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Previous: BEA INCOME FUND INC, N-2, 1996-08-26 |
Next: WARBURG PINCUS CAPITAL APPRECIATION FUND, N-30D, 1996-08-26 |
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WARBURG PINCUS ADVISOR FUNDS
SEMIANNUAL REPORT
April 30, 1996
WARBURG PINCUS ADVISOR
CAPITAL APPRECIATION FUND
WARBURG PINCUS ADVISOR
EMERGING GROWTH FUND
WARBURG PINCUS ADVISOR
INTERNATIONAL EQUITY FUND
WARBURG PINCUS ADVISOR
JAPAN OTC FUND
WARBURG PINCUS ADVISOR
EMERGING MARKETS FUND
WARBURG PINCUS ADVISOR
POST-VENTURE CAPITAL FUND
WARBURG PINCUS ADVISOR
JAPAN GROWTH FUND
WARBURG PINCUS ADVISOR
SMALL COMPANY VALUE FUND
[LOGO]
<PAGE>
<PAGE>
The views of the Funds' management are as of the date of the letters and
portfolio holdings described in this semiannual report are as of April 30, 1996;
these views and portfolio holdings may have changed subsequent to these dates.
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WARBURG PINCUS CAPITAL APPRECIATION FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Capital Appreciation
Fund (the 'Fund') is long-term capital appreciation. The Fund invests primarily
in a diversified selection of medium-sized domestic companies and seeks to
identify sectors of the market and companies within market sectors that may
outperform the market and themes or patterns that may be associated with high
growth potential firms.
For the six months ended April 30, 1996, the Fund rose 16.38%, vs. gains of
13.70% in the Standard & Poor's 500 Index, 11.22% in the Lipper Growth Fund
Index and 13.85% in the Standard & Poor's MidCap 400 Index.
We made few major changes to the Fund during the period in terms of sector
weightings or specific holdings, maintaining its general concentration in
several broad areas: financial services, health care, media/entertainment and
technology. The rationale for emphasizing companies within these sectors is that
they stand to benefit directly from several powerful secular trends. These
include the aging of the baby boomers; the continued outsourcing of services and
downsizing of corporate America; and consolidation within industries. We believe
that the companies held in the portfolio are among the best-positioned within
their respective industries, and that their prospects are very favorable. Many
of these companies are also actively engaged in aggressive share-repurchase
programs, which we believe should have a beneficial impact on their stock prices
over time.
In general, our holdings in these areas contributed positively to the Fund's
performance over the November-through-April span. One group that saw
considerable volatility through the period, however, were financial stocks,
which represent the Fund's heaviest single concentration. These securities were
impacted negatively by two factors: rising interest rates from February through
April in response to signs of stronger economic growth, and concerns regarding
credit quality in their credit-card portfolios. We believe that the financial
companies held in the portfolio are strong, well-managed businesses, their
recent weakness notwithstanding, and that their near- to intermediate-term
performance stands to benefit from moderating interest rates in the months
ahead.
One change we made during the latter half of the reporting period was to
selectively increase the Fund's positions in more cyclically oriented industries
(e.g., chemicals, industrial manufacturing & processing, and specific areas of
technology). Increasingly, evidence suggests that the U.S. economy is relatively
strong and gaining strength, and the Fund's increased emphasis on these
companies should work to its advantage in the coming months.
<TABLE>
<S> <C>
George U. Wyper Susan L. Black
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
1
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WARBURG PINCUS EMERGING GROWTH FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Emerging Growth Fund
(the 'Fund') is maximum capital appreciation. The Fund targets small and
medium-sized U.S. companies that have successfully completed the start-up phase,
show positive earnings momentum and are deemed to have the potential to achieve
significant capital gains within a relatively short period of time.
For the six months ended April 30, 1996, the Fund gained 20.79%, vs. gains of
19.33% in the Lipper Small Company Growth Fund Index, 18.42% in the Russell 2000
Index, and 13.70% in the Standard & Poor's 500 Index.
The Fund benefited from strength across a broad range of its holdings during
the period. Its technology-related stocks made a positive contribution to its
performance, which is noteworthy, given the volatility that characterized the
sector through much of the six months. We believe that selectivity remains
crucial in the technology area. Hence we continue to focus on what we consider
to be well-managed, specialized companies with proprietary technologies, high
margins and visible streams of earnings. This discipline served the Fund well
during the reporting period, allowing it to avoid the weakness that
characterized stocks of other, more commodity-type companies (e.g.,
semiconductor manufacturers).
The Fund's health-care stocks also saw positive results. We continue to find
very attractive opportunities in this sector, particularly among companies able
to bring technological applications to what remains a very inefficient industry.
This inefficiency, coupled with an aging U.S. population, suggests that health
care will remain fertile ground for nimble, innovative smaller companies for the
foreseeable future, hence we continue to emphasize the sector in the portfolio.
Two specific, related areas that we believe hold particular promise are among
makers of pharmaceuticals and medical devices, and the Fund's holdings here
showed solid gains over the November-through-April span.
Another theme that we have emphasized with success in recent months is that
of corporate America's continuing penchant for outsourcing and downsizing. Our
holdings include many companies that are direct beneficiaries of this trend, and
their performance has been of benefit to the portfolio. Other industries that
have contributed to the Fund's recent performance, and areas in which we
continue to find attractive companies, include oil services (5.1% of the
portfolio as of April 30), retail (5.1% and communications & media (4.3%).
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
2
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WARBURG PINCUS INTERNATIONAL EQUITY FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus International Equity
Fund (the 'Fund') is long-term capital appreciation. The Fund aims to tap into
the strong growth potential of today's foreign stock markets by investing
primarily in companies whose principal business activities and interests are
outside the U.S.
For the six months ended April 30, 1996, the Fund gained 15.31%, vs. gains of
12.09% in the Lipper International Fund Index and 13.21% in the Morgan Stanley
Europe, Australasia and Far East ('EAFE') Index.
The Fund's performance for the six months was driven by timely stock
selection and, broadly, by the Fund's emphasis on Asian-Pacific markets, which
saw strong returns over the period. The portfolio's largest country weighting
throughout remained Japan (29.2% of the Fund's net assets as of April 30), which
rose on signs of continued economic recovery, an improved earnings outlook for
many companies, and an expansionary monetary policy from the Bank of Japan. We
believe that the prospects for the Japanese economy and Japanese equities
remain, in general, favorable, and that the Fund is well-positioned in terms of
its specific holdings. By sector, the Fund's largest weightings are in two
areas, machinery & industrial components and retail, reflecting our view that
Japan's economic recovery will be led by capital spending and consumption.
As a defensive measure, we continue to hedge a substantial portion of the
Fund's yen exposure, reflecting our view that the Japanese currency will weaken
vs. the U.S. dollar. This strategy worked to the Fund's advantage over the
reporting period.
Other Asian-Pacific stocks that contributed positively to the Fund's
performance include its holdings in Hong Kong, Indonesia, South Korea and
Taiwan. The latter two markets, which combined represented 9.8% of the Fund as
of April 30, rebounded strongly in April -- rising 11% and 25%, respectively,
for the month per Morgan Stanley Capital International -- after under-
performing in 1995 and through the first three months of 1996. Our long-term
outlook on both markets, and on Asian-Pacific markets generally, remains very
positive, given what we consider to be their excellent growth prospects and
reasonable valuations.
The Fund remained underweighted in Europe through the period, reflecting our
general view that better growth prospects exist elsewhere. But the Fund saw
positive results from many of its European holdings, notably its German stocks
(Adidas and SGL Carbon, which both rose strongly despite general weakness in the
German equity market) and its French stocks. The French stock market, after
lagging in 1995, was Europe's strongest performer in local-currency terms
through the first four months of 1996, driven by signs that its economic
troubles have begun to ease. The Fund benefited from this strength, with several
of its holdings (e.g., Lagardere Groupe, Fives-Lille and Scor) enjoying
particularly impressive gains. The Fund also benefited from our decision to
hedge its franc exposure, since the French currency weakened against the U.S.
dollar during the period. We remain positive on the outlook for our French
stocks, believing that they are strong, well-managed businesses.
<TABLE>
<S> <C>
Richard H. King
Portfolio Manager
</TABLE>
3
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WARBURG PINCUS JAPAN OTC FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Japan OTC Fund (the
'Fund') is long-term capital appreciation. The Fund invests primarily in
securities traded on the Japanese over-the-counter (OTC) market. At all times,
except during temporary defensive periods, the Fund maintains at least 65% of
its assets in these OTC securities.
For the six months ended April 30, 1996, the Fund gained 8.06%, vs. gains of
17.37% and 14.55% in the yen- and dollar-denominated JASDAQ indexes,
respectively. For the 1-year period ended April 30, 1996, the Fund gained 25.15%
vs. 31.65% and 5.58% in the yen- and dollar-denominated JASDAQ indexes,
respectively.*
The Fund trailed its benchmark for the period due largely to its weighting in
stocks of integrated-circuit (e.g., semiconductor) manufacturers. These had been
strong performers in 1995, and the Fund's emphasis on these issues was one of
the main contributors to its performance for the year. But the stocks have
suffered vs. other sectors of the market thus far in 1996, and the Fund's
exposure through April proved a liability. We believe that many of these stocks
have the potential to show improved performance in the coming months, however,
supported by the continued weakness in the yen, and hence we have maintained
some exposure to the sector in the portfolio.
Areas that contributed positively to the Fund's performance during the
November-through-April period include its consumer-related holdings. Japan's
consumer-oriented companies have benefited from the broad recovery in domestic
consumption, which has led to improved earnings and higher share prices. Our
outlook on the consumer sector remains positive, and companies that stand to
benefit from this growth represent a significant portion of the Fund's assets.
We believe that there are particularly attractive values to be found in retail,
restaurant and other service-related companies currently, and the Fund's
holdings include what we consider to be among the most promising.
We remain upbeat on the general prospects of Japan's over-the-counter stocks
as well. The Bank of Japan continues to pursue a benign monetary policy, which
is favorable for sustained economic growth and for share prices. In addition,
earnings for OTC companies remain strong vs. those of larger Japanese companies,
which may lead to increasing investor attention for these securities in the
months ahead.
<TABLE>
<S> <C>
Shuhei Abe Nicholas P.W. Horsley
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
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* The Fund's respective 1-year and since-inception (on 9/30/94) average annual
total returns through 3/31/96 were 18.75% and -4.48%, respectively. 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. There are also risks associated with
investing in Japan, including the risk of investing in a single-country fund.
The Fund has a 1% redemption fee, payable to the Fund, on shares held less that
six months. This fee is currently being waived.
4
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WARBURG PINCUS EMERGING MARKETS FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Emerging Markets Fund
(the 'Fund') is growth of capital. The Fund is a non-diversified investment
management company that invests primarily in equity securities of companies in
emerging securities markets around the world.
For the six months ended April 30, 1996, the Fund gained 22.97%, vs. a gain
of 13.42% in the Lipper Emerging Markets Fund Index.
Emerging markets enjoyed a broad recovery in the first four months of 1996
after a generally lackluster performance in 1995. The Fund benefited from this
resurgence and from the particular strength shown by Asian-Pacific emerging
markets, which comprise the largest portion of the Fund's assets. As detailed in
previous communications, the Fund's emphasis on these markets reflects our view
that their long-term growth prospects are superior, in general, to those of
other emerging markets (e.g., those of Latin America or Eastern Europe), due
largely to Asian-Pacific economies' high savings and investment rates.
Asian-Pacific countries also typically have better government policies, from a
business and investment perspective, and more stable currencies than other
developing countries, which further increases their attractiveness.
The Fund's Asian-Pacific emphasis remained most heavily concentrated in South
Korea and Taiwan through the six months (the countries represented 17.4% and
11.1%, respectively, of the Fund's net assets through April). Both markets saw
strong gains in the month of April after posting disappointing results
year-to-date through March. In South Korea's case this rebound was attributable
largely to a favorable response from foreign investors to its decision to
further open its stock market (effective April 1, foreign investors can own 18%
of a listed South Korean company, up from 15% previously); in Taiwan's case it
was due to the successful completion of the country's first democratic
presidential election in March. We continue to find good companies selling at
attractive valuations in both countries, hence we continue to give each
significant weighting in the portfolio.
Elsewhere, the Fund saw strong performance from its weightings in Indonesia
and India, which represented 6.4% and 9.0%, respectively, of the portfolio as of
April 30. The Fund's Indonesian stocks showed particularly strong performance in
the first quarter, and we took significant profits following those strong gains.
We remain committed to India, a market that we believe holds much promise: the
country's path toward economic reform appears likely to continue, despite the
failure of the recent general election to provide a clear mandate for either of
the country's two major political parties; and equity valuations remain very
attractive relative to those of other emerging markets.
In Latin America, the Fund's primary focus is on the markets of Chile and
Argentina, which each represented 6.6% of the Fund on April 30. We believe that
both markets remain attractive, and that the Fund's specific holdings are strong
companies with attractive valuations and favorable prospects.
In other regions, we are finding attractive opportunities in both Africa and
the Middle East. Elsewhere, the Fund has benefited from recent strength in
Eastern Europe, specifically in Hungary, though we believe that opportunities in
the region may be more limited over the remainder of the year.
<TABLE>
<S> <C>
Richard H. King Nicholas P.W. Horsley
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
5
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WARBURG PINCUS POST-VENTURE CAPITAL FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Post-Venture Capital
Fund (the 'Fund') is long-term growth of capital. The Fund pursues its objective
by investing primarily in equity securities of companies deemed to be in their
post-venture-capital stage of development.
For the six months ended April 30, 1996, the Fund gained 63.02%, vs. a gain
of 11.22% in the Lipper Growth Fund Index.
The Fund's significant outperformance of its benchmark for the period
reflects generally strong performance among the Fund's more heavily weighted
sectors, and timely stock selection within those sectors. The Fund's heaviest
emphasis through the period was concentrated in three broad areas: health care
(23.5% of the portfolio as of April 30), computers (20.4%) and business services
(12.9%), and a large number of the Fund's holdings within these segments
generated superior, in some cases exceptional, gains relative to the broader
market. The Fund also saw strong performance from a number of its holdings in
other market sectors, most notably in the electronics and pharmaceutical
segments, which combined accounted for 12.8% of the portfolio at the end of
April. We believe that the prospects of the Fund's securities remain, in
general, very favorable, and that the portfolio is well-positioned for the
coming months.
We remain similarly positive on the long-term prospects of post-venture
companies collectively. (We define these companies as those that have received
venture-capital financing either during the early stages of their existence or
in the early stages of the development of a new product or service, or that have
received such financing as part of a restructuring or recapitalization.) We
believe that venture-capital participation can lead to growth rates in earnings
and revenues above those of companies that lacked such financing, and are
encouraged by a recent major study* that reached similar conclusions.
We would caution investors, however, that investing in these securities
entails potential risks as well as rewards. Because of the nature of the Fund's
investments and certain strategies it may use, an investment in the Fund should
be considered only for the aggressive portion of an investor's portfolio and may
not be appropriate for all investors. Investors should review the prospectus
carefully before purchase.
<TABLE>
<S> <C>
Elizabeth B. Dater Stephen J. Lurito
Co-Portfolio Manager Co-Portfolio Manager
</TABLE>
- ------------
*Fifth Annual Economic Impact of Venture Capital Study, National Venture Capital
Association/Coopers & Lybrand L.L.P. (U.S.A.), 1995.
6
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WARBURG PINCUS JAPAN GROWTH FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Japan Growth Fund (the
'Fund') is long-term growth of capital. The Fund is a non-diversified management
investment company that pursues its objective by investing primarily in equity
securities of Japanese issuers that present attractive opportunities for growth.
Under current market conditions the Fund intends to invest at least 80% of its
total assets -- but will invest no less than 65% of its assets under normal
market conditions -- in common and preferred stocks, warrants and other rights,
securities convertible into or exchangeable for common stocks and American
Depository Receipts (ADRs) of Japanese issuers.
For the four months ended April 30, 1996 (the Fund's inception date was
December 29, 1995), the Fund gained 7.70% vs. a 7.59% gain in the Lipper Japan
Funds Average.
The Fund benefited from its real-estate holdings and the performance of its
over-the-counter (OTC) issues during the period; the OTC market generally
escaped much of the carnage wrought among many larger stocks in January. Also
fortuitous was the Fund's heavy weighting in capital spending as well as its
light stake in bank issues. And the Fund's holdings in Honda and several of its
component suppliers were especially beneficial, as the company is having a
banner year.
The Fund was somewhat disadvantaged by its concentration in the
semiconductor-related sector. Companies in this sector performed strongly in
1995, when the weighting was a benefit. Semiconductor stocks fared poorly vs.
other sectors through April 1996, however, and the high exposure was a handicap.
We subsequently cut back our semiconductor-related holdings in May. An
additional brake on the Fund's performance was its holdings in the retail
sector -- the segment slumped in April when inclement weather led to
disappointing clothing sales. Retail recovered from this dip in late May,
however, and we are maintaining our retail-related investments.
One factor that potentially weakened the Fund's semiannual results was
unrelated to how its components fared. Rather, the issue was the Fund's launch
date. Its inception on the last business day of last year meant that the Fund
was not fully invested when the Japanese market surged on the very first day of
trading in 1996. Had its investments been more fully developed, the Fund would
likely have outperformed the Lipper Japan Funds Average by more than it did.
According to recently released figures, the Japanese economy grew 3% in the
March quarter from the previous three-month period, surpassing economists'
expectations of 1.2% growth. These data notwithstanding, some analysts remain
pessimistic about Japan's long-term economic recovery, which they perceive as
faltering. We disagree with this perception, however, and continue to be
extremely optimistic about the country's economic health. The macroeconomic
figures in general remain sturdy, in our opinion. April industrial production
was in line with forecasts, up 3.9% month-over-month, while inventories declined
more than expected, down 0.8% in the same period.
We believe that some analysts are gloomy about Japan's near-term prospects
because the country's economy is in the midst of formal deregulation, and this
process remains slow. What these analysts are perhaps missing is that many
companies are finding ways to side-step obstacles and take advantage of
7
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<PAGE>
opportunities within the economy. In particular, myriad smaller companies in the
rapidly expanding OTC market are benefiting from the country's ongoing changes.
Moreover, with the Bank of Japan still anticipating a weaker economy,
interest-rate hikes, if there are any, should be modest, and this will likely
benefit the stock market.
<TABLE>
<S> <C>
P. Nicholas Edwards
Portfolio Manager
</TABLE>
8
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WARBURG PINCUS SMALL COMPANY VALUE FUND -- ADVISOR SHARES
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June 21, 1996
Dear Shareholder:
The objective of the Advisor Shares of Warburg Pincus Small Company Value
Fund (the 'Fund') is long-term capital appreciation. The Fund invests primarily
in a portfolio of equity securities of small-capitalization companies that are
considered to be relatively undervalued.
For the four months ended April 30, 1996 (the Fund's inception date was
December 29, 1995), the Fund gained 26.20% vs. a gain of 10.72% in the Russell
2000 Index. It is often the case that a fund outperforms to this extent because
a single sector within it flourishes in a given period. Through April 30 of this
year, however, no one industry sector stood out as a leader. Rather, many
individual stocks within the various sectors did well.
