1/95 18,739.40 19,657.50 20,830.20
9/1/95 18,938.30 19,799.80 21,032.90
10/1/95 19,153.00 20,020.30 21,306.30
11/1/95 19,318.50 20,283.60 21,625.50
12/1/95 19,596.60 20,496.20 21,928.90
1/1/96 19,785.50 20,673.10 22,074.50
2/1/96 19,604.00 20,430.60 21,690.90
3/1/96 19,515.10 20,325.60 21,662.40
4/1/96 19,415.60 20,254.00 21,419.00
5/1/96 19,504.90 20,238.80 21,375.50
6/1/96 19,618.00 20,453.80 21,662.60
7/1/96 19,683.70 20,514.50 21,721.90
8/1/96 19,778.50 20,530.70 21,685.40
9/1/96 20,092.40 20,816.70 22,063.40
10/1/96 20,454.10 21,184.50 22,552.10
11/1/96 20,812.80 21,464.20 22,938.40
12/1/96 20,802.40 21,326.80 22,725.10
1/1/97 20,929.40 21,409.80 22,794.60
2/1/97 21,082.00 21,450.70 22,851.40
3/1/97 20,913.00 21,302.90 22,598.20
4/1/97 21,102.30 21,553.20 22,936.50
5/1/97 21,311.10 21,732.10 23,153.20
6/1/97 21,564.20 21,930.50 23,428.10
7/1/97 22,103.10 22,376.80 24,059.90
8/1/97 21,948.30 22,264.40 23,854.70
9/1/97 22,257.80 22,523.40 24,206.50
10/1/97 22,455.90 22,772.90 24,557.80
11/1/97 22,496.30 22,823.00 24,670.70
12/1/97 22,635.80 23,005.60 24,919.20
1/1/98 22,982.10 23,307.00 25,239.10
2/1/98 22,899.40 23,289.50 25,220.20
3/1/98 22,968.10 23,364.30 25,307.00
4/1/98 23,073.80 23,481.30 25,439.10
5/1/98 23,246.80 23,652.70 25,680.70
6/1/98 23,435.10 23,804.60 25,898.30
7/1/98 23,432.80 23,888.60 25,953.40
8/1/98 23,697.60 24,264.10 26,375.70
9/1/98 24,057.80 24,873.70 26,993.40
10/1/98 23,913.40 24,849.30 26,850.60
11/1/98 24,040.20 24,847.30 27,003.10
12/1/98 24,109.90 24,947.20 27,084.40
1/1/99 24,182.20 25,084.10 27,277.80
2/1/99 23,884.80 24,715.40 26,801.50
3/1/99 24,066.30 24,899.80 26,950.00
4/1/99 24,148.10 24,976.20 27,035.40
5/1/99 23,976.70 24,784.20 26,798.60
6/1/99 23,967.10 24,801.20 26,713.10
7/1/99 23,933.50 24,778.90 26,599.30
8/1/99 23,900.00 24,797.80 26,585.70
9/1/99 24,091.20 25,028.40 26,894.40
10/1/99 24,134.60 25,093.50 26,993.60
11/1/99 24,151.50 25,123.60 26,991.80
12/1/99 24,100.80 25,040.70 26,861.70
1/1/00 24,001.90 24,948.00 26,773.80
2/1/00 24,198.80 25,155.10 27,097.50
3/1/00 24,385.10 25,416.70 27,454.40
4/1/00 24,160.70 25,358.20 27,375.90
5/1/00 24,139.00 25,397.80 27,363.30
6/1/00 24,699.00 25,845.80 27,932.40
7/1/00 24,933.70 26,042.20 28,186.10
8/1/00 25,302.70 26,349.80 28,594.50
9/1/00 25,500.00 26,589.60 28,774.30
10/1/00 25,487.30 26,710.60 28,964.80
FUND
------
1 Year Total Return (9/30/99 to 9/30/00) .............................. 5.83%
3 Year Average Annual Total Return (9/30/97 to 9/30/00) ............... 4.63%
5 Year Average Annual Total Return (9/30/95 to 9/30/00) ............... 6.12%
10 Year Average Annual Total Return (9/30/90 to 9/30/00) ......... 7.66%
----------
1 The Lehman Brothers Aggregate Bond Index is composed of the Lehman Brothers
Intermediate 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.
2 The Fund changed its performance benchmark, from the Lehman Brothers
Intermediate Government/Corporate Bond Index to the Lehman Brothers Aggregate
Bond Index as of May 1, 2000.
3 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.1
8
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT-- OCTOBER 31, 2000
--------------------------------------------------------------------------------
December 6, 2000
Dear Shareholder:
For the 12 months ended October 31, 2000, Warburg Pincus Global Fixed Income
Fund (the "Fund") had a gain of 4.37%, vs. gains of 7.30% for the Lehman
Brothers Aggregate Bond Index, 6.67% for a Composite Benchmark and 7.76% for the
Salomon Brothers World Government Bond Index (Currency-Hedged). The unhedged
version of the Salomon index had a loss of 5.08% for the period.
Most global bond markets had gains for the 12 months in terms of total return
(i.e., bond-price changes plus coupon income), though overall results were
restrained by ongoing interest-rate uncertainties. Concerned about a potential
pick up in inflation, central banks in developed markets were biased toward
raising interest rates over much of the period. By region, European bond markets
had positive, albeit modest, returns, as did the Japanese and U.S. markets (U.S.
Treasuries were quite strong, however, helped by a supportive supply backdrop
for these securities). Emerging bond markets generally had good results, buoyed
by optimism over revenue growth and credit upgrades with respect to emerging
economies.
Within this environment, the Fund had a gain but lagged its benchmarks for
the period. One factor that hindered the Fund was its sizable weighting in U.S.
corporate bonds, which lagged Treasuries. On the positive side, the Fund
benefited from our continued bias in favor of the U.S. dollar (about 95% of the
Fund was denominated in or hedged into dollars as of October 31), as the dollar
strengthened vs. most major currencies in the period. The Fund's Latin American
holdings also aided its return, buoyed by the region's improving macroeconomic
backdrop.
We made no material changes to the Fund in terms of basic strategy. We
remained well-diversified by country, and maintained an emphasis on high-quality
debt (the Fund's average credit rating was AA at the end of the period).
However, we maintained a meaningful weighting in high-yield debt (about 10% of
the Fund as of October 31), including U.S. and European high-yield corporate
bonds as well as emerging-market government debt.
In terms of regional emphasis, we remained biased in favor of the U.S., where
we maintained a focus on corporate bonds. Recent underperformance
notwithstanding, U.S. corporate bonds--including high-yield debt--have good
longer-term prospects in our view. Barring an unforeseen recession, we believe
that these bonds will benefit as credit spreads (the yield differentials between
high-quality and lower-quality securities) begin to narrow from historically
wide levels. Our U.S. exposure also included significant weightings in
Treasuries and mortgage-backed securities.
9
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
We maintained a relatively small position in Europe, where we generally saw a
less-hospitable interest-rate environment compared to the rate outlook in the
U.S. That said, we continued to deem certain bonds to be attractive, including
government issues (e.g., sovereign Danish and German bonds) as well as corporate
securities, such as a euro-denominated telecommunications bond. Elsewhere in
developed markets, we maintained noteworthy weightings in Japan and Canada.
Our emerging-market exposure was largely via Latin America, based on our
generally favorable outlook on the region's inflation and interest-rate picture.
We also maintained exposure to South Africa and emerging Europe, where we had
small positions in Turkish and Bulgarian sovereign debt at the end of the
period.
Looking ahead, we foresee a generally favorable backdrop for global bond
markets, notwithstanding the potential for volatility in certain areas, such as
the high-yield and emerging-market segments. We believe that interest rates and
credit spreads in many markets are potentially near cyclical peaks. In addition,
we see interesting investment opportunities developing with respect to foreign
currencies. The dollar may be near a peak itself, vs. other major currencies,
given the potential for more-moderate growth in the U.S. and other factors, such
as pending tax reform in Europe (such reform in our view will increase demand
for the euro). Set within this environment, we will continue to focus on bonds
and currencies we deem to have the best 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.
10
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
ANNUAL INVESTMENT ADVISER'S REPORT -- OCTOBER 31, 2000 (CONT'D)
--------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTED IN COMMON CLASS SHARES OF WARBURG PINCUS
GLOBAL FIXED INCOME FUND SINCE INCEPTION AS OF OCTOBER 31, 2000
The graph below illustrates the hypothetical investment of $10,000 in Common
Class shares of Warburg Pincus Global Fixed Income Fund (the "Fund") from
November 1, 1990 (inception) to October 31, 2000, compared to the Salomon
Brothers World Government Bond Index (Currency-Hedged) ("Salomon"),1 the Lehman
Brothers Aggregate Bond Index ("Lehman"),2 and a Composite Benchmark
("Composite")3 for the same time period. Past performance does not predict
future results.[GRAPHICS OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
Average Total Returns for years ended 10/31/00
1 year 3 year 5 year Since Inception(11/01/90)
4.37% 3.55% 5.51% 6.98%
Fund Salomon Lehman Composite
11/1/90 $10,000.00 $10,000.00 $10,000.00 $10,000.00
11/1/90 10,040.00 10,188.00 10,215.30 10,180.80
12/1/90 10,092.40 10,318.40 10,374.50 10,318.10
1/1/91 10,415.00 10,471.90 10,374.50 10,419.00
2/1/91 10,394.90 10,571.00 10,502.70 10,671.90
3/1/91 9,840.34 10,602.40 10,592.40 10,799.30
4/1/91 9,931.08 10,690.70 10,665.20 10,911.00
5/1/91 9,890.75 10,740.50 10,843.80 11,030.60
6/1/91 9,647.67 10,707.50 10,838.40 11,045.40
7/1/91 9,906.46 10,823.60 10,988.70 11,201.40
8/1/91 10,134.20 11,013.40 11,226.50 11,411.90
9/1/91 10,631.10 11,223.30 11,453.90 11,616.40
10/1/91 10,765.60 11,307.50 11,581.40 11,769.50
11/1/91 10,910.60 11,384.60 11,687.60 11,855.40
12/1/91 11,579.40 11,680.50 12,034.70 12,125.20
1/1/92 11,429.80 11,640.90 11,871.20 12,140.00
2/1/92 11,312.30 11,683.60 11,948.30 12,239.70
3/1/92 11,109.40 11,614.30 11,881.10 12,206.20
4/1/92 11,162.80 11,674.20 11,966.90 12,273.30
5/1/92 11,568.70 11,836.70 12,192.70 12,463.10
6/1/92 11,812.50 11,946.50 12,360.50 12,587.60
7/1/92 11,868.40 12,132.60 12,612.60 12,784.20
8/1/92 12,126.00 12,213.30 12,740.40 12,887.00
9/1/92 12,237.90 12,400.60 12,891.60 13,057.90
10/1/92 11,958.00 12,449.20 12,720.50 13,025.20
11/1/92 11,767.70 12,441.70 12,723.50 13,057.80
12/1/92 11,822.90 12,599.40 12,925.80 13,229.80
1/1/93 12,104.90 12,796.80 13,173.70 13,453.10
2/1/93 12,375.20 13,037.00 13,404.30 13,693.20
3/1/93 12,821.80 13,031.30 13,460.20 13,743.60
4/1/93 12,998.10 13,075.20 13,553.90 13,802.80
5/1/93 13,162.60 13,103.10 13,571.10 13,862.20
6/1/93 13,189.50 13,367.00 13,817.00 14,117.10
7/1/93 13,285.90 13,487.40 13,895.20 14,232.70
8/1/93 13,695.40 13,766.00 14,138.80 14,474.80
9/1/93 13,809.80 13,846.70 14,177.70 14,539.10
10/1/93 13,956.90 13,968.30 14,230.70 14,674.50
11/1/93 13,871.10 13,977.80 14,109.80 14,666.50
12/1/93 14,142.00 14,161.60 14,186.20 14,825.70
1/1/94 14,256.40 14,171.70 14,377.80 14,934.30
2/1/94 14,027.70 13,887.20 14,128.20 14,686.30
3/1/94 13,680.00 13,710.70 13,780.00 14,402.70