The Fund focuses on buying the stocks of companies that have market
capitalizations (the value of all outstanding stock) below $1 billion. Because
the companies are small, their stocks are not widely followed by Wall Street
analysts. Investors, for the most part, are therefore unaware of these small-
capitalization companies. This kind of company thus remains undervalued, its
share price ill-matched to its actual worth. We consider adding a stock to the
Fund when our research reveals that it has met our criteria of being undervalued
and having promising prospects. Any subsequent increase in analytical coverage
of that stock is usually beneficial to the Fund, as it will likely pique
investor interest.
Through April of this year the average capitalization of the stocks we bought
for the Fund was about $180 million, well below our established ceiling. This
meant that many of these securities, orbiting even farther off analysts' radar
screens than somewhat higher-cap stocks might, captured the attention of even
fewer investors -- and were especially undervalued. The Fund benefited during
the period as the potential of these stocks became increasingly recognized in
the marketplace.
The Fund has performed well to date. This brief period of performance is no
guarantee of how the Fund may perform in the future. Despite a thorough analysis
of a company and its addition to our portfolio, ultimately, other investors must
also recognize the stock's intrinsic value and then invest in it. We are
inclined to invest early, recognizing that we must be prepared to give our
investments time to perform. By the same token, should a stock attain our target
price, even if it does so more swiftly than expected, we likely will sell it.
Such is the value discipline.
<TABLE>
<S> <C>
George U. Wyper Kyle F. Frey
Portfolio Manager Associate Portfolio Manager
</TABLE>
9
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WARBURG PINCUS CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
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<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (89.8%)
Aerospace & Defense (1.1%)
Loral Space and Communications Ltd. `D' 260,000 $ 3,737,500
------------
Agriculture (0.9%)
First Mississippi Corp. 125,000 2,906,250
------------
Banks & Savings & Loans (13.6%)
Cal Fed Bancorp, Inc. `D' 120,000 2,145,000
Citicorp 120,000 9,450,000
Compass Bancshares, Inc. 80,000 2,680,000
CoreStates Financial Corp. 100,000 3,900,000
Long Island Bancorp, Inc. 100,000 2,775,000
Wells Fargo & Co. 104,533 25,362,319
------------
46,312,319
------------
Business Services (1.8%)
Data Processing Resources Corp. `D' 3,000 75,750
First Data Corp. 60,000 4,560,000
The Profit Recovery Group International, Inc. `D' 10,000 198,750
Union Corp. `D' 67,400 1,230,050
------------
6,064,550
------------
Chemicals (9.5%)
Avery-Dennison Corp. 185,000 10,545,000
Hercules, Inc. 205,000 12,402,500
Monsanto Co. 62,500 9,468,750
------------
32,416,250
------------
Communications & Media (5.3%)
CompuServ Corp. 21,000 598,500
Evergreen Media Corp. Class A `D' 40,000 1,570,000
Gannett Co., Inc. 50,000 3,418,750
Heritage Media Corp. Class A `D' 120,000 4,605,000
K-III Communications Corp. `D' 90,000 1,136,250
LIN Television Corp. `D' 149,000 4,954,250
Viacom, Inc. Class B `D' 40,000 1,640,000
------------
17,922,750
------------
Computers (4.1%)
Evans & Sutherland Computer Corp. `D' 95,000 2,565,000
Northern Trust Corp. `D' 75,000 4,218,750
Parametric Technology Corp. `D' 70,000 2,817,500
Synopsys, Inc. `D' 70,000 2,887,500
Teradyne, Inc. `D' 80,000 1,640,000
------------
14,128,750
------------
</TABLE>
See Accompanying Notes to Financial Statements.
10
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WARBURG PINCUS CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
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<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Conglomerates (3.4%)
Oglebay Norton Co. 123,900 $ 5,110,875
Thermo Electron Corp. `D' 104,400 6,433,650
------------
11,544,525
------------
Consumer Non-Durables (3.4%)
Department 56, Inc. `D' 100,000 2,487,500
Sola International, Inc. `D' 43,700 1,431,175
Standex International Corp. 290,100 7,832,700
------------
11,751,375
------------
Distribution (2.2%)
Alco Standard Corp. 70,000 4,051,250
Rykoff-Sexton, Inc. 220,000 3,327,500
------------
7,378,750
------------
Electronics (1.6%)
Linear Technology Corp. 50,000 1,718,750
Sigma Designs, Inc. `D' 150,000 1,631,250
Xilinx, Inc. `D' 55,000 2,028,125
------------
5,378,125
------------
Energy (4.1%)
Apache Corp. 200,000 5,800,000
Belco Oil & Gas Corp. `D' 60,500 1,746,938
San Juan Basin Royalty Trust 500,000 3,125,000
Texas Merdian Resources Corp. 50,000 525,000
Union Pacific Resources Group, Inc. 100,000 2,750,000
------------
13,946,938
------------
Environmental Services (0.6%)
Molten Metal Technology, Inc. `D' 4,400 141,900
WMX Technologies, Inc. `D' 50,000 1,737,500
------------
1,879,400
------------
Financial Services (8.3%)
Federal Home Loan Mortgage Corp. 40,000 3,335,000
Household International,Inc. 55,000 3,801,875
Legg Mason, Inc. 100,000 2,875,000
Leucadia National Corp. 161,400 4,196,400
Liberty Financial Companies, Inc. 50,100 1,665,825
Security Connecticut Corp. 128,200 3,365,250
Transport Holdings Class A `D' 84,550 3,593,375
Travelers Group, Inc. 87,700 5,393,550
------------
28,226,275
------------
</TABLE>
See Accompanying Notes to Financial Statements.
11
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WARBURG PINCUS CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Food, Beverages & Tobacco (1.2%)
Coca Cola Enterprises, Inc. 100,000 $ 2,950,000
Suiza Foods Corp. `D' 85,000 1,211,250
------------
4,161,250
------------
Healthcare (8.4%)
Becton Dickinson & Co. 45,000 3,628,125
Caremark International, Inc. 370,000 10,221,250
Health Management Associates, Inc. Class A `D' 160,000 5,120,000
Healthcare Compare Corp. `D' 98,600 4,646,525
Laboratory Corporation of America Holdings `D' 144,100 1,224,850
St. Jude Medical, Inc. `D' 100,000 3,650,000
------------
28,490,750
------------
Industrial Mfg. & Processing (2.0%)
Corning, Inc. 200,000 6,950,000
------------
Leisure & Entertainment (2.0%)
Disney (Walt) Holding Co. 73,500 4,557,000
International Game Technology 150,000 2,325,000
Penske Motorsports, Inc. `D' 2,000 60,500
------------
6,942,500
------------
Lodging & Restaurants (0.6%)
Foodmaker, Inc. `D' 250,000 2,031,250
Planet Hollywood International, Inc. Class A `D' 3,000 76,125
------------
2,107,375
------------
Metals & Mining (3.7%)
Allegheny Ludlum Corp. 579,500 11,445,125
Century Aluminum Co. `D' 75,000 1,106,250
------------
12,551,375
------------
Oil Services (1.3%)
Input-Output, Inc. `D' 130,000 4,517,500
------------
Pharmaceuticals (5.0%)
Pharmacia & Upjohh, Inc. 75,000 2,868,750
Warner-Lambert Co. 125,000 13,968,750
------------
16,837,500
------------
Publishing (0.7%)
Wiley (John) & Sons, Inc. Class A 73,600 2,539,200
------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS CAPITAL APPRECIATION FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Retail (1.4%)
Carr Gottstein Foods Co. `D' 181,000 $ 927,625
CUC International, Inc. `D' 120,000 3,945,000
------------
4,872,625
------------
Telecommunications & Equipment (2.0%)
Orange PLC (ADR) `D' 100,000 1,800,000
Paging Network, Inc. `D' 150,000 3,525,000
Tellabs, Inc. `D' 30,000 1,657,500
------------
6,982,500
------------
Transportation (1.6%)
Conrail, Inc. 80,000 5,580,000
------------
TOTAL COMMON STOCK (Cost $255,717,263) 306,126,332
------------
</TABLE>
<TABLE>
<CAPTION>
PAR VALUE
----------- ------------
<S> <C> <C>
SHORT-TERM INVESTMENTS
Repurchase agreement with State Street Bank & Trust Co.
dated 04/30/96 at 5.24% to be repurchased at $33,237,837 on 05/01/96.
(Collateralized by $33,525,000 U.S. Treasury Note at 6.00%,
due 08/31/97, with a market value of $33,902,156.) (Cost $33,233,000) $33,233,000 $ 33,233,000
------------
TOTAL INVESTMENTS AT VALUE (99.6%) (Cost $288,950,263*) 339,359,332
OTHER ASSETS IN EXCESS OF LIABILITIES (0.4%) 1,437,375
------------
NET ASSETS (100.0%) (applicable to 19,049,537 Common Shares and
1,259,300 Advisor Shares) $340,796,707
------------
------------
NET ASSET VALUE, offering and redemption price per Common Share
($319,865,174[div]19,049,537) $16.79
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($20,931,533[div]1,259,300) $16.62
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
</TABLE>
`D' Non-income producing security.
* Cost for Federal income tax purposes is $289,085,784.
See Accompanying Notes to Financial Statements.
13
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- --------------
<S> <C> <C>
COMMON STOCK (91.6%)
Banks & Savings & Loans (1.2%)
Banco Latinoamericano de Exportaciones, SA Class E 263,900 $ 14,613,462
--------------
Business Services (12.3%)
American Management Systems, Inc. `D' 447,550 11,916,019
Catalina Marketing Corp. `D' 155,000 12,070,625
CDI Corp. `D' 203,000 5,988,500
Checkpoint System, Inc. `D' 518,000 15,475,250
Continuum Inc. `D' 341,200 19,448,400
Copart, Inc. `D' 390,500 10,641,125
Daisytek International Corp. `D' 241,300 9,832,975
DecisionOne Holdings Corp. 185,000 4,671,250
DST Systems, Inc. `D' 305,600 11,230,800
Fritz Companies, Inc. `D' 341,600 12,553,800
Norrell Corp. 279,300 10,822,875
On Assignment, Inc. `D' 210,500 6,972,812
Quickresponse Services, Inc. `D' 408,200 11,939,850
--------------
143,564,281
--------------
Capital Equipment (1.0%)
Roper Co. 243,000 11,299,500
--------------
Communications & Media (4.3%)
Central European Media Enterprises Ltd. Class A `D' 553,000 15,829,625
Harte-Hanks Communications, Inc. 330,850 7,816,331
K-III Communications Corp. `D' 507,000 6,400,875
Media General, Inc. Class A 149,200 5,744,200
TCA Cable TV, Inc. 367,200 10,740,600
United Video Satellite Group, Inc. Class A `D' 184,800 4,204,200
--------------
50,735,831
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
14
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Computers (17.3%)
Atria Software, Inc. `D' 200,000 $ 10,900,000
Auspex Systems, Inc. `D' 544,500 10,549,687
Citrix Systems, Inc. `D' 175,000 13,650,000
Clarify, Inc. `D' 46,500 1,854,187
Cognex Corp. `D' 755,100 20,198,925
Epic Design Technology, Inc. `D' 267,000 9,144,750
FileNet Corp. `D' 212,400 11,894,400
Macromedia, Inc. `D' 284,000 10,703,250
McAfee Associates Inc.`D' 181,000 11,086,250
National Instruments Corp. `D' 482,800 11,828,600
Network General Corp. `D' 62,800 2,771,050
Planning Sciences International PLC ADR `D' 17,200 414,950
PLATINUM Technology, Inc. `D' 898,400 13,139,100
Pure Software, Inc. `D' 283,000 11,249,250
Rational Software Corp. 20,000 1,067,500
Shared Medical Systems Corp. 213,000 14,590,500
Stratasys, Inc. `D' # 117,854 2,180,299
Synopsys, Inc. `D' 687,600 28,363,500
System Software Associates, Inc. `D' 545,000 13,011,875
Uunet Technologies, Inc. `D' 66,500 3,815,438
--------------
202,413,511
--------------
Consumer Non-Durables (2.1%)
Natures Sunshine Products, Inc. 569,500 14,237,500
Nutramax Products, Inc. `D' 405,100 3,899,088
Sola International, Inc. `D' 195,000 6,386,250
--------------
24,522,838
--------------
Consumer Services (2.1%)
DeVRY, Inc. `D' 302,900 11,283,025
ITT Educational Services Inc. `D' 435,300 13,494,300
--------------
24,777,325
--------------
Electronics (8.8%)
Burr-Brown Corp. `D' 454,300 8,745,275
Glenayre Technologies, Inc. `D' 566,162 26,326,533
Maxim Integrated Products, Inc. `D' 492,700 16,874,975
Methode Electronics, Inc. Class A 627,200 10,505,600
Solectron Corp. `D' 650,500 28,947,250
ThermoTrex Corp. `D' 228,000 11,941,500
--------------
103,341,133
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
15
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Energy (1.5%)
Brown (Tom), Inc. `D' 598,800 $ 9,281,400
Texas Merdian Resources Corp. `D' 775,500 8,142,750
--------------
17,424,150
--------------
Engineering & Construction (0.9%)
Jacobs Engineering Group, Inc. `D' 374,500 10,392,375
--------------
Environmental Services (2.9%)
Allied Waste Industries, Inc. `D' 1,157,300 11,283,675
Sanifill, Inc. `D' 247,000 10,713,625
USA Waste Services, Inc. `D' 469,500 12,207,000
--------------
34,204,300
--------------
Financial Services (3.8%)
Liberty Financial Companies, Inc. 223,000 7,414,750
Price T. Rowe Associates, Inc. 197,500 11,010,625
Transactions Systems Architects, Inc. Class A `D' 301,400 16,124,900
United Companies Financial Corp. 303,600 9,715,200
--------------
44,265,475
--------------
Healthcare (8.4%)
American Oncology Resources, Inc. `D' 250,500 11,961,375
Ballard Medical Products 535,000 10,633,125
EMCare Holdings, Inc. `D' 453,900 12,709,200
Healthcare Compare Corp. `D' 257,200 12,120,550
Healthsource, Inc. `D' 280,600 9,575,475
IDX Systems Corp. `D' 290,700 10,683,225
InControl, Inc. `D' 497,000 7,579,250
Lincare Holdings, Inc. `D' 250,000 9,703,125
Phymatrix, Inc. `D' 465,500 8,844,500
Physician Reliance Network, Inc. `D' 116,000 5,017,000
Trex Medical, Inc. # 40,000 410,000
--------------
99,236,825
--------------
Lodging & Restaurants (1.8%)
Doubletree Corp. `D' 362,100 11,677,725
Renaissance Hotel Group NV 494,000 9,386,000
--------------
21,063,725
--------------
Office Equipment & Supplies (2.1%)
Viking Office Products, Inc. `D' 417,400 24,783,125
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
16
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Oil Services (5.1%)
Input/Output, Inc. `D' 819,500 $ 28,477,625
Nabors Industries, Inc. `D' 836,000 12,853,500
Petroleum Geo-Services- Sponsored ADR `D' 582,800 18,431,050
--------------
59,762,175
--------------
Pharmaceuticals (4.2%)
Alpharma, Inc. Class A `D' 373,200 9,143,400
Gilead Sciences, Inc. `D' 685,800 20,916,900
Guilford Pharmaceuticals, Inc. `D' 281,500 7,178,250
Ligand Pharmaceuticals, Inc. Class B `D' 246,700 3,607,988
Ostex International, Inc. `D' 333,500 5,419,375
Somatix Therapy Corp. `D' 351,440 2,987,240
--------------
49,253,153
--------------
Publishing (1.6%)
Scholastic Corp. `D' 151,200 9,903,600
Wiley (John) & Sons, Inc. Class A 258,300 8,911,350
--------------
18,814,950
--------------
Real Estate (1.2%)
NHP, Inc. `D' 708,000 13,717,500
--------------
Retail (5.1%)
Baby Superstore, Inc. `D' 135,000 6,142,500
Borders Group, Inc. `D' 660,000 21,120,000
General Nutrition Center, Inc. `D' 480,000 9,360,000
NeoStar Retail Group, Inc. `D' 617,300 4,089,613
PETsMART, Inc. `D' 421,900 18,721,813
--------------
59,433,926
--------------
Telecommunications & Equipment (3.0%)
Heartland Wireless Communications, Inc. `D' 471,400 13,140,275
Nexus Telecommunications Ltd. # 375,000 1,593,750
Paging Network, Inc. `D' 856,300 20,123,050
--------------
34,857,075
--------------
Transportation (0.9%)
Mark VII, Inc. `D' 536,000 10,753,500
--------------
TOTAL COMMON STOCK (Cost $784,107,328) 1,073,230,135
--------------
PREFERRED STOCK (0.7%)
Computers (0.2%)
Focal, Inc., Series E-1 # 1,047,121 2,000,001
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
17
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- --------------
PREFERRED STOCK (CONT'D)
<S> <C> <C>
Pharmaceuticals (0.3%)
Somatix Therapy Series A-1 # 60,000 $ 3,187,500
Somatix Therapy Series A-2 # 3,185 169,203
--------------
3,356,703
--------------
Miscellaneous (0.2%)
Opal Concepts, Inc., Series B # 2,000 2,000,000
Staffing Resources, Inc. # 91,000 1,001,000
--------------
3,001,000
--------------
TOTAL PREFERRED STOCK (Cost $6,501,001) 8,357,704
--------------
WARRANTS (0.0%)
Computers
Stratasys, Inc. 11/03/98 `D' # 21,428 0
--------------
Pharmaceuticals
Somatix Therapy Corp. 06/28/98 `D' # 210,000 0
--------------
Telecommunications & Equipment
Nexus Telecommunications Ltd. 11/28/97 # 375,000 0
--------------
TOTAL WARRANTS (Cost $0) 0
--------------
<CAPTION>
SHORT-TERM INVESTMENTS (7.3%) PAR
---------
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust Co.,
dated 04/30/96 at 5.24% to be repurchased at $85,011,372 on 05/01/96.
(Collateralized by $85,735,000 U.S. Treasury Note at 6.00%,
due 08/31/97, with a market value of $86,699,519.) (Cost $84,999,000) $84,999,000 84,999,000
--------------
TOTAL INVESTMENTS AT VALUE (99.6%) (Cost $875,607,329*) 1,166,586,839
OTHER ASSETS IN EXCESS OF LIABILITIES (0.4%) 5,255,135
--------------
NET ASSETS (100.0%) (applicable to 25,741,918 Common Shares
and 8,734,067 Advisor Shares) $1,171,841,974
--------------
--------------
NET ASSET VALUE, offering and redemption price per Common Share
($880,093,012[div]25,741,918) $34.19
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($291,748,962[div]8,734,067) $33.40
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
</TABLE>
`D' Non-income producing security.
# Restricted security.
* Cost for Federal income tax purposes is $875,803,952.
See Accompanying Notes to Financial Statements.