4/1/94 13,565.10 13,623.70 13,670.10 14,290.10
5/1/94 13,424.60 13,553.80 13,668.30 14,245.60
6/1/94 13,361.60 13,451.30 13,638.20 14,185.40
7/1/94 13,489.70 13,594.80 13,909.10 14,374.00
8/1/94 13,476.90 13,516.70 13,926.30 14,351.30
9/1/94 13,450.30 13,471.80 13,721.50 14,260.50
10/1/94 13,567.10 13,496.70 13,709.40 14,276.30
11/1/94 13,645.00 13,597.50 13,679.10 14,307.80
12/1/94 13,367.40 13,634.20 13,773.60 14,382.00
1/1/95 13,328.00 13,822.20 14,046.20 14,607.20
2/1/95 13,433.20 14,038.20 14,380.20 14,915.60
3/1/95 13,367.40 14,267.10 14,468.50 15,107.20
4/1/95 13,686.30 14,480.00 14,670.70 15,356.20
5/1/95 14,111.50 14,985.20 15,238.40 15,895.60
6/1/95 14,191.20 15,008.30 15,350.10 15,961.80
7/1/95 14,553.40 15,109.70 15,316.00 16,041.70
8/1/95 14,741.20 15,237.20 15,500.90 16,190.90
9/1/95 14,861.90 15,447.80 15,651.70 16,391.50
10/1/95 15,011.50 15,636.40 15,855.20 16,577.20
11/1/95 15,269.80 15,932.90 16,092.70 16,845.00
12/1/95 15,507.90 16,096.50 16,318.50 17,054.50
1/1/96 15,721.30 16,250.10 16,426.80 17,220.50
2/1/96 15,465.20 16,019.50 16,141.50 17,011.90
3/1/96 15,436.80 16,073.50 16,120.50 17,048.50
4/1/96 15,711.60 16,135.70 15,939.50 17,014.90
5/1/96 15,812.10 16,215.70 15,907.30 17,060.30
6/1/96 15,913.30 16,371.70 16,120.90 17,236.20
7/1/96 16,032.00 16,456.50 16,165.10 17,315.30
8/1/96 16,195.10 16,599.40 16,138.10 17,417.20
9/1/96 16,506.60 16,914.30 16,419.40 17,753.10
10/1/96 16,716.20 17,225.00 16,783.10 18,074.30
11/1/96 17,000.50 17,535.20 17,070.60 18,401.40
12/1/96 17,054.90 17,495.60 16,912.00 18,350.10
1/1/97 17,132.40 17,647.40 16,963.70 18,476.50
2/1/97 17,302.80 17,724.60 17,006.00 18,583.30
3/1/97 17,209.80 17,621.60 16,817.70 18,418.30
4/1/97 17,304.00 17,815.40 17,069.50 18,653.50
5/1/97 17,429.70 17,923.40 17,230.80 18,830.30
6/1/97 17,618.10 18,189.70 17,435.30 19,096.20
7/1/97 17,793.20 18,549.20 17,905.60 19,531.10
8/1/97 17,729.10 18,509.10 17,753.00 19,459.00
9/1/97 17,888.70 18,808.60 18,014.80 19,768.20
10/1/97 17,677.60 19,005.50 18,276.20 19,974.80
11/1/97 17,628.10 19,125.80 18,360.30 20,097.20
12/1/97 17,423.60 19,348.20 18,545.20 20,311.60
1/1/98 17,390.50 19,606.70 18,783.30 20,578.30
2/1/98 17,574.80 19,699.30 18,769.40 20,647.50
3/1/98 17,592.40 19,836.80 18,834.00 20,776.90
4/1/98 17,747.20 19,935.20 18,932.30 20,884.60
5/1/98 17,816.40 20,186.50 19,112.20 21,102.00
6/1/98 17,816.40 20,317.60 19,274.00 21,236.40
7/1/98 17,919.80 20,449.20 19,315.10 21,346.00
8/1/98 18,005.80 20,894.60 19,629.30 21,502.00
9/1/98 18,437.90 21,409.80 20,089.10 21,935.70
10/1/98 18,402.90 21,379.00 19,982.80 21,803.20
11/1/98 18,748.90 21,520.10 20,096.30 22,106.50
12/1/98 18,891.30 21,480.90 20,156.80 22,107.40
1/1/99 19,016.00 21,708.00 20,300.70 22,327.80
2/1/99 18,730.80 21,435.10 19,946.30 22,054.10
3/1/99 18,944.30 21,658.10 20,056.80 22,254.50
4/1/99 19,213.30 21,865.60 20,120.30 22,450.10
5/1/99 18,856.00 21,768.50 19,944.10 22,300.80
6/1/99 18,676.80 21,503.30 19,880.50 22,129.80
7/1/99 18,568.50 21,473.20 19,795.00 22,074.50
8/1/99 18,549.90 21,505.40 19,784.90 22,048.00
9/1/99 18,729.90 21,619.40 20,014.40 22,197.90
10/1/99 18,802.90 21,662.70 20,088.40 22,237.90
11/1/99 18,876.20 21,742.80 20,087.00 22,326.80
12/1/99 18,965.00 21,761.30 19,990.20 22,320.80
1/1/00 18,813.20 21,790.40 19,924.80 22,278.40
2/1/00 19,040.90 21,987.90 20,165.70 22,485.80
3/1/00 19,212.30 22,329.30 20,431.30 22,681.40
4/1/00 19,018.20 22,392.10 20,372.90 22,688.20
5/1/00 18,999.20 22,531.40 20,363.50 22,704.10
6/1/00 19,348.80 22,717.00 20,787.10 23,046.90
7/1/00 19,348.80 22,901.20 20,975.80 23,229.70
8/1/00 19,488.10 22,998.10 21,279.80 23,434.10
9/1/00 19,587.50 23,146.90 21,413.60 23,547.80
10/1/00 19,628.60 23,342.70 21,555.40 23,722.70
FUND
-----
1 Year Total Return (9/30/99 to 9/30/00) ............................... 4.57%
3 Year Average Annual Total Return (9/30/97 to 9/30/00) ................ 3.07%
5 Year Average Annual Total Return (9/30/95 to 9/30/00) ................ 5.68%
Average Annual Total Return Since Inception (11/01/90 to 9/30/00) ...... 7.01%
----------
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
Bond Index, 35% Salomon Brothers World Government Bond Index Excluding the
U.S. (Currency-Hedged), and 15% Merrill Lynch High Yield Master II Index --
correspond to the investment strategy of the fund's manager. 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.
11
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
<S> <C> <C> <C> <C>
AGENCY OBLIGATIONS (0.9%)
$177,336 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10B Class 1 (Aaa, AAA) 04/01/02 7.450 $ 177,723
263,728 Small Business Administration Guaranteed
Development Participation Certificate
Series 1992-10C Class 1 (Aaa, AAA) 07/01/02 6.600 262,420
-----------
TOTAL AGENCY OBLIGATIONS (Cost $441,064) 440,143
-----------
MORTGAGE-BACKED SECURITIES (66.2%)
2,779,356 Fannie Mae (Aaa, AAA) 12/01/05 6.625 2,756,036
1,937,140 Fannie Mae (Aaa, AAA) 08/01/07 6.750 1,926,264
621,067 Fannie Mae (Aaa, AAA) 05/01/29 7.500 620,486
606,842 Fannie Mae (Aaa, AAA) 07/01/29 7.000 595,275
25,003 Fannie Mae (Aaa, AAA) 07/01/29 7.500 24,980
514,912 Fannie Mae (Aaa, AAA) 09/01/29 7.500 514,429
oooo
64,376 Fannie Mae (Aaa, AAA) 10/01/29 7.500 64,316
24,404 Fannie Mae (Aaa, AAA) 11/01/29 7.000 23,939
28,210 Fannie Mae (Aaa, AAA) 12/01/29 7.000 27,673
709,920 Fannie Mae (Aaa, AAA) 01/01/30 8.000 719,016
925,576 Fannie Mae (Aaa, AAA) 02/01/30 7.000 907,933
26,392 Fannie Mae (Aaa, AAA) 02/01/30 7.000 25,889
409,260 Fannie Mae (Aaa, AAA) 03/01/30 7.500 408,877
431,679 Fannie Mae (Aaa, AAA) 03/01/30 7.500 431,275
530,404 Fannie Mae (Aaa, AAA) 03/01/30 7.500 529,907
523,568 Fannie Mae (Aaa, AAA) 03/01/30 7.500 523,078
380,765 Fannie Mae (Aaa, AAA) 03/01/30 8.000 385,644
432,113 Fannie Mae (Aaa, AAA) 03/01/30 8.000 437,650
105,239 Fannie Mae (Aaa, AAA) 03/01/30 8.000 106,588
2,000,000 Fannie Mae 1997-51 Class KB (Aaa, AAA) 03/20/08 7.000 1,977,680
2,000,000 Fannie Mae Series 1993-196 Class J (Aaa, AAA) 10/25/08 5.500 1,906,170
2,450,000 Fannie Mae Series 1993-50 (Aaa, AAA) 09/25/20 5.000 2,335,254
2,456,740 Fannie Mae Series 1998-15 Class PA (Aaa, AAA) 12/18/19 6.000 2,419,631
2,000,000 Fannie Mae Series 1998-15 Class PI (Aaa, AAA) 02/18/21 5.750 1,916,600
2,400,000 Fannie Mae Series 1998-M4 Class B (Aaa, AAA) 12/25/23 6.424 2,337,882
690,000 Fannie Mae Series MTN
(Callable 12/10/2002@$100.00) (Aaa, AAA) 12/10/07 6.560 674,886
2,250,000 Federal Home Loan Bank (Aaa, AAA) 03/06/03 5.720 2,216,311
1,000,000 Federal Home Loan Bank (Aaa, AAA) 09/02/03 5.575 978,232
1,495,000 Freddie Mac (Aaa, AAA) 07/15/03 5.750 1,470,383
2,000,000 Freddie Mac Series 1490 Class CA (Aaa, AAA) 04/15/08 6.500 1,976,920
512,372 Morgan Stanley Mortgage Trust
Series 40 Class 8 (Aaa, AAA) 07/20/21 7.000 506,596
-----------
TOTAL MORTGAGE-BACKED SECURITIES (Cost $32,173,570) 31,745,800
-----------
See Accompanying Notes to Financial Statements.
12
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000 RATINGS1
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
UNITED STATES TREASURY OBLIGATIONS (26.5%)
$4,105,000 U.S. Treasury Notes (Aaa, AAA) 02/15/10 6.500 $ 4,298,391
8,100,000 U.S. Treasury Notes (Aaa, AAA) 05/15/05 6.750 8,399,959
-----------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $12,644,457) 12,698,350
-----------
NUMBER
OF
SHARES
SHORT TERM INVESTMENTS (5.4%)
274,454 Institutional Money Market Trust 274,454
2,319,193 RBB Money Market Trust 2,319,193
-----------
TOTAL SHORT TERM INVESTMENTS (Cost $2,593,647) 2,593,647
-----------
TOTAL INVESTMENTS AT VALUE (99.0%) (Cost $47,852,738 2) 47,477,940
OTHER ASSETS IN EXCESS IF LIABILITIES (1.0%) 496,347
-----------
NET ASSETS (100.0%) $47,974,287
===========
NET ASSET VALUE, offering and redemption price per Common
Class share ($47,974,287 / 4,893,675 shares) $9.80
=====
--------------------------------------------------------------------------------
<FN>
1 Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
2 Also cost for federal income tax purposes.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
<S> <C> <C> <C> <C>
MUNICIPAL BONDS (97.6%)
NEW YORK (87.9%)
$500,000 Long Island Power Authority NY, Electric Systems
Revenue Bond, Series A (AMBAC Insured) (Aaa, AAA) 12/01/07 6.000 $ 540,920
1,300,000 Long Island Power Authority NY, Electric Systems
Revenue Bond, Series A (AMBAC Insured) (Aaa, AAA) 12/01/09 5.500 1,370,187
1,000,000 Long Island Power Authority NY, Electric Systems
Revenue Bond (MBIA Insured) (Aaa, AAA) 04/01/04 5.000 1,016,240
1,000,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bond, Series A (Baa1, A) 07/01/07 5.250 1,026,480
1,750,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bond, Series D (MBIA Insured) (Aaa, AAA) 07/01/05 6.000 1,862,175
2,000,000 Metropolitan Transportation Authority, Commuter
Facilities Revenue Bond, Series C (FGIC Insured) (Aaa, AAA) 07/01/05 6.000 2,128,200
1,000,000 Municipal Assistance Corp. for New York City
Revenue Bond, Series H (Non-Callable) (Aa1, AA) 07/01/07 6.250 1,094,270
2,000,000 Municipal Assistance Corp. for New York City
Revenue Bond, Series L (Aa1, AA) 07/01/04 6.000 2,104,220
1,350,000 Nassau County New York, General Improvements
General Obligation Bond, Series R (FGIC Insured) (Aaa, AAA) 11/01/02 5.125 1,367,455
3,000,000 New York City General Obligation Bond,
Series A (A2, A) 08/01/06 7.000 3,340,350
1,000,000 New York City General Obligation Bond,
Series D (A2, A) 08/01/07 5.750 1,058,230
60,000 New York City General Obligation Bond,
Series L (A3, A-) 08/01/02 5.500 61,133
1,000,000 New York City General Obligation Bond, Series B
(MBIA Insured) (Aaa, AAA) 08/01/09 4.900 1,010,560
1,550,000 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 1,660,484
1,160,000 New York City Transitional Finance Authority Revenue
Bond, Series A (Callable 02/15/10 @$101.00) (Aa2, AA+) 02/15/12 5.500 1,211,492
2,000,000 New York City Transitional Finance Authority Revenue
Bond, Series A (Callable 08/15/09 @ $101.00) (Aa2, AA) 08/15/18 5.750 2,063,080
1,000,000 New York State Dormitory Authority, City University
Systems Revenue Bond
(Callable 07/01/08 @ $102.00) (FGIC Insured) (Aaa, AAA) 07/01/12 5.250 1,021,210
1,000,000 New York State Dormitory Authority, State University
Educational Facilities Revenue Bond, Series A
(MBIA Insured) (Aaa, AAA) 05/15/15 5.250 1,015,240
3,000,000 New York State Dormitory Authority, Consolidated
City University Systems Revenue Bond, Series A (Baa1, A-) 07/01/05 5.700 3,131,700
See Accompanying Notes to Financial Statements.