18
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
<S> <C> <C>
COMMON STOCK (91.9%)
Argentina (3.1%)
Banco de Galicia & Buenos Aires SA 431,867 $ 2,585,661
Banco de Galicia & Buenos Aires SA ADR 139,853 3,286,546
Banco Frances del Rio de la Plata SA 586,615 5,620,650
Banco Frances del Rio de la Plata SA ADR 787,520 22,641,200
Buenos Aires Embotelladora SA 57,400 911,225
Capex SA GDR 312,500 4,473,438
Telefonica de Argentina SA ADR 906,200 26,506,350
YPF SA ADR 1,659,000 36,290,625
--------------
102,315,695
--------------
Australia (2.5%)
Lend Lease Corp., Ltd. 1,486,900 22,658,423
Niugini Mining Ltd. 1,731,250 3,943,701
Pasminco Ltd. 7,766,600 11,347,236
Qantas Airways Ltd. 4,683,500 8,314,290
Reinsurance Australia Corp., Ltd. 9,523,400 24,611,275
Woodside Petroleum Ltd. 1,977,300 11,431,325
--------------
82,306,250
--------------
Austria (2.4%)
Bohler-Uddeholm AG `D' 330,880 27,007,477
Maculan Holding AG Vorzuege # 71,360 331,321
V.A. Technologie AG 391,624 52,039,553
--------------
79,378,351
--------------
Brazil (1.0%)
Panamerica Beverages, Inc. Class A 749,200 32,871,150
--------------
Chile (0.1%)
Enersis SA ADR 161,500 4,804,625
--------------
China (0.6%)
Ek Chor China Motorcycle Co., Ltd. 65,400 964,650
Henderson China Holding Ltd. `D' 3,450,000 9,567,227
Jilin Chemical Industrial Co., Ltd. ADR `D' 465,140 9,070,230
--------------
19,602,107
--------------
Denmark (1.7%)
International Service System AS Class B 1,091,110 30,876,111
Tele Danmark AS ADR 1,042,300 26,318,075
Tele Danmark AS Class B 5,750 289,376
--------------
57,483,562
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
19
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Finland (1.3%)
Metra Oy Class A 300 $ 12,405
Metra Oy Class B 165,250 6,833,030
Metsa-Serla Class B 2,963,250 21,626,432
Valmet Corp. Class A 1,086,100 15,044,802
--------------
43,516,669
--------------
France (5.6%)
Axime (Ex Segin) 101,672 12,535,578
Cetelem 66,885 14,357,005
Fives-Lille (Compagnie De) 84,060 8,883,530
Lagardere Groupe 1,530,225 41,080,462
Scor SA 479,519 17,476,711
Total Cie Franc Des Petroles Class B 700,950 47,580,212
Total Petroles SA ADR 47,743 1,635,198
Usinor Sacilor SA `D' 2,596,550 40,180,813
--------------
183,729,509
--------------
Germany (2.8%)
Adidas AG 596,000 45,004,638
Adidas AG ADS 185,000 7,027,225
SGL Carbon AG 432,040 40,356,470
--------------
92,388,333
--------------
Hong Kong (4.3%)
Citic Pacific Ltd. 13,646,000 53,631,338
Hong Kong Land Holdings Ltd. ADR 1,246,600 13,338,620
Hong Kong Land Holdings Ltd. 7,300,000 15,622,000
HSBC Holdings PLC 1,232,869 18,409,356
Jardine Matheson Holdings Ltd. ADR 5,282,758 42,262,064
--------------
143,263,378
--------------
India (3.1%)
Associated Cement Companies Ltd. 25,700 3,021,557
Bharat Petroleum Corp., Ltd. 69,800 738,678
Hindalco Industries Ltd. 236,800 8,959,814
Hindalco Industries Ltd. GDR 591,050 26,153,963
India Cements Ltd. 99,650 455,056
Reliance Industries Ltd. 3,298,250 24,911,398
Reliance Industries Ltd. GDS 332,100 5,479,650
State Bank of India 2,807,300 24,703,263
The India Fund, Inc. `D' 655,900 7,296,888
--------------
101,720,267
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
20
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Indonesia (1.7%)
P.T. Bank International Indonesia 2,644,250 $ 13,005,902
P.T. Bank NISP 77,000 79,211
P.T. Mulia Industrindo 4,850,200 9,355,294
P.T. Semen Gresik 2,995,000 10,366,320
P.T. Sinar Mas Multiartha `D' 547,000 697,525
P.T. Telekomunikasi Indonesia 9,365,500 15,555,642
P.T. Telekomunikasi Indonesia ADR 118,500 4,043,813
P.T. Tri Polyta Indonesia ADR 225,700 2,821,250
--------------
55,924,957
--------------
Israel (1.4%)
Ampal-American Israel Corp. Class A 1,374,000 8,072,250
ECI Telecommunications Limited Designs 1,453,500 37,972,688
--------------
46,044,938
--------------
Japan (27.8%)
Canon, Inc. 2,452,000 48,716,783
Canon, Inc. ADR 98,040 9,754,980
Daibiru Corp. 194,000 2,612,857
Daimaru, Inc. 1,096,000 8,636,928
DDI Corp. 4,402 37,801,108
East Japan Railway Co. 2,884 15,399,331
Fujitsu Ltd. 1,974,000 20,364,123
Hankyu Realty 1,368,000 13,459,165
Hitachi Ltd. 3,706,250 40,004,418
Honda Motor Co. 1,491,000 34,038,495
Itochu Corp. 1,742,000 13,261,763
Jusco Co. Ltd. 1,058,000 32,743,529
Kao Corp. 500 6,686
Kawasaki Heavy Industries 1,450,000 7,493,075
Keyence Corp. 75,600 9,965,422
Kirin Beverage Corp. 124,000 1,752,985
Kyocera Corp. 175,000 13,172,223
Mitsubishi Corp. 1,022,000 14,545,611
Mitsubishi Estate Co., Ltd. 1,901,000 26,692,807
Mitsubishi Heavy Industries Ltd. 3,893,000 34,731,703
Murata Mfg. Co., Ltd. 301,310 11,685,152
NEC Corp. 2,084,000 26,475,499
Nicchi Co., Ltd. 475,000 7,622,505
Nikko Securities Company Ltd. 2,215,000 28,139,746
Nikon Corp. 2,039,000 27,461,935
Nippon Communication Systems Corp. 1,436,700 18,526,555
Nippon Telegraph & Telephone Corp. 6,339 49,108,533
NKK Corp. `D' 10,420,000 32,646,480
</TABLE>
See Accompanying Notes to Financial Statements.
21
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
NTT Data Communications Systems Co. 1,108 $ 38,736,078
Orix Corp. 904,100 37,393,763
Rohm Co., Ltd. 283,000 18,003,439
Shin-Etsu Chemical Co., Ltd. 585,270 12,802,257
Sony Corp. 577,300 37,497,755
Sony Corp. ADR 113,500 7,320,750
TDK Corp. 892,000 51,037,157
Toho Co., Ltd. 130,240 22,641,780
Tokyo Electron Ltd. 637,000 23,669,214
Tsuchiya Home Co. 297,620 5,827,882
Uny Co., Ltd. 1,196,500 23,200,831
Yokogawa Electric 2,832,000 33,002,579
York-Benimaru Co., Ltd. 505,900 20,295,921
--------------
918,249,803
--------------
Malaysia (0.3%)
Land and General BHD 942,000 2,512,957
Westmont Industries BHD 1,732,000 3,751,926
Westmont Industries BHD Class A 2,424,800 5,058,151
--------------
11,323,034
--------------
Mexico (0.5%)
Gruma SA de CV Class B 4,094,000 16,552,561
--------------
New Zealand (5.1%)
Brierley Investments Ltd. 45,756,904 43,040,866
Fletcher Challenge Building `D' 5,826,422 13,801,453
Fletcher Challenge Energy `D' 2,512,422 5,382,090
Fletcher Challenge Forestry 20,017,023 25,838,133
Fletcher Challenge Paper `D' 5,024,844 10,350,173
Lion Nathan Ltd. 16,014,300 39,913,369
Sky City Ltd. 4,734,425 20,121,562
Wrightson Ltd. 14,548,459 10,388,531
--------------
168,836,177
--------------
Norway (0.7%)
Norsk Hydro AS ADR 462,022 21,253,012
--------------
Pakistan (0.3%)
Pakistan Telecommunications Corp. `D' 1,430 142,526
Pakistan Telecommunications Corp. GDR `D' 83,900 8,641,700
--------------
8,784,226
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
22
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Portugal (1.0%)
Portugal Telecom SA 566,500 $ 12,319,299
Portugal Telecom SA ADR 984,600 21,291,975
--------------
33,611,274
--------------
Singapore (1.5%)
DBS Land Ltd. 4,806,000 19,493,489
Development Bank of Singapore Ltd. 1,780,250 22,549,242
Development Bank of Singapore Ltd. ADR 79,500 4,034,625
IPC Corp., Ltd. 8,563,000 4,356,753
--------------
50,434,109
--------------
South Korea (4.8%)
Daewoo Electronics Co., Ltd. 1,837,050 20,065,439
Hana Bank 473,969 10,537,923
Hanil Bank 2,520,782 35,236,529
Inchon Iron & Steel Co., Ltd. 21,444 697,172
Inchon Iron & Steel Co., Ltd. New 6,143 181,567
Korea Europe Fund Ltd. 1,210 5,523,650
Korea Long Term Credit Bank 285,275 9,078,981
Korea Mobile Telecommunications Corp. 2,400 336,284
L.G. Construction Ltd. 309,170 7,866,315
Mando Machinery Corp. 40,000 2,270,162
Samsung Electronics Co., Ltd. 207,568 28,273,138
Samsung Electronics Co., Ltd. GDR 92,877 3,807,963
Samsung Electronics Co., Ltd. GDR 52,719 3,993,457
Samsung Heavy Industries Co., Ltd. 500,703 10,616,293
Ssangyong Investment & Securities Co., Ltd. `D' 822,280 19,547,905
--------------
158,032,778
--------------
Spain (3.1%)
Banco de Santander 154,866 7,201,086
Banco de Santander ADR 1,202,700 56,376,563
Iberdrola SA 102,000 999,135
Repsol SA ADR 984,700 36,433,900
--------------
101,010,684
--------------
Sweden (2.6%)
Asea AB Series B 266,500 27,019,555
Astra AB Series B 1,328,400 58,629,776
--------------
85,649,331
--------------
Switzerland (1.3%)
BBC Brown Boveri AG 23,508 28,333,845
Danzas Holding AG 12,824 14,723,010
--------------
43,056,855
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
23
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Taiwan (4.3%)
China Steel Corp. 50,010,000 $ 46,937,870
Grand Pacific Fund 2,872,000 792,815
Hocheng Group Corp. 4,796,000 10,238,434
Kwang Hua Growth Fund 6,346,000 2,359,108
Taiwan Semiconductor Mfg. Co. 5,648,000 21,412,050
Ton Yi Industrial Corp. 14,396,080 20,664,990
Yang Ming Marine Transport Corp. 26,334,000 37,607,538
--------------
140,012,805
--------------
Thailand (1.3%)
Bangkok Bank Public Co., Ltd. 637,900 9,272,097
Industrial Finance Corp. of Thailand 6,407,400 25,955,314
Ruam Pattana Fund II 435,000 285,048
Thai Military Bank Ltd. 1,338,400 6,484,702
--------------
41,997,161
--------------
United Kingdom (5.7%)
AAF Industries PLC `D' 847,750 369,656
British Air Authority PLC 3,944,733 32,444,214
Cookson Group PLC 4,625,200 21,906,520
Grand Metropolitan PLC 3,100,600 20,373,212
Grand Metropolitan PLC ADR 123,000 3,274,875
London Pacific Group, Ltd. 3,005,000 11,476,528
Prudential Corp. PLC 2,421,488 16,657,343
Reckitt & Colman PLC 2,414,662 26,431,393
Rolls-Royce PLC 7,516,000 26,783,507
Singer and Friedlander Group PLC 9,093,000 15,176,181
Takare PLC 5,849,900 13,193,864
Trio Holdings PLC `D' 7,868,850 828,212
--------------
188,915,505
--------------
Zimbabwe (0.0%)
Delta Corp., Ltd. 185,000 454,764
--------------
TOTAL COMMON STOCK (Cost $2,637,527,701) 3,033,523,870
--------------
PREFERRED STOCK (0.4%)
Austria (0.0%)
Maculan Holdings AG Vorzuege # 113,775 528,252
--------------
South Korea (0.3%)
Mando Machinery Corp. 110,000 3,109,740
Samsung Electronics Co., Ltd. 87,548 7,310,832
--------------
10,420,572
--------------
United Kingdom (0.1%)
Singer & Friedlander Group PLC, 8.50% Convertible 1,435,737 2,806,406
--------------
TOTAL PREFERRED STOCK (Cost $20,968,071) 13,755,230
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
24
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- --------------
RIGHTS & WARRANTS (0.1%)
<S> <C> <C>
Hong Kong (0.0%)
Jardine Strategic Holdings Ltd. Wts., 05/02/98 `D' 2,115,400 $ 803,852
--------------
Israel (0.0%)
Ampal-American Israel Corp. Class A Wts., 01/31/99 `D' 455,000 142,188
--------------
Japan (0.1%)
Bandai Industries Wts., 11/04/97 `D' 1,166 1,617,825
--------------
South Korea (0.0%)
Samsung Heavy Industries Rts., 05/14/96 `D' 48,567 368,215
--------------
Switzerland (0.0%)
Danzas Holding AG Wts., 08/02/96 `D' 9,050 30,988
--------------
TOTAL RIGHTS & WARRANTS (Cost $3,567,346) 2,963,068
--------------
CALL OPTIONS (0.8%)
Japan (0.4%)
Topix Index, 05/10/96, (Strike Price $1,323.64) `D' 20,842 8,102,953
Topix Index, 06/14/96, (Strike Price $1,275.00) `D' 11,519 4,979,894
--------------
13,082,847
--------------
Switzerland (0.0%)
Danzas Holding AG, 08/22/96, (Strike Price 12.50 SFr) `D' 1,000 34,241
--------------
Taiwan (0.4%)
Taiwan Weighted Index, 07/11/96, (Strike Price $183.42) `D' 103,713 4,589,279
Taiwan Weighted Index, 07/16/96, (Strike Price $184.01) `D' 108,132 4,753,486
Taiwan Weighted Index, 08/02/96, (Strike Price $174.89) `D' 103,319 5,464,542
--------------
14,807,307
--------------
TOTAL CALL OPTIONS (Cost $9,040,332) 27,924,395
--------------
</TABLE>
<TABLE>
<CAPTION>
PAR =
-------------
<S> <C> <C>
CONVERTIBLE BONDS/NOTES (1.4%)
Argentina (0.3%)
Banco de Galicia & Buenos Aires SA 7.00%, 08/01/02 $ 7,648,000 $ 8,030,400
--------------
Japan (0.9%)
Matsushita Electric Works Ltd. 2.70%, 05/31/02 (A) 2,465,000,000 29,879,502
--------------
New Zealand (0.0%)
Brierley Investments Ltd. 9.0%, 06/30/98 (B) 1,314,875 1,155,575
--------------
Thailand (0.2%)
Bangkok Bank Public Co. Ltd., 3.25%, 03/03/04 4,800,000 5,928,000
--------------
TOTAL CONVERTIBLE BONDS/NOTES (Cost $39,634,077) 44,993,477
--------------
<CAPTION>
SHORT-TERM INVESTMENTS (3.5%)
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust,
dated 04/30/96 at 5.24% to be repurchased at $115,507,810 on 05/01/96.
(Collateralized by $120,515,000 U.S. Treasury Bill due 10/03/96.
Market value of collateral is $117,803,413.) (Cost $115,491,000) 115,491,000 115,491,000
--------------
</TABLE>
See Accompanying Notes to Financial Statements.
25
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE
--------------
<S> <C> <C>
TOTAL INVESTMENTS AT VALUE (98.1%) (Cost $2,826,228,527*) $3,238,651,040
OTHER ASSETS IN EXCESS OF LIABILITIES (1.9%) 61,838,655
--------------
NET ASSETS (100.0%) (applicable to 131,357,670 Common Shares and
21,093,941 Advisor Shares) $3,300,489,695
--------------
--------------
NET ASSET VALUE, offering and redemption price per Common Share
($2,846,760,540[div]131,357,670) $21.67
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($453,729,155[div]21,093,941) $21.51
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
ADR = American Depository Receipt
GDR = Global Depository Receipt
GDS = Global Depository Share
`D' Non-income producing security.
* Cost for Federal income tax purposes is $2,826,682,277.
# Illiquid security.
= Unless otherwise indicated below, all bonds are denominated in U.S. Dollars.
(A) Denominated in Japanese Yen.
(B) Denominated in New Zealand Dollars.
See Accompanying Notes to Financial Statements.
26
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (92.6%)
Agriculture (1.2%)
Kaneko Seeds Co. 200,000 $ 2,808,291
------------
Automobiles (0.5%)
Aucnet, Inc. 23,000 1,063,330
------------
Automotive Parts-Equipment (1.0%)
Royal Ltd. 66,000 2,256,949
------------
Banking (4.6%)
Ace Koeki Co., Ltd. 275,000 5,384,946
Yutaka Shoji Co., Ltd. 165,000 5,579,329
------------
10,964,275
------------
Broadcasting (1.0%)
Horipro, Inc. 150,000 2,464,419
------------
Building Materials (0.4%)
Emoto Industry Co. 86,000 952,909
------------
Commercial Services (1.1%)
Nac Co., Ltd. 80,300 2,554,198
------------
Computers (2.4%)
Daiwabo Information System Co. 22,000 493,839
I.O. Data Device, Inc. 70,000 3,376,636
Mars Engineering Corp. 22,700 1,656,586
Melco, Inc. 6,560 274,456
------------
5,801,517
------------
Construction (2.6%)
Kawasho Lease System Corp. 104,390 1,296,275
Nishio Rent All Co., Ltd. 46,000 1,164,390
Onoken Co., Ltd. 44,000 1,008,692
Sacos Corp. 89,000 1,666,253
Yamazaki Construction Co., Ltd. 66,000 1,065,431
------------
6,201,041
------------
Electrical Equipment (1.3%)
Hirose Electric 50,000 3,085,299
------------
</TABLE>
See Accompanying Notes to Financial Statements.
27
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Electronics (7.5%)
Ado Electronic Industrial Co., Ltd. 53,000 $ 1,366,893
Apic Yamada Corp. 85,600 2,665,546
Easton Co., Ltd. 99,000 2,638,361
Katsuragawa Electric Co., Ltd. 130,000 1,639,125
Kel Corp. 130,000 1,986,818
New Japan Radio Co., Ltd. 210,000 2,828,350
Riso Kagaku Corp. 10,000 848,219
Yamaichi Electronics Co., Ltd. 135,000 3,868,564
------------
17,841,876
------------
Engineering & Construction (2.9%)
Sawako Corp. 200,000 6,304,327
Taisei Oncho Co., Ltd. 52,000 730,156
------------
7,034,483
------------
Financial Services (7.2%)
Aeon Credit Service Co., Ltd. 44,000 2,420,862
Daiichi Commodities Co., Ltd. 20,000 290,381
Japan Associated Finance Co., Ltd. 20,000 2,483,523
Okato Shoji Co., Ltd. 167,000 3,684,879
Shohko Fund & Co., Ltd. 32,200 8,396,791
------------
17,276,436
------------
Foods (2.3%)
Mefos Ltd. 100,000 2,770,083
Warabeya Nichiyo Co., Ltd. 86,000 1,396,504
Yoshinoya D&C Co., Ltd. 100 1,423,250
------------
5,589,837
------------
Food Processing (3.5%)
Ariake Japan Co., Ltd. 91,200 3,136,116
OK Food Industry Co., Ltd. `D' 319,000 1,072,576
Sato Foods Industries Co., Ltd. 118,000 2,011,940
Taiyo Kagaku Co., Ltd. 160,000 2,170,217
------------
8,390,849
------------
Healthcare (2.5%)
Nichii Gakkan Co. 110,000 5,915,560
------------
Home Appliances (5.0%)
Yamada Denki Co., Ltd. 527,000 11,930,366
------------
Home Furnishings/Housewares (0.1%)
Hikari Furniture Co., Ltd. 20,000 280,829
------------
</TABLE>
See Accompanying Notes to Financial Statements.
28
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Machinery (4.6%)
Misumi Corp. 180,000 $ 6,172,509
Nissei ASB Machine Co., Ltd. `D' 129,000 2,267,265
THK Co., Ltd. 100,000 2,607,699
------------
11,047,473
------------
Manufacturing (14.1%)
Disco Corp. 147,000 4,886,427
Fujimi, Inc. 100,100 6,071,592
Jamco Corp. 250,000 4,059,605
Kadoya Sesame Mills, Inc. 150,000 1,962,938
Maki Manufacturing Co., Ltd. 50,000 730,729
Matsumoto Kenko Co., Ltd. 1,200 39,889
Nippon Steel Semiconductor Co. 150 3,123,507
Nitori Co. 50,000 1,122,361
Nitta Industrial Corp. 400,000 7,030,280
Nitto Kohki Co., Ltd. 55,000 2,232,782
Ricoh Seiki Co., Ltd. 45,000 803,802
Tokyo Seimitsu Co. Ltd. 90,000 1,650,587
------------
33,714,499
------------
Medical & Medical Services (0.7%)
Getz Brothers Co., Ltd. 97,500 1,685,691
------------
Metals & Mining (0.6%)
Sumitomo Metal Mining Co. 150,000 1,518,770
------------
Pharmaceuticals (1.2%)
Fuji Pharmaceutical Co., Ltd. 136,000 1,649,823
Seikagaku Corp. 86,000 1,314,357
------------
2,964,180
------------
Printing & Publishing (0.6%)
Takeda Printing Co., Ltd. 100,000 1,499,666
------------
Restaurants (5.7%)
Aim Services Co., Ltd. 25,000 597,001
Doutor Coffee Co., Ltd. 100,000 3,916,324
Jonathan's Co., Ltd. 43,000 661,286
Plenus Co., Ltd. 80,000 3,347,025
Sagami Chain Co., Ltd. 150,000 2,665,011
Saint Marc Co., Ltd. 44,400 2,548,897
------------
13,735,544
------------
</TABLE>
See Accompanying Notes to Financial Statements.
29
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Retail (11.0%)
Circle K Japan Co., Ltd. 120,000 $ 5,272,710
Daiwa Rakuda Industry Co., Ltd. 73,000 1,150,540
Fast Retailing Co., Ltd 82,200 3,297,736
Keiiyu Co., Ltd. 18,000 495,176
Kuroganeya Co., Ltd. 38,000 660,617
Ryohin Keikaku Co., Ltd. 100,000 8,931,130
Sundrug Co., Ltd. 118,000 4,767,791
Yamazawa Co., Ltd. 110,000 1,618,111
------------
26,193,811
------------
Retail Merchandising (4.7%)
Blue Grass Co., Ltd. 88,000 2,210,717
Cox Corp. 68,000 889,865
Jeans Mate Corp. 10,000 372,528
Leo Co., Ltd. 100,000 1,356,385
Nagaileben Co., Ltd. 91,000 3,737,702
Paris Miki, Inc. 34,500 1,459,882
Right On Co., Ltd. 83,000 1,205,082
------------
11,232,161
------------
Shipbuilding (1.2%)
Namura Shipbuilding Co., Ltd. 200,000 1,213,105
Sanoyas Hishino Meisho Corp. 200,000 1,721,272
------------
2,934,377
------------
Transportation (0.3%)
K.R.S. Corp. 49,000 809,724
------------
Travel (0.8%)
H.I.S. Co., Ltd. 33,000 1,941,733
------------
TOTAL COMMON STOCK (Cost $212,237,524) 221,690,093
------------
</TABLE>
See Accompanying Notes to Financial Statements.
30
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
--------- ------------
CONVERTIBLE BONDS (2.2%)
<S> <C> <C>
Japan
Softbank Corp. 0.50%, 03/29/02
(Cost $5,091,406) $400,000,000 $ 5,234,502
------------
<CAPTION>
SHORT-TERM INVESTMENTS (4.1%)
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust
dated 04/30/96 at 5.24% to be repurchased at $9,793,425 on 05/01/96.
(Collateralized by $9,780,000 U.S. Treasury Note 6.50%,
due 08/15/97. Market value of collateral is $9,990,466.) (Cost $9,792,000) 9,792,000 9,792,000
------------
TOTAL INVESTMENTS AT VALUE (98.9%) (Cost $227,120,930*) 236,716,595
OTHER ASSETS IN EXCESS OF LIABILITIES (1.1%) 2,645,784
------------
NET ASSETS (100.0%) (applicable to 25,378,863 Common Shares and 125 Advisor Shares) $239,362,379
------------
------------
NET ASSET VALUE, offering and redemption price per Common Share
($239,361,200[div]25,378,863) $9.43
-----
-----
NET ASSET VALUE, offering and redemption price per Advisor Share
($1,179[div]125) $9.43
-----
-----
</TABLE>
`D' Non-income producing security.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
31
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (92.2%)
Argentina (6.5%)
Banco Frances del Rio de la Plata SA ADR 5,175 $ 148,781
Buenos Aires Embotelladora SA ADR 270,000 4,286,250
Telefonica de Argentina SA ADR 131,300 3,840,525
YPF SA ADR 173,800 3,801,875
------------
12,077,431
------------
Australia (5.8%)
Accor Asia Pacific Co., Ltd. 6,670,100 4,453,459
Novus Petroleum Ltd. 4,449,100 6,360,478
------------
10,813,937
------------
Brazil (1.7%)
Panamerican Beverages, Inc. Class A 74,600 3,273,075
------------
Chile (6.6%)
Banco de A. Edwards ADR 170,500 3,601,813
Compania de Telecommunicacion de Chile SA ADR 29,550 2,696,438
Enersis SA ADR 170,900 5,084,275
Maderas & Sinteticos SA ADR 60,000 952,500
------------
12,335,026
------------
China (2.5%)
Ek Chor China Motorcycle Co., Ltd. 191,400 2,823,150
Guangzhou Shipyard International 94,000 22,604
Henderson China Holding Ltd. `D' 270,000 748,739
Jardine Fleming China Region Fund, Inc. 27,000 307,125
Jilin Chemical Industrial Co., Ltd. ADR 5,000 97,500
Shanghai Haixing Shipping 8,076,000 595,129
------------
4,594,247
------------
Finland (1.3%)
Hartwall Oy AB 117,300 2,425,157
------------
Hong Kong (7.4%)
Cathay Pacific Airways 297,000 518,358
China Hong Kong Photo Products Holdings Ltd. 2,394,000 1,183,846
Citic Pacific Ltd. 492,800 1,936,796
Hong Kong Land Holdings Ltd. 3,369,000 7,209,660
Hong Kong Land Holdings Ltd. ADR 150,700 1,612,490
Jardine Matheson Holdings Ltd. 163,672 1,309,376
------------
13,770,526
------------
Hungary (0.2%)
Borsodchem GDR `D' 27,000 481,950
------------
</TABLE>
See Accompanying Notes to Financial Statements.
32
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
India (9.0%)
Bombay Suburban Electric Supply Ltd. GDR `D' 206,000 $ 4,121,030
Grasim Industries Ltd. GDR 125,000 2,547,500
Hindalco Industries Ltd. GDR 16,100 712,425
Indo Gulf Fertilisers and Chemicals Corp., Ltd. GDR `D' 308,000 577,500
Indorama Synthetics GDR 364,000 5,050,500
Reliance Industries Ltd. GDS 218,700 3,608,550
The India Fund, Inc. `D' 8,500 94,563
------------
16,712,068
------------
Indonesia (6.4%)
P.T. Bank International Indonesia 40,750 200,431
P.T. Bank NISP 1,066,000 1,096,614
P.T. Dynaplast Ltd. Foreign Shares 2,044,500 1,774,588
P.T. Dynaplast Ltd. Local Shares 59,500 54,195
P.T. Mulia Industrindo 185,250 357,319
P.T. Semen Cibinong 589,500 1,743,485
P.T. Sinar Mas Multiartha `D' 1,665,000 2,123,178
P.T. Steady Safe Transportation Service 3,060,000 4,557,865
------------
11,907,675
------------
Israel (2.2%)
Ampal-American Israel Corp. Class A 4,200 24,675
Clal Electronics Industries Ltd. 6,527 825,311
ECI Telecommunications Limited Designs 125,200 3,270,850
------------
4,120,836
------------
Malaysia (2.3%)
Land and General BHD 1,599,500 4,266,959
------------
Mexico (1.2%)
Gruma SA de CV Class B 546,700 2,173,538
------------
Morocco (0.8%)
Banq Marocaine Commerce GDR `D' 100,000 1,512,500
------------
Pakistan (0.1%)
Pakistan Telecommunications Corp. `D' 1,180 121,540
------------
Philippines (2.4%)
Millicom International Cellular SA ADR `D' 93,300 4,408,425
------------
Portugal (4.6%)
Portugal Telecom SA 33,200 721,978
Portugal Telecom SA ADR 313,600 6,781,600
Sonae Investimentos Sociedade Gestora de Participacoes Sociais SA 46,900 1,084,170
------------
8,587,748
------------
</TABLE>
See Accompanying Notes to Financial Statements.
33
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Singapore (0.9%)
DBS Land Ltd. 385,000 $ 1,561,588
Development Bank of Singapore Ltd. 4,000 50,665
------------
1,612,253
------------
South Korea (16.8%)
Chonggu Housing and Construction 184,540 5,264,441
Daewoo Electronics Co., Ltd. 607,680 6,637,471
Daewoo Heavy Industries 5,240 58,245
Hana Bank 13,156 292,502
Hanil Bank 38,900 543,760
Inchon Iron & Steel Co., Ltd. 179,496 5,835,581
Inchon Iron & Steel Co., Ltd. New 19,370 572,488
Keyang Electric Machinery Co. 43,430 1,378,464
Korea Long Term Credit Bank 41,910 1,333,801
L.G. Construction Co., Ltd. 40,200 1,022,822
Mando Machinery Corp. 2,500 141,885
Samsung Electronics Co., Ltd. 32,890 4,480,005
Samsung Electronics Co., Ltd. GDR 3,682 278,912
Ssangyong Investment & Securities Co., Ltd. `D' 151,800 3,608,712
------------
31,449,089
------------
Taiwan (10.0%)
China Steel Corp. 5,855,000 5,495,326
GP-Taiwan Index Fund `D' 180,000 173,700
Hocheng Group Corp. 1,113,000 2,376,017
Phoenixtec Power Co., Ltd. `D' 2,887,000 6,163,127
Taiwan Semiconductor Mfg., Co. 42,000 159,226
Ton Yi Industrial Corp. 2,024,400 2,905,944
Yang Ming Marine Transport Corp. 972,000 1,388,111
------------
18,661,451
------------
Thailand (3.5%)
Bangkok Bank Public Co., Ltd. 165,100 2,399,786
First Bangkok City Bank Public Co., Ltd. 225,000 446,783
Industrial Finance Corp. of Thailand 74,900 303,407
International Cosmetics Public Co., Ltd. 136,100 1,189,118
Loxley Public Co., Ltd. 71,500 1,016,561
Matichon Public Co., Ltd. 49,500 384,323
Ruam Pattana Fund II 770,500 504,895
Thai Military Bank Ltd. 76,000 368,229
------------
6,613,102
------------
TOTAL COMMON STOCK (Cost $157,023,639) 171,918,533
------------
</TABLE>
See Accompanying Notes to Financial Statements.
34
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
PREFERRED STOCK (0.6%)
<S> <C> <C>
South Korea
Keyang Electronic Machinery Co. 4,200 $ 58,828
Samsung Electronics Co., Ltd. 13,215 1,103,543
------------
1,162,371
------------
TOTAL PREFERRED STOCK (Cost $1,171,921) 1,162,371
------------
STOCK WARRANTS (0.0%)
Hong Kong
Jardine Strategic Holdings, 05/02/98 `D'
(Cost $10,610) 21,000 7,980
------------
CALL OPTIONS (0.6%)
Taiwan
Taiwan Weighted Index, 07/11/96, (Strike Price $183.42) `D' 11,394 504,178
Taiwan Weighted Index, 08/02/96, (Strike Price $174.89) `D' 11,323 598,853
------------
1,103,031
------------
TOTAL CALL OPTIONS (Cost $400,000) 1,103,031
------------
<CAPTION>
PAR
---------
<S> <C> <C>
CONVERTIBLE BONDS/NOTES (1.9%)
Argentina (0.1%)
Banco de Galicia & Buenos Aires SA 7.00%, 08/01/02 $ 101,000 106,050
------------
Taiwan (0.5%)
President Enterprises 0.00%, 07/22/01 640,000 900,800
------------
Thailand (1.3%)
Bangkok Bank Public Co., Ltd. 3.25%, 03/03/04 2,000,000 2,470,000
------------
TOTAL CONVERTIBLE BONDS/NOTES (Cost $3,300,287) 3,476,850
------------
</TABLE>
See Accompanying Notes to Financial Statements.
35
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
--------- ------------
SHORT-TERM INVESTMENTS (6.9%)
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust Co.
dated 04/30/96 at 5.24% to be repurchased at $12,916,880 on 05/01/96.
(Collateralized by $12,900,000 U.S. Treasury Note 6.50%,
due 08/15/97. Market value of collateral is $13,177,608.) (Cost $12,915,000) $12,915,000 $ 12,915,000
------------
TOTAL INVESTMENTS AT VALUE (102.2%) (Cost $174,821,457*) 190,583,765
OTHER LIABILITIES IN EXCESS OF ASSETS (2.2%) (4,036,484)
------------
NET ASSETS (100.0%) (applicable to 13,587,098 Common Shares and
123 Advisor Shares) $186,547,281
------------
------------
NET ASSET VALUE, offering and redemption price per Common Share
($186,545,590[div]13,587,098) $13.73
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($1,691[div]123) $13.75
------
------
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<C> <S>
ADR = American Depository Receipt
GDR = Global Depository Receipt
GDS = Global Depository Share
</TABLE>
`D' Non-income producing security.
* Cost for Federal income tax purposes is $174,822,992.
See Accompanying Notes to Financial Statements.
36
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS POST-VENTURE CAPITAL FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
<S> <C> <C>
COMMON STOCK (92.6%)
Business Services (12.9%)
COHR, Inc. `D' 100,000 $ 2,225,000
Daisytek International Corp. `D' 30,200 1,230,650
Data Processing Resources Corp. `D' 8,000 202,000
DST Systems, Inc. `D' 29,000 1,065,750
Eagle River Interactive, Inc. `D' 83,000 1,784,500
Housecall Medical Resources, Inc. `D' 68,000 1,479,000
LanVision Systems, Inc. `D' 25,500 468,563
On Assignment, Inc. `D' 30,100 997,062
Physician Support Systems, Inc. `D' 69,000 1,690,500
PMT Services, Inc. `D' 15,000 433,125
QuickResponse Services, Inc. `D' 30,000 877,500
SCB Computer Technology, Inc. `D' 53,000 1,404,500
Staffing Resources, Inc. `D' # 4,000 44,000
The Profit Recovery Group International, Inc. `D' 40,000 795,000
Wilmar Industries, Inc. `D' 34,500 819,375
------------
15,516,525
------------
Commercial Services (2.3%)
Emcare Holdings, Inc. `D' 79,500 2,226,000
Phymatrix, Inc. `D' 26,000 494,000
------------
2,720,000
------------
Communications & Media (2.4%)
America Online, Inc. `D' 25,000 1,600,000
Chancellor Broadcasting Corp. Class A `D' 15,000 382,500
K-III Communications Corp. `D' 68,000 858,500
------------
2,841,000
------------
Computers (20.4%)
Advent Software, Inc. `D' 2,500 66,250
Atria Software, Inc. `D' 11,000 599,500
Avant Corp. `D' 45,000 967,500
Axent Technologies, Inc. `D' 62,000 1,116,000
BMC Software, Inc. `D' 7,500 456,563
Citrix Systems, Inc. `D' 5,000 390,000
Clarify, Inc. `D' 26,500 1,056,687
Continuum, Inc. `D' 18,000 1,026,000
Epic Design Technology, Inc. `D' 38,000 1,301,500
FileNet Corp. `D' 29,000 1,624,000
Fore Systems, Inc. `D' 21,000 1,659,000
Hyperion Software Corp. `D' 77,000 962,500
I2 Technologies, Inc. `D' 9,000 366,750
Macromedia, Inc. `D' 41,000 1,545,187
McAfee Associates, Inc. `D' 37,000 2,266,250
</TABLE>
See Accompanying Notes to Financial Statements.
37
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS POST-VENTURE CAPITAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Planning Sciences International PLC ADR `D' 1,600 $ 38,600
Project Software & Development, Inc. `D' 34,000 1,190,000
Pure Software, Inc. `D' 32,000 1,272,000
Rational Software Corp. `D' 5,000 266,875
SQA, Inc. `D' 42,000 1,375,500
Synopsys, Inc. `D' 39,500 1,629,375
System Software Associates, Inc. 70,000 1,671,250
Uunet Technologies, Inc. `D' 18,000 1,032,750
Worldtalk Communications Corp. `D' 50,000 650,000
------------
24,530,037
------------
Consumer Services (0.8%)
DeVRY, Inc. `D' 27,000 1,005,750
------------
Electronics (6.4%)
Affinity Technology Group Inc. `D' 30,000 705,000
Flextronics International Ltd. `D' 46,000 1,782,500
Glenayre Technologies, Inc. `D' 40,000 1,860,000
Linear Technology Corp. 30,000 1,031,250
LSI Logic Corp. `D' 30,000 1,080,000
Xilinx, Inc. `D' 32,000 1,180,000
------------
7,638,750
------------
Financial Services (3.3%)
Compdent Corp. `D' 33,000 1,460,250
Mutual Risk Management Ltd. 26,000 1,027,000
United Companies Financial Corp. 45,000 1,440,000
------------
3,927,250
------------
Healthcare (23.5%)
Advanced Tissue Sciences, Inc. `D' 51,000 873,375
American Oncology Resources, Inc. `D' 21,000 1,002,750
Arterial Vascular Engineering, Inc. `D' 6,000 264,000
ArthroCare Corp. `D' 7,000 176,750
Endosonics Corp. `D' 59,000 1,025,125
Enterprise Systems, Inc. `D' 44,000 1,474,000
EquiMed, Inc. `D' 84,000 682,500
ESC Medical Systems Ltd. `D' 43,000 1,892,000
Health Management System, Inc. `D' 8,300 213,725
Healthsource, Inc. `D' 42,000 1,433,250
Heartport, Inc. `D' 10,000 357,500
Impath, Inc. `D' 62,000 1,085,000
Iridex Corp. `D' 94,000 1,410,000
MedCath, Inc. `D' 35,000 1,365,000
Molecular Devices Inc. `D' 63,000 866,250
</TABLE>
See Accompanying Notes to Financial Statements.