14
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
MUNICIPAL BONDS (CONT'D)
$2,000,000 New York State Dormitory Authority, State University
Educational Facilities Revenue Bond (A2, A) 05/15/07 6.00 $ 2,138,980
1,000,000 New York State Dormitory Authority, Sloan Kettering
Memorial Cancer Center Revenue Bond
(MBIA Insured) (Aaa, AAA) 07/01/19 5.750 1,043,150
1,000,000 New York State Dormitory Authority, State University
Education Facilities Revenue Bond, Series A (A3, A) 05/15/02 5.400 1,013,770
2,495,000 New York State Dormitory Authority, State University
Facilities Revenue Bond, Series A (AMBAC Insured) (Aaa, AAA) 07/01/06 5.750 2,646,621
1,000,000 New York State Dormitory Authority, Upstate
Community Colleges Revenue Bond, Series A (Baa1, BBB+) 07/01/02 5.300 1,012,760
200,000 New York State General Obligation Bond, Series C (A2, A+) 10/01/03 6.000 208,534
1,000,000 New York State General Obligation Bond, Series F (A2, A+) 09/15/06 5.000 1,022,890
1,255,000 New York State General Obligation Bond, Series F
(Callable 09/15/08 @ $101.00) (A2, A+) 09/15/11 5.250 1,285,999
1,000,000 New York State Housing Financial Agency Revenue
Bond, Series A
(Pre-Refunded 09/15/05 @ $102.00) (Aaa, A-) 09/15/05 6.500 1,103,970
1,000,000 New York State Local Government Assistance Corp.
Revenue Bond, Series A (A3, AA-) 04/01/05 5.400 1,036,010
600,000 New York State Local Government Assistance Corp.
Revenue Bond, Series A (A3, AA-) 04/01/06 6.000 640,692
1,125,000 New York State Local Government Assistance Corp.
Revenue Bond, Series A (AMBAC Insured) (Aaa, AAA) 04/01/06 6.000 1,203,525
1,000,000 New York State Local Government Assistance Corp.
Revenue Bond, Series A (A3, AA-) 04/01/07 6.000 1,075,200
1,025,000 New York State Mortgage Agency, Homeowner
Mortgage Revenue Bond
(Callable 11/23/09 @ $101.00) (Aa2, NR) 10/01/15 5.900 1,068,081
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 2,005,620
1,375,000 New York State Thruway Authority Service Contract,
Local Highway & Bridge Revenue Bond
(AMBAC Insured) (Baa1, AAA) 04/01/09 5.500 1,448,686
2,000,000 New York State Thruway Authority Service Contract,
Local Highway & Bridge Revenue Bond
(Callable 04/01/09 @ $101.00)(MBIA Insured) (Aaa, AAA) 04/01/14 5.750 2,108,020
3,000,000 New York State Thruway Authority Service Contract,
Local Highway & Bridges Revenue Bond,
Series A (MBIA Insured) (Aaa, AAA) 01/01/04 6.000 3,137,310
1,000,000 New York State Urban Development Corp.,
Correctional Facilities Service Contract Revenue
Bond, Series C (Callable 01/01/09 @ $101.00)
(AMBAC Insured) (Aaa, AAA) 01/01/13 6.000 1,075,730
See Accompanying Notes to Financial Statements.
15
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
MUNICIPAL BONDS (CONT'D)
$1,000,000 New York State Urban Development Corp.,
Correctional Capital Revenue Bond, Series A
(AMBAC Insured) (Aaa, AAA) 01/01/06 5.400 $ 1,040,040
1,215,000 Orange County New York General Obligation Bond
(Callable 07/15/08 @ $101.00 ) (Aa1, NR) 07/15/20 5.000 1,135,442
3,000,000 Port Authority of New York & New Jersey Revenue
Bond, Series MSF (Callable 10/01/02 @ $101.00) (A1, AA-) 10/01/27 7.350 3,157,470
1,000,000 Rockland County New York General Obligation Bond
(Callable 10/15/09 @ $101.00) (Aa3, AA) 10/15/14 5.500 1,029,310
2,000,000 Suffolk County New York Tax Anticipation Notes (MIG1, SP-1+) 09/10/01 4.750 2,007,120
1,000,000 Triborough Bridge & Tunnel Authority General
Purpose Revenue Bond, Series A (Aa3, A+) 01/01/07 5.500 1,048,290
1,000,000 Triborough Bridge & Tunnel Authority General
Purpose Revenue Bond, Series Y (Aa3, A+) 01/01/06 5.800 1,057,800
1,050,000 Westchester County New York General Obligation
Bond (Callable 11/01/09 @ $101.00) (Aaa, AAA) 11/01/18 5.250 1,027,289
-----------
TOTAL NEW YORK (Cost $64,745,094) 65,861,935
-----------
PUERTO RICO (9.7%)
1,000,000 Puerto Rico Commonwealth Aqueduct & Sewer
Authority Revenue Bond (MBIA Insured) (Aaa, AAA) 07/01/07 6.000 1,097,490
1,000,000 Puerto Rico Commonwealth General Obligation
Bond (MBIA Insured) (Aaa, AAA) 07/01/01 5.500 1,010,940
1,000,000 Puerto Rico Commonwealth Highway &
Transportation Authority Revenue Bond, Series X
(MBIA Insured) (Aaa, AAA) 07/01/15 5.500 1,060,010
2,000,000 Puerto Rico Commonwealth Infrastructure
Financing Revenue Bond, Series A (Callable
01/01/2008 @ $101.00)(AMBAC Insured) (Aaa, AAA) 07/01/11 5.000 2,048,620
1,000,000 Puerto Rico Electric Power Authority Revenue Bond,
Series EE (Callable 07/01/08 @ $101.50)
(MBIA Insured) (Aaa, AAA) 07/01/16 5.250 1,005,200
1,000,000 Puerto Rico Electric Power Authority Revenue Bond,
Series FF (Callable 07/01/09 @ $101.50)
(MBIA Insured) (Aaa, AAA) 07/01/10 5.250 1,055,770
-----------
TOTAL PUERTO RICO (Cost $7,102,730) 7,278,030
-----------
TOTAL MUNICIPAL BONDS (Cost $71,847,824) 73,139,965
-----------
See Accompanying Notes to Financial Statements.
16
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
VALUE
-----
TOTAL INVESTMENTS AT VALUE (97.6%) (Cost $71,847,824 2) $73,139,965
OTHER ASSETS IN EXCESS OF LIABILITIES (2.4%) 1,807,766
-----------
NET ASSETS (100.0%) $74,947,731
===========
NET ASSET VALUE, offering and redemption price per Common
Class share ($74,947,731 / 7,316,439 shares) $10.24
======
INVESTMENT ABBREVIATIONS
AMBAC = American Municipal Bond Assurance Corporation
MBIA = Municipal Bond Investors Assurance, Inc.
NR = Not Rated
--------------------------------------------------------------------------------
<FN>
1 Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
2 Also cost for federal income tax purposes.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
<S> <C> <C> <C> <C>
CORPORATE/FOREIGN BONDS (39.0%)
$2,765,000 Abitibi-Consolidated, Inc. (Baa3, BBB-) 08/01/05 8.300 $ 2,787,261
2,000,000 ABN-AMRO Bank NV New York Branch Subordinate
Deposit Notes (Callable 08/01/04 @ $100.00) (Aa2, AA-) 08/01/09 8.250 2,060,148
1,700,000 Adelphia Communications Corp. (B2, B+) 11/15/09 9.375 1,462,000
40,000 AFC Enterprises, Inc. (Callable 05/15/02 @ $105.12) (B2, B) 05/15/07 10.250 38,400
1,900,000 Allied Waste North America, Inc., Series B
(Callable 08/01/04 @ $105.00) (B2, B+) 08/01/09 10.000 1,634,000
800,000 Amerada Hess Corp. (Baa1, BBB+) 10/01/29 7.875 804,000
950,000 American General Corp. (A2, AA-) 08/11/10 7.500 950,778
1,500,000 Anadarko Petroleum Corp. (Baa1, BBB+) 10/15/26 7.500 1,428,342
415,000 Argosy Gaming Co. (B2, B) 06/01/09 10.750 435,750
500,000 Associates Corp. NA (A1, A+) 11/01/18 6.950 462,748
920,000 AT&T Corp. (A2, A) 03/15/29 6.500 724,522
4,450,000 Bank of America Corp. (Aa3, A) 02/15/10 7.800 4,526,998
105,000 Brand Scaffold Services, Inc. (B3, B-) 02/15/08 10.250 95,025
700,000 British Sky Broadcasting Group PLC (Ba1, BB+) 10/15/06 7.300 634,602
750,000 Centurytel, Inc. (Baa2, BBB+) 10/15/10 8.375 751,093
900,000 Chase Manhattan Corp. (A1, A) 06/15/10 7.875 917,694
950,000 Cilcorp, Inc. (Baa2, BB+) 10/15/29 9.375 1,018,403
1,050,000 Citicorp Subordinate Notes, Series F (A1, A+) 11/15/08 6.375 987,825
3,100,000 Citigroup, Inc. (Aa3, A+) 10/01/10 7.250 3,080,656
4,580,000 Conseco, Inc. (B1, BB-) 10/15/06 9.000 2,885,400
1,750,000 Countrywide Home Loan Co. (A3, A) 04/15/09 6.250 1,575,950
550,000 Cox Communications, Inc. (Baa2, BBB) 08/15/09 7.875 554,982
585,000 CSC Holdings, Inc. (Ba1, BB+) 07/15/08 7.250 543,750
70,000 CSC Holdings, Inc. (Ba1, BB+) 07/15/09 8.125 68,238
700,000 CSX Corp. (Baa2, BBB) 05/01/27 7.950 677,893
65,000 Dayton Superior Corp. (B3, B-) 06/15/09 13.000 61,913
3,660,000 Dime Bancorp, Inc. (Ba1, BBB-) 07/25/01 7.000 3,646,722
1,550,000 Duke Energy Field Services (Baa2, BBB) 08/16/05 7.500 1,565,522
800,000 Enron Corp. (Baa1, BBB+ 06/15/03 7.875 815,494
1,600,000 Finova Capital Corp. (B3, BB) 09/21/09 7.625 912,048
1,650,000 Ford Motor Credit Co. (A2, A) 07/16/31 7.450 1,525,159
2,260,000 Ford Motor Credit Co. (A2, A) 06/15/10 7.875 2,282,803
1,600,000 GE Global Insurance Holding Corp. (AA1, AA) 06/15/10 7.500 1,616,861
1,725,000 General Motors Corp. (A2, A) 05/01/28 6.750 1,503,353
1,675,000 Global Crossing Holdings, Ltd. (Ba2, BB) 11/15/09 9.500 1,608,000
3,115,000 Golden State Escrow Corp.
(Callable @ Make Whole) (Ba1, BB+) 08/01/03 7.000 2,984,843
300,000 Goldman Sachs Group, Inc. (A1, A+) 01/28/10 7.800 303,403
35,000 Gothic Production Corp., Series B (3, CCC) 05/01/05 11.125 36,925
480,000 Government of Bulgaria Series A Collateralized (B2, NR) 07/28/24 7.750 360,600
110,000 HCA - The Healthcare Company (Ba2, BB+) 09/01/10 8.750 111,170
2,980,000 HMH Properties, Inc.2 (Ba3, NR) 05/15/05 9.500 2,920,400
35,000 Hollinger International Publishing, Inc. (Ba2, BB) 03/15/05 8.625 35,175
See Accompanying Notes to Financial Statements.
18
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
CORPORATE/FOREIGN BONDS (CONT'D)
$2,940,000 John Hancock Global Funding II (Aa2, AA+) 07/02/10 7.900 $ 3,014,864
1,205,000 K-Mart Corp. (Baa3, BB+) 12/01/04 8.375 1,044,055
850,000 Koninklijke Kpn NV, Series 144A (A3, A-) 10/01/30 8.375 834,275
1,500,000 Kroger Co. (A1, A+) 12/15/18 6.800 1,292,080
2,250,000 Lehman Brothers Holdings, Inc. (A2, A) 06/15/07 8.250 2,299,527
3,000,000 Level 3 Communications, Inc. Senior Notes (B3, B) 05/01/08 9.125 2,437,500
2,230,000 Lockheed Martin Corp. (Baa3, BBB-) 12/01/05 7.950 2,293,807
2,300,000 Lockheed Martin Corp. (Baa3, BBB-) 12/01/29 8.500 2,467,999
750,000 Long Island Savings Bank, Inc. (Baa3, BBB) 06/13/02 7.000 749,067
1,370,000 Magnum Hunter Resources, Inc. (B2, B) 06/01/07 10.000 1,349,450
780,000 MGM Grand, Inc. (Ba2, BB+) 06/01/07 9.750 813,150
1,100,000 MGM Mirage, Inc. (Callable at Make Whole +25BP) (Baa3, BBB-) 09/15/10 8.500 1,081,525
2,200,000 Morgan Stanley Dean Witter & Co. (Aa3, AA-) 06/15/05 7.750 2,247,755
40,000 Nextlink Communications, Inc. (B2, B) 11/15/08 10.750 35,200
415,000 Nextlink Communications, Inc. (B2, B) 06/01/09 10.750 366,237
1,000,000 Nextlink Communications, Inc. (B2, B) 12/01/09 10.500 870,000
1,610,000 Nextlink Communications, Inc. (B2, B) 12/01/09 12.125 784,875
700,000 Norfolk Southern Corp. (Baa1, BBB) 05/15/27 7.800 681,953
1,400,000 NTL Communications Corp. Class B2 (B2, B) 10/01/08 11.500 1,288,000
65,000 Nuevo Energy Co., Series 144A (B1, B+) 10/01/10 9.375 65,000
80,000 Owens-Illinois, Inc. (Ba1, BB) 05/15/08 7.350 54,800
800,000 Pacific Gas & Electric Co. (A2, A) 11/01/05 7.375 799,233
1,015,000 Park Place Entertainment Corp. (Ba2, BB+) 12/15/05 7.875 979,475
25,000 Parker Drilling Co., Series D (B1, B+) 11/15/06 9.750 24,625
550,000 Petroleum Geo-Services (Baa3, BBB) 07/15/29 8.150 535,876
500,000 Phillips Petroleum Co. (Baa2, BBB) 05/25/05 8.500 527,974
700,000 Phillips Petroleum Co. (Baa2, BBB) 05/25/10 8.750 765,924
2,000,000 Potomac Electric Power Co.