38
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS POST-VENTURE CAPITAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Neuromedical Systems, Inc. `D' 67,500 $ 1,476,563
OccuSystems, Inc. `D' 60,000 1,740,000
Orthologic Corp. `D' 49,000 1,708,875
Oxford Health Plans, Inc. `D' 32,000 1,616,000
Physician Reliance Network, Inc. `D' 26,000 1,124,500
Quorum Health Group, Inc. `D' 42,000 1,065,750
Renal Care Group, Inc. `D' 47,000 1,621,500
Thermotrex Corp. `D' 18,000 942,750
United Dental Care, Inc. `D' 27,000 1,059,750
VISX, Inc. `D' 53,000 1,815,250
------------
28,292,163
------------
Leisure & Entertainment (1.2%)
Regal Cinemas, Inc. `D' 34,000 1,385,500
------------
Lodging & Restaurants (1.2%)
Doubletree Corp. `D' 44,000 1,419,000
------------
Medical & Medical Services (0.5%)
NCS Healthcare, Inc. Class A `D' 18,000 603,000
------------
Office Equipment & Supplies (1.0%)
Viking Office Products, Inc. `D' 21,000 1,246,875
------------
Oil Services (0.8%)
Input/Output, Inc. `D' 25,600 889,600
------------
Pharmaceuticals (6.4%)
DepoTech Corp. `D' 25,000 612,500
Genzyme Corp. -- Tissue Repair Division `D' 79,100 1,087,625
Gilead Sciences, Inc. `D' 32,000 976,000
Guildford Pharmaceuticals, Inc. `D' 34,500 879,750
La Jolla Pharmaceutical Co. `D' 69,000 586,500
Ligand Pharmaceuticals, Inc. Class B `D' 44,000 643,500
Matrix Pharmaceutical, Inc. `D' 39,500 1,027,000
Pharmaceutical Product Development, Inc. `D' 13,000 549,250
Sangstat Medical Corp. `D' 67,500 1,130,625
Trex Medical `D' # 20,000 205,000
------------
7,697,750
------------
Retail (3.8%)
Baby Superstore, Inc. `D' 34,000 1,547,000
Borders Group, Inc. `D' 56,400 1,804,800
PETsMART, Inc. `D' 28,000 1,242,500
------------
4,594,300
------------
</TABLE>
See Accompanying Notes to Financial Statements.
39
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS POST-VENTURE CAPITAL FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- ------------
COMMON STOCK (CONT'D)
<S> <C> <C>
Telecommunications & Equipment (5.7%)
Ascend Communications, Inc. `D' 11,700 $ 719,550
Cascade Communications Corp. `D' 11,500 1,152,875
PictureTel Corp. `D' 49,000 1,666,000
StrataCom, Inc. `D' 14,900 774,800
U.S. Robotics Corp. `D' 16,500 2,582,250
------------
6,895,475
------------
TOTAL COMMON STOCK (Cost $94,752,261) 111,202,975
------------
<CAPTION>
SHORT-TERM INVESTMENTS (12.4%) PAR
---------
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust Co.,
dated 04/30/96 at 5.24% to be repurchased at $14,844,160 on 05/01/96.
(Collateralized by $14,975,000 U.S. Treasury Note at 6.00%,
due 08/31/97, with a market value of $15,143,469.) (Cost $14,842,000) $14,842,000 14,842,000
------------
TOTAL INVESTMENTS AT VALUE (105.0%) (Cost $109,594,261*) 126,044,975
LIABILITIES IN EXCESS OF OTHER ASSETS (5.0%) (6,013,482)
------------
NET ASSETS (100.0%) (applicable to 6,872,476 Common Shares and
119 Advisor Shares) $120,031,493
------------
------------
NET ASSET VALUE, offering and redemption price per Common Share
($120,029,421[div]6,872,476) $17.47
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($2,072[div]119) $17.41
------
------
</TABLE>
`D' Non-income producing security.
# Restricted security.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
40
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN GROWTH FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCK (98.8%)
Aerospace (1.9%)
Mitsubishi Heavy Industries Ltd. 33,000 $ 294,412
-----------
Aerospace & Defense (1.7%)
Kawasaki Heavy Industries 50,000 258,382
-----------
Automobiles (2.3%)
Honda Motor Co. 15,000 342,440
-----------
Automotive Parts-Equipment (2.4%)
Hirata Technical Co., Ltd. 11,000 192,282
Keihin Seiki Mfg. 20,000 174,802
-----------
367,084
-----------
Banking (1.0%)
Toyo Trust & Banking 14,000 152,450
-----------
Business Services (1.0%)
Funai Consulting Co. 10,000 157,608
-----------
Chemicals (4.5%)
Noritsu Koki Co., Ltd. 6,500 264,495
Shin-Etsu Chemical Co., Ltd. 12,000 262,489
Showa Highpolymer Co., Ltd. 14,000 153,787
-----------
680,771
-----------
Communications & Media (3.4%)
Hikari Tsushin, Inc.`D' 1,000 166,205
NTT Data Communications Systems Co. 10 349,604
-----------
515,809
-----------
Computers (6.0%)
I.O. Data Device, Inc. 7,000 337,664
Nippon Systemware Co., Ltd. 5,000 239,278
Tokyo Electron Ltd. 9,000 334,416
-----------
911,358
-----------
Electrical Equipment (1.7%)
Shinmei Electric Co. 13,000 260,770
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
41
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
COMMON STOCK (CONT'D)
<S> <C> <C>
Electronics (18.9%)
Advantest Corp. 7,000 $ 347,025
Anritsu Corp. 20,000 294,202
Keyence Corp. 1,500 197,727
Kyocera Corp. 2,000 150,540
NEC Corp. 25,000 317,604
Rohm Co., Ltd. 5,000 318,082
Sharp Corp. 16,000 278,155
Sony Corp. 3,000 194,861
TDK Corp. 6,000 343,299
Yamatake-Honeywell 13,000 245,869
Yokogawa Electric 15,000 174,802
-----------
2,862,166
-----------
Engineering & Construction (1.7%)
Nichiei Construction Co. 20,000 254,083
-----------
Financial Services (7.7%)
Daiwa Securities Co., Ltd. 10,000 153,787
Nikko Securities Co., Ltd 20,000 254,083
Orix Corp. 5,500 227,481
Shohko Fund & Co., Ltd. 1,100 286,847
Wako Securities 27,000 249,651
-----------
1,171,849
-----------
Industrial Mfg. & Processing (6.2%)
Denki Kogyo Co., Ltd. 20,000 217,786
Fujikura Ltd. 36,000 280,944
Kitagawa Industries Co., Ltd. 7,000 260,770
Kyoritsu Air Tech, Inc. 14,000 181,870
-----------
941,370
-----------
Machinery (Electric) (0.6%)
Sugimoto Co., Ltd. 5,000 86,446
-----------
Manufacturing (7.6%)
Kawata Manufacturing Co., Ltd. 12,000 132,964
Nikon Corp. 20,000 269,367
Nitta Industrial Corp. 16,000 281,211
Sodick`D' 13,000 166,396
Zuiko Corp. 13,000 301,748
-----------
1,151,686
-----------
Office Equipment (2.1%)
Canon, Inc. 16,000 317,891
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
42
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
COMMON STOCK (CONT'D)
<S> <C> <C>
Office Equipment & Supplies (1.2%)
King Jim Co., Ltd. 7,000 $ 180,533
-----------
Oil Services (1.3%)
Cosmo Oil Co., Ltd. 30,000 196,294
-----------
Real Estate (6.8%)
Daibiru Corp. 16,000 215,493
Hankyu Realty 27,000 265,641
Mitsubishi Estate Co., Ltd. 20,000 280,829
Tachihi Enterprise Co., Ltd. 7,000 267,456
-----------
1,029,419
-----------
Retail (3.3%)
Circle K Japan Co., Ltd. 4,600 202,121
Homac Corp. 5,600 124,100
Ryohin Keikaku Co., Ltd. 2,000 178,623
-----------
504,844
-----------
Retail Food Chains (7.0%)
Chain Store Okuwa Co., Ltd. 18,000 295,730
Jusco Co., Ltd. 10,000 309,484
Nicchii Co., Ltd. 20,000 320,948
Uny Co., Ltd. 7,000 135,734
-----------
1,061,896
-----------
Retail Merchandising (1.3%)
Isetan 13,000 192,473
-----------
Steel (1.7%)
NKK Corp.`D' 82,000 256,911
-----------
Telecommunications (1.4%)
Nippon Denwa Shisetsu 22,000 206,992
-----------
Textiles (2.1%)
Shoei Co. 25,000 312,828
-----------
Utilities-Telecommunication (2.0%)
DDI Corp. 35 300,554
-----------
TOTAL COMMON STOCK (Cost $13,740,751) 14,969,319
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
43
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN GROWTH FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PAR VALUE
--------- -----------
SHORT-TERM INVESTMENTS (3.1%)
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust
dated 04/30/96 at 5.24% to be repurchased at $467,068 on 05/01/96.
(Collateralized by $490,000 U.S. Treasury Bill due 10/03/96.
Market value of collateral is $478,975.) (Cost $467,000) $467,000 $ 467,000
-----------
TOTAL INVESTMENTS AT VALUE (101.9%) (Cost $14,207,751*) 15,436,319
OTHER LIABILITIES IN EXCESS OF ASSETS (1.9%) (284,083)
-----------
NET ASSETS (100.0%) (applicable to 1,405,618 Common Shares and 120 Advisor Shares) $15,152,236
-----------
-----------
NET ASSET VALUE, offering and redemption price per Common Share
($15,150,944[div]1,405,618) $10.78
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($1,292[div]120) $10.77
------
------
</TABLE>
`D' Non-income producing security.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
44
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE FUND
STATEMENT OF NET ASSETS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
<S> <C> <C>
COMMON STOCK (92.7%)
Aerospace & Defense (1.8%)
Tracor, Inc. `D' 24,300 $ 458,663
-----------
Banks & Savings & Loans (5.1%)
Citizens Bancorp 7,300 217,175
Cullen Frost Bankers, Inc. 6,300 310,275
Great Financial Corp. 9,000 246,375
Quaker City Bancorp Inc. `D' 35,350 510,366
-----------
1,284,191
-----------
Building & Building Materials (1.1%)
Continental Homes Holding Corp. 12,250 280,219
-----------
Capital Equipment (5.5%)
Allied Products Corp. 9,500 250,562
Applied Power, Inc. Class A 3,200 100,400
Astec Industries, Inc. `D' 48,100 487,013
Avondale Industries, Inc. `D' 28,600 546,975
-----------
1,384,950
-----------
Chemicals (1.5%)
Foamex International, Inc. `D' 31,300 387,338
-----------
Computers (2.6%)
Cylink Corp. `D' 4,000 73,000
Evans & Sutherland Computer Corp. `D' 11,800 318,600
Forte Software, Inc. `D' 3,000 185,250
Raptor Systems, Inc. `D' 2,500 82,500
-----------
659,350
-----------
Conglomerates (2.0%)
Oglebay Norton Co. 12,400 511,500
-----------
Consumer Non-Durables (10.3%)
Central Garden & Pet Co. `D' 65,700 698,062
Donnkenny, Inc. `D' 3,100 61,613
Samsonite Corp. `D' 51,300 949,050
Standex International Corp. 21,500 580,500
Westpoint Stevens, Inc. `D' 15,500 325,500
-----------
2,614,725
-----------
Consumer Services (1.9%)
York Group, Inc. `D' 25,600 470,400
-----------
Electronics (2.0%)
Larson Davis, Inc. `D' 82,800 517,500
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
45
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
COMMON STOCK (CONT'D)
<S> <C> <C>
Energy (6.0%)
Forest Oil Corp. `D' 40,900 $ 493,356
Panaco, Inc. `D' 141,600 601,800
Texas Merdian Resources Corp. `D' 41,950 440,475
-----------
1,535,631
-----------
Environmental Services (0.4%)
Layne Christensen Inc. `D' 8,200 94,300
-----------
Financial Services (11.7%)
Aames Financial Corp. 4,350 191,944
Liberty Financial Companies, Inc. 20,700 688,275
National Western Life Insurance Co. Class A `D' 6,800 455,600
Security-Connecticut Corp. 4,000 105,000
Transport Holdings, Inc. Class A `D' 14,750 626,875
Triad Guaranty, Inc. `D' 13,500 442,125
White River Corp. `D' 11,600 452,400
-----------
2,962,219
-----------
Food, Beverages & Tobacco (0.8%)
Suiza Foods Corp. `D' 15,000 213,750
-----------
Healthcare (4.6%)
CardioThoracic Systems, Inc. `D' 8,000 189,000
Hanger Orthopedic Group, Inc. `D' 107,100 455,175
Hooper Holmes, Inc. 56,100 532,950
-----------
1,177,125
-----------
Industrial Mfg. & Processing (0.9%)
Seda Special Packaging Corp. `D' 11,600 239,250
-----------
Leisure & Entertainment (3.5%)
Penske Motorsports, Inc. `D' 2,000 60,500
SCP Pool Corp. `D' 49,000 820,750
-----------
881,250
-----------
Lodging & Restaurants (4.5%)
IHOP Corp. `D' 19,050 542,925
Quantum Restaurant Group Inc. `D' 39,500 597,437
-----------
1,140,362
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
46
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
--------- -----------
COMMON STOCK (CONT'D)
<S> <C> <C>
Metals & Mining (5.4%)
Commonwealth Aluminum Corp. 28,500 $ 445,312
TVI Pacific, Inc. `D' 26,000 44,884
Universal Stainless & Alloy Products Inc. `D' 58,800 646,800
Zemex Corp. `D' 25,300 237,187
-----------
1,374,183
-----------
Oil Services (1.8%)
Belco Oil & Gas Corp. `D' 15,800 456,225
-----------
Real Estate (3.9%)
Home Properties of New York, Inc. 26,100 528,525
Jameson Inns, Inc. 48,400 471,900
-----------
1,000,425
-----------
Retail (7.3%)
Carr Gottstein Foods Co. `D' 75,650 387,706
Cole National Corp. Class A `D' 28,750 470,781
Cost Plus, Inc. `D' 5,000 118,750
Mossimo, Inc. `D' 5,000 190,000
Rhodes, Inc. `D' 39,300 442,125
Wet Seal, Inc. Class A `D' 16,600 246,925
-----------
1,856,287
-----------
Telecommunications & Equipment (0.5%)
Xylan Corp. `D' 2,000 128,125
-----------
Transportation (7.6%)
Hub Group, Inc. Class A `D' 22,900 532,425
Landstar Systems, Inc. `D' 24,850 683,375
Mark VII, Inc. `D' 5,500 110,344
MTL, Inc. `D' 37,300 620,112
-----------
1,946,256
-----------
TOTAL COMMON STOCK (Cost $21,220,988) 23,574,224
-----------
</TABLE>
See Accompanying Notes to Financial Statements.
47
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE FUND
STATEMENT OF NET ASSETS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL COMMON STOCK (CONT'D)
SHORT-TERM INVESTMENTS (16.2%) PAR VALUE
--------- -----------
<S> <C> <C>
Repurchase agreement with State Street Bank & Trust Co.,
dated 04/30/96 at 5.24% to be repurchased at $4,118,599 on 5/01/96.
(Collateralized by $4,155,000 U.S. Treasury Note at 6.00%,
due 08/31/97, with a market value of $4,201,744.) (Cost $4,118,000) $4,118,000 4,118,000
-----------
TOTAL INVESTMENTS AT VALUE (108.9%) (Cost $25,338,988*) 27,692,224
LIABILITIES IN EXCESS OF OTHER ASSETS (8.9%) (2,256,635)
-----------
NET ASSETS (100.0%) (applicable to 2,015,295 Common Shares and
120 Advisor Shares) $25,435,589
-----------
-----------
NET ASSET VALUE, offering and redemption price per Common Share
($25,434,075[div]2,015,295) $12.62
------
------
NET ASSET VALUE, offering and redemption price per Advisor Share
($1,514[div]120) $12.62
------
------
</TABLE>
`D' Non-income producing security.
* Also cost for Federal income tax purposes.
See Accompanying Notes to Financial Statements.
48
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<PAGE>
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
49
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
STATEMENTS OF OPERATIONS
For the Six Months or Period Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus
Capital Warburg Pincus Warburg Pincus Warburg Pincus
Appreciation Emerging International Japan OTC
Fund Growth Fund Equity Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,752,424 $ 1,140,311 $ 29,566,608 $ 710,893
Interest 506,008 1,770,583 2,793,960 326,883
Foreign taxes withheld 0 0 (4,398,575) (106,634)
-------------- -------------- -------------- --------------
Total investment income 2,258,432 2,910,894 27,961,993 931,142
-------------- -------------- -------------- --------------
EXPENSES:
Investment advisory 1,018,822 3,798,956 13,679,226 1,354,133
Administrative services 291,092 844,212 2,238,360 238,320
Audit 12,976 14,430 35,709 10,217
Custodian/Sub-custodian 45,511 127,462 999,377 73,878
Directors/Trustees 4,972 4,972 4,972 3,953
Distribution 0 0 0 270,825
Insurance 7,458 7,957 15,893 829
Interest 0 0 377,929 8,872
Legal 40,608 33,911 84,530 39,112
Organizational 0 0 0 21,108
Printing 12,487 23,162 77,550 8,909
Registration 30,017 64,685 271,542 74,832
Shareholder servicing 44,278 540,633 922,673 3
Transfer agent 50,290 121,667 896,518 194,945
Miscellaneous 16,951 18,299 74,186 7,246
-------------- -------------- -------------- --------------
1,575,462 5,600,346 19,678,465 2,307,182
Less fees waived and expenses reimbursed (12,074) (29,430) (108,848) (411,394)
-------------- -------------- -------------- --------------
Total expenses 1,563,388 5,570,916 19,569,617 1,895,788
-------------- -------------- -------------- --------------
Net investment income (loss) 695,044 (2,660,022) 8,392,376 (964,646)
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN FROM INVESTMENTS AND
FOREIGN CURRENCY RELATED ITEMS:
Net realized gain (loss) from security transactions 35,051,572 24,253,712 44,566,893 (1,765,836)
Net realized gain (loss) from foreign currency
related items 0 0 75,108,081 9,118,454
Net change in unrealized appreciation from
investments and foreign currency related items 8,079,386 155,554,780 279,254,351 8,251,073
-------------- -------------- -------------- --------------
Net realized and unrealized gain from investments
and foreign currency related items 43,130,958 179,808,492 398,929,325 15,603,691
-------------- -------------- -------------- --------------
Net increase in net assets resulting from operations $ 43,826,002 $177,148,470 $407,321,701 $ 14,639,045
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
50
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus Warburg Pincus Warburg Pincus
Emerging Post-Venture Japan Growth Small Company
Markets Fund Capital Fund Fund(1) Value Fund(1)
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
$ 871,861 $ 7,405 $ 20,294 $ 11,275
131,321 115,266 9,591 25,599
(115,778) 0 (3,044) 0
-------------- -------------- -------------- --------------
887,404 122,671 26,841 36,874
-------------- -------------- -------------- --------------
393,664 281,291 23,045 28,606
69,285 45,006 4,056 5,722
9,940 6,095 5,942 6,270
136,197 50,816 1,844 8,224
4,412 4,350 3,345 3,005
78,731 56,256 4,608 7,150
149 2,486 397 1,682
0 0 0 0
27,502 14,701 13,131 6,010
22,360 11,706 22,295 16,949
7,512 6,559 4,332 6,610
62,736 18,730 9,521 12,426
4 5 2 2
25,408 19,989 10,337 10,092
3,702 3,847 2,901 826
-------------- -------------- -------------- --------------
841,602 521,837 105,756 113,574
(372,478) (150,531) (73,492) (63,513)
-------------- -------------- -------------- --------------
469,124 371,306 32,264 50,061
-------------- -------------- -------------- --------------
418,280 (248,635) (5,423) (13,187)
-------------- -------------- -------------- --------------
943,653 4,199,792 (4,899) 476,234
(107,843) 0 (46,576) 0
15,766,945 16,286,273 950,715 2,353,236
-------------- -------------- -------------- --------------
16,602,755 20,486,065 899,240 2,829,470
-------------- -------------- -------------- --------------
$ 17,021,035 $ 20,237,430 $893,817 $2,816,283
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
(1) For the period December 29, 1995 (Commencement of Operations) through April
30, 1996.
See Accompanying Notes to Financial Statements.
51
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Six Months or Period Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus Warburg Pincus
Capital Appreciation Fund Emerging Growth Fund International Equity Fund
-------------------------------- -------------------------------- --------------------------------
For the For the For the
Six Months Six Months Six Months
Ended For the Year Ended For the Year Ended For the Year
April 30, 1996 Ended April 30, 1996 Ended April 30, 1996 Ended
(Unaudited) October 31, 1995 (Unaudited) October 31, 1995 (Unaudited) October 31, 1995
-------------- ---------------- -------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income
(loss) $ 695,044 $ 563,484 $ (2,660,022) $ (2,982,589) $ 8,392,376 $ 12,746,935
Net realized gain
(loss) from
security
transactions 35,051,572 31,649,453 24,253,712 49,113,782 44,566,893 (34,444,203)
Net realized gain
from foreign
currency related
items 0 0 0 0 75,108,081 16,792,905
Net change in
unrealized
appreciation
(depreciation) from
investments and
foreign currency
related items 8,079,386 12,386,702 155,554,780 84,670,426 279,254,351 (4,675,049)
-------------- ---------------- -------------- ---------------- -------------- ----------------
Net increase
(decrease) in
net assets
resulting from
operations 43,826,002 44,599,639 177,148,470 130,801,619 407,321,701 (9,579,412)
-------------- ---------------- -------------- ---------------- -------------- ----------------
FROM DISTRIBUTIONS:
Dividends from net
investment income:
Common Shares (205,824) (563,484) 0 0 (61,542,400) (11,671,023)
Advisor Shares 0 0 0 0 (8,824,069) (629,473)
Distributions from
capital gains:
Common Shares (29,718,914) (10,419,627) (29,520,528) 0 0 (42,332,078)
Advisor Shares (2,066,408) (575,892) (10,992,686) 0 0 (5,756,403)
-------------- ---------------- -------------- ---------------- -------------- ----------------
Net decrease from
distributions (31,991,146) (11,559,003) (40,513,214) 0 (70,366,469) (60,388,977)
-------------- ---------------- -------------- ---------------- -------------- ----------------
FROM CAPITAL SHARE
TRANSACTIONS:
Proceeds from sale of
shares 89,052,368 88,963,455 465,672,295 335,569,078 817,778,154 1,383,361,959
Reinvested dividends 31,176,989 11,246,752 38,944,251 0 62,023,115 54,872,977
Net asset value of
shares redeemed (38,573,371) (53,459,471) (124,172,439) (116,280,844) (302,210,653) (715,598,203)
-------------- ---------------- -------------- ---------------- -------------- ----------------
Net increase in
net assets from
capital share
transactions 81,655,986 46,750,736 380,444,107 219,288,234 577,590,616 722,636,733
-------------- ---------------- -------------- ---------------- -------------- ----------------
Net increase in
net assets 93,490,842 79,791,372 517,079,363 350,089,853 914,545,848 652,668,344
NET ASSETS:
Beginning of period 247,305,865 167,514,493 654,762,611 304,672,758 2,385,943,847 1,733,275,503
-------------- ---------------- -------------- ---------------- -------------- ----------------
End of period $340,796,707 $247,305,865 $1,171,841,974 $654,762,611 $3,300,489,695 $2,385,943,847
-------------- ---------------- -------------- ---------------- -------------- ----------------
-------------- ---------------- -------------- ---------------- -------------- ----------------
</TABLE>
52
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus Warburg Pincus Warburg Pincus
Japan OTC Fund Emerging Markets Fund Post-Venture Capital Fund
-------------------------------- -------------------------------- --------------------------------
For the Period For the Period
December 30, September 29,
For the For the 1994 For the 1995
Six Months Six Months (Commencement Six Months (Commencement
Ended For the Year Ended of Operations) Ended of Operations)
April 30, 1996 Ended April 30, 1996 through April 30, 1996 through
(Unaudited) October 31, 1995 (Unaudited) October 31, 1995 (Unaudited) October 31, 1995
-------------- ---------------- -------------- ---------------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
$ (964,646) $ (73,801) $ 418,280 $ 29,534 $ (248,635) $ 356
(1,765,836) (4,629,196) 943,653 102,219 4,199,792 (26,884)
9,118,454 7,895,010 (107,843) (4,992) 0 0
8,251,073 (195,368) 15,766,945 (9,058) 16,286,273 164,441
-------------- ---------------- -------------- ---------------- -------------- ----------------
14,639,045 2,996,645 17,021,035 117,703 20,237,430 137,913
-------------- ---------------- -------------- ---------------- -------------- ----------------
(8,403,516) 0 (114,242) (14,321) 0 0
(43) 0 (6) (3) 0 0
0 0 (103,802) 0 0 0
0 0 (8) 0 0 0
-------------- ---------------- -------------- ---------------- -------------- ----------------
(8,403,559) 0 (218,058) (14,324) 0 0
-------------- ---------------- -------------- ---------------- -------------- ----------------
177,370,926 200,565,875 176,191,838 7,753,908 108,506,952 2,792,403
7,560,310 0 191,486 13,802 0 0
(130,373,825) (44,871,674) (13,419,949) (1,191,160) (11,738,318) (4,887)
-------------- ---------------- -------------- ---------------- -------------- ----------------
54,557,411 155,694,201 162,963,375 6,576,550 96,768,634 2,787,516
-------------- ---------------- -------------- ---------------- -------------- ----------------
60,792,897 158,690,846 179,766,352 6,679,929 117,006,064 2,925,429
178,569,482 19,878,636 6,780,929 101,000 3,025,429 100,000
-------------- ---------------- -------------- ---------------- -------------- ----------------
$239,362,379 $178,569,482 $ 186,547,281 $ 6,780,929 $ 120,031,493 $ 3,025,429
-------------- ---------------- -------------- ---------------- -------------- ----------------
-------------- ---------------- -------------- ---------------- -------------- ----------------
</TABLE>
See Accompanying Notes to Financial Statements.
53
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
For the Six Months or Period Ended April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Warburg Pincus
Warburg Pincus Small Company
Japan Growth Fund Value Fund
----------------- -----------------
For the Period For the Period
December 29, 1995 December 29, 1995
(Commencement (Commencement
of Operations) of Operations)
through through
April 30, 1996 April 30, 1996
(Unaudited) (Unaudited)
----------------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment loss $ (5,423) $ (13,187)
Net realized gain (loss) from security transactions (4,899) 476,234
Net realized gain (loss) from foreign currency related items (46,576) 0
Net change in unrealized appreciation from investments and foreign
currency related items 950,715 2,353,236
----------------- -----------------
Net increase in net assets resulting from operations 893,817 2,816,283
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from sale of shares 15,808,878 22,657,465
Reinvested dividends 0 0
Net asset value of shares redeemed (1,650,459) (138,159)
----------------- -----------------
Net increase in net assets from capital share transactions 14,158,419 22,519,306
----------------- -----------------
Net increase in net assets 15,052,236 25,335,589
NET ASSETS:
Beginning of period 100,000 100,000
----------------- -----------------
End of period $15,152,236 $25,435,589
----------------- -----------------
----------------- -----------------
</TABLE>
See Accompanying Notes to Financial Statements.
54
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS CAPITAL APPRECIATION FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six April 4, 1991
Months Ended (Initial
April 30, For the Year Ended October 31, Issuance)
1996 --------------------------------- through
(Unaudited) 1995 1994 1993 1992 October 31, 1991
------------ ------ ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 16.26 $14.22 $15.28 $13.28 $12.16 $12.04
------------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss) .01 .00 (.08) .00 (.01) .05
Net Gain on Securities (both realized and unrealized) 2.39 3.02 .23 2.76 1.20 .13
------------ ------ ------ ------ ------ ------
Total from Investment Operations 2.40 3.02 .15 2.76 1.19 .18
------------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income .00 .00 (.02) .00 (.02) (.06)
Distributions from Capital Gains (2.04) (.98) (1.19) (.76) (.05) .00
------------ ------ ------ ------ ------ ------
Total Distributions (2.04) (.98) (1.21) (.76) (.07) (.06)
------------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 16.62 $16.26 $14.22 $15.28 $13.28 $12.16
------------ ------ ------ ------ ------ ------
------------ ------ ------ ------ ------ ------
Total Return 16.38%`D' 23.41% 1.23% 21.64% 9.83% 1.53%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $ 20,932 $11,594 $8,169 $10,437 $1,655 $443
Ratios to average daily net assets:
Operating expenses 1.54%* 1.62% 1.55% 1.51% 1.56% 1.63%*
Net investment income (loss) .03%* (.18%) (.24%) (.25%) (.11%) .25%*
Decrease reflected in above operating expense ratios
due to waivers/reimbursements .00% .00% .01% .00% .01% .01%*
Portfolio Turnover Rate 92.14%`D' 146.09% 51.87% 48.26% 55.83% 39.50%
Average Commission Rate # $ .0594 -- -- -- -- --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
55
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING GROWTH FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 4, 1991
For the Six (Initial
Months Ended For the Year Ended October 31, Issuance)
April 30, 1996 ------------------------------------ through
(Unaudited) 1995 1994 1993 1992 October 31, 1991
-------------- ------ ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $29.38 $22.05 $23.51 $18.19 $16.99 $15.18
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Loss (.05) (.09) (.08) (.08) (.06) .00
Net Gain (Loss) on Securities (both
realized and unrealized) 5.82 7.42 (.02) 5.77 1.62 1.82
------ ------ ------ ------ ------ ------
Total from Investment Operations 5.77 7.33 (.10) 5.69 1.56 1.82
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income .00 .00 .00 .00 .00 (.01)
Distributions from Capital Gains (1.75) .00 (1.36) (.37) (.36) .00
------ ------ ------ ------ ------ ------
Total Distributions (1.75) .00 (1.36) (.37) (.36) (.01)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $33.40 $29.38 $22.05 $23.51 $18.19 $16.99
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total Return 20.79%`D' 33.24% (.29%) 31.67% 9.02% 11.97%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $291,749 $167,225 $64,009 $26,029 $5,398 $275
Ratios to average daily net assets:
Operating expenses 1.69%* 1.76% 1.72% 1.73% 1.74% 1.74%*
Net investment loss (1.00%)* (1.08%) (1.08%) (1.09%) (.87%) (.49%)*
Decrease reflected in above operating expense
ratios due to waivers/reimbursements .00% .00% .04% .00% .06% .42%*
Portfolio Turnover Rate 26.38%`D' 84.82% 60.38% 68.35% 63.38% 97.69%
Average Commission Rate # $.0563 -- -- -- -- --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
56
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS INTERNATIONAL EQUITY FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
April 4, 1991
For the Six (Initial
Months Ended For the Year Ended October 31, Issuance)
April 30, 1996 ------------------------------------ through
(Unaudited) 1995 1994 1993 1992 October 31, 1991
-------------- ------ ------ ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.16 $20.38 $16.91 $12.20 $13.66 $13.14
------ ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss) .11 .03 .16 (.01) .13 .00
Net Gain (Loss) on Securities and
Foreign Currency Related Items
(both realized and unrealized) 2.76 (.67) 3.35 4.86 (1.32) .58
------ ------ ------ ------ ------ ------
Total from Investment Operations 2.87 (.64) 3.51 4.85 (1.19) .58
------ ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income (.52) (.05) .00 (.01) (.12) (.06)
Distributions from Capital Gains .00 (.53) (.04) (.13) (.15) .00
------ ------ ------ ------ ------ ------
Total Distributions (.52) (.58) (.04) (.14) (.27) (.06)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $21.51 $19.16 $20.38 $16.91 $12.20 $13.66
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------
Total Return 15.31%`D' (3.04%) 20.77% 40.06% (8.86%) 4.44%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $453,729 $453,729 $199,404 $44,244 $1,472 $153
Ratios to average daily net assets:
Operating expenses 1.86%* 1.89% 1.94% 2.00% 2.00% 2.23%*
Net investment income (loss) .18%* .20% (.29%) (.36%) .54% .30%*
Decrease reflected in above operating expense
ratios due to waivers/reimbursements .00% .00% .00% .00% .07% .17%*
Portfolio Turnover Rate 15.52%`D' 39.24% 17.02% 22.60% 53.29% 54.95%
Average Commission Rate # $.0188 -- -- -- -- --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
57
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN OTC FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
For the Six September 30, 1994
Months Ended For the (Commencement of
April 30, 1996 Year Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994
-------------- ---------------- -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.08 $9.85 $10.00
------ ------ ------
Income from Investment Operations:
Net Investment Loss (.03) (.02) .00
Net Gain (Loss) on Securities and Foreign Currency
Related Items (both realized and unrealized) .74 (.75) (.15)
------ ------ ------
Total from Investment Operations .71 (.77) (.15)
------ ------ ------
Less Distributions:
Dividends from Net Investment Income (.36) .00 .00
Distributions from Capital Gains .00 .00 .00
------ ------ ------
Total Distributions (.36) .00 .00
------ ------ ------
NET ASSET VALUE, END OF PERIOD $ 9.43 $ 9.08 $ 9.85
------ ------ ------
------ ------ ------
Total Return 8.06%`D' (7.82%) (1.50%)`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $1 $1 $1
Ratios to average daily net assets:
Operating expenses 2.00%* 1.31% 1.18%*
Net investment income (loss) (1.17%)* (.19%) .12%*
Decrease reflected in above operating expense ratios due
to waivers/reimbursements .37%* 1.83% 4.74%*
Portfolio Turnover Rate 33.36%`D' 82.98% .00%
Average Commission Rate # $.0863 -- --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
58
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EMERGING MARKETS FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six December 30, 1994
Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October 31, 1995
-------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.30 $ 10.00
------ ------
Income from Investment Operations:
Net Investment Income .05 .14
Net Gain on Securities and Foreign Currency Related Items (both realized and
unrealized) 2.52 1.19
------ ------
Total from Investment Operations 2.57 1.33
------ ------
Less Distributions:
Dividends from Net Investment Income (.05) (.03)
Distributions from Capital Gains (.07) .00
------ ------
Total Distributions (.12) (.03)
------ ------
NET ASSET VALUE, END OF PERIOD $13.75 $ 11.30
------ ------
------ ------
Total Return 22.97%`D' 13.29%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $2 $1
Ratios to average daily net assets:
Operating expenses 1.74%* 1.22%*
Net investment income .62%* 1.76%*
Decrease reflected in above operating expense ratios due to
waivers/reimbursements 1.96%* 16.36%*
Portfolio Turnover Rate 20.93%`D' 57.76%`D'
Average Commission Rate # $.0123 --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
59
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS POST-VENTURE CAPITAL FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Period
For the Six September 29, 1995
Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October 31, 1995
-------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.68 $ 10.00
------ ------
Income from Investment Operations:
Net Investment Loss (0.09) .00
Net Gain on Securities both (realized and unrealized) 6.82 .68
------ ------
Total from Investment Operations 6.73 .68
------ ------
Less Distributions:
Dividends from Net Investment Income .00 .00
Distributions from Capital Gains .00 .00
------ ------
Total Distributions .00 .00
------ ------
NET ASSET VALUE, END OF PERIOD $17.41 $ 10.68
------ ------
------ ------
Total Return 63.02%`D' 6.80%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $2 $1
Ratios to average daily net assets:
Operating expenses 1.90%* 2.15%*
Net investment income (loss) (1.35%)* .09%*
Decrease reflected in above operating expense ratios due to
waivers/reimbursements .87%* 9.25%*
Portfolio Turnover Rate 79.38%`D' 16.90%`D'
Average Commission Rate # $.0554 --
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
60
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS JAPAN GROWTH FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 29, 1995
(Commencement of
Operations) through
April 30, 1996
(Unaudited)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
------
Income from Investment Operations:
Net Investment Loss (.01)
Net Gain on Securities and Foreign Currency Related Items (both realized and unrealized) .78
------
Total from Investment Operations .77
------
Less Distributions:
Dividends from Net Investment Income .00
Distributions from Capital Gains .00
------
Total Distributions .00
------
NET ASSET VALUE, END OF PERIOD $ 10.77
------
------
Total Return 7.70%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $1
Ratios to average daily net assets:
Operating expenses 2.00%*
Net investment loss (.39%)*
Decrease reflected in above operating expense ratio due to waivers/reimbursements 7.19%*
Portfolio Turnover Rate 5.01%`D'
Average Commission Rate # $.0857
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
61
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS SMALL COMPANY VALUE FUND
FINANCIAL HIGHLIGHTS
(For an Advisor Share of the Fund Outstanding Throughout Each Period)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 29, 1995
(Commencement of
Operations) through
April 30, 1996
(Unaudited)
------------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
------
Income from Investment Operations:
Net Investment Loss (.01)
Net Gain on Securities (both realized and unrealized) 2.63
------
Total from Investment Operations 2.62
------
Less Distributions:
Dividends from Net Investment Income .00
Distributions from Capital Gains .00
------
Total Distributions .00
------
NET ASSET VALUE, END OF PERIOD $12.62
------
------
Total Return 26.20%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $2
Ratios to average daily net assets:
Operating expenses 2.00%*
Net investment income (.36%)*
Decrease reflected in above operating expense ratio due to waivers/reimbursements 3.88%*
Portfolio Turnover Rate 27.22%`D'
Average Commission Rate # $.0570
</TABLE>
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
See Accompanying Notes to Financial Statements.