(Callable 05/15/02 @ $103.21) (A1, A) 05/15/27 8.500 2,039,762
70,000 PSINet, Inc. (B3, B-) 02/15/05 10.000 33,775
800,000 Raytheon Co. (Baa2, BBB-) 08/15/27 7.200 734,954
1,605,600 Republic of Argentina Debentures (B1, BB-) 03/31/05 7.625 1,406,907
660,000 Republic of Argentina Global Notes (B1, BB-) 12/04/05 11.000 594,000
870,000 Republic of Argentina (B1, BB-) 03/31/23 6.000 572,569
750,000 Republic of Brazil, Series 30Yr (B1, B+) 04/15/01 7.375 576,094
1,970,256 Republic of Brazil (B1, B+) 04/15/14 8.000 1,467,841
1,550,000 Republic of Bulgaria, FLIRB, Series A (B2, B+) 07/28/12 2.750 1,101,469
1,450,000 Republic of Poland Collateralized Par Bonds (Baa1, BBB+) 10/27/24 3.500 913,500
420,000 Republic of Poland (Baa1, BBB+) 04/27/01 4.000 286,913
3,400,000 Riggs Capital Trust II Preferred Securities, Series C
(Callable 03/15/07 @ $104.44) (Ba2, B+)44) 03/15/27 8.875 2,505,984
3,980,000 Russian Federation (B3, B-) 03/31/30 2.500 1,492,500
45,000 Ryland Group (Ba2, BB) 09/01/10 9.750 43,425
2,365,000 Safeway, Inc. (Callable @ Make Whole + 12.5BP) (Baa2, BBB) 09/15/04 7.250 2,355,838
2,775,000 Saks, Inc. (Baa3, BB+) 07/15/04 7.000 1,873,125
See Accompanying Notes to Financial Statements.
19
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
CORPORATE/FOREIGN BONDS (CONT'D)
$ 30,000 Salem Communications Corp., Series B (B3, B-) 10/01/07 9.500 $ 28,800
85,000 Scotts Co. (B2, B+) 01/15/09 8.625 81,175
1,750,000 Sprint Capital Corp. (Baa1, BBB+) 11/15/28 6.875 1,444,581
300,000 Target Corp. (A2, A) 08/15/10 7.500 298,804
1,950,000 Telefonica Europe (A2, A+) 09/15/05 7.350 1,957,827
1,850,000 Telefonica Europe (A2, A+) 09/15/10 7.750 1,861,685
900,000 Telefonica Europe (A2, A+) 09/15/30 8.250 927,444
3,195,000 Time Warner, Inc. (Baa3, BBB) 05/15/29 6.625 2,757,295
900,000 Tyco International Group SA (Baa1, A-) 01/15/29 6.875 789,524
1,650,000 U.S. West Capital Funding, Inc. (Baa1, BBB+) 08/15/01 6.875 1,649,050
550,000 Viacom, Inc. (Baa1, BBB+) 07/30/10 7.700 561,255
700,000 Viacom, Inc. (Baa1, BBB+) 07/30/30 7.875 707,524
750,000 Visteon Corp. (Baa2, BBB) 08/01/10 8.250 743,406
700,000 Voicestream Wireless Corp.
(Callable 11/15/04 @ $105.19), Series 144A (B2, B-) 11/15/09 10.375 752,500
1,250,000 Voicestream Wireless Corp. (B2, B-) 11/15/09 909,375
2,075,000 Wal Mart Stores, Inc. (Aa2, AA) 02/15/30 7.550 2,160,212
700,000 Worldcom, Inc. (A3, A-) 08/15/28 6.950 618,156
1,180,000 Worldcom, Inc. (A3, A-) 05/15/06 8.000 1,210,968
------------
TOTAL CORPORATE/FOREIGN BONDS (Cost $123,912,606) $120,559,312
------------
ASSET/MORTGAGE BACKED SECURITIES (55.3%)
4,660,000 California Infrastructure, PG&E-1, Series 1997-1,
Class A7 (Callable 09/25/06 @ $100.00) (Aaa, AAA) 09/25/08 6.420 4,566,427
2,500,000 Commonwealth Edison Co. (Baa1, A-) 02/01/22 8.625 2,546,230
5,650,000 Commonwealth Edison Transitional Funding Trust,
Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.630 5,316,791
171,127 Donaldson, Lufkin, & Jenrette, Inc. Acceptance Trust,
Series 1989-1, Class F (Aaa, AAA) 03/31/00 11.000 185,523
9,800,000 Fannie Mae (Aaa, AAA) 07/01/15 7.000 9,751,000
12,248,000 Fannie Mae (Aaa, AAA) 02/18/21 5.750 11,737,258
4,733,952 Fannie Mae (Aaa, AAA) 03/01/28 8.000 4,794,606
835,504 Fannie Mae (Aaa, AAA) 05/01/29 7.500 834,721
60,867 Fannie Mae (Aaa, AAA) 07/01/29 7.500 60,810
32,461 Fannie Mae (Aaa, AAA) 08/01/29 7.500 32,431
570,026 Fannie Mae (Aaa, AAA) 08/01/29 7.500 569,492
75,791 Fannie Mae (Aaa, AAA) 08/01/29 7.500 75,721
648,928 Fannie Mae (Aaa, AAA) 08/01/29 7.500 648,320
24,308 Fannie Mae (Aaa, AAA) 08/01/29 7.500 24,285
316,774 Fannie Mae (Aaa, AAA) 09/01/29 7.000 310,736
25,907 Fannie Mae (Aaa, AAA) 09/01/29 7.500 25,883
35,805 Fannie Mae (Aaa, AAA) 09/01/29 7.500 35,772
107,484 Fannie Mae (Aaa, AAA) 09/01/29 7.500 107,383
542,182 Fannie Mae (Aaa, AAA) 10/01/29 7.500 541,674
514,742 Fannie Mae (Aaa, AAA) 10/01/29 7.500 514,260
See Accompanying Notes to Financial Statements.
20
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
ASSET/MORTGAGE BACKED SECURITIES (CONT'D)
$ 79,945 Fannie Mae (Aaa, AAA) 10/01/29 7.500 $ 79,871
36,943 Fannie Mae (Aaa, AAA) 10/01/29 7.500 36,909
40,989 Fannie Mae (Aaa, AAA) 10/01/29 7.500 40,951
39,001 Fannie Mae (Aaa, AAA) 10/01/29 7.500 38,965
653,231 Fannie Mae (Aaa, AAA) 10/01/29 7.000 640,779
199,479 Fannie Mae (Aaa, AAA) 10/01/29 8.000 202,036
24,410 Fannie Mae (Aaa, AAA) 10/01/29 7.500 24,387
656,982 Fannie Mae (Aaa, AAA) 11/01/29 7.500 656,367
40,313 Fannie Mae (Aaa, AAA) 11/01/29 7.500 40,276
335,987 Fannie Mae (Aaa, AAA) 11/01/29 7.500 335,673
98,564 Fannie Mae (Aaa, AAA) 11/01/29 7.500 98,472
54,689 Fannie Mae (Aaa, AAA) 12/01/29 7.000 53,647
1,082,021 Fannie Mae (Aaa, AAA) 12/01/29 7.000 1,061,396
45,737 Fannie Mae (Aaa, AAA) 12/01/29 7.500 45,695
382,022 Fannie Mae (Aaa, AAA) 12/01/29 7.500 381,664
144,546 Fannie Mae (Aaa, AAA) 12/01/29 7.000 141,791
560,232 Fannie Mae (Aaa, AAA) 12/01/29 7.000 549,553
571,458 Fannie Mae (Aaa, AAA) 12/01/29 7.500 570,923
190,654 Fannie Mae (Aaa, AAA) 12/01/29 7.500 190,475
848,308 Fannie Mae (Aaa, AAA) 01/01/30 7.000 832,137
51,688 Fannie Mae (Aaa, AAA) 01/01/30 7.000 50,703
584,417 Fannie Mae (Aaa, AAA) 01/01/30 7.500 583,870
40,224 Fannie Mae (Aaa, AAA) 01/01/30 7.000 39,458
649,996 Fannie Mae (Aaa, AAA) 01/01/30 8.000 658,325
78,041 Fannie Mae (Aaa, AAA) 01/01/30 7.500 77,968
7,435,000 Fannie Mae (Aaa, AAA) 01/15/30 7.125 7,757,471
326,291 Fannie Mae (Aaa, AAA) 02/01/30 7.000 320,072
47,147 Fannie Mae (Aaa, AAA) 02/01/30 7.500 47,103
99,836 Fannie Mae (Aaa, AAA) 02/01/30 7.500 99,743
34,484 Fannie Mae (Aaa, AAA) 02/01/30 7.500 34,453
1,227,127 Fannie Mae (Aaa, AAA) 02/01/30 7.000 1,203,735
24,852 Fannie Mae (Aaa, AAA) 02/01/30 7.000 24,379
215,362 Fannie Mae (Aaa, AAA) 02/01/30 8.000 218,122
1,036,972 Fannie Mae (Aaa, AAA) 02/01/30 7.000 1,017,205
685,753 Fannie Mae (Aaa, AAA) 03/01/30 7.500 685,111
919,336 Fannie Mae (Aaa, AAA) 03/01/30 7.000 901,811
686,194 Fannie Mae (Aaa, AAA) 03/01/30 7.500 685,551
1,294,645 Fannie Mae (Aaa, AAA) 03/01/30 8.000 1,311,233
843,284 Fannie Mae (Aaa, AAA) 03/01/30 8.000 854,089
340,293 Fannie Mae (Aaa, AAA) 03/01/30 7.000 333,807
916,395 Fannie Mae (Aaa, AAA) 03/01/30 7.500 915,536
163,912 Fannie Mae (Aaa, AAA) 03/01/30 7.500 163,759
777,387 Fannie Mae (Aaa, AAA) 03/01/30 7.500 776,659
76,769 Fannie Mae (Aaa, AAA) 03/01/30 7.500 76,698
417,464 Fannie Mae (Aaa, AAA) 03/01/30 7.000 409,507
See Accompanying Notes to Financial Statements.