62
- --------------------------------------------------------------------------------
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<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK]
63
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
The Warburg Pincus Equity Funds are comprised of Warburg Pincus Capital
Appreciation Fund (the 'Capital Appreciation Fund'), Warburg Pincus
International Equity Fund (the 'International Equity Fund'), Warburg Pincus
Post-Venture Capital Fund (the 'Post-Venture Capital Fund') and Warburg Pincus
Small Company Value Fund (the 'Small Company Value Fund') which are registered
under the Investment Company Act of 1940, as amended (the '1940 Act'), as
diversified, open-end management investment companies, and Warburg Pincus
Emerging Growth Fund (the 'Emerging Growth Fund'), Warburg Pincus Japan OTC Fund
(the 'Japan OTC Fund'), Warburg Pincus Emerging Markets Fund (the 'Emerging
Markets Fund') and Warburg Pincus Japan Growth Fund (the 'Japan Growth Fund'),
together with the Capital Appreciation Fund, the International Equity Fund, the
Post-Venture Capital Fund, the Emerging Growth Fund, the Japan OTC Fund, the
Emerging Markets Fund and the Small Company Value Fund, the 'Funds') which are
registered under the 1940 Act as non-diversified, open-end management investment
companies.
Investment objectives for each Fund are as follows: the Capital Appreciation
Fund, the International Equity Fund, the Japan OTC Fund and the Small Company
Value Fund seek long-term capital appreciation; the Emerging Growth Fund seeks
maximum capital appreciation; the Emerging Markets Fund and Japan Growth Fund
seek growth of capital; the Post-Venture Capital Fund seeks long-term growth of
capital.
Each Fund offers two classes of shares, one class being referred to as Common
Shares and one class being referred to as Advisor Shares. Common and Advisor
Shares in each Fund represent an equal pro rata interest in such Fund, except
that they bear different expenses which reflect the difference in the range of
services provided to them. Common Shares for the Japan OTC Fund, the Emerging
Markets Fund, the Post-Venture Capital Fund, the Japan Growth Fund and the Small
Company Value Fund bear expenses paid pursuant to a shareholder servicing and
distribution plan adopted by each Fund at an annual rate not to exceed .25% of
the average daily net asset value of each Fund's outstanding Common Shares.
Advisor 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 Shares. The Common and the
Advisor Shares are currently bearing expenses of .25% and .50% of average daily
net assets, respectively.
The net asset value of each Fund is determined daily as of the close of
regular trading on the New York Stock Exchange. Each Fund's investments are
valued at market value, which is currently determined using the last reported
sales price. If no sales are reported, investments are generally valued at the
last reported mean price. In the absence of market quotations, investments are
generally valued at fair value as determined by or under the direction of the
Fund's governing Board. Short-term investments that mature in 60 days or less
are valued on the basis of amortized cost, which approximates market value.
The books and records of the Funds are maintained in U.S. dollars.
Transactions denominated in foreign currencies are recorded at the current
prevailing exchange rates. All assets and liabilities
64
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
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 Funds do not
isolate that portion of gains and losses on investments in equity securities
which are due to changes in the foreign exchange rate from that which are due to
changes in market prices of equity securities. The Funds isolate that portion of
gains and losses on investments in debt securities which are due to changes in
the foreign exchange rate from that which are due to changes in market prices of
debt securities.
Security transactions are accounted for on a trade date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the
ex-dividend date. Income, expenses (excluding class-specific expenses,
principally distribution and shareholder servicing fees) and realized/unrealized
gains/losses are allocated proportionately to each class of shares based upon
the relative net asset value of outstanding shares. 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 and distributions of net realized
capital gains, if any, are declared and paid 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 and make the requisite
distributions to its shareholders which will be sufficient to relieve it from
Federal income and excise taxes.
Costs incurred by the Japan OTC Fund, the Emerging Markets Fund, the
Post-Venture Capital Fund, the Japan Growth Fund and the Small Company Value
Fund in connection with their organization have been deferred and are being
amortized over a period of five years from the date each Fund commenced its
operations.
Each Fund may enter into repurchase agreement transactions. Under the terms
of a typical repurchase agreement, a Fund acquires an underlying security
subject to an obligation of the seller to repurchase. The value of the
underlying security collateral will be maintained at an amount at least equal to
the total amount of the purchase obligation, including interest. The collateral
is in the Fund's possession.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from these estimates.
65
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
The Funds have an arrangement with their transfer agent whereby interest
earned on uninvested cash balances was used to offset a portion of the transfer
agent expense. For the period ended April 30, 1996, the Funds received credits
or reimbursements under this arrangement as follows:
<TABLE>
<CAPTION>
FUND AMOUNT
---- --------
<S> <C>
Capital Appreciation $ 12,074
Emerging Growth 29,430
International Equity 108,848
Japan OTC 9,778
Emerging Markets 1,980
Post-Venture Capital 1,261
Japan Growth 55
Small Company Value 76
--------
163,502
--------
--------
</TABLE>
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR
Warburg, Pincus Counsellors, Inc. ('Warburg'), a wholly owned subsidiary of
Warburg, Pincus Counsellors G.P. ('Counsellors G.P.'), serves as each Fund's
investment adviser. For its investment advisory services, Warburg receives the
following fees based on each Fund's average daily net assets:
<TABLE>
<CAPTION>
FUND ANNUAL RATE
---- -----------
<S> <C>
Capital Appreciation .70% of average daily net assets
Emerging Growth .90% of average daily net assets
International Equity 1.00% of average daily net assets
Japan OTC 1.25% of average daily net assets
Emerging Markets 1.25% of average daily net assets
Post-Venture Capital 1.25% of average daily net assets
Japan Growth 1.25% of average daily net assets
Small Company Value 1.00% of average daily net assets
</TABLE>
66
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
For the period ended April 30, 1996, investment advisory fees, waivers and
reimbursements were as follows:
<TABLE>
<CAPTION>
GROSS NET EXPENSE
FUND ADVISORY FEE WAIVER ADVISORY FEE REIMBURSEMENTS
---- ------------ --------- ------------ --------------
<S> <C> <C> <C> <C>
Capital Appreciation $ 1,018,822 $ 0 $ 1,018,822 $ 0
Emerging Growth 3,798,956 0 3,798,956 0
International Equity 13,679,226 0 13,679,226 0
Japan OTC 1,354,133 (366,440) 987,693 0
Emerging Markets 393,664 (344,848) 48,816 0
Post-Venture Capital 281,291 (138,774) 145,217 0
Japan Growth 23,045 (23,045) 0 (48,216)
Small Company Value 28,606 (28,606) 0 (32,335)
</TABLE>
SPARX Investment & Research, USA, Inc. ('SPARX USA') serves as sub-investment
adviser for the Japan OTC Fund. From its investment advisory fee, Warburg pays
SPARX USA a fee at an annual rate of .625% of the average daily net assets of
the Japan OTC Fund. No compensation is paid by the Japan OTC Fund to SPARX USA
for its sub-investment advisory services.
Counsellors Funds Service, Inc. ('CFSI'), a wholly owned subsidiary of
Warburg, and PFPC Inc. ('PFPC'), an indirect, wholly owned subsidiary of PNC
Bank Corp. ('PNC'), serve as each Fund's co-administrators. For its
administrative services, CFSI currently receives a fee calculated at an annual
rate of .10% of each Fund's average daily net assets. For the period ended April
30, 1996, administrative services fees earned by CFSI were as follows:
<TABLE>
<CAPTION>
FUND CO-ADMINISTRATION FEE
---- ---------------------
<S> <C>
Capital Appreciation $ 145,546
Emerging Growth 422,106
International Equity 1,367,923
Japan OTC 108,331
Emerging Markets 31,493
Post-Venture Capital 22,503
Japan Growth 1,844
Small Company Value 2,861
</TABLE>
For its administrative services, PFPC currently receives a fee calculated at
an annual rate of .10% of the average daily net assets of the Capital
Appreciation Fund, the Emerging Growth Fund, the Post-Venture Capital Fund and
the Small Company Value Fund. For the International Equity Fund, the Japan OTC
Fund, the Emerging Markets Fund and the Japan Growth Fund, PFPC currently
receives a fee calculated at an annual rate of .12% on each Fund's first $250
million in average daily net assets, .10% on the next $250 million in average
daily net assets, .08% on the next $250 million in average daily net assets, and
.05% of the average daily net assets over $750 million.
67
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
2. INVESTMENT ADVISER, CO-ADMINISTRATORS AND DISTRIBUTOR (CONT'D)
For the period ended April 30, 1996, administrative service fees earned and
waived by PFPC were as follows:
<TABLE>
<CAPTION>
NET
FUND CO-ADMINISTRATION FEE WAIVER CO-ADMINISTRATION FEE
---- --------------------- -------- -------------------------
<S> <C> <C> <C>
Capital Appreciation $ 145,546 $ 0 $ 145,546
Emerging Growth 422,106 0 422,106
International Equity 870,437 0 870,437
Japan OTC 129,989 (35,176) 94,813
Emerging Markets 37,792 (25,650) 12,142
Post-Venture Capital 22,503 (10,496) 12,007
Japan Growth 2,212 (2,176) 36
Small Company Value 2,861 (2,496) 365
</TABLE>
Counsellors Securities Inc. ('CSI'), also a wholly owned subsidiary of
Warburg, serves as each Fund's distributor. No compensation is paid by the
Capital Appreciation Fund, the Emerging Growth Fund or the International Equity
Fund to CSI for distribution services. For its shareholder servicing and
distribution services, CSI currently receives a fee calculated at an annual rate
of .25% of the average daily net assets of the Common Shares for the Japan OTC
Fund, the Emerging Markets Fund, the Post-Venture Capital Fund, the Japan Growth
Fund and the Small Company Value Fund pursuant to a shareholder servicing and
distribution plan adopted by each Fund. For the period ended April 30, 1996,
distribution fees earned by CSI were as follows:
<TABLE>
<CAPTION>
FUND DISTRIBUTION FEE
---- ----------------
<S> <C>
Japan OTC $270,825
Emerging Markets 78,731
Post-Venture Capital 56,256
Japan Growth 4,608
Small Company Value 7,150
</TABLE>
3. INVESTMENTS IN SECURITIES
For the period ended April 30, 1996, purchases and sales of investment
securities (excluding short-term investments) were as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
---- ------------ ------------
<S> <C> <C>
Capital Appreciation $290,731,151 $254,842,002
Emerging Growth 497,749,953 209,700,119
International Equity 925,234,824 406,226,464
Japan OTC 122,933,961 66,163,776
Emerging Markets 168,927,212 13,512,891
Post-Venture Capital 124,242,050 36,036,247
Japan Growth 23,119,410 290,760
Small Company Value 23,182,561 3,349,967
</TABLE>
68
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<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
At April 30, 1996, the net unrealized appreciation from investments for those
securities having an excess of value over cost and net unrealized depreciation
from investments for those securities having an excess of cost over value (based
on cost for Federal income tax purposes) was as follows:
<TABLE>
<CAPTION>
NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION
FUND APPRECIATION DEPRECIATION (DEPRECIATION)
---- ------------ -------------- --------------
<S> <C> <C> <C>
Capital Appreciation $ 52,754,467 $ (2,480,919) $ 50,273,548
Emerging Growth 302,641,446 (11,858,559) 290,782,887
International Equity 518,554,076 (106,585,313) 411,968,763
Japan OTC 23,989,323 (14,393,658) 9,595,665
Emerging Markets 17,034,584 (1,273,816) 15,760,768
Post-Venture Capital 18,657,288 (2,206,574) 16,450,714
Japan Growth 1,248,768 (20,200) 1,228,568
Small Company Value 2,553,211 (199,975) 2,353,236
</TABLE>
4. FORWARD FOREIGN CURRENCY CONTRACTS
The International Equity Fund, the Japan OTC Fund, the Emerging Markets Fund,
the Post-Venture Capital Fund, the Japan Growth Fund and the Small Company Value
Fund may enter into forward currency contracts for the purchase or sale of a
specific foreign currency at a fixed price on a future date. Risks may arise
upon entering into these contracts from the potential inability of
counterparties to meet the terms of their contracts and from unanticipated
movements in the value of a foreign currency relative to the U.S. dollar. The
Funds will enter into forward contracts primarily for hedging purposes. The
forward currency contracts are adjusted by the daily exchange rate of the
underlying currency and any gains or losses are recorded for financial statement
purposes as unrealized until the contract settlement date.
At April 30, 1996, the International Equity Fund, the Japan OTC Fund and the
Japan Growth Fund had the following open forward foreign currency contracts:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
- -------------------------------------------------------------------------------------------------------
FOREIGN UNREALIZED
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/(LOSS)
- ----------------- --------- -------------- ------------ ------------ ----------------
<S> <C> <C> <C> <C> <C>
French Francs 09/24/96 681,529,150 $135,860,209 $132,836,150 $ 3,024,059
Japanese Yen 03/05/97 18,772,784,400 185,700,000 186,700,431 (1,000,431)
Japanese Yen 03/05/97 15,981,700,000 158,000,000 158,942,340 (942,340)
Japanese Yen 03/05/97 12,662,950,000 125,500,000 125,936,472 (436,472)
Japanese Yen 03/05/97 4,594,026,000 45,400,000 45,688,834 (288,834)
Japanese Yen 03/05/97 3,273,712,500 32,440,296 32,557,959 (117,663)
Japanese Yen 03/05/97 1,668,150,000 16,500,000 16,590,204 (90,204)
Japanese Yen 03/05/97 951,280,000 9,400,000 9,460,738 (60,738)
------------ ------------ ----------------
$708,800,505 $708,713,128 $ 87,377
------------ ------------ ----------------
------------ ------------ ----------------
</TABLE>
69
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<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
4. FORWARD FOREIGN CURRENCY CONTRACTS (CONT'D)
<TABLE>
<CAPTION>
JAPAN OTC FUND
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
FOREIGN UNREALIZED
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/(LOSS)
- ----------------- --------- -------------- ------------ ------------ ----------------
Japanese Yen 05/31/96 23,205,000,000 $221,000,000 $222,589,928 $ (1,589,928)
Japanese Yen 05/31/96 314,100,000 3,000,000 3,012,950 (12,950)
Japanese Yen 05/31/96 311,400,000 3,000,000 2,987,050 12,950
------------ ------------ ----------------
$227,000,000 $228,589,928 $ (1,589,928)
------------ ------------ ----------------
------------ ------------ ----------------
</TABLE>
<TABLE>
<CAPTION>
JAPAN GROWTH FUND
- --------------------------------------------------------------------------------------------------
FOREIGN UNREALIZED
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT FOREIGN EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN (LOSS)
- ----------------- --------- ----------- ----------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
Japanese Yen 03/05/97 485,088,000 $ 4,800,000 $ 4,824,346 $ (24,346)
Japanese Yen 03/05/97 217,801,500 2,100,000 2,166,101 (66,101)
Japanese Yen 03/05/97 187,488,000 1,800,000 1,864,625 (64,625)
Japanese Yen 03/05/97 176,570,500 1,700,000 1,756,047 (56,047)
Japanese Yen 03/05/97 102,700,000 1,000,000 1,021,382 (21,382)
Japanese Yen 03/05/97 92,367,000 900,000 918,618 (18,618)
Japanese Yen 03/05/97 71,540,000 700,000 711,487 (11,487)
Japanese Yen 03/05/97 41,144,000 400,000 409,189 (9,189)
Japanese Yen 03/05/97 40,460,000 400,000 402,387 (2,387)
----------- ----------- ----------------
$13,800,000 $14,074,182 $ (274,182)
----------- ----------- ----------------
----------- ----------- ----------------
</TABLE>
5. EQUITY SWAP TRANSACTIONS
The International Equity Fund (the 'Fund') entered into a Taiwanese equity
swap agreement (which represents approximately .41% of the Fund's net assets at
April 30, 1996) dated August 11, 1995, where the Fund receives a quarterly
payment, representing the total return (defined as market appreciation and
dividend income) on a basket of three Taiwanese common stocks ('Common Stocks').
In return, the Fund pays quarterly the Libor rate (London Interbank Offered
Rate), plus 1.25% per annum (6.508% on April 30, 1996) on the market value of
the Common Stocks ('Notional amount') which is currently $10,512,575. The
Notional amount is marked to market on each quarterly reset date. In the event
that the Common Stocks decline in value, the Fund will be required to pay
quarterly, the amount of any depreciation in value from the notional amount. The
equity swap agreement will terminate on August 11, 1996.
During the term of the equity swap transaction, changes in the value of the
Common Stocks as compared to the Notional amount is recognized as unrealized
gain or loss. Dividend income for the Common Stocks are recorded on the
ex-dividend date. Interest expense is accrued daily. At April 30, 1996, the Fund
has recorded an unrealized gain of $3,166,123 and interest payable of $148,230
on the equity swap transaction.
70
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71
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<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
The Capital Appreciation Fund is authorized to issue three billion of full
and fractional shares of beneficial interest, $.001 par value per share, of
which one billion shares are classified as Series 2 Shares (the Advisor Shares).
The Emerging Growth Fund, the International Equity Fund, the Japan OTC Fund, the
Emerging Markets Fund, the Post-Venture Capital Fund, the Japan Growth Fund and
the Small Company Value Fund are each authorized to issue three billion full and
fractional shares of capital stock, $.001 par value per share, of which one
billion shares of each Fund are designated as Series 2 Shares (the Advisor
Shares).
Transactions in shares of each Fund were as follows:
<TABLE>
<CAPTION>
CAPITAL APPRECIATION FUND EMERGING GROWTH FUND
Common Shares Advisor Shares Common Shares Advisor Shares
-------------------------- -------------------------- -------------------------- -------------------------
For the Six For the Six For the Six For the Six
Months Ended For the Months Ended For the Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended April 30, Year Ended April 30, Year Ended
1996 October 31, 1996 October 31, 1996 October 31, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 4,579,854 6,020,619 889,944 201,782 12,327,414 9,808,362 2,888,960 3,172,686
Shares issued to
shareholders on
reinvestment of
dividends 1,964,278 850,478 140,665 46,554 976,986 0 392,736 0
Shares redeemed (1,876,798) (3,638,974) (484,121) (110,027) (3,830,967) (4,294,179) (239,620) (383,922)
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
Net increase
in shares
outstanding 4,667,334 3,232,123 546,488 138,309 9,473,433 5,514,183 3,042,076 2,788,764
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
Proceeds from
sale of shares $74,358,783 $ 85,992,655 $14,693,585 $ 2,970,800 $378,940,320 $256,886,928 $86,731,975 $78,682,150
Reinvested dividends 29,110,611 10,670,876 2,066,378 575,876 27,951,581 0 10,992,670 0
Net asset value of
shares redeemed (30,640,105) (51,907,650) (7,933,266) (1,551,821) (117,237,246) (106,777,032) (6,935,193) (9,503,812)
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
Net increase from
capital share
transactions $72,829,289 $ 44,755,881 $ 8,826,697 $ 1,994,855 $289,654,655 $150,109,896 $90,789,452 $69,178,338
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
------------ ------------ ------------- ------------ ------------ ------------ ------------ -----------
</TABLE>
72
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY FUND
Common Shares Advisor Shares
- ------------------------------- ------------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1996 October 31, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995
- ------------ -------------- ------------- ------------
<S> <C> <C> <C>
36,114,359 68,096,606 4,400,425 7,225,150
2,770,784 2,623,005 462,235 346,377
(14,704,936) (38,317,625) (353,539) (770,753)
- ------------ -------------- ------------- ------------
24,180,207 32,401,986 4,509,121 6,800,774
- ------------ -------------- ------------- ------------
- ------------ -------------- ------------- ------------
$729,116,738 $1,251,776,887 $88,661,416 $131,585,072
53,199,047 48,487,109 8,824,068 6,385,868
(295,259,300) (701,310,424) (6,951,353) (14,287,779)
- ------------ -------------- ------------- ------------
$487,056,485 $ 598,953,572 $90,534,131 $123,683,161
- ------------ -------------- ------------- ------------
- ------------ -------------- ------------- ------------
<CAPTION>
JAPAN OTC FUND
--------------------------------------------------------------
Common Shares Advisor Shares
---------------------------- -----------------------------
For the Six For the Six
Months Ended For the Months Ended For the
April 30, Year Ended April 30, Year Ended
1996 October 31, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C>
19,448,807 22,809,795 5 0
862,060 0 5 0
(14,578,459) (5,180,432) 0 0
------------ ------------ --- --
5,732,408 17,629,363 10 0
------------ ------------ --- --
------------ ------------ --- --
$177,370,878 $200,565,875 $ 48 $0
7,560,269 0 41 0
(130,373,825) (44,871,674) 0 0
------------ ------------ --- --
$54,557,322 $155,694,201 $ 89 $0
------------ ------------ --- --
------------ ------------ --- --
</TABLE>
73
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS (CONT'D)
<TABLE>
<CAPTION>
EMERGING MARKETS FUND POST-VENTURE CAPITAL FUND
Common Shares Advisor Shares Common Shares
------------------------------ ------------------------------- ------------------------------
For the For the For the
Period Period Period
December 30, December 30, September 29,
1994 1994 1995
(Commencement (Commencement (Commencement
For the Six of For the Six of For the Six of
Months Ended Operations) Months Ended Operations) Months Ended Operations)
April 30, through April 30, through April 30, through
1996 October 31, 1996 October 31, 1996 October 31,
(Unaudited) 1995 (Unaudited) 1995 (Unaudited) 1995
------------ ------------- ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 14,049,400 694,008 0 22 7,376,803 273,510
Shares issued to
shareholders on
reinvestment of
dividends 17,172 1,267 1 0 0 0
Shares redeemed (1,080,269) (104,480) 0 0 (787,264) (473)
------------ ------------- --- ----- ------------ -------------
Net increase
in shares
outstanding 12,986,303 590,795 1 22 6,589,539 273,037
------------ ------------- --- ----- ------------ -------------
------------ ------------- --- ----- ------------ -------------
Proceeds from sale
of shares $176,191,838 $ 7,753,651 $ 0 $ 257 $108,506,952 $ 2,792,203
Reinvested dividends 191,472 13,802 14 0 0 0
Net asset value of
shares redeemed (13,419,946) (1,191,160) (3) 0 (11,738,318) (4,887)
------------ ------------- --- ----- ------------ -------------
Net increase from
capital share
transactions $162,963,364 $ 6,576,293 $11 $ 257 $96,768,634 $ 2,787,316
------------ ------------- --- ----- ------------ -------------
------------ ------------- --- ----- ------------ -------------
<CAPTION>
POST-VENTURE CAPITAL FUND
Advisor Shares
------------------------------
For the
Period
September 29,
1995
(Commencement
For the Six of
Months Ended Operations)
April 30, through
1996 October 31,
(Unaudited) 1995
------------ -------------
<S> <C> <C>
Shares sold 0 19
Shares issued to
shareholders on
reinvestment of
dividends 0 0
Shares redeemed 0 0
-- -----
Net increase
in shares
outstanding 0 19
-- -----
-- -----
Proceeds from sale
of shares $0 $ 200
Reinvested dividends 0 0
Net asset value of
shares redeemed 0 0
-- -----
Net increase from
capital share
transactions $0 $ 200
-- -----
-- -----
</TABLE>
74
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
JAPAN GROWTH FUND SMALL COMPANY VALUE FUND
Common Shares Advisor Shares Common Shares Advisor Shares
- ------------- -------------- ------------- --------------
For the Period For the Period
December 29, December 29,
1995 1995
(Commencement (Commencement
of Operations) of Operations)
through April 30, through April 30,
1996 1996
(Unaudited) (Unaudited)
- ------------------------------------------- -------------------------------------------
<S> <C> <C> <C>
1,555,468 20 2,016,886 20
0 0 0 0
(159,750) 0 (11,491) 0
- ------------- ----- ------------- -----
1,395,718 20 2,005,395 20
- ------------- ----- ------------- -----
- ------------- ----- ------------- -----
$15,808,678 $200 $22,657,265 $200
0 0 0 0
(1,650,457) (2) (138,157) (2)
- ------------- ----- ------------- -----
$14,158,221 $198 $22,519,108 $198
- ------------- ----- ------------- -----
- ------------- ----- ------------- -----
</TABLE>
75
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
7. NET ASSETS
Net Assets at April 30, 1996, consisted of the following:
<TABLE>
<CAPTION>
Capital Emerging International
Appreciation Growth Equity Japan OTC
Fund Fund Fund Fund
------------ -------------- -------------- ------------
<S> <C> <C> <C> <C>
Capital contributed, net $254,983,813 $ 859,479,348 $2,848,598,049 $230,176,938
Accumulated net
investment income
(loss) 489,220 (2,660,022) 32,258,657 7,571,458
Accumulated net realized
gain (loss) from
security transactions 34,914,605 24,043,138 3,895,807 (6,406,623)
Net unrealized
appreciation from
investments and foreign
currency related items 50,409,069 290,979,510 415,737,182 8,020,606
------------ -------------- -------------- ------------
Net assets $340,796,707 $1,171,841,974 $3,300,489,695 $239,362,379
------------ -------------- -------------- ------------
------------ -------------- -------------- ------------
<CAPTION>
Small
Emerging Post-Venture Japan Company
Markets Capital Growth Value
Fund Fund Fund Fund
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
Capital contributed, net $169,640,925 $ 99,656,150 $14,258,419 $22,619,306
Accumulated net
investment income
(loss) 206,407 (248,279) (51,999) (13,187)
Accumulated net realized
gain (loss) from
security transactions 942,062 4,172,908 (4,899) 476,234
Net unrealized
appreciation from
investments and foreign
currency related items 15,757,887 16,450,714 950,715 2,353,236
------------ ------------ ----------- -----------
Net assets $186,547,281 $120,031,493 $15,152,236 $25,435,589
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
</TABLE>
76
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996 (Unaudited)
- --------------------------------------------------------------------------------
8. OTHER FINANCIAL HIGHLIGHTS
Each Fund currently offers one other class of shares, Common Shares,
representing equal prorata interests in each of the respective Warburg Pincus
Equity Funds. The financial highlights for a Common Share of each Fund are as
follows:
<TABLE>
<CAPTION>
Capital Appreciation Fund
----------------------------------------------------------------
Common Shares
----------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
April 30, 1996 ----------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
-------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $16.39 $14.29 $15.32 $13.30 $12.16 $ 9.78
------- ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income .04 .04 .04 .05 .04 .15
Net Gain on Securities (both realized and
unrealized) 2.41 3.08 .17 2.78 1.21 2.41
------- ------ ------ ------ ------ ------
Total from Investment Operations 2.45 3.12 .21 2.83 1.25 2.56
------- ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income (.01) (.04) (.05) (.05) (.06) (.18)
Distributions from Capital Gains (2.04) (.98) (1.19) (.76) (.05) .00
------- ------ ------ ------ ------ ------
Total Distributions (2.05) (1.02) (1.24) (.81) (.11) (.18)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $16.79 $16.39 $14.29 $15.32 $13.30 $12.16
------- ------ ------ ------ ------ ------
------- ------ ------ ------ ------ ------
Total Return 16.61%`D' 24.05% 1.65% 22.19% 10.40% 26.39%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $319,865 $235,712 $159,346 $159,251 $117,900 $115,191
Ratios to average daily net assets:
Operating expenses 1.04%* 1.12% 1.05% 1.01% 1.06% 1.08%
Net investment income .51%* .31% .26% .30% .41% 1.27%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .00% .00% .01% .00% .01% .00%
Portfolio Turnover Rate 92.14%`D' 146.09% 51.87% 48.26% 55.83% 39.50%
Average Commission Rate # $.0594 -- -- -- -- --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total
number of shares purchased or sold during the period for which there was a
commission charged.
77
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
8. OTHER FINANCIAL HIGHLIGHTS (CONT'D)
<TABLE>
<CAPTION>
Emerging Growth Fund
----------------------------------------------------------------
Common Shares
----------------------------------------------------------------
For the Six
Months Ended For the Year Ended October 31,
April 30, 1996 ----------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
-------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $29.97 $22.38 $23.74 $18.28 $16.97 $10.83
------- ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss) (.02) (.05) (.06) (.10) (.03) .05
Net Gain on Securities
(both realized and
unrealized) 5.99 7.64 .06 5.93 1.71 6.16
------- ------ ------ ------ ------ ------
Total from Investment
Operations 5.97 7.59 .00 5.83 1.68 6.21
------- ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income .00 .00 .00 .00 (.01) (.07)
Distributions from Capital Gains (1.75) .00 (1.36) (.37) (.36) .00
------- ------ ------ ------ ------ ------
Total Distributions (1.75) .00 (1.36) (.37) (.37) (.07)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $34.19 $29.97 $22.38 $23.74 $18.28 $16.97
------- ------ ------ ------ ------ ------
------- ------ ------ ------ ------ ------
Total Return 21.06%`D' 33.91% .16% 32.28% 9.87% 57.57%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $880,093 $487,537 $240,664 $165,525 $99,562 $42,061
Ratios to average daily net assets:
Operating expenses 1.19%* 1.26% 1.22% 1.23% 1.24% 1.25%
Net investment income (loss) (.50%*) (.58%) (.58%) (.60%) (.25%) .32%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .00% .00% .04% .00% .08% .47%
Portfolio Turnover Rate 26.38%`D' 84.82% 60.38% 68.35% 63.35% 97.69%
Average Commission Rate # $.0563 -- -- -- -- --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
78
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
International Equity Fund
------------------------------------------------------------------
Common Shares
------------------------------------------------------------------
For the Six For the Year Ended
Months Ended October 31,
April 30, 1996 ------------------------------------------------
(Unaudited) 1995 1994 1993 1992 1991
-------------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $19.30 $20.51 $17.00 $12.22 $13.66 $11.81
------- ------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income .14 .12 .09 .09 .15 .19
Net Gain (Loss) on Securities and Foreign
Currency Related Items (both realized and
unrealized) 2.79 (.67) 3.51 4.84 (1.28) 2.03
------- ------ ------ ------ ------ ------
Total from Investment Operations 2.93 (.55) 3.60 4.93 (1.13) 2.22
------- ------ ------ ------ ------ ------
Less Distributions:
Dividends from Net Investment Income (.56) (.13) (.04) (.02) (.16) (.33)
Distributions in Excess of Net Investment
Income .00 .00 (.01) .00 .00 .00
Distributions from Capital Gains .00 (.53) (.04) (.13) (.15) (.04)
------- ------ ------ ------ ------ ------
Total Distributions (.56) (.66) (.09) (.15) (.31) (.37)
------- ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD $21.67 $19.30 $20.51 $17.00 $12.22 $13.66
------- ------ ------ ------ ------ ------
------- ------ ------ ------ ------ ------
Total Return 15.58%`D' (2.55%) 21.22% 40.68% (8.44%) 19.42%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $2,846,760 $2,068,207 $1,533,872 $378,661 $101,763 $72,553
Ratios to average daily net assets:
Operating expenses 1.36%* 1.39% 1.44% 1.48% 1.49% 1.50%
Net investment income .68%* .69% .19% .38% .88% 1.19%
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements .00% .00% .00% .00% .07% .17%
Portfolio Turnover Rate 15.52%`D' 39.24% 17.02% 22.60% 53.29% 54.95%
Average Commission Rate # $.0188 -- -- -- -- --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
79
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
8. OTHER FINANCIAL HIGHLIGHTS (CONT'D)
<TABLE>
<CAPTION>
Japan OTC Fund
-----------------------------------------------------------
Common Shares
-----------------------------------------------------------
For the Period
For the Six September 30, 1994
Months Ended (Commencement of
April 30, 1996 For the Year Ended Operations) through
(Unaudited) October 31, 1995 October 31, 1994
-------------- ------------------ -------------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 9.09 $ 9.85 $ 10.00
------- ------- -------
Income from Investment Operations:
Net Investment Income .01 .00 .00
Net Gain (Loss) on Securities and Foreign Currency
Related Items (both realized and unrealized) .71 (.76) (.15)
------- ------- -------
Total from Investment Operations .72 (.76) (.15)
------- ------- -------
Less Distributions:
Dividends from Net Investment Income (.38) .00 .00
Distributions from Capital Gains .00 .00 .00
------- ------- -------
Total Distributions (.38) .00 .00
------- ------- -------
NET ASSET VALUE, END OF PERIOD $ 9.43 $ 9.09 $ 9.85
------- ------- -------
------- ------- -------
Total Return 8.23%`D' (7.72%) (1.50%)`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $239,361 $178,568 $19,878
Ratios to average daily net assets:
Operating expenses 1.75%* 1.41% 1.00%*
Net investment income (loss) (.89%)* (.15%) .49%*
Decrease reflected in above operating expense
ratios due to waivers/reimbursements .37%* 1.35% 4.96%*
Portfolio Turnover Rate 33.36%`D' 82.98% .00%
Average Commission Rate # $.0863 -- --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
80
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Emerging Markets Fund
-------------------------------------
Common Shares
-------------------------------------
For the Period
For the Six December 30, 1994
Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October 31, 1995
-------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.28 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income .07 .08
Net Gain on Securities and Foreign Currency
Related Items (both realized
and unrealized) 2.53 1.25
------- -------
Total from Investment Operations 2.60 1.33
------- -------
Less Distributions:
Dividends from Net Investment Income (.08) (.05)
Distributions from Capital Gains (.07) .00
------- -------
Total Distributions (.15) (.05)
------- -------
NET ASSET VALUE, END OF PERIOD $13.73 $ 11.28
------- -------
------- -------
Total Return 23.29%`D' 13.33%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $186,546 $6,780
Ratios to average daily net assets:
Operating expenses 1.49%* 1.00%*
Net investment income 1.33%* 1.25%*
Decrease reflected in above operating
expense ratios due to
waivers/reimbursements 1.18%* 11.08%*
Portfolio Turnover Rate 20.93%`D' 57.76%`D'
Average Commission Rate # $.0123 --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
81
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
8. OTHER FINANCIAL HIGHLIGHTS (CONT'D)
<TABLE>
<CAPTION>
Post-Venture Capital Fund
-------------------------------------
Common Shares
-------------------------------------
For the Period
For the Six September 29, 1995
Months Ended (Commencement of
April 30, 1996 Operations) through
(Unaudited) October 31, 1995
-------------- -------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.69 $ 10.00
------- -------
Income from Investment Operations:
Net Investment Income (Loss) (.04) .00
Net Gain on Securities (both realized
and unrealized) 6.82 .69
------- -------
Total from Investment Operations 6.78 .69
------- -------
Less Distributions:
Dividends from Net Investment Income .00 .00
Distributions from Capital Gains .00 .00
------- -------
Total Distributions .00 .00
------- -------
NET ASSET VALUE, END OF PERIOD $17.47 $ 10.69
------- -------
------- -------
Total Return 63.42%`D' 6.90%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $120,029 $3,024
Ratios to average daily net assets:
Operating expenses 1.65%* 1.65%*
Net investment income (loss) (1.10%)* .25%*
Decrease reflected in above operating expense ratios due to
waivers/reimbursements .66%* 23.76%*
Portfolio Turnover Rate 79.38%`D' 16.90%`D'
Average Commission Rate # $.0554 --
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
82
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Japan Growth Fund
-------------------
Common Shares
-------------------
For the Period
December 29, 1995
(Commencement of
Operations) through
April 30, 1996
(Unaudited)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
----------
Income from Investment Operations:
Net Investment Income .00
Net Gain on Securities and Foreign Currency Related Items (both realized and unrealized) .78
----------
Total from Investment Operations .78
----------
Less Distributions:
Dividends from Net Investment Income .00
Distributions from Capital Gains .00
----------
Total Distributions .00
----------
NET ASSET VALUE, END OF PERIOD $ 10.78
----------
----------
Total Return 7.80%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $15,151
Ratios to average daily net assets:
Operating expenses 1.75%*
Net investment loss (.29%)*
Decrease reflected in above operating expense ratio due to waivers/reimbursements 4.42%*
Portfolio Turnover Rate 5.01%`D'
Average Commission Rate # $.0857
</TABLE>
- --------------------------------------------------------------------------------
`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
83
- --------------------------------------------------------------------------------
<PAGE>
<PAGE>
- --------------------------------------------------------------------------------
WARBURG PINCUS EQUITY FUNDS
NOTES TO FINANCIAL STATEMENTS (CONT'D)
April 30, 1996
- --------------------------------------------------------------------------------
8. OTHER FINANCIAL HIGHLIGHTS (CONT'D)
<TABLE>
<CAPTION>
Small Company Value
Fund
-------------------
Common Shares
-------------------
For the Period
December 29, 1995
(Commencement of
Operations) through
April 30, 1996
(Unaudited)
-------------------
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
----------
Income from Investment Operations:
Net Investment Loss (.01)
Net Gain on Securities (both realized and unrealized) 2.63
----------
Total from Investment Operations 2.62
----------
Less Distributions:
Dividends from Net Investment Income .00
Distributions from Capital Gains .00
----------
Total Distributions .00
----------
NET ASSET VALUE, END OF PERIOD $ 12.62
----------
----------
Total Return 26.20%`D'
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Period (000s) $25,434
Ratios to average daily net assets:
Operating expenses 1.75%*
Net investment loss (.46%)*
Decrease reflected in above operating expense ratio due to waivers/reimbursements 2.22%*
Portfolio Turnover Rate 27.22%`D'
Average Commission Rate # $.0570
</TABLE>
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`D' Non-annualized
* Annualized
# Computed by dividing the total amount of commissions paid by the total number
of shares purchased or sold during the period for which there was a commission
charged.
84
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<PAGE>
<PAGE>
ADEOF-3-0496
Warburg Pincus Advisor Funds
Counsellors Securities Inc., distributor
800-369-2728
Further information is contained in the
Prospectus, which must precede or
accompany this report.
[LOGO]
STATEMENT OF DIFFERENCES
------------------------
The dagger symbol shall be expressed as `D'
The division sign shall be expressed as [div]
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