21
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
ASSET/MORTGAGE BACKED SECURITIES (CONT'D)
$ 446,690 Fannie Mae (Aaa, AAA) 03/01/30 7.000 $ 438,176
63,214 Fannie Mae (Aaa, AAA) 03/01/30 7.500 63,155
665,872 Fannie Mae (Aaa, AAA) 03/01/30 7.500 665,248
1,472,134 Fannie Mae (Aaa, AAA) 03/01/30 7.000 1,444,072
634,563 Fannie Mae (Aaa, AAA) 03/01/30 7.000 622,467
69,158 Fannie Mae (Aaa, AAA) 03/01/30 7.500 69,093
172,081 Fannie Mae (Aaa, AAA) 03/01/30 7.500 171,920
490,327 Fannie Mae (Aaa, AAA) 03/01/30 7.000 480,981
723,120 Fannie Mae (Aaa, AAA) 03/01/30 7.000 709,336
271,120 Fannie Mae (Aaa, AAA) 03/01/30 7.000 265,952
825,744 Fannie Mae (Aaa, AAA) 03/01/30 7.500 824,970
993,898 Fannie Mae (Aaa, AAA) 03/01/30 7.500 992,967
563,176 Fannie Mae (Aaa, AAA) 03/01/30 8.000 570,392
915,751 Fannie Mae (Aaa, AAA) 03/01/30 8.000 927,484
565,083 Fannie Mae (Aaa, AAA) 03/01/30 8.000 572,324
9,600,000 Fannie Mae (Aaa, AAA) 06/01/30 7.000 9,411,000
28,800,000 Fannie Mae (Aaa, AAA) 06/01/30 8.000 29,151,000
3,038,000 Fannie Mae, Series 1993-196,
Class J (Aaa, AAA) 10/25/08 5.500 2,895,472
4,920,000 Fannie Mae, Series 1997-51,
Class KB
Guaranteed REMIC TR (Aaa, AAA) 03/20/08 7.000 4,865,093
11,000,000 Fannie Mae, Series 1997-79,
Class KB (Aaa, AAA) 07/18/26 6.000 10,030,350
4,700,000 Fannie Mae, Series 1998-M4,
Class B (Aaa, AAA) 12/25/23 6.424 4,578,352
36,990 Federal Home Loan Mortgage
Corp. PC (Aaa, AAA) 10/08/99 8.750 37,442
14,750,000 Ginnie Mae (Aaa, AAA) 07/01/30 7.500 14,805,312
800,000 Korea Asset Funding, Ltd.,
Series 2000-1A, Class 1 (Baa2, NR) 02/10/09 8.891 794,000
1,653,214 LB Commercial Conduit
Mortgage Trust Class 99-C2 A1 (Aaa, NR) 07/15/08 7.105 1,666,612
1,000,000 MBNA Master Credit Card Trust,
Series 99-J, Class A (Aaa, AAA) 02/15/12 7.000 1,004,350
3,300,000 Merrill Lynch Mortgage
Investors, Inc.,
Series 1999-C1, Class A2 (NR, AAA) 09/15/09 7.56 3,390,222
2,664,335 Morgan Stanley Mortgage Trust,
Series 40, Class 8 (NR, AAA) 07/20/21 7.000 2,634,300
4,000,000 Nomura Asset Securities Corp.,
Series 1993-1, Class B1 (NR, A) 12/15/01 6.680 3,966,050
788,853 Nomura Asset Securities Corp.,
Series 1994-4B, Class 4A (Aaa, AAA) 09/25/24 8.300 795,760
632,479 Residential Funding Mortgage
Securities I, Series 96 - S2,
Class A1 (NR, AAA) 01/25/11 6.750 628,527
2,500,000 Shurgard Pass-Through
CTFS Trust (Nomura Asset
Securities Corp.), Series 1,
Class 1 (NR, NR) 11/15/00 8.240 2,501,943
994,096 Small Business Administration
Guaranteed-Development
Participation Certificate
Debenture Series 1992-20D
(Callable 10/01/02 @ $100.00) (Aaa, AAA) 12/22/03 8.200 1,023,341
------------
TOTAL ASSET/MORTGAGE BACKED SECURITIES (Cost $173,520,587) 170,945,321
------------
See Accompanying Notes to Financial Statements.
22
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS1
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
UNITED STATES TREASURY OBLIGATIONS (1.7%)
$3,700,000 U.S Treasury Notes (Aaa, AAA) 11/15/03 4.250 $ 3,533,752
1,100,000 U.S. Treasury Notes (Aaa, AAA) 09/30/02 6.000 1,101,503
100,000 U.S. Treasury Notes (Aaa, AAA) 11/15/04 5.875 100,068
450,000 U.S. Treasury Notes (Aaa, AAA) 05/15/05 6.750 466,664
------------
TOTAL UNITED STATES TREASURY OBLIGATIONS (Cost $5,203,421) 5,201,987
------------
NUMBER
OF
SHARES
-------
PREFERRED STOCKS (3.2%)
36,800 Banco Totta & Acores Financial Corp., Series A
(Callable 10/11/06 @ $25.00) 8.875 837,200
72,000 Equity Residential Properties Trust, Series D REIT
(Callable 07/15/07 @ $25.00) 8.600 1,647,000
65,050 Natexis Bank, Series A
(Callable 06/30/08 @ $100.00) 8.440 6,214,308
27,250 Prologis Trust, Series C REIT
(Callable 11/13/26 @ $50.00) 8.540 1,181,119
------------
TOTAL PREFERRED STOCKS (Cost $10,573,126) 9,879,627
------------
SHORT TERM INVESTMENTS (16.1%)
34,850,559 Institutional Money Market Trust 34,850,559
14,967,214 RBB Money Market Portfolio 14,967,214
------------
TOTAL SHORT TERM INVESTMENTS (Cost $49,817,773) 49,817,773
------------
WARRANTS (0.0%)
65 Dayton Superior (strike price $0.01 for 0.69 shares
per warrant, expiration date 6/15/09) (Cost $1,300) 1,300
------------
TOTAL INVESTMENTS ATVALUE (115.3%) (Cost $363,028,8133) 356,405,320
LIABILITIES IN EXCESS OF OTHER ASSETS (-15.3%) (47,413,741)
------------
NET ASSETS (100.0%) $308,991,579
============
NET ASSET VALUE, offering and redemption price per Common
Class share ($302,187,709 / 30,885,076 shares) $9.78
=====
NET ASSET VALUE, offering and redemption price per Advisor
Class share ($6,803,870 / 695,665 shares) $9.78
=====
INVESTMENT ABBREVIATIONS
NR = Not Rated
REMIC = Real Estate Mortgage Investment Conduit
CTFS = Certificates
REIT = Real Estate Investment Trust
--------------------------------------------------------------------------------
<FN>
1 Credit ratings given by Moody's Investors Service, Inc. and Standard & Poor's
Ratings Group are unaudited.
2 Illiquid security.
3 Cost for federal income tax purposes is $363,048,276.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS
October 31, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS2
PAR (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
<S> <C> <C> <C> <C>
ARGENTINA (3.2%)
692,000 (A) Banco Hipotecario SA
(Putable 12/03/01 @ $100.00) (B1, NR) 12/03/08 13.000 $ 683,350
740,000 (A) Republic of Argentina, Series XW (B1, BB) 12/04/05 11.000 666,000
1,000,800 (A) Republic of Argentina, (B1, BB) 03/31/05 7.375 876,951
300,000 (A) Republic of Argentina, Series L-GP (B1, BB-) 03/31/23 6.000 197,438
1,484,000 (A) Telecom Argentina++ (B1, BBB-) 07/12/01 9.750 1,483,669
------------
3,907,408
------------
BRAZIL (0.3%)
300,000 (A) Republic of Brazil (B2, B+) 04/15/24 7.375 230,438
189,000 (A) Republic of Brazil (B1, B+) 08/17/40 11.000 144,113
------------
374,551
------------
BULGARIA (0.4%)
690,000 (A) Republic of Bulgaria,
Discount Bond, Series A (B2, NR) 07/28/24 7.062 518,362
------------
CANADA (3.5%)
6,845,000 Province of British Columbia (Aa2, AA-) 12/01/06 5.250 4,287,694
------------
CHINA (0.7%)
985,000 (B) HSBC Capital Funding LP (NR, NR) 06/30/49 8.030 845,325
------------
DENMARK (4.1%)
40,400,000 Kingdom of Denmark (Aaa, AAA) 11/15/07 7.000 4,993,448
------------
GERMANY (6.7%)
1,173,000 (A) Deutsche Bank AG, Series 144A (Callable
06/30/09 @ $100.00) (A1, A+) 12/29/49 7.872 1,120,641
2,000,000 (B) German Government (Aaa, NR) 01/04/10 5.375 1,714,276
6,500,000 (B) German Government, Series 99 (Aaa, NR) 07/04/09 4.500 5,230,898
------------
8,065,815
------------
ITALY (4.3%)
4,200,000 (B) Buoni Poliennali Del Tes (Aa3, AA) 05/01/03 4.750 3,517,741
2,255,000 (B) Buoni Poliennali Del Tes (Aa3, AA) 11/01/09 4.250 1,740,565
------------
5,258,306
------------
JAPAN (4.8%)
580,000,000 Japan Government (Aa1, AAA) 12/20/05 2.900 5,782,679
------------
RUSSIA (0.3%)
1,000,000 (A) Russian Federation, Series 144A (NR, B-) 03/31/30 2.500 375,000
------------
SOUTH AFRICA (1.8%)
16,860,000 Republic of South Africa (Baa1, BBB+) 08/31/10 13.000 2,141,750
------------
TURKEY (0.7%)
641,550,000 Republic of Turkey (NR, NR) 05/23/01 33.137 782,193
------------
See Accompanying Notes to Financial Statements.
24
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS2
PAR1 (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
FOREIGN BONDS (CONT'D)
UNITED KINGDOM (1.9%)
1,456,000 (A) Lloyds TSB Bank PLC
(Callable 07/15/09 @ 100 EUR) (Aa2, A+) 07/15/49 5.625 $ 1,181,941
1,000,000 (B) Royal Bank of Scotland PLC (A1, AA-) 03/31/49 6.770 852,993
295,000 (B) British Sky Broadcasting Inc. (Ba1, BB+) 10/15/06 7.300 267,440
------------
2,302,374
------------
TOTAL FOREIGN BONDS (Cost $45,303,282) 39,634,905
------------
UNITED STATES BONDS/NOTES (59.1%)
3,560,000 California Infrastructure San Diego Gas & Electric
Rate Reduction Series 1997-1 Cladd A7 (Aaa, AAA) 12/26/09 6.370 3,455,532
305,000 CSC Holdings, Inc. (Ba1, BB+) 07/15/08 7.250 283,494
1,490,000 Conseco, Inc. (B1, BB-) 10/15/06 9.000 938,700
600,000 Duke Energy Field Services (Baa2, BBB) 08/16/05 7.500 606,008
615,717 Fannie Mae (Aaa, AAA) 10/01/24 6.500 592,243
1,500,000 Fannie Mae (Aaa, AAA) 11/01/30 7.000 1,470,469
280,000 Federal Home Loan Bank (Aaa, AAA) 08/15/06 6.375 277,437
197,000,000 (C) Ford Motor Credit Co. (A1, A+) 02/07/05 1.200 1,774,847
500,000 Ford Motor Credit Co. (A2, A) 06/15/10 7.875 505,045
300,000 GE Global Insurance (Aa1, AA) 06/15/10 7.500 303,161
2,729,228 Ginnie Mae (Aaa, AAA) 03/15/26 7.000 2,693,407
3,382,187 Ginnie Mae (Aaa, AAA) 03/15/29 6.500 3,268,039
640,000 Global Crossing Holdings, Ltd.
(Callable 11/01/04 @ $104.75) (Ba2, BB) 11/15/09 9.500 614,400
2,931,000 (B) GMAC Swift Trust Series 1999-1 (Aaa, AAA) 01/18/05 5.000 2,419,974
1,600,000 Golden State Escrow Corp. (Callable @ Make
Whole +50BP) (Ba1, BB+) 08/01/03 7.000 1,533,146
600,000 John Hancock Global Funding II Series 144A (NR, AA+) 07/02/10 7.900 615,278
2,435,000 Illinois Power Transitional Funding Trust,
Series 1998-1, Class A6 (Aaa, AAA) 06/25/09 5.540 2,279,805
5,308,000 MBNA Master Credit Card Trust II Series 1997-I,
Class A (NR, NR) 01/15/07 6.550 5,279,443
295,000 MGM Mirage, Inc. (Ba2, BB+) 06/01/07 9.750 307,538
800,000 Nextel Communications, Inc.
(Callable 02/15/03 @ 104.97) (B1, B-) 02/15/08 10.737 598,000
600,000 Nextlink Communications, Inc. (B2, B) 12/01/09 15.113 292,500
360,000 Nextlink Communications, Inc. (B2, B) 12/01/09 10.500 313,200
1,840,000 NTL Communications Corp. Class B3 (B2, B) 10/01/08 11.500 1,692,800
400,000 Park Place Entertainment (Ba2, BB+) 12/15/05 7.875 386,000
5,070,000 PECO Energy Transition Trust (Aaa, AAA) 03/01/09 6.050 4,853,435
90,000 Phillips Petroleum Company (Baa2, BBB) 05/25/05 8.500 95,035
305,000 Rogers Wireless Communications, Sr. Sub. Notes
(Callable 10/01/02 @ $104.40) (Ba2, BB-) 10/01/07 8.800 303,475
248,000,000 (C) Toyota Motor Credit Corp. (Aa1, AAA) 12/20/04 1.000 2,268,054
See Accompanying Notes to Financial Statements.
25
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
SCHEDULE OF INVESTMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
RATINGS2
PAR1 (MOODY'S/S&P) MATURITY RATE% VALUE
---- ------------- -------- ----- -----------
UNITED STATES BONDS/NOTES (CONT'D)
1,165,000 U.S. Treasury Bonds (Aaa, AAA) 08/15/10 5.750 $ 1,164,273
10,800,000 U.S. Treasury Notes (Aaa, AAA) 05/15/05 6.750 11,199,946
11,355,000 U.S. Treasury Notes (Aaa, AAA) 08/15/09 6.000 11,476,464
830,000 U.S. Treasury Notes (Aaa, AAA) 02/15/10 6.500 869,102
5,661,000 U.S. Treasury Notes (Aaa, AAA) 08/15/29 6.125 5,864,445
300,000 U.S. Treasury Notes (Aaa, AAA) 05/15/30 6.250 319,641
800,000 Voicestream Wireless Holding, Series 144A
(Callable 11/15/04 @ $105.19) (B2, B-) 11/15/09 10.375 860,000
------------
TOTAL UNITED STATES BONDS/NOTES (Cost $73,236,887) 71,774,336
------------
UNITED STATES TREASURY BILLS4 (0.1%)
10,000 U.S. Treasury Bills (Aaa, AAA) 03/01/01 5.873 9,798
20,000 U.S. Treasury Bills (Aaa, AAA) 03/01/01 6.025 19,595
5,000 U.S. Treasury Bills (Aaa, AAA) 03/01/01 6.059 4,899
15,000 U.S. Treasury Bills (Aaa, AAA) 03/01/01 6.060 14,696
------------
TOTAL UNITED STATES TREASURY BILLS (Cost $48,994) 48,988
------------
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 2,283,197
------------
SHORT TERM INVESTMENT (4.1%)
4,977,211 RBB Money Market Portfolio (Cost $4,977,211) 4,977,211
------------
TOTAL INVESTMENTS AT VALUE (97.8%) (Cost $125,953,8665) 118,718,637
OTHER ASSETS IN EXCESS OF LIABILITIES (2.2%) 2,612,171
------------
NET ASSETS (100.0%) $121,330,808
============
NET ASSET VALUE, offering and redemption price per Common
Class share ($121,309,151 / 12,488,897 shares) $ 9.71
======
NET ASSET VALUE, offering and redemption price per Advisor
Class share ($21,657 / 2,106 shares) $10.28
======
INVESTMENT ABBREVIATIONS
EUR = European Currency Unit
NR = Not Rated
--------------------------------------------------------------------------------
<FN>
1 Unless otherwise indicated below, all securities are denominated in the
currency of the issuers' country of origin.
2 Credit ratings given by Moody's Investors Service, Inc. and Standard &
Poor's Ratings Group are unaudited.
3 Illiquid security
4 Collateralized against futures obligations.
5 Cost for federal income tax purposes is $125,956,030.
(A) Denominated in U.S. Dollars.
(B) Denominated in Euro.
(C) Denominated in Japanese Yen.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
October 31, 2000
--------------------------------------------------------------------------------
<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 $47,852,738,
$71,847,824, $363,028,813 and
$125,953,866, respectively) $47,477,940 $73,139,965 $356,405,320 $118,718,637
Cash 0 878,144 625 0
Receivable on forward currency contracts 0 0 0 183,155
Receivable for investments sold 0 0 30,531,273 4,550,309
Dividends and interest receivable 538,971 1,085,932 4,136,088 2,178,832
Receivable for fund shares sold 22,914 71,419 390,491 163,993
Margin receivable on futures 0 0 0 9,776
Prepaid expenses and other assets 23,414 12,073 36,482 31,700
----------- ----------- ------------ ------------
Total Assets 48,063,239 75,187,533 391,500,279 125,836,402
----------- ----------- ------------ ------------
LIABILITIES
Advisory fee payable 558 25,200 126,361 43,935
Administrative fee payable 8,480 13,576 48,878 19,205
Directors fee payable 2,725 3,300 2,825 2,400
Payable for investments purchased 0 0 81,787,953 4,080,330
Payable for fund share redeemed 28,410 130,919 271,907 250,902
Dividends payable 24,873 35,533 159,416 0
Accrued expenses payable 23,906 31,274 111,360 108,822
----------- ----------- ------------ ------------
Total Liabilities 88,952 239,802 82,508,700 4,505,594
----------- ----------- ------------ ------------
NET ASSETS
Capital stock, $ .001 par value 4,900 7,316 31,580 5,977
Paid-in capital 49,599,143 74,309,622 327,451,151 142,220,072
Accumulated undistributed net investment
income 0 0 23,013 2,919,475
Accumulated net realized loss from
investments and foreign currency
related transactions (1,254,958) (661,348) (11,890,672) (16,702,354)
Net unrealized appreciation (depreciation)
from investments and foreign currency
related translations (374,798) 1,292,141 (6,623,493) (7,112,362)
----------- ----------- ------------ ------------
Net Assets $47,974,287 $74,947,731 $308,991,579 $121,330,808
=========== =========== ============ ============
COMMON SHARES
Net assets $47,974,287 $74,947,731 $302,187,709 $121,309,151
----------- ----------- ------------ ------------
Shares outstanding 4,893,675 7,316,439 30,885,076 12,488,897
----------- ----------- ------------ ------------
Net asset value, offering price and
redemption price per share $ 9.80 $ 10.24 $ 9.78 $ 9.71
=========== =========== ============ ============
ADVISOR SHARES
Net assets $ 6,803,870 $ 21,657
------------ ------------
Shares outstanding 695,665 2,106
------------ ------------
Net asset value, offering price and
redemption price per share $ 9.78 $ 10.28
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF OPERATIONS
For the Year Ended October 31, 2000
--------------------------------------------------------------------------------
<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 $ 43,551 $ 862,030 $ 201,716
Interest 3,333,448 3,844,685 23,628,791 7,647,838
---------- ---------- ----------- ----------
Total investment income 3,333,448 3,888,236 24,490,821 7,849,554
---------- ---------- ----------- ----------
EXPENSES:
Investment advisory fees 261,469 312,719 1,681,883 1,214,634
Administrative fees 85,658 130,000 529,569 194,076
Printing expense 26,518 31,756 113,202 60,966
Registration fees 26,202 11,755 33,999 29,660
Transfer agent fees 25,831 16,002 166,296 163,622
Custodian/Sub-custodian fees 16,062 15,736 66,541 79,354
Legal fees 15,484 18,557 26,225 16,337
Audit fees 15,200 15,250 25,100 20,893
Directors/Trustees fees 10,662 12,957 10,820 10,161
Insurance expense 1,468 1,290 1,765 1,243
Interest expense 107 173 1,165 879
Shareholder servicing/
distribution fees 37 0 16,570 128
Miscellaneous expenses 2,822 3,796 13,178 5,182
---------- ---------- ----------- ----------
487,520 569,991 2,686,313 1,797,135
Less: fees waived and
transfer agent offsets (173,720) (100,911) (146,918) (643,106)
---------- ---------- ----------- ----------
Total expenses 313,800 469,080 2,539,395 1,154,029
---------- ---------- ----------- ----------
Net investment income 3,019,648 3,419,156 21,951,426 6,695,525
---------- ---------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized loss from:
Investments (481,053) (277,814) (9,807,340) (3,011,156)
Foreign currency forward
transactions 0 0 0 6,830,514
Other foreign exchange
transactions 0 0 0 (1,346,359)
---------- ---------- ----------- ----------
(481,053) (277,814) (9,807,340) 2,472,999
---------- ---------- ----------- ----------
Net change in unrealized appreciation/
(depreciation) from:
Investments 590,453 1,725,500 5,206,499 (3,211,859)
Futures contracts 0 0 0 21,434
Translation of assets
and liabilities
in foreign currencies 0 0 0 (678,518)
---------- ---------- ----------- ----------
590,453 1,725,500 5,206,499 (3,868,943)
---------- ---------- ----------- ----------
Net gain (loss) on investments
and foreign currency
transactions 109,400 1,447,686 (4,600,841) (1,395,944)
---------- ---------- ----------- ----------
Net increase in net assets
resulting from operations $3,129,048 $4,866,842 $17,350,585 $5,299,581
========== ========== =========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
WARBURG PINCUS WARBURG PINCUS
INTERMEDIATE MATURITY NEW YORK INTERMEDIATE
GOVERNMENT FUND MUNICIPAL FUND
-------------------------------- -------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, OCTOBER 31,
2000 1999 2000 1999
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 3,019,648 $ 3,596,379 $ 3,419,156 $ 4,004,059
Net realized loss from investments (481,053) (578,188) (277,814) (383,534)
Net change in unrealized appreciation/
(depreciation) from investments 590,453 (3,074,269) 1,725,500 (3,789,693)
------------ ------------ ----------- ------------
Net increase (decrease)
in net assets
resulting from operations 3,129,048 (56,078) 4,866,842 (169,168)
------------ ------------ ----------- ------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income:
Common Class shares (3,018,839) (3,595,653) (3,419,156) (4,004,059)
Advisor Class shares (809) (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 (3,019,648) (4,079,890) (3,419,156) (4,628,164)
------------ ------------ ----------- ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 39,880,811 68,865,628 31,829,282 54,393,636
Reinvestment of dividends
and distributions 2,649,328 3,612,598 2,919,837 4,058,953
Net asset value of
shares redeemed (51,310,503) (89,908,731) (45,182,997) (76,643,731)
------------ ------------ ----------- ------------
Net increase (decrease) in net assets from
capital share transactions (8,780,364) (17,430,505) (10,433,878) (18,191,142)
------------ ------------ ----------- ------------
Net decrease in net assets (8,670,964) (21,566,473) (8,986,192) (22,988,474)
NET ASSETS:
Beginning of year 56,645,251 78,211,724 83,933,923 106,922,397
------------ ------------ ----------- ------------
End of year $ 47,974,287 $ 56,645,251 $74,947,731 $ 83,933,923
============ ============ =========== ============
</TABLE>
See Accompanying Notes to Financial Statements
29
<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 YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, OCTOBER 31,
2000 1999 2000 1999
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income $ 21,951,426 $ 23,252,281 $ 6,695,525 $ 7,389,712
Net realized gain/(loss)
from investments and
foreign currency related
transactions (9,807,340) (1,962,658) 2,472,999 (2,940,729)
Net change in unrealized
appreciation/(depreciation)
from investments and
foreign currency related
translations 5,206,499 (17,380,764) (3,868,943) (981,559)
------------- ------------- ------------ -------------
Net increase in net
assets resulting from operations 17,350,585 3,908,859 5,299,581 3,467,424
------------- ------------- ------------ -------------
FROM DIVIDENDS AND DISTRIBUTIONS:
Dividends from net
investment income:
Common Class shares (21,533,335) (23,048,992) (9,301,461) (8,236,456)
Advisor Class shares (418,091) (203,289) (1,216) 0
Dividends in excess of
net investment income:
Common Class shares (39,026) (40,837) (2,563,464) (164,530)
Advisor Class shares (763) (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 (21,991,215 (24,993,159) (11,866,141) (8,549,389)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 190,117,460 189,568,336 42,765,183 77,765,560
Reinvestment of dividends
and distributions 19,523,822 21,725,382 11,112,722 7,581,877
Net asset value of
shares redeemed (296,259,076) (216,553,616) (61,376,243) (105,518,211)
------------- ------------- ------------ -------------
Net decrease in net assets from capital
share transactions (86,617,794) (5,259,898) (7,498,338) (20,170,774)
------------- ------------- ------------ -------------
Net decrease in net assets (91,258,424) (26,344,198) (14,064,898) (25,252,739)
NET ASSETS:
Beginning of year 400,250,003 426,594,201 135,395,706 160,648,445
------------- ------------- ------------ -------------
End of year $ 308,991,579 $ 400,250,003 $121,330,808 $ 135,395,706
============= ============= ============ =============
Undistributed net investment income $23,013 $62,993 $2,919,475 $2,605,936
============= ============= ============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
30
<PAGE>
WARBURG PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of year $ 9.77 $ 10.37 $ 10.05 $ 10.07 $ 10.22
------- ------- ------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.56 0.53 0.56 0.58 0.58
Net gains (losses) from investments
(both realized and unrealized) 0.03 (0.54) 0.32 0.10 (0.06)
------- ------- ------- ------- -------
Total from investment activities 0.59 (0.01) 0.88 0.68 0.52
------- ------- ------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.56) (0.53) (0.56) (0.58) (0.58)
Distributions from net realized gains 0.00 (0.04) 0.00 (0.08) (0.09)
Distributions in excess of
net realized gains 0.00 (0.02) 0.00 (0.04) 0.00
------- ------- ------- ------- -------
Total dividends and distributions (0.56) (0.59) (0.56) (0.70) (0.67)
------- ------- ------- ------- -------
NET ASSET VALUE, END OF YEAR $ 9.80 $ 9.77 $ 10.37 $ 10.05 $ 10.07
======= ======= ======= ======= =======
Total return 6.27% (0.05)% 9.35% 6.99% 5.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted) $47,974 $56,625 $78,200 $48,421 $47,690
Ratio of expenses to average net assets1 0.62% 0.61% 0.60% 0.61% 0.61%
Ratio of net income to average net assets 5.77% 5.27% 5.54% 5.81% 5.68%
Decrease reflected in above operating
ratios due to waivers/reimbursements 0.31% 0.28% 0.34% 0.33% 0.46%
Portfolio turnover rate 84.42% 91.13% 133.98% 104.34% 163.59%
--------------------------------------------------------------------------------
<FN>
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
Common Class shares' expense ratio by .02%, .01%, .00%, .01% and .01% for
years ending October 31, 2000, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .60% for each of the years ended October 31, 2000, 1999,
1998, 1997 and 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
31
<PAGE>
WARBURG PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND
FINANCIAL HIGHLIGHTS
(For a Common Class Share of the Fund Outstanding Throughout Each Year)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
------- ------- -------- ------- -------
PER-SHARE DATA
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 10.04 $ 10.54 $ 10.35 $ 10.34 $ 10.42
------- ------- -------- ------- -------
INVESTMENT ACTIVITIES:
Net investment income 0.44 0.42 0.44 0.45 0.45
Net gains (losses) from investments
(both realized and unrealized) 0.20 (0.44) 0.19 0.13 0.04
------- ------- -------- ------- -------
Total from investment activities 0.64 (0.02) 0.63 0.58 0.49
------- ------- -------- ------- -------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.44) (0.42) (0.44) (0.45) (0.45)
Distributions from net realized gains 0.00 (0.06) 0.00 (0.12) (0.12)
------- ------- -------- ------- -------
Total dividends and distributions (0.44) (0.48) (0.44) (0.57) (0.57)
------- ------- -------- ------- -------
NET ASSET VALUE, END OF YEAR $ 10.24 $ 10.04 $ 10.54 $ 10.35 $ 10.34
======= ======= ======== ======= =======
Total return 6.54% (0.26)% 6.24% 5.83% 4.87%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted) $74,948 $83,934 $106,922 $88,944 $77,559
Ratio of expenses to average net assets1 0.62% 0.61% 0.60% 0.60% 0.61%
Ratio of net income to average net assets 4.37% 4.03% 4.24% 4.40% 4.41%
Decrease reflected in above operating
ratios due to waivers/reimbursements 0.11% 0.10% 0.07% 0.08% 0.17%
Portfolio turnover rate 29.49% 54.97% 37.25% 69.84% 69.23%
----------
--------------------------------------------------------------------------------
<FN>
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
Common Class shares' expense ratio by .02%, .01%, .00%, .00% and .01% for the
years ending October 31, 2000, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .60% for each of the years ended October 31, 2000, 1999,
1998, 1997 and 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
32
<PAGE>
WARBURG PINCUS FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Year)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of year $ 9.89 $ 10.41 $ 10.43 $ 10.10 $ 10.07
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.64 0.57 0.59 0.62 0.63
Net gains (losses) from investments and
foreign currency related transactions
(both realized and unrealized) (0.11) (0.48) 0.07 0.33 0.03
-------- -------- -------- -------- --------
Total from investment activities 0.53 0.09 0.66 0.95 0.66
-------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.64) (0.57) (0.59) (0.62) (0.63)
Distributions from net realized gains 0.00 (0.04) (0.09) 0.00 0.00
-------- -------- -------- -------- --------
Total dividends and distributions (0.64) (0.61) (0.68) (0.62) (0.63)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $ 9.78 $ 9.89 $ 10.41 $ 10.43 $ 10.10
======== ======== ======== ======== ========
Total return 5.59% 0.92% 6.48% 9.78% 6.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted) $302,188 $393,433 $423,536 $265,453 $151,184
Ratio of expenses to average net assets1 0.77% 0.76% 0.75% 0.75% 0.76%
Ratio of net income to average net assets 6.53% 5.63% 5.64% 6.05% 6.30%
Decrease reflected in above operating
ratios due to waivers/reimbursements 0.02% 0.04% 0.04% 0.08% 0.15%
Portfolio turnover rate 247.21% 144.02% 124.04% 129.06% 194.23%
--------------------------------------------------------------------------------
<FN>
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
Common Class shares' expense ratio by .02%, .01%, .00%, .00% and .01% for the
years ending October 31, 2000, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .75% for each of the years ended October 31, 2000, 1999,
1998, 1997 and 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
33
<PAGE>
WARBURG PINCUS GLOBAL FIXED INCOME FUND
FINANCIAL HIGHLIGHTS
(For a Common Share of the Fund Outstanding Throughout Each Year)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
PER-SHARE DATA
Net asset value, beginning of year $ 10.25 $ 10.62 $ 10.91 $ 11.17 $ 11.04
-------- -------- -------- -------- --------
INVESTMENT ACTIVITIES:
Net investment income 0.56 0.52 0.58 0.54 0.62
Net gains (losses) from investments and
foreign currency related transactions
(both realized and unrealized) (0.13) (0.29) (0.16) 0.08 0.57
-------- -------- -------- -------- --------
Total from investment activities 0.43 0.23 0.42 0.62 1.19
-------- -------- -------- -------- --------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.76) (0.59) (0.71) (0.34) (1.06)
Dividends in excess of net investment
income (0.21) (0.01) 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 (0.97) (0.60) (0.71) (0.88) (1.06)
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $ 9.71 $ 10.25 $ 10.62 $ 10.91 $ 11.17
======== ======== ======== ======== ========
Total return 4.37% 2.18% 4.10% 5.76% 11.35%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000s omitted) $121,309 $135,327 $154,131 $194,731 $131,072
Ratio of expenses to average net assets1 0.97% 0.96% 0.95% 0.96% 0.95%
Ratio of net income to average net assets 5.51% 5.00% 5.21% 5.40% 6.78%
Decrease reflected in above operating
ratios due to waivers/reimbursements 0.51% 0.57% 0.46% 0.39% 0.56%
Portfolio turnover rate 100.84% 365.02% 233.73% 202.92% 123.90%
--------------------------------------------------------------------------------
<FN>
1 Interest earned on uninvested cash balances is used to offset portions of the
transfer agent expense. These arrangements resulted in a reduction to the
Common Class shares' expense ratio by .02%, .01%, .00%, .01% and .00% for the
years ending October 31, 2000, 1999, 1998, 1997 and 1996, respectively. The
Common Class shares' operating expense ratio after reflecting these
arrangements was .95% for each of the years ended October 31, 2000, 1999,
1998, 1997 and 1996.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
34
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS
October 31, 20001
--------------------------------------------------------------------------------
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.
The Fixed Income and Global Fixed Income Funds offer 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 Fixed Income Fund currently bear
expenses of .25% of average daily net assets. The Advisor Class shares of the
Global Fixed Income Fund currently bear expenses of .50% of average daily net
assets. The Advisor Class shares for the Intermediate Government Fund was
liquidated on June 1, 2000.
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
35
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
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 an asset or a liability,
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
36
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
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.
The Fixed Income and Global Fixed Income Funds may invest in fixed income
securities rated below investment grade. While the market values of these
securities tend to react less to fluctuations in interest rate levels than do
those of investment grade securities, the market values of certain of these
securities also tend to be more sensitive to individual corporate developments
and changes in economic conditions than investment grade securities. In
addition, these securities generally present a higher degree of credit risk.
Issuers of such securities are often highly leveraged and may not have more
traditional methods of financing available to them so that their ability to
service their debt obligations during an economic downturn or during sustained
periods of rising interest rates may be impaired.
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's 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, principal
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
37
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
-------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES -- (CONT'D)
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.
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 Fund's custodian bank until the agreements mature. Each agreement
requires that the market value of the collateral be sufficient to cover payments
of interest and principal; however, in the event of default or bankruptcy by the
other party to the agreement, retention of the collateral may be subject to
legal proceedings. At October 31, 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 year ended October 31, 2000, the Funds received
credits or reimbursements under this arrangement as follows:
FUND AMOUNT
---- -------
Intermediate Government $10,240
New York Municipal 15,370
Fixed Income 65,633
Global Fixed Income 23,380
38
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
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
For the year ended October 31, 2000, investment advisory fees and voluntary
waivers were as follows:
GROSS NET
FUND ADVISORY FEE WAIVER ADVISORY FEE
---- ------------ ---------- ------------
Intermediate Government $ 261,469 $(143,332) $ 118,137
New York Municipal 312,719 (85,541) 227,178
Fixed Income 1,681,883 (81,285) 1,600,598
Global Fixed Income 1,214,634 (619,726) 594,908
Credit Suisse Asset Management Securities, Inc. ("CSAMSI"), an affiliate of
CSAM, serves as co-administrator to each Fund. PFPC Inc. ("PFPC"), an indirect
subsidiary of PNC Financial Services Group, Inc., also serves as each Fund's
co-administrator. For its administrative services, CSAMSI, currently receives a
fee calculated at an annual rate of .10% of each Fund's average daily net
assets. For the year ended October 31, 2000, administrative services fees earned
by CSAMSI were as follows:
FUND CO-ADMINISTRATION FEE
---- ---------------------
Intermediate Government $ 52,294
New York Municipal 78,180
Fixed Income 336,377
Global Fixed Income 121,463
For its administrative services through July 31, 2000, PFPC received a fee
calculated at an annual rate of .05% of each Fund's average daily net assets,
exclusive of out-of-pocket expenses.
Effective August 1, 2000, for its administrative services, PFPC receives a
fee, exclusive of out-of-pocket expenses, based on the following fee structure:
AVERAGE DAILY NET ASSETS ANNUAL RATE
--------------------------- --------------------------------
First $150 million .07% of average daily net assets
Next $150 million .06% of average daily net assets
Over $300 million .05% of average daily net assets
39
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR -- (CONT'D)
For the year ended October 31, 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 $ 33,364 $(20,148) $ 13,216
New York Municipal 51,820 0 51,820
Fixed Income 193,192 0 193,192
Global Fixed Income 72,613 0 72,613
</TABLE>
In addition to serving as each Fund's co-administrator, 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. On August 1, 2000 CSAMSI replaced PDI as distributor to each Fund. No
compensation is paid by the Common Class shares for distribution services. Also,
no compensation was payable by any of the Funds to PDI for distribution
services. Pursuant to a distribution plan adopted by each Fund pursuant to Rule
12b-1 under the 1940 Act, CSAMSI receives a fee for its distribution 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. The Advisor Class shares for the Intermediate
Government Fund was liquidated on June 1, 2000. CSAMSI may use this fee to
compensate service organizations for shareholder servicing and distribution
services. For the year ended October 31, 2000, shareholder servicing and
distribution fees were as follows:
SHAREHOLDER SERVICING/
FUND DISTRIBUTION FEE
---- ----------------------
Intermediate Government $ 37
Fixed Income 16,570
Global Fixed Income 128
3. LINE OFCREDIT
The Funds, together with other Funds advised by CSAM, have established a $350
million committed, and a $75 million uncommitted, 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 and 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
40
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
3. LINE OFCREDIT-- (CONT'D)
annum on the entire amount of the Credit Facility which is allocated among the
participating Funds in such manner as is determined by the governing Boards of
the various Funds. In addition, the participating Funds will pay interest on
borrowing at the Federal funds rate plus .50%. At October 31, 2000, the Funds
had no borrowings under the credit facility.
4. INVESTMENTS IN SECURITIES
For the year ended October 31, 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 $ 42,160,670 $ 51,614,424
New York Municipal 22,571,383 34,055,935 0 0
Fixed Income 136,351,756 171,095,804 683,899,887 684,344,625
Global Fixed Income 72,941,156 96,495,201 42,788,727 28,585,252
</TABLE>
For the year ended October 31, 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) were as
follows:
<TABLE>
<CAPTION>
NET
UNREALIZED UNREALIZED UNREALIZED APPRECIATION/
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ ------------ ------------------------
<S> <C> <C> <C>
Intermediate Government $ 263,564 $ (638,362) $ (374,798)
New York Municipal 1,392,106 (99,965) 1,292,141
Fixed Income 2,518,023 (9,160,979) (6,642,956)
Global Fixed Income 1,005,257 (8,242,650) (7,237,393)
</TABLE>
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 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.
41
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
5. FORWARD FOREIGN CURRENCY CONTRACTS -- (CONT'D)
At October 31, 2000, the Global Fixed Income Fund had the following open
forward foreign currency contracts:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN
EXPIRATION FOREIGN CURRENCY CONTRACT CONTRACT EXCHANGE
FORWARDCURRENCY CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/(LOSS)
------------------------ -------- ------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
European Economic Unit 01/19/01 20,555,000 $17,545,417 $17,484,083 $ 61,334
Japanese Yen 01/19/01 1,072,500,000 10,075,151 9,960,511 114,640
Danish Krona 01/19/01 42,400,000 4,852,369 4,842,449 9,920
South African Rand 01/19/01 7,000,000 915,451 918,189 (2,738)
----------- ----------- --------
$33,388,388 $33,205,232 $183,156
=========== =========== ========
</TABLE>
6. FUTURES CONTRACTS
Each Fund may enter into futures contracts to the extent permitted by its
investment policies and objectives. Upon entering into a futures contract, a
Fund is required to make a deposit of an initial margin with its custodian in a
segregated account. Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying instrument, are made or received by
a Fund each day (daily variation margin) and are recorded as unrealized gains or
losses until the contracts are closed. When the contract is closed, a Fund
records a realized gain or loss equal to the difference between the proceeds
from (or cost of) the closing transactions and a Fund's basis in the contract.
Risks of entering into futures contracts for hedging purposes include the
possibility that a change in the value of the contract may not correlate with
the changes in the value of the underlying instruments. In addition, the
purchase of a futures contract involves the risk that a Fund could lose more
than the original margin deposit and subsequent payments required for a futures
transaction. At October 31, 2000, the Global Fixed Income Fund had the following
open futures contracts:
<TABLE>
<CAPTION>
UNREALIZED
NUMBER OF EXPIRATION CONTRACT CONTRACT APPRECIATION/
FUTURES CONTRACTS CONTRACTS DATE AMOUNT VALUE (DEPRECIATION)
----------------- --------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
U.S. Treasury 30 Year Note Futures 6 12/01/2000 $ 596,661 $ 599,063 $ (2,402)
U.S. Treasury 10 Year Note Futures 26 12/19/2000 2,640,219 2,618,282 21,937
U.S. Treasury 5 Year Note Futures 4 12/19/2000 404,649 402,750 1,899
-- ---------- ---------- --------
36 $3,641,529 $3,620,095 $21,434
== ========== ========== =======
</TABLE>
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
42
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
7. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
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. The Advisor Class shares
for the Intermediate Government Fund was liquidated on June 1, 2000.
Transactions in classes of each Fund were as follows:
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT FUND
------------------------------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
----------------------------------------------------- ----------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE PERIOD ENDED FOR THE YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31,1999 JUNE 1, 2000 OCTOBER 31,1999
------------------------ ------------------------ -------------------- ------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
--------- ------------ --------- ------------ ------ -------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 4,141,422 $ 39,868,056 6,866,626 $ 68,853,863 1,322 $ 12,755 1,181 $11,765
Shares issued in
reinvestment
of dividends 274,002 2,648,525 360,109 3,611,795 83 803 81 803
Shares
repurchased (5,315,667) (51,277,314) (8,973,318) (89,905,584) (3,457) (33,189) (312) (3,147)
---------- ------------ ---------- ------------ ------ -------- ----- -------
Net increase/
(decrease) (900,243) $ (8,760,733) (1,746,583) $(17,439,926) (2,052) $(19,631) 950 $ 9,421
========== ============ ========== ============ ====== ======== ===== =======
</TABLE>
NEW YORK MUNICIPAL FUND
----------------------------------------------------
COMMON CLASS SHARES
----------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31,1999
------------------------ -------------------------
SHARES VALUE SHARES VALUE
--------- ------------ ---------- ------------
Shares sold 3,167,290 $ 31,829,282 5,216,327 $ 54,393,636
Shares issued in
reinvestment
of dividends 290,081 2,919,837 392,124 4,058,953
Shares
repurchased (4,497,547) (45,182,997) (7,392,453) (76,643,566)
---------- ------------ ---------- ------------
Net decrease (1,040,176) $(10,433,878 (1,784,002 $(18,190,977)
========== ============ ========== ============
43
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
7. CAPITAL SHARE TRANSACTIONS -- (CONT'D)
<TABLE>
<CAPTION>
FIXED INCOME FUND
------------------------------------------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
---------------------------------------------------------- ----------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 1999
--------------------------- --------------------------- ---------------------- --------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
----------- ------------- ----------- ------------- -------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 19,421,025 $ 189,250,352 18,227,693 $ 185,177,834 88,976 $ 867,108 439,586 $4,390,502
Shares issued in
reinvestment
of dividends 1,964,108 19,106,111 2,122,951 21,509,897 42,960 417,711 21,355 215,485
Shares
repurchased (30,277,964) (295,032,990) (21,257,886) (215,896,103) (125,800) (1,226,086) (65,295) (657,513)
----------- ------------- ----------- ------------- -------- ----------- ------- ----------
Net increase/
(decrease) (8,892,831) $ (86,676,527) (907,242) $ (9,208,372) 6,136 $ 58,733 395,646 $3,948,474
=========== ============= =========== ============= ======== =========== ======= ==========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
-------------------------------------------------------------------------------------------------------------
COMMON CLASS SHARES ADVISOR CLASS SHARES
---------------------------------------------------------- -----------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999 OCTOBER 31, 2000 OCTOBER 31, 1999
--------------------------- --------------------------- ---------------------- ---------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
----------- ------------- ----------- ------------- -------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 4,318,956 $ 42,764,658 7,349,863 $ 77,695,811 51 $ 525 6,616 $ 69,749
Shares issued in
reinvestment
of dividends 1,126,679 11,111,508 712,944 7,433,475 117 1,214 14,067 148,402
Shares
repurchased (6,164,691) (61,327,472) (9,371,367) (98,813,056) (4,637) (48,771) (630,756) (6,705,155)
---------- ------------- ---------- ------------ ------ -------- -------- -----------
Net increase/
(decrease) (719,056) $ (7,451,306) (1,308,560) $(13,683,770) (4,469) $(47,032) (610,073) $(6,487,004)
========== ============= ========== ============ ====== ======== ======== ===========
</TABLE>
44
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
8. CAPITAL LOSS CARRYOVER
At October 31, 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 2008 LOSS CARRYOVER
---- -------- -------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Intermediate Government $ 0 $ 0 $ 0 $ 726,633 $ 528,326 $ 1,254,959
New York Municipal 0 0 0 383,534 277,814 661,348
Fixed Income 0 0 0 1,940,565 9,930,643 11,871,208
Global Fixed Income 517,856 329,870 6,945,772 5,824,681 3,060,576 16,678,755
</TABLE>
9. RECLASSIFICATION OF COMPOSITION OF NET ASSETS
At October 31, 2000, accumulated undistributed net investment income and
accumulated net realized loss from investments and foreign currency related
transactions have been adjusted for current period permanent book/tax
differences which arose principally from differing book/tax treatments of
foreign currency transactions. The Fixed Income and Global Fixed Income Funds
reclassified ($191) and $5,484,155, respectively, from accumulated net realized
loss on investments and foreign currency related transactions to accumulated
undistributed net investment income.
45
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
10. OTHER FINANCIAL HIGHLIGHTS
Each Fund (other than the Intermediate Government Fund and 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 the relevant Funds are as
follows:
<TABLE>
<CAPTION>
FIXED INCOME FUND
--------------------------------------
ADVISOR CLASS
--------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
--------------------------------------
2000 1999 1998 1997 1996(1)
------ ------ ------ ------ ------
<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 0.62 0.54 0.56 0.60 0.19
Net gains (losses) on investments
and foreign currency related transactions
(both realized and unrealized) (0.11) (0.48) 0.07 0.33 0.20
------ ------ ------ ------ ------
Total from investment activities 0.51 0.06 0.63 0.93 0.39
------ ------ ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment
income (0.62) (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 (0.62 (0.58) (0.65) (0.60) (0.19)
------ ------ ------ ------ ------
Net asset value, end of period $ 9.78 $ 9.89 $10.41 $10.43 $10.10
====== ====== ====== ====== ======
Total return 5.33% 0.67% 6.21% 9.51% 3.93%(2)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $6,804 $6,817 $3,058 $3,963 $ 911
Ratio of expenses to average net assets(3) 1.02% 1.01% 1.00% 1.00% 1.00%(4)
Ratio of net income to average net assets 6.31% 5.38% 5.40% 5.62% 5.85%(4)
Decrease reflected in above operating
ratios due to waivers/reimbursements 0.02% 0.05% 0.04% 0.08% 0.11%(4)
Portfolio turnover rate 247.21% 144.02% 124.04% 129.06% 194.23%
--------------
<FN>
(1) For the period July 3, 1996 (Commencement of Operations) through October 31,
1996.
(2) Non-annualized.
(3) 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 .02%, .01%, .00%, .00%, and .00%
for the years or period ended October 31, 2000, 1999, 1998, 1997, and 1996,
respectively. The Advisor Class shares' operating expense ratio after
reflecting these arrangements was 1.00% for each of the years or period
ended October 31, 2000, 1999, 1998, 1997, and 1996.
(4) Annualized.
</FN>
</TABLE>
46
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
October 31, 2000
--------------------------------------------------------------------------------
10. OTHER FINANCIAL HIGHLIGHTS -- (CONT'D)
<TABLE>
<CAPTION>
GLOBAL FIXED INCOME FUND
----------------------------------------
ADVISOR CLASS
----------------------------------------
FOR THE YEAR ENDED OCTOBER 31,
----------------------------------------
2000 1999 1998 1997 1996(1)
------- ------- ------ ------ ------
<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 0.52 2 0.44 2 0.37 0.41 0.10
Net gains (losses) on investments and
foreign currency related transactions
(both realized and unrealized) (0.12) (0.29) (0.02) 0.15 0.27
------- ------- ------ ------ ------
Total from investment activities 0.40 0.15 0.35 0.56 0.37
------- ------- ------ ------ ------
LESS DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income (0.60) (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 (0.60) (0.24) (0.68) (0.83) (0.10)
------- ------- ------ ------ ------
Net asset value, end of period $ 10.28 $ 10.48 $10.57 $10.90 $11.17
======= ======= ====== ====== ======
Total return 3.88% 1.41% 3.51% 5.18% 3.41%(3)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 22 $ 69 $6,518 $8,935 $ 39
Ratio of expenses to average net assets(4) 1.47% 1.45% 1.45% 1.45% 1.45%(5)
Ratio of net income to average net assets 4.90% 4.14% 4.75% 4.76% 5.69%(5)
Decrease reflected in above operating expense
ratios due to waivers/reimbursements 0.51% 0.49% 0.37% 0.33% 0.21%(5)
Portfolio turnover rate 100.84% 365.02% 233.73% 202.92% 123.90%
-----------
<FN>
(1) For the period August 12, 1996 (Commencement of Operations) through October
31, 1996.
(2) Per share information is calculated using the average outstanding shares
method.
(3) Non-annualized.
(4) 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 .02% for the year ended October
31, 2000. These arrangements had no effect on the Advisor Class shares
expense ratio for each of the years or period ending October 31, 1999, 1998,
1997 and 1996. The Advisor Class shares operating expense ratio after
reflecting these arrangements was 1.45% for each of the years or period
ended October 31, 2000, 1999, 1998, 1997 and 1996.
(5) Annualized.
</FN>
</TABLE>
47
<PAGE>
WARBURG PINCUS FUNDS
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
WARBURG, PINCUS INTERMEDIATE MATURITY GOVERNMENT FUND, INC.;
WARBURG, PINCUS NEW YORK INTERMEDIATE MUNICIPAL FUND, INC.;
WARBURG, PINCUS FIXED INCOME FUND, INC.;
WARBURG, PINCUS GLOBAL FIXED INCOME FUND, INC.:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects the financial position of the Warburg, Pincus Intermediate
Maturity Government Fund, Inc., Warburg, Pincus New York Intermediate Municipal
Fund, Inc., Warburg, Pincus Fixed Income Fund, Inc. and Warburg, Pincus Global
Fixed Income Fund, Inc., (all funds collectively referred to as the "Funds") at
October 31, 2000, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and their financial highlights for each of the years (or
periods) presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at October
31, 2000 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion.
PRICEWATERHOUSECOOPERS LLP
Two Commerce Square
2001 Market Street
Philadelphia, Pennsylvania
December 15, 2000
48
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
SHAREHOLDER TAX INFORMATION (UNAUDITED)
--------------------------------------------------------------------------------
Each Fund is required by Subchapter M of the Code, to advise its shareholders
within 60 days of each Fund's fiscal year end as to the U.S. federal tax status
distributions received by the Fund's shareholders in respect of such fiscal
year. During the fiscal year ended October 31, 2000, the following dividends and
distributions per share were paid by each of the Funds:
<TABLE>
<CAPTION>
ORDINARY % OF ORDINARY INCOME DIVIDEND
INCOME QUALIFYING FOR
FUND PER SHARE DIVIDENDS RECEIVED DEDUCTION(1)
---- ---------- -------------------------------
1999
----
PAYMENT DATES MONTH END
------------- ---------
<S> <C> <C>
Intermediate Maturity Government 0.00
Common Shares $0.0914
Advisor Shares 0.0873
New York Intermediate Municipal2 0.00
Common Shares 0.0726
Fixed Income 8.68
Common Shares 0.1060
Advisor Shares 0.1019
</TABLE>
PAYMENT DATE 12/07/99
---------------- --------
Global Fixed Income 2.15
Common Shares $0.3687
The above information was provided to calendar year taxpayers on Form
1099-DIV mailed in January of 2000.
<TABLE>
<CAPTION>
ORDINARY % OF ORDINARY INCOME DIVIDEND
INCOME QUALIFYING FOR
FUND PER SHARE DIVIDENDS RECEIVED DEDUCTION(1)
---------- --------- -------------------------------
2000
----
PAYMENT DATES MONTH END
------------- ---------
<S> <C> <C>
Intermediate Maturity Government 0.00
Common Shares $0.4682
Advisor Shares 0.2240
New York Intermediate Municipal2 0.00
Common Shares 0.3677
Fixed Income 2.80
Common Shares 0.5337
Advisor Shares 0.5134
</TABLE>
PAYMENT DATES 03/31/00, 06/30/00, 09/29/00
------------- ----------------------------
Global Fixed Income 1.40
Common Shares $0.6000
Advisor Shares 0.6000
49
<PAGE>
WARBURG PINCUS FIXED INCOME FUNDS
SHAREHOLDER TAX INFORMATION (UNAUDITED) (CONT'D)
--------------------------------------------------------------------------------
Because the fiscal year of the Funds is not a calendar year, another
notification will be sent with respect to calendar year 2000. The second
notification, which will reflect the amount to be used by calendar year
taxpayers on their U.S. federal income tax returns, will be made in conjunction
with Form 1099-DIV and will be mailed in January 2001.
-----------------
(1) Available to Corporate Shareholders only.
(2) 100% of the dividends paid by this Fund were exempt-interest dividends for
the purposes of federal income tax.
50
<PAGE>
This page intentionally left blank
<PAGE>
This page intentionally left blank
<PAGE>
[GRAPHICS OMITTED]
P.O. BOX 9030, BOSTON, MA 02205-9030
800-WARBURG (800-927-2874) (TM) WWW.WARBURG.COM
CREDIT SUISSE ASSET MANAGEMENT SECURITIES, INC., DISTRIBUTOR. WPBDF-2-1000